Friday, January 23, 2009

On the Brink of Economic Disaster

The last great empire builders - the UK and the USA appear to be on the brink disaster due to the collapse of debt financing.

Due to the mountain of debt compared to productivity mainly in the private sector, the banking crisis looks like it inevitably will move to the next stage despite the extraordinary generousity by Governments of tax payer reserves into the banking sector.

It seems that our addiction to capital is an addiction to “productivity free” capital - in other words the acceleration of capital growth over the past thirty years has been a belief system based on attributed value rather than real value. Notice how your house got more and more valueable?

Continued in End of Empire on DisturbingTrends: predicting future politics

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