It Will Take 6.25 BILLION “Man Years” To Pay Off Federal Government Liabilities

[old steel]

“A Mathematical Impossibility” (http://www.activistpost.com/2014/11/it-will-take-625-billion-man-years-to.html)
You tell me what's going to happen.

http://www.activistpost.com/2014/11/it-will-take-625-billion-man-years-to.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ActivistPost+%28Activist+Post %29

[crimethink]

Hyperinflation or debt repudiation are the only options.

[gunDriller]

6.25 Billion Years x 365 Days ==> 2281 Billion Days

Not sure how they calculate the days (the year is 365 x 24 hours, the work year is 250 x 8 hours)

I've heard people say that an ounce of Silver historically has represented a worker's wage for one day.

2.2 Trillion Ounces of Silver to pay off the liabilities ... x $17 per ounce (delivered) = 34 + 3.4 Trillion = $37.4 Trillion.


What was the $ amount for Gov. Liabilities in the first place ?

That's a loaded question. There's the official debt, and there's the unfunded promises.

[Serpo]

They could print that off in an afternoon.............they are just not trying hard enough.

[Hatha Sunahara]

6.25 Billion Years x 365 Days ==> 2281 Billion Days

Not sure how they calculate the days (the year is 365 x 24 hours, the work year is 250 x 8 hours)

I've heard people say that an ounce of Silver historically has represented a worker's wage for one day.

2.2 Trillion Ounces of Silver to pay off the liabilities ... x $17 per ounce (delivered) = 34 + 3.4 Trillion = $37.4 Trillion.


What was the $ amount for Gov. Liabilities in the first place ?

That's a loaded question. There's the official debt, and there's the unfunded promises.

The statement about how many 'man-years' it would take to pay off the federal debt is meaningless. A more meaningful question is How long would it take to pay off the current debt if all earnings were devoted to this goal. That is, a 100% tax rate on all wages of working people. A 'man year' is a well defined unit--it is the amount of work one man can do in one year. But it's value is difficult to define. If you assume it is the 'average income' of a worker in the US, you could assign a value to it realistically at about $28,000 per year. So, assume a man-year is worth $28,000. Also, assume that there are about 100 million working people in the US. So, at 100% tax rate the revenues from 100 million working people earning $28,000 per year would be $2.8 trillion. So, if the total federal debt is $17 Trillion, it would take roughly 6.1 years to pay it off.That's a more meaningful number. However, the assumptions I made in arriving at it are completely absurd.

Most absurd is a 100% tax rate on all working people. That is as absurd as assuming that the federal debt would stop growing, as well as the current level of debt would stop accumulating interest costs. You could caclulate this like a car loan--with the loan being 17 trillion, accumulating interest a 4% a year, and the annual payment being $2.8 trillion--solving for the number of years to pay back the loan. It is also absurd to think that the lenders are going to be repaid more than a few cents on the dollar. To the extent that the Federal debt is owed to the Federal Reserve, that money was conjured out of thin air, and there is no institutional claim to it because it didn't come from anyone's savings.

I actually think that the time it took me to think through this was a complete waste. There are so many variables, so many assumptions that could be made, so many risks to be evaluated, so many political agendas in this calculation, that it is in everyone's best interest to not pay any attention to it at all. The time and effort would be better spent resisting any attempt to make anyone but the lenders eat the cost of a default. All the foreigners who hold dollars or US Treasury bonds should be expecting to lose value, and should be looking for ways to salvage what they can before the day or reckoning. We would all be well advised to spend our time and effort looking for ways to protect ourselves from having to repay any of this debt. We've had no say in how the money is spent so for all practical purposes, it is odious debt. We shouldn't do anything more than the the politicians are doing to absolve themselves for responsibility for this debt. The debt is owed by the people who benefited most from it. Those are the war profiteers, bankers and big corporations. The people are just the slaves. If the plantation goes bankrupt, are the creditors going to hold the slaves responsible? (My guess is that our corrupt judges will say yes to that question).


Hatha

[Twisted Titan]

The only viable solution as it has been shown to be mathmatically impossible to payoff of.

Is REPUDIATION backed up by THE FORCE OF ARMS.

[gunDriller]

Most absurd is a 100% tax rate on all working people. That is as absurd as assuming that the federal debt would stop growing, as well as the current level of debt would stop accumulating interest costs. You could caclulate this like a car loan--with the loan being 17 trillion, accumulating interest a 4% a year, and the annual payment being $2.8 trillion--solving for the number of years to pay back the loan. It is also absurd to think that the lenders are going to be repaid more than a few cents on the dollar. To the extent that the Federal debt is owed to the Federal Reserve, that money was conjured out of thin air, and there is no institutional claim to it because it didn't come from anyone's savings.

I actually think that the time it took me to think through this was a complete waste


It's true, there are a lot of variables.

In the Silver industry, Silver may have an all in cost of $9 to $22 an ounce.

But in the business world, decisions are often made "at the margin". How much is the marginal cost of producing that last 1000 ounces, vs. how much they get paid for that last 1000 ounces.

"It takes time to shut down and start up mines" - another reason cited for continuing to make Silver even when you are paid less than it costs to make it.

Analyzing all this for all the mines ... Jesus. I imagine you really have to be a trusted industry insider, like Jeff Christian, to be given access to the data in the first place.

Might be easier to consult a Psychic. Of course we have (or had) our own Silver Psychic, Silver Art.


As far as effective use of time ... let us refer to the Twitching Frog Leg theme :)

https://www.youtube.com/watch?v=2YZJt_Bw3eo

[crimethink]

The only viable solution as it has been shown to be mathmatically impossible to payoff of.

Is REPUDIATION backed up by THE FORCE OF ARMS.

A patriotic government could, yes:

https://en.wikipedia.org/wiki/LGM-30_Minuteman

https://en.wikipedia.org/wiki/UGM-133_Trident_II

[Sparky]

There's a huge math mistake by the author. He's essentially doing the same math as Hatha, and comes up with a figure of 450 million man years. But unlike Hatha's calculation, he has ignored that there are 100 million workers to do the work, so the feat can be accomplished in 4.5 years. (Hatha gets a higher number [6.1 years] because he uses a lower annual earning potential of the average worker.)

[Serpo]

America has gone kamikaze and borrowed to the max so they get everything , own everything and when the dollar collapses they still get to keep everything, the globalists that is, simple plan ,if you are going to collapse the dollar why not do it in style .

[Serpo]

Most People Cannot Even Imagine That An Economic Collapse Is Coming
November 2nd, 2014
Share7 Tweet9 1 Share6

By Michael Snyder (http://theeconomiccollapseblog.com/archives/most-people-cannot-even-imagine-that-an-economic-collapse-is-coming)
http://theeconomiccollapseblog.com/wp-content/uploads/2014/11/Thinking-Public-Domain-300x300.jpg
The idea that the United States is on the brink of a horrifying economic crash is absolutely inconceivable to most Americans. After all, the economy has been relatively stable for quite a few years and the stock market continues to surge to new heights. On Friday, the Dow and the S&P 500 both closed at brand new all-time record highs. For the year, the S&P 500 is now up 9 percent and the Nasdaq is now up close to 11 percent. And American consumers are getting ready to spendmore than 600 billion dollars (http://theeconomiccollapseblog.com/archives/guess-how-much-americans-plan-to-spend-on-christmas-and-halloween-this-year) this Christmas season. That is an amount of money that is larger than the entire economy of Sweden. So how in the world can anyone be talking about economic collapse? Yes, many will concede, we had a few bumps in the road back in 2008 but things have pretty much gotten back to normal since then. Why be concerned about economic collapse when there is so much stability all around us?
Unfortunately, this brief period of stability that we have been enjoying is just an illusion.
The fundamental problems that caused the financial crisis of 2008 have not been fixed. In fact, most of our long-term economic problems have gotten even worse.
But most Americans have such short attention spans these days. In a world where we are accustomed to getting everything instantly, news cycles only last for 48 hours and 2008 might as well be an eternity ago.
In the United States today, our entire economic system is based on debt.
Without debt, very little economic activity happens. We need mortgages to buy our homes, we need auto loans to buy our vehicles and we need our credit cards to do our shopping during the holiday season.
So where does all of that debt come from?
It comes from the banks.
In particular, the “too big to fail banks” are the heart of this debt-based system.
Do you have a mortgage, an auto loan or a credit card from one of these “too big to fail” institutions? A very large percentage of the people that will read this article do.
And a lot of people might not like to hear this, but without those banks we essentially do not have an economy.
When Lehman Brothers collapsed in 2008, it almost resulted in the meltdown of our entire system. The stock market collapsed and we experienced an absolutely wicked credit crunch.
Unfortunately, that was just a small preview of what is coming.
Even though a few prominent “experts” such as New York Times columnist Paul Krugman (http://krugman.blogs.nytimes.com/2014/08/01/good-news-on-financial-reform/?_r=0) have declared that the “too big to fail” problem is “over”, the truth is that it is now a bigger crisis than ever before.
Compared to five years ago, the four largest banks in the country are now almost 40 percent larger (http://www.thefiscaltimes.com/Articles/2014/01/09/It-Time-Break-Big-Banks). The following numbers come from a recent article in the Los Angeles Times (http://articles.latimes.com/2013/sep/17/business/la-fi-too-big-to-fail-20130917)…

Just before the financial crisis hit, Wells Fargo & Co. had $609 billion in assets. Now it has $1.4 trillion. Bank of America Corp. had $1.7 trillion in assets. That’s up to $2.1 trillion.
And the assets of JPMorgan Chase & Co., the nation’s biggest bank, have ballooned to $2.4 trillion from $1.8 trillion.
At the same time that those banks have been getting bigger, 1,400 smaller banks have completely disappeared from the banking industry.
That means that we are now more dependent on these gigantic banks than ever.
At this point, the five largest banks account for 42 percent (http://fortune.com/2013/09/13/by-every-measure-the-big-banks-are-bigger/) of all loans in the United States, and the six largest banks account for 67 percent (http://fortune.com/2013/09/13/by-every-measure-the-big-banks-are-bigger/) of all assets in our financial system.
If someone came along and zapped those banks out of existence, our economy would totally collapse overnight.
So the health of this handful of immensely powerful banking institutions is absolutely critical to our economy.
Unfortunately, these banks have become deeply addicted to gambling.
Have you ever known people that allowed their lives to be destroyed by addictions that they could never shake?
Well, that is what is happening to these banks. They have transformed Wall Street into the largest casino in the history of the world. Most of the time, their bets pay off and they make lots of money.
But as we saw back in 2008, when they miscalculate things can fall apart very rapidly.
The bets that I am most concerned about are known as “derivatives (http://theeconomiccollapseblog.com/archives/5-u-s-banks-each-have-more-than-40-trillion-dollars-in-exposure-to-derivatives)“. In essence, they are bets about what will or will not happen in the future. The big banks use very sophisticated algorithms that are supposed to help them be on the winning side of these bets the vast majority of the time, but these algorithms are not perfect. The reason these algorithms are not perfect is because they are based on assumptions, and those assumptions come from people. They might be really smart people, but they are still just people.
If things stay fairly stable like they have the past few years, the algorithms tend to work very well.
But if there is a “black swan event” such as a major stock market crash, a collapse of European or Asian banks, a historic shift in interest rates, an Ebola pandemic, a horrific natural disaster or a massive EMP blast is unleashed by the sun, everything can be suddenly thrown out of balance.
Acrobat Nik Wallenda has been making headlines all over the world for crossing vast distances on a high-wire without a safety net. Well, that is essentially what our “too big to fail” banks are doing every single day. With each passing year, these banks have become even more reckless, and so far there have not been any serious consequences.
But without a doubt, someday there will be.
What would you say about a bookie that took $200,000 in bets but that only had $10,000 to cover those bets?
You would certainly call that bookie a fool.
But that is what our big banks are doing (http://theeconomiccollapseblog.com/archives/5-u-s-banks-each-have-more-than-40-trillion-dollars-in-exposure-to-derivatives).
Right now, JPMorgan Chase has more than 67 trillion dollars in exposure to derivatives but it only has 2.5 trillion dollars in assets.
Right now, Citibank has nearly 60 trillion dollars in exposure to derivatives but it only has 1.9 trillion dollars in assets.
Right now, Goldman Sachs has more than 54 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.
Right now, Bank of America has more than 54 trillion dollars in exposure to derivatives but it only has 2.2 trillion dollars in assets.
Right now, Morgan Stanley has more than 44 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.
Most people have absolutely no idea how incredibly vulnerable our financial system really is.
The truth is that these “too big to fail” banks could collapse at any time.
And when they fail, our economy will fail too.
So let us hope and pray that this brief period of false stability lasts for as long as possible.
Because when it ends, all hell is going to break loose.


Read more at http://investmentwatchblog.com/most-people-cannot-even-imagine-that-an-economic-collapse-is-coming/#VhGrvEY1Q8IR8ULE.99

[EE_]

Most People Cannot Even Imagine That An Economic Collapse Is Coming
November 2nd, 2014
Share7 Tweet9 1 Share6

By Michael Snyder (http://theeconomiccollapseblog.com/archives/most-people-cannot-even-imagine-that-an-economic-collapse-is-coming)
http://theeconomiccollapseblog.com/wp-content/uploads/2014/11/Thinking-Public-Domain-300x300.jpg
The idea that the United States is on the brink of a horrifying economic crash is absolutely inconceivable to most Americans. After all, the economy has been relatively stable for quite a few years and the stock market continues to surge to new heights. On Friday, the Dow and the S&P 500 both closed at brand new all-time record highs. For the year, the S&P 500 is now up 9 percent and the Nasdaq is now up close to 11 percent. And American consumers are getting ready to spendmore than 600 billion dollars (http://theeconomiccollapseblog.com/archives/guess-how-much-americans-plan-to-spend-on-christmas-and-halloween-this-year) this Christmas season. That is an amount of money that is larger than the entire economy of Sweden. So how in the world can anyone be talking about economic collapse? Yes, many will concede, we had a few bumps in the road back in 2008 but things have pretty much gotten back to normal since then. Why be concerned about economic collapse when there is so much stability all around us?
Unfortunately, this brief period of stability that we have been enjoying is just an illusion.
The fundamental problems that caused the financial crisis of 2008 have not been fixed. In fact, most of our long-term economic problems have gotten even worse.
But most Americans have such short attention spans these days. In a world where we are accustomed to getting everything instantly, news cycles only last for 48 hours and 2008 might as well be an eternity ago.
In the United States today, our entire economic system is based on debt.
Without debt, very little economic activity happens. We need mortgages to buy our homes, we need auto loans to buy our vehicles and we need our credit cards to do our shopping during the holiday season.
So where does all of that debt come from?
It comes from the banks.
In particular, the “too big to fail banks” are the heart of this debt-based system.
Do you have a mortgage, an auto loan or a credit card from one of these “too big to fail” institutions? A very large percentage of the people that will read this article do.
And a lot of people might not like to hear this, but without those banks we essentially do not have an economy.
When Lehman Brothers collapsed in 2008, it almost resulted in the meltdown of our entire system. The stock market collapsed and we experienced an absolutely wicked credit crunch.
Unfortunately, that was just a small preview of what is coming.
Even though a few prominent “experts” such as New York Times columnist Paul Krugman (http://krugman.blogs.nytimes.com/2014/08/01/good-news-on-financial-reform/?_r=0) have declared that the “too big to fail” problem is “over”, the truth is that it is now a bigger crisis than ever before.
Compared to five years ago, the four largest banks in the country are now almost 40 percent larger (http://www.thefiscaltimes.com/Articles/2014/01/09/It-Time-Break-Big-Banks). The following numbers come from a recent article in the Los Angeles Times (http://articles.latimes.com/2013/sep/17/business/la-fi-too-big-to-fail-20130917)…

Just before the financial crisis hit, Wells Fargo & Co. had $609 billion in assets. Now it has $1.4 trillion. Bank of America Corp. had $1.7 trillion in assets. That’s up to $2.1 trillion.
And the assets of JPMorgan Chase & Co., the nation’s biggest bank, have ballooned to $2.4 trillion from $1.8 trillion.
At the same time that those banks have been getting bigger, 1,400 smaller banks have completely disappeared from the banking industry.
That means that we are now more dependent on these gigantic banks than ever.
At this point, the five largest banks account for 42 percent (http://fortune.com/2013/09/13/by-every-measure-the-big-banks-are-bigger/) of all loans in the United States, and the six largest banks account for 67 percent (http://fortune.com/2013/09/13/by-every-measure-the-big-banks-are-bigger/) of all assets in our financial system.
If someone came along and zapped those banks out of existence, our economy would totally collapse overnight.
So the health of this handful of immensely powerful banking institutions is absolutely critical to our economy.
Unfortunately, these banks have become deeply addicted to gambling.
Have you ever known people that allowed their lives to be destroyed by addictions that they could never shake?
Well, that is what is happening to these banks. They have transformed Wall Street into the largest casino in the history of the world. Most of the time, their bets pay off and they make lots of money.
But as we saw back in 2008, when they miscalculate things can fall apart very rapidly.
The bets that I am most concerned about are known as “derivatives (http://theeconomiccollapseblog.com/archives/5-u-s-banks-each-have-more-than-40-trillion-dollars-in-exposure-to-derivatives)“. In essence, they are bets about what will or will not happen in the future. The big banks use very sophisticated algorithms that are supposed to help them be on the winning side of these bets the vast majority of the time, but these algorithms are not perfect. The reason these algorithms are not perfect is because they are based on assumptions, and those assumptions come from people. They might be really smart people, but they are still just people.
If things stay fairly stable like they have the past few years, the algorithms tend to work very well.
But if there is a “black swan event” such as a major stock market crash, a collapse of European or Asian banks, a historic shift in interest rates, an Ebola pandemic, a horrific natural disaster or a massive EMP blast is unleashed by the sun, everything can be suddenly thrown out of balance.
Acrobat Nik Wallenda has been making headlines all over the world for crossing vast distances on a high-wire without a safety net. Well, that is essentially what our “too big to fail” banks are doing every single day. With each passing year, these banks have become even more reckless, and so far there have not been any serious consequences.
But without a doubt, someday there will be.
What would you say about a bookie that took $200,000 in bets but that only had $10,000 to cover those bets?
You would certainly call that bookie a fool.
But that is what our big banks are doing (http://theeconomiccollapseblog.com/archives/5-u-s-banks-each-have-more-than-40-trillion-dollars-in-exposure-to-derivatives).
Right now, JPMorgan Chase has more than 67 trillion dollars in exposure to derivatives but it only has 2.5 trillion dollars in assets.
Right now, Citibank has nearly 60 trillion dollars in exposure to derivatives but it only has 1.9 trillion dollars in assets.
Right now, Goldman Sachs has more than 54 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.
Right now, Bank of America has more than 54 trillion dollars in exposure to derivatives but it only has 2.2 trillion dollars in assets.
Right now, Morgan Stanley has more than 44 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.
Most people have absolutely no idea how incredibly vulnerable our financial system really is.
The truth is that these “too big to fail” banks could collapse at any time.
And when they fail, our economy will fail too.
So let us hope and pray that this brief period of false stability lasts for as long as possible.
Because when it ends, all hell is going to break loose.


Read more at http://investmentwatchblog.com/most-people-cannot-even-imagine-that-an-economic-collapse-is-coming/#VhGrvEY1Q8IR8ULE.99

It will be interesting to see how this plays out in 20 years or, so.

Right now the economy is booming. I know of no one struggling...except for the people that Fox news says are.
Fox news will say anything to knock the Dems out of the box. All I see, are Republicans straightening their ties for their turn to get to live the good life again...on our dime.

What more do people want?

Record high stock market
Wall Street bonuses will record highs this year
More millionaires and billionaires created then ever before
Rich buying up everything and splurging on luxuries
Asset and collectible prices sky high
Record low mortgage rates
Home prices at record highs in desirable markets
Oil and gas prices at 5 year lows
Anyone with any skills are working
People have healthcare that didn't before
Strong dollar
PM prices easily managed
QE ended
All the major corporations are profitable
Global wars are being easily managed
Israel's enemy countries reduced to rubble
No disasters at this time
No disasters on the horizon
Ebola contained
Gay marriage is now normal
Gay everything is cool
Illegal's getting amnesty
No terrorist attacks since Bush

[Sparky]

It will be interesting to see how this plays out in 20 years or, so.
...

Yes, this is about right. The real stress to the system emerges in 2020 when the heart of the baby boom generation turns 65. I suspect we will see some cracks occur before that. Then, the mathematics of "future obligations" become increasingly problematic throughout the 2020s decade. This is completely aligned with the predicted crisis timing of The Fourth Turning.

[old steel]

https://www.youtube.com/watch?v=cSChyC74P1Q

[Libertytree]

There's a flaw in the OP's assertion.......There is NO intent in paying down any debt, just growing it, let alone paying it off.

They can implode this house of cards any time they want, or, keep this option until it suits them.

[old steel]

Yes, this is about right. The real stress to the system emerges in 2020 when the heart of the baby boom generation turns 65. I suspect we will see some cracks occur before that. Then, the mathematics of "future obligations" become increasingly problematic throughout the 2020s decade. This is completely aligned with the predicted crisis timing of The Fourth Turning.

Credit crunch. We are in it.

It's going to be a very cold winter.

My grandpa told me back in the thirties it was so bad people couldn't even pay their telephone bills so want to guess what happened?

Telephone company came in and pulled out all the lines.

Poof, gone.

[Sparky]

Credit crunch. We are in it.

It's going to be a very cold winter.

My grandpa told me back in the thirties it was so bad people couldn't even pay their telephone bills so want to guess what happened?

Telephone company came in and pulled out all the lines.

Poof, gone.

But that's not how things work now. Today, the government would order the phone companies to keep service available. The people would view this as the government being heroes. In return, there would be some sweetheart deal for the phone company.

You see, the trick is to not have the general population perceive any loss in their basic expectations: phone, electricity, food, heat, water, gasoline, entertainment, medicare. The government has gone $18T in debt in order to ensure these items are protected. That's why people don't care about the debt: no visible impact in the things they care about.

This has gone on for a long time, and can continue for a long time. The big test is whether they can keep this up while continuing to provide these things (particularly social security checks and medicare payments) to the massive wave of Baby Boomers that become "takers" during the 2020s.

Japan is going through this now, as they are a decade ahead of us demographically. They're actually much worse off, because they rely on imports since they have so few native resources. They are the canary in the coal mine. Europe is the other domino which must fall first.

[old steel]

Nothing works now the way it did.

Don't know one producer out there now that doesn't have a line of credit at the bank.

My dad and grandpa never had one, they provided their own.

Like i said sparky, credit crunch.


Crop prices are down across the board here, so drastically in fact that there is not a price available in the futures market we can lock into that provides us a profit.

How long can we continue to do business this way?

It's here, now.

[Sparky]

Nothing works now the way it did.

Don't know one producer out there now that doesn't have a line of credit at the bank.

My dad and grandpa never had one, they provided their own.

Like i said sparky, credit crunch.


Crop prices are down across the board here, so drastically in fact that there is not a price available in the futures market we can lock into that provides us a profit.

How long can we continue to do business this way?

It's here, now.

If necessary, the government will come in and pay whatever price is required. There has to be a little suffering first, so that their actions are not questioned.

[old steel]

Hell with the government, they are nothing but a bunch of overpaid useless bureaucrats who do nothing but serve elite corporate interests.

Like i already stated, it's already underway, just not too many are quite aware of the fact. Disaster looms nearby.

30 days to six months and the dollar will be in crisis because of the collapse in oil prices and because Ebola or some new nasty super flue bug is now getting out of hand, and because the expanding earth is beginning to make itself known with sinkholes in nasty places, and because there are only enough jobs for half of all Americans, and because we have corporations dictating by proxy to our supposedly elected officials, and so the predictable outcome is of course complete anarchy, as opposed to the corporate anarchy which has been ruling these United States for profit and rape for the last 125 years.

Rather obviously it's underway and before too long the money will itself become very valuable as debts overwhelm everyone, and then the money will become worthless, and about this time the SHTF in new and exciting ways with mass beating and hanging of any suspected traitors, bankers, dog catchers, etc.

Yes...reset but in a new and exciting way, as afterwards the survivors will return to living like natives and civilization is at its ultimate end. Which is of course where it should have been all along.

[Hatha Sunahara]

There is one hugely ironic twist that the realists (cynics, pessimists, etc) allow to slip their consciousness: That is, all the money in existence is borrowed into existence. So, the monry supply is equal to all the debt incurred by everybody who borrowed the money into existence. As long as there is enough money circulating it will keep the economy going. The real danger is when there is too much money in circulation--that is, too much money has been borrowed into existence, and it's value gets diluted until it is worthless--a condition called inflation. But inflation has its own remedy--all the excess money exists and can be used to repay the debt. The problems only become critical when the people who borrowed the money into existence don't have it to repay their loans. That isn't such a large problem for governments because they can always borrow more into existence from the central banks they created, so they don't really have to tax people all that heavily to maintain a workable economy. Twisted Titan is correct--that if the people who owe the money don't have it, they can repudiate the debt, and the lenders can eat the loss. Since the banks are the foremost lenders, and the money they loaned out was created from thin air (not from anybody's savings) there is no real harm to the banks if the borrowers repudiate their debt. It will only slow down the ill gotten gains of the bankers from the systemic usury they practice. Bankruptcy of the banks is actually good medicine for the world at large because it wipes out the usurers who never work a day in their lives, but are given the privilege to acumulate wealth by conjuring up money (credit realy)) out of nothing and lending it to working people and charging them interest for it. What harm comes to the world if the usurers are deprived of ill-gotten gains? None whatsoever. The real problem is that the usurers will stop conjuring up money for a while, and most people don't have sufficient savings to carry theem through that while when the money spigots are turned off. Hwever, the usurers own just about everything , and they should be held legally liable to assure the people who have deposits in savings accounts in their failed banks the full value of those savings. . Our stupid laws however favor the usurers and won't hold them liable for lost savings. It is my considered opinion therefore that the real problems caused by a crash in the markets or our monry system are caused by a stupid legal system that allows a privileged class to steal from everyone with legalized usury, and does not require that priviliged class to bear anty responsibility for the sufferings of the people who created the wealth that fell into their ownership by usury. Let the people who are able to accumulate wealth because stupid laws grant them extraordinary ptivilege assume some of the burdens of suffering from adverse outcomes of risk. In an economic collapse it is possible to watch vast preventable injustices playing out, with the victims stoically attributing their misfortune to blind luck. And the beneficiaries grateful in silence for the ignorance of the victims. Americans were close to an awakening in the 1930s that would have embraced a massive redistribution of wealth through communism, had not the usurers made some meager concessions to avoid succh a politcal outcome. Political upheavals are usually the result of governments insisting on enforcing stupid laws that favor a privileged class over the masses. The masses usually view the government as their protector, and when governments clearly do not live up to that expectation, they wind up in the dust bin of history.Such political upheavals occur at what could be called the 'threshhold of suffering of the massrs. All governments know this, so they anesthetize the masees however they can--with panem et circensis , or with welfare, or with media propaganda, or with a fear inducing police state. The privileged are safe only when the masses are sleeping.



Hatha