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by Trias11 1871 days ago
>> Around 2008 there was about 4 times more money than things you can buy, now we approach 20 times and over. So this is not a new problem.

This IS a new problem that is 5 times bigger that 2008 crash. Probably much worse due the catastrophic chain effects it will cause.

1 comments

I'm not too certain, I am a scientist not a business suit, so I could easily be wrong... but ... From my point of view the crisis of 2008 came by calling the bet and seeing it wasn't backed up by cash or collateral. This was circumvented by increasing the cash flow and saving the banks at that time. In 2009 the US gave stimulus pack to restart the economy, since only saving the banks didn't help anyone else.

So the resession was healed by providing more moving money and everything bounced back.

This is what we see again now.

So the system is actually holding up because the amount of money is increased. This is not the symptom, but the cure.

This way everything can go on as it is, but you are right, there can be more effects. Although I'm not sure which.

If the cash flow goes away so do all products and people starve... This is avoided by printing more cash. At least that is the theory and it seems to hold, for now...

Again I could be wrong on this.