A funny look at Euro Area debt and who will pay

Discussion in 'Economics' started by Tsing Tao, Jan 30, 2012.

  1. morganist

    morganist Guest

    What you mean they are not very intelligent to put such a bad idea forward?
     
    #21     Jan 30, 2012
  2. achilles28

    achilles28

    Well, if that were the case, it shows they don't grasp even the most elementary distinctions inherent in the problem - that Countries owe banks. Not countries owe countries. If they can't "get" that, then what hope do we have they'll be able to grasp (let alone, solve) more complex problems? Like the growing productivity/entitlement gap, GDP-to-debt metrics, the exacerbation from CDS, wealth creative/destructive policies. These are grade 12 problems and politicians appear to be working at a grade 2 level.
     
    #22     Jan 30, 2012
  3. morganist

    morganist Guest

    Did you read the article. When I first saw it I thought there must be more to it and that I didn't get it. Then I read it again, no I got it the first time, they just don't know how it is set up. Anyway it won't matter soon.
     
    #23     Jan 30, 2012
  4. achilles28

    achilles28

    True. But what other *realistic* outcomes exist, besides print or crash?

    The only one I can think of is a defacto bank nationalization. Forgive all debts (since that money was effectively 'lent' by the borrowers themselves, via debasement via fractional reserve lending), return credit making power to a government run-banking entity, and continue on. That doesn't solve the structural problems, but it does sidestep a bad outcome. This is entirely unlikely to happen, as we both know, private commercial banks run the world. They will not allow any Government to unseat their credit making power. So again, the question is, what *realistic* alternatives exist beside print or crash?
     
    #24     Jan 30, 2012
  5. achilles28

    achilles28

    No, I didn't. But I trust your word on it. Most politicians are economically illiterate and follow the dictates of GoldmanSachs "gurus" who preside over the Treasury departments and Central Banks of the world.
     
    #25     Jan 30, 2012
  6. morganist

    morganist Guest

    I've been working on an alternative banking system that has different fundamental dynamics to the current system it could be used to restructure the debt.
     
    #26     Jan 30, 2012
  7. achilles28

    achilles28

    That's great. And I don't mean to sound like a condescending bitch.... but the problem here is political. Not economic. Economically, many alternative banking models exist. Politically, they won't see the light of day because the owners of our system control the right to issue credit, which they use to buy off law-makers who hold the power to reform the system. The only peaceful revolution we can hope for is a grassroots effort - a widespread, popular revolt (peaceful) against incumbents who support the system. This is why Ron Pauls candidacy is so important, because he supports just those banking reforms.

    There's a State Bank (Delaware?) that uses ethical banking. It's fractional reserve, but the profits are used towards infrastructure projects, instead of enriching the fucking parasites. That's a start. The principle being citizens benefit directly from having their money loaned out, indirectly. As opposed to loaning out citizens money for private profit. Which is the ultimate scam. Imagine, private commercial banks lend us our own money, at interest. That's how corrupt our system is. It's a complete fucking joke.
     
    #27     Jan 30, 2012
  8. morganist

    morganist Guest

    No you are wrong. The banking systems that exist are not really banking systems. I mean the actual calculations and the way return is calculated. Honestly there is nothing like what I have done.

    It would solve it. You are right though it would be practically impossible to persuade politicians.
     
    #28     Jan 30, 2012
  9. achilles28

    achilles28

    How am I wrong?

    What's old is new again... There's not much that is truly "new" these days..
     
    #29     Jan 30, 2012
  10. morganist

    morganist Guest

    This is trust me.
     
    #30     Jan 30, 2012