Wednesday, 7 August 2013

Notional money crash.

World GDP has changed little while World Notional Money has soared trillions.  You've read articles about the US and the EU, the IMF and the Fed and the rest “kicking the can down the road”, putting patches on debt-riddled instruments and all of them incestuously interlocked trying to make each other look good.

Every time a patch is added, the capacity of the old system goes up a bit.  Inevitably, a few more leaks will pop.  When these are patched, the fabric of the old system is stretched to a new level, whereupon quite a few more new leaks pop up.   Those too have been patched and the old fabric is stretched now into new territory never tested before.

What you can predict is that it will fail.
You can predict a failure in the near future will be a fabric failure requiring a system rebuild, not just a patch on a seam.  That it will start with something tiny is also predictable but where it will happen is not.

Fun when regularly grounded
Kind of scary when  charge
builds and builds
High school science class gives an analogy.  A Van de Graaff generator builds high static charges which regularly zero out.  If you polish the globe used to store the charge to higher and higher degree, the charge builds higher and higher before finding an imperfection to channel the discharge off the ball.

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