St Peter: Of course..but can I borrow $2"
I wanted to take a moment to explain as clearly as possible why the world is in such trouble financially, and do so in a way that doesn't involve background knowledge in finance or many confusing statistics.
The world is economically in bad straits because we are all nations of borrowers. Every nation. No one has any surplus and yet, we are borrowing from each other. We borrow from banks too but that's a dupe. Most banks globally are zombie, meaning they're so much in the red that without money being poured into their coffers from nations, they couldn't survive. Funny isn't it.. nations give banks free money so they won't collapse, then borrow it back at interest or lend to other nations that can't ever repay even the interest.
And if not for all this and pretend currency created on paper and pretend monetary value placed upon it, the global financial community would have destroyed civilization 3 decades ago.
The reason I pinpoint it to the 1980s because most people do not realize this but in 1983, the Dow hit 1,000 for the first time. Wall St had been in existence since Revolutionary War days (1770s) and yet never reached 1000 until 1983. And what is it today? Just about 13,000. Each thousand represents $1 trillion dollars so in simple math, in a span of only 24 years, $12 trillion of pretend wealth was created.
Let's follow the sovereign economic food chain.. Greece needs money. So does the rest of the PIIGS nations. And Eastern Europe. So they borrow from the rest of the EU. Who puts up most of the funding to cover those losses? Germany. And what was Germany doing today?
Merkel Looking for Help During Visit to China (Spiegel) -- "German Chancellor Angela Merkel needs help... Germany wants China to make a concrete pledge to invest in the euro bailout fund"
So basically all of Europe are beggars in one form or another.
Now Greece gets its bailouts from a "troika"- the EU, the ECB and the IMF which is pretty much US run and financed though it always has a puppet European leader so it gives the appearance of being international. So 17.4% of all IMF loans and bailouts around the world come from US taxpayers.
And is the US a creditor nation? Goodness No! lol.. Not for many years.. We owe others more than $15 trillion dollars. And yet the US has the audacity and arrogance to lend to others as if we're in the black. And who do we owe money to? Many creditors but namely, the Chinese.
And how do the Chinese lend to everyone? They're really in an economic housing asset bubble, much like the US was prior to 2007. They had their citizenry build lots n' lots of homes, namely to keep the populace busy. Problem is, most of the populace can't afford to rent or buy the homes that were built, so they're empty.. just like in Nevada, Florida and Arizona.
Everyone owes everyone. This is why Investors are treated like royalty and national economic policies around the world cater to their needs; why Everyone tries to soothe the markets. The Rats are the only source of fresh money left in the big game of ponzi.
In a biblical sense, you could easy say the global economies survive by borrowing from "Peter" to pay "Paul" and no nation has the guts to dare call anyone out to repay their full tab. Banks and nations are all grateful simply if debtors can meet their monthly payments
And that's the sad state of the world no one talks about.
