Sunday, October 26, 2008

Wheel of Fortune

Globalism destroyed the USA.

There is no way a US worker can compete with a child slave laborer or a Chinese wage slave.

Reguardless of regulation or taxes...The manufacturing was exported out to stop the wage inflation that was feeding the hyperinflation of the 1970's.

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

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

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

Yes is positive

and no is negative.

Everyone is entitled to their opinion...right?

Well the Antonym or opposite of opinion is Fact.

So then everyone is entitled to their lies.

At some point interest rates will rise...but they are too high now...so once they start rising...it won't matter.

They drop and rise in search of volume...they have been dropping for 28 years...and basically can't find any volume...And if there is no volume lower then there will be none higher.

Basically the whole thing needs to implode to oblivion and start from scratch.

No new system can be implemented until this one totally deflates down to almost zero. Then there are all the fate resisters that have to be taken care of...It will take many years even if they have a perfect foolproof transition plan.

The problem is taking more than you give or compound interest...so any system that still allows that will just inflate to maximum potential and implode again...The reaction is the same each time and the solution is as well.

12,000/year lent out at 5% interest for 20 years is \$416,631

Lets say you stopped adding and just compounded \$416,631 for another 30 years.

You would have \$1,800,655 after 50 years and if you started at 20 you would be 70 years old.

Lets figure out what gain you would need to turn \$12,000 into 1 million in 5 years...after the first year to save it up.

\$12,000 lent out at 142.2% interest for 5 years is \$1,000,119.60

Lets say you saved 1 British pound when the bank of England was founded in 1694 at 5%

You would have 4,502,356 British pounds...

Lets say the royal family stored their 250,000 British pounds there.

That's 1,125,589,198,005.70 or 1.1 Trillion British pounds...

Must be alot of off balance sheet wealth somewhere.

Amortization...or why is real estate so important.

Median house price in 2006 was \$255,000 lets say...

And you need to request a commercial bank to manufacture \$245,000

The bank looks at your income and it's theoretically possible that you can service it...and you are approved...

The bank creates an asset and a liability of \$245,000 and amortizes it at 6% for 30 years.

You use it to buy the house...so basically the money supply just increased by \$245,000

The payment is 1468.90...The principal is \$243.90...So the asset and liability both shrink to \$244,756.10...and the money supply of the USA shrinks by \$243.90

The interest is kept by the bank...and it's \$1225 per month...It's still \$1000 by Sept 2019.

\$1000+ per month for 11 years is pretty good...for a few key strokes.

Total Interest after 30 years is \$283,803.56 of course the original money created or \$245,000 shrinks to zero...for an increase of the money supply over 30 years by \$38,803.56

Real estate is the ultimate source of new money creation/inflation in an economy since the money lasts so long.

It's the largest source of revenue for a commercial bank because the Interest is front loaded and lasts a long time.

It is interest...

Interest attached to the medium of exchange is the cause of fractional reserve banking...

ALLOW ME TO TAKE MORE OF ANOTHERS POWER THEN I GIVE AND I CARE NOT WHO MAKES THE RULES OF THE GAME YOU ARE ALL PLAYING.

BECAUSE EVENTUALLY I WILL SUCK ALL 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 OF THE GAME YOU ARE ALL PLAYING.

Who am I...

I'm the Top and you are the bottom.

All we at the top have to do is attach Interest to all the money that we loan to the bottom...higher than the rate of production of the money...And "we" at the "top" will steal it all back again.

We will own the whole money supply...We will just keep relending it back into circulation and you all will just keep paying the rent.

And if attaching interest to the medium of exchange is not against the rules of the game...Also if it's not against the rules of the game to take more than you give...THEN IT'S OBVIOUSLY NOT STEALING.

Of course if you are just a game player...

Plunder is taking more than you give.

Attaching interest to the medium of exchange is taking more than you give.

Attaching interest to the medium of exchange is plunder

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it."--Frederic Bastiat

The fractional reserve credit system was the solution...because once the money supply is utilized to its maximum potential it becomes impossible for the bottom to pay the rent...

Like the money supply owned by the top is 1 Billion silver pieces but the bottom owes 1 Billion + 5% to the top.

And then 1 Billion +5%+5% every year...+5% more....I wonder why the rich get richer and the poor get poorer?

Who knows maybe one day we will find out...Until then please give generously to the help find a cure for moronism foundation...Because together...we will find the cure.

Interest attached to the medium of exchange is the cause of the need for fractional reserve banking.

It's why the commercial banking credit system was created...to suport the worshippers of the compounding interest equation as the path to salvation.

The problem in the USA is that consumers are not requesting enough new money to be manufactured to service the existence of the previously manufactured money...the growth rate of the money supply has slowed by the most in 64 years and the assets used as collateral that are inflated with previously manufactured money...need newly created money to sustain their inflation or they drop in price...

That's one problem with the reserve requirements...the collateral has contracted in price...the other is that 1.4 Trillion less new money has been created compared to last year and the banks are short 1.4 Trillion in revenue and profit.

Remember when Ben said that they would just print money and every idiot on Earth piled up their life savings on the hyperinflation bet...and then once they were all leveraged to the max...The wheel of fortune stopped spinning and landed on deflation...and everyone lost...

Oil and other commodities are dropping because US consumers are exhausted and have been requesting commercial banks to manufacture way less Dollars than last year. (unable to sustain hyperinflation)

1.4 Trillion less liquidity circulating globally than is needed...It's why the whole global system is caving in.

All the massive mind boggling amounts of infusions to date...are loans that have to be paid back within days or months backed by pre-existing collateral and income...no new money has been created.

They are not pumping Trillions into the hands of the consumers...

They are just supplying short term loans to banks which are servicing the loans with their current income and assets.

Ultimately they are treading water until the maxed out consumers all of a sudden start requesting commercial banks to manufacture more new money.

Unfortunately maxed out consumers can't...

I don't know why exactly you all just account for yourselves...but that's the problem...everyone supports you...you don't support them...but you people think you support everyone else.

This belief is a huge cherished delusion at the top...rich people generally seem to think that without them the bottom would collapse but it's actually the other way around...the bottom supports the top.

The consumers support the banks...the banks don't support the people.

The bank collapses are an effect...Of the cause...exhausted consumers.

The bottom just can't support the top anymore.

It's borrowed...Unlimited borrowing. The commerical banks have an unlimited ability to create money...

Unfortunately consumers have a limited ability to request its creation.

This is just to keep the banks from imploding due to the drop in consumer requests to create new money...the circulation is broken...

This will do nothing to address the inability of the consumers to request the required amount of new money to service the continued existence of the previously created money.

It's the difference between swimming to safety or treading water until you grow tired and drown.

The unlimited is ultimately limited...

How FED borrowing works...a commercial bank uses its income or an asset as collateral for a loan short term at wholesale rates that it will sell to consumers for long term at retail rates.

Without a consumer signing on the dotted line and servicing it....jigs up.

Like all the sub primes that blew up...scraped the bottom of the barrel and found signers....but they could not service them...poof game over.

And at some point increasing the supply of treasuries will cause rates to rise...Which will cause further consumer demand destruction.

Of course the consumer will not be done consuming...but it's the amount they consume.

The compound interest equation at the core of all the accounting algorithms...I lend you \$100 dollars as long as you agree to pay me back \$105.

Obviously to satisfy that you have to consume \$5 more dollars.

If you can't and lets say can only consume \$98...game over.

The demand for the system to inflate is there but the ability is not.

The entire money supply is debt 51 trillion dollars...and in order to sustain its circulation...the consumers/workers must service its continued circulation.

or it slows then stops then implodes.

I lend you 49.8 Trillion dollars at the start of 2008 as long as you agree to pay me back 54.2 Trillion dollars at the end of 2008 at 2007 growth rates of an average of 12 Billion dollars of new money requested by consumers a day.

But so far in 2008 at an average growth rate of an average of 6.99 Billion dollars of new money requested by consumers a day...It works out to 52.4 Trillion dollars.

There is 1.8 Trillion dollars less being requested by consumers this year...it's why the banks and Wall Street are crumbling and the global economy is going into recession.

The only way to escape is for US consumers to reflate out of the hole (recession) they are in...but if they are maxed out...there is no escape.

The FED provides short term liquidity for Treasuires so that they can be slowly exchanged for money.

How treasuries work...The Congress authorizes the US Treasury to issue lets say 700 Billion dollars of treasuries...The FED then buys them with credit in the form of a check...the FED then sells them to the primary dealers...or the Global banking system for Federal Reserve notes...where do the banks get the cash?

The US government cashes the check...And the money comes out of the account that the money from the sales of the bonds to the dealers shows up in.

The process takes weeks or months to increase the supply of bonds without causing unwanted interest rate fluctuations.

US Consumers request commercial banks to manufacture money...that the consumers blow into the economy.

From 1945 to now...about 50.8 Trillion dollars of new money...or credit which is debt that has been requested by US consumers...

The US Government in the same period of time has isssued 9.8 Trillion dollars worth of treasuries and "Borrowed" 9.8 Trillion of the 50.8 Trillion dollars of new money...or credit which is debt that has been requested by US consumers...

If 700 billion dollars of treasuries was dumped into the markets all at once...the interest rates would spike up...

This process is a way basically to borrow money from all the banks in the world without having to deal with each one individually.

All the countries on Earth have this exact same system...there is no real difference between the banking/political system in the USA or any others in the world.

Consumers generate the money...They stop...game over.

They either start subsidizing the US consumer...By sending them emergency postponement of the end of the world checks...Or forget it...

This mess will just crumble to the implosion point and poof...game over.

Right now the growth rate has slowed by the most in 62 years.

Money is still being produced by consumers...But not enough to keep the system from crumbling. Too slow and the growth rate of the money supply will go negative...all the prices you see now...basically hyperdeflate since supply can't be cut faster than demand drops.

In the case of real estate...You would have to basically drop nukes on cities to reduce the supply fast enough to sustain price...but that obviously is not an option.

Home equity will continue to be destroyed until there is a resumption of the massive sales boom...basically a return to 2006-2007 levels of activity.

Ultimately the US real estate bubble will pop and wipe out Trillions of dollars of assets.

Assets that are backing the requests by US consumers for commercial banks to manufacture more new money.

14 Trillion or so...the largest portion of global assets.

Japan's real estate bubble imploded almost 18 years ago and has not recovered...then people say that they are doing Ok...Ya on US life support the past 18 years...slurping up massive amounts of US consumer debt inflation...But when the USA caves..the inflation imports will stop...Japan will then resume their implosion to oblivion.

Gold is dropping because it should be...If it shouldn't be dropping...It wouldn't be.

It's so simple.

Who came up with the idea of speculative Gold markets?

Poor people or rich people?

How do you think rich people would design the markets they own?

So that when the markets started operating the rich would be transformed into poor people or that they would become richer?

You all are obviously only dreaming that you are awake.

Maybe you all went to school to learn how to be stupid.

A 100% Gold or silver backed currency system has not existed for at least 600 years...and it's most likely closer to 1000.

This current compounding interest commercial banking credit system has been in operation in the USA before the USA even existed.

There has never been enough gold and silver in circulation to sustain such a system...the appearance...yes...an actual functional system...no.

It's been fractionally reserved for centuries.

It's just now that the descendants of chattel slaves have risen up to the point that they can begin to see what they haven't for 1000's of years.

"While boasting of our noble deeds we're careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."--Horace Greeley

Yes we are the smartest stupid people that have ever existed.

When a student exposes the social engineers to truth behind their lies they inculcate to the indifferent...the social engineers inform the student that their job or function as student is to be engineered by the engineers or they will be escorted out of the social engineering institution...force will be increased in porportion to the resistance until the student performs their job or function as they are supposed to according to the accepted rules of the game of absolute capitalism.

Human Beings pop into existence powerless surrounded by the powerful who use their power to transform Human beings in to Monsters then tell them that Monsters are just a fairy tale.

"The subjects of every state (Bottom) ought to contribute towards the support of the government (TOP), as nearly as possible in proportion to the revenue which they respectively enjoy under the protection of the state."--Adam Smith, Wealth of Nations 1776

Governments of the absolute capitalistic hierarchial food powered make work enterprise are administration systems of the enterprise constructed and sustained by the bottom or employees at the demand of the top or owners of the absolute capitalistic hierarchial food powered make work enterprise

"The understandings of the greater part of men are necessarily formed by their ordinary employments. The man whose life is spent in performing a few simple operations. . . has no occasion to exert his understanding. . . Of the great and extensive interests of his country he is altogether incapable of judging. . . . The uniformity of his stationary life naturally corrupts the courage of his mind."--Adam Smith, Wealth of Nations 1776

"Consider... the university professor. What is his function? Simply to pass on to fresh generations of numskulls a body of so-called knowledge that is fragmentary, unimportant, and, in large part, untrue. His whole professional activity is circumscribed by the prejudices, vanities and avarices of his university trustees, i.e., a committee of soap-boilers, nail manufacturers, bank-directors and politicians. The moment he offends these vermin he is undone. He cannot so much as think aloud without running a risk of having them fan his pantaloons."--H. L. Mencken

Simplicity adds up to the multiplication of complexity which is then divided unequally to obtain the required yield of power the absolute capitalists want to manipulate the Universe how they desire.

“The study of money (Power), above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.”--John Kenneth Galbraith Money: Whence it came, where it went - 1975, p15

"All the perplexities, confusions and distresses in America arise not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation."(Absolute capitalist economics and power)--PRESIDENT JOHN ADAMS

Economics (absolute capitalistic and responsible capitalistic) is not an invention it is a discovery

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

Everything and all life in and including the Universe itself capitalize on Truth to sustain its and their existence

TRUTH IS INFINITE AND INDESTRUCTIBLE

The worshippers of the compounding interest equation will bear its burdens without complaint and perhaps without even suspecting that the equation is inimical to their interests while those who follow the worshippers will complain about the effects but will be ignorant of the cause.

"While boasting of our noble deeds, we are careful to control the ugly fact(Mass media A.K.A. commercial persuasion) that by an iniquitous money (Power accounting) system, we have nationalized (And now Globalized) a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."--HORACE GREELY

Ignorance of truth is the root of all evil

"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the POWER to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."--SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain)

Allow me to take more than I give of anothers POWER and I care not who makes the rules...

Money is a food substitute...food is power

POWER is the medium of exchange

Mt 7:21
Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father which is in heaven.
Mt 7:22
Many will say to me in that day, Lord, Lord, have we not prophesied in thy name? and in thy name have cast out devils? and in thy name done many wonderful works?
Mt 7:23
And then will I profess unto them, I never knew you: depart from me, ye that work iniquity.

All in the absolute capitalist system that do not resist it...Support and eventually worship iniquity as the path to salvation.

"Don't be deceived when they tell you things are better now. Even if there's no poverty to be seen because the poverty's been hidden. Even if you ever got more wages and could afford to buy more of these new and useless goods which industries foist on you and even if it seems to you that you never had so much, that is only the slogan of those who still have much more than you. Don't be taken in when they paternally pat you on the shoulder and say that there's no inequality worth speaking of and no more reason to fight because if you believe them they will be completely in charge in their marble homes and granite banks from which they rob the people of the world under the pretence of bringing them culture. Watch out, for as soon as it pleases them they'll send you out to protect their gold in wars whose weapons, rapidly developed by servile scientists, will become more and more deadly until they can with a flick of the finger tear a million of you to pieces."--Jean Paul Marat, 18th Century French Visionary

"The Earth is degenerating these days. Bribery and corruption abound. Children no longer mind their parents, every man wants to write a book, and it is evident that the end of the world is fast approaching."--Assyrian Stone Tablet, c.2800BC

"In the first place, then, it is patent that in our days, not wealth alone is accumulated, but immense power and despotic economic domination are concentrated in the hands of the few, who for the most part are not the owners but only the trustees and directors of invested funds, which they administer at their own good pleasure…This domination is most powerfully exercised by those who, because they hold and control money, also govern credit and determine its allotment, for that reason supplying so to speak, the life blood of the entire economic body, and grasping in their hands, as it were, the very soul of production, so that no one can breathe against their will…"--POPE PIUS XI

"This is a staggering thought. We are completely dependent, on the (compounding interest) Commercial Banks. Someone has to borrow (Request the manufacture of) every dollar, we have in circulation, cash or credit. If the Banks create (At the request of the consumer) ample synthetic money (All money is fiat), we are prosperous; if not, we starve. We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity, of our hopeless position, is almost incredible, but there it is. It is the most, important subject, intelligent persons can investigate and reflect upon. It is so important that our present civilization may (Not may...Inevitably will) collapse (Implode), unless it becomes widely understood, and the defects remedied very soon." (the remedy will cause the implosion)--ROBERT H. HEMPHILL (Credit Manager of Federal Reserve Bank, Atlanta, Georgia 1938)

"Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led on by England, is that capital shall control labor by controlling wages. The great debt that the capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury (Salmon P. Chase) in the Lincoln cabnet) to make this recommendation to Congress. It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we can not control that. But we can control the bonds and through them the bank issues."--FROM A SECRET AGENT - 1862

"I have completed to-day a very great thing. I have finished the National Bank Act. It will be a blessing to the country long after I am dead."--Salmon P. Chase, Lincoln's Secretary of the Treasury

Lies can outlive liars.

"My agency, in promoting the passage of the National Bank Act, was the greatest mistake in my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people should be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country."--Salmon P. Chase is the picture on the largest denomination Federal Reserve Banknote ever produced the \$10,000 and the Chase in Chase Manhattan Bank.

"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt modern civilization."--OTTO VON BISMARCK, German Chancellor (1815-1898)

"I set to work to read the Act of Parliament by which the Bank of England was created in 1694. The inventors (Evil manipulators of the Universe) knew well what they were about. Their design was to mortgage by degrees the whole of the country (And now Earth), all the lands, all the houses, and all other property, and even all labor, to those who would lend their money to the State—the scheme, the crafty, the cunning, the deep scheme has produced what the world never saw before—starvation in the midst of plenty."--WN. COBBETT

"The few (Absolute capitalists at the top of the absolute capitalist Hierarchy) who profit (Yield POWER) from the labor of the masses (The many below the top or the bottom) want to organize the workers (drones) into an army (Of absolute capitalistic yield locusts) which will protect the interests of the (Absolute) capitalists."--Helen Keller, 1916

Absolute capitalists employ Absolute self indulgent reason to solve the problem of existence within the Universe. So do animals and lightning bolts since it is the path of least resistance

"I can hire one half of the working class to kill the other half."--Jay Gould, robber baron (Absolute capitalist), 19th Century

"The idea was that those who direct the overall (Open) conspiracy could use the differences in those two so--called ideologies marxism/fascism/(Corrupted)socialism (Absolute capitalistic) vs. democracy/capitalism (Absolute capitalistc) to enable them to divide larger and larger portions of the human race into opposing camps so that they could be armed and then brainwashed into fighting and destroying each other."--from The Illuminati and the Council on Foreign Relations by Myron Fagan

"(Absolute) Capitalism is the astounding belief (delusion or a lie you tell to yourself) that the most wickedest of men will do the most wickedest of things for the greatest good of everyone."--JOHN MAYNARD KEYNES

"America's abundance was not created by public sacrifices to "the common good," but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes."--Ayn Rand (Absolute capitalist)...Entertains the above mentioned astounding delusion.

"I am rich and proud of every penny I own. I made my money by my own effort, in free exchange and through the voluntary consent of every man I dealt with — the voluntary consent of those who employed me when I started, the voluntary consent of those who work for me now, the voluntary consent of those who buy my product. I shall answer all the questions you are afraid to ask me openly. Do I wish to pay my workers more than their services are worth to me? I do not. Do I wish to sell my product for less than my customers are willing to pay me? I do not. Do I wish to sell it at a loss or give it away? I do not. If this is evil, do whatever you please about me, according to whatever standards you hold. These are mine. I am earning my own living, as every honest(?) man (Woman) must. I refuse to accept as guilt the fact of my own existence and the fact that I must work in order to support it. I refuse to accept as guilt the fact that I am able to do it and do it well. I refuse to accept as guilt the fact that I am able to do it better than most people — the fact that my work is of greater value than the work of my neighbours and that more men are willing to pay me. I refuse to apologize for my ability — I refuse to apologize for my success — I refuse to apologize for my money."--Ayn Rand again (Absolute capitalist) who became rich taking more than she gave entertaining the masses with fiction (Lies) which she claims to be better than most at telling.

"I work for a Government I despise for ends I think criminal."--JOHN MAYNARD KEYNES, (Chief Architect with Harry Dexter White of the 1944 Bretton Woods system)

"Faced with the choice between changing one's mind and proving that there is no need to do so, almost everybody (All who choose to employ absolute self indulgent reason) gets busy on the proof."

"If you feed enough oats to the horse, some will pass through to feed the sparrows." - in relation to trickle-down economics

"Under (Absolute) capitalism, man exploits man. Under communism (Absolute capitalism), it's just the opposite."

"The only function of economic forecasting is to make astrology look respectable."

"The modern conservative (absolute capitalist) is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness."

"People of privilege (Absolute capitalists) will always risk their complete destruction rather than surrender any material part of their advantage. (Power)"

"One of my greatest pleasures in my writing has come from the thought that perhaps my work might annoy someone of comfortably pretentious position. Then comes the realization that such people rarely read."
--John Kenneth Galbraith the above 7 quotes.

"A banker (Any absolute capitalist) is a person that lends you his umbrella when the sun is shining and wants it back the minute it rains."--Mark Twain

"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the Field of commerce and manufacture, are afraid of something. They know that there is a POWER somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak above their breath when they speak in condemnation of it."--Woodrow Wilson

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world, no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."--Woodrow Wilson the face on the \$100,000 Gold certificate.

"The essential claim of sophistry is that the actual logical validity of an argument is irrelevant (if not non-existent); it is only the ruling of the audience which ultimately determines whether a conclusion is considered "true" or not. By appealing to the prejudices and emotions of the judges, one can garner favorable treatment for one's side of the argument and cause a factually false position to be ruled true."--Sophistry A.K.A Democracy or Truth by Popular delusion/concensus

"We must win the war of democracy"

"A lie told often enough becomes the truth."

A lie is designed to masquerade as Truth and since Truth is infinite and indestructible and never changes must mimic truth by not changing

"The goal of socialism is communism."(Absolute capitalism)--Vladimir Lenin

"Democracy is indispensable to socialism"--Vladimir Lenin

"Capitalist dupes will sell us the rope with which to hang them."--Vladimir Lenin

All below the top are useful idiots in the absolute capitalist hierarchy

"Communism (Absolute capitalism); the longest and most painful route from (Absolute) capitalism to (Absolute) capitalism."--Mark Twain

"Seek the company of those who are looking for the truth, but run from those who have found it."--Vaclav Havel, President of Czechoslavkia, now the Czech Republic

Tuesday, October 21, 2008

Welcome To Planet Moron

There is no way to fix the system...

You either satisfy the demands of the compounding interest equation or die.

Simple...

In Germany they stopped when they could no longer account for it all...

Then suffered a hyperdeflationary implosion since they stopped creating the money...Which sent out a shockwave into the rest of the global economy.

The German Hyperinflation was the engine driving the roaring 20's...

When Germany collapsed...they sucked the rest of the world down...poof.

The only way to go back to the conditions that existed back in 1944 is to go back in time...Or modernize the 1929-1944 script and replay it somehow.

Europe is collapsing due to lack of demand from the USA because in the scheme of things the EU is the supply. The US consumer subsidizes the EU superwelfare states...The EU is DOA without the USA.

According to the Rules of the game...The reserves that pile up in central banks...Can only be used to buy Treasuries.

China sets their exchange rates artificially high...Since they also control the wages.

They can slave their population to produce artificially cheap products...

The Communists can then skim off the top and prevent 100's of Billion of US dollars from landing in private Chinese hands...

That's on top of all the phoney private companies that are just fronts for the Communist Government.

"Shanghai Raises Mortgage Loan Ceiling to Boost Demand (Update1)
By Jiang Jianguo

Oct. 15 (Bloomberg) -- Shanghai raised its ceiling on mortgage lending to some households under a government-run program by 20 percent to encourage families to buy apartments in the city.

Eligible households will be allowed to borrow as much as 600,000 yuan (\$87,679) starting today, up from 500,000 yuan, the city's public housing fund agency said in a statement yesterday.

Under Shanghai's mortgage program, most households are allowed to spend as much as 7 percent of their monthly salaries to repay loans. Employers must match workers' contributions and borrowers receive preferential bank lending rates. Households meeting certain requirements can spend as much as 15 percent of salaries, and they are the ones eligible for the new ceiling.

``The change doesn't benefit most people so it may have little effect,'' Liu Bing, a real estate analyst at CSC Securities HK Ltd., said in a phone interview today.

The loan program covered 3.42 million people at the end of June, according to the agency. About 8.8 percent of people covered make the larger repayments, the Shanghai Daily said in June, citing the housing agency.

Housing prices in Shanghai, China's biggest financial center, fell 19.5 percent in the third quarter from the previous three months as the volume of sales slumped, real estate broker Savills Plc said yesterday. Average transaction prices, which rose to a record in the second quarter, dropped to 9,092 yuan per square meter, the London-based broker said in a report.

The volume of transactions slid 39 percent from the second quarter and two-thirds from the same period last year to 2.9 million square meters, according to Savills."

Tsk...

Guess what happens when the USA really caves in...Currently...The USA has just slowed slightly...and the Shanghai real estate market is collapsing...

China's trade surplus will transform into a deficit...

China has not suffered a recession in decades...I don't think they know what one is...

The numbers they stare at will just get smaller and smaller..then at some point The Communists will hang themselves with their own rope...

Go back to 1944 and start from scratch...kiss all this unsustainable insanity goodbye.

The compounding interest commercial banking credit system is 600+ years old...

It's the largest credit bubble in History...

And now they are not even waiting for it to cave in before they are saying that the solution is to do it all over again.

The credit system began locking up in 2006 when the US consumer hit maximum potential...

It's game over...All the infusions to date are to keep banks from collapsing.

The house prices have to keep rising...restructuring the pre existing loans will just slow the collapse of prices...slightly.

In the end it doesn't matter how prudent you think you are...real estate prices will easily collapse down 20% to 10% of current...

So as long as you all have less than 20% equity...You won't really lose.

Just wait until the panic to get out of real estate to save equity from evaporating shows up.

Rates are dictated by volume...or more supply than demand...sellers are forced to lower prices...less supply than demand...sellers are forced to raise prices.

Raise the price or volume and rates/yields fall...lower the price or volume and rates/yields rise.

It's not about risk...It's about yield...current demand is dictating the rates.

Rates are rising in search of yield...because there is none lower...the system is dynamic...

The consumers ultimately dictate rates...

With the consumer tapped out...the revenue stream into banks is drying up...that's what the infusions are for.

Basically the banking system is borrowing from themselves to sustain themselves...Until consumers start partying like it's 2006 again.

Which they are not going to be doing...anytime soon.

It isn't the banks that power the population...it's the population that powers the banks...

US debt? The entire money supply of the USA and every country on earth is composed of credit...or debt...it's 200 trillion equivalent.

It's fixed exchange rates...and none of you are going to be doing any of the fixing I'm extremely sorry to say.

Forget free market capitalism or speculation...fixed is fixed...you will have to have a need to buy something from a market...the days of buying low and selling high will end if the system is fixed.

When clowns are saying a return to fixed or discipline...It's not what you all think.

There will be no way this current system can be fixed until it completely implodes to oblivion and ceases to exist.

How about fix the population at 1 Billion? So that all the other fixes work.

Tell me how anyone is going to turn all the variables into constants to fix them?

You are all variables...That I'm sorry to say will resist being turned into constants.

Fix a variable or dynamic system so that it is static or constant?

Fix every transaction?

Fix everyone so that they have the exact same opinion...So that all poop and flush at the same time.

Come on Hyper that is stupid...

I know but you all think it's not because that's what fixing means...

There is no way to fix freewill...If it's not given a choice it will resist...like it did in 1971.

A "gold standard" doesn't work like you all think. It does nothing to control the issue of credit...by the compounding interest commercial banking credit system.

In 1971 the USA ran out of Gold to sustain trade...What should have happened under the rules of the 1 ounce of GOLD is equal to 35 US Dollars game was the USA to stop comsuming imports...At which point the USA along with the world would have imploded...

The USA and world did not want or need to implode so the USA and world agreed to change the rules to avoid it.

The Gold standard is just a rule...it's not LAW...

It's fiat...Or by decree...

There hasn't been a 1 to 1 ratio in commercial banking ever in its 600 year history.

As soon as a bank lends out deposits there are more liabilities than assets.

Prior to the FEDERAL RESERVE being given the Banknote issuing monopoly in 1913...

Commercial banks issued their own banknotes
...

Free banking is a theory of banking in which commercial banks and market forces control the provision of banking services.

"United States. Between 1837 and 1862, known as the Free Banking Era, only state-chartered banks existed. They could issue bank notes against specie (gold and silver coins) and the states regulated their reserve requirements, interest rates for loans and deposits, the necessary capital ratio. The banking system during this period was notoriously unstable, with many bank failures, and bank notes were discounted depending on the perceived creditworthiness of the issuing bank, that is, there was no single, broadly accepted currency or unit of account[citation needed]. Then, from 1863 to 1913, known as the National Banks Era, state-chartered banks were still operating under a free banking system. Some scholars have found that the system was mostly stable"

There has never been a time in US history when fractional reserve banking was not in operation...and the history in Europe goes back 1000 years.

There is no way to fix the system...sorry.

It's dynamic...not static...

Bretton Woods started out fixed and then became unfixed because it was unfixed to begin with.

Just think positive ignore the negative drones marching to their doom with glee got us into this mess.

Really...But of course that is negative and you will just ignore it.

It's obvious that your idealistic fantasies of how markets work is vastly different from reality. The commercial utilizers and wealthy are taking precedent over the small time gamblers and the poor.

Who gets the lifeboats first?

The hierarchy...Is ruled by rules...It's not an anarchy.

The Markets are selling off to pay the bills that have come due...Unfortunately the only way to pay the cost of the inflation of the markets is with the deflation of them...

Short selling of financial stocks was banned for a bit...But that ended and it still didn't stop puts and calls...

Side bets on Las Vegas street

"Firstly, let us discuss how to use a put option to make a profit in the stock market as well as safeguard your investment. For the technically minded, a put option is the right to sell the stock of a predetermined company in the future at a price determined today. Let us take a hypothetical stock, XYZ as an example in order to explain how to make money using a put option as well as safeguarding your investment. If you own 1000 units of shares of company XYZ, then to safeguard the value of your investment, you will just need to buy a put option. Let us say that stock XYZ is currently selling at \$17 a share and you believe that the price will plunge to \$15 in three months time, then, we buy a put option that gives you the right to sell at \$17. Of course we will need to incur a certain transaction fee which is known as a premium. A premium for buying a put option is usually 20 cents per share. So, in our case we need to pay \$200 to buy the put the option. If the price of stock XYZ does drop to \$15, we exercise our put option and sell it at \$17, thus making a profit of \$1800 (\$2000 - \$200), thus making money while the price of the stock goes down. So what happens if the price of the stock rises instead of falling? Well in that case, we will not exercise the option and sell at the market price and incur a loss of \$200. So, the maximum amount of loss that one can incur using a put option is \$200(in the case of our hypothetical stock), while the potential gains is limitless."

You don't have to own any shares...In the above a \$200 "investment" gives you the right to sell 1000 shares of XYZ company at \$17...what if the price drops to \$10? \$7000-\$200 = \$6800

Lets say we "invest" or "bet" \$20,000 worth of puts like the above or the right to sell 100,000 shares of XYZ company that drop to \$10 that's \$700,000 -\$20,000 or \$680,000

But who would buy that amount of shares at \$17 if the shares are only worth \$10

A call is created to offset the put.

Either you are going to beat the house or you are not.

The general population is oblivious as to what is going on...And the people that do...laugh...

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it."--Frederic Bastiat

Globally now.

From 1944 to 2000 the money supply expanded from 355 Billion to 27 Trillion or around 7500%...the Dow went from 138 to 11000 or around 7700%

From 2000 to 2008 the money supply went from 27 Trillion to 51 Trillion or 88%

The DOW went from 11000 in 2000 to 11000 in 2008 or 0%

Tens of 1000's are sucking the markets dry globally...then factor in all the insider trading...

Rates are set by volume...

You need volume to sustain low rates...

Consumers dictate rates...the banks don't set rates...

If the Bank of England had the power to set rates...the bank would have set the rate 314 years ago and been done with it.

The rates are set in the bond markets based on consumer requests for commercial banks to manufacture money...A cycle forms over time...desperate consumers accelerate their requests for commercial banks to manufacture money causing a spike of liquidity to enter the bond markets and bid bonds up...causing yields to drop.

When they become exhausted the liquidity flooding into the bond markets dries up and causes bonds to be bid down with yields rising.

The Central banks just follow along and take credit...sure they have an ability to engineer long term rates for short periods...but the banks have zero ability to set rates.

People power the banks...the banks don't power the people...And if the required volume does not exist...then game over...

Central banks and banks in general have no magic powers.

The money has to be there...It's not...the workers of the world pay the bills of the world and if they can't...it's not going to happen reguardless of the accounting tricks.

The banks are not scared to lend...that's a lie that has become a mass cherished delusion...with a cherished delusion being a lie you tell to yourself and fall in love with...

Truth is the consumer has reached the point that they can no longer request commercial banks to manufacture money.

The sub prime loans were the banks desperately scraping the bottom of the barrel.

Are they breathing? Sign here....must....keep...inflation...alive.

Worked great...Until the number signing on the dotted line was not enough to cover those walking away...Then the bubble within the bubble went poof.

Hyperinflation?

It's too funny...Gold bugs are trying to cash in from the destruction of the USA and are desperate for hyperinflation.

But have zero Idea how it is ignited...They instead depend upon other morons that have no idea as well to do all their thinking...Their greatest ability is manufacturing reasonable lies to gobble up.

So they have something to do every day...a purpose.

That's it...Ultimately they are just total braindead morons on the same march to doom with glee you are all on and cheerleading.

The authorities announce some huge number and they all wet themselves and assume that finally the beginning of the end of the USA has arrived...it's pathetic.

Then hyperinflation doesn't show up and they bawl to the Internet...asking the Internet why?...

And the Internet says...Because you are a moron that depends upon the Internet to do all the thinking for you...that's why.

I'm sick of hearing about hyperinflation...How are wages in the USA going to hyperinflate?

That's what you need...how?

Prior to 1980...manufacturing wages were and feeding the hyperinflation that began...the solution was to engineer rates higher than the market dictated and then in the resulting recession begin exporting manufacturing out.

And back then the household debt to income ratio was 65%...now it's 120%...with maxed out consumers...Basically the only way to ignite a hyperinflation now is by printing money and give it directly to every consumer/worker in the USA.

And keep giving them more and more faster and faster...who is going to work if you can just stand around and do nothing?

Or the authorities feel sorry for all the morons that desperately desire hyperinflation and so finally decide to give the mass of morons what they desire most so at least they can be happy just before they die in a fit of exquisite agony.

The whole hyperinflation meme is mass social engineering...To keep inflation expectations high...

If you all thought deflation was on the way...You would all cut back/start hoarding/stop spending and the whole system would rapidly implode to oblivion...as opposed to the slow rate of managed collapse currently.

The top has been socially engineering you all for years now to become devout followers of the just think positive, ignore the negative, inflation forever religion.

Ben came out in 2002 and basically said...Don't worry children....GOD is not going to harm you...because we have a weapon that can slay GOD...

Everyone basically trampled over each other to buy the biggest lie ever to come out of the FEDERAL RESERVE.

I said it was a total lie...and for all these years I've been constantly slapped around by the devout...Who demand to know why I'm not as devout as them.

You all have nailed yourselves to crosses of Gold and are looking up demanding to know why you have been forsaken.

Zimbabwe? It destroyed its export of food to the rest of the world economy which caused a huge trade imbalance...all the consumers in Zimbabwe bascially were forced to request more and more new money to be created to buy imports of food or starve while the Zimbabwe government has been in constant deficit issuing massive amounts of bonds to borrow or soak up all the Zimbabwe dollars coming home to roost...to sustain the circulation...once consumers become exhausted or if the Government would stop issuing bonds...the circulation along with the imports would stop and the entire system in Zimbabwe would implode....mass starvation would show up.

Gold and Silver backing would do nothing...plenty had gold and silver at the start...they spent it to survive...not knowing how long the problem was going to last...and since there was a trade deficit...gold and silver that went into circulation...circulated out of the country...and didn't come back.

Same thing would have happened in the USA if the trade barriers would not have been put up in the 1930's to reduce the trade deficit to below the mine/money production rate.

If there is a trade deficit greater than the mine production of gold and silver or the production of money...forget gold and silver as money...It will just circulate out and never come back.

If the USA were to switch to gold or silver money...The USA produces enough gold and silver to survive minutes.

It's why the current system is in place...

If the entire workforce saved up \$5,000 total and then \$1,000/year more at 4% per year.

6.5 Trillion dollars after 20 years or around \$35,000 per worker..can't retire on that...

Lets say \$20,000 a year per worker is minimum in 50 years..that's just above starvation let's say...

3,080,000,000,000 or 3 Trillion dollars or 75 Trillion dollars in savings at 4% return to supply a just above starvation income 50 years from now.

Of course that does not account for population gain...It's just a crude estimate...and other than the required monetary inflation there can basically be very little inflation in the cost of existence above current levels...

So you need the money supply to massively inflate at the same time that the cost of existence basically is static.

Once you stop accounting for yourself first and instead account for everyone else...

You see why the money supply has to inflate...Because everyone wants to be rich and have someone else support them.

It's impossible...There will always have to be a mass of slaves supporting a small group of masters.

The implosion is just the return to reality from the current fantasy/delusion you all entertain.

The fantasy the top knows is a fantasy since the top are the ones that sold it to the bottom.

Really...Welcome to planet moron...almost everyone on it is a pathetic selfish braindead moron.

US consumers reached maximum potential in 2006 and could no longer request the commercial banks to manufacture the required amount of new money to service the continued existance of the previously manufactured money...causing the exposure of the subprime weakness.

You know how to find out who the morons are?

Yell you are all morons and the ones that stand up to prove that they are not morons...

ARE THE MORONS.

No amount of positive energy malinvested into the powering of the delusion is ever going to allow it to defeat truth.

Eventually the Internet will just be shutdown...Due to a terrorist virus...and when it comes back on...Everything they learned from the testing phase you all were part of up to this point will be implemented.

Remember how they offered the Internet for free to get you all hooked?

The just think positive ignore the negative equation is at the core of the drone reasoning algorithm you all have been programed with.

You all ignore the negative...Until it's impossible to...When it's too late.

The world wide Web of lies was created by DARPA or The Defense Advanced Research Projects Agency.

Information is put out there to see your reactions is all...Just more testing.

You all have been given more than enough time to wake up and you all have chosen to refuse to...

Dying in your sleep is not going to be as wonderful as you think.

Sunday, October 12, 2008

Scramble To Avoid Collapse

Scramble to avoid collapse
By Chris Giles and Alan Beattie in Washington and Ben Hall in Paris
Published: October 12 2008 01:17 Last updated: October 12 2008 18:54

World leaders are scrambling to finalise rescue plans for their banking systems before stock markets open on Monday, amid fears that the global financial system is on the brink of collapse.

In Europe, France and Germany were close to announcing dramatic plans to shore up their banks while in Britain, the government was preparing a radical state recapitalisation of some of the country's biggest banks.

In the US, officials were also working to finalise a plan to recapitalise their banks and other financial institutions.

In the Asia Pacific, Australia and New Zealand announced guarantees for all bank deposits, as did the United Arab Emirates, while elsewhere in the Middle East, Saudi Arabia cut its interest rates.

The extraordinary series of moves, which followed record market falls last week, came amid grave concern over the weekend that investors would start scrambling for cash this week, threatening the implosion of financial institutions across the world.

As world leaders and bankers gathered in Washington for the weekend Group of Seven and global financial body meetings, Dominique Strauss-Kahn, International Monetary Fund managing director said: “Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown.”

Josef Ackermann, head of Deutsche Bank and chairman of the Institute of International Finance, representing nearly 400 of the world's largest banks, said the next 24 hours was a ”critical moment” for the world financial crisis. ”If we miss this opportunity we will have more deterioration” in markets, he said.

G7 ministers in Washington produced a broad-brush plan on Friday to stop banks failing, unfreeze bank funding, inject capital into banks, reform deposit insurance and unblock markets for securitized assets.

It appeared at first that they would not produce specific measures but as the weekend progressed, a determination to act quickly emerged.

Christine Lagarde, the French finance minister said a hastily arranged Eurozone summit in Paris on Sunday would “put meat, muscles on the bones of that [G7] skeleton and to develop, follow up and execute upon it”.

Officials said the eurozone leaders were discussing a draft document likely to agree to follow the broad outlines of the British bailout plan - the state taking stakes in banks, guaranteeing new bank borrowing and providing extra liquidity - but adapting the tools to national circumstances.

In addition the European Central Bank would create an unsecured lending facility to buy commercial paper from banks, similar to the move by the US Federal Reserve last week, providing, in effect, guaranteed funding for banks.

Alistair Darling, the British chancellor said all government needed “to act now … The threat is blindingly obvious. You can't stabilise economies unless you have a stable banking system”.

The German finance ministry said it would outline its detailed plans on Monday. A spokesman for the Finance ministry said:” ”The aim is for an orderly but quick legislative process aimed at averting risks for our economy”.

Some financial markets in the Middle East were open on Sunday, giving a mixed response to the weekend's developments. In its first trading sine last Tuesday, Israeli shares were down only 3.8 per cent, having opened 8 per cent lower. Stocks tumbled another 5.4 per cent in Dubai, but only 0.8 per cent in Bahrain.

With emerging markets becoming engulfed in the world financial turmoil, the IMF also said on Sunday it was exploring ways to provide emergency loans without the normal delays and long lists of conditions attached to its standard lending programmes.

Copyright The Financial Times Limited 2008

Saturday, October 11, 2008

The World Goes Poof

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

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

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

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

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

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

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

By default that made

The US consumer the demand of the world.

The USA the supply of inflation.

The rest of the world the demand for US Dollars.

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

The rest of the world the demand for inflation.

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

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

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

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

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

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

Yes this is a normal economic cycle...

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

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

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

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

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

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

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

It was doomed from square one...

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

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

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

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

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

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

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

Or they can't operate.

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

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

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

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

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

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

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

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

Causing the banks and economy to deflate.

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

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

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

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

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

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

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

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

It's always debt backed...

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

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

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

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

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

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

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

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

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

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

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

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

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

1 metric ton is 1000 Kg

so 1,200,000 kg

1 kilogram = 32.1507466 troy ounces

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

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

1 troy ounce = 480 grains

so 50,736,521 grains per day

"Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."

I'll use pure silver

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

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

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

Monetary demand is at least 4458 times more than supply.

Punchline 1

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

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

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

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

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

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

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

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

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

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

checkmate...

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

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

Get it yet?

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

Fractional reserve banking works like the below.

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

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

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

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

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

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

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

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

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

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

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

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

A lie...

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

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

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

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

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

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

From a Wikipedia link:

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

BS as far as I can tell.

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

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

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

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

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

It protects the evil from the good.

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

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

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

So I have nothing that is being threatened...

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

It's the rich vs the poor...

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

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

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

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

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

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

Thursday, October 09, 2008

The System Has Reached Maximum Potential And Is Imploding

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

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

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

Cheryl]

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

The roaring 6 decades is coming to an end.

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

There is nothing that can be done.

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

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

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

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

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

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

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

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

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

A PPT type of organization...

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

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

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

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

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

The bottom supports the top...

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

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

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

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

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

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

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

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

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

Just in time will kill every time.

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

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

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

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

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

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

SORRY.

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

A farmer has zero use for gold.

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

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

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

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

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

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

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

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

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

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

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

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

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

And lost...

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

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

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

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

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

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

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

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

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

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

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

Get rid of fractional reserve banking?

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

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

Inflation greater then previous inflation to maximum potential.

Then when maximum potential is reached.

Inflation less than previous inflation to maximum potential.

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

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

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

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

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

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

Wednesday, October 08, 2008

You Are Not Supposed To Know How The System Functions

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

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

And now rent it to all of you...

The top lives off the yield from the bottom.

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

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

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

Commercial banks issue credit...

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

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

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

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

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

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

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

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

The Congress shall have power...

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

Nothing in there about Dollars...

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

Mass: 8.100 g (0.26 troy oz)

Diameter: 26.5 mm (1.04 in)

Thickness: 2.00 mm (0.079 in)

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

The value of the above is 1 Dollar.

A FEDERAL RESERVE BANKNOTE is an IOU for a dollar.

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

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

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

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

"1836 State Bank Notes

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

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

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

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

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

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

The second was authorized by James Madison.

The third called the FEDERAL RESERVE by Woodrow Wilson.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Treasuries don't back FRN's

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

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

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

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

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

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

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

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

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

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

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

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

and the supply of inflation.

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

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

Not less...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nothing significant has taken place...

The US consumer is toast.

period end of story...

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

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

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

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

And their price is maintained with newly created money.

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

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

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

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