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Monthly Archives: May 2017

For Whom the Debt Tolls


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Pick Up Your Cross (courtesy Google Images)

Michael Snyder (Economic Collapse Blog) is an intelligent, prolific author of articles concerning the U.S. and global economies. He’s not optimistic. As you can tell from the name of his blog, he’s expecting an economic collapse. He recently published an article entitled “Global Debt Bomb Ready To Explode – $21,714 For Every Man, Woman And Child”.  That article got me thinking; agreeing in part, but also disagreeing—or at least quibbling. What follows are excerpts from that article and my comments:

 

According to the International Monetary Fund, global debt has grown to a staggering grand total of 152 trillion dollars. Other estimates put that figure closer to 200 trillion dollars.”

Note that some persons including the Congressional Budget Office (CBO) and economist Laurence Kotlikoff think that, including unfunded liabilities, the U.S. government’s real National Debt (claimed to be “just” $20 trillion) may actually be over $200 trillion. Thus, if the $20 trillion National Debt of the U.S. is understated by $180 trillion, then the global debt estimate of $152 trillion referenced by Michael Snyder should also be understated by (at least) $180 trillion. If so, the real, total global debt could be at least $330 trillion.

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Watch Global Cyber-War in Real Time


The animated map at the following link purports to show international cyber-warfare attacks as they’re taking place, right now.  Although the graphic looks like something out of Star Wars, it is presented as truth.  The graphic may be the single most mesmerizing, beguiling and disturbing image I’ve seen on the Internet.

Most of the cyber-attacks originate in the U.S.  Most to the cyber-targets are in the U.S.  It’s hard to tell whether the U.S. is attacking the world, or if the world is attacking the U.S.

If you look under the “Attacker” heading, you might be surprised to see how often the world’s cyber-attacks are attributed to the “Microsoft Corporation”.

It’s hard to believe.  We’re looking at a new form of warfare that may soon render ICBMs and nuclear weapons obsolete.

But, if we can believe this graphic, it appears that while most of us go about our lives as if everything is fairly normal, some sort of international (or is it inter-corporate?) war is being waged right now.  It seems inevitable that at least one of these attacks will someday cripple the U.S. electrical grid or some other computer-dependent institution that’s critical to our economy.  Sooner or later, one of these cyber-attacks seems seems certain to precipitate some sort of cyber-problem in the U.S., EU, China or Japan sufficient to push the whole world into a collapse.

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To view the live image, click here.

 
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Posted by on May 23, 2017 in Cyber-warfare

 

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Debt-Based Monetary System Demands Ever More Debt—Part IV—“Why”?


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BUT WHYYYYY?!

In the first three “Parts” of this article (#1 More Debt, #2 Ponzi Schemes, & #3 Fractional Reserve Banking), I explored and advanced an hypothesis concerning America’s National Debt. I argued that our National Debt isn’t growing due to accident or governmental incompetence. Instead, I argued that that our seemingly uncontrollable National Debt (it nearly doubled under the Obama administration) grows out of a mathematical necessity that’s somehow caused by our Debt-Based Monetary System (DBMS).

In essence, I believe that our DBMS forces our National Debt to grow as a necessity and requirement. The the DBMS will die if it’s not constantly fed an growing stream of debt. If the DBMS dies, it will kill our debt-based economy.

More, I suspect that the debt must not only grow, but must grow “geometrically” or, at least, it must grow faster than the economy. If that’s true, it’s the the kiss of death for the DBMS and our debt-based economy.

Our DBMS (Debt-Based Monetary System) doesn’t simply make more debt possible, it makes more debt necessary. If we fail or refuse to go deeper into debt, our DBMS and economy will collapse into chaos.

If my hypothesis is roughly correct, it means that any promise by the Republican Party or President Trump to eliminate deficit spending and/or reduce the National Debt from $20 trillion to, say, $19 trillion—is not only false, but potentially dangerous. If they succeed in significantly reducing the National Debt, I believe that reduction could cause our debt-based economy to collapse.

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Debt-Based Monetary System Demands Ever More Debt—Part III—Fractional Reserve Banking


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The FOUNDATION for our Debt-Based Monetary System:  PROMISES to Pay that Can’t Possibly be Kept.

For the past several months, I’ve been exploring an hypothesis that strikes me as fantastic, unlikely and yet (probably) true. In broad strokes, it’s the idea that our fiat, debt-based monetary system requires ever more total debt to function.  Going deeper into debt is not optional; we are forced by our debt-based monetary system to do so.  I.e., if the American people ever stop going deeper into debt, the whole debt-based monetary and economic system will collapse like a junkie forced to quit heroin cold turkey.

If my hypothesis is roughly correct, the persistent growth in the National Debt (it nearly doubled under Obama) is not the result of governmental negligence or self-serving politicians who get elected by promising more “free lunches” (services purchased with debt). Instead, our National Debt must increase (perhaps geometrically) in order to feed, protect and sustain our debt-based currency and economy.

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Debt-Based Monetary System Demands Ever More Debt—Part II—Ponzi Schemes?


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Is our Debt-Based Monetary System a Ponzi Scheme?  [Courtesy Google Images]

Recently, in Part I of this series, I promised that in Part II, I’d explain “why” the survival of our debt-based monetary system (DBMS) depends on the creation of ever more debt. I argued that our massive National Debt is not an accident or evidence of political malfeasance, but rather an intentional and necessary consequence of accepting our debt-based monetary system (DBMS). I argued that our DBMS can’t survive without going ever deeper into debt.

I compared “payments” (which are tangible, real assets like gold or silver coins) to “promises to pay” (which are intangible, paper debt-instruments like paper dollars). I warned that, given the choice between receiving a tangible “payment” and an intangible “promise to pay,” only a fool would take the paper “promises to pay”.

I illustrated my argument about “promises to pay” by reminding readers of how many times they had made or received promises that had failed. My point was that promises are easily made and routinely broken.

So, I suppose it should come as no surprise that my promise to use this week’s article to explain the “why” behind the debt-based monetary scheme will also be broken. I began to write this second article with some background on “Ponzi Schemes” (which is how I and others frequently describe our DBMS).  But, when I looked into “Ponzi Schemes,” I discovered that maybe that’s not the most accurate way to describe our DBMS. I also realized that maybe I should try to discern and describe the nature of our DBMS before I got into the “why”.

Result? Here, in Part II of this series of articles we’re going to explore whether our DBMS is really a “Ponzi Scheme” or if it’s something else. Then, in Part III (coming soon) I’ll present my notions concerning the fundamental “why”.

I promise.

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