SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GraceZ who wrote (233908)12/22/2009 12:33:53 AM
From: Skeeter BugRead Replies (2) of 306849
 
also of note is that an ever increasing requirement for debt is an exponential function. exponential functions ar enot sustainable - hence the system eventual broke down and is currently in the process of breaking down.

market-ticker.denninger.net

note the flat part at the top of the curve - THAT IS WHAT SCARES THE H*LL OUT OF BERNANKE, GEITHNER AND OBAMA.

if debt declines, the financial WMD that is debt based money literally IMPLODES.

there is not enough money in the system available to pay back the existing debts with interest, so some marginally increasing higher percentage of loans go bad - and this is a MATHEMATICAL CERTAINTY - there simply are not enough dollars in the system to pay back debts. this threatens the banks as this drives down the collateral value in addition to the banks eating a loss on the defaulted loan.

it threatens society because the less debt, the less money, the less money, the more foreclosures, the less debt, the less money, the more foreclosures...

the private sector stopped borrowing at a rate to keep that exponential debt chart rising. the government has stepped in.

*everything* the government has done was done to get debt increasing again. cash for clunkers - increased debt. housing credits - increase debt. tarp - increased debt. stimulus - increased debt. the government has papered over the debt collapse in the regular economy. make illegal aliens legal - will increase debt.

one of three things will happen.

1. the private sector goes on another debt binge for some period of time (unlikely).
2. the government keeps increasing debt until we have a structural break down.
3. both the private sector and the government reduce debt, the monetary supply collapses and we enter into a deflationary collapse.

have you ever wondered why the fed never gripes about debt problems as debt went exponential? his true mandate is to continually increase debt!

what they don't tell you is that money DOES NOT HAVE TO BE BACKED BY DEBT and all these problems could have been avoided.

the big losers in that kind of system, though, would be... ta da... the banksters. they'd lose their debt cut on each new dollar (debt payment instrument) put into the system and society would benefit from the reduced cost.

god forbid society benefit!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News