Stages of the 600 year old compounding interest commercial banking monetary system.
1. Inflation of debt (Money) and the destruction of savings.
2. Deflation of debt (Money) and the destruction of Equity.
3. Bankruptcy of the Banks, collapse of the economy/division of labor, and the consolidation of power.
When Stage 2 can not be escaped from back into Stage 1 then you continue to Stage 3...Which was a regular occurrence in the 18th and 19th centuries but within the technologically advanced iteration of the absolute capitalist system it's deadly.
Basically the money supply hypercontracts and 100's of Millions and Billions of human beings have all their hopes and dreams for the future blown out like a candle and many rapidly begin turning into skeletons.
The life is but a dream world you all currently can float around in as ignorant as Downs Syndrome sufferers...Turns into a nightmare beyond your current abilities to fathom.
It's unbeleiveable...I don't believe it either...Unfortunately I know it's going to happen so I don't have to believe or not believe. It's going to happen reguardless of how much I try to believe it's not going to happen. Because you all don't know it's going to happen...It's very easy to not believe it's going to happen.
And without me telling you about it...You would not even have the slightest hint that it's about to happen or even possible.
Debt/credit is money...A bill you owe is a debt you have to pay. If you don't grow food but need food from a farmer then you are in debt to the farmer. It can't go on forever because people can only request so much money to be manufactured.
Once an economy is maxed out it stops inflating and implodes.
This is not Weimer Germany.
The USA was set up as the inflationary engine of the world in 1944.
And the Top has no power...All the power the top has is sucked from the bottom. And when the bottom is sucked dry...game over of the the game you are all playing.
There is going to be no hyperinflation of the money supply.
See below that is what the money supply growth rate of the USA looks like over the past 200 years...It's already hyperinflating and has been for 5 decades.
And you think hyperinflation is on the way?
Hyperdeflation of the money supply follows hyperinflation of the money supply.
The USA along with the world has been hyperinflating for over 60 years...
It's been hidden with accounting tricks. But The longest temporary prosperity in history has almost reached the end and the largest debt inflationary self delusional bubble is ready to implode.
The roaring 20's looting of Germany bubble popped in 1924 and sent out a hyperdeflationary shockwave into the system. It reached the USA in 1926 and Real estate was the first to begin collapsing...The money running from the collapsing real estate sector flooded into the stock markets in search of yields causing the 1927 to 1929 blow off that lead to the 1929-1933 collapse of the USA.
The Banks which are dependant upon a constantly inflating money supply began imploding, the economy and division of labor collapsed throwing 10's of millions out of work rapidly...
They could not pay their mortgages and their real estate assets collapsed in price so far that their properties were worth less than they owed so equity extraction could not work...
The Mortgage Companies will just vaporize into non existence...Along with most of the US and Global economy...
You will be starving to death...forget foreclosure.
It's going to happen...It's just simple economics and it's happened many times in the past...In the 18th and 19th centuries in the USA it was a regular occurence.
The last 64 years have been the greatest temporary prosperity in History.
The current post WW2 bubble that has almost reached maximum potential and is about to implode is over 60 years in magnitude...or the roaring 6 decades...
The key problem with the USA and the rest of the so called rich countries is that they have all transformed over the past 6 decades into post industrial consumer economies with most of their employment in services. 80% of the US economy is service industry.
It's the same in the rest of the rich countries which are all imbalanced with 60% to 70% of their GDP from shoe shiners.
Service based economies are the weakest...The money supply stops inflating and the division of labor rapidly collapses along with the economy.
The USA will be wiped out...very few have enough savings to exist with no income and the incomes that will exist after the collapse will be lower than all the outstanding debt obligations...every contract will ultimately be busted.
You have to have no mortgage or a very low payment or a massive amount of savings or I'm afraid to say you will have no way to pay your mortgage.
All income across the board is going to cave in as the money supply implodes and unemployment shoots up.
Inflation is coming to an end...There is no magic printing press coming to save your asses. That was a lie told to prevent little children from having nightmares. Don't worry children the deflationary dragon is not going to get you...we have a weapon that can slay it forever...
The FED has no such power...The FED can not slay GOD.
It's too late for most of you to escape your fate.
I began the controlled destruction of my own personal debt inflated empire in 1997...
When the turning point is reached...that will take place in months.
No one is going to know what is going on...You are socially engineered to operate in an inflationary environment and your thinking is inflationary...You are all incompatible with a deflationary environment...You all can't fathom it...
None of you has ever existed in such an environment.
All the old people I have talked to said the turning point in 1929 was like a light switch being flipped.
Click...game over.
There is no doubt that the global system has reached maximum potential and is about to implode...
9-11 served many purposes...One was cover for the deflationary shockwave that hit in 1998-1999. It was quite a spectacle.
The next shockwave will be far more powerful, even terminal...There will have to be a far bigger covering event.
The reality is that the Crown global central banking system is on its last legs and is about to violently implode...It´s already over and nothing can be done except cry or flip out and start shooting people
The population will use the guns in circulation on each other.
That is the plan
The chaos will scream for order.
Enjoy the burning embers of the good old days while they last.
There is no power in existence that can stop the truth or prevent a lie from imploding once it reaches maximum potential. Any actions to prevent the horror show we are going into needed to be taken 50 years ago.
Zero was done. WW2 was the climax of the last Hyperdeflationary collapse...I say collapse because it was not an implosion. Sometimes it is called a breakdown, as in road warrior mode.
A Hyperdeflationary implosion on a global scale is one of the worst human made problems that can take place. All out Nuclear warfare is the only thing worse and it could easily come after the implosion.
The last civilization that suffered one was Rome. I've studied civilizations from the dirt up and back down to the rubble. Most of the skeletal remains of previous civilizations are from economic collapse.
Everyone believes in lies until the truth shows up and wipes them out. The truth always shows up...It is impossible to construct a lie more powerful then the truth.
The idiots have been trying for 6000+ years to do that and fail every time. It´s just the way the Universe is constructed.
The economic system is designed to do this. All it can do is inflate debt (Power lies) to its maximum potential then implode...That´s it.
And that´s what it is about to do...
The powered fantasy is going to reach the point where it needs infinite power to overpower the truth...It´s impossible so the fantasy self-destructs and all that remains is the truth...
Which is a sickening currently beyond your abilities to comprehend horror show.
It´s already in progress.
The Nuke or whatever the spectacle is will be cover for the implosion (old lie reaching maximum potential) and set the stage for the new lie...
It´s a bribery system...when it implodes bribery becomes impossible and brute force takes over.
The just think positive inflation forever religion is what is going to be wiped out.
The Homeland Emergency Government In Waiting, along with PATRIOT Acts 1 and 2, is not a sign that flowers are going to be handed out.
They are not going to be able to power the lie for much longer...and need an excuse blame it all on.
Then you have the hyperinflationists who are the ultimate zealots of the Just think positive inflation forever doomsday cult saying just print money...
Or activate a hyperinflation which would buy a few months to a year at most and then suffer a hyperdeflationary implosion anyways.
The top invented and owns all the greater fool games that you all play while foolishly thinking you are investors and that the greater fool games are stock markets in a so called free market system.
You all have zero idea that the whole system is just one huge milking machine from the bottom to the top and that you all popped into existence within it and have been milked your whole lives...
It did not become corrupted...It has been a scam from square one...
It's just now that some of you are beginning to wake up from the daydream and catching glimpses of the nightmare that you think it's corrupt.
The SEC? Created by the top to fool you all into thinking that there is a guardian protecting you. The SEC protects the owners of it. All the fines it imposes are chicken feed compared to the gains...Just smoke and mirrors to mesmerize the mass of speculators...
In order for a replay of the 1970's to take place you need to invent a Time machine and go back to 1970. Currently the Total debt/money supply is 49 Trillion dollars and GOLD is 985 dollars an ounce.
To sustain the fantasy world that you all live in, the bull market in bonds has to continue forever past zero which is impossible...Or the real estate bubble that is the primary source of new debt/money will pop and the debt/money supply will stop growing and begin shrinking.
All the prices of everything that have been inflating for decades will begin collapsing as well.
And no the FED is not, even if they had the ability, going to inflate the money supply to keep the price of gold inflating for the gold bugs so their feeling are not hurt by the snuff out of their hopes and dreams.
When the time comes the top along with the rest of their rich bootlicking/worshipping servants will just short everything to oblivion.
The only obligation the US Government has is to the Bondholders...
The US Government has according to the Constitution the POWER to make and break promises or the rules which are called LAW.
The US Government passes the "Sorry we ain't going keep our promises because we can't bill" into LAW and that is the end of any promise(s) the general population of peasants think exists.
That's how all so called Governments have been structured for all of recorded history...Because Human Beings don't have the power to make or break LAW or make Unbreakable promises...sorry.
That's what happens when the rich getting richer poor getting poorer cycle reaches maximum potential.
What Bretton Woods did was to set up the USA as the Demand of the Global system (Jolly old England was the demand prior to the 1933-1945 bankruptcy reorganization of the now 312 year old Global system)
And everyone else the supply and the only way everyone else could get US dollars was from US consumers...The only source...So the USA became dependant upon cheap imports...and the rest of the world became dependant upon supplying the USA...
The longer the situation operated the more dependant upon imports from the rest of the world the USA became and the more dependant upon the USA the rest of the world became to consume their exports...
But after the rubble piles of WW2 were cleaned up the rest of the world began inflating...dependant upon US consumers to sustain consumption to sustain their Export to the USA based economies...
The USA then was consuming more than it produced to sustain the delusional lifestyles of the wannabe rich and famous...
To balance "global" trade the USA was exporting more gold than it was importing...to sustain the delusional lifestyles of the wannabe rich and famous...
Silver was being consumed by the rest of the world in massive quantities and the price was bid up higher than the face value of all the silver circulating in the USA and it was removed from circulation in 1964...The greater the inflation became the more GOLD that was hemorrhaging out of the USA...and by 1971 the USA ran out of Gold and Bretton Woods that was doomed from square one finally reached the point where it could not be covered up and the Gold window was closed and the switch was made to the Floating exchange rate system...
The USA along with the world has been crumbling for decades because the Global system is reaching maximum potential.
Everyone wants their cake and eat it too...That desire can only be fulfilled for a limited period of time.
You can chop down trees faster than they regrow.
But it's inevitable that you will reach the logical conclusion.
The logical conclusion to any game is game over.
Piles of Skeletons are revolting but they don't put up much resistance to the TOP.
You can trace the top all the way back to Sumeria. 6000 years.
The top just let you all starve and hack yourselves to pieces...Then after the dust settles...Employ the survivors to build the Next game.
It's the only game you all know how to play.
You all have zero clue what you are up against.
The Top can liquidate 90% of the population and not even notice an effect on their ability to exist how they see fit.
You all will get tired of the "ADVENTURE" after awhile...
The top figured out how to operate civilization 6000 years ago...You all don't even have the foggiest clue how the Absolute Capitalist Hierarchial Food Powered Make Work Enterprise functions.
The top took over the world 1000's of years ago.
Evil gives you what you want to get what Evil wants.
If you demand rope to hang politicians then the top will give you all as much rope and politicians as are required to make you all happy.
How do you think the top maintains their position in the Hierarchy?
The top knows what the life cycle of an absolute capitalist system is.
The greatest villains and the greatest heroes are employed by the top.
The peasants?
They get mentioned as playing a part...such as...all the Peasants could not take it any more, flipped out, and stopped supporting the Archvillian Pussnuts II the Merciless and instead supported the Superhero Pussnuts I the Magnificent.
History is quite an entertaining adventure/spectacle.
Then one day you wake up...
5 comments:
They get mentioned as playing a part...such as...all the Peasants could not take it any more, flipped out, and stopped supporting the Archvillian Pussnuts II the Merciless and instead supported the Superhero Pussnuts I the Magnificent.
Hmmm, sounds somewhat familiar.
Oh, BTW, I think I love you.
To have such keen insight into these manipulations could it be that you've been affliated with or used to be in league with TPTB.
If not, I think I love you even more.
Another good post.
z.1 flow of funds accounts is out today. How come all the numbers from 1985 have been changed, do you have any idea?
48808,30 trillions, plain crazy. Having a hard time imagine how big it is. For real, i just cant. This number is too high for the human brain.
48808.3 trillions means a growth rate of 0,08922 compared to last year... The growth rate in 2006 was 9.424% so the diffence is -0.502%. Not good "to sustain the delusional lifestyles of the wannabe rich and famous" haha.
GDp is 13843.80. Total debt as a % of GDP is now 352.56%. The highest we have even seen... 1929 was 270% and 2006 was 337.63%.
Personal saving rate is negative (-0.1%) for december 1st.
Hypertiger please help me on this... You did write about wheatgrass. Do you actually think it would be good to grow some or even buy some. Im looking for something efficient but food is not my field of expertise.
Jeremy.
"None of you has ever existed in such an environment.
"
That is not true as far as I am concerned. :)
I lived through 1929 stile liquidation.
Nice post though.
(TimW)
I am really trying to digest this line of reasoning. I think it came out of February 28 where it had the fortran style of goto listing.
this is the quote: Forever...Inflation to maximum potential is followed by deflation to maximum potential is followed by inflation to maximum potential is followed by deflation to maximum potential...Forever
Maybe HT can put this into perspective. i understand the idea of maximum potential inflation to the point that all that are going to borrow or all that want to borrow that can borrow have borrowed and game is up, or collateral is up and game is up. The other side is what has me confused: 40 If maximum potential inflation less than previous inflation has been reached go to 10 else go to 30.
It might be that you use the term inflation less than previous inflation instead of deflation that has me confused.
I think I understand the game here. ON the maximum, we are either out of borrowers, loanable reserves or collateral. It sure appears to me we have reached that stage. It is the other side inflation less than previous maximum inflation. Do you by that mean the peak just reached? To the extreme, I would imagine this move means that we are down to what could be called money, basically gold and silver and all debt money has been wiped out.
I am quite amazed that to some extent I have the same basic understanding of monetary reality you have, that Breton Woods made the US the printing press, that the Fed never prints money and the banks never request money from the Fed they don't need, that the big money is always selling in bull markets and buying when stuff is undervalued. That there is no mathematical solution to the debt problem.
The idea of collapse is something I am having a hard time dealing with. My family has real estate, quite a bit of it and all but one piece free and clear. Who occupies it and at what income? When does it get tough to get food regardless of income or amount of money? How likely is it going to be that if you have something, you are going to have to shoot someone. As you state, I have been conditioned to look at assets as something real and has income potential. I think of the term barbarians at the gate when I think of what is going on.
One thing is for certain. the next bust is going to be commodities. The US could find themselves looted by their own debt in some cases, except I think the government would close the door first. But, as I try to tell commodity bulls on the board I post most of the time, when the worm turns, the sellers are going to force delivery and not close their contracts and it will generate a limit down stream of liquidation that most of these speculators aren't prepared to go through. Most are nothing more than kids in this game. So much for my spew.
In short, describe what you mean by inflation less than previous maximum potential. This is a fascinating way of putting what I have been trying to cook up in my head for a good part of the previous 7 years. I can already see the system has reached the point of illiquidity that isn't going to be solved without some kind of insane printing move by the government. We have reached maximum potential and the only solution is something to the effect that enough debt is erased that something can be done to stop the downfall. Income isn't going to rise fast enough to raise maximum potential at the rate we are going and collateral or equity values are falling.
lets all pile up our money in a bonfire eat half an oreo and have a mass suicide party. Maybe Ron Hubbards spaceship will come by and finish off the rest of the oreos. The end is coming woohoo. Skeletons, rioting in the streets... gnashing teeth... yea on oreos...
Post a Comment