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The Global End Game
Via Gordon T Long of GordonTLong.com,
As we discussed previously, an over-indebted, overcapacity economy cannot generate real expansion. It can only generate speculative asset bubbles that will implode, destroying the latest round of phantom collateral. The following clip succinctly links Charles Hugh-Smith's 14 points in the global endgame to the cycle of deflation from the business cycle, credit cycle, and more critically to the emerging version sought by our current slew of Central Bankers.
FOURTEEN POINTS:
- "Boost Phase" of Credit Expansion
- Overextended Credit Expansion and Over Capacity
- Financialization and Collateral
- Era of Financialization
- Growing Malinvestment
- Phantom Collateral from Asset Bubbles
- Bubble Implosions
- Impaired Debt and Policy Decisions
- Stalled Consumption
- Cheap Money Offered
- Shrinking Loans and Bank Speculation
- Search for Yield from Shrinking Pool of Productive Assets
- Increasingly Speculative Investments with high Risk
- Stagnation - Over-indebted, overcapacity with limited growth.
HOW THEY MAP TO THE CYCLE OF DEFLATION
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Cliff Notes: Create cost-free Confetti-Money. Have people trade their stuff for your Confetti, till they are your eternal serfs.
Everything is still developing according to the grand plan. No changes, no surprises.
The one where most of the population is annihilated and the rest move underground, kinda like in 12 Monkeys?
*cue circus sounds*
Hey tyler, you forgot the last step:
Global ZIRP to transfer ownership of everything to the banks.
The last step is war.
The next-to-the-last step is trade war.
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100023283/an...
Collective Western manic insanity has run its irrational course. Indeed, expect WAR to follow:
http://www.secondkoreanwar.com
Hey aren't you the guy who believes he's the second coming of christ?
The ONLY constant is change itself!
The "window" has closed.
The only egress from the present paradigm is to 'smash' the window glass.
In order to let in fresh air and start anew.
Well if that isn't the Central Banker's plan, it should be. They should trade the $85B they generate each and every month for real, tangible, productive assets - land, factories, real estate, ports. At over $1T of fiat money creation it wouldn't be long before the bankers owned everything that was worthwhile owning.
Its all mortgaged to them, so when they stop printing money and the "owners" can't pay their debts, the banks get em.
I was under the impression Bitcoin was going to solve all of these "problems"?
When you're stoned on hash whacking off to porn ~ "problems" seem to go away [at least for awhile]...
Only if hammers can build houses.
I understand that if everyone doubles their money supply then prices double but incomes double too. So, since money is neutral (2nd year economics syllabus) nothing (much) bad happens. Just eveyone pays double but they have double the money to pay.
Where it does NOT WORK is where one country doubles their money supply and the other's do not. Then that country currency is halved in worth and Zimbabwee, German style inflation kicks-in destroying everyone's cash pile in that currency.
But in the game going on at the moment, all is OK except for those not in the club whose exported products will get relativley more expensive... bla bla - you know the rest...not teaching egg sucking here in the comments... bla bla
Say money supply increases about 7%pa. Did you get a 7% pay raise last year? No, employees get a CPI increase which would be 1-2%. This is how business and asset owners make increasing profits over time and it's how the rich become richer against the rest of the population.
So money supply doubles, incomes don't. Neither does debt btw.
Money is NOT neutral. I don't know what economics school you're being taught but it is complete bollocks.
With regard to the money printing there is a war going on between West and East Central banks. As the "paper" price is knocked down to preserve the Dollar the Eastern Central Banks step in and relieve the West of it's real physical Gold.
Soon there could be a disconnect between paper and physical.
Eventually there will only be "physical" and then some countries will use their Gold to back their currencies. This is the only way all of the debt in the market will be covered as the price of Gold then is revalued upwards to big figures.
Don't be fooled by all the negative talk. Buy as much physical Gold as you can before it's too late.
Dude ....... Seriously ....."incomes double too"
Depends where you sit in the food chain I guess. Top 1% maybe ..... Bottom 80%.... Not so much.
K@
Dude. Where the hell do you work where incomes are doubling? Everyone I know has had their pay frozen for the past few years or has lost their job.
That can't be...the "analysts" over at MSNBC have just released the joyous news that unemployment is way down and the market is hitting new highs...we're in a full steam ahead productivity mode that is unrivaled in modern economic times.
See my post above. It depends who gets to create the money and what they're exchanging it for. Fiat money is intrinsically worthless, the only value it has is based on a perception that it is a store of value and (more importantly) legal tender laws that says people have to accept it. The Fed can create more "money" out of thin air and exchange that money for real, tangible assets. It literally is counterfeiting and is not "neutral" in any way.
paperless forms:
ya gotta' study harder, and not in the tracks that would lead you to the exalted "Economics PhD."
and a reddie on ya.
- Ned
incomes double??? WTF incomes in the US peaked in 1970....where you been?
What really happens is that the money supply doubles, but the first ones who get to spend the doubled-money-supply are the banksters. Banksters spend the money at the current prices, cause inflation, and by the time everyone else's salary doubles, the prices have already doubled to match the increased supply. This is why when the money supply expands, it's never given to the ordinary people first, because then it would be the banksters who are subject to inflation.
Just watched Smith on the latest Keiser Report.
Money supply doubles, prices double. I rather double my own money. Whatever happens in our financial system, traders can always make money trading.
You could make the same argument about going to a casino.
How do traders make a small fortune in the market?
They start with a large fortune.
+1
Are you out of your mind? It's hard enough (and risky enough) to trade when you know the counter party or the trade is cleared by exchange agents ... but to trust a specialized broker to trade, protect and remain solvent is like trusting Jon Corzine to protect my wealth.
i must not be much of a trader then. cause for years i kicked ass in equities and futures, and after march of 2009 i can't find a way to read what will happen next. and when i do. wam, i get burned.
So you're Greenspan's fluffer!
15. Somebody starts a war...........
Yup. Kyle Bass was pretty clear about that. These always end in war.
The only real question is between whom?
you can be sure of ONE proponent; the other remains mystery!
Hard to say who the main actors will be to start but I'm fairly confident that it will end with war between the elite and the rest of us.
That war has been going on for at least ten thousand years.
It's the Alphamaleians vs. the Hoipolloians.
JPM, the US has been at war (what) for just about ever? At least somewhere.
The recent US history "war events" that you are eluding to are not they types of war Bass was suggesting. We are talking global style conflicts were the winners gets to rewrite history and put the spoils of booty into their kitty... we are talking large section of populations being killed..... To the victor goes the spoils....
Vietnam, Iraq, Afghanistan etc... have been regional "skirmishes", a small prelude of what is to come.
It's always so encouraging ... reading Zerohedge
When you're aware, you can despair!
I think the end game is even more insidious. My guess is that the elite will create massive population decimation one way or an other. I don't know if they will risk allowing WWIII because of the danger involving nukes. However, creating massive die offs using biological agents, or famines by using HAARP or playing games in the futures markets would be a possibility.
Put yourself in their shoes. Do they need or want all of us using up their space and resources? No!
Do they need all of us to threaten them with ideas of more equality or guillotines? Certainly not!
They certainly don't want or need more expansion of any kind, they already have so much more than they could possibly use or need. The only bubble they are concerned about is the population bubble and possibly the information bubble. How many blond babes that know their game do they want?
Anyway, they probably have figured many end games with them sitting pretty and us not so much at all.
+1..... Operation depopulation
They want to get rid of the worthless eaters
Whether they want to or not, if we really are over the hill on Peak Oil, there may be only 10 percent as much hydrocarbon energy in 2050 as there is today. Could be down to half today's energy production by 2025. Without oil/coal/nat gas to make and transport all that food, population will go down one way or another.
I think they just want to eliminate middle class. They need "worthless eaters" to polish their shoes.
That would be them... Banking class are the worthless bread gobblers... I have always hated that phrase... they are nothing but parasites.
"I don't know if they will risk allowing WWIII because of the danger involving nukes. "
One thing I have thought about... if the shit hits the fan who is going to monitor the 150+ nuclear reactors in the US, many of which are at the end of their engineered usefulness and have regular failures and technical issues due to the aging infrastructure. I think we all forget just how sketchy the nuclear power situation is on this planet.
Better yet, a _fill_in_the_blank_ global economy that cannot significantly increase its oil supply cannot expand....
Which begs the question, expand to what end??? Cancer expands without limit or until the host dies, is that what our destiny and fate is?
Ooh ooh pick me pick me!
"Counter-economic"
I believe this cycle was also called the "Rowing of the economy", whereby the money supply was inflated and deflated in a deliberate and controlled manner.
The person(s) controlling the money supply could thus control the economy. As the controllers, they and their family & friends could reap maximum benefit by knowing when to buy & sell, when to convert paper assets for real assets and vice versa. It was and remains the ultimate "front-running" of the economy. It is the Game of games, that makes mere mortals defacto kings of men, and bestows them with god-like powers.
Bens got your back. Nothing makes sense
Meanwhile in Tinsel Town :
Jeremy Siegel On The Odds Of Dow 18,000 - Business Insider
This does't sound like the end of the world !
Unless this guy Siegel is like the guy selling unlimited work in CA in that iconic movie : "the grapes of wrath"...5 cents a crate may be coming back to USA...who wants to pick Oranges in competition with the tex mex and the chicanos?
Fiatski is always up for some Charles Hugh Smith goodness.
I can't keep kicking this dipshit Bernanke much longer.
"...financialization that is untethered from the real economy of producing goods and services."
Exactly.
The stock market is the current asset bubble - cotton candy indexes, completely removed from economic reality.
Great stuff Gordon and Charles.
We need businesses to expand capital investment. But, that trend is heading in the wrong direction. I guess share buybacks, increasing dividends and buying other companies is the game for now. That doesn't create jobs. Benny's QE isn't creating much increased consumer demand. Expecting the consumer to increase debt is senseless unless he has the capacity and need to do so. In the long run, central planning fails every time. It is failing now, but the bums in the big W see it as the opportunity to gain full power over the slave class. Pass me an oar, number 41.
Large businesses and corporations don't give a shit about people or the nation, they are bent on raking in cash, off-shoring profits and employment, doing M&A and downsizing employment, and parasitizing any assets the middle class has left and shoveling them to the 1%. Our branches of government are intentionally complicit in enabling this hegemony.
The Kleptoligarchy marches forward; crony capitalism and socialism hand-in-hand with an increasingly facist law enforcement and judicial machine that practices selective rule-of-law to further the destruction.
Incorrect.
Very large businesses are no longer businesses. They are simply government branches since it is supposed the gov will never let them fail.
Hence large businesses are simply establishments where people who do NOT work get employed to collect salaries by NOT working.
It's like being on welfare, but at extremely high salaries.
It's all about timing
They're about to play GOD.....
EKM, love your posts, keep them coming. Here's some more info for your primary dealer takedown thesis: Mervyn King backs RBS breakup - five years too late.
Has anybody read the official UN version of the Agenda 21 proposal?
I'm a big land owner, look at who's buying and merging all the farmland in the U.S. (UN)
How about the UN small arms treaty that's about to come to vote late march?
See a pattern? I used to be skeptical.....
On June 9, 2011, President Obama signed Executive Order 13575, Establishment of the White House Rural Council, with goals to take complete control of public lands and rural areas for development. This aligns with the purposes of Agenda 21, a United Nations environment and development program that removes local say in how lands and farms are managed. “Virtually every aspect of rural life seems to now be part of the government’s mission,” writes Mike Opelka. ~Ed.
On June 9, 2011, President Obama signed his 86th Executive Order, and almost nobody noticed.
Section One of 13575 states the following:
Section 1. Policy. Sixteen percent of the American population lives in rural counties. Strong, sustainable rural communities are essential to winning the future and ensuring American competitiveness in the years ahead. These communities supply our food, fiber, and energy, safeguard our natural resources, and are essential in the development of science and innovation. Though rural communities face numerous challenges, they also present enormous economic potential. The Federal Government has an important role to play in order to expand access to the capital necessary for economic growth, promote innovation, improve access to health care and education, and expand outdoor recreational activities on public lands.
FOOD again. Pls Give me a link of the article from mike opelka
http://www.theblaze.com/stories/2011/06/21/does-the-new-white-house-rura...
Found it. Thx for the tip.
As you wish....
http://foodfreedom.wordpress.com/2011/06/24/does-the-new-%E2%80%98white-...
For what it's worth EKM, your on to something but it is so much more...The grand plan is pretty staggering
I don't think it's got anything to do with UN. I strongly think that the supply chains are already broken and the federal gov stands ready to expropriate the land.
Few people know that expropiation is legal in USA and the western world and it happens quite often.
http://en.wikipedia.org/wiki/Eminent_domain
It has everything to do with the UN..... Read the UN version of agenda 21.
Obama hands sovereignty over to the UN
What's next? One world, One bank, One leader ( any guesses?)
They're just putting all their ducks in a row first.
You could be correct, but the way I see UN, it's just a smoke and mirrors organization to INVENT HIGH PAYING JOBS FOR THE ELITES of each country
It has no power, it's decision are not binding and nobody actually cares about UN. Just my opinion.
I disagree, The UN is VERY VERY powerful,
That's how they're going to pull the whole thing together, representatives from every nation voting for the good of so called mankind.
I strongly recommend you take care of your own deserved property first and foremost. Check my comment above, to you.
ekm,
UN is Russia, China, US, UK and France. I don't know of all the inner political working of UN, but unless these 5 countries agree, nothing gets done.
Look what splendid job UN is doing in Haiti.
The US is the linchpin
gotta get those guns first.... then the pieces fit nicely.
I'm seem to be confused. Are you all saying that I still should be on the lookout for those black helicopters and blue helmets? Was it the UN who destroyed the western economic structure in 2008? I thought it was guys like Lloyd Blankfein and Jamie Dimon with the help of both democrat and republican lawmakers. Lawmakers we all voted for.
I recommend you worry about your own gov and I worry about mine, but I don't really care about UN.
It's useless and worthless, IMO.
Come on ekm, open your mind and do the research
It's what got you here.
Your probably the only one here that could figure it out
This is my last post. seeya.
Ok. I may spend sometime on it, but I'm still focused on economics.
Have a good night.
Oh, you mean just like the emergency manger or Emergency Educational Authority where a state chief executive can arbitrarily nullify democratically elected school boards and local governments? Is that the same thing?
How many of you cheer EM laws???
You have to read my couple posts before this.
We have the same thing (EM laws) in my state, but it's on a state level, not federal.
And no I'm not cheering.
But it's still usurping democracy, whether at the state, federal or continent level. The will of the people is actively thwarted to ensure the Oligarchs get the debts assets they hold serviced. The UN is the least of our problems.
You got to think big picture...
I had a hard time accepting all this when some very smart people showed me.
I was like Neo in the Matrix....NO WAY
But then one day.. I seen it.
It's hard to take everything you know and forget that... AS hardcore as ZH is, It's still just a scratch.
It's just more unenforceable toilet paper, like NDAA, that will never come near it's intended end result...
Play chess? you set everything up
Great players are playing 3-4 moves out
They will create a crisis and the whole thing will fall together
Like a thief in the night
If you own a lot of land, I strongly recommend you print up the EXPROPIATION article from wikipedia, contact few lawyers and get together with other land owners to start having a plan right now, cause my friend....THEY'RE COMING TO GET YOUR LAND if my conjecture of 'shriking food abundance' gets fully proven and I'm affraid it will.
Already underway, I know all the huge land owners in my state and everyone knows full well what's about to unfold.
Don't give up your guns.....If they get those....it's over
Excellent
Nothing a little hot lead can't solve.
I don't know, I think we're in for quite a fight
the fight of our lives.....
Agree ... Hungary does it already to Austrian farmers ... even contracts & deals which have long been sealed.
1929ff well underway. On several fronts.
Have 05-05-2013 (+/- 2 weeks) on your watchlist.
For a major uranian turn down into 2016-02-02 (+/- 2 weeks).
Bullish! Just buy everything, what could wrong?
It is a shame that the parasite class is able to use value diluting fiat money to both direct investment/malinvestment and at the same time enrich themselves while impoverishing the working classes.
It seems as if the system should be able to work ... and actually it did for quite a while until the bankers, corporatist cronies, politicians and other parasitic hangers on figured out that they could just print as much money as they want for themselves without contributing anything of value to society or the world.
Those who have contributed value through their labor get squashed by inflation and any savings they might have had evaporate.
IMO, the biggest bugaboo for any single economy is the Apple syndrome (chasing labor arbitrage around the world). When profiteering for profiteering sake through labor arbitrage becomes the basis of decision making then things get out of whack in the higher labor cost country.... and over time it gets hollowed out, moving tangible assets to the lower labor rate country.
Maybe that is what is considered fair or in the best interest of the world as a whole, but it sure leaves the higher labor rate country in bad shape.
The whole thing was planned....
Globalization
unemployment (worldwide)
crisis
Now for the grand finale....
All while we were asleep.
Buy the fucking dip
Buy the rip
Just buy it.
Apparently the future is unbelievably bright in Iceland. It has just been discovered that a large part of the island is made of gold, according to experts its possible to mine 400 gr out of every ton.
A map that shows the golden coast of Iceland
http://www.visir.is/islenskt-gullaedi-i-uppsiglingu-/article/2013130229056
There have been a few attempts in the past to search for gold in Iceland, for example in Drapuhlid mountain on Snaefellsnes, but the gold they found turned out to be fools gold, pretty, but worthless. It is now a national park.
The oldest part of Iceland is only 20 million years old.
Nobody has ever found any gold in Iceland, or any metals of value.
Then there is the great oil adventure, according to experts there is a enormous oil field in the Dragon region, some 150 nautical miles from shore in the north east quarter of Iceland at the depth of 2000 meters.
No data exists for the region, who happens to be close to the volcano island Jan Mayen but somehow experts have figured out that it is rich with oil.
A map that shows the ground heat in the region, notice the black line that runs trough Iceland, its the Mid Atlantic Ridge.
http://vulkan.blog.is/blog/vulkan/entry/1286368/
The red triangle is the oil prospect area, only the north east corner of it is not in a hot zone. Earthquakes happen quite frequently on or near the ridge.
Odds of finding oil in a place like that seem very unlikely, as it takes low heat conditions to create and sustain oil and gas deposits. No one has ever found any indication of oil or gas deposits in this area.
The third adventure is to double the energy production in Iceland by drilling a bunch of deep drilling wells.
The idea is to sell energy to Europe trough a undersea cable.
This has not been as easy as it might look on paper, because when you drill into a active volcano and frack the well you get lots of quakes, then you get stuff out of the hole that is very toxic and corrosive, it can destroy seals and tubes of steel, and when you pump it into the ground you get more quakes. Those quake swarms often develop a life of their own, unrelated to the boreholes in the area.
The biggest drill in the country in snow drilling on the Reykjanes area, not far from Reykjavik.
http://www.ruv.is/frett/staersti-jardbor-landsins-a-reykjanesi
The areas to be exploited on Reykjanes are highly active and in "intensive care" by geologists because of recent activity.
The gold idea and the oil adventure are a bit pathetic and not likely to fool anyone, but the sea cable thing is something to worry about.
Interesting but it most certainly does not stop there. Quite a few points must follow these 14.