Tag Archives: Defaults

Money has been borrowed on the understanding that it will be paid back with interest.
Money has been put into pension funds on the understanding that the pension pay-out will be (a lot) more than paid in.
Insurance companies take premiums and invest them so that large pay-outs can be made.
All of the above is based on the idea of growth.
A lot of growth.
These `money functions` are at the heart of modern civilization.
When these functions come under pressure, government will come in behind them with guarantees (to save civilization).
When these guarantees are seen not to be enough……..They will instruct their central banks to print up the money to fill the holes.
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/10/Tue4Oct-111.mp3|titles=Tue4Oct '11(1)]
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/10/Tue4Oct-112.mp3|titles=Tue4Oct '11(2)]
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/10/Tue4Oct-113.mp3|titles=Tue4Oct '11(3)]
14:43 min.

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