Borrowing long to lend (or consume) short.

Most people have no idea what is going on in the economy but it is a scam of unparalleled proportions and when it breaks down, and it WILL break down, it is going to come down hard on people who won't see it coming.

As I have stated many times, the root cause of ALL these problems is that the working class, being as ignorant as is physically possible with respect to money and finance, has accepted fake money as if it were real.  The USD was always pretty flaky but when Nixon had to take us off the gold standard the paper currency lost all intrinsic value.  But for various reasons, the idiot people of the world continue to accept it for their labor and to save it for retirement even though it will lose much of its value long before then.

As I have also stated, this fake money system has enabled those who understand how the scam works to royally fuck the people who don't know how it works, or even that it is a scam.  The result is a Global Debt Ponzi (GDP).

But what I have not explained in enough detail is one of the major ways this debt Ponzi has expressed itself here in the USA and that is the notion of borrowing long and lending short.  This is what GE did in order to give non credit worthy customers the ability to buy its stuff.  This is what WeWork (soon to be known as WeLookingForWork) has done with real estate - they took out long term loans to control property and turned around and sublet the property on a short term basis.  The short term business results in cash flow which all borrow long lend short scammers call "profits".  The business looks great IFF you ignore the debt.  But if you take the debt into account you know that the company is a scam and that it will eventually BK.

MANY companies are playing this game right now.  Many companies that everyone thinks are good businesses.  Take Netflix for example.  They keep taking on more long term debt in order to create content for subscribers.  The net result is they provide a short term consumption benefit, the cash flow from which is enough to make the payment on the debt (for now) but which is NEVER enough to actually repay the debt.   Thus, even though NFLX has put put a bunch of great content, they never owned that content, they borrowed it.  And since the sale of that content is not enough to repay the debt, when interest rates rise and NFLX has to take on debt just to service the existing debt then NFLX will BK in a debt spiral.

Why am I the only one who can see this?  Why doesn't everyone know it to be true given how obvious it is.

Look around at all the borrow long lend (AKA "consume") short scams going on.  Those taking on the debt never intend to repay it.  They know they will just keep on taking on more and more debt until the market finally says "no mas" and then the companies will simply collapse and walk away from the debt leaving our greedy banking system saddled with it, thus making that system collapse.

It's coming folks.  It's mos def coming.