Comment: It's not confused, it's interrelated

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It's not confused, it's interrelated

As you know, both the cash flow and the long term debt affect each other. Solve the debt and you solve the cash flow. My suggestions were generalized and leading towards solving the long term.

Yes, SSN is pay as you go and a sinking ship but that doesn't mean that a genuinely good solution couldn't come along and be used. Just like when people stopped using Netscape because another browser was better, if some solution could be created where people could save/earn for their retirement in a magnitude that dwarfed SSN, would people really fight so hard to keep it? I think not. If you look at the fundamentals of the process, they just want to earn a fair return on their savings. Right? So, why can't that happen today? I say it's because the banks and mega-corporation are all getting the 1000:1 returns while the people are getting common shares with returns that don't even beat real inflation. Stop that and let the people invest directly in companies for the 20% or higher returns that are real. Give it a little time so the savings rate can rise and the debt rate can fall and you'll see earlier retirement which will reduce unemployment.

Healthcare is so F'd up now it's not worth keeping. Doctors and hospitals are more paper pushers than medical care professionals. Drop ALL the paperwork, create a private, secure software program for medical records to be shared by the patient and doctor only, make it quick to use and let them focus on preventative care more. This will drop the costs by more than half. Then allow private group pool insurances to cross state lines and you'll see costs plummet. (I'm convinced group pools aren't viable because they need >10 million people to cover unscheduled expenses by the pool but no state will have that many people joining one pool. = Pools effectively killed.)

Are you trying to say the Fed doesn't profit more than 6% from the money creation process? They have insider knowledge that goes way beyond that measly number. They have control powers that can sway global markets. I could go on but the powers they have are essentially immeasurable. That's just wrong. Money creation should not be gamed at all. I don't care if it's a government function, bitcoins or private competing currencies as long as the rules are followed with no chance of gaming. Those rules should be that there is a stone hard limit on its creation with very predictable trends, along with the other attributes of divisibility, portability, etc. Most of all, it should not be loaned into existence either at the government or commercial bank level. That's nothing short of giving the 'lending' authority future ownership of all assets.

Personally, I think Bitcoin could very nicely take over all global currency (not withstanding the technical bugs it still has, of course.) I love the idea of private, instant, global, free transactions with guaranteed predictable future supply numbers.

I couldn't disagree more that derivatives aren't a problem. I think they are the height of "lending out something that isn't yours". All forms of this type of lending (including fractional reserve banking, leveraged deals, naked shorts, future options, mortgage securities and even CDS swaps and other forms of insurance in the game)... they're all criminal. I can't sell you my neighbor's truck and later go buy him a replacement without going to jail so why should it be legal in other transactions? I can't insure my neighbor's truck and profit when it blows up. I can't profit from bets with other people's money (and not pay taxes on it). All these activities are zero productive in the population's real world. They don't do one bit to help build a car, a bike or make a loaf of bread. In fact, they all rack up the expenses on those that do build things. They're a parasite on society and the sooner they're gone, the sooner real producers will take their proper place in society. Until then, the unrest will grow. I'd hate to be a rich trader that got outed after TSHTF.

Side question: Just who are you saying will ultimately pay off the $200+ Trillion in derivatives when there isn't enough moolah in existence? For someone to earn it, someone else has to pay for it. As it stands now, it's being robbed from corporation profits and the stock market. Hopefully you can understand how this is a hidden tax in a way similar to inflation being a hidden tax.

Would increasing the reserve requirement not reduce fractional banking? Say a new law was passed that says the requirement is 10% and increases by 5% per year until full. In 18 years, no bank will be insolvent - is that slow enough? They will be forced to lend hard money from hard deposits. Why shouldn't this happen? Just because the current charts show little to no inflation from the QE's doesn't mean it won't hit at some point in the future. And why would a 'serious money supply contraction' be such a problem? It's only the gamers that lose. Those with assets and profitable businesses would be fine. If you run your life on leverage, you deserve the risk you took, period.

Agreed on shadowstats. I just would like a private org like a CBO to also do some drill-down investigations like applying "I Pencil" to inflation and unemployment stats. I'm convinced that many of these type of market problems include positive feedbacks that are self propagating.

I realize you're of the stock trading mindset but I'm trying to look at all this from the standpoint of the 1890's or so. Before corporations were formed for every company. Before investments became institutionalized. Before inflation became the government's main paycheck. Back to a world where people invested locally (extend that via the internet but keep accountability), saved hard value and only paid for genuine needs. If we can see how that world would have played out through the industrial, the information and now the communication revolutions, I think we'd see massive savings in every pot, not a chicken. And as a result, I think most of the world's evils couldn't not have manifested in the first place.