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"Stop Being So Negative": Putting It All Together
Submitted by IceCap Asset Management
Putting it all together
Considering:
1) governments are unable to eliminate deficits
2) global government debt is increasing exponentially
3) 0% interest rates are allowing governments to borrow more to pay off old loans and fund deficits
4) Global growth is declining despite money printing and bailouts And, we've saved the latest and greatest fact for last: as stunning as 0% interest rates sound, the mathematically-challenged-fantasyland called Europe has just one upped everyone by introducing NEGATIVE INTEREST RATES.
As of writing, over 25% of all bonds issued by European governments has a guaranteed negative return for investors.
Germany can borrow money for 5 years at an interest rate of NEGATIVE 0.10%. Yes, instead of Germany paying you interest when you lend them money, you have to pay them interest.
These same negative interest rate conditions exist across many of the Eurozone countries, as well as Denmark, Sweden and Switzerland.
Since the majority of the investment industry unequivocally supports world central banks, it has convinced itself that negative interest rates are actually good for the worldís economy and it will help the world along its sunny path to economic freedom.
Call us dumbstruck, dumbfounded or just plain dumb. But, our every analysis of these policy moves always brings us to the same conclusion ñ thereís a pretty big adjustment in financial markets on the horizon.
6 years ago, we were told that bailing out the banks and auto companies would save the world.
As this worked so well, we were next told that the world needed 0% interest rates. As this worked so well, we were next told we needed money printing.
As this worked so well, we were next told that Ireland, Portugal, Spain, Italy, and Greece needed a bailout.
As this worked so well, next the IMF issued a report recommending a Global Wealth Tax of 10% be applied to help governments resolve their debt problems.
As this worked so well, next the IMF, the EU, and the ECB all declared that if your bank goes under ñ people with term deposits and GICs will pay for the bailout.
As this has worked so well, now every major central bank in the world agrees that negative interest rates will finally be the policy measure to finally tip the world back onside.
This will work so well, that the world should prepare for even more draconian measures to kick start the recovery. The global hunt for taxes has become very popular, as has the movement to physically remove all cold cash.
Yes, as recommended by Larry Summers, the world is moving ever so closer to completely adopting electronic money as the only way to do business. Many say this is good, after all many of us are practically there already. However, this movement towards electronic money is another attempt to eliminate black markets and allow governments to collect more taxes to fund the deficits.
But perhaps, the biggest financial crime not talked about is the damage to the worldís savers. While most do not realize it, but our central banks and governments have clearly decided to absolutely crush savers and in favour of borrowers.
The combination of all of the above failed policies has in effect punished savers, and rewarded borrowers. We now live in a world the elderly can no longer collect 5-6% interest on their savings accounts.
Instead, and unknowingly to most of them, they have become fully invested in the junk bond market and the stock market. Thatís quite the switch in investment strategy.
* * *
Much more in the full monthly letter (pdf)
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We're fukd.
As the following narrative is slowly being implanted into the publics consciousness:
Negative Nominal Interest Rates: History and Current Proposals
"Nonetheless, the most commonly thought method for removing the zero bound is taxing money. To begin with, the easiest way to implement such a scheme was to abolish coin and bank notes altogether. Buiter (2010, pp. 222-226) considers coins and bank notes to be redundant media of exchange, the larger part of it being held abroad for legitimate (store of value in countries with high inflation rates) and illegitimate (underground economy) reasons. In developed countries, its function of providing liquidity could easily be satisfied by bank accounts. Roughly half of Dollar and Euro notes are held abroad and of the remainder only a small fraction is held for transaction purposes.24 As stated above, without coins and currency, levying the tax on all non-bearer bonds is technically simple. . . If coins and currency are completely replaced by electronic transfers via registered accounts, in theory there is no limit to the domain over which the rate of interest can be set. In addition, there would be the additional advantage of hitting the underground economy as the absence of anonymous bearer bonds would make all economic transactions traceable."
https://www.wiwi.unimuenster.de/cawm/forschen/Download/Diskbeitraege/DP4...
NIRP: Taxing money as a proxy for inflation.
They are going to get your capital one way or another.
instead of calling it "money" (whatever *that* means), call it "points"
collect a million points
redeem them for prizes
some points may be deducted from your total from time to time
void where prohibited
[Great post SG.] The world is a theme park, and restrictions and limitations apply, bitchez!
Devaluable Imperial Credit (DIC(k)) sounds like a nice name too. "yo dawg, you owe me five DIC(k)s, mothafukka!"
Great exercpt Tyler - captured the new NIRP world in four simple, irrefutable points. I actually look forward to reading the whole thing.
Cool..
So Obama will give up golf..
when the Cubs win the World Series..
and the Vulcans land to rescue the world banks.
Points? How about calling it credits? It kinda fits.
How about calling it fraud......?
Or a ponzi.
It appears Houston's energy downturn has begun to reach the businesses that feed off it to survive.
http://www.bizjournals.com/houston/blog/2015/05/staffing-company-puts-ex...
Ponzi Points
Skip to the good part:
Get your ration.
Ya gotta luv Big Brother, he increased the chocolate ration to 28 grams today!
https://www.wiwi.unimuenster.de/cawm/forschen/Download/Diskbeitraege/DP4
The link does not work... not available.
Anyone can still access the file?
Here you go
https://www.wiwi.uni-muenster.de/cawm/forschen/Download/Diskbeitraege/DP...
Sorry for the broken link. My bad.
Truer words have not been spoken on this subject ...
Regards,
Cooter
There are now 2 new propositions to spur European growth.
1. Lower the workingweek from 34 to 30 hours.
Theythink they’ll create more jobs with it but all they’ll do is increase pressure and stress. But salaries will go down.
youth unemployment is still the biggest issue here in Europe.
2. Pay people salaries with a digital currency that has to be spend in the next 12 months after receiving them. So people can still save money but for a limited time and to a max of 1 year in salaries Which for 90% of the population won’t be a problem as they live from paycheck to paycheck.
The socialists rule the world, and for them, for it to become a fair world, nobody should be able to own anything.
There was even one politician who proposed inheritances to be forbidden and be directed to the state. But than a journalist asked the smartest question: so will that also apply to your children and what do you think they’ll say to it?
And the moron politician just kept silence and gave a smirky face.
So socialist want to take from everybody but never forget they will keep providing for themselves.
And they always manage to sell their story because it’s so populistic. most people don’t have a million on their checking account and they all think only the millionaires will be targetted.
And in the end, those who are poor now will be way worse off.
those who are middle class will live like the poor do now.
Everybody will be stepping down the ladder 1 step at least. So people who have it hard now should realize that shit will become just plane hard in the future. Just look to greece where all the poor people ended up on the streets, spit out by their society. They rank the highest on the suicide lists.
People think in terms of cash as wealth. If all your needs are met, and you are in comfort and have no cash - then cash / fiat / money is irrelevant.
When you can find a life outside of *all* banker control a. you do not need debt, b. you need next to no cash, and c. you are living comfortably in the life you want to live d. All the banks AND the government are totally and completley FUCKED. They can raise taxes but it has no effect on you because you do not really have an income. They can raise, lower, negate interest rates but it has no bearing on you because you do not need to save or borrow.
They can try all kinds of things but in the end - their done.
IF you *really* want to screw the governments and the banks in perpetuity teach people to bypass the whole system. 100 years ago this was hard, today technology makes it very viable. Solar panels used to be $10/ watt today they are $0.70 game changers...
And if they keep raising property taxes?
they can tax your property which you need to meet your needs
Which for 90% of the population won’t be a problem as they live from paycheck to paycheck.
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Yes, you hit the nail on the head. This is the real reason for the thinning of the Middle Class. Make increasingly greater number of people living paycheck to paycheck or dependent on Government bennies to stay afloat. Once you have a significant majority in this boat (60%+), you can get the green light for all kinds of social engineering. Except that social engineering will just widen the wealth gap. In other words: a vicious circle.
In a few decades, thanks to automation and AI, you will only need about 10-20% of the population to produce all goods and services. The lower 80% will exist for one purpose: to vote and keep the current political class in power. And of that productive 20%, the 1% will continue to be demonized, but redistribution will only impact the 80-99th percentile. The top 1% will hardly feel it and the top 0.1% will continue to thrive.
I don't like your world. Would relocate to another planet if I could; thankfully, will likely be scattered ashes in a few decades, so sympathy to the rest of ya.
Kidding aside, an excellent and succient synopsis.
kidding?
Yes, kidding. I'm not really a callous self-interested old bastard. I just play one on the Internet.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/e4mV9C
would somebody please shoot this asshole..
thanks
I keep loading up my short postions. Just as trees can only get so tall, the market cannot keep growing forever.
Actually, I don’t think we’ll crash this time. There’s no limit to madness you know.
The political class have become subservient to the banking class, as planned.
As a result, for practical purposes national sovereignty no longer exists in the captive western fiefdoms.
That's about what the King proclaimed about those American upstarts in 1777-78
There not about to let small investors make money from shorting their mess. Be prepared for a margin call.
BOOM!
And there you have it:
"The global hunt for taxes has become very popular, as has the movement to physically remove all cold cash.
Yes, as recommended by Larry Summers, the world is moving ever so closer to completely adopting electronic money as the only way to do business. Many say this is good, after all many of us are practically there already. However, this movement towards electronic money is another attempt to eliminate black markets and allow governments to collect more taxes to fund the deficits.
But perhaps, the biggest financial crime not talked about is the damage to the worlds savers."
As a side "benefit" to governments everywhere, if you are unfortunate enough to be branded as a malcontent or found to be on the wrong side of the Blue-Red divide at any given time in the future, your account can be frozen with one key stroke.
#Forward! ;-)
I got my tax note on my dividends this month. Normally I pay 15% taxes on it, now I pay a extra 25% which adds up to 40%.
So it’s not only dividends that are at record lows, taxes more than doubled.
In the end, it will just be working to survive and nobody will ever be able to irease their wealth anymore.
I think so SD, whether through unplanned inertia or devious design thats what the long term outcome will be.
But not to worry, the kiddies will always have bankrupt governments making moar promises never intended to be kept to fall back on ;-)
BOOM, a black market materializes in every sector and dark corner. I have been planning my niche in such a world and believe me, it ain't in microbiology. Time to network friends before it is too late.
Miffed;-)
ya my niche will be microbiology, I'll make medicine, food, booze and drugs in the post apocalypse. Bacteria, yeast, mold, fungus and all the likes are my friends.
Just to stir the pot ..... look at the old Darkcoin (rebranded as DASH) for an online payments method that is much more private than Bitcoin ... and just as global.
Probably not reliable as a store of wealth, but fine for untraceable payments.
Gold of course for untraceable store of wealth. You need to use the right tool for any given task. There is no 'one size fits all' in this world
If there comes a time when we can't use government issued money then we shall have to start using commercially issued scrip instead.
Either that or gold, silver and copper coins. Now there's an idea - why wasn't it thought of long ago?!
"...if you are unfortunate enough to be branded as a malcontent or found to be on the wrong side of the Blue-Red divide at any given time in the future, your account can be frozen with one key stroke."
Aye. And just wait till you go to catch a flight out of the country to visit family/friends and some guy with a name tag on his jacket walks up to you and says: "Excuse me SIR, it looks like you have an unpaid parking ticket outstanding (or a speeding ticket...or...or). Would you like to settle it before you catch your flight?"
No pay, no fly.
It doesn't matter anymore the sheeple will be shaved till they freeze to death in the winter, at which point when everyone dies the problem is solved and the reset will be allowed to occur.
They will only allow a reset to occur once the machine trims the fat (namely everyone they want to die, dies).
Until then you will be contempt watching an 150lb overpaid asshole fight tiny asian men in a ring as a distraction.
but what a deal to borrow at a negative
interest rate, man, those people are brilliant
and fortunate. i wish i could do that
too but i'm just not that smart-enough.
but what a deal to borrow at a negative
interest rate, man, those people are brilliant
and fortunate.
take it to the next step .......
Refinance 500 billion 5% notes to -.01% notes.
The proportion of GDP going to pay interest just vaporized.
Old news.
Next article/blog.
""The combination of all of the above failed policies has in effect punished savers, and rewarded borrowers. We now live in a world the elderly can no longer collect 5-6% interest on their savings accounts."
5-6% interest has probably been gone for 10 years now. So this is news to anybody? Remind me to stay away from Ice Cap.
it's not as unrealistic as you think....
In the days of gold you'd pay to store gold... now in the days of electrnically created money that amounts to little more than Xbox credits why should you earn interest just to have it sitting ?
When capital was scarce, people would pay interest to borrow money... fine... but capital is not scarce now... new cars flash about on the roads, most houses have huge TVs, most people- even homeless are comfortably dressed, with new shows and new coats... the world is awash with capital....
get the govt. big brother out of the way and everyone will earn, but 10% for doing nothing on a deposit account ? come on... that was only realistic in a capital scarce envinronment...
Capital is scarce. It's just the central banks tricking everybody into thinking it's not.
Going off the grid never sounded better after reading this article.
The fucking we are in today would be impossible were Libertarian-ism the dominant political philosophy.
Ah well.....
As I understand it this world has been a disaster from day one...Why would it change?
Same shit..Different toilets right?
Libertarians as the dominant party? You are tripping out.
"global government debt is increasing exponentially"
And yes negative rates so they can steal money.
Play with the unemployment rates and pushing people off unemployment insurance. Until riots.
Keep buying that Apple crap and make the elitist happy
Negative interest rates amount to the international banker class spitting in the face of the bourgeoisie,
you know-all those uppity little trades people that have been such a pain in the royal bankers' ass for so long.
Thus with a most threadbare academic palimpsest of 'stimulus' the savers and strivers get savagely economically raped.
Thus have they deconstructed the time value of money: the money has no value and neither does your time. If you unwisely choose to save you will be penalized. Your aspirations, your freedom and your autonomy are all offensive to the money master class.
Like it or not, total global debt must grow faster than global GDP. Even worse, the debt rises a lot faster than net global domestic product. Society may be more just after a debt purge, but it won't be the high consumption paradise of today.
Shouldn't negative interest rates hurt the 1% elitists most of all?
No, because the 1% have their money in tangible assets and if they have cash it is not in the bank. If it is in a bank it is in a private bank in business just for them.
Here is the economic problem that is partially missed:
Take the first two points which are essentially that government spending is out of control. No government has to run deficits. What they have to do is make hard choices, cut spending and stop promising more free stuff. The unwritten message is that they do not have the will. That tells you volumes about our systems of government, our political leadership and even our people.
The economic point is that with record demand for money, money should be selling for record high prices, right? The supply of money, especially tax money is short so governments should be paying a premium for it. This is basic Adam Smith stuff.
The only thing that would keep bond prices low, record low are record demand compared to the supply of bonds. Record demands would indicate that people have no confidence in equities or the supply of bonds is very small or both. None of that is true.
Therefore, you are left only with government manipulation which is essentially organized fraud. Like all fraud it is self serving. It is not for YOUR/OUR good. It is for their good.
Fraud never ends well. There is no tapering down a Ponzi scheme or a fake investment or a deadbeat debtor.
Had an interesting conversation with a cabbie is Scottsdale recently. He was originally Polish and lived in Greece, Italy and many other European countries before immigrating to Arizona where he resided for the last 24 years. He claims he has recently paid 200,000 to some Australian government bank to immigrate to Australia (some type of 5 year bond) as he believes the US is in certain decline and will end up like Greece down the line. Why he believes that Australia will be better off was unclear.
I asked him how he planned on getting his assets over there when there is hardly an international bank that will deal with an American and the US government wants at least a 15% cut upon leaving. He says he is going to apply for a visa and then jump down the line giving the US no warning as to his wish to vacate the sinking ship, that he has carried 10,000 in cash everytime he flys there which is allowed but he still chooses to separate cash in different locations and uses tinfoil to surround the money then surrounds that with postcards. Some funds he has transferred into Australian friends account.
He claims that there are a million ways to still move cash as any savvy border jumper is aware. He is of the belief that gold is "a Zionist Jew conspiracy" and cash is the means to freedom if you wish to be mobile. Interesting, you know what they say about when your cabbie start talking investments.
Why trust a Polish cabbie on his word? 200 grand? 10 grand in his pocket? He must have charged stupendous fares for the last 24 years. And he'll be too old to emigrate to Oz. 40 is the limit. As to his opinion of "gold being a Zionist jew conspiracy", come on, Poles are generic anti-semites. Gold had been a currency for five millennia when the first Zionist enjoyed gefilte fish.
Sorry, your statement about age limit for immigration to Australia is false. Australia uses a points system to evaluate multiple factors of potential immigrants. That system does give more points if you are a young adult compared to an older one but also takes account of other factors such as education and wealth. See for instance https://www.immi.gov.au/skilled/general-skilled-migration/pdf/points-tes... which shows there is not an exclusion at 40.
Obviously the cabbie has not been following what the Abbot government wants to do with excess savings. Abbot is going to tax savings so as to help out families and small business. In reality Australia has over promised pensions to its people and with the collapse of the Chinese commodity boom, money is not flowing into Australia. Corrupt polititians will always protect government before it protects the people.
Actually that sounds like a Labor policy which the Abbott government rejected.
Certainly true there is a substantial downturn in Australian export revenue from coal and iron ore. However, people forget the massive LNG schemes in Western Australia (offshore gas) and Queensland (fracking) are just now coming on stream, with significant contracts in place. Those schemes have taken many years to build the infrastructure and it is about to pay off. People idly talk about the US shipping gas to Europe when it is years away from having the required infrastructure. Australia has it now and huge gas supplies to feed into it, and huge exports of coal and iron ore will continue, just not at the premium prices of the last decade.
Like all western countries Australia has significant pension commitments. Unlike most western countries Australia has two counteracting factors: compulsory superannunation and constructive immigration. Every income earner, on top of their wages/salary, has an amount equal to an additional 9% (going to 12%) paid into a superannuation fund of their choice (including DIY if you wish). While it is locked up until retirement (but can be moved between funds), it is owned and its investment management is controlled by each individual. That has been going on for about 20 years, so still a lot of older Australians with limited superannuation but anyone who started work over the last 20 years will have employer super contributions all their working lives. It won't eliminate pensions but is reducing their pressure and the effect will become stronger over time.
The other factor is immigrants. Except for the influx of illegal immigrants from the ME (mainly economic bludgers masquerading as refugees) which the current government has now stopped, Australia has been selective about immigrants emphasising value for the country. So it has tended to take in educated young and wealthy older immigrants (like the Polish cabbie mentioned). Few people realise that proportional to its population, Australia has long had a much higher number of foreign students (particularly China and India) at its unis than any other country, including the US. Part of the unannounced deal has been that those graduates have a strong chance of subsequent acceptance as immigrants. So Australia has a better continuing age balance than most developed countries and its younger immigrants are relatively high economic value ones compared to those flooding into US and Europe.
Sure the future is not all rosy, but a lot rosier than in Europe and the US. And the country still pays positive interest on savings accounts (currently around 2.5%) and income and wealth inequality are much less than in those countries.
With digital-only money beggars and street musicians will be wiped out and as it's illegal to feed them they will starve in droves, unless..., unless they opt for a student loan, of course.
The only thing this article and others show is how mindlessly stupid We the People have become. Even Idiocracy doesn't explain this.
Seeing the stupid little people are willing to pay to lend their tyrannical government, it's no wonder the Zombies are pushing to go cashless.
Call me stupid, but ... has anybody thought of trying some actual investment in new, innovative ideas ... you know, to spur job growth that would, in turn, do silly stuff like ... jump start innovative technologies ... provide basic needs like food, housing and medicine for people earth-wide, etc.?
I saw this work in a science fiction movie once.
Lots of people want to do that (not collectively, that always ends in shite). But they are reluctant, because President Pimp and his pinko comrades sit atop the economy like a giant tick, sucking blood and shitting on anything that might strengthen freedom or reduce government control.
in general you dont do shit for people who have no money to pay you for your effort.
we live in a world with the lack of payable demand and the abundance of productive capital
Zero Interest Rates
It's nothing but the wholesale deterioration in Global Collateral Value
“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” -James Madison
Confiscation is underway. I recently discontinued a Direct TV subscription and as a result was entitled to a $31.00 credit. Instead of recieving a check for $31.00 from DirectTV, I recieved an offer from CITI bank, as a joint sponsorship with DirectTV for a debit card with a credit of $31.00. All I have to do is link the debit card to my checking account in order to recieve $31.00. Of coarse I objected because I paid my DirectTV monthly charges by check and expect a refund by check as well. Just an example of what is going on. Larry Summers must be on the Board of DirectTV
Report them to the Attorney General. This kind of shit plays well with election season coming.
save the planet and the environment today - shoot a poltician
My daddy's daddy lost what little money he had attained in junk bonds during the Great Depression. Yup! I know how that works out! That's why I looked to shorting high yield but the etf of that won't give me enough pop so I just bought more uvxy to go with my faz. I have other stuff but since I don't outright play options market... That is all I got....
Cant agree on the central premise that perpetual govt deficits, exponential debt growth, or ZIRP govt bond rates - three of four signs in the article - are signs of a problem under the current world fiat currency, fractional reserve banking and central banks.
Perpetual Govt deficits are an unavoidable feature of debt based money that can only be temporarily masked by mercantilism. If there werent deficits there would not be enough base money inflation to service the previous round of currency creation's interest payments. Exponential debt growth is the inevitable result.
Acces to ZIRP govt debt is why governments accede to such abusive systems in the first place.
Only the failure to grow is a real issue for the Keynesians...but that too is an indivisible feature of their system. It is the very nature of theft to redistibute from the productive to the unproductive. And 'free money' is the heart of this system... Except it collides with the first law of thermodynamics. You cant get something for nothing. So 'free' money isn't free. It is at the expense of the productive...theft.
When productivity is starved, growth slows or reverses. Simple as that.
These aren't signs that Keynsianism failed. They are signs it is working.
It was simply never meant to benefit most of us, but rather to be at our expense. It is working perfectly.
We're sorry, it was all a terrible accident that your wealth and way of life disappeared.
Insincerely,
The FED
I remember from my youth reading a Kurt Vonnegut novel with more or less this premise. Automation has made a large part of the population redundant, so they exist in a kind of welfare poverty, similar to 1950s Britain.
"... central banks and governments have clearly decided to absolutely crush savers and in favour of borrowers."
Central banks effectively control governments, as the best organized gangsters controlling the biggest gangs. Their entire system is based on LEGALIZED COUNTERFEITING. The "borrowers" are necessary to allow the creation of "money" out of nothing as "loans." Since the financial crises of 2008, there have been less and less entities which are able and willing to "borrow" enough "money" made out of nothing as debts, and therefore, central banks have more and more stepped into that breach, by taking over creating more and more of the public "money" supply out of nothing as debts, for larger and larger entities which were supposed to be the "borrowers" responsible for those debts.
Thoese who benefit from being able to make the public "money" supply out of nothing as debts have leveraged up & UP their ability to corrupt governments, in order to ratchet the reinvestment of their profits from frauds into more frauds, through FUNDAMENTALLY FRAUDULENT FINANCIAL ACCOUNTING SYSTEMS. As numerous Zero Hedge articles have explained, there are larger and larger groupings of greater and greater indebtedness, which overall are becoming more and more fragile and unstable.
It is politically impossible to correct any of those problems in a political economy based on enforcing frauds, because of the degree that nobody wants to do that in proportion to how much they have benefited from being able to participate in profiting from those frauds being enforced. The "savers" were those who were living inside of the shrinking world where production mattered, while around them the world based on the ability to make "money" out of nothing as debts grew at an exponential rate. The "savers" continued to believe in the old-fashioned ideas about what "money" was, (or ideally "should" be).
To repeat what idealized money should be:
Most of those who face the kinds of FACTS outlined in the article above then still tend to wish that "money" would be what it "should" be. The most commonly proposed sets of "solutions" to the problems are those based upon idealized versions of what "money" ought to be, with the differences between those being the range of different emphasis upon the different idealized aspects of what properties good money, that was sound and honest, ought to manifest.
All of those kinds of approaches to the problems with the ACTUAL political economy being based on ENFORCED FRAUDS are barking up the wrong tree!
The only realistic definition:
Money is measurement backed by murder.
Political economy operates inside of human ecology. The debt controls are backed by the death controls. Furthermore, human ecology operates inside of the greater ecologies of the environment. However, NONE of those truisms are allowed into the mainstream understanding of "economics," nor the idealized notions about "money," BECAUSE those are dominated by the biggest bullies' bullshit social stories, which are based on being able to back up lies with violence, or enforce frauds, in ways whereby, for generation after generation, people have adapted to accept the overall situation of DEBT SLAVERY, despite that those systems then drive themselves towards developing numbers which become debt insanities. Since, in the real world, money is measurement backed by murder, the runaway debt insanities are going to provoke death insanities, as the only politically possible ways to resolve the problems, which otherwise shall never be publicly admitted nor addressed.
The essential problems are that the most socially successful strategies throughout human history have been backing up deceits with destruction, and enforcing frauds. Those who were the best at doing that became the most wealthy and powerful people, who were able to control the opposition against them, so that their opposition promoted the same bullshit stories as the biggest bullies wanted to be promoted. More realistic, radical resolutions require embracing the paradoxes that governments are necessarily the biggest form of organized crime, which exist to the degree that the opportunities for organized crime exist.
Personally, I have always been in favour of getting rid of anonymous cash, and I do not have a problem with totally electronic "money." (Albeit, with a more redundant and robust electronic network upon which to run that.) However, I ONLY say that inside the context that enough people understood that money is necessarily measurement backed by murder. The kinds of solutions that I propose are based on attempting to more directly deal with the ways that the death control systems are crucial and central to everything else, and so, nothing less than better death controls can resolve our real problems.
Most of mainstream economics wants to regard economics as solely based upon production, while disregarding and discounting that the production of destruction controls production. The "savers" were those who were operating inside of the mistaken idealized views of what "money should be." Meanwhile, the Central Banks became the Kings of Fraud, by applying the methods of organized crime to the political processes, in order to capture control over governments, and effectively privatize those public powers. The supreme achievement of organized crime was to establish the existing systems of LEGALIZED COUNTERFEITING.
The "borrowers" are getting "money" created out of nothing as debts, while those who have the privilege of doing so derive awesomely amplified profits within the context of those fundamentally fraudulent financial accounting systems. OBVIOUSLY, simultaneously, the "savers" are being screwed. Furthermore, those "savers" are being screwed at exponentially accelerating rates, due to the inherent structure of the pyramid schemes that are manifesting through the runaway enforcement of frauds.
However, by and large, while the vast majority of people do not understand any of that, because they have been successfully conditioned to not want to understand that, while the few who do understand are within these dilemmas:
- The Rothschild brothers of London,
writing to associates in New York, 1863.
MOREOVER, the relatively tiny minority of people who DO understand that (BUT, do not seek to personally profit from exploiting their opportunities to make more "money" within that system), then tend to continue to promote the same old-fashioned bullshit about what "money should be: a medium, a measure, a standard and a store." All of those which promote those versions of what "money should be" tend to deliberately ignore how and why money IS measurement backed by murder. In that context, the article above illustrated what is quite the typical pattern on Zero Hedge by grossly understating that "there ís a pretty big adjustment in financial markets on the horizon."
The "adjustments" of globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs, have nothing whatsoever to compare those to at any previous time in known human history! DESPITE the profound progress in physical science, through paradigm shifts in areas like quantum mechanics and the special theory of relativity, enabling the existence of technologies like electronics and atomic energy, almost all of politics is totally dominated by old-fashioned religions and ideologies, some of which promote the false fundamental dichotomies between "borrowers" versus "savers," while then recommending the ideals that the monetary and taxation systems should become more balanced towards the interests of the "savers" rather than the interests of the "borrowers."
However, NONE of that is based upon a deeper analysis regarding how human beings and civilizations actually operate as entropic pumps of energy flows. Moreover, NONE of that appears to be aware whatsoever of the deeper ways that the biggest bullies' bullshit has dominated natural languages and the philosophy of science, so that pretty well everything is discussed in the most backward ways possible. The genuine theoretical solutions to the real problems would require applying general energy system concepts to understand human beings and civilizations. However, doing that has to penetrate THROUGH the looking glass of our Bizarro Mirror World, or go THROUGH the tunnels of deceits in our Wonderland Matrix, to sufficiently comprehend not only that governments are the biggest form of organized crime, controlled by the best organized gangs of criminals, but also, that they must necessarily be.
As typical throughout almost everything republished on Zero Hedge, the article above grossly understates "the biggest financial crime not talked about." Doing that kind of superficial analysis then proceeds through to presuming that there could be some "solutions" to those problems which are also similarly shallow. Nothing less than series of profound paradigm shifts in the philosophy of science, which then apply to political science, and thus, to the combined money/murder systems, are remotely close to perhaps coping with the existing systems of runaway electronic frauds, backed by the threat of force from atomic bombs.
The vast majority of people continue to presume that their common sense "understanding" of time and space is O.K., DESPITE progress in physical science having demolished that "understanding," and thus, enabling technologies to become trillions of time more capable and powerful, as demonstrated by the existence of globalized systems of electronic frauds, backed by atomic bombs. Human civilization is pumping itself up & UP towards having psychotic breakdowns due to too much successfully enforcing frauds, for too long, DESPITE that being able to back up lies with violence never stops those lies from still being false. More radical truths about the political economy ought to address the issues that the production of destruction necessarily controls production, and that, therefore, money is necessarily measurements backed by murders. There is no realistic way to separate the debt controls from the death controls that back those up.
There are no genuine solutions which can be based upon the banksters' bullshit about what "money" should be, which bullshit has been promoted by the economists who were the intellectual mercenaries approved of and promoted by the banksters, as well as by those less well paid economists, who operated inside the range of other controlled opposition groups, within the established systems of organized lies operating robberies, through which making the public "money" supply out of nothing as debts for "borrowers" was symbolic robbery of all "savers."
The ONLY genuine solutions are to correct the ways that the political economy has been deliberately misunderstood in the maximum possible backward ways, which were, in turn, aspects of how everything else was being misunderstood. While it should be obvious that political economies should be understood inside of human ecologies, and that the same energy flows through those, and the industrial ecologies, and the natural ecologies, and therefore, a better bookkeeping system would be based upon monetary systems which had standards based on measuring actual energy flows, that is not sufficient in itself without also including the murders that back up that money, as the expression of the production of destruction that controls production.
The "savers" are INSIDE of the established systems, in ways that most of them do not understand, because they feel like they do not want to understand. The "borrowers" are closer to the SOURCE of the public "money" supply being made out of nothing, as debts for those "borrowers." Pretty well NONE of them understand any of that in any sufficiently realistic ways, but rather, pretty well ALL of them want to continue to deliberately misunderstand that in the maximum possible backward ways. The banksters are currently the world's biggest bullies, and thus, their bullshit dominates how people think and communicate.
HOW THE OPPOSITION THINKS IS CONTROLLED.
"The absolute best controlled opposition is
one that doesn't know they are controlled."
--- Cognitive Dissonance.
Philosophically I have no problem with 0% interest. The problem I have is banks getting money for 0% and then lending it to people for 3% or 4%... or more. The banks take no risk. The debt-money was created out of thin air.
If the banks pay 0% to borrow money from people then people should be able to borrow money for 0%.
There is no need for banks and there is no need for interest rates over 0% in this disintermediated world.
Natural interest rates are nothing more than the cost of time (consuming today instead of saving for future consumption).
If you reduce the cost of time to zero (or below), then there are going to be consequences that you are not going to align with your philosophy, like say, the fact that it pulls future consumption forward. Or, if left unchecked, the inevitable running out of future to consume, which results in a catastrophic crash.
But there's nothing natural about 0% the BANKS are paying, so why is it only the consumer who gets fucked. And the banks are not lending much at 4%. try 30% motherfucker! Fuck the goddamned banksters!
I'm a domesticated revolutionary. I have nothing to complain about except that I have to do homework.
Methinks we will find out how far the American people can be pushed. Then push comes to shove and the Agency bullets start flying the folks will have the full message.
Eventually have to switch to bartering in other commodities.Would be great for silver and gold.I'll buy that quarter section of farmland for these gold coins.Thanks for the deal.