"The real cause of economic depression is loose monetary policy: the creation of money and credit out of thin air and the monetization of government debt by a central bank."

Such statement can only come from someone who is clueless of the fact that the "ear marks" he enters into the annual budgets are the basis of: "the creation of money and credit out of thin air and the monetization of government debt by a central bank."

The Basel rules themselves only shift the bubble around from one favored (overvalued) asset class to another.

Bailouts work about as well as buying your spoiled child another car to replace the one just wrecked. How does an already broke parent afford this? by keeping up a standard of BS.

I'm responding to this response:
"Again, everything has a price, including money. There is no magic wand. Let the free market work. Why are you so distrusting of freedom? "

Yes, everything has a price. So in a free market for currencies, low priced units will have a very strong selling point.

Gold will be expensive.

Creating units in a mutual credit scheme will be very cheap.

The cheapest currency will prevail.

Or step the paradigm ladder one notch and find out what is actually the cancer. Your diet perhaps. Or allowing much too much stress in your life.

Same with our financial problems. As long as we continue to believe we need banks for a money supply, we can be led to believe it's reasonable to pump in trillion after trillion.

But of course: if a bank can create a money supply, everybody can. So if the bank is no longer capable, perhaps we should find someone who is.

This should not be too hard.

It's not so much the debt. It's the interest. If the Greeks stopped paying debtservice, they could pay of their 600 billion debt in just 20 years, purely from the money they are now losing to debt service.

Considering the fact that a large part of the money for the debt they incurred was created the moment they borrowed it, this no moot point.

Another pro of this approach is, that banks would not suffer from insolvency problems if the Greeks did this. Their profitability would suffer, their solvency would not.

I don't care about banker's profits. I don't care about their solvency either, but the negative implications of cold turkey insolvency are unacceptable.

The idea that the US must play a role in saving Europe's a-s?
Quite silly indeed.

Reply from The Daily Bell

Again, everything has a price, including money. There is no magic wand. Let the free market work. Why are you so distrusting of freedom?

The IMF announced earlier this year that they would be three times as much funds as they presently had to be able to meet their demands.

Dr Paul identifies another chapter is the long, long story of consolidation of power. That story says we must centralize our economy. Central national banks. A central global bank to backstop the global debt crisis. Power goes up and up, into fewer and fewer hands, until the whole thing collapses under its own weight.

The alternative? Reject centralization in every form. Reject all global forms of government: UN, IMF, World Bank. Reject all central national banks. Reject the monopoly control of money; demand free currencies based on silver and gold (possibly other commodities. Demand control of the taxes governments take by creating virtual cantons (Click to view link). Keep pushing for DEcentralization everywhere.

Faced with the choice between deflation and inflation, all countries have chosen Inflation... except Germany... which is the only relevant country to have experienced a hyperinflation in the past 100 yrs. Once Germany flips to full inflation mode to salve the EU debt crisis, there's no backstop.
The system will never let those banks fail that are the primary issuers of govt debt. The govts need them to sell their paper. And the bailout of any EU country is simply a pass-through to pay the banks imo.

DB: "Well ... it is not a question of victory or defeat is it? More like a constant struggle in which first one side and then the other has the advantage"

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Ha, don't you mess with my encouragement!

But seriously, while I agree that it IS (and will be - to some degree - in the future) a constant struggle indeed, it seems to me that the situation we're finding ourselves in is (who knew?) unique in many aspects. Hence my optimism regarding them "taking a step back" for a rather long period. And I would bet any money that "they" would experience this as a defeat.

New World order on the way to resolve all the world issues... ..
Click to view link

Currency wars are one of the most destructive and feared outcomes in international economics. Especially to those who have taken it upon themselves to try and influence outcomes. Hint, hint.

Currency Wars by James Rickards:

Click to view link

Very interesting... I was unaware of Executive Order 11110... conspiracies abound.

Maybe it's a little like discovering you have cancer. You need to make a decision, am I going to have the surgery and hope for the best, or do I just give up and accept that I will die of it. Seems to me, the sooner one has the surgery, the better the odds of recovery.

"If, however, the PTB take a step back, it will only be a strategic retreat--not a real defeat for them. IMHO"

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Why not? NEVER, according to the official record at least, has ANYTHING happened in human history similar to the ongoing mutual awakening of BILLIONS ... to some rather crucial facts of human life and history regarding the last 100 to 300 years. How can this NOT end with a "real defeat" for the few who strive for a continuation? I'd say ONLY when WE THE PEOPLE, predominantly, acknowledge their "superiority" ... which, hehe, is crumbling as we speak.

What I'm trying to say is this: Of course we CAN be defeated. It happened before, obviously - albeit under very different circumstances. However, if we preclude the chance to WIN AT ALL, just HOW can or could we, then, win?

Reply from The Daily Bell

Well ... it is not a question of victory or defeat is it? More like a constant struggle in which first one side and then the other has the advantage. We have strong feelings about which side has the "advantage" right now - and what the "sides" are as well ... as do you ...

Thanks much, Abu!

Yes. I know that we cannot know the future. If I was certain that we were headed for the collapse that i described, I would be "all in" for survival techniques. I don't have large supplies of food/meds, currencies, or chickens. Don't have thousands of rounds of ammo and arms to dispense them. Mostly... don't have chickens.

The "normalcy bias" keeps me from positioning myself for survival in a total collapse.

After all, they have kept the can going down the road for much longer than I would have thought possible. If they can create inflation without hyperinflation, they may can get past this crisis.

If, however, the PTB take a step back, it will only be a strategic retreat--not a real defeat for them. IMHO.

Thanks for the cheer up!!!

Speedy, wonderful quote. Enjoyed that a lot. Thanks.

"I mean no disrespect to RP. It is good that he has some optimism. I just am unable to share it."

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Here's a thought, Dotti: How about some prosaic logic?

NO ONE knows the future ] Consequence:

There may be a collapse. There may be not. No one knows ] Consequence:

Hope for the best, prepare for the worst. However, if we, largely, rule out that there may be NO collapse AND/OR the possibility that the situation will turn out for he better - after/or even without a collapse - human action to the effect that we WILL manage an improvement (read, perhaps: the elite will "take a step back") will fail to appear ] Consequence: We lose.

] Consequence: Cheer up, Dotti!

Once again the GEAB link.

http://www.leap2020.eu/GEAB-N-60-is-available-Global-systemic-crisis-USA-2012-2016-An-insolvent-and-ungovernable-country_a8481.html

There is more to this than meets the eye. The Anglosphere is in full war with the dollar pitted against the Euro. The Brits are trash-talking the Euro.
Click to view link
Click to view link
The Aussies have given their banks 1 week to do a stress test that prepare them for a collapse of the Euro.
On the other side GEAB says that the Euro and EU will be fine.
http://www.leap2020.eu/GEAB-N-60-is-available-Global-systemic-crisis-USA-2012-2016-An-insolvent-and-ungovernable-country_a8481.html
They're trash-talking the dollar. Truth be told, the dollar zone is in bad shape.
Click to view link

It appears that all these loans are to keep a very big presence of dollars in Europe,,,, hoping that the dollars will be used to make up for the lack of printing of Euros.
Keep the reserve currency thing going for a while longer.
If America can flood Europe with dollars at the same time that there are HUGE demands for "money" for debt service, the dollar may go on for a while longer.
EU countries will use their Euros where they have to and use dollars to pay OPEC and their dollar-denominated debt.

'"When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal, not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you. . . you may know that your society is doomed." Ayn Rand - Atlas Shrugged

Click to view link