News & Analysis
S&P's 'Wall of Debt' Warning is Phony as They Come
Companies must raise £28 trillion to finance 'wall' of debt ... Companies across the world face a "perfect storm" as they have to raise more than £25 trillion to finance an upcoming "wall" of debt. British companies will have to find between £220bn and £268bn of new financing to fund their growth plans on top of refinancing hundreds of billions of pounds more of existing debt. Businesses will need to secure as much as £28.5 trillion to refinance old borrowings and fund new spending, raising major questions over the ability of the world economy to avoid a recession, according to a report from Standard & Poor's. – UK Telegraph
Dominant Social Theme: There's no money! The governments can't help! Help!
Free-Market Analysis: As the power elite that wants to run the world grows more crazed and desperate, their bought-and-paid-for financial facilities and media mouthpieces become crazier, too.
That's because the credit system itself is an artificial system, built out of central banking around the world, which in the modern era is the monopoly printing of money-from-nothing.
People should try to recall that the creation and control of money is in the hands of a very few people. If these people – these representatives of dynastic banking families – wanted to print more money they could.
They've already printed about US$ 50 trillion, trying to stave off the collapse of their dysfunctional system of command and control.
They want a certain level of dysfunction, apparently. They surely want to create, it seems, a full-fledged depression around the world that features military actions and economic chaos in order to generate the necessary conditions for world government.
Here's some more from the article:
British companies will have to find between £220bn and £268bn of new financing to fund their growth plans on top of refinancing hundreds of billions of pounds more of existing debt, according to the ratings agency. The scale of the refinancing required, as well as the amount of new debt companies must sell, could create what S&P described as a "perfect storm for credit markets".
The report continued: "Governments and banking regulators are now not as well placed to counter another perfect storm scenario given that they have already expended so much of their fiscal and monetary arsenal to mitigate the problems arising in recent years."
The consequences of this are already being felt in the rising cost of borrowing faced by everyone from the largest banks to homebuyers when taking on new debt or refinancing existing loans. On Thursday night the CBI echoed the warning and said central banks and governments needed to beware the problems brewing in credit markets.
"These figures show why monetary policy around the world needs to support growth, and why banks need to be given enough time to recapitalise and to meet their future regulatory requirements," said Matthew Fell, a director at the CBI.
British banks have dramatically reduced the size of their balance sheets in the past three years, as well as tripling the amount of capital they hold against potential losses. However, these moves have led to a shrinkage in the amount of credit available to businesses and soaked up some of the investor demand for new debt.
You see how it all comes back to banking, dear reader? The point is being made that banks are "overstrained" and their lending capacities are diminished.
But who would really care about this if we had a free-market money system available? If we had a free-market system of money instead of a monopoly/government/mercantilist one, then the market itself would take care of the money necessary.
That is not what the powers-that-be want you to think. They want you to be frightened and thus use their dominant social themes like this one (the world is running out of money) to make you feel hopeless and powerless.
These themes are almost always scarcity-based. At the end they propose globalist solutions (run by the power elite) to provide the necessary antidote to market failure.
Anthony Peters at SwissInvest said it was likely there would "not be enough money" available in the coming years for companies to refinance and raise the amount of new debt required. "There is not enough money on planet Earth to fund it all. We are living on borrowed money and there is no way of avoiding that," he said.
The powers-that-be are by now fully aware that they have poured their tens of trillions into a dysfunctional economic system that needs to be allowed to fail. But since this bubble system of banks and financial firms is NOT to be allowed to fail, it will go on wasting gigantic sums of money.
Then, central banks will have to print MORE money and even MORE money.
At some point price inflation shall bring the whole system down. Unless, of course, the powers-that-be can somehow make the case to people that the market failure is organic.
But it is not organic. The current money system is a fake and a fraud. It is a system of command and control for a very few.
And now these few are faced with explaining and justifying its failure during what we call the Internet Reformation.
Conclusion: Good luck.