In the tense foreign film ‘Wages of Fear,’ the men must gamble with their lives to pay their bills amidst an economic depression, compelled to take a high risk, and high paying job driving nitroglycerin down a long, bumpy road to deliver it to the oil fields to put out larger fires. In the current economy, we must also keep putting the gun to our head in order to keep society functioning… good luck on the draw.
This article was written by Tyler Durden and originally published at Zero Hedge.
Editor’s Comment: The debt problem will always be the worst, because it compounds interest indefinitely, and in a very harsh way, and because it so thoroughly swamps the people who can least afford to deal with it. All the incompetence, corruption and mismanagement of the federal government, and those of the state and local governments, will ultimately enslave the taxpayers and U.S. citizens to generations of debt servitude, where we could ultimately be prodded into promising our children, and their children, as collateral on the debts we owe.
Underneath it all, the Federal Reserve and central bank systems, controlled behind a thin veil of the world’s ranking financial elites, cast booms and busts just as God Almighty casts thunder and lightning, preferring to bring down huge swaths of the population in trials and tribulations that will soon prove hard to endure.
For eight years, it has been easy money to the top of the heap, and flowing credit in the system; but those payments will now come due, and the larger crisis on the horizon… get your affairs in order while you still can.
Bill Gross: “Our Financial System Is A Truckload Of Nitroglycerin On A Bumpy Road”
by Tyler Durden
Courtesy of Bill Gross’ latest monthly letter “Show Me The Money“, here are some perspectives on the only thing that has kept the global economy going since the financial crisis: debt, and lost of it.
in 2017, the global economy has created more credit relative to GDP than that at the beginning of 2008’s disaster. In the U.S., credit of $65 trillion is roughly 350% of annual GDP and the ratio is rising. In China, the ratio has more than doubled in the past decade to nearly 300%. Since 2007, China has added $24 trillion worth of debt to its collective balance sheet. Over the same period, the U.S. and Europe only added $12 trillion each. Capitalism, with its adopted fractional reserve banking system, depends on credit expansion and the printing of additional reserves by central banks, which in turn are re-lent by private banks to create pizza stores, cell phones and a myriad of other products and business enterprises. But the credit creation has limits and the cost of credit (interest rates) must be carefully monitored so that borrowers (think subprime) can pay back the monthly servicing costs. If rates are too high (and credit as a % of GDP too high as well), then potential Lehman black swans can occur. On the other hand, if rates are too low (and credit as a % of GDP declines), then the system breaks down, as savers, pension funds and insurance companies become unable to earn a rate of return high enough to match and service their liabilities.
U.S. Total Credit Market Debt as a Percent of GDP
Central banks attempt to walk this fine line – generating mild credit growth that matches nominal GDP growth – and keeping the cost of the credit at a yield that is not too high, nor too low, but just right. Janet Yellen is a modern day Goldilocks.
How is she doing? So far, so good, I suppose. While the recovery has been weak by historical standards, banks and corporations have recapitalized, job growth has been steady and importantly – at least to the Fed – markets are in record territory, suggesting happier days ahead. But our highly levered financial system is like a truckload of nitro glycerin on a bumpy road. One mistake can set off a credit implosion where holders of stocks, high yield bonds, and yes, subprime mortgages all rush to the bank to claim its one and only dollar in the vault. It happened in 2008, and central banks were in a position to drastically lower yields and buy trillions of dollars via Quantitative Easing (QE) to prevent a run on the system. Today, central bank flexibility is not what it was back then. Yields globally are near zero and in many cases, negative. Continuing QE programs by central banks are approaching limits as they buy up more and more existing debt, threatening repo markets and the day to day functioning of financial commerce.
I’m with Will Rogers. Don’t be allured by the Trump mirage of 3-4% growth and the magical benefits of tax cuts and deregulation. The U.S. and indeed the global economy is walking a fine line due to increasing leverage and the potential for too high (or too low) interest rates to wreak havoc on an increasingly stressed financial system. Be more concerned about the return of your money than the return on your money in 2017 and beyond.
* * *
And as a follow up, a primer by Gross on fractional reserve lending:
“Pretend,” I told the “fam” huddled around the kitchen table, that there is only one dollar and that you own it and have it on deposit with the Bank of USA – the only bank in the country. The bank owes you a buck any time you want to withdraw it. But the bank says to itself, “she probably won’t need this buck for a while, so I’ll lend it to Joe who wants to start a pizza store.” Joe borrows the buck and pays for flour, pepperoni and a pizza oven from Sally’s Pizza Supplies, who then deposits it back in the same bank in their checking account. Your one and only buck has now turned into two. You have a bank account with one buck and Sally’s Pizza has a checking account with one buck. Both parties have confidence that their buck is actually theirs, even though there’s really only one buck in the bank’s vault.
The bank itself has doubled its assets and liabilities. Its assets are the one buck in its vault and the loan to Joe; its liabilities are the buck it owes to you – the original depositor – and the buck it owes to Sally’s Pizza. The cycle goes on of course, lending and relending the simple solitary dollar bill (with regulatory reserve requirements) until like a magician with a wand and a black hat, the fractional reserve system pulls five or six rabbits out of a single top hat. There still is only one dollar bill but fractional reserve banking has turned it into five or six dollars of credit and engineered a capitalistic miracle of growth and job creation. And importantly, all lenders of credit believe that they can sell or liquidate their assets and receive the single solitary buck that rests in the bank’s vault. Well . . . not really.“And so,” my oldest son, Jeff, said as he stroked his beardless chin like a scientist just discovering the mystery of black holes. “That sounds like a good thing. The problem I’ll bet comes when there are too many pizza stores (think subprime mortgages) and the interest on all of the loans couldn’t be paid and everyone wants the dollar back that they think is theirs. Sounds like 2008 to me – something like Lehman Brothers.”
“Yep,” I said, as I got up to get a Coke from the refrigerator. “Something like Lehman Brothers.”
This article was written by Tyler Durden and originally published at Zero Hedge.
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I’ve been debt-free forever. Home and vehicle paid for. Most of my spare $$$ goes to prepping. No stupid credit score to worry about since I have no credit cards and don’t take out any kind of loan for anything. That’s one type of stress I don’t have in my life. Everyone keep stacking and praying.
NEWS FLASH YOU FUCKING MORONS: AFRICA HAS THE SAME BANKING SYSTEM WE HAVE
I USED TO TALK A LOT ABOUT ECONOMICS ON THIS SITE
I’M PERFECTLY CAPABLE OF GETTING TECHNICAL
THERES NO POINT TO THAT SHIT
NOTHING YOU CARE ABOUT WILL BE PRESERVED IF AMERICA DOESNT MAINTAIN A CLEAR WHITE MAJORITY
THINK ABOUT THIS
Eisen, newsflash for you: we’re not morons so go look elsewhere.
Today’s debt clock:
http://www.usdebtclock .org/
$20 Trillion coming closer…
As long as I owe you, you’ll never be broke. hehe
Okay Bill, let’s go on with your ‘fam’ game/analogy. We, the ‘fam’ put a buck in the bank. Mind not that that same ‘buck’ has no real value other than our faith in what it represents…. for Joe, supplies for his pizza joint, for Sally’s a sale to Joe for those same supplies; and of course, interest on the loan to Joe to be paid back to the bank that loaned out the ‘fam’s’ fiat dollar. And to follow, the interest that same bank has agreed to the ‘fam’ for our belief in the bank – a thing that used to be called ‘trust’. As in “Bank & Trust”. A minor problem arises. The ‘fam’ beyond that same ‘trust’ has no say in how the money is to be loaned out – to whom, for what purpose, for what duration. That is all dictated on the premise that the bank supposedly knows what the hell it is doing. Beyond self-enrichment for in reality having nothing more than a secure lock-box/vault to store the ‘fam’s’ buck in. Stick with me here.
The obvious solution would be to eliminate the bank entirely. For the ‘fam’ to lend Joe the dollar on its own terms that the ‘fam’ and Joe worked out. Meaning Sally’s would get the buck at the transaction’s completion for the purchase of those supplies and Joe would have to be successful in order to pay back the ‘fam’. Right? The ‘trust’ in this case would be a personal one between the ‘fam’ and Joe. Should Joe fail, the ‘fam’ likewise would fail. All harm would be limited to Joe being once more looking for work of some sort and the ‘fam’ having lost a buck on the gamble on Joe’s idea of starting a pizza joint. The spread of the loss would therefore be limited to just those 2 entities.
In short, the whole bank scheme is one big-ass scam from the git-go. All based on a trust in the strength and security of the lock-box or vault the banker possesses. What people need to realize is that any time they abrogate responsibility to any other for security they lose it. So? Want to change the game? Easy. Get rid of the banks, bankers who neither have a buck to lend of their own or the skill to make pizza; or, the supplies to build the restaurant. They are simply middle-man parasites of no real worth. And that as Paul Harvey used to say, “is the rest of the story”.
sounds like we have to put the gubmint in charge of the bankers.
Nah, they’ll just raise the debt ceiling as before and we’ll go around the ring of chairs until the next election.
Oops, it was “Gas, Grass or Ass Nobody Rides For Free” bumper stickers…
http://www.tunerstickers.com/shop/gas-grass-or-ass-nobody-rides-for-free/
Miners used nitro glycerine. During the gold rush if you took the risk, you were paid handsomely. I think I read somewhere that Kennedy did this job. I guess that was before bootlegging.
__
There’s a ton of ways to kick the economic can down the road still (not an excuse to cease preparations, but don’t take the article as a means to quit your job and jump off-grid just yet, eh?) It’s a feature of fiat currency, so long as everyone still has faith in the stuff, and it looks like nearly everyone out there in normality-land still do.
Now, if you really want to see signs of nasty stuff on the horizon, get an eyeball full of this: http://www.nationalreview.com/article/445596/californias-ineffective-government-progressive-ideals-conflict-reality
…it describes how the basics are being ignored by public officials, and are being ignored at the peril of, well, everyone.
Mind, the author is railing against the left side of the ideological spectrum, but look elsewhere to other states, and you’ll see the same ‘ignore-the-pothole-for-the-pretty-clouds’ syndrome going on in not-so-left-leaning states as well. It’s a neat little shell game of sorts: distract people by arguing about how we’re going to polish the apple’s skin, while ignoring the increasing and exponential rot within it.
Now once *that* gets too nasty to handle, *then* start putting your plans in motion, campers…
OQ, we here all know its just green paper but the Masses still haven’t awaken from their slumber. Besides paper currency is becoming antiquated so they keep harping about. Once the paper is gone they’ll tighten the screws even more.
That’s the thing… the masses love the stuff, and continue to happily accept it. I don’t see that changing anytime soon, barring some massive crisis.
DUMB masses…..they’re DUMB masses…..there, i fixed it for yuh.
OQ, LONG time no hear from! How’ve you been?
Getting into the homesteading swing these days. 🙂
I mostly watch, because I discover that the more I learn about living full-time out in the sticks, the less I know about it. 🙂
Wolf!, Wolf!, Wolf!, Wolf!
I’ve been hearing this imminent economic collapse and chaos stuff for so long I no longer believe it.
There are all kinds of things that can be done to stave it off and the PTB is more than willing to do them to further their global control agenda without generating too much opposition that would slow them down.
Hard periods like we’ve seen happen over the decades yes, total collapse no.
Anonymous, good points. Tyler Durden must be related to Michael Snyder, LOL!
We never had this much debt in the past either. 200 trillion in unfunded liabilities.
Can you say B R O K E ? Or lets simplify, we would have to come up with 200 trillion
just to say we are broke. Yeah, I’ll sell you some wolf tickets.
You don’t believe it because you never lived thru it. You have the luxury of ignorance, given your birth date in the cycle, which is bliss until it isn’t. Read the Fourth Turning. History has a way of repeating itself and our turn will be no exception. Or don’t read it. Either you’ll be prepared or you won’t. If you are, perhaps we will help each other start the next cycle (apparently “survival of the fittest” is a real thing in nature). If you aren’t, it won’t matter, you’ll be dead like everyone else in the last cycle that ignored the warning signs and the patterns of history driven by human nature.
Exactly
A wise man once said that you can’t erase the laws of economics. So yes, some day this bomb will explode.
OFF TOPIC
My Pastor, who also is a Prepper, sent me an article from the official Southern Baptist Press about a SBC church in Texas that holds a Prepper Expo every year.
Just another sign of the times.
One commentator noted that “we are all hedge fund managers now.” That about sums it up, doesn’t it. Or maybe slot machine players.
You see, when ethics and morals go out the window, we live as animals. If there is no god, EVERYTHING is permissible Dostoyevski wrote. And this then streams down to finances. Rather than working a decent full day for a decent wage and saving at a decent interest rate for a decent future, all that is gone by the wayside in the mad rush to gain mammon in a godless world at whatever cost, thinking that whoever dies with the most toys wins.
Truth be told, there IS a Hell, and that Hell actually starts while yet on Earth, and then continues afterwards.
Debt bomb ready to explode?!Hmmmm….,so are millions of citizens who have had it with govt./private banking cartels funded by us ect.,so,go ahead,I dare ya’s,push the button!
Joe borrows the buck and pays for flour, pepperoni and a pizza oven from Sally’s Pizza Supplies, who then deposits it back in the same bank in their checking account. Your one and only buck has now turned into two.
HOW????WHEN THE ONLY DOLLAR AT THE BANK THAT WAS THERE WAS LOANED TO JOE?? NOW, IF THE CREDIT WAS ISSUED AND THE BANK KEPT THE DOLLAR, THEN IT MAKES SENSE.
Sweet baby Jesus you sound like my wife…..HELLLLLP!
And JayJay the same thing is being done with GOLD.
Enjoy life you never know when its going to be over……….
Yup one of my competitors was diagnosed this past December with cancer. Was taking chemo this past Sunday and had a heart attack right there at the hospital and passed. Was only 53. Good Guy.
One of the reasons I did not do chemo when I was diagnosed with Stage 3B colon cancer.
After a colon resection the Oncologist said I had a 40-60% chance that the cancer would not recur if I did absolutely nothing at all. But he thought I should do chemo. I asked him how much that would improve my odds and he said 70%…..maybe. I then asked how much chemo and he said 3 courses…12 sessions per course. I did the math and estimated that I would be doing chemo about a year IF it didn’t kill me first.
I elected not to do it. I’ve pursued other alternative means. To date….I am cancer free. I’m a year and half post initial surgery, so the jury is still out. But so far, so good.
Also…I’ve had two surgeries since the initial surgery. One to reconstruct my insides and the other was to have a kidney removed that was discovered to be swollen three times normal size (docs think it was a genetic condition I’ve had all my life). That is why I say I’d probably be dead had I done chemo. It would likely have destroyed my other healthy kidney. At the very least I’d probably be on dialysis. And that’s no life at all.
I’m doing great. I feel 100%…in many ways…better than before the first surgery. I do anything I want to do.
But regardless. I will not…under any conditions….do chemo. Even if the cancer comes back. I’ll double down on my regimen…or seek other alternatives. But chemo will not be one of them.
Others may disagree and that’s your right. But I’d rather have a good quality of life for a short time than to have a longer life and be sick all the time.
But that’s just me.
So, I’m not sure of the math, but chemo would have just given you an extra 15 to 25% chance of the cancer not coming back according to them. But I am sure of the costs. I don’t have the problems that you do, and I hope you do well. Just saying about the odds that doctors give you. My doctor wanted me to take the shingles vaccine. Simple enough, but I think dangerous enough too. I said what are the chances that it will prevent it. The answer was 50%. I said at fifty percent odds I might as well not take it at all. What’s the point? I got that look back as when a dog hears a funny sound.
My doctor took an early retirement. It could have been that I lowered my cholesterol 33% to 180 by doing everything that the doctor was taught not to tell patients to do. I quit the drugs I was initially prescribed too. I also gave the doc a lot of other things to read. They have been lied to too. She will still have an income from being with the other doc she is with. The one who majors in Medicare instead of medical and sees nothing wrong with that.
Anonymous5, glad to hear you survived cancer. I believe you did exactly right to avoid the chemo. After my mother was diagnosed with breast cancer, she underwent a lot of chemo sessions. In my view chemo is absolutely useless. I’m in good shape myself, but if I ever get diagnosed with anything I’ll just take my chances with it. I also believe in having the best quality of life possible for as long as possible.
I actually had a doctor refer me to a book (that I never got around to reading) written by another doctor who cited numerous cases of people being diagnosed with cancer, who simply told their doctors, “thanks for the information” and then went on with their lives. Some of them lived for years after the diagnosis.
The thing I’ve noticed over the years, is that just about anyone I’ve come across who has come down with cancer and does chemo ends up dead anyway. In many cases, it wasn’t the cancer that killed them, but either some kind of infection due to their destroyed immune system…or some other type of organ failure due to the devastating effects of the chemo.
Yeah, right was talking about the increased chances as a result of doing chemo. I think the percentages he gave were pretty much in line with what the oncologist told me. (40-60% chance of no recurrence if I did nothing at all. Up to 70% chance of no recurrence if I did chemo…..maybe….) So I figured a best case would be 30% better odds….and it might be as little as a 10% increase in the odds. That just didn’t add up to my way of thinking….especially with the increased risks of dying as result of the adverse side effects of the chemo itself.
I would also add that the darkest times that I faced during this whole ordeal was right after the Oncologist told me that he thought I should do chemo and I was actually considering it. I felt like a victim……powerless. Then I got on my laptop and started doing some of my own research on line and decided that I would go the alternative route. Immediately, my whole attitude changed and I felt empowered.
Also….right about that time I was watching some videos on youtube and came across the video personal survival story of Navy Seal Marcus Luttrell. One of the things that stuck with me was his statement, “You are never out of the fight”. I knew I was going to have a battle to fight, and I told myself if somebody like Marcus Luttrell can go through what he did and not give up, I wasn’t going to either. Heck…compared to what he and his fellow Seals had to endure…..I don’t have any problems at all. His story was such a lift and encouragement to me that I have just never looked back. I have no regrets. I don’t consider it to be “unfair” that I got cancer. It’s just something that happened. Happens to other people all the time too. I’m no better or any more deserving than they are. And I just determined that win or lose, I was going to fight this thing my way and on my terms.
I’m grateful every day that I’m still alive. And if the cancer comes back tomorrow, I still have no regrets over the decision I’ve made regarding the course I’ve chosen.
Off Topic:
I noticed a sign. It says “WARNING” in three languages. I couldn’t help but notice how similar “AvERTTISEMENT” is to the word
“ADVERTISEMENT”.
Just a warning…
__
Don’t ever be fooled that a total economic collapse can’t happen. There were plenty of folks in 1929 that believed that very same thing. Going forward, there were plenty of economic pundits and regular folks that said the price of homes can never go down. Fluctuate, yes. Collapse, No. Ah, but the stock market did crash and ushered in the great depression of the 30’s…and the housing market did collapse in 08, ushering in massive foreclosures and subsequent bailouts of our largest financial institutions.
We are on the verge of a complete world wide financial collapse and depression. Anyone with 1/2 a brain can see it, feel it, smell it, taste it. No one can predict the swan event that triggers the meltdown (and there are many)….or know the day, month or year it all goes down, or know how horrible it will be. But as the bible says, you shall know the day is near by the birth pangs…and know one will know the hour but God almighty. It’s coming. And remember, the Americans that lived thru the great depression were a completely different lot than todays slugs. People back then were mostly self-sufficient, independent, moral and lived in rural communities. Just try to imagine what a collapse would look like in todays world. Prepare mentally, physically, and financially. The time I fear is short.!!!
Bailouts of the big banks also meant the big banksters would continue getting paid. The fing snakes in suits popped champagne bottles while some lost their jobs and homes.
We got thru WW2 growing our own food. Jim Willie says, the US now imports about 50% of
its food. If that is true, it makes me wonder what happened. We used to be the breadbasket
of the world. Hard to believe that Costa Rica has food independence and the mighty USA
does not. We also got thru WW2 without importing oil. As a nation, we were much more
self sufficient back then. Granted, we did not have over 300 million people back then.
If you notice, when we shifted from producers to consumers, thats when it started falling
apart. Plus, they starting pushing debt on us like it was a drug. Finance everything. Our
grandfathers knew how to sit tight and save. Now its all instant gratification. Finance.
Finance. Finance. It’s like the Amish say, we are paying for a dead horse.
EVERYONE was a prepper in the 20’s….all the way up to the 80’s….it’s only the last two to three generations that have decided they don’t have to save anything for a rainy day…..in the history of the WORLD, only the last few generations weren’t preppers.
Bottom line with the greenback having NOTHING to back it, this is ALL a SCAM and has been for many years!!government sold us out long ago.
That’s a fact a54. Hardscrabble is coming.
we had a good run though, didn’t we.
“Money for nothing and get your chicks for free.”
Debts from money backed by thin air commands physical slavery as payment.
Hint, hint, wink, wink: You might want to point a gun when you try to ‘explain’ how that works to the young ones whom can’t look up from their cell phones for even 30 seconds.
I’m really curious if these sorry ass’d FluorLithMerk drugged up drones, with SNAP cards fused to their fingertips, will even have an inkling, much less the energy, to run about waving their arms when the collapse happens.
Expect massive cuds chews and overweight black women shouting “Do yous all job!” Until some “paid” intervention actors come onto the scene and take them by the hand: “Look! Stupid! The script says your supposed to panic, hurt people and destroy shit!”
Of course, I think the sorriest sight will be entire neighborhoods in lockdown, with useless idiots inside, staring out the windows, waiting for their turn to be ransacked and man handled by the blue helmets.
C’mon. We’ve had over a decade of this BS. Yes. Something will happen, eventually. I guess. Maybe. Hmmm. No?
“Nuts!” Shrugs shoulders, turns round and goes home. Gun dragging behind.
You lost me with the blue helmets. Sorry, can’t see that happening. Not here anyways.
President Trump needs to do an unannounced drop by visit to Fort Knox and the Mints. Show me the gold. Since the gold is not being used to back the currency it should be returned to it’s rightful owners the citizens.
ummmm, yer SOUNDIN’ like a dim-o-crat.
A balloon mortgage during rising interest rates is financial suicide. A balloon mortgage being one that for a discount up front, the bank gets to raise the interest rate later during the life of the mortgage. As the name implies your monthly payment balloon. ⬆️?⬆️?⬆️?
Most of the US debt is short term instruments, six month to five year bonds. There’s always trillion$ in these bonds maturing that the government can’t pay back, so they just roll over at the current interest rate. Essentially, the 20 trillion dollar US debt is a balloon mortgage, except with nothing backing it except the promise of American slaves having to work it off.
Incredible that for the eight year Obama Keynesian Globalist experiment, the Fed could only raise interest rates twice a 1/4% at a time for a grand total of 1/2%. Now with Trump elected and a return to supply side economics, the Fed just said they think they will start raising interest rates a 1/2% at a time and that we should expect four this year alone, for a total of two percent. It’s clear this was unexpected and will shock the currently unbelieving markets. America’s mortgage is about to balloon, and it will be payed for by the slave class.
Let the beating begin.
Ah, another TD article about how the debt is unsustainable. What’s this, about the 1000th article like this in the last 6 years? At least.
Yes, the debt is sustainable because ‘they’ control the f’ing 1’s and 0’s idiots. If you control the game, make the rules as needed, break them without consequence and then change the rules to suit your whim’s how can you fail?
I have no idea what is going to happen tomorrow or 5 years from now (queue another $5K gold article) but I believe that when, or more likely IF, the system comes to a screeching halt billions of peeps worldwide will be PHUCKED beyond belief (this is how wars start).
I stack (meager as it is, I still stack) and I do my best to prep with all the crap in my life going on. Will my family make it? No idea, but we’ll go down fighting, that’s for sure.
Trump is a bump in the road, ultimately he can only stay in for 8 years max and then the US will again stupidly bring in another ultra leftist and Zero will look great.
Prep? Sure. Pray? Why not. Stack? Sure. But in the end you have no real control over what is going to happen. Even you mortgage free types, what happens if your taxes go to $20K a year? Yup.
Really, ,I totally agree,don’t comment much,just a old redneck,,2007 saw the bust coming.said
Tptb needed to let the market correct it’s self.I prep but it doesn’t control my life.Oh it’s coming
No Doubt! When who knows! I just want my family to come out on the other side,me, I, will be ok
People around here don’t know what I used to be! I think tptb will crash it! Hold on gonna be a
Bumpy ride
Be well all!
Maniac out !
Odious debts can be renounced, and stakeholders put on trial.
I believe the whole idea of fractional reserve banking has been shown to be wrong.
The commercial banks DON’T lend out deposits as loans. The money is created at the time of the loan from thin air. That is why they could not care less about deposits or paying you to save at their bank.
The granddaddy of central banks, the Bank of England, released a working paper in 2014 that laid the whole money creation thing out. It’s called Modern Monetary Theory.
In today’s system of money, the money supply (loans) must constantly be increased to pay the compound usury that is attached to each and every loan. Reserves are held ONLY for day to day cash transactions.
Constitutional money could be created by the government instead of private banks and lent out interest-free… but this would eliminate the parasitical middleman and leave nothing for the kayak bankers to do but get a real goods producing job.
Actually, when you deposit your dollar, the bank is allowed, by fractional reserve banking, to lend out 10 dollars.
YUP!
Watch this movie, it’s great. When the French knew how to make movies. No chicks, only trucks, men, sun and sweat.
May 12, 2016 Dear Homeowner: If You’re Paying $260,000 in Property Taxes Over 20 Years, What Exactly Do You “Own”?
If we understand property taxes as a “lease from the local government for the right to gamble on another housing bubble arising,” we see “ownership” in a different light. We’re constantly told ours is an ownership society in which owning a home is the foundation of household wealth.
http://charleshughsmith.blogspot.com/2016/05/dear-homeowner-if-youre-paying-260000.html