Understanding the Global Economic Crisis

I am not as new to the site as it seems; I could not access my origional account due to password problems. I have been lurking around since 2002. I usually keep up on economic threads especially in the past 2-3 years when the recent down-turn started. It seems that all of the ATS threads and other research that I have done have given me the same result--only outlined symptoms of a ailing global economy rather than pointing at the cause. For those with a better understanding, please explain it to me. I have outlined my problems with the current situation below.

The global economy would appear to be a perpetual machine. How can it stall when the supply, demand, and resources are still present

Where did the money go? The government (state and federal), corporations, people, or other countries do not appear to have it. Banks do not have it to lend to buyers; buyers do not have it to buy from sellers; banks cannot make money without interest from lending; sellers cannot hire if products are not sold. I could go on and add more entities in this chain.

Even the loose lending practices that have been partially blamed for this crisis should self-correct. Do not make the payment; Bank reposesses and takes a loss when selling to a new and more responsible customer; Bank gains from interest to new responsible customers. For this reason, I do not believe that loose lending, though a bad idea, was the principle cause of the problem.

I would understand more if we had reached a point where supply and demand were out of balance. However, consumers still want the goods; suppliers still have the goods to sell; workers still want to work for the suppliers. It seems the three could work out a deal.

in my opinion i think the govt is trying to take the dollor out of circulation to bring in a new currency the north american union plot has been in play every since the the early 90 if not early as you can see big banks are folding up thats what the federal reserve want to see so they can come in and buy up all the banks or have significant control of the remaining money supply once they conrol the entire money supply the new world order is in play and the new form of slavery has begun so i think they are taking the money out of circulation

Originally posted by supertrot
Where did the money go?

That is the multi-trillion dollar question. Where did that stuff go that it needs 25 times the amount to stop world hunger. Who is collecting?

reply to post by Anonymous ATS


But this post implies the current crisis is just a US one and being used as a means to get rid of USD. Is it being suggested that this whole crisis was engineered to enable some world elite to get rid of USD and replace it with something else?

On the question of money. You have to consider that a vast amount of the global money supply is not in hard cash or financial instruments, but just electronic with computers and systems moving this electronic cash from one place to amount.

You place an order with an on-line book store using your credit card to pay. The on-line book store pays its workers by direct debit in their bank accounts, pays the shipping company a similar way and pays the book printers the same way.

Has any hard cash changed hands? And how many of us use cash when we are shopping?

While I would accept to a degree some of the points made in the OP's post, the demand for consumer goods is larged based on the 1st World and made by those in the 2nd and 3rd worlds. So if those of us in the 1st world for what ever reason are concerned with our personal futures and the ability to pay for the luxuries, our spending habits will change and this is the main driver for a drop in demand for consumer based goods. Just look at how many people across the first world have lose their job or have a fear of losing their job. This will influence their spending habits.

Either:

1) The "Money" never existed...it's all 30x leveraged "Bits & Bytes" in someones Computers...you can't get/ask for your $300 if it's really only $10...can you?

2)Welcome to The Real Matrix: Time for The Red Pill?
www.abovetopsecret.com...