Now that we know where we’re headed, the logic of mathematics can tell us how long it will take to get us there.

First, let’s dismiss the global aspect of the problem and focus on the American problem. Our 200 trillion in derivatives is only 20% of the World’s total, but it’s a good number to work with.

So let’s start with where we are. As of today, we’ve committed some 12 trillion dollars to bailing out this 200 trillion dollar derivatives bubble. We haven’t spent it all yet, but we will.

Now let’s try and place a real value on these 200 trillion in leveraged derivatives. Most economists say it’s 30 cents on the dollar. We’ll call that 60 trillion.

Now let’s identify what we’re trying to do. We’re trying to close the gap between the ficticious value of 200 trillion and the real value of 60 trillion, which is 140 trillion dollars, by committing 12 trillion dollars to the problem per year. At that rate, we are committing a little less than 10% of the value gap trying to pump up the derivatives bubble back up to it’s $200 trillion artificial value.

Now you can spend $12 trying to make taxpayers believe that $140 dollars is worth $200 but will it work?. I don’t think so. More than likely, you’ll now have $128 dollars, and the banks will have your $12. Oh, and by the way, since this is working great for the banks, why not increase the derivative leveraging so that now you need to try and make $146 worth $220.

So at this rate, the logic of mathematics tells exactly when we will be able to shore up the gap and repair the economy at the rate of 12.5 trillion in bailouts per year: NEVER.

We can choose to abandon civilization, but we cannot choose to abandon the logic of mathematics. Because the logic of mathematics, unlike politics, is infallible.

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