Comments on: Living in de Nile

By: enjoy the decline

enjoy the decline — Sat, 05 Oct 2013 18:44:01 +0000

declining interest rate scam, i.e. how the western world has financed
itself for decades (simplified, but accurate):

year 0
$10k loan @ 10% for 10 years is $1k/year interest.
after 10 years you have only paid interest, $10k principal is still there.
you spend the $10k on hookers, whisky and smokes.

year 10
interest rates at 8% let you borrow $12.5k with $1k/year
interest. pay $10k principal, leaves $2.5k to spend. you spend
it on hookers, whisky and smokes.

year 20
interest rates at 6%, $1k/year interest, gives you $16,667 loan,
leaving $4166.67 to spend. you spend it on hookers, whisky and
smokes.

year 30
interest rates at 4%, $1k/year interest, $25k, leaving $8334 to
spend. you spend it on hookers, whisky and smokes.

year 40
interest rates at 2%, $1k/year interest, $50k, leaving $25k to
spend. you spend it on hookers, whisky and smokes.

you’ve spread out $50k of spending on hookers, whisky and smokes
over 50 years. your life was pretty good. but you neglected to
pay the principal, whoops. civilization goes down the
crapper. grass huts all around!

this is “growth” on the exponential curve of a “modern keynesian
finance” civilization.

enjoy the decline.

By: Joe

Joe — Fri, 04 Oct 2013 09:20:50 +0000

the exponential function is less interesting with respect to electronic / fiat currency than with real world commodity consumption – population growth, fossil fuels, motor vehicles, jet air travel, etc.

I think its safe to assume that the top 1% will not countenance government devaluation of their purchasing power. Any devaluation / default would have to be done in a way that the top 1% get to remain the top 1%.

By: Wimminz

Wimminz — Fri, 04 Oct 2013 06:36:22 +0000

Tools / toys

By: Digger Nick

Digger Nick — Fri, 04 Oct 2013 00:49:40 +0000

booze and other intoxicating substances, probably.

By: Phoenix

Phoenix — Thu, 03 Oct 2013 23:14:26 +0000

By the way, if you had no debts but also no major assets and ~25000GBP, what would you spend it on?

By: Phoenix

Phoenix — Thu, 03 Oct 2013 23:12:27 +0000

What I’m curious about is, who gets defaulted on if there is a default? From my understanding, tax revenue (about $2T/yr) goes directly towards financing interest on the public debt first (interest payments are about $0.36T/yr as of 2012), then what’s left over gets spent on other govt spending. So, realistically, there won’t be a default in the next month as far as foreign creditors are concerned, but perhaps another story for some people in the US.

By: wimminz

wimminz — Thu, 03 Oct 2013 22:15:06 +0000

Absolutely, but this “money” is a useful tool, since everything we own is purchased with it, and if it is purchased on credit then that debt = leverage.

To call it a deal with the devil of biblical proportions is to understate the problem.

This third electronic form of money is not backed by gold, or the fiat promise of a state, but by everyone who owes any of it to anyone else for anything, I don’t NEED to repossess the million underwater mortgages and tank the housing market, the true value, the true backing, the true representation of that worth is the future lives and economic output of everyone who owes said electronic money.

***THIS*** is the reason I amass neither electronic savings in the bank nor cash savings under the bed….

Money owed is a blood debt for life.

Money saved is dust in the wind.

My earnings cover my expenses with some to spare, and my “work” is piss easy and a pleasure to do.

——————————————————————–

Gold? You don’t own it, it owns you….

By: hans

hans — Thu, 03 Oct 2013 21:54:31 +0000

Then add to the waters of the Nile that all those “monies” owed never existed in the first place and were “created” out of thin air as credit.
Then add the interesting fact that the banksters only ever increase the credit supply by the amount of debt they create.
But where the fuck is the money for paying of the interest on this debt supposed to be coming from?
Viola, welcome to the global central banking ponzy scheme. Courtesy of (amongst others) the Rothschild banking clan.

I think I already mentioned it some time ago, if you want to know that a political party is legit then look at them talking about money.
All they talk about is “growth über alles” and “JOOOBS” -> bankster bitches.