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"Creditism",,, 2% of how much?
The conditions and inputs are changing wildly and it is getting harder and harder for me to try to correlate what they mean. Friedrich Hegel wanted all of us to work for, and be controlled by the State. .
J.M. Keynes advocated the death of the rentier Nobody would loan money at interest. A pure democracy is Socialism lite because politicians must listen to every person who whines for some kind of freebee. It eventually morphs into straight socialism and has always broken the bank. Is it different this time?
Socialism always runs out of other people's money. Is it possible to avoid this grand finale? LBJ wanted his Great Society programs to lift the poor up out of the metaphoric dirt. How did he plane to pay for all this?
,,,,,"is 1968, when President Johnson asked Congress to pass a law that the Fed would no longer have to maintain any gold backing for the dollar. Up until then at that stage, the Fed had to maintain 25% gold backing for every dollar that it issued. Congress did change the law. Afterwards, the Fed was free to print as many dollars as it wanted without any gold backing whatsoever."
FDR had repriced gold so that he could print more dollars, within the gold backing requirement. Neither LBJ not Nixon repriced the gold.
The FED balance sheet is supposed to be $ 4.5 trillion and we can never pay it back. Did GOV/Treasury ever have any intention of paying it back?
" Since around 1950, any time that U.S. credit growth, adjusted for inflation, grows by less than 2%, the U.S. has gone into recession. I refer to that 2% figure as the recession threshold.
"Brian Maher: If you say the U.S. requires 2% credit growth just to avoid recession, thats a lot of credit were talking about. You can grow credit 2% fairly easily when an economys starting from a low debt level, even though it might be artificial. But total levels of government, business and personal debt in this country today exceed $60 trillion. To keep generating 2% credit growth on a consistent basis with that amount of existing debt, the amount of new debt required to keep the ball rolling soon becomes astronomical.
Richard Duncan: Thats right. The total credit in the U.S. first went through $1 trillion in 1964. By 2007, it had expanded 50 times, to $50 trillion. In 2008, Americans had so much debt and their income had been stagnant for so long because of globalization, they just couldnt repay it."
"Since that time, government debt has increased by $9 trillion. Almost all of the increase and debt on a net basis has been an increase in U.S. government debt. And total U.S. debt now is up to about $63 trillion.
And yes, that $63 trillion base is so enormous that its very hard to grow credit 2% a year, adjusted for inflation. And since credit needs to grow at least 2% to avoid recession, as has been the case since around 1950, Im not optimistic at all. "
“Creditism” and the Death of Capitalism, Part I - The Daily Reckoning
The conditions and inputs are changing wildly and it is getting harder and harder for me to try to correlate what they mean. Friedrich Hegel wanted all of us to work for, and be controlled by the State. .
J.M. Keynes advocated the death of the rentier Nobody would loan money at interest. A pure democracy is Socialism lite because politicians must listen to every person who whines for some kind of freebee. It eventually morphs into straight socialism and has always broken the bank. Is it different this time?
Socialism always runs out of other people's money. Is it possible to avoid this grand finale? LBJ wanted his Great Society programs to lift the poor up out of the metaphoric dirt. How did he plane to pay for all this?
,,,,,"is 1968, when President Johnson asked Congress to pass a law that the Fed would no longer have to maintain any gold backing for the dollar. Up until then at that stage, the Fed had to maintain 25% gold backing for every dollar that it issued. Congress did change the law. Afterwards, the Fed was free to print as many dollars as it wanted without any gold backing whatsoever."
FDR had repriced gold so that he could print more dollars, within the gold backing requirement. Neither LBJ not Nixon repriced the gold.
The FED balance sheet is supposed to be $ 4.5 trillion and we can never pay it back. Did GOV/Treasury ever have any intention of paying it back?
" Since around 1950, any time that U.S. credit growth, adjusted for inflation, grows by less than 2%, the U.S. has gone into recession. I refer to that 2% figure as the recession threshold.
"Brian Maher: If you say the U.S. requires 2% credit growth just to avoid recession, thats a lot of credit were talking about. You can grow credit 2% fairly easily when an economys starting from a low debt level, even though it might be artificial. But total levels of government, business and personal debt in this country today exceed $60 trillion. To keep generating 2% credit growth on a consistent basis with that amount of existing debt, the amount of new debt required to keep the ball rolling soon becomes astronomical.
Richard Duncan: Thats right. The total credit in the U.S. first went through $1 trillion in 1964. By 2007, it had expanded 50 times, to $50 trillion. In 2008, Americans had so much debt and their income had been stagnant for so long because of globalization, they just couldnt repay it."
"Since that time, government debt has increased by $9 trillion. Almost all of the increase and debt on a net basis has been an increase in U.S. government debt. And total U.S. debt now is up to about $63 trillion.
And yes, that $63 trillion base is so enormous that its very hard to grow credit 2% a year, adjusted for inflation. And since credit needs to grow at least 2% to avoid recession, as has been the case since around 1950, Im not optimistic at all. "
“Creditism” and the Death of Capitalism, Part I - The Daily Reckoning
These are the future revolutionaries that will destroy Europe and make it resemble their $hithole home countries. 
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