If you love your kids, stop the bond bonanza
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Carl Mydans Boys playing May 1936 "Decatur Homesteads, Indiana" A month and a half ago, I posed the following question in Spain, Land of Mag
[See the full post at: If you love your kids, stop the bond bonanza]If only because the danger to your kids doesn’t stop with your governments stuffing you – and them – with your banks’ debt when you weren’t looking. It’s way worse than that.
Its so much fun when you are dealing with other people money and pretend money.
😉Geee! I would have thought that the gov was stuffing me with all those bank debts having liens on some real assets which I would get in the event of a bank default.
You are saying that I wont even be able to get to use a “time share” on those assets which are in Greece or Spain?
Can I sell you my “future time shares”?I find it somewhat ironic that the gold holdings of countries, even Greece, are somehow seen as sacrosanct. Their debt is papered over with still more debt in the circular ponzi maze that Raul describes. And yet the sovereigns hang on to that last vestige of financial civility. So far… I expect very soon all of those countries will be forced to sell off their gold. How can they not? Just as they’ll be forced to sell off their shipping ports and hydro-electric facilities. Unless they reject the whole charade and abandon the debt game–default and run for the hills. And then we really do have a European implosion…which will probably necessitate a sale of their gold anyhow, just to feed their populace. Things have tenaciously maintained the appearance of “stability” and “sameness”…but I fully expect things are going to start looking really different really quite soon. How can they not? It simply can’t go on forever. Expect massive sovereign gold sales rather than bonds, that’s my bet.
Growth is not something you “decide”, it’s something you work for. And even that will only work AFTER you pay off your debt, once that debt has crossed a critical mass limit. We’re way past that limit.
Actually, for the last 2 centuries, growth resulted from the work done through the combustion of fossil fuels. The debt incurre3d here is NEVER being paid off, and even AFTER mass repudiation and default of Odious Debt, there STILL will be no growth coming donw the pipe here.
So as far as the future of your grandchildren are concerned, the numbers being bandied about here are meaningless now. Their fate is sealed regardless of what is done with the banks. The world is headed for a low per capita energy footprint, and that means what we consider the grinding poverty of the 3rd world everywhere, except probably worse since there will be extensive population die off in the Big Shities.
The Party is OVER, the Keg is EMPTY. No Beer left for your Grandchildren.
RE
I’m not so sure about our kids and grand-kids picking up the bill, financially speaking. Do you really think some semblance of the kind of society/economy we have now will go on long enough to avoid a fairly substantial collapse, where the workings of our societies will be very different?
Whilst is is reprehensible for those who do believe in that near miracle to apparently lumber future generations with overbearing debt, I can’t really see that scenario playing out. Sure we’re almost at the precipice now?
very appropriate, pointing out what life is like in the low energy consumption economies of the Third World…..”the future is here, it is just not evenly distributed.”
“…..but none of them can solve what underlies the foundation of the issue: Debt. Capital D. Which must be serviced. Which must be deflated.”
Seems more likely that it will be inflated away. Especially with the cover of a weakening world economy. In the USA, for example, the fed is already buying most of the new debt. As the deficit of the USA federal govt. expands, so will the balance sheet of the fed.
Regarding RE’s comment on energy, he must be unaware of the magnitude of the recent natural gas discoveries in the USA. We are definitely going to come out of this a lot better off than any where else.
>> as long as we leave the financial industry holding the reins of our societies
Aye, and that’s really the foundation of the problem – isn’t it. Some people said, “If some capitalism is good, then more must be better!”
Capitalism is like fire – they are both tools to be used as needed, they can be beneficial when contained and channeled, but when “set free” they consume everything in their path. Today’s economist’s devotion to unrestrained global free market capitalism is the equivalent of some nut job screeming “Fire Good!” and then setting the crowded theater a-blaze.
Steven in Dallas
pipefit post=3375 wrote:
Regarding RE’s comment on energy, he must be unaware of the magnitude of the recent natural gas discoveries in the USA. We are definitely going to come out of this a lot better off than any where else.No doubt, after we frack the NG out to run Carz refitted to run on it, we will do just fine driving a few hundred miles each day to find potable water.
This of course comes after JPMC issues credit to SOMEBODY to do the Fracking and MORE credit to Fracking everybody else to buy said Fracking Gas so they can continue to drive their Fracking SUVs all over the Fracking Suburbs.
Why is it that I remian Fracking Unconvinced that this Fracking Shit will work? Is it just me?
RE wrote: Why is it that I remian Fracking Unconvinced that this Fracking Shit will work? Is it just me?
I think Stoneleigh splained fracking why in Get ready for the North American gas shock
I thought that I have been reading recently that the return on investment in fracking is not there, due to the low cost of NG. Have I missed something? There is little to be extracted and great expense to extract it even though there’s a littlebit here and a littlebit there after all the hullabaloo about jobs and Drill, Baby Drill. Is,nt it just the equivalent of slicing off all the mountain tops. And it really does poison all the aquafiers. But there also seems to be the problem of getting the credit to back production. What have I missed about this lovely activity?
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