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marmar

(76,978 posts)
Thu May 5, 2016, 10:05 AM May 2016

The Great American Credit Collapse


The Great American Credit Collapse
By Bill Bonner, Chairman Bonner and Partners:


Please remember this warning when you go to the ATM to get cash — and there is none.

While we were thinking about what was really going on with today’s strange new money system, a startling thought occurred to us. Our financial system could take a surprising and catastrophic twist that almost nobody imagines, let alone anticipates.

.....(snip).....

There’s Not Enough Physical Money

Here’s how… and why:

It’s almost seems impossible. Hard to imagine. Difficult to understand. But if you look at M2 money supply – which measures coins and notes in circulation as well as bank deposits and money market accounts – America’s money stock amounted to $12.6 trillion as of last month.

But there was just $1.4 trillion of physical currency in circulation – about only half of which is in the US. (Nobody knows for sure.)

What we use as money today is mostly credit. It exists as zeros and ones in electronic bank accounts. We never see it. Touch it. Feel it. Count it out. Or lose it behind seat cushions.

.....(snip).....

At some point, a debt correction is inevitable. Debt expansions are always – always – followed by debt contractions. There is no other way. Debt cannot increase forever.

And when it happens, ZIRP and QE will not be enough to reverse the process, because they are already running at open throttle. ...........(more)

http://wolfstreet.com/2016/05/05/credit-collapse-dollar-panic/




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The Great American Credit Collapse (Original Post) marmar May 2016 OP
And private banks are getting 2-3% on every transaction. rgbecker May 2016 #1
I've seen some harbingers of this already. Hugin May 2016 #2

rgbecker

(4,806 posts)
1. And private banks are getting 2-3% on every transaction.
Thu May 5, 2016, 10:12 AM
May 2016

It adds up quickly.

The Federal Government should take over the credit card industry and remove profits from every transaction....if you are concerned they couldn't handle the credit ratings, defaults etc. then at least just do a debit card system and do what the government says it is only allowed to do....regulate and print the only money allowed in use.

Hugin

(32,773 posts)
2. I've seen some harbingers of this already.
Thu May 5, 2016, 10:16 AM
May 2016

Recently, I got a 1917 wheat penny in regular change.

Think about that a minute.

Let it soak in.

That.Should.Never.Happen.

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