1. The banks create money and they created too much based on assets that were not worth anywhere near their valuations. Mainly due to humanity's greed. No one wants to better the world for the next 100 years when they can enjoy money in their 30s/40s now! No sense in preparing for a future economy when you won't be there to enjoy it.
2. The baby boomers have been patting themselves on the back for 40 years on how well they have built the economy. On the face of it everything was amazing. The world was a completely different place compared to 1970 - they surmised that capitalism worked and greed was good!
Unfortunately everything they build was using debt - which was based on an expectation of future improvements, growth and a straight line graph of good happening in the economy. We know from history that the world doesn't work that way but they seemed to ignore these lessons.
3. If we take away the effects from debt the world economy barely grew to sustain the population growth. In other words we stood still, all the computers and machines and factories and management consultants didn't seem to improve our productivity faster than the population that we serve on planet Earth!
4. Lastly the 0.1% of very wealthy people on the planet don't want to lose any money and so they try and pretend that all the money they gave to poor people as loans is still worth the same. Like a cancer the problem continues to grow bigger until it kills the patient. The politicians don't have the tools of a skilled surgeon to resolve this so it will destroy government upon government until we find a new system. Let's hope the new path isn't right wing fascist! Remember when Germany were given a War debt they could never repay in WW1? No? Well it gave rise to a lovely fellow by the name of Hitler. He surmised that he could never repay the loans but if he killed all his creditors then there wouldn't be a problem!
5. This kind of monetary change leads to social volatility and creates instability in the world and when people become desperate they look for "the answer" from anyone who they think can help them. We didn't learn from our economic mistakes of the past; do you think we will learn from our world war mistakes? Time will tell...
6. This is the end of the business cycle. As we head into 2012 things will get worse until we are forced to change the way our system works.
7. FYI for every downward cycle there will be an upward one. The best we could have hoped for was to prevent deep troughs and high peaks but then we would be looking out for the future after we die....and no one does that!
8. All those baby boomers born in the 40s/50s/60s are now about to start retiring and there isn't enough money from our taxes to actually pay their retirement income. So objectively, a war which kills off part of the older generation would be perfect for wealthy investors...let's see if they can make it happen! [NOTE: No one would actually want this to happen - but then no one seems to want a war and it happens anyway]
9. The government keeps promising without ever delivering and the public don't have another alternative to choose from.
Comments welcome.
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