Crash Course: Chapter 13 – A National Failure to Save by Chris Martenson
Posted by admin in Finance Friday, 7 May 2010 00:29 26 Comments
Chapter 13 (A National Failure To Save): “The next twenty years are going to be completely unlike the last twenty years.” — Dr. Martenson. Chapter 13 begins his explanation for this deeply held belief. On every level of our society, there has been a failure to save. Individuals, cities, counties, states, and corporations have all failed to save, but, more importantly, so has our federal government. Our government has pursued a reckless policy of debt accumulation, while neglecting saving and investing, leading to Dr. Martensons claim that the United States is insolvent. Insolvency, which occurs when ones liabilities exceed assets, is first step on the road to bankruptcy. www.chrismartenson.com
@brandonpantano OR we can “liberate” them … and our debt
people would be mad to save given current rates and given the erosion of saving capital value by inflation. the government want us to consume, not save. its not joe public’s fault he’s not saving when the Fed, BoE have forced savings rates down so low. Good videos. I had appreciated the gravity of the situation, but you explain the topics very eloquently.
What if the US defaults on loans from China? War?
Neither Walker or the Government Report take into account the 110+funds/assets listed in the CAFRs that have a 14% ROI. That shouldn’t surprise you because they never tell the American people that they are the creditors, not debtors. The powers that be have inverted the creditor/debtor relationship to steal wealth from the value creators/producers.
UNITED STATES corporation has been bankrupt since 1933. The American people are the ultimate creditors of UNITED STATES Inc. You have a trust receipt (birth certificate) as evidence of an underlying trust deposit.
Social security is an evil pyramid scheme. It should be ended ASAP… or at the very least privatized through INDIVIDUAL savings accounts.
10:25 is one of the weak points of this series; that’s not an NPV that’s total liabilities we owe over the next 50 or however many years.
That said, yes, SS+Medicare are cash-negative today, and that is not turning around.
However, we could just cut them entirely out of the loop– no more SS or medicare for anybody. Tough luck.
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if glass stegall was in effect regular cmmercial banks would not have bought these toxic derivatives. only investment banks would have failed, the mess would not have been as large.
@mrzack888: For regulations to work incentives have to be properly aligned and they must not be too onerous. We could start by going back to bond investors paying the Credit Rating Agencies instead of the bond issuers. If this was never changed in the late 1970′s, I am convinced the AAA rating of toxic CDO bonds could not have bubbled up to such a catastrophic extent.
the government have been bought off by the new world order. but that doesn’t mean the idea of government or proper regulations couldn’t work.
@mrzack888: I didn’t mean to imply G/S applied to the S&L’s. My point is speculation pops up in many forms and many avenues because of FED/Government money policy. Where was the NY insurance commisser when AIG made its wild bets???
Glass stegall was to prevent commercial banks from speculating. it had nothing to do with savings and loan. savings and loan crashed because government bailed on them, which it never should have been involved with in first place, but glass stegall was a regulation law. simple and effective.
mrzack888 : No, Glass-Stegall would not prevent this, maybe only slow it down. The force of money creation to finance public debt is the fundamental power driving credit markets. The Savings and Loan Bubble and Long-Term Capital Managment (what a name!) happened with Glass-Stegall.
Yeah it’s going to be a rough time to say the least but when the baby boomers lose their power and the younger generations come in it will end up fixing the system.
It’s so simple that it’s hard to fathom. Re-watch it, you’ll come to the same conclusion that the system is broken
haha
@3oMethylmorphine
Simple: It is a giant pyramid scheme. As such, it MUST end. There is no other outcome.
We are totally fucked.
Great series of videos, God help us all when the dollar crashes…
Fed just announced it’s gonna keep the interest rate at 0% another 4 months or so. Do you know what banks do when they get 1B? They turn it into 60B by the time it’s done. They can borrow free money and lend it out at 60 times the rate plus interest and the expectation to be paid in full. These are dreadfull times to be on the Earth.
All the government has to do is push +1000 on a computer, only %3 of money actually exists as paper.
$50tn debt?? Where did all of this money go? Did this money ever even exist?
This system is going over my head a little (I will be re-watching the course) but it seems even to me that this system is broken.
glass stegall could’ve prevented this whole mess. what was ONE regulation that needed to be kept. it was private hands of the federal reserve that kept interest rates low. PRIVATE federal Reserve might I remind you.
regulation brought us down
Also, companies like GM and Chrysler would have had to of been bailed out regardless if the stock market fell. It was already baked in the cake and the only relevance the market falling had to do with their bailout is it gave government an excuse to do it now rather than sometime in the future.
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