<hr style="color: rgb(255, 255, 255); background-color: rgb(255, 255, 255);" size="1"> <!-- / icon and title --> <!-- message --> http://www.oftwominds.com/blogaug09/KaPoom2CHS.htm The charts are included on the link but here is the text ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "The Royal Scam" by Anonymous Correspondent Are we at the end? These massive insolvable problems: where can they lead? The inattentive political class, too selfish to care. The corrupt and venal insiders, what can they do? What can they do? Here's an idea, taken from “And the Money Kept Rolling In” but brought to the front again by Janzen reviewing his now-10-year-old “Ka-poom” theory this week: Here's Argentina's CPI in 2001: Here's the chart, and this deflation head-fake has happened elsewhere, such as Weimar. See how Mish is right and there is REAL Deflation here? He's not kidding. CPI is minus 1% to 3%, while Case-Shiller CPI is minus 6%: Nevertheless, 3 months after Deflation begins in Argentina, Inflation rises to 120%. The Peso is devalued 73% The bond market collapses: And a few months later, Argentina defaults on sovereign debt, for a multi-billion dollar loss to foreign creditors. A mere two years later, the country is without debt, working hard, and booming. Hmm... Work with me here. Suppose, just suppose, that mathematically, the US Fiat system has a very certain, very predictable end date, easily seen even by such non-monetary critics such as Martenson's “Crash Course”. (Also http://www.youtube.com/watch?v=iIwyM...eature=related ) This certain end date is roughly when the parabolic curve goes vertical as mapped using the average interest rate of all national transactions—6% perhaps. And suppose, just suppose, that being no dummy and working with money as your sole object, clawing your way to the top of the Billionaire's club, you could see this coming. In fact, everyone can—all your peers who clawed through the same training, saw through the same veil, and are now in positions of unimaginable influence, having friends who are Presidents, Diplomats, nation-shaking Hedge Funds, and IMF/BIS bankers. And they all looked at each other and said: “This is bad, dahlink” and: “It's mathematically certain, mate,” then everyone together: “So what do we do?” Well, no one knows what to do. Nothing like this has never been tried before. The financial world has never had ALL baseless currencies before, and never has a country as large as the US been brought down except during a war that exhausted all nations together. The risks are too high just to guess what will happen if we pull lever X instead of lever Y when the end comes. So you pick a country a lot like America. Productive, hardworking, modern, agricultural, having a corrupt, spendthrift political class and an uninvolved, unassuming, spendthrift-but-hardworking middle class—a country the most like America. And you run a little experiment. What happens to a country when it does exactly what we're about to do? You influence leaders here, fund populist movements there, then get your friends to invest in this nation, knowing all along what's going to happen, and knowing that—because we know, we're making it happen—no one important will lose their money playing along. A nation like, oh, Argentina. You push foreign investment through banking and diplomatic channels from the top, while as in “Economic Hit Man” no one below the 1st level need know, and you over-invest in the country, buying the leaders and giving them every assurance that things are fine, they're not too far along, the world believes in them, and the IMF is right there to catch them. Until one day, you don't. Once they've gone too far to pull back, you spread some rumors, cause a run on some investments, then have your banking friends step back a bit. Then a bit more. Then at the 11th hour, despite daily promises all along the way, the IMF also leaves them in the lurch, cutting off their last foreign credit. What do they do? What do the people do? What does it take to keep them under control in this transition? Where are the pressures? Do they give in to interminable debt slavery to the IMF, or do they default on foreign investors? And what happens when they do? Does the world punish them or two years later is it like nothing happened? Meanwhile, on the other side of the world, with another placid, productive, agricultural, English-speaking country with a strong middle class and rule of law, also most like America, you try the other direction: unlimited inflation. In Zimbabwe, three eggs cost 100 billion dollars...back in 2008, before things got really bad. What happens there? Which way was better, for power, influence, and control in world affairs? Which way do the important people remain in power with less bother? Just a thought, mind you. I'm sure no one would actually do such a thing. Here's what happened in Argentina: the political leaders are dysfunctional and infighting, paying out to their home provinces, uncaring of the enormous debt and with no reason to care so long as foreign money could be borrowed. Meanwhile the economy began to rest more and more on bubbles and speculation funded by this foreign borrowing. When the balloon went up, the insiders saw which way it was headed and got their money offshore, something like Cheney and Halliburton did the other year. Then as things devolved, ever-increasing capital controls were put in place, just like now with the US investigating “off-shore havens” and profits one might have made overseas using the premise of money laundering to chain the firedoors shut one by one. Finally, they enforced the official “corrilito”, and soon after had an extended Bank Holiday for the 5 months it took to devalue the Peso by 73%--far faster than anyone not forewarned could adjust and react. Once every exit was chained tight, they firebombed the casino, trapping everyone inside. Even if you had thousands in stocks, bonds, and savings accounts, with the market frozen and the monthly bank withdrawal limit set at $300/mo, the little people could not pay rent or even eat, becoming “Cartoneros” garbage-picking architects and engineers, wandering the streets with their children at midnight as the nation devolved into a chaos that did not topple the ruling class. Once all the assets in the country had been discounted a minimum of 73%, the insiders then repatriated their money and bought their neighbor's fortunes for pennies on the dollar, finding cheap, hungry, competitive labor, ready to compete with even 3rd world wages. The prudent, hard-working, and savers (the wrong people) were wiped out, and the money was transferred to the speculators and insiders (the right people). Massive capital like land and factories can not be expatriated, but are always worth their USE value and did not fall as much, or even rose afterwards as with falling debt ratios and low wages these working assets became competitive again. It's not so much a “collapse” as a redistribution, from the middle class and the working to the capital class and the connected. ...And the genius is, they could blame it all on foreigners, “incompetent” leaders, and careless, debt-happy citizens themselves. Now I'm no genius here, but couldn't the United States do the very same thing? What you need to do is--and bear with me here--send your best Wall St. salesmen and diplomats to China and sell them a bill of goods about how they can “modernize” with our help. The Cold War is over. Capitalism reins. You know us Wall St. types! It's all about the dollar! Have the radio scream the President sold out and sign them up to the WTO as you suck Asia into massive overcapacity and a deep, unbreakable reliance on the US and G-8 as customers while paving over the national independence of their life-giving water and farmland. Then, once they've tasted freedom and affluence, once they're unable to support themselves independently, you pull the plug not on them but YOURSELF. Implode your own middle class as above. Kill the bond markets, cause a run on your own currency, and default on the debts you owe them. Hey, it's the only thing you could do, right? Americans are just stupid, right? Wall Street is just greedy. It's all an accident, an act of God really. No one's to blame. It's classic Judo. In a single stroke you: a) lose the burden of external debt b) by devaluation lose your internal debt c) make the nation competitive as a manufacturing power. d) scare the people back into compliance, even exultation with their low wages. e) with the renewal of manufacturing, re-cast the power that your military rests on f) during a time of Peak Oil, radically reduce unnecessary consumption while insuring strategic (military) supply. g) by doing that, suck in the oil powers of Russia, Iran, and Venezuela enough to knock them off-base, first with high prices, then low prices. h) club China into submission to the G-8 money powers again and best of all: i) enrich insiders beyond their wildest dreams, insuring their dominance for a generation to come. All the right people win, all the wrong people lose. Seeing the monetary parabola looming dead ahead after the near-miss of the Tech collapse, what do you need to insure this happens on a very tight schedule? First, knowing this will happen, you suck in your own people by demanding—straight from the top—that bankers loosen lending standards so low even the dumbest financier couldn't believe it was prudent, then refuse to prosecute even the most blatant corruptions by mortgage originators, fraudulent borrowers, and other “outsiders”. Suspecting this will all blow up, pay yourself today in bonuses instead of later in investments. Then, knowing you'll never repay, you jack up national spending beyond anything anybody's ever seen and go do what you want all over the world, in any country you want, with impunity. Then you have a scare that gives you cover to set up conduits that insure all the right people have lifeboats, even if it costs $23-30 Trillion, and even if the Hoi Polloi scream bloody murder. It'll all be over soon anyway. It was only a 3% GDP deficit that sank Argentina: But the US$ is not the Peso. You need to make sure it goes down on demand. You aim straight for $2+ Trillion yearly deficits for 70 years and threaten more if necessary. Hey, is this enough to insure a collapse, even of the world’s reserve currency? Is this enough to force China to cut us off and play the role of the bad guy we have planned for them? Funny how convenient that is, no? When every economist is screaming, “Mr. President, don’t do this, why are you doing this?” Why indeed. Hit health care as a way to make the people dependent on the government--innate independence is America's resistance to the plan—and a way of tracking and controlling them. Computerized medical records were the first thing they brought up, the highest priority, and have been attempted regularly over the years. (1993, 2004, 2009...) Use the 5 owners of nearly all media to keep up the drumbeat of the “other”: left, right, black, white, famous, religious, atheist, straight, gay, immigrant, commie, Muslim--whatever the people will buy--to insure confusion and infighting when the time comes. And here we are. Eye of the storm, explosives primed, waiting to pull the detonator. Any reason the US could not do this, and that everything these incredibly smart, ruthless, immeasurably connected people have been doing is actually not stupid but smart? And what if they believe what they're doing is all for the good of the country and are willing to take any measure, any action no matter how awful or unprincipled, because it will put America back on top again? And if they get richer than Croseus in the process, well, who's fault is it anyway? It's hard work after all. Like I said, just a thought. The real magic of a good Con is not to get the money. It's to do it in such a way that the Mark thinks he knows what happened, thinks he saw the Con you're pulling, when in fact, the real Con is somewhere else. There's a saying: “Before the scam, you have the dream and they have the money; while afterwards, you have the money and they have the dream.” If you want to know the real Con, when it's all over, find out who walked away with the money. Before then, you won't know. These Billionaires are the smartest, most unprincipled, double-thinking gamesmen in the world, playing the biggest, most dangerous games in the world, on a field where whole nations are at stake. They didn't get to where they are by being stupid, taking chances, and making mistakes. You can be sure they're not making them now. They have immense control in media, finance, military, government, business, and while every plan has risk and it might still get away from them, it sure won't be for lack of trying. And that goes for the gamesters in China and every other country worldwide who are try every day to do the exact same thing to back to them. It's the big boy's game, and when the elephants fight, the grass gets trampled. So when you're reading the news about how randomly careless and stupid everybody was, just remember the Argentine plan: all the right people win, all the wrong people lose, and the good people never knew what hit them. The Royal Scam aka Shaft the Little People!!! Laus Deo overbore <!-- / message --><!-- controls -->
Wow, But in the end argentina is back productive and strong (?) call me naive; but the bastids still bleed don't they?? Problem is cutting the heads off of even 98% of the snakes may still not stop the inevitable end if it's coming.
In a parallel situation to my garden weeds, Gents, I may cut the heads off of 98% of the weeds and yes some of the bastards still survive which is why Thomas Jefferson said " from time to time---" meaning the GOYA priinciple is required: Get Off Your Ass etts and do something positive to revoke the false legimitaicy of evil office holders--. HE said "he who builds his house on sand will have it collapse when the storms come" and my pragmatic opinion is that there is an economic storm now upon us and unbacked paper money is the sand of ruination!!! "We’re already spending way beyond our means—have been for decades. It’s taken just 200 days for the new president to double last year’s deficit. We already owe trillions and trillions of dollars to creditors overseas. Add to that the tens of trillions more we’ve robbed from “trust” funds, like Social Security and Medicare. Now federal tax revenues are plummeting. No wonder it’s taken just six months for President Obama to backpedal from his campaign guarantee that 95 percent of Americans would “not see their taxes increase by a single dime.” In actual fact, heavier tax burdens on the wealthy, the poor—and everyone in between—will not bail us out of the bottomless pit we are in. Sure—we may still muddle our way through a few momentary “upturns”—prompting pundits who were blindsided by last year’s downturn to then boldly proclaim that we’ve reached the bottom—we’ve survived the worst of it! Sadly, as volumes of history books confirm, the worst is yet to come!!!!. Our addiction to credit, our skyrocketing deficits,out-of-control and horribly wasteful spending, mass-printing of paper money,runaway inflation, crushing taxation, ever expanding, strength-sapping welfare programs— these are all curses that will result in our economic ruin. Never mind what some “experts” say. Bankruptcy is inevitable. The handwriting is all over the wall. The prior poster has it about right, IMHO. Laus Deo overbore
What is really bizarre to me is this: Why do those in power think raising taxes will help? We have gone over and beyond that several times now... And, to make matters worse, there are fewer taxpayers today, as a 'whole lot of people' have no jobs! No jobs = less taxes. They no longer "count" as their unemployment benefits have run out, so they are no longer on the "rolls". Something has gone wrong in their math, and it is blatant. Someone lately has stated that even if they took all the money away from those that are considered to be rich in this country, the deficit could never be balanced.... How on earth do these idiots think they can tax their way out of a mess, when they keep writing checks for un-wanted, and un-needed "programs"? Maybe it's just me, but I'm sure glad I bought some acreage!
The Author of that article has no conception of global enterprise, and has an even weaker perception on the status of China and its modernization. Nevertheless, the point has been made I assume...whatever that is. The monetary systems of the world are scientifically controlled; utilizing the modern practice of stocks and corporate enterprise to essentially enable a very controllable outcome through the use of persuasive opinion. The overall scheme is to enable financiers to snatch and grab key geographic regions and their holdings, and with careful deliberate action, steer the individual countries of the world wherever they choose. The prospect of creating wars for profit and funding both sides does not truly create debt; it only proves to further expand control and add to the precariousness of each nation. Since the "money" is worthless, the only tangible assets trading hands are that of property, as the 'citizenry' is forever to be held accountable by means of taxation and class struggle in order to create the appearance of legitimacy. The model of purchasing credit is the creation of bankers, and has become a silent war between the super rich banking combines in order to not only empower a few, but to also further disguise the true inherent flaw in usury on such a grand scale. The primary role of the IMF and World Bank, is to take over pre-existing currencies belonging to nations which did not see "eye-to-eye" with the banking cartels of the past. The deal brokered by these swindlers of currency is nothing to be jealous about -every nation has its price to pay. As I said before, the few become richer...and entire civilizations pay the price for their greed. The contractual obligations to the IMF keep the country indebted to it from drawing away; and from doing business which is not 'authorized' (see also, not profitable for the corporations of choice.) This is not the end, however. We have only barely mentioned the global corporate empires at play, in the laziest of context, mind you. The true name of this game is not money, it is not politics....it is pure, unadulterated control. A caution to the brave, however -only a few truly have it, and none with the will to relinguish it.
No concept of International Business???? Scientific Control???? Author, FYI, was Chairman of the Board of an international business corp and spent more time outside th US over a 25 year period than in.--- Geithner asked Congress for an open ended increase in the debt ceiling Friday, if you missed that key development--. The Federal Reserve has , is and will continue to monetize our debts this way: Treasuries are not fully subscribed per last week. A 'third party" buys the balance. Treasury re-purchases the fiat paper. That is trying to fly up your own "warm dark place where too many heads are" in a fiscal sense. This is a Wiemar Republic Scam but because of vast egos with no operational expertise, they expect different results. Einstein defined that modus operandi as idiot like. Go argue with him---. Question: from a historical perspective: how many currencies have defaulted or been replaced since the World Bank started? Part two: what is the end result of debasement of our dollar???? Scientific Control???? by whom and how???? Do the results verify your allegation??? I will name five just from memory---. Russia, Argentina. Brazil, Italy and my favorite for Africa is______. Read this please that post you opinions: http://mises.org/resources/4016 For those not fiscal history buffs, based upon a 1897 Dollar, our paper unbacked paper currency is now worth how much???????? ONE CENT!!!! copper, pre -1983 not alloy!!!!) Laus Deo ovberbore
Here is independent yet scary confirmation for the most pragmatic: " US bond investors are braced for a testing week, dominated by record $75bn in debt sales by the US Treasury and the Federal Reserve’s policy meeting, which concludes on Wednesday. Treasury yields have been rising and are back at levels last seen in early June, with the yield on 10-year notes trading at 3.84 per cent on Monday. <embed type="application/x-shockwave-flash" src="http://financialtimes.a.mms.mavenapps.net/mms/rt/1/site/financialtimes-pub01-live/current/mp_usdv/ftmini/client/ftmini.swf" style="" id="mavenFlashPlayer" bgcolor="#000000" quality="high" name="mavenFlashPlayer" play="false" scale="noscale" salign="LT" scriptaccess="always" allowscriptaccess="always" menu="true" allowfullscreen="true" flashvars="GEO_CODE=undefined&referralObject=8052529&CHANNEL=US Daily View&CHANNEL_URL=http://www.ft.com/usdailyview&playerId=mp_usdv&playlistId=5a563cff5208d08584158db91936038d50488655&allowDomains=www.ft.com" height="274" width="272"><script type="text/javascript" src="http://financialtimes.a.mms.mavenapps.net/mms/rt/1/site/financialtimes-pub01-live/current/mp_usdv.js" id="mp_usdv"> //the JS file that is included is called <playername>.js - the id value is the playername again </script><script type="text/javascript" id="settings" src="http://financialtimes.a.mms.mavenapps.net/mms/rt/1/site/financialtimes-pub01-live/current/mp_usdv/ftmini/client/settings.js"></script><script type="text/javascript" id="mavenplayer" src="http://financialtimes.a.mms.mavenapps.net/mms/rt/1/site/financialtimes-pub01-live/current/mp_usdv/common4.1/client/mavenplayer.js"></script><script type="text/javascript" id="mpExtensions" src="http://financialtimes.a.mms.mavenapps.net/mms/rt/1/site/financialtimes-pub01-live/current/mp_usdv/ftmini/client/mpExtensions.js"></script><script type="text/javascript"> var video="yes";function loadMavenPlayer() {var geoAYSC = document.cookie.match(/AYSC=([^;]*)/) ? RegExp.$1 : "";var geoCountry = geoAYSC.match(/_14([^_]*)/) ? RegExp.$1 : null;var mp = new MavenPlayer('mp_usdv'); //again - the same playername as used for the .js as well as the id mp.setParameter('checkSystemId', 'systemRequirementsHTML');mp.setQueryParamsAsVariables(false);//this is how you pass along flashVars: you simply call setVariable on mp - the first param is the flashVar name, the second is the actual value mp.setVariable("GEO_CODE", geoCountry?geoCountry:"undefined");mp.setVariable("referralObject","8052529");mp.setVariable("CHANNEL", "US Daily View") mp.setVariable("CHANNEL_URL", "http://www.ft.com/usdailyview") //once all the variables are prompt the script to write out the object tag mp.write('flashParentHTML');}loadMavenPlayer();</script>EDITOR’S CHOICE Video: Michael Mackenzie on Treasury sale - Aug-10 The Trading Room: News and analysis on global exchanges - Jul-28 In depth: Central banks - Mar-09 Traders would not be surprised to see the benchmark test 4 per cent ahead of a $23bn auction on Wednesday. The sale will be held about an hour before the Fed’s meeting finishes, which could result in lacklustre demand for the new notes. David Ader, head of government bond strategy at CRT, said his research and trading house was “leaning” towards a bearish view of the Treasuries market with a test of 4 per cent yield level for the 10-year note. “The trading environment is not very liquid, volumes are low and the risk appetite of dealers is also limited,” he said. Traders face the auction of $37bn in three-year notes on Tuesday and $15bn of 30-year bonds complete this week’s debt sales on Thursday. While the central bank is expected to reiterate that rates will remain low for an extended period, investors are focused on the outlook for the Fed’s policy of purchasing Treasuries and mortgages. “Uncertainty about the fate of the Fed’s Treasury purchase program is likely to make investors cautious in bidding for the new 10-year note,” said Lou Crandall, economist at Wrightson Icap. The Fed has nearly completed meeting its target of buying $300bn in Treasuries, with about $250bn already purchased. But last week, the Bank of England decided to boost its quantitative easing limit. That has some people thinking the Fed could seek to buy more Treasuries in order to keep market rates low. At its current pace of buying, the Fed’s Treasury programme should finish in six weeks, while the purchase of $1,250bn in mortgages should be completed by the end of the year. Some analysts think the Fed should adopt a flexible approach and extend the terms of the Treasury buying programme until the end of the year. That way, the Fed could buy fewer mortgages and more Treasuries, should yields rise sharply in the coming months. “It would make sense for the Fed to give themselves room to buy more Treasuries later this year, if that is required,” said George Goncalves, head of fixed income strategy at Cantor Fitzgerald." If anyone with an IQ larger than his shoe size read this underlying data, you will instantly see that my post about the Fed tryng to fly up itself is verified--- by the Financial Times of London, today----. Laus Deo Overbore
I am not questioning the validity of the debasement of currencies, I merely object to placating the issue and treating it like we can simply look at it on such one dimensional terms. My point is, that the currencies in question are not the real argument; it is the institution itself. The banking cartels can debase currencies over and over again....and just invent a new one to take its place, essentially perpetuating control. Unless we abolish the FED and all private banking, we will never EVER rid ourselves of usury, plain and simple.
AGREED, SIR. The central banks will attempt to re-inflate but the proximate problem is best summed up by this report of today: "One-sentence reduction: The financial system is screwed. This crisis was years in the making, and it won‘t be resolved overnight. But we are now ten months into TARP, and troubled assets remain a substantial danger to the financial system. Treasury has taken aggressive action to stabilize the banks, and the steps it has taken to address the problem of troubled assets, including capital infusions, stress-testing, continued monitoring of financial institutions‘ capital, and PPIP, have provided substantial protections against a repeat of 2008. These steps have also allowed the banks to take significant losses while building reserves. Nonetheless, financial stability remains at risk if the underlying problem of troubled assets remains unresolved. English: Treasury has conspired with the banks to intentionally pump stock values which has led to them being able to sucker people into giving them more money for what will soon be proved to be worthless stock. The bagholder is you. No real progress can or will be made on "troubled assets" because doing so would force recognition of bankruptcy of these institutions; "waiting it out" depends on the fanciful belief that consumers will be able (and willing!) to borrow, but there is no more borrowing capacity in an amount sufficient to make this happen. One-sentence reduction: We're screwed and a repeat of 2008, writ even larger, is now visible. Be long on guns, ammo, and food and short banks. Credit derivatives on sub-investment grade assets create large amounts of unregulated exposure to potential defaults on lower quality loans, amplifying the effect of defaults. Similar to past due securitization assets, credit derivative exposure for subinvestment grade assets experienced a significant uptick in the same period. Sub-investment grade credit derivative exposure for the 19 largest BHCs grew from $1.6 trillion in year end 2007 to $8.9 trillion in the first quarter of 2009 as a result of downgrades. " As of today, the Financial Times of London is reporting that the English banking system has a 33% chance of failing shortly--- overspending--. sound familiar??? This then, IMHO , is our near term problem as our dollar is gradually being rejected first as a sound investment and additionally as a store of value. Laus Deo Overbore
