BH, - manipulated into believing there is a crisis, yes. But the "crisis" is for the banks, not so much the ordinary folk. There are actually two economies in one system. There is the "real economy" where you & I exist, then there is the financial economy. This financial economy dwarfs the real, yet is a derivative of the real. But because it so big, it drives the real economy - a feedback loop.
I've also shown these charts before, the first is the classic "Exeters Pyramid"
(click to expand)
Look carefully at the numbers
T is for
trillion. Then think about this, the global economy is ~
60 T in size, yet the derivatives in the system is
1600 T, the financial world is 20 times the size of the real world. How can this work? The maths simply does not compute to my way of thinking. (This is a nice cross-check against the the first chart in my my post
#200. Both correlate to some number that is at least 10x actual GDP)
Someone clever then came up with a modification to Exters pyramid
The narrow point is the choke. The problem is converting the claims to asset through the choke point of the neck. When people lose faith in the "paper claims" - money, bonds, stock and decide they want something real or tangible, they need to move
through the choke.
Hyperinflations are one example of "loss of faith" in the currency system - or moving through the choke. These are currency
NOT economic events. As you can see from second chart, if the population suddenly decides
en mass that currency system is not a good store of value for some reason, they all panic and try to get rid of the paper claims, then not all of the claims will be able to pass through the neck before the paper side becomes worthless.
Now you understand why Greece is so important, Even though its debt is small relative to the whole system, the writedown of just 1/20th or so of the global debt means the banking system is out of capital, and so insolvent. No country can be allowed to default. Therefore, more paper claims are manufactured by the central banks to prop up the system. The object of the game is simply to keep the fraud going for as long as the population continues to have
believe that the system will continue to work for them, ie have faith in the system.
While the system is still working, the government gets its share of the bargain - control, and the elite get its side of the deal, the ability to convert paper wealth converted to real wealth (land, oil, minerals, productive capacity). The object of the exercise is simply to sustain "the game" for as long as possible, to milk to most out of the population. They all know the paper game is going to end, eventually.