Consumers are the engines of inflation...The credit system was invented to postpone the reaching of maximum potential inflation of the money supply.
Consumers become upset when they are told there is no more money and they begin starving.
The credit system solves that problem for awhile.
And Inflation is new growth that is greater than previous growth and it is also new growth that is less than previous growth...
Inflation greater than previous inflation to maximum potential becomes inflation less than previous inflation to maximum potential when Inflation greater than previous inflation to maximum potential reaches maximum potential.
Inflation less than previous inflation to maximum potential becomes inflation greater than previous inflation to maximum potential when Inflation less than previous inflation to maximum potential reaches maximum potential.
The cause of inflation is not is an increase in the quantity of money and credit. An increase in the quantity of money and credit is an effect.
Your desire to obtain more and more and more power is caused by what?
Who or what is behind the inflationary agenda of Time?
When are the clocks going to stop or begin moving backwards?
It wasn't [Greenspan]...It was all of you...
Throw Greenspan up against a wall and blow him away or torture him slowly until you grow tired of the noises he makes...
It will not stop the arrival of the logical conclusion to the cycle that began before all that are living existed...
And in eternity the ending of a cycle and the beginning of a cycle occur at the same point...
The beginning is the end and the end is the beginning...
It's more rewarding to lie your ass off to avoid responsibility than to take responsibility for your actions...
Until society chooses to stop being selfish...there will be no system to replace the current system that you all love.
Bailout is impossible...
The atomic bomb has already been dropped...You all will not know it until it detonates and try to figure out happened...That's if you survive.
You are all surrounded by people pretending...They will stop...and the daydream you are currently living in will transform into a nightmare...
Really.
But until then...enjoy the daydream that you are awake.
i had read your thoughts for a while now on GIM and this last blog post is finally sinking in, i think
ReplyDeletehowever, even without the greed of the masses, the govt/fed still have other ways of inflating, as evidenced by bernankes helicopter speech. what say you to that?
Maximum potential is maximum potential...
ReplyDeleteThe required amount of inflation to sustain the system is not too much and not too little but always greater than previous.
The key problem when maximum potential is reached or infinite...Is that you need greater than infinite inflation to satisify the requirements...There is no such thing as greater than infinite...
At maximum potential...inflation greater than previous inflation transforms into Inflation less than previous inflation...
So it's possible for the Government to sustain inflation of the money supply past what the population by itself can sustain...But not past infinite...
Basically through various accounting tricks the period from 1944 to now or 6 decades is equal to Germany 1919-1922...The German hyperinflation lasted from 1922 to late 1923...
It basically went from 10%/year to trillions of % per year in one year...
The same this time around if Hyperinflation is ignited by the Government...It will all be over in under 2 years...
And once maximum potential is reached...A hyperdeflationary implosion of the credit system will follow.
Or the US Government doesn't ignite a Hyperinflation and the US consumer reaches maximum potential and can no longer sustain the inflation of the system...A hyperdeflationary implosion of the credit system will follow...
It about buying time...In a compounding interest system the cost of time is constantly rising...more and more and more until infinite is reached...
at that point you need infinite amounts of money to buy an infinitesimal amount of time.
In 1944 consumers were requesting commercial banks to manufacture 8 Million dollars a day and the total money supply was 450 Billion dollars... In 2000 consumers were requesting commercial banks to manufacture 5.6 billion dollars a day and the total money supply was 25 Trillion dollars...
Currently consumers are requesting commercial banks to manufacture around 11 billion dollars a day and the total money supply is around 46 Trillion dollars...
In a hyperinflationary scenario consumers would need to request commercial banks to manufacture a Trillion dollars a second and then the next second 2 Trillion dollars...then 4 then 8 then 16...
It becomes impossible to account for long before infinite is reached.
The price of a paperclip is rising faster than it takes to figure out what the price of a paper clip is.
At 11 billion dollars a day the price of a paperclip takes a few months to a year to rise by a very small amount...It's a very simple operation to figure out with a pocket calculator...
At trillions a second...The fastest supercomputer on Earth could not figure it all out in time...It could at best figure out what the cost of a paper clip was seconds or minutes ago...