Marxist Hacker 42's Journal: Is the worldwide credit market insolvent?

I've been laughed at elsewhere- but I'm not the only one to notice. IF the worst case scenario hits, and all of these so-called "Derivatives" being traded on the exchanges like so many hot potatoes of bad debt really ARE hot potatoes of bad debt, then the sum total of all the world's production is $30 trillion/year SHORT of even paying for the interest on these loans. And if the United States is not able to avoid a depression, it's all about to come crashing down around our ears.

Yep.

[Philip K Dickhead]

That's why they want the Sec of Treas to be a Financial Dictator, without accountability or oversight. That's why both candidates support the move. That's why the R's defeated this - current bill provided TOO MUCH OVERSIGHT.

Command-and-control economy is the outcome. Troops in the streets will be the effect.

moof

[Bill Dog]

I read your JE. I read TFA. So what is all that in English?

Re:

[Marxist Hacker 42]

Basically, it's not JUST the United States that has been spending $108 for every $100 earned- it's the WHOLE world. To the point that we now owe our next full year's production in interest alone, and will never be able to pay off the principal.

Or to put it another way- the bankers held a bloodless coup on every government in the world and are now demanding their tribute.

Re:

[webhat]

Nicely put. I had a similar idea, although I don't really think that the bankers are requesting their tribute. They just want to collect on their insurance. The problem being that they are also the bankers for the insurance companies and they are going out of business. That's one of the failings of a separation of banks and insurance companies after the last big crash, insurance companies need banks too.

Re:

[Marxist Hacker 42]

Or to put it another way, everybody's addicted to credit, and can't imagine any way to live within their means (even those of us who know better, because we are also dependent upon businesses that are dependent upon credit).

Oh yeah, and the governments want to give us more credit to get out of this mess- how about forgiving all the loans instead, crashing the world's economy, and starting over? Going to happen eventually, no matter what you do at this point....