Quote from Sandybestdog:
So if our entire monetary system is basically a fraudulent ponzi scheme whereby it is physically impossible to repay all of the principal and interest, why are people here advocating debtors prison? Thatâs like 10 people having a race and you scream at 9 of them saying that it is unacceptable that they lost when in fact that is the only thing that can happen because only one person can actually win a race. But I guess if it makes them feel better . . . . . .
Any usury-based monetary system requires the constant influx of more credit to ensure interest gets paid. Sea shells, tally sticks, gold, oil, whatever.
When interest enters the equation, money supply must grow.
The problem with fiat money is two-fold:
1) Banks hold a monopoly on credit creation, and therefore, are the sole benefactors of interest charged on
risk-free capital. A total scam. Which is why Bankers run the World.
2) That monopoly on risk-free capital incentivizes banks to take HUGE, LEVERAGED portfolios which manifest themselves as debt explosions. The result are bubbles, of one type or another, that destroy real wealth by creating unsustainable asset prices, which ordinary people take on DEBT to buy. When that bubble pops, values disappear, but the debt (and interest on that debt) remains.... A nice way to charge 10$ for a 50 cent loaf of bread, for a couple decades..
The result is huge swaths of private wealth channeled away from the laborers who earn it, into the greasy hands of bankers who created that debt with nothing (which is
why they did it...)
The real problem is the PRICE OF CAPITAL. How it should be determined? And who should issue it?
The answer to both is the Free Market. Legalize competing currencies, fuck the banks, and let the market set interest rates. Rates, under a free-floating system would be much higher (7-10%), bubbles far less common, growth far more stable, and capital allocation MORE PRUDENTLY INVESTED.
Unlike the system we have now that practically gives money away to the flat-broke, unemployed, and insolvent who have no chance in hell of paying it back. That type of drunken sailor lending is what creates huge market distortions, compels money to chase assets, which evolve into bubbles. which evolve into financial blackholes that suck-in even legitimately earned wealth where its later destroyed, er, "Redistributed" to our Banker friends,
Its a system that was set up by the Bankers, for the Bankers.
And yes, there really is a level where private and public debt becomes untenable and a Nation gets crushed under interest payments. Happens in the 3rd world, all the time. Usually 200% debt to GDP. Sounds like a lot, but the FED and Treasury have already channeled north of 6 Trillion to banks. A couple more bubbles (or an extended crash of the current), and we'll easily hit 00%. Then, its' a huge short squeeze for the dollar and Uncle Sam will look to taxpayers to pick up the shortfall. Think the IRS is an attack dog now? It'll look something akin to the end of Rome. With citizens chained to their farms. When the dollar goes, America is done for. Lil' Timmay Geitner and notable banking globalists are calling for the end of the dollar reserve and a new reserve currency. People really don't get the significance of that. Not only is a dollar collapse possible, but OUR GOVERNMENT IS MAKING OVERTURES IT INTENDS TO PUSH IT OFF THE CLIFF.
Our private and public spending is financed almost entirely by the belief that the dollars we repay, will be of approximate (or better) value than the dollars we borrow. When Bernacke FORCES the market to reconsider this little fairy tale, which he will (Timmay Geitner says yes), well, thats the End. Or, for the Perma-Bulls, 'a new beginning'. Except with Martial Law. 100% up-room to go in Defense, Security and Surveillance Tech companies ! The next growth industry to bust America out of its rut, perhaps?!??
