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.
