Tuesday, January 29, 2008
The Massive Volume Required Does Not Exist
First you send in soldiers to take control of the ground the spices and mines are located...then you can make a market.
And the credit system you see in operation right now has been in operation since the late 17th century...
And not gold...Silver was the primary material used to construct the circulating medium of exchange in the good old days...There's just not enough gold...
And 11 penny-weights of copper were needed to make cents...which is what a typical peasant would use to buy any spices they needed.
Need the soldiers to capture some copper mines as well or round prices to the nearest half Disme
"Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."
"Half Dismes—each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine sixteenths parts of a grain of pure, or twenty grains and four fifths parts of a grain of standard silver."
"Cents—each to be of the value of one hundredth part of a dollar, and to contain eleven penny-weights of copper."
--From the April 2, 1792 Coinage act
A commercial bank creates what they loan out...Credit...Basically they lend you your future income to spend in the present...Works great until you get to the future and need that income but it does not exist because it was blown yesterday.
Then you can't pay what you owe to the commercial banks and they take whatever collateral you used to back the loan...If you don't like that then you better not request a commercial bank to loan you your future income to blow in the present.
One slight problem...All the money in circulation is future income...and to keep it circulating...more and more has to be sucked from the future and blown in the present...And if you all stop requesting commercial banks to do that...civilization as you all have grown to know and love...Implodes to oblivion.
The USA and the world have been hyperinflating for 60 years...Various accounting tricks have been employed to hide it...In 1944 US consumers were requesting commercial banks to manufacture around 8 million dollars of new money a day or 1 Trillion dollars every 342 years and the total money supply was around 450 Billion dollars.
By 2000 US consumers were requesting the commercial banks to manufacture around 5 Billion dollars of new money a day or 1 Trillion dollars every 200 days and the total money supply was around 25 Trillion dollars.
Currently US consumers are requesting commercial banks to manufacture 11 Billion dollars of new money a day or 1 Trillion dollars every 90 days and the total money supply is about 44 Trillion dollars. It won't be much longer...Rates collapsed during the last recession from 6.5% to 1%...They will have to collapse lower than 1% to escape this next one...and to accomplish that you need massive volume...
Prior to the 2000-2003 recession the household debt to income ratio was 80%...now it's above 100%...
The massive volume required to escape another recession...does not exist.
The current plan is to keep everything half ass functioning until the next election so that the new installed puppet can blame the previously installed puppet for all the coming austerity measures that will need to be implemented during the implosion.
You all have been attempting to inflate out of debt for 60 years...The debt was 450 Billion in 1944 and now its 44 Trillion...sorry but you never will inflate out...It's impossible.
All you can do is service the continued existence of the money supply until it becomes impossible to and then stop payment and default...period end of story.
The constantly inflating money supply then transforms into the constantly deflating money supply...
Or 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.
The FED will just print more money belief is just a lie that was told to little children to keep them from having nightmares...Don't worry little children...Daddy has a magic weapon that can defeat GOD.
There is nothing the FED or Government or anyone can do to postpone the inevitable implosion of the system that is dependent upon greater inflation than previous inflation to be sustained forever.
It can't be done...Sure it can be attempted...But inflation greater than previous inflation forever will never be accomplished.
It never has been...All that is possible is to inflate to maximum potential...then implode...poof. That's what you all have been doing all through recorded history...and you all have been shocked every time when you all fail to accomplish what is obviously impossible.
It's not like this is new...But you all are newborns that replaced the previous dieoffs...
It can take many generations for the cycle to run full circle...You all just happened to be born at the terminal phase of the latest cycle...It began long before any of you existed...
Sunday, January 27, 2008
The Whole Depraved Mess is Going to Implode
Like really you all want to have more and more money to become rich...Certainly you all don't want less and less money to become poor...Corporate profits?...Come on...try your profits...
And also
Inflation of the population = humanity continues to exist...
Deflation of the population = humanity ceases to exixt...
It appears you all really like to be rich and continue living far more than being poor and dying...DUH.
Democracy is just a nice sounding word...You say..."We are in there to give the poor unfortunate people of country X Democracy"...And the population generally appears to accept invasion/conquest without too much resistance.
But Yes the parliamentary system or Westminister administration system was basically invented by the British...And it works well...The top can maintain control of the bottom but when they lose control and the bottom demands blood...the elected scapegoats take the fall...Not the top...
Westminister Parliamentry system or Republican system...You decide...Hint: Republican systems don't have Parties.
Executive
Bush is the Head of State or Governor General while Cheney is the Prime Minister and there is a cabinet.
Legislative
Parliament (Congress) is the House of commons (Representatives) and the Senate.
The whipping system
"A whip is a member of a political party in a legislature whose task is to ensure that members of the party attend and vote as the party leadership desires. The term originated in the Parliament of the United Kingdom and derives from the "whipper-in" at a fox hunt. Whip is also used to mean the voting instructions issued to members by the Whip"
"Both houses of Congress, the House of Representatives and Senate, have majority and minority whips. They in turn have subordinate "regional" whips"
All are called honorable members.
Also broken down into two factions the Left or Liberals (Democrats) and the Right or Conservatives (Republicans)
Judicial
Supreme Court of the United States
In Canada currently
The Executive
Michaëlle Jean is the Head of State or Governor General while The Prime minister is Stephan Harper and there is a cabnet.
Legislative
Parliament is the House of commons and the Senate.
All are called honorable members.
"The Chief Whip is a political office assigned to an elected member whose task is to administer the whipping system that ensures that members of the party attend and vote as the party leadership desires."
Also broken down into two factions the Left or Liberals and the Right or Conservatives
Judicial
Supreme Court of Canada
In the UK
Executive
The Head of state is the Queen while The Prime minister is Tony Blair
Legislative
Parliament is the House of commons and the Senate (House of Lords)
All are called honorable members.
"The Chief Whip is a political office assigned to an elected member whose task is to administer the whipping system that ensures that members of the party attend and vote as the party leadership desires."
Also broken down into two factions the Left or Liberals (The Labour party) and the Right or Conservatives
Judicial
Courts of the United Kingdom / Supreme Court of the United Kingdom
All three systems are of course slightly different...But their basic structure is the same.
There are many things right in front of your faces that you all are just totally oblivious of.
And the protocols is a program...Generally anyone that reads it starts following it and self destructs...Like the Nazi's did...and anyone else unaware of what the protocols are and designed to do...a program that can turn a person or group of people into a self destructive psychopath...
Basically those who begin to follow the program destroy themselves because they get into a you are with us or against us mentality...Like the Nazi's. They accepted the program and at the logical conclusion Germany was a smoking ruin.
Basically if I refuse to accept the program....Then I'm a sympathizer/threat to rest of the "true believers" that must be annhiliated...Really I must drop to my knees and accept the protocols or I'm a threat that needs to be annihilated...period end of story.
That is why Germany was a smoking ruin at the end of the protocols program...Because they were so mentally retarded and twisted by the protocols program that they chose to do insane things...Like attempt to destroy anyone that pointed out that what they were doing was insane...
Basically Germany became ensnared in a total annihilation of all opposition to the total annihilation of all opposition scenario...
Basically a self destruction...an implosion.
If the Germans instead chose to not follow the program they would not have arrived at the logical conclusion of it.
Once inflation greater than previous inflation to maximum potential reached maximum potential in Germany 1923...It transformed into Inflation less than previous inflation to maximum potential...The hyperinflation was followed by a hyperdeflation...the banking/monetary system collapsed...there were mass protests and food riots...and German soldiers were machine gunning people in the streets...
Really...And that was not the end of it...the Hyperdeflation and end of the post WW1 Looting of Germany carry trade bubble sent out a shockwave into the rest of the Global system and imploded it...the USA began collapsing late 1926 and reached maximum potential in 1929 and collapsed into 1933...then from 1933 to 1945 was the Bankruptcy reorganization of the world...
Now the new global system that rose out of the ashes...the 1944 Bretton Woods global trade system...has almost reached maximum potential and is about to implode to oblivion.
And make the 1923-1945 period look like a Sunday school picnic.
But until what you all can't possibly imagine arrives for you to see with your own eyes to believe...
There is no way to construct a better system...If there was...We would be in it.
Right now the farmers all slave their asses off producing 1000's of times more food than they need to sustain their existence so that all the non farmers can sustain their existence...
A better system would be where farmers only produced enough to sustain their existence...but that better system would mean that all you non farmers could not exist...
Here it is again...A reminder...
The purpose of the Police and military is to protect the top from the bottom...
To protect cause from consequence...
The easiest prey of the hunter gatherer is the farmer and the simplest operation is the protection scheme...
You are either with us or against us...
All money is decreed money...fiat...
The top says this is money...Or else...period end of story....
You Farmer are on the Land owned by the LORD of the land and will pay tribute to the LORD of 1 Gold coin a year...
Where do I get this GOLD coin?
You can take one short ton of grain to the grainery of the LORD and there you will be given a GOLD coin for it and then you can give the gold coin to the servant of the LORD...
What if I refuse?
Then the LORD will drive you from the Land that the LORD is the LORD of...
There you go an abundant supply of free food to power your wildest hopes and dreams...Lies and delusions...
22 And The LORD said, Behold! The man has become as one of Us, to know good and evil. And now, lest he put forth his hand and also take from the Tree of Life, and eat, and live forever,
23 The LORD sent him out of the garden of Eden to till the ground out of which he was taken.
24 And He drove the man out. And He lodged the cherubs at the east of the Garden of Eden, and the flaming sword whirling around to guard the way of the Tree of Life.
Well what is done with all that Food the tillers of the LORD's land give the LORD as Tribute? It powers the Absolute capitalist Hierarchial food powered make work enterprise...
The city state...Or Civilization...The thing you all popped into existence within...and are in now...
It's not Just the USA and Americans that have screwed up thinking/mentally retarded...the same system that is in operation in the USA is in operation globally...and the whole depraved global mess is going to implode to oblivion...
Friday, January 25, 2008
Thanks For Showing Up To Planet Earth Sucker...
Step one Get over the shock...
Step two Reduce the cost of existence to as low as you can
Step three Get out of and avoid long term debt...If you have alot of equity in Real estate then it is up to you if you want to sell...A motorhome might come in handy...
The key is time...Now you have it, the above is not radical...When the main event takes place...There will only be enough time to panic...for 100's of Millions of people...They will not have time to get over the shock...reduce their cost of existence or get out of long term debt...
Silver and Gold coins will be money...Even cash will be if it exists in people's minds as money...
When a debt backed by debt system implodes...it basically moves in reverse rapidly...
Debt inflation supports price...deflation of purchasing power...
The last hyperdeflationary implosion of debt happened in 1929 after the collapse of 16 years of debt inflation...This time we are at 45+ years...
Debt is money money is debt...Monetary expansion is inflationary Printing cash is one way...Requesting a bank to create debt out of thin air is another way...Debt inflation leads to price inflation...Debt deflation leads to price deflation...
Why is a house worth $200,000? because it is bid up...Debt deflation contracts the money supply which is composed of debt...When the debt supply shrinks then prices will have to drop...
Equity in debt inflated assets vaporises rapidly...and since it is a system based on the leveraging of leverage...if the worth of the leverage drops the amount of debt that can be created drops also...
It feeds on itself faster and faster...Until your mortgage is worth $200,000 and your house is worth $20,000... You need to pay $20,000 to pay your car off but it is worth only $1,000...The debt supply has shrunk to the point that there is only $1,000 being created/ month to pay your $3,000/ month salary...You either take a drastic pay cut or are flushed down the toilet...
And if you can't get your hands on enough income to make your debt service payments you have to default... to eat, you starve to heat your house, you freeze to buy electricity, you are in the dark...
Or you think they will just print cash and mail it to you because you are special or something? Or just hand it out on street corners? But you would have to exempt farmers because they have to slave in the fields producing food for you to consume with your printing press money free give away...
Inflation has rotted everyone's brain...It is hard to imagine a world without debt inflation...we are hopelessly dependant on it for our existence...
You would have to talk to someone in their 80's to 90's to find out what a deflationary reality is like...and that one was a minor event compared to what we are headed towards...
See that Germany trick? All these people saying they will inflate out are nuts...There is no way to inflate out...It is over very quick. In Germany the Government had the power to inflate out of what it owed by printing Marks to buy gold...which it owed to the winning powers after WW1...
In the US it is the public that owes...they have no power to inflate out other than borrowing until they have borrowed as much as they can...Maybe they will lift the counterfeiting laws and everyone can inkjet themselves out of debt?
Even if some kind of hyperinflationary scheme were to be put into successful operation it would only last a handful of months...
In Germany when they turned the presses off the whole system hyperdeflated...The middle class was wiped out...massive starvation and brutality followed...
The top who was in the position to convert their surplus marks (Profits) into gold marks as soon as they got them bought up the victims at pathetic fire sale discounts when the whole thing collapsed...
Like I said we have been in a self-delusional debt inflationary bubble for 45+ years... The US is the top of the debt inflationary engine which the World is dependant on...The US accounts for 30% of total debt inflationary production...Japan is dependant on the US and accounts for 15% of world debt production...next is Germany which is dependant on the US and Japan and accounts for 7.5% of world debt production...
Total is 52.5%... The next 12 Countries which are dependeant on the US Japan Germany combo account for 29% The next 115 countries all account for less than 1% apiece...total is 18.5%
Why is the US so rich? Because it is at the top of the Global ponzi scheme fueled by debt inflation Top sucks from the bottom...Sucking the world dry...Debt must keep inflating in the required amounts or the system will implode...the Debt inflationary potential of the US itself is unmatched by any single country or combination or countries on the Planet...
Which is totally impossible...Unfortunately it is 100% possible
Don't worry Hyper We have a printing press and can inflate out? That is what the US has been doing for 45+ years now inflating out...we inflated out of the total debt we owed in 1964 of 1 Trillion to 35 Trillion now...A true success story...
The Economy is fueled by debt inflation...period...Take it away and the economy runs out of gas...It is that simple...Every recession is just a minor slowing of debt inflationary potential...
Here is the nature of the flaw...what comes after inflation? more inflation...
wrong...Deflation is what comes after the system reaches it's maximum potential to "inflate out" The FED dropped short rates from 1900 basis points to 100 basis points since 82 to support the creation of the required amount of debt inflation to overpower debt deflationary forces to prevent implosion...All the FED has done for 45 years is postpone the inevitable...Implosion...Nothing less and nothing more...
The only times a printing press is needed in a debt backed by debt system is...
When a previous physical paper note wears out and needs to be replaced...
or
When the demand for physical paper notes is greater then the supply in bank vaults...
That is it...
Money supply is expanded by consumers requesting commercial banks to lend to them...
Have you all done your Patriotic duty and maxed yourself out? Spread the word tell your friends and family to borrow and spend to the maximum extent we are on the doorstep of economic utopia just a little more should do the trick...the fate of civilization is depending on you...If you can borrow and spend but don't you are an anti Capitalist anti American traitor...What is wrong with you?
Oh I get it you are waiting for printing press salvation...They will use a printing press to print money to pay soldiers to hunt anti capitalist anti American traitors...
Don't be a coward, sacrifice yourself...ask not what the system can do for you, but ask what you can do for the system...Borrow and spend like there is no tomorrow...It is up to consumers to borrow from tomorrow to create today...Eventually they will run out of tomorrows...Then the jig is up...Live life to the fullest because it can end at any momment...
What a pile of crap...
The German Hyperinflation happened because the Government which owed, had the power to print what they owed...
Currently consumers do not have this power...The entire population owes the commercial banks and Federal reserve who has the power to create debt out of thin air...You are saying that the Federal reserve and commercial banks will just start giving away money for free to those who owe them which will then be paid by consumers back to the commercial banks and federal reserve who gave it to them in the first place?
It's like you owing me $10 but can't pay so I give you a gift of $10 which you use to pay me the $10 you owe me...
The debasement process began long before the FEDERAL RESERVE was formed...It has been 45+ years since the US began to consume more than it produces...Debt inflation makes that possible...It only became apparent in 1971 with the closing of the gold window...The current bubble is 45 to 50 years old...in that time the US has turned its productive economy into a service economy so unlike the Great Depression the US has no realistic domestic productive power...The domestic economy is a shadow of what it was...
The reason why economic theory is of no real help to you is because it is all based on Absolute self indulgent reason...All theory is biased towards inflation (You can't get rich losing money)...and seriously underestimates the importance of and the basic mechanics of fractional reserve banking... Implosion is not an option but is the ultimate result...You can't inflate forever...
"Economics is extremely useful as a form of employment for economists" - John Kenneth Galbraith
First there is no money in the system - it is all debt. Federal Reserve notes are not money or dollars...A dollar is a unit of measurement, much like a pound, a foot, or a mile. Specifically, the dollar is a unit of weight. It's defined as 24.75 grains of pure gold or 371.25 grains of pure silver in the U.S. Coinage Act of 1792.
"Federal Reserve Notes are not dollars." - RUSSELL L.MUNK, former Assistant General Counsel, Department of the Treasury
".... What is a dollar its just something artificial we throw out there.... what you're doing is you're fooling people...." - DENNIS KARNOFSKY, Chief economic adviser St. Louis Federal Reserve Bank
"Where would we be if we had I.O.U.'s scrip and certificates floating all around the country?" Instead he (FDR) decided to "issue currency against the sound assets of the banks. The Federal Reserve Act lets us print all we'll need. And it won't frighten the people. It won't look like stage money. It'll be money that looks like real money." The Bank Holiday of 1933', p20 -Treasury Secretary Woodin, 3/7/1933
Debt inflation is the price that must be paid to maintain an expanding debt supply which is what we use as money...debt is money, what is money? Money is a debt owed to someone else...Commercial banks and ultimately the Federal Reserve...
Before the Federal Reserve the US had a decentralized credit system of regional Fractional reserve institutions...There were plenty of bank panics when a regional bank inflated debt to it's maximum extent and then imploded...
Prior to the creation of the Federal Reserve the Bankers caused panics Problem and reaction so that their solution would be embraced which was the Federal Reserve...
The problem is Fractional reserve banking...the solution is to abolish it...devise a new system...All the federal reserve does is turn a regional problem into a national and even a global problem...
When the FEDERAL RESERVE was created it was given the power to create money out of thin air...Commercial banks only have the power to create debt out of thin air based on the deposits or collateral supplied by consumers...The Federal Reserve does not need any deposits or collateral it has the power to create money out of thin air...
"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank
"The Federal Reserve bank buys government bonds without one penny..." --Congressman Wright Patman, Congressional Record, Sept 30, 1941
"The Federal Reserve system pays the U.S. Treasury $20.60 per thousand notes --a little over 2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidently, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." --Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system
The Federal Reserve is on the Top then the US government then the commercial banks then the citizens at the bottom...
The citizens owe the commercial banks, Government and ultimately the Federal Reserve everything...The Federal Reserve, Government, and Commercial banks owe the citizens nothing...
Economic growth is dependant on debt inflation...Debt inflation is when more new debt is created then previously created debt...Debt deflation is when less new debt is created then previously created debt...
When you think of economics you are using absolute self indulgent reason...you assume debt inflation never ends...self delusion...
The purpose of the Federal Reserve is to keep the debt supply perpetually expanding or it will implode wiping out the banking system...and collapsing the economy...The Fed raises short term rates to slow debt inflation and they lower short term rates to accelerate debt inflation...
Too much debt inflation is the same as too little...Prices rise too fast Hyperinflation followed by hyperdeflation or prices begin dropping which is inflation followed by hyperdeflation...
You have to realize the system is based on perpetual debt inflation...whether it hyperinflates to its maximum potential in a year or inflates to it's maximum potential in 100 years it is always followed by a hyperdeflationary implosion...
Debt inflation must be the "required amount"...What is the required amount? Not even the Fed knows this...all they are trying to do is prevent implosion...and whatever actions are taken to accomplish this are justified...
The ends justify the means...It is not a responsible system it is an absolute capitalistic system based on self indulgent reason which is self delusional and ultimately self destructive... Any responsible capitalist employing altruistic logic to control the system will either cause it to implode or be corrupted into an absolute capitalist...absolute power corrupts absolutely...The Federal Reserve is the only institution in the US which has the power to create money out of thin air...every other institution and living being must borrow money which is debt owed ultimately to the FEDERAL RESERVE...
The Government works with the FED...If invasion of a country is needed to sustain the required amount of debt inflation then that is what has to be done...
It is mathematically impossible to inflate debt forever you can only inflate the system to it's maximum potential then debt deflates to it's maximum potential...or implosion...
So far the FED has been postponeing the inevitable implosion for 45-50 years...The system only gets weaker the longer it is in operation...
Due to the expansion of the money supply which is composed totally of debt...the purchasing power of the debt units drops...so dropping rates produces a blast of debt inflation but loses power over time...
If rates are raised to high or sustained too long debt inflation will collapse past the point of no return resulting in implosion...
82 Rates reached their maximum potential since then the only way to sustain the required amount of debt inflation to prevent implosion has been to continually lower rates when debt deflationary potential began to show up or debt inflationary potential began to weaken...
John Maynard Keynes, one of the chief architects of our current system called such a scenario of lower lows and lower highs a Liquidity trap which the US is caught in...Note in 2000 rates were raised to make a higher high and debt inflationary potential collapsed...along with the Dow...The only course of action was the massive slashing of short rates from 6.5% to 1% to produce a greater force of debt inflation to overpower debt deflation...
Liquidity traps climax in Credit crunches or Hyperdeflationary implosions of debt...
Now "Normalcy" is a debt growth line moving almost Vertical when normalcy was just a little above horizontal prior to 1971...The US began to collapse in 58 to 61 but no one knew...until the US ran out of money in 1971 and started borrowing to survive...
Failure to keep debt growth moving at the current growth rate will lead to implosion...
The total debt is the money supply...It must keep expanding or the system implodes...
When we hit the infinite inflation line we will need infinite exponential debt inflation to prevent implosion...
Consumers even the Government have a finite ability to consume debt...
Debt inflation of 2 Trillion a year is manageable Debt inflation of 1 Trillion a second is not...
Whether maximum potential debt inflation is reached in 1 year due to runaway hyperinflation or 100 years due to controlled debt inflation...it is always followed by implosion or a hyperdeflation of debt... In debt backed by debt fractional reserve systems...
All the FEDERAL RESERVE was created to do is prolong debt inflation...It can not make it permanent...All it can do is inflate debt to it's maximum potential then implode...That is all fractional reserve banking can do and has ever done...inflate then implode...
Globalization and Free Trade is just an attempt to find more debt free victims to exploit...In the 20th century Globalization as the "solution" was tried prior to WW1 and WW2...now it is fast approaching maximum potential again...
It will fail...Like it always fails...
The only solution to debt deflation in a debt backed by debt system is debt inflation...Inflate debt or die...
Debt inflation has a maximum potential either the victims refuse to consume debt in the required amounts or they for whatever reason can't any more...borrowed all that they can or all that they want to...It then becomes paramount that the knowledge of the maximum potential must be kept hidden...
Now it is LIE OR DIE...The just think positive inflation forever religion based on Absolute self indulgent reason...
People like me who employ Altruistic logic or truth are to be avoided because truth is negative in a system depandant on lies and self delusion to function which is considered positive...To put the best positive spin on it Fractional reserve banking is just a white lie...Don't worry be happy...
Until of course maximum potential is hit then new lies must be created to replace the imploding ones...Exposure of the inevitable truth will implode the system and the inevitable implosion will expose the truth...
The winning powers of WW1 demanded Gold as payment...so the German Government could raise taxes or print which they had the power to do...So they printed cash to buy gold...Then the Marks came home to roost...
The US as it is currently set up the debt dollars begin roosting the second they are created...
When a US consumer requests a commercial bank to create $200,000 of debt out of thin air to purchase a house that is basically the same as the German government printing money to buy gold...Except the German government did not borrow it, it stole purchasing power from the population...
Any debt a US consumer requests a commercial bank to create inflates the money supply which is composed of debt...
Once Germany was done printing prices were rising by the hour and workers were going on strike to be paid twice a day so they could take thier wheelbarrel full of money to their wives so they could wait in line to buy bread before it became too expensive...
They shut the presses down and the debt inflation created by the expansion of the cash money supply could not be sustained any more and began to deflate and a hyperdeflationary implosion was the result, the bottom of society especially the middle class were ruined...the Rich who converted their profits into gold as fast as they could came in at the end and bought up the victims at a sickening discount...Mass starvation and brutality lingered for years...Germany was a case also where the paper cash was actually repudiated belief in it's worth collapsed...meaning that the top would not accept it as payment anymore only gold, silver or barter would do, legal tender laws became unenforceable...alot of people just burned the money to keep warm...
In the US the people who owe do not have the power to print money or create it out of nothing...and the people who owe in the US owe it to the people who have the power to print and create it out of nothing...
Any inflation will be the result of dropping rates to zero...then it will lose power...
You borrow $10 plus interest from me and I create it out of thin air then you can't pay...Then you expect me to create $10 plus the interest due on the original created out of thin air $10 and give it to you for free so you can then pay me the $10 plus interest you owe me?
The inflation you see now is the result of consumer consumption of debt...once consumers have consumed all they can and can't or won't any more then the only way to support debt inflation further is to basically start giving money away for free on street corners...
Send every American a Debt inflationary homeland security check for free...
In greater and greater amounts...faster and faster...forever...Imagine your bank account balence doubling every second...stock quotes in scientific notation...thumb tacks that cost 1 quadrillion dollars apiece...
Sorry maximum potential is maximum potential...
They always implode...In fact it is impossible to prevent their implosion...the best you can do is prolong them as long as possible...
I've heard every excuse why all the implosions of the past happened but will either never happen again because we are so wise and intelligent now or that the implosion is so far away that there is no need to worry...the suckers in the future can suck it up and deal with it...
The FED has magical powers...The TPTP can't let it happen...and on and on...
Just massive amounts of denial...It seems for every ounce of truth there is 1 Ton of denial...
Hang people from a rope over a pool of sharks then start lowering the rope...all they have to do is keep climbing the rope the faster they climb the faster the rope drops that is debt inflation...the pool of sharks is debt deflation...either they will run out of rope or collapse from exaustion...the top is the one holding the rope and the bottom is the one trying to climb out...
Just before they collapse or the rope runs out ask them if they get it...Then say good bye, thanks for showing up to planet Earth sucker...
Wednesday, January 23, 2008
Top Maintains Their Position By Giving the Bottom What They Want
The entire global system has basically reached it's maximum potential to inflate greater than previous inflation...there are over 100 central banks in the 314 year old branch network that along with the attached commercial banking infrastructure are going to sympathetically chain reaction implode to oblivion.
This is not an economic disturbance confined to one country or region...
The massive division of labor will collapse without the required amount of inflation ...100's of millions and billions of assets will rapidly transform into unfundable liabilities and self liquidate or attempt to resist their fate and need to be liquidated.
barter...
The top owns all the food production and distribution...
Bernanke cut to keep up with collapsing short term bond yields...
(Hint the top does all the buying and selling...the bottom..."SPECULATES")
The top who as I pointed out do all the buying and selling...are selling equities (stocks)...and buying bonds...massive amounts of short term bonds bidding up the price and causing yields to drop.
But if the FED doesn't set Interest rates why do they exist?
Well fortunately due to the mass cherished delusion everyone has embraced it's preposterous to say that the FED does not set rates...It's preposterious to state that in a free market it's the markets that dictate the direction of rates. It's preposterious to state that the FED along with the banks are forced by the market to cut yield rates...
But if all the peasants believe BEN or AL is the one in control...Then when the economy does something yucky that upsets the peasants...The incompetent Chairman of the FEDERAL RESERVE gets the blame not the system or the owners of the system.
It's why the owners of the system created the bureaucratic buffer in between them and the peasants...better for BEN or AL to be thrown up against a wall than them...And also the system that they own is protected from closer investigation...
So that the peasants don't become aware of how it actually functions...
"Why did Bernie make such a big cut?
Now I'm going to get no interest on my savings account. This defies logic!!!!!! Why did he do this to me?"
Because if consumers are not requesting the banks for loans...then your so called savings are not going to be lent out to them...And if your so called savings are not being given to other people to spend then you can not earn any yield...So you either hold out and maybe one day someone is going to rent your money so you can obtain a yield or you will have to reduce the rent...
Saving?
Anyone that thinks that lending money to someone else to spend under the condition that the borrower has to pay more back than they were given is called saving.
Is a total brain dead moron.
I decide to save 100 dollars from being spent...So I put it in a little box under my bed for a year.
That's called saving.
Lending that $100 to someone else to spend is not...
The consumers ultimately decide how much and when...
All the millions and millions of employees/workers in an economy cause it to function...The employers/owners just live off the yield.
Top sucks from the bottom...Top lives off the yield from the bottom.
The top maintains their position by giving the bottom what they want...
Lets say the bottom wants more money to continue supporting the top...well then the top will eventually be forced to raise the prices they charge the bottom to obtain enough money to pay the bottom what the bottom demands...
You all at the bottom decide ultimately...the Top just keeps giving you all what you want until it becomes impossible for the top to give the bottom what it demands...then game over...
So then what's better for the top...the bottom demanding a new system...The bottom demanding an elimination of the top...
Or the bottom demanding the elimination of the pathetically incompetent Chairman of the FEDERAL RESERVE Ben Bernanke or George Bush...etc
"No need to dump on Ben, he's not the guy making the cuts, he's the guy relaying the message to you from the people who decide how much and when to cut rates."
The people who request the commercial banks to manufacture new money are the people...the 100's of millions of consumers of the United States of America decide...
The top and the bottom share a symbiotic relationship...
I buy something for $1000 and put it up for sale for $2000...nobody wants to buy.
So I drop the price down to $1500...nothing
Eventually I have to drop it down to $1030...or a 3% yield before consumers decide to buy...
Now lets say I need $3,000 to sustain my own personal empire...I would need to sell 100 of those things a month...
I'm very sorry to inform you all...but the FED has never and will never have the ability to set yield rates...The bottom dictates...But as i've pointed out when the time comes where the top can't give the bottom what it demands...It has to give them something else...
Ben Bernanke is something else. All the muppets and puppets that you all have been brainwashed into thinking have power...don't
All the power the top has comes from the bottom...Everything the top does for and to the bottom is so that the top can maintain their position within the top sucking from the bottom hierarchy...
What do you all do to maintain your position within it?
"It's why the owners of the system created the bureaucratic buffer in between them and the peasants...better for BEN or AL to be thrown up against a wall then them...And also the system that they own is protected from closer investigation...So that the peasants don't become aware of how it actually functions..."
If you were all taught in school how the system actually functioned...You all would certainly demand that it be changed...
The top taught you all how to read...write...do math...and how to think.
You, your parents, their parents...so on and so forth...
They could just as easily choose not to...
Just as you do as you please with what you own...The top does what they please with what they own...The global civilization...the enterprise that they own and hired you all to build and maintain.
Tuesday, January 22, 2008
The Fed Is Playing Catch Up
FED is just playing catch up to imploding short term Bond yields...Soon there will be nowhere for yields to go except up...The lower yields (profit) go the greater the volume needed to obtain the required profit.
Last recession yields collapsed to 1% before enough volume was found...this time around they will have to drop below zero...lets say rates collapse from 10% to 5% before enough volume is found...that's double the volume.
A drop of rates from 1% to 0.5% is the same...and you need double the volume...
Prior to the 2001 recession the US household debt to income ratio was 80%.
this time around it's 120%-130%...
Past 100% consumers are forced to request the commercial banking system to manufacture less and less new money...while before 100% they are forced to request the commercial banks to manufacture more and more.
In 1944 the ratio was below 50%
In the early 1970's it was around 55%
by the 1980's it was 70%
I'm very sorry to again have to inform you all of this again...but the hyperinflation of the past 64 years is basically as good as it gets...
Deflation (Inflation less than previous inflation) follows Inflation (Inflation greater than previous inflation)
You all are basically watching the end of civilization as you comprehend it...right now.
Yes of course it's just a recession.
Stage 1 is...Inflation of debt and the destruction of savings.
Stage 2 is...Deflation of debt and the destruction of equity.
Stage 3 is...Bankruptcy of the banks, collapse of the division of labor/economy, and the consolidation of power.
The entering of stage 2 from one has been called a recession (at least that's what the authorities call it)...But who wants to die?
So you all fight for your lives to escape death...
That's what you all have been doing over and over again and of course you all will attempt to escape again...Unfortunately you have been doing it by requesting more and more money to be manufactured at lower and lower rates for the past 25 years...
That is basically at an end...and you all currently have no idea that you will not escape this time...
Sure rates are collapsing in search of volume like all the previous times...but this time around the required amount of volume is not going to be found...
When the 64 year old hyperinflationary bubble that has been getting bigger and bigger during your entire lifetime on planet Earth reaches maximum potential and finally pops...The entire global civilization that you see every day and take for granted will implode to oblivion...
From 1944 to 2000 or 56 years...US consumers requested the commercial banks to manufacture 25 Trillion dollars of new money...from 2000 to now or 8 years US consumers requested the commercial banks to manufacture 25 Trillion dollars of more new money...for 50 Trillion total.
The next 25 Trillion needs to be requested by consumers in the next 4 years...then 2 then 1 then half a year...then 3 months then 45 days then 22 days then 11 days then 6 days then 3 days then 1 day then 6 hours then 3 hours then 1 hour then 30 minutes then 15 mins then 7 mins then 3 mins then 1 minute...then 30 seconds then...15 seconds...then 7 seconds then 3 secs...1 sec...half a second...etc...forever...
Like try Game over...and that's If US consumers can continue...They max out and either refuse to or can't request the required amount of new money to be manufactured then the whole mess will reverse...
"What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse."
Sir Alan Greenspan K.B.E. (Knight Commander of the Order of the British Empire) Dec. 27, 2007, in an interview with National Public Radio.
Longer than 15 years but once we get deeper into it...no one will remember or care.
Imagine snapping your fingers and all circulating money dried up and all the contracts were unserviceable and all the bills became unpayable.
That's what is coming.
Monday, January 21, 2008
Poof!
How do you sustain growth of the economy if the money supply does not grow?
From 1944 to now the rate of growth of the total money supply has been about 7.5% per year...Meaning that you lend out 1 Dollar in 1944 at roughly 7.5% yield per year and 64 years later you would have $102.36
Or let's say the total money supply of 400 Billion US dollars in 1944 basically cycles through the same process and keeps getting acquired and then relent back into circulation every year at roughly 7.49% for 64 years...You will need a money supply of 41 Trillion dollars to support that.
So without a continually expanding money supply there is no way to sustain the top who live off the yield from the bottom...
So forget the FEDERAL RESERVE you have to eliminate the belief that attaching interest to the medium of exchange is good.
Attaching interest to the medium of exchange is the cause of the FEDERAL RESERVE...
The FEDERAL RESERVE did not create compounding interest.
Well then what created Interest attached to the medium of exchange?
RICH PEOPLE. You kinda have to be in a position where you have piles of money to lend back to the people that slaved their asses off supplying it to you to be able to attach interest to it...
So then as soon as you start going around telling RICH PEOPLE that what they are doing is wrong...you are DOA.
Under a static monetary system if it was implemented now...There could be no yields greater than mine output and the population would have to be drastically reduced back to pre commercial banking levels...But civilization as you comprehend it has been as dependant upon compound interest as you are on eating and breathing for over 1000+ years and while the FED is significant...it is only 1 Central bank of over 100 in the 314 year old Global branch network...The current Global economic system is as dependant upon the 314 year old global credit system to sustain it's continued existence as you are on eating and breathing...
Here is the key...IF YOU ALL DESIRE THE 314 YEAR OLD SYSTEM ABOLISHED THEN YOU BETTER BE PREPARED TO KISS CIVILIZATION AS YOU KNOW IT GOODBYE...
Because without a functional credit system the whole global system that you currently see in operation can not function at all...can not exist.
Can you imagine existing without the possibility of interest attached to the medium of exchange?
Well you all better...Because that is just one thing that currently exists that must be eliminated to avoid the implosion...
The implosion that is currently in progress can't be avoided...but the next one can...and to accomplish that simple feat...Interest attached to the medium of exchange is one of the things that human beings do that they have to stop doing.
And if you tell me that you can have your cake and eat it too and create a system that does not inflate to maximum potential and implode but allows interest attached to the medium of exchange...
You are either a liar or a moron...
Top sucks from the bottom...The top lives off the yield from the bottom. It's been like this forever and will continue just as long.
Does the top of the structure support the bottom or does the bottom of the structure support the top? Does the foundation support the roof or does the roof support the foundation?
If you are a slave or a subject...Does calling you a person or citizen change anything? No.
The Government will have a very hard time confiscating my ability to work...They would have to kill me to stop me
And the gold was confiscated to pay the Europens who demanded payment of the debts that the US population owed when the post WW1 looting of Germany carry trade collapsed and imploded the global system causing the Great depression...
This time around no one is owed gold...they are owed dollars...
So I can't see why there would be a confiscation...and even if there was for some bizzare reason the amount of people that would be affected is a very small fraction of the population.
The monetary system is not fraudulent...In a hard currency system you would be kept in some sort of slaves quarters with the rest of the slaves...and your master would pay any mortgage on it...
Whether the money is composed of electromagnetic polarity differentials on hard disk platters, paper, Gold, and/or silver...It's still a credit system at it's core...
Civilization as you all know it has been dependant upon it for over 1000 years.
This is not some new system that showed up in 1913 or 1694...the economy that is about to implode is centuries older than any of the human beings functioning within it.
Basically the system requires not too much and not too little inflation greater than previous inflation...
Basically a constantly increasing amount...One slight problem...there is a maximum potential and when it is reached...it becomes impossible to sustain what the system requires...Then inflation greater than previous inflation to maximum potential transforms into inflation less than previous inflation to maximum potential.
Basically every accounting trick ever discovered along with new ones have been employed to sustain the current system well beyond all previous maximum potentials.
1971 was a maximum potential...The USA along with the rest of the world should have imploded to oblivion once the USA ran out of GOLD to back the US Dollar...according to the rules of the game at that time...but the top makes and breaks the rules of the game...that's the perk of being the owner of the system...And so the rules were changed and instead of the USA along with the rest of the world reaching maximum potential and imploding to oblivion decades ago...it continued to inflate greater than previous inflation by the required amount for another 37 years so far.
One trick for the last 26 years though was the constant collapse of yield rates...The more money that consumers requested commercial banks to manufacture the greater the supply of money cycling through the bond markets...and due to the careful control of the supply of bonds there has basically been for the past 26 years more demand than supply causing bond prices to constantly be bid up higher with yields constantly dropping allowing the money supply of the USA or the total credit market debt to be constantly refinanced at lower and lower rates...
The other trick was to slowly export the manufacturing sector out of the USA into low wage and slave wage zones...The result of that trick was to allow a hyperinflation of the money supply of the USA but without a hyperinflation of the prices of consumer goods...
Basically a hyperinflation of debt over a long period of time rather than in a short period of time like in Germany.
From 1919 to 1921 is close to the USA 1944 to 1982 and 1982 to now is similar to 1921 to 1922...
But reguardless of the tricks...once the exponential point is reached...or more accurately the infinity point...Where the required amount of inflation greater than previous inflation becomes infinite and like Germany the total money supply would have to inflate infinitely...Germany 1922-1923 at basically the same speed.
Or poof over in the blink of an eye...followed by a hyperdeflationary implosion.
Continually fill a balloon fast (4 years Like Germany in the early 1920's) or slow (64 years like the USA and world from 1944 to now)...It is not going to pop any faster or slower when maximum potential is reached.
Once the balloon inflates to maximum potential it will hyperdeflate or pop.
Thursday, January 17, 2008
Emergency Implosion Prevention Checks
This is not the middle...the initial plunge has not really even begun...and the authorities are trying very hard to postpone that until late 2008. It currently takes US consumers requesting the commercial banks to manufacture 11 Billion dollars of new money/debt every day to sustain the world as you currently comprehend it...
But the current actions are evidence that 11 billion dollars a day of new money/debt is not enough...
Interest rates have been collapsing in the USA and the world for 25 years...They will have to continue to collapse forever to postpone forever the reaching of maximum potential and implosion of the USA and world system to oblivion...
Unfortunately yields can't collapse below zero
I buy a used car for $1000 and sell it to you for $3000 my yield is $2000
If I bought a used car for $1000 and could only get $900 my yield would be negative $100
or below zero...
What if I need $2000 per month to run my life...and again I buy a used car for $1000 and sell it to you for $3000 my yield is $2000...
Lets say I can only sell it for $1500? I need to sell 4 cars to obtain $2000
What if I can only sell it for $1001....Then I need to sell 2000 cars in a month...I need massive volume.
So then very low yield rates require massive volume to sustain them...
Lets say I'm a commercial bank...and I basically have an unlimited amount of money to lend out to consumers but they will only request me to manufacture money in significant quantities when rates collapse below 1% or below zero...
Below zero my yield is negative or zero profit...and below 1% requires massive volume and if there is not enough volume then there will also be zero profit.
That is what is going to take place...
Stage 1 is inflation of debt and the destruction of savings
Stage 2 is the deflation of debt and the destruction of equity
Stage 3 is the bankruptcy of the banks, collapse of the division of labor/economy, and the consolidation of power.
The beginning of stage two is called a recession...If you all can't escape...then you will collapse into a depression or enter stage 3.
After 63 years US consumers are maxed out...Their ability to refinance old debts at lower and lower rates is ending...I don't see how the USA or world can escape this recession...
From 1944 to 2000 or 56 years US consumers requested commercial banks to manufacture 25 Trillion dollars...from 2000 to 2008 or 8 years US consumers requested commercial banks to manufacture 25 Trillion dollars more.
To escape US consumers would need request commercial banks to manufacture 25 Trillion dollars in far less than 8 years...
At the average growth rate of the total money supply of the USA around 8% per year since 1944 US consumers would need to request another 25 Trillion dollars to be manufactured in the next 5 years. After that 2 to 3 years...Ultimately at some point nanoseconds...fractions of nanoseconds...
In 1944 the household debt to income ratio was below 50%...by the early 1970's it was around 55%...by 2000 it was 80%
Now it's around 120-130%.
Before 100% consumers are basically forced to request more and more money to be manufactured...Beyond 100% consumers are forced to request less and less money to be manufactured. So there really is no way for US consumers to request the required amount of new money needed to susatin the continued inflation greater than previous inflation of the USA and global system.
So then the USA will begin to inflate less than previous inflation.
or Deflate.
As far as I can tell it will still take years to get to any middle that we are headed to.
Deflation is yucky and everyone is going to fight it like all the other times...What they all don't know is that this recession is inescapeable but they will continue trying to until they all realize it's game over and give up...That process can easily take quite sometime.
Consumers request the 600 year old institution of compound interest banking to manufacture debt...called US dollars...
Debt backing debt...There is no way to ever pay it off and the debt supply must continually inflate by the required amount to overpower debt deflation...
The greater the debt supply inflates the greater the debt deflationary potential...
Eventually this ability to postpone the natural cleansing process reaches maximum potential...Where an infinte amount of debt inflation is required to overpower infinte debt deflationary potential...
There currently is enough debt deflationary potential built up over the past 60 years to annihilate existance as you currently are enjoying it like blowing out a candle...
Consumers have a finite ability to request commercial banks to request the required amount of debt inflation to overpower debt deflation...
Hyperinflation...Is the creation of monetary units outside of the commercial banking system to subsidize consumers ability to request commercial banks to manufacture debt...
Basically how the system is structured Consumers would have to receive emergency implosion prevention checks to expand their income to sustain consumption...The more you input the greater the input next time around...The space inbetween infusions get shorter and shorter or for ever greater amounts or both since at some point it becomes impossible to account...
The system operates so fast that by the time you figure out how much you need you need more than what you need...
Compound interest commercial banking is 99% accounting...Having the required amount of medium of exchange units at the right place at the right time...
At some point it becomes impossible technically and logistically to accomplish this...
The above is meaningless to most of you since you have invested almost no time into comprehending how the system functions...
You don't care where your income comes from or how it is created into existance...All you care about is getting your hands on it...
It is why fish can be caught...
And you have all been caught first by birth into the cherished delusion already in operation then with social engineering and peer pressure into accepting it...
You believe you are in a good system run badly but it is a bad system run good unfortunately...Actually it's an evil system...100% doomed to inevitable implosion...Which the socially engineered drone collective is 100% oblivious of...Like buddy who wrote the article at the link...Until of course the logical conclusion of the compound interest equation is reached...But spectacles like 9-11 provide good cover when that happens...
It is an open conspiracy... You are just ignorant of the part you play within it is all...
Tuesday, January 15, 2008
Line Up For Lifeboats Stage
Inflation makes numbers bigger...
For instance...if sales yoy are greater by 5%...does that mean that more product was sold for the same price as last year? The same amount of product was sold as last year but for a higher price or less product than last year was sold but for significantly higher prices than last year?
It's simple...you all are treading water...your heads are above water still...There is not going to be any drowning until you all can't keep treading water...We are not even at the stage where your arms begin to hurt and you begin screaming for help...
Or we are still at the line up for lifeboats stage...The thrashing around and screaming in the water and dying of hypothermia stage is still a ways off.
Ok children...today we are going to learn all about the economy...Green arrow pointing up means...The economy is good...and a red arrow pointing down means the economy is doing yucky...
It is very easy to keep the arrows green and pointing up...With all the inflation the US consumer drones are producing by requesting commercial banks to manufacture around 1 Trillion dollars of new money every 90 days...
It's just a waiting game...It's inevitable that the US consumers will grow tired and be unable or unwilling to sustain the required amount of inflation to keep the arrows green...and when that day arrives...GAME OVER. Then you all will be asking new stupid questions.
Prior to 1929 the concensus was that the FED was printing too much money...and after not enough...The FED does not print money. All the money in a credit system is manufactured by consumers requesting commercial banks to manufacture it...
Prior to 1929 US consumers were requesting too much and after were not requesting enough because they were unwilling or unable to.
The same thing is going to happen this time...
It's simple...you all are treading water...your heads are above water still...There is not going to be any drowning until you all can't keep treading water...We are not even at the stage where your arms begin to hurt and you begin screaming for help...
Have you ever done something stupid but of course before you chose to do it...You did not think it was...but after you realize how stupid what you did was...It's almost unbelieveable?
The fight to keep the USA propped up has not been lost...Until it is you all might as well enjoy the onrushing headlights you rabbits are caught in...
Buy a bigger house? That's like getting a better room on the Titanic because the people that had it...run from it to attempt to get on a life boat...woo wee now you're living large...
You are all so out of it you all have no idea what is about to hit...You are like children that don't know what hot is and are going to have to be burnt to find out...
This is going to be a comedy.
The pressure builds...then...SNAP...down will come baby...cradle and all...
Hint...Bush is being set up as a scapegoat...
Then all you have to do is remove him...and the next installed puppet can then blame the previously installed puppet for all the troubles...
That's the game plan now and that's been the game plan all along...
It's why the rulers of the Earth created the bureaucratic system buffer...To take the fall for it all...
"The subjects of every state (Bottom) ought to contribute towards the support of the government (TOP), as nearly as possible in proportion to the revenue which they respectively enjoy under the protection of the state."
--Adam Smith, Wealth of Nations 1776
Governments of the absolute capitalistic hierarchial food powered make work enterprise are administration systems of the enterprise constructed and sustained by the bottom or employees at the demand of the top or owners of the absolute capitalistic hierarchial food powered make work enterprise
Sunday, January 13, 2008
Thanks for the Memories
When the growth rate of the money supply increases significantly due to consumer desperation a surge of money enters the bond markets causing Bonds to be bid up and yields (interest rates) down...But when the growth rate of the money supply decreases significantly due to consumer exhaustion...money does not enter and or leaves the bond markets causing bonds to be bid down and yields up...
It's based on volume...
If you sell 10 houses for $200,000 each and yield 5% or $100,000 and house prices drop due to consumer exhaustion...then you have to either sell more houses at the lower price or increase the yield off of the cheaper houses to obtain the required 5% or both...
Because the money needed by consumers to purchase houses does not exist...It has to be created for them to keep them buying and selling. And if they can't afford to service the existence of $200,000 then the amount of money they request a commercial bank to create for them must be dropped...While the yield has to be raised to obtain the required yield to sustain the commercial banking operations.
Yields are not going to drop until consumers begin desperation consumption after the exhaustion phase of the cycle...And only if there is enough volume to support significantly lower yields.
Rates are raised and lowered by consumers...Either you all (consumers) will be able to top the last desperation cycle...or you won't. And if you don't...It's the end of the world as you see it now...If the top can't obtain the yield they require from you all (bottom) with lower rates because you all can't supply the top with what they require from lower rates...the rates will have to rise higher and higher...
You know when you watch TV or read the Newspaper and there is Talk of the FED raising or Lowering rates? That is a farce...The FED does not raise or lower yield rates...Consumers do...you all do...The FED just follows along...
When consumers become exhausted...The FED is forced to raise rates...and When consumers become desperate...The FED is forced to lower rates...Volume...volume...volume...
Volume decreases/exhaustion...rates are forced up.
Volume increases/desperation...rates are forced down.
BUT rates can't drop below ZERO...
And if that's what is required to sustain the USA/Global economy...It's the end of the world as you all have known it.
It costs your employer $100 a day to sustain you and the "yield" from you is $90 or -10%...It's game over...employer forced to cut your pay/lay you off in search of a positive yield...
But I currently believe it's possible to keep this whole mess from imploding for another few years...I think there's one more desperation cycle before game over...Game over is where rates have to drop below zero to sustain the USA/Global economy which is impossible...It just boils down to the volume...Do you all have one more desperation phase left in you?
I don't really know...But don't really care much either.
Greenspan and the FED does nothing to lower or raise rates...When the FED lowers or raises rate...they are playing catch up with the bond markets...It's consumers that dictate where rates are headed...but when consumers dictate that rates have to drop below zero...Game over...It can't be done.
Imagine you are an employer...Of course your only source of Income or yield is from your employees...What if your employees demand $100 a day to work for you but only yield $90 a day...that's roughly a -10% yield...
"I bet the top will take a negative for a couple years, to supply total control over little demand for freedom."
They ain't going to survive years...They will mass liquidate the system...like every time before in recorded history...Of course the cause of the mass liquidation will be obscured like all the times before...
The system itself...It's impossible to sustain inflation greater than previous inflation forever or past maximum potential. But in order for the system to be sustained it requires inflation greater than previous inflation to be sustained forever basically.
Unfortunately once inflation greater than previous inflation to maximum potential (What you all generally call inflation) reaches maximum potential it transforms into inflation less than previous inflation to maximum potential. (What you all generally call deflation)
The top rides the wave...and the bottom is the surfboard....The top already controls the world...they just employ you all to help them maintain control...
And you all want more and more compensation to help them control the world...Unfortunately there comes a point where it's impossible for the employer to sstisfy the demands of the employees...
Then the operation has to be liquidated...
Whether it's a lemonade stand or a Global empire...makes no difference...the only difference is the magnitude or scale of the liquidation.
The FED did stablize the currency and does fight inflation...Without a central banking system to regulate the credit system the currency rapidly inflates to maximum potential and implodes...Germany after WW1 is what it looks like when there is no regulation...
But with regulation all that is accomplished is a postponement of the inevitable...What took 3 years or so in Germany in an unregulated system has taken 70 years so far in our regulated system...A very long temporary prosperity...Most likely the longest in history.
Prior to 1900 the boom bust cycle was around 10 to 15 years start to finish...So far this boom phase of the boom bust cycle has been 70 years in the USA.
The primary cause of inflation...is reproduction...Most of us could/would not exist under a (actual) fixed standard...
The fixed standard only existed/exists on paper...no one has ever really followed it.
You want to punch my face in but according to the "rules of the game" you have to pay 1 ounce of gold to be allowed to...Is that going to stop you from doing what you want to do?
Murder is against the "rules of the game" as well...
It does not stop the murderers...
The Denarius was the Coin of Rome like the British pound stirling is of Britain and the US Dollar is iof the USA.
It was first struck in 211 BC and last struck around 270-275...They started out 95% silver and ended 0%.
And no one seems to know why coins debase.
Population of the the city of Rome area according the the Roman census.
294 B.C. 262,321
14 A.D. 4,937,000
In around 300 years the silver requirement to sustain the city of Rome area increased 18.8 times...
Ultimately conquest in search of resources reached the point where the output was less than the input and Rome unable to continue inflating greater than previous inflation reached maximum potential then began inflating less than previous inflation...imploded.
The input of one Denarius to obtain two is/was profitable...Until the silver mines ran dry or became negative yielding...
Then game over...No civilization can be sustained on negative yields...None ever has been or ever will be...The planet is coated with the ruins of civilizations that discovered this the hard way over and over again and again.
The primary cause of inflation in human affairs is reproduction. The primary cause of monetary inflation is consumers requesting commercial banks to manufacture money for them to buy things with...If there was no expansion of the money supply a ghost town would be the result...Same as when a gold or silver mine runs dry...
If there was no expansion of the money supply a ghost town would be the result...Same as when a gold or silver mine runs dry...Like what happened to Rome when they utilized all the silver mines they had to maximum potential...
What happened to Rome when it ran out of silver to produce the money required to sustain the inflation of Rome?...It began deflating to the ruins you can still see...
When Inflation greater than previous inflation to maximum potential reaches maximum potential It becomes inflation less than previous inflation to maximum potential.
And when Inflation less than previous inflation to maximum potential reaches maximum potential it becomes Inflation greater than previous inflation to maximum potential...
The world you see today is what the inflation greater than previous inflation phase after the maximum potential of inflation less than previous inflation phase was reached...looks like.
Who is going to sell goods and services to consumers with no money? How can you hire and pay employees if there is no money to pay them?
In an inflating economy...there are positive yields...In a deflating economy there are negative yields...Those who desire to sustain positive yields, at some point, leave a negatively yielding economy in search of a positive yielding economy...
Ultimately all that's left are employees with no way to acquire employment and they leave in search of a positive yield...A ghost town is the result...
Sorry folks there's no more money to sustain your employment...
But we ran the numbers and you have at least 1 million silver dollars...
Yes I do...but you all worked hard supplying me with 3 silver dollars...I paid you all 2 and paid myself 1...(Inflationary)
But now you all only produce 1 silver dollars...(Deflationary)...If I were to continue paying you to produce nothing for me...I would get nothing...and be unable to pay all my bills...
But if you cut our pay in half so that you could maintain your yield we would all not be able to pay all our bills...
Exactly...Sure I could continue to pay you all to produce nothing for me but ultimately I would run out of silver and you would be right back at this point again and I would be broke...
Again...Sorry folks there's no more money to sustain your employment...thanks for the memories...
Thursday, January 10, 2008
FUBAR
Money is whatever people think believe and have faith money is...That is what money is..Bacteria are consumers...They of course take more than they give...Like all animals.
Living souls may be living souls but when those living souls choose to follow the path of least resistance like animals do by default because animals are ignorant of Truth...The Living souls suffer the same fate as the animals. They get no special treatment. They inflate to maximum potential and then implode to maximum potential. Or Inflate greater than previous inflation to maximum potential and then inflate less than previous inflation to maximum potential.
A never ending wave...Is the path of least resistance...a straight line is the path of most resistance.
If all the poor unfortunate souls below you supporting your delusions of grandeur were to stop supplying you with the power you needed to sustain the delusion...It would shatter. Soon all the poor unfortunate souls you are feeding on below you are going to reach maximum potential and there will be no way to obtain the fuel required to power your delusions and they will shatter.
Really.
Bawl, whine, and cry about the fate of your cherished delusions all you want...I have no compassion for delusions...And Neither does GOD. Lets say that you think you can grasp a white hot bar of iron with your bare hands...You think GOD feels sorry for you when GOD burns your hand to a crisp for thinking that you can defeat GOD?
If you do...that is just another lie you support the existence of that you expect me to help support the existence of.
Yes you all are going to get smited by the Stark Fist you deserve in the end.
You all includes me...But I'm not talking to me all...I'm talking to you all...
As I said...
"If all the poor unfortunate souls below you supporting your delusions of grandeur were to stop supplying you with the power you needed to sustain the delusion...It would shatter."
A group known as "We the People" decreed the below.
"The Congress shall have power..."
"To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures"
Also in case you need a reminder...The farmers produce the food...All the non farmers eat it and produce more mouths to feed.
The purpose of the Police and military is to protect the top from the bottom...To protect cause from consequence...
The easiest prey of the hunter gatherer is the farmer and the simplest operation is the protection scheme...
You are either with the employer or LORD or against the employer or LORD...
All money is decreed money...fiat...The top says this is money...Or else...period end of story....You Farmer are on the Land owned by the LORD of the land and will pay tribute to the LORD of 1 Gold coin a year...
Where do I get this GOLD coin?
You can take one short ton of grain to the grainery of the LORD and there you will be given a GOLD coin for it and then you can give the gold coin to the servant of the LORD...
What if I refuse?
Then the LORD will drive you from the Land that the LORD is the LORD of...
There you go an abundant supply of free food to power your wildest hopes and dreams...Lies and delusions...
22 And The LORD said, Behold! The man has become as one of Us, to know good and evil. And now, lest he put forth his hand and also take from the Tree of Life, and eat, and live forever,
23 The LORD sent him out of the garden of Eden to till the ground out of which he was taken.
24 And He drove the man out. And He lodged the cherubs at the east of the Garden of Eden, and the flaming sword whirling around to guard the way of the Tree of Life.
Well what is done with all that Food the tillers of the LORD's land give the LORD as Tribute?
It powers the Absolute capitalist Hierarchial food powered make work enterprise...
The city state...Or Civilization...The thing you all popped into existance within and are in right now...
Really.
It's all a set up...The system is dependent upon constant inflation to continue to function as you see it functioning currently. You all have to be thinking inflationary...If you all chose to think that deflation was on the way...you all would cut back...and deflation would show up.
One slight problem...due to the construction of the Universe...inflation greater than previous inflation does not last forever...It's impossible to sustain inflation greater than previous inflation forever. It has a maximum potential and when reached...It transforms into inflation less than previous inflation...of course to maximum potential.
Inflation does last forever...But inflation greater than previous inflation and inflation less than previous inflation do not...They exist forever but don't last forever.
So it's inevitable that at some point the mass delusion that inflation greater than previous inflation lasts forever will be shattered...
Rich people have told all you poor people that you are rich and are going to to get richer if you believe the lies they tell you all are Truth.
You believed them...It's as simple as that.
Been like this for 1000's of years now.
From my perspective...top to bottom bottom to top...You are all poor people that have deluded yourselves real good this time around.
FUBAR.
Saturday, January 05, 2008
It's Not The Banks That Are Responsible
You currently depend upon chopping down trees faster than they regrow to sustain the delusion that you have the power to imagine more trees into existance to sustain the delusion. That is the illusion you want me to believe is greater reality. I'm well aware that our awareness of the Universe is not inside the Universe and is not constrained by it.
Unfortunately that is why what you think you can accomplish within the constraints of the Universe does not work out when put into practice within the Universe. Attempting to tranform your imagination into reality is what got us into this situation. I'm well aware that inflation greater than previous inflation that lasts forever can be sustained forever in your imagination...
It can't be inside of the Universe...
And the very instant you choose to think, believe, and have faith that it can be...The shattering of that delusion is certain and inevitable. All the ruins coating the suface of the Earth are the logical conclusion of the choice to think believe and have faith that inflation greater than previous inflation lasts forever inside the Universe.
You may be able to sustain the required power to sustain denial...I try to not power denial...The longer you power it...the worse the consequences will be when you can no longer power it.
Your best bet is to hope to cease to exist before you are forced to accept what you are currently powering the denial of. That of course will not help everyone else you leave behind...but you don't care about all of them...They are all just illusions...figments of your imagination to use and abuse how you see fit.
It's not the banks that are responsible...Consumers request banks to supply liquidity...The business of banking is sustained by supplying consumers with liquidity...
You all want more and more money and you all certainly are not going to happy with the mines can't keep up with demand excuse when the mines run dry.
It takes Trillions of dollars to sustain the global circulation currently...the demand for more money by consumers globally is growing by about 3 Trillion dollars every 90 days...If it required one ounce of silver to construct one dollar...3 trillion ounces of silver would need to be produced every 90 days to supply the current demand for money if silver was required as a component in it's construction.
3 Trillion dollars or so globally every 90 days just to keep the whole soap opera you all play your parts in functioning...Failure to supply the demand for money globally will result in the implosion of the global system...
When inflation greater than previous inflation to maximum potential is reached...The system will then begin inflating less than previous inflation to maximum potential...During what is generally called the inflationary phase...consumers demand more and more until it becomes impossible to demand more and more and then they demand less and less.
And just as you all are responsible for the ride up...You will all be responsible for the ride down.
Look around...all that you see is basically sustained by inflation greater than previous inflation...Once maximum potential is reached...the whole mass delusion that is dependent upon inflation greater than previous inflation will shatter.
The ruins of Rome are what you see after maximum potential is reached....WW2 is also the type of thing you see after maximum potential is reached.
When given a choice you all will cry for more and more and more...until you are forced to cry for less and less...Fortunately or unfortunately due to the construction of the Universe...You all will be forced at some point to cry for less and less when it becomes impossible to cry for more and more...
You can of course continue crying for more and more after inflation greater than previous inflation to maximum potential reaches maximum potential...But you are not going to get more and more until inflation less than previous inflation to maximum potential reaches maximum potential.
Oh GOD...Please save me from myself.
GOD helps those who help themselves.
Oh please GOD...make inflation last forever...
Inflation does last forever...But inflation greater than previous inflation does not last forever...Just as inflation less than previous inflation does not last forever.
Within the Universe they exist forever...but don't last forever.
The infinite inflation wave...The top rides it and the bottom drown in it...been like this for 1000's of years. It's why the top installs leaders...Puppets hang from strings...like Saddam...
When it comes time...the top will sell you all the rope you hang yourselves with.
If I choose to lie to you and you choose to believe the lie I told to you is truth...You are responsible for that. Since you all knowingly and unknowingly lie your asses off to each other day after day...You all are oblivious as to what Truth is.
You all basically spend your lives speculating caught in a maelstrom of lies...
Then you reach maximum potential and cease to exist.
Irredeemable Federal Reserve Notes...They are not irredeemable...
If they were irredeemable they would not be used.
The 1792 definition of a Dollar is...
Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver.
What happens when it costs 742.5 grains of pure silver to obtian 371.25 grains of pure silver...
In the above there is a limit to the production cost...a cap...once it takes more silver input than is obtained by output...That's it...game over.
The USA ran out of silver almost 100 years ago...
If the USA switched from a credit system back to the old hard currency system...all the imports would stop flowing into the USA...the Global economy would implode.
But of course when the credit system which was implemented to move past the maximum potential of the hard currency system reaches maximum potential...The USA and the reast of the world will implode into oblivion reguardless.
It is taking the resources of of the planet Earth to support the delusional lifestyles of the wannbe rich and famous...and the resources or raw materials with Gold and silver being just a couple...are finite...
And when it takes greater power to obtain less power than was used to obtain it.
You are chopping down trees faster than they regrow...your doom is certain and inevitable.
There never has been a sustainable civilization on Earth...all have been unsustainable in the long run...The mines run dry...the trees get all chopped down...etc.
Top sucks from the bottom and then lends the bottom back what was sucked from them...
Sorry...But there is a limit to how long the bottom can support the delusional lifestyles of the wannbe rich and famous.
And when the bottom runs dry...You are all DOA.
And there will be no way to protect yourself from the wrath that the top is going to suck from the bottom to the top and lend back to those it sucked it from.
I stack coins to save them from spending them...until I have to...
What are you all doing? buying low and selling high?
Waiting for the glorious hyperinflation so you can cash in and become rich?
The magic printing press to kick in and the global economy to implode to oblivion?
Yup any day now...wild cornered animal stage will begin...shockwave after shockwave will hit...faster and faster with each one being more powerful than the last...
It will continue long past the point that you all beg and scream for it to stop...
But until then...The current "yawn" soap opera will continue.
Tuesday, January 01, 2008
Life Jackets Just Prolong the Thrashing...
The only way a fixed system will work is if there is one buyer of the Raw material
The Treasury...Like in the olden days...centuries ago.
In a free or unfixed market the raw material to manufacture coins will eventually be bid up in price and a coin will cost more to make than it is worth. Coins that are constructed out of material that is worth more than the coin will not circulate. And in order to maintain one fixed price...all prices must be fixed.
Communism as it's called does not appear to work very well.
The only way to fix a system is if everyone within the system helps to maintain it...No one seems to like doing that...Everyone likes the unfixed system better...because if they did not like the unfixed system...they would not be using an unfixed system. You can fix the speed limit at 60 miles an hour but it's up to everyone within the system to maintain it...
You all like to speed...To the finish line.
Sorry folks but in a free or unfixed market...what you see is what you get.
If the previous monetary systems you are calling for a return to worked...They would still be in operation. You have the current accounting system because the previous accounting system did not work. Of course the current system did not solve the problem that caused the previous system to stop operation...all it did was prolong the operation past the point where the previous system should have stopped functioning.
Figure out who decides how much income you receive...Then find out where they get it from...
In a silver or gold based monetary system...The production of gold and silver from the mines ultimately dictates that. When the mines run out...you and the rest of the people dependant upon the mines to supply your incomes run out...The supply of the raw materials from the mines to construct money to satisfy demand ran out a long time ago.
The only place the top or employers can obtain what the bottom or employees demand as compensation for suppoting the top is from the bottom. All that the system is capable of doing is inflating to maximum potential and then imploding...That's all it will ever do...sooner or later...Reguardless of what monetary system is funding the operation.
Those who choose to take more power than they give will become richer in power or powerful while those who choose to give more power than they take will become poorer in power or powerless.
The whole system you all generally call civilization...takes more power than it gives.
Been like this for all of recorded history.
You are all marching to doom with glee...sooner or later you will arrive at the logical conclusion.
Just like all the others before you...
In the current system...Consumers request commercial banks to manufacture money. The Fed and the Treasury are not the central powers...The consumers are the central power. The Federal reserve and Treasury are not supporting the population...The population is supporting the The Federal reserve and Treasury. Some call it an exchange for mutual benefit...
All the power the bottom of the hierarchy thinks the top has is supplied to the top by the bottom. The longer you help to perpetuate the myth that the power of the people comes from the King...the longer the myth will be perpetuated.
Interest rates are dictated by supply and demand...
The Government is not keeping them low...
You all are.
Your demands for supply are.
Consumers request commercial banks to manufacture money...The bond markets are where the interest rates are set. When the consumers accelerate their requests for the commercial banks to manufacture money...It floods into the bond markets and bids up the bonds and when bonds are bid up in price the yields drop.
When consumers decelerate their requests for the commercial banks to manufacture money...the flood of money into the bond markets slows and the price of bonds drops...and the yields rise. And since the early 1980's...consumers have been accelerating their requests for more money greater than they have been decelerating their requests.
Causing the yields to drop lower and lower for over 20 years now.
And when the yields drop as low as possible...that will be the end of the party...
There will be no way to obtain a profit from dropping yields forever...and then yields will have to keep rising...
Imagine you are on a boat that is slowly sinking straight down in pitch blackness...you will not realize it until you hit the waterline...
You are all on that boat right now...It's been sinking for decades...But you are noticing water on the floor now...
You have all been told that the water on the floors is from a burst pipe...and nothing to worry about...
Higher up in first class...they are partying oblivious...
Eventually the point will be reached when the passengers wake up and realize that they are all on a doomed ship...without lifeboats...and the life jackets will just prolong the thrashing around and drowning at the end.
Then wild cornered animal stage will begin.
Look around...Kiss it all good bye...
Don't worry...You all that are reading this will be shocked when you reach the point where you wake up...and will instantly know what you should have done...but didn't...and now it's too late.
When will you? I don't know...I just know that if you don't choose to wake up...you will be forced to wake up...it's inevitable.