Posted on 01/28/2012 3:53:48 PM PST by appeal2
I finally got a chance to sit down with Chris Martenson. I've been reading his ChrisMaternsonReport for some time now. For years he's been saying the US was going to get into some sort of credit crisis, and "Da Boyz" were going to try and print our way out of it. Chris and I agree, we are all witnessing a debt super cycle that's in the process of coming to its conclusion.
We are living in the tail end of a 40 year global credit bubble. For the past four decades, the entire world has been growing credit/debt faster than underlying economies. Economic growth is measured by GDP, but GDP is a fraudulent measure. GDP doesn't really measure the wealth creation of an economy; it measures consumption, which in our society has become synonymous with wealth. But wealth is really something totally different than consumption. Chris and I agree, the calculation of GDP should not include the effects of going into debt simply to consume. Consider, Bernie Madoff who contributed 65 billion to GDP, but now all that money has just disappeared. Same with other entities that contribute to GDP like MF global.
The government continues to print money mostly for consumption, not investment. They are just kicking the can down the road, and overstating the wealth of the economy. We cannot print our way to prosperity.
Recent email:
Wealth and dollars are not the same thing; this simple fundamental of economic analysis is lost in all the shouting. A nation develops wealth in four ways; they dig it out of the ground, the grow it, they trade something of lesser value they can make for something of greater value to makers or they invent something that they can trade something of greater value to the inventor.
Spending of any kind is a little like raking gravel’ it does not create wealth, or derivately increases the value of wealth tokens (ie dollars, euros, etc.) unless it fosters wealth creating trade or invention. This is manifest in currency fluidity and the time factor of money (both transaction speed and money accelleration). To the extent that spending reduces currency fluidity, you can bet it is corrosive to wealth creation. Unfettered spending by a single entity does that. Currently, only large governments have the ways and means to do so, although monarchs, autocrats, and financial barons (Mellon, Rothschild, Soros) have tried it in the past.
It is not just government spending; any spending so large that it retards currency fluidity, and thereby wealth creation, is a bad thing.”
author unknown
That said, a turning is coming.
So what do we do while waiting for the crash? Food,guns and ammo?
So I might be the wrong guy to ask.
But if Romney or Obama gets elected...squirrels are gonna be mighty tasty (or hard to fill if they have become members of the family as mine have).
Vive le revolucion (the 2nd American Revolution, that is!!!
Squirrel....mmmmm. Fry the young ones. Make dumplings with the older tough ones.
And don’t forget to fry the heads.
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