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

To: MulhollandDrive who wrote (234019)	12/22/2009 4:57:57 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

>>i think the given assumption here is that you the corn grower can find a willing buyer for the corn, THEN you can pay back the debt with whatever profits were made from the labor...<< that's the micro view that isn't relevant to the discussion. this is a macro view issue - society needs to take on eve increasing debt to pay back previous debts + interest. this can only be seen from a macro point of view. >>denninger's position is that the debt overhang now is too great for the country to 'earn' their way out....<< you can't earn what doesn't exist, right? in order for money to exist, it has to be lent out (or it doesn't exist). principle + interest due is a larger number than the money available to legally pay it off. if society pays off its debts, money supply decreases meaning more debts gets defaulted - a very vicious cycle that will bring down all the banks and make their obligations to the citizenry unpayable. BOOM! >>we have a lot of debt slaves walking around right now, and the number of the slaves going the default route is rising every day<< and this threatens the big bankers and they will leverage government until it collapses to buy more time. that's the end game - banking collapse, government collapse.