Author Topic: Collapse is inevitable (Read 528 times)

Matthew · « **on:** August 12, 2007, 05:30:54 PM »

Someone put it very nicely, so I thought I'd pass it along:

HeliBen can not increase money supply, that great feat is accomplished by the banks as they loan out "money" that they create out of thin air, by fractional reserve banking.

If no one wants to lend because not enough people are credit worthy, or borrow, then the system implodes. This will ALWAYS happen with a fractional reserve system, since the rule of compound interest demands constantly increasing money supply to pay the interest on the existing debt. The principal is created out of thin air, but not the interest, growth is the only way it gets serviced.

We are headed for systemic implosion and no power can stop it. The Fed is about to be revealed as powerless. The only reason it has a perception of power is because people do not understand the mechanics of the banking system.

gladius_veritatis · « **Reply #1 on:** August 12, 2007, 05:54:28 PM »

I wish someone could "nicely put it"...back together. Humpdy Dumpdy is finally beginning his great, great fall.

dust-7 · « **Reply #2 on:** August 13, 2007, 12:28:41 AM »

Quote from: gladius_veritatis

I wish someone could "nicely put it"...back together. Humpdy Dumpdy is finally beginning his great, great fall.

What if they allowed 50-yr mortgages at a slowly increasing rate, but not to exceed twice the initial payment within, say, the first 20 years?

People can't qualify because homes don't sell for $50K like they did in the 1960s. And wages have gone up - a little - for many, if you adjust for inflation. Housing has exploded and suffered from hyperinflation in the same period.

But if some adjustments are made, and some take the initial hit, the money can flow again. That assuming the whole problem, here, is simply credit-worthiness.

dust-7 · « **Reply #3 on:** August 13, 2007, 12:38:20 AM »

Quote from: ChantCd

the rule of compound interest demands constantly increasing money supply to pay the interest on the existing debt. The principal is created out of thin air, but not the interest, growth is the only way it gets serviced.

I'm not sure I understand. If someone borrows $500, LOC, business or consumer credit, whatever, and pays the interest, then from another account pays off the $500 because they used it to make money on a deal, how much new money was created? Let's say the deal was a stock tip. The brokers raised the price by a certain amount. And through the broker - bought low, sold high. Was that where the money supply increased?

gladius_veritatis · « **Reply #4 on:** August 13, 2007, 08:09:32 AM »

Quote from: dust-7

What if they allowed 50-yr mortgages at a slowly increasing rate, but not to exceed twice the initial payment within, say, the first 20 years?

We are still dead in the water. The entire world knows we are full of it. They have been bailing us out, and they are tired of it. We have no intention of paying anyone back, and they know it.

We, as a nation, are no longer 'credit worthy', and this will lead (has led) to our destruction.