tag:blogger.com,1999:blog-11368628.post5471988945023558646..comments2024-03-28T17:49:27.846-04:00Comments on Daniel Greenfield / Sultan Knish Articles at DanielGreenfield.org : The Economics of Planned Global FailureDaniel Greenfieldhttp://www.blogger.com/profile/13575285186581875356noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-11368628.post-62072993032102450742013-06-26T09:37:43.644-04:002013-06-26T09:37:43.644-04:00The socialist welfare state is not possible withou...The socialist welfare state is not possible without a debt-based, monetary system. Having a completely elastic currency allows the state to borrow indefinitely from the future, with one proviso - gdp must grow at a rate grater than the increase in debt plus debt service. By service, I mean interest expense, since all principle can be refinanced and always is on a system-wide basis.<br /><br />When GDP stops growing or declines, the whole debt edifice is endangered. We reached this point a number of years ago but 2008 was the first real earthquake. Monetary expansion at incredible rates aided by a massive derivatives complex, such as interest rate and credit default swaps, drove down debt service costs making the expansion of debt easier in the face of collapsing savings rates and productivity.<br /><br />Today, those days are over. The mathematics of debt compounding overwhelm us even at historically low interest rates. There is no capital formation, as there is no savings pool to fund it. The capital stock of the nation is degrading at a remarkable rate, making worse an already impaired economy's ability to produce income.<br /><br />So, crony capitalism is a fallback position for the central planners as a means of increasing capital formation, according to their designs. It is, in a word, fascism. Problem is it doesn't work.<br /><br />I expect a very large dose of speed to be injected into the economy, shortly, through the use of negative, nominal interest rates on reserves. This will force the big banks to lend the money into the economy, forcing up inflation and reducing the real value of debt. As Mises described, a crack-up boom will ensue, before the whole system collapses.Marknoreply@blogger.comtag:blogger.com,1999:blog-11368628.post-36809700196194763932013-06-26T05:41:45.029-04:002013-06-26T05:41:45.029-04:00I still don't get the arithmetic here. For ev...I still don't get the arithmetic here. For every dollar someone is in debt, someone else has a dollar of credit. Who is holding onto all these debts?fsynoreply@blogger.comtag:blogger.com,1999:blog-11368628.post-6189894096709155492013-06-26T03:32:34.131-04:002013-06-26T03:32:34.131-04:00The only solution is to exit the system entirely, ...The only solution is to exit the system entirely, translating your wealth into 'stuff'' the state can't expropriate. Longer term people seem to have been dumbed down and can't see they're being led to the slaughter. It resonates with Atlas Shrugs where the productive just flat out go on strike -- oil well owners set their wells on fire and just let them burn, and everyone with anything of value prefers to destroy it than see the parasitic degenerate corrupt state get ahold of it. All we can do is short term keep your wealth for a small circle of those you're close to, and long term destroy what you can't keep or convert or pass on to others as productive as yourself. The State will just keep interfering until everyone is equally culpable and victimized and unable to extricate themselves. Our one real enemy is this maniacal Luciferian self-worshipping State ... Stephen J Carterhttps://www.blogger.com/profile/14250355497674756363noreply@blogger.comtag:blogger.com,1999:blog-11368628.post-62567040119317691582013-06-26T00:45:11.340-04:002013-06-26T00:45:11.340-04:00The destruction of the dollar due to this never-en...The destruction of the dollar due to this never-ending QE will cause the dollar to cease being the world's reserve currency, at which time overseas dollars in the trillions will likely find their way back here since there is no reason to hold them any longer. And the inflation we've all been waiting for for 4 years now will finally result, big time, destroying what is left of the middle class and it's wealth. And it's being done deliberately. The submission to a New World Order can't allow the U.S. to exist as a strong nation. And the too-big-to-fail pathology is just one of the methodologies in use to get us to that point of weakness.<br /><br />Failure has indeed been institutionalized, on a global scale. How many people realize that the U.S. (the FED) is backstopping IMF loans to countries all over the world? Yes, your hard earned dollars paying for empty cities in China. Does anyone remember the $20B (billion) from an IMF loan that 'disappeared' in Russia years ago? Afterwards, the banksters were tripping all over themselves to make new loans, since Uncle Sam was guaranteeing the deal. <br /><br />The only way to survive that I can see is to convert your wealth into hard assets and precious coinage. And get a rifle or two. When the cities no longer have any food guess where the masses will be going?Bobnoreply@blogger.comtag:blogger.com,1999:blog-11368628.post-56380823639640863632013-06-25T21:09:06.923-04:002013-06-25T21:09:06.923-04:00May your nanny never wear the burqa,May your nanny never wear the burqa,Larshttps://www.blogger.com/profile/13244208740850193859noreply@blogger.comtag:blogger.com,1999:blog-11368628.post-63121996707033076112013-06-25T10:23:10.562-04:002013-06-25T10:23:10.562-04:00In order to create money the government has to go ...In order to create money the government has to go into debt. That's the only way the "seed" dollars and such originally come into being. Fractional reserve banking is a machine to turn this original money into more money and more debt. Thus the entire US economy is built on the issuance of debt. The system is having trouble as the marginal utility of debt to increase GDP is getting lower and lower. Eventually the system will collapse either though drastic economic destruction or inflation, perhaps hyperinflation. What can't go on forever won't, and ever-increasing debt is one of those things.IgorRhttp://www.gmail.comnoreply@blogger.comtag:blogger.com,1999:blog-11368628.post-79355198028392852122013-06-25T08:10:25.415-04:002013-06-25T08:10:25.415-04:00Daniel, individual human beings are not that stupi...Daniel, individual human beings are not that stupid. The system is horribly deranged, but people always find the means to survive. Immigrants from East Europe and China thrive in the US. People are clever, shrewd, and resourceful. They are not going to be left without the skills needed to take care of themselves. However, I would much rather be living in the 1980's USA than in the USSR.<br /><br /><br />Ex-Dissidenthttps://www.blogger.com/profile/03837109472357860889noreply@blogger.comtag:blogger.com,1999:blog-11368628.post-17396720799154190332013-06-25T07:26:51.992-04:002013-06-25T07:26:51.992-04:00Miserable jerkoffs like Krugman and Bernanke force...Miserable jerkoffs like Krugman and Bernanke force us to pay interest from our real hard-earned labors on fake money endlessly created out of thin air by the Fed. <br /><br />Corporatism at the top, and socialism at the bottom, aided and abetted by lying, leftist, malignant narcissistic scum like Obama...<br /><br />Welcome to the brave new world of the USSA. Conservative Language Institute of Americanoreply@blogger.comtag:blogger.com,1999:blog-11368628.post-35016974956052563562013-06-25T07:21:07.145-04:002013-06-25T07:21:07.145-04:00Daniel-
You nailed it once again. This is similar...Daniel-<br /><br />You nailed it once again. This is similar to what I had been thinking about with local school districts where the Central Office staff is familiar with the broader social, political, and economic transformation plans. Because they are lying to parents, taxpayers, and school boards about what is essentially mind arson, all of a sudden anything goes.<br /><br />We get side consulting business. Ignored huge conflicts of interest. Ignoring cheating. Ignoring deceit. Ignoring theft until the thieves cease to be useful. We really are in a situation at all levels of government now where the public sector and their cronies are trying to return to a feudalistic system.<br /><br />We taxpayers are just the source of funds who must be kept as empty headed and dependent as possible. Well a political electoral majority must be kept dependent.<br /><br />It does feel like the final days of a massive shakedown, doesn't it? And we are about to find out the Cold War ended because there were better ways to go after the West's resources and consciousness. Mostly invisible ways.<br /><br />And all this debt IS going into the pockets of the politically connected. Robinhttp://www.invisibleserfscollar.comnoreply@blogger.com