All systems that expect greater growth or grow faster than is possible will collapse.
Gesellian economic principles throw out the baby with the bathwater...They discourage savings...Which are what you need to survive the collapse phase following an expansion phase.
The current system also discourages savings as well...
All growth unless stopped leads to collapse...sooner or later.
The Gesellian economic system is just a different approach to attempt to solve a problem...one problem...not all the problems.
Unfortunately...the only way to fight against inflation less than previous inflation to maximum potential is with inflation greater than previous inflation to maximum potential and when the maximum potential of inflation greater than previous inflation is reached...It becomes impossible to fight against inflation less than previous inflation to maximum potential any longer.
We have 6000+ or so years of history to study because Human beings have an ability to reproduce quicker than we cease to exist...It's why we are all here right now.
The key problem is how to avoid falling into the compounding inflation trap...
Bacteria don't have the slightest chance of avoiding that trap...If human beings can't avoid the compounding inflation trap...then we are no better than bacteria.
It boils down to education...There has to be full disclosure...full education...a full realization of what everyone has to do to avoid falling into the compounding inflation trap...
Until then...humanity will continue choosing to inflate greater than previous inflation to maximum potential and then be forced to inflate less than previous inflation to maximum potential...Just like mindless bacteria.
All of you currently think you are doing what is right...when in fact what you are all doing is wrong...
All those who came before you all existed thought the very same thing...But they are not going to be around to find out how wrong they were...But you all will be...and your children will...and their children will...
Because Human beings have an ability to reproduce quicker than we cease to exist...somebody will exist to suffer the consequences of the choices you all don't want to suffer the consequences of...
Consumers can not request the compounding interest commercial banking system to manufacture infinite amounts of new money or greater than infinite amounts of new money.
Able is the problem.
The consumers want to sustain the delusional lifestyle of the wannabe rich forever.
The consumers are not able to...
A delusion is a lie you tell to yourself.
To sustain a delusion requires the taking of more power than is given.
At the the point where the delusion requires infinite and indestructible power to sustain it's continued existence...It requires Truth...Since Truth is the only source of infinite and indestructible power.
This is revelation of the Lie as Truth and it self destructs...poof.
Every baby born causes an increase in the demand for money and resources.
What do you do when babies are being born quicker than Gold and silver can be mined refined and coined. Or Trees can be chopped down? Or Food can be produced?
There is around 6000 years of recorded history because Humanity can reproduce quicker than it dies.
You can teach children to hate an when they are old enough form up masses of them into Armies and send them out to loot Treasuries and capture resources from other masses of children.
GOD is leader of the free world
George Bush is the installed puppet of the LORD of the unfree world.
"Those people who will not be governed by GOD will be ruled by tyrants."--William Penn
It is impossible to break the Law of the Universe...
Too bad you all foolishly think that rules are Laws...that you all have the power of GOD to enforce the LAW of the Universe...
You don't...All you all can do is make rules...You can't no matter how hard you try make Laws...
Attempting to make Laws is against the Law of the Universe...Which as I've pointed out is impossible to break...
Freewill...rules do not stop freewill...attempting to stop freewill with rules will never succeed...
Even if you call them Laws.
Making choice against the rules is against the Law of the Universe...
The only way you will reduce poor choices is with Education...
But you don't even know what that is...I'm sure you've all spent some time in a drone production facility being socially engineered...But you are basically pumped out into society clueless...Easy to exploit by the previous crop of clueless pump outs...
The wrong choices you make can not be reduced by making them against the rules; you have to not make them to reduce them...
Punishment after they are made is not going prevent the consequences of wrong choices...Or stop them from being made by clueless pump outs.
It is insane that people buy the US government's T-Bonds and T-Bills thinking that they are a safe...
US consumers request commercial banks to manufacture debt...It is then spent into the US domestic economy which is dependant upon imports, so much of the debt is exported out of the USA into let's say China...and it piles up in the Bank of China as reserves which China then exchanges for Treasuries that pay quarterly interest and also manipulates interest rates in the Treasury market to stablize Interest rates so that consumers can continue to request commercial banks to manufacture debt to purchase imports from China...
The USA ran out of gold in 1971 so under Bretton Woods you should have suffered Economic Suicide 35 years ago...Fortunately Economic Suicide was postponed by a rule change...
But that's the end of the accounting tricks...
Sorry but taking more than you give always leads to Economic Suicide...
It's why rich people used to live in castles with elaborate defences and a private security force...To avoid the consequences of Economic Suicide.
Now you worship them...And try to be just like them...
You all committed Economic Suicide...
Ignorance of truth is the root of all evil...
None of you have enough to pay all the credit card debt...You would only be able to pay them down to what was possible then you all would have to service the rest owing...
The USA ran out of an ability to pay off what they owe in the late 1920's...
Since 1945 after the bankruptcy reorganization 1933-1945 you have requested the commercial banking system to manufacture 47 Trillion dollars to service the existence of the previously created debt and lived on the newly created debt...Not to worry the system is Global and everyone has done the same...
But fortunately your ability to continue doing it has almost reached maximum potential and soon you all won't be able to...Then the whole thing caves into a science fiction horrowshow that you currently can't fathom or think is preposterous...hahaha Hyper you are a real kidder.
Zero prevents rates from dropping forever...and They can't rise forever in a hyperinflationary scenario...
All the other equations in the algorithm must be bent and manipulated...Oil, metal, lumber, psychology, population, the dollar...etc... to satisfy the requirements of the compound interest equation...
The price of oil will collapse when the consumer does unless the oil producers cut supply quicker than demand is cut...
There are bills that need to be paid...so producers that can will cut production and raise wholesale prices leading to retail price rises...
and hyperinflations don't last long and are followed by hyperdeflations...
When Germany reached maximum potential in 1923-1924 their economy hyperdeflated...there were mass layoffs, food riots and German troops were machine gunning people in the streets...The less wonderful aspects of the cycle are not talked about much...workers getting paid with wheelbarrels of money is kinda entertaining...bodies of former workers laying in pools of blood in the streets is not...
It's impossible to inflate forever...so deflation is coming...one way or the other...and when deflation reaches maximum potential...inflation to maximum potential will begin...bury the dead and spray the blood into the storm drains...
The difference between Germany and the USA is the speed...In Germany the inflation took months to reach maximum potential (It's why hyper is added to the word inflation) while in the USA it took years and in the case of the current inflation to maximum potential...decades...
Any hyperinflation that does show up will last months at most followed by a hyperdeflation...or the whole 1944 Bretton Woods global trade system just implodes to oblivion from this point...It's going to implode anyways...game over...
And when Cramer is saying cash is king...all he is saying is that you should sell off all your paper assets in the markets to tards and sit on the sidelines...sell all your positions in the markets and buy silver and gold coins included...silver and gold coins are cash...in an inflation it's he who obtains the most wins...
Let's say you get a ration of food every day...(inflationary phase) two cans...but you save one can a day until you have 365 cans...
Let's say the cans stop...for six months (deflationary phase) well all those without savings die of starvation...but you still have 182 cans of food at the end...many lost their lives during the deflationary phase...you only lost 182 cans of food, survived the deflationary phase and just replenish your stocks...
...in a deflation it's he who loses the least who wins...
All the system can do is inflate to the maximum potential destabilize, collapse, then implode...It is inevitable.
But the psychology or social engineering is all inflationary...The just think positive inflation forever religion...assumes that inflation lasts forever unbroken...and any thought that it does not is negative and negativity is totally rejected by the religion.
The compound interest equation is the key to the system...
All most of you are interested in is placing a bet at the casino based on the myth that the authorities are going to be in a position to press a button which floods the system with money allowing you to get rich...end of story...
Is it possible to start an effective hyperinflation? Yes but it leaves a paper trail right back to the culprits and the end result is a Hyperdeflationary implosion anyway...A more prudent action to take is to stage an event to blame it all on so you can more easily accept your fate...
The magical printing press is a fairy tale told to children to prevent them from having nightmares or asking adults for real answers that would only cause the child to cry.
Ultimately I'm just watching to see how it unfolds...If you want to believe that inflation last forever fine...I don't have to prove you wrong, reality will accomplish that...
In a debt backed by debt system the medium of exchange is debt...
The debt is growing at about 11 Billion dollars a day or 1 Trillion every 90 days
So 4 months or another 120 days and thats another 1,320,000,000,000
Another 1.3 Trillion dollars.
An estimate of the total debt/money supply is around 47 Trillion right now.
The minor economic hic up 2000-2003 was caused by a slowing of the growth rate of debt or the money supply of the USA from 11% to 6.5% a year...
Once maximum potential is reached...It will slow, stop, and turn negative then the USA along with the 314 year old global system will blow out like a candle.
The next recession will be impossible to escape from.
The last recession rates dropped from 6.5 to 1% and the one before that from 10% to 3%. and the one before that 18% to 9%
The volume required for a reflation out of recession this time around exists below zero.
When an enterprise yields a profit of zero or less than zero...It implodes and is liquidated basically.
Are you all working for the FED? Is the FED issuing all your paychecks?
No...Consumers request commercial banks to manufacture money which causes the economy to function and produce all the paychecks.
The minor economic hic up 2000-2003 was caused by a slowing of the growth rate of debt or the money supply of the USA from 11% to 6.5% a year...
That's it...Consumers slowed their requests for commercial banks to manufacture money slightly.
Once consumers hit the wall...A horrorshow that is too horrible to desire to comprehend is going to unfold.
Counting the Bank of North America as the first Central bank of the USA...
The FEDERAL RESERVE is the 4th Central bank of the USA and in the History of the USA more commercial banks have imploded to oblivion than exist now.
The past 64 years is the longest temporary prosperity in history.
And it's almost over.
You can sell a Billion items for a Dollar a piece.
Or a Billion items for 1.014 Dollars a piece to get an increase in retail sales of 1.4%
Or 900 Million items for 1.13 Dollars apiece to get an increase in retail sales of 1.4%
It's why when inflation that is greater than previous inflation to maximum potential reaches maximum potential and turns into inflation that is less than previous inflation to maximum potential the change is so violent.
Like a building that can not sustain the fight against gravity any longer.
Like a soap bubble that pops.
You can blow it up real slow...It's gone in less than a blink of an eye once it can no longer sustain the fight to exist as long as possible.
That is what you all are attempting to accomplish.
The only desire that life can not escape is the desire to exist as long as possible...It's the only desire of a flower.
and retailers.
Of all the schools of Economics I have studied...It appears that you enter them semi aware and if your studies are successful...You graduate comatose.
If you are exceptionally mentally retarded you can get your own TV show like Kudlow and Clowns.
If you are an idiot savant you can be Federal Reserve Chairman.
Freewill...rules do not stop freewill...attempting to stop freewill with rules will never succeed...
ReplyDeleteThe Hell it doesn't! Glass-Steagall did a damn fine job of controlling free will and animal spirits. Once that Depression Era Law was done away with, so was the ability to control the greed that always and forever permiates Wall Street. The law was done away with under Bill Clinton, The NAFTA "let's give all our jobs away" under Bill Clinton, and last but certainly not least, the membership of China into the WTO under BIll Clinton. Dodd who runs the Banking Committee, got a sweetheart deal through Countrywide, but it's because he has good credit...LOL!...are you f***ing kidding me?
Both political groups are actually organizzed crime families who provide protection for tribute. You have to be a moron to believe either group give's a rat's ass concerning J6P.
Go back to the old rules, and you f***ing get rid of all this nonsense. 2 and half to 3 times income, and 25% of gross on the house and 33% on all debt. Period and end of story.
I agree with you concerning where we are headed, but they moved the process along at warp speed with all the new fangled instruments.
We are totally screwed.
"In Germany the inflation took months to reach maximum potential (It's why hyper is added to the word inflation) while in the USA it took years and in the case of the current inflation to maximum potential...decades..."
ReplyDeleteThe next inflation, after this one Hyper is discussing, will take centuries, just a little under ten "then he will be loosed for a little season" by people who again forgot. This one is being so well documented and catalouged, interpreted and argued, and will eventually be taught in home gradeschools and single mastery academies. But learning and holiness must be appreciated {therefore - remembered} to be nurtured.
"Glass-Steagall did a damn fine job of controlling free will and animal spirits. Once that Depression Era Law was done away with, so was the ability to control the greed that always and forever permiates Wall Street. The law was done away with under Bill Clinton, The NAFTA "let's give all our jobs away" under Bill Clinton, and last but certainly not least, the membership of China into the WTO under BIll Clinton. Dodd who runs the Banking Committee, got a sweetheart deal through Countrywide, but it's because he has good credit..."
ReplyDeleteAll 'rules' to delay the inevitable. Once the inevitable day of reckoning was once again on the horizon, the rules were changed or repealed to again delay the inevitable.
The rules did nothing but slow the process by throwing a veil over it. 'See there's no inflation, this made in China doodad used to cost $25 - now it's $10 at Walmart!'
Without offshoring, that doodad would have cost $50 and even the blindest, dumbest, most worthless Americans would have known what was going on.
American greed was never controlled - it simply found other venues. Rules do not stop freewill - rules do not stop greed.
There aren't any 'rule' changes that are going to save us this time...
"The last recession rates dropped from 6.5 to 1% and the one before that from 10% to 3%. and the one before that 18% to 9%."
ReplyDeleteNow its 5.25% to _____.
The Fed no longer has power over the economy. The economy is now limited by energy which the Fed can neither create or destroy. Interest rates will now rise and there is nothing the Fed can do. The Fed Funds rate is a government propaganda tool like the CPI index.
ReplyDeleteIt's going to be fun imploding to oblivion.
The entire fractional reserve structure is not in any ones control, it is never has been. The Fed can only TRY to manage credit creation, but ultimately they do not control it. The wizard of Oz is about to be exposed.
ReplyDeleteCompound interest demands its payment. The system is inherently unstable and about to implode.
This collapse will be equivalent to the fall of the Roman empire. It will take many decades, perhaps centuries to come back from it.
Hyper, the rules/Law did a damn fine job for 80 years. They knew exactly what they were doing in deep sixing the Glass-Steagall Act, and so the debacle has come to pass. I might add that Greensplat being a carnival barker on new fangled mortgages did his part, and then CONgress did their part again by changing the Bankruptcy Laws just in time for the melt down and servitude of borrows to their credit masters.
ReplyDeleteRules/Laws work until those living when enacted are no longer here to warn the stupid borrowers that they are digging their own graves with shovels made in China.
Again, I don't disagree with your premise on Fractional Reserve Banking and Fiat Money, but what was done since 1992 has sped this already speeding train right off the tracks.
This should be helpful insight into the debacle:
ReplyDeleteWhat (Really) Happened in 1995?
How the Greenspan Fed Screwed Up in the Mid-90s and set the stage for the Greatest Financial Bubble in the History of the World.
http://www.itulip.com/forums/showthread.php?t=292
"Again, I don't disagree with your premise on Fractional Reserve Banking and Fiat Money, but what was done since 1992 has sped this already speeding train right off the tracks."
ReplyDeleteWhat was done since 1992 has kept the train ON the tracks, without which we would have imploded.
There's no more tricks to pull out of the hat now.
Hyper, I disagree with your premise that what was done since 1992 has kept the system on the tracks. While all Fiat Money will always go to zero, it's length till doomsday is determined by the actions of the theives in all their various forms. We could have continued with a modest yearly increase in the inflation of money and credit for many years if not decades, but the crooks in suits decided to let the animal spirits run wild. I certainly understand the concept of the exponential growth of money and credit in order to keep everything going, but the greed displayed by the suits killed the goose that layed the Golden Egg, and it was the last of it's species.
ReplyDelete