by Charles Hugh Smith
Of Two Minds
The central illusion of Central Planning everywhere is that distributing insolvency
will somehow magically create solvency.
I recently received a brief but powerful summary of the global financial system’s intrinsic instability and unsustainability from correspondent Ray W., author of A Change in the Weather.
One key point is that spreading insolvency (debts that will never be paid back, debt based on totally phantom assets) over a populace does not somehow conjure up a solvent financial system or State. Distributing insolvency only destroys the last remaining islands of solvency in a bankrupt world.
The entire global financial “recovery” engineered by central banks and Central Planning is based on the absurd notion that if we spread unpayable debt over the entire body politic (be it a nation or regional entity such as the European Union) then that distribution will somehow make the debt payable and the phantom assets real.