How much longer can it keep going? The politicians are stuck. On one side is violent internal upheaval or devastating war, on the other is the collapse of their one-world dreams in an economic morass that will take decades to clear up.
The western world is finding out what happens when its collective credit limit is exceeded. Debt is really nothing more than spending tomorrow’s earnings today. How much longer can money creation keep this sinking ship afloat? Quantitative easing or asset purchase programs are just euphemisms for debasing the currency.
The Bank of England governor Sir Mervyn King said yesterday “This is the most serious financial crisis we’ve seen, at least since the 1930’s, if not ever.”
It’s all a house of cards. If one of the players folds his hand then the whole of world finance risks descending into the abyss.
The ponzi scheme…
The dot com bubble burst, so to keep ‘it’ going at all costs, they dropped interest rates and created more money which then created the real estate bubble. When that collapsed, they changed the rules so that the banks rubbish assets on the ‘books’ aren’t held to market value. Then, print more money and push all that rubbish onto the governments. Except, now the governments are in trouble since they’ve bought too much rubbish.
So, let’s print more money… Counterfeiting has become the norm and the oncoming hyperinflation will wake up even the most cynical Keynesian. The derivative banking and fractional reserve banking has gone too far and is about to cause world collapse.
Here’s an idea… the sooner people break free of the “left vs right,” divide and conquer con game the sooner something constructive can actually be done. Avoid the distractions that are thrown in front of us. Keep your eye on the ball… or should I say, the bankster…
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don’t forget the “student loan bubble” that will burst very soon. The kids have been sold a bill of goods for thousands of dollars and now they can not pay back the loans, not because of book smarts but no one has taught them common sense. I drop out of college because the jobs out there i would not pay enough to pay back the loans i had. I left college and started my own business but now because of government interference i might have to give up the business too …… but then again i wasn’t raised that way…. i was rasied to fight for what’s mine, and even fight for what’s yours as long as you earned it
There are many European politicians who see the writing on the wall. They know that a momentous downfall is going to happen sooner or later and are trying to avoid kicking the can down the road.
Many Europeans have witnessed devastation and know what it is like to survive very hard times.
An ex Australian prime Minister coined the phrase ” It’s the recession we had to have” of the early nineties economic difficulties.
There are many Euro politicians realising that shortly there will be “A Depression we have to have”. Although dreadful to contemplate leaving it to fester will only make the situation worse.
As that now notorious “BBC Trader” interview of last week made the point : The economic situation is now a spreading cancer – it will not go away trying to ignore it.
What frustrates me is this problem like most problems can be fixed. The U.S. or Europe could bring back their economy and reduce the debts and improve the lives of their citizens. Human nature generally fights the obvious. I do it you do it and politicians do it. I am sitting in my comfortable lounge chair in front of a toasty warm wood stove when I have work to do outside. I intend to sit here wasting time on the Internet until lunch time. It’s human nature to do what is easy and returns the most immediate comfort/pleasure. Politicians want to be liked but they want to be elected even more, so they will do what the lazy citizens want; That is they will tax, borrow and print money to put off the inevitable bad times and continue to hire more union workers into unnecessary government jobs and extend unemployment benefits to three years so that the unemployed don’t have to take a job that is beneath them. Everyone knows this will make the collapse worse and hurt everyone more, but no one cares because today life is still “relatively” easy. We could have been on the road to recovery today if the politicians had the courage in 2008 to take the steps that would fix the problems in our economy. We could be on the road to recovery tomorrow if the politicians would do what they should today. Eventually we must do those things or face the fate of many other countries in history which failed to adapt to new realities.
We need hard common sense leaders. There are none running for office today, our system discourages it. I am hoping there is someone out there who will step up and lead us out of this self created disaster but I’m not seeing anyone. Time will tell…
By the way I have a BS and MBA and I never got student loans and when I wrote the last check for my last class I was debt free. I wasn’t 20 years old I was 40 and in my lifetime I was out of work exactly one week before I retired. I worked for a college in my long carear and I saw students taking the maximum student loans so they could buy a nice car and live in an apartment and not at home. rarely did I see a student take ONLY as much money as was necessary for tuition and books. Who did you think was going to pay back this “free lunch”???