Title: Mcgowanjm Wire 2012 Source:
[None] URL Source:[None] Published:Feb 26, 2012 Author:Various Post Date:2012-02-26 09:15:13 by A K A Stone Keywords:None Views:1401197 Comments:2390
"Lenders eye precarious borrowers and mushrooming risk: instead of rolling over loans they demand repayment. This requires borrowing to take place outside of the ordinary transmission channels, by which the bulk of loans were made in the first place. New channels simply do not exist. Extend and pretend has been institutionalized over a period of decades across the modern world. The two-year loan became the ten-year loan. The ten-year loan became twenty. The loaned amounts in question expanded exponentially as both principal and interest were financed.
As the borrow-to-repay charade expands both the borrower and the lender realize they’ve been had: borrowers cannot roll over their debts while lenders see principal investments vanish and are wiped out. "
-economic-undertow.
There is No Return on Consumption by Burning gas in your car.
Finance channels are saturated, debt is unproductive. All new debts taken on are to service old debts rather than afford goods and services. Debts are ‘dead money’: the only way to retire them are by way of Ponzi schemes and loan-shark lending. Borrowers cannot find lenders because all sources have been tapped already. Lenders cannot find creditable borrowers. This was the entire point of globalization, to tap all sources of world capital, benefits lasted only until global demand for capital ballooned to consume it.
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