tag:blogger.com,1999:blog-6244999628674918029.post2893806514857930980..comments2024-03-29T07:42:16.684-05:00Comments on Bayou Renaissance Man: Waiting for the collapsePeterhttp://www.blogger.com/profile/10595089829300831372noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6244999628674918029.post-39592926419045513072012-05-16T13:31:49.973-05:002012-05-16T13:31:49.973-05:00What a well-researched and well-written post. And...What a well-researched and well-written post. And you're right -- we're facing certain collapse. I've been <a href="http://newatlantean.com/2012/04/21/its-pronounced-eye-gore/" rel="nofollow">writing about it</a> on <a href="http://newatlantean.com/2012/04/24/it-has-ever-been-thus/" rel="nofollow">my blog</a> for a bit now. I just hope I don't have to be here to watch the fall. <br /><br />"Hel-loooo, hyperinflation? - or will it be massive deflation instead, as economies collapse? Economists can't agree. My money's on the former."<br /><br />I concur. As governments run out of money politicians will try to push off the inevitable by printing more money. That money will, of course, be used to pay for the same social programs that caused the problem in the first place. It is the nature of politicians.<br /><br />"governments show no sign of reducing the burden of over-regulation and bureaucratic obfuscation that threatens to strangle many businesses"<br />That, too, is the nature of the political process. Politicians need to reward their cronies and favorite groups with government jobs, and government workers tend to increase bureaucracy in order to justify their existence.<br /><br />"there are a number of crimes that his department will simply not be able to respond to any longer"<br /><br />Notice that drug "crimes" aren't on that list. The department no doubt funds itself in large part via civil forfeiture, which is basically police feeding off the civilian population.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-27133395432255894062012-05-14T15:18:27.602-05:002012-05-14T15:18:27.602-05:00This comment has been removed by the author.MrGarabaldihttps://www.blogger.com/profile/05768774166065615995noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-50279328551250355602012-05-12T21:29:32.672-05:002012-05-12T21:29:32.672-05:00The line that keeps going through my head is "...The line that keeps going through my head is "the lights are going out". When this wave crests, it's going to be very ugly.DaddyBearhttps://www.blogger.com/profile/07508543148426098384noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-87544306422299718052012-05-12T11:34:01.378-05:002012-05-12T11:34:01.378-05:00The problem in Europe started 30 years ago when go...The problem in Europe started 30 years ago when governments promised folks wouldn't need to save for retirement and illness - the state would pay. So they didn't. <br />And now that it's been proven the lie it was, governments want these same folks nearing retirement age, to somehow save now? But hang on: they are nearing the age where they cannot continue to earn money, how on earth can they possibly save NOW? What, they should conveniently just roll over and die?<br /><br />Until governments accept this simple reality and sort a way out of it, the unrest and refusal to austerity won't stop. With good reason, IMHO.<br /><br />As for the banks, Iceland is so far the only country that has done the correct thing: banks in trouble? Let them crash! <br />And lock up their management and the government bastards who colluded with them. It hurt for 2 years, now they are doing better than the rest of Europe!<br /><br />One last thing: an economic doctrine based on the concept of continued, unrestricted, unlimited growth, can only be sustainable in the mind of an economist. <br /><br />There is no such thing as unlimited growth. It cannot possibly be the driver for economic progress: it's just not sustainable!<br /><br />Once these simple facts are acknowledged and someone starts working on a solution, things will get better. <br />Otherwise it'll be a LOT worse. And inevitable.Noonshttps://www.blogger.com/profile/04285930853937157148noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-44889936398701457852012-05-12T08:35:23.473-05:002012-05-12T08:35:23.473-05:00Depressingly accurate.
I hope Germany and America...Depressingly accurate.<br /><br />I hope Germany and America come through as friends on this one...MSgt Bhttps://www.blogger.com/profile/00035771485514432736noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-71832885771066616822012-05-12T08:02:32.075-05:002012-05-12T08:02:32.075-05:00Part of it is to refinance (i.e. 'roll over...Part of it is to refinance (i.e. 'roll over') old debt that they can't afford to pay off. Another part is to finance expansion or upgrades to their operations (for example, a new factory, or re-tooling an older facility, or a credit line to fund exports, etc.)<br /><br />Most companies don't operate on a cash basis. They fund their operations by lines of revolving credit. Money spent to produce goods is repaid by the income from selling those goods, whereupon more is taken out of the line of credit to produce more goods, and so on, and so on.<br /><br />Those lines of credit are now drying up, as well as longer-term loans for specific projects.Peterhttps://www.blogger.com/profile/10595089829300831372noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-69662790328632222782012-05-12T07:46:49.121-05:002012-05-12T07:46:49.121-05:00Anthony Peters at SwissInvest said it was likely t...<i>Anthony Peters at SwissInvest said it was likely there would "not be enough money" available in the coming years for companies to refinance and raise the amount of new debt required.</i><br /><br />So, I guess the big part of this I don't understand is, why do these companies all need to generate <b>more</b> debt like this?<br /><br />I mean, I understand having the debt they have, and needing to pay it off, but... why generate more?perlhaqrhttps://www.blogger.com/profile/01920117742664645165noreply@blogger.com