Thursday, June 26, 2008
You Are About To Enter The Twilight Zone...
Below a chart of the now 37-year-old Real Estate Bubble...
The latest bubble within the bubble has caved in as much as the previous one or 13%
Any further and it will begin to freefall.
At the top the median price was $262,000 meaning a consumer would go to a commercial bank and say I don't have $262,000...Could I have a loan...sure...at which point the bank would create $262,000...poof.
But now the figure is down to as low as $225,000 or $37,000 less per consumer request.
On top of collapsing requests/demands/sales...on the second chart which shows the longest demand spike in basically modern US History...followed by an implosion.
Then factor in that the US Real estate sector of the US economy is the largest inflationary engine of the Global system that keeps the global economy inflating greater than previous inflation to of course avoid inflating less than previous inflation...or deflating.
And even if a hyperinflation is ignited to attempt to reflate the USA and the world out of the implosion it is entering...
It would last at the most a few months to a year at which point the current implosion or inflation less than previous inflation would resume inflating less than previous inflation.
So not much longer until we enter the twilight zone...
Full blown global economic doomsday...since every contract that exists requires inflation greater than previous inflation forever to sustain them...and when inflation greater than previous inflation reaches maximum potential and transforms into inflation less than previous inflation...all the contracts in existence within the global system will be unpayable/busted.
Kinda like all the foreclosures...
Kinda like one domino that falls and hits 2 and those 2...4 and the 4...8 and the 8...16.
And then the greatest temporary prosperity of around 64 years in the 314 year history of the global system along with the global system itself will implode to oblivion.
And you all are not supposed to know about it until after the logical conclusion is reached.
Also the total credit market debt figures for Q1 came out June 5th...
And for the quarter slow by about 100 Billion from same time last year...It's the first time in 6 years that the growth rate of the total US money supply quarter to quarter has showed signs of inflating less than previous inflation.
And The rates are not set by the FED...consumers set rates by requesting commercial banks to manufacture money...which then is eventually laundered in the bond markets.
The short term yields are rising...
Bonds get bid up in price and yields drop...
They get bid down...less money than supply of bonds...and yields rise...
So the drying up of liquidity is showing up in the bond markets...
The FED will of course pretend to keep holding rates low...But as long as consumer demand for money keeps collapsing...Bonds will continue to drop in price and up in yield...and the FED will be forced by the rise of yields to pretend that they are raising rates at some point...to of course pretend to put a stop to something or other...
Pretending like they have since 1913.
Recession?...
Recessions are caused by a slowing of the rate of growth of the total debt/money supply when consumers reach their maximum potential to continue requesting the commercial banks to manufacture the required amount of new debt/money to sustain the rate of growth of the Total/debt money supply.
Like 1999-2001 the rate of growth of the total debt/money supply slowed from 11% to 6.5% a year and led to the March 2001-November 2001 Recession as recorded by the Business Cycle Dating Committee of the National Bureau of Economic Research.
"On November 26, 2001, The committee determined that the peak of economic activity had occurred in March of that year. The March 2001 peak marked the end of the expansion that began in March 1991, an expansion that lasted exactly 10 years and was the longest in the NBER's chronology. On July 16, 2003, the committee determined that a trough in economic activity occurred in November 2001."
So you see that the above "clowns" said the USA was in Recession at the bottom of it in November 2001 and then did not say it ended in November 2001 until July 2003...
By the time the recession is "official" everyone is already deep into it.
The USA is aready deep into the current recession that the Business Cycle Dating Committee of the National Bureau of Economic Research has not even called a recession yet.
The top has already positioned the bulk of their assets to capitalize on the recession that the above clowns will announce is taking place...and then it will be official...the speculation will be over and all the speculators will then do as the top knew they would.
But at some point the stock markets will shut down...and never open again...Well they will but they will be new...Any claims you have on the old markets will cease to exist when the markets implode to oblivion.
All the speculatative markets are as dependant on inflation greater than previous inflation to sustain their continued existence as Human beings are on eating breathing and drinking.
Once Inflation greater than previous inflation to maximum potential reaches maximum potential...
Inflation greater than previous inflation to maximum potrntial transforms into inflation less than previous inflation to maximum potential.
It's been almost 80 years since the last time...and the top was able to engineer the system to stop inflation less than previous inflation to maximum potential from reaching its theoretical maximum.
This time around I don't see how it's possible to postpone the balancing of the books that have not been balanced in 3 centuries any longer.
401K? I would not have anyone else playing with any financial resources that are mine...because as soon as you place what is in your hand into another's hand...It ceases to be yours or under your control from that point on.
It becomes theirs...and all that is put into the markets is held by the top...
The speculative markets are worthless...they don't contain anything of value...It's the millions and millions of idiots playing a greater fool game that creates the illusion that the speculative markets are a legitimate or required component of an economy.
Without a constantly expanding money supply...There would be no way to sustain their existence...
By the time you decide to get whatever you have in...out...It will be gone.
1929-1933 the Global system with the British pound as the global trade medium of exchange and the British consumer as the demand reached maximum potential and began imploding to oblivion.
The top engineered the system to stop the implosion in 1933 and put the entire global system into bankruptcy reorganization...from 1933-1945.
In 1944 the US Dollar was made the new global trade medium of exchange and the US consumer became the demand of the world.
Now like 1929...the USA has reached maximum potential...
And there is no larger economic zone to take over...You would need an economic zone that is not dependant upon the USA and 3 times its size to just do a replay of 1929-1945.
The current system began 314 years ago with the creation of one central bank...It has since spread out over the entire planet and has over 100 central banks in its branch network.
There is less potential for expansion than contraction now...after 314 years...inflation greater than previous inflation to maximum potential has almost reached maximum potential and is about to transform into inflation less than previous inflation to maximum potential...
During the inflation greater than previous inflation phase of the WAVE...It's they who acquire the most that win...
During the Inflation less than previous inflation phase of the wave...It's they who lose the least that win.
I have zero financial resources in the markets...because when it comes time to balance the books...the markets will become worth zero...
The top will pull out...then the bottom will try to get out and the whole thing that you were looking at will just go poof...
The FEDERAL RESERVE is the third central bank of the USA the other 2 just went poof...
This one will too...It all will.
It's all going to...very soon...
This site is hosted on a server...At some point the server will begin recieving less inflation than it requires to sustain its continued operation and it will go poof.
"We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power."-- Alan Greenspan (Chairman of the Federal Reserve US Central Bank), appearing before the Senate Banking Committee on February 15, 2005, in response to Democratic Senator Jack Reed of Rhode Island on the topic of funding Social Security.
And that is Alan trying to be cleaver...
Go out far enough and "whatever size" begins growing exponentially faster and faster.
So at some point you would reach the stage where you would need an inflation rate of 1 Quadrillion dollars a nanosecond to sustain the entire global system to the next nanosecond...at which point you would require 2 Quadrillion dollars to get to the next nanosecond of existance or...
The whole global system will cease to inflate greater than previous inflation and then begin inflating less then previous inflation...Basically implode...to oblivion.
If Alan's thesis were true...Germany would still be hyperinflating and could have avoided the implosion it suffered when they reached the point that prices were rising by the hour...and the shockwave that spread out into the rest of the global system imploding it and causing the so called great depression would not have taken place...
History...the observed facts...Would have validated Alan's thesis...but one slight problem...Even with supercomputers...at some point it becomes impossible to figure out how much a gumball costs before its actual price rises.
And ultimately "whatever size" would at some point have to become greater than infinite...
Since the required amount of inflation greater than previous inflation to sustain the "Just think positive ignore the negative inflation forever thesis" is not too much and not too little but always greater than previous...
Unfortunately there is no such thing as greater than infinite...so there is no way the FEDERAL RESERVE or anyone or anything else can guarantee "whatever size" when whatever size has to be infinite or greater than infinite.
How much does that gumball cost...it costs an infinite amount...
So Alan has been caught in a lie basically...the best candy coating? A totally preposterious claim....But I was not there to catch him...He was being questioned by a supreme moron...
Alan Greenspan is not a supreme moron...So he easily intellectually bitch slapped that mofo...lol
Basically that's what Federal reserve chairmen have to be able to accomplish...It's what they are hired to do.
If actual economics was taught in schools children would know this all to be true...
But once they realized how yucky it would be...they would demand that the system be changed...
But fortunately...they were never taught how an economy actually operates...and neither are the drones that go to university...
They are all taught the Just think positive ignore the negative version of economics...
The version that just keeps inflating forever...and all the mindless drones function as if it's all never going to end...just marching to their doom with glee...Until of course the maximum potential they have no idea exists...is reached...then they are all violently awakened from the daydream into the nightmare.
Like planes all of a sudden flying into buildings...
It will take more than a few planes flying into buildings to hoodwink the masses of mindless drones this time around unfortunately.
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3 comments:
Hypertiger,
Enjoy reading your writing style...
What can a person of modest means do to protect themselves from the upcoming financial storms ?
He's into bullion coins, I believe...
It seems that non-perishable food is what Hyper actual is recommending.
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