He's maneuvered them into high interest rates. They can't raise the interest rates even higher without massive blowback. Their primary lever of economic controll has already been exhausted.
If they raise interest rates much, Banks become insolvent due to all of their derivatives. They have already said they will do more quantitative easing/money printing instead. It doesn't make any sense to print more money with a strong economy.
True, but there is no debt as such, since there are no assets loaned. Fiat has no value, so if you have a loan for $1 million dollars, it's only a ledger entry, you actually haven't borrowed anything.
The people who lose are the ones that sold real goods or labor with fiat after the great unwind.
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18584591? ago
He's doing it
18584876? ago
He's maneuvered them into high interest rates. They can't raise the interest rates even higher without massive blowback. Their primary lever of economic controll has already been exhausted.
18587067? ago
If they raise interest rates much, Banks become insolvent due to all of their derivatives. They have already said they will do more quantitative easing/money printing instead. It doesn't make any sense to print more money with a strong economy.
18587286? ago
Correct. The great derivative unwind will be spectacular! It will happen one day. You can only kick the can so far.
18592273? ago
"Spectacular" when seen from the moon. Here on earth it will be like the Black Death.
US$250 trillion in debt today. For people around the world, that is their savings and their assets.
What is the result of people realizing that debt is worthless because it cannot be repaid?
As I said, this will best be observed from the moon.
18596381? ago
True, but there is no debt as such, since there are no assets loaned. Fiat has no value, so if you have a loan for $1 million dollars, it's only a ledger entry, you actually haven't borrowed anything.
The people who lose are the ones that sold real goods or labor with fiat after the great unwind.