Quote:
Originally Posted by Defiance Inc
This economy is based on credit. Just look at the core of the system. Our government borrows money from the reserve. Our government pays interest on that loan. That IS credit. That money is then dispersed and fractional reserve kicks in. Where each succession of a loan generates more credit/money. Think about it... this all started with sub prime loans, which make up a very small percentage of all loans. So how can such a small percentage of loans tank an entire global economy? CREDIT/fiat currency.
The first part of this movie give an overview of the current situation, the last part gets more into theology type stuff with society if you interested in that type of stuff...
http://video.google.com/videoplay?do...05277695921912
Yes, there have been worse times. But this is just the beginning. |
I understand what our money system is and why it's f'ed up.. However our fake money system didn't do this, our personal/business credit markets (which are a mirror of our money system) did this.
It all works as long as every loan chain, pretty much 100% of the time, pays up. But as soon as massive amounts of people/companies can't pay up, banks can't pay, govs can't pay, one chain breaks the entire thing fails and/or your trade debt increases.
It can be corrected by not letting the mass majority of 'people and companies' have credit to 'run' on. More people dealing in cash only, puts the market back to what it's really worth before the fake credit market created more demand.
Allowing hundreds of millions of people and companies, to live on, survive on, expand without need, ect on credit.. created massive demand on millions of un-needed things, which tosses off trade agreements, and all types of bs.
And when we the people or companies can't pay, banks can't pay, companies fail, less tax is collected, more trade debts go up.... at the mass level of hundreds of millions around the world, you end up the situation we have today.