Monday, November 19, 2007
Top Sucking From the Bottom
Inputting negative numbers into the below equations is not going work...
You must always input the required positive inputs or the compounding interest commercial banking system begins to implode...A sustained failure to input the required inputs leads to an inescapable implosion...
Below is the ancient The Money Lenders to the Money borrowers operation that you foolishly think is still in operation.
There is a maximum potential to obtain the required inputs...GOLD and silver is one such Maximum potential...It is limited in supply and impossible to counterfeit...The top of the top sucking from the bottom hierarchy likes that but of course the strength of GOLD and silver is also the weakness since with a limited supply and a limited ability to expand the supply the ability to obtain the required inputs to postpone the inevitable implosion is limited...
This is where the more modern Money lenders become the Debt creators to the former money borrowers who now become the debt requestors scenario begins to play out to it's logical conclusion...
A simple solution that can be instituted by the top who owns the medium of exchange in a top sucking from the bottom hierarchial food powered make work project is to change the medium of exchange into something else that can be expanded enough to obtain the required inputs...Paper money or banknotes [Federal Reserve Notes - $dollars$] that are designed to be hard to counterfeit is one solution backed by GOLD and silver fractionally...
The next problem is that the longer you sustain the system past the point of the GOLD and Silver maximum potential the smaller the fraction of GOLD or silver becomes in relation to the banknotes or IOU's...
A simple solution is to eliminate Gold and silver from the equation and just back the new IOU's [Federal Reserve Notes - $dollars$] with the old IOU's fractionally...Or the new debts are backed by the old debts which are fractionally reserved...The current method in operation or the Fractionally reserved Debt backed by debt compounding interest commercial banking system...Now you don't even need physical monetary units...Ledger entries/checkbook money are enough...Or electromangnetic polarity differentials on hard disk platters hidden behind multiple layers of encryption in secure locations...
Ok but is there another maximum potential? You bet...The final one that can not be escaped from...
The required inputs are always not too much and not too little...In the early days of the 600 year old compounding interest commercial banking system many banks failed simply because they either sucked too much or sucked too little...Both result in killing the goose that lays the golden? egg...
Too much will cause a hyperinflation which causes the system to operate faster and faster towards the reaching of the maximum potential which then leads to a premature implosion...since if you did not cause a hyperinflation of debt the system would have taken far longer to reach maximum potential...
Too much is no Good...But too little is even worse since too little is the reaching of maximum potential and leads directly to implosion or a premature implosion since if you did not take too little then the implosion would not have happened...Ok then what is a solution to solve this problem?
The 311 year old Central banking system was created to regulate the compounding interest commercial banking branch networks...
That is what the FEDERAL RESERVE/Central bank does. Engineer the entire system so that the conditions of not too much and not too little do not take place at least not supposed to...Just the required amount to obtain the inputs...
Now for the final maximum potential...We're getting there.
Eventually the system requires infinite inputs...An example of this scenario playing out was Germany in the 1920's...Or a classical hyperinflation of a fractionally reserved debt backed by debt compounding interest commercial banking system sustained by Government subsidy...
Why did it stop...The only thing hyperinflating was the debt...You still have to obtain the required inputs but as the system moves faster and faster the time you have to figure out the required amount becomes less and less until of course it becomes impossible to figure out how much you require...The required amount becomes infinite...You then have to capitulate to GOD.
Ok that was that situation...The current situation in the USA is different...The actual hyperinflationary event was stopped before it became uncontrollable...
It ended in 1981...How? Well to sustain a hyperinflation you require a closed loop...The manufacturing sector in an economy is key to the hyperinflationary scenario like Germany experianced...The solution was to export the manufacturing sector of the USA out of the USA into external low wage and slave wage zones [China, India, et al]...Allowing debt inflation to continue but with very low price inflation which is ultimately caused by wage inflation within a debt backed by debt fractionally reserved compounding interest commercial banking system...
Even slaves cost...But they are easier to fund the existance of than indentured servants...The required amount of funding to sustain the existence and proper functioning of an indentured servant is far greater than a slave...
...The compounding interest commercial banking system due to it's ability to expand the size of the money supply made the replacement of slavery with the Indentured servitude you currently enjoy economically feasible...There is no doubt about that...And I would be foolish to say that slavery is better than indentured servitude...But what you percieve as indentured servitude in your economic zone is different than what is happening in another economic zones like China...There you would consider a typical indentured servant as a slave...You would kill yourself if you had to all of a sudden exist as a Chinese indentured servant...
So then what is the maximum potential we are all heading to?
The price inflation was stopped but not the debt inflation...That can never stop or the system implodes...
So then how do we keep the system from imploding? Simple obtain the required inputs to sustain the required amount of new debt inflation to service the previous debt inflation.
The situation since 1981 in the USA is one in which wage inflation has been kept low by cheap imports but the debt inflation has been sustained by engineering interest rates lower and lower when debt inflation began to slow sometimes called recessions when the people in the system notice the effect of the slowing and want to know what is going on...
As you engineer rates or the yield which the top obtains from the bottom lower and lower it takes greater and greater volumes to sustain debt inflation...
The yield from $1000 at 10% is $100 and if you require a yield of $1000 to input into your own personal compound interest equation to prevent your own personal debt inflationary fueled empire from imploding then you have to get other people to sign on the dotted line for at least $10,000
The yield from $1000 at 1% is $10 so then to obtain a yield of $1000 you have to get other people to sign on the dotted line for $100,000
Well, then how does this work in it's simplest form...
The top lets say a home builder goes to a commercial bank and requests $100,000 to of course construct a house...At a short term wholesale debt manufacturing cost of 6% for a year to build the house and mark it up to $250,000
The line signer or Home buyer then goes to a commercial bank and requests $250,000 to of course to buy the house...At a long term retail debt manufacturing cost of 5.6% for 30 years...
The whole operation can take place within a month...
The end result...
The home builder gets $250,000 - the $100,000 - the 8000 or so interest...
Profit to blow like a drunken sailor = $142,000
The banking system receives $8,000 plus a $250,000 mortage which is a monetizable asset...
New money that did not exist a month earlier flooding out into the domestic economy? $250,000
The Home buyer spends the next 30 years or less of course servicing the top...since the monthy yield the bank receives from the $250,000 mortgage is $1166 per month profit while the principal is $268 or a total payment of $1425 a month with of course the interest portion shrinking while the principal portion is increasing during the 30 year period... At month 360 or 30 years later the principal being paid is $1426 while the Interest is just under $7 since the final payment is adjusted to account for rounding to the nearest cent...
Ok what is going on? what's the problem? Once a unit of human capital has basically consumed the maximum potential debt the pool of potential debt requestors will shrink if the supply of debt requestors is not inflating fast enough...
So then what is the maximum potential of a fractionally reserved debt backed by debt compounding interest commercial banking system under the current rules?
Maximum potential is reached when the volume of debt requestors required to request the required amount of new debt to service the old debt becomes impossible to obtain...
So far during the past 23 years of engineering rates lower and socially engineering the pool of potential debt requestors along with some other accounting tricks the required volume was obtained...While mantaining low wage inflation along with low consumer price inflation...
But from the top in 1981 where the yields or basis points were 2050 to where they are now at 600 up from 400 in 2003 the ability to engineer rates lower and lower is reaching the maximum potential...
Rates topped out at 950 in 2000 and were engineered lower to escape from the recession to 400 or a chop of 57%...
The last recession rates were 1150 and were engineered lower to escape from the recession to 600 or a chop of 47%
And the one before that rates were 2050 and were engineered lower to 800 or a chop of 60%...
800 600 400...200 is next...There then need to be twice the volume than the last time in 2000 to 2003 or the helicopter drop that you all are waiting for but that already took place...
Ok then what was the debt to income ratio at each one of those points?
At the 800 point the average debt requestor had a debt to income ratio of 60% meaning 40% free to use as the collateral backing the request for a commercial bank by the requestor to manufacture new debt...
At the 600 point the average debt requestor had a debt to income ratio of 78% meaning 22% free to use as the collateral backing the request for a commercial bank by the requestor to manufacture new debt...
At the 400 point the average debt requestor had a debt to income ratio of 95% meaning 5% free to use as the collateral backing the request for a commercial bank by the requestor to manufacture new debt...
At the theoretical 200 point the average debt requestor currently has a debt to income ratio of 107% meaning -7% free to use as the collateral backing the request for a commercial bank by the requestor to manufacture new debt...
That is a serious problem...No amount of interest rate games will solve it either...
Now due to the mathamatical mechanics of the compound interest equation
The following 3 stages of a debt backed by debt compounding interest commercial banking system take place...
Stage 1 is the inflation of debt and the destruction of savings...
The total circulating debt supply in 1981 was $5 Trillion and the savings rate was 11%...
Now the total circulating debt supply is 38 Trillion and the savings rate is 0 or negative...
Stage 2 is the deflation of debt and the destruction of equity...
Ok here's where it gets tricky...A recession this stage 2 begins to take place...Debt inflation slows and debt inflated assets like real estate or equity begins to be destroyed but fortunately rates can be engineered lower and the volume increased to escape...no problem as long as the debt to income ratio is not too high and you have enough basis points to play with...
Federal funds? what was it at when the prime rate was 800? 600 at 400 it was at 300 and at 400 it was at 98...
So at 200 it will have to be around 0.5%
And of course twice the volume that existed during the 2000-2003 helicopter drop that you missed will have to exist or game over...
The maximum potential of the top to obtain a yield from the bottom will have been reached...then there is no escape from stage 2 of the debt backed by debt compounding interest commercial banking system...
Which then leads to stage 3...
Bankruptcy of the banks collapse of the economy/division of labor and the consolidation of power...
Here's where it gets tricky again...
The crown system already went bankrupt...In the 1930's... the period from 1933 to 1945 was the bankruptcy reorganization of the then 236 year old "Global" Crown or City of London system...
The system emerged from 1933 to 1945 reorganized but still bankrupt...It is still bankrupt currently...
Prior to 1929 the three stages of the compounding interest commercial banking system took place within a space of 60 years or so...25 to inflate and 25 to deflate and 10 for the base...The last bottom inside of the USA was in the late 1890's and the top was in 1929...and the normal natural cleansing process began to take place...
One slight problem...Modern technological civilization is incompatable with the natural cleansing process...The actual deflation that occured in 1929 was only 4 years long...Not 25 like all the previous ones...
If the natural cleansing process were to have been allowed to run it's course Modern technological civilization would have completely collapsed into rubble...
Ok the top stopped it...Yay...But all they did do was prolong the inevitable reaching of maximum potential...
So from 1933 to 2005 or 72 years means that stage 1 of the compounding interest commercial banking system has been extended almost 3 times it's normal length...
Which means when the inevitable reaching of maximum potential occurs the magnitude of the implosion will make all previous implosions look like walks in the park...
And there is nothing your most worshipful masters can do to postpone the wrath of G-D any longer...Jigs up. G-D can't be tricked and their ability to trick you into dropping to your knees and worshiping the compound interest G-D like you are now will also become impossible...
Ultimately the top is not really evil...The compounding interest equation must have the required inputs to postpone it's inevitable implosion as long as possible...failure to input the required inputs means implosion of everything...
The whole kit and caboodle...The ends then justify the means...The top has no choice but to worship the crown...To satisfy the Crown...failure means the collapse of the entire fantasy world you currently use and abuse how you see fit...Game over...
Ignorance of the truth is the root of all evil...
The compound interest equation at the core of the program you are all following insures that you will march off a cliff...
The death march to oblivion that is reaching it's logical conclusion began 311 years ago...sorry...
Due to the nature of the compound interest equation you either supply the required inputs to postpone the walking off the cliff as long as possible or you don't then you walk off the cliff...
If you try to stop the system from imploding it will implode...
All that a compounding interest commercial banking system can do is inflate to maximum potential then implode...That is all it ever could do, can do, and will do...
The top knows this but it's the source of their power...If the top were to come out and tell the truth the lie you are all living would "prematurely" implode...
So then it comes down to a choice of the lesser of two evils...
Causing a premature implosion is irresponsible...Who wants to take responsibility for that?
Answer? no one...
Don't worry the top has already created the scapegoats that you will all blame and are currently already blaming...
I have studied all the previous implosions and the general drone population within the food powered make work project is always convinced that an effect of the top is the cause and is to blame...
Like George Bush and the Neocons...They are effects of the cause which is the top...
Poor people? They are effects of the cause which is the top.
Well then what is the cause that the top is an effect of?
GOD exists and all that GOD does is cause choices to be made...The top has chosen to reject GOD...
That is the ultimate cause of this depraved soap opera you all are mesmerized by currently...
The top's rejection of the truth...To them the system is sustainable as long as you are all ignorant of it's true operation...And you have been for 600 years so far...That is how old the compounding interest commercial banking system as you see it in operation today is...
Ignorance of the truth is the root of all evil...
Then people ask me...What is truth?
GOD is Truth and Truth is GOD...
What is GOD? The infinte and indestructible source of power that powers everything...The Government of the Universe that can't be overthrown and the Law that can not be broken...
The compounding interest commercial banking system attempts to break the Law that can not be broken overthrow the Governement of the Universe and defeat GOD with the ultimate goal of obtaining absolute power over all..."
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