Comments by "David Himmelsbach" (@davidhimmelsbach557) on "Russian Housing u0026 Banking Total Collapse: Based on Economic Theory" video.

  1. I don't know how you've missed it: Red China and Putin's Russia have destroyed their real estate markets with, de facto, back-end fraud. They critically need the citizenry to bail out their financial sector in a MASSIVE way. The wealth was diverted into dictator insisted military wastage... and on a grand scale. Xi & Putin can't even steal enough wealth to top up their finances. The illusion of financial inertia is the ONLY thing holding their societies together. I would expect utter implosions for BOTH tyrannies in 2025 -- 2026 at the latest. Red China is going to fail without even firing a shot. The fantastic collapse of Muscovy will be sufficient to trigger a sympathetic revolution. This dynamic last happened in 1946-47. The USA granted independence to the Philippines -- and once that news reached India the British Empire began to dissolve. Remember? The British excuses rang hollow when even a devastated Manilla could become self-governing. In today's fiat world, the VAST bulk of money in circulation was generated by banks lending against fungible real estate assets. Banks don't lend against unique real estate -- like steel mills, semi-conductor fab plants, etc. -- they need bread & butter single-family homes and cookie-cutter apartment blocks. However, Putin has crossed the Rubicon -- for real estate lending. He's made it - de facto - impossible for any sane banking lending to facilitate real estate trading. It's now impossible for a seller to get out. This was the crisis of Argentina. Real estate values plummeted when it was impossible to secure a mortgage for the buying community. Quickly, even apartment blocks fell below the trading value of a new BMW. ( Absolutely true. At least the car could be driven to Brazil. All property owners were economic hostages.) This situation does not initiate a Recession -- instead a Great Depression is triggered. Remember, Recessions occur because inventories and lending have become too lax for White Goods + Rolling Goods + Long-Lived Consumables, generally. Lending against such short-lived fungible assets can contract - but said contraction of money creation/ liquidation of consumer debt only takes months to years to clean up. Whereas the staggering contraction in real estate lending & values usually takes DECADES. I give you Japan ( 1990- Present ) The American contraction (1930-1940) only ended because of FDR's war spending. ( Government debt / money printing is ALWAYS hyperinflationary. But no-one complains when hyperinflation is only running at 2% a year. Instead, it's associated with 2000% a year. Any Money Analysis will show that the only difference is scale.) If you like my analysis do keep in mind that the Bank of England and the Federal Reserve have adopted my notions as policy. Plagiarists have published them in a B of E White Paper. That Plagiarism is clumsy, as the six-man team tried to fuse my theories into MMT. Heh. And yes, I was stunned to see my blog posts running back towards 2013 being plagiarized. What a back-handed complement, being treated like I'm Milton Friedman, et al, without attribution, of course.
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