Die Schuldenfalle wird in allen Ländern erkannt!

verfasst von Albrecht, 09.01.2002, 23:03

@Richard640
(2002_yearfiatdied)
Jan 09, 16:23

A debt based fiat system can only fail. It is IMPOSSIBLE
to be solvent under a fiat monetary system..IMPOSSIBLE.
NEw credit must be created to pay off the interest of
off old credit. ANd as the credit cycle matures, cash
flows needed to service debt slows making the game that
goes round and round STOP!. When credit expansion is
allowed to run AMOK for years, excess capacity is
created, pricing pressure takes hold, and most
importantly income growth shrinks. Creditors can't pay
back debtors. They can take on more credit like now but
that's an exercies in futulity as that process only
aggravates deflationary pressure read more pricing
pressure and slower profit growth. So yes, the credit
cycle MUST end, creditor can't pay bills as income slows
all they can hope for is that the federal reserve
monetizes all debts. In that case, hello weimar
republic. Loook at Japan, we have gotten to the point of
the zero interest, unlimited access to credit but
companies dont' want to borrow. The japanese economy has
massive excess capacity and corporate debt levels
combined with slowing income and profit growth. Again,
this makes old credit impossible to pay with income and
new debt won't be added because that only adds to the
burden. Without bankruptices and liquidiation pricing
power and profit won't return and neither will the
ability for anybody to pay back loans. SO the Japanese
are right where the U.S.A. is: Either a systemic
meltdown driven by debt trap dynamics or hyperinflation
achieved througha a full scale monetization of debts by
the US federal reserve of BOJ>

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gesamter Thread:

• Die Schuldenfalle wird in allen Ländern erkannt! - Albrecht, 09.01.2002, 23:03
  • Re: Die Schuldenfalle wird in allen Ländern erkannt! / Und der Debitismus! mT - JüKü, 09.01.2002, 23:09
    • Re: Die Schuldenfalle wird in allen Ländern erkannt! / Und der Debitismus! mT - Albrecht, 09.01.2002, 23:24
      • Re: Die Schuldenfalle wird in allen Ländern erkannt! / Ja, Toni..... - JÃœKÃœ, 09.01.2002, 23:28
        • Re: Die Schuldenfalle wird in allen Ländern erkannt! / Ja, Toni..... - Toni, 10.01.2002, 06:56