originally posted by: ramsontop
So should I withdraw all my 401K out and take huge penalty in order to keep my family afloat and avoid risk of losing a lot of money? I've been
wanting to do this for years (listening to ATS predictions, of course) but haven't done it yet. Seriously considering doing it.
I think you have to ask is the present economic system sustainable. The main idea that makes it works, is that the credit, lent comes back in
interest. Which increases the original amount of cash. But in reality it just inflates the original amount of cash. The illusion that you have
actually more cash than you started with, gives you a problem, it has to be lent out again, just to keep even, if its not its falling in value in real
terms. Which means at some point , it will be unsustainable.
This having to lend out, caused the Greek economy to tank as it borrowed so much, it couldn't pay that interest back, so had to accrue more loans and
debt, just to pay the interest. Squeezing the Greek economy to perform on its loans, in reality eat at the Greek economy, by contracting it , without
the hope of any growth. The terminal state of the Greeks, is the same, as all indebted nations, the loans are, causing contraction of their economies
. Their is only one way out, and that is bankruptcy. If Bankruptcy occurs, then the lender finds himself in the same state.
Any market is finite, the world economy is finite, , once its gone global, any meltdown will have global consequences. The Greek economy is a
distraction from the main problem, which is China. If China coughs the whole world will now get terminal flue. The ability of the Chinese to accrue
wealth, without the balance of back trading, seems to part of the historical way China's character does business. They have too much money, this
imbalance , is unprecedented, they know this and are holding metals, but having sucked too much money from the worlds money supply, they have
committed economic, suicide, because the world is running out of money to buy their goods, and the same as Greece, will end up with another problem .
You can see it in Africa, the Chinese are literally taking it over, because they know that the only way they can pay is by holding the only major
asset worth anything,their land , i doubt whether we have seen anything yet.