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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: clochard who wrote (108789)	6/20/2010 9:18:08 PM
From: Skeeter Bug	1 Recommendation Read Replies (1) of 110194

cobol, yes, debt based financial system always collapse b/c they are ponzi schemes that rely on ever increasing credit (debt) to keep the system from imploding. as explained by another poster, interest isn't created with the debt - so someone else has to borrow money (create new money) and you have to earn it from them to pay off your debts. this process can't only be sustained if UNLIMITED DEBT is possible - and it isn't. compounding growth eventually goes "vertical". look at this chart (bottom of article)... market-ticker.denninger.net look at the YOY change in actual GDP (minus deficit spending) market-ticker.denninger.net we've dropped over 10% each of the last two years! the controlled media calls this collapse a "recovery." as you've noted, however, the time from inception (1913) to collapse can be substantial - but don't make the mistake of that time lapse meaning the collapse won't occur with 100% certainty. the private sector his debt saturation in about 2008. the federal government has increased debt $1.7 trillion on the books since then (trillions more off the books via fannie, freddie, the fed and whatever other scams they have going on in secret). when the government hits the debt limit, where will new debt (money) come from? it won't - and then many outstanding debts will implode - and this will almost certainly cause a banking failure. swarmusa.com for a simplified example... contrarianfaith.blogspot.com contrarianfaith.blogspot.com this interview resonated with me... kingworldnews.com

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