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the money just evaporates for consumption

Right! A small fraction of debt repayment might show up as spending from financial sector executives' bonuses, but most, even of this money, is deployed back into more financial ponzi schemes. If it went back into investment for social overhead capital or domestic production capital it would help, but, with current financial realities, it is more likely to go the investments in the BRICs, where it generates better returns for the owners of the capital. Your (formerly) 1st world domestic economy only serves as a target for wealth extraction, not a site for wealth creation. This is true in Spain as well as in the USA.

Workers of the world, ....

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat May 21st, 2011 at 09:30:08 AM EST
[ Parent ]
I absolutely agree... It cna also be used to ver the asses, and cover the capital needed for banks not to blow up...

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon May 23rd, 2011 at 07:46:48 AM EST
[ Parent ]


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