March 23, 2010
Credit agencies and credible voices are warning of the unsustainability of entitlement spending and growth of GDP to debt in developed countries. We need to remember how the structure of our economic system works.
1. All money is loaned into existence.
2. All currencies have been created by these loans.
3. All loans (debts) are greater than each country's GDP – by
Hundreds of a percent.
4. All economies are based on economic growth.
5. Perpetual growth is a requirement of our economic system. The equivalent of the air we breathe.
6. Without growth (weakness begets weakness) you cannot borrow money, and banks will not lend money.
7. Without growth, nations become insolvent on their way to bankruptcy, at minimum a massive fiscal crisis.
8. Falling currencies are a cross-border event.
9. World markets have a 90% correlation.
10 The future could change suddenly and rapidly.
*Acknowledgment to Chris Martenson
>Growth is so much a part of our economic structure that economists have only one word for lack of growth, "negative growth".
>The various dialects in India have 75 words representing love, Eskimos have 27 words representing snow…
>Can we even imagine a world of no or flat growth even for a short period of time; because it has happened before.