Sunday, June 07, 2009

Enron Economics


Consumers request commercial banks to manufacture money...or print fiat.

The system is caving in because consumers have reached their maximum potential after 64 yeears to request commercial banks to print more and more money...and now are forced to request less and less money to be printed.

The only way to make up the difference is for the consumers to pick up where they left off...which they can't so...kiss it all good bye...

Everyone is basically oblivious that they are doomed...because if they did know...they would all try to bail out and hunker down until the good times return...instead of this long drawn out death.

The Ben Bernanke magic printing press story...was just to keep little children from having nighmares...

Don't worry...GOD is not going to harm you all...We have a weapon that can slay GOD...

You all bought that lie back in 2002.

They don't...

The system...hasn't even begun to go down yet...sure it's slowed down by it's greatest amount since 1929...but it's still inflating greater than previous inflation.

When it actually begins to inflate less than previous inflation to maximum potential visibily...You will see a mind blowing science fiction type scenario play out that will cause most of you to suffer irrepairable mental trauma.

You all will wake up from the daydream you are currently enjoying into a nightmare...that will just go on and on and on...

China...poof...India? poof...Europe? poof...Japan? poof...Dubai...poof.

Every country on Earth...poof poof poofity poof.

This credit bubble is 64 years old...It's going to rewind back far further than 2001...The real estate bubble in the USA is 37 years old...all that has popped up to this point is the bubble within that bubble...the actual real estate bubble is still intact.

Up to this point nothing significant has happened...

A bank can lend out whatever is not needed to supply demand.

Like banknotes and coinage...There is not a bank on Earth that has a supply of banknotes and coinage equal to deposits.

Imagine that the bank is a grain bank and all the farmers save excess grain.

When crops fail the farmers can borrow grain to survive to grow new crops and then replace what they have borrowed plus service cost with the new crops once they grow them.

It works great for lets say 15 years until a drought hits and wipes out most of the farmers crops...Then all the farmers run to the bank to withdraw all their grain only to find out that all their savings have been turned into poop and more mouths to feed the past 15 years and there is only about 10% of the grain that is supposed to exist.

To save something is to not use it...Putting money into a bank that then lends it out and turns it into spendings is not saving money from being spent.

You all think it is though.

Human Beings have a choice...Take more power than they give/Absolute capitalism or share power as equally as possible/Responsible capitalism.

Banks take more power than they give.

Banks are not really banks.

All they do is turn savings of money into spendings of money and ultimately once all the savings of money turned into spendings of money cycle through the bank a few times all the savings are converted into spendings and there is nothing but spendings left and no savings.

Stage 1 of a compounding interest commercial banks is the inflation of debt (spendings) and the destruction of savings.

So called Banks have operated like this for centuries.

Look around at the world...That is what sustains civilization as you and everyone for the past 3 centuries have known it.

The savings converted into spendings cycle has a maximum potential.

Lets say that the USA was on a scarce metal standard...

First off all the technology employed currently to extract silver would not exist but lets say it does and there is no industrial consumption.

The USA currently produces 180,000 ounces of silver a day.

The 1792 coinage act states.

"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."

So then all the raw silver has to be sold to the U.S. Treasury/mint to be processed into coinage at a discount since refining and then construction into coins costs.

You would need a network throughout the USA of satellite U.S. Treasury/mint operations as near as possible to the silver producing regions.

Distribution of the silver coinage could be done by the Government through infrastructure projects or lent out into the economy at various Government treasury branches in cities and there could be a combination of both.

But ultimately the maximum amount of money that could be supplied to demand is...

480 grains in a Troy ounce X 180,000 ounces = 864,00,000/371 grains per Dollar = 232,884 dollars a day maximum input into the economy. Includes Half dollars, Quarters (Quarter dollars), Dimes (Dismes), and nickles (Half Dismes)

You need to mine copper to supply the demand for penny weights of copper to construct pennies or Cents "each to be of the value of one hundredth part of a dollar, and to contain eleven penny-weights of copper"

But we will forget about cents and just round all prices.

A bank can lend whatever is not needed to supply demand.

A Treasury can lend/spend whatever is not greater than supply

According to the The 1792 coinage act with no industrial consumption of silver the maximum potential supply of demand for money is 232,884 dollars a day.

In an economic system...When one person anywhere in the system increases their demand it spreads throughout the system and of course every human being born that does not have a Human Being death to balance the equation will increase demand.

Also if there is a Trade deficit with another economic zone the money supply of the zone in defict will shrink while the money supply of the zone in surplus will expand.

The 232,884 dollars a day maximum input into the economy demand was surpassed in the late 1800's

Silver production at the time was not 180,000 ounces a day in the late 1800's and most of the population lived on farms.

No phones, no lights, no motor cars, not a single luxury.

Like Robinson Crusoe, It's primitive as can be.

Then factor in that the rest of the world does not have to follow the USA and can easily use their compounding interest commercial banking system to conquest the USA to obtain the resources required to sustain the rest of the world system.

You are all just ignorant peasants that have no clue.

Really...and most of the information you have utilized to educate/self delude yourselves was produced by ignorant peasants that have no clue.

"The subjects of every state (Bottom) ought to contribute towards the support of the government (Top), as nearly as possible in proportion to the revenue which they respectively enjoy under the protection of the state."--Adam Smith, Wealth of Nations 1776

Governments of the absolute capitalistic hierarchial food powered make work enterprise (City or civilization state) are administration systems of the enterprise constructed and sustained by the bottom or employees at the demand of the top or owners of the absolute capitalistic hierarchial food powered make work enterprise

"The understandings of the greater part of men are necessarily formed by their ordinary employments. The man whose life is spent in performing a few simple operations. . . has no occasion to exert his understanding. . . Of the great and extensive interests of his country he is altogether incapable of judging. . . . The uniformity of his stationary life naturally corrupts the courage of his mind."--Adam Smith, Wealth of Nations 1776

Absolute capitalism = taking more than is given.

This of course continues to maximum potential...It becomes impossible to take more than is given...

Then inflation greater than previous inflation to maximum potential becomes inflation less than previous inflation to maximum potential.

Capitalism is a wave.

Inflation greater than previous inflation to maximum potential is followed by inflation less than previous inflation to maximum potential

Inflation less than previous inflation to maximum potential is followed by inflation greater than previous inflation to maximum potential.

Absolute capitalism = taking more than is given.

or chopping down trees faster than they regrow...

Taking more than you give = attaching interest to money.

All inevitablely doomed to reach maximum potential and become unsustainable.

The 6000 or so year old absolute capitalist hierarchial food powered make work enterprise...the city state or what you all generally call civilization...unfortunately requires constant growth.

Because it's absolute capitalistic...LIKE YOU ALL ARE.

Fractional reserve banking is not a cause of absolute capitalism...it's an effect.

The cause of absolute capitalism is a choice by all of you.

As long as you all choose to operate as mindless bacteria* (animals have no choice...They are all ignorant and follow the path of least resistance by default...You all have to choose to be the disgrace you currently are...and you did) consuming more than you give until there is nothing left to consume...You all get to enjoy the consequences...

Massive die off.

*(Animals have no choice...They are all ignorant and follow the path of least resistance by default...You all have to choose to be the disgrace you currently are...and you did)

You babbling fools will contine to spend your lives searching for a superior moral justification for selfishness...

There is none...take more than you give/chop trees down faster than they regrow aka usury...until there is nothing left to take/you run out of trees...

Gameoverville...period and of story.

Just like all the babbling fools that existed before you all...over the past 6000+ years.

Really there were morons just like you that existed while you were newborns...All you did was grow up into their replacements...

All the newborns you see now?

Just the next crop of future oblivious head scratching morons that will be using the Internet or its replacement as a magic 8 ball...

Rome is built on top of Rome...Just needed to wait for the trees to grow back...Duh.

What happened to Rome? Look around...It basically covers the surface of the Earth now...

No new world to discover and pillage across the Atlantic to power the next iteration unfortunately.

6 billion reduced to 1 = 6 times more resources.

Just prune you all back...simple.


One way or the other...thats what happens when the maximum potential of inflation greater than previous inflation is reached.

Been like this for the entire 6000 or so year recorded history of the absolute capitalist hierarchial food powered make work enterprise...the city state...civilization...you know the thing you all popped into existence within...The thing you are in right now.

tick tick tick...every day...day in an day out...closer and closer to death.

Thanks for showing up to planet Earth...

Only physically and/or mentally lazy people call work hard or mention sacrifice.

To them doing what is right is Hard work and sacrifice and doing what is wrong is easy and carefree.

"When plunder (Absolute capitalism/Taking more power than you give) becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." (An Ecosystem where yield locusts thrive and multiply--Frederic Bastiat, The Law



I'm not an ignorant peasant...I have a clue.

But due to where I popped into existence within the hierarchy and who I interact with I'm guilty by association.

Warren Buffet? A peasant as well just higher in the hierarchy of peasants.

It's based on worth...Warren Buffet is an asset worth more than lesser assets or those lower in the hierarchy.

At the bottom of the bottom of the Global Hierarchy the human beings that pop into existence there are born as unfundable liabilities and basically self liquidate far quicker than those above but Human beings born as unfundable liabilities can easily reproduce quicker than they self liquidate.

Since power, not money, is the medium of exchange.

A massive cut to the supply of power is required to cause the Inflation greater than previous inflation of Humanity to transform into the inflation less than previous inflation or deflation of Humanity.

Human Beings have a limited ability to manipulate the Universe or as you call it..."fudge the numbers"

This 314 year old global absolute capitalist Hierarchial food powered make work enterprise that you don't know exists and popped into existence within and are currently in...Is one Huge ENRON.

The numbers have been fudged for centuries to balance the books.

Unfortunately...The accounting tricks have all been used up and like ENRON the Global absolute capitalist system is going to soon implode into oblivion.

Human Beings have a limited ability to manipulate the Universe or as you call it..."fudge the numbers"

Or attempt to turn variables into constant.

I can claim that enough rice to feed a million people was grown...But when the people begin starving and turning into skeletons they will wonder where all the rice went.

If they can not eat Rice...They will have to settle for Fudge.