The overall cloud of derivatives (is it 143 Trillion now? Give a zero or so.) are not understood.(By whom?)
By Daniel at 20 December, 2009, 11:02 am
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The assets remain, yet, what they mean to future activity is a war for power that is ongoing and the result of which shall determine …
What is occurring appears to me to be a combination of a standoff with everyone pointing a gun at everyone else, all not wanting to be the first to fire as they will immediately receive a few shots themselves. Off to the side there are various pillagings occurring as the various forces consolidate the power they have.
The created destruction of responsibility with entitlement and greed substituted over the past 30 plus years would have had to not have happened for a bad end to not be likely for many.
If some have their way the goose shall be cooked. Then the killers shall have their fine goose dinner. Later the value produced by the goose of its fine (golden not even necessary) eggs shall no longer exist and the greed shall be replaced by desperation. Such economies can exist as entities no matter how changed they are. Look at Mugabe’s destruction of much of his nation and it’s vitality. The nation went from an exporter of foods to the entire of South Africa to a basket case of starvation where the foreign donated food only went to people and tribes who supported him and the rest starved, some to death.
The man Mugabe, who has said Europeans do not belong in Africa, was applauded in Copenhagen last week.
The economy is sustaining itself with those toxic assets in there because they are no longer required to be valued at Mark to Market. They are valued at a Mark to Plan, or as some say, Fantasy valuation.
In fractional banking where you can loan out 9 or more times your particular capital assets, this frees up loaning out more created dollars. The banks also can borrow from the fed window at effectively 0 per cent interest and buy treasuries paying more than that and earn a profit and improve their balance sheet at the same time.
The huge cloud over us all may just overwhelm us.
Shhhhh. Don’t talk about it. It will make your head hurt.
edit Shhh. You are also not supposed to look or say anything. I have no idea if I just said anything. You did not hear anything from me.
- truthzunknownz
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