I guess until someone with real authority tells you all that you are in a recession you aren't...Simple...You are drones after all...That's the school of economics that The people running the US Economic system are operating under...The last time Americans were all told they were in a recession was after 9-11 prior to that there was concerned speculation...
Just keep watching...And waiting for the blindside...The top can't keep you all stupified much longer...
The US along with the global economy is collapsing right now...Has been for decades...
Japan has said that the carry trade is over...And the BIS has said that the Global economic system is broken and a new one is needed...over your heads...wooosh you all need a bloodbath...don't worry it's coming...You are all working very hard for your LORD to bring it on...
And plenty of other people are waking up and starting to moan and they don't even have the foggiest clue how bad it really is and how bad it's going to get...
Like really you all are being blowtorched into a stupor 24/7...My antiprograming barely touches you all and ultimately once the brick wall is smashed into...You will be paralyzed with terror basically...
The delusions you cherish will be shattered...And there will be no debate with the wrath of GOD...
As long as the interest attached to the medium of exchange policy is in force...Nothing will change...There is no escape from the cycle that interest attached to the medium of exchange creates.
And what's this about Socialism and planned economies?
A factory is an example of a planned economy...You don't believe in factories?
Socialism? What the hell is that? An absolute capitalist scam at best. As far as I can tell there is no Socialism of any significant nature on the face of the Earth...It's like taking a bottle of poison and changing the label so that people think it's a health drink...I see Communist policies/Gradual absolute capitalistic and Fascist policies/Violent absolute capitalistic...I don't see any Socialist policies/Responsible capitalistic...
Are you one of those people that think there is such a thing as non capitalism? No matter the religious dogma or political system there is no way to escape capitalism...The rumor is that capitalism ends when a human dies...
All life and all things in the Universe are capitalistic.
"Debt deflation"
As the debt deflates debt inflated assets and commodities will deflate...One by one...Oil followed by Gold should be the last to deflate...
Deflate in relation to what? The medium of exchange...
You show me one instance in all of recorded history where the top did not buy you all up (The bottom) for next to nothing...You are all just a bunch of get rich quick speculators to me...I can only put up with your hypocrisy and or stupidity for brief periods.
I seen plenty of talk the talk types who can't walk the walk when it is time to.
How many is plenty? Every human being I've come into contact with so far.
You are all individually and collectively DOOMED...Even the best case scenario is more then you can stomach...You are going to cry one by one even the mighty will be rolling on the ground crying why...why...why?
Yes deflation must happen...On paper you can just keep adding zeros. The FED does not inflate the money supply. According to you Germany should still be hyperinflating...sorry your wishful thinking has been blown out like a candle many times.
People requesting commercial banks to manufacture money cause monetary inflation in a compounding interest commercial banking monetary system.
Consumers use their current income which is mostly previously manufactured money (debt) or an asset/equity that has been inflated in price by previously manufactured money (debt) as collateral for their request for a commercial bank to manufacture more new money (debt)
I'm just hanging around because it has not become too ugly here...As soon as mass realization hits that the USA along with the 314 year old Global system is game over and the lie of the magic printing press self destructs and the delusion of infinite debt inflation shatters...I'm bailing...No one will need to be told...I told you so...
Why would the authorities hyperinflate...Do you even know how a hyperinflation works?
I have already explained numerous times that the current system is a debt backing debt system...and the medium of exchange is debt...How do you get hyperinflation? How do you sustain it?
So lets look at Germany...
After WW1 the winning powers as a condition for stopping the war made Germany responsible for paying for the whole war in Gold...
Germany did not have the GOLD so the plan was to print Marks and buy GOLD...
Now anyone with half a brain knew there was not enough Gold in the world to pay the bill...Germany printed Marks to buy Gold from basically the winning powers who then used the Marks to buy up German assets and exports...
The part of the story that is not told is what effect that had...The New Marks entered the German Commercial banking system and inflated the Fractional reserves allowing the Banks to create massive amounts of new debt...
In the end the Gold pile that was being Bought by Germany was not even moving...It was just changing ownership...Germany kept buying the same pile of Gold and each time they bought it it took more and more Marks which then came home to roost in Germany inflating the fractional reserve of the commercial banking system which allowed the banks to continue to create ever greater amounts of debt which bid up the prices of everything...
This process became faster and faster greater and greater until it became hyper...which lasted 14 to 17 months...The internal rate of inflation went from 20% to 800,000,000,000% in less than two years...the overnight lending rate or Germany's Federal funds rate increased to 500,000 basis points...
Prices were rising by the hour workers were going on strike demanding to be paid twice a day with wheelbarrels of cash...It became impossible to account so the presses were shut down...
Without the printing presses supporting the required amount of debt inflation needed to sustain the debt backed by debt system it imploded...Now there was massive amounts of Marks printed but they only backed 20% to 30% of the debt that was created...
A classic hyperdeflationary imploson...mass starvation and repression, food riots and troops gunning people down in the streets followed which is not widely reported...
The top was able to buy GOLD backed Marks with their excess Marks during the whole inflationary phase...The Common German could not afford them since they never had enough Marks ...The top then bought up the bottom at below firesale prices...
Once the dust settled and order was restored the Central bank issued new Fiat...
It was not the end of fiat at all...
The General Consumer in the US has no ability to print money to pay their debts and the vast majority 80% of all debt in circulation is consumer generated...A consumer uses previously created debt or a debt inflated asset as collateral for a request of a commercial bank to create new debt...
Since the medium of exchange in a debt backed by debt system is debt, the only way to service a debt is with debt and the only way that can be sustained is if debt inflates by the required amount...
The required amount is consumer requests for its creation or volume...
You need $1000/year to service your personal debt inflated empire...which means at 10% interest/year you have to find enough people to sign on the dotted line or borrow $100,000 - at 1% you need to lend out $1,000,000 and at 0.1% you need to lend out $10,000,000.
But as the debt supply expands prices are bid up...so you need more and more...
What happens if the volume dries up? What happens when the consumers have requested all the debt they can request and they refuse to or are incapable of requesting anymore?
Debt inflation slows...also known as recessions...Then stops and reverses...also known as depressions or credit crunches which turn into General breakdowns or hyperdeflationary implosions...
Now the end of Fiat...Well you need a complete breakdown...Such as when Rome imploded...Without a Central Government to enforce Fiat legitimate no fractionalized mediums of exchange such as Gold, Silver, Copper, Grain along with barter...etc return...
As long as there is a Central Government Fiat will never disapear...
As long as attaching interest to the medium exchange is considered civilized there will be no end to fractionalization which leads to fiat.
What do you think the Homeland Government in waiting is for? The freaking return of Gold as a medium of exchange?
why dont you just pull the trigger instead of just tasting the barrel of the gun. Lemme guess, couldnt get a loan for the bullets... dang...bang...
ReplyDeleteHyper, I want to know from you: What do you think is the best asset for preserving purchasing power in this very moment (looking forward maybe 12 months)? There must be something that the "top" holds. Is it cash or gov bonds in your opinion? I know your take on skills and food supply, which would not be an answer to my question.
ReplyDeleteAlso, what will the "medium of exchange" be in the future? The USD as we know it or something somehow different?
Thank you.
D.
The Five Stages of Collapse
ReplyDeleteby Dmitry Orlov
Quote:
Elizabeth Kübler-Ross defined the five stages of coming to terms with grief and tragedy as denial, anger, bargaining, depression, and acceptance, and applied it quite successfully to various forms of catastrophic personal loss, such as death of a loved one, sudden end to one's career, and so forth. Several thinkers, notably James Howard Kunstler and, more recently John Michael Greer, have pointed out that the Kübler-Ross model is also quite terrifyingly accurate in reflecting the process by which society as a whole (or at least the informed and thinking parts of it) is reconciling itself to the inevitability of a discontinuous future, with our institutions and life support systems undermined by a combination of resource depletion, catastrophic climate change, and political impotence. But so far, little has been said specifically about the finer structure of these discontinuities. Instead, there is to be found continuum of subjective judgments, ranging from "a severe and prolonged recession" (the prediction we most often read in the financial press), to Kunstler's evocative but unscientific-sounding "clusterfuck," to the ever-popular "Collapse of Western Civilization," painted with an ever-wider brush-stroke.
For those of us who have already gone through all of the emotional stages of reconciling ourselves to the prospect of social and economic upheaval, it might be helpful to have a more precise terminology that goes beyond such emotionally charged phrases. Defining a taxonomy of collapses might prove to be more than just an intellectual exercise: based on our abilities and circumstances, some of us may be able to specifically plan for a certain stage of collapse as a temporary, or even permanent, stopping point. Even if society at the current stage of socioeconomic complexity will no longer be possible, and even if, as Tainter points in his "Collapse of Complex Societies," there are circumstances in which collapse happens to be the correct adaptive response, it need not automatically cause a population crash, with the survivors disbanding into solitary, feral humans dispersed in the wilderness and subsisting miserably. Collapse can be conceived of as an orderly, organized retreat rather than a rout.
For instance, the collapse of the Soviet Union - our most recent and my personal favorite example of an imperial collapse - did not reach the point of political disintegration of the republics that made it up, although some of them (Georgia, Moldova) did lose some territory to separatist movements. And although most of the economy shut down for a time, many institutions, including the military, public utilities, and public transportation, continued to function throughout. And although there was much social dislocation and suffering, society as a whole did not collapse, because most of the population did not lose access to food, housing, medicine, or any of the other survival necessities. The command-and-control structure of the Soviet economy largely decoupled the necessities of daily life from any element of market psychology, associating them instead with physical flows of energy and physical access to resources. Thus situation, as I argue in my forthcoming book, Reinventing Collapse, allowed the Soviet population to inadvertently achieve a greater level of collapse-preparedness than is currently possible in the United States.
Having given a lot of thought to both the differences and the similarities between the two superpowers - the one that has collapsed already, and the one that is collapsing as I write this - I feel ready to attempt a bold conjecture, and define five stages of collapse, to serve as mental milestones as we gauge our own collapse-preparedness and see what can be done to improve it. Rather than tying each phase to a particular emotion, as in the Kübler-Ross model, the proposed taxonomy ties each of the five collapse stages to the breaching of a specific level of trust, or faith, in the status quo. Although each stage causes physical, observable changes in the environment, these can be gradual, while the mental flip is generally quite swift. It is something of a cultural universal that nobody (but a real fool) wants to be the last fool to believe in a lie.
End Quote
From the link:
ReplyDelete"Remnants of former law enforcement and military, urban gangs, ethnic mafias, religious cults and wealthy property owners all attempt to build their little empires on the ruins of the big one, fighting each other over territory and access to resources. This is the age of Big Men: charismatic leaders, rabble-rousers, ruthless Macchiavelian princes and war lords."
In other words, the sociopaths next door pick up the baton dropped by the sociopaths on Wall St and in DC.
"I'm just hanging around because it has not become too ugly here..."
ReplyDelete.. and go where? Europe? China? Any answers at all other than to barricade yourself into your house with food and guns?