Decent explanation of why we're drowning in debt and why the rich are getting richer and the poor poorer, but though understanding the problem is the first step necessary to solve it, how to solve this except with a total economic collapse isn't explained.  Of course you need debt forgiveness, but "wealth" of the rich IS the debt of the poor.  Every dollar of debt on J6Ps balance sheet is a dollar asset of the balance sheet of some rich scumbag who has some securities or bonds in his portfolio he collects the interest J6P pays.  The TBTF Banks and Federal Reserve are just the intermediaries between the borrowers and the lenders, who collect on the spread, the difference between the interest they pay to borrow money vs what they charge to loan it out.  Wipe out the debts, you wipe out the assets with them.

Add to this also the fact the debt has been rehypothecated many times over, where debt is used to buy one asset which then is used as collateral for debt taken to buy another asset...rinse & repeat % or 10X over.  Anywhere in the chain somebody goes bankrupt the whole house of cards comes tumbling down as the creditors demand assets be liquidated to pay debts.

Once the cascade gets rolling, liquidating assets to pay of the debt becomes increasingly difficult, as you can't find buyers for them.  An office building sold 6 years ago with a $250M mortgage on it goes at auction for $1.5M.  The other $248.5M is a loss the bank has to write down.  Except the bank doesn't have $248.5M of its own money, it only has 5% of that.  The rest is money that has been loaned to the bank in the form of deposits.  When the bank goes belly up, depositors lose the money, except for $250K each covered by the FDIC.  All the rest of the debt goes into the RTC, the Resolution Trust Corporation.  This is a massive "Bad Bank", where unfunded liabilities from bankruptcies gets dumped.  Like Lifetime Pensions from bankrupt biznesses.  Pensioners then have their pensions slashed.  Exactly where the RTC gets money to pay out anything at all is something I have never been able to figure out.

So anyhow, because nobody really knows how to exit this loop without causing a massive crash, they keep on tryin to loan out more money, but find it increasingly difficult to find credit worthy borrowers.  Interest rates rise, you get your crash anyhow.  That's where we are now.  It's coming, Everybody Knows.
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https://www.analystnews.org/posts/how-our-global-addiction-to-debt-has-widened-inequality-hacked-democracy-and-crippled-the-world-economy


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