Thursday, Dec, 22nd, 2011 – I’m tired of this debt crisis/bailout cycle. It is conflict, without resolution, a constant state of war. The blogs that I read tell me that a lot of people are tired of it, too. A million reasons are given for it. Blame is quickly assigned, fingers pointing. I can’t give you a date for when it will end. I can tell you how it will end, and why. It is not our fault that we were born into a trap that was set, before we were born. Yet, if we continue in our present ways, we will suffer the consequences. This is where life gets real Biblical, real fast. Whether or not anyone believes it or not, opinion will change nothing. In a comment on a blog earlier, I went over just a few of the points in this issue. I said this:
“The Bible certainly does have a great deal to say about Finance. In particular, this fiat currency system is condemned as an abomination. It will be destroyed. Compounding the condemnation is the fact that the entire system is based on pledging men as security for debt. Furthermore, the means of making a living, the tooling of industry, is pledged as security for debt. Another abomination. The world certainly is under a curse. The Bible says that those who do these things shall surely die.”
That is just a few of the transgressions, just dealing with the commercial system. I’ll leave it at that. One thing at a time is enough to take on. We absolutely must return to a system of just weights and measures to even think about putting this right. We get what we agree to.
Having seen it all go away, several times in the last 30 years, I know the desperation of trying to stay afloat and not making it. I’m posting your link because you are not alone. There are 10 million people who are one month’s expenses away from being out in the street.
I’ll believe “unlimited liquidity” when Germany gets on board with issuing Eurobonds. Until that happens, the ECB doesn’t have the resources to guarantee anything. Every other story I’ve seen said that the ECB doesn’t have anything, without outside help.
I met a man in a homeless shelter a few years ago, that had an interesting story. He was dressed a lot too well for that place. His story was that he had a government job, until he tested positive for amphetamines, once to often. He lost everything but his suit. For whatever reason, people are being squeezed out into the streets.
You’re singing my song. That’s exactly what I wrote in “Fiat Addiction” 2 1/2 years ago. The problem with this debt poison is that it doesn’t just eliminate out of your system. It ends up poisoning someone else. “Contagion” is a good word for that.
That was amusing. I loved the John Adams quote. The currency paper is a rag paper,cloth fibers, manufactured by Crane & Co. in North Adams, MA. At least it was, back when I lived in that county. There was always a big story about it in The Berkshire Eagle newspaper. Well, keep yer stick on the ice, yer powder dry, and remember that a herd of swine makes more sense than Congress, when they speak.
I doubt that there is any growth. In fact, I doubt that there has been any growth since 2007. I’d like to see GDP numbers adjusted by deducting total debt service and trade imbalance from the raw GDP numbers. I’m sure that comes out far short of anything that can be spun, as good news.
This global game of “pass the hat” is just fiddling, while the financial world burns. The clock is counting down to the final buzzer. The banks are in the wealth transfer business. Nations will not have any game winning heroics. This will come down to financial power bases that recognize no national boundaries.
Most people would find that hard to believe, but when you’ve seen it with your own eyes, you know that is reality. When you wake up in a campsite, just before dawn, and hear three beer can tabs pop, that is what your fellow campers have for breakfast.
I was at a shelter once, where the policy for alcohol and substance abuse was very strange and dysfunctional. I was told about a man who was turned out in the street, because he failed the breathalyzer test. It was a bitterly cold night. Alcohol and hypothermia do not mix. The municipal policy is supposed to be that an individual in that condition is to be taken to a detox center. This shelter didn’t see fit to call to make those arrangements. That man was found dead the next morning, in the park across the street.
We are seeing people who know the facts, researched the facts, and are now ignoring the facts. The only way they can do that is by deceiving the public. It’s the same, everywhere. Only when confronted with the consequences of ignoring the facts, do we see admission of the facts.
They can’t even bail out Italy’s $2.7 Trillion. Leverage? That’s what caused this, in the first place. “Sophisticated market engineering” is a fancy term for fraud. It’s not just insanity. It’s organized crime.
In the area I was in for the last 3 years, the homeless population doubled since 2007. That was just the people that sign all of the paperwork and apply for the benefit programs. The total is actually much higher.
Yes, this is a problem. The reality is a bigger problem. At this moment, there are 10 million people who are one month’s expenses away from being out in the street. They will go somewhere, if that happens.
As I wrote in the introduction for today in “The Daily Climb”, I’m tired of this debt crisis/bailout cycle. I can’t say when it will end, but I do know how it will end, and why. We have a lot of changes to make, and a lot of hard choices. We should do that before we are forced to.
For a month we knew this had to be coming. We knew that the United States debt was as bad, or worse, than any European country. This inter – bank “liquidity” problem is synergistic in nature, because it is all borrowed debt. Multiple levels of interest obligations put the currencies far behind on the debt curve.
Apparently, the new maxim in banking may just be the old maxim: “If you build it, they will steal it” . So now, what do you do with people who just demonstrated that they can’t be trusted? Don’t do business with them. No deposits. No returns.
We were warned for a decade that this would happen. An era of speculation and paper manipulation has left us with a commodities market that is losing the ability to function, in either production or delivery. What a tangled web mining stocks wove. Now, it’s time to face reality, the reality of real money.
Austerity is a hard lesson to take. I liken the dependency to fiat currency to that of drug addiction. It runs it’s course, the addict either comes out of treatment, or dies. It is said that fiat currencies last about 40 years. One theory that makes sense is that it takes that long for most of the foolish people to die off. The people that are left have to dig out of the hole, or perish.
The economy is like a car that doesn’t need brakes, because it has a horn. Disconnecting the currency from real money is such a car. This steep ramp that the economy is rolling down has only one exit. Unless currencies are fixed to a system of commodity standardization, there are no brakes. Some would argue that the steering doesn’t work, either. It is literally Hell on wheels.
There is an obvious sense of urgency because this crisis is much worse that 2008. in fact, 2008 was much worse than we were told. The amount of debt that was thrown around turned out to be $16 Trillion. Peports are that 30% of that will never be repaid. As we see today, that debt made today’s problem much worse. This is the decay spiral of a Ponzi scheme. How much longer will people believe the lie that fiat currency is money? Desperate people will believe whatever they are told.