All Speculative Bubbles Are Bad

Screen shot 2015-01-18 at 8.55.31 AM

Has Russia Just Pulled Itself Out Of The Petrodollar? The graph above shows a classic speculative bubble.  The futures in the derivatives oil markets which is like the Chicago farm futures market, is prone to speculative bubbles.  When these happen and consumer prices shoot upwards, we have an inevitable crash.  All speculative bubbles pop.  They have done this for the last 400 years.  Each cycle of bubble/collapse leads to vain attempts at preventing bubbles that collapse after while.  That is, people are burned by bubbles and then do it all over again once the memory of the pain fades.  But if governments intervene to prevent speculator pain, they go merrily from one bubble to the next with no hesitation expecting to be bailed out over and over again, faster and faster.

 

I was totally against bailing out the bankers during the 2008 bubble pop and now we have these same banker/speculators who created the housing bubble engaged in the petro bubble.  The same people who should have committed suicide or sent to prison such as the folk at all those huge towers in lower Manhattan and Jersey City, Goldman Sachs and the oldest speculative monster crime operation, JP Morgan.  Instead, they got endless ZIRP loans from the JP Morgan owned Federal Reserve and went shopping for more bubbles immediately which is why, a mere six years later…six years later!  We have another massive obvious bubble that popped when the US and EU decided to go to war with the world’s #2 energy export power, Russia.

 

Now the EU is collapsing.  Bloomberg reports Russia is leaving the petro dollar system.  Backed by promises from China to support Russia, Putin is selling off the dollar reserves which is $88 billion.  If China does this, holding $1.5+ trillion trade dollars, we will have what happened to the EU when Switzerland, reading the tea leaves, being supreme bankers, suddenly without any warning to the Zionist head of the World Bank or the IMF, they dumped their euro holdings causing the euro to collapse suddenly.

 

Swiss Franc Trade Is Said to Wipe Out Everest’s Main Hedge Fund: the bleeding on Wall Street has begun yet again.  Hedge funds are pure evil.  Have been since day one.  Converting all trading systems into copies of the unstable, prone to weather change hazards farm derivative systems has turned banking and other once-stable systems into hysterical, out of control bubble/bust systems.

 

Everest Funds is the oldest hedge fund in the world.  And it made just one big bet against the Swiss franc and died, losing all its money.  The operation has several more hedges that are still alive but I am betting it will keel over soon enough.  These stupid hedge fund/derivative trader garbage creators are like a forest fire burning up economic systems hoping to loot them.  The Swiss are quite aware of this and this is one main reason they kept everything totally secret.

 

Another interesting facet to all this is the secrecy of the Swiss was due to it being done by non-Zionists.  Putin has the same level of secrecy power and very certainly, the Chinese have this, too.  They can all act without warning and the Jewish speculators won’t have an iota of inside information to use as leverage to play speculative games where they win all the time.  This is of course, the main danger to all the many millions of Jews who are NOT speculators or conspirators.  They will be collectively blamed for currency chaos and economic collapse caused by a consortium of conspiratorial bankers working with British royals and political powerhouses to manipulate economic systems so money can be leeched off of it by banker/speculators playing games.

 

This led in the past to political chaos and wars.   Long Depression which really began with the Franco/German war:

 

 The period preceding the depression was dominated by several major military conflicts and a period of economic expansion. In Europe, the end of the Franco-Prussian War yielded a new political order in Germany, and the £200 million reparations imposed on France led to an inflationary investment boom in Germany and central Europe.[10] New technologies in industry such as the Bessemer converter were being rapidly applied; railroads were booming.[10] In the United States, the end of the American Civil War and a brief post-war recession (1865–1867) gave way to such an investment boom, focused especially on railroads on public lands in the West – an expansion funded greatly by foreign investors.[10]

 

The Panic of 1873 has been described as “the first truly international crisis”.[10] The optimism that had been driving booming stock prices in central Europe had reached a fever pitch, and fears of a bubble culminated in a panic in Vienna beginning in April 1873. The collapse of the Vienna Stock Exchange began on May 8, 1873 and continued until May 10, when the exchange was closed; when it was reopened three days later, the panic seemed to have faded, and appeared confined to Austria-Hungary.[10] Financial panic arrived in the Americas only months later on Black Thursday, September 18, 1873 after the failure of the banking house of Jay Cooke and Company over the Northern Pacific Railway.[11]

 

A side note here: this drove one of my ancestors who was living in Pittsburg and who did railroad speculations, to commit suicide.

 

The Northern Pacific railway had been given 40 million acres (160,000 km2) of public land in the Western United States and Cooke sought $100,000,000 in capital for the company; the bank failed when the bond issue proved unsalable, and was shortly followed by several other major banks. The New York Stock Exchange closed for ten days on September 20.[10]

 
The financial contagion then returned to Europe, provoking a second panic in Vienna and further failures in continental Europe before receding. France, which had been experiencing deflation in the years preceding the crash, was spared financial calamity for the moment, as was Britain.[10]

 
Some have argued the depression was rooted in the 1870 Franco-Prussian War that hurt the French economy and, under the Treaty of Frankfurt (1871), forced that country to make large war reparations payments to Germany.

 

Governments depegged their currencies in Europe while the US strove for a return to the gold standard.  This led to a secondary gold rush in the West especially Alaska and Africa.  This depression caused a flood of immigrants from Europe into the New World.  Wages were driven downwards by both this and the population boom worldwide causing famine and death due again, to GLOBAL COOLING.  Growing seasons were shorter, for example, in bread basket countries like the US and Russia which are, even today, very prone to cooling/warming cycles.

 

The Long Depression broke during the Gay 90’s which was also during a GLOBAL WARMING cycle, geeze, what a shock!  I remember the global cooling cycle of the 1970’s and the currency chaos, market chaos, social chaos this caused not to mention starvation and mass deaths worldwide.  We are entering yet another global cooling cycle which the Bilderberg gang has transformed into a global warming cycle via artful manipulation of incoming data that ignores anything pointing to a cold cycle especially sun spot activity warnings.  So on top of the typical chaos of speculative bubbles, we have warmongering by empires, confrontational demands, boycotts, global cooling shortening the key agricultural summer cycles in Russia, the US, Canada and causing poor tropical farming conditions as moisture moves northwards as snow causing a change in summer monsoon cycles…we are at the normal conditions for another Long Depression!

 

History is a series of warning signs.  As these accumulate, we have to pay heed.  Making up lies about economics, war lies like the outrageous lies about the Malaysia jet shot down by the Kiev regime and then pinning it on Russia, lying about basic weather patterns and statistics that clearly, absolutely shows that the North American plains in Canada and the US are in a deep freeze cycle…all this is insanity.  You can’t redesign reality this way!  Our stupid rulers will persist in pretending we are not entering identical conditions to the Long Depression and the Great Depression.  This is insanity.  The Great Depression, by the way, was triggered also by indemnity payments this time Germany to France and England, than the reverse.  And it was a hot cycle, not cold cycle but this is all a mirror image effect.

 

The US was responsible for that speculative bubble that killed the Golden Goose. As it is responsible for the present bubble which is really a currency bubble as the US prints money to fund out of control government spending and the world’s most gigantic trade deficit and the petro dollar is mainly US red ink spewed across the planet starting in 1973 when Nixon and Burns cut the gold standard.  As the US lost money on the Cold and Vietnam wars.  Like today!  Trillions lost in the Iraq/Afghanistan wars!  All, a total waste.

 

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19 Comments

Filed under .money matters, energy

19 responses to “All Speculative Bubbles Are Bad

  1. Christian W

    Deutsche Bank says it would be idiocy for the EU to follow the failed models of Japanese and US money printing interventions:

    http://www.zerohedge.com/news/2015-01-18/ecb-will-fail-given-history-lessons-us-and-japan-warns-deutsche-bank

    Not that such facts will stop Goldman Sachs Draghi from looting for the elites.

  2. Jim R

    Everest Funds should have invested in Bitcoins, hahahaha…

    Forex speculation is speculation, which is simply gambling.

  3. vengeur

    I still don’t believe that the ECB and FED and IMF weren’t informed by the SNB beforehand. Yes, some people were mercilessly hung out to dry. But the chosen elites at the top, never. Ask yourself this question: Why, during WW2, did a maniac like Hitler ALLOW the Swiss to remain “neutral”? Because it was in his interest to do so. And what just happened to the Euro is, under present and future economic and monetary conditions, in the interest of Those At the Top in Europe .SOME will benefit, most won’t. Exactly like US “free trade” policy. The .01 percent do well, everybody else, not so much. It amazes me that people think the SNB did this thing in total secrecy, it was a total surprise to EVEREYBODY. Secrecy, yes. TOTAL secrecy? No way in hell.

  4. vengeur

    And the converse is also true: The SNB knows EXACTLY what the ECB, and FED and IMF are going to do beforehand and when they bare going to do it.

  5. Kenogami

    Hitler did not invade Switzerland because it would have been too costly. He ask the Swiss to let his armies pass through Switzerland to go to Italy, but the Swiss refused; Hitler was in a fury. The german spies in Switzerland knew that the Swiss would dynamite every bridge, viaduct, train at he border and that the Germans would face a partisan war against all swiss citizens.

  6. Christian W

    It appears a French police inspector investigating the Charlie Hedbo murders “committed suicide” a few hours into the investigation.

  7. Jim R

    Mews, daddy Bush never did recall what he was doing in Dallas 51 years ago, and I seriously doubt that he will come up with any deathbed confessions now.

    Wouldn’t want to spoil Jeb’s chances in 2016, you know..

  8. Petruchio

    Not only is Russia selling off the T-bills, they are reportedly making significant purchases of gold. I mention this even though I know Elaine’s opinion on gold. The Swiss divested from the Euro in secret and without telling the Zionists at places like the IMF makes me ask about Putin and Russia: did Putin actually throw the Rothschild bankers out of Russia, or is that just a story?

    ΩΩΩ

    ELAINE: Gold is a commodity like oil. Nothing magical about it. Russia produces gold, by the way, as well as oil and gas.

  9. e sutton

    Is there any man, woman, child, or dog that has a higher price on his head than Vladmir Putin?

  10. nclaughlin

    Where did I read (or did I) that the Swiss move was a preemptive strike? That the Fed/IMF/EU was about to do something to the Swiss and the Swiss found out about it.

  11. Petruchio

    @#8, Jim R: Maybe if daddy Bush weren’t above the law we might get some answers. If Bush Sr. had been brought before Congress and either a.) explain under oath and in detail what he was doing in Dallas on November 22, 1963, or b.) go to jail for Contempt of Congress for refusing to answer questions, we might get somewhere in finding answers as to who was behind the JFK assassination. Sadly, the justice system in the US of A is so corrupt the entire Bush crime family fits into this “justice” system like hand-in glove.

  12. emsnews

    And no information about the Malaysian flight in Ukraine even though the black boxes were found and examined six months ago!

  13. LOU

    WHO DUNNIT? I have not followed.

  14. Jim R

    LOU, it was a Ukrainian fighter jet from the junta government in Kiev. The Russians have published the name of the pilot.

    But the story can only be seen in Russian media. The physical evidence, body parts, recovered plane parts, the flight data recorders, and voice tapes from Kiev ATC, have been placed under wraps of secrecy (likely destroyed by now). The Spanish air traffic worker who tweeted about it has disappeared completely and his twitter account was deleted.

  15. William Bennett

    This was the SNB “no mas” moment. Cut your losses short before the ECB begins some serious QE…..may announce $750 billion this week.

  16. LOU

    Jim R, yes, I knew that much. But which country shot the plane down [or which terrorist group]?

  17. Jim R

    It was obviously Russia. /s

  18. emsnews

    The Swiss knew the EU would degrade the euro so they shut down the euro market in Berne to stop a blow up.

    Still hurt many but better to cut off the gangrene rather than die.

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