And that is why interest rates are negative. Keep stacking 'till they (TPTB) cry uncle and raise rates to the teens (at the very least)
Governments can reject the economic laws for while like the man in my example above rejecting the law of gravity, and jumps off the window of Empire State Building, but that is the last thing he will ever reject. Those who view what is left of him when he hits the pavement are very unlikely to follow.
Families Taking on Debt to Buy Cars, Go Back to School Friday December 9, 2011 Low interest rates convinced consumers to take on $1.6 trillion in auto and school loans in October, according to the Federal Reserve's G-19 report. This was a 5.3% increase over September, and the highest in two years. http://useconomy.about.com/b/2011/12/09/families-taking-on-debt-to-buy-cars-go-back-to-school.htm This is the real problem in my estimation. [img=DISASTER]http://www.skeptically.org/sitebuildercontent/sitebuilderpictures/us-private-debt-to-gdp-20-09.jpg[/img] 1.6 Trillion, in a single month. Astonishing. The public debt can be handled in a number of ways and need not lead to anarchy, I cite the British debt from 1900 going forward. UK Total Government Debt in the 20th Century The National Debt began the 20th century at about 30 percent of GDP. It jerked above 150 percent in World War I and stayed high. Debt breached 200 percent during World War II. Debt declined to 50 percent of GDP by the 1970s and dipped to 25 percent by 1990. The National Debt began a rapid increase in the aftermath of the worldwide financial crisis of 2008. http://www.ukpublicspending.co.uk/uk_national_debt As we can see, a nation need not decline into an Argentinian mad max scenario just because its public debt exceeds 100%. Japan's public debt is currently around 200% I think. And the nation that has its currency as the world reserve, America, has quite a few aces up its sleeves. A lot of bad public debt can be written off in times of war for example. The English did it time and time again. Private debt is another matter altogether and that is what creates these depressions and upheavals I believe. When the point is reached where the consumer seriously stops borrowing, then the economy implodes. And what triggers this? Fear I think, like a big stock market crash, etc.
the comments section under the zerohedge article are classic haha "we have finally joined the 100% club USA USA USA" lol
