Saturday, October 11, 2008

The World Goes Poof




Unless there is acceleration in forced selling a bounce is due at some point...1929 was not the total crash...it took until 1932 to hit bottom...




If what you create attempts to destroy Truth...Truth will destroy what you have created. There is never a lasting victory over lies and the war to defeat truth has no exit strategy and always ends in defeat.

The system is imploding because all the just think positive ignore the negative drones at the start could not see the logical conclusion...the implosion.

It's negative...It's ignored...All that the drones see is the positive...until they arrive at the logical conclusion then they are forced to see what they have been ignoring all along because it becomes impossible to ignore the negative any longer.

To them Truth is negative because the lies that they tell to themselves and fall in love with are positive.

In 1944 Bretton Woods set up the new Global system to replace the one that caved in 1929-1933.

It made the US Dollar the global trade medium of exchange...

By default that made

The US consumer the demand of the world.

The USA the supply of inflation.

The rest of the world the demand for US Dollars.

The rest of the world the supply for the US Consumers.

The rest of the world the demand for inflation.

And for 64 Years the US consumer requested commercial banks to manufacture more and more US dollars to inflate the world.

But there is a maximum potential of debt US consumers can service...and in late 2006 they reached maximum potential and were forced to stop requesting commercial banks to manufacture more and more and more and could only request less and less...

The biggest engine of inflation on Earth, the 37 year old real estate bubble, then began collapsing...and since then to now the consumer has grown more and more exhausted and the daily growth rate of the money supply of total debt has collapsed by 42% and caused a deficit of 1.4 trillion dollars in the US economy...basically starving the banking system of revenue and profits...causing them to cave in...stock markets to collapse...

There is nothing that can be done...the US consumer is exhausted after sustaining the inflation of the world for 64 years and it's game over...

They need to stop and pay down debt...but the world runs on credit...credit that consumers request commercial banks to manufacture...debt.

The world can't wait for US consumers to stop and pay down debt...so...world go poof.

Yes this is a normal economic cycle...

It's a wave...Inflate greater than previous inflation to maximum potential and then inflate less than previous inflation to maximum potential.

The old pre 1900 wave was smaller because there was not high technology that needed to be sustained.

There were depressions all the time pre 1900...but back then when the system collapsed the two horse family could eat a horse to survive a winter...now you can't eat an SUV or as they found out in the 30's...a model T...

The current modern technological version of the absolute capitalist hierarchial food powered make work enterprise is not compatible with what the Austrians call...the natural cleansing process.

So it has to be sustained forever...Unfortunately the conpounding interest equation at the core of all the accounting algorithms can't be sustained forever...

Ultimately reguardless of what is done...the system can only inflate greater than previously to maximum potential and then inflate less than previously to maximum potential...

Since it's not designed to inflate less than previously to maximum potential...it implodes.

It was doomed from square one...

It is a doomed system...All it does is inflate to maximum potential and implode...the survivors are hired to build the next system.

The employers hire you all and work you til the day you die or are no longer needed and lay you off or fire you.

Or you can be self employed and work yourself until the day you die to avoid the layoffs and firings.

All the system can do is inflate greater than previous inflation to maximum potential and then inflate less then previous inflation to maximum potential...

Inflate then implode...the top then hires the survivors to construct the next march to doom with glee.

Bankers need a consumer to sign on the dotted line. Without that...the bankers are game over...

The lenders of the world who demand more in return than they give as a condition for helping...Need someone to agree to that...

Or they can't operate.

The bottom supports the top...The top does not support the bottom.

US consumers became exhausted in 2006 and since then have slowed their requests for commercial banks to manufacture more new money...

The inflation flow through reached maximum potential in 2007...and now it's all heading to the basement.

Consumers have requested 1.4 Trillion dollars less than last year...by the end of the year it will be 1.8 Trillion...All the money being pumped into the banking system...Is trying to replace that loss of revenue and profit.

The US consumers are maxed out...there is just no way they can continue requesting the required amount of new money the compounding interest equation is demanding.

US consumers maxed out and their requests for commercial banks to manufacture the required amount of new money to service the continued existence of the previously requested money began to decelerate...

In late 2006...and by late 2007 their requests collapsed to the point that the daily growth rate of the money supply slowed by 42% the most in 62 years.

Basically depriving the US economy and banking system of 1.4 Trillion dollars of revenue and profit.

Causing the banks and economy to deflate.

The hyperinflation was hidden with accounting tricks...the US manufacturing sector was exported out of the USA to low wage and slave wage zones...like China...beginning in the late 1970's when the USA was actually beginning to Hyperinflate.

The below chart is the money supply or total debt of the USA...looks like a big doomsday spike to me...All the money supplies of the countries of the world look like that.

The tick at the top that looks like it's turning...It's not that bad...that's just two quarters of data...but there is no doubt...the US consumer is maxed out and is no longer able to keep the below chart shooting to the moon...That tick at the top represents the greatest slowdown of the growth rate of money supply in 62 years...

The money supply that US consumers have requested the commercial banks to manufacture.




Two more charts...one I drew in 2006 with a money supply of 400 Billion that compounds for 62 years at 7.49% average interest rate per year and you end up with 41 Trillion dollars

The other what US Consumers drew from 1944 to 2006...400 billion to 42 Trillion dollars after 62 years.

Here it is again...All the people lend and relend money into the system...until they at the top own the entire money supply and then the only way you all at the bottom can use money is by renting it...

Same thing as owning all the spaces on a monopoly board...









It's always debt backed...

Attach interest to money...lets say a dollar...

I give you 1 Dollar...you give me back 1.05...the money is now .95 money .05 debt.

Keep doing that year after year and by year 14 the money becomes 0.2 money .98 debt.

Eventually the top (all the rich people) suck up the entire money supply and it becomes their private property and the only way the bottom can utilize it is by renting it from the top.

The system implodes because of interest attached to the medium of exchange...

A silver economy? Once the demand for money is greater than the mines can produce...a silver economy caves in...

Attaching interest to money increases the demand for more...

I'll give you 100 silver pieces as long as you give me 105 back.

Imagine all the idiots in a system demanding more back than they give...at some point the mines will not be able to keep up and the economy will implode.

Which is why we have the current system...the top owns the system you are all employees of...and the top owns the money supply and to keep the bottom supports the top game going...the top changed the content of what the money is made out of to get past the point where all the idiots trying to live off interest exhaust the mines.

Currently US consumers are requesting commercial banks to manufacture 7 Billion dollars a day to sustain the USA (it's not enough currently because if you haven't noticed...the banking system is caving in) but anyways just to sustain this imploding to oblivion system...

Lets convert that into silver...works out to 703,517,588 ounces of silver a day just to sustain the silver economy...or is it?

The United States produced 1,200 metric tons of silver in 2007

1 metric ton is 1000 Kg

so 1,200,000 kg

1 kilogram = 32.1507466 troy ounces

2007 US production 38,580,896 troy ounces or on average 105,701 ounces of silver a day.

Lets say we use the 1792 coinage act to define the Dollar

1 troy ounce = 480 grains

so 50,736,521 grains per day

"Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."

I'll use pure silver

Enough silver from mining operations to manufacture $136,664 a day.

But the economy needs 703,517,588 ounces of silver a day just to sustain the silver economy...

What is that in Dollars? $609,288,405.

Monetary demand is at least 4458 times more than supply.

Punchline 1

1200 metric tons covers only 35% of the US's current silver consumption...the other 65% is imported from Mexico, Canada, Peru, and Chile.

What are you going to use to pay for the imports of silver? Silver?

Then factor in...What is the US Treasury going use to buy silver? In order for the silver economy to work...the face value has to be worth more than the content of the coin or it will not circulate or just get melted down.

So then the US Treasury/US government must have some way to fix the wholesale price.

The only way a silver economy would work is if the population of the USA was reduced to 19th century levels or to when demand for silver was less than mine production and a trade balance maintained...and the easiest way to accomplish that is to just not trade because as soon as a deficit occurs...silver would circulate out and not come back.

Silver was money for 1000's of years...

The City of London invented the Gold standard to control the world...

The whole goldbug religion can be traced back to the pre 1900 fights by the City of London to get the USA on the Gold standard and off the silver standard.

The Goldbugs ultimately destroyed the 1792 defined US Dollar....when the City of London backed gold republicans lead by Mckinley passed the 1900 Gold Standard Act...Which changed the US Dollar from silver backed to Gold backed.

The City of London controlled the global gold supply and distribution network.

checkmate...

The top owns the gold and silver markets...the bottom doesn't

They own the auditors...Everything...the top hired the bottom to construct the system...the top didn't design to system to transform them into destitute bums...

Get it yet?

There's the official City of London "FIX" price and then the price you pay in the thunderdome...

Fractional reserve banking works like the below.

You want to buy a house and don't want to save up money since it would take decades too and you need a house now.

You need $200,000 so you go to a bank and ask for a loan...and if your current income is adequate the bank advances you $200,000 of your future income to spend now.

By creating a $200,000 asset and a $200,000 liability and attaching interest to it.

When you pay the principle and interest due on the first payment the liability and asset drop by the size of the principle payment...and the bank keeps the interest.

Why does the bank get rent paid to them for money they create out of thin air?

Because they are not creating money out of thin air...they are issuing credit to you...and since all the credit in the system was created by the banks they own it all...It's theirs...to do with as they please.

The above mentioned process of merchant bankers took place centuries ago...

That's how long the bottom has been renting the money supply from the top.

All that is in circulation is owed to the top...the bottom rents.

It's how European civilization has been operated for 1000 years.

It's just now in this modern age where all the descendants of chattel slaves need to be educated that they are beginning to slightly grasp what has been going on for many many centuries.

"To the extent that banks lend their own savings, or mobilize the savings of others, their activities are productive and unexceptionable. Even in our current commercial banking system, if I buy a $10,000 CD ("certificate of deposit") redeemable in six months, earning a certain fixed interest return, I am taking my savings and lending it to a bank, which in turn lends it out at a higher interest rate, the differential being the bank's earnings for the function of channeling savings into the hands of credit-worthy or productive borrowers. There is no problem with this process."--Murray Rothbard

A lie...

You send money into circulation under the condition that when you get it back you get more back.


You are always taking more than you give...eventually you and all the rest of the merchant class will suck up the entire money supply and the only way for the rest of the people in the economy to utilize the moeny supply is by renting it.

Now lets say you are in a static monetary system...or hard currency system...

Eventually the interest due or rent on the money supply owed to the merchant class becomes greater than the growth rate of the money supply or mine output...

It eventually becomes impossible for the bottom to pay the rent they owe the top...and the economy collapses.

Sorry Murray N. Rothbard...There is a little problem with your thinking.

From a Wikipedia link:

"At one time, people deposited gold coins and silver coins at goldsmiths, receiving in turn a note for their deposit. Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of the goldsmiths' notes."

BS as far as I can tell.

Once the money supply was sucked up by the merchant class and became their private property...The money supply was theirs...to do with as they pleased.

But of course the problem of the rent due greater than growth rate of the money supply problem needed to be solved...

So the merchant banker class issued credit that all the other merchants accepted in order to keep the money renting game going...and since the merchants were the middle men in between the farmers and the workers...You either accepted the credit to buy food or you starved.

Actually there was plenty of small coinage for the peasents because the more well to do members of the system liked the idea of not have to lug bags and chests of money around leaving plenty for peasants to play with.

Thou shalt not kill does not protect the good from the evil...

It protects the evil from the good.

Like really? Who goes around killing good people? Good people?

But you all just sit back waiting for a champion...a Superman...to show up and save you.

And yes I am isolated from all this...I destroyed all my cherished delusions years ago...

So I have nothing that is being threatened...

I know what is going on so I'm not doing anything...I prepared 10 years ago...

It's the rich vs the poor...

You all won't realize this until you are totally and utterly wiped out...poor...

Right now you are all far too rich...You would all have to attack yourselves...

The top maintains their position by giving the bottom what they want.

You all are still desperately in love with this inevitably doomed and blowing up in your faces system...

Construction of a new system will not occur until the destruction process is complete.

Depending on how old you are...You have years of misery to live through until the next construction phase.

4 comments:

Anonymous said...

Hypertiger,
What's the point? I've been reading Cheryl's site for a few months now and you just keep making the same point like a recursive rondo. If we're all fucked why bother? I'm not saying your wrong, but you don't offer any solutions; so again, why do you post?

MogwaiHunter said...

anonymous said... 'Whats the point?'

Now that is a good question. That is one we would all like to have the answer to.

How do you expect one brilliant man to answer the ultimate question that Man has been asking since day one?

As far as I can tell, we are stuck in a loop that is going to be hard to break out of if not impossible. Even if some natural disaster took place and threatened the planets survival, those who would survive would be the ones who have invented this system and so we will continue this in perpetuity for all time.

What is the point?

Why did you post the question?

What is your point?

Do you have any solutions?

Are there any solutions?

!

?

Cheryl-Lynné Rose Henderson said...

No solutions are offered because there aren't any.

I think the most important thing is being psychologically prepared. If you've been reading a few months, then you've had time to do that.

You would also be out of the stock market so that you aren't watching your life 'savings' go up in smoke like everyone else in the world. You would be stocked up on food and any other necessities you feel you might need, so that when global commerce shuts down (as it is in the process of doing now) you and your loved ones won't do without and/or starve.

As HT has stated, the whole purpose is to buy time so that you won't panic (or have a need to)along with the rest of the herd.

Under the circumstances, that's the best that you can hope for - to buy time.

Personally, my hope is that someone reading this blog will survive what is coming and pass on what they have learned here so that we're the last group of suckers who goes through this. (I like to dream big!) :-)

Anonymous said...

If precious metal (something) was your monetary anchor being somewhat finite but flexible enough to add limited amounts of new reserve due to mining I would think that your coinage would adjust in value (float) whether you had robberies (depleting reserves)or excess mining (above the birth rate). You know....like built in deflation or inflation adjustments but in real time as you carry coin in your pocket. A loaf of bread could always be the same price but the coin value would always be adjusting to conditions. I thought that was the beauty of silver and gold. Of course being simple minded I wouldn't expect someone to pervert the process and/or not be complacent with muted growth.