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Sunday, April 19, 2015

Beyond The Debt Bubbles


I for one am a person that believes in cause & effect, because there is always a reason why things happen, and where the economy is today is no exception to that rule.  Of course we could lazily blame the bankers for all of our financial & economic woes, we could blame ourselves, e.g. we are poor money managers, but if we were to be perfectly honest about it, it's a combination of multiple things that brought about the problems we face today.

Look at the housing markets for example, people who work for commissions seek to sale as many homes as possible so that they can increase their income, and that not only applies to real estate agents  & brokers, but also the home loan industry.  The re-fi people (Think refinance) also boosted the debt bubble we faced in 2008 & will once again face off against in 2015, of course these are manufactured anomalies in our society, and the greedy, well they continue to be greedy.

Greed is the number one contributing factor behind the bubbles we have seen, whether it's the energy sectors, the banking sectors, or any other sector, the commissioned workers are dooming us because in order to make more money, well they have to make more sales, and that most definitely applies to the auto-industry, which is another bubble that has grown.   Indeed the amount of car loans on record have surged to unprecedented levels in times past and is still yet happening today, indeed almost anyone can get a loan today for a car, and the used car markets have taken a hit in sales because of it!

When you see a lot of people driving new cars in poverty stricken areas you know something is amiss, therefore we need to all become consciously aware of changes, for those changes that we notice are indicators of changes in our society, and it's how we come to the conclusion of the critical question “why?”  So, why have we still been in economic turmoil since the 2008 recession?  Well the answer may not be as complex as some believe it is.

Greed is the simple answer, people needed more money, and in order to get it, well they had to make more sales, and when sales began to slump, well corporations began to fold up, because in a world full of crony capitalism, the CEOs sign themselves big bonuses, cut a lot of jobs, and raise their corporation's stock value with a swipe of a pen.  Crony capitalism is essentially to blame, people who run corporations are driving the prices of things up, that also applies to governments, for they are the number one reason why inflation ensues, and that's because in order to service their tremendous debt, they need inflation to increase tax revenues.

It's also why you see the police are constantly hounding the public with tickets, it's not about justice or controlling the public, it's about profiteering plain and simple, and if you ever actually went to court for a serious fine, you'll see why I make this statement.  The profiteering has extended to every market, especially the banking industry, who with fiat cash are buying up all of the public assets of any real worth, like utility companies / etc, and this too will lead to serious problems later.

The problems arising from the greed, especially in the energy markets, have gone on for so long that the system eventually reached an apex of greed, the people cannot support the greed, and that greed is collapsing the system, plain and simple.  Still the greed continues, except this time it's the financial markets that will take the hit, and the banking industry as well, because a debt based economy will eventually reach maximum debt and the confidence in the issuing currency will falter.

Debt is a major factor that cannot be ruled out, people have little or no self-control when it comes to borrowing, they either don't realize they have to pay it back or they are forced through hardship to take a loan, and though some people foolishly believe they won't have to pay it back, but that's not true!  Even if you choose not to pay for your loans, like many people have done, that only increases the debt bubble, and well that drives us to where we are today.

Though people took out loans they could by no means afford, irresponsibly, the accumulated public debt has grown to such a level that our grand children's grand children grand children will be paying for it for many generations to come!  They will pay for it in the way of a depressed economy, where everyone will be working all day just to eat, because well don't expect the wealthy & elite to pay for it all, it's simply just not going to happen, and so we are in effect headed for the greatest depression the world has ever known.  (Not to mention what it will do to mortgages.)

Mainly because the elite / ultra wealthy are also to blame for this financial havoc, they were irresponsible, they got greedy, that greed caused financial debt bubbles, and those bubbles will certainly burst, and I fear the cost for this will be outrage, which will lead to war.  Of course we've already seen the results of the greed, inflation, and market manipulations, but the worse is still yet to come!

When the party is over, as many believe will likely be sometime in September 2015, there won't be anything to sing or dance about, so enjoy your last summer folks, what comes next is not anything anyone in this world is prepared for unless you are wealthy beyond measure, and even then that's not a good thing, because if you can't hear the war drums by now, you are completely deaf or choosing to ignore them, clearly.  So, you see, there is a price for being greedy & evil, though you may not pay for it now, but you will always pay for it in the end, and that you can take to the bank, while they are still open.
(Which won't be for long!)

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