tag:blogger.com,1999:blog-2992740250270600844.post7699106408938810081..comments2024-03-24T05:26:32.964-07:00Comments on Advancing Time: Reflecting On How We Reached This Economic RealityBruce Wildshttp://www.blogger.com/profile/10181323607060607040noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2992740250270600844.post-25127518677034354812019-06-23T05:47:32.300-07:002019-06-23T05:47:32.300-07:00One sign we are entering a dangerous financial per...One sign we are entering a dangerous financial period is that "boondoggles" are on the rise. The fact is when money is plentiful and interest rates low economic growth is fueled by projects that never should of, or would never have been conceived during normal times.<br /><br />It is very important people understand that economic growth does not equal economic strength. Quantity simply does not make up for poor quality, we are talking about two totally different animals. The article below delves into why simply adding more people or jobs will not solve all our economic woes.<br /><br />https://brucewilds.blogspot.com/2019/05/economic-growth-does-not-equal-economic.htmlBruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-22606050680695948202019-06-21T11:32:14.628-07:002019-06-21T11:32:14.628-07:00the system from top to bottom is minimum payments ...the system from top to bottom is minimum payments until credit saturation ruins the day.Gordian knothttps://www.blogger.com/profile/02644358614023504915noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-66210106717819783072019-06-20T08:52:07.044-07:002019-06-20T08:52:07.044-07:00While I don't disagree with anything the autho...While I don't disagree with anything the author said in this article we are missing the point. The point being that when the Federal Reserve was enacted in 1913 our monetary policy was setup to become a Ponzi Scheme, think Las Vegas when you hedge your bets that not everyone will win. It's why fractional reserve banking exist when it first started out with a ratio of 9:1. I would guess with all the QE, that number could be higher.<br /><br />Our banking and monetary policies have worked in concert to PRODUCE exponential growth on a finite planet. In other words, there are only so many resources to go around. If anyone has ever played games such as Age Of Empires where it's a resource mgmt game, then this will all click.<br /><br />So since our money system requires exponential growth to function, you also need exponential population growth to service the future debt that is created as a result.<br /><br />So yes I fully agree with the author that it's pretty stupid and basic that the outcome will be VERY BAD. It always is as history has shown. The problem we face today that has NEVER HAPPENED BEFORE is that all of our economies are now tied together through globalization. It's why small countries such as Greece caused so much market chaos when they threatened to default on their EU loans or when Cyprus declared a Bank Holiday.<br /><br />But all of this reverts back to the Federal Reserve and the money and banking system they sold to the US Government back in 1913. The world will reap the chaos whenever the day arrives that this all blows up in everyone's face.Rod Briggshttps://www.blogger.com/profile/01892085143658761123noreply@blogger.com