http://rt.com/shows/keiser-report/episode-446-max-keiser-420/ In this eposide Max Keiser reveals how the price of oil is manipulated along with interest rates (LIBOR) and even the price of gold.

He also has an interview with Dr Michael Hudson about his new book,'The Bubble and Beyond'. Dr Hudson notes that we are now in "Debt Deflation" Even though banks are loaning more money at low interest rates, prices for essentials are falling but unemployment is rising,however taxes to service Govt debt are increasing.People think cheap loans are great but are borrowing much more to buy over inflated assests.Hence we have deflation caused by too much debt.

Most of this new money created is inflating the property markets and share markets.People do not have enough money to buy beyond essential survival goods because of debt and taxes.Thus the economy will not grow, however there is $ trillions available for the derivative market.Our banks derivative exposure has grown from $14 trillion in 2010 to $20 trillion today.Why do we have a shortage of money when Central Bankers are creating so much gambling money?

Dr Hudson also notes that Corporations are not borrowing to expand business but to make money via take overs and speculation.People are spending 40% of their income to service debt on over inflated assets.Student loan debt now exceeds credit card debt.

What are your solutions?

What are your solutions?
Arjay,
Don't vote for any party that has lawyers for candidates. Learn how to do petitions & pester the Government incessantly to lower the fuel tax & reform to flat tax & introduce national service. The flow-on from that alone will sort a large amount of the problems we're facing now. What this means is to restore discipline which will bring down the incidence of living beyond our means. Don't think so ? Have you tried it ? No ! Then don't discredit the proposals ! Make people accountable via referendum. There's so much you can do if you only have the guts to put your details onto a petition form.

One solution, I humbly suggest, would be to question your sources more rigorously, and not take everything they say at face value. Which is, of course, what you tell everyone else they should do.

For a start, question this:

>>Why do we have a shortage of money...<<

I thought the problem was that there is too much of the stuff being created? That is what you have been telling us, after all...

>>People think cheap loans are great but are borrowing much more to buy over inflated assests<<

Another solution would be for you to educate yourself on the fundamentals of finance, so that you could understand just a little of what goes on around you. It still puzzles me why you resist doing so - although it could be that you are concerned that if you do start to understand it, you will realize how much you have managed to get wrong over the years.

That would be a major mental block to overcome, I have to admit.

Another solution would be for you to educate yourself on the fundamentals of finance,
Pericles,
That is like saying "don't do as we do, do as we tell you to do", The so-called complexities of the finance market are nothing more than a criminal deceiving by greed mongers & incompetent Government officials. There is nothing complex about everyone paying the same rate of tax. Period ! I'm sick of seeing people claiming this'n that for some ficticious "business" which none of the incompetent officials bother to check on.
Yeah, I don't understand the finance market, maybe you're right, maybe you're wrong. You (not you personally Pericles) can't prove me wrong because you haven't proven to me that flat tax doesn't work. Just saying it won't work without trying it is not proof.

Individual,Pericles does not believe that the derivative market is a separate gambling economy.

As Dr Hudson notes,banks are not loaning money for real productive growth.The gambling and speculation continues as witnessed by the growth of derivatives in our banking sector.

Part of the solution has to be a Glass Steagall Act which many are now asking for in the USA/Europe.

Our mining boom has stalled and will continue to get weaker as China completes rail and port infrastructure in Africa.

We need to get back to Govt banking but also promote the growth of private mutual banking societies so more money stays here.

Address a topic like this on most blogs usually results in moronic non response.The general public have been dumbed down by our education system and that is the sad out come.

Any topic that goes beyond the experience of even our so called intellectuals usually gets relegated to the dustbin of no response.

Our so called modern civilisation is seduced by Hollywood fame,with no sense of personal integrity that differentiates us from all the other fools and power hungry morons on this planet.