19-06-2012, 06:27 PM
It's degenerated into a complete Ponzi scheme.
Some august organisation announces an injection of faux "money", whose real world value is equivalent to that of Monopoly notes.
There's some pass the parcel, with banks borrowing at say 3% and then relending at say 6% - in effect being gifted a free profit.
But it's not risk free. It must be tied to some collateral.
And there's the problem. All the collateral - be it a house in a ghost town, or a future promise to pay by some sovereign nation - is junk. Worth a fraction of the value at which it is marked as collateral.
Small and institutional investors are finally realizing that when default or "haircuts" happen, they're being pushed to the back of the queue, and getting pennies back on their investments.
There is too much debt in the world.
This debt will never be repaid.
The bubble will burst.
ATMs will stop working.
Pensions will stop paying out.
Teachers, doctors, nurses, will no longer be paid.
The system will reset as dramatically as Weimar Germany.
The only question is When?
Some august organisation announces an injection of faux "money", whose real world value is equivalent to that of Monopoly notes.
There's some pass the parcel, with banks borrowing at say 3% and then relending at say 6% - in effect being gifted a free profit.
But it's not risk free. It must be tied to some collateral.
And there's the problem. All the collateral - be it a house in a ghost town, or a future promise to pay by some sovereign nation - is junk. Worth a fraction of the value at which it is marked as collateral.
Small and institutional investors are finally realizing that when default or "haircuts" happen, they're being pushed to the back of the queue, and getting pennies back on their investments.
There is too much debt in the world.
This debt will never be repaid.
The bubble will burst.
ATMs will stop working.
Pensions will stop paying out.
Teachers, doctors, nurses, will no longer be paid.
The system will reset as dramatically as Weimar Germany.
The only question is When?
"It means this War was never political at all, the politics was all theatre, all just to keep the people distracted...."
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war