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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: clochard who wrote (108789)	6/19/2010 7:55:19 AM
From: prometheus1976	Read Replies (1) \| Respond to of 110194

Nope,Skeeter is correct..debt based money is loaned into existence,but the INTEREST is not,so as more money is created then more interest payment is needed but is not created..please do some research . And remember the adage "All debt must ultimately be repaid(extinguished),either by the borrower,or by the LENDER" regards,P1976

To: clochard who wrote (108789)	6/19/2010 11:17:10 AM
From: RetiredNow	Respond to of 110194

It's all about probabilities. What is the probability that governments will abuse fiat currencies? I think it is 100%. So it's not a matter of if, but when. Given that assumption, you can draw the conclusion that debt based monetary systems don't work very well over the long run, because they breed instabilities that distort the allocation of capital or choke it off. These instabilities are avoidable if the monetary system was structured with guarantees of value in some way. A gold standard is one way to do that. Statutory debt to GDP , deficit to GDP, and money supply to GDP limits are all another way.

To: clochard who wrote (108789)	6/20/2010 9:18:08 PM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 110194

cobol, yes, debt based financial system always collapse b/c they are ponzi schemes that rely on ever increasing credit (debt) to keep the system from imploding. as explained by another poster, interest isn't created with the debt - so someone else has to borrow money (create new money) and you have to earn it from them to pay off your debts. this process can't only be sustained if UNLIMITED DEBT is possible - and it isn't. compounding growth eventually goes "vertical". look at this chart (bottom of article)... market-ticker.denninger.net look at the YOY change in actual GDP (minus deficit spending) market-ticker.denninger.net we've dropped over 10% each of the last two years! the controlled media calls this collapse a "recovery." as you've noted, however, the time from inception (1913) to collapse can be substantial - but don't make the mistake of that time lapse meaning the collapse won't occur with 100% certainty. the private sector his debt saturation in about 2008. the federal government has increased debt $1.7 trillion on the books since then (trillions more off the books via fannie, freddie, the fed and whatever other scams they have going on in secret). when the government hits the debt limit, where will new debt (money) come from? it won't - and then many outstanding debts will implode - and this will almost certainly cause a banking failure. swarmusa.com for a simplified example... contrarianfaith.blogspot.com contrarianfaith.blogspot.com this interview resonated with me... kingworldnews.com