Here we go, some rapid-fire responses...
misreality, you just said about a month ago that that divergence wasn't likely to play out like you thought. flipping around again?
Quote?
My stance is, and has been, that a paper/physical separation is very
possible, but not guaranteed. That likelihood is not a fixed element. With multiple, independent sources of information available, it may be difficult for the paper prices to adequately mask physical dynamics before a revaluation.
seriously though, a couple of comments. first, the bad debt needs to be cleared to allow us to evolve to the next level using all this great technology being developed.
Yes, where excessive debt exists. In places where debt is not immense or doesn't exist, this is not an issue. Guess what monetary instruments don't have debt? Physical gold, silver, and Bitcoin.
Bitcoin is going to help in this regard by causing widespread deflation aka price discovery.
Yes, at an increasing proportion in the global economy
this debt is in the process of actively defaulting decreasing the money supply and causing a scramble for the remaining currency to pay this debt off.
It doesn't go away just because the debt defaults because the debt had already been monetized. The loser becomes poorer while the winner reaps the wealth.
thus the USD should rise as it has already lost all its value since 1913 helping to create this mess.
So because the dollar has lost >90% of its value, it will magically gain in value? Monetization is
accelerating, not slowing down. A 50% decrease in value of $100 is the same proportion as a 50% decrease in value of $0.01 - absolute value doesn't dictate a floor.
The massive debt you always talk about is built on the money supply leveraged to the umpteenth. You don't think that new money Ben is printing isn't immediately leveraged that same way the old money was??
It starts out as a few billion that Ben pumps in every day, but then after the Wall street boys get done leveraging it, it offsets those huge numbers you like to talk about 
Couldn't have said it better myself.
deflation sounds good, everything gets cheaper, whats the problem?
Societal collapse, supply chain failures, war, famine, death. Sound good now?
did you bother to look at misreality's graph a few posts back? that's called hoarding. they are doing a little bit of lending but no where near what they've done in the past. they know consumers are tapped out and poor credit risks at this point.
See silverbox's quote above.
do you not see a problem here that perfectly jives with the above?. ppl's incomes are levelling off if not dropping:
While people in other economies have rising incomes. Yes, there is a world outside of the US.
did you not read my earlier post about how banks will only lend if they can immediately flip the loans to the taxpayer aka Fannie/Freddie/FHA?
...
this debt is unpayable. period. and it will be defaulted. this is going to wipe out more speculators on inflation than you can imagine.
Real estate is not the only path for capital flows. You mentioned the lack of financial system transparency. This is part of that obscurity.
