www.ritholtz.com/blog/wp-content/uploads/2009/03/debt-out-by-sector-white.jpg

Any and all attempts to revive the economy via traditional means, including quantitative easing will fail. The picture above is the crest of the wave. But it does not even capture all of the leverage in the system. As you can see, the rate of debt started out in a linear fashion and then embarked on a new hyper curve.

I am unsure if politicians are dumb or playing dumb. I am certain that the elite bankers understand what we have shown perfectly. The average person has no idea. You cannot fix what has happened unless you look at the entire world of finance differently. Money has to start taking on its role of yore. Once you attach an interest rate to harboring it you will always ride a wave and crash.

One person said eliminate the Federal Reserve. You have to eliminate all banks in their traditional roles. All of them. Neither borrower nor lender be. Productive work cannot be used to pay down interest. Bernanke, Trichet and the lot of them will either take their ball and go home and let capitalism reign or we will all embark down a road of anger and frustration for decades.

Remember, 1 penny compounded daily at a few percent since the time of Christ is more money than the world has ever seen. The model is flawed. Banks must become matchmakers, facilitators and get paid a fee for such. Call them headhunters. Money cannot become a store of value. It has to remain constant. Let the world grow wealthy by what it can produce not by what it charges in interest. It is high time the world did away with debt, it has worn out its welcome.