tag:blogger.com,1999:blog-519309521056177172.post6990334355614847378..comments2019-02-03T18:06:56.622-08:00Comments on World Darkest Days: The Equation Must FeedDarkest Dayshttp://www.blogger.com/profile/15547099638408869644noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-519309521056177172.post-49967602414778968212010-04-30T04:15:23.533-07:002010-04-30T04:15:23.533-07:00All credit comes from thin air, if not tell me whe...All credit comes from thin air, if not tell me where it is stored. <br /><br />Commercial banks have never gotten around this, that why credit creation has been negative for a year, and has been collapsing for over 2 years. <br /><br />Commercial banks will lend, there simply is no one to lend to at the rate needed. It's almost like you missed the last two decades in Japan, their system is exactly the same. <br /><br />If you can fund your own "credit" then the credit would never exist... Economic 101.Darkest Dayshttps://www.blogger.com/profile/15547099638408869644noreply@blogger.comtag:blogger.com,1999:blog-519309521056177172.post-8420130553624673352010-04-29T13:16:18.518-07:002010-04-29T13:16:18.518-07:00"There simply is no one that wants to borrow,..."There simply is no one that wants to borrow, or at least at the rate needed to keep the system going"<br /><br />I don't know why you keep writing this as something significant. The commercial banks have gotten around this limitation ages ago. They create money out of thin air, in fact they are mini-central banks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-519309521056177172.post-86559155661320706212010-04-29T04:43:51.056-07:002010-04-29T04:43:51.056-07:00Benny has done a ton of research into GD, his conc...Benny has done a ton of research into GD, his conclusion was the central bank failed by not being the true lending of last resort. As you can see he is wrong, which is why the Fed is no longer the lender of last resort but now the BUYER of last resort. <br /><br />There simply is no one that wants to borrow, or at least at the rate needed to keep the system going. <br /><br />You are correct, sometimes things come out of the least likely places.... would not be surprised by more deterioration in Japan.Darkest Dayshttps://www.blogger.com/profile/15547099638408869644noreply@blogger.comtag:blogger.com,1999:blog-519309521056177172.post-13996570924010454622010-04-28T18:42:14.207-07:002010-04-28T18:42:14.207-07:00Thanks for the reply. Yeah I'm especially intr...Thanks for the reply. Yeah I'm especially intrigued watching Japan. Someday they are going to have a debt spiral/ currency collapse. Everyone will be like - "who could have seen that coming?" <br /><br />But also I wonder if Bernacke wakes up screaming in a cold sweat in the middle of the night. He's gotta know.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-519309521056177172.post-19677767797450296992010-04-28T17:30:44.457-07:002010-04-28T17:30:44.457-07:00Wish I knew, actually I don't want to know. T...Wish I knew, actually I don't want to know. The final date and the exact details I don't know. I mean this could have ended in Sept 08 if massive intervention was done. <br /><br />I would say the countries in Europe will continue to collapse, it very well could spark another derivatives issue which could blow the whole thing open overnight. <br /><br />Without derivatives blowup... the countries of Europe will continue their decline but just like everything it doesn't have to necessarily move in a straight line. <br /><br />It could be random country as well like Japan, when the US goes it all goes though.Darkest Dayshttps://www.blogger.com/profile/15547099638408869644noreply@blogger.comtag:blogger.com,1999:blog-519309521056177172.post-13060572097853798902010-04-28T14:38:35.606-07:002010-04-28T14:38:35.606-07:00So when do you think it will become critical? Will...So when do you think it will become critical? Will failed treasury auctions mark the start of the critical phase?<br /><br />Will it all go in order? Greece, Portugal, Italy, Spain, UK, Japan, and then the US? Or random?Anonymousnoreply@blogger.com