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The Real Bubble
Talk about not seeing the forest for the trees. We have experienced a bunch of bubbles, but what is always overlooked is the big picture bubble. We have been operating in GROWTH bubble for some 40+ years now. It’s quite simple – we create money by creating DEBT which is repayable with the original CAPITAL plus INTEREST. But how are we supposed to repay this ever increasing money supply when we always have to come up with more than the original amount loaned?
It’s simple when you look at an individual – you have to use the money to create additional value. Put another way, you have to grow the money. When one considers the national or even global perspective of this, it means overall GDP HAS TO GROW. Well it doesn’t take a genius to realize that nothing grows forever. At some point the growth stalls and down she comes. This is a big bubble. The endless creation of new debt has driven it to it’s limit. We just broached 7 billion people on the planet. You can only inflate a system so far before it pops, and we are in the beginning stages of the greatest pop in memory. If we had let the financial system implode in 2008, there would be tremendous worldwide pain, but perhaps we could have come through in one piece. But no, we propped it up and now have all but ensured that the collapse, when it comes, will be indeed be apocalyptic.
Whatever way it unfolds, one thing is clear – until we eliminate the debt based fiat currency monetary system, we will never be able to start rebuilding a truly sustainable economic system.
