The system is unsustainable, always has been.
One ounce of gold lent out at 3% compounded annually.
Year 1 - 1.03oz
Not bad
Year 20 - 1.81oz
Not bad
Year 50 - 4.38oz
still not bad
Year 100 - 19.22oz
still not bad
Year 200 - 369.36oz
still not bad
Year 500 - 2,621,877.23oz
problem will robinson
Year 750 - 4,245,399,152.55oz
holy shit
Year 1000 - 6,874,240,231,169.63oz
unforunately there is only 4.5b oz. that has been mined
Now imagine billions of stupid humans doing the same thing... basically 60-80 years if you are lucky or unlucky.
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Yeah the more I read the more the point is driven home that we are screwed. I wonder if the PTB and/or the politicians know this and are just hoping (praying) to delay long enough until a miracle happens?
ReplyDeleteOr do they really believe they can restart the credit bubble and return to growth rates that we have been used to for the last 60+ years?
The job of the upper tier lemmings is to keep the lower tier lemmings marching along.
ReplyDeleteYes, some of them think/thought you could just keep going... go read some of Helicopter Ben's writings on the subject.
He is just a slave to the true top lemmings, that suck off the bottom lemmings. The top lemmings didn't become top lemmings by being stupid... they know.