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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: regli who wrote (42663)	12/12/2005 11:43:22 PM
From: arun gera	Read Replies (1) \| Respond to of 116555

>(India) IT 2010: $60 bn but 500,000 people too few > What if by 2010 everyone in USA is able to understand Indian accented English, having spoken to 10 call center operators from India every month. Anything can happen. Isn't Arnold the Governator? Then, there will be 2 million people too many. The only shortage is people who can speak in an accent Americans can understand. -Arun

To: regli who wrote (42663)	12/13/2005 2:15:14 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

It's Too Late globaleconomicanalysis.blogspot.com Mish

To: regli who wrote (42663)	12/13/2005 2:21:36 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

A debt-based monetary system has a lifespan-limiting Achilles heel: as debt is created through loan origination, an obligation above and beyond this sum is also created in the form of interest. As a result, there can never be enough money to repay principal and pay interest unless debt is continually expanded. Debt-based monetary systems do not work in reverse, nor can they stand still without a liquidity buffer in the form of savings or a current account surplus. When debt grows faster than the economy, the burden of interest is bearable only so long as the rate of interest is falling. When the rate of interest reverses course, interest charges start rising faster than debt growth. This point was reached on 16 June 2003, the day the yield on the benchmark 10-year Treasury bottomed at 3.09%. Since then, debt grew from $32 trillion to $40 trillion, an increase of 25%. During the same period, annual interest charges rose by over 50%, from $1.28 trillion ($32 trillion at the prevailing average interest rate for debtors of 4%) to $2.0 trillion ($40 trillion at 5%). When interest charges exceed debt growth, debtors at the margin are unable to service their debt. They must begin liquidating. financialsense.com