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    Re: The Coming Savings Meltdown Archived Message

    Posted by Rich on July 31, 2019, 12:49 pm, in reply to "The Coming Savings Meltdown"

    "But this artificial life support to keep the debt overhead afloat is nearing the reality of the debt wall. The European Central Bank has almost run out of available euro-bonds to buy. The new fallback position to keep the increasingly zombified U.S. and Eurozone financial markets afloat is to experiment with negative interest rates.

    Writing down savings by a few percentage points helps bring the glut of creditor claims marginally back towards balancing bank deposits with the ability of debtors to pay. But such marginal moves are rarely sufficient. A quantum leap is needed.

    Governments have long followed a basic guideline when faced with a need to devalue their currencies (for instance, as the dollar was devalued against gold in 1933). Nothing is worse for a politician or central banker than to be overly shy when it comes to devaluation. The motto is, “Always depreciate to access.” That means at lest 25 percent, often a third when a basic structural adjustment is needed."


    Is he saying that the savings of millions of ordinary people are going to be given a hair-cut of between 25% and 33% by these bastards in order to finance a huge debt write-off for the Zombie banks and bent/bankrupt corporations? Or have I totally misunderstood what he's on about?

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