Monday, December 22, 2008
The Balloons Keep Popping
The yields are still positive...If they were actual negative rates...lets say -1%...I would lend you 100 dollars and at -1% per year...You would only owe me back 99 Dollars.
That is not the case at all...
On the Treasury site the listed rate for the 9th for the 1 month treasury bill is 0.04% while the 1 year is 0.49%
There will never be negative yields...no matter how much money floods into the bond markets to bid treasuries up and yields down...the yields will just continue to become smaller fractions.
It's based on volume...The greater the volume the lower the yields can go...
Why is gas so low?
Because in 1944 the Bretton Woods Agreement made the US Dollar the global trade medium of exchange...
What is the source of US Dollars?
US consumers request the commercial banking system to manufacture US Dollars using previously manufactured dollars as collateral.
And the system is global so you can input Yen or Euros or British pounds to find out the source of those currencies...or money.
Why did the price of oil rise so high?
Because the US consumers were requesting the commercial banking system to manufacture significantly more US dollars than average.
Meaning there was a far greater supply and increase of supply of US Dollars globally than the world could absorb.
In the case of oil
the growth rate of the supply of US Dollars was far grater than the growth rate of the supply of oil and a whole bunch of morons that believed that hyperinflation was on the way kept buying high and selling higher.
Ok so why are prices dropping?
Well now the US consumer has maxed out and and can't continue requesting the commercial banks to manufacture more and more US Dollars and are now forced to request the banks to manufacture less and less...basiclly causing the growth rate of the supply of US Dollars to slow significantly...forcing the morons that were worshiping hyperinflation to worship a new GOD they hate...Deflation
Because all the morons have been buying high and selling higher for decades because everyone knows that there is no end to inflation...
But those stupid balloons are stubborn...they keep popping...
The oil countries to their knees? lololol
Exxon( Standard oil), Royal Dutch Shell, and British petroleum control the global supply and distribution of oil...The oil countries have been on their knees gobbling for almost 100 years.
OPEC? Was created by the west...
The oil producers are trying to restart hyperinflation by cutting supply...
During the Great Depression...the last time consumers maxed out and were forced to stop requesting more and more money and start requesting less and less...Jolly old England dumped grain at sea while the population starved...attempting to get the price of grain to rise.
It's impossible to sustain constant inflation greater than previous inflation.
Inflation greater than previous inflation is a variable...Inflation greater than previous inflation to maximum potential becomes inflation less than previous inflation to maximum potential when the maximum potential of inflation greater than previous inflation is reached.
Of course when the maximum potential of inflation less than previous inflation to maximum potential is reached...Inflation less than previous inflation to maximum potential becomes inflation greater than previous inflation to maximum potential
It's a wave...You all love the ups but run in terror from the downs.
No matter...You all are running in terror from what you are going to smash into...there is no escape.
There are two potential leaders...One says follow me and there is no maximum potential the other says there is and if you follow that person you are doomed.
But it takes a couple generations to reach maximum potential...
So the top in order to maintain their position give the bottom what they want...lies.
Why follow someone that is going to give exactly what the current top is giving...and why follow someone that is going to take away what the top is giving you all?
Truth hurts your feelings...Lies don't...Until you all wake up and see them...But you all will fight to stay asleep until you are forced to wake up.
You all are marching to your doom with glee....have been basically from birth...your parents trained you how to...their parents trained them.
It's how you all got to be where you all are today...Standing on the precipice.
About to suffer the consequences of your ancestors' choice to march to doom with glee.
There is just capitalism.
Human beings have no power to make or break LAW...
All that human beings have the power to do is make and break rules and call the rules LAW.
But if the rule attempts to break LAW the LAW will break the rule.
A human being can choose to manipulate the Universe however they desire as long as they don't attempt to break LAW.
And within the context of the game all you game players are playing.
A human being can choose to manipulate the Universe however they desire as long as they don't get caught attempting to break or breaking a rule...of the game you are all playing.
The only thing preventing you all from breaking a rule of the game you are all playing is you.
The game of capitalism you all think has rules...has none and it's not a game.
What if you attempt to transform capitalism into a game and impose rules?
"All that human beings have the power to do is make and break rules and call the rules LAW.
But if the rule attempts to break LAW the LAW will break the rule."
The game you all choose to play...has no rules and is not a game.
Of course you all can capitalize on the Universe however you desire ...but there are rules you have chosen to follow...
Others choose not to follow the rules...and are free...to do as they please to all of you.
All you can do is whine and cry...
The winners always win and laugh while the losers always lose and cry.
That's how the stupid game you foolishly call capitalism and choose to play works.
It's not a game and has no rules...
Capitalism is not a game and has no rules.
Japan has been subsidizing their auto sector for decades...all the foreign auto makers have been dumping subsidized autos in the USA.
And the American attitude of...Until the big 3 produce a car I'm willing to drive I'm going to keep the Japanese employed and take a big hot steaming dump on my countrymen.
Doesn't help at all.
The plan since 1971 out of London was the post industrial controlled destruction of the USA policy.
The plan was to export the manufacturing out of the USA to eliminate the wage inflation that was going to and did drive the general price inflation of the 1970's after the post WW2 rebuilding process was over.
That's what you see happening.
Crying about quality is just an excuse...
The leadership embraced globalism and passed rules making foreign exports flood the USA and all those that buy them are basically voting for globalism.
Calling for the collapse of the US machine tool sector is exactly what the globalists want...
Really...You all have been marching to their tune for decades now.
"Rubin has been touted as a possible appointee to a cabinet post for President-Elect Barack Obama. Rubin, alongside Austan Goolsbee and Paul Volcker, is one of Obama's economic advisers."
"Critics credit Rubin with helping create the conditions for the Financial crisis of 2007–2008, as a result of the policies he pursued as Treasury Secretary. Together with then-Federal Reserve chairman Alan Greenspan, Rubin strongly opposed the regulation of derivatives, when such regulation was proposed by then-head of the Commodity Futures Trading Commission (CFTC), Brooksley Born. Overexposure to credit derivatives of mortgage-backed securities was a key reason for the failure of US financial institutions Bear Stearns, Lehman Brothers, Merrill Lynch, American International Group, and Washington Mutual in 2008."
"During his time in the private sector, Rubin has served on the board of directors of the New York Stock Exchange, the Ford Motor Company, Citigroup, the Harvard Corporation, the New York Futures Exchange, the New York City Partnership and the Center for National Policy. He has also served on the board of trustees of the Carnegie Corporation of New York, Mt. Sinai Hospital and Medical School, the President's Advisory Committee for Trade Negotiations, the U.S. Securities and Exchange Commission Market Oversight and Financial Services Advisory Committee, the Mayor of New York's Council of Economic Advisors and the Governor's Council on Fiscal and Economic Priorities for the State of New York. On November 4, 2007, he became the Chairman of Citigroup and is currently co-chairman of the board of directors of the Council on Foreign Relations.
"Austan Dean Goolsbee, born August 18, 1969, is an economist and is currently the Robert P. Gwinn Professor of Economics at the University of Chicago Booth School of Business. President-Elect Barack Obama announced on November 26, 2008, that Goolsbee will serve under Paul Volcker as staff director to and chief economist of a new federal panel, the President's Economic Recovery Advisory Board, and will be nominated as a member of the Council of Economic Advisers"
"Over the years he has been named one of the 100 Global Leaders for Tomorrow by the World Economic Forum in Switzerland, one of the six 'Gurus of the Future' by the Financial Times, one of the 40 Under 40 by Crain's Chicago Business, and one of the 30 Under 30 by the Chicago Sun-Times."
Skull and bones 1991.
"Paul Adolph Volcker (born September 5, 1927) is an American economist. He is best known as Chairman of the Federal Reserve under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). He is currently chairman-designate of the newly formed Economic Recovery Advisory Board under President-elect Barack Obama."
"After leaving the Federal Reserve in 1987, he became chairman of the prominent New York investment banking firm, J. Rothschild, Wolfensohn & Co., a corporate advisory and investment firm in New York, run by James D. Wolfensohn, who was later to become president of the World Bank."
"As of October 2006, he is the current Chairman of the Board of Trustees of the influential Washington-based financial advisory body, the Group of Thirty, and is a member of the Trilateral Commission. He has had a long association with the Rockefeller family, not only with his positions at Chase Bank and the Trilateral Commission, but also through membership of the Trust Committee of Rockefeller Group, Inc. (RGI), which he joined in 1987. That entity managed, at one time, the Rockefeller Center on behalf of the numerous members of the Rockefeller clan. He currently serves as Chairman of the Board of Trustees of the International House in Manhattan, NY. He was a founding member of the Trilateral Commission."
"In January 2008, he endorsed Democratic Presidential Candidate Barack Obama for President"
By JOHN D. MCKINNON
Dec 11 2008
"WASHINGTON -- White House officials will coordinate closely with the incoming Obama administration in choosing a new "car czar" to oversee the restructuring of the Big Three U.S. auto makers, if Congress passes a bailout plan."
"Meanwhile, pressure grew in Congress for former Federal Reserve Chairman Paul Volcker to take the job. The president would appoint the czar under proposed legislation circulated by Democratic leaders Wednesday."
"Members of Congress have been increasingly looking to Mr. Volcker since House Speaker Nancy Pelosi floated his name recently. A spokesman for Speaker Pelosi said Mr. Volcker is someone 'acceptable to both sides.'"
On a daily basis on average there is over 2 Trillion dollars worth of monetary transactions taking place in the USA.
Globally about 5 Trillion....with a total global money supply of around 200 Trillion dollars.
Two trillion seems like a lot of money to loan out in a few months...but in 2007 US consumers were requesting commercial banks to manufacture 11 Billion dollars of new money a day or about 1 Trillion dollars of new money every 3 months...
All these loans are just to replace the loss now that consumers have maxed out and have slowed their requests.
They are temporary...90 days to 9 months...Just buying time...and the cost of time will rise exponentially...
Bailouts to the auto sector...lol...soon you all will be forced to wake up from this daydream you all are currently enjoying or at least being entertained by into a nightmare beyond your currently abilities to comprehend.
THERE HAS BEEN ZERO EXPANSION OF THE MONEY SUPPLY OUTSIDE OF THE COMMERICAL BANKING SYSTEM SINCE THE GREENBACKS OF THE CIVIL WAR.
Basically all monetary expansion from then until now has been by the below method.
-A consumer requests a commercial bank to manufacture new money using previously manufactured money as collateral backing the request.-
But on the Release fron the FED the total credit market debt increased...and the greatest increase was by the Federal Government.
Consumers request the banks to expand the money supply...the Congress authorizes the US Treasury to issue treasuries and borrow from the money supply.
It's a case of the US Government borrowing debt to get into more debt...the supply of debt is not increased.
Up to now other than the big numbers in the media designed to fool all you idiots into thinking something is being done by the government to expand the money supply...
Nothing has been done to expand the circulation of money at all.
The supply is growing at its slowest pace ever...
The US Government has up to this point not expanded the supply of money at all.
Of course I don't see a multi year dollar bull either...the Dollar had a brief rally at the start of the so called great depression as well.
ARTICLE 235 The Versailles Treaty June 28, 1919
In order to enable the Allied and Associated Powers to proceed at once to the restoration of their industrial and economic life, pending the full determination of their claims, Germany shall pay in such installments and in such manner (whether in gold, commodities, ships, securities or otherwise) as the Reparation Commission may fix, during 1919, 1920 and the first four months Of 1921 , the equivalent of 20,000,000,000 gold marks."
2790 Gold marks equalled 2.2 Lb of pure gold.
15,770,609 Lb of Gold or 7885 short tons of gold or 229,935,483 oz of Gold...
Quite a bit of GOLD...Especially when the total above ground stock around that time was 50,000 tons with around 25,000 tons monetary Gold world wide...
And Germany certainly did not have 7885 short tons of gold in 1919 1920 or 1921...
What to do then?
The British (Bank of England) basically told Germany to print marks to buy GOLD...From? The winning powers...
The Looting of Germany carry trade...Germany printed marks and then bought Gold then the amount of GOLD they owed dropped and the winning Powers still had GOLD and loads of marks...what to do with all those marks? send them home to roost buying raw materials and finished goods...the excess flowed into German issued bonds...
The marks flooded into the German commercial banking system allowing it to inflate the debt supply in Germany...The more GOLD Germany bought the more marks they had to print...Which caused the purchasing power to drop...It was quickly losing its value...
But outside of Germany all the currencies were quickly gaining value...Basically German exports were getting constantly cheaper and cheaper...A free give away of German raw material and finished products basically...
This fueled the Roaring 20's until the mark was losing value so fast that it basically caused prices inside Germay to hyperinflate until it was impossible to account...The looting of Germany carry trade collpased in 1924 after about 14 months of Hyperinflation of prices or a hyperdeflation of the value of the mark...
The Hyperdeflationary shockwave spread out into the Global system...It hit in the USA late 1926 causing a collapse of the booming real estate sector which rapidly sold off and poured into the stock markets causing a massive mainia that reached maximum potential in late 1929...the USA and the rest of the world then collapsed from 1929-1933...
The Geneva Conventions were held to work out the rules of the 1933-1945 bankruptcy reorganization of the world following the 1929-1933 collapse of the crown system...WW2 was the climax of the reorganization.
In 1944 Bretton Woods made the US Dollar the Global trade medium of exchange taking over from the British pound sterling and by default the US consumer became the demand of the global system taking over from the British.
The Bretton Woods global trade system has now inflated to maximum potential and the roaring "6 decades" are coming to an end.
Yes this ain't Germany.
The deeper we get into this...The closer we will come to the point at which the lies you all worship and power the continued existence of self destruct once you all reach your maximum potential ability to sustain power to them.
Like really...Once the German hyperinflation reached maximum potential in 1924 it was followed by a hyperdeflationary implosion...There were food riots and the German army resorted to machine gunning people in the streets to gain back control.
It's a wave...inflation greater than previous inflation to maximum potential transforms into inflation less than previous inflation to maximum potential once the maximum potential of inflation greater than previous inflation is reached.
The FED is just playing catch up...If the FED had the power to set rates...
They would have in 1913 and been done with it.
Somehow someway they...whoever they are (your MASTERS)...have convinced you all that they do have such a power.
But from 1913 to now there is zero evidence that the FEDERAL RESERVE can set rates.
They say they do of course and you all do as you're required...accept and perpetuate the lie as truth.
Consumers dictate all the rates...
Funny thing though...Once you lower the cost to sustain slaves to as low as possible...there is nowhere for the cost to go but up.
The quicker we hit maximum potential inflation less than previous inflation of rates the quicker we can see how inflation greater than previous inflation of rates will grab you all.
Consumers have driven rates down lower and lower for almost 30 years...It's the end of the line.
Give them all what they want for cheaper and cheaper until it becomes impossible...
Then you will all be forced to get less and less for more and more.
Attaching interest to the medium of exchange.
In 1944 the US money supply was 355 Billion and at 8.09% compounds into 51.6 Trillion dollars
Which is what it is currently.
All the money in circulation is owned by rich people and it's all lent out into circulation...
The top lends out all the money into circulation so all of you at the bottom can get an income...
The rich become rich by taking more than they give.
Sure I'll lend you all the money supply as long as you all pay me back the money supply +8%
Taking more than you give is just like chopping down trees faster than they regrow.
Sure I will help you as long as you help me more than I help you...and if you fail to help me more than I help you...I will take everything you have...
Sure I will lend you all the Gold in world...As long as you morons pay me back all the gold in the world +5%.
If you fail..you will all have to be my slaves forever...
You morons...Or more specifically your previous iterations or ancestors agreed to those terms 1000's of years ago...
You all popped into existence within a system you did not create and don't own.
Really...Your ancestors defaulted on an impossible to service Ponzi scheme 1000's of years ago lost all their collateral...their decendants.
You all have zero idea how exquisitely Evil the top is...
Posted by Cheryl-Lynné at 8:43 PM