The People Will Demand Blood...

From Bush's speech:

"Well, most economists agree that the problems we are witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad, because our country is an attractive and secure place to do business."--George W. Bush

The money that foreigners are sending to the USA are US Dollars...What you say...where are they getting these Dollars?

Well a US consumer goes to a commercial bank and requests that bank to manufacture money...and if the Bank agrees...the consumer gets money...

Lets say to purchase a House that requires the bank to manufacture 200,000 dollars.

And the house is bought...

Basically blowing all the money into the US economy that is dependant upon imports of finished products from places like China (Foreigner) who is in turn dependant upon the US consumer to buy all that China exports to the USA because China is dependant upon 300 million US Consumers since they export to the USA and world based economy with the US hands down by far the largest consumer on Earth...

Well why do they send US dollars to the USA?

To buy treasuries...nifty thing about bonds...when they are bid up in price the yields drop...and the bond markets set the rate at which commercial banks lend...

So bid bonds up...yields drop and American consumers can sustain their consumption of massive imports from China and the rest of the world so that the Chinese workers can sustain their employment so that they can buy houses and cars.

Sounds wonderful...stack up all my chips on that bet...

but wait...

What if US consumers request all the money they can possibly request commercial banks to manufacture and instead of more and more money at lower and lower interest rates the US consumer is forced to request less and less...

To make a long story real short...The USA along with China and the rest of the world stops inflating after 64 years and implodes to oblivion...

OMG then we better sign on to the 700 Billion Bail out...

In 1944 US consumers were requesting the commercial banking system to manufacture 8 million dollars of new money a day...

At the time the total money/debt supply was 400 billion.

By the year 2000 The money supply or total debt had inflated to 25 Trillion and US consumers were requesting the commercial banks to manufacture 5.8 Billion dollars of new debt/money a day.

By the end of 2007 the money supply or total debt was 49.7 Trillion and US consumers were requesting the commercial banking system to manufacture 11 billion dollars of new money/debt a day...

Seen the growth in China? That's where most of this money is being exported to...

And right now q3 2008 the total money supply or debt is 51 Trillion dollars and US consumers were requesting the commercial banking system to manufacture 5.6 billion dollars of new money/debt a day...

Stop the presses...the money supply growth has slowed right down...to below the level that existed back in 2000.

5.2 Billion less/day than the end of 2007...for a loss of 270 days x 5.2 Billion or 1.4 Trillion less money flooding into the economy than in 2007

1.4 Trillion - 700 billion...= still 700 Billion short and the deficit is growing by 5.2 Billion per day

And it's going to keep growing because...after 64 years the US consumer has requested the commercial banking system to manufacture the maximum potential amount of new money possible...and are now being forced due to the construction of the Universe to request less and less and less new money.

What does that mean.

What if US consumers request all the money they can possibly request commercial banks to manufacture and instead of more and more money at lower and lower interest rates the US consumer is forced to request less and less...

To make a long story real short...The USA along with China and the rest of the world stops inflating after 64 years and implodes to oblivion...

But if Bush were to have said anything like that the whole world would have caved in at that point...

Good thing nobody knows anything about economics.

You all are in debt up to your eyeballs...

The total money supply of the USA is 51 Trillion dollars...of debt. It works out to $331,168 of debt for every worker in the USA. The cost to service the continued existance of the money supply of the USA?

Is hidden in the cost of everything.

If you can't produce your own food then you are certainly in debt to the farmers...how about light? you are in debt to the power companines...

And the top owns all below so unless you are the top you are in fact in debt...

And since you are logged in...you certainly are not running free in the wilderness...

Attaching interest to the medium of exchange is the encouragement...The cause of the excessive borrowing.

The FED is just a facilitator.

You all want more and more and more...and if someone were to say no you can't have any more...You would get rid of them and find someone that would give you more and more and more.

The cause of a credit crunch is not excessive borrowing...

The cause of a credit crunch is not enough borrowing...

Not enough demand.

Not enough consumers requesting commercial banks to manufacture the required amount of money needed to sustain inflation.

Why...interesting thing...there is such thing as maximum potential...due to the construction of the Universe inflation greater than previous inflation has a maximum potential...so does inflation less than previous inflation...or deflation.

No amount of malinvestment of energy into thinking positive can breach the maximum potential barrier.

Here's the best part...Regardless of how much more you all want...there comes a point where it is impossible for an individual human being or all of humanity to obtain any more...

When the consumers max out...that's it.

game over...fantasy over...

And that's what the cause of this is...

It's a credit crunch...The banks have plenty to give to consumers...

Unfortunately consumers are maxed out and can no longer request enough money to sustain the inflation of the system.

The result is that it's deflating now...

The below from The Guardian, Saturday August 23 2008

"Bernanke called the combination of a financial storm and rising inflation "one of the most challenging economic and policy environments in memory", admitting that despite substantial cuts in the official cost of borrowing the turbulence had not abated. The effects of the credit crunch, he added, were now causing slower growth and rising unemployment."

The below from some pdf talking about the 1991 recession

"Bernanke and Lown (1991) define a credit crunch as a decline in the supply of credit that is abnormally large for a given stage of the business cycle. Credit normally contracts during a recession, but an unusually large contraction could be seen as a credit crunch."

"Bernanke and Lown attribute this reduced lending activity to demand and supply factors. Loan demand has been weak because borrowers’ balance sheets have been weaker than normal, and as a result, borrowers have been less credit worthy than usual."

A nice way of saying borrowers or consumers are full up and are unwilling or unable to request any more new debt...money ...credit.

Since in the current system...money debt and credit are basically the same thing.

And don't worry about bank failures the whole global system is going to implode to oblivion this time around reguardless what any idiot or group of idiots do.

Reserve bank credit is based on supply and demand...the greater the demand for withdrawls the greater the supply of credit that is needed....when the money supply increases the amount of reserve bank credit had to as well...or if there is a chance of an increase in withdrawls.

Y2K there was a risk of bank runs due to the threat of a panic starting from a rumor...that's the huge spike..the little one to the right is the panic after 911.

The lastest spike up is to guard against bank runs...In reserve banks

The current situation is a credit crunch...A credit crunch happens when consumers become exhausted and are either unable or unwilling to request commercial banks to manufacture the required amount of money to sustain inflation of the economy.

Now perspective

The USA like every other country/economic zone on Earth has a credit system...

That people call money...and ultimately credit is debt.

The FED calls the money supply "total credit market debt"

And in 2000 the total money supply or debt of the USA was 27.1 Trillion dollars.

Top sucks from the bottom so ultimately that is what the bottom (all below the top) owe the top...

The Reserve Bank Credit at the end of 2000 was 578 Billion

Which is 2% of the total debt or money supply of 27.1 Trillion dollars

well since 2000 until now...

US CONSUMERS HAVE REQUESTED THE COMMERCIAL BANKING SYSTEM TO MANUFACTURE ANOTHER 24 Trillion dollars of new money...credit...debt.

and the Current money supply or debt of the USA is 51 Trillion dollars.

We are in a credit crunch...a credit crunch is when the consumers become exhausted and are unwilling or unable to request commercial banks to manufacture the required amount of new money to sustain the inflation of the system/economy.

Money supply 2000 was 27.1427 Trillion

2001 29.3278 Trillion

Growth rate per day 2000-2001 roughly...6 billion dollars a day.

What does that mean?

That means on average US consumers requested the commercial banking system within the USA to manufacture 6 Billion Dollars of new money per day...and the money supply of the USA increased from 27.1 Trillion dollars in 2000 to 29.3 Trillion dollars in 2001 as a result.

Guess what? Since the same system is in operation within every other country/economic zone on Earth...their money supplies are all increasing in the same way...

Ok 2002 31.8294 Trillion Dollars

Growth rate per day 2001-2002 roughly...6.8 Billion dollars a day.

2003 34.6065 Trillion Dollars

Growth rate per day 2002-2003 roughly...7.6 Billion dollars a day.

Just a taking a break for more perspective...The total money supply of the USA was 400 Billion in 1944 and US consumers were requesting the commercial banking system to manufacture 8 Million dollars a day...

The growth rate of the total money supply of the USA from 2002-2003 was 1000 times more per day than it was in 1944...amazing...no?

Dang where does all that there hyperinflation go?

One other tid bit...what about the recession 2001-2002 in the USA?

Well that was caused by a drop in the rate of growth of the money supply per year from 11% to 6.5% per year...and doesn't even show up in the current method in which we are looking at money supply growth.

But now...Back to money watch...

2004 37.8082 Trillion

Growth rate per day 2003-2004 roughly...8.8 Billion dollars a day.

2005 41.2515 Trillion

Growth rate per day 2004-2005 roughly...9.3 Billion dollars a day.

2006 45.3470 Trillion

Growth rate per day 2005-2006 roughly...11.2 Billion dollars a day.

Ok just in case your head is hurting and you don't comprehend...

Ever asked for a loan or used a credit card...you know signed on the dotted line?

All this new money that makes the money supply grow...is requested into existence by US consumers whenever they ask for a loan...

Like a consumer wants to buy a house or car but doesn't have the money and requests a loan...and if the consumer meets the requirements and signs on the dotted line...the money or "credit" is issued to the consumer...simple.

for example...from 2005 to 2006 US consumers requested the commercial banking system in the USA to manufacture on average...11.2 Billion Dollars of new money a day...causing the total money supply of the USA to grow from 41.25 Trillion dollars to 45.35 Trillion dollars.

That's where money comes from...It's been like this for over 100 years in the USA.

Just so you know...the last time the Government of the USA issued money outside of the commercial banking system...or printed money with no backing were the Greenbacks of the civil war 140 years ago...

2007 49.7608 Trillion dollars

Growth rate per day 2006-2007 roughly...12 Billion dollars a day.

2008 which we are only 2 quarters or 6 months into...51.0190

Growth rate per day 2007-to q2 2008 roughly...6.9 Billion dollars a day.

Hold the presses...

The growth rate of the money supply of the USA...has...slowed down to what it was over 6 years ago...

The recession of 2001-2002 was due to a slow down that doesn't even show up...and now poof...the money supply of the USA which has been growing faster and faster for basically 64 years has all of a sudden slowed...massively.

Well compared to last year...by how much?

First 2 quarters in 2007 was 47.3495 Trillion dollars

Growth rate per day 2006-to q2 2007 roughly...11.1 Billion dollars a day.

11.1 Billion - 6.9 Billion = 4.2 Billion Dollars a day less new money being requested by consumers to be manufactured by the commercial banking system...

To Oct 2008 using those numbers to estimate...1.260 Trillion less money flooding into the economy of the USA compared to last year...1.260 less growth of the money supply.

consumers have slowed their requests for commercial banks to manufacture new money...dramatically.

A reminder if you forgot...

The current situation is a credit crunch...A credit crunch happens when consumers become exhausted and are either unable or unwilling to request commercial banks to manufacture the required amount of money to sustain inflation of the economy.

Oh one other thing...

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."--Ben Bernanke

The money supply is clearly not growing as fast as it was the past 6 years...

I can remember back in 2002 when Ben said...don't worry children...we have a magic weapon that can slay GOD...

And you all believed Ben...because you are sheep that haven't the foggiest clue how the economy or banking system operates...

The presses were not turned on or anything...from 2002 till now it was US consumers requesting commercial banks to manufacture all that new money...

Hell from 1944 to now it was was US consumers requesting commercial banks to manufacture all that new money see chart below.

All Ben said was...

"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost."

And you all believed it...

I did not because unlike you all...I KNOW HOW THIS SYSTEM ACTUALLY FUNCTIONS.

I know there is no magic printing press...only sheep believe that myth.

I have to listen to you all rebroadcast the lie...year after year now.

700 Billion is the bailout but to date the growth deficit is 1.2 Trillion.

Your dreams of hyperinflationary slavation are going to transform into the nightmare of deflation one way or the other...

At this point there is still hope...

Because hyperinflation is still possible (It must be...you clowns are still waiting for it to show up)...and once it reaches maximum potential will be followed by a hyperdeflationary implosion.

or there is no hyperinflation and we just crumble from here and suffer a hyperdeflationary implosion.

Below is a chart shows the hyperinflation of the total money supply of the USA 1944-2008 that you are all unaware of...

The Hyperinflation caused by consumers requesting commercial banks to manufacture new money.

Where does all that hyperinflation go?







The hyperinflation shows up in places like China where it's exported to...

China implodes without the USA to pump it up.

The USA inflates the world due to it being made the demand of the world in 1944 with the US dollar becoming the Global trade medium of exchange...





"A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others. Usually the goal of an SEZ structure is to increase foreign investment. One of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years"

That's some pretty massive hyperinflation...

"Shenzhen is a city of sub-provincial administrative status in southern China's Guangdong province, situated immediately north of Hong Kong. Owing to China's economic liberalization from the policies of reformist leader Deng Xiaoping, the area became China's first - and ultimately most successful - Special Economic Zone."

Guangzhou is the capital and a sub-provincial city of Guangdong Province in the southern part of the People's Republic of China.

"In August 1980, the National People's Congress (NPC) passed "Regulations for The Special Economy Zone of Guangdong Province" and officially designated a portion of Shenzhen as the Shenzhen Special Economy Zone (SSEZ)."

First consumers maxed out...causing the crunch...Which lead to the banks having to turn down businesses that were unaware that the US economy was caving in by looking at their business plan.

If the business is asking for money based on a business plan that is not taking into account the slowdown...then a bank can't supply a business with any money...or at least shouldn't.

But the bank can't tell people that a slowdown is in progress since they could cause an acceleration of it.

An the banks are not lending money...they manufacture money...actually credit...that is debt.

That's what commercial banks have been doing for 600 years...

Its just in the last 60 or so years that the peasants have started to become aware of it.

Rich people appear to run the show...last I looked.

It's kinda obvious...To me...long ago.

Have ruled for 1000's and 1000's of years...like try 6000 or so...

I keep showing the evidence and the nifty accounting tricks...the whole thing...but you all seem to think someone or something else runs the show...

Ah....because you all want to be rich...no wonder you all can't take it from there...

The top funds all sides so all the players are being positioned on the game board...

War is great cover for the collapse of the global trade system...Sorry people we must accept these austerity measures...

maybe they need the 700 billion to put the finishing touches on the scapegoat...

It's like this...spread some money around which will cause a very short term prosperity fooling people into thinking the bailout worked and that the economy is onto the road to recovery...then all you need to do is cause the war before the prosperity ends...

Then say dang...everything was going great...but then (Insert name of culprit here) caused (insert incident) and the economy is imploding...and we have to institute all these austerity measuries...what a rip...

The population will fall for it and demand blood...basically a replay of the solution to the 1929-1933 collapse of the global trade system.