Deleted member 107
Where do you see it all ending Dan?Neither can anyone else.
In effect, nearly all assets are unpaid for, there is an IOU on everything. Everyone borrowing from everyone else and central banks also printing money out of thin air to add to an exceedingly complicated brew.
The fact that someone can go to a bank and borrow a million dollars to buy a house allows the builder to build it and pay the worker. The fact that the bank can more or less just wish the million into existance is too magic. Everybody wins. 5 years later the owner sells and makes 250000 dollars. He was in effect paid a 1000 dollars a week just to live there. He buys a 2 million dollars house.
So boom times and buildings aplenty. That is the magic of fractional reserve lending and money creation. Not to be confused with Money Printing by the Fed.
It works till it reverses and then there is a problem, the money now disappears just as easy as it appeared. That is where we are at now.
So the Fed will try to print new money to replace the disappearing fractional reserve created money.
No nobody is paying anybody so anything with debt tied to it is toxic.
The only thing with no debt tied to it is gold and silver coin or bars. An exciting time
I have always felt we were overdue a war, wars always seem to be the get out of jail card.