Its So Simple

The following is a comment by a reader of a financial web site.  It is so to the point I filched it and reposted here:

“The system cannot be saved.

“Simple as that.  Regulation WILL NOT SAVE IT.

“You cannot REGULATE AWAY mathematics.

“We have an exponential growth system which requires that credit continue to grow endlessly.  Taking us back to where PEOPLE are the sole originators of credit is going to collapse credit outstanding and deflatively destroy the entire money supply.

“There is TOO MUCH DEBT out there and every last dollar of it REQUIRES interest service!  That means that there must at some point be MORE debt elsewhere that finds its way into the hands of the payors in order to pay the interest service.

“A monetary-system-as-debt IS a forced exponential growth animal.  There’s no way around this; I can demonstrate it in a minute as it is simple mathematics.

“Credit growth took off on its own when they figured out how to originate without using PEOPLE, iow, CDOs, MBSs, CDSs, and all the other synthetic instruments.  Erecting “regulations” to stop this will collapse credit creation back to 40 years ago.  Doing this would cause the EXISTING debts’ interest service costs to consume the entire money supply.

“All of this because of ACCOUNTING ENTRIES!  We have let the fuckin bankers BECOME the barbarous relic strangling our society!

“If you review the anti-gold standard commentary more than 100 years ago, you see the same issues…an inability to find specie to service monetary needs imposed by DEBT.”

There is really little more to be said. This system is self-destructing beyond recovery.