GFC 2.0 ? or not?


Isn’t one of the key factors of having a debt based monitory system is that 100% of all of the money in the system is debt owed by someone to someone else and as interest is charged, infinite growth is hardcoded into the financial system as without it the whole show is derailed. Even if someone “helicopters” a few trillions into the system, that money will be created by borrowing it from someone.

The debt can only grow, it cannot shrink, it goes against the religious teachings of the FIAT economy.


Faith is about to be tested. Few are prepared.


The debt wasn’t exactly used to tool up factories etc it just blew bubbles. To scale such dizzying heights of debt to do that…


Ok but, who will “helicopter” the money in? The IMF?..who supplies their line of credit? Trade links are being tested…


Any central bank at the request of a government will create money out of thin air in exchange for collateral that the government will have to pay to get back with interest.


More great analysis, IMHO, on asset bubbles from Wolf Richter.