(an article in b@d English)
Let me tell you why I think that the global economy will collapse. Because they violated requirements to be stable. The economy, based on the loan has many advantages and is developing rapidly. But it is extremely fragile. Symbol of the banks. They are doing very useful work that they take some money from depositors and hand them out to borrowers. But banks are very vulnerable because the slightest panic can cause a run on deposits that break them completely. I.e. banking system can only exist in a very careful balance and careful protection. Even then, there are risks of unanticipated events. At the same story in other key segments of the credit economy. Everything is very fragile. Beneficial and profitable but fragile.
Currently (as a result of several decades of political crap) this fragile system is subjected to fierce attacks. I.e. not only did not protect but are also destabilized. The probability of survival is very low. The main destabilizing factor is the depreciation of paper money, which are the basis of the credit economy. If they spill, everything falls apart. Credit economy in these scales can be developed based on the gold standard. You just will not have enough money for loans. Now there but this paper money. For the system to work, the money must be reliable and structures that guarantee them.
The structures are not stable. On the horizon are unannounced waves of bankruptcies. Everything is full "crash" if only because it blocks the turnover of capital. Credit economy works only in very strong capital turnover. I.e. same money is used dozens of times for different things. And attend dozens of locations simultaneously. Mystical sounds right :) That's our economy, but the rate of decline in turnover, almost all chain themselves to bankruptcy. I.e. construction credit economy to collapse.
Before collapse are paper money. In an attempt to extinguish the fire, is taken huge monetary emission.
Theoretically, one can counter the other - Bankruptcy can act anti-inflationary. A printing press money can work against bankruptcy.
But both equally strong ruin CREDIT ECONOMY!
It requires both not print money, ie money to have secure values and no failures. Each of the two will destroy everything because they will destroy confidence. And now get both.
Therefore, I think the credit goes economy. What will come next - a return to the period before 1929. This cost. Politically I hate to think what kind of distractions can get in stupidity.
"Thoughts in b@d English" is a rubric of Dobri's Ratings created with the use of Google Translate. As my (Dobri's) native language is not English, so sometimes I am very slow in preparing a good English text. At the same time I have some thoughts to share. So I decided it is better to tell something in bad language, than not to tell it. In my native language I can write and express my thoughts much faster. So until my English becomes as good as my native language, I will use this rubric, containing flash-news and comments, translated fast to English only via Google Translate. This group of articles will be in separate RSS - out of the general site-RSS. The other sections of the site will be in better English :)))