Monday, October 08, 2007

China is financing nothing...


It's a case where you will have to see it...You can't seem to imagine it because due to an incomplete comprehension of how the system works you can't construct it in your mind and speed it up to see what happens...

US consumer slows then stops...the rest of the world slows then stops...You can of course attempt to convince me otherwise but will fail...

I don't have to wait and see what happens...I'm not a speculator...I already know whats going to happen...because it's happened over and over again for 1000's of years...

Inflation greater than previous inflation to maximum potential...and then when the maximum potential is reached...Inflation greater than previous inflation transforms into inflation less than previous inflation to maximum potential...

What you all are trying to convince me to believe is that inflation greater than previous inflation to maximum potential follows inflation greater than previous inflation to maximum potential when the maximum potential of inflation greater than previous inflation is reached...

It's a sure sign of the just think positive ignore the negative religion at work...

It's why nothing ever is done to address the problem...Because you all ignore it...Until of course it becomes impossible to ignore any longer...

When the implosion shows up...


As for Financing more US war...That just gives Congress a reason to request the treasury to issue more treasuries...To increase the supply...when it was needed in 2003 to stop the implosion of interest rates...

China buys Treasuries...to help keep rates as stable as possible so that US consumers can continue to request commercial banks to manufacture money in an orderly manner...

China is not financing more US war...The US consumer is financing China...India...Financing the world...

But unfortunately...The USA consumer is becoming exhausted after 6 decades of financing the inflation of the world...soon they will collapse...and the authors along with Sinclair and you all will be introduced to Inflation less than previous inflation...

China is financing...nothing...US consumers requested the creation of the US dollars that China buys treasuries with...The US consumer is financing the USA and the Chinese workers in the factories get jobs and consumer goods subsidized by US consumers out of the deal...And the Chinese communist party gets to hold on to power since the population is intoxicated...and the People's army has a place to sell AK's and ammo...the virtuous circle of global finance...

That is close to reaching it's logical conclusion...like 1929-1933..with a bankruptcy reorganization 1933 to 1945.

But this time around the debt inflationary bubble that has been created is 60 years old and easily 8 to 10 times the size...


There are no eastern or western financial systems...there is just a Global financial system...

I know what is going to happen...The Global system will inflate greater than previous inflation to maximum potential and then when maximum potential is reached it will then begin inflating less than previous inflation to maximum potential...

Like all systems have been doing...Basically forever.

And the USA is the number one Engine of inflation on Earth...There is no back up engine...Once the USA along with the rest of the world inflates less than previous inflation to maximum potential...a new engine can then begin inflating the global system greater than previously to maximum potential...again.

That's the key problem...You all seem to ignore the deflationary (inflation less than previous inflation to maximum potential) period following the inflationary (inflation greater than previous inflation to maximum potential) period...Sure inflation follows inflation...after deflation...

Think of a rocket heading for a mountain...and just before it hits the second stage goes off causing it to accelerate faster...into the mountain.

That's the hyperinflation part...But even without the second stage firing the rocket is still going to sizzle into the mountain...

The impenetrable barrier of maximum potential...

The Chinese, the Americans, the Europeans, or anyone has no magical powers to penetrate it...

Other than in their wildest dreams...which is what the article mostly is...wishful thinking...

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