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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (233908)	12/21/2009 11:51:36 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

Grace, a gold analogy doesn't apply, either. if i dig up an ounce of gold, i have NOT increased the monetary supply. not $1. if i take out a $1100 loan, though, $1100 is added to the monetary supply. our monetary system is debt backed. if i dig up an ounce of gold, i have increased the size of my claim ON THE PRE-EXISTING MONEY SUPPLY. i have not increased money supply one iota. if i dig up gold significant gold, all else being equal, my actions will lower the price of gold rather than increase the money supply. the banksters don't need to rob every single person in an economy, they just need to rig it so that the economy as a whole must come to them to increase money supply. let's make this simple... i'm adam and eve - the only humans alive. god, that is goldman sachs, lends us $100k. $100k exists in the monetary system. let's say that the terms of the loan require us to pay back $200k (P&I). only $100k exists in the whole economy. goldman's law, just like america's law, DEMANDS that dollars be used to settle debts (not gold or corn!). i can dig up 50 tons of gold (or corn, etc...), but we still don't have the extra $100k to pay back the debt on our land. we will default on that loan unless more dollars are created to through the issuance of more debt. period. regardless of my 50 tons of gold or corn. you are correct that digging up gold or growing corn increases wealth, but wealth and the monetary system are two different things. the banksters gamed the monetary system in such a way as to ensure that ever increasing debt is required to create more money to pay back existing debt plus interest with the end result that the banksters get a cut out of every dollar in the economy! the net result is that wealth is transferred from the economy to the banksters. d*mn vultures. this whole scam was designed to be complex and counter-intuitive and kept out of the education system b/c it is the means by which our nation is looted. most folks only look at their own situation instead of the system as a whole.

To: GraceZ who wrote (233908)	12/22/2009 12:33:53 AM
From: Skeeter Bug	Read Replies (2) \| Respond to 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 HLL 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!