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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated
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To: koan who wrote (25125)6/11/2011 7:07:01 PM
From: Skeeter Bug2 Recommendations  Read Replies (1) of 119360
 
>>So how do you explain our ability to pay off the massive debt the private sector had in the 30/40's and the gigantic debt we built up during WWII?

By 1950 both the private and public sectors had little debt and we had the best decade ever.<<

you can't debate the mathematics. they are what they are.

2=2=4, not 5. math. get to know it.

first, we never "paid off" the debt.

so your premise is false.

second, as has been pointed out, the world lay in rubble and there was no competition for america's manufacturing capacity.

IOW, FOREIGNERS borrowed money into existence and used it to purchase american goods.

so the foreigner WENT INTO DEBT, which enabled the debt money ponzi to proliferate a bit longer.

we face something entirely different than we did in the 1940s, and i bet you can figure out why if you put your mind to it.

PS - the fed targets a societal debt curve (read, "planned economy"). if the private sector is gorging on debt (late 1990s), then the public debt is reduced to keep in that steady, parabolic, credit bubble curve. once private debt taking plummets (as is the case now), the fed uses the government to try and "juice" credit according to their plan.

here's the chart of fed criminality...

market-ticker.org

look how smooth that curve is - even though there were MASSIVE swings in both private and public debt... the fed "planned" out the parabolic, credit bubble "blow off top..."

now it is time to drop.

massive credit destruction awaits.

the ponzi will end.

they.

always.

do.
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