Friday, January 25, 2008

Thanks For Showing Up To Planet Earth Sucker...


Step one Get over the shock...

Step two Reduce the cost of existence to as low as you can

Step three Get out of and avoid long term debt...If you have alot of equity in Real estate then it is up to you if you want to sell...A motorhome might come in handy...

The key is time...Now you have it, the above is not radical...When the main event takes place...There will only be enough time to panic...for 100's of Millions of people...They will not have time to get over the shock...reduce their cost of existence or get out of long term debt...

Silver and Gold coins will be money...Even cash will be if it exists in people's minds as money...

When a debt backed by debt system implodes...it basically moves in reverse rapidly...

Debt inflation supports price...deflation of purchasing power...

The last hyperdeflationary implosion of debt happened in 1929 after the collapse of 16 years of debt inflation...This time we are at 45+ years...

Debt is money money is debt...Monetary expansion is inflationary Printing cash is one way...Requesting a bank to create debt out of thin air is another way...Debt inflation leads to price inflation...Debt deflation leads to price deflation...

Why is a house worth $200,000? because it is bid up...Debt deflation contracts the money supply which is composed of debt...When the debt supply shrinks then prices will have to drop...

Equity in debt inflated assets vaporises rapidly...and since it is a system based on the leveraging of leverage...if the worth of the leverage drops the amount of debt that can be created drops also...

It feeds on itself faster and faster...Until your mortgage is worth $200,000 and your house is worth $20,000... You need to pay $20,000 to pay your car off but it is worth only $1,000...The debt supply has shrunk to the point that there is only $1,000 being created/ month to pay your $3,000/ month salary...You either take a drastic pay cut or are flushed down the toilet...

And if you can't get your hands on enough income to make your debt service payments you have to default... to eat, you starve to heat your house, you freeze to buy electricity, you are in the dark...

Or you think they will just print cash and mail it to you because you are special or something? Or just hand it out on street corners? But you would have to exempt farmers because they have to slave in the fields producing food for you to consume with your printing press money free give away...

Inflation has rotted everyone's brain...It is hard to imagine a world without debt inflation...we are hopelessly dependant on it for our existence...

You would have to talk to someone in their 80's to 90's to find out what a deflationary reality is like...and that one was a minor event compared to what we are headed towards...

See that Germany trick? All these people saying they will inflate out are nuts...There is no way to inflate out...It is over very quick. In Germany the Government had the power to inflate out of what it owed by printing Marks to buy gold...which it owed to the winning powers after WW1...

In the US it is the public that owes...they have no power to inflate out other than borrowing until they have borrowed as much as they can...Maybe they will lift the counterfeiting laws and everyone can inkjet themselves out of debt?

Even if some kind of hyperinflationary scheme were to be put into successful operation it would only last a handful of months...

In Germany when they turned the presses off the whole system hyperdeflated...The middle class was wiped out...massive starvation and brutality followed...

The top who was in the position to convert their surplus marks (Profits) into gold marks as soon as they got them bought up the victims at pathetic fire sale discounts when the whole thing collapsed...

Like I said we have been in a self-delusional debt inflationary bubble for 45+ years... The US is the top of the debt inflationary engine which the World is dependant on...The US accounts for 30% of total debt inflationary production...Japan is dependant on the US and accounts for 15% of world debt production...next is Germany which is dependant on the US and Japan and accounts for 7.5% of world debt production...

Total is 52.5%... The next 12 Countries which are dependeant on the US Japan Germany combo account for 29% The next 115 countries all account for less than 1% apiece...total is 18.5%

Why is the US so rich? Because it is at the top of the Global ponzi scheme fueled by debt inflation Top sucks from the bottom...Sucking the world dry...Debt must keep inflating in the required amounts or the system will implode...the Debt inflationary potential of the US itself is unmatched by any single country or combination or countries on the Planet...

Which is totally impossible...Unfortunately it is 100% possible

Don't worry Hyper We have a printing press and can inflate out? That is what the US has been doing for 45+ years now inflating out...we inflated out of the total debt we owed in 1964 of 1 Trillion to 35 Trillion now...A true success story...

The Economy is fueled by debt inflation...period...Take it away and the economy runs out of gas...It is that simple...Every recession is just a minor slowing of debt inflationary potential...

Here is the nature of the flaw...what comes after inflation? more inflation...

wrong...Deflation is what comes after the system reaches it's maximum potential to "inflate out" The FED dropped short rates from 1900 basis points to 100 basis points since 82 to support the creation of the required amount of debt inflation to overpower debt deflationary forces to prevent implosion...All the FED has done for 45 years is postpone the inevitable...Implosion...Nothing less and nothing more...

The only times a printing press is needed in a debt backed by debt system is...

When a previous physical paper note wears out and needs to be replaced...

or

When the demand for physical paper notes is greater then the supply in bank vaults...

That is it...

Money supply is expanded by consumers requesting commercial banks to lend to them...

Have you all done your Patriotic duty and maxed yourself out? Spread the word tell your friends and family to borrow and spend to the maximum extent we are on the doorstep of economic utopia just a little more should do the trick...the fate of civilization is depending on you...If you can borrow and spend but don't you are an anti Capitalist anti American traitor...What is wrong with you?

Oh I get it you are waiting for printing press salvation...They will use a printing press to print money to pay soldiers to hunt anti capitalist anti American traitors...

Don't be a coward, sacrifice yourself...ask not what the system can do for you, but ask what you can do for the system...Borrow and spend like there is no tomorrow...It is up to consumers to borrow from tomorrow to create today...Eventually they will run out of tomorrows...Then the jig is up...Live life to the fullest because it can end at any momment...

What a pile of crap...

The German Hyperinflation happened because the Government which owed, had the power to print what they owed...

Currently consumers do not have this power...The entire population owes the commercial banks and Federal reserve who has the power to create debt out of thin air...You are saying that the Federal reserve and commercial banks will just start giving away money for free to those who owe them which will then be paid by consumers back to the commercial banks and federal reserve who gave it to them in the first place?

It's like you owing me $10 but can't pay so I give you a gift of $10 which you use to pay me the $10 you owe me...

The debasement process began long before the FEDERAL RESERVE was formed...It has been 45+ years since the US began to consume more than it produces...Debt inflation makes that possible...It only became apparent in 1971 with the closing of the gold window...The current bubble is 45 to 50 years old...in that time the US has turned its productive economy into a service economy so unlike the Great Depression the US has no realistic domestic productive power...The domestic economy is a shadow of what it was...

The reason why economic theory is of no real help to you is because it is all based on Absolute self indulgent reason...All theory is biased towards inflation (You can't get rich losing money)...and seriously underestimates the importance of and the basic mechanics of fractional reserve banking... Implosion is not an option but is the ultimate result...You can't inflate forever...

"Economics is extremely useful as a form of employment for economists" - John Kenneth Galbraith

First there is no money in the system - it is all debt. Federal Reserve notes are not money or dollars...A dollar is a unit of measurement, much like a pound, a foot, or a mile. Specifically, the dollar is a unit of weight. It's defined as 24.75 grains of pure gold or 371.25 grains of pure silver in the U.S. Coinage Act of 1792.

"Federal Reserve Notes are not dollars." - RUSSELL L.MUNK, former Assistant General Counsel, Department of the Treasury

".... What is a dollar its just something artificial we throw out there.... what you're doing is you're fooling people...." - DENNIS KARNOFSKY, Chief economic adviser St. Louis Federal Reserve Bank

"Where would we be if we had I.O.U.'s scrip and certificates floating all around the country?" Instead he (FDR) decided to "issue currency against the sound assets of the banks. The Federal Reserve Act lets us print all we'll need. And it won't frighten the people. It won't look like stage money. It'll be money that looks like real money." The Bank Holiday of 1933', p20 -Treasury Secretary Woodin, 3/7/1933

Debt inflation is the price that must be paid to maintain an expanding debt supply which is what we use as money...debt is money, what is money? Money is a debt owed to someone else...Commercial banks and ultimately the Federal Reserve...

Before the Federal Reserve the US had a decentralized credit system of regional Fractional reserve institutions...There were plenty of bank panics when a regional bank inflated debt to it's maximum extent and then imploded...

Prior to the creation of the Federal Reserve the Bankers caused panics Problem and reaction so that their solution would be embraced which was the Federal Reserve...

The problem is Fractional reserve banking...the solution is to abolish it...devise a new system...All the federal reserve does is turn a regional problem into a national and even a global problem...

When the FEDERAL RESERVE was created it was given the power to create money out of thin air...Commercial banks only have the power to create debt out of thin air based on the deposits or collateral supplied by consumers...The Federal Reserve does not need any deposits or collateral it has the power to create money out of thin air...

"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank

"The Federal Reserve bank buys government bonds without one penny..." --Congressman Wright Patman, Congressional Record, Sept 30, 1941

"The Federal Reserve system pays the U.S. Treasury $20.60 per thousand notes --a little over 2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidently, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." --Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system

The Federal Reserve is on the Top then the US government then the commercial banks then the citizens at the bottom...

The citizens owe the commercial banks, Government and ultimately the Federal Reserve everything...The Federal Reserve, Government, and Commercial banks owe the citizens nothing...

Economic growth is dependant on debt inflation...Debt inflation is when more new debt is created then previously created debt...Debt deflation is when less new debt is created then previously created debt...

When you think of economics you are using absolute self indulgent reason...you assume debt inflation never ends...self delusion...

The purpose of the Federal Reserve is to keep the debt supply perpetually expanding or it will implode wiping out the banking system...and collapsing the economy...The Fed raises short term rates to slow debt inflation and they lower short term rates to accelerate debt inflation...

Too much debt inflation is the same as too little...Prices rise too fast Hyperinflation followed by hyperdeflation or prices begin dropping which is inflation followed by hyperdeflation...

You have to realize the system is based on perpetual debt inflation...whether it hyperinflates to its maximum potential in a year or inflates to it's maximum potential in 100 years it is always followed by a hyperdeflationary implosion...

Debt inflation must be the "required amount"...What is the required amount? Not even the Fed knows this...all they are trying to do is prevent implosion...and whatever actions are taken to accomplish this are justified...

The ends justify the means...It is not a responsible system it is an absolute capitalistic system based on self indulgent reason which is self delusional and ultimately self destructive... Any responsible capitalist employing altruistic logic to control the system will either cause it to implode or be corrupted into an absolute capitalist...absolute power corrupts absolutely...The Federal Reserve is the only institution in the US which has the power to create money out of thin air...every other institution and living being must borrow money which is debt owed ultimately to the FEDERAL RESERVE...

The Government works with the FED...If invasion of a country is needed to sustain the required amount of debt inflation then that is what has to be done...

It is mathematically impossible to inflate debt forever you can only inflate the system to it's maximum potential then debt deflates to it's maximum potential...or implosion...

So far the FED has been postponeing the inevitable implosion for 45-50 years...The system only gets weaker the longer it is in operation...

Due to the expansion of the money supply which is composed totally of debt...the purchasing power of the debt units drops...so dropping rates produces a blast of debt inflation but loses power over time...

If rates are raised to high or sustained too long debt inflation will collapse past the point of no return resulting in implosion...

82 Rates reached their maximum potential since then the only way to sustain the required amount of debt inflation to prevent implosion has been to continually lower rates when debt deflationary potential began to show up or debt inflationary potential began to weaken...

John Maynard Keynes, one of the chief architects of our current system called such a scenario of lower lows and lower highs a Liquidity trap which the US is caught in...Note in 2000 rates were raised to make a higher high and debt inflationary potential collapsed...along with the Dow...The only course of action was the massive slashing of short rates from 6.5% to 1% to produce a greater force of debt inflation to overpower debt deflation...

Liquidity traps climax in Credit crunches or Hyperdeflationary implosions of debt...

Now "Normalcy" is a debt growth line moving almost Vertical when normalcy was just a little above horizontal prior to 1971...The US began to collapse in 58 to 61 but no one knew...until the US ran out of money in 1971 and started borrowing to survive...

Failure to keep debt growth moving at the current growth rate will lead to implosion...

The total debt is the money supply...It must keep expanding or the system implodes...
When we hit the infinite inflation line we will need infinite exponential debt inflation to prevent implosion...

Consumers even the Government have a finite ability to consume debt...

Debt inflation of 2 Trillion a year is manageable Debt inflation of 1 Trillion a second is not...

Whether maximum potential debt inflation is reached in 1 year due to runaway hyperinflation or 100 years due to controlled debt inflation...it is always followed by implosion or a hyperdeflation of debt... In debt backed by debt fractional reserve systems...

All the FEDERAL RESERVE was created to do is prolong debt inflation...It can not make it permanent...All it can do is inflate debt to it's maximum potential then implode...That is all fractional reserve banking can do and has ever done...inflate then implode...

Globalization and Free Trade is just an attempt to find more debt free victims to exploit...In the 20th century Globalization as the "solution" was tried prior to WW1 and WW2...now it is fast approaching maximum potential again...

It will fail...Like it always fails...

The only solution to debt deflation in a debt backed by debt system is debt inflation...Inflate debt or die...

Debt inflation has a maximum potential either the victims refuse to consume debt in the required amounts or they for whatever reason can't any more...borrowed all that they can or all that they want to...It then becomes paramount that the knowledge of the maximum potential must be kept hidden...

Now it is LIE OR DIE...The just think positive inflation forever religion based on Absolute self indulgent reason...

People like me who employ Altruistic logic or truth are to be avoided because truth is negative in a system depandant on lies and self delusion to function which is considered positive...To put the best positive spin on it Fractional reserve banking is just a white lie...Don't worry be happy...

Until of course maximum potential is hit then new lies must be created to replace the imploding ones...Exposure of the inevitable truth will implode the system and the inevitable implosion will expose the truth...

The winning powers of WW1 demanded Gold as payment...so the German Government could raise taxes or print which they had the power to do...So they printed cash to buy gold...Then the Marks came home to roost...

The US as it is currently set up the debt dollars begin roosting the second they are created...

When a US consumer requests a commercial bank to create $200,000 of debt out of thin air to purchase a house that is basically the same as the German government printing money to buy gold...Except the German government did not borrow it, it stole purchasing power from the population...

Any debt a US consumer requests a commercial bank to create inflates the money supply which is composed of debt...

Once Germany was done printing prices were rising by the hour and workers were going on strike to be paid twice a day so they could take thier wheelbarrel full of money to their wives so they could wait in line to buy bread before it became too expensive...

They shut the presses down and the debt inflation created by the expansion of the cash money supply could not be sustained any more and began to deflate and a hyperdeflationary implosion was the result, the bottom of society especially the middle class were ruined...the Rich who converted their profits into gold as fast as they could came in at the end and bought up the victims at a sickening discount...Mass starvation and brutality lingered for years...Germany was a case also where the paper cash was actually repudiated belief in it's worth collapsed...meaning that the top would not accept it as payment anymore only gold, silver or barter would do, legal tender laws became unenforceable...alot of people just burned the money to keep warm...

In the US the people who owe do not have the power to print money or create it out of nothing...and the people who owe in the US owe it to the people who have the power to print and create it out of nothing...

Any inflation will be the result of dropping rates to zero...then it will lose power...

You borrow $10 plus interest from me and I create it out of thin air then you can't pay...Then you expect me to create $10 plus the interest due on the original created out of thin air $10 and give it to you for free so you can then pay me the $10 plus interest you owe me?

The inflation you see now is the result of consumer consumption of debt...once consumers have consumed all they can and can't or won't any more then the only way to support debt inflation further is to basically start giving money away for free on street corners...

Send every American a Debt inflationary homeland security check for free...

In greater and greater amounts...faster and faster...forever...Imagine your bank account balence doubling every second...stock quotes in scientific notation...thumb tacks that cost 1 quadrillion dollars apiece...

Sorry maximum potential is maximum potential...

They always implode...In fact it is impossible to prevent their implosion...the best you can do is prolong them as long as possible...

I've heard every excuse why all the implosions of the past happened but will either never happen again because we are so wise and intelligent now or that the implosion is so far away that there is no need to worry...the suckers in the future can suck it up and deal with it...

The FED has magical powers...The TPTP can't let it happen...and on and on...

Just massive amounts of denial...It seems for every ounce of truth there is 1 Ton of denial...

Hang people from a rope over a pool of sharks then start lowering the rope...all they have to do is keep climbing the rope the faster they climb the faster the rope drops that is debt inflation...the pool of sharks is debt deflation...either they will run out of rope or collapse from exaustion...the top is the one holding the rope and the bottom is the one trying to climb out...

Just before they collapse or the rope runs out ask them if they get it...Then say good bye, thanks for showing up to planet Earth sucker...

1 comment:

Anonymous said...

The Federal Reserve Has Created the Risk of a Global Depression!

Please sign, publish or forward our Abolish the Federal Reserve Petition at
http://www.petitiononline.com/fed/petition.html to all your pro-freedom friends and associates.

The collapsing dollar, exploding oil and food prices, falling housing market, the subprime mortgage and growing credit crisis and stock market weakness are all a result of earlier Federal Reserve actions designed to maximize Wall Street and banking profits at the expense of productive, working people around the world.

Ron Holland, The Swiss Confederation Institute, Wolf Laurel, NC
PS Check out the July Las Vegas FreedomFest Conference www.freedomfest.com