How to Create the Impossible Debt that is Swallowing the World (4 min.)
• UPDATE May 27, 2013 • What the Heck is a Bailout? (9 min.)
Money as Debt & Money as Debt II - Promises Unleashed • Money as Debt III - Evolution Beyond Money
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Where does money come from? / The Banking System, Itself, is the ROOT CAUSE of Money System Instability Twice Lent Money, the overlooked "elephant in the room / "Money and Politics: Incorrect Diagnosis, Wrong Cure" paper published by the World Economics Association: " Proposed new metric: The Perpetual Debt Level"
"Twice-Lent Money" An Analysis of the Root Instability of Our Money System
Today, most money is created as debt on a schedule by a borrower borrowing it into existence from a bank or other depository institution. This money is spent and circulated until someone puts it aside as savings or lends it a second time as existing money. Either way, as long as the money remains saved or lent, the money originally created as a loan from the bank is not available to the borrower that created it, except as another loan. The original money creation loan will be have to be paid off with the Principal of some other loan, making repayment of that loan dependent on another loan's Principal and so on, ad infinitum. Savings create an ongoing volume of Perpetual Debt for as long as the volume of savings remains unavailable to be earned on time by the borrowers that created it.
Animated Video: How to Create the Impossible Debt that is Swallowing the World ( 4 min.)
The amount of the Perpetual Debt can neither shrink nor slow down in its delivery without causing mathematically inevitable defaults. Therefore new borrowing from banks must never decrease or slow down. Otherwise people will lose their homes because of a mathematical shortage of Principal.
Our money system is only functional when it is growing. It cannot handle shrinkage, or "de-growth" as some call it, without defaults. That makes it ill-suited even for normal economic mood swings which should be expected to be cyclical simply because everything in the Universe is cyclical.
The question always asked by politicians and economists is "What causes the business cycle?" as if it should be prevented. I say it's the wrong question. Accept the Business Cycle as natural and adapt to it.
The question to ask is: Why does inevitable cyclical economic shrinkage wreak so much harm? Is it because we have a money system that defies the Universal Laws of Nature?
A money system dependent on never ending growth is absolutely suicidal in a world already in ecological overshoot.
ace comando: Well, it took me several days and a lot of code writing to sift through the millions of achieved pages on the Wayback Machine achieves. Was about to give up when a colleague gave me mining script to look at all archived pages whether displayed or not. And
Feb 24, 2017 19:44:10 GMT -6
unlawflcombatnt: I've now changed the colors on the board to something more readable. At least now readers can find the sign-in tab.
Jul 6, 2014 22:58:23 GMT -6
unlawflcombatnt: OldUser-the sign-in area is in the dark area immediately under the red section that says Economic Populist Forum. It's almost impossible to see, unless you know where to look. This was ProBoards idea, not mine.
Jun 12, 2014 11:52:53 GMT -6
OldUser: There's no link on here to sign on or login. Where'd it go?
May 29, 2014 8:44:44 GMT -6
jeffolie: One might short a bull ETF to gain the decay but this requires a margin position subject to changes imposed by the exchanges & brokers
Oct 26, 2013 13:26:07 GMT -6
jeffolie: Holding a stop loss in these algo dominated markets almost always means the algos will hit your stops
Oct 26, 2013 13:20:09 GMT -6
jeffolie: Even so, these leveraged ETFs do not create margin calls nor expiration dates thus allowing one to hold indefinitely
Oct 26, 2013 13:17:52 GMT -6
jeffolie: Yes, the ETF features fading/leveraged decay because the futures and/or options used decay plus the administrative costs rise the decay, declining value ... I accept this as a cost and feature of all ETFs that purchase futures/options to maintain price
Oct 26, 2013 13:15:38 GMT -6
mimzy: Sorry, here is the article http://blog.quantumfading.com/2009/06/01/leveraged-decay/ I don't post that often, sometimes computers get away from me b4 I can edit.
Oct 25, 2013 20:49:11 GMT -6
mimzy: jeffolie ~ I've been reading/lurking you for a year or three now and was wondering if your could you explain how you overcome quantum fading/leveraged decay in your ETF short position of the DJIA?
Oct 25, 2013 20:46:26 GMT -6