The debt crisis is very simple to understand imo.
We have a fiat monetary system where money is created from thin air backed by absolutely nothing.
This means that every financially strapped nation, such as Greece, Spain, Italy and the USA and every financially strapped "too big to fail" financial institution will be given every dollar they need.
Call it whatever you want - a loan - or more to the point free cash that will be completely written off as a debt at some time in the future or devalued by inflation.
In a fiat monetary system there is absolutely no need for any nation or "too big to fail" financial institution to fail at ANY point in time as all the paper money needed will be provided imo.
As for consequences .... well, obviously a devaluation of all paper currencies ... and of course cash savings will continue to lose their purchasing power. But there's nothing new about that. Remember whan a standard postage stamp cost less than 5 cents?
Savings will keep their purchasing power in hard assets - such as commodities and of course precious metals.
These bankster meetings like we now have are nothing more than mope for the masses ... every dollar that is essentially needed will be provided ... though of course it's fine for the average worker and retirees to pay the cost because many do not understand the fiat monetary system and seem to think that there is some intrinsic value behind cash .. so we will continue to see news like the following:
"Pensions for new employees less generous
Savings will reduce state's unfunded pension liability
Unions outraged, say violates collective bargaining rights
LOS ANGELES, Aug 28 (Reuters) - California Governor Jerry Brown and lawmakers have reached a deal to raise public employees' retirement ages, have them pay more into their pension accounts, and cap retirement payments in a vast overhaul of the state's pension system that he says will save $30 billion.
Union leaders panned the deal between Brown and fellow Democrats who control the legislature and hope to drum up support for his tax measure on the November ballot by showing voters they can tackle big challenges.
California faces a huge liability for funding the nation's largest public pension system, but other states and cities also have enormous pension funding gaps and will be watching the state closely."
At www.reuters.com/article/2012/08/29/california-pensions-idUSL2E8JSE4H20120829
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- the debt crisis simplified ...
the debt crisis simplified ...
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