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Stainless Sam

Debt - We're All Doomed, Even The Rich

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It's a bit long and you can safely ignore the advertising at the end, but this is worth a viewing. http://subscribe.mon...medium=referral

Britain has so much debt we're all doomed, even if living the high life as one of the 1%. Buy your canned goods, bottled water and internet antibiotics before the rush. And plenty of Solvite so that you can paper the walls with money.

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We will be doomed if foreign nations start dumping their foreign reserves, thus devaluing the dollar, pound and euro - but our foreign creditors don't want to devalue their competitors currencies just yes.

You can conclude interest rates will stay low for the next decade or two, with several bubbles between.

Sometime in the future when new technology allows (think computing, transistor, combustion engine), foreign creditors will want to devalue our currencies and then take advantage of our cheap labour.

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We will be doomed if foreign nations start dumping their foreign reserves, thus devaluing the dollar, pound and euro - but our foreign creditors don't want to devalue their competitors currencies just yes.

You can conclude interest rates will stay low for the next decade or two, with several bubbles between.

Sometime in the future when new technology allows (think computing, transistor, combustion engine), foreign creditors will want to devalue our currencies and then take advantage of our cheap labour.

They already exist so makes no difference who owns them. For every seller there's a buyer.

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It's a bit long and you can safely ignore the advertising at the end, but this is worth a viewing. http://subscribe.mon...medium=referral

Britain has so much debt we're all doomed, even if living the high life as one of the 1%. Buy your canned goods, bottled water and internet antibiotics before the rush. And plenty of Solvite so that you can paper the walls with money.

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It'll all be fine. People often forget that its human beings that make the rules and we just change them whenever we deem necessary.

Think of it this way, most people find a job without realising that "a job" is just work that someone else doesn't want to do - in fact they will pay you to do it. When you fit into a corporate structure the hierarchy is invented to give you some sense that you are moving forward in life e.g Gradings, Pay rises etc. None of it is real its just been created to keep you doing your job.

Taking this back to government, taxes, debt, economics etc. A system has been created and when the rules don't work anymore governments just change the rules, its as simple as that. Now, throughout history the side that loses when the rules change have two options - 1. Accept it 2. Fight back. If they fight back wars are usually started which creates years of stagnation for both sides so it really has to be worth it. In the age of the nuclear bomb, drones we'll never have another full blown war as we will destroy everything - instead we have proxy wars like Ukraine and Syria etc.

The bottom line is - scare stories only work when there are actual limits you cross e.g run out of air, food, water - debt is just an illusion that satisfies everyone. If Nixon can just "decide" to move off the gold standard and make gold sales illegal in the 70s then I'm sure our leaders can equally come up with something that just makes kicks their problems down the road. The road doesn't end.

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It'll all be fine. People often forget that its human beings that make the rules and we just change them whenever we deem necessary.

Think of it this way, most people find a job without realising that "a job" is just work that someone else doesn't want to do - in fact they will pay you to do it. When you fit into a corporate structure the hierarchy is invented to give you some sense that you are moving forward in life e.g Gradings, Pay rises etc. None of it is real its just been created to keep you doing your job.

Taking this back to government, taxes, debt, economics etc. A system has been created and when the rules don't work anymore governments just change the rules, its as simple as that. Now, throughout history the side that loses when the rules change have two options - 1. Accept it 2. Fight back. If they fight back wars are usually started which creates years of stagnation for both sides so it really has to be worth it. In the age of the nuclear bomb, drones we'll never have another full blown war as we will destroy everything - instead we have proxy wars like Ukraine and Syria etc.

The bottom line is - scare stories only work when there are actual limits you cross e.g run out of air, food, water - debt is just an illusion that satisfies everyone. If Nixon can just "decide" to move off the gold standard and make gold sales illegal in the 70s then I'm sure our leaders can equally come up with something that just makes kicks their problems down the road. The road doesn't end.

Great post and absolutely spot on.

Anyone who tries to play an end game with economics is already deluded, there is no longer an endgame.

In the past when a debtor nation like the USA ran out of money, it's creditors squeezed it and either war or an orderly transfer of balance of power occurred ( usually under the threat of war)

Now the USA can keep borrowing indefinitely until the powers that be in its creditor nations stop lending it. The creditors have the problem because forcing low wages on their people enables them to service the debtor nation and keeps them in power. If they stopped servicing the debtors they have two choices, they commit suicide because their control has gone ( it only existed whilst they had slaves to run up surpluses) or they try to call in their debts from a nation that can blow them out of the sky.

The external us deficit does not exist as it will either be serviced indefinitely or the debtor will refuse to pay .

Of course we could have stagnation and a refusal of the creditor to keep feeding the beast but to what end .? They would simply be accelerating the default and thus liquidation of their own assets for nothing

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The road doesn't end.

Correct. But fiat currencies do. All of them. 100% guaranteed.

Preparing for this is the correct way to proceed. Gold backed rubles are coming. Yuan reserve currency status is coming. The dollar is being rejected around the world as a medium of exchange.

Things do end. Nations can go through decades of torment. Britain is not guaranteed a rosy future. Just look in a history book if you want examples.

Edited by Errol

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It'll all be fine. People often forget that its human beings that make the rules and we just change them whenever we deem necessary.

Think of it this way, most people find a job without realising that "a job" is just work that someone else doesn't want to do - in fact they will pay you to do it. When you fit into a corporate structure the hierarchy is invented to give you some sense that you are moving forward in life e.g Gradings, Pay rises etc. None of it is real its just been created to keep you doing your job.

A job is just buy low sell high like anything else. Your boss is buying your labour low and re-selling it high.

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Correct. But fiat currencies do. All of them. 100% guaranteed.

Preparing for this is the correct way to proceed. Gold backed rubles are coming. Yuan reserve currency status is coming. The dollar is being rejected around the world as a medium of exchange.

Things do end. Nations can go through decades of torment. Britain is not guaranteed a rosy future. Just look in a history book if you want examples.

The dollar is backed by the US military which outspends every other military in the world combined and has bases in every corner of the earth. It really is an empire. As long as that keeps ticking over the dollar will be #1. The dollar is indeed a metal backed currency... lead, depleted uranium, plutonium.. :D Or another way to look at it is America actually does have a huge export economy, the "deep state" economy, the export being violence. And not necessarily overt violence like Iraq, but the stuff the CIA has been doing in the last few years Libya, Syria, etc. Lots of customers in the world.

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The dollar is backed by the US military which outspends every other military in the world combined and has bases in every corner of the earth. It really is an empire. As long as that keeps ticking over the dollar will be #1. The dollar is indeed a metal backed currency... lead, depleted uranium, plutonium.. :D Or another way to look at it is America actually does have a huge export economy, the "deep state" economy, the export being violence. And not necessarily overt violence like Iraq, but the stuff the CIA has been doing in the last few years Libya, Syria, etc. Lots of customers in the world.

The most sensible thing i have read in a long time. Simply put and accurate. We dont deserve the Planet. :(

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Correct. But fiat currencies do. All of them. 100% guaranteed.

True - they do end, and another one (Yuan or similar) picks up in its place. There are winners and losers. You have 78 years of live available. You spent at least the first 20 or 30 not knowing what was happening. Are you going to spent the next 48ish worrying or just doing what you want within the matrix that we live in? Life is too short to worry - just go for it.

Britain is not guaranteed a rosy future. Just look in a history book if you want examples.

True - Again you can only live within the rules set for you. If Britain loses everything...the world we know probably goes bye bye in more ways than one so you will have to reevaluate and reset your goals to the changing environment...what else can you do? You didn't cause a war you just might live through one.

But the supply of cheap fuel does. High oil prices are bad news for debtors and the debtors' debtors.

Agreed. But human beings tend to adapt. We will use less energy, create fracking, fusion, or something completely left field. Right now people can always generate electricity, we just need to find another way to package it and sell it to the massses. This might mean we have to leave energy for only the rich for a while but there you go what can you do about it.. At each point if these things happen, the world will still continue. If you want to worry about these things all the time be my guest but you are wasting away your life on worry when you should be building experiences, do what you really want to do; and (maybe) a family to give you perspective. Just my view - not judging.

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This might mean we have to leave energy for only the rich for a while

Yeah...and living.

Are you kidding? Fresh and waste water treatment, produce distribution, you know the list, ALL use huge amounts of energy. Even abattoirs use substantial amounts of machinery to throw the carcasses about.

It's not about going without iPads and YouTube for a while

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