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Geithner and Summers Want More Debt Bubbles: The Result Could Be Catastrophic 1
JICWyllie
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1
4-16-2009 6:03 AM
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tags:
1-crisis
,
1-deflation
,
1-hyperinflation
,
2-consequences
,
2-record
,
2-risks
,
3-analysis
,
4-us
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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/b331fb0f-e34e-4ebf-b62f-4f22f08db906/D2153A3F-96D5-41D8-98DD-4AF33B2E303A/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/" href="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/" style="font-size: 11px;">www.alternet.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/">if over the next twenty years (the term of a typical and healthy mortgage) the economy is expected to grow by X percent or X number of dollars, then the total amount of twenty-year debts that can be issued should be limited to X. But if it's greater than X, then when the future arrives there won't be enough circulating money to repay the debt, because the economy (and the money supply) won't have grown as great as the debt repayment demand. The only two options are for debt holders to default (bankruptcies, foreclosures, etc. -- Depression), or for the government to suddenly increase the supply of money (inflation).</blockquote><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content7.clipmarks.com/images/clip-icon.gif" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/?page=2" href="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/?page=2" style="font-size: 11px;">www.alternet.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/?page=2">"Now" was "the future" when the debt was issued, but the economy hasn't grown to the point where there are enough dollars (in reality, enough value -- goods and services) to repay that debt. </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.alternet.org/workplace/136835/geithner_and_summers_want_more_debt_bubbles%3A_the_result_could_be_catastrophic_/?page=2"> Without regulating debt, a government will be taken hostage and an economy destroyed by for-profit institutions that are able to create debt without regulation (banks).</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;"> </td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/D2153A3F-96D5-41D8-98DD-4AF33B2E303A/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>
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