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...

2 comments:

Anonymous said...

is there a link for the article by buddy that you refer to?

Cheryl-Lynné Rose Henderson said...

http://www.foreignaffairs.org/20050301facomment84201-p0/david-h-levey-stuart-s-brown/the-overstretch-myth.html