Comments on: We don’t want people to delever http://www.swampreport.com/economy/2544/ Political, Economic, and Finance related commentary. J.D. Swampfox Associates report on battles for prosperity against the "Tarleton" of big government. Thu, 19 Jan 2012 05:47:41 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Stock Trader http://www.swampreport.com/economy/2544/comment-page-1/#comment-454 Stock Trader Sat, 03 Oct 2009 01:20:58 +0000 http://www.swampreport.com/?p=2544#comment-454 The problem is that the debt needs to increase exponentially to sustain the GDP growth. That is NOT going to happen. When GDP growth stops, that scares people and businesses. They stop investing, they start saving, they start paying off debt. Deflation feeds on itself. It is a healthy thing. Government should stop trying to avoid the depression. Entire nation borrowed non-stop for the last 50 years. They inflated the money supply. (What a sucker monetary system, eh?) What were they thinking? When the pay back time arrives, it is natural to have a depression. It is like death. When you get old, you die. It is part of the nature. There won't be a painless way out of it. People should pay attention to how the government is shifting who bears the burden of the crash: http://www.tradingstocks.net/html/housing_market_bubble_bust_cyc.html The problem is that the debt needs to increase exponentially to sustain the GDP growth. That is NOT going to happen. When GDP growth stops, that scares people and businesses. They stop investing, they start saving, they start paying off debt. Deflation feeds on itself. It is a healthy thing. Government should stop trying to avoid the depression. Entire nation borrowed non-stop for the last 50 years. They inflated the money supply. (What a sucker monetary system, eh?) What were they thinking? When the pay back time arrives, it is natural to have a depression. It is like death. When you get old, you die. It is part of the nature. There won’t be a painless way out of it. People should pay attention to how the government is shifting who bears the burden of the crash:

http://www.tradingstocks.net/html/housing_market_bubble_bust_cyc.html

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