{"id":27520,"date":"2017-11-01T14:58:27","date_gmt":"2017-11-01T19:58:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27520"},"modified":"2017-11-01T14:58:27","modified_gmt":"2017-11-01T19:58:27","slug":"the-biggest-ponzi-in-human-history","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27520","title":{"rendered":"The Biggest Ponzi in Human History"},"content":{"rendered":"
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The Biggest Ponzi in Human History<\/a><\/span>\u00a0<\/span><\/h3>\n<\/div>\n<\/header>\n
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\nJean-L\u00e9on G\u00e9r\u00f4me Slave market <\/b>1866<\/center>Here\u2019s the story in a nutshell: Ultra low interest rates mark a shift away from people\u2019s wealth residing in their savings and pension plans, and into to so-called wealth residing in their homes, which are bought with ever growing levels of debt. When interest rates rise, they will lose that so-called wealth.<\/p>\n

It is grand theft auto on an unparalleled scale, and it\u2019s a piece of genius, because while people are getting robbed in plain daylight, they actually think they\u2019re winning. But as I wrote back in March of this year, home sales, and bubbles, are the only thing that keeps our economies humming.<\/p>\n

We haven\u2019t learned a thing since March, and we haven\u2019t learned a thing for many years. People need a place to live, and they fall for the scheme hook line and sinker. Which in a way is a good thing because the economy would have been dead without that ignorance, but at the same time it\u2019s not because it\u2019s a temporary relief only and the end result will be all the more painful for it.<\/p>\n

Whatever Yellen decides as per rates, or Draghi, it doesn\u2019t really matter anymore, this sucker\u2019s going down something awful. This is a global issue. Housing bubbles have been blown not only in the Anglosphere, though they are strong there, many other countries have them as well, Scandinavia, Netherlands, even Germany and France. It\u2019s what ultra low rates do.<\/p>\n

First, here\u2019s what I said in March:<\/p>\n

Our Economies Run On Housing Bubbles <\/a><\/p>\n

What we have invented to keep big banks afloat for a while longer is ultra low interest rates, NIRP, ZIRP etc. They create the illusion of not only growth, but also of wealth. They make people think a home they couldn\u2019t have dreamt of buying not long ago now fits in their \u2018budget\u2019. That is how we get them to sign up for ever bigger mortgages. And those in turn keep our banks from falling over.<\/i><\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Biggest Ponzi in Human History\u00a0 Jean-L\u00e9on G\u00e9r\u00f4me Slave market 1866Here\u2019s the story in a nutshell: Ultra low interest rates mark a shift away from people\u2019s wealth residing in their savings and pension plans, and into to so-called wealth residing in their homes, which are bought with ever growing levels of debt. When interest rates […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,1806,130,1583,16822,1479,2942,8664,13924,5177,834,1939],"class_list":["post-27520","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-bubble","tag-china","tag-housing","tag-interest-only","tag-netherlands","tag-ponzi","tag-property","tag-raul-ilargi-meijer","tag-the-automatic-earth","tag-us","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27520"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27520\/revisions"}],"predecessor-version":[{"id":27521,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27520\/revisions\/27521"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}