In the summer of '05, I had finally moved to Bend, Or after leavingh the log house vacant since '90. With much time on my hands, I did a lot of reading on the net. That is when I deduced the coming crash. 12 yars later and, I’m still reading 40 hrs a week, not just on the economy. It has taken many years to finally figure out the cause of the crash. Everybody tralks about cycles and interest rates and other such nonsense.
As all of you know, a bank creates the principle of a loan but, NOT the interest.
The interest is taken from the always growing pile of debt, future loans. Consumption and production MUST grow to provide the increased economic activity, that provides the additioinal money required to service the debt.
The debt pile MUST grow to be serviced. The main body of consumers in the world is the , 16----62 year olds. Their numbers are shrinking. The debt bubble is growing at an exponential rate.There is no possibility of a growing debt pile at the same time as shrinking consumption. It can grow temporarily if the central bank printes enough. The money must flow from thin air if the debt is to be serviced during a time of shrinking consumption ans shrinking demand for credit.
There is NO possibility of organic growth in the debt pile if the population is shrinking. Japan has proved that for the last 3 decades. As the private sector shrinks it’s demand for credit, the State has jumped in and raised the public debt by $ trillions. This is causing a loss of trust in State debt. S&P is soon to downgrade U.S. GOV credit. Dagong rating agency has already downgraded U.S. debt to one level above junk.
ALL States eventually default. Between defaults, State debt is rated risk-free. Martin Armstrong and his super program, Socrates show FED GOV debt to be crashing in the not-so-distant future.
China has the fastest shrinking work force due to their one-child policy. The States with the fastest shrinking work force are doing the most money printing, to compensate. Several States pay a baby-bonus. Russia pays your rent if you have 3 kids and, gives you a medal if you have 6 kids.
The Central bank of South Korea came out and admitted that “they can’t print babies”.
So, when you hear the politicians and central bankers talk about fixing the problems with various tweaks, ignore them. If you want more information on how population affects the interest rates, go to the site, “Economica” https://econimica.blogspot.com/
The Chinese policy makers ended the 1-child policy and figuired that the people would respond. NOPE. 75% of respondents said that it was too expensive to have more than one child.
There is a youtube vid where the Polish GOV is telling the people explicitly to “breed like rabbits”. Tha Danish GOV has a youtube vid about the same. The Japanese GOV has a big huge State run dating site.
So, amazing as it may seem, you must have people to have an economy.
The full impact of birth-control combined with our unfolding poverty has ensured that this crash will not be fixed by simple tweaks. Confidence in the future is lost.
Here are some vids that discuss various problems. Keep in mind that there is no QUICK fix for falling population.