Jim Rogers Blog - Cyprus Sets The Standard For Other Coun...
Some NY Times Op/ED columnists seem to believe that more debt is not a problem - it is just money we owe ourselves. Perhaps we need to revisit what debt and money represent in a more physical sense - being an obligation to provide the requisite physical goods and services to the holder of the debt instrument, as time specified.
Here's the perspective that illogical neo-classic economics do not grasp. The holders of National debt are ultimately future generations - who are the one's that will be expecting payments back to them. However nations, banks, pension funds and all forms of financial intermediaries will be unable to make these payments. Why? Not because there is no shortage of worhtless abstract fiat currencies - we can electronically create those forever. Rather, it will be a result of economies not having input resources to convert to goods and services - they are at a future date: resource bankrupt.
Now you would think that, by now, the neo-classical economists could learn a lesson or two about real economics. There are so many recent lessons, like Greece, Ireland, Cyprus, Iceland and the lingering certain demise of the whole EU. Are these situations providing a wake-up call? Nope, not a chance - they are either all part of the Financial Mafia or just - Thick as a Brick. You can and may be the judge of that.
Dr Peter G Kinesa
April 2 ,2013
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