Planet Debt: Part 2 with Dr. Joseph Farrell

Piggy Bank

“The supreme art of war is to subdue the enemy without fighting.”
— Sun Tzu

This week, Dr. Joseph Farrell and I resume our conversation on global debt (See Part I here) and what it means to nations, to financial markets, and to individuals.

Here are some of the points we cover in these reports:

  • Debt has made it possible for war to explode — and war has made it possible for debt to explode.
  • The #1 debt problem in the world is Japan. For years, hedge funds could borrow from Japan for 0% interest. We have squeezed the Japanese incredibly.
  • If you raise interest rates, you’re looking at soveriegn governments around the world losing a $1.5 trillion dollar windfall and having to pay real money to borrow.
  • The history of debt is very much a history of war. Historically, as long as you could borrow money to finance a war, you could get the population to go along with war…because they didn’t have to pay for it until it was over.
  • Why there is so much debt? One possibility is that it will turn everyone into indentured servants before they’re given access to much more powerful technology.
  • When more debt has been issued than can ever be paid off, you no longer have a financial system — it’s a control system.

In Let’s Go to the Movies, I will discuss Finding Vivian Maier, a critically acclaimed documentary about a woman who secretly took over 100,000 photographs that were discovered decades later. She is now considered to be among the 20th century’s greatest photographers. Directed by John Maloof and Charlie Siskel, Maier’s life and art are revealed through never before seen photographs and interviews. This is a remarkable story.

In Money & Markets, I will discuss current events in financial markets and global geopolitics. Please e-mail and post your questions on the blog for Ask Catherine.

Talk to you Thursday!