For the last several months, I've been closely following the discussions - on the TF blog and elsewhere - about the rapidly escalating global economic crisis. I've read some excellent analyses of the situation (e.g. this one from Zerohedge https://bit.ly/iZvFzr).
I decided a few days ago that I wanted to make a very brief video that would boil this complex subject down to the most basic, general terms, to help this community of like-minded people explain it to other folks.
I spent several hours trying to write a brief summary of the situation (starting with, "Hello, I'm the U.S. Government ..."), and eventually realized that I couldn't do it, because - frankly - I don't actually understand what the hell is going on!
I understand the component pieces: currency devaluation is bad, excessive public & private debt is bad ... Martin Armstrong says the issue is that governments are getting to the point that they can't even pay the interest on their debts. I get that. But when I try to explain HOW all these things work together, and WHY the house of cards is falling down, I hit a brick wall.
Will you help me?
How would YOU answer the question, "What is happening to the economy, and why?"
So many good essays written.
My short version is that the wealthier part of the world has decided that it is OK to rack up debt and refuse to be accountable for paying it back. And that worked well for awhile however the tactic requires that some countries end up holding the bag. The poorer countries are played out and now the wealthier ones have to settle amongst themselves.
Kiting is a well known fraud and that analogy comes into good use here.