"With regards to inflation, an old insurance mogul in Argentina explained to me that the inflation in Argentina at that time was heaven sent for his company because they cashed premiums immediately, bought dollars and paid in local currency 10 years later... This might explain a certain recent interest in life insurance companies here and abroad. Unfortunately, cashing in premiums today in local currencies might have a hard time figuring out in what other currency they should buy in other to profit from the devaluation of their local currency in the future...

As for your estimation that we might have another crisis but that the new regulations would not make it as important as the last one, you mentioned one of the factors being less fraudulent banking activity. I am not sure that this problem will not persist in that those responsible for the last crisis are still in the driver's seat...

Many thanks for the good work you offer,

David Fuller's view Thanks for your feedback and this interesting story on inflation. I regard inflation as a government stealth tax on the poor, the financially unsophisticated and the elderly. People who understand money are able to protect themselves against inflation or even turn the tables and profit from it.

Re your word "crisis", I believe I said: "…we do not have the same bubbles or fraudulent banking activity today." You are right that some of those responsible for the last crisis are still in the driver's seat but they are somewhat chastened. The worst perpetrators jumped with their golden parachutes and are dancing elsewhere.

I maintain that banking crises are cyclical, occurring at least once every fifteen years on average. It is not that bankers don't learn. However most enter the profession for bonuses rather than altruistic motives, and the freedom to allocate depositor's money, without being directly answerable to them, is too much temptation for many.