Friday, April 26, 2013

Friday beaver and economic growth

It's interesting how one country can view a .03% growth rate as a positive sign of a nations' economic well being. Then there are the real numbers that always seem to disappoint. We are at a very odd juncture when it comes to financial conditions. We saw the entire financial system freeze up in 08 only to be bailed out with a massive  influx of cash courtesy of the American taxpayer. Did any of this money go for benefit to those who gave it? Of course not, it went to the gamblers who had just lost their shirts betting that some poor sucker in another country would buy their worthless hand. And they did but just like a back room game complete with markers people soon ran out of chips and nobody could cover their markers. Then it became a new game of selling markers and betting against those who ever body knew couldn't pay up.

It's become a new definition of insanity when one country who's in debt thinks it can loan money to another country who has a bigger debt knowing full well that that debt can never be paid back. And now we have the economic gurus telling us that every thing's just fine so keep playing because we have the cops paid off.

There's only one solution to this Alice in Wonderland card game where rational thought has been cast out the window and that would be to void most of the debt and start over. Too simple a solution you say? But it is the only solution. Because if this game of trading debt goes on for much longer the system will freeze up once more. They can pump all the imaginary money into this game they want but if nobody can anti up then it's game over. All the watches rings and titles to the cars have been put into the pot and all the players went bust.

Japan is deflating like an old balloon but if something isn't done to actually get people working then all the yen in the world isn't going to fix it. And the boys in the back room must have had too much sake when they're predicting a 2.9% growth rate for Japan. A system based solely on consumerism can't stand when nobody's spending. And selling more worthless paper won't get you anywhere either. Cutting taxes to near zero isn't going to get things moving as well. Time to clean the slate and start over.

Bank fails later.
UPDATE: Two banks failed this week one in NC and one in GA.


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The Blog Fodder said...

Banks should only be allowed to take deposits and loan money. all this other stuff is just cover for theft.