My next book is delayed for a desire to incorporate absolutely cutting edge info on how to navigate this profoundly changed economy. Read this and then see my comments...
In Zimbabwe, they also worried over the false economy.
I realize I have been saying "credit deflation" but the last week was a revelation. Credit is beyond hyperinflation, it is now worthless. But prices are dropping in the real economy, deflation, as currency is destroyed, and fewer dollars are chasing the same amount of goods and services, inside the real economy.
First time I ever used italics in this blog.
Worthless credit is chasing worthless assets making up for most of the reported economy and growing that massive debt. When a person who simply will never pay for a new car he "bought" from a company that is on life-support, like GM, who offers unneeded cars of inappropriate design to the market, then multiply that across our entire economy, and worldwide.
And this explains why GE has abandoned its credit division. Creating debt through off-balance sheet, no reserve requirement stand-by letter of credit facilities (technically how they do it) has no future. GE is throwing junk overboard to focus on real economy machinery and equipment.
Read on in the article to see the angst and worry over the right "policy." The policy will focus on fighting over what real assets are, who owns them, once marked to market. It is absurd the notional debt above the value marked-to-market assets will ever be paid. So there will be amazing fighting over who gets what, when the simple solution will be to start your own business.
Count on it, if capitalists experience any emotion at all, it is entitlement. They will struggle perniciously to keep what they imagine is their due, and will end up with ashes. We non-capitalists, we few free marketers, will thrive beyond imagination and under the radar, without ever breaking a rule (in capitalism, almost all small businesses necessarily are at least bending the rules).
Feel free to forward this by email to three of your friends.
Global debt is now in the region of $200 trillion. The McKinsey Global Institute recently published a report highlighting the bloated, unsustainable levels of debt that have been accumulated globally and the huge risks when interest rates begin to rise again.McKinsey concluded that total global debt was $199 trillion and the little covered report was released in February - 3 months ago - meaning that the figure is likely over $200 trillion. With a global population of 7.3 billion this works out out at over $27,200 of debt for every man, woman and child alive in the world today.Almost 29% of that debt - $57 trillion - has been accumulated in the relative short period since the financial crisis erupted in 2007 - just 8 years.Interest rates will not rise again for the next 40 years, anymore than they will issue four trillion dollar Zimbabwe currency units. Credit is in hyperinflation, and it is worthless to the economy, the real economy.
In Zimbabwe, they also worried over the false economy.
I realize I have been saying "credit deflation" but the last week was a revelation. Credit is beyond hyperinflation, it is now worthless. But prices are dropping in the real economy, deflation, as currency is destroyed, and fewer dollars are chasing the same amount of goods and services, inside the real economy.
First time I ever used italics in this blog.
Worthless credit is chasing worthless assets making up for most of the reported economy and growing that massive debt. When a person who simply will never pay for a new car he "bought" from a company that is on life-support, like GM, who offers unneeded cars of inappropriate design to the market, then multiply that across our entire economy, and worldwide.
And this explains why GE has abandoned its credit division. Creating debt through off-balance sheet, no reserve requirement stand-by letter of credit facilities (technically how they do it) has no future. GE is throwing junk overboard to focus on real economy machinery and equipment.
Read on in the article to see the angst and worry over the right "policy." The policy will focus on fighting over what real assets are, who owns them, once marked to market. It is absurd the notional debt above the value marked-to-market assets will ever be paid. So there will be amazing fighting over who gets what, when the simple solution will be to start your own business.
Count on it, if capitalists experience any emotion at all, it is entitlement. They will struggle perniciously to keep what they imagine is their due, and will end up with ashes. We non-capitalists, we few free marketers, will thrive beyond imagination and under the radar, without ever breaking a rule (in capitalism, almost all small businesses necessarily are at least bending the rules).
Feel free to forward this by email to three of your friends.
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