Exclusive — House Majority Leader Kevin McCarthy: ‘No Longer Just Republicans Versus Democrats; It’s

[Cyber Liberty]

[LMAO]

It's semantics but I gotta say your reality is gloomy.

Well, 21 trillion in debt and growing could be viewed as an achievement. Whether that achievement is a cause of concern or celebration depends on ones point of view, I guess

[Frank Cannon]

Is this news still exclusive if it is a week old and there are 200 posts about it?

[roamer_1]

So at what point do you think banks shut off the spicket and let the world economy tank? How will that work out for them?

You think you are sticking it to the banks?
You are not. Banks cover debt, but sooner or later, the debt must be paid.

Do you think the banks in Venezuela had anything to do with where it is now?
It was inflation, white hot, that did Venezuela in. Printing money to cover the debt.
That is government, not banks. Their banks got destroyed right along with the rest of their economy.

And the funny part is, once the debt gets bigger than the ability to pay, the only thing left to do is print more money to cover the debt, and printing more money raises inflation. it is a perfect vicious cycle. And it always ends the same way. TOTAL_DESTRUCTION.

Many believe we have already crossed that threshold, where the debt is so great that it cannot be paid - That our own inflationary spiral has already begun, and cannot be stopped. I am not sure of that, but at the least, that threshold looms. And you want MORE taxes.

We cannot, or nearly cannot pay for what we are doing now. How is it that you think we can pay substantially more?

[roamer_1]

And, it's not a question of them turning off the spigots, it becomes an issue of the spigots running dry.

YES! INDEED! Sooner or later, you really DO run out of other people's money.

[Dexter]

it becomes an issue of the spigots running dry.

The government won't run out of money because it will print more. The banks will never tear the economy asunder regardless of how much debt there is. The forces that control everything are not interested in destroying the very thing that allows them to be so powerful.

[Cyber Liberty]

Is this news still exclusive if it is a week old and there are 200 posts about it?

It's still in the title of the sourced story, so yeah.

[INVAR]

So at what point do you think banks shut off the spicket and let the world economy tank? How will that work out for them?

The moment that the fiat money supply reaches critical mass as confidence implodes the economy.

Not enough money on the planet to bail out the banks - just in the derivatives market itself.

Weimar Germany on a global scale with the USA leading the way because we have a nation of credit card mindsets like yours that think we can tax ourselves into prosperity and plenty.

[INVAR]

The government won't run out of money because it will print more. The banks will never tear the economy asunder regardless of how much debt there is.

That sir is Lunacy on an astronomical level of ignorance or carelessness.  Probably both.

[Dexter]

The moment that the fiat money supply reaches critical mass as confidence implodes the economy.

Not enough money on the planet to bail out the banks - just in the derivatives market itself.

Weimar Germany on a global scale with the USA leading the way because we have a nation of credit card mindsets like yours that think we can tax ourselves into prosperity and plenty.

What would happen if the banks forgave the debt? Just hypothetically.

[INVAR]

What would happen if the banks forgave the debt? Just hypothetically.

The bank goes under and ceases to exist.

Everyone's money with it - and when the government cannot cover the deposits because a dollar yesterday is only worth .0001¢ today - you have what I described.

[InHeavenThereIsNoBeer]

The government won't run out of money because it will print more. The banks will never tear the economy asunder regardless of how much debt there is. The forces that control everything are not interested in destroying the very thing that allows them to be so powerful.

Of course, printing more money doesn't actually increase wealth, it simply dilutes the money supply and causes price inflation.  Basically, it's a stealth tax.  The higher prices and interest rates then cause the govt to need to print even more money, which accelerates the cycle.  Eventually, it has to print ever larger denominations just so people can actually buy stuff, which unfortunately is just hyper-accelerating the disease.

The banks can't stop it.  At some point, the money people have in them becomes little more than pocket change, so do the loans the banks previously counted as assets.  When fiat currency dies, banks become impotent.

But then, that could never happen again, not to us anyway, because it's different this time.

[Dexter]

The bank goes under and ceases to exist.

How? You really think the banking system and economy would collapse if it forgave that debt? How is money they don't have right now so vital to them not falling apart? There's obviously something I don't understand.

[InHeavenThereIsNoBeer]

The moment that the fiat money supply reaches critical mass as confidence implodes the economy.

Not enough money on the planet to bail out the banks - just in the derivatives market itself.

Weimar Germany on a global scale with the USA leading the way because we have a nation of credit card mindsets like yours that think we can tax ourselves into prosperity and plenty.

The size of the derivatives market is misleading.  It's bloody huge, but then it's measured in potential.  It's like the insurance on my house, chances are if I do make a claim it's not going to be for the total value, but the risk to the insurance company is the total value.   And the total risk to the insurance company is the full payout on every single claim they have, which is really big, but not likely.

In addition, every derivative is going to have at least two parties.  So yeah, if every single thing blows up at once, GS is going to owe MS 99 trillion dollars, but then MS is also going to owe GS a hundred trillion dollars.  So maybe there's a risk of a trillion dollar default, but not the 199 trillion we hear reported as the market size.   [Of course, I just made those numbers up.  It could be much worse than my stupid little example.  The point is simply that the reported value of the derivatives market includes both assets and liabilities].

[InHeavenThereIsNoBeer]

How? You really think the banking system and economy would collapse if it forgave that debt? How is money they don't have right now so vital to them not falling apart? There's obviously something I don't understand.

You gonna leave your money in a bank that now has only liabilities (its debt to you, your savings and checking accounts) and no assets (the value of the loans it used to expect to collect)? 

While you think about that, I'll be at the bank trying to get mine out before everyone else.  And before the employees realize the bank no longer has any money to pay them to work.

[Dexter]

You gonna leave your money in a bank that now has only liabilities (its debt to you, your savings and checking accounts) and no assets (the value of the loans it used to expect to collect)? 

While you think about that, I'll be at the bank trying to get mine out before everyone else.  And before the employees realize the bank no longer has any money to pay them to work.

I didn't mean all debt banks own. I meant the debt our government owes to banks. Maybe they could just forgive a large amount of it.

[InHeavenThereIsNoBeer]

I didn't mean all debt banks own. I meant the debt our government owes to banks. Maybe they could just forgive a large amount of it.

Okay, then let's try that again.

You gonna leave your money in a bank that now has negative equity (aka, is insolvent)?

While you think about that, I'll be at the bank trying to get mine out before everyone else.  And before the employees realize the bank no longer has any money to pay them to work.

[INVAR]

I didn't mean all debt banks own. I meant the debt our government owes to banks. Maybe they could just forgive a large amount of it.

I'm guessing the term 'unfunded liabilities and mandates' is unknown to you.

Once government defaults on it's obligation to the banks, the banks go under - and a cup of coffee will cost you $10,022.00 right now and $22,055.66 tomorrow at this time if demand is still there for it.

You will be trucking wheelbarrows full of paper and coin to buy one loaf of bread after waiting in line for 14 hours the way my folks did in the old country before the man in the funny mustache led them to glory.

[Dexter]

Okay, then let's try that again.

You gonna leave your money in a bank that now has negative equity (aka, is insolvent)?

While you think about that, I'll be at the bank trying to get mine out before everyone else.  And before the employees realize the bank no longer has any money to pay them to work.

It's ridiculous that people that weren't even born when this debt bullshit started have inherited the problem and have no way out. How in the hell are people ever going to pay such a ridiculous number back to banks? They can't. This is the American public being enslaved by big banks.

[roamer_1]

It's ridiculous that people that weren't even born when this debt bullshit started have inherited the problem and have no way out. How in the hell are people ever going to pay such a ridiculous number back to banks? They can't. This is the American public being enslaved by big banks.

No. By government.

[Dexter]

No. By government.

Yeah except the government is in debt to banks, not vise versa. Banks rule our society.

[roamer_1]

Yeah except the government is in debt to banks, not vise versa. Banks rule our society.

No, because the government regulates the banks... That is the primary problem with fiat currency. If the currency is backed by real assets, as in gold notes, then you might be right.

[Dexter]

the government regulates the banks

Banks regulate the government that regulates the banks.

Have you heard of the golden rule?

 

[InHeavenThereIsNoBeer]

Yeah except the government is in debt to banks, not vise versa. Banks rule our society.

Banks didn't force that debt onto the government.

But let's see banks try to refuse to lend to the government.

[Dexter]

Banks didn't force that debt onto the government.

But let's see banks try to refuse to lend to the government.

You don't think the banks deserve any part in the blame? I bet they were more than happy to lend that money.