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


To: John Vosilla who wrote (126947)12/23/2016 5:56:38 PM
From: TobagoJack  Respond to of 217734
 
it is difficult to have a debt crisis when

- the true borrowing cost is high to very high and had been for a long time (to traditional borrowers that are non-state)

- the true savings is very high and covers the borrowing

- the asset / collateral base grows

- the loan to value shrinks

- the middle class expands

etc

quasi / true state-borrowings are policy borrowings, underwritten by printing against future income, and makes sure the gear works continue to turn

- qe by another name

- lubricates further reform, continued growth, under condition of social stability
i.e. a key debt goes bad, paper it

- the capability / capacity to sustain calibrated losses is a key competitive advantage

in the mean time the biggest stock of collateral is being tee-ed up to be transferable / tractable, that be rural land reform, and at 15% deposit reserve ratio, shall enable US$ 250 trillion (T) of capital formation for 50-60% of the population (rural landed population + rural landed population living in cities) over the coming 10-30 years, depending on pace of reform, targeted growth, and stability condition of urban / rural / coastal / inland / east / west / north / south / domestic / export / demographic

brave new world

by comparison trump is proposing 1 trillion for infrastructure and 1 trillion for nuclear weapons upgrade, all over the coming too many years, and the two efforts would benefit how many folks?

now we better see the scale of big against small

are there big risks? sure. china has been all about big risks.