Enraptures

An entire nation cannot borrow non-stop for decades and than hope that all will be fine when the pay back time arrives! When everybody is in debt, who are they going to sell their products and services to? Every potential customer will shrug and say he can't buy, he is in debt!

We don't have shortage of labor. We don't have shortage of products, or production capacity. In fact we have excess capacity. But we have shortage of demand. Why? Let me explain: We went into debt based on earlier prices, based on a higher level of money supply. A supply that was fueled by debt. Now in order to pay existing debt, we have to earn certain amount. However, the money supply is not enough. All of us cannot possibly earn enough amount to pay existing debt. Total money supply is less than the debt. In other words, we have shortage of money. This is a man made shortage. It did not have to be this way. This is a direct result of interest based monetary system and fractional reserve banking. Web of Debt by Ellen Brown explains the debt problem very well:

http://www.kondratieffwavecycle.com/web-of-debt/

Deflation cannot be avoided after credit inflation. Yes, FED prints money, but that goes to the Wall Street people to cover their losses, not the average Joe! We have printed 2 trillion since the beginning of time. And we have borrowed 50 to 300 trillion. Without more borrowing, it is impossible to pay back principal + interest of existing debt! All prices around you are inflated. Housing is going to go down more. Stocks are at the top of a bubble that is decades old. This is the result of credit inflation that FED has fostered for decades:

http://www.kondratieffwavecycle.com/credit-inflation/

When you look at 400 year of stock market charts, this bubble is like the famous old ones: Tulip Mania, South Sea Bubble. This is financial mania. The crash will go into history books!