# Peak Credit



## UncleJoe (Jan 11, 2009)

http://usawatchdog.com/peak-credit-end-of-civilization/#more-8572

Could the credit crisis we face globally destroy civilization as we know it? Richard Duncan, author of a new book called, "The New Depression: The breakdown in paper money," says yes! Duncan claims the $50 trillion in credit expansion in the last 40 years must continue or the system will basically fall into complete chaos. In an appearance on the European version of CNBC last week, Duncan said, "If this credit bubble pops, the depression is going to be so severe, I honestly don't think our civilization could survive it." My question is why doesn't CNBC have this guy on in the U.S.? Maybe the possible scenario he is talking about is just too scary and really bad for selling stocks? Who knows, but it is well worth a listen and something you should know about. Please enjoy the video and discussion.





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## CapnJack (Jul 20, 2012)

I am figuring pretty much the same. I believe that the almighty dollar will be directly related to the SHTF scenario. (TBH I did not watch the video. I am at work, and while I have the freedom of the internet while I'm here, I have no sound. Will give it a viewing when I get home tonight.)


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## CrackbottomLouis (May 20, 2012)

Good video. I think they will do az Duncan says and keep it going for another ten years to delay the pain. At least I hope so. I could use a decade to prepare.


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## BillS (May 30, 2011)

The video was interesting. I agree with Duncan that the next great depression will collapse civilization as we know it today.

I disagree with Duncan's idea that the GOVERNMENT should borrow and invest trillions and they could create new technologies and new jobs. It was the federal government that made GM build the Chevy Volt. It's a car the federal government wanted people to have. Not a car the public wants to buy. It's been a total financial disaster. Governments don't have the capability of developing new technologies and new industries. That's the lesson of communism: it doesn't work. Russia's technology was based on whatever they could beg, borrow, or steal from the West. Just as an example, Russia still makes vacuum tubes.

The other key error he makes is that he assumes the government could borrow as much money as it wants at 2% interest. The fact is, the Federal Reserve creates 60% of the money needed to fund the deficit. It's only a matter of time before we have hyperinflation and the dollar collapses.


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## BlueShoe (Aug 7, 2010)

Yes, that guy is begging for more poison to cure poisoning. He needs a shoe thrown at him. And then we can tax air, and Sunlight and emotions. We must keep the music going.


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## UncleJoe (Jan 11, 2009)

BillS said:


> I disagree with Duncan's idea that the GOVERNMENT should borrow and invest trillions and they could create new technologies and new jobs.


That caught me off guard as well.  Anyone with their eyes open can see that all the QE's of the last few years have done nothing but push back the day of reckoning.


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## machinist (Jul 4, 2012)

I think he is grasping at straws for a solution. Or maybe they wouldn't have him on without some palliative to keep the sheeple asleep? 

Otherwise, I think he has it right. When the credit game quits working, the whole works stops. I don't know anybody who knows how to restart it all, either.


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## Immolatus (Feb 20, 2011)

Hes down with QE ad infinitum because its the only way to keep the charade going, what else is he supposed to say? Borrowing (in this case, CTRL-P) forever is the only answer. As long as the central banks can keep it up with while keeping the effects hidden, they will. It wont be the sheep (or even us 'enlightened' folks, hah! Go ZH!) that realize it first, it will be the 'bond vigilantes' that give us the signal. I think even they are losing their influence, as gubts begin to realize that the 'markets' wont continue to borrow from them forever, so they legislate it. See Japan and soon to be the EU fiasco, with Spain begging the ECB to lend them money which would in essence be the same concept.
I paused at this point because the Brit said something very telling.
While pointing out the moral hazard issue, he says "The Bundesbank, *WHEN* it gets its independence back..." *WHEN, not IF*. Maybe this is just my interpretation, but is he not saying that Germany exits the Euro? Or am I reading something into it thats not there or misinterpreting it? Not that we dont all figure this already, because they can continue to rape the PIIGS, but the citizen(izm)s on both sides will get screwed in the process, and the Germans wont stand for it for much longer.
Back to the end...
"Even if every cent of this is wasted"..."Could create new industries that they could tax"... Uh, really? All well and good, but at least he says it still would only kick the can down the road. Reinventing the wheel wouldnt stop this Titanic from sinking...They would have to come up with a darned good wheel...


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