Saturday, November 10, 2007

The Beginning of Stage 3


[From 2003]

No one does my thinking for me... who do you know that has stated the the economic system which controls the world is the floating exchange rate system, but also is overlayed on top of the Fractional reserve banking system which is a debt backed by debt system...A debt backed by debt system is one in which previously created debt is used as collateral to service the creation of new debt

The system is called the floating exchange rate debt backed by debt fractional reserve banking system...

And it has stages

Stage 1 is...

Inflate (or Hyperinflate) debt and destroy savings

Debt inflation is caused by the consumer consumption of debt and inflation is fed by the fact that the debt (or Money) supply expands causing prices to rise and also because debt is created out of thin air with compound interest attached and since the compound interest is not created out of thin air the only real way of paying it is but creating new debt out of thin air with compound interest attached at least equal to the compound interest charge on the previously created debt...

Hyperinflation is caused by a Central Bank, Government, or Whomever has the power to print or create and distribute non debt backed money into the debt backed system effectively removing the barriers to price inflation or interest rates...

Stage 2

Deflation of debt and the destruction of equity...

Debt deflation is caused by the inability or refusal of consumers to consume great enough amounts of new debt to sustain debt inflation which in turn causes asset price inflation like stocks and real estate...But if a great enough amount of debt does not show up then the risk is that equity will begin to deflate causing the loss of further leverage

In the News, the bank of Canada is expected to drop rates to spur the sluggish economy or entice consumers to consume more debt which expands the money supply which is in fact composed mostly of debt in the hopes that the extra debt inflation will equate to economic growth and/or buy more time...

If interest rates are lowered as low as they can go and the regulations and requirements in place to manage debt creation are removed or eased to the maximum extent possible without the effect of sustaining debt inflation then the maximum potential for the system to produce debt inflation has been reached and there is no way to stop debt deflation from reaching it's maximum potential...

The only way to sustain debt inflation is with greater amounts of debt inflation...

The only way to stop debt deflation or a contraction of the money supply is by creating a greater force of debt inflation or expansion of the money supply...

When the system reaches it's maximum potential for debt inflation a hyperdeflationary implosion of debt is the result...

Now a Hyperinflationary system could be introduced to extend the life of debt inflation by printing or creating and distributing non debt backed money into the debt backed system effectively removing the barriers to price inflation or interest rates... You will then get runaway price inflation and interest rates...the maximum potential is reached when you stop the infusion of free money and/or prices rise faster than you can account or calculate for them...

When the system reaches it's maximum potential for debt inflation a hyperdeflationary implosion of debt is the result which leads to...

Stage 3

Bankruptcy of the banks, collapse of the economy, and consolidation of power...

[S&P Lowers Credit Outlook on Three Banks
Friday November 9, 2007 3:30 pm ET

S&P: Credit Market Deterioration Lowers Outlook for Washinton Mutual, IndyMac and Capital One

NEW YORK (AP) -- Standard & Poor's Ratings Services downgraded the credit outlook for three major U.S. banks Friday, another signal that the significant credit slump will not soon abate. S&P downgraded its outlook for Washington Mutual Inc. and IndyMac Bancorp Inc. to "Negative" from "Stable," and for Capital One Financial Corp. to "Stable" from "Positive. It affirmed investment-grade ratings for the three banks.

With mortgage delinquencies and defaults continuing to rise, especially among subprime mortgages and home-equity loans and lines of credit, banks have been forecasting large write-offs and receiving downgrades and estimate drops from analysts.

Washington Mutual's downgrade stemmed from "lower core earnings from WAMU's core mortgage banking business and the negative trends in the national housing and mortgage markets that will depress earnings in the next year," S&P credit analyst Victoria Wagner said in a statement.

S&P also said Capital One's performance is "highly correlated" to the financial status of consumers. "Given this correlation and our expectation of weakness across consumer-related businesses for the rest of this year and into 2008, a ratings upgrade at Capital One is unlikely within this time period," S&P said.

IndyMac's downgrade was also based on concerns about its "exposure to continued deterioration in the housing and mortgage finance markets," S&P credit analyst Robert Hoban said in a statement...

The agency chose not to downgrade its credit outlook on Wachovia Corp., saying its announced pretax $1.1 billion market-value write-down will reduce its remaining exposure "to this highly volatile asset class to $672 million."]


Japan is in stage 2 and the US is at the beginning of entering stage 2...

The number 1 and number 2 economies of the world...which will suck everyone else down with them...

The reason I can think the way I do is because I have broken free of the Just Think Positive inflation forever religion which is needed to allow the system to operate...

The system functions on ignorance of it's mechanics by the population...

The system is the cause... when you open your eyes in the morning that is the effect...

Why do I harp on it? because it took me 10 years to figure it out... and there isn't 10 years left... 5-9 months left if hyperinflation does not show up and up to 2 years if it does...

first comes barter then comes gold and silver then comes fractional reserve gold and silver then comes fractional reserve debt backed by debt then Hyperinflation then press the reset button...end of the line.

As far as money systems go we are in the terminal stage...

As for taking the guesswork out of choices you can either leverage yourself to the hilt or get out of debt as quickly as possible...

I advocate that getting out of debt as quickly as possible is the best course of action because when it dawns on the majority debt will deflate rapidly...

Everything "we" have has been stolen... The economy is going to collapse in 16-21 months Arabs will most likely get the blame... Thats what it is all about "Our" system is built on debt and the looting of other countries resources and the exploitation of their populations for slave labour... Nothing more.

I Understand and Comprehend this fact, you don't want to, refuse to or are not able to...

You have no clue that we are all being set up for a big fall and the real culprits are going to pin the blame on someone else... Don't worry you will see with your own eyes... We have no freedom and never did you just think we do. If war is what your masters want thats what you'll get.

You are the cowards, you don't want to confront the real enemy and in the end you will throw your life away protecting the freedom to be decieved... But it doesn't matter I'm just passing on some info that you don't want to hear because you are zelots that are happy to commit suicide for somthing that you never had in the first place.

2 comments:

Anonymous said...

what do you think of the american revolution? do you believe it was the people finally standing up against the system and breaking free? and subsequently, over the years, the founding principles have eroded and allowed the system back in place?

Hypertiger said...

Nobody broke free...