Wednesday, October 31, 2007
The Bottom Works for the Top
But what's the difference between private banks creating money when consumers request it to be created and the U.S. Government doing the same thing?
All that the US Government has done is to use the current banking system...Otherwise the U.S. Government would have to nationalize the banking system in the USA and operate it...that's all banking including the central bank like in the U.S.S.R...And reguardless who operates it...all it can do is inflate to maximum potential and implode...Like in the U.S.S.R.
Your remedy (So far)...Exchange a pile of IOU's for another pile of IOU's. The GOLD is Money remedy...Exchange a pile of IOU's for Gold and/or Silver...
The bottom creates all the money that the top receives...The bottom works for the top...According to you the employer creates the money that he has to then pay all the employees. The employees supply the employers with everything the employers have...
Sorry...the farmers feed you...you don't feed the farmers...
The chosen ones? Chosen by the top to take fall for it all...
Hard to believe that your choice to believe that the chosen ones are the top is the choice that the top ultimately wants you to choose...Keeps them out of sight out of mind...
Allow me to take more power from another than I give and I will concentrate the power from the hands of the many into the hands of the few or one...
And then they who have the power will make the rules...
As long as they can take more than they give...they will be employer and the rest of you will be employees...
Period end of story reguardless. And of course this current system you hate is about to blow up in your faces anyways...And whoever is the Government will tell you all how the new system will operate...
It will operate just like this one...Top sucks from the bottom...
Saturday, October 27, 2007
The Federal Reserve is a Symptom - Not The Disease
What is the difference between private credit and public credit?
And the so called sub prime mortgage crisis is not a cause...it's just an effect...The real estate bubble has been inflating for 36 years and the house sales boom has been going for 16 years...There was no commercial banking system in Rome...and yet it inflated to maximum potential and imploded...
Ultimately you have to abolish civilization in the end to get back what you have lost...Start over from square one...
Reguardless...Allow me to take more power from another than I give and eventually I will concentrate the power from the hands of the many into the hands of the few or one...And then they who have the power will make the rules...
Instead of power...put in Gold, money, food...etc.
Any system where anyone is allowed to take more than they give can be taken over and managed by those who have concentrated the required amount of power to accomplish the take over.
You need employment...I'll give you a job and keep you employed as long as you allow me to take more from you than I give back...You work for 8 hours a day 5 days a week supplying me with $20 an hour and I give you $9 an hour compensation...Imagine having 1000's of employees...
Where's the remedy for that? Where's the remedy that allows escape from the "I want to be a richman" tax.
There isn't...Or it would have been revealed in the previous 3 threads...
The "I want to be a richman" tax is a cause...Everything else is an effect or symptom...And treating symptoms does not cure anything...The FEDERAL RESERVE is a symptom...not the disease.
But as they say...Ignorance is bliss...but it is not the cure.
The bottom will always support the top...Certainly you don't think that 20,000 Generals are going to be commanded to run into a hail of lead by a handful of Privates or that one employer will work for minimum wage and supply $100,000/year incomes to 100 employees...Or that the top of the pyramid will support the bottom...
I have yet to see the remedy...
And it really has nothing to do with the creation out of thin air of money...
I need 100 silver coins...But I don't have any...I'm the bottom...So I ask the top for a loan...The top says sure I'll help you out friend...as long as you agree to give me back more silver coins than I give you...
Taking more than you give is the cause...Inflation of demand is the effect.
Any increase in demand within a system spreads out into the whole system...If the demand by the top for lets say more silver coins than currently exist then it's up to the silver mines to supply that demand and if the demand from the top is greater than the supply the silver mines are producing...There will be no way that the bottom can supply the top with what it is demanding...The current system is the remedy to that effect of the cause.
But the current system is also just an effect...It solves the problem of the maximum potential of the previous system but does not solve the problem of it's own maximum potential.
Unfortunately there is no way to stop a cause by treating effects...In this case you either stop taking more than you give or continue until the bottom is sucked dry and there is nothing left to take...
Once your system depends upon cutting trees down faster than they regrow...It's doomed...
That is what the top do...demand trees to be cut down faster and faster...and hire more and more from the bottom to cut cut cut...to pay the "I want to be a richman" tax
Abolish everything except the demand by the top for more than they give and you will be accomplishing zero...
The universe will continue to function as it's always functioned regardless of how you attempt to manipulate it...It's governed by LAW that can not be made or broken...It's not governed by rules that can be made or broken...
It's governed by Truth that can not be made or broken...It's not governed by lies that can be made or broken...
Ignorance of the law excuses no man: Not that all men know the law, but because 'tis an excuse every man will plead, and no man can tell how to refute him.
-John Selden
English antiquarian & jurist (1584 - 1654)
I'll clean it up a bit...
Ignorance of truth excuses no man: Not that all men know truth, but because it is an excuse every man will plead, and no man can tell how to refute him.
Imperialism sounds malevolent...that's why it was changed to Globalism...which is nice sounding especially with the attached benevolent sales pitch...
Remedy sounds nice too especially with the attached benevolent sales pitch...
There is no prudent way to take more than you give...but there are methods to sustain it...until of course the bottom is sucked dry supporting the top...then it's game over...
What is Marc Faber saying? That he's sick of waiting around to die and wants to die as quickly as possible and it's all these bailouts keeping him alive?
If the bottom stopped giving the top more (bailout) than the top gives back to the bottom...Marc Faber would have to find a new source of income...
Meticulously planned to obtain a profit...What do you expect people to do?
How is an employer going to sustain an enterprise if they pay their employees more than the employees produce?
And once the employees can't or refuse to produce enough...then they transform from assets into liabilities...
from friends into enemies...Liabilities that need to be liquidated...enemies that need to be annhiliated...
It's assets and liabilities...As soon as you become a liability you will be liquidated...one way or the other...
There is no escape...Your ability to obtain enough food and water to sustain your existance is an asset...If you can not obtain enough food and water to sustain your existance then that is a liability...
Ignorance is a liability...Ignorance is not an asset...
And the price bubble within the 36 year old price bubble appears to be inflating less than previous inflation (deflating)
Rough estimate...at the height...the above chart is per month...in 2005 1.283 million houses were sold in the USA at a median price of around $233,000
Let's say the down payment on average was 5% or $11,650 so $221,350 needed to be manufactured to buy each house sold...Or around 284 Billion dollars of new money...
Now the house sales are on track by the end of the year to be around 891,000 with a median price of around the same since the average median price has not really collapsed...So the new money entering the system is 197 Billion dollars...about a 30% drop in the amount of new money flooding into the US economy from real estate...
The above is only houses...It does not include apartments/condos or industrial/commercial real estate...But money from the sale of homes flooding into the economy supports industrial/commercial real estate expansion...
Labels:
Hypertiger
Thursday, October 25, 2007
Shorting
Lets see...I know that house prices are going to collapse...so I sell your house...You are oblivious that I have sold your house...and when house prices collapse I buy your house back...the difference between what I sold your house for and what I bought it back for is the profit...
That is short selling...
Shorting a stock...basically the same is done...The brokerages hold all the stock certificates that you supposedly have bought and own...I know that the stocks that you have bought and supposedly own are going to go down in value significantly...So I tell your broker to sell your stocks that you think you own...and then the price drops and I buy them all back...you are oblivious that this is going on...
The brokerages themselves sell stocks you supposedly own and obtain profits like this...you get nothing for the use by the brokerage of your stocks that you bought and supposedly own...
Same thing is done in commodities and currency markets when you don't take delivery...all the silver or gold in the vault or dollars yen and euro's in the ledgers that you supposedly have bought and own is sold to other tards that are buying it and think they own it...
That's short selling...in case you were unaware or needed a reminder.
As far as I can tell shorting stock is a legal activity so until it's made illegal it's moral. But rules of a game that turn something that is wrong into something that is right does not make something that is wrong right...I don't short stocks or anything...I buy things and then sell things...I don't sell things that I don't own.
But of course according to the rules of the game you are allowed to sell something that does not belong to you for fun and profit. You are selling something that someone else has bought and supposedly owns...no rabbit hole...sorry. But again according to the rules of the free market game...You are allowed to sell something that does not belong to you for fun and profit...
The only people that are crying about the expose of short selling are those who obtain fun and profit from it...
The top does all the buying and selling...the bottom speculates...when the end comes and maximum potential inflation is reached...the top will short sell everything you think you own to oblivion...and then buy it all back up again when you all have to sell it to survive...
Because like all things the "sheeple" are unaware of...if they were aware...they would demand a stop be put to it...But that would make a whole pile of people unhappy since their fun and profits would stop...
Long gold and silver and short the dollar.
Unless you are buying gold and silver and taking delivery and taking US dollars from your pocket and selling them into into the global currency market for another currency and taking delivery of it...You are actually buying gold and silver that belongs to someone else and selling dollars that belong to someone else...Ultimately that someone else is the top...Who do all the buying and selling...
And when the end comes and maximum potential inflation is reached...the top will short sell everything you think you own to oblivion...and then buy it all back up again when you have to sell it to survive...DUH.
The bottom speculates...you are attempting to out speculate each other at the bottom...for fun and profit...The top does not speculate...they are buying when the bottom is selling and selling when the bottom is buying...
The markets are not markets...sure they are called that...But If they were called greater fool games which is what they are...then people would be aware of what was going on...
So it's good that the fools and the fools that think they are not fools are oblivious...or they would demand a stop be put to it...
But as long as the game players are oblivious that the game they are playing is unwinnable they will continue playing, believing they are winning and going to win until they arrive at the logical conclusion...the logical conclusion of any game is game over...
And then the game players find out that they were losers the instant they choose to play...since the top wins the game the top created by default.
And when the end comes and maximum potential inflation is reached...the top will short sell everything you think you own to oblivion...and then buy it all back up again when you all have to sell it to survive when you all default...DUH.
The top then invites the game players to play again...for fun and profit.
Ultimately it's only immoral if you lose the game...as long as you winning the game it's moral...
So until game over arrives the winners including those that think they are winning will laugh and the losers will cry...
Of course those that think they are winning and telling the losers to go to hell and laughing will lose when game over arrives and then bawl about it then...
Been like this for 1000's of years...
I phone a broker up and say I would like to short 1000 shares of xyz company...The brokerages hold all the stock certificates that everyone has bought unless you demand delivery and hold them yourself...lets say you have bought 1000 shares of xyz company...Well the broker sells them because I'm going to eventually buy them back...Like just after the shares in xyz company drop in price significantly...
Lets say the broker sold all of your shares at $10 per share...and then lets say the price starts dropping and you decide to sell them and obtain $8...
But I buy them all for $8 per share and gain $2000 from the sale of your shares and you lose $2000 from the sale of your shares...
That's shorting...
There's of course margin...I do have to have collateral backing up the sale of your stock...usually 50%...meaning I have collateral equal to the shares being sold...
Like a whole pile of other stocks backing the short sale of your stocks...But all those stocks I supposedly own could easily be short sold into the market too...by another speculator...another game player...another gambler...
another crumb seeker.
And as long as the system continues to inflate by the required amount the game keeps going...But when the system reaches maximum potential inflation the top short sell everything everyone thinks they own...to oblivion...
You've heard of market crashes...that's what happens when all the game players run out of money to blow playing the game for fun and profit and the top is forced to end it...by selling everything they own and have lent to the game players to play with...
Of course on paper you appear to own stuff...but those that actually have it can do as they please with it...you left it in their care...they are responsible for it...They can sell as soon as you have bought it and then buy it back when you demand to sell it...
The top will sell everything you think you own long before you decide it's a good idea to...
The top does all the buying and selling...the bottom speculates...or places bets...and the betting causes the prices of all the stuff the top owns to rise or drop and the top sells and buys accordingly...
They also have other resources they have used their profits to construct like stock market infomercials/CNBC to encourage the speculators to buy what they are selling and sell what they are buying...
But as long as the game players are oblivious that the game they are playing is unwinnable they will continue playing beliving they are winning and going to win until they arrive at the logical conclusion...the logical conclusion of any game is game over...
And then the game players find out that they were losers the instant they choose to play...since the top wins the game the top created by default.
Ultimately it's only immoral if you lose the game...as long as you are winning the game it's moral...
So until game over arrives the winners including those that think they are winning will laugh and the losers will cry...
Of course those that think they are winning and telling the losers to go to hell and laughing will lose when game over arrives and then bawl about it then...
We was robbed..sob whine...boo hoo...etc...but no one has a gun to your head forcing you to play the game...
I think I'm winning therefore I am...
I just don't play the game so there is no possibility of losing...the top does not play the game either...all the speculators do...the game players...the gamblers...
Just as the top is forced to fire/lay you off you when you can no longer produce more than you cost to employ...the top lives off the bottom...And again...The only people that are crying about the expose of short selling are those who obtain fun and profit from it...
I don't do it because I know it's wrong...Covering? Yes it all looks good on paper until the collateral backing the loan of other people's stock is short sold to oblivion...
During the inflationary phase it's he who gains the most that wins...during the deflationary period it's he who loses the least that wins...There has not been a deflationary period in the USA in 74 years...temporary prosperity...generally lasted for a few years prior to 1900...the roaring 20's was the second longest temporary prosperity...This one is easily 6 decades long...
Moral and Immoral? Please...The days are long gone when people were capable of figuring that out...
Immoral
"Not in conformity with accepted principles of right and wrong behavior"
I know that selling something that does not belong to me for fun and profit is moral.
I know that selling something that does not belong to me for fun and profit is immoral.
Which is true (right) and which is false (wrong)?
But if I choose the one I don't want to that means I'm Immoral...so I have to choose the other one...because Immorality is bad and I want to be good...
That's why it's moral...It just has to be...period end of story.
Labels:
Hypertiger
Tuesday, October 23, 2007
The Logical Conclusion...
The USA only produces about 180 Thousand ounces of silver a day. The US dollar as defined by the 1792 coinarge act of 371 grains of pure silver would produce about 232,727 dollars of coinage...
Enough to sustain the rich getting richer or the delusional lifestyles of the wannbe rich and famous you all currently take for granted for about 1.8 seconds.
The USA produces about 22 Thousand ounces of gold a day. Enough to produce 449,782 Dollars as defined in the 1900 Gold Standard act.
Enough to sustain the rich getting richer or the delusional lifestyles of the wannabe rich and famous you all currently take for granted for about 3.5 seconds.
Based on the current demand for money by the population of the USA which is currently around 11 billion dollars a day...
Human Beings have the power to reproduce faster than they cease to exist...
It's why we are all here...
What you continue to ignore due to the just think positive ignore the negative programing you all received and accepted...is maximum potential...It's negative...It's ignored.
The top know about maximum potential...the remedy is to hire the survivors to build the next system when the current system reaches maximum potential and implodes...
The top does not tell those below about the inevitable implosion of the system that requires constant inflation greater than previous inflation to sustain it's existence...
You are continually in search of something you will never find because the logical conclusion is negative and is due to your programing...ignored...
A reasonable assumption is then substituted to fill the empty space where the logical conclusion is.
The top used Gold and silver...copper and bronze...etc as the content of the money supply they created and own...until they utilized those materials to their maximum potential...
Then to postpone the implosion of the system...they changed the content...
The only desire that LIFE can not escape is the desire to exist as long as possible...It's the only desire of a flower...The top is mortal...and has the same desire as all LIFE.
They will not stop making and breaking the rules of the system they created and own until they have to break LAW to sustain the system...then LAW will break the rules...
The remedy for 1000's of years has been...To hire the survivors to build the next system when the current system reaches maximum potential and implodes...
The US public debt is just the portion of the money supply that the US Federal Government has borrowed...
Over the past couple centuries US consumers have requested the commercial banking system within the USA to manufacture 46 Trillion dollars of debt/money...The total money supply...In the same period of time the US Federal government has Borrowed 9 Trillion dollars of it...The US Government has borrowed about 20% of the total money supply...
To finance WW II the US Government borrowed around 50% of the total money supply...
Reguardless...US consumers have requested the commercial banks to manufacture 46 Trillion dollars of debt which they all owe back with interest...It just so happens to also be the circulating money supply...and consumers are currently requesting the commercial banks to manufacture around 11 billion dollars a day or 4 Trillion dollars of debt a year to keep the game you are all playing going...
Back to the remedy...
Either the system will be manipulated to stop it from continuing to inflate which will lead to a premature implosion...Or it will be sustained to its maximum potential and then implode...It's a sooner or later scenario...
The only way to prevent inflation greater than previous inflation from turning into inflation less than previous inflation is by sustaining inflation greater than previous inflation...
Key problem is maximum potential...Inflation greater than previous inflation can only be sustained to maximum potential...Then at that point Inflation greater than previous inflation transforms into inflation less than previous inflation to maximum potential...
So there is no way to sustain inflation greater than previous inflation forever...you can only sustain inflation greater than previous inflation to maximum potential...and when the maximum potential of inflation greater than previous inflation is reached...Inflation greater than previous inflation to maximum potential transforms into Inflation less than previous inflation to maximum potential...
But according to you...there is a remedy...A way to sustain inflation greater than previous inflation past maximum potential to further postpone the implosion to oblivion of the USA...
Since to sustain the game you are currently playing that is what you need...or inflation greater than previous inflation will reach maximum potential...or the logical conclusion...and the logical conclusion of any game is game over.
If you don't or can't figure out a way to sustain the inflation greater than previous inflation of the system (game) past maximum potential forever...it will reach maximum potential and then implode to oblivion...
Like the last couple of threads...It will abolish itself...Human Beings have no power to make or break LAW...All that Human Beings have the power to do is make and break rules and call them LAW. But if the rules attempt to break LAW then LAW will break the rules...
Sure you can break the speed limit rules...But there is a maximum potential...and once reached...there is no way to get past it...unless you slow down, stop and construct another system capable of surpassing the maximum potential that the current system can't...
The current system has surpassed the maximum potentials of the previous systems...but it won't surpass it's maximum potential...
All that this or any system constructed in the 6000+ years of recorded history of Civilizations can do is inflate greater than previous inflation to maximum potential...then implode to oblivion...
Prior to this system was the Venice system which imploded to oblivion in 1345 and prior to that was the Roman system which imploded in the 5th century...
The survivors of the Roman implosion were hired to build the Venice system and the survivors of the Venice implosion were hired to construct the current system...
It has taken centuries to inflate to this point...the implosion that follows the reaching of maximum potential takes a fraction of the time.
The system is not designed to slow down and stop...but when it reaches maximum potential...it is forced to slow down and stop...
"But if the rules attempt to break LAW then LAW will break the rules"
The rule is that It can never stop...unfortunately that is an attempt to break LAW.
The top only has one tax that they apply to the bottom...The "I want to be rich tax"
All the other so called taxes support that tax...
You work for the top producing 3 dollars an hour...The top then subtracts their income of a dollar and the "I want to be rich tax" of one dollar and then pays you what is left over...a dollar...
So all you have to do is walk up to the nearest rich person and tell them what they are doing is wrong and that you refuse to support them...
At which point you transform from an asset into a liability and are liquidated and replaced with an asset...
Ok now...this remedy has some way to allow employers to pay you more than you produce for your employers?
As far as I can tell...In the 6000+ years of recorded history of civilization...Employers take more as a whole than they give back to their individual employees...by adding the "I want to be rich tax" to the income the employees generate for the employer.
Other than becoming an employer and taxing your employees...I don't know of any way for an employee to escape the "I want to be rich tax" other than to quit being an employee...
And if everyone quit working for the top how would you survive...there are billions below you in the hierarchy supporting your position in the hierarchy.
What if the farmers decided that producing 1000's of times more food than they need to sustain their existance to pay the "I want to be well fed tax" applied to the income they generate for you was unfair and decided to stop doing that and only produced enough to sustain their existance...You would be in trouble...Certainly you would have to spend far less time posting on Internet message boards and more time and effort into obtaining enough food to sustain your existance...
The sheeple you mention...
Inflation greater than previous inflation to maximum potential is followed by inflation less than previous inflation to maximum potential when the maximum potential of inflation greater than previous inflation to maximum potential is reached...
The top rides the wave...
One line drawn by a program using the same variables as the line drawn by the US consumer since 1944 inflating the money supply from 450 billion to 44 Trillion dollars over 6 decades by requesting commercial banks to manufcature more and more money to sustain their existance...the constant is the compounding interest equation...
The employees supply the top and then the top supplies the bottom...with less than the top takes in...the remainder is then reinvested into (lent to) the bottom to increase the amount that the top recieves...It compounds over time...
It's the result of everyone in a civilization attempting to escape working by living off of everyone else...a very simple operation to lend out your savings to desperate people but demand more back in return...But there is a consequence to chooing to demand more back then you give...Eventually the employers suck the employees dry...and the whole enterprise collapses...The civilization reaches maximum potential and begins cannibalizing itself and then collapses and ultimately can continue if not stopped to an implosion...
1929-1933 was a collapse...that was stopped by changing the rules of the game and then from 1933-1945 was a bankruptcy reorgainzation of the entire global system...the survivors of the bankruptcy reorganization were utilized by the top to rebuild...
The same will happen again...once the below debt inflationary bubble reaches maximum potential and pops...but this time around I don't think it will be stopped like last time...It will continue past a collapse and transform into an implosion to oblivion.
The top then hire the survivors to build the next one...
Labels:
Hypertiger
Monday, October 22, 2007
United States Notes
You are saying there are two pieces of paper...both look similar...One is a Federal Reserve note...the other is a United states note...Both decreed (fiat or by decree) to be legal tender...but according to you one of them...the United States note is also Lawful money...
Ok remedy...
The above conversion of your Federal Reserve notes into United States notes...Not Dollars...IOU's...convert IOU's issued by one source into IOU's issued from another...
Then there is the GOLD is money remedy...Convert your Federal Reserve notes into gold or silver coinage...A very simple operation...visit your local coin dealer...No need to jump through hoops in court or play any other games...
You get a coin that has face value like the notes above and the content of Silver or Gold...unlike the above notes which are paper...
If the face value of the coin fails you then you have the content...On the above notes...If the face value fails you...you are left with content which is paper coated with ink...
Which remedy is better?
I choose the coins constructed out of silver and gold...that's the best remedy.
Coins constructed out of lesser metals are even superior to paper and more useful...
So again I still don't see how your so called remedy is better than the one that already exists...
To attempt to turn people away from the current remedy towards your remedy means that you have something to gain by doing that...
And while I know gold by itself is not money...Gold and silver certainly make better money than United States notes since the vast majority of civilizations used silver and gold as money for 1000's of years...I can find zero evidence that United states notes were used as money by the vast majority of the pre existing civilizations...
As far as I can tell...United States notes were created out of thin air sometime prior to 1900...
"The establishment of the Bureau of Engraving and Printing can be traced as far back as 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 bank note companies."
United States notes printed up by private banknote companies...
So what you are saying is that to escape a pile of IOU's from a printing press you just exchange them for a pile of IOU's from a printing press...
So far after multiple threads...That's where we still are...
Or you could do like they do over at Gold is Money...convert your Federal reserve notes into Gold and/or silver...
I support the gold is money remedy...It's a proven method...a proven remedy.
and it's simple...
Step One...go to your nearest coin shop...
Step Two...say...hey...see those coins over there Issued by the US Government?...I would like to exchange these Federal Reserve Notes for them...
Ok says the coin dealer...
Step Three...Get your coins and say...Cya, thanks...then go home...
But that's too much fooling around...your method is more simple than that and superior...Right?
It's just that our minds have been conquered and you are having a tough time attempting to punch holes through our thick heads so that your light can penetrate so that we all say...holy cow...I see the light...remedy.
So far you say exchanging one piece of paper for another is remedy...
That's it...You think that is a remedy...I know it is not...That is all I'm pointing out...
Dialogue? About what?
"So there you have it. That is what happens whenever a bank wants to get out of the Federal Reserve system. Just redeem your notes in lawful money - by definition, US notes shall be lawful money. Not FRNs."
United States Code
§ 5103. Legal tender
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.
Nothing in there about United states notes...That most likely falls under currency.
"The establishment of the Bureau of Engraving and Printing can be traced as far back as 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 bank note companies."
It's now a department within the treasury system...And they print the FEDERAL RESERVE Notes...
Now you are saying that all that has to be done is that the US Government either nationalize the FEDERAL RESERVE system or create a new central banking system from scratch and instead of printing Federal Reserve Notes...print United states notes...
There problem solved.
Labels:
Hypertiger
Sunday, October 21, 2007
The Indentured Servant System
We didn't create anything...A group of people calling themselves "We the people" created the Government...
And the top does not control...they manage...the system they own. The top is also invisible...If you choose to become a threat to the top they will see you coming long before you see the destroyers sent to eliminate the threat...
The bankers know how the banking system operates...The elected or appointed officials of the administrative component of the Absolute capitalist hierarchial food powered make work enterprise have no idea how to operate the accounting system...
US notes are the same as FEDERAL Reserve notes...It's just that the US Government did not create a banking system...They used the pre existing banking system...
Abolish it all and you still need the same banking system to sustain the system as you know it...
And all that a banking system can do is inflate to maximum potential and implode...so abolishing it is a waste of time since it will inevitably inflate greater than previous inflation to maximum potential and then begin inflating less than previous inflation to maximum potential...or abolish itself...
Currently the system you know very little about is in the process of reaching maximum potential inflation greater than previous inflation and about to transform into inflating less than previous inflation to maximum potential.
Or game over...
All the cherished delusions you currently cherish will be shattered when the game you are playing reaches it's logical conclusion. The only remedy is to identify your delusions and instead of cherishing them...shatter them yourself...or just continue as you are until you are forced to when the system your delusions depend upon for support implodes.
And the new game will be the old game...
I have zero income...I have not paid income tax in years...You only know of me because I have chosen to be visible. That is how you all get caught...you all don't just desire to be seen and heard...you want to be worshiped...
It's why the top installs puppets in the administrative component of the Absolute capitalist hierarchial food powered make work enterprise (the so called Government)...so they can take the fall when the time comes...
When all your cherished delusions are inevitably shattered...
Who taught you to read...write...do math...the top...they can easily choose not to at any time. Even though you know now know how to read write and do math...you can easily choose to squander those abilities supporting and sustaining the construction of cherished delusions.
I'm still waiting around for you to produce the remedy you claim exists...
Remedy for and from what?
The reflation requires plenty of consumers with an ability to reflate...in 2000-2001 the household debt to income ratio was 80%...in 1971 it was 55%...
Now it's 110%...before 100% consumers are forced to request commercial banks to manufacture more and more new money...after 100% consumers are forced to request less and less new money to be manufactured by commercial banks...
The primary driver of the last reflation was cash out refininacing...or a large portion of the equity in real estate built up from the early 1990's to 2000.
But this time around real estate is collapsing and consumers are maxed out...Central banks have a very limited ability to monetize assets by buying them...since they need buyers willing and able to buy them for a higher price after they have bought them...
The whole system after 6 decades of inflation greater than previous inflation to maximum potential is about to reach maximum potential and then begin inflating less than previous inflation to maximum potential...and since the system is not designed to operate with inflation less than previous inflation...it will implode to oblivion...
All the money in circulation was lent into circulation by the top centuries ago...but silver and gold are in limited supply...so a way had to be found to continue the circulation beyond the limits of the gold and silver mines...The current system.
Allow me to take more power than I give and I will eventually concentrate the power from the hands of the many into the hands of the few or one...and then they who have the power will make the rules...
The top created the hard currency system...silver and gold coins...and owned them all...now the bottom needs money to pay all their bills...ultimately to the top...and when the bottom does not have enough money they can borrow money from someone that has a lot...the top...since the top employs the bottom to lets say produce 2 dollars and is paid 1 dollar as compenstaion...
If your employer were to pay you one dollar for producing one dollar...your employer would have less than you...they would have no way to pay their bills or buy food...
You all pay the top to keep you busy making them rich in power and money...stop that and they will become poor in power and money...
But the top pays you all less than you pay them to supply them with all the money and power...and if you all stop supplying them then they can not supply you with all the money and power you need to survive...
Back in the chattel slavery days all the top paid you was enough to keep you alive and productive...much like what you pay farm animals currently to produce what you need.
If you don't like the current indentured servant system...then you all can go back to the chattel slavery system...the good old days you talk about...but not the history you know...the Hollywoood version...the hidden history...the actual history you don't know about...the history that the just think positive ignore the negative religion causes you all to ignore.
You also could go to an area on Earth that is far away from civilization and live out your existence on Earth free from it...just keep running when it gets close...
Thursday, October 18, 2007
A not seen in living memory event...
[Charts referenced are not available]
Disclaimer* If you believe in the Curiosity that killed the cat then don't go any further run for your life... If you think you can handle it then step right up...
If you don't change the operation of the economy It does not matter if you are left or right you will always be dead wrong in the end...
It doesn't matter if you are a dictator or an elected representative those who control the money/debt supply are your true rulers and masters...
Borrow all they want, print all they want but consumer debt is the fuel of the commercial banking system the back bone of the US economy… The government has to figure out away to pay off all the debt back down to zero then bump it back up double… The deficit gamble is the game they have been playing all along… Everything that can be done has been done except dump trucks full of cash plopped on street corners…
1971 was the start of the “Bernanke” printing press game… It is nothing new, the deficit gamble? It was also started in 1971… The New Economy? NASDAQ 1971… This is just another sign that the maximum potential for debt inflation has been reached… Walls of money? Walls of debt is more like it and compound interest is the mortar…
They are gone, kaput, finished… By the time this reaches the climax they will be herding people into pits of burning diesel… I’ve explained numerous times how the fractional reserve system works… Not good enough... and not enough pictures I guess…
Why did Nixon let this happen? Because they told him at the time that under this system the FED has an invention called the “printing press” and we can just print cash or bonds and exchange them for whatever we need like oil or loyalty… But won’t that lead to massive deficits? Don’t worry we have a plan it’s called the Deficit Gamble we can just keep off loading the payment into the future 'indefinitely'… Sounds great!!!!
Nixon is dead… so I guess he won’t be around to explain his actions or see what the end game is going to look like…
All the history created by and all the achievements of the United States prior to 1974 “needed” 1 trillion dollars to accomplish or provide a stable functioning economy… The United States survived on an economy of a Trillion dollars for 198 years…
Then just 7 years later by 1981 it cost 2 Trillion. Then 4 years later in 1985 it cost 3 Trillion. 5 more years and it was 1990 and the cost to exist jumped to 4 Trillion dollars, but now we have a slight problem…
I’m not going to get into the reasons why the great depression of 1990 started other than to say that debt backed (Fiat) Fractional reserve banking caused it and if it was allowed to continue it would have been game over and Dr. Ravi Batra would have been able to say I told you so… But how did we escape certain doom then? I don’t know why Dr. Ravi Batra thought at the time that it was “impossible” to drop interest rates to “REFLATE/Refinance the credit bubble”, maybe I should read his book which I found in a garbage can a few years back… There can be wars and oil shocks but as long as you can drop interest rates that is all that matters… Debt backed (Fiat) fractional reserve banking lives for one thing and one thing only... exponential debt inflation, that’s it, that’s all that matters… The compound interest stream from CONSUMER CREDIT is the food that banks feast on… if it stops for any reason the banks starve to death…
Back to the problem: how to get consumer credit (Debt) growing again… Just open up the FED book to page 1 and do like all the other times... drop interest rates to reflate (printing press trick), encourage greater consumer credit debt inflation than debt deflation, and refinance (Deficit Gamble or off loading the payment into the future 'indefinitely') to make payments lower… the destiny of consumer credit debt inflation hinged on the refinancing and construction of new real estate “INDEFINITELY” The fate of the world economy became dependant on the construction and refinancing of real estate in the U.S. to provide the necessary exponential debt growth to sustain the world and the U.S. FOREVER…
Fact#1 all the interest rate cuts that I have studied in the context of the debt backed (Fiat) fractional reserve system since 1971 are in response to the impending collapse of CONSUMER CREDIT… Fact #2 Is that once high interest rate debt inflation ended in the 90’s and real estate became the main driving force of exponential CONSUMER CREDIT creation all the cuts were implemented to sustain the rise of real estate INDEFINITELY…
The Federal funds rate was basically lowered from 10% in 89 to 3% in 93 then up to 6% by 95 as the reflation/refinancing worked its magic. Then the real estate market started to soften (First dark purple line, middle right, on chart #1) so rates were lowered from 6% in 95 to 4.63% in 1999 and now the amount of CONSUMER CREDIT in the system had literally exploded like an atomic bomb and every sector of the economy and stock market was in full fledged raging growth and the growth in the economy/CONSUMER DEBT pile from 1993 to 1999 had in fact almost equaled the entire growth in CONSUMER DEBT since the United States was created or what took 217 years to accomplish was now done in 6 years… But it wasn’t over yet….
By the year 2000 the Federal funds rate was back up to 6.54% and the real estate market began to collapse again (Second dark purple line, top right, on chart #1) so it was time to lower rates again and again and again… until the Federal funds rate stood at 1.24% and real estate took off again before the end of 2000. During this time Debt deflation in the form of a stock market crash, the NASDAQ primarily, showed up signaling that the “New Economy (Started in 1971 also)” based on the “printing press trick” and the “deficit gamble” was not able to support the necessary exponential CONSUMER CREDIT debt inflation to support never ending or “indefinite growth” the result? An estimated 7 trillion dollar wipe out which by the way was almost equal to the amount of CONSUMER CREDIT created from 1993 to 1999… But real estate is where the real money is and that is shooting to the moon and by the time 2003 arrived CONSUMER CREDIT was at 17 Trillion dollars… so what took 217 years to create by 1993 = 7 Trillion dollars of CONSUMER CREDIT, Just 9 years later 10 Trillion dollars more was added or 70% using the “printing press trick” and the “Deficit gamble”.
Something else showed up in 2003 also… Just like in 1990, visible CONSUMER CREDIT debt deflation or the beginning of financial doomsday… now depending on where you get your info, economagic’s numbers show the consumer debt deflation while the FED’s own numbers read flat, but the smoking gun #2 is found on chart # 1… Notice how the expansion of M3 after 1974 by a trillion is a smaller box? And then the next one from 81 to 85 is smaller? That is the effect of exponential debt inflation or reflation… In order for that to be carried on “INDEFINITELY” each trillion dollar box has to be smaller then the last one… When they get bigger it means that DEBT creation is slowing and if something is not done about it then the boxes will get longer and then the growth will turn down and keep going down until the maximum potential is reached or economic doomsday…
The only tool in the tool box of debt backed (Fiat) fractional reserve banking to work on this problem is the interest rate switch, first you raise interest rates to combat inflation then you lower interest rates to combat deflation… Simple. From the looks of Chart #1 the U.S. has been combating CONSUMER debt deflation since around 1981 and almost lost the battle in the 90’s… But by the last quarter of 1995 it appears that the battle had been won and the boxes were once again getting small again… “Real small” But in order to accomplish that feat the FEDERAL FUNDS rate had to be dropped from it’s high of 19.08% in 1980 to 2.92% in 1993 and to maintain the boxes getting continually smaller INDEFINITELY the rate was further dropped to 1.24%, by the time 2003 (Today) rolled around…
We are once again at the doorstep of debt deflation, but when we started combating it in 1980 we had 1,908 basis points and now we find ourselves at the point that we have only 124 left!!!!!!
Do you see a problem Yet? Do you understand the “true” gravity of the situation? What do you think the federal government of the UNITED STATES OF AMERICA is going to do with their budget deficits? Buy basis points from the basis point fairy? It is past the point of no return right now... If you look at the top of chart #1 you will notice that from 2002 to 2003 did not equal 1 trillion like 2001 to 2002 which means the boxes are getting bigger, which means it’s time to drop interest rates to 0… But that would collapse the commercial banking system… and maybe buy a few more milliseconds at most and raising rates would collapse the printing press, deficit gamble tricks which depend on the "symbiotic" relationship between CONSUMER CREDIT expansion and real estate…
Q and A
Stage 1 of Debt backed (Fiat) fractional reserve banking is inflation of debt
Why did rates rise prior to 1980?
To combat the price inflation that was caused by the switch from the old gold based economy to the debt backed “new economy”
But once that was accomplished the economic growth of the “New U.S. economy” was based on the systematic lowering of interest rates to prevent debt deflation…
Debt deflation?
Yes the commercial debt backed (Fiat) fractional reserved banks profit from exponential consumer debt inflation, if debt inflation slows or stops debt deflation takes over and the banks go “bank”rupt and the economy collapses…
How do you prevent or stop debt deflation?
With debt inflation…If you find your self in a debt deflationary scenario you lower interest rates to encourage consumer credit (Debt) to be created faster than the debt deflation that exists and resume debt inflation to its maximum potential…
Maximum potential?
When you run out of basis points from your supply of basis points or once consumers have consumed all that they can consume it is game over…
Game over?
The point at which you can not inflate debt any longer and debt deflation becomes unstoppable…
Well then what?
Stage 2 of debt backed (Fiat) fractional reserve banking starts and if you can not reflate the system by lowering interest rates any more or the consumers have consumed all that they can consume then it will run to it’s maximum potential and stage 3 of debt backed fractional reserve banking will take place…
What’s that?
Stage 3 of debt backed (Fiat) fractional reserve banking is “Bank”ruptcy of the commercial banks and collapse of the economy…
[Capitalism has] nothing to do with capital? Then why the heck is it called Capitalism?
To confuse you...
Religion not Capitalistic? sure it is...
There's nothing capitalist about religions in states where citizenship and/or rights are denied to people who do not follow the official religion. It's coerced membership just like socialism is coerced distribution of goods and services.
Do not worry my son, I will (capitalize on your ignorance to) show you the true path...
Where does money come from?
Printshops, mints, and central bank computers. That’s where paper and coin currency comes from… central bank computers are used for accounting...
What is money?
Paper, round metal, and electrons.
Money is debt created out of thin air by banks with compound interest attached when an individual, business, organization, or Government borrows or creates debt.
You get paychecks right? Where do they come from?
They come from the revenue generated by the company I have freely chosen to work for.
Where does the revenue come from? If money is debt and has to be borrowed to create it then revenue is debt also…
In order for the economic system to function enough debt has to be created to equal the paychecks which you receive… If everyone stopped borrowing tomorrow the pay checks would have to shrink or begin to disappear… Since the compound interest is not created when debt is created the only way to pay it back is to shrink the debt supply or borrow more...
If you shrink the debt supply paychecks disappear or shrink and if you borrow more your paychecks lose purchasing power...
The US is at the cliff edge of a decline that will be worse than the Great Depression currently... in the next 11-15 months the freefall will start for real... What has been happening in the US from 2000-Now [2003] is child's play compared to what is coming...
Money is debt created out of thin air by banks with compound interest attached at the request of consumers...
The prices you pay when you spend money or circulate debt are set by the amount of debt creation...
Consumer debt inflation which is the effect of creating new debt in greater quantities then old debt leads to price inflation...
Consumer debt deflation which is the effect of creating new debt in smaller quantities then old debt leads to price deflation...
In a society that uses a debt backed system as a money supply previously created debt is the operating expense and new debt is the profit
Or Previously created debt is current income and newly created debt is future income...
The ability for consumers to create new debt is based on current income...
Debt backing debt but under such a system the consumer will consume their ability to consume...
You can only use a certain % of your current income which is previously created debt to service the cost of new debt creation which is future income...
Once the consumers have reached their maximum potential to service greater amounts of new debt in relation to previously created debt then their future income has to drop or interest rates have to drop...
Once interest rates drop to near zero there is no way to expand the debt supply in greater quantities so income has to drop...a self feeding death spiral...
What the US is in the process of doing... rates have been systematically dropped in the US for 23 years to prevent a hyperdeflationary implosion...
On average rates have dropped 83 basis points/year to expand the money supply which is debt...there are 100 basis points left...
The game is almost over... Rates can't drop past zero. Prime and mortgage rates can not go low enough to produce the required volume of consumer debt consumption to "sustain" exponential debt inflation which is the fuel that powers economic growth in the US...
The key word is "sustain" the current "recovery" talk is just slick marketing...It can't be sustained for more than a few months...
Interest rates must keep dropping significantly to sustain it... Mortgage rates are rising in the US and are having a serious impact on the refinancing industry... which was in blow off mode since around March...
Soon the massive amounts of liquidity (Debt) which was being created will start drying up... just another nail in the coffin...
The system from 1945-71 was called the Bretton Woods Gold backed fractional reserve banking system and when the US ran out of gold to back the system they decided to switch to a debt backed system called The Floating exchange rate debt backed by debt fractional reserve system.
The system that you people thought was going to collapse doesn't exist anymore because it was replaced before it could cause a devastating collapse...But the current system which you know nothing about and refuse to want to know anything about...Is in the collapse phase right now and there is no new system that can be put in place to prevent the ugly realities which you think can not happen from happening...
Gut wrenching reality is coming whether you think so or not... You can't escape but you can prepare but if you don't, then too bad I guess?
Don't worry you'll see how wrong you are...
Deflation would destroy the US...it is destroying the US...
The only way to maintain a stable or expanding money supply which is debt is with debt inflation...consumers signing on the dotted line...
You have all been fooled your entire lives...no amount of positive thinking or denial will save you from witnessing a not seen in living memory event... Not a human alive on the planet has seen such an event or is able to comprehend it... A run of the mill hyperdeflationary implosion of debt which vaporizes a debt backed by debt system...
I've studied the Floating exchange rate debt backed by debt fractional reserve system for 10 years... It wasn't until last year that I fully comprehended how the system worked to be able to back up my claims.
The above mentioned system is the cause and when you open your eyes in the morning that is the effect...
At what point in your education did you hear the words Fractional reserve banking?
It is the system that provides you with the current fantasy which you have mistaken for reality...
Paranoia? You are the one that is paranoid because if what I am saying is true (It is unfortunately) then the very foundation of your just think positive religion is about to blow away in the wind...
None of you prople can even begin to comprehend what I'm talking about...
6-10 months max left in the good old days, maybe less...
Don't worry you don't have a hope in hell of countering my arguments...
It has taken decades to get to this point of weakness it will take decades to get back here again...
I know more than bankers and economists... because they know how the system works...I comprehend how it works...
I have a supreme understanding of the subject...
Well Hyper why don't make money from your knowledge?
The system needs a mass of ignorant victims to function...
If "they" taught the basic system mechanics in school no sane person would submit to such a system...
As soon as you comprehend how the system works, and I've laid it out numerous times in my posts but you just don't seem to get it...
The basic mechanics...once again
Fractional reserve banking has 3 stages
Stage 1 inflation of debt and the destruction of savings
Stage 2 deflation of debt and the destruction of equity
Stage 3 Bankruptcy of the banks and collapse of the economy
We are at the tail end of stage 1 in the last gasp of the system...
Stage 2 should begin to be evident in the next 6-10 months...
All social, political and economic realities are fueled by consumer debt creation... and unfortunatly consumers have a finite ability to consume debt... the system has reached maxout...
Don't worry, unless you die real soon you have a front row seat...to the greatest financial collapse in modern history, maybe history itself.
It will make the Great Depression look like a joke...
Hard to believe... better start clicking those ruby slippers together double time...because your time is running out...big time.
Labels:
Hypertiger
Wednesday, October 17, 2007
Civilization = Buy Now Pay Later
Yes US consumers request commercial banks to loan them their future income...
That's ultimately what a commercial bank does...it's function is to take your income from the future and give it to you in the present...
Otherwise there would be no money to lend to consumers because there is none in the present...It's why consumers go to banks and request a loan...they don't have the money now...
Look around...Everything you see was and is constructed by and maintained with money that came from the future...
It's a solution the top came up with...Buy now pay later...generations later.
The common people and the rulers didn't give a rats ass who was going to suffer the consequences...as long as it wasn't them...Just like you all do today.
All of us just happened to pop into existance at the right time to witness the consequences...to suffer them...to take the fall...etc...
Every civilization in recorded history everywhere on Earth has operated just as this current one does...inflation greater than previous inflation to maximum potential and then inflation less than previous inflation to maximum potential...then inflation greater previous inflation again...it's a wave...
The ruins or monuments to ignorance coat the surface of the Earth...
Every Major European city is built on top of Roman ruins...
The purpose of the Police and military is to protect the top from the bottom...
To protect cause from consequence...
The easiest prey of the hunter gatherer is the farmer and the simplest operation is the protection scheme...
You are either with them or against them...
All money is decreed money...fiat...
The top says this is money...Or else...period end of story....
You Farmer are on the Land owned by the LORD of the land and will pay tribute to the LORD of 1 Gold coin a year...
Where do I get this GOLD coin?
You can take one short ton of grain to the grainery of the LORD and there you will be given a GOLD coin for it and then you can give the gold coin to the servant of the LORD...
What if I refuse?
Then the LORD will drive you from the Land that the LORD is the LORD of...
There you go an abundant supply of free food to power your wildest hopes and dreams...Lies and delusions...
22 And the LORD said, Behold! The man has become as one of Us, to know good and evil. And now, lest he put forth his hand and also take from the Tree of Life, and eat, and live forever,
23 the LORD sent him out of the garden of Eden to till the ground out of which he was taken.
24 And He drove the man out. And He lodged the cherubs at the east of the Garden of Eden, and the flaming sword whirling around to guard the way of the Tree of Life.
Well what is done with all that Food the tillers of the LORD's land give the LORD as Tribute?
It powers the Absolute capitalist Hierarchial food powered make work enterprise...
The city state...Or Civilization...The thing you all popped out of thin air into...
Presidents of the USA or any so called leaders are assets of the top...But if and when they become a liability...they are liquidated...
The bottom did not dream any of this up...The top did and does...
There is nothing stopping you from constructing your own civilization...except the one that already exists.
Labels:
Hypertiger
Monday, October 15, 2007
GDP
The GDP needs to be combined with other numbers...Like total credit market debt...what the FEDERAL RESERVE calls the money supply...It's 46 Trillion...
So for around every 3.35 US Dollars a consumer requests a commercial bank to manufacture around 1 Dollar of GDP is created...
It takes 3.35 Dollars to create 1 Dollar to pay back the 3 dollars...Or just service the debt...
At 5% interest that's around 2.3 Trillion/year...
Basically every country has been operating like this for decades...It's not just the USA.
Basically it's impossible to ever pay the debt off...
Some people say...They will just inflate out...Germany tried that in 1920 and by 1945 They were a smoldering ruin pile...
And everyone in the world has been trying to inflate out for 6 decades now...In the USA consumers are requesting around 11 Billion dollars of debt a day or around 4 Trillion dollars of new debt a year attempting to inflate out of the 46 Trillion Dollars of old debt they owe...
Sometime next year it will hit 50 Trillion dollars...It's impossible to get out of debt by getting in debt...
The only surefire way to get out of debt is to not get in debt to begin with...But once in...the only way is to default...
The system is set up so that the top wins by default...Sure you all are servicing the debt now but there will come a time when you all can't even do that...then you all will be forced to default...
The top knows this and have always known this...The bottom are oblivious of this...
It's very simple...If you all learned in school that you all were inevitably doomed to default...You all would demand the system to be changed...So you are not taught about it.
Neo: "There are only two possible explanations, either no one told me, or no one knows."
Architect: "Precisely."
But you all are taught how to read, write and do math...and you can also choose to figure out how the system actually operates...
Are you just a cog in a machine that is doomed to break down or are you somthing more...You are no more or less than the builders of the machine.
They figured it out 1000's of years ago...actually discovered it...You can too...
The current Japanese Yen started out in 1955 as a coin with a diameter of 20mm, Thickness of 1.2 mm and a weight of 1g constructed out of 100% aluminium and fixed under Bretton Woods from 1949 to 1971 at 360 Yen to 1 U.S. Dollar...from 1971 to now the Yen has gained strength. the Yen is 117 to 1 U.S. Dollar.
Japan's public debt to GDP is 176.2% of GDP and their Discount rate is 0.5%
The US public debt to GDP is 64.7% of GDP and the US Discount rate is 5.25%
Japan is in far worse shape than the USA but their currency has gained strength...
"The Yen was introduced by the Meiji government in 1870 as a system resembling those in Europe. The Yen replaced the complex monetary system of the Edo period, based on the mon. The New Currency Act of 1871 stipulated the adoption of the decimal accounting system of yen. The yen was legally defined as 0.78 troy ounces (24.26 g) of pure silver"
From the 1792 coinage act...
"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."
Or 0.72 Troy ounces of pure silver = 1 Dollar.
But then..."The Gold Standard Act of the United States was passed in 1900 (ratified on March 14) and established gold as the only standard for redeeming paper money, stopping bimetallism (which had allowed silver in exchange for gold). It was signed by President William McKinley in accordance to the beliefs of the Republican Political Party."
That's where the US Dollar as defined in 1792 ceased to exist...The Bank of England was the main promoter of the so called GOLD standard...And backed the Gold Republicans against the Silver Democrats in 1896 and 1900 to get the above passed.
It's the FIX in the LONDON FIX...
"LONDON - The financial district known here simply as The City is a hotbed of the loyal Order of the Masons, who have a penchant for strange rituals. But Masonry has nothing to do with an odd little ceremony performed twice every day in an office at N.M. Rothschild & Sons Ltd.
Five men talk on their phones for 10 minutes or so, and then lower tiny Union Jacks sitting on their desks. And that's it. The London gold fixings is complete. It takes place at 10:30 a.m. and 3 p.m., like clockwork. The same ceremony has been performed the same way, in the same place, and with mostly the same firms participating since the first gold fixing was enacted at Rothschild in St. Swithin's Lane on Friday, Sept. 12th, 1919.
Anachronistic or not, it works to give the market a snapshot of the spot price of gold at a particular moment in time.
When the five representatives met at Rothschild on that first Friday in 1919, gold was fixed at four pounds, 18 shillings and nine pence- about USD$ 7.50 in today's terms. The quoted currency was changed to USD$'s in 1968, but very little else has changed in the intervening 77 years.
The participants at the first fixing were from Rothschild, which chaired the meeting and every subsequent one, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins.
International gold trading is an around-the-clock business, with the London Market overlapping those of the Far East in the morning and New York in the afternoon. London bullion traders can make deals from about 7:15 a.m. to 7:15 p.m. But twice a day the representatives meet face to face at Rothschild to trade gold for physical settlement. The dealing unit is a Good Delivery Bar, which must weigh about 400 ounces and conform to specifications set down by the London Bullion Market.
The chairman suggests an opening price, which is reported by the representatives by phone to their dealing rooms. The chairman then asks who wants to buy and who wants to sell and how many 400-ounce bars they wish to trade. If the quantities fail to balance at the opening price, the chairman suggests a higher, or lower one, until a balance is achieved. Then he announces the price to be fixed.
The dealing rooms can alter instructions to their representatives at any time during the proceedings and that's where the tiny Union Jacks come in. The representative signals he is changing his declared interest by raising his flag. The chairman can't declare the price fixed unless all the flags are down. All this sounds very quaint and out of touch with computer-driven markets, but up to 20 tones of gold a day are thought to be traded through the fixing."
Labels:
Hypertiger
Saturday, October 13, 2007
Population Deflation
The dollars are constantly circulating back to the USA now...With the US dollar as the Global trade medium of exchange...The dollars are sent out into the global system and roost in the global system...They inflate the entire world...The strength or weakness of all the other currencies are tied to the US dollar.
All the other currencies of the world are manufactured the same way that the US Dollar is...The only difference between them and the US dollar is that they are not the Global trade medium of exchange...
It's not just the USA that is inflating it's debt/money supply...every country is doing the same thing and has been doing the same thing for decades...all their charts are shooting up like rockets as well.
It's not just the USA that has gotten into more debt than can ever possibily be repaid...Everyone on Earth basically has followed the same path.
With the USA as the top economic zone that all the other are dependant upon...When the USA reaches maximum potential inflation and then implodes...It will be just like when Germany reached maximum potential in 1923 and imploded...the implosion spread out into the rest of the world and they all imploded...the USA by 1929 into 1933...then followed by the 1933-1945 bankruptcy reorganization of the global system...Jolly old England as the demand and the British pound stirling as the Global trade medium of exchange was officially changed in 1944 at Bretton Woods to be the USA as demand and the US dollar as the global trade medium of exchange...
The Debt inflationary self delusional bubble that has been inflated the past 6 decades is 8-10 times more massive than the one formed during the roaring 20's looting of Germany carry trade.
And it's almost ready to pop.
Horrorshow? Yes...It's like that bridge collapse a few weeks ago...everyone was driving along minding their own business...then all of a sudden...the bridge collapsed...
It will be just like that...bla bla bla...babble babble babble...OH MY GOD!...KERBOOM...tinkle tinkle tinkle.
In the inflationary phase...It's he who aquires the most that wins...in the deflationary phase it's he who loses the least that wins...any way you slice and dice it...the top will be forced to mas liquidate the bottom...since assets (all of you) during the inflationary phase transform into Unfundable liabilities in the deflationary phase.
The Census is done every 10 years in the USA...in between the population is estimated...The only time the US population showed a visible sign that it stopped growing...was from the period 1930-1940...when mass liquidations were occuring...
Around 8 million or so people ceased to exist to be counted around that time...And the So called Great depression was a sunday school picnic compared to what the USA along with the rest of the world is heading into this time around.
Labels:
Hypertiger
Friday, October 12, 2007
Ron Paul
As we get closer to the implosion the concensus is that some sort of transitional period will be needed between this current system and the new one...as we get closer the various supporters have been comparing the sales pitch to what has actually been sold to them and they are begining to realize that the sales pitch was just a fantasy...and informing the top that they are going to withdraw support...
Now they are looking for a way to escape the horrorshow that is about to unfold.
Prospects that are promoting a transitional period are getting coverage...
Are getting backing from the top...
If he was a real threat...he would have been eliminated a long time ago...
That's how you identify threats to the top...They are liquidated...
If they are not...then they have value.
The bottom pays the top who then pay the bottom...if the bottom refuses to pay the top then the bottom will not get paid...Since everything the top has was given to them by the bottom.
The top does not consider Ron Paul to be a threat...Because nothing he so far has proposed is a Threat to the top...But he is a threat to those below the top...The bottom...
The employees above him can see his rise...to replace them...They will be the ones who will attempt to stop him...the employees below are pushing him up...If they fail to expend the effort required the employees above will not have to expend much effort trying to stop him...Ron Paul will go nowhere.
Top sucks from the bottom...
Ron paul is talking...people are listening...and agreeing...That is control...
The others are talking...people are listening...but not agreeing...that is a recipe for chaos...
The top wants to and needs to maintain control...But its democracy...The bottom competes and the top crowns the winner.
While the top does not want chaos...If that's what the bottom chooses...the top will crown it.
The top manages...whatever the bottom supplies to the top...Ron paul is offering control...the others are offering chaos...The top will pick control over chaos...
When the system implodes...all the things Ron Paul is saying he's going to get rid offwill be bankrupted anyways...The old self destructing system has to be replaced with a new one...
It is far easier to manage something under control...The top is where they are because they hate working...
You all love to work compared to the top...If the bottom gives the top chaos...That will upset the top and the only way to transform chaos into order is to feed it as much as possible so that it burns itself out...
That will be ugly...
It takes courage...Ron paul is not superman...you all are going to have to step up and do some work...
More work than you currently are...
Ultimately if you all choose to continue to be lazy when it's time to work...those you are fighting against will win by default...Like they have been for decades.
"That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
If the top thought that was a threat...It would never have survived to this day...
It's not up to the top to provide for the bottom...It's up to the bottom to provide for the top...
For decades the bottom has been talking the talk...but not walking the walk...Well if you all fail to walk the walk...then your talk will be revealed to be lies you kept telling yourselves...or delusions...
Are you all serious...Because play time is almost over.
Labels:
Hypertiger
Wednesday, October 10, 2007
The price of silver
A huge short position is a bet that silver is going to drop in price.
What if it doesn't? then the shorters will have to cover or buy...and all the leveraged longs make a killing.
From what I can tell the demand for silver is very high due to industrial use while supplies are very low...so there is massive hedging taking place
Those that need silver are leveraging both ways...and they are playing with those who want silver...
Manipulation? Of course...It's a free market...not a fixed market where the price is fixed and can't be manipulated except by the Government which in Fixed markets fixes the price. Like the 1792 Coinage act where the US Government attempted to fix the price of Silver and Gold and copper with...
"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."
437.5 grains in a ounce...
So a dollar was 84% of an ounce of pure silver and 84% of an ounce of pure silver was one dollar.
In 1792 the price of silver per ounce was $1.293 in London but fixed in the USA by the coinage act at $1.178 per ounce.
That's just the retail price...still had to get it across the ocean/pay to construct coins...etc. and most of the early US coins produced were from Spanish milled dollars that the Government taxed out of circulation since at the time the USA did not have any significant silver mining operations...
Ultimately when the content of a coin becomes worth more than it's face value...it stops circulating...It's more profitable to sell the content than to spend it.
Around 1964 is where the content of silver coins in the USA began to become significantly worth more than the face value...Where the US Government was unable to fix the price of silver any longer...and all the silver coinage was removed and replaced with coinage constructed out of cheaper materials.
In 1932 silver hit $0.254 an ounce in London...The face value was worth more than the content...
Sure the demand for money in 1932 was high but the global system reached maximum potential and collapsed in 1929...the money supply growth rates around the world collapsed and there was very little money around to bid up the price of silver which was still being produced as if there was the same growth rate and demand.
Labels:
Hypertiger
Tuesday, October 09, 2007
Misc Posts...
The Bank of England is not a branch of the Bank of China...The Bank of China is a Branch of the Bank of England...
China would have to conquer the world and then set up the next system...Like what the Bank of England did with Asia and the rest of the world after the bankruptcy reorganization of the world 1933-1945 from the 1929-1933 collapse of the Global system when it reached maximum potential inflation.
They built up Japan to liquidate China...And built up the USA to liquidate Japan...then put China into stasis until it was needed to absorb inflation...Japan being the first to absorb inflation...
"One of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years."
Now that's some serious Hyperinflation...That will grind to a stop and reverse when the USA along with the rest of the world implodes...
Oh ya I forgot...the rest of the world is just dying to be conquered and ruled by the Chinese...
You are either Chinese or your mind has been blown out...
Prior to the bankruptcy reorganization of the world...The City of London ruled...after...They still ruled...they are running this soap opera as well...writing the script...and after the next reorganization...They will rule as well...
Not China...It's already all over but the Crying...Europe has been doing this to China for centuries...it works and continues to work...because History is written by the victors...
Do not worry about your beard when you are about to lose your head...Sun Tzu.
Hey China...look at Japan...hahahaha they are leaving you in the dust...Hey if you want to enjoy that...then lets make a deal...
Oopsie...epic fail...decided to worry about their beard instead of their head.
Such an intoxicating trap...
Yes in Zimbabwe dollars an ounce of Gold is $22,416,817
Zimbabwe's inflation tops 1,000%
Friday, 12 May 2006
"A loaf of bread now costs between Z$80,000 - Z$110,000 (79 US cents - $1.08) up from about Z$7,500 last year, when the price was controlled by the government."
A carton of orange juice costs about Z$500,000 and a kilo of beef up to Z$1m.
"Business quotations are not valid for more than two days," an office manager in Harare told the BBC News website."
Zimbabwe teachers demand better wages
September 11 2007 at 01:16AM
"Last month, President Robert Mugabe decreed a wage freeze in the country, two months after his government ordered sweeping price cuts of at least 50 percent in a bid to fight inflation of more than 7 600 percent.
The main Zimbabwe Congress of Trade Unions (ZCTU) has called for a two-day strike on September 19-20 to protest the wage freeze. The ZCTU wants a minimum wage linked to the current poverty datum line.
The teachers' union head, Zhou, said the schools sit-in would continue until September 17 in order to gauge the government's response to their demands for a basic salary of ZIM$15-million a month.
Most teachers presently earn less than ZIM$3-million a month, said Zhou. This would not be enough to buy 10 litres of scarce fuel at this week's black market rates, he said.
Even the highest paid teacher earns well below the poverty line of ZIM$8.2-million, he noted."
Won't be long...once the prices are rising faster than they can be accounted for the economy will implode to oblivion.
Any gold or silver they did have was spent years ago at the start surviving and since Zimbabwe is a net importer...any gold or silver that entered circulation...circulated out of Zimbabwe and is not coming back.
Your current incomes support your rainy day stashes...once your income is cut or ceases to exist...your rainy day stashes will shrink rapidly if you attempt to continue to sustain your standard of living beyond what is possible...and when it begins to rain...It will rain for years.
Labels:
Hypertiger
Monday, October 08, 2007
China is financing nothing...
It's a case where you will have to see it...You can't seem to imagine it because due to an incomplete comprehension of how the system works you can't construct it in your mind and speed it up to see what happens...
US consumer slows then stops...the rest of the world slows then stops...You can of course attempt to convince me otherwise but will fail...
I don't have to wait and see what happens...I'm not a speculator...I already know whats going to happen...because it's happened over and over again for 1000's of years...
Inflation greater than previous inflation to maximum potential...and then when the maximum potential is reached...Inflation greater than previous inflation transforms into inflation less than previous inflation to maximum potential...
What you all are trying to convince me to believe is that inflation greater than previous inflation to maximum potential follows inflation greater than previous inflation to maximum potential when the maximum potential of inflation greater than previous inflation is reached...
It's a sure sign of the just think positive ignore the negative religion at work...
It's why nothing ever is done to address the problem...Because you all ignore it...Until of course it becomes impossible to ignore any longer...
When the implosion shows up...
As for Financing more US war...That just gives Congress a reason to request the treasury to issue more treasuries...To increase the supply...when it was needed in 2003 to stop the implosion of interest rates...
China buys Treasuries...to help keep rates as stable as possible so that US consumers can continue to request commercial banks to manufacture money in an orderly manner...
China is not financing more US war...The US consumer is financing China...India...Financing the world...
But unfortunately...The USA consumer is becoming exhausted after 6 decades of financing the inflation of the world...soon they will collapse...and the authors along with Sinclair and you all will be introduced to Inflation less than previous inflation...
China is financing...nothing...US consumers requested the creation of the US dollars that China buys treasuries with...The US consumer is financing the USA and the Chinese workers in the factories get jobs and consumer goods subsidized by US consumers out of the deal...And the Chinese communist party gets to hold on to power since the population is intoxicated...and the People's army has a place to sell AK's and ammo...the virtuous circle of global finance...
That is close to reaching it's logical conclusion...like 1929-1933..with a bankruptcy reorganization 1933 to 1945.
But this time around the debt inflationary bubble that has been created is 60 years old and easily 8 to 10 times the size...
There are no eastern or western financial systems...there is just a Global financial system...
I know what is going to happen...The Global system will inflate greater than previous inflation to maximum potential and then when maximum potential is reached it will then begin inflating less than previous inflation to maximum potential...
Like all systems have been doing...Basically forever.
And the USA is the number one Engine of inflation on Earth...There is no back up engine...Once the USA along with the rest of the world inflates less than previous inflation to maximum potential...a new engine can then begin inflating the global system greater than previously to maximum potential...again.
That's the key problem...You all seem to ignore the deflationary (inflation less than previous inflation to maximum potential) period following the inflationary (inflation greater than previous inflation to maximum potential) period...Sure inflation follows inflation...after deflation...
Think of a rocket heading for a mountain...and just before it hits the second stage goes off causing it to accelerate faster...into the mountain.
That's the hyperinflation part...But even without the second stage firing the rocket is still going to sizzle into the mountain...
The impenetrable barrier of maximum potential...
The Chinese, the Americans, the Europeans, or anyone has no magical powers to penetrate it...
Other than in their wildest dreams...which is what the article mostly is...wishful thinking...
Labels:
Hypertiger
Subscribe to:
Posts (Atom)