There is an unspoken difference between debt that is designed to be paid back and debt (disguised as perpetual flow) to finance pre-existing streams of debt service.
The second type of debt is a Ponzi large enough to make Bernie Madoff blush. And crash the system. In the current system, debt is money for nothing used to create asset bubbles. Including the equity lift-off we see today.
Giving rise to the pump and dump scams that are very much alive and well.
As Zerohedge captured the essence:
"To be sure, Wall Street has sponsored such market-rigging ploys since time immemorial. However, the true evil of rampant central bank money printing is that it vastly enables and amplifies such speculative ventures, while at the same time eviscerating the natural checks and balances against speculative manias which are embedded in honest financial markets."
At the base is the debt finance.
Streams that are, ultimately, instruments of enslavement promoted, traded, and described as debt. The intention to enslave is not the point. It is just one of many unintended consequences.
It is the result of a century of abuse and ultimate power over the people. Treasuries are perpetual claims on taxpayers.
Debt to be repaid is not being sold: People are. If Treasuries can neither be paid off nor defaulted then the people are being sold as revenue streams. Normally, people who are provided too much debt correct the lenders by defaulting. The system clears.
Public debt is different. In essence, public debt is a scheme to leverage the backs of the citizens, soldiers, and serfs. And propaganda greases the wheels.
Debt streams enable leverage. Re-hypothecated paper leverage. And the ability to manipulate.
When people finally feel this pain en masse, it ends. What is now hidden by price controls and manipulations and returns with the full force of sudden reality. When prices are dislocated, shortages or surpluses appear.
Too many paper silver tickets created by the speculators create a massive shortage of silver available to back those promises. There was never any plan to come clean on those promises. They are simply letters of credit for more leverage. The unthinkable default would strip away the Ponzi for all to see, immediately calling into question the entire paper complex.
It will probably happen under another name. People will likely not see the currency collapse for what it is.
Correct, and once the oligarchs behind this "let them eat cake" monetary policy try to maintain this in a resource-limited world, the people lose faith fairly quickly. They will do whatever they need to do and real wealth seeking will start occurring everywhere.
All kinds of economic activity go on outside the eye of the taxman already. Such monetary experiments always end the same way. Economists, financial leaders should be sounding alarm bells. Yet they do the opposite.
Alas, the academics who call themselves economists are not, in fact, economists. A real economist describes the way the world works - not just the way he wants it to work. They have little incentive to evaluate objectively. In fact, they exist to celebrate our supposed victory over nature, like predicting earthquakes or inducing hurricanes.
It is true. Mankind has achieved some pretty incredible things. But science cannot be applied to financial markets more than bean counting or programming automatic trades. When it is tried, we stagnate. No growth. No creativity or evolution.
From the highest echelon of modern finance to the little cubicles where programmers create the next crypto currency; nothing has changed all that much. We just keep evolving new and more efficient channels of propaganda.
The next collapse will come wrapped in some other fear-laden, false flag-riddled tragic disaster meant to distract and protect the elite. Only in retrospect will the truth be known.
Sadly, people still worship their masters. Too distracted by circuses to feel the collective cancer growing inside them. As of now, most people are not prepared for the change in lifestyle that will set in very quickly.
You can prepare and keep stacking, leveraging physical weight against the crumbling illusion that the tail can actually wag the dog forever.