[ReverseEngineer]

The sinking of freshly minted money into paying off all the debt created over the last decade is precisely why we are not seeing as of yet hyperinflation hitting the product stream.

As Henry & Ben print more money, all the banks are doing with it is reconciling out the balance sheets, accounting for tons of contracts in the CDS market we know little to nothing about. Everyone is a counterparty to someone else, so profit taken one place here int he TRILLIONS just goes to pay off debt in another place ALSO in the TRILLIONS. Where's the money printed after this? Its GONE, the Anti-matter of Debt swallowed up the Matter of freshly printed money, the Monetarization of the debt.

Most of this money is going to resolve the debt problems of the mega rich, who own most of the world, but they don't end up any richer because of it. Think of it this way, if you are a McMansion owner and the Goobermint gives you $1M to pay off your mortgage, GREAT! You no longer owe anything on the McMansion. Thing is, owning the McMansion STILL is a money sink, it makes no money and costs a LOT to operate. Same thing a GM, you could pay off all of GMs outstanding debts with freshly printed money, but that would not make GM a going concern, it STILL makes no money.

The level of worlwide debt created through market derivatives that have little to no relationship to the actual value of the products and services created by any of the companies insured through this market guarantees that if you try to pay off all that debt with new money, all that happens is it disappears into a black hole, matter and anti-matter anhilliating each other. You have not made anything more profitable here at all. You are still stuck with the fact that the economy based on Oil as virtually unlimitless cannot stand. Automobile companies are STILL insolvent, they cost more to run then you can take profit out of them. Its a negative EROEI. Similarly, running a large military machine to steal the Oil necessary from Iraq to keep the machine running ALSO is negative EROEI. It costs more to run the military than you can get in return from the Oil left there.

The collapse you see here is the Death Throes of the Oil based economy. The perpetual motion machine was propelled by free flowing oil easy to get for around 80 years or so, but the low hanging fruit is all GONE now, and the LIABILITY it created of serious Overshoot of population means that for real balance to be achieved here it means more than just Money being destroyed, human lives have to be destroyed also. And they will be, it CANNOT be stopped. It can only be slowed down some, with good policy making it might be slowed to a point that general population aging and death could solve most of it over a couple of generations. Unfortunately, the political will is not there as of yet to grasp this and make policy that accounts for the necessary shrinkage, its too difficult for most people to grasp that mney and human life are inextricably intertwined. Money is an abstraction of resource, and you cannot make something from nothing. There is wealth left in the world, but it is not sufficient to support the population currently inhabitng the earth. People must die, and die they will. By what means remains an open question however, and whether there is leadership to negotiate the trip down the mountain in some other way than simply falling off the edge of the cliff is an open question also.

Reverse Engineer

[AlexdeLarge]

$this->bbcode_second_pass_quote('TreeFarmer', 'H')ave you guys watched "money as debt"? I'll put the link below. That video explains in common language why the governemnt has to spend. Paying off debt destroys money, so with everyone paying off debts the money supply is shrinking rapidly. They government has to spend like a drunken sailor to keep from having deflation.

Enjoy http://video.google.com/videoplay?docid ... 2583451279



TF

[TWilliam]

$this->bbcode_second_pass_quote('jasonraymondson', 'I') should rip the audio and create a new one that is of higher quality and will capture peoples attention more.

[CrudeAwakening]

$this->bbcode_second_pass_quote('TreeFarmer', 'E')nergy, why is it thatgovernment can borrow money and pay interest, yet it can't print money and not pay interest?

[MrBean]

If I was a dictator:

1. Cancel all debt. All. Including "money as debt".
2. Socialize all land and rent it to sustainable farming co-ops ("ecovillages"), rent payed in food surpluss to feed the non-farming population, as long as there are those around.
3. To keep the non-farming population busy and out of mischief, make them build something remotely usefull, like wind-mills etc, in return for the farming co-ops that feed them.

That's about it, plus few minor details to be honed out...

[wisconsin_cur]

$this->bbcode_second_pass_quote('MrBean', 'I')f I was a dictator:

...

plus few minor details to be honed out...

[MrBean]

$this->bbcode_second_pass_quote('wisconsin_cur', '')$this->bbcode_second_pass_quote('MrBean', 'I')f I was a dictator:

...

plus few minor details to be honed out...

[Zardoz]

Another prediction of the conspiracy theorists evaporates. Supposedly, this is where the New World Order was going to be established at last.

Next time for sure, right, CT buffs?

*yawn*

G20 summit shows lack of resolve

$this->bbcode_second_pass_quote('', 'T')he G20 summit must be considered a disappointing failure, even by the relatively low expectations set for the event. Leaders produced a long agenda of further studies, reports and work, but failed to provide a clear direction or tackle even the most fundamental decisions.

On the key issues, leaders displayed a worrying irresolution. Without unambiguous instructions from the top, discussions between finance ministers and officials will prove protracted and risk getting bogged down in detail. Negotiations between officials can fill in the details; they cannot make the kind of fundamental choices about strategic direction that leaders avoided at the weekend.

[Nickel]

$this->bbcode_second_pass_quote('Quinny', 'B')ut it's free trade within the EU. CAP can hardly be considered free trade.

[galacticsurfer]

French are French. British are more loyal to Yanks than to EU if there has to be a choice, either/or. However a trade war is conceivable between EU/US, thereby slowly deteriorating the relationship bit by bit. If a PO collapse occurs then regional cooperation would be helpful but who can really expect assistance from abroad when you don't have enough food/fuel for your own country?

[EnergyUnlimited]

$this->bbcode_second_pass_quote('MrBean', 'I')f I was a dictator:

1. Cancel all debt. All. Including "money as debt".
2. Socialize all land and rent it to sustainable farming co-ops ("ecovillages"), rent payed in food surpluss to feed the non-farming population, as long as there are those around.
3. To keep the non-farming population busy and out of mischief, make them build something remotely usefull, like wind-mills etc, in return for the farming co-ops that feed them.

That's about it, plus few minor details to be honed out...

[MrBean]

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('MrBean', 'I')f I was a dictator:

1. Cancel all debt. All. Including "money as debt".
2. Socialize all land and rent it to sustainable farming co-ops ("ecovillages"), rent payed in food surpluss to feed the non-farming population, as long as there are those around.
3. To keep the non-farming population busy and out of mischief, make them build something remotely usefull, like wind-mills etc, in return for the farming co-ops that feed them.

That's about it, plus few minor details to be honed out...

[eXpat]

You may keep the change.
Bush Said to Tell Aides He Won't Seek Bailout Funds
$this->bbcode_second_pass_quote('', ' ')Nov. 17 (Bloomberg) -- The Bush administration told congressional aides it won't ask lawmakers to release $350 billion remaining as part of the $700 billion U.S. financial- rescue package, people familiar with the matter said.

The administration of President George W. Bush ends in less than 10 weeks, and a delay in submitting a request to lawmakers would leave it to President-elect Barack Obama to tap remaining funds in the bailout fund.

[gmin]

fortress Europe's survival depends on continued cheap and reliable supply of natural resources from Russia, north Africa, and Middle East.
not something within EU's reach.

[Armageddon]

Patience young grasshopper

[lowem]

It was never certain that this was going to be a "wake up next morning and everything changes" kind of thing.

[Nickel]

$this->bbcode_second_pass_quote('gmin', 'f')ortress Europe's survival depends on continued cheap and reliable supply of natural resources from Russia, north Africa, and Middle East.
not something within EU's reach.

[evgeny]

$this->bbcode_second_pass_quote('gmin', 'f')ortress Europe's survival depends on continued cheap and reliable supply of natural resources from Russia, north Africa, and Middle East.
not something within EU's reach.

[Quinny]

Evgeny - thanks for that - I wouldn't mind reading more - what's your source.

Forgot to say, but - A bit like Reverse Engineers relative used to say - neither a lender or a borrower be.......

[evgeny]

$this->bbcode_second_pass_quote('Quinny', 'E')vgeny - thanks for that - I wouldn't mind reading more - what's your source.

Forgot to say, but - A bit like Reverse Engineers relative used to say - neither a lender or a borrower be.......