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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44787)	1/5/2009 8:26:43 AM
From: elmatador	Read Replies (1) \| Respond to of 218913

The next stage is some type of war in order to create enough destruction and inflation. Message 25296373 TJesque! ouold be Israel is concocting that war...

To: TobagoJack who wrote (44787)	1/5/2009 8:38:25 AM
From: elmatador	Respond to of 218913

"Great piece by Karl Denninger explaining why the end-game is inevitable." courtesy of London Guy. To the extent that these dollars that are created are exactly matched against actual production (defined as growing something, mining something or manufacturing something - that is, an action that can ultimately be traced in it's energy to the sun, the only source of a "freebie" in our solar system) there is no inflationary or deflationary impact, as the debt in the system is exactly matched against the output in the system. The monetary system is in balance. This is true for all modern (non-hard-asset backed) monetary systems. We are in this mess because we created too much debt for the balance of the system. That is, too many people bought houses with too much leverage (that is, too much debt was being taken on compared to actual production represented by salary), companies were purchased with too much leverage (the "M&A" game) and so on. Mortgage-backed securities, credit-default swaps, all of these are forms of debt and their issuance was deregulated to the point that people's "animal spirits" drove prices much higher, as leverage was employed at higher and higher levels. Message 25296373