Its a thing, being in denial, a thing we all do to a greater or lesser extent.
Obama saying he ain’t shifting, so if the republicrats stick to their guns too the US may default on it’s debt obligations on the 17th…. and…? It’s not like the US *****CAN***** pay off it’s debts even if it wanted to, it is literally underwater, and all a debt ceiling raise will do is the same thing as loaning some sucker who is underwater on his McMansion even more money, so they can make another few mortgage payments…
It doesn’t reduce the margin by which they are ****ABLE**** or ***EVER WILL BE*** to settle the debt they owe…
Of course, this can only possibly end one way, captain calamity, total collapse of the US economy and world war drei, as everyone knows, but, everyone is living in denial.
There are basically two forms of currency.
- Fiat
- Representative.
When the US$ was backed by gold it was a representative currency, when it gold standard was abandoned it became a fiat currency, and the great think about fiat currencies is you can run the printing presses 24/7
The above statement in red is living in denial.
There is a third form of currency, and it is the sort we all use every day, and that is a purely electronic currency, the few remaining notes and coins are merely fiat tokens of said electronic currency.
An electronic currency doesn’t even need a printing press or ink, just one person to type at one keyboard
10 FOR X=1 to 1000000
20 OPEN $FED_TOTAL_MONEY_SUPPLY FOR INPUT
30 INPUT +1000000000
40 NEXT
You can do that other shit too
10 OPEN $FED_TOTAL_MONEY_SUPPLY FOR INPUT
20 INPUT (DIVIDE BY 1000)
30 OPEN $CURRENCY=”DOLLAR” FOR INPUT
40 INPUT $CURRENCY=”NEWDOLLAR”
(apologies to all the coders for the nonsensical code)
At a stroke I can replace 1,000 “old” dollars with 1 NewDollar.
That wad of used twenties 6 inches high is now worthless, that sweet half a mill stashed in your retirement fund account is now a mere 500 NewDollars
Don’t say it can’t be done.
Don’t say it won’t be done.
Don’t say ANYTHING without looking at at exponential curve, which is what, by definition, interest is, which means interest on the national debt etc etc…..
Two things make that exponential growth ramp up.
- Ramping up the rate of interest
- Ramping up the amount borrowed
So, by definition, only two things can pull that exponential growth back to the shallower slopes of the curve.
- Lowering the rate of interest
- Substituting a much lower amount borrowed.
Lowering interest rates has been done up the wazzoo, you can’t go lower than fuck all.
The only trick left? Yup, divide the number showing the amount borrowed, and by a big chunk, divide by 10 is pointless, unlike interest rates this is a trick you can only pull once a generation, 100 ain’t enough, it will only buy a year or two, but divide by a thousand… now we’re talking.
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.
Comment by hans — October 3, 2013 @ 10:54 pm
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….
Comment by wimminz — October 3, 2013 @ 11:15 pm
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.
Comment by Phoenix — October 4, 2013 @ 12:12 am
By the way, if you had no debts but also no major assets and ~25000GBP, what would you spend it on?
Comment by Phoenix — October 4, 2013 @ 12:14 am
booze and other intoxicating substances, probably.
Comment by Digger Nick — October 4, 2013 @ 1:49 am
Tools / toys
Comment by Wimminz — October 4, 2013 @ 7:36 am
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%.
Comment by Joe — October 4, 2013 @ 10:20 am
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.
Comment by enjoy the decline — October 5, 2013 @ 7:44 pm