Monday, January 26, 2009

 

Getting Ready for Default

Need a jolt? Well, maybe you’ve had too many lately and want to give your heart a rest. But you really ought to take a look at this. This essay Global Money Supply and the Value of Gold is very informative, but even if you don’t have time to read the whole thing, the writer’s concluding observation is a real heart-stopper:
As an interesting aside, one may note that the present US debt of US$10.5 trillion easily exceeds the value of ALL circulating currencies in the world PLUS the value of all gold ever mined! A naive person may wonder just exactly how the American government ever intends to pay this debt off...
Now, unless you are a vegetable, you have probably been wondering about public debt a lot lately, since we already had plenty to begin with, and now it’s being piled on exponentially in a futile attempt to save a dying system.

The answer to the question is, of course, that this debt will never be paid back. It’s totally out of the question. The infinite growth economy is on its last leg, and industrial civilization has started to slide. Even if governments (yes, that’s plural) don’t actually default officially, all those debts will just fall by the wayside in the post-crash chaos.

That’s my prediction, anyway. If you don’t believe it, go ahead and stock up on debt.



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