There has been a lot of economic news out this week about Detroit and the bankruptcy it filed. There is certainly no shortage of blame that has been placed for the ills that caused this bankruptcy and, to some extent, each of these arguments probably have merit. The root of all of these troubles, however, is one thing: corruption. Corruption that is caused by the manipulation of money and how it is used and abused and distributed and misallocated. The primary vehicle for executing this misallocation is a through debt and credit and lending. Our country has become addicted to debt and borrowing and it has infected our world with a confused sense of right and wrong.
Unfortunately, the problems that Detroit had and has are pre-cursors of the problems that many cities and municipalities in our country will face too. Our federal government will not be exempt from these issues either.
I really THOUGHT that I had a good idea of finance and banking and lending after having graduated college with a degree in economics, worked for banks and finance companies for a few years, and then got into the mortgage lending business 20 years ago. BUT, until I really started doing some more thorough research and critical thinking, I realized that I really only knew as much as I was “supposed to” know about how banking works. I am just bringing some of this up because I think these stories (Detroit, DPS having trouble with it’s funding, the State of California’s budget problems, QE, QE2, QE3, and all of the other financial woes our world has been dealing with for the past 5-7 years) are all perfect opportunities to examine how and why these things are occurring on a broader and more frequent basis. Google some stories about money and it’s history and try to avoid the mainstream media’s censorship of topics (there is too much reason for them to twist the story). Critical thinking is no dinosaur!