The banks have a fiduciary responsibility to their share holders to maximize profits by creating credit bubbles.
that's the horrible news I have to report to you.
In essence All I'm hearing is about how the US government can't pay it's debts or won't because it's not politically expedient and will see them run out of washington to do what it would take.
The whole problem with that is that current consumer debt bubble and things like Klarna where it seems to be buy now default later is something the banks have to do for their shareholders and as it turns out most of the financial crisis's the world has ever gone through is because the Private sector as in BUSINESSES made too many bad loans.
this was the case in the great depression, and recession. and it's going to happen again because the banks have the ideology of a Cancer cell: infinite growth.
And eventually you just run out of Financially well adjusted individuals to lend money too so you start lending more and more money over time to "Sub prime" or Fiscally poorly adjusted individuals to gain returns because there's nowhere else to turn for growth.
and as these big stinky shitty loans pile up and grow and grow and grow at first it isn't a problem for the wider economy, but it grows into one eventually.
and when it blows up a Credit crunch happens afterwards because the banks get spooked the regulators get mad politicians fall under pressure to come after you and housing prices tumble 30 percent while stocks crash by 50 and everyone still needs dollars to pay off their debts but they can't borrow more to roll them over anymore so the value of the plain ole Fucking USD cold hard cash skyrockets.
So it's like, Yeah our federal government wants to try to inflate it's debt into Worthless monopoly money to get out of this mess.
but, The bankers are going to keep engineering situations where they over lend to bad borrowers, over and over, and that tends to make the dollar more valuable because every time there's a credit crunch it creates a liquidity crisis.
this is one of the problems inherent to shareholder capitalism it's a contradiction in our system that literally engineers a boom and bust cycle and woe pain and suffering. you might be interested to know 2007 was not the first time they made a bunch of shitty bad loans they did it in the 1980s too and then in the 1920s right up until the great depression and even in the 1800s! they keep doing it!
In essence All I'm hearing is about how the US government can't pay it's debts or won't because it's not politically expedient and will see them run out of washington to do what it would take.
The whole problem with that is that current consumer debt bubble and things like Klarna where it seems to be buy now default later is something the banks have to do for their shareholders and as it turns out most of the financial crisis's the world has ever gone through is because the Private sector as in BUSINESSES made too many bad loans.
this was the case in the great depression, and recession. and it's going to happen again because the banks have the ideology of a Cancer cell: infinite growth.
And eventually you just run out of Financially well adjusted individuals to lend money too so you start lending more and more money over time to "Sub prime" or Fiscally poorly adjusted individuals to gain returns because there's nowhere else to turn for growth.
and as these big stinky shitty loans pile up and grow and grow and grow at first it isn't a problem for the wider economy, but it grows into one eventually.
and when it blows up a Credit crunch happens afterwards because the banks get spooked the regulators get mad politicians fall under pressure to come after you and housing prices tumble 30 percent while stocks crash by 50 and everyone still needs dollars to pay off their debts but they can't borrow more to roll them over anymore so the value of the plain ole Fucking USD cold hard cash skyrockets.
So it's like, Yeah our federal government wants to try to inflate it's debt into Worthless monopoly money to get out of this mess.
but, The bankers are going to keep engineering situations where they over lend to bad borrowers, over and over, and that tends to make the dollar more valuable because every time there's a credit crunch it creates a liquidity crisis.
this is one of the problems inherent to shareholder capitalism it's a contradiction in our system that literally engineers a boom and bust cycle and woe pain and suffering. you might be interested to know 2007 was not the first time they made a bunch of shitty bad loans they did it in the 1980s too and then in the 1920s right up until the great depression and even in the 1800s! they keep doing it!
