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To: blam
a gigantic debt bubble has fueled a tremendous amount of "fake prosperity" in the western world. But for a debt bubble to keep going, the total amount of debt has to keep expanding at an ever increasing pace

Debt, in a variety of forms, has been used as money (or, more accurately, as a money substitute) since 1913. There has been no real money in the world for 40 years. The "bubble" merely defines the expansile nature of debt without repayment.

Fiscal policy and monetary policy are merely tools, like a hammer.

If I give you rubber nails and tell you to build a house, how heavy your hammer is, what shape it is, how long the handle is, will be of no consequence.

That's the situation we are in. All the policymakers have to work with are rubber nails.

It's amazing that this "system" has lasted as long as it has, but there was a lot of power and wealth in the West to be consumed.

The jig is up.

32 posted on 08/31/2011 3:53:00 AM PDT by Jim Noble (To live peacefully with credit-based consumption and fiat money, men would have to be angels.)
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To: Jim Noble
The jig is up.

From an old book that explains old sayings called "Loose Cannons and Red Herrings:

The Jig is up: The jig was originally a lively dance then a satirical, even scurrilous ballad, and eventually a practical joke or swindle. If the joker or swindler was exposed, the jig was up for them.

34 posted on 08/31/2011 4:46:44 AM PDT by mc5cents
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