At the core of what you call civilization...Is a scam that everyone depends upon.
It's always been a scam...that you all only become aware of at the end...
Like all scams...It looks good at the start.
All the illegal activity and hijinx is just an effect...It's not the cause of the collapse.
The massive expansion of the money supply the credit system allows...makes those with an income think they have skills or are important.
We need jobs? Who is going to create all these Jobs? An employer obtains the money to hire employees from where?
Where does money come from?
Are you hiring?
How is the FEDERAL Government going to obtain the money to hire people?
Print money?
Do any of you have the foggiest idea how civilization is constructed?
Like where are you going to obtain the massive unending supply of resources to sustain the USA if the USA has been running a massively insane trade deficit for almost 50 years.
I'll tell you exactly what is going to happen.
You all are never going to change...You all are going to keep trying to sustain this doomed system until it completely caves in and you are all screaming for salvation and will agree to all the austerity measures.
Whether you all flip and wreck the place or not...You all are going down and you ain't getting back up until you hit bottom.
1929-1933 was the collapse...All the rationing and austerity measures were not implemented until after the collapse.
You are not even out of 1930 yet.
2016-2017 is roughly equal to 1933.
There is no example of any credit system in operation the last 600 years that's ever been able to go from boom to boom without a bust.
The last 66 years so far has been the longest temporary prosperity in history....it's been one long boom...recession is a word invented to describe a slowing of growth within a boom.
Prior to 1900...booms lasted 5 to 7 years then were followed by busts of 5 to 7 years...too short for there to be recessions noticed...
Jobs?...the manufacturing jobs were exported out of the USA into the special economic zones in China to stop the 1970's hyperinflation of the USA...It's what allowed China to hyperinflate into what it is today...and the USA to contine enjoying the lifestyles of the wannabe rich and famous for the past 30 years.
Where did the Chinese get all the money to hire all the workers of China to build it into what it is...the US consumer.
Where did the US consumer get the money from?
A US consumer uses their income which is mostly composed of previously created debt or an asset that has been inflated in price by previously created debt as collateral backing their request for a commercial bank to create new debt.
Well with US consumers maxed out after 62 years of supporting the global civilization's inflation...they are finished.
It's over...
Money supply was shrinking...but last quarter reporting period it showed quarter over quarter growth...that's 4 month ago data..
It worked out to 4.1 Billion Dollars of new money requested by consumers to be created by commerical banks per day...from Q3 2010 to q42010...
But it's very slow growth...You have to go back 10 years to 1999-2000 to find a similar growth...It will take above 14 Billion a day to get back to normal...which is good abnormal as opposed to bad abnormal
As far as I can tell...Either the Federal Government has to stop production of new Treasury bonds or the FED is going to have to continue subsidizing rates...Or rates will have to start rising.
Problem with the cutting off of the Deficit spending...GDP will go negative.
QE3 of some sort will be needed to sustain all the green arrows required to maintain the belief that the war against deflation is being won.
Special economic zones were opened in China to receive exports of US manufacturing jobs and US consumer debt...
To increase unemployment in the USA allowing downward pressure on wages and the exportation out of the USA of massive amounts of consumer debt inflation.
China set its exchange rate artificially high and utilized their socially engineered for decades communist slave labour to produce products virtually for free.
The inflation or growth rate of the money supply in the USA slowed and the hyperinflation of the USA stopped...
China over time used with FEDERAL RESERVE direction their massive supplies of Dollars to engineer rates lower and lower...allowing the massive real estate bubble that had been growing in the USA since 1971...to continue to grow.
US consumers in this environment basically could continually request commercial banks to manufacture credit to buy real estate...Which in turn caused there to be a continuous flow of money into the US domestic economy to buy imports from China...which allowed the Chinese slave labour operation to continually grow and acquire more and more US Dollars to buy more and more US Treasuries to keep rates continually dropping.
Well China took this operation over mostly in the 1990's after Japan inflated to maximum potential and popped from doing the exact samething.
China is over 10 times the size so they have been able to sustain this for far longer than Japan.
Japan has survived their implosion because the Bank of Japan basically supplied the Japanese with massive amounts of YEN to subsidize the acquisition of US Dollars...Basically the Japanese have kept the YEN artificially week causing all their exports into the USA to be affordable...If the Japanese would not have done this...They would have imploded...Causing the supply or more importantly the production of YEN to continually slow or stop...which would cause the YEN to strengthen against the US Dollar...making Japanese exports too expensive for US Consumers to purchase....collapsing their export based economy.
The problem now is that the US Consumer reached maximum potential in 2008.
The lower rates go the greater the volume required...because there is a cost.
The required yield is...not too much...not too little...but always greater than previously.
Well rates collapsed due to consumer desperation beginning in 2007 following the exhaustion beginning in 2003...Just like all the previous times when consumers became exhausted for the past 6 decades.
But something new showed up...Because US consumers have basically reached the point where they have requested their maximum amount of debt to be manufactured by commercial banks...they can't sustain the volumes required to allow the continuing drop of rates.
The FED was finally forced to use unconventional measures...
How it worked before 2008 when US consumers became useless.
Consumption rates are dynamic...consumers consume more and more and as they do they become full and then begin to consume less and less...It's a wave...some poeple think the FED has some way to control consumers...they don't...they are at the top of the monetary system watching the flows in the system...and they can basically know the winning lottery numbers days, weeks and months before they are reported to the general population YOU ALL....The FED knows what is going on before you all do...The economy takes a left turn...the FED comes out and says...that due to such and such conditions...we are making a left turn...and then a week or more after the economy has taken a left turn they release a chart showing that the economy is making a left turn...and then the FED says...see...look how powerful we are...and you all believe it.
The workers go out and slave day in and day out and the FED takes credit for it...
It's been like this since the FED has existed.
At the start of the consumption cycle...consumers are desperate...They request commercial banks to manufacture massive amounts of new money...This new money causes an acceleration of the flow within the system...generally leading to bonds being bid up and yields to drop...
But over time consumers regardless of how low rates go...Become exhausted and begin slowing their consumption or requests of commercial banks to create new money. This leads to the deceleration of the flow through the bond markets...generally causing bonds to be sold off and yields to rise.
The money supply of the USA has shown this acceleration and deceleration for decades...consumers become exhausted enough and recessions show up...which causes consumers to become desperate.
To stop the dropping of rates since desperate consumers would basically cause rates to implode every time they became exausted...The supply and or production of treasuries has to be increased...to build a floor under them.
Every time consumers have become desperate...magically...congress is supplied with reasons to increase the supply/production of treasuries...last time around it was the war on Terror...This time it was the so called sub prime crisis...economic collapse.
This time around though...consumers were desperate and then became exhausted too quickly...They all were desperate for money...but had no ability to request anymore money creation by the commercial banks.
They were all used up...spent.
Think of the economic system as a reactor that supplies power to the top and the bottom are the fuel rods...
Unlike a reactor...It's a lot harder to replace the 100's of millions of consumers of USA.
So the FED for the first time in decades was forced to build a floor under bonds by buying them...As opposed to the manipulation of Congress into increasing the supply to absorb demand like all the previous times...
Due to the elimination of the consumer from the equation, the FED had to become the consumer, The flow has basically stopped and reversed...yields should have stopped dropping and rocketed up.
The US domestic economy along with the 1944 global trade system should have imploded...It was..still is.
Game over...
But not so fast...The G20 got together and was forced to agree to the greatest Government deficit spending/economic intervention in world history...and stopped the implosion.
Actually all that was done was a bounce was caused.
Ultimately on a macroeconomic level...The consumers or bottom reached their maximum potential to sustain growth...
The top lives off the yield from the bottom...yield is growth.
The top shorted the world or began extracting yield from negative growth...the G20 met and agreed to the greatest economic intervention in history...Which began to flood the world with massive amounts of spending that consumers could not or refused to do...the top then covered their short of the world...Causing everything to begin rising...or a bounce that's been marketed to the bottom as the late 2010 recovery.
In order for this mass global social engineering event to work...the bottom or masses have to resume what they were doing prior to the point at which they reached maximum potential and sustain it.
The chart shows what the money supply was 4 months ago...from 1945 to 2008 it was compounding or exponentially growing by 8% per year on average...It's been flat for years now...The US domestic economy is short easily 10 Trillion Dollars...
That line has to begin to shoot back up or begin exponentially growing again or the top will be forced at some point to begin extracting yield from negative growth..."shorting the world"...and there will be no way to hide the negative effects of printing money to cause inflation of the numbers to produce green arrows which are required to sustain the 2010 recovery lie.
The FED will be forced to follow along and raise yield rates...their ability to resist reality or fight Truth is limited.
Split 100 perfectly...you get 33.3333333 repeating forever.
It's easier to just split it into 33,33,34
It's easier to take more than you give than to share equally.
It's the default method of power transfer in the Universe.
Electricity...rocks falling down hills...water flows...bacteria and all animals follow the path of least resistance.
Taking more than you give is absolute capitalistic...sharing as equally as possible is responsible capitalistic
Within a system an increase in demand anywhere within the system spreads throughout the system.
Civilization is hierarchical...it is powered by taking more power than it gives...the bottom supports the top...the top lives off the yield from the bottom.
To each according to his ability and to each according to his needs?
You are a shoe polisher...You need very little
I'm the leader of the USSR my abilities dictate I require more than you...polish faster.
The so called Marxist power distribution scheme is the same as the so called evil capitalist scheme...take more than you give...bottom supports the top...top lives off the yield from the bottom.
It's why the USSR caved in...It was just a typical absolute capitalistic hierarchy that sustained itself by taking more power than it gave and when it ran out of power...it imploded...
Taking more than you give is also known as plunder.
"When plunder 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 justifies it" -- Frederic Bastait
China is going to implode as well...
Without a US consumer to power China and the world...They are all collapsing...China has been flooding their economy with money trying to keep it from imploding.
The top in order to stop the implosion was forced to cut production/supply in relation to demand to supprt prices...and now the whole systam has been left starving for for the resources to sustain stable growth.
It's all become unstable and is going to collapse...demand will drop and production/supply will have to be cut again.
It's a waterfall decline
China has so much reserves because the communists have structured their economy to be able to acquire US Dollars for far less than the cost of production.
The source of US Dollars is USconsumers...the source of any currency is ultimately the consumers...
Without QE China's export to the USA and Europe based economy would have imploded...QE is the FED subsidizing the consumers of the USA so that they can continue sustaining the Chinese.
The West controls the global supply and production of the vast majority of commodities...eliminate China's exports and they are a net importer of raw materials to sustain civilization inside China.
China would need to send out their military and take over the world to get their hands on the state control of the commodities they require to keep their domestic economy from hyperinflating.
Because the only thing China controls...is their exchange rate...they could easily have set it higher so that there were no reserves...but then the flow of debt inflation that has been flooding into China the past 30 years would have stopped...The Chinese bought all those Treasuries to sustain lower and lower rates so that US consumers could request more and more mortage debt to flood the US economy with money to buy slave labor Chinese imports...
Their economy would have imploded otherwise.
Now they are in Big trouble in little China...They basically have seduced their population into taking for granted double digit growth rates to infinity and beyond for the past 30 years with zero way to sustain it.
For the Chinese it's been the roaring 3 decades powered by the US/West's roaring 6 decades that is coming to an end.
The Chinese warnings are for domestic consumption...So when their domestic economy implodes...they can blame the USA and their bad policies...not the Chinese Peoples Liberation mafia.
The USA was set up to take the fall for it all...
Bretton Woods = The inevitable and certain death of the USA.
It was great at the start when the destroyed world was flooding the USA with firesale raw materials to obtain US Dollars to reflate out of the destruction of the 1933-1945 Bankruptcy reorganization following the 19 late 20's-1933 collapse of the British global trade system.
Now with the world rebuilt and inflated well beyond the previous high point...
Time to collapse and do it all over again.
After the collapse and a bit of starvation/suffering...You all will agree to the mind blowing austerity measures.
Back to an unfree market or fixed exchange rate system from the current free market or broken exchange rate system.
All are going to wake up from the dream they are awake into the nightmare soon.
Hundreds of millions and billions of people lied to their entire lives that have zero idea what is wrong or right true or false...will go insane.
Or the people you all love to hate will have some more tricks to postpone the inevitable nightmare a little longer so that you can enjoy hating them some more...