Wednesday, April 25, 2007
More Ramblings
"The great depression was caused by the collapse of the German carry trade...
Basically the winning powers had Germany on the run retreating back into Germany in late 1918.
At the start France crossed Germany's border first and was repulsed and then Germany invaded France...That was a big mistake...
"ARTICLE 235 The Versailles Treaty June 28, 1919
In order to enable the Allied and Associated Powers to proceed at once to the restoration of their industrial and economic life, pending the full determination of their claims, Germany shall pay in such installments and in such manner (whether in gold, commodities, ships, securities or otherwise) as the Reparation Commission may fix, during 1919, 1920 and the first four months Of 1921 , the equivalent of 20,000,000,000 gold marks."
2790 Gold marks equalled 2.2 Lb of pure gold.
15,770,609 Lb of Gold or 7885 short tons of gold or 229,935,483 oz of Gold...
Quite a bit of GOLD...Especially when the total above ground stock around that time was around 50,000 tons with around 25,000 tons monetary Gold world wide...
And Germany certainly did not have 7885 short tons of gold in 1919 1920 or 1921...It was broke after WW1
What to do then?
The British (Bank of England) basically told Germany to print marks to buy GOLD...From? The winning powers...
The Looting of Germany carry trade...Germany printed marks and then bought Gold then the amount of GOLD they owed dropped and the winning Powers still had GOLD and loads of marks...what to do with all those marks? send them home to roost buying raw materials and finished goods...
The marks flooded into the German commercial banking system allowing it to inflate the debt supply in Germany...The more GOLD Germany bought the more marks they had to print...Which caused the purchasing power to drop...It was quickly losing it's value...
But outside of Germany all the currencies were quickly gaining value...Basically German exports were getting constantly cheaper and cheaper...A free give away of German raw material and finished products basically...
This fueled the Roaring 20's until the mark was losing value so fast that it basically caused prices inside Germany to hyperinflate until it was impossible to account...The looting of Germany carry trade collapsed in 1924 after about 14 months of Hyperinflation of prices or a hyperdeflation of the value of the mark ...
side note...
Winston Churchill was Chancellor of the Exchequer (Treasury) of the United Kingdom from November 6, 1924 - June 4, 1929...
The collapse of the carry trade caused a hyperdeflationary implosion of the banking/monetary system in Germany and the shock wave spread out into the Global system and reached the USA by late 1926 and visibly manifested with the market crash October 21 1929...Since real estate began caving in first and the sell off there flowed into the Stock markets in search of yield inflating them from 1927 to 1929 in a massive mania...
The Great depression inside of the USA was caused by a collapse in debt inflation in the USA due to the implosion of the roaring 20's post world war 1 looting of Germany carry trade bubble..
It bankrupted the crown system which began to rapidly implode...It was stopped in 1933...
1933-1945 was the bankruptcy reorganization of the now 313 year old crown system...
And basically the system is going to resume imploding to oblivion since the implosion to oblivion was not prevented...Just postponed.
And there is nothing that can be done with gold or silver or with the monetary system to prevent the implosion since the implosion is the result of the system basically cutting down trees faster than they regrow to sustain itself...
Continue cutting down trees until you run out or stop cutting down trees which is the same as running out.
Doomed now or later...Die now or later...which is better?...Later of course because who wants to die now?
Once the march to doom with glee begins...It will continue until doom is reached.
There is no escape from the resolution of the free will choice...
Sure you can attempt to...but any escape you think is possible is just a figment of your discombobulated imaginations.
Your children will suffer the consequences of your choice or your children's children will...
Our ancestors made the choice that we are trying to escape the consequences of...
Prior to the 20th century...economic depressions were common...what the Austrians call the natural cleansing process...Their code word for Economic depression...
Unfortunately modern technological civilization...the thing you all are in is incompatible with the natural cleansing process.
in the olden days the 3 horse family could eat a horse to survive a natural cleansing process which was short and sharp...a year or two...
Currently the two car family can not eat a car to survive a natural cleansing process...
Neither could the people back in the 1930's...
So the natural cleansing process was stopped but more accurately postponed to a future date...
And the Austrian school says and I agree that the longer you postpone the natural cleansing process the greater in magnitude it will be when it can't be postponed any longer...
The great depression was so great because the natural cleansing process that should have happened after WW1 was postponed for 10 years...
The current postponement has lasted 60 years...
WW1 and WW2 were only wars of attrition...The underlying problem which lead to their outbreak was not solved...
The system itself is systemically flawed to inflate to maximum potential then implode to oblivion...
The implosion to oblivion and implementation of the new system has been postponed twice now...and the current system is weaker now than it ever has been in history...
Most of you are in no condition physically or mentally to survive a typical pre 20th century natural cleansing process which is not what you are all marching with glee towards...The postponement is going to produce a horror show that is currently beyond your abilities to comprehend...
Many billions are going to die...The so called Rich countries will all implode...
And this time around there are no accounting tricks left that are going to postpone the balancing of the books that have not been balanced in centuries any longer...
The Money supply has not been expanded in such a way in the USA since the Greenbacks of the Civil war...Or the Continentals of the so called Revolutionary war.
Currently US consumers are requesting the commercial banks to manufacture more new money using previously manufactured money as collateral backing the new money creation.
About 11 Billion [dollars] a day...around 1 Trillion every 90 days...with a total money supply that has grown from 450 Billion in 1944 to 44 Trillion currently.
Not a magic priniting press or its electronic equlivient.
Consumers...100's of millions buying now and paying later...Just putting it on the tab.
If you had to pay as you go...the volume of most sales would collapse...along with the division of labor...and the global economy.
You would be staring at a blank screen...The servers could not function...Unless you all are going to start working for free when the money supply shrinks down to what what is in circulation as hard currency...
Maybe at some point those who could implement a magic printing press scenario...might choose to...and keep the whole mess functional for a few more months or a year or so...
But ultimaltely like all inflations greater than previous inflations...they will reach maximum potential and implode.
We should just go back to the old Conservative chattel slavery system...Where you got what your master gave you and had no right to ask for more and more and more like you all do now in the Liberal indentured servant system...
The credit system of the USA is privately owned...You all just don't have access to enough to make you happy so you are crying about it...Those with enough access are not crying...They are laughing.
It's the same in any game...The losers always cry and the winners always laugh...
And again...any system you dream up and submit for approval from and for implementation by the rich people that will cause them to lose money and power...IS NOT GOING TO BE ACCEPTED.
No system that turns people rich in money and power into poor people has ever been accepted in all recorded history.
You planning on rising up the global Hierarchy and ruling it? Well the current rulers can see you coming long before you see the destroyers sent to annihilate you.
Allow me to take more of anothers power than I give and I care not who makes the rules of the game you are all playing because eventually I will suck the power from the hands of the many into the hands of the few or one.
[Cheryl-Lynné: "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild, 1790]
And then they who have the power will make the rules of the game you are all playing."
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1 comment:
"...those who could implement a magic printing press scenario...might choose to...and keep the whole mess functional for a few more months or a year or so..."
Yes...and exactly what has happened(!!)...amazing that the whole system hangs together still...but for how much longer...I wonder...I wonder...
GSJ
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