Sunday, July 24, 2016

Hyper-Leveraging The World
"When you borrow too much money your life spins out of control. Individuals, families, and societies all live under the same set of economic laws, and suffer similar penalties for violating them. The fact that this bit of kitchen-table wisdom is lost on the people in charge just reinforces the impression that they’re completely clueless, which in turn elevates the fear that the average person experiences when police are systematically killed and random assemblages are attacked with weapons ranging from assault rifles to tractor/trailers to axes. Or when interest rates fall to the point that retirement savings earn literally nothing while assets with unacceptable levels of risk (junk bonds, growth stocks, leveraged ETFs) are making fortunes for speculators. Since the process of hyper-leveraging the world is shifting into an even higher gear as this is written, expect elites to be surprised again – and regular people to be even more terrified — by the result."
- John Rubino*
LINK HERE to the essay

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