Thanks for your comments, Al.
I can see we don't disagree too much, in fact, we agree more than we disagree.
Frankly, I don't know what is going to happen about the mountains of debt and derivatives because they have lives of their own and, unless serious attempts are made to regulate both, they will, like Frankenstein, destroy their maker --- and who knows what else?
Of course, regulation means interference with "free" markets but, I suppose, since the markets aren't really free, anyway, it won't make much difference --- except, of course, to those who are responsible for the debt and/or the derivatives and who benefit from their creation.
I don't think it's just a question of trusting Uncle Sam to repay although, with what we have already seen with the CEOs, trust will be involved. I am simply quoting the opinion of so-called "experts" who believe that unless there is significant inflation, which there doesn't seem to be, the debt cannot be repaid. In the circumstances, since it is unlikely that the debt can and will be repaid one can reasonably expect that it will increase and, in the absence of any particular regulation, at an exponential rate.
Likewise, the interest on that debt..........
I do not believe any economy, private or national, can sustain such an eventuality.
I heard an amusing expression a few days ago --- trust is like virginity --- when you've lost it, it's gone. |
