1. Use It or Lose It Understanding Financial Crises through an Evaluation of Creditor Behaviour Presentation for University of Auckland Public Policy Group Keith Rankin by Keith Rankin Dept of Accounting and Finance Unitec New Zealand Thursday, 29 October 2009 http://pol-econ.com/GFC

2. Balanced Global System with two economic agents

3. Balance of Payments: Normal State of Global System

4. Balance of Payments: Stable System - Static note

5. Balance of Payments: Stable System – Alternates with Fig 1

6. Balance of Payments: Unstable System – Excess Credit Accumulation

7. Balance of Payments Definitions

8. Ponzi Finance defined in Balance of Payments terms

10. Balance of Payments: Stable System - Static note: D's household is fully employed; C's household members should be enjoying more leisure than D's. But C may reward his household members in proportion to what they produce!

11. Balance of Payments: Unstable System – Excess Credit Accumulation note: simple Ponzi system: t=0; i>0; i+f=0 otherwise: t>0; i>0; i+f<0