[The once and future king]

I love how these arguements allways break down in to its side A or Side Bs fault.

Its always more complex than that. There is over inflation, then unregulated markets exacerbate the effect of that inflation by engaging in leveraging.

I made a post about this which was ignored probably due to its complexity. The current situation in sub prime is classic example.

Inflation = rising house prices, rising house prices = who cares who we lend to, the liability is secured against an appreciating asset + any way we can sell the risk on = we bought the risk and we can now create a financial instrument called a CDO (collaterised debt obligation)out of it and sell it to investors as a bond + even though the bonds value is in relation to a bunch of fraudulent sub prime toxic waste, the value of it (which is non transparent) will be determined by an "independent ratings agency" = oh look the nice independent ratings agency has given our toxic waste a nice value, coz house prices can only go up right? = The markets have created a mechanism that has a massive effect on the price of credit through bond yields and the availability of credit through risk hedging that is totally independent of the Gov or the fed reserve.

Edited to add:

On reflection the statement totally independent is false. There is obviously a relation of some kind.

However the real point is that I dont see how the State benefits the most from fiat money, it would seem to me that is the markets created in and of fiat money that benefit most.

The UK owes 94£ for every year the universe has existed, over 1 trillion pounds of personal debt, which has been given out like candy. However interest rates are going up,as is inflation, credit is tightening and if the UK has any kind of housing collapse (which is inevitable imo)this will utterly fook people as most of this debt is secured against real estate.

When this [censored] storm finally hits, the State will carry the can and most likely the sitting political class will be replaced, and I cant see how they really benefit from a debt induced meltdown that crushes everyones
(unsustainable)standard of living.

However the banking system will be laughing all the way to its own doorstep. "Yea we lost some funny money that we printed anyway, but now we repossessed some actual stuff that has an objective value and our share of real wealth has risen exponentially and no one is even blaming us for on of the biggest cons ever perpetrated."