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.

30 comments:

  1. No, the brain dead zombies who eagerly embrace their mind control slave masters wont hack each other to pieces. There are 250,000,000 million guns in private hands in America. Since the US population is 304,000,000, that means there is (almost) one gun for every man woman and child in the country.

    When the store shelves are empty, when there are National Guardsmen stationed at supermarkets with belt fed tripod mounted M60 machine guns, when there is no emergency medical care or fireman or police willing to go into YOUR neighborhood, when there is no Social Security or Medicare or Medicaid, what do you think the zombies are gonna do? Load up them 30 round clips, thats what they are gonna do.

    Celente predictions:
    “It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more.”

    “We’re going to start seeing huge areas of vacant real estate and squatters living in them as well. It’s going to be a picture the likes of which Americans are not going to be used to. It’s going to come as a shock and with it, there’s going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people’s minds weren’t wrecked on all these modern drugs - over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate folks"

    http://tinyurl.com/69klro

    And a very nice rant on the end of the real economy

    http://tinyurl.com/54rhtp

    Like Jack Nicholson said to Tom Cruise:

    "The TRUTH??......The TRUTH??
    You cant handle the truth!!!!"

    Me, I'm moving to Costa Rica, just hope I can time it right before they shut down outbound air travel.

    LMFAO

    ReplyDelete
  2. Sounds like you work for the top.

    The top is running a bit scared these days or so my sources tell me.

    They know there are way more of us than them and more people are walking up everyday.

    Just take a stroll over to your favorite hard money forum and compare the posts there to a couple of years ago.

    Doesn't even read like the same place.

    Yes the top will try to put the blame of a certain group or groups the old divide and conquer so everyone fights it out while they lurk on the sidelines waiting to hire the survivors to rebuild. Nope won't work this time around.

    Hell they might even lite up a nuclear weapon or two to trump the job they pulled on 9/11 and blame the collapsed economy on that because see they were fixing the mess they created with all the wall street bailouts when ... bam!

    Nah we're on to their games now so if they did there will be no place for them to hide.

    Ropes, lamp posts etc.

    Evil will be wiped from the face of the earth this time around.

    Completely.

    It will be the way of the Universe or the highway.

    Like you say, you can't fight against truth and win.

    Truth will win out every time.

    There is no place to run no place to hide this time around.

    It's coming.

    I SAY, LET IT COME.

    ReplyDelete
  3. Naysayer says nay. Just more blah blah blah crap. All is fine, just go to work and quit the QQ.

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  4. Madame Many-Hyphens,

    It appears your intuition is correct: a terrorist attack is imminent in the US. Chicago, NYC, and DC are all targets, naturlich.

    Sears tower has been having lots of fire drills, and my friends in NYPD say that they expect something "any minute".

    Most disturbing, though, is the absence of any media attention to the forthcoming attack.

    A cogent indicator if there were one!

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  5. Last time I asked nobody answer.. Will money supply decreases? If I borrow 1 million to bank, spend it, and can't pay it back, isn't that money still exist in somebody's hand? even if I default the money I borrowed is still there. The 51+ trilyun dolar money supply that consumer has requested so far, will it just stop growing (when they are maxed out) or will it go down to 49, 48, 47 trilyun? How can it go down?

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  6. Hi Hypertiger ,
    I have been banned from GIM for two yrs,
    I got into a "tussle" with Skyvike and read him his pedigree...(the thread is on general discussion-"Freemasonic language"...

    anyway today i was banned ,SV was behind it i am sure because he with Tn Andy & Ihslancers owned up to banning me...(from general discussion-"you go Tennessee Andy")

    I was shocked initially when SV and ruskie came out and blatently talked down to people and openly admitted they are superior to others...and also admitted that only a mason can teach you or knows the facts of masonry..

    They Also said that pike did not understand the true meanings of masonry!!
    SV got into a direct personal attack on me when he could see he was not dealing with the average fool..then alot of the freemasons came out of the woodwork.....

    anyway I am glad i have found your blog ....

    I have corresponded with you once before on GIM regarding Ayn Rand...I liked your threads & comments and Golden Poet also put me onto you...

    So here I am...
    TJ
    (banned from GIM)

    ReplyDelete
  7. Answer demanded from "anonymous":

    Yes, it goes down WHEN your loan officially defaults and the bank can't carry it as an asset, and it goes into liability column. Thats why everyone is terrified of actually revealing their true assets/liabilities.

    Debt is money - actually ones and zero's on a hard drive. No debt in circulation, no "money" circulation.

    Now, the consumer has totally stopped buying - no houses, no cars, no furniture, no stocks, no plasma screens, and worse of all, they are PAYING OFF debt.

    No matter how much "credit" is offered even at 0%, if no one takes it, money "in existence" shrinks. Its called pushing on a string - theres nobody left to work with. The unwashed masses are spending only on survival: shelter, food, energy.
    If everyone paid off their debts, the "money supply" would be ZERO, plus the relatively minor actual federal reserve notes in circulation - these held mostly by foreign central banks.

    There are only a few times in recent history that some folks that really understood central privately owned banking and broke the backs of the moneychangers.

    The Benjamin Franklin Colonial Script, the "Philadelphia system" (1723-1764), and Helmut Schlact stopping the German Hyperinflation of 1921-1923 right in its tracks, and he wrote a book all about it. You can also check out Ezra Pound in Wikipedia. He advocated interest free Govt Lending Banks. Convert all Post Offices to National Banks and lend money at zero interest to anyone who is involved in Infrastructure Upgrade or PRODUCING OR INVENTING SOMETHING. They forced him into an insane asylum. Lincoln printed "greenbacks" to pay for Civil War - and you know what happened to him. The Czar Nicholas Romanov continually refused a Central Bank for Russia, and they slaughtered him and his whole family.

    http://tinyurl.com/5bvu8m

    But all this talk about money creation and all that stuff is irrelevant. The ways to beat the banksters are well known, but you try it and they kill you - just that simple.

    Not maybe, not perhaps, not possibly, but fer sure baby.

    You are on the Titanic, it has hit the iceberg and the sharks are swimming around in circles just waiting for you to hit the water. Most of the guys that post comments here are just members of the band still playing.

    Remember - just think positive, dont ever let negative thoughts get through that cement wall around your brain. Everything will turn out O.K.
    Right?

    Heh heh

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  8. qadi:

    Thanks for the info.

    Cheryl

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  9. Hi Meyer.. thanks for your explanation, but sorry I still confused..

    Let's say I borrow 1 million with Citibank, then spend this 1 million on a new house and a new car. Then I default. Citibank will not received this 1 million + it's interest back from me & forced to erase some of this 1 million in their book (house & car still has some market value, so can't go to zero right?), but this 1 million I have spent is still with the home and car seller hand right?

    So how can total money supply decrease? Can you explain in more simple mathematic illustration?

    If there are 5 person only (A,B,C,D,E) in an island. A is banker, B is employer, C is B's employee. D, E are other self-employed businessman. B borrow $100 to A, and spend this money to C,D,E, and then default. A will lose $100 in their book, B will go bankrupt, but isn't the money supply still $100 in the hand of C,D,and E?

    ReplyDelete
  10. anon:

    MV = PQ

    What you're saying is hold M constant.

    In a deflation, V drops: this occurs when a banks reserves are compromised by excessive defaults. I talk about how the fed is working around this on my blog(a new operation "twist").

    Think of inflation/deflation in the frequency domain rather than the time domain: it makes a lot more sense, then.

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  11. Ma chere tigre,

    It gets worse: a Federal Marshall I know ALSO confirmed imminent attack.

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  12. The only inflation I see is in the asset class of guns, ammo, magazines and other gun related products. It's truly unfrigging real how supply and demand really do work. :>)!

    ReplyDelete
  13. (Quote)

    "Maine Mfr (Bushmaster?) reports ONE DAY sales (orders) of 10,000 AR-15 assault rifles plus 30,000 magazines. Ammo has almost completely dried up. 80% receivers (40% more expensive than finished), backordered.

    Many major dealers are discounting magazine inventory by 25-30% to reduce inventory.

    Powder and primers also short or not available.

    The forthcoming new AWB bill will classify Ruger 10-22 model as an assault weapon.
    (capable of accepting mag more than 10 rds)

    (Unquote)
    `````````````````````````
    (Quote)
    AZ laws are a bit different, not quite so strict.

    But when 9-11 happened, it just so happened about that time that it became time for me to restock my ammo supply.

    I do this on rare occasions, and I do buy in bulk so the costs are at least somewhere affordable. 1000 rd's for this, 500 rounds for that, etc...

    Depends on how much plinking time I get in with my buddies.That determines the frequency of restocking trips...

    Well, I was nervous as can be, going in there not long after 9-11 to buy about a total of 2000 rounds of a few calibers...I figured, oh Lord, they are gonna think I am a terrorist or something! getting all this ammo... oh brother!!!

    The place was literally hopping when I walked in sheepishly..lol. There were 6 or 7 behind the counter customer service folks.. and they were honest to GOD running at times!

    The waiting lines were 10 to 12 people deep, honestly..

    The folks I saw in there were everyday type folks, common old west fellers.. salt of the Earth types.. businessmen, contractors, etc.

    Most of these other customers were buying so much "stuff" that it made me look like I was a super "light weight", and one of least spending customers! HA! some of them old boys were making hauls on steel wheeled shipping carts that carry a halfton of weight or more, and these carts were pretty loaded!!

    I was a piker! A peon... a fly on the wall...lol.

    I called them a week later, and they told me they sold over 3 million rounds of just one type of caliber THAT DAY! That doesnt count ALL the other bullets they sold that day of other calibers.

    Amazing, and that was just one medium sized gun shop in ol AZ.
    (Unquote)

    ReplyDelete
  14. HT- you got me believin.
    (signed-Walter Mitty from GIM)

    ReplyDelete
  15. Meyer Amschel Bauer, Im buying everything I can get my hands on because once the AWB is reimposed, I expect to see prices for grandfathered items to explode, pun intended, in price. I sure would not want to be in a gun grabber state when the SHTF.

    "Patriotism is always defending your country, and your government when it deserves it."

    Mark Twain

    ReplyDelete
  16. ummm.........
    US Treasuries to be denominated in Yen??? (Not dollars)
    http://tinyurl.com/5zed6j

    Fed talking about dropping interest rate again, maybe to .5%, then .25% (Japan is now .3%).
    http://tinyurl.com/6el6az

    Er, after that, then what?
    Perhaps offering you a crisp $100 bill to take out a 0% loan?
    Free bottle of whiskey every month?

    Desperation time.

    ReplyDelete
  17. M.A.B., the EFFR is already close to zero as the FED has quit defending the target. 13 week T Bill at 4 ticks while the one month stands at 1 tick, but the cheerleading continues unabated. 1 Trillion in derivatives reduced the last month, and now we only have 999 Trillion to go (both OTC and private contracts). Unfrigging real.

    ReplyDelete
  18. Dream... (my dreams have come true a lot) that my old neighborhood that I grew up in (USA) was filled with Chinese moving in... nice people on the whole, and mostly very tall.

    If only USA or Western Economic blocs implode I can imagine that happening... however, seems more likely that the implosion will be global with perhaps isolated rural communities being less affected than cities.

    Glad to be here HT, and hi TJ.
    Goldenpoet

    http://flourishingincrisis.wordpress.com/

    ReplyDelete
  19. In the event of a dire emergency, each one of us who has the will should commit to making sure their neighborhoods are well kept. In a food shortage, able-bodied people could go around making sure the elderly and such aren't starving, try to get everyone's family some food if they can't get it, etc. This is the best way to tame the hungry masses locally and keep your own community from falling into chaos. Whoever has the means locally should be prepared to do "good" where necessary.

    ReplyDelete
  20. No one going to get the top. they have all the food and food will power the system as Hyper says. There will be those that work for the top and those that are prepared and those that starve. High on some mountain top far away you might find them.

    In other news, the reason the money supply shrinks is there isn't any principal created to pay the interest. Citi had a $400 billion fed funds liability and they did loan on your house and never got the money back. That is why their stock is $5 and falling. $25 billion Paulson gave them a couple of weeks ago didn't last long. Money is disappearing like light bulbs in a rainstorm. The CNBC crowd seems to think these Fed injection can be found in some account. The latest Fed releases show very little change in money supply and a huge change in Fed loans and Reserves of banks. There is a socalled reserve requirement, but there is also a capital requirment and there isn't any.

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  21. The money/credit goes away when all parties concerned face liquidation. Then the money/credit evaporates to zero forcing a start over in money/credit creation whether there is assets left or not.

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  22. Hey, 3JTribe, I wondered what had happened to you...

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  23. Well I hope all those greedy bastards who lost money on hedgefunds boosting the price of oil all fucking cut their throats wide open. Fuck those motherfuckers.

    Paying under 2 bucks a gallon for gas is win folks.

    http://www.nytimes.com/2008/11/21/business/economy/21oil.html

    ReplyDelete
  24. Well, what a coincidence:
    I just talked about the "Philadelphia System" of governmental script money creation here a day or so ago, and now pops up a real fine explanation of same.
    This is a must read for those of you who still have a few functioning brain cells left.

    http://tinyurl.com/69g3re

    Remember:
    If the ruling class controls all big stashes of gold, a gold backed currency will screw you for sure.

    ReplyDelete
  25. Three J???

    I remember my spats with you!

    Good to see you here!

    email me?

    ReplyDelete
  26. you can remove the top ad-bar from your blog by: http://blogger-templates.blogspot.com/2005/01/remove-navbar.html#

    ReplyDelete
  27. The system will implode to oblivion because it's how the Universe operates...

    The Universe does not require Human beings to operate.

    Your awareness of the Universe does not exist inside of the Universe so it is not constrained by it.

    So it is very easy for you all to imagine all sorts of solutions that are possible in your imaginations but totally impossible within the Universe.

    Imagine all sorts of scenarios.

    That work out wonderfully in your imagination but when put into practice within the Universe...

    Have consequences you didn't imagine.

    And I'm not here to tell you all what to do...It's up to you to figure out what to do...I'm not a Magic 8 ball.

    ReplyDelete
  28. AnonymousJuly 17, 2009

    Hi, I have been restricted from Gim from last 1 years.

    Merry

    Free Satellite TV

    ReplyDelete
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    ReplyDelete