The World Goes Poof

Unless there is acceleration in forced selling a bounce is due at some point...1929 was not the total crash...it took until 1932 to hit bottom...




If what you create attempts to destroy Truth...Truth will destroy what you have created. There is never a lasting victory over lies and the war to defeat truth has no exit strategy and always ends in defeat.

The system is imploding because all the just think positive ignore the negative drones at the start could not see the logical conclusion...the implosion.

It's negative...It's ignored...All that the drones see is the positive...until they arrive at the logical conclusion then they are forced to see what they have been ignoring all along because it becomes impossible to ignore the negative any longer.

To them Truth is negative because the lies that they tell to themselves and fall in love with are positive.

In 1944 Bretton Woods set up the new Global system to replace the one that caved in 1929-1933.

It made the US Dollar the global trade medium of exchange...

By default that made

The US consumer the demand of the world.

The USA the supply of inflation.

The rest of the world the demand for US Dollars.

The rest of the world the supply for the US Consumers.

The rest of the world the demand for inflation.

And for 64 Years the US consumer requested commercial banks to manufacture more and more US dollars to inflate the world.

But there is a maximum potential of debt US consumers can service...and in late 2006 they reached maximum potential and were forced to stop requesting commercial banks to manufacture more and more and more and could only request less and less...

The biggest engine of inflation on Earth, the 37 year old real estate bubble, then began collapsing...and since then to now the consumer has grown more and more exhausted and the daily growth rate of the money supply of total debt has collapsed by 42% and caused a deficit of 1.4 trillion dollars in the US economy...basically starving the banking system of revenue and profits...causing them to cave in...stock markets to collapse...

There is nothing that can be done...the US consumer is exhausted after sustaining the inflation of the world for 64 years and it's game over...

They need to stop and pay down debt...but the world runs on credit...credit that consumers request commercial banks to manufacture...debt.

The world can't wait for US consumers to stop and pay down debt...so...world go poof.

Yes this is a normal economic cycle...

It's a wave...Inflate greater than previous inflation to maximum potential and then inflate less than previous inflation to maximum potential.

The old pre 1900 wave was smaller because there was not high technology that needed to be sustained.

There were depressions all the time pre 1900...but back then when the system collapsed the two horse family could eat a horse to survive a winter...now you can't eat an SUV or as they found out in the 30's...a model T...

The current modern technological version of the absolute capitalist hierarchial food powered make work enterprise is not compatible with what the Austrians call...the natural cleansing process.

So it has to be sustained forever...Unfortunately the conpounding interest equation at the core of all the accounting algorithms can't be sustained forever...

Ultimately reguardless of what is done...the system can only inflate greater than previously to maximum potential and then inflate less than previously to maximum potential...

Since it's not designed to inflate less than previously to maximum potential...it implodes.

It was doomed from square one...

It is a doomed system...All it does is inflate to maximum potential and implode...the survivors are hired to build the next system.

The employers hire you all and work you til the day you die or are no longer needed and lay you off or fire you.

Or you can be self employed and work yourself until the day you die to avoid the layoffs and firings.

All the system can do is inflate greater than previous inflation to maximum potential and then inflate less then previous inflation to maximum potential...

Inflate then implode...the top then hires the survivors to construct the next march to doom with glee.

Bankers need a consumer to sign on the dotted line. Without that...the bankers are game over...

The lenders of the world who demand more in return than they give as a condition for helping...Need someone to agree to that...

Or they can't operate.

The bottom supports the top...The top does not support the bottom.

US consumers became exhausted in 2006 and since then have slowed their requests for commercial banks to manufacture more new money...

The inflation flow through reached maximum potential in 2007...and now it's all heading to the basement.

Consumers have requested 1.4 Trillion dollars less than last year...by the end of the year it will be 1.8 Trillion...All the money being pumped into the banking system...Is trying to replace that loss of revenue and profit.

The US consumers are maxed out...there is just no way they can continue requesting the required amount of new money the compounding interest equation is demanding.

US consumers maxed out and their requests for commercial banks to manufacture the required amount of new money to service the continued existence of the previously requested money began to decelerate...

In late 2006...and by late 2007 their requests collapsed to the point that the daily growth rate of the money supply slowed by 42% the most in 62 years.

Basically depriving the US economy and banking system of 1.4 Trillion dollars of revenue and profit.

Causing the banks and economy to deflate.

The hyperinflation was hidden with accounting tricks...the US manufacturing sector was exported out of the USA to low wage and slave wage zones...like China...beginning in the late 1970's when the USA was actually beginning to Hyperinflate.

The below chart is the money supply or total debt of the USA...looks like a big doomsday spike to me...All the money supplies of the countries of the world look like that.

The tick at the top that looks like it's turning...It's not that bad...that's just two quarters of data...but there is no doubt...the US consumer is maxed out and is no longer able to keep the below chart shooting to the moon...That tick at the top represents the greatest slowdown of the growth rate of money supply in 62 years...

The money supply that US consumers have requested the commercial banks to manufacture.




Two more charts...one I drew in 2006 with a money supply of 400 Billion that compounds for 62 years at 7.49% average interest rate per year and you end up with 41 Trillion dollars

The other what US Consumers drew from 1944 to 2006...400 billion to 42 Trillion dollars after 62 years.

Here it is again...All the people lend and relend money into the system...until they at the top own the entire money supply and then the only way you all at the bottom can use money is by renting it...

Same thing as owning all the spaces on a monopoly board...









It's always debt backed...

Attach interest to money...lets say a dollar...

I give you 1 Dollar...you give me back 1.05...the money is now .95 money .05 debt.

Keep doing that year after year and by year 14 the money becomes 0.2 money .98 debt.

Eventually the top (all the rich people) suck up the entire money supply and it becomes their private property and the only way the bottom can utilize it is by renting it from the top.

The system implodes because of interest attached to the medium of exchange...

A silver economy? Once the demand for money is greater than the mines can produce...a silver economy caves in...

Attaching interest to money increases the demand for more...

I'll give you 100 silver pieces as long as you give me 105 back.

Imagine all the idiots in a system demanding more back than they give...at some point the mines will not be able to keep up and the economy will implode.

Which is why we have the current system...the top owns the system you are all employees of...and the top owns the money supply and to keep the bottom supports the top game going...the top changed the content of what the money is made out of to get past the point where all the idiots trying to live off interest exhaust the mines.

Currently US consumers are requesting commercial banks to manufacture 7 Billion dollars a day to sustain the USA (it's not enough currently because if you haven't noticed...the banking system is caving in) but anyways just to sustain this imploding to oblivion system...

Lets convert that into silver...works out to 703,517,588 ounces of silver a day just to sustain the silver economy...or is it?

The United States produced 1,200 metric tons of silver in 2007

1 metric ton is 1000 Kg

so 1,200,000 kg

1 kilogram = 32.1507466 troy ounces

2007 US production 38,580,896 troy ounces or on average 105,701 ounces of silver a day.

Lets say we use the 1792 coinage act to define the Dollar

1 troy ounce = 480 grains

so 50,736,521 grains per day

"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."

I'll use pure silver

Enough silver from mining operations to manufacture $136,664 a day.

But the economy needs 703,517,588 ounces of silver a day just to sustain the silver economy...

What is that in Dollars? $609,288,405.

Monetary demand is at least 4458 times more than supply.

Punchline 1

1200 metric tons covers only 35% of the US's current silver consumption...the other 65% is imported from Mexico, Canada, Peru, and Chile.

What are you going to use to pay for the imports of silver? Silver?

Then factor in...What is the US Treasury going use to buy silver? In order for the silver economy to work...the face value has to be worth more than the content of the coin or it will not circulate or just get melted down.

So then the US Treasury/US government must have some way to fix the wholesale price.

The only way a silver economy would work is if the population of the USA was reduced to 19th century levels or to when demand for silver was less than mine production and a trade balance maintained...and the easiest way to accomplish that is to just not trade because as soon as a deficit occurs...silver would circulate out and not come back.

Silver was money for 1000's of years...

The City of London invented the Gold standard to control the world...

The whole goldbug religion can be traced back to the pre 1900 fights by the City of London to get the USA on the Gold standard and off the silver standard.

The Goldbugs ultimately destroyed the 1792 defined US Dollar....when the City of London backed gold republicans lead by Mckinley passed the 1900 Gold Standard Act...Which changed the US Dollar from silver backed to Gold backed.

The City of London controlled the global gold supply and distribution network.

checkmate...

The top owns the gold and silver markets...the bottom doesn't

They own the auditors...Everything...the top hired the bottom to construct the system...the top didn't design to system to transform them into destitute bums...

Get it yet?

There's the official City of London "FIX" price and then the price you pay in the thunderdome...

Fractional reserve banking works like the below.

You want to buy a house and don't want to save up money since it would take decades too and you need a house now.

You need $200,000 so you go to a bank and ask for a loan...and if your current income is adequate the bank advances you $200,000 of your future income to spend now.

By creating a $200,000 asset and a $200,000 liability and attaching interest to it.

When you pay the principle and interest due on the first payment the liability and asset drop by the size of the principle payment...and the bank keeps the interest.

Why does the bank get rent paid to them for money they create out of thin air?

Because they are not creating money out of thin air...they are issuing credit to you...and since all the credit in the system was created by the banks they own it all...It's theirs...to do with as they please.

The above mentioned process of merchant bankers took place centuries ago...

That's how long the bottom has been renting the money supply from the top.

All that is in circulation is owed to the top...the bottom rents.

It's how European civilization has been operated for 1000 years.

It's just now in this modern age where all the descendants of chattel slaves need to be educated that they are beginning to slightly grasp what has been going on for many many centuries.

"To the extent that banks lend their own savings, or mobilize the savings of others, their activities are productive and unexceptionable. Even in our current commercial banking system, if I buy a $10,000 CD ("certificate of deposit") redeemable in six months, earning a certain fixed interest return, I am taking my savings and lending it to a bank, which in turn lends it out at a higher interest rate, the differential being the bank's earnings for the function of channeling savings into the hands of credit-worthy or productive borrowers. There is no problem with this process."--Murray Rothbard

A lie...

You send money into circulation under the condition that when you get it back you get more back.

You are always taking more than you give...eventually you and all the rest of the merchant class will suck up the entire money supply and the only way for the rest of the people in the economy to utilize the moeny supply is by renting it.

Now lets say you are in a static monetary system...or hard currency system...

Eventually the interest due or rent on the money supply owed to the merchant class becomes greater than the growth rate of the money supply or mine output...

It eventually becomes impossible for the bottom to pay the rent they owe the top...and the economy collapses.

Sorry Murray N. Rothbard...There is a little problem with your thinking.

From a Wikipedia link:

"At one time, people deposited gold coins and silver coins at goldsmiths, receiving in turn a note for their deposit. Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of the goldsmiths' notes."

BS as far as I can tell.

Once the money supply was sucked up by the merchant class and became their private property...The money supply was theirs...to do with as they pleased.

But of course the problem of the rent due greater than growth rate of the money supply problem needed to be solved...

So the merchant banker class issued credit that all the other merchants accepted in order to keep the money renting game going...and since the merchants were the middle men in between the farmers and the workers...You either accepted the credit to buy food or you starved.

Actually there was plenty of small coinage for the peasents because the more well to do members of the system liked the idea of not have to lug bags and chests of money around leaving plenty for peasants to play with.

Thou shalt not kill does not protect the good from the evil...

It protects the evil from the good.

Like really? Who goes around killing good people? Good people?

But you all just sit back waiting for a champion...a Superman...to show up and save you.

And yes I am isolated from all this...I destroyed all my cherished delusions years ago...

So I have nothing that is being threatened...

I know what is going on so I'm not doing anything...I prepared 10 years ago...

It's the rich vs the poor...

You all won't realize this until you are totally and utterly wiped out...poor...

Right now you are all far too rich...You would all have to attack yourselves...

The top maintains their position by giving the bottom what they want.

You all are still desperately in love with this inevitably doomed and blowing up in your faces system...

Construction of a new system will not occur until the destruction process is complete.

Depending on how old you are...You have years of misery to live through until the next construction phase.

The System Has Reached Maximum Potential And Is Imploding

[When I started this blog my goal was to put Hypertiger's posts in one place. I felt what he had to say (and how he says it!) was too important to be lost forever and worse, sullied by those who, for whatever reasons, didn't believe his warnings.

I never expected anyone to ever read it and was surprised to see the first comment. That it has proven to be popular is just as much to your credit as Hypertiger's. It was you who spread the word so that others might benefit from Hypertiger's wisdom. I know if I have any chance of surviving this, it is because of him. I am glad there are more who can say the same.

Now that we finally see IT coming - and there really is no telling what happens from here - while I am still able to, I want to wish you all the best of luck. I'll keep posting Hypertiger's work as long as I have an internet connection! :-)

Cheryl]





This is what is happening...The 1944 Bretton Woods global trade system has reached maximum potential and is imploding.

The roaring 6 decades is coming to an end.

As soon as Bretton Woods was agreed upon...The fate of the world was sealed.

There is nothing that can be done.

It's forced liquidation as far as I can tell...It's being managed downwards.

Otherwise the stock market would just implode to zero without buyers...

Because someone is buying up global indexes and their paper losses are like 20-30% up to this point.

Small time speculators are not taking massive paper losses like this day in and day out betting that the market is going to come back and go higher than their entry point.

Waterfall declines are normal...this day after day crash globally could only be sustained if someone is buying it all up globally as it falls to prevent it from crashing to oblivion.

It's going to have to bounce at some point..and then all the babble heads on TV will be saying...yay the medicine from the Government is kicking in.

The stock markets have zero money in them...the only money that is possible to be there is what the buyers input.

Of course the best plan is to just keep sending money to Wall Street to buy...without constant and massive buying pressure...the markets implode to zero...

So then who has been buying global markets on the way down to slow the collapse and prevent them from imploding...basically since the bail out?

A PPT type of organization...

There needs to be a bounce soon because people are starting to notice that this is abnormal.

Crashes happen on a day or two...not day after day...

Below two charts od the S&P 500...From 1950 to present you can see that there is no waterfall decline...just a nice straight down multi day crash...Which is only possible if someone is buying like mad all the way down otherwise it would just crash into circuit breakers constantly.












The compound interest equation you all worship demanded you all supply it with more and you all refused the LORD's command and now you are being punished for your disobedience...

Give the equation what it demands or die...It's very simple.

The bottom supports the top...

Stack up some blocks and pull the bottom ones out...the top falls down.

FDIC will cover up to X amount in accounts but to keep banks from caving in due to withdrawals...the amount per day that you can withdraw can be cut down...

When the population stops requesting commercial banks to manufacture new money and then stops servicing the outstanding loans or defaulting.

The flow of money coming into the bank to cover normal daily withdrawals collapses...

So then the amount that is allowed for withdrawal has to be rationed...or the bank runs out of cash and has to close down operations...(Can't service any of its obligations either)

All fractional reserve systems look healthy until they say sorry we have no money to cover withdrawals.

You all are already enslaved right now...You all are just dreaming that you are awake.

The top only allows you to see what they need you to see.

You all don't see what you are not supposed to see.

Just in time will kill every time.

The 3 stages of a compounding interest banking system. (More than economists know)

1. Inflation of debt and the destruction of savings.
2. Deflation of debt and the destruction of equity
3. Bankruptcy of the banks, collapse of the economy/division of labor, and the consolidation of power.

In the case of the destruction of the grain stocks or savings...the equity that will be destroyed in stage 2 is human beings.

Without some kind of force to impose a market...I seriously doubt a Farmer is going to trade a years worth of food for an ounce of gold...

I'm extremely sorry to inform you of this but the cost of food is the most controlled and manipulated commodity currently.

Without that force...An ounce of gold that some idiot panned out of a river in a week is not worth a short ton of grain that takes a season to grow like it is now...

SORRY.

Maybe a sack that could feed you for a week...Unless you stuck a Gun in a farmers face and forced them to accept your exchange rates.

A farmer has zero use for gold.

The top take control of the land the farmer grows the food on and charges rent...then the farmer might have a use for gold.

In a collapse of civilization scenario...Gold and silver would lose massive purchasing power.

There is no money being produced outside of the commercial banking system...There is no magic printing press or its electronic equivalent.

All the money in circulation was requested by consumers to be manufactured by commercial banks...

The dollar has legs because the producers of the US Dollar or source have maxed out and can no longer request the required amount of new money to service the continued existence of the previously requested money...

The effect is a massive slowing of the amount of US Dollars on the Global market...

In 1944 Bretton Woods created a NEW GLOBAL TRADE system...that made the US dollar the global trade medium of exchange.

By default the US consumer became the demand of the world...and the supply of inflation.

The rest of the world in this global system you all don't seem to know exists became the supply to the US consumer demand...the demand for the US Dollar and inflation.

And the rest of the world has become more and more dependant upon the USA the past 64 years.

Because the only source of US dollars is US consumers...

Not magic printing presses or their electronic equivalent....Ben told the mass of mindless morons that lie and they all believed him.

And then piled up all their life savings and soul and what little brains they had left and the kitchen sink on the hyperinflation bet...

And lost...

Canada's economy is still basically chugging along in boom mode and commodity prices have collapsed so the supply of Canadian dollars flooding onto the global market is way more than demand for them so they are collapsing in value compared to US Dollars.

Bretton Woods rule changes in 1971 made the US Dollar float against gold and the rest of the currencies of the world float against the US Dollar or GLOBAL TRADE MEDIUM OF EXCHANGE.

All the rest of the currencies of the world derive their strength or weakness from the US Dollar and the only source of US Dollars is US consumers.

The whole global trade system is based on the US consumer.

The top live off the yield from the bottom...

Eventually the top sucks up the entire money supply faster than the mines can produce it...fractional reserve banking was the solution.

The implosion is a natural occurrence...That the bottom is just totally unaware of.

The top step back and once the dust settles..hire the survivors to construct the next march to doom with glee.

It's simple just keep adding years to the compounding interest equation and eventually the interest demanded by the equation becomes greater than the economy can produce...

Fractional reserve banking addresses the gold and silver mine limit...but eventually the compound interest equation can no longer be supported by the economy and the whole system slows then stops then implodes.

That's what is currently happening...the compounding interest equation at the core of all the accounting algorithms is demanding more but the slaves are producing less...because they have maxed out.

Get rid of fractional reserve banking?

Well then no money could be lent out if there were 100% reserves...then factor in the past 500 or so years of history has been financed by fractional reserve banking.

The top have already figured this all out before any of you existed...Before the USA existed.

Inflation greater then previous inflation to maximum potential.

Then when maximum potential is reached.

Inflation less than previous inflation to maximum potential.

The USA along with the world has been hyperinflating for 64 years now...it's just been hidden with accounting tricks...

The inflation of the USA and world has slowed...But currently we are still inflating greater than previous inflation...

I have sad news for you all...We have not even begun to collapse yet.

All you have seen up to this point...yawn.

When we do finally cave in...All this will be gone...So enjoy the burning embers of the good old days.

You all are not going to escape the consequence of your choice to be ignorant of the consquences of your choices.

You Are Not Supposed To Know How The System Functions

All the money in circulation is debt...51 Trillion globally...51,000 Billion dollars globally. It's the money supply and it's all debt.

People centuries ago chose to take more than they gave...they eventually sucked all the wealth from the hands of the many into their hands...

And now rent it to all of you...

The top lives off the yield from the bottom.

The FEDERAL RESERVE monetizes assets...The US Congress authorizes the US Treasury to issue Treasury bonds.

The 700 Billion in Treasury bonds will be sold into the 51 Trillion dollar credit market for 700 Billion dollars.

The 51 Trillion dollars is what US consumers have requested the commercial banks to manufacture the past 64 years.

Commercial banks issue credit...

In a credit system...credit is used as money and it's debt.

The 51 Trillion dollar credit market is the money supply of the USA and the total debt.

The FEDERAL RESERVE monetizes assets...or converts a mortgage into cash when cash is needed...Federal Reserve Notes or their electronic equivalent...

For a short period of time..It's a loan that has to be paid back.

Ultimately a loan from the USA to the USA...

The population just has to work to service the continued existence of work...If they stop...then there will be no work...No income and most of you would starve and die of thirst...

The employers of course live off the yield from the employees.

Congress did not grant any right to regulate the value of the Dollar to the FEDERAL RESERVE.

The Congress shall have power...

...To "coin" money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures

Nothing in there about Dollars...

And the current Dollar "coin" is defined by Congress to be.

Mass: 8.100 g (0.26 troy oz)

Diameter: 26.5 mm (1.04 in)

Thickness: 2.00 mm (0.079 in)

Composition: 88.5% Cu
6% Zn
3.5% Mn
2% Ni

The value of the above is 1 Dollar.

A FEDERAL RESERVE BANKNOTE is an IOU for a dollar.

And basically all the US government did was give the FEDERAL RESERVE the monopoly on banknotes in the USA.

And the Bureau of Engraving of the US Treasury is where they are printed.

"A business that can be traced back to August 29, 1862, to a single room in the basement of the main Treasury building where two men and four women separated and sealed by hand $1 and $2 United States Notes which had been printed by private banknote companies."

prior to that...In the so called free banking days...

"1836 State Bank Notes

With minimum regulation, a proliferation of 1,600 local state-chartered, private banks now issued paper money. State bank notes, with over 30,000 varieties of color and design, were easily counterfeited. That, along with bank failures, caused confusion and circulation problems."

Commercial banking is 600 years old and every commercial bank that has existed over the past 600 years is basically a smaller version of a central bank.

The banks have been creating money out of thin air for 6 centuries now...

Get rid of that and kiss the last 600 years goodbye.

You all have zero idea how long this has been going on or a real ability to comprehend...

The first Central bank of the USA was authorized by George Washington.

The second was authorized by James Madison.

The third called the FEDERAL RESERVE by Woodrow Wilson.

The first central bank appeared in Venice 1172...until that system inflated to maximum potential and imploded in 1345.

The current oldest central bank is the Bank of England and the FEDERAL RESERVE is just one of the branches in the 314 year old Global branch network.

Again...How treasuries...really work.

Congress authorizes the US Treasury to issue...150 Billion dollars worth of Treasuries...that are then sold into the market for 150 Billion dollars.

US consumers request commercial banks to manufacture money...In 1945 the money supply or total debt was 355 Billion dollars.

The amount of public debt or the amount of bonds the US Government issued and sold for money from the money supply was 259 billion dollars...

Back in 1945 the money supply was 355 billion dollars and the US Government had borrowed 73% of the money supply or total debt of the USA to run WW2

From 1945 to currently...US consumers have requested commercial banks to manufacture another 50,645 Billion dollars or 50.6 Trillion dollars of new money or debt...since debt is money and money is debt in a debt backed by debt system...and the money supply or total debt of the USA is currently 51 Trillion dollars.

In the same period of time...1945 to now the US Government has issued another 9.8 Trillion dollars of Treasuries and BORROWED 9.8 Trillion more of the money supply or total debt of the USA...

Or 10.1 Trillion of the 51 Trillion dollar money supply of total debt...or 19.8%

No new money was created by the US Government or the FED.

All the new money creation the past 63 years in the above example was by US consumers requesting commercial banks to advance them their future income to spend in the present.

Because the banks own what they issue...credit...and the future income of a person in the system is credit...

The compound interest equation is demanding more and getting less...and all the yucky stuff you are seeing is the visible effects.

The collapse of the US consumer in 2006 finished the Global system.

Treasuries don't back FRN's

US consumers do...US consumers request commercial banks to manufacture new money...US treasuries don't request commercial banks to manufacture new money.

Japan's rates are like any others...they need volume...The key lending rate rose in 2006 to now from 0.1% to 0.5% due to the US consumer maxing out after 64 years.

The largest source of inflation on Earth is the US real estate market...

When banks advance future income to consumers to spend in the present...an asset and a liability is created...lets say for 200,000 at x% interest

As consumers pay the loan of their future income back...the asset and liability shrink by the principle amount...the bank keeps the interest...that's the profit.

The consumer basically extracts the money used from the economy in which they spent the future income.

Mortgage money spends a very long time in the economy...decades...

But in 2006 when the 15 year old house sales boom in the USA caved in when US consumers hit maximum potential...that supply of massive volume...dried up.

Japanese rates were forced up due to lack of volume...

YOU ARE ALL NOT SUPPOSED TO KNOW HOW THE SYSTEM FUNCTIONS.

In 1944 Bretton Woods made the US dollar the global trade medium of exchange.

By default that made the US consumer/USA..the demand of the world.

and the supply of inflation.

Everyone else became the supply of US consumer demand and the demand for US Dollars and inflation.

And since then the Global system has become more and more dependant upon the US consumer...

Not less...

But there is a credit cycle that formed...where US consumers become exhausted and request commercial banks to manufacture less new money causing the flow of money into the bond markets to slow...which causes yields to rise...

Until the economy begins to slow and the US consumers become desperate and request commercial banks to manufacture more new money causing the flow of money into the bond markets to increase...which causes yields to drop.

And the FED follows along...saying they are raising or lowering...Which fools the masses into believing the FED is actually in control.

Does the FED have the power to engineer rates...Yes but far less than you all know...

Anyways after the exhaustion desperation cycle...where rates rise and then drop...consumers come out in more debt than they went in with.

The debt to income ratio kept growing...in 1960 the Household debt to income was 50%...by 1978 it was 60%...by the 1990's 70%...by 2000 it was 85%...by 2006 it was 124%

Past 100% and consumers are basically forced to request commercial banks to manufacture less and less new money.

Consumer money production topped into early 2007 then began to rapidly collapse by late 2007 and so far all of 2008.

The daily growth rate of the money supply/total debt or the amount of money/debt per day on average US consumers were requesting commercial banks to manufacture dropped from 12 Billion a day average to 6.99 Billion dollars a day average year to date 2008...or a 42% drop...the largest in 62 years.

So far year to date the US and global economy is short 1.4 Trillion dollars...

The year over year growth rates are on track to collapse by the most ever.

It's not sub prime or Wall Street corruption...the maxout of the US consumer after 64 years is the cause of the drop of the required inflation to sustain the sub primes, Wall Street, Main Street, the rest of the world.

The real estate bubble in the USA is 37 years old...the portion that is collapsing now is just a Bubble within the 37 Year old bubble...If the 37 year old bubble pops due to maxout...all the mortgages in the USA will basically implode to oblivion...about 14 Trillion dollars worth...after all is said and done it could easily cause a rapid 15% contraction in the money supply of the USA...

Perspective...the current global yucky stuff is being caused by a 42% slowing of the rate of growth of the US money supply/total debt...the 37 year old real estate bubble pops and we are talking about a contraction of the money supply from 51 Trillion to 44 Trillion or less and actual negative monetary growth rates.

China (Wait until there is not enough inflation to hide all their crap loans and corruption) India (same), Europe...the rest of the world, bye bye Dubai, will sympathetically implode along with the USA.

Up to this point...It's been Mickey Mouse...

Nothing significant has taken place...

The US consumer is toast.

period end of story...

US Consumers request commercial banks to manufacture money...PERIOD END OF STORY

They need to be willing or able...currently they are not willing or able to request the commercial banks to manufacture the "required" amount of new money to service the continued existence of the previously requested money...

Sub primes were previously requested money...world indexes were pumped up with previously requested money...

Real estate in the USA in general and wholesale commodity prices...are all pumped up with previously requested money.

And their price is maintained with newly created money.

So far it's not too bad...the effect is only showing up as slowing of the growth rate of the money supply.

There is nothing the FED can do or the US Government etc...Ok they can somewhat slow the implosion for awhile.

The bottom supports the top...the top does not support the bottom.

The bottom powers the banks and the FED and the Government...not the other way around.

Hoodwinked For 221 Years...

The stock markets are not legitimate components of a functional economy...the markets are just greater fool games that have over time been sold to you all as legitimate components of a functional economy...

They are not...They were just scams..from day one...All the so called stock markets in the world are just scams.

"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 glorifies it."--Frederic Bastiat

Really you all are so far gone it's amazing.

You are all asleep dreaming you are awake.

Income trusts is where most people were wiped out in the 29 crash...

They changed the name of them to Mutual Funds and got you all to throw your life savings away...again.




[Sorry, couldn't help myself! CLRH]


The market has zero money in it...as soon as you buy the seller gets your money and can basically blow it how they see fit.

That's why they want you all to keep sending them money...

They will keep sending you pieces of paper telling you how rich you are...

The markets are fractionally reserved...as long as there is not a run...the scam is not revealed...and any money you put in the markets is basically sucked right out again.

From 1950 to 2000 the money supply of the USA increased from 425 Billion to 27.1 Trillion dollars or roughly a 6300% increase

The DOW went from 199 to 10,000 or roughly a 5000% increase

From 2000 to now the money supply went from 27.1 Trillion to 51 Trillion or an increase of roughly 88%

The Dow went from 10,000 to 10,000 an increase of 0%

A whole lot of people have sent money to Wall street...Trillions has been extracted the past 8 years.

Since markets have been caving in from their highs...20 Trillion of equity globally has just vanished.

And as long as all the sheep don't sell...the scam will not be exposed...but if everyone made a run on Wall Street and demanded their money back...The markets would implode to zero in nanoseconds.

The stock markets are scams...right in front of your eyes...and the vast majority have been brainwashed into thinking they are legitimate components of a properly functioning economy...

They are just greater fool games.

Call the SEC...The owners of the stock markets/greater fool games created the SEC...to protect them...

Consumers are maxed out so if the Fed were to buy unsecured loans all it would do is buy some time since consumers can't service debt now regardless...

The banks will have no way to take this wholesale debt and sell it to consumers retail. It's like giving someone product without payment and then they sell it to obtain the payment but if they can't sell it...then game over...

The Treasury borrows money from the US money supply so ultimately what the Treasury or US government is doing is saying:

'Well you all don't want to request commercial banks to make more new money...we will do that for you then.'

But all that will do is keep the banks from imploding...It's not going to do anything to address the maxed out consumer/collapsing economy problem.

Consumers request commercial banks to manufacture money...period end of story.

They use their current income to back their requests for commercial banks to advance them their future income to the present.

There has been zero money creation outside of the commercial banking system since the Greenbacks of the civil war.

The FED does not set rates...and its ability to engineer short term rates is very limited...

You also need consumers that are willing and able to request the commercial banks to manufacture debt...and if they are maxed out...game over regardless of rates.

All that the FED is currently doing is lending banks credit using their current assets as collateral to keep them from imploding due to the lack of consumers requesting them to manufacture more new money.

The money supply is not showing any signs of growing. Because all the money in circulation has been requested by consumers to be manufactured by commercial banks...

The workers at the bottom slave to power the FEDERAL RESERVE the US Government and Treasury...

NOT THE OTHER WAY AROUND...

Sorry...

All that has happened up to this point is monetization of assets...Using the existing money supply of 51,000 Billion dollars or 51 Trillion dollars that US consumers have requested the commercial banking system to manufacture to past 64 years.

I see no evidence of any growth of the money supply.

The US consumer reached maximum potential in 2006 and the US real estate sector...the largest engine of inflation on Earth...began collapsing...around that same time revolving credit or credit card use accelerated...but by late 2007 Consumer requests for commercial banks to manufacture money began to rapidly collapse...by 42% by q2 2008...the largest drop in the daily growth rate of the money supply in 64 years.

Year to date the US economy is short 1.4 trillion dollars...and in 1944 at Bretton Woods the US Dollar was set up as the global medium of exchange and by default the US consumer became the demand...while the rest of the world became the supply for the US consumer and the demand of US dollars

The USA became the supply of inflation and the rest of the world became the demand..

That's why the whole global system is deflating currently.

The largest engine of inflation on Earth...the US real estate sector...due to the US consumer maxing out has collapsed...

Causing the supply of inflation that has been inflating the world for the past 64 years to slow down massively.

The whole global system will shatter and go feral.

It's not the FED...all the central banks in the system are a global branch network with the Bank of England in the City of London as main branch. Everyone has an easy money policy to sustain US consumer consumption or the USA implodes sucking the rest of the world with it...

All that is happening currently is that after 64 years the US Consumer has maxed out and can no longer sustain the inflation of the world...so game over.

The Russians and Arabs are in no position to take over as the supply of inflation the rest of the world is demanding.

No one can any more.

It's always been debt based. All that happened in 1971 was the world ran out of Gold to sustain global trade was all...

There was two choices...The USA stop trading and then implode to oblivion sucking the rest of the world down with them to oblivion or get rid of the gold requirement and postpone the implosion.

At the end of the 1933-1945 bankruptcy reorganization...Bretton Woods did nothing to address the actual cause of the 1929-1933 collapse of the global trade system.

Saving you say?...What if I constantly saved up 10,000 silver pieces a year and then lent them out for a year at 10%? for 75 years.

I would have 100 million silver pieces...Now imagine 10 people did that...and the money supply is 1 billion silver pieces.

In 75 years 10 people would own the entire money supply of a billion silver pieces and the only way the the rest of the population could obtain money is by renting it.

Really the 10 would lend out 1 Billion silver pieces and demand back 1.1 Billion silver pieces in a year...where's the other 100 million silver pieces going to come from? and then the next year...is more and more and more...

Well the owners of the money then start fractionally reseving it...issuing IOU's...that the 10 all agree upon to accept.

Eventually the total money supply shrinks more and more in relation to the IOU's in circulation.

That's what happens when you attach interest or rent to money...

The top did that many centuries ago...

The USA does coin money...The dollar coin, the quarter, the nickel, the dime, the penny...

A group calling itself "we the people" gave Congress the power to

"coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"

Just like the Constitution dictates...

The FEDERAL RESERVE does not coin money...or issue money...It issues credit.

There is nothing in the Constitution dealing with the commercial banking system's right to issue credit...

hint...The above group calling itself "We the people"...Were mostly rich and all were dependant upon the the compounding interest commercial banking credit system to finance their desires.

Just like all the rich people today.

Hoodwinked for 221 years.

Pegging currency will do nothing...Interest attached to the medium of exchange is the cause of the inevitable train wreck.

The world will cave in regardless of what is done and if the new system allows interest...All it will do is inflate to maximum potential and implode again.

Really this is how the top has been operating for 1000's of years...it's part of the normal opeartion of the system.

The system reaches maximum potential...and implodes...the top then hires the survivors to build the next one.

You are all just labor that the top either has a use for or they don't...period end of story...you get it yet?

All money is fiat...

Or by decree...The top says...this is money or else...period end of story.

Gold and silver are money until the supply/production is utilized to its maximum potential and then the top or owners of the money alter the construction of what they own...and since the top controls all the food production and distribution networks...You either use what the top says is money to buy food or starve.

It's the Supply of money and the Demand for gold...

The reason why the price dropped is because the rate of growth of the money supply caved.

Due to the US consumer maxing out in 2006 and becoming increasingly unwilling or unable to request commercial banks to manufacture the required amount of new money to sustain the existence of the previously requested money...

The daily growth rate of the money supply has dropped by 42% since late 2007...the greatest slowdown in 62 years.

Without inflation...the goldbugs are DOA...simple

You need constant inflation to sustain a price...There is not going to be...All I see is a doomsday spike up to maximum potential which the top will short to oblivion once the last mindless moron is in...

There is a 200 Trillion dollar equivalent money supply...with the US dollar making up a quarter of it.

So there is plenty of fuel available to power a a mindless moron blast up...but no way to sustain any mindless moron driven spikes for long.

Could have saved time by saying...I thought there was a magic printing press...It should have turned on to save my ass by now...something sinister is going on...

Ya there is no magic printing press...It was Ben telling the drones during a time when they were scared of deflation back in 2002 to not worry...the FED and Government have a secret weapon that can kill GOD...

But now it's been revealed that they don't...

Politicians?

Yes...the top hires them to hang from lamp posts...

The top maintains their position by giving the bottom what they want...If the US Government needs to be fed into a wood chipper to give you all what you want...

That's what the top will give you.

I don't think...I know...

I don't tell people what I think...I only tell people what I know...There is no way you will ever be free from ignorance by choosing to worship the Just think positive ignore the negitive religion.

That's why the freedom you believe in will never be obtained...It is a cherished delusion...Which is a lie you tell yourself and fall in love with.

What I point out is a threat to your cherished delusion and your post is a pathetic attempt to fight the threat.

You will not win because Truth is infinite and indestructible...

You can of course point out all the lies I'm telling...Because I'm not a web bot...

False information is a lie.

Whether I know I'm misleading you or not the consequences are the same...

A Lie is a lie.

The only way a just think positive ignore the negative drone can ignore the negative...Is by lying to themselves.

Really...You have the freedom to construct lies all you want...Unfortunately I have sad news for you...

You have zero freedom to escape from the consquences of all the lies you choose to manufacture.

No escape, No hope...sorry.

Really...

It's generally why in real life most stay away from me...because I end the games they attempt to play with me before they even start.

Sorry...the end...

Of course you have the freedom to cry like a baby all you desire.

Maybe if you stopped ignoring the negative you would see what the consequences of your actions are and could avoid smashing into brick walls and crying.

Sorry...hope is a total fabrication...a delusion.

Oh I sure Hope someone or something more powerful than me will shatter my cherished delusions and set me free.

Of course hope being one of the cherished delusions.

Not going to happen...You will fight to the death defending that which you cherish...

You are all going to go insane soon...

"Disintegration of Global Finance Within Days" Updated

"Germany takes hot seat as Europe falls into the abyss
We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.
by Ambrose Evans-Pritchard
Last Updated: 11:05AM BST 06 Oct 2008

Star-crossed bankers: The European Central Bank played a shockingly destructive role
Investors will learn today whether the Paulson bail-out - fattened to $850bn (£480bn) by Congress - can begin to halt the death spiral in the credit system. So far, the response looks terrible.

Germany is now in the hot seat. The collapse of a rescue deal for Hypo Real Estate on Saturday threatens a €400bn (£311bn) bankruptcy that nearly matches the Lehman Brothers debacle for sheer scale.

Chancellor Angela Merkel has been forced to pull her head out of the sand, guaranteeing all German savings, a day after she rebuked Ireland for doing much the same thing. Reality intrudes.

During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.

The US commercial paper market is closed. It shrank $95bn last week, and has lost $208bn in three weeks. The interbank lending market has seized up. There are almost no bids. It is a ghost market. Healthy companies cannot roll over debt. Some will have to sack staff today to stave off default.

As the unflappable Warren Buffett puts it, the credit freeze is "sucking blood" out of the economy. "In my adult lifetime, I don't think I've ever seen people as fearful," he said.

We are fast approaching the point of no return. The only way out of this calamitous descent is "shock and awe" on a global scale, and even that may not be enough.

Drastic rate cuts would be a good start. Central bankers still paralysed by a misplaced fear of inflation – whether in Europe, Britain, or the US – have become a public menace and should be held to severe account by our democracies. The imminent and massive danger is now self-feeding debt deflation.

The lesson of the 1930s is that any country trying to reflate in isolation will be punished. The crisis will ricochet from one economy to another until every one is crippled. We are seeing it play again in this drama as our leaders fail to rise above their narrow, parochial agendas.

The European Central Bank – which raised rates into the teeth of the crisis in July – has played a shockingly destructive role in this enveloping slump. Its growth predictions this year have been, and still are, delusional. Neglecting its global role, it has vastly complicated the fire-fighting efforts of Washington.

It could have offered "cover" to the US Federal Reserve this spring when Ben Bernanke was forced by events to slash rates to 2pc. It could at least have signalled an end to monetary tightening. That is how an ally ought to behave.

Instead, it stuck maniacally to its Gothic script, with equally unhappy consequences for both sides of the Atlantic, as well as for China, Japan, and India. The euro rocketed yet further, which it turn set off an oil shock as crude metamorphosed into an anti-dollar with leverage.

The ECB policy was self-defeating, even on its own terms. It merely drove headline inflation even higher, while deeper forces of underlying debt deflation pulled the real economies of Germany, Italy, France, and Spain into a recessionary vortex.

Far from offering reassurance, the weekend mini-summit of EU leaders served only to highlight that nobody is in charge of this runaway train. There is still no lender of last resort in euroland. The £12bn stimulus package is risible.

Angela Merkel has revealed her deep limitations. It was she who vetoed French efforts to launch a pan-EU rescue package, suspecting that any lifeboat fund would prove to be Trojan Horse – a way of co-opting German taxpayers into colossal transfers of wealth to Latin Europe.

In that she is right, but it is too late now for dysfunctional EU political games. By demanding that those who caused the damage should pay for it, she crossed the line into caricature, or worse.

Her comments echo word for word the "we're alright Jack" attitudes of Euro-pols during the first US banking crises in 1930-1931, until the storm hit Europe and the entire cast was swept away by furious electorates, or simply shot. Thankfully, this EU stupidity is at last drawing serious criticism.

"We have to make sure Europe takes its responsibilities, like the US: action must be taken quickly and in a concerted manner," said IMF chief Dominique Strauss-Kahn.
As for the US itself, it has not yet exhausted its policy arsenal. It can escalate further up the nuclear ladder. The Fed can cut interest rates from 2pc to zero. If that fails, it can let rip with the mass purchase of US debt.

"The US government has a technology, called a printing press," said Fed chief Ben Bernanke in November 2002. (His helicopter speech).

In extremis, the Treasury/Fed can swoop into any market to shore up asset prices. They can buy Florida property. They can even buy SUV guzzlers from the car lots in Detroit, and mangle them in scrap yards. As Bernanke put it, the Fed can "expand the menu of assets that it buys."

There is a devilish catch to this ploy, of course. It assumes that foreign creditors will tolerate such action.

Japan entered its Lost Decade as the world's top creditor, with a vast pool of household savings to cushion the slump. America starts its purge with net external liabilities of $3 trillion, and a savings rate near zero. Foreigners own over half the US Treasury debt, and two thirds of all Fannie, Freddie, and other US agency bonds.

But the risk of a dollar collapse is one for the distant future. Right now the world faces the opposite problem. There is a wild scramble for dollars as a $10 trillion pyramid of global lending based on dollar balance sheets "delevers" with a vengeance.

This is a "short squeeze" on those who have used the dollar for a vast global carry trade. International banks are facing margin calls on their dollar leverage. It is why the Fed is having to provide $1.25 trillion in dollar liquidity for the entire global system, according to estimates by Brad Setser from the Center for Geoeconomic Studies.

The crisis engulfing Europe, Asia and emerging markets, makes life easier for Washington. The United States is becoming a safe-haven again.

The Fed can now hope to pursue monetary stimulus "a l'outrance" without being slapped down by the currency, debt, and commodity markets. Take comfort where you can."

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3141428/Germany-takes-hot-seat-as-Europe-falls-into-the-abyss.html


The global economic structure that is imploding is the 1944 Bretton Woods Global trade system.

In 1944 the US Dollar was made the global trade medium of exchange and by default the US consumer bacame the demand of the world...

Everyone else was the supply...The rest of the world wanted to rebuild at the end of the 1933-1945 Bankruptcy reorganization of the global system that collapsed 1929-1933...

Well if you needed something from the global market...then you needed US dollars to buy stuff from the global market....according to Bretton Woods.

Well then what is the source of US Dollars?

US consumers...If you need US Dollars ultimately you need to give something to US Consumers to consume...

So in the beginning there was a massive influx of cheap imports of raw materials into the USA to obtain US dollars so that the rest of the world could "inflate" out of the rubble...

And they did...by the late 1950's the rest of the world was mostly rebuilt and the flow of cheap raw materials began getting bid up in price due to increased global demand.

The cheap raw materials were becoming more expensive...But everyone in the world was dependant upon US consumer debt inflation exports to sustain their economies...

The US dollar was the global trade medium of exchange...but it was also fixed to gold at 35 Dollars an ounce...and all the rest of the currencies of the world were fixed to the US dollar.

How the plan was to work...Was any US Dollar reserves held in foreign Central banks could be exchanged at the FEDERAL RESERVE for Gold to balance trade.

But to balance trade the USA would have to cut imports into the USA to stop hemorrhaging Gold...or run out of Gold and stop trade anyways...and if the USA stopped consuming...it would collapse and the rest of the world that had become dependant upon US exports of inflation would collapse without US consumer debt inflation...the problem kept getting worse all during the 1960's...the gold kept flying out of the USA...In 1971 the rules were changed to stop the hemorrhage and to prevent (postpone) the implosion.

Now the US dollar would float against gold and all the currencies of the world would float against the US Dollar and all the dollar reserves could be exchanged for US Treasuries...

If that change was not made...the USA along with the rest of the world would have imploded to oblivion back in the 1970's

Zeigeist is a sales pitch...A just think positive ignore the negative delusion.

The vast majority of you would need to be eliminated from the equation...That is not mentioned.

The entrance would be the Ministry of Truth and Understanding...the exit would be a burning pit of diesel for most that were foolish enough to enter.

Plus, the guy is an idiot...the problem is that US consumers after 64 years have maxed out...They are no longer willing or able to request the commercial banking system to manufacture the required amount of new money to sustain the continued existence of the previously requested money.

That's the actual problem...All the rest are effects from that problem.

He says to drop all the rates in the world...

Consumers request commercial banks to manufacture money...when they do an the bank agrees...the bank creates an asset and a liability and attaches interest to it.

As the consumer pays it...the principle causes the liability and asset to shrink...the bank keeps the interest as profit.

Interest rates are driven by consumer demand...to sustain rates you need volume...

Dropping rates will do nothing if banks currently can't obtain a profit from current yields.

It's like an all you can eat buffet...you keep lowing the price and make massive profits as the volume increases but once everyone is full the volume collapses...You can offer to pay people to consume the food and they will decline.

The US consumer basically maxed out almost 2 years ago and is just now finally collapsing from the strain...(the just think positive ignore the negative religion is crumbling because the negative has become impossible to ignore any longer)

There is no action listed in the article that comes close to actually addressing the actual problem or the cause.

To Find Your Greatest Enemy...Look In The Mirror

The cause of this crisis is the attachment of interest to the medium of exchange or yield. Everything else is an effect...

Everything has been done in a desperate search to obtain more yield...

Commercial banks lend money they don't have to people that want money they don't have.

Save it up...can't wait?

Well then a commercial bank will advance you your future income to spend in the present.

Lets say $200,000...by creating an asset of $200,000 and a liability of $200,000

Which increases the money supply of the USA by $200,000 until you make your first payment of principle and interest...the asset and liability shrink by the amount of principle...the money returns into thin air/the money supply shrinks by that amount...and the bank keeps the interest...

That's why mortages are so important to the system...Because they allow the money supply to expand and stay expanded for a long term.

As defaults rise from exhausted consumers no longer willing or able to service previously manufactured debt...the banks are forced to keep cranking up yields to make up the difference...Eventually to maximum potential according to the rules in the Terms and Conditions of the credit cards.

The companies just reclass the cardholders into universal default and crank yields up.

At some point they will have to stop all credit cards since people will just be maxing them out as the whole thing caves in with no possible way or desire to pay.

Once consumers can no longer request commerical banks to manufacture the required amount of new money to service the existence of the previously manufactured money...game over.

All that a compounding interest system can do is inflate to maximum potential and implode...period end of story...

Attaching interest to money is taking more than you give.

It's the same as cutting down trees faster than they regrow...it's inevitable that you will run out of trees and if your civilization needs the trees to sustain it's continued operation...It stops to operate.

The top lives off the yield from the bottom

When the bottom can no longer supply the top with the required yield...game over.

Simple...

The whole system implodes...

Because there is no way to sustain a system that constantly demands more and more and more...or a system that cuts down trees faster than they regrow.

The system you see in operation right now is the same system that has been in operation for centuries...

The compounding interest commercial banking system

The only difference is what the currencies are made out of...

The top owns all the money in circulation...and when the supply of gold and silver was utilized to its maximum potential...the owners of the money supply system changed the way it operated to keep it operational.

The top own the food distribution networks as well...So when they ran out of gold and silver to construct money out of to pay the labor they issued money constructed out of different materials...and said use that to buy bread...or die.

It's an absolute capitalist hierarchial food powered make work enterprise.

The top is the employer and all below are the bottom and the employees...

The top lives off the yield from the bottom.

A recession is the beginning of a deflation...or a transformation of a boom into a bust. It's up to consumers to reflate out of a deflation...If they can't because they are exhausted...

It's game over...there is nothing the Government can do to postpone the inevitable implosion for much longer.

A compounding interest commercial banking system can only inflate greater than previous inflation to maximum potential and then when maximum potential is reached...the system begins inflating less than previous inflation to maximum potential.

The deflation will continue until maximum potential is reached.

Basically from 1929 to 1944-46 was the inflate less than previous inflation phase that followed the last inflate greater than previous inflation phase 1919-1929

This boom is 6 times longer than the previous boom...1929-1933 was the only time in the last 100 years in the USA where there was any visible deflation.

A little deflation is like nerve gas to a compounding interest commercial banking system.

You need to pay a bill but the money supply has deflated to the point that you are a quarter short.

You will default.

Really go out and try to buy things and refuse to pay the full price...Say but I don't have that much money...You will not be able to buy anything...unless the supply of money you have increases somehow or the prices of the stuff you are buying drop.

That's what happens when consumers can no longer request the commercial banking system to manufacture the needed amount of new money to sustain the required inflation of the system.

You all want more and more and more...Where is this magic well of never ending fulfillment located?

It does not exist...Once the maximum potential of your demands for more and more and more is reached...

The mass delusion you all have deeply fallen in love with all these decades is shattered...

Basically when you attach interest to let's say Gold...the more Gold you need to service it year after year.

Let's say total supply of GOLD in the economy is 100 million ounces.

And the richest person has 10,000 ounces and keeps lending them out year after year at 10%

And passes on the "business" to his decendants and one day one of his decendants 97 years later is owed 103,535,780.16 ounces of gold from a supply of 100,000,000 ounces

Lets say that Gold mines produce 5% more a year

Then he would only OWN half the entire money supply and be renting it out after 97 years.

And that's just one person...imagine if all of you try to obtain yields...then everyone will be in debt to everyone else...

Imagine 10 Rich people doing the above...

Then it's 74 years to own half the money supply.

Well that process was done centuries ago and the owners of the money supply then did as they needed to sustain the rent payments...Fractional reserve banking was the solution...

Most don't know how a credit system actually functions...and that it's a compounding interest commercial banking system that sustains the modern technological version of the absolute capitalist hierachial food powered make work enterprise.

The compounding interest commercial banking system has been in operation for 600 years.

Without it...press the rewind button back to pre 19th century...or more.

But the double entry accounting technique that is key to the system was being used 1000 years ago...So go back that far to escape so called fractional reserve banking.

Autonomous absolute capitalist drones...Have reached their maximum potential to request commercial banks to manufacture the required amount of new money to service the continued existance of the previously requested money...Causing them to rapidly transform from assets into unfundable liabilities...

It's the consumer...the Consumers power this by requesting commercial banks to manufacture more new money...as soon as consumer consumption of real estate reached maximum potential in 2006 and began slowing revolving credit or credit card debt growth began to accelerate.

As the real estate sector topped and began heading down late 2007 the growth rate of the money supply began to rapidly decelerate.

The sub primes was the system scraping the bottom of the barrel searching for more yield to postpone the inevitable defeat.

Without those sub primes...money supply growth would have collapsed sooner...and this would have all been heading to the basement a year or so ago...

And it's game over...

Currently...Nothing really bad has happened...The downward plunge has not even started...all that you see happening is due to the yearly growth rate of the money supply dropping to 5.1% from 9.7%

Asia and the Middle East

Are already slowing down on the way to implosion...Just watch China and India go poof and Dubai go bye bye...When there is not enough US consumer inflation flooding the world to hide all the so called corruption in their systems and those idiots are saying effects are the cause...lol

Drop to your knees and pray for a miracle...Because soon the Just think positive ignore the negative religion is going to die in a fit of exquisite agony and the hyperinflationary messiah is going to be exposed as a false profit.

The number 1 consumer of Brazil's exports is the USA

The number 3 consumer of Argentina's exports is The USA

The number 1 consumer of Argentina exports is Brazil

Total trade between Argentina and Brazil is 22.7 Billion dollars...

It's pretty insignificant.

Reguardless...once the USA caves in US consumers will stop consuming Imports from the rest of the world...Brazil will cave in and Argentina will finish imploding to oblivion...

The USA is either the Number consumer of a countries imports or the number one consumer of their imports has the USA as their number one consumer.

Globally.

All these clowns have been crying for years about escape from the USA and none of them can because as soon as they begin...their economies crumble.

You either pull a North Korea or stfu.

Argentina is still alive because the top jumped in to to buy up the firesale...but when the top caves in...there will be no way to stop the cave in and Argentina will resume or basically finish off imploding to oblivion.

Like in the markets when the price collapses and then rallies...Argentina has just been rallying...

They are DOA...

Brazil is dependant upon the USA to consume its exports and Argentina is dependant upon Brazil.

Brazil goes poof...When the USA goes poof.

In 1944 the system was set up so that the USA was the demand and the rest of the world the supply and since then the world has become more and more dependant on the USA not less...

And it's too bad you can't deal with it but that's what was done back in 1944...and when the USA which is the demand of the global economy goes poof...the supply is toast.

Just like back in when the British consumer was the demand the British pound was the global trade medium of exchange...pre 1929.

Well it will be far worse...Because that bubble inflated for 10 years during the roaring 20's...this current one that you have no ability to comprehend is over 6 decades old...or the roaring 6 decades.

Just sit back and watch...not long at all now...

Russia?

Had the rest of the world to sustain it...or actually loot it/buy it up at firesale prices.

This time around...the top is going to cave in...there is going to be nothing to stop implosion to oblivion.

All the so called economic hijinx of the past 60 years were nothing...total jokes...minor occurrences.

yawn.

You all believe the Government or powers that be has/have some kind of magic powers...they don't of course and never did...

And you all have a front row seat for the revelation...

Imagine back in the old days when no one could see the hurricane coming and it looked just like any other storm...

And it just keeps getting worse and worse and worse...

That's exactly what you all (everyone on Earth) are in right now...

In the credit cycle consumers become exhausted and slow down and deflate into a recession on the way to implosion...Then they become desperate and speed up and reflate out...yay.

This exhaustion desperation cycle continues and each reflation out the consumers are in more debt than when they entered...

Eventually they maxout and no longer have an ability to reflate out then the next time they enter a recession...

They don't escape...

Thanks for showing up to planet Earth

All everyone has to do is cashout refinance and reflate out of this hole like last time...

Need a real estate sector that is not collapsing and rates on the 10 year treasury below 2.5% and..."massive volume"...but hard to get that volume when last recession the household debt to income ratio was 80% and now it's 120% and then factor in that since basically 2006 when Housing was topping and beginning to cave the credit card debt began increasing significantly faster meaning people have been making up alot of the difference using credit cards for almost 2 years now.

In 2007 US consumers were requesting commercial banks to manufacture on average 12 Billion dollars of new money/debt per day...

But by late 2007 and up until now the US consumer has slowed their requests for commercial banks to manufacture money...the daily rate of growth of the money supply/total debt has dropped by 42%...the most in 62 years...

That's kinda why you see all this stuff that needs 12 Billion a day to sustain inflation deflating now that only 6.99 Billion a day of new money/debt is being requested by consumers to be manufactured by commercial banks.

The Federal government BORROWS money from the money supply of the USA...By issuing Treasuries...

Money supply 51 Trillion...Public debt...lets say 9.5 Trillion...

Treasury sells 500 Billion dollars worth of treasuries into the market/money supply to borrow 500 billion of it...

Money supply 51 Trillion...Public debt...10 Trillion.

The money supply did not increase at all.

How is issuing 700 billion dollars of treasuries hyperinflationary?

Just since the start of the year the US economy is short 1.4 Trillion Dollars.

It's why banks are going bankrupt and Wall Street is tanking...

Consumers have since late 2007 slowed their requests for commercial banks to manufacture more new money basically by the greatest amount in 62 years.

Because they have maxed out and can no longer request commercial banks to manufacture the required amount of new money to service the continued existence of the previously requested money.

If production is not cut faster than demand drops...there is not going to be price inflation...

Everyone is in debt up to their eyeballs and will glut the market with firesaled inventory trying to get out/escape/avoid default.

It's consumers requesting commercial banks to manufacture new money that has been the cause of all the monetary inflation in the USA...For the past 64 years.

Basically for the USA's entire history...Except for the Greenbacks of the civil war.

The national debt is just the money the US Government has borrowed from the 51 Trillion dollar money supply of the USA but since the system in the USA is a credit system...the 51 Trillion dollars is also the total consumer debt currently outstanding.

In 2000 the money supply or total debt of the USA was 27.1 Trillion and the amount of the Public debt or the amount that the Government borrowed of the 27.1 Trillion was...5.7 Trillion or 21% of the money supply

from then to now....US consumers have requested the commercial banking system to manufacture another 23.9 Trillion dollars of new money or debt

While the US Government has borrowed another 4.4 Trillion of the money supply or total debt for a total public debt of 10.1 Trillion or only 19.8% of the money supply or total debt of 51 Trillion dollars

Now, the Treasury issues treasuries in the amount of 700 Billion

First off the commercial banking system is where all the money creation takes place...

Consumers request commercial banks to manufacture money...

Like let's say you want to buy a house but don't have $200,000...Well then if you are able to service a loan of $200,000 then the bank sucks $200,000 of future income foward for to you blow right now...

Poof the Money supply of the USA just increased by $200,000

The money supply of the USA is currently 51 Trillion Dollars.

The Treasury offers X amount dollars worth of treasuries in exchange for X amount dollars of the 51 Trillion dollar money supply of the USA.

If they need money.

But as far as I can tell the Treasury is exchanging Treasuries or perfoming debt for assets that have collapsed in price and are basically non performing debt.

So nothing much would happen except an increase of the public debt ultimately and the cost to service 700 billion at current yields is under $200 per worker per year.

But this so called bail out is not going to prevent the implosion from happening...at best postpone it a bit longer

The FED didnt keep rates artificially low...

Consumers did...

Consumers request commercial banks to manufacture money...that money then is blown into the economy and ultimately finds its way into the bond markets...

If the supply of bonds is growing slower than the consumers are requesting commercial banks to manufacture money...the Bonds will be bid up and yields will drop.

A cycle forms in all credit systems...desperate consumers cause a spike of liquidity to flow into bond markets which causes bonds to be bid up and yields down...but once consumers become exhausted the flow of liquidity slows and the bonds are bid down with yields rising.

The FED measures this and follows along...the consumers dictate the bond markets...

The FED's ability to engineer short term rates is almost non existent and its ability to engineer long term rates is limited.

There's a chart showing that the bond markets move before the FED does...due to the above mentioned desperation exhaustion wave.

I doubt these so called economists even look at relevant data...somewhere along the line somebody said...the FED sets rates...and he believed it and never ever in his life checked to see if it was true.

Because it's all a lie...

The problem is consumer exhaustion...

All the money in circulation minus the coinage of the USA or 51 Trillion dollars was created by consumers requesting commercial banks to manufacture it...

By creating an asset and a liability...

Let's say for a house that the buyer needs $200,000 for...well if the bank thinks the person can service it...they increase the money supply of the USA by $200,000

That's where money comes from...that's how it works.

And consumers have been due to the collapse of the real estate sector in the USA 2006 slowing their requests for commercial banks to manufacture more new money.

The daily growth rate of the money supply...or total debt went from 12 Billion dollars a day in late 2007 to 6.99 Billion a day currently.

A 42% drop in the rate of growth...the largest in 62 years.

The banks have an unlimted ability to manufacture more new money but US consumers have a limited ability to request the banks to manufacture it and service it.

You think the economy is based on banks lending to each other?

They are not lending "excess reserves" to each other because they know that the US consumer is maxed out.

The only lending they are talking about is overnight lending.

"In the United States, the federal funds rate is the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight"

"Federal funds are overnight borrowings by banks to maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve Banks to meet their reserve requirements and to clear financial transactions. Transactions in the federal funds market enable depository institutions with reserve balances in excess of reserve requirements to lend reserves to institutions with reserve deficiencies. These loans are usually made for 1 day only, i.e. "overnight." The interest rate at which these deals are done is called the federal funds rate."

It's overnight lending...between banks in the FEDERAL RESERVE SYSTEM.

There are 8,437 FDIC Insured Institutions

2,451 are commercial banks that are in the FEDERAL RESERVE system and are FEDERAL RESERVE MEMBER BANKS

Another 4,731 commercial banks...are not members of the FEDERAL RESERVE System.

826 savings associations that are not members of the FEDERAL RESERVE system

"A savings and loan association, also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage loans. The term is mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks."

419 savings banks...that are not members of teh FEDERAL RESERVE system.

11 insured U.S. branch of a foreign chartered institution...Not members of the FEDERAL RESERVE system

Of the 8,437 FDIC Insured Institutions operating in the USA only 29% are even in the FEDERAL RESERVE system as member banks.

All the largest commercial banks of course are member banks...

All the banks outside of the big money centers are not "jammed" up

They are not lending to each other because they all know consumers are exhausted...or NOT BORROWING.

Big money center banks basically borrow from the FED short term at wholesale rates and lend to Consumers long term at retail rates.

But if there are not enough consumers willing and able to sign on the dotted line for enough to make a profit.

Game over.

Again 10.1 trillion is just the public debt...The amount of the money supply the Federal Government has "borrowed"

All the money in circulation got there by consumers requesting commercial banks to manufacture it...so it's all debt.

An the money supply or total debt is 51 Trillion dollars...right...now.

The cost to pay the interest due on the 51 Trillion dollars is hidden in the cost of everything...

but since the public debt is borrowed from the money supply...technically the population owes 51 Trillion + the public debt.

Lets say the 51 Trillion was paid off...There would be no more money except the coinage left...

But the entire public debt would still exist. And there isn't Trillions of dollars worth of change...

That's why money is not made out of gold and silver anymore...Impossible to keep up with demand.

Best kind of money is worthless money...that way people are constantly trying to get rid of it...

Once every one starts saving it up...It doesn't circulate unless it has to...

Every country on Earth has the exact same set up...all their money supplies are debt and their public debts are borrowed by the Government from the money supply.

China, India...the EU..etc you name it...All in debt up to the eyeballs and totally oblivious...billions of oblivious drones that haven't the foggiest clue how the compounding interest commercial banking system operates.

Once the USA caves the entire global system will implode and mind boggling chaos will erupt in every country on Earth.

There are 154 million workers in the USA roughly and that works out to about 60.8 Trillion dollars of total debt the population is servicing day in a day out.

Or about $394,805 per worker.

Except the public debt is special...there is no real requirement to pay principal so it's just a small interest payment per year ultimately...of $3,200 or so per worker on 10 Trillion dollars at 5% and the current treasury rates are lower than 5%.

Consumers sustain the banks...

The problem right now is that consumers are exhausted and are either unwilling or unable to request the commercial banks to manufacture the required amount of new money to service the continued existence of the previously requested money.

That's the cause of the credit crunch.

The slaves have basically been slaved to the point that they are finished...

The mark to market problem is another case of an effect being sold to the oblivious masses as the cause.

The exhausted consumer is the cause of the mark to market problem.

False information basically causes mental damage...

The USA is just the brawn of the Global empire...the brains are in Europe...looking helpless and innocent.

The top maintains their position by giving the bottom what they want...Or at least what they think they want when you factor in all the anti-American social engineering that has been taking place outside the USA for decades and the high level that is currently evident inside the USA lately.

The top never ever planned to sustain this all...it was doomed to implode...so when you all destroy it...you will get what you want...At least you will think you are...

It's how social engineering/brainwashing works.

The Internet was created by DARPA...

The Defense Advanced Research Projects Agency.

Free speech?

First off you are singing like canaries...far easier to identify and locate potential threats when they foolishly think they are safe.

Second Rebroadcasting...mass social engineering each other.

The top controls everything...the top allowed the Interent...It's their tool...they handed it to you all...for free at first to get you all hooked then they started charging...

You all didn't create it.

Who taught you how to read?...do math?...write?

Think?

The top.

When are all you idiots going to stop the talking and start the walking...

Look in the mirror to find your greatest enemy.

GLOBAL SLAVERY CRISIS

"Billions of morons, poorly educated and conditioned to believe that the glory of the universe is best spent making $hit we don't need bought with money we don't have borrowed from a$$holes who own us all anyway.”

[Warning - graphic language!]