Monday, November 17, 2008
Game Over Slowly
All the infusions to date are just loans to banks to keep them from collapsing. Not so they can lend more money out...they are collapsing due to consumer exhaustion...
Consumers request commercial banks to create credit...
"The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money."--Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3
The FEDERAL RESERVE did not exist prior to 1913...But Commercial banks did...
And Credit is not actually money...it's credit...but since it does everything that money does...It's money...The only difference between it and actual money is it's issued (created) by commercial banks when a consumer requests a commercial bank to loan them money...So it starts out as debt owed from the moment of creation...Other forms of money start out debt free and need to be acquired by a lender and have interest attached and then lent out in order for the money to undergo transformation into debt...
So Credit is money and it's also debt.
A US consumer requests a commercial bank to advance them x amount of future income using their current income or assets as collateral backing the request.
US consumers request commercial banks to manufacture money.
Lets say to buy a house...lets say $250,000...well the bank creates an asset of $250,000 and a liability of $250,000 and attaches interest to the asset and gives it to the consumer...
As the consumer pays off the debt...the asset and liability shrink by the principal amount and the bank keeps the interst as profit...
So the money created and spent into circulation eventually returns to where it came from over time as it's paid off.
It's why the banks like amortization...Because at the start the principal repayment is small compared to the interest payment...and the economy likes it because the money created circulates for decades.
The US real estate sector began collapsing in 2006...and by late 2007 the losses started piling up.
Up to this point...the US economy is short 1.4 Trillion dollars and the banking system is out 1.4 Trillion in revenue and profit.
All the infusions to date are just loans to banks to keep them from collapsing due to the slowing of the growth rate of the circulating money supply because US consumers are exhausted...
Not so they can lend more money out...they are collapsing due to consumer exhaustion...which has led to 1.4 Trillion less money being created by consumers.
Credit reserves are piling up in the FED because consumers are exhausted and are not requesting commercial banks for loans.
Consumers/workers...power the FED...not the other way around...
Until the US consumer pays down their debt to the point they can go on another insane gorge fest...There are going to be no B-52's
Year to date the US economy is short 1.4 Trillion dollars of liquidity...by the end of the year 1.8 Trillion.
There is 42% less money being pumped into the economy this year than last...the credit freeze in banks is due to consumer exhaustion that started in late 2006...It's just now that all this is showing up.
Start subsidizing consumers...send them emergency postponement of the end of the world checks.
Key problem...It could not be kept secret...So then hyperinflation would be the moronic bet again...and the system would hyperinflate to insanity within 18 months or so...but then it would start to collapse once it reached the point where it would be impossible to account for...It would take longer for the computation to be done than what the system requires and it would all grind to a stop and implode to oblivion anyways.
I can't see anyone agreeing to that course of action...The USA is connected to the world...the whole world would hyperinflate...not just the USA...
Unless the world agreed to hyperinflate then hyperdeflate to game over...they will just continue down this current path trying to manage it down to game over slowly.
The stock market will have to bounce soon...Global markets are being managed down...because someone has to be buying this all the way down or all this forced selling would just implode global markets to zero in a few hours...not day after day of down.
The bounce will allow the buyer to sell into strength to recharge for the next leg down of forced selling.
The bottom was not in 1929...it took the markets until 1932 to hit bottom. The markets are powered by the economy...and the general economy is not even in recession yet...
The collapse currently is just forced selling by all the braindead morons that placed massive leveraged bets that hyperinflation was on the way and lost....Once that ends the markets will most likely begin a series of waterfall declines...
The FED is not engineering anything...
All they have done to date is help slow the implosion...The implosion that is the logical conclusion of the compounding interest equation...that you all are oblivious of.
Without all the actions taken...most of you would be starving to death...dying of thirst...or exposure to the elements.
You all don't have the foggiest clue how the system you are in actually works.
All you are currently doing is self deluding each other....brainwashing each other to reinforce the belief thet the FED is the cause of the system when in fact the system is the cause of the FED.
The FED is the Third central bank of the USA...It along with the economy will reach maximum potential and implode at some point...The top will just hire the survivors to construct the next delusion you all will cherish until it reaches maximum potential and implodes.
The first central bank was the bank of Venice in 1172...It along with the global system before this current iteration imploded to oblivion in 1345...
The first commercial bank like you see them in operation today appeared in Spain 1400.
Basically you are all Neo's waking up in the real world...and the first thing you have been told to believe is truth is Morpheus's delusion.
The top or employers want to employ you all...working hard to believe that the FED is the cause of the system...and not them.
Shifting blame onto a scapegoat:
"The Pet Goat" is a children's story contained in the book Reading Mastery II: Storybook 1, by Siegfried Engelmann and Elaine C. Bruner (ISBN 0026863553). The book is part of the thirty-one volume Reading Mastery series published by the SRA Macmillan early-childhood education division of McGraw-Hill. It uses the direct instruction teaching style."
"The story gained notoriety because U.S. President George W. Bush, as part of a photo op, was reading it with Florida schoolchildren at the time he was informed of the September 11, 2001 attacks by then White House chief of staff, Andrew Card."
"In modern Satanic theology, the pentagram is far more likely to represent the individual, or the choice to pursue individual glory or immortality rather than union or absorption with the divine- where some traditions advocate the sublimation of the ego or submission to god, Satanism exalts and glorifies it, deifying the human being. The symbol most commonly associated with Satanic practices is the "Sabbatic goat" or Goat of Mendes pentacle, often confused with Baphomet, a figure from Templar legend"
"The symbol of Baphomet was used by the Knights Templar to represent Satan. Through the ages this symbol has been called by many different names. Among these are: The Goat of Mendes, Sabbatic Goat, The Goat of a Thousand Young, The Black Goat, The Judas Goat, and perhaps most appropriately, The Scapegoat"--The Satanic Bible by Anton LaVey, Book of Belial (earth): The Satanic Ritual, pp136
"The scapegoat was a goat that was driven off into the wilderness as part of the ceremonies of Yom Kippur, the Day of Atonement, in Judaism during the times of the Temple in Jerusalem. The rite is described in Leviticus 16. The word also refers, in modern parlance, to one who is blamed for misfortunes, often as a way of distracting attention from the real causes."
"Two very similar-appearing male goats were brought into the courtyard of the Temple in Jerusalem on Yom Kippur as part of the Holy Service of that day. The high priest cast lots for the two goats. One goat was offered as a burnt offering, as was the bull. The second goat was the scapegoat. The high priest placed his hands on the head of the goat and confessed the sins of the people of Israel. The scapegoat was led away and let go in the wilderness according to Leviticus 16:22, although the Talmud adds that it was pushed over a distant cliff."
"In modern Hebrew Azazel is used derogatorily, as in lekh la-Azazel ("go to Azazel"), as in "go to hell"."
"Azazel (Hebrew: עזאזל, Arabic: عزازل Azazil) is an enigmatic name from the Hebrew scriptures, possibly referring to a fallen angel or Satan. The word's first appearances are in Leviticus 16, when in the ritual for Yom Kippur the scapegoat is to be taken to Azazel and cast into the wilderness, but this text by itself is unclear as to the actual identity of Azazel.
The Talmud (Yoma 67b) and later commentators maintain Azazel was the name of the precipitous cliff where the goat met its end."
"The Sigil of the Baphomet: This is a pentacle form (The goats head in the circle), with two points pointing upwards, one downwards, and one to each side. This is an upturned or inversed pentacle."
Compound interest is the false GOD you all worship aware or not...
Give the LORD what it demands or die...Before like now it demanded more yield and the fix Greenspan and crew came up with worked...And postponed the wrath of GOD for a few more years.
But this time around the US consumer is maxed out so there is no way all you can pay the tribute demanded by the LORD any longer...So game over.
You all will be hacking yourselves to pieces like animals for nothing at all in the end.
Posted by Cheryl-Lynné at 7:00 PM