..It may seem unbelievable but this is a problem in all intellectual pursuits in our education system: whenever there is a consensus, this consensus works hard to eliminate all dissent rather than keep an open dialogue going. I grew up within the education/CIA Cold War complex. I saw first hand how old status quo thinking slowly dies and the new, upstart beliefs take over and become a status quo which sets out to wipe out any dissent.
ΩΩAll human belief/thinking systems do this. There are no exceptions. Whenever the pile of evidence for one system is so overwhelming that even the hoariest believers have to question their ideologies, it suddenly collapses and is replaced and the former mental revolutionaries then enter the citadel and begin the grim process of defending the new faith while studiously ignoring all countervailing information.
ΩΩWorse, they fix the debate so there is no debate but rather, constant confirmation. For example, in physics, the Einstein universe and Big Bang has ceased to be revolutionary and became the status quo. But once we got better telescopes the incoming data is increasingly disturbing. That is, all galaxies without exception are falling towards each other, not rapidly moving away from each other.
ΩΩAt first, the belief was, only a few were falling towards each other. But as we look here, there and everywhere, this previous exception to the ‘rapidly expanding universe’ model shows a disturbing glitch. How can the universe be expanding when all galaxies are falling towards each other?
ΩΩInstead of a new model, all sorts of goofy tricks have been introduced to explain away this obvious proof that the universe is not expanding, it is collapsing. Eventually the new model will emerge but only after enough astronomers literally die off so that younger upstarts can finally ask the proper questions (and thus, eventually answer them with new theories).
ΩΩThis is happening in economic matters. The Marxist/Capitalist model began to actively collapse with the triumph of communist rebellions which showed the weaknesses of Marxism. The triumph of capitalism in Marxist countries has led to the collapse of capitalism in the non-communist countries and the only people able to figure out that capitalism has collapsed has been the new capitalist communists.
ΩΩThe ideology about the Great Depression of the mid-20th century was, protectionism created this event. So insidiously, the elites in the capitalist West worked nonstop to eliminate trade barriers and this was elegantly exploited by the new capitalist communists. We then had a global banking collapse nearly identical to the one in 1930 and this proved that the ideology of ‘trade barriers create depressions’ to be false.
ΩΩInstead of realizing free trade makes global banking collapses inevitable still isn’t the new ideology. The old one which totally misreads how and why depressions happens continues unabated in power in our universities and our government. Not one soul seems to have grasped that the economic model they are using is totally useless. Worse than useless, actively destructive.
ΩΩIt will take a literal physical revolution to overthrow this ideology since it is heavily impacting on the lives of billions of increasingly scared and angry people across the entire globe. Since this is life and death for billions of people, they will not do the smart thing, they will simply explode into racial, religious and ideological conflicts which we already see happening more and more.
ΩΩWithin the US, thanks to the magic of printing money or even easier, creating it electronically, we are totally insane when it comes to thinking about economic matters. We literally imagine we can simply create more money and then spend it forever. And there would be no inflation. The present status quo whereby we make money out of thin air and then ship it over seas, our main export product, has corrupted our ability to think about ‘what is money’ to the point, we have gone literally insane. Here is the latest example I have read which clearly shows how lunatic it now is. As usual, it is the King of Economic Commentary, Professor Krugman who is utterly incapable of seeing what is going wrong: What Is Money? – NYTimes.com
- There’s a lot to be said about the right-wing attack on the Fed, none of it good. But I’d like to highlight one aspect of this discussion that has been striking me: the conservative focus on the evils of increasing the money supply.
- You hear it all the time: the Fed is printing money! Danger, Will Robinson! In some comments on this blog I see assertions that the true measure of inflation isn’t prices, it’s what happens to the quantity of money.
ΩΩKrugman is unusual in that he actually reads other people’s debate points. Good for him. Alas, he learns absolutely nothing from this since he doesn’t allow people to post zillions of charts and graphs and other points that prove themselves right and himself wrong.
ΩΩBack when Zimbabwe was experimenting with infinite numbers on pieces of paper, I was quite puzzled about how this story was nearly never reported in the US media. I finally decided that this was due to simple fear: if they showed the US public the end result of any paper money system that runs off of a trade/government deficit system, people here would become scared. So they decided to bury everyone’s head in the sand and ignore reality.
ΩΩThe reality here is, all our trade partners virtually without exception, run trade surpluses with the US. The more free trade=the greater our trade deficit. Once the US began to export jobs wholesale, the entire US economy began to collapse and continues to collapse. The more we export goods the more we export jobs and the more red ink we create. Now, instead of massive billions in red ink in trade deficit spending, we are still seeing a trillion+ in red ink but it has moved over to the most dangerous point: government spending.
ΩΩIt is painfully obvious that printing money to spend for goods and government services is going to bankrupt the nation. There is no avoiding this reality. Worse, whenever a political party is out of power, they suddenly realize this fact and talk about it until they win an election and run the government when they switch suddenly to overspending and printing money.
ΩΩThe reason for this insanity is simple: nearly all the money we print or create electronically instantly flows overseas! Even government spending moves overseas via the Pentagon and State Department not to mention, trade. So it looks as if we can run in the red, print money and not have inflation.
ΩΩOf course, we do have inflation. I used to buy gas at $0.32 a gallon a mere 15 years ago. Today, it is $3.25 a gallon. Food has had virtually the same level of inflation. 15 years ago, most food was under a dollar per unit. Today, it is multiple dollars. My food purchase bill used to be about $35 a week and now it is over $100 a week in less than 15 years.
ΩΩThe only things not ravaged by rampant inflation is imported goods. This is due to the dollars staying overseas when we trade. Only a small amount is leaking back into our economy as foreigners buy up what remains of our transportation, commodity production systems and industrial base. But a huge, huge amount resides in inert FOREX holdings that now bulge with over $4 trillion which is a huge amount of money waiting for an explosive exit. It is a 100% chance that we will have very sudden hyperinflation the minute one of our trade partners decide to disgorge their FOREX holdings which will trigger a panic in all FOREX dollar holders.
ΩΩThis, in turn will create sudden inflation at home and this event will happen not when we are merrily running up even more trade and government deficits but when we stop doing this and try paying off our debts. This is what is scary for the economists to contemplate. So instead of being honest about our trade and government deficits and explaining how the foreign FOREX holdings are going to destroy us, pundits like Krugman tell everyone, we can run in the red because it is good, not fatal.
ΩΩWe are trapped. We need to stop free trade and government overspending but if we do this, we will be destroyed by hyperinflation as everyone drops the FOREX dollars into our markets in a panic buying spree. This buying spree will see prices for assets climb like crazy but taking dollars for assets will be stupid since the dollars will be worthless in a matter of days if not hours so anyone making a deal will rush to use it to buy some asset and this will continue until the currency ceases to exist in a bang.
- Surely we don’t mean to identify money with pieces of green paper bearing portraits of dead presidents. Even Milton Friedman rejected that, more than half a century ago. For one thing, a lot of those pieces of green paper are pretty much inert — sitting outside the United States, in the hoards of drug dealers and such. For another, checking accounts are clearly a close substitute for cash in hand.
ΩΩA number of comments at this lunatic’s web site at the NYT has pointed out the obvious errors in his world view although virtually none of them mention the Japanese carry trade of yore. Back when Krugman and his buddies debated directly with me, I kept bringing up the Japanese carry trade issue and they all told me in a huff that I was very stupid to even talk about it, who cares? The Japanese simply hoarded dollars so if we gave them paper for goods, we were the winners.
ΩΩMy point that we lost a lot in this deal, namely, our automobile, camera, electronic goods industries were in full collapse due to this, was shrugged off. Eventually, they all refused to debate me just as the army of ‘we can become billionaires if only we can print more money!’ people refuse to understand how stupid this idea is. History is crystal clear: any nation printing money to infinity is punished very severely.
ΩΩThere is not one exception to this rule. The longer it takes to arrive at the breaking point, the worse the hyperinflation/collapse. Back in the 1970’s, the US ran trade deficits with Europe and the oil producing nations none of whom held US dollars in any big FOREX system. So hyperinflation showed up instantly and tormented us.
ΩΩBut since the Volcker rescue via high interest rates, our trade partners have figured out how to keep their currencies cheap against a flood of US trade dollars and they began to park it in FOREX holdings which have grown to gargantuan size. My ideology is very simple: nothing in nature nor imaginary systems can go to infinity. Once we realize this, we can work with any reality system. If we insist on infinity, we go mad. Many modern (ie, since writing was invented) religious systems believe in infinity as a goal not an impossibility so we are now comfortable with this concept which is deadly.
- But now we have a large shadow banking system, in which things like repo serve much the same function as deposits; M3 used to capture some of that, but the Fed discontinued it, in part I think because it wasn’t clear which repo belonged there, and data on repo not involving primary dealers is scattered. Whatever.
ΩΩAh, the shadow banking system! This is, of course, the Infinity system, one that is not taxed, not regulated, is offshore, from pirate coves, run inside of the US and UK via computers, it is the Derivatives Beast. It is electronic and can’t even keep up with its size to generate paperwork, it is impossible to produce paper for it because it is running to infinity.
ΩΩComputer programs are one of the few things that can imitate infinity. It is simple. Computers operate on the yin/yang system of always being either 1 or 0. This binary system can go on forever since there is no real third choice. Its only constraint is how fast it can go and this is a function of technology. As computers improve, the ability to create 1/0/1/0 etc is as fast as the speed of light.
ΩΩWhich is why my basic model for this shadow banking system is the universe. That is, astronomers thought they understood infinity when they proposed an infinitely rapidly expanding universe. The idea that the universe is NOT infinite at all scares them. So they ignore obvious incoming data. The concept of ‘if you are going to infinity, you will see a total collapse to null’ idea is alien to all our university thinking systems.
ΩΩI would loudly suggest that no systems can run to infinity. The minute you reach this point, it must become null and this never happens slowly, this always happensswiftly, the faster you go to infinity, the faster the collapse to null. The shadow banking system has so rapidly inflated to many times bigger than any real economic system, it had to collapse and it did collapse. But not to null. Not yet. This is because it is kept alive due to the US dollar FOREX holdings across the globe. The shadow banking system will vanish once these FOREX dollars are flushed out into the open again.
- The truth is that these days — with credit cards, electronic money, repo, and more all serving the purpose of medium of exchange — it’s not clear that any single number deserves to be called “the” money supply.
ΩΩKrugman is smug about this, isn’t he? He thinks he is so very clever. HAHAHA. No one can define what is money because money no longer physically exists. It is now pure numbers residing inside of various systems. The FOREX holdings of Asia and OPEC are not paper dollars, it is in the form of gold, IOUs for US commerce and government debts and electronic units showing trade deficits. But since it is electronic, this merely means it can suddenly reappear in markets at the speed of light!
ΩΩAll of the big boys know this which is why the price of solid, real things like gold have suddenly shot upwards as these excess dollars are translated into physical holdings. These, in turn, are made into physical hoards which are hiding in great mountains in various storage containers including bank vaults. When the dollar suddenly collapses, they too, will suddenly have to reappear and we will get a collapse in all prices once the dollar is dead and we have to use yuan to buy foreign goods and our own government issues the Amero coins and we start all over again.
ΩΩAn interesting article from the Business Insider website has a graph I find most interesting: Here’s What We Now Know About Goldman’s Connection To The Fed
- On May 7, 2009, a Goldman press release states: “We are pleased that the Federal Reserve’s Supervisory Capital Assessment Program has been completed… With respect to Goldman Sachs, the tests determined that the firm does not require further capital… We will soon repay the government’s investment from the TARP’s Capital Purchase Program.”
- On June 17, 2009, Goldman finally got its wish, thanks to some timely, undisclosed assistance from the Federal Reserve. Goldman repaid its $10 billion TARP loan. But just six days before this announcement, Goldman sold $11 billion of MBS to the Fed. In other words, Goldman “repaid” the Treasury by secretly selling illiquid assets to the Fed.
ΩΩNote how Goldman Sachs refused to repay the Fed with ‘money’. Instead, they did this with debt papers they didn’t want to hold anymore since this is now losing value due to the collapse of the US economic system. So they handed over all the parts that are doomed to fail to the Fed. The Fed created dollars which were made out of thin air, handed it all over to international banking investment houses holding derivative contracts and they, in turn, paid for this via dumping their bad derivative deals into the Fed where it will sit until it slowly rots away.
ΩΩThis, in turn, will be fixed by printing even more money electronically which will lead to the collapse of the dollar. The Goldman Sachs deal is typical of the rampant dishonesty running all over our economic systems. Just as the GOP howls about overspending yet always responds to this by cutting taxes rather than spending, so does all parts of our system. Instead of dismantling the Derivatives Beast, the central bank has swallowed it and has now become a defender of this insane system.
ΩΩThe only thing that has saved us from the CO2 cap and trade Derivatives Beast which bankers openly boasted, will grow to be bigger than energy markets, was a series of extremely cold and snowy winters. Harsh reality prevented this rapine. I am not against the concept of global warming, I am against the stupid solutions which fix nothing. Moving all the bankers into yurts in Siberia and making them us yaks and camels for transportation is the only solution to global warming.
ΩΩThat is, forcing these energy gluttons to prove their thesis, we are going to die of the heat by making their carbon footprint null instead of infinite is the solution to global warming. They don’t wan this, they want to consume infinite energy.
ΩΩ Here is today’s story from the NYT which is quite alarming since it is about infinite energy consumption coupled with making ‘trades’, 99.9% of which are meaningless churning, in the new systems: Electronic Trading Creates a New Financial Landscape – NYTimes.com. Anyone using my philosophical model that proposes, ‘Anything moving to infinity collapses to null instantly’ can see the end result of this modern system. The computers occupy some of the biggest buildings built recently in New Jersey and Lower Manhattan. These non-human behemoths are windowless towers. They consume far more energy per square inch than human-occupied buildings.
ΩΩTheir function is nearly useless and indeed, quite dangerous. Now, we can get a sudden and nearly total collapse of world stock markets in the matter of less than a minute. There is not time to stop any glitches. Worse, we can’t figure out what caused previous collapses from the last several years especially the recent one where stocks in one exchange plunged off a cliff in less than two minutes. The computers can erase numbers just as easily as they can accumulate them. That is, in a flash.
ΩΩThis makes the system very dangerous and the philosophical basis for them, impossible to control, contain or restrain. And the ruler of wealth is not the Goddesses of Infinity nor even zero, it is Libra. Balance, control, restrictions are all part of what makes wealth powerful. Excess, wild speculation, too many debts or promises, too much wealth and too great power leads always to a collapse of all systems in this emphatically includes civilization itself.
ΩΩAs usual, an out of control, too fast system that outstrips human efforts to understand or control leads to corruption, venality, exploitation of weaknesses (this is where the greatest profits are made, after all!) and when a system collapses, there should be arrests. Ernst Accused of Lehman Whitewash – WSJ.com
- In the most sweeping allegations against an accounting firm in nearly a decade, New York’s attorney general is accusing accounting giant Ernst & Young of helping Lehman Brothers Holdings Inc. disguise its financial condition for more than seven years, while collecting more than $150 million in fees from the firm.
ΩΩThere should have been wholesale arrests of all the top investment bankers back in 2009. Instead, we put the entire civilization into jeopardy bailing them all out. So instead of a revolution with heads on pikes, we decided to commit mass suicide. The deaths are just beginning. The plan to bail out the bankers involves slashing social services to the poor and putting the entire middle class deep into hock and not letting them retire but instead, working them to death.
ΩΩThis is barely begun. In Europe, it is already leading to mass riots but so far, no insurrections. Those come next when the US/EU trade system suddenly collapses when China releases $3 trillion US debts and dollars into world markets. Then the revolutions will roar ahead.
ΩΩRight now, the elites still run things here and thus, don’t go to jail. They sell out our country to foreigners, instead. Russia did go bankrupt and Putin pulled it back from the brink. The US elites hate this with a passion. It was so much fun looting Russia! Now, it is harder and harder and so the US media and government yappers like Hillary Clinton who should be put in prison for war crimes, are howling about Russia punishing billionaires who are trying to destroy Russia’s sovereignty: Mikhail Khodorkovsky’s Plea for Russia – Talking Business – NYTimes.com
- “He was the most visionary of all the Russian oligarchs,” said William Browder, who runs the Hermitage Fund, and was once the largest portfolio manager in Russia. “He understood that the way to get the best valuation was to run the most transparent company.”
- To that end, he brought in Western board members who understood the principles of good corporate governance. He hired foreigners to critical executive positions, unheard of in Russia. A big reason that Russian companies had low valuations was that investors simply didn’t believe their stated numbers — and had no idea how much of the company’s cash flow was diverted for graft. Mr. Khodorkovsky changed that perception at Yukos by working hand in glove with the company’s accountants in the Russian office of PricewaterhouseCoopers, who created an accounting structure that allowed Yukos to report earnings that met Western accounting standards, while satisfying the Russian tax authorities, no mean feat.
- According to Bruce Misamore, an American who spent several years as the chief financial officer at Yukos, when Mr. Khodorkovsky was arrested in October 2003, he was in the process of selling a stake of the company to either Exxon Mobil or Chevron, both of which were eager to make an investment. He was also preparing to list Yukos on the New York Stock Exchange. He was worth a reported $15 billion.
ΩΩHAHAHA. Russia’s sovereign power comes directly from its energy markets. The Russian guy was in the process of selling this to hostile foreigners. He wanted to become a multi-billionaire by betraying his country. Putin did the one smart thing he had to do: he crushed this man planning to loot his own country and hand it off to foreigners!!!! China would do the same thing.
ΩΩCountries doing this will, in the long run, prosper. The ones operating like the US whereby ExxonMobile and Chevron work hard to destroy our economy, destroy our government and destroy our social systems and environment are a bad example. They are killing us, not making the US stronger, better or cleaner. They are now foreign entities who don’t pay taxes and who corrupt our government. I wish Putin could arrest the executive of these corporations, too! HAHAHA. Put them all on trial.
ΩΩNo wonder Hillary and her ilk are all screaming like maniacs. She and her buddies are looting America. So is the GOP. Who support the oil executives even as they loot the nation. Sheesh. Arrest everyone. Send them all to Russia to stand trial.
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’
Click on the Pegasus icon on the right sidebar to donate via Paypal.
20 responses to “Infinite Money Kills Real Wealth”
I am heartened to know that the columbian drug dealers pad their mattresses with all those $10 and $20 that they take in every day. Such stupidity explains how they are able to grow, import, distribute, sell, collect, repatriate and reinvest the returns…oh they don’t do any of that; they just sit on the FRNS like Scrooge McDuck sat on his Gold and emeralds and diamonds. Krugman is such a sad example of a “thinker”.
Do you think that Khodorkovsky’s alliance
with Israel has any bearing on the Hillary et.alia. outpouring of support?
Without the continued flow of drug monies through the international banking system, the system would have collapsed in 2008.
And it flows because the Narcos buy boats, and submarines, and refining chemicals, and buildings, and seeds and fertilizer and men.
It is also why drugs will not be decriminalized. The current price of drugs guaratees huge amouts of cash flow. Cocaine would cost about as much as white sugar if it were legal. 40 cents a pound instead of whatever inflated value the cops put on their last tithe ( usually somewhere in the $25,000/lb range). As long as it stays illegal, the $24,999.60 per pound extra profit goes to the producer nations and their purchased allies.
Pingback: The Forex Destroyer Futures Trading System Program - New Launch 2011 | 7Wins.eu
Which is why my basic model for this shadow banking system is the universe. That is, astronomers thought they understood infinity when they proposed an infinitely rapidly expanding universe
WOOT PRISON PLANET LETS RIDE
inmyhop they ‘the bankers’ badguys are giving themselves money in a Great effort to give the rest of us money… which would be awsome if they werent having the states go into bankruptcy while liquidating all our heavy industry during their day job
something about banker IQz is too long… they are just playing with money and its a sign of how wealthy we are when people can just fuck up and become millionaires i guess
there IS alot of food and gadgets…. and horrific leadership
we cant even face healthcare and say… you guys need to make your own market and stop bitching about medicare THOSE ARE YOUR MAIN CUSTOMERS RETARD
the subsidized monopoly’s cut labor loose and LOOK AT THEM… BOZOS WITH EVERY EXCUSE GIVEN THEM FOR THE KING
dont cry, life is unfair
Israeli PM wants nonstop talks with Palestinians
JERUSALEM – Israel’s prime minister said Sunday that he’s ready to sit down with the Palestinian president for continuous one-on-one talks until they reach a peace deal.
hells YES… Hamas has been pretty cool to US interests near as i can tell… hope their on board to see and listen at least
I HOPE one day there will be one state of israel full of both nations people… me thinks it should be that way and its a shame it isnt anyways
that and hamas is FUCKING CRAZY MAN
Love this blog’s eclectic mix of science, politics and economics! Always something to think about, and the posts are thought-provoking as well. Happy New Year to all!
Fascinating observations about what happens to the U.S./Western economies when China releases its FOREX dollar hoard. China has made deals with resource-rich nations in Africa and elsewhere to secure critical natural resources. It is now buying up bonds from highly indebted European nations, potentially putting them in a similar position as it now holds the U.S. With pledges of aid for the Euro, China will secure more favorable terms for itself from its largest trading partner.Yu Yongding,an influential economist and former advisor to the People’s Bank of China who is known as the “dollar killer,” has advocated putting more of China’s investment into non-dollar holdings, in response to the Fed’s infinite printing press policy. This will allow China to minimize its losses should the dollar drop in value, Zimbabwe-style.
At the same time, China has stepped up its military investments and operations in all directions. Blurry photos of the Chengdu J-20, a next-generation stealth fighter, appeared on the Internet over Christmas weekend before being spotted and pulled down … these new fighters will present a challenge to the U.S. which has cut the number of next-generation stealth fighter it will put into service. As Elaine has noted, Japan has reported increasing incidents of Chinese aircraft harassing Japanese Self Defense aircraft over the East China Sea,with such confrontations increasing drastically ever since last September’s collision between the Chinese trawler and 2 Japanese Coast Guard vessels. Although Wen Jiabao speaks of a ‘new partnership’ between China and India, there is nonetheless a massive build-up of Chinese troops near the Indian border. China has been building a 4-story military building at Menghai near Myanmar at breakneck pace since August, with observers claiming it will be finished soon.
Part of the tension could be over water: with 25% of the world’s population, China has only 7% of the water supply. China’s relentless quest to secure natural resources has sparked border incursions by Indians, as China has dammed up several water sources flowing into India. Others are of course eager to sell their nation’s resources for private gain: Enterprising companies in Canada bottling fresh water for export to China have actually caused the Great Lakes’s shoreline to recede visibly in parts.
Water shortages could also trigger MidEast unrest. 10 of the world’s 15 most water-short nations are in the MidEast, and water is intrinsic to these governments’ ability to keep themselves in power and reward their people. The ‘green revolution’ that made deserts bloom during the ’80’s and ’90’s became a point of national pride, but it has also depleted critical groundwater across the entire region. Now Israel is planning a broad new military incursion into Gaza.
Nothing is infinite … not water, not gold, nor rare earth minerals, military might, or the patience of people whose well-being and survival are recklessly threatened by policies that rob them blind!
green bay defeats the bane of nah
Both China and the economies of the West are bumping up against the limitations of Peak Oil, peak water(!) and endless consumption as a way of life. With oil pushing past $90/barrel,and demand languishing in wounded global economies,Libra now turns off the juice that powers the system.
It’s too late for a quick collapse: by almost every economic measure, we’ve already experienced a lost decade. The game is up in the Eurozone, with violence on the rise. The U.S. and Japan are circling the same drain.The President’s ability to negotiate effectively with other nations is seriously compromised, as the U.S. is finally exposed as nothing more than a banana republic. Meanwhile, many citizens have lost respect for the rule of law as a corrupt Congress and the Courts reveal themselves as simple agents of wealth transfer from hard-working citizens to a parasitic elite. ‘Til now the whole darned teetering edifice has been propped up by blind faith in a fiat currency, now being undermined as the Fed pumps funny money into the system in a doomed attempt to eliminate any downside risk in the stock market. (Never mind the havoc this policy plays with commodities, food prices, oil, silver, gold, etc.) Despite this, insider sales of stocks have reached new highs as the smart money flees the casino. No question QE2 is simply another thinly-disguised bank bailout, and still less question that the bubble will pop.
We live in amazing times. EVERYONE knows that the banksters knowingly engaged in fraud (Citibank execs confirmed this under oath) yet NO ONE has been prosecuted. The Secretary of the Treasury KNOWINGLY handed out billions in exchange for worthless garbage MBS assets (not legitimately backed by mortgages at all as it turns out), yet no one has been charged. The President increased troop levels for wars that everyone KNOWS were started under false pretenses and he has continued illegal torture policies, yet he won the Peace Prize.Pass the sick bag, please!
The Mayan vision of 2012 seems to be on its way a little early, with the obvious collapse of this fraudulent, unsustainable system. With any luck, the banksters will turn on one another as their big-bets-gone-bad begin to implode. Although they had cleverly invented an alternate casino universe collateralized by Real World assets, there was never enough collateral in the Real World to cover their huge debts, obscene bonuses and wild parties, make good on those toxic mortgage derivatives,or cover the wild derivative bets they are making on gold (the actual quantity of which hasn’t even been audited in decades).
The scales tip, as Libra restores balance. “Extend and Pretend” has run its course. When the casino shuts down, the rest of us can still bet the banksters will sharpen their long knives and start betraying one another, as the harsh reality of a finite system is revealed.Stay tuned for the final act … gonna be one helluva show.
@ Claire Voyant
Re: …The U.S. and Japan are circling the same drain…
Great turn of phrase.
i suggest we are all circling that drain for all the reasons you listed. I simply hope we all put the plug in.
Happy New Year Dudes!
Gold backed money was just that, something. Something of value.
Fiat money is debt, the total opposite of something. It’s less than nothing. It has negative value.
I hope this is the year it pops or we make it pop. You guys are keeping the dream/thought/hope alive.
“government yappers like Hillary Clinton who should be put in prison for war crimes”
Instead, we throw people who blow the whistle on war crimes into prison without a trial conviction or even an indictment! And we torture them under Orwellian pretenses like a “Prevention of Injury” watch. How fucked is that?
I agree. Our nomenklatura like Hillary, Bush and Obama should all stand trial in Russia. With Russian judges applying US Law. For Treason.
“According to Bruce Misamore, an American who spent several years as the chief financial officer at Yukos, when Mr. Khodorkovsky was arrested in October 2003, he was in the process of selling a stake of the company to either Exxon Mobil or Chevron, both of which were eager to make an investment. He was also preparing to list Yukos on the New York Stock Exchange. He was worth a reported $15 billion.”
FYI and reported in 2003 the time – He wasn’t able to sell out YUKOS to big oil company, but did do the next best thing “In 2003 Khodorkovsky’s shares in Yukos passed to Jacob Rothschild under a deal they concluded prior to Khodorkovsky’s arrest.”
from wikipedia no less.
Pointed and perspicacious commentary as always, Elaine.
I’m curious about your statement that the physical universe is not expanding, but rather collapsing. I have not seen evidence of that reported, except perhaps for this story from 2002:
Have I been missing something? Could you direct me to something more recent?
The universe may be ‘expanding’ but everything inside of it is collapsing towards each other. I assume, once all the bigger galaxies merge with each other, the biggest dozen will then be forced over the following 12 billion years to merge back into each other, too.
When you´re a young and bold empire you go where others haven´t.
Chinese scientists have made a breakthrough in spent fuel reprocessing technology that could potentially solve China’s uranium supply problem, state television reported on Monday.
“With the new technology, China’s existing detected uranium resources can be used for 3,000 years,” Chinese Central Television reported.
China, as well as France, the United Kingdom and Russia, actively supports reprocessing as a means for the management of highly radioactive spent fuel and as a source of fissile material for future nuclear fuel supply.
And I think the Yukos guy had Israeli connections. The U.S. chattering class is beside themselves sputtering about how an oligarch has to succomb to the rule of law. Such a thing couldn never happen in America!
Pingback: Bath and Body ZoneDancing Waters Body » Bath and Body Zone
According to WikiAnswers, the average US price of gasoline in 1995 was $1.15, so you were getting some bargain!
Your story is too long, break it down into four separate articles and don’t forget, you can not out give the Infinite Infinitor of Infities even if you are the CIA/US Government Former Octodragonal Censorship Model of the Infite Supplier of Infinite Forms of Money!
It is infinite. Government can print as much money as they want. It’s just that each unit of currency will be worth less in proportion to the quantity they print. If they print more, the currency value will be decreased proportionally.
Would you rather have $10 to buy burgers at $2 each or $20 to buy burgers at $4 each?
yes your are right? No one can define what is money because money no longer physically exists, it only resides on credit card in the form of figures long figures. .
Pingback: Infinite money | Bibliyo