Things That Make You Go Hmmm.... Such As The 10 Steps To Realizing You, Or Your Country, Is A Debt Addict

Tyler Durden's picture

A blast from the "the more things change, the more they stay the same" past courtesy of Grant Williams: "Back in the dog days of October 2008, The Consumerist published a piece on its website called ‘12 Signs You’re Addicted to Debt’. This public-spirited piece was designed to help people recognize an addiction to debt that might topple them over the edge of the abyss in the new, post-Lehman world of fear and desperation. You remember that world, right? Lehman had just collapsed? The world was about to spiral into a nightmare the likes of which hadn’t been seen in a generation? You remember, surely? The ‘GFC’? The ‘Great Recession’? No? But we all said it was a watershed that would change our behaviour for decades to come. We all swore never to forget how close we came; how terrified we all were.... In the interests of brevity, I’ve cut the original twelve signs down to ten, but that should be plenty to ascertain whether the world is addicted to debt (though it may make this introduction may be a little longer than usual). Let’s get started, shall we?..."

More in the full TTMYGH letter below

Hmmm Jun 19 2011

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
downwiththebanks's picture

Money = Debt - the world is full of  money addicts.

The key, still, is TO WHOM are these governments allegedly in 'debt'

Time to give the banker-gangsters the finger and move on.  

TruthInSunshine's picture

A dedication to Amerika, and to all nations kidnapped by Rothschildian Dope Dealers, and in keeping with the true spirit of this great article as published on Zero Hedge:

Curtis Mayfield - Pusherman
Pegasus Muse's picture

Just listened to deCarbonnel's presentation (the 4th reference) on the secret US Treasury Slush Fund, the Exchange Stabilization Fund (ESF).  Fascinating.  Extensively researched and documented.

wisefool's picture

My debt is bigger than your debt. Which is losely translated as "My quest for morality is more important than your quest for morality"

This lasts for a while. Then somebody calls shennanigans and the fisticuffs start.


SparkySC's picture

Lets take it all down to near zero and reset the economic order.

Kreditanstalt's picture

"Your country" cannot be a "debt addict" ~ only "your government" can.

flacon's picture

...only if your corporate government doesn't give it's (your country which it owns) sovereignty up like Paul Martin (and also Harper) want to do with Canada: 



Former Canadian Prime Minister: Give Up Your Sovereignty To Make The World Work


I should also add, there is no such thing as a "country". They are ALL corporations. In fact there is no such thing as a city or a municipality - those too are privately owned FOR PROFIT corporations. 


Here is the for profit corporation (city/municapality) that I live in:


"Corporation Of The City Of Waterloo, The is a private company categorized under Legislative Bodies, Local Government and located in Waterloo, ON, Canada. Register for free to see additional information such as annual revenue and employment figures. Companies like Corporation Of The City Of Waterloo, The usually offer: Elected Government Officials, Elected Government Representatives, Federal Government Elected Officials, Local Government Elected Officials and State Government Elected Officials."


And from their own mouths:


Guy Fawkes Mulder's picture

Ponzi debt collateralized with tax money and... more ponzi debt.

Collapse / crash a certainty.

Only question is how many real assets they can collect and how many mercenary corps and troops they can acquire.

dudditz's picture

We need to stop adding to the national debt and pay our bills without borrowing from other "funds" or having our central bank lend us money we dont have.


We need another Andrew Jackson.


TruthInSunshine's picture
PIMCO Head Predicts Greece, Others Will Default
PIMCO Head Predicts Greece, Others Will Default By REUTERS Published: June 21, 2011 at 11:15 PM ET

    TAIPEI (Reuters) - The head of PIMCO, the world's biggest bond fund, predicted that Greece and other European economies would default on their debts to resolve their problems as the euro area faces a debt crisis.

Caviar Emptor's picture

Debt addiction is proportional to the degree of addiction to the past.

On the most fundamental level, debt represents a past promise which was undertaken based on a perception of future economic conditions. When there's a discrepancy between how that future turned out versus how it was perceived there's a problem. Otherwise the debt would be repaid with ease, perhaps even early and everyone would be delighted.  

As a country, but also a civilization that extends over many countries, we're addicted to an economic construct which once succeeded as a solution to the problems of a now bygone era. And that construct was itself an answer to a prior, economic construct which was a success in it's own time but failed as the world turned. 

We simply have refused to move on. The granular view is that institutions which held power for a long time refuse to relinquish that power despite their obvious anachronism. AIG I'm looking in your direction. Hence the accumulation and addiction to debt to cover older debt which was undertaken with erroneous assumptions about future economic conditions. 

Dapper Dan's picture

Chris Martenson said years ago, "in order for this system to work, the future must be better than the present"

Why is it every one on TV or radio talks about the need for growth? 

Even tenured professor's I talk to will say "we need growth to get this economy going" I then ask them if they think our system work if we have no population growth?  blank stare,

I then give them my hypothetical story of an island with only a carpenter, teacher, doctor, engineer, farmer, scientist and a banker.  and who of them could drown and not effect the lives of the remaining islanders?  Blank stare again.

Caviar Emptor's picture

I've pondered that one myself. Capitalism, especially Ponzi capitalism, requires growth or else it implodes. That growth has to compensate firstly for the debt accumulated in the past. The interest on debt puts a floor under the minimum required growth. That's why in the 09-10 phase of the "recovery", the Fed was so anxious to keeps rates in the cellar, pump the stock market and keep all the special programs going: so that all the corporations could refinance at lower rates and roll their debt. Also so that they could recapitalize cheaply. 

But there's another important layer: without growth there isn't enough employment and wealth creation to compensate for population growth and immigration. 

A Ponzi, which we're all in right now, absolutely must grow more suckers all the time or else implode. Madoff was a perfect illustration. Despite having billions on hand, he couldn't cover expenses and demands because the flow of new capital dipped below a critical threshold. 

In our Ponzi system we must have growth or else face the prospect of ever more desperate cycles of expanding money printing to stave off a deflationary spiral. We also will need it to keep peace at home. Already the cracks are showing as we can't seem to keep the MENA and peripheral Europe quiet. 

Cultural Capital's picture

Is it any wonder that the so called 'axis of evil' were all countries whose national economies where not penetrated by 'western' capital?

"A crisis occurs sometimes lasting for decades. This exceptional duration means that incurable structural contradictions have revealed themselves and that despite this the political forces which are struggling to conserve and defend the existing structure itself are making every effort to cure them within certain limits and to overcome them. These incessant and persistent efforts (since no social formation will concede that it has been superseded) form the terrain of the conjunctural, and it is upon this terrain that the opposition organizes."

Antonio Gramsci, Prison Notebooks

TruthInSunshine's picture

You guys know the answer - I've seen each of you write of it at times before.

Our Ponzified system, aka fractional reserve banking reliant economy, relies entirely on the growth of both 1) the absolute amount of debt issuance (debt equals money, money equals debt) over time, with each new batch having to be remarkably larger than the last batch of debt issued, and 2) the absolute number of debt slaves (not exactly like the slaves of the really old days, but we have been backsliding again, with debtors' prisons being tolerated in Amerika lately - one of the many things our founders would be turning over in their graves about).

Since Greenspan's era, the U.S. and its lender/dope dealer/master, the Federal Reserve, has become increasingly reliant on blowing big bubbles and getting the herd to chase them, in order to keep the scam alive (dot.coms, housing/real estate, etc.).

The moment the absolute amount of new debt issuance stagnates, or worse yet, declines, over any significant stretch of time, and the moment the people are no longer willing to conscript themselves into perpetual debt slavery, the Ponzi implodes, and there's nothing in the Federal Reserve's toolbox to deal with such a seismic shift in psychology and behavior.


Lionhead's picture

Finally, smarter analysts are beginning to recognize the ESF story. When the house of cards collapses, you will know it well. It is the bigger issue, not the high frequency noise media chases everyday to distract you.  Kudos Mr Williams!

doggings's picture

Finally, smarter analysts are beginning to recognize the ESF story.

the ESF thing is just mind boggling.

I havent really gotten my head around the implications of this yet.

any thoughts wiser people? 

Cultural Capital's picture

Society is like a flower.  It grows really big and blooms, and then eventually it withers away.  This is what we are witnessing today.  This is what Soros means when he says that we need to manage American decline.  If someone actually had the answers to America’s problems that could appease all classes and provided 3% growth forever in a finite world they would be president of the United States.  But problems that can’t be fixed won’t, and instead we get the jokers that we have in Washington.  Why deal with reality if you can afford not to have to, right?  

Yawl should realise that at the end of the day, nationalism is only a concern of the poor.  You think they give a fuck about a bogan in the Caymans?  The more they wave flags the more they are over compensating for something..  Once you understand that the ‘nation’ all be it in the ethnic or egalitarian sense no longer exists in the American state apparatus then in becomes clear the writing is on the wall, it is not a hard text to decipher.  What is the ‘national interest’ when society is nothing but a collection of individuals, ay pauper?


America is haemorrhaging economically, politically, ideologically.  Wake up.  To the young graduate leaving school who looks destined to sleep on their parents coach until their 45: The sky is not going to fall. 


Travel to slums in India or Nigeria and see how far potentially vast sways of America could conceivably fall yet; this is change you can believe in.  Welcome to the new normal folks.   I know losers like to complain but get off your arse and make it happen.  Go overseas, be about it young’n.  It is the best of times, and the worst of times, just depends where you are on the pyramid scheme and how hard you want to work.  So if you are not ‘high on the hog’ come walk the walk while they still let gringos in to far away friendly lands:

Atomizer's picture

Globalisation. Keeping the unemployed within the system to keep GDP results spinning Better Than Expected (BTE) MSM prole results.

India Economic Summit 2010 - Actions for Modernizing India's Agriculture Sector


New WTO/FDA mandates coming soon..Genetically Modified Food laws in 3,2,1. Bare in mind, the European Circle of Fire has found this vision cannot be paid for until a new crisis is created. Soon..the changing cost diets will move out of India & migrate to Africa. Winks.

blunderdog's picture

I wish you could make bankers go non-responsive by massaging their nose a bit.

TruthInSunshine's picture

They say that if you hold/trap a banker by the nose, it falls off, allowing him/her to escape, and grows back.

topcallingtroll's picture

Any type of reptile will go limp on you, including alligators, if you rub their bellies the right way.

A cold blooded creature like an oligarch probably responds the same way.

Version 7's picture

Not enough of being a scheme to enslave the populace, the banking system is also inherently flawed. There's no possibility of paying back the money in the pool of interest unless new borrowers come along and put new currency back in circulation. It means that once economic growth stops, new borrowers no longer show up, and the game of musical chairs begins as the interest on the initial loans becomes impossible to repay.

sbenard's picture

Even the term "debt addict" is an understatement, IMHO.

This is not going to end well for the US or its citizens. Within a few years, we will see a debt debacle that will make the Great Depression look more like a Sunday picnic in comparison. Best for those of us who "get it" to plan and prepare accordingly!

It's going to be very ugly, my friends!

chartcruzer's picture

I am truly surprised by the response of the American people since the housing bubble popped (aka, the financial crisis).

Since the 'pop':

1) Interest rates have been crushed destroying the safe incomes of savers and destroying incentives to save.

2) Not a single entity in the mortgage finance industry has been punished (even after layering on fraudclosure).

3) The value of the dollar has been taken to the wood shed - Inflation for food/energy has exploded (forget the fraudulent BLS data).[s218820698]&disp=P

4) Planet Washington has loaded up on new debt (and continues to load up) such that default (in historic terms) is virtually assured.

5) There has been only a ripple of economic recovery (at the cost of $5T).  Real estate still falling.  Unemployment sky high. Poverty growing,,,,,,

Yet, after 3+ years, no one in the popular press is declaring that our economic system is broken.  The nightly news (even PBS) is the same fluff.

When is the main stream going to declare that our economic canary died?

While we were off working the past 30 yrs we allowed Planet Washington to destroy the economy.  How am I going to look my kid in the eye as he tries to build a post college life?

p.s. This feels like stagflation rather than inflation as wages are flat (and yes, they need inflation if the debt bubble is to be corrected).

topcallingtroll's picture

Planet Washington had a lot of help from the useful idiots on the left who demanded more and more transfer payments and who ignored fringe politicians who tried to warn them.

Useful idiots on the right supported huge unsustainable defense budgets.

Two expensive wars and a vague " war on terror" and a housing bubble of ungodly proportions was supported by both.

Idiots to the left of me. Idiots to the right of me.

silvertrain's picture

 Good post

confucius say "he who says he can and he who says he cant are both right"

gaoptimize's picture

Same as it ever was, but slightly more amusing: