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"The Worldwide Credit Boom Is Over, Now Comes The Tidal Wave Of Global Deflation"
Submitted by David Stockman via Contra Corner blog,
If you want a cogent metaphor for the central bank enabled crack-up boom now underway on a global basis, look no further than today’s scheduled chapter 11 filling of met coal supplier Alpha Natural Resources (ANRZ). After becoming a public company in 2005, its market cap soared from practically nothing to $11 billion exactly four years ago. Now it’s back at the zero bound.
ANRZ Market Cap data by YCharts
Yes, bankruptcies happen, and this is most surely a case of horrendous mismanagement. But the mismanagement at issue is that of the world’s central bank cartel.
The latter have insured that there will be thousands of such filings in the years ahead because since the mid-1990s the central banks has engulfed the global economy in an unsustainable credit based spending boom, while utterly disabling and falsifying the financial system that is supposed to price assets honestly, allocate capital efficiently and keep risk and greed in check.
Accordingly, the ANRZ stock bubble depicted above does not merely show that the boys, girls and robo-traders in the casino got way too rambunctious chasing the “BRICs will grow to the sky” tommyrot fed to them by Goldman Sachs. What was actually happening is that the central banks were feeding the world economy with so much phony liquidity and dirt cheap capital that for a time the physical economy seemed to be doing a veritable jack-and-the-beanstalk number.
In fact, the central banks generated a double-pumped boom——first in the form of a credit-fueled consumption spree in the DM economies that energized the great export machine of China and its satellite suppliers; and then after the DM consumption boom crashed in 2008-2009 and threatened to bring the export-mercantilism of China’s red capitalism crashing down on Beijing’s rulers, the PBOC unleashed an even more fantastic investment and infrastructure boom in China and the rest of the EM.
During the interval between 1992 and 1994 the world’s monetary system—–which had grown increasingly unstable since the destruction of Bretton Woods in 1971——took a decided turn for the worst. This was fueled by the bailout of the Wall Street banks during the Mexican peso crisis; Mr. Deng’s ignition of export mercantilism in China and his discovery that communist party power could better by maintained from the end of the central bank’s printing presses, rather than Mao’s proverbial gun; and Alan Greenspan’s 1994 panic when the bond vigilante’s dumped over-valued government bonds after the Fed finally let money market rates rise from the ridiculously low level where Greenspan had pegged them in the interest of re-electing George Bush Sr. in 1992.
From that inflection point onward, the global central banks were off to the races and what can only be described as a credit supernova exploded throughout the warp and woof of the world’s economy. To wit, there was about $40 trillion of debt outstanding in the worldwide economy during 1994, but this figure reached $85 trillion by the year 2000, and then erupted to $200 trillion by 2014. That is, in hardly two decades the world debt increased by 5X.
To be sure, in the interim a lot of phony GDP was created in the world economy. This came first in the credit-bloated housing and commercial real estate sectors of the DM economies through 2008; and then in the explosion of infrastructure and industrial asset investment in the EM world in the aftermath of the financial crisis and Great Recession. But even then, the growth of unsustainable debt fueled GDP was no match for the tsunami of debt itself.
At the 1994 inflection point, world GDP was about $25 trillion and its nominal value today is in the range of $70 trillion—-including the last gasp of credit fueled spending (fixed asset investment) that continues to deliver iron ore mines, container ships, earthmovers, utility power plants, deep sea drilling platforms and Chinese airports, highways and high rises which have negligible economic value. Still, even counting all the capital assets which were artificially delivered to the spending (GDP) accounts, and which will eventually be written-down or liquidated on balance sheets, GDP grew by only $45 trillion in the last two decades or by just 28% of the $160 trillion debt supernova.
Here is what sound money men have known for decades, if not centuries. Namely, that this kind of runaway credit growth feeds on itself by creating bloated, artificial demand for materials and industrial commodities that, in turn, generate shortages of capital assets like mines, ships, smelters, factories, ports and warehouses that require even more materials to construct. In a word, massive artificial credit sets the world digging, building, constructing, investing and gambling like there is no tomorrow.
In the case of Alpha Natural Resources, for example, the bloated demand for material took the form of met coal. And the price trend shown below is not at all surprising in light of what happened to steel capacity in China alone. At the 1994 inflection point met coal sold for about $35/ton, but at that point the Chinese steel industry amounted to only 100 million tons. By the time of the met coal peak in 2011, the Chinese industry was 11X larger and met coal prices had soared ten-fold to $340 per ton.
And here is where the self-feeding dynamic comes in. That is, how we get monumental waste and malinvestment from a credit boom. In a word, the initial explosion of demand for commodities generates capacity shortages and therefore soaring windfall profits on in-place capacity and resource reserves in the ground.
These false profits, in turn, lead speculators to believe that what are actually destructive and temporary economic rents represents permanent value streams that can be capitalized by equity owners.
But as shown below, eventually the credit bubble stops growing, materials demand flattens-out and begins to rollover, thereby causing windfall prices and profits to disappear. This happens slowly at first and then with a rush toward the drain.
ANRZ is thus rushing toward the drain because it got capitalized as if the insanely uneconomic met coal prices of 2011 would be permanent.
Needless to say, an honest equity market would never have mistaken the peak met coal price of $340/ton in early 2011 as indicative of the true economics of coking coal. After all, freshman engineering students know that the planet is blessed (cursed?) with virtually endless coal reserves including grades suitable for coking.
Yet in markets completely broken and falsified by central bank manipulation and repression, the fast money traders know nothing accept the short-run “price action” and chart points. In the case of ANZR, this led its peak free cash flow of $380 million in early 2011 to be valued at 29X.
ANRZ Free Cash Flow (TTM) data by YCharts
Self-evidently, a company that had averaged $50 to $75 million of free cash flow in the already booming met coal market of 2005-2008 was hardly worth $1 billion. The subsequent surge of free cash flow was nothing more than windfall rents on ANZR’s existing reserves, and, accordingly, merited no increase in its market capitalization or trading multiple at all.
In fact, even superficial knowledge of the met coal supply curve and production economics at the time would have established that even prices of $100 per ton would be hard to sustain after the long-term capacity expansion than underway came to fruition.
This means that ANRZ’s sustainable free cash flow never exceeded about $80 million, and that at its peak 2011 capitalization of $11 billion it was being traded at 140X. In a word, that’s how falsified markets go completely haywire in a central bank driven credit boom.
As it happened, the full ANZR story is far worse. During the last 10 years it generated $3.2 billion in cash flow from operations——including the peak cycle profit windfalls embedded in its reported results. Yet it spent $5 billion on CapEx and acquisitions during the same period, while spending nearly another $750 million that it didn’t have on stock buybacks and dividends.
Yes, it was the magic elixir of debt that made ends appear to meet in its financial statements. Needless to say, the climb of its debt from $635 million in 2005 to $3.3 billion presently was reported in plain sight and made no sense whatsoever for a company dependent upon the volatile margins and cash flows inherent in the global met coal trade.
So when we insist that markets are broken and the equities have been consigned to the gambling casinos, look no farther than today’s filing by Alpha Natural Resources.
Markets which were this wrong on a prominent name like ANRZ at the center of the global credit boom did not make a one-time mistake; they are the mistake.
As it now happens, the global credit boom is over; DM consumers are stranded at peak debt; and the China/EM investment frenzy is winding down rapidly.
Now comes the tidal wave of global deflation. The $11 billion of bottled air that disappeared from the Wall Street casino this morning is just the poster boy—–the foreshock of the thundering collapse of inflated asset values the lies ahead.
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If that is true what you are saying that the Central Banks are now panic buying gold ? And that they also have unlimited purchasing power due to their unlimited power of creating money from thin air ? Then surely it should follow that the spot price of gold should be almost infinitely high ? So please explain , Einstein , why gold has been dropping for the last 5 years ? Ahh , they have been buying it all and supressing the price at the same time ?How exactly is that mathematically possible ? Or - is it that we are simply running out of gold bugs ? Or are they running out of money to keep the price up ? You guys have been fucking brainwashed big-time , when sea shells stopped being money I am sure there was a lot of resistance then too .....
Who said anything about "panic buying"? Try something other than a straw man next time.
And if you want to be taken at all seriously, I'd suggest not advertising your ignorance of the topic with the ludicrous sea shell analogy, and getting simple facts straight (Au hasn't been dropping in price for anywhere near five years).
I would prefer anybody does not take my advice seriously. I am not advocating any investment advice here. I am simply advocating some crazy shit as a TV repairmanwould , as somebody told me to stick to that, My advice: Hold some PM. Hold some Sea-Shell (if you can find them) , get yourself a decent bitcoin position and do some serious research on bitcoin. Bitcoin is going to fly mother fucker's , like it or not , it's gonna end up backing the world's money supply ...
It's a mystery to me why you (and others) believe that Bitcoin will "fly" when TSHTF, and here's why:
Confidence in paper and electronic promises will be crushed when the markets implode, and bank accounts are bailed in, etc. So how on earth do you imagine that yet another non-tangible form of wealth will suddenly be embraced?
Tinky - Love your comments but think Crazy Tech is right. We're already trading us bits and bytes. I do remember saying bitcoin will become JPM coin and a couple years later JPM investing in it, the article was posted here on ZH.
But I agree as trust erodes I think we will return to a PM standard for three or four decades. More in line with your thinking but we'll still use bits and bytes and most likely fiat paper but fiat wont be around in less than 50 years.
stick with crazy. after all that's a good description of thin air backs thin air.
KPrime - Thin air is already backing thin air. Where you been?
wahaaaat? there are still TV repairmen?
Not everyone wants to send everything to a landfill...
lmao, crypto - as in buried in the crypt - as in dead.
Since when does deflation mean everything is free? It appears that you're leveraged long on several commodities. You will eventually be right, but you might be broke before then. The market can stay irrational longer than you can stay solvent.
All commodities will be free in 397 days. Bitchez gonna freak going to deflation then hyper.....
"Yes, end of deflation and beginning of hyperinflation in anything required to live and live well..."
That is mathematically incorrect.
Laws,
You are using the words inflation and deflation wrong. If you mean prices, then say prices.
Bubbles deflate on one side; supply stops on the other, then hyper-inflation for basic necessities take over.
"Bubbles deflate on one side; supply stops on the other, then hyper-inflation for basic necessities take over."
There was no hyperinflation from 1929-1932. There was no hyperinflation after 1932 either.
There are only a few of us on ZH that understand the definitions of inflation and deflation.
That's quite true. But in the context of a shrinking supply of fake debt money, an ever-increasing proportion of this money will go into paying the interest accrued on it. There won't be absolute inflation from this system, but relative inflation - the proportion of money going to bankers grows, while the amount circulating in the real economy shrinks. It goes wihout saying that this is an untenable situation.
obobobobobobobobobobo is it safe to breath yet?
Enron was petty cash stealing compared to what's going on now.
We prefer cash.
is there a difference between petty cash and regular cash? or am I just being petty?
When youse spend youse future incomes, youse pay the piper in the end.
The future called and demanded its money back.
Good luck collecting on all that debt.
It should be fun.
You mean Lady Lagarde can't bail out Ukraine, Draghi can't print his way into the EU like at the battle of Anzio for Rome?
You mean that my bottle of wine will cost less next year?
Quite honestly we need a debt jubilee like the IOC needs to clean out the toxic legacy of medals given to doped mules.
The same guys who say they will clean out the IOC are those who say they will clean out the world economy of corruption.
Its time the deflation hit the IOC too, just like it should hit the financial world between the eyes.
zh, good post!
INDEED! I LOVE DEFLATION.
Won't be "deflation" in the DC US.
Will be supernova-inflation.
Liberty is a demand. Tyranny is submission..
"Brother, can you spare a ten pound bag of money?"
Well, maybe not quite yet. A matter of timing.
- Ned
"Won't be "deflation" in the DC US.
Will be supernova-inflation."
Yes there will be deflation. Every cycle has two phases. Burst credit bubbles are deflationary.
Yes. The 40+ year credit bubble was the inflation. Inflation = increase in money supply (including credit).
That part is over. Next comes deflation = decrease in money supply.
All that money created out of thin air will go POOF back into thin air. Well, not all of it, but a lot of it.
We're on a slow (if we're lucky) unwind back to pre-credit bubble standards of living.
Deflation... yes at some future point in time.
After some super special hyper-inflation The un-fed and all CB's will unleash all the paper fire hoses first... and furiously.
No central bankster is gonna lie down and take the big "D" without a bare knuckle fight!
Defflation first, they need cover to print to hyperinflation.
"You demanded we do something".
"After some super special hyper-inflation The un-fed and all CB's will unleash all the paper fire hoses first... and furiously."
No, no, no. The paper fire hoses have already been unleashed and they aren't working, even in Japan.
They'll devalue against the SDR. That's been the playbook for 10 years or more.
There was a popular phrase during the Reagan aministration that I am sure Stockman remembers: "There he goes again..."
Only this time it can applied to Stockman himself when he goes off on blaming the Fed for the credit bubble. Admittedly, the Fed failed to fulfil its regulatory responsibilities. Greenspan, having learned his lessons at the knee of Ayn Rand, was opposed to regulations. But most of the blame for the credit bubble has to be laid at the feet of corporate management. Ever eager to pad their own bonuses, management borrowed, not only to invest in expansion, but to buy back their own stock, thereby inflating reported earnings per share.
But most of the blame for the credit bubble has to be laid at the feet of corporate management.
Why did they borrow so much? Could it be that rates are absurdly low?
sschu
and debt without innovation is eventually overcome by events and everpresent gravity, corruption and rust.
Sure,
It couldn't have been the tidal wave of money breaking in their competitor's offices, or the negative real interest rates that LITERALLY make borrowing money to buy stuff you don't need cheaper than putting it in a bank, investing it, or even stuffing it into a safe.
Couldn't be any of those things. Nope, they just got out of bed one day and in unprecedented synchronicity said, "Today, we will buy back shares."
/SARC OFF.
The CBs were the instruments of runaway monetary capitalism's liquidity that the Oligarchs who ran "supply side", along with their crony Reagan/NWO/Clinton political cabal, needed, to fuel their hubris as the financial Nabobs of Pax Americana.
The Shamans of CB, all hired from the best "nut job" Ive league egg-head houses, elitist hatcheries of capitalism without checks and balances, were just the "fix it" men, like Stockman, working for their bosses who made and bent the political and economic rules to which bowed the monetary line. Its wasn't the Other way round, UNTIL the debt bubble owned the Oligarchs. And that happened around 1994 if this time line is right. That is when GS took over the shooting match as engineers of the monetary line to spike the WS asset cake.
But don't shoot the Shaman shoot his boss who said repeal Glass Steagall just to please GS, Citi and Sandy Weill.
Shamans just work the broom sticks in the kitchen.
Please bring Deflation to Melbourne Australia......i'm already in a personal depression.....but i want the deflation.
Deflation my ass I'm paying double the price for food, services, fees and what not . If this is deflation were fucked .
Got that right,. we haven't seen the hyper inflation yet. Its going to get real ugly before anything deflates.
"Got that right,. we haven't seen the hyper inflation yet. Its going to get real ugly before anything deflates."
You aren't going to. Taxes have been going up. Can't hyperinflate anything if government is sucking the money out of your pocket before you can spend it.
Bullshit, the SNAP program can't grow forever. that's where everyone is ending up once they can't pay their bills or taxes.
The rich and their elite ho's who wreaked this devastation should pay with their heads spiked on pikes around the DC beltway.
First you gotta get by their army, navy, airforce and marines...fbi, cia, nsa, state police, city police, marshals, sherifs and dogs.
Give me a call when you get thru, I'll bring up the rear.
Don't they have to keep the asset prices high to keep the derivatives market afloat? QE time or ZIRP 2.0 coming up maybe? It's okay with me either way I am going to Kiosaki me some container car slums, bullish!
Not even CLOSE. We/you haven't even SEEN the tip of the iceberg yet, much less experienced it.
Buying more chicken feed this week. Will see if deflation has hit corn/oats/wheat.
Chicken feed is always up for some reason. More people now have chickens?
Good idea to hedge your bets. Can't eat gold.
Yes, it's up, mostly organic, soy free, corn free though. Grow your own feed, and fucking free range for christ's sake in chicken tractors or egg mobiles. That's resilience.
Chickens aren't meant to sit cooped up. We spend very little on chicken /duck feed in the summer on HARD ground. There's plenty of grasshoppers though.
But, but zhedge
What happened to all the inflation and gold buggery that you were so sure of?
Actually, that is as close to a crime as internet underage cld Pr0n, so Z/H avoids it like the plague.
N'est ce pas?
- Ned
LOL! Not many will get this one ... so I'll help: http://www.urbandictionary.com/define.php?term=bugger
This is how The Great Red Dragon (Serpent, Snakes In Suits) works; first it slimes the victim (with money) then devours it. That's why the serpent is used as that symbol. Even the Maya rulers had a serpent bar, used to indicate their power. Of course they're gone, but that doesn't mean other sociopaths don't try it.
It's all in the playbook leading to a one world currency. All they have to do is figure out when and where and time it right. Before you know it, everyone will be looking down in their hand at an EBT card that says, "World Bank" on it.
Deflation where the bankers can buy everything up pennies on the dollar and the rest of us have to put up more and more each month on rent, insurance and food.
I don't want to here more about deflation scumbags. Its war.
OAS will be the first big shale to go BANKRUPT.
Right, so don't invest in companies that produce coal, steel, copper, oil, cotton, wheat or any commodities, but only invest in government bonds and financial instruments and of course banks. Got it.
"The Future is Stupid."
So the Fed and the other CB's will fight the new deeper deflation with more money printing. Actually the USA which is the locomotive of the world economy will go back and print fiat money like an old fashioned steam engine, untill hyperinflation will make this train fly like Enterprise.
Pretty simple, seems to me.
There's definitely deflation. There's been deflation since 2007. You only have to look for it because it is definitley not stationery.
The Fed WANTS inflation. They're not getting it.
Tehy're lending money at ZERO% interest. They know their money is worthless.
The con is to make people believe that the money is worth more than an/any asset.
It's not working, or, it's working to perfection.
Borrow thier money at 0%, as much as possible. If there is a jubilee, collapse, whatever, chances are you'll be so small as to hardly be noticed. You'll skate.
Or, you may actually make more money with their money for a while, and then buy MOAR hard assets.
Play it. Believe me, I missed the boat for six years and I'm not about to get sucked under by a few obvious economic casualties occuring on anearly daily basis.
If it really is a crack-up boom, stocks should soar. The worthless money has to go somewhere.
OK, I'm out in left field. Good luck. Like I've been saying for the last six-seven years, buy land, PMs, solar, tools, vehicles, seeds, survival gear.
Calling a Mises terminal crack-up-boom is hard. There may be more twists and turns on this ride before it blows off into hyperinflation. If you over-lever yourself you're fragile, and if there's a short term turn, you're fucked. debt is leverage and it goes both ways.
Even the best can blow up. Don't blow yourself up.
Hard, yes, but I think we're getting close. We seem to be stuck in ~7-8 year cycles, and there was no boom in the real economy during the current boom-bust cycle. If we go down further from where we are today, it will be real pain. IMO, there is not enough structural integrity left in the system for it to sustain itself in another real downturn. TBTF has gotten TBTFer, which means that it would take a lot more printing to bail them out. Several problems are rearing their heads all at once:
Puerto Rico
Greece and the rest of the PIIGS, and France
HY Credit in the face of declining commodity prices (this could actually nuke the stock "market")
China is starting to crack up due to its malinvestiment.
Sub-prime auto + student loan bubbles are getting stressed
EMs are cracking up
Japan
unaffordable housing in the face of declining real wages for the masses
Increasing geopolitical instability in MENA
Lack of reinvestment of petrodollars into USD denominated assets
etc...
Any one of those, and probably several other things that aren't coming to mind right now, could come back and bite us due to the globalization of the economy. We might be able to deal with 1 or 2 at a time, but if 4 or 5 hit us at the same time, we're screwed. In fact, I bet if 4 or 5 hit us, all of them will in a giant chain reaction.
Time to keep a sharp eye and be ready to batton down the hatches at a moment's notice.
Nothing says deflation like record high stock/property/art/meat prices. Nothing.
you forgot education and healthcare costs...
Oh yeah... thanks... also property taxes/car insurance/water... you know.... luxuries.
"look no further than today’s scheduled chapter 11 filling of met coal supplier Alpha Natural Resources (ANRZ). "
Success liberal whackjobs, Obama and his minions dancing in the street. China can pick all these energy resources for pennies on the dollar.
King Obama wants to get rid of dirty energy and replace it with wind and solar. Maybe he can outlaw power tools as well. We can go back to peddling sewing machines and hand-crank drills.
API August 3, 2015, 715p EST On the heels of President Obama's bold mandate to reduce emissions in an effort to forestall global climactic change, the EPA will mandate that all citizens of the US wear flatulence reclamation units to prevent toxic gaseous emissions escaping into the atmosphere from the human body. Likewise, all citizens will be required to acquire and utilize reclamation units on their pets and domestic livestock. This regulation becomes effective immediately...
PS As to your peddling sewing machine, I flashed to Edgar G Robinson in Soylent Green and thought, "yep that's how we'll be generating power in our homes too thanks to Prez Obozo".
There will be no 1930s style deflation or very, very little deflation over-all (unless your numerator is gold that is). It's incredibly easy to stop deflation. You just fire up the printing presses or devalue.
The moment FDR decided to re-peg the dollar at a lower value against gold, deflation ended that day...
Deflation may appear in an ephemeral way, but will not last a week. If it did, the US government would be immediately insolvent. What is good for the fed, banks, and government is what will happen, and that's inflation, then a gold blow-off top.
At this point and based on 2000 years of monetary history, a complete loss of faith in the currency, i.e. hyperinflation is most likely. That is the end-game. The trick is to stay in the game long enough until that happens.
"The moment FDR decided to re-peg the dollar at a lower value against gold, deflation ended that day..."
Yes, remind me, what the fuck is that promissory note "pegged" to now?
NOTHING, yes, hyperinflation it shall be.
Global fucking Weimar, there will not be any place to run to, period.
If you have a big garden / food forest, you could go there. That's what I plan to do. It's out my front door.
Here are some more signs of a coming recession.
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record...
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
http://www.zerohedge.com/news/2015-07-27/when-will-we-ever-learn/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
yep, any decade now.... zzzzZzzZZzzZzzzz
Cops love steroids,
Keep calm and roid rage on!
You are missing the small picture. Buy buy the dips in s&p and russell2000
Bubble in pessimism, pet rock gold, barbarous relic, privacy is terrorism, you cant eat gold, you cant eat silver, the dollar is strong, and my favorite - the GLD is exposure to gold.
Bubble in pessimism, pet rock gold, barbarous relic, privacy is terrorism, you cant eat gold, you cant eat silver, the dollar is strong, and my favorite - the GLD is exposure to gold.
E N E R G Y D E F L A T I O N
The consequences of 120 years of voracious capital destruction on a truly mind-boggling scale are finally here.
"The central banks [have] engulfed the global economy in an unsustainable credit based spending boom, while utterly disabling and falsifying the financial system that is supposed to price assets honestly, allocate capital efficiently and keep risk and greed in check."
Nailed it
WHERE’S THERE A CRASH? WORLD ECONOMY COLLAPSING!!! - HEADLINES JULY 2015 http://forum.prisonplanet.com/index.php?topic=100571.msg1532133#msg1532133
I saw Stockman in like 1994, but don't know the date.
The difference is since that time, David Stockman, who I can't speak for, now agrees it is "One Party" who run this country and it is Racketeering/Corruption/Cronyism/Conflict of Interest/Lack of Term Limitation/Gift Giving in Politics.
There probably is one major issue that I would differ with David Stockman, but I don't mind or really remember.
Now, Stockman talked about 1994 conditions and the evil of people like Bill Clinton that had power. He was ahead of his time even if he didn't know if it was Republican as well as Democrats.
Not much has changed since 1994.
The Exponential Spending of the Federal Government and the Degree of Fascism is Stunning. Absolutely Stunning. No one could have see the survival of the FED, the Banking Lobby, the Scale of the 2008 Financial Crisis, the Level of Corruption in the US Congress to pass Deregulation Bills that transformed power from people to Transnational Corporations and to US Wealth to Off Shore Wealth.
Lessons:
1. We have one Party System based on Money Power over Legislation
2. War is a Racket
3. Privatization is a War Racket or triple the cost
4. US Govt has been taken over by long succession of Coups
5. We only see half of what Federal Dollars are going
6. Government & Corporations have merged to allow corporations to do government work and preserve secrets, do secret work, have access to personal information and to spy or conduct military activities
7. the US Press and EU Press is owned by Insiders that run the Government
8. the world is about winners and losers, you have to chose if you will join the government and support it or find some other kind of employment
9 there seems no limit to where govt will intrude and exact its power to control outcomes, financial markets, interest rates, domestic spying, starting wars, suppressing governments and people overseas, suppressing industries, utilities, inventions, education, history, and even small business even though small business is the core of the US Economy.
Nuff Said.
People 275 years from now are going to need energy when the next ice age starts. Then they are going to dig up all that shit that the greenies kept buried under their climate proclamations. They are going to toss all these rules into the ice filled waters of the gulf of california and burn coal like you wouldn't believe.
We ARE in an Ice Age right now. Global temperatures have already plateaued. The sun is going quiet as Solar Cycle 24 ends. Solar Cycle 25 may have no sunspots. Get ready for much colder weather by 2020, if not earlier.
Evil POSEs like Greenspan and Bernanke knew they were destroying America. The POSE Yellen knows she's destroying America. None if them care so long as they receive their 30 shekels of silver.
I say their heads belongs spiked on pikes along the DC beltway accompanied by the rich, POSEDs and POSERs.
POSE—Piece Of Shit Elite
POSED—Piece Of Shit Elite Democrat
POSER—Piece Of Shit Elite Republican
Then we outlaw: political parties, corporations having rights, campaign contributions, bribery of officeholders, the incestuous revolving door between politics / corporations / government bureaucracy, and more. It's a big list.
to avoid deflation they will print moaaaarrrrrrrr money
And there I removed 400k from the system by repaying debt. Probably cut the legs of a loantaker at the same time. Thats how the system works. Thanks MIT banksters for being retards.
when do the bankers who floated this go to jail for fraud?
Five minutes after Hell freezes over....or the next time Obama tells the truth. Whichever comes first.
clearly no understanding of how monetary policy works. You were going on about hyper inflation a few years back....