Sunday, March 27, 2011

Scapegoat Roulette


Banks don't loan money out. Banks increase the money supply at the request of the consumer. The reason why the total credit market debt or money supply has stopped growing is not because the banks have stopped lending...It's because consumers have slowed their requests for commerical banks to create money.

How money is created...

A consumer requests a commercial bank for a "loan"

There is no money to loan...it's credit.

The bank then creates a liability and an asset and attaches interest to it.

As the consumer pays off the "loan" (of their future income) the asset and liability shrink by the principle amount...or return back into thin air where it came from...and the banks keep the interest.

That's how commercial banking as you all know it has operated for over six centuries now.

On any given day in the year...over 3 Trillion dollars flows through New york...Globally it's easily close to 10 Trillion equivalent Dollars of volume a day.

The US money supply is around 52 Trillion Dollars...the global supply equivalent is close to 200 Trillion dollars.

It's all debt...owed ultimately to the top. Ultimately the money supply of the world is owned by the top and the bottom rents and the cost to pay the rent is hidden in the price of everything.

The minor amount of FED so called "money printing" doesn't even equal half of a typical average day's volume.

Yield rates are so low the top has been forced to make up the difference...

The yield game is over...top sucks from the bottom until the bottom is sucked dry...then poof.

All the strikes/revolutions and chaos are being unleashed to cover the revelation of the lower high that the top began engineering in 2008...after the G20 all the various authorities went back and implemented the greatest global Government economic intervention in history....massive record breaking deficit spending.

Then the top covered...

The top does all the buying and selling...the bottom just speculates.

The top is not the cause but in the chain leading back to the cause...the top is the cause...The Federal Reserve is the effect.

Last time around before they were in soup lines...they were crying that the fed was printing too much...after they were in the soup lines...they cried that the fed was not printing enough.

The FED "money printing" is an effect...Not the cause.

Food and Fuel supply has been carefully managed by the top so as to reduce the base of the derivatives markets.

The result is ultimately higher prices...

The money supply or total credit market debt has not increased at all in 3 years.

As far as I can tell all these increases are due to the cuts in supply in relation to demand.

The exports from China and various other consumer goods along with real estate has not significantly risen in price at all.

I ditched my last cathode ray tube last month...

The top lives off the yield from the bottom...In order to obtain the required yield within an environment of constantly dropping yields the past 30 years requires ever increasing volume.

The US consumer reached their maximum potential to sustain the volume in late 2007.

But the difference has to be made up somewere...

You could begin engineering rates higher...but that will just cause the already unsufficient volume to collapse further...tightening supplies of food and fuel won't hurt the ability of consumers to request commercial banks to increase the money supply.

Ulltimately the top can obtain higher yields this way...

Increasing the cost of food and fuel increases the demand for money.

Thats the trick that's been employed up to this point...It's been used in japan for 20 years...cheap slave labor electronic goodies...expensive food and fuel.

The FEDERAL RESERVE is facilitator.

One slight probelm...unlike Japan...this trick can not be sustained very long...

All that's going to happen is commodity prices are going to keep rising until maximum potential and then there will be a collapse.

The various scapegoats are already out there.

The global mass strike/revolutions and the soon to be realized and comprehended Japan meltdown..