Debt Rattle October 2 2015

[Raúl Ilargi Meijer]

Edwin Rosskam Service station, Connecticut Ave., Washington, DC Sep 1940 • ‘Destruction Of Wealth’ Warning Looms Over Stocks (MarketWatch) • Key Globa
[See the full post at: Debt Rattle October 2 2015]

[Dr. Diablo]

“Over Half Of China Commodity Companies Can’t Pay The Interest On Their Debt”

So? This ain’t capitalism. They’ll say they can’t pay, erase the debt, and keep the factory. Who suffers from that? Except for some disruption, not China–they re-set the money accounting, but have the factory, the workers, and the market. That’s the definition of owning “tangible goods” in a monetary crisis. If you give them guff, they’ll build a new aircraft carrier every 30 days with their factories and come talk to you.

So who loses? The west, or rather the people who are owed that Chinese money that won’t be paid, but assets whose owners won’t just be paper-shuffled like China–or like all bankruptcies, really. Winners are those who kept real things, losers are those who are based on paper wealth and unsustainable promises. Definition of east and west.

[Author]

Posts