posted on Oct, 8 2008 @ 12:59 AM
The problem is not one of credit, although I credit you for wishing to believe this problem is material and therefore suceptable to direct action.
It started as a problem of trust. It remains a problem of trust. They have patched the credit reaction and the trust action which caused it remains.
The resultant decline of civilization world wide also remains in motion.
For example, lets say you are a lender and a large sum of cash makes it's way to your hands for lending right now. There is the ship full of grain. A
sure bet you might think. Not so.
You deliver the ship to the small fictional nation of "Reliance". You are paid for your shipment over time. Will they be able to pay for the
shipment, or will you loose everything to the financial collapse of the nation of Reliance?
Suppose Reliance is the most stable nation in the world. How can you loose? Well they pay you off for your load with next year's dollars.
How much will next years dollars be worth?
The US government just set the world into a state of hyper inflation. Chances are you still loose. Right now you have something real, something
tangable, you can eat wheat. You can hold it, it remains wheat, Wheat does not hyper inflate.
This is the problem we now face. The problem of Trust in each other's ability to control our lives sufficiently to repay a debt.
The problem of trust in the machinery of society to benefit us by letting go of what has real value now for anticipated value later.
The trust is gone.
What department of the government do you go to to have your trust restored?
What institution has a vault full of trust right now?
We live in a global economy driven by credit, and credit only works by the power of trust.
All transactions will now tend to tighten to a state more close to barter than credit. What will be left of civilization after that change? An
industrial society cannot work on a system of barter. Specialization prohibits the ability to barter for all needs.
The world is looking upon our politicians and seeing the degree of corruption we have brought into the foundation of the worlds economy. Our own
people no longer trust our government, why would any nation which is being dragged down trust US?
The US is rapidly becoming a pariah in the world community. Long after others have established a new order of trust among each other, we will remain
[edit on 8-10-2008 by Cyberbian]