pkscottx

Inflation Could Cure Our Economic Ills

Wow! Inflate our way out of this crisis, yeah, that's the answer.

It worked so well for Zimbabwe we should try it here.

Everybody, google "Derivatives" right now.

It is the derivatives that have the Big Boyz soiling themselves.

There are a few things you need to understand. They have ZERO underlying real assets. They have a notional "value" of HUNDREDS OF TRILLIONS OF DOLLARS or more than the annual GDP of the entire freaking planet. They had absolutely NO regulation and are transparent as MUD.

Nobody knows how much or who holds the liability. This is the "counter party risk" every one keeps yacking about. ALL the financial institutions have a mountain of this toxic crap swept under the carpet. This is what has them hoarding cash and eying each other with mistrust.

The harsh reality is this: Either the institutions and investors who took the risk go bankrupt or the whole world does.

Lest you think I exagerate, think Iceland or ponder the fact that some European governments have guaranteed bank deposits that in some cases exceed three times their annual GDP.

The $700 billion bailout is essentially an attempt to bail out the ocean with a soup spoon.