The Folly Of Debt - 10/01/12

The Wake Up Call show

Summary: The insanity surrounding the growth of debt defies credulity. Future generations will shake their heads in disbelief. The upheaval surrounding the ultimate unwinding cannot be described in words. Nothing in human history will compare to the horror of it. Things are very grim in other countries too – and many of them are further along the road to deleveraging than the U.S. which hasn’t even started! Riots in Greece and Spain are getting more violent by the week. The powers-that-be are just as clueless over there as they are in the U.S. A few words on the Iceland example, a country which ‘did it right’ and is now on a path to genuine recovery. Bond buying by the ECB is done in exactly the same way as by the Fed, in both cases to circumvent the illegality of purchasing debt directly from sovereign countries – or ‘entities’ in the case of the Fed. The Fed is engaged in blatant manipulation to levitate prices everywhere. A new book by Sheila Bair, former FDIC chief called, “Bull By The Horns”. More fascinating bean-spilling.