[ExI] M0 singularity... you're soaking in it

[BillK]

On Sun, Jan 25, 2009 at 5:49 PM, Brent Allsop  wrote:
<snip>
> How would this differ if people were hoarding money in real cache in places
> like mattresses verses their cache savings accounts?  Would that change this
> M1 Multiplier?
>
> Either way, it is very exciting to see this kind of long term geometric
> growth in the amount of money we all have.  We really are soaking in the
> singularity.
>


I don't see it like that, Brent.
People aren't hoarding cash. The banks *are*, because they are hoping
they can hoard enough over time, that people don't notice they are
sitting on huge debts and are technically insolvent.

The debt mountain is the problem.
<http://money.cnn.com/2009/01/20/magazines/fortune/okeefe_schiff.fortune/index.htm?section=money_latest>
Quote:
As he outlined in 2007 in his first book, Crash Proof: How to Profit
>From the Coming Economic Collapse, Schiff believes that the U.S.
economy has become dangerously and unsustainably dependent on
consumption - fueled by trillions of dollars borrowed mainly from
Asian countries like Japan and China.

"We have an economy that's based on the same principles as Bernie
Madoff's investments," he says. "It's a Ponzi economy. It's not real.
We don't save and we don't produce anything anymore. We simply borrow
from the rest of the world, and then we spend it. We've had a giant
party. We bought all these plasma TVs and iPods. We remodeled our
houses and took vacations. But you know what? The bills are coming
in."


BillK