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It's The Debt, Stupid
Submitted by Adam Taggart via Peak Prosperity,
The fundamental failing of today's global economy can be summarized simply: Too Much Debt.
We have taken too much of it on, too fast, in too many markets around the world, to have any hope of making good on it. Not only does the math not work out, but also on a moral level, we are placing a tremendous obligation on future generations that will unfairly limit the prosperity they can enjoy tomorrow in order to finance our consumption today.
In the US alone, total credit market debt stands at over $57 trillion and is doing its damnedest to continue expanding exponentially. Since simple math shows us that this debt level cannot be supported, the key questions to ask at this stage are:
Will the unsupportable debt disappear via default, or inflation?
And very important:
When these debts do disappear, who will take the losses?
* * *
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Year of Jubilee
Debt = Slavery!!! That is how the puppetmasters will shackle the mignons into submission.
My minions love filet mignon.
Instead of 'massacred muppets' we'll get "fillet minion."
I like it...
It is worse than that... Look at what the Rothschild's did to United Kingdom:
http://www.usdebtclock.org/world-debt-clock.html
UK External Debt to GDP is = 462%
Ireland External Debt to GDP is = 1061%
Greece, France, Portugal & Spain all look better than the United Kingdom who have Enjoyed the Rothschild's indomitable "Banking Expertise" for over 200 Years.
We should say rather the Rothschild's Interminable "Banking Expertise".
IN 1980 the USA was looking Sweet, till Ronald Reagan got into Office:
Debt to GDP = 35% in 1980
Debt to GDP = 100% Today
http://www.usdebtclock.org/1980.html
WHO is going to eat the debt losses?
Really?
Do people not really know WHO is going to get sliced and diced in this episode of uzBanksterstan takes over the world?
.
.
The Role of Banking In Oppression
Imran Nazar Hosein is a leading International Islamic Philosopher, Scholar and author, specialising in world politics, economy, eschatology , modern socio-economic/political issues and expert on international affairs.
He is best- selling author of Jerusalem in the Qur'an. Imran Nazar Hosein was born on the Caribbean island of Trinidad in 1942 to parents whose ancestors had migrated from India as indentured labourers. He studied Islam, Philosophy and International Relations at several universities and institutions of higher learning. Among them are al-Azhar University in Cairo, Egypt, the Institute of International Relations of the University of the West Indies in Trinidad, the University of Karachi in Pakistan, the Aleemiyah Institute of Islamic Studies in Karachi, Pakistan, and the Graduate Institute of International Studies in Geneva, Switzerland.
Thank you for that Video.
Very sound and clear. He is acually right. You don't need to be religious (I am not) to see the value (and warning!) in the Quran and as well in the Bible against usury, interest rates and a "jubilee year" (resetting the economy).
Folks before us figured out that this leads to disaster. This was atually one of the big confrontations between some individuals in the catholic church with the Medici family (15th century). Corruption and Power hungry men won (even the church succumbed and ended up accepting usury on part of the Bankers).
Thanks, indeed this is not about religion as you stated yourself, it is about being open minded and learn from the wisdom that exists in this world, no matter who or what is the source.
Just finished eating one.
Magnificent.
The trillionnaires on the recieving end who collect the "vig" will not accept default very easily. The Rothschilds of this world are very low profile and will do whatever it takes to get their due, even if it means the nuclear extermination of 2/3 of the world population. Basically they can take down and destroy entire continents.
The World is like a ride in an amusement park, and when you choose to go on it you think it's real, because that's how powerful our minds are. And the ride goes up and down and round and round, and it has thrills and chills and is very brightly colored, and it's very loud. And it's fun, for a while.
Some people have been on the ride for a long time, and they've begun to question, 'Is this real, or is this just a ride?', and other people have remembered, and they've come back to us and they say 'Hey, don't worry. Don't be afraid, ever, because this is just a ride.' and we KILL THOSE PEOPLE.
"Shut him up! We have alot invested in this ride! SHUT HIM UP! Look at my furrows of worry. Look at my big bank account, and my family. This just has to be real."
It's just a ride.
But we always kill those good guys who try and tell us that. You ever noticed that? And let the demons run amok. But it doesn't matter, because ... It's just a ride.
And we can change it anytime we want. It's only a choice. No effort, no work, no job, no savings of money. A choice, right now, between fear and love. The eyes of fear wants you to put bigger locks on your door, buy guns, close yourself off. The eyes of love, instead see all of us as one.
Here's what we can do to change the world right now, to a better ride:
Take all that money we spent on weapons and defense each year and instead spend it feeding, clothing, and educating the poor of the world, which it would many times over, not one human being excluded, and WE CAN EXPLORE SPACE, TOGETHER, BOTH INNER AND OUTER, forever ... in peace.
-- Bill Hicks (1961 - 1994)
You got stuck on one of the shittier rides, along with the rest of us. Better luck next ride. Remember, there are many rides to choose from, or perhaps choice was never a part of the deal at the amusement park. :-)
"Will the unsupportable debt disappear via default, or inflation?"
Yes.
Thrownness (German: Geworfenheit) is a concept introduced by German philosopher Martin Heidegger (1889–1976) to describe our individual existences as "being thrown" (geworfen) into the world. Geworfen denotes the arbitrary or inscrutable nature of Dasein that connects the past with the present. The past, through Being-toward-Death, becomes a part of Dasein. Awareness and acknowledgment of the arbitrariness of Dasein is characterized as a state of "thrown-ness" in the present with all its attendant frustrations, sufferings, and demands that one does not choose, such as social conventions or ties of kinship and duty. The very fact of one's own existence is a manifestation of thrown-ness. The idea of the past as a matrix not chosen, but at the same time not utterly binding or deterministic, results in the notion ofGeworfenheit—a kind of alienation that human beings struggle against,[2] and that leaves a paradoxical opening for freedom:
For William J. Richardson, Geworfenheit "must be understood in a purely ontological sense as wishing to signify the matter-of-fact character of human finitude".[4] That's why "thrownness" is the best English word for Geworfenheit. Other "attractive translations as 'abandon,' 'dereliction,' 'dejection,' etc. [...] are [dangerous because] too rich with ontic, anthropological connotations. We retain 'thrown-ness' as closest to the original and, perhaps, least misleading."[5]
Debt is a proxy for lack of cheap energy
Debt is a proxy for slavery imposed via a monetary system... a debt based monetary system.
my co-worker's step-aunt makes $76 /hour on the laptop . She has been fired from work for nine months but last month her payment was $16491 just working on the laptop for a few hours. Get More Information... www.payvalt.com
You do realize that we have a debt based monetary system and that the debt is not meant to be paid off? The total debt in system is designed to continually increase over time. Why do you seem so surprised by this?
No, not at all. Debt can be defaulted on, no problem, it's gone
IT IS THE RESERVES, STUPID.
Reserves are NOT self-extinguishable. Fed or Gov has to extinguish them.
WROG SIR; WE SIMPLY EXTIGUISH THEM. MILESTONES
Commercial banks create but cannot extinguish reserves
No real INCOME stupid. US has off-shored REAL INCOME, leads to CAPITAL and INVESTMENT retirement. Smart CAPITAL and INVESTMENT moves to foreign soil.
Then the thieves steal what is left, and taxes are levied against the high middle and low hi earnings to finally WIPE them out.
Foreign producers/laborers reject USD
Then default on DEBT, then finally start all over again with less players (people). FALL OF ANOTHER EMPIRE
USA no longer worlds largest economy: http://www.businessinsider.com/chart-rise-and-fall-of-modern-empires-201...
If it can $57 trillion, it can a million trillion; it's already beyond absurd.
Odious debt.
Fantastic fight club screen name.
it can't because of inflation and minimum wages and limited resources... It's like you dig a hole while the side walls do not fall down ..
Yes. And if the FED is willing to make the official debt $17 Trillion to enrich their Bankster/Corporate masters, why wouldn't they double it to $32 Trillion?
Because they eventual want your real stuff! The debt money is just an intermediary.
The FRB already knows the US is finished, like a match stick burning out. They are letting the bankers steal from the system what is left (MF Global...on and on) and let the Govt. take measures to enforce a police state to control unrest and riots.
The smart capital and investment is off-shore already. USA was bankrupt in 2008...what you see now is free fall (capital retirement, and off shore movement) before the SPLAT.
"Whether 'tis Nobler in the mind to suffer. The Slings and Arrows of outrageous Fortune, Or to take Arms against a Sea of troubles, And by opposing end them?" Shakespeare
The traditional way to pay insurmountable debts is to shoot the Creditor .
Settle the debt in lead .
Clever...lets see, you have a pension plan? Yes???, then YOU are the one who needs to be killed because YOU are the recipient of the debt.
see... we are all (most all) of us both holders of debt (our investments outside of real things) and debtors (the mortgage).
Cleaning up this mess will be...well...messy.
Inflation is the way that has always been chosen in the past and will almost certainly be chosen for this round. Don't shoot yourself, instead see what is happening and prepare. No need for violence yet.
Which is simply a great demonstration that pension plans are inherently fraud. No possible justification can exist for not paying NOW for services rendered.
Think about it. What if everyone is fully paid for the work they do? Then everyone is "always paid in full"... everyone makes their own decisions of how and when to spend their wealth... and everyone gets to enjoy/bare/suffer the consequences of their actions.
The only alternative is... OVERT FRAUD... in which someone swears they'll pay you next Tuesday for a hamburger today (times ten to the fifteenth and growing exponentially).
Note that even when someone honestly intends to pay a certain pension decades later, they cannot possibly be in a situation to be certain they can. And so, all such modern systems are unavoidably inherent fraud & violence by their very nature.
All fiat systems, including all existing systems, inherently necessitate theft, fraud and violence.
While... nothing could be simpler than everyone being paid in full at every transaction.
Virtually the entirety of mankind worldwide at this time in history practices inherent fraud and violence. And people wonder why the world is in trouble? Well, there you have it.
What would your house be worth if no one had access to a mortgage and everyone had to pay cash?
I would love to see that system take hold, as I have paid for my house and would love to take advantage of the reversion to the mean of all the people who have not.
As would I.
Most people don't realize this, but the price of homes would be 8 to 12 times cheaper if no debt was available to buy homes. Which means, people would save for about 3 years then pay cash. After which, for the rest of your life, you have your entire income to spend. Talk about boosting the economy!
The predators calling themselves the banksters and government have completely destroyed the brains of mankind, and as a consequence, everyone pays multiple times what they should for the most expensive products people buy. Just crazy! What a way to destroy a planet.
The debt forgiveness is all taxable in the year the mortgage debt is forgiven - this tax rule alone will ruin tens of millions of people.
The larger question and more important is: who are those individuals who are on the receiving end of ALL THAT INTEREST? YOU are on the giving end. How so? Well, the state you live in is heavily indebted, as is your county as is your city and................the Federal government! The overall tax rate in the US including all hidden taxes is 52%. WE all pay that interest and the hidden costs through taxes, fees and above all.....a lower standard of living! Have you noticed that? This mountain of debt SERVICE payments is slowly crushing all. An economy is a zero sum game. Those at the very top of the income ladder in the US are there at the expense of everyone below them. Picture a financial pyramdid that says sociopathe at the very peak and empath at the bottom. That is our system in the US. Call it ":trickle up" if you will but it is actually a torrent that defies gravity even. Imagine that.
College debt is good debt?! Not any more!
I'll be glad to make my mortgage payments with worthless FRN's. Note requires repayment in USD's so that's cool to me!
Yeah, that's the thing. If you really believe we are heading into a hyperinflationary period, you should load up on all the debt you can before it happens. You keep all the stuff, they get paid back by you in near-worthless fiat.
You buy it financed it default on it write it off and the Fed prints MOAR
Hyperinflation in the USA is one thing I cannot imagine in my wildest dreams coming true.
Which means it is. Fuck.
Skater...name one single fiat system that did not end in hyperinflation...there isn't a single one.
Deflation only happens when the printer is constrained. Printers now refuse to be constrained.
Deflation occures when the credit you thought was fiat POOFs! out of existence leaving nothing behind but the debt, which is still expected of you to pay.
Maybe you'll finally learn what 'Denominated In' really means.
There are only $1.24-Trillion Fiat FRNs in circulation world wide, all the rest is Credit/Debt, 'Denominated In' fiat FRNs.
You have it all wrong. What you need to do is name one instance when the Debt Money Monopoly that controls money wiped out their own debt and monetary assets through hyperinflation.
It has never happened, has it? Sure, they wiped out Germany and Argentina, BUT THAT WAS A DEFLATION FROM THE STANDPOINT OF THE DEBT MONEY MONOPOLY! The dollar BOUGHT MORE AND MORE as the local currencies collapsed.
The Debt Money Monopoly may well end up hyperinflating, but you can bet your *ss it won't be while they are sitting on trillions in debt and money assets denominated in the currency they are hyperinflating!
That's common sense, people.
I have no debts which is a very nice position to be in.
City debt, country, debt, state debt and national debt, homey. Since everyone else is in debt, it looks like you will pay their share, too.
This is such an evil system.
the economic anthropologist David Graeber shows in his encyclopedic survey,Debt: The First 5,000 Years, since antiquity
He quotes the classical historian Moses Finley as saying that in the ancient world all revolutionary movements had a single program: “Cancel the debts and redistribute the land.”
...
Graeber, an American teaching at Goldsmiths, a part of the University of London, begins his book with an anecdote. He is attending a garden party at Westminster Abbey. The guests are international activists and do-gooders, corporate liberals as well as antiglobalization radicals. He falls into a conversation with a lawyer for a foundation and explains his involvement in the campaign to stop the International Monetary Fund from imposing austerity on third-world nations. He mentions the biblical Jubilee, in which Hebrew kings periodically proclaimed debts forgiven.
“‘But,’ she objected, as if this were self-evident, ‘they’d borrowed the money! Surely one has to pay one’s debts.’”
Graeber reminds her that even in standard economic theory, “a lender is supposed to accept a certain degree of risk.” Indeed, the higher the anticipated return, the more likely the danger of default. Yet the premise that “surely one has to pay one’s debts” is so persuasive, Graeber writes, “because it’s not actually an economic statement: it’s a moral statement.” A debt, by definition, is something you owe that must be repaid.
In Graeber’s exhaustive, engaging, and occasionally exasperating book, three themes stand out. One is the “profound moral confusion” in our understanding of debt. A second is the perennial struggle over debt forgiveness, and who receives it. A third is the function of debt in the politics of social class and social control.
Despite extensive scholarly efforts to find an example, Graeber reports, there is no historical evidence of an actual primitive economy that ran on barter. Why is he making this point? In fact, two thousand years before kings began minting coins, there wascredit. Before paper, accounts were kept on clay tablets. Landowners gave peasants provisions on promise of repayment. And where there is credit, there is of course debt. What appears to be a random excursion sets up a central discussion about debt and reciprocal obligation.
Graeber observes that debt is often conflated with sin. The version of the Lord’s Prayer drawn from Matthew (used by most Protestant denominations) asks God to forgive us our “debts,” while most translations of Luke (and the Catholic liturgy) ask forgiveness for our “trespasses” or “sins.” Graeber notes that in modern German, the same word,Schuld, means both debt and guilt. Likewise in several ancient languages. In market terms, he writes, a debt is “an exchange that has not been brought to completion.” One party received the goods; the other is owed a payment. To fail to honor a debt, therefore, is to be in a condition of guilt on both moral and economic grounds.
But though individual failure to repay a debt is considered ethically abhorrent, there are times when sound economics requires debt forgiveness. In the case of a broad downturn,2 debt ceases to be purely a moral question, and becomes a pragmatic one: Will it help the overall economy for the law to demand that debts always be paid in full? Was it economically sensible to throw debtors into jail? Is it sensible now to force troubled corporations or banks to liquidate? To compel sales of millions of homes in a depressed market? To destroy the economic potential of entire nations so that they can service old debts that were incurred corruptly by previous governments or banks? Society properly discourages borrowers from taking on imprudent burdens, and the prospective loss of property or even liberty functions as a deterrent. But in a general collapse, debt forgiveness may become necessary if the economy is not to sink further.
http://www.nybooks.com/articles/archives/2013/may/09/debt-we-shouldnt-pa...The problem is two fold.
The debt for individuals is too expensive.
While
The debt for unproductive corporations, banks, and financial institutions is too cheap.
This has happened because the corporations, banks and financial firms are all "buddy buddy", and operate with the goal in mind of dessimating the consumer and siezing all their assets.
Think about it, how much does it really cost a credit card company to lend you one dollar? yet they demand upwards of 18~25% interest payments.
It costs Mastercard, Visa, Discover, Capital One, Citi NOTHING to "extend peoples credit", and ontop of it they are essentially guaranteed Bail-Outs if anything actually does manage to go wrong.
These systems are completely automated, very little human input is needed now so the credit system should be operating with very little relative "cost".
As it stands, no credit card company has any moral or financial reason to charge over say 0.5% to businesses (for accepting the card) and 3~5% to consumers (who use the card).
The same logic should apply to Mortgages, there shouldn't be ONE mortgage in the country right now that costs anyone anything over 3%.... yet mortgages of 5~ 8% are common place, even though these banks borrow at ZIRP and in most cases (since they dont follow GAAP) probably don't even borrow the "money they lend out" because of fractional reserve banking which allows them to counterfeit money for the purposes of loans.
Its nonsensical really that the American public allows these corporations/institutions/firms (w.e you want to call them) to operate like this . . . especially after the recent revelations with the FED and the missing 16 Trillion buckazoids
The problems are: that people believe government exists; that human beings accept fiat pieces of paper (or computer-bits) rather than real, physical, valuable goods in trade; that fractional reserve banking is not considered theft, fraud and automatic death by hanging; that predators-DBA-banksters and predators-DBA-government can create unlimited debt; that predators can force individuals to pay back these debts (one way or other).
No, the solution is not to "lend to regular folks for unlimited irrational consumption". In fact, nobody should ever borrow at all. If a business needs more money, let them take on additional partners.
The world is not perfect, people are greedy and generally it is very difficult to find competent people to work with, on one hand debt if used properly can be a great wealth creation tool, on the other when used improperly it is devistating.
The problem is, NO ONE (on an individual level) is given the opportunity to use debt responsibly because the cost of borrowing on an individual level is prohibitive and just not cost effective as the capital you borrow costs you more and more over time, and the value it returns to you is depreciating so rapidly.
The entire idea behind borrowing money is to use that money to expand productivity of a business and to spread the cost of consumer purchases out as far as possible so that people can maintain a higher living standard and micro manage their expenses along a time-line, this is becoming increasingly impossible for the consumer as interest rates for consumer level and small business level borrowing are maintained at such high %'s, companies generally (small ones) can not afford to pay upwards of 18% interest +++ on their debt, because there simply is not enough profit margin left to be had in the world to allow them to pay such fees and still keep their lights on.
Take a typical scenario of a construction company, many suppliers now regularly increase their prices 1 ~4% per line item every month.
This is COMPOUNDING percentage increases in the costs of say building supplies.
Take Roofing Shingles for example:
A bundle of roofing shingles today costs around 36$ (rough price)
In 12 Months you can easily expect those materials to cost 39~55$ or more! (check back in 12 months and look for an average price on shingles and you will see).
It doesn't sound like much.
But these material costs are not the only costs that are escalating on a constant basis, you have to deal with rising insurance premiums (because the entire insurance industry is fraudulent for the most part), rising materials, rising labor costs, rising permit and govt fees , rising taxation, rising utility costs, rising maintenance costs for equipment. . . . . eventually costs will outstrip the companies ability to raise prices and remain competitive and something will give causing the company to go broke/out of business.
Now slap 18~25% ontop of whatever all that costs them, just to finance all that . . . . its not possible . . . your costs will outpace your ability to charge what you need to.
If small business could finance things at say 2% they would be able to increase productivity.
The money in and of itself is worthless, its just a tool , if anything we don't have enough money in the "real system".
I have been hypothesizing that in actuality, inflation is the best thing in a modernized economy because it allows small and large businesses alike and eventually the consumer to paper over and grease the wheels of the economy, the problem is in todays system very little (if any) of that inflationary money printing actually ever gets to the consumers or small businesses pocket. . . and these large fraudulent corporations suck all the money out of the system causing deflation, which in turn causes businesses to fail (as there isn't enough money in circulation for the common folk) to conduct business regularly and all the small business try as they might to be competitive simply can not compete with fraudulent enterprises like banks and insurance companies.
The idea of protecting savers in todays world is unrealistic, as protecting savers and encouraging hoarding will only lead to economic problems down the road, we simply have too many mouths to feed, so try as you might to protect savers the net result will probably be riots and poor people stealing from said savers anyway . . . bad inflation , economics vs population is the leading cause financial strain on the population, (given that all real resources are easily aquired as an input to the economy)
The world is not perfect... so punish the frugal, the productive, the responsible. Yeah, that'll work... NOT. The notion that "we must do things in such horribly inefficient ways" is completely insane! The fact that people do things in such horribly inefficient (debt-based) ways is WHY the world is all screwed up.
The naturally growing efficiency caused by scientific and engineering invention and technological advancement is more than canceled by the inefficiencies of a debt-based society.
It is sad that people can't see what's right in front of their faces, and even sadder that people who DO see what's in front of their faces make excuses for the human predators who have utterly destroyed any possibility of "a better life" for subsequent generations.
Hasn't anyone noticed the obvious?
As productive efficiency grows (due to scientific, engineering and technological advances), quality of life is falling.
How to explain that? Simple. The very debt-based way of functioning that people say "we can't live without".
That implies humans cannot survive without self-destruction. That's just wrong. That's just backwards.
Not only do people have to pay for the products they buy, they must pay more (interest), and then much more because prices are unavoidably driven higher by behaviors enabled and encouraged in any debt-based system.
Parts costs for us have been rising in the area of 4-5% quarterly on average, while quality has been falling and retail pricing has not adjusted evenly to match the cost increases.
Debt is the new gold! The more a country has the better its economy and stock market!
Welcome to the new world enjoy your ride!
I'm a reverse-millionaire!
You can never have a default as long as a country can print its own currency. What politician is going to accept blame for a default? Or for actually cutting Social Security? Instead, the printing presses will roll and debts of 2014 will be paid in 2024 dollars. Of course, the 2024 dollars will be greatly devalued.
Ain't it great? Our grand constitution, which prohibits federal default, simultaneously *guarantees* hyperinflation.
Which is why we buy *ahem* "other" assets with our FRNs.
I gave you an up-arrow, but only BANKSTERS and GOVERNMENT can print their own currency.
And therefore, human beings and productive companies most surely can go bust and default. The scam is... banksters and government can (theoretically at least) keep their predatory ponzi-scheme going indefinitely, simply by switching to scientific notation on their currency.
In practice, at least so far, nobody even wants the currency once the paper currency reaches one quadrillion currency units (usually "dollars", whether Zimbabwe or USSA).
You have been around, but I will disagree.
The older guys have lost their jobs in the 1980s from Factories and... they lost their pensions from Great US Companies... perhaps in Mergers at the time.
They have been waiting on MEDICARE and SS. They paid into those benefits. Now if you are talking about Grandfather clauses in SS Reductions... yeah young people are negative and they will probably accept those cuts.
I just don't know what older people will do.
Older people know how much corruption is new compared to when they were starting out.
Social Programs are the only edge that US People or all people have against Banker polices to send their jobs to cheaper labor overseas while offering no educational training for new jobs and extracting tuition and educational loan interest rates (like a company store) from those same employees they laid off.
Literally. Laid off. F*cked in the Ass. Notice how prices in the Grocery store have gone up and at the restaurants? Oh you got inflation now, smaller servings, higher prices,... the reason: Revenues have fallen short since consumption & waste have gone up.
The problem with that is that the assets of the Social Security trust fund and the Federal workers' retirement fund are fixed-interest bonds, while the benefits are tied to inflation. Inflate your way out of the debt and those two funds have less, in real terms, to support the growing number of beneficiaries. Not to mention the housing debt market which is mostly fixed interest and also mostly owned by the federal government.
Except the government doesn't print its own currency - THEY BORROW IT FROM THE PRIVATE DEBT MONEY MONOPOLY.
"But they don't need to," you will argue.
But they do - and there is a d*mned good reason they do now and will going forward.
Debt = Slavery
"It's the debt stupid."
So it's obvious to the banksters the solution is to figure out new ingenious ways to pile on more debt.
little bit of debt = good
Lotsa debt = mo good.
Always remember Banksters don't produce, they skim. It is not a symbiotic relationship, it is parasitic.
Agreed. Bankers act like Royalty.
- We are doing Gods work
- In order to prove the USA Government some Integrity or Moral Base you need to form a "Central Bank" which will be run by us to ensure that your book keeping is accurate, that your management is sound, that you have assets to back up your credit and debt
- We the bankers will show the world that you are in control of your finances, so that you will not see a banking scare like in 1907 (even though we the bankers caused the panic)
- We are a banking community, we rely on Auditing, Credit Ratings, data and information about activities, and sound conservative banking principals which will stand behind your government, your people, your currency, and your Industry....
No, bahahaha... I can't do it any more.
There is no Conservative banking in FED or TBTF Bankers or Even in Europe.
2008 Global Financial Scandal... Proved the USA was mismanaged and Captured by Rogue Bankers... probably in 1910-1913 when the FED was Created by a Club of European Bankers... who then lend to each other and Do QE to provide themselves with liquidity as they attempt to take over the whole country, shut down Industries, and buy up all the leftovers from people forced to sell who were probably advised by the same policies that put them in Danger.
Century of Enslavement: The History of The Federal Reserve
https://www.youtube.com/watch?v=5IJeemTQ7Vk
The answer to the first question is default, in the authors paradigm.
The answer to the second question is not who but what and it is whoever holds the currency the debt is payable in.
Inflate away the debt...lol...only a Keynesian would think it possible without destroying the thing the debt is based on, which is the currency. I owe you a million dollars and I promise to give you one million dollars plus 10k in interest in two years that will be worth 750k in todays million dollar purchasing power.
Yeah, what a friggin deal.
/////
An addendum, just cuz its hilarious:
"An American family can't just change their address to avoid paying taxes. @HouseGOP, why can corporations? Let's put the #MiddleClassFirst!" - Nana Pelosi
Thats right Nana, the middle class are not allowed to move to lower taxed states.
(Rolls eyes)
"TRF-Governments hold key to unlocking billions for social good - G8 report
By Astrid Zweynert LONDON, Sept 15 (Thomson Reuters Foundation) - Governments can unleash billions of dollars to tackle social problems more effectively if they take bold steps to reduce barriers to investing for both profit and social good, a task force set up by the world's richest nations said on Monday. In its first report, the G8 Social Impact Investment Task Force calls on governments to make tax and regulatory reforms to catalyse the market in investments that generate social or environmental benefits alongside financial returns."
And those 'rich' nations would be.................................???????????
Somehow I can't think of any apart from the ones that have REAL gold as a significant portion of their ASSETS
I hope Peak Prosperity paid well for this advertisement.
Adam, relax - we aren't going to make 'till tomorrow to some years - this debt isn't being passed to anyone - who knows what system will emerge from the battlefields of Mad Max - its the follow-on system and grandkids will be creating their own debt.
another dry year in cali and you will see it tomorrow=)
There are good debt and bad debt just like everything else in life. Getting into debt for consumption, even if it is framed in the glory of "investment" is bad, doubtless.
I'll wait to listen to the whole series until Yellen goes up my FAFSA.
Preachin to the choir here at ZH. Try CNBC.
The debt is just the tip of the iceberg. It's the liabilities, stupider...
Says here $116 Trillion: http://www.usdebtclock.org/
taking money without the intention of returning it is....THEFT!
The banksters never put a gun to the sheeples’ heads and said, “Go out and borrow money and buy new cars and boats and I-Phones.” If the American people, en masse, ever decided to swear off debt and live within their means, it would be far bigger than the Great Depression. If millions suddenly decided they would only buy the things they really needed and would only buy what they had savings for, the result would be complete and total economic collapse. If the government decided to balance the budget, lay off 3/4 million Fed workers and live within their means, total collapse would soon follow.
The Fed Bank must perpetuate the means to keep this debt-driven nation going. No choice at all.
sure would be a culture shock.. the current system would be the ashes of a "failed experiment". there is such a thing as a phoenix though..and you either believe that people can and want to live "honestly", within their means...or we are all just sharks, swimming with other sharks..engaging in a feeding frenzy every now and then and otherwise... behaving like sharks who aren't ina feeding frenzy.
another 50 years.. aybe there will be a revolution akin to the industrial one, or the internet one ...or the french one or the russian one.. "MIND THE GAP"
All bubbles must burst, eventually. There is no other option.
No, but they stuck the prospect of not having any money at all unless they took on that debt right where it counts.
You got it all figured out, don't you!? Nobody forced the sheeple to finance an education, buy a house, a car, etc. The economy over the last 40 years has performed just fine and has created good, high paying jobs that should have allowed people to pay for things in cash, right?
Blame the victim and fire federal workers you say. The oligarchs just love tools like you.
"Let not a borrower nor a lender be ... uh, living nextdoor to a, heh heh, a... uh, borrower!"
- George Bush quoting Ben Franklin
i wonder when ZH will start writing articles on WHY we had taken so much debt ?
namely why have we gone on consumption debt spree ?
ZH would do a far better job than me at this. But here's a few of my reasons:
- governments have done it themselves to fund ever more monuments to big government, including a huge growth in welfare
- banks have encouraged it to make more profits
- governments have encouraged people to do it to boost reported GDP and increase sales taxes (VAT)
- faced with rising livings costs way above wages - including energy - people have taken on debt to hold their head above water and pay the bills
- faced with stagnant growth in personal wealth promised by government, people have taken on debt to fund the lifestyle their wages don't support
Greed, stupidity, vanity, selfishness.
Oh yes! Thanksgiving, human behaviour at its finest.
s/
Real growth is only possible if the energy supply grows. It stopped growing and it is now even contracting considering net energy gain. This will not end well.
The drug addict HomObamma may suddenly decide to cancel & nullify all the overseas US treasury Bonds.
Part of problem solved.
Too much debt is only a symptom.
Real growth has stalled since about 2000 due to diminishing returns starting to byte in all aspects of the economy.
debt != fortune
somebody is owning the debt. if zerohedge wants to reduce debt it has to reduce fortunes of somebody.
Here’s your inheritance kids…
The first line in that crash course video touches upon the crucial point, that there is a MAD Money As Debt system. However, the rest then veers off into superficial notions, which underestimate or understate the degree to which
DEBT CONTROL BACKED BY DEATH CONTROL,
DRIVING SOCIETY TO PSYCHOTIC BREAKDOWNS:
DEBT INSANITIES CAUSE DEATH INSANITIES.
Oh well ... a musical interlude:
https://www.youtube.com/watch?v=68zccrskOqQ
Bruce Cockburn Live . Call It Democracy