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"We've Reached The End Of The Line; Now, The Game Changes"
Submitted by Raul Ilargi Meijer via The Automatic Earth blog,
Eventful days in the middle of summer. Just as the Greek Pandora’s box appears to be closing for the holidays (but we know what happens once it’s open), and Europe’s ultra-slim remnants of democracy erode into the sunset, China moves in with a one-off but then super-cubed renminbi devaluation. And 100,000 divergent opinions get published, by experts, pundits and just about everyone else under the illusion they still know what is going on.
We’ve been watching from the sidelines for a few days, letting the first storm subside. But here’s what we think is happening. It helps to understand, and repeat, a few things:
• There have been no functioning financial markets in the richer parts of the world for 7 years (at the very least). Various stimulus measures, in particular QE, have made sure of that.
A market cannot be said to function if and when central banks buy up stocks and bonds with impunity. One main reason is that this makes price discovery impossible, and without price discovery there is, per definition, no market. There may be something that looks like it, but that’s not the same. If you want to go full-frontal philosophical, you may even ponder whether a country like the US still has a functioning economy, for that matter.
• There are therefore no investors anymore either (they would need functioning markets). There are people who insist on calling themselves investors, but that’s not the same either. Definitions matter, lest we confuse them.
Today’s so-called ‘investors’ put to shame both the definition and the profession; I’ve called them grifters before, and we could go with gamblers, but that’s not really it: they’re sucking central bank’s udders. WHatever we would settle on, investors they’re not.
• The stimulus measures, QE, were never designed to induce economic recovery. They were meant to transfer private losses to public purses. In that, they have been wildly successful.
• China is the end of the line. It was the only economy left that until recently could boast actual growth on a scale that mattered to the global economy. Growth stopped when China, too, introduced stimulus measures. To the tune of some $25 trillion or more, no less.
The perhaps most pivotal importance of China is that it was the world’s latest financial hope. The yuan devaluation shatters that hope once and for all. The global economy looks a lot more bleak for it, even if many people already didn’t believe official growth numbers anymore.
Because we’ve reached the end of the line, the game changes. Of course there will be additional attempts at stimulus, but China’s central bank has de facto conceded that its measures have failed. The yuan devaluations, three days in a row now, mean the central People’s Bank of China has, openly though reluctantly, acknowledged its QE has failed, and quite dramatically at that. They just hope you won’t notice, and try to bring it on with a positive spin.
Central banks are not “beginning” to lose control, they lost control a long time ago. The age of central bank omnipotence has “left and gone away” like Joltin’ Joe. Omnipotence has been replaced by impotence.
This admission will reverberate across the globe. China is simply that big. It may take a while longer for other central bankers to admit to their own failures (though ‘failures’, in view of the wealth transfer, is a relative term here), but it won’t really matter much. One is enough.
What will happen from here on in will be decided by how, where and in what amounts deleveraging will take place. This will of necessity be a chaotic process.
Debt deleveraging leads to, or can even be seen as equal to, debt deflation. This is a process that has already started in various places and parts of economies (real estate), but was kept at bay by QE programs. It will now accelerate to wash over our societies like a biblical plague.
The Automatic Earth started warning about this upcoming deflation wave many years ago. I am wondering if I should rerun some of the articles we posted over the past 8 years or so. I might just do that soon.
It is fine for people to say that since it hasn’t happened yet, we were wrong about this, but for us it was never, and is not now, about timing. If you think like an investor -or at least you think you do- timing may seem to be the most important thing in the world. But that’s just another narrow point of view.
When deflation takes its inevitable place center stage, it will wipe away so much wealth, be it real or virtual or plain zombie, that the timing issue will be irrelevant even retroactively. Whether the total sum of global QE measures is $22 trillion or $42 trillion, its deflation-driven demise will wipe out individuals, companies and nations alike at such a pace, people will wonder why they ever bothered with trying to get the timing right.
This may be hard to understand in today’s world where so many eyes are still focused on central banks and asset- and equity markets, on commodities and precious metals, on housing markets. In that regard, again, it is important to note that there have been no functioning markets for many years. Those eyes are focused on something that merely poses as a market.
For us this was clear years ago. It was never about the timing, it was always about the inevitability. Back in the day there were still lots of voices clamoring for – near-term or imminent – hyperinflation. Not so much now. We always left open the hyperinflation option, but far into the future, only after deflation was done wreaking its havoc. A havoc that will be so devastating you’ll feel silly for ever even thinking about hyperinflation.
Deflation will obliterate our economies as we know them. Imagine an economy for instance where next to no-one sells cars, or houses, or college educations, simply because next to no-one can afford any of it.
Where everything that today is bought on credit will no longer be bought, because the credit will be gone. Where homes are not worth more than the cardboard they’re made of, and still don’t sell.
Where ships won’t sail because letters of credit won’t be issued, where stores won’t open in the morning because they can’t afford their inventory even if it arrives in a nearby port.
As for today’s reality, the Chinese leadership has been eclipsed by its own ignorance about economic systems, the limits of their control over them, and the overall hubris they live in on a daily basis. These people were educated in the 1960s and 70s China of Mao and Deng Xiaoping. In the same air of omnipotence that today betrays all central bankers. Why try to understand the world if you’re the one who shapes it?!
It was obvious this moment would arrive in Beijing as soon as the one millionth empty apartment was counted. There are some 60 million ’empties’ now, a number equal to half the total US housing contingent.
Beijing then heavily promoted the stock market for its citizens, as a way to hide the real estate slump. All the while, it kept the dollar peg going. And now all this is gone. And all that’s left is devaluation. As Bill Pesek put it: “China Adds a Chainsaw to Its Juggling Act”.
Ostensibly to improve the country’s trade position, for lack of a better word. Whether that will work is a huge question. For one thing, the potential increase in capital flight may turn out to be a bigger problem than the devaluation is a solution.
Moreover, one of the main reasons to devalue one’s currency is the idea that then people will start buying your stuff again. But in today’s deflationary predicament, one of the main failures of mainstream economics pops up its ugly head: the refusal to see that many people have little or nothing left to spend.
This as opposed to economists’ theories that people must be sitting on huge savings whenever they don’t spend “what they should”. Ignoring the importance of personal debt levels plays a major part in this. Any which way you define it, the result is a drag on the velocity of money in either a particular economy, or, as we are increasingly witnessing, a major spending slowdown in the entire global economy.
Seen in that light, what good could a 1.9% devaluation (or even a, what is it, super-cubed 5% one, now?!) possibly do when China producer prices fell for the 40th straight month, exports were down 8.3% in July, and cars sell at 30% discounts? Those numbers indicate a fast and furious reduction in spending.
Which in turn lowers the velocity of money in an economy. If money doesn’t move, an economy can’t keep going. If money velocity slows down considerably, so does the entire economy, its GDP, job creation, everything.
This of course is the moment to, once again, point out that we at the Automatic Earth define deflation differently from most. Inflation/deflation is not rising/falling prices, but money and credit supply relative to available good and services, and that, multiplied by the velocity of money.
When this whole debate took off, even before Lehman, there were only a few people I can remember who emphasized the role of deflation the way we did: Steve Keen, Mike Mish Shedlock and Bob Prechter.
And Mish doesn’t even seem think the velocity of money is a big factor, if only because it is hard to quantify. We do though. Steve is a good friend, he’s the very future of economics, and a much smarter man than I am, but still, last time I looked, stumbling over the inflation equals rising prices issue (note to self: bring that up next time we meet). Prechter gets it, but believes in abiotic oil, as Nicole just pointed out from across the other room.
So yeah, we’re sticking out our necks on this one, but after 8+ years of thinking about it, we’re more sure than ever that we must insist. Rising prices are not the same as inflation, and falling prices are but a lagging effect of deflation.
Spending stops when people are maxed out and dead broke. And then prices drop, because no-one can afford anything anymore.
We’ve had a great deal of inflation in the past decade or two, like in US housing. We still have some, for instance in global stock markets and Canada and Australia housing. But these things are nothing but small pockets, where spending persists for a while longer.
Problem is, those pockets pale in comparison to diving -consumer- spending in the US, China, Europe, Japan. Spending that wouldn’t even exist anymore if not for QE, ZIRP and cheap credit.
The yuan devaluation tells us the era of cheap credit is now over. The first major central bank in the world has conceded defeat and acknowledged the limits to its alleged omnipotence.
It always only took one. And then nothing would stand in the way of the biblical plague. It was never a question. Only the timing was. And the timing was always irrelevant.
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yep - the game does change - now the real $$$ printing begins
fed (& global central bank policy) = "when there is no way out, what do you do??? go deeper in"
That would seem to be right. I can't understand why all the pundits say there's nothing the Fed can do now.
They can PRINT! Inflation (or outright war) has always been the go-to solution when financially boxed in. By inflation I mean the classic definition of an increase in the money supply.
Never corner a badger who has access to a printing press.
I was beginning to think I'd make it all the way through one of Meijer's articles in agreement, but then he had to throw in an abiotic oil smear.
Is skepticism truly dead?
The "but" caveat is included so it seems that was not the author's belief. Maybe a more careful reading is in order and not the dismissal of something out of hand for one quirk. Just because I like raisins doesn't mean that my opinion of the fate of the world is wrong.
Unless they're California Raisins.
I like Brussels sprouts. Myself.
Marc Faber agrees with you! They can PRINT, and they will print & print & print. When that fails, and it will, they will take us to war.
Now, I believe Faber is right, when all central bank tricks have failed, the world's elites will take us to war. You can already see the war plans being drawn up and the battle fields being choose. From my Russian sources, I am told, and I am dead serious with this, "that Russia's leadership is convinced beyond any doubt that they will be forced into a major defensive war sometime in the not too distant future. I'm not talking they Think a war will be forced upon them, they are Convinced a collapsing economy across the west is going to cause the elites there to choose to make a war with Russia.
The reasons for making war when economies fail is well known. Marc Faber points out often that a western caused war is coming. I think Russia and Iran will be the enemies they choose to attack.
Agree with the article...China's breakdown is the game changer...
Lots of the details why in the link below...
http://econimica.blogspot.com/2015/08/chinas-collapse-is-last-straw-of-global.html
It may be a game changer, but I don't think for an instant that it wasn't one anticipated by those who control the global banking system.
Not Applicable - Correct. Central Banking is a business model. It is based on a public/private partnership structure.
Automatic Earth, Mish and a Prechter did not properly assess the model hence wrong debate in 2008. The debate is not inflation vs. deflation the debate is inflation then deflation the possible hyperinflation.
The timing for individual protection of wealth very much matters in understanding the CB model. That doesn't mean deflationists didn't have valuable inputs but saying timing doesn't matter is just plain ignorant.
Debtflation (Max Keiser I believe): Inflation for everything you need, deflation for the assets you have. Discuss.
East/West Kabuki:Thesis/Antithesis/Synthesis/=Create a dipolar 'power struggle' (red/blue, communism/capitalism, left/right etc), then synthesise the resolution for the desired outcome = global currency/MoE. Pic of Putin at the Wailing wali in Yarmulka here: http://www.collive.com/show_news.rtx?id=20655 The opening up of China by Kissinger and Co here (Corbett Report 297): https://www.youtube.com/watch?v=5M1KD7Dnq4s .
These are multi-generational games friends..
Saying "timing doesn't matter" is just a not-so-veiled jab at the "traders" and "investors" who are still trying to make a penny out of the whole mess.
A bit of high-minded snobbishness on their part, though it is true we are picking pennies in front of the steamroller.
Shit happens and we all know that 1929 was a huge pile of shit on the world economy. Now everything is much bigger and more tightly interconnected with trade the life blood of a majority of the world's countries, but instead of trying for a level playing field we've got rigging the markets in every way possible to gain the slightest advantage. The motto has become " I've got mine and fuck you". We need to go back to a gold standard or something a lot like it, but we won't get it without a complete system reset and TPTB will fight that to the bitter end....
Compared to the amount of claims on fictitious paper assets I would agree that deflation is in the cards, bone crushing deflation where even many holders of physical are forced to sell just to keep the lights on. If you can hold out long enough for the paper wipeout to clear and the printing press to overtake you may come out of this snake whole but you also may be dressed in a commie uniform or dressed as a SS Soldier
Now, all the hope has been transferred to Netflix. Buy BUy BUY!!! Cramer says so.
Greta apologizes to Chris Christie: ‘He did not hug Obama’
http://tinyurl.com/plo38hf
As we have seen and is written here, bailouts are NOT for the people but the banks. That is about done. Why would the global elite want to print money? Do they want the people out of debt? Do they care about the over-abundant masses?
Of course not! The collapse is planned and desired. They will take any form of depopulation that happens. Internal and international strife is already set up for this purpose. The rich have all the money they could ever use. Printing more won't do anything for them.
I reccd your post because i believe this is exactly what they will attempt. But if they do, Hyperinflation is certain in short order simply due to the mathematics involved.
Robert Prechter nailed the whole thing with his At The Crest Of The Tidal Wave.
This is the Eliot wave that corrects back to the Dark Ages. Who was the Club of Rome guy who penned The Coming Dark Ages? Roberto Vaca? Another visionary.... Almost 30yrs to get ready. Sure hope you didn't spend your time pyramiding your option plays into the Big Kill, as if that will ever pay even if you timed it to the T...
Investments used to be dependable and held. Life Insurers were "Sound As Gibraltar" or "Blue Chip". All sold out long ago... You're on your own kids, whether know it or not... The world Betrayed by those who owed it a fiduciary duty to "do no harm" to the nations, corporations, businesses, and professions they served... Yet, all could be bought for the song of fiat money...
The Top echelon make Big Jim Thompson's characters look like a kiddie movie cast. Such is what it takes, apparently, to grab for that gold ring...
"The world Betrayed by those who owed it a fiduciary duty to "do no harm" to the nations, corporations, businesses, and professions they served... Yet, all could be bought for the song of fiat money..."
Simple, true.
+100
Been hearing same shit last 5 years
Love your avatar. I thought there was a bug on my screen. Couldn't kill it. Heh.
If this pope is responsible for imposing a global tax, he's fair game.
Time to go turkey hunting.
I reccd your post but it is high time you realize organized religion is part of the fraud......one of the worst parts IMO.....as I beleive they get the poorest, least educated amongst us and thus so critical to expose the frauds, but no, they are now part of it. How do you think they build those collossal structures? The TBTF WS Banksters solicited the very pastors and "gave them' thru donations such taht you can not find it in their debt documents - they don't exist since TBTF WS got wise and just "donated" the funds such as to leave no trails. My personal experience below when i exposed what i knew to my local pastor.....
There are many folks in every society who either choose to not think for themselves for whatever reasons (not enough free time from their required 3 jobs, are very passive, uneducated, etc) or are incapable of such. Most of these people are good, hard-working folks who simply do not realize the implications of their inactions – personally and collectively to the country.
The Churches in the US are next in line for blame for their apathy or protection of self-interests (after the individual). Many of those people who are honest, hard working but refuse to educate themselves for whatever reason, also attend these Churches. These Churches KNOW the US Troika (US GOV + TBTF WS BANKS & FED RES + US MIC) have destroyed the US for their personal gains yet they refuse to call them out. Heck, I even had my church here in Dallas - WaterMark Church - accuse me of "scorched earth" policy for simply saying as much and ex-communicated me in writing!
I am a God-Fearing man but I will never step foot in an organized religious establishment again.....especially WaterMark Church……and I now understand why the fellow who posted years ago that, atleast modern day, if not all prior, religious establishments are established for, or eventually become, nothing more than a “Population Pacification Program (PPP)”!
Why does the vatican need its own bank anyway?
Trillions in global real estate alone.
This pope can shove his guilt up his fat ass.
"Why does the vatican need its own bank anyway?"
Why does the vatican need it's own telescopes...one named LUCIFER too? hehehehe
Chuck - I am not Catholic but I like this pope. Down to earth and uses reason like Paul of Tarsus admonished when reason is clouded by bullshit.
Id like to have my own bank - create my own "money"
"It is especially inhumane to deceive youth."
Imagery - Christ was a pandiest. It means all existence is interlinked which string theory is now supporting his supposition. Christ said he was not of this world, in another words an alien. Nowadays lots of science fiction and physics theories support that possibility.
He transformed himself into a being of light infront of the apostles. Something modern science is now working on to take the conscienssness of a human being into raw energy or light and project it faster than lights natural state. He never even mention evolution, it want even a debate to him. Moses oulined the sequence of evolution of our species 3,500 years ago. Darwin filled in some blanks.
But the Christian church is evolving far too slowly and does not discuss such exciting things. Instead, it promotes intellectual laziness. Doesn't mean I dont love Christ, for me it means I should explore more of how and why. Learning is relative.
If as a less advanced species I can add one micron of learning to existinal collective to our mutual enjoyment of being that becomes invaluable. Such thinking also flattens ones ego which is important to discovery.
The establishments of there day slaughtered Pythagoras, jailed Galileo and mocked Copernicus.
A couple people here said "you'll burn in hell" if you dont come to know Christ.
He said in Revelations to John that those that enter the kingdom of heaven helped the least of his or her brothers and those practicing religiosity wont. Going to heaven or not doesnt motivate me. This is OUR world and OUR time in this form to make better or worse.
While other dimensions have strong mathematical support by quantum theorists, this is our time and place to make it better. Those places to me will no doubt have there own new challenges and rewards.
Are you super duper high? Where do you see that central banks have lost control? The U.S. "markets" are still near all-time highs. Same in China. The entire world is bankrupt, but I don't see any chaos or mass starvation. Central banks will eventually lose control, but we aren't even close yet. My area is so clogged with construction vehicles, I can't even get around. New houses, apartments, condos and retail space is everywhere. This fake shit has a long way to go.
Exactly! Easily another 10 yrs to go atleast
You put a time stamp on this shit, it's coming though.
Gotta say 2015 is the end of the road...global credit is crapping out on a base of slowing population increases (and declining core populations worldwide including China)...all that's left is China to join the QE game and US to reignite QE but widen the buying far beyond bonds and MBS (likely even officially acknowledging this). But this is the last salvo as the disconnect between real stuff (real global consumer end demand for everything) and phony paper markets is set to become ludicrous and obvious to all but Janet and Wall St.
Here and now shit gets very real...just don't look for it in stocks or bonds or phony asset prices of anything...
When it does end, it will in a flash, but yeah for now.....new suv's/trucks/homes everywhere. The malls are packed, restaurants are packed, movie theatres are packed.
...Barry's getting packed, candidates are getting SuperPACed, a marxist nutjob joke candidate from VT is pack'n' em in, Huma's not feeling so humid these days, and a faux-populist corrupt billionaire demagogue would win the stupid party nomination if they held them today.
Freeshiter - Consolidation from weaker hands to politically connected ones is anecdotal evidence and can be misleading. Those in bubbles, work for .gov does not a macro or micro true analysis make. If we are going to talk ancecdtols last time I went out to eat was Applebees. Most of the crowd was over sixty.
No, you got it wrong. The LAST financial HOPE is to start WW3 immediately on a massive global scale.
Gosh, I feel so much better after reading this. Happy Friday.
there is another aspect that works in support of your (& mish, et al, even if he has been preaching it through the past seven years of monetary inflation) deflation thesis. fed induced artificially high prices create moar supply with a false market signal caused by zirp fueled speculators i.e. hedge funds. whether it be oil or other commodities, bullshit stock ipos, or junk bonds. then this line comes into play:
Spending stops when people are maxed out and dead broke. And then prices drop, because no-one can afford anything anymore.
which brings us back to a collapse as people can't afford products or bullshit stocks. in fact they must liquidate their meager holdings just to keep a roof over their heads. of course this won't prevent the bankers and politicians from pouring moar fuel on the fire and turning up the fraud even moar but the underlying rot will eventually give way.
I hear ya bangin7' ...but just like in 2008 ...all that "activity" (probably dubiously financed) can evaporate overnight.
I still expect simultaneous hyperinflation/deflation, just in different areas of the economy.
For instance, all of that leveraged construction will without a doubt be securitized and sold to Yellen Capital the instant it starts threatening to blow up.
Totally agree. Everything is mispriced, high and low. Reallife stuff will go up in price (or stay the same) while others crash in price. Anything that is a financial product will collapse, but things like bullets/bread/bullion will increase.
Its always the "end is nigh". Why should it be "different this time"?
Spending stops when people are maxed out and dead broke. And then prices drop, because no-one can afford anything anymore.
Well let me know when insurance & DR bills go down & college tuition goes down and my realestate taxes go down.
Seems some things are very sticky and need to be destroyed before the price goes down.
By any other definition, call it what it is. Stagflation.
Hello Authors
I do these, should be of interest
http://www.showrealhist.com/
http://www.showrealhist.com/recDJIAtoRD.html
Raul,
Good article but I think you give them just a tiny bit too much credit. These bastards will print....its' all they can do......and they would rather crash the currency, and even country as they've done in every priro recorded time in history, then write down a single penny of their fraudulent scrip, creidits, and derivatives.
Here my blog on the subject, and oil biz - my area of expertise since you appreciate teh ridiculousness in abiotic oil arguement - should you desire....
I post on investorVillagedotcom. Free site that i own nothing in so what i offer is free and without benefit in any way.
Create Free Account and id. Been posting here for years and have folks who will back my positions are prophetic in energy space that saved them big bucks. Access the Private Group via one of these two methods below.
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Sorry for confusion and delays but hopefully those 40-50 folks who have had issues accessing can now join us via one of the two above means. We look forward to your input and contribution to the Board.
Cheers - Imagery / Mark.
Fuck off.
Teh double-post ...
Timing is important, because the sooner it happens, the less time people have to prepare for the correction. The longer they string this out, however, means the correction is that much more destructive.
Either way, we're basically screwed.
ZH used to be a hyperinflation proponent against the likes of Mish, though he was from the start very articulate about this outcome. It seems that there is now a consensus on the eventual outcome, so now it is just a timing issue...
Apparently ZH contributors don't know what deflation is.
Consider me not surprised.
We always left open the hyperinflation option, but far into the future, only after deflation was done wreaking its havoc.
So years to go before we might get hyperinflation? Muaaahahahaha!!!
Spending stops when people are maxed out and dead broke. And then prices drop, because no-one can afford anything anymore.
So things like food, electricity, heating oil etc. will drop in price too?
BUY the DIP!
Welcome video sent by NASA to any ET's in the universe.
https://www.youtube.com/watch?v=17ocaZb-bGg
Chuck - Yes, our quest for our we alone or more specifically origination. Time stops at the speed of light. It raises a lot of interesting questions. If other life evolved back to energy 'God' may just be a temporary overseear to a repetitive, cyclical process with slight deviations each time caused in short by radiation. There is a theory in physics called the 'cyclical' theory. I subscribe to it but there are other theories of our origins and existance.
What are the facts? Three small devaluations is a very orderly manner, and then a small revaluation, doesn't seem uncontrolled to me. The Yuan has appreciated 35%against the yen recently, and all currencies for that matter due to its peg to the dollar. A small controlled devaluation is not the sign you think it is. It seems like a logical move. I'd be more interested to hear what thoughts are on the reason the SDR decision, gold holdings announcement, and the devaluation all happening in such close succession means. I think it means, they are sick of this western currency game and ready to lead.
It's too bad you haven't a clue about 'currency wars'.
Your sorry post compares the muzzleloading musket, ball and powder horn of the Revolutionary War with the Iskander/Yakhont of today.
Remember the end of the Trojan War? The Greeks feigned defeat and retreat. Sun Tzu would have called it a "deception" (he was way into deception). Well, the PBOC's devaluations are equivalent to that horse and its contents that the Greeks left behind.
And you have taken their retreat to your bosom, haven't you?
You don't appear to have a clue what a down and dirty currency war is. China's devaluations are having a greater effect on the markets of the West faster than those central banks can print their way out of.
Everybody has stopped talking about the money of Goldman Sachs et alia that is locked into the stocks they've been trading that have been suspended on the Shanghai Stock Exchange. Has Blankfein told you how much the Western banks have been trapped into the yuan in the Shanghai? And GS's trapped yuan will reflect the depreciation of the yuan if and when they ever get unsuspended.
But whatever he told was probably a big fat lie.
When things completely fall apart, remember, the Chinese middle class of 300 million are being fed by a billion farmers in the country.
The fabled American middle class of 250,000,000 are being fed by 1,400,000 farmers.
When the global economy goes belly up how many Chinese will still be eating? How many Americans?
America has been on top so long, they think they wrote the Rules of Currency Wars. (Like they think they wrote the rules of the Shanghai Stock Market.)
So the West is totally unprepared for Currency Wars Chinese style.
And you better get used to it.
The Trojan War was a fictional event. Kinda like our recovering economy.
A lot of Archeologists thought that too...until Troy was located!
The Fed has not lost control as long as it issues the currency. The Fed owns this. All of it. And it has the "Full Faith and Credit" of the Pentagon behind it.
The only deflation we will ever see will be at the Fed's discretion, and for it's benefit,,,at least until the day it's funny money is rejected. On that day, deflation will be nowhere to be found. On the contrary, green paper will blot out the sunlight.
The changing of gears within the systems of DEBT SLAVERY BACKED BY WARS BASED ON DECEITS appear to me to be cliched truisms at this point. I do not doubt that is the expected pattern. However, I do not think that anybody is fully able to imagine the magnitudes of the DEBT INSANITIES provoking DEATH INSANITIES which that changing of gears indicates.
As the article above stated:
The system based upon governments ENFORCING FRAUDS by privately controlled banks was always based upon being able to back up legalized lies with legalized violence, which always suffered from its inherent problems that being able to ENFORCE FRAUDS never stops those from still being false. Of course, that does not mean that the established systems will not endeavour to continue to do so, even if that means risking world war with weapons of mass destruction.
Monetary policy driving wilder and wilder oscillations between periods of inflation, then deflation, probably finally ending in hyperinflation, are due to the deeper mechanisms that the entire political economy is based upon ENFORCING FRAUDS, and hence, the inherent paradoxes due to that becoming more psychotic, the more socially successful it is able to become, due to those inherent paradoxes that social success based upon being able to back up lies with violence is the manifestation of excessively triumphant organized crime, becoming runaway criminal insanity.
As above, so below. &
As within, so without.
Nobody knows what happens to the social pyramid systems based upon being able to back up lies with violence after those become globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. However, in that context, I think it is worthwhile to REPEAT the deeper points, that go beyond the superficial truisms that predict CONTINUED DEBT SLAVERY BACKED BY WARS BASED ON DECEITS.
Generally speaking, our civilization is so totally used to being based upon established systems of legalized lies backed by legalized violence, that those tend to mostly be taken for granted. However, a deeper analysis of those ENFORCED FRAUDS demonstrates the ways that our civilization operates with attitudes that tend to deliberately ignore the principle of the conservation of energy, and misunderstand the concept of entropy in the most absurdly backward ways possible.
By and large, our civilization has become so totally based upon the long history our political economy being built upon governments ENFORCING FRAUDS by privately controlled banks, that almost nobody appears to notice and discuss the deeper issues regarding that, but instead, tends, at best, to focus only on some of the more superficial aspects of that basic situation that money is measurement backed by murder, because the debt controls are backed the death controls, inside the context where private property is based on backing up claims with coercions, and therefore, private property does not exist outside of some system of public violence. Hence, we are rushing towards privatization of the planet, in ways which would destroy it as a livable habitat.
Overall, it is almost impossible for most people to perceive the degree to which they are taking for granted living inside of a civilization based on fundamentally fraudulent financial accounting systems. The INTENSE PARADOXES that follow from those triumphantly ENFORCED FRAUDS tend to be too profound for most people to want to become aware of, especially since actionable intelligence mostly comes from taking advantage of the opportunities which exist INSIDE ENFORCED FRAUDS.
There is no apparent practical point that follows from recognizing the degree to which our civilization has become based on triumphant organized crime, manifesting in the forms of governments ENFORCING FRAUDS by privately controlled banks. Almost everyone is totally used to and inured to taking that so much for granted that they do not reflect upon how those systems are basically symbolic robberies, achieved through legalized counterfeiting. In turn, that then fits into the overall dominance of the biggest bullies' bullshit world view, which constitutes a Wonderland Matrix Bizarro World, whereby our civilization continues to be able to act in ways which are based on not seriously considering the principles of the conservation of energy and increasing entropy, but rather, based upon deliberately ignoring and disregarding those principles as much as possible, so that the established systems of organized lies operating robberies can continue unhampered by more awareness about that.
Those systems whereby governments ENFORCE FRAUDS by privately controlled banks have been so totally triumphant for so long that almost everyone takes them for granted, despite the degree to which those require deliberately misunderstanding the basic laws of nature as much as possible, in order to then be able to not think that there is anything wrong with political economy based upon such ENFORCED FRAUDS. Moreover, it is my view that the few who do tend to become somewhat superficially aware of the degree that our civilization is operating through fundamentally fraudulent financial accounting systems, which make a mockery out of the basic laws of physics, in order to be socially accepted and triumphant systems, STILL then tend to promote superficial "solutions" to those profound political problems, which do not admit and address the deeper analysis of the nature of those political predicaments.
For generations, "money" made out of nothing as debts has been enabling almost everything that could be robbed already being robbed, through those frauds being forms of symbolic robberies, that the resulting situations have become so extremely unbalanced that it is almost impossible to perceive how extremely unbalanced that situation has actually become! In that context, it would be way too late, and too little, and too trivial to matter much anymore, to merely fix those problems that there exist systems of legalized lies, backed by legalized violence, through which governments ENFORCE FRAUDS by privately controlled banks.
From my view, it has become an obvious truism that the most expected foreseeable next steps of the international banksters would be start much more serious wars. AGAIN, I quote this statement from several decades ago:
In my view, the deeper problems are that the vast majority of people deliberately do not want to perceive that money was always necessarily measurement backed by murder. Rather, they want to continue to believe in the biggest bullies' bullshit world views, and so, to operate as controlled opposition to the banksters, that actually stay within the same frame of reference regarding the economy as the banksters' bullshit does. I REPEAT that the established systems of ENFORCED FRAUDS demonstrate the ways that our civilization operates through attitudes that tend to deliberately ignore the principle of the conservation of energy, and misunderstand the concept of entropy in the most absurdly backward ways possible.
The debt controls were always backed by the death controls. Therefore, the runaway debt insanities are set to provoke death insanities. However, after facing those fundamental facts, it should be obvious that the only genuine solutions to those problems would have to be better death controls, in order to back up better debt controls. Of course, where are actually headed are towards the international banksters controlling their political puppets, such as NATO countries, to continue to endeavour to double down yet again upon BACKING UP DEBT SLAVERY WITH WARS BASED ON DECEITS.
The only realistic resolutions to those real problems, assuming that any technologically based civilization survives through those social storms of death insanities, would be for that technological civilization to go through sufficient series of intellectual scientific revolutions, in order to promote profound paradigm shifts in the ways that we perceive political problems. Not only are those problems PROFOUNDLY PARADOXICAL, due to them being based upon the excessive social success of ENFORCING FRAUDS, but also, the even more INTENSE PARADOXES are that the only genuinely better resolutions to those problems must necessarily be better death control systems. Of course, meanwhile, we are approaching the morbid psychological and political habits of the pyramidion people precipitating the kinds of death insanities that would result from major wars involving countries like Russia, that have an abundance of weapons of mass destruction, (whose actual magnitude beggars the imagination.)
I REPEAT my main point: fundamentally fraudulent financial accounting systems make a mockery out of the basic laws of physics. Moreover, since there is almost nothing in civilization now but a core of organized crime, surrounded by controlled opposition groups, which BOTH STAY WITHIN THE SAME BULLSHIT FRAME OF REFERENCE, and so, the bogus "solutions" promoted by both them are as absurdly backwards as possible. The genuine resolutions to the real problems must necessarily be different death control systems. However, in my view the deeper difficulties are due to the degree to which the established systems and their controlled opposition groups are based upon the long history of socially successful warfare based on backing up deceits with destruction, morphing to become socially successful ENFORCED FRAUDS.
In that context, a deeper analysis of the truisms regarding that the debt controls are backed by the death controls, and therefore, the runaway debt slavery systems generating numbers which become debt insanities must then provoke death insanities, only have possibly better resolutions through developing better death controls, in the context where better governments necessarily means better organized crime. In general, despite there now existing globalized electronic frauds, backed by atomic bombs, the existence of which were based on series of profound paradigm shifts in physical science, almost none of that kind of thinking has been significantly applied to political science. But nevertheless, I recommend a deeper analysis of the combined money/murder systems, which is made theoretically more and more imperative by the existence of electronic frauds backed by atomic bombs.
Militarism, or the ideology of the murder system, still deserves to be respected as the supreme ideology. Switching gears within those systems of DEBT SLAVERY BACKED BY WARS BASED ON DECEITS, should be radically redesigned. However, in order to do that, enough people would have to go through sufficiently profound paradigm shifts in the ways that they perceive those political problems, that would thereby take them out of the box of the frame of reference which is currently promoted by the core groups of organized crime (the international banksters) which is also the same frame of reference presumed upon by the layers of controlled opposition groups that surround them.
My view is that it has become a cliched truism that we are going to witness the psychotic breakdowns of the social pyramid systems, within which context the pyramidion people are going to most probably switch gears to start major wars, resulting in unprecedented levels of death insanities. However, it is then, within the context of those runaway death insanities becoming the actual situation, that there may arise enough selection pressures to drive transformations towards developing sufficiently different death control systems, which would have to be based upon profound paradigm shifts in the ways that we perceived political problems.
Meanwhile, of course, despite there existing globalized electronic frauds, backed by atomic bombs, which are trillions of times more capable and powerful than anything that previously existed in human history, and despite those achievements being based on series of intellectual scientific revolutions in physical science, by and large the vast majority of the controlled opposition groups that surround the international banksters are not willing and able to go through enough of the necessary paradigm shifts regarding their perception of the death control systems. After all, I REPEAT, the currently established sociopolitical systems based upon ENFORCING FRAUDS have as a necessary corollary of their social success that our civilization operates through attitudes that tend to deliberately ignore the principle of the conservation of energy, and misunderstand the concept of entropy in the most absurdly backward ways possible.
Of course, that applies to the ways that the combined money/murder systems actually work at the present time, which includes how the various controlled opposition groups, that surround the core of organized crime done by the international banksters, also operate. Hence, the INTENSE PARADOXES that what we actually should do is better militarism, to back up better death control systems, wherein the basic perceptions of those death controls have been radically transformed by profound paradigm shifts.
Obviously, what is happening is as Einstein stated:
Of course, the same could also be said about the unleashed power of the electron, and so on and so forth, throughout all of the other domains of prodigious progress in physical science, which have not been surpassed by progress in political science. There has not been enough better understanding of the social pyramid systems by the vast majority of people, and thus, so far, the pyramidion people in those systems continue to be able to prepare to switch gears to provoke far worse WARS BASED ON DECEITS, TO BACK UP THEIR DEBT SLAVERY SYSTEMS, despite those now risking the resulting death insanities being amplified to the astronomical sizes that the debt insanities have already been amplified to become.
In general, human systems of artificial selection have painted themselves into a corner, or dangerous cul de sac, through natural selection driving those to become successfully based on ENFORCING FRAUDS, in ways whose ramifications are far more profound than almost anyone operating inside those systems is able to think critically about. Since systems of ENFORCED FRAUDS totally dominate our lives within the currently established, globalized, Neolithic Civilization, we are living inside a Wonderland Matrix Bizarro World, which includes that we are thinking about the death control systems in the most absurdly backward ways possible, similar to how we are thinking about almost everything else in absurdly backward ways.
We are NECESSARILY headed towards the death controls attempting to back up the debt controls, despite that becoming increasingly psychotic, as those have become electronic and atomic, as debt insanities provoking death insanities. We NECESSARILY could only resolve those real problems in realistically better ways by radical transformations in the ways that we operate the death control systems that back up the debt control systems.
At the present time, it appears only remotely possible that the actual eruptions of dramatic death insanities MIGHT provide the opportunities for different ideas about different death control systems to emerge. However, in order to that to actually happen, enough of the pyramidion people, and enough of their controlled opposition, would have to change their political ideas enough to adapt to the existence of globalized electronic frauds backed by atomic bombs, having become trillions of times more capable and powerful than ever before n human history, which was made possible by profound paradigm shifts in physical science, and which would have to be surpassed by even more profound paradigm shifts in political science, IF technologically based civilization was going to survive the PARADOXICALLY CONSISTENT CONTRADICTIONS that civilization necessarily operates according to the principles and methods of organized crime, whereby the death controls must back up the debt controls, within combined money/murder systems, wherein money is measurement backed by murder.
THERE IS NO DOUBT THAT IS THE CASE, AND MUST BE THE CASE. The only reasonable doubts arise that systems based upon globalized electronic frauds, backed by the threat of force from atomic bombs, could be able to change to adapt to those emerging facts without totally destroying themselves in the process. At the present time, the international banksters almost totally get away with their bullshit social stories being overwhelmingly predominate, especially because there are almost no publicly significant opposition groups that they do not also effectively control, because of the ways that those opposition groups mostly still think about those problems by staying within the same bullshit frame of reference that was originally promoted by the biggest bullies, which are currently those banksters.
More and more, we are stuck inside of the vicious spirals of the established money/murder systems, automatically becoming more and more criminally insane every day. In that context, I now regard it as nothing more than a cliched truism to predict that the banksters are deliberately provoking more genocidal wars, along with preparing to impose democidal martial law. Their established systems based upon ENFORCED FRAUDS are shaking themselves apart, as manifested by the wilder and wilder oscillations expected as inflation becomes deflation, which then will likely cause over-reactions towards driving hyperinflation. The deeper reasons for that are that money is measurement backed by murder, and therefore,the only ways to have better monetary systems would be to have a better military systems to back that up. However, those human artificial selection systems have been driven by natural selection pressures to become INTENSELY PARADOXICAL ENFORCED FRAUDS.
What necessarily must happen actually happens in the most socially successful ways by being deliberately misrepresented and misunderstood in the most absurdly backward ways possible ... At least, socially "successful" up until now, as systems of DEBT SLAVERY BACKED BY WARS BASED ON DECEITS. What is NOT clear is how that is supposed to continue to work AFTER the development of globalized electronic frauds, backed by the threat of force from atomic bombs.
At the present time, we simply continue to "drift toward unparalleled catastrophe." Therefore, above, I have REPEATED an outline of some of the indications regarding what would be necessary in order to sufficient change "our modes of thinking" in order that our political economy, inside of our human ecology, could adapt to the development of electronic frauds backed by atomic bombs.
Of course, I recognize that appears to be politically impossible at the present time, since both the banksters, as well as their controlled opposition groups, are NOT interested in doing that! The banksters' plans are to continue their agenda based upon consolidation of their global hegemony over the world's monetary supplies based upon ENFORCED FRAUDS. Their controlled opposition, meanwhile, promotes reactionary revolutions to the masses of mainstream morons, which bogus "solutions" are based upon the impossible ideals that there should not be any military systems that back up the monetary systems.
The banksters are getting away with more and MOAR ENFORCED FRAUDS. Meanwhile, there is no genuine opposition that would provide better death controls to back up better debt controls, because there is barely even any publicly significant opposition group that wants to understand that, as well as barely any general public that wants to understand that either. Almost everyone wants to stay inside the banksters' bullshit frame of reference, based upon ENFORCED FRAUDS that depend upon almost everyone taking for granted that they tend to deliberately ignore the principle of the conservation of energy, and misunderstand the concept of entropy in the most absurdly backward ways possible, due to the long history of feedback of social successfulness based upon ENFORCING FRAUDS.
tl;dr
There are some bright spots. Cannabinoid medicine could destroy between 1/4 and 3/4s of the medical establishment.
That would be quite a boost to the World Economy. If the US wasn't standing in the way.
The established Profit From Disease Systems were made and maintained through the POLITICAL FUNDING. The more one learns about the maximum leverage points that exist through POLITICAL FUNDING, the worse that gets. There are NO good reasons to believe that any alternative medicine is going to be able compete with the Profit From Junk Food and Profit From Disease systems being able to continue to reinvest their profits into continuing to corrupt governments to maintain increasingly crazy systems of legalized lies backed by legalized violence.
The attempt to address energy concerns & necessities: http://protonboron.com/portal/
Alternative Energies & Society Adapted to Them?
we do not need economic growth, it s only "needed" in inflationary circumstances.
Can't wait to see if Shemitah September comes though.
Yeah, jmcwala, it is only about six weeks to see whether those spectacular coincidences play through once again ???