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Without debt, the US would explode!

published: 04/06/14, 19:55
by Christophe
To complement the many issues on debt and money creation and these are the most active 3: ... t6273.html ... t9654.html ... t2177.html

We explained yesterday that the American empire and the credit bubble depend on one another. In short, after the 70 years, there was not enough juice in the US economy to pay both domestic social spending ... and an imperial juggernaut in the world.

The solution ? Credit. The borrowing of the private sector has created some US 33 billion in excess of economic activity (that is to say above the traditional level of debt / GDP ratio). This provided sales ... expenses ... jobs ... profits for companies (heavily concentrated in the financial sector) ... and investment gains. All this gave voters the feeling that they were progressing. They provided plenty of tax revenue to the government.

The debt has increased. We have looked at the numbers so many times that it is unnecessary to repeat them. More importantly, the US economy - and the empire - has become increasingly dependent on debt just to keep going as usual. Debt no longer serves as a "boost"; it is now only needed to stand still. Without it, the market collapses ... and the economy goes into recession, even depression. This is what happened in 2008-2009. The private sector has stopped taking on debt… and all hell has broken out.

▪ Let's set the scene ...
The Bush administration Jr. left his appetite for spending take the bit in his teeth. This was mainly due to the fact that it was the most openly pro-empire in the history of the United States government. It was also - albeit much more quietly - the most pro-welfare state government.

The Bush team has never seen a country where they did not want to interfere ... never saw a trap in which they did not want to enter with their big clogs ... and never saw expenses which they wanted to oppose. veto. Under the guise of "security" spending, it got bogged down in the biggest deficits in history.

After the attacks of September 11, 2001, serious budgetary discussions were obscured by imperial chauvinism. "Security" depended on a robust economy… which depended on continued credit expansion.

Subsequently - and again after the crisis 2008-2009 - credit expansion gave signs of slowing.

The Fed then came to the rescue; its leaders have been praised like a Scipio or a Caesar. Both Alan Greenspan and Ben Bernanke made the cover of TIME, as if they were conquerors and heroes rather than scowling economists with questionable theories. In 1999, Greenspan, Rubin and Larry Summers were called "the committee to save the world". Bernanke was called "a hero" by Atlantic magazine… and TIME made him his Person of the Year in 2009.

Their real contribution? They helped the Americans to borrow more ... and thus helped unproductive sectors to maintain their control over much of the country's resources.

A deficit down - for now
Now the authorities have more and more control over how the money is spent and invested .... Not surprisingly, the return on investment ... fall and growth slows. As to the current production more difficult to keep the pace of debt and expenses. The need for credit increases.

And now we hear that the situation of the US federal budget is improving! Tax revenues are rising. The expenses are down. Alas, it is a phenomenon quite temporary. The Office of Congressional budget estimates that the federal deficit should reach a floor this year and next year - more than 500 billion still - ... before starting to climb again.

These are good news for the empire ... and a credit dependent economy.

The debt can not grow if no one is foolish enough to borrow. The US government will become the borrower of last resort ... and will continue to borrow to finance the empire ... and zombies sectors ...

... Until everything explodes.


published: 04/06/14, 21:59
by Ahmed
A set of relevant observations and conclusions hazardous.

In the homeland of private enterprise and of any market, state interventionism date of 1929 crisis.
To understand (some), we must remember that the scientific organization of work, ie Taylorism, during the preceding period, had enabled the production of goods to be considerably increased, which had mobilized a growing number of Americans to work. 

All this suddenly collapsed in 1929, to the surprise of American citizens; the financial investments to be made to start a business now exceeded the capacity of private entities. The government Roosevelt, Drawing on the analysis of the English economist, JM Keynes becomes intrusive to initiate a catching-up (much like its Soviet rival, which is a shame!).

Playing at the same time on monetary policy, major works and the "fair state", the economy is gradually restarting: thanks to the money injected, new products are launched on the market and this policy seems to seal state interventionism as a stage. essential to the modern economy.
Job growth and investment, if we add to these factors the price drop, we get what was called the consumer society: each element of this trio stimulated others (this is what s' also happened in France after the second World war, even in the years 70).
However, ongoing productivity gains will never completely eradicate unemployment, except during the period of war who will sign the apogee of American power.

After the war, in fact new and powerful competitors appeared: Japan and Western Europe. From 70, financial artifices (floating exchange rate) then the abandonment of the convertibility into gold of the dollar made it possible to loosen the grip and to adapt to the new world economic order.

Now America will refocus on its weapons activities, products and hight tec world banker (the first and last go hand in hand, is not a coincidence), for consumption will depend increasingly Asian countries and especially China.

Á the moment, the debt can not only increase indefinitely, but the debt increases, unless the creditors interest to doubt the creditworthiness of their borrowers ... a de facto solidarity moved up ...

A few bubbles, like that of the internet at the turn of the century and that of real estate that burst in 2008, seemed to offer new opportunities, however, since the computer revolution, productivity has increased so much that the possibility of mobilizing labor -additional living is utopian; at the same time, productive investments have become scarce (there are not enough new products appearing) and the enormous financial mass can no longer be valued; It is therefore not insignificant that Keynesian policies have been supplanted by neoliberal doctrines.
These have had the effect of "recovering" public activities for the benefit of the private sector, without however solving the problem, but rather by aggravating it.

In reality, because of the homogenisation of the economy (globalization), the situation in the United States is not much different from that of the European states, except for, and it is not negligible the fact of hold a currency of reference and the army that goes well with! 8) .

Both the revival by consumption that austerity cures are not able to restart a process that few want to understand it is simply reached the end of its logic.

published: 04/01/15, 10:00
by sen-no-sen
To read, an article of Jean Paul Baquiast , About the last book of Pierre Jovanovic:666 on board a US bill and the reasons for the enslavement of nations:

(...)Why the governments of these countries do not they rebel by refusing for example to buy US Bonds even honor their own debts ?
On this point, Pierre Jovanovic gives the only answer that is needed, answer yet modestly ignored by financial analysts: it is because these governments are forced to do so, under pressure from the military resources of the US Army in for small states, and under that thousands of CIA agents operating in larger states, notably in Europe and particularly in France, to ensure that the leaders of these States walk right.
Contrarire in case the CIA spark political unrest prevail recalcitrant (regime change). Jovanovic did not hesitate to return and the rumor that France, May 68 was organized to cause the departure of De Gaulle, the only major European leader who had the courage to oppose America. Those of us old enough for that, who remember having expressed on the barricades in May, did not imagine the game while they were CIA.

The Beast has enough criminal audacity to provoke a world war that would be the end of his opponents. Clean hers probably in the same movement.
But the wounded beast no doubt prefer to perish too rather than yield an inch of the hold it has given to the body and consciousness ...

published: 04/01/15, 13:14
by Ahmed
It is known (but not enough!) That the intervention in Iraq, then in Libya was the result of the willingness displayed by their respective leaders to free themselves from the American currency, however another reason is an obligation to submit to this motto: an exporting country like China has no interest in seeing its dollar gains crumble overnight.
The BRICS independence inclinations are a highly dangerous ground because it is not clear the US abandon this manna on which its entire economy.

published: 04/01/15, 13:52
by plasmanu
Which bunch of conne'rie to create buzz ....
What beautiful signatures ...Image
The best is when it is bold and black with 666.

Edict: ON will all be bitter collar. So ON is all in the shit.
Important: the spirit of contradiction. Sometimes it serves something to read sth on fofo.

And the honest banker knew it responds.
Amha Nobel ... The appearance in anonymous mode.
Or something not to dip into French / Belgian lambda ...

published: 04/01/15, 17:35
by plasmanu
You mean nothing Obamot.
Are 30 pages easy ...
In 3 words ...

published: 06/01/15, 04:11
by Obamot
Ahaha has you good! In 3 words:

Debt? What debt? (See below the subtitle concerned)

It's going to answer? : Mrgreen:

Well I try to go to my little theory by trying to do a trace of anything that was said (and even though I could be wrong: not pull)

I note however what Sen_No_Sen said (on the CIA behind May 68.) history repeats itself ... De Gaul must surely have been part of the "axis of evil", be a dangerous errorist, and inevitably a fieffé dictator!

It'll be along for once, I think that Ahmed will lose pussy and do the little (already so that the subject is too simple ...) : Shock: : Mrgreen:

This is interesting on what he does not say. But what makes us understand is that the US (almost how the rest of the liberal economy that top layer) are at the end of their system. So as like to repeat the pros extractive analysis: we are in a permanent self-sustaining system of therapeuthic hard.

What we said article is of interest, rather obvious and clear: before there is a gulf (as if half the world's GDP is concerned, we all are). What he does not say (but we did understand) ... It's all savings mechanisms voluntarily (and by the nature of the system) largely out of control (liberalism, the law of supply VS demand, etc.), we are in a runaway train that no one has so far been slow (except management by crisis, wars, stock market that crack ruining small proprietors, to create in the blood a call air and going again! ...)

But then it stops for me with this article because we swim in full hypocrisy! (Although it is very interesting and I thank 'Tophe of publishing: it is brave seen what happens behind the scenes ...)

Because the solution in credit, debt accumulation (or rather shameless interest thereof), all that, all this is only one component and article fails to mention the ( like paying a fair price for raw materials, or products under valued as tea bought $ 1 1000 be sold for $ store, not better for rubber etc). AND IT ALSO IS A FORM OF DEBT that dare not speak its name ... But it appears that?

How the system works (Debt or inherently included)
And above all, what are the instruments that make it possible to know how he is doing (especially)
Only a few clues, because I do not pretend to know everything, but .. So, as I understand it, economic systems between them-have a multitudes of adjustment variables (which constantly evolve upwards and downwards according to the fluctuation of the markets, a bit like stock market values: except that this is at the macroeconomic level of finance ...) and it is these which give the trends top experts use to assess risk and make quick profits, before you have a chance to say "phew".

It's simple, isn't it? The burden of debt, coughed, coughed, it's a bit of a smokescreen, an old sea serpent being pulled out to impress us. To justify "that things are going badly" and to force us to admit of our personal will (even if against heart) that we must tighten our belts! Otherwise the bankers would be really idiots, lending us money that we could not reimburse, while risk calculation is their basic job!

A debt? What debt? As against the debt interest them ...
Proof is crack 2008 totally FICTITIOUS compared to workers, employment and the economy, since at bottom it is a crisis IMPORTED which hardly concerned Europe. This is where we stood we rosary debt composed of states. Of course it exists, but a state always pays his debts and interest (which have historically been very low) and it MUST SO TECHNICALLY PLAY ONLY ON FLUCTUATING YIELD AND PLAYING ON POINTS OF QUARTERS: REMEMBER US BONDS STATE iN SIXTY YEARS PERFORMANCE wAS PEANUT ... we do is still more to the Marshall Plan: the notional amount of the debt and interest I tell you ... well see totally fictitious. Pure assembly-trap of speculative finance.

daily global volume of trade on the stock exchange: 8 000 billion dollars! 1% taxed on these exchanges for a year = 29'200 billion.

Soaring US debt (that guaranteed by the State included)

And so in my humble opinion, the truth is not there (not the debt problem, let alone imported). She is in trading volume GLOBAL markets, day after day on the financial markets (Which should be reported to the debt level to remain relatively speaking) but chuuuut go your way: radio silence! Because then we would see maybe the drama would not be as great if all of us agreed to pay 2 or 3% more product, debt would fall quickly until completely disappear (in less than a year there would be virtually no debt on the planet, but it would take perhaps two or three years, because it would exempt countries least encourage repayment). Debts are a lure, a scarecrow which is stirred so that we focus on it (of course they exist and limiting: it is besides their essential role of targeted servo) but are inevitably partly fictitious (I will not pretend to a system or debt-money paradigm clutched erased and credits given to better-best, scratch and indiscriminate, it is not the subject of the thread, but not fall into the trap to consider debt as an obstacle while it is essentially because it would be an engine: please note the conditional, I speak in the m ... current system).

2.0 of adjustment variables
The well attended adjustment variables and much anticipated, it's a bit of the blow constantly insider trading ... No risk of getting caught! (Or at least it helps to know where the wind blows ...)

In a purely illustrative:
- The debt ratio for countries wishing to remain in the euro area and which can not exceed theoretically 3%.
- the key to "labor flexibility" (this time on the backs of employees) can also be considered as an "adjustment variable" (the sinews of war between the left and the employers, you noticed… since they don't want us to walk on their flowerbeds, but this immediately affects market values);
- In contrast, investment and speculation, have their own adjustment variables (there is not country by country, but sector by sector and branch by branch ...)
- The price of oil and energy in general;
- the remuneration of capital;
- mortgage rates;
- Mining stocks;
- etc ...
- and even consumption, of households, young people, seniors or babies (in short each class of "lifestyle") to its own adjustment variables and even… deaths (!);
In the end, almost everything could figure in there. But of course, there are strategic ones on which others depend ... Last but not least, remember it well: at least fifty percent of human activity is "parasitic" (tertiary: banking, insurance, finance, although a part is very useful, all the rest is to pump added value to the REAL productive sectors: primary sector ~ 2% or 3% of the maximum population, and the secondary sector ~ 20%, which we done if we remove the useful tertiary sector in the administration: 75% of the economic activity in which we would have to cut to get out of it: of course we would have to occupy people afterwards: hence the dilemma (probably insoluble without the introduction of "unconditional basic income" ... or even the universal dividend.)

Crisis adjustment variables (Not crack dung beetle)
If we are willing (and what the article does not say) is that we are in a "crisis of adjustment variables" (because it is from their observation that we see if there is a growth margin and not the other way around). So people are fooled by the far too simplistic definition of the word "growth" to mean anything understandable: it is basically a whimsical term to make us swallow the pill of the belt tightening! When in fact he at least has the definitions "esoeconomic" what the adjustment variables represent (you will note in passing that we are talking about growth CURVES, which amounts to talking about ADJUSTMENT VARIABLES which are just as much fluctuating curves ...) ("éso" because absolutely not to be divulged to all… The key combinations being kept strictly confidential: we will not unpack everything to journalists: they could talk) Image

It is the interaction and control it all depends the economy. Basically, the debt is only an indicator that means that a country living beyond its means, but do not say how much (since the calculation varies in nanoseconds depending on the game if goatee play different players in the market ...)

The hidden principles ofésoéconomie tell you that in fact all is well
Of course, how could it be otherwise since there was no crisis. Companies have just readjusted by firing, relocating, magnifying by purchases other in distress, or by going bankrupt and many others FAVOURABLE situations to redeploy cards and treat staff in the last ...
Because here's the scoop, it's been a few years as the economy working again quite well. but nobody knows, it is careful not to tell you ... The fall in oil prices will make it'll start donf ... BUT MOUTH SEWN until the next crisis, where we will tell you things are bad you will fuck the shit for your job (as it rigolera fresh in boardrooms, banks and insurance) ...

The whole question is to know who does what and when comes to influence this great thing, and I research the answer to the fundamental question: is an adjustment - necessary or not? - When and why and how? And if you find that NO (as just before the time T or pseudo subprime crisis has emerged and plunge the world into the doldrums .. You can only deduce that the adjustments have enjoyed some gravediggers since they were not necessary! as you will understand further by including the role of the effect of the adjustment variables.
And so obviously it was an adjustment - necessary or not? - For the major market players! And if it is not, you see me coming: ... if that's the REAL insider trading at the macroeconomic level, which is in connection with all that! (Or maybe not ...)

But what I mean is that relative to debt, there is plenty of headroom. And of course, the adjustment variables have much greater leverage than the weight of debt!

But in fact behind the scenes it does not show too much because everyone "plays the game" or more or less and especially closes its cackle. The more discreet we are, the more we act incognito. And it is also a question of hierarchy in the "strike force".

And in this system it's a good, such as defining what a government can do to support employment, stabilize the economy, protect its currency, etc ...

And the governments inspire a certain respect among the actors, because they could very quickly, if they wanted, "shoot" a free electron which would break certain rules (for others, the to big to fail, they turn a blind eye, because way too big G & $ for example ...)

There are also organizations that ensure control, it's called Gendarmes Market! (In our FINMA)

After internally in the opposite sidewalk, there are conflicts between policies, as the opposition between "neo-classical" and "Keynesian". (But that would lead us very far).

Then, at the macroeconomic level is understood (but also lower) the influential "actors" try to "build models" (according to the 3 markets: goods + services, money, work), and put them in simulations of the gadget, then observe them "in-vivo" (As would happen with my model, applying the updated adjustment variables and speculating upward or downward). There the scenarios become more complex (whereas a "lambda" market player will rarely go so far, whatever…)

Then it becomes more complicated, they compare "the global supply" with regard to the principle of supply VS demand ... (With the above that makes big equations ...) BUT they often manage to better control companies than they do. self-assess themselves (I know it's not a game, and in addition they have spies in almost all the boards of the biggest companies, otherwise they don't lend them a radish ...)

And this is where the scandal broke, with their models and their simulation, they inform each other and the ratings agencies, interact on mortgage rates, will play on key expenses such as rents, rates exchange rates, energy prices, etc.

Conclusion and effects over time:
1) is the description of the temporal effects of the above they can validate their simulations.

2) then they will see THE GLOBAL PLAN: if there are building or not, growth, a decline or no employment, changes of indices of general price level, etc.

3) is then that as far as adjustments have occurred on the labor market, the real impact of measures disappear adjustment variables, and only the negative effect on the general price level will be strengthened (What they call growing but that is an illusion, because everything is upstream).

This is what 3 point that tickles the neurons and demonstrates the deception. Debt? What debt? Is this really the real issue?

Then the Forex trading values, you know all that, to you to tell me if what I wrote is fitting ...

published: 06/01/15, 21:33
by Ahmed
I think I recognized the cat and her kittens (at least, I think!) ... :P

There is a certain contradiction (in the matter, this is not a reproach) between the assertion that no one really masters the economic machine (which is true) and that which consists in saying that the debt is + or - "a smokescreen".

It is true that debt is an effective means of manipulation of public opinion, that behind uncontrolled economic phenomena rampant number of opportunists from there to unravel the cause and effect, there is much to do ...

The extractivism which governs the trade of raw materials is not "a form of debt" strictly speaking, it is a confiscation of the product of labor for the benefit of the strongest. However, it is true that the disproportion between the starting and ending values ​​is only possible by creating in nihilo liquidity.

This, of course, the central point: without a constantly renewed financial creation, everything stops.

You write:
In other bankers are really idiots, to lend us money they could not repay, while the risk calculation is their core business!

The winners are risky loans when borrowers fail to meet their repayments and still winning in case of default, since the bank turned to the public power to substitute for defaulting customers.

Tackling finance hoping to restore some semblance of balance is an illusion, since it is finance that supports the entire economy. artificial support and temporary in nature, but which allows to postpone the bankruptcy of all, unable now to generate profits to the extent of the accumulated capital.

published: 06/01/15, 22:33
by Obamot
We agree that debt has several "functions" such as:

- monetary creation;
- Capital contribution to improve productivity or start a business or maintain, allowing all kinds of investments, etc;
- as a moral concept, it is the height of ultraliberalism (when national banks come to the bedside of private banks which have been too keen on playing the "airplane game" ...);
- Debt status as investment in infrastructure (roads for a report);
etc ...

I like the latter example, as he says it in the contradictions of which you speak. On the one hand a city want to borrow to invest in roads (which then hope the legislature, would promote exchanges by improving flow) while in contrast, are used for measurements of billion traffic calming, which are diametrically opposite direction ...

If I come back to the sixties or state bonds moved in quarter points, I think that private banks do not care about the world with their usurious rates (especially in case of default interest - including cases Greece - it takes the elevator and became leonine), and I think the biggest proportion of development of the debt passes to the delights of debt interest. Thus it continues to play its role of money creation, but lost its role of stimulating the economy, since it dries up the investments that were initially the reason!

We see the contradictions in relation to the granting of credit in the private. But when a debt is governed by the Code of Obligations, the creation of money supply resulting, not. And does not benefit those who have taken risks. Money creation by debts is often unfair!

Finally I mean fair for banks when they collect interest, but unfair to the people in case of bankruptcy, since the debt sponge via a grant from the National Bank.

The crack thus resulting credits have been misappropriated (voluntarily or not) are therefore unnecessary suffering peoples and economies.

But again, what I wanted to say is that debt is only part of the equation, a mechanical way to get an economic activity, so it's an extremely powerful tool. It is not necessary then to accuse him of all the evils.

(Parphrasing Charles de Gaulle) "Of course you can jump on your chair like a kid, shouting debt, debt, debt ... but that doesn't lead to anything!"

By that I mean that it is necessary to put its importance into perspective (today in the face of state debt, the disproportion of real debt VS compound interest is glaring: it has become racketeering) but not relativize its role, nor extrapolate its real proportion in the game. And as such, the journalist who held the pen made very incomplete remarks (all centered on the debt, as at sea the sailor sees only the tip of the iceberg), and who more is by mistakenly taking this one like symbol of all the evils (and finally of what he did not manage to qualify himself like "extractivism", if indeed it is known the definition of this word), false symbol since it is only one of the effects / vector of economic mechanics. And that if we look for the esoeconomic causes (I dared!), They are diverse, hence the fact that it is a crime that probably kills millions of people slowly (and in the process only fatten up 'a small number), but which is extremely difficult to define since the responsibilities are shared ...

Because in fact, I do not believe in the virtue of credit, or banks that are supposed to be the guarantors of that (small) under. : Mrgreen:

The banks know very well when to recover the large jackpot (outside the usual reimbursement circuits Currency Strength sounding and stumbling) they are paid for when the risk is minimum and the maximum profit: I have a friend who was in insurance (and therefore banks) and who had made the calculation, with their deadly trade, the banks ended up owning all the casino and played with our lives (several generations means ...) and remettaient even putting several times in the game ...)

Will be necessary at some point, all that is seen!

published: 06/01/15, 23:14
by Obamot
Ahmed wrote:The extractivism which governs the trade of raw materials is not "a form of debt" strictly speaking, it is a confiscation of the product of labor for the benefit of the strongest. However, it is true that the disproportion between the starting and ending values ​​is only possible by creating in nihilo liquidity.

This, of course, the central point: without a constantly renewed financial creation, everything stops.

Pt'être although yes (or not), but not quite scratch ... call it what you want then, as:
- it's the south that helps the north and not the north that helps the south!
- it's the lower income that helps people with higher income and not the other way around!
- it is the countries in greatest difficulty which provide the most wealth;
etc ..