CAUTION: Monetary System Collapse
- Thread starter W4rl0ck
- Start date
Unfortunately, I believe his assertions are correct. Obama is continuing on the same path as Bush. It would probably be political suicide for him to do as the author suggests, and it would certainly be an unpopular decision, but I do agree. A purge of the current system, and allowing the bad debt to clear (with a lot of major bank failures) would have been the way to return to equilibrium.
Bush marked the beginning of the end, and Bernanke is a clueless bastard, that continues to barely look one day ahead. The current Obama administration is not doing anything to curb the spending, and is on target to double the debt (again !) in the next 9-10 years.
I am volunteering to sign up and move my family to the Moon, when the next biosphere project opens up there. I heard that healthcare is really cheap on the moon too.
Concepts like this are a bit difficult to grasp. I believe most people even economists don't understand what the guy is saying. The guy is telling the truth about the situation of the banking system in the US.
In order to understand what the guy is saying you must understand the money as debt concept. It is a bit of a difficult concept to grasp because it is often explained poorly.
Assume someone sells their house for 500 thousand dollars. The buyer takes on a 500k mortgage. The seller takes the 500k and puts it in a bank account to earn interest. That 500k that the seller put in the bank is then used to create another 500k house loan. So on and so forth. \ Banks can create as much credit as demanded by the economy by this process.
Note:
Banks cannot create money. Only the federal reserve can do that. Banks can however create unlimited amounts of credit. As long as people and corporations continue to put their money in the bank, and not under their mattress, banks can create unlimited amounts of credit.
All this fractional reserve lending results in a highly complex "web of debt". In this system debt begets more debt. More debt is created than there is money to repay with interest in the money supply! No wonder some default, they cannot help it.
MONEY IS DEBT.
In order to understand what the guy is saying you must understand the money as debt concept. It is a bit of a difficult concept to grasp because it is often explained poorly.
Assume someone sells their house for 500 thousand dollars. The buyer takes on a 500k mortgage. The seller takes the 500k and puts it in a bank account to earn interest. That 500k that the seller put in the bank is then used to create another 500k house loan. So on and so forth. \ Banks can create as much credit as demanded by the economy by this process.
Note:
Banks cannot create money. Only the federal reserve can do that. Banks can however create unlimited amounts of credit. As long as people and corporations continue to put their money in the bank, and not under their mattress, banks can create unlimited amounts of credit.
All this fractional reserve lending results in a highly complex "web of debt". In this system debt begets more debt. More debt is created than there is money to repay with interest in the money supply! No wonder some default, they cannot help it.
MONEY IS DEBT.
Quote from Ivanovich:
my 60+ acres of hunting ground at my vacation house in WV.
holy shit :eek: :eek: :eek:
you rich bastard
I ain't got nothing
hey it'll be like in the olden days. I am going to assist Ivan with bathroom functions, I will unzip him and wipe etc.
he is the rich man in town, and we'll work for food
white slave, actually I'll probably hang myself in Ivan's horse barn
they'll find me and just cut the rope and my body will just fall down like a piece of wood
and in between puffs of smoke, wearing a hat, Ivan will just remark
"he wasn't that good a worker anyway"
Later at a dinner table with his family with dogs barking outside and always an armed man on the porch of the house
Ivan's daughter dressed up nice and his son sitting at table will ask. Who was it you found in the barn hanging papa.
Ivan will say "just a worker princess, nothing to worry about"
and to switch topic he'll ask
"boy are you ready to hunting with your pa tomorrow, don't forget to go early to bed"
death of a worker in the barn was never mentioned again .......
Ivan's daughter dressed up nice and his son sitting at table will ask. Who was it you found in the barn hanging papa.
Ivan will say "just a worker princess, nothing to worry about"
and to switch topic he'll ask
"boy are you ready to hunting with your pa tomorrow, don't forget to go early to bed"
death of a worker in the barn was never mentioned again .......