The Economics of Debt, Deterioration, Deflation, Depression, and Disorder, by Robert Gore | STRAIGHT LINE LOGIC
Governments and central banks around the world have stretched ultra-low—or in some cases negative—interest rates, sovereign debt, debt monetization, and the promotion of consumption and speculative bubbles to historic extremes (see “A Skyscraper of Cards,” 10/19/14). Metaphysically, just stating the idea that value and real economic growth can be created by governments borrowing money, creating money, and using that created money to buy their own debt casts heavy suspicion on the whole enterprise. It sounds like magic, and it is. Reality confirms the skeptics. While these policies can produce short-term increases in growth and goose financial markets, in the long run those effects are reversed and the net effect is contractive rather than expansionary.
My only hope is that these international bankers reap what they have sowed - absolutely nothing.
Yes! All the value comes from serving one another in mutually-agreed trades.
Don't worry about pepole who are trying to create value through trickery. The real value comes from people serving one another for money or trade.
Jan
Well said! I think it's a combination of both. Saving money, paying off debt, working two jobs, buying on cash only, delaying self-gratification...those things are all hard. Like dieting, it is no fun to deny yourself, especially when everyone around you has the things you want. So I think most people tell themselves that it won't happen again, that the economy is better (gas prices are lower!). They truly trick themselves into believing what they want to be true (so they can have their cake and eat it, too), although if they were honest with themselves they know they are setting themselves up for future disaster. But cross that bridge when we get to it, right? Who know how the government will have decided to bails us out by then? Why worry about something now that the government will fix later? Unfortunately, that's the rationale for a lot of people.
The changing labor market is due to automation. That will continue to shake things up in the world. People don't need as many people to help them run a factory, but they do need help in hospitality, medical care, fast food. Watch for fast food to be automated too. It used to be there was value in assembling an electronic gadget. Now that's commoditized. There's not even as much value in designing the guts. The value is the cool industrial design. That's what the labor market is demanding in the world. It's always changing.
Eric Bolling said something about the USA being in such debt is dangerous to liberal Bob Beckel in his trademark suspenders. Beckel just calmly shrugged and resounded with some deflective there's nothing to worry about remark.
I saw this like a year ago and do not remember the exact words used, but I still think of it as an Alfred E. Neuman "What, me worry?" moment.
http://www.usdebtclock.org/
A medium of exchange and store of value are completely different things. If I only have electronic circuit boards to offer, but I want groceries, transportation, heat, clothes, etc, I need money or some medium of exchange. If I'm planning for paying for my kids' college or the medical bills resulting from all the Taco Bell, Scotch and aging (I hope we cure it eventually.), that's a completely different thing.