The Long Cold Winter

All things outside of Burning Man.

Postby cowboyangel » Tue Jun 07, 2011 7:37 am

[youtube]http://www.youtube.com/watch?v=VrNXDc7OR7g[/youtube]
"We'll know our disinformation program is complete when everything the American public believe is false."- William Casey, CIA Director 1981
User avatar
cowboyangel
 
Posts: 6987
Joined: Fri May 14, 2004 10:32 pm

Postby Ugly Dougly » Tue Jun 07, 2011 9:47 am

That's the winter I'm talking about. Hope that snowpack doesn't thaw too quickly, or we'll have flooding in Sacramento!
User avatar
Ugly Dougly
 
Posts: 16510
Joined: Wed Sep 10, 2003 9:31 am
Location: San Jose, CA
Burning Since: 1996

Postby cowboyangel » Tue Jun 07, 2011 7:02 pm

The melt has already taken lives in the Sierras....just need a Bushmaster Carbon-14 to compliment my outfit:-)
"We'll know our disinformation program is complete when everything the American public believe is false."- William Casey, CIA Director 1981
User avatar
cowboyangel
 
Posts: 6987
Joined: Fri May 14, 2004 10:32 pm

Postby can't sit still » Tue Jun 07, 2011 8:40 pm

If you watch this humorous vid, you will notice that there is a lot of debt owed back and forth; http://www.youtube.com/watch?v=LyePCRkq620
If you look at this short paper, you will see the claim that a great part of the debt can be mutually canceled; http://www.scribd.com/doc/56574244/Eurozone-Debt-Cancel
Phil makes this claim,,, "We are headed into a Depression because policymakers have made another Depression unavoidable. A policy-driven Depression is different than a financial crisis. It is a matter of choice."
http://ilene.typepad.com/ourfavorites/2 ... cylla.html
There is wide speculation that the whole crisis / crash is being driven to collapse,,, to bring on World GOV and World banking. D.C. is completely paralyzed. Apparently, the train is going to be crashed into a wall. It appears that the resulting crash will be used as an excuse to accomplish things that the legislature can't accomplish in it's current ?state?
The chief economic advisor to the White House has bailed out. I expect the paralysis to keep going until we get close to the Aug 2nd deadline. Strange things.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby can't sit still » Thu Jun 09, 2011 7:19 pm

This article spells out the problem VERY clearly;
http://www.chrismartenson.com/blog/death-debt/58941
Our financial system is unsalvageable. It is ONLY workable with ever-expanding credit. This article lays out much of the criminal activity behind the scenes; http://news.goldseek.com/GoldenJackass/1307649600.php This article shows very clearly that the crisis is a political crisis, not a fiscal one; http://theautomaticearth.blogspot.com/2 ... -junk.html
What can I say? It's all very depressing.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby can't sit still » Fri Jun 10, 2011 7:21 am

Commerce has always hated being under the control of finance. It looks like Commerce has come up with a possible solution; Bitcoin This is a writeup from the Daily Reckoning;
The War on Digital Currency
Bitcoin, Silk Road, and the Two Senators Who Would See Them Destroyed
Joel Bowman
Joel Bowman
Reporting from a cyber-bunker somewhere in Buenos Aires, Argentina...

A joke for you, Fellow Reckoner: How many Senators does it take to change a light bulb? Oh, wait, we've got a better one: How many Senators does it take to dismantle a cryptographically secured, completely decentralized, Peer-to-Peer (P2P) network of voluntary, free market traders exchanging goods and services across six continents using tens, perhaps hundreds, of thousands of individual computers and some of the most advanced cyber technology and software coding known to date?

Answer: we don't know...but Senators Charles Schumer (D, New York) and Joe Manchin (D, West Virginia), seemingly immune to common ignominy, have taken on the challenge anyway.

Your editor has no idea of the cybercryptography aptitude of the two senators but, as with most endeavors undertaken by politicians in the name of "your own damned good," practical experience and a sufficient understanding of the issue at hand are rarely prerequisites for intervention, again, "on your (unsolicited) behalf."

The two erstwhile wonks took to the presses this week, demanding something be done about one particular free-market affront to authority.

We are referring, of course, to the latest furor surrounding bitcoin, a P2P cyber currency setting the virtual - and, some would argue, actual - world ablaze. (We first brought you the story a couple of weeks ago, when bitcoins were trading for roughly B$1 = US$7.5. As of this morning, they've shot up to B$1 = US$31.5. See here and here for a "bit" of background about them and about the pitfalls of government- backed currencies in general.)

Long story short, bitcoin is a limited supply, decentralized digital currency; a free market alternative to state issued notes and coins. As such, it poses a direct - though entirely non-violent - threat to the state's monopoly on counterfeiting. This, cry the powers that be, must not be tolerated. Of course, before any politico can act, they must first have a distraction, a fall boy, a pretense, a reason for rescuing us from the horror that is our own decision-making capacity. We picked it in that first column, the relevant portion of which is reprised here:

Another cause for concern among bitcoin skeptics is that, as the economy of the free market currency expands it will inevitably begin posing a threat to the state's own money-printing racket. It will, thereby, raise the ire of bankers and politicians who will have every incentive to make the currency illegal in order that they may protect their own monopoly and continue cheating their citizens of the value of their president-stamped notes and coins. Given the state's nature when it comes to these matters (and here we refer readers to the recent and despicable case against Bernard von NotHaus) there is every reason to expect that it will indeed crack down...and hard.

Here we expect all the usual arguments from all the usual suspects: "Bitcoin transactions are anonymous and therefore provide cover for peddlers of child pornography and drug traffickers," they will contend.

But the astute reader knows in his gut there is something very wrong with this line of thinking right from the beginning. Cash is anonymous too. People by things deemed illegal by the state with state-issued currency all the time. So what? Does this mean US dollars should be banned? Some people drive their cars recklessly, with little or no regard for their own safety or for others'. Should we ban cars?

The question, however, is not whether the Feds should do something (moral considerations have rarely, if ever, stopped them before), but whether they could do something, even if they wanted to...

Now that we have a little background, let's get back to those busybody senators. As one might imagine, a virtually untraceable currency - such as bitocin or...umm...CASH! - might find use as a medium of exchange to purchase both white and black market products like, say, drugs. Such was the case with Silk Road, a website where users (literally) can buy illegal substances with bitcoin.

Said Senator Chuck of Silk Road and bitcoin in a news conference on Sunday:

"Literally, it allows buyers and users to sell illegal drugs online, including heroin, cocaine, and meth, and users do sell by hiding their identities through a program that makes them virtually untraceable." Apparently, the senator wants Silk Road shut down immediately with bitcoin, no doubt, soon to follow. The pair have written to Attorney General Eric Holder and the DEA asking that action be taken to crackdown on Silk Road.

Now that the pair have their straw man, we can be sure it will be used as a pretense to attack free-market currencies themselves. Stay tuned as the story unfolds on that front...

For now, we wonder what users of bitcoin are to do now that the self- appointed invigilators of free market activity are on their case? Well, for the past few weeks at least, they've been rejoicing. The currency has almost quadrupled in value since the Silk Road issue came to the fore.

Bitcoin enthusiasts may wish, therefore, to thank Senators Schumer and Manchin for, without their commitment to proffering illogical, largely ignorant remarks in the nation's mainstream press, bitcoin might have taken a while longer to reach the critical mass on which it must now surely be verging. "Bravo, Senators," we can almost here the cyber underground chorus, "Thanks for the free publicity!"
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby can't sit still » Sun Jun 12, 2011 1:01 pm

This is an excellent summation of the current financial problems from a theoretical view. It is from this site; http://theautomaticearth.blogspot.com/2 ... -gold.html
The essence is; capital has starved out labor. Labor can no longer provide the growth that is absolutely necessary for capital to survive.


Darbikrash:

"Great series of articles Ashvin!

I think you bring a fresh perspective to the Marx/Keen/Harvey axis in coupling these theories to the discussion of gold. I had posted something congruent with these ideas on the ever popular subject of alternate currencies in another thread. You’re quite right, at the center is the struggle between labor and big business [the material dialectic of Part I], which I define as multi-nationals.

This struggle sets up a natural and quite healthy tension between the two opposing forces. When this healthy tension is displaced [it inevitably must be displaced over time], to either direction of bias [labor vs. capital], bad things happen. The convergence over the last three decades of the neo-liberal agenda, and the capture of the mainstream media by conservative business interests has resulted in the disruption of this tension away from the side of labor.

Propelled by the momentum of the burgeoning success in minimizing organized labor, business and conservative interests teamed together to usher in an ongoing era of deregulation and complimentary legislative climate that promoted favorable tax incentives for big business. These incentives were leveraged to follow with near perfect parallelism along with Marx’s prediction of capital heading to markets with unlimited low cost labor surplus [although Marx may not have envisioned the extent and longevity of economic "globalization"].

It is an irony lost on many that the perfect climate for capitalism's magnum opus was to be under the color of a totalitarian Communist regime- embodied by mainland China [under it's "false flag" of Marxism, so to speak]. This diffuse and disjointed labor base was confronted with several classical Marxist predictions, a profound loss of collective bargaining power as the threat of job outsourcing to China and Mexico stymied any meaningful protests for re-organization.

This resulted in lower wages for those lucky enough to retain jobs, and Marx’s predictions about consolidation of capital are demonstrated in the aggregation of “big boxâ€
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby FIGJAM » Mon Jun 13, 2011 4:49 pm

Read this or listen to it, I thought it was pretty good.

http://www.radiofreeoz.com/are-you-a-dodo/
"Don't buy ur Burn...........Build ur Burn!"

"If I can't find an answer, I'll create one!!!"

Fuck Im Good Just Ask Me
User avatar
FIGJAM
 
Posts: 8567
Joined: Thu Mar 25, 2010 10:39 am
Location: apache junction az.

Postby geekster » Wed Jun 15, 2011 5:32 pm

Meh, we can debate till the cows come home about what the "cause" is, it doesn't really matter at this point. What we need to do is look at where we are and figure a way out of this mess.

Basically the people as a whole have seen their largest investment, their home equity, wiped out due to government policies that forced mortgage companies to lend money to people who couldn't afford it.

That happens at exactly the same time that the largest generation in US history is starting to retire.

Businesses aren't spending any money because there is a whole shitpile of new regulations coming down the pike that have not been examined for impact to the economy:


Last week, in a much-discussed, open, live, televised forum, Jamie Dimon, the CEO of JPMorgan Chase, asked Federal Reserve Chairman Ben Bernanke the $64 trillion question. While most commentators focused on the apt question, it was Bernanke's answer that shocked me when I heard it -- and ought to shock the nation much more than it so far has.

Question: "Now we're told there are going to be even higher capital requirements, and we know there are 300 (financial regulatory) rules coming, has anyone bothered to study the cumulative effect of these things? And do you have a fear -- like I do -- that when we look back and look at them all that they will be the reason that it took so long for our banks, our credit, our businesses and most importantly, our job creation, to start going again? Is this holding us back at this point?"

Answer: "Nobody has looked at it in all detail, but we certainly are trying, as in each part to develop a system that is coherent and that is consistent with banks performing their vital social function in terms of extending credit."

...

The bald-faced admission that there has been not even an effort at assessing the cumulative load-bearing effect of the proposed new regulations on our financial system brings into question the minimal competence of both the Federal Reserve governing board and the most senior elective and appointive level of the U.S. government -- which has the ultimate responsibility for the new financial regulations.


So there you have it. You have regulators in a panic passing regulations so they look like they are doing something but nobody has looked at those regulations "in detail" to judge what impact they are going to have.

This is pure idiocy. 100% incompetence. This administration is just plain stupid. I still believe they are on a mission to destroy the economy of the US because it looks like every decision they make is one where they go out of their way to do the maximum possible damage to the economy.

We need to get these idiots out of there as quickly as possible and purge those fools from government all the way down to the level of assistant deputy dog catcher.
Pabst Blue Ribbon - The beer that made Gerlach famous.
User avatar
geekster
 
Posts: 4870
Joined: Wed Sep 08, 2004 2:53 pm
Location: Hospice For The Terminally Breathing

Postby can't sit still » Wed Jun 15, 2011 7:36 pm

Geekster, I won't argue with anything that you say. One discouraging aspect that I can't forget is; "power corrupts and attracts the already corrupted". Another factor, "ALL democracies eventually go bankrupt". How do we escape these problems?
We are in a Marxist / Hegelian "creep' where GOV employs half the workers. This bleeds dry the productive sector. The "electronic age" has facilitated fascism. Where do we go next?
The pols don't have a fucking clue what to do. They prayed and hoped and threw money at the problem. What did we get for it? http://www.cnsnews.com/news/article/aft ... ing-19-mil

Is it a lack of political will or a lack of political know-how? Goolsbee ran away as fast as he could. What does that say for ability. planning and confidence? Erskine Bowles came out and said that all of this was completely predictable.
http://www.youtube.com/watch?v=bjAg8Sx1fi4
He's as smart as they come.
Have you heard anybody say that they had the answer? Ron Paul has some suggestions. He does not claim to have a panacea. Things are deteriorating.
http://www.businessinsider.com/18-signs ... ing-2011-6
We could throw out all the politicians.... and bring in ,,,,,who? Who would they listen to? Who in academia has fronted a plan? Who has a plan anywhere?
Larry Harvey has a plan. It's called radical self-reliance. What percentage of people will that cover?
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby can't sit still » Sun Jun 19, 2011 8:28 am

This is an excellent paper by Martin Armstrong that does an impressive job of relating debt to currency. It explains why the conversion to the Euro was a disaster to Greece. It also explains who started this all in the beginning. " Karl Marx really set in motion the end of
times." http://www.martinarmstrong.org/files/Gr ... 6-2011.pdf
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby can't sit still » Sun Jun 19, 2011 8:51 am

This is a long technical article that came in mail. I have to post the whole thing to give it continuity. It explains exactly how the FED creates debt in our name. It explains hoiw and why we are ripped off.



Olde Reb <proliberty>


RIP-OFF BY THE FEDERAL RESERVE

Revised 5/30/2011


PREFACE: This mathematical analysis shows how:


1. The economic scheme in the U.S. of creating fiat book-entry money via T-securities in the amount of the principal of the security with a promise to repay the principal PLUS the interest (i.e., deficit spending), is impossible. The interest is never created. The debt must continually be increased to pay interest on earlier securities or the economy will collapse from de-leveraging;


2. The National Debt can never be paid off. Contracts that cannot be culminated are acts of fraud and are void from their inception;


3. The $8.4 trillion received from 2010 Treasury security auctions is hidden in the coffers of the FRBNY; its destination is undocumented and assumed to be profit of the Fed. (If it is used to redeem securities as claimed, there would be no inflation.) Whether concealment of this income from Congress is in violation of Title 12 section 247 requirement to submit a full report to Congress, or constitutes embezzlement, is for Congress to determine;


4. The Fed eventually receives the value of all issued securities as profit (it is inflation). The expense of maturing securities is not included in government records;


5. Congress has temporary benefit of ($1.4 trillion) deficit spending until maturity of the securities (the collateral). At maturity, the government must repay the value (of the loan) to the security holder. BUT THE VALUE OF THE REDEEMED SECURITY IS NOT REDUCED FROM THE FEDERAL DEBT.


6. Fiscal social obligations of the nation will be restricted while debt will escalate exponentially. Imposed social austerity and higher taxes merely postpones the inevitable.


7. The future explosion of interest (currently suppressed to “stimulateâ€
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Postby Simon of the Playa » Sun Jun 19, 2011 8:54 am

Image



blath·er/ˈblaT͟Hər/
Verb: Talk long-windedly without making very much sense: "she began blathering on about spirituality"; "stop your blathering".
Noun: Long-winded talk with no real substance
fuck you, it's magic


more panky, less hanky

A gift for the Playa

THIS YEARS POSTERS

2015 posters
User avatar
Simon of the Playa
 
Posts: 15630
Joined: Thu Sep 06, 2007 6:25 pm
Location: Rochester, Nevada.
Burning Since: 1996
Camp Name: La Guilde des Hashischins

Postby can't sit still » Thu Jun 23, 2011 6:10 pm

Y'all know that this board has a "plonk" feature. Those of you who prefer to NOT know where the economy is going would be well advised to use the plonk for my economic posts. I don't send anything to my younger brother because he loses too much sleep if he reads it. The "worrying" may indeed be worse than the actual collapse.

There are a few worried people. "Greenspan discusses the debt problem and notes that most think the U.S. has about two years to solve the debt crisis. He suggests that a crisis could happen at anytime"
http://www.economicpolicyjournal.com/20 ... reece.html

Stockman, the former budget director has this to say;
Stockman: Warns on U.S. “Bond Armageddonâ€
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Wed Jun 29, 2011 6:58 am

This is an important essay. If everyone understood the ideas here, it would clarify most of the reasons behind our financial mess.

My name is Hank Monrobey. In spite of my typically American name I am only a guest in your country as a result of my marriage with Marjory the American part of my small family. So forgive me when I am sometimes using typical continental European expressions and grammatical failures for which I normally use my partners to turn them into plain American English.

The problem of economic "scientists?" in the United States is that they use a collection of figures to enrich their knowledge that is mostly unworkable. The whole of the United States is too much to chew. In my humble opinion you can not learn anything from all those figures collected from the whole of the United States. To be able to learn the truth about the economy, you need in my opinion the following elements:You have to be able to have accurate day to day figures about the money creation.

You need to have the capability to measure exactly the velocity of money on a nearly monthly base.

You need the actual price level on a monthly base.

You need the GDP from the measured environment and that environment should be a stable economic environment where it is possible to investigate without much difficulties what is causing changes.

Well, such an ideal situation does not exist in the United States and I must be honest. At this moment there is not one place in the world where you can do this kind of research successfully. But until 15 years ago there were. Two countries, the Netherlands and France allowed before the mid eighties to research their economies with the possibilities to satisfy the needs as mentioned above. By the end of the eighties they changed their statistical method and after that the possibility was gone. The most ideal place to do that kind of research was before that change in the Netherlands and that is what we did in 1981. We went to the Netherlands to find economic knowledge.

We began to investigate what caused stagflation and we found the basic answer to that question in only five days and the answer is even simple to understand.

But before I give you the basic ingredients I want to make a remark about the real character of inflation.

We discovered that it has become a kind of bad habit to call every price increase inflation. As soon as something increases in price it gets the label INFLATED.

In April 1981 when our research in the Netherlands began and we took on to demystify the development of Stagflation, we discovered fast that stagflation got a chance to develop because we automatically called every price increase inflation. We have all clearly forgotten that inflation ONLY exists as a result of an oversupply of money.

An economy stagnates because of a lack of money and when then at the same time the prices go up you can not consider that inflation. There must be another reason. We found that reason. For those who need a reminder about the reason for the existence of the word Stagflation let me refresh your memory. Stagflation is developing when we become confronted with a stagnating economy while we observe at the same time inflation, thus rising prices.

In 1981 the Dutch monetary authorities were certain that they were dealing with inflation and fighting the inflation got priority above solving the stagnating economy. They began drastically to reduce the money supply. They fought, as you will understand a little bit later, the inflation fire with throwing economic kerosine on it. We informed the Dutch Government in 1981 that they were aiming for a million unemployed in 1984, without any real economic reason, but an economic mistake . The Minister of Finance wrote us that we were completely ill informed, went on with their Kerosene program and harvested as a consequence one million unemployed with a population of about 15 million in 1984.

This leads automatically to the question: Where did all the money go?

I want to give you a clear suggestion: Stop thinking about one economy. There is not one economy. There are two:

One economy is the real economy where we produce something, where we create real wealth. It is the PRODUCTION ENVIRONMENT.

The second economic environment, with a life of its own, is the FINANCIAL ENVIRONMENT, where they never have created any real wealth but where they hoard all the money that is pumped out of the production environment, because we developed the delusion that we can realize more profit in the financial environment.

In the financial environment we put all that money in a "straitjacket" and make certain that it stays in the financial environment to make a UNIQUE FORM OF REAL INFLATION and we call that INVESTING. We attract guileless people to become INVESTORS in guaranteed INFLATION.

We inflate the value of some remarkable assets. Stock, and real estate are the most important.

We use all that hoarded money to trade in a market with very little supply and without consumption and we screw the prices up to create fake wealth, because we begin with using all that hoarded money for the creation of massive inflation in a closed economic environment, called the UPPER LEVEL of the FINANCIAL ENVIRONMENT.

As soon as somewhere a money reserve develops in the production environment we pump it into the financial environment, because we have fallen for the believe that we can make there more profit.

Consequently, the place where we can make real profit with real wealth in the production environment can not compete with the fake profit in the financial environment. Making more than normal profit in the Production Environment is restricted to monopolists or semi monopolists.

Because not everyone get the same chance to build a superb monopoly like Bill Gates, the money flows automatically to the place where we think that we can make more profit, the financial environment. That profit is totally inflated and consequently not existing, not backed by any real value. So we get two different types of money, but we have no possibility to see the difference. Both dollar or guilder bills look exactly the same.

Money operating in the financial environment has probably less than one percent value of the money that operates in the production environment. As soon as money arrives in the Financial Environment it loses its capability to produce anything. Consequently it can not make any profit.

The capital hoarders make certain that the prices in their financial market will fluctuate regularly, because without fluctuation nobody will earn a dime in that environment. The consequences of this system makes certain that the rich become richer and the poor become poorer.

And here are the basic ingredients for the development of stagflation.

We pump all the money into the "straitjacket" environment of the UPPER LEVEL of the Financial Environment and use it exclusively to pump the prices in that environment up. We have there lots of money concentrated, all hunting for that remarkable profit without any body. Because it is nicely "straitjacket" it does not go anywhere else. We use it to buy a product that is not consumed. A product with a nearly eternal life that constantly changes its ownership and that has to change ownership when someone wants to make bubble profit.

This product "paper", represents a value of a business. That value is down to earth calculated by busy accountants and the IRS. The price of that paper in the form of "shares" or "deeds" is not in any form related to that "down to earth" character but is defined by the amount of "straitjacket" money that is available to buy.

So we create a bull market at the expense of the production environment where the money disappears. The joke is that the people who transfer their money to the UPPER LEVEL of the FINANCIAL ENVIRONMENT believe that they are really "investors" while they don’t invest a dime. They are only buying and selling paper to make the prices swing and most of them don’t have a clue about the reality that you can only make profit in the paper lane when the prices are swinging.

So, we create a shortage of money in the production environment and the "investors" forget mostly to invest in the only place where it makes sense to invest and that is in the production environment. They "pass" to do some real investing because you cannot make enough bucks in the production field.

Nobody, is aware of the very severe consequences of this remarkable behavior. Because the constant stream of money from the production environment to the UPPER LEVEL of the financial environment causes a lack of money in the production environment. Consequently, that lack of money causes stagnating economic activities in the production environment.

But we have a solution for that problem. We are going to create debt. We have to go to the LOWER LEVEL of the Financial Environment where they create money out of nothing for a price to solve the shortage of money developing for the businesses in the production environment. Of course, borrowing money costs money, lots of money.

Consequently, the costs of production goes up because of the higher capital costs.

Don’t forget that business "A" brought somewhere in the past an amount of money into circulation that should continue to work for business "A". The owners of Business "A" expected that their money would recycle and come back to them in the form of sales. That is the logical way of working of the economy. We really learned our lessons about money CIRCULATION.

However, someone decided to discontinue business "A"’s money recycling process. Of course, that someone did not know what he or she really was doing, but by simply taking money out of the production environment, you are simply transferring the life elixir from someone else into a non-productive environment, where it is not doing anything of value. By believing that you enrich yourself you are causing poverty and economic chaos to someone else and probably a little bit later to yourself.

So Business "A" sees clearly a decrease in its money reserves and has to go to the bank to fill the gap when the business wants to stay alive. Because their money turned somewhere in the supply chain into a reserve of another person or company and that person decided to let it disappear into the "straitjacket" environment of the financial world, the money is forever gone. And Business "A" has to reinvest the same amount of money lost to the UPPER LEVEL of the Financial Environment to stay alive. The reality is that every penny that becomes a part of the "straitjacket" forces in the upper level of the financial environment, returns rarely to the production environment. Consequently, the former owners of that money who brought it into circulation are now FORCED to go to their lenders and borrow new money at any price.

When anyone of you has ever served as a consultant to privately owned companies, as I have done since 1968, then you know how clients were forced to go to the bank, time after time to fill up their lack of liquidity. They never understood why they were forced to borrow more and more money. Not only that. They had to borrow money for any price.

Consequently the costs of production goes up, because business "A" is forced to increase its production costs with higher costs of capital. And of course, businesses "B, C, D, E .........up to Z" in the supply chain have all the same problem and experience. They are all forced to increase their prices because of higher capital costs. If you had not noticed it, but the accumulated costs for the financing of consumer products is in the Western world risen to more than 50% of the consumer prices.

When we in 1981 discovered this development and understood that the monetary authorities called those rising prices INFLATION, we were flabbergasted. Those price increase had not developed because of an oversupply of money, but because of an extreme increase in the costs of capital that became scarce in the production environment and played useless money games in the UPPER LEVEL of the financial environment, while the lower level of the financial environment made overtime in filling the gaps in the "plundered" environment.

When you think that I am joking here, then let me give you a small picture of some bitter experiences in a small really rich country. After completing our research in the spring of 1981, I traveled in the summer of 1981 through that country with a Dutch associate. We spoke with bankers, with industrialist, with politicians and Labor Union leaders. We got friendly receptions and big and friendly smiles but did not harvest any reaction that would turn the tide. We wrote letters and sent reports to those men and women who were unreachable for us, because they were too high placed on the political spectrum.

Today’s Prime Minister of the Netherlands Willem Kok, was one of those who got our message in writing. Kok appreciated my work and wrote so in a personal letter. At that time he was the chair of the association of labor unions of the country. But in his letter, Willem Kok expressed clearly the dilemma of understanding. He wrote that is was so clear that there was inflation in the country because the people had to pay more nickels (dubbeltjes) for their groceries. Willem Kok had not grasped the meaning of our message. I must confess, after twenty years I am much better equipped to explain what went wrong. This kind of reactions brought us to a last attempt to turn the tide for one million workers of that country who would become unemployed. I wrote a handwritten letter to Queen Beatrix of the Netherlands to warn her about the coming disaster. She answered that letter within 24 hours and wrote that she placed the letter in the hands of the Minister of Finance.

Six weeks later, I got a letter from a high ranked civil servant who taught me that I had to read the reports of the President of the Central Bank to become wiser. However, this President was the same man who had in my opinion caused the monetary mistake and had exported that mistake as well known economist to the United States during a dinner with John F. Kennedy in 1962 and later as President of the BIS in Basel (Bank for International Settlements) to his European Colleagues. I am talking here about a phenomenal idol Dr. Jelle Zijlstra who had become an internationally extremely well known expert about "The Velocity of Money." He wrote in 1948 a doctoral thesis about that subject and became the youngest Minister of Finance in Dutch history. Only six years after his promotion he gained already a Position as Minister of Social Affairs in the Dutch Government. It is very difficult to win a debate with this kind of power players, especially when the power player refuses a debate with an opponent who is not considered to belong to his class.

So, the world began to fight an inflation in the production environment THAT DID NOT EXIST. While inflation was rampant in the financial arena, specifically in the real estate environment and in the stock market, but did not exist in the production environment. However, they believed that the whole of the economy was showing inflation which means that the intelligentsia at the helm of the central banks began to increase the interest rates to curb the money supply. They did not have a clue that their increasing interest rates created an illusion of inflation that did not exist in the production environment.

This explains also why we did not see any really running inflation in the consumer prices lately. The only price increases that develop are resulting from increased capital costs and not as a a result of an oversupply of money. That over supply does not exist in the production environment. We enjoy that kind of inflation in the place where all the money goes and we enjoy it and made jubilant noises for television and radio when we were again excited about that great stock market. I have rarely seen in my life so much b......t.

The same story in a different form repeated everywhere in the world. I think that it should not be difficult for you all to complete the story and to understand where the money finally went and will stay Why? Well, guess whi will become the owners of all that money? Will it be you? Or will it be that 1% of the great Americans who already own 50% of the wealth of the nation? Guess which instrument made them the owners of that wealth!!!!!!

When beyond that the Governments allow that particular monopolies develop that lead to overcharging in prices, and the monopoly profit made, goes subsequently into that same financial market, you can forecast what will happen. Mr. Bill Gates will finally own everything in the world because one thing we as economists can do very well.

We can put one and one together and conclude that this will result in total slavery of those who will become dependent on Billies and their comrades.

When I look at the so called Budget surplus in practically every Western Country, purely developed from additional tax revenues from capital gains in the financial environment, thus completely financed with money without any value, then I have to ask myself: "Are they really that blind or only dumb?" You may give the answer.

We decided twenty years ago to do something about it. We were aware that we could not start doing something about it until the economic crowd would see the truth. I think we have reached that momentum.

We waited for twenty years to push the button to start protecting the innocent people, misled by US, you and I, the representatives of the economic profession who were not capable to see the truth in time to avoid a disaster.

When you want to know more about us you will find it on our website: <http://monrobey.com>

Two months ago Curtiss Priest wrote me that he would not stop ringing the alarm bell until this awful robbery system would be brought down. Of course, he wrote this nicely in Curtiss’ way. "So I seek a crash to end all crashes." I have given it a liberal translation.

He is most certainly one of those who I admire in bringing the truth on the table and in discussion. Those people are very difficult to find.

That brings me to the debt situation. We are, I mean the people working with the Monrobey Corporation, in the United States, Europe, South America, Africa and Asia the real experts in debt removal, whether you believe it or not. We remove debt at the heart. We know how to build a debt free society successfully and very profitably. It is so easy to understand that when we save the enormous amount of money that we have to pay annually to the hoarders and use if for ourselves, we don’t have to worry about retirement or recessions. We will have what we need.

It becomes time that we get a real economic science, where real science is applied instead of this caricature of science.

To make an end to this caricature we have started to send messages into the world, clearly expressing what we do:

Irving Fisher's Incomplete Formula.

Are you aware that removing interest from the earth would increase the wealth

Removing interest can decrease prices by as much as 50% doubling your income

interest-free economic environments everywhere in the world

A proven lack of economic know-how

The Disaster of the Value Added Tax

More Stagflation because of a failing money system

Always at your service

Hank Monrobey

hank@monrobey.com

http://monrobey.com
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby geekster » Sat Jul 02, 2011 2:35 pm

Oh, the irony:

Thirty years ago this fall, on October 18, 1981, a charismatic academic with rather limited government experience and with a one-word slogan, “Change,” was elected prime minister of Greece.
Pabst Blue Ribbon - The beer that made Gerlach famous.
User avatar
geekster
 
Posts: 4870
Joined: Wed Sep 08, 2004 2:53 pm
Location: Hospice For The Terminally Breathing

Re:

Postby Ugly Dougly » Wed Jul 06, 2011 1:24 pm

can't sit still wrote:Y'all know that this board has a "plonk" feature. Those of you who prefer to NOT know where the economy is going would be well advised to use the plonk for my economic posts.


I don't post things because I believe that they are the absolute truth.


Now I don't what to make of you, man.
User avatar
Ugly Dougly
 
Posts: 16510
Joined: Wed Sep 10, 2003 9:31 am
Location: San Jose, CA
Burning Since: 1996

Re: The Long Cold Winter

Postby Ugly Dougly » Wed Jul 06, 2011 2:27 pm

http://www.latimes.com/news/nationworld ... 1395.story
Illinois erases state's last writing exam
Eleventh-graders will no longer take the test, saving the state $2.4 million

Illinois high school juniors no longer will be evaluated on writing skills during the state's standardized tests every spring, eliminating the last Illinois writing exam and saving about $2.4 million amid budgetary shortfalls.

Gov. Pat Quinn signed the belt-tightening move into law last week as part of the state's spending plan. The writing assessments for elementary and middle school students were dropped last year.


That sounds reasonable.
User avatar
Ugly Dougly
 
Posts: 16510
Joined: Wed Sep 10, 2003 9:31 am
Location: San Jose, CA
Burning Since: 1996

Re: The Long Cold Winter

Postby can't sit still » Wed Jul 06, 2011 5:49 pm

Various GOVs worldwide are implementing all kinds of bogus programs to try to avoid default. The banks aren't buying any of it. They make an independent declaration. The investors believe that banks and not the GOV. GOV is losing control of the bullshit machine.
http://www.guardian.co.uk/business/2011 ... ty-default
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Tue Jul 12, 2011 6:36 pm

Well, the end of the Euro is at hand. The pols are so clueless, helpless and hopeless, that they had a 9 hour meting and said that they "needed to do something".
It's ALL over with. http://globaleconomicanalysis.blogspot. ... yback.html
Now that Spain, Italy and Ireland have been declared "junk", there is no way out. http://globaleconomicanalysis.blogspot. ... se-to.html
This will take down the French banks before long. The counterparty exposure will eventually come here. This is going to get very ugly and painful. I feel sorry for the Europeans. They didn't ask for this. The Eurocrats shoved it all down their throats. When the Irish GOV guaranteed Irish bank accounts, the die was cast. The PEOPLE didn't ask for this shit. The Eurocrats were absolutely convinced of their innate superiority over the mobs. The dumb fucks NEVER considered that the banks had THEM by the balls. They jumped right down the meat grinder in spite of their all-too-superior-knowledge.
The banks will pass ALL of the losses to their bondholders and shareholders. They will try to skate without losses. At the very worse, the bank will fold and the officers will be forced to take all that bonus money and retire somewhere nice.
The ECB is leveraged 23 to 1. A 4.3 % loss of value in assets will wipe out all their capital. Since they loaded up on Euro-trash, the loss is guaranteed to be at least 30%. When the French and Spanish banks crash, the U.S. banks will go down.
The Euro-zone is the largest market for Chinese goods. A currency crash will not be good for China.
CRAP !
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Wed Jul 13, 2011 8:07 pm

Here are some observations from The Daily Reckoning;

"Our thoughts are focused on the big picture. What we see is neither an Italian problem, nor a Greek problem, nor an American problem.

In our view, the whole structure of modern, developed social welfare democracies is ready to topple. And not just because of the latest financial crisis. The crisis that began in ’07 is just a flashpoint...just part of a huge turnaround that has been underway for years.

Guess how much the Italian economy has grown in the last 10 years?

Zero.

Guess how much net average wages in France have gone up since 1975?

Zero.

Guess how many net new employees the Japanese have added to the workforce in the last 20 years?

Zero.

Guess how many new jobs the US economy has created in the last 10 years?

Zero.

Guess how much the average hourly wage in the US has gone up since 1975?

Zero.

Guess how much the real, private sector economy of the US has grown in the last decade?

Zero.

Guess how much US housing – and household wealth – has increased since the beginning of the 21st century?

Zero.

It seems almost unbelievable, because it contradicts everything we thought we knew. Italy may be mismanaged. Greece may be a basket- case, but the US was supposed to be the most dynamic, adaptable, capitalistic, forward-looking, technology-absorbing, growth-oriented economy the world has ever seen. How could it go nowhere for more than a decade? How could an American’s labor not increase in value, while the economy becomes more efficient and more productive? "

Our fearless leaders in D.C. have spent many $ trillions trying to stimulate economic growth. It obviously doesn't work and they knew it beforehand. They needed to buy time to transfer all of the bank debt to magically transform it into public-debt.
http://www.heritage.org/research/report ... mic-growth A few quotes;
* A Journal of Macroeconomics study discovered that “a 1% increase in government size decreases the rate of economic growth by 0.143%.”

* Public Choice reported that “a one percent increase in government spending as a percent of GDP (from, say, 30 to 31%) would raise the unemployment rate by approximately 0.36 of one percent (from, say, 8 to 8.36 percent).”

* The Quarterly Journal of Economics reported that “the ratio of real government consumption expenditure to real GDP had a negative association with growth and investment,” and “growth is inversely related to the share of government consumption in GDP..
As the parasitic sector grows, it diminishes the productive sector. Since GOV actively follows Marxist-Hegelian strictures, It has every intention of growing without limit. Eventually, the productive sector withers away. GOV has papered this over with credit that imitates wealth but, isn't. Since this faux wealth was in the form of credit [debt], it has choked off the productive sector irretrievably.
The U.S. GOV is trashing the Eurozone / Euro in an attempt to survive. Like a drowning man trying to climb on top of his buddy who is also drowning, America will buy a short reprieve.
The answer is radical-self-preparedness and a stout set of earplugs.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Fri Jul 15, 2011 8:22 pm

This is an interesting statement for Prof. Martin Armstrong;
"that will only be an indication that the
Marxist world in the West is coming to an end just as it did in Russia and China"
http://www.martinarmstrong.org/files/Ou ... 3-2011.pdf
Armstrong refers to our present American system as the warfare / welfare state. It's hard to argue with this. 52.5 % of Americans rely on a check from GOV. There is no doubt that our wars are wars-of-choice. The claim "Marxist" might seem strange at first. Here are some numbers from the Daily Reckoning;
Bill Buckler, The Privateer, reckons:

" Today, the US government ‘GOVERNS’ 310 million people with an annual budget of nearly $4,000 billion and TOTAL (funded and unfunded) debt approaching US$100,000 billion. It takes about 5,400 times as many dollars and about 37,000 times more debt to ‘govern’ about 3.35 times as many people as it did a century ago. Why? The answer is equally simple. Today, the US government ‘governs’ everything. It is all pervasive. It has taken over the economy from its people."

This is how Marx and Hegel believed it should be.
A few years ago, GOV announced that it couldn't find $ 2.3 trillion at the pentagon. Recently, GOV admitted that many $ billions of cash had been stolen after being transported to Iraq. GOV also admitted that it had no idea how many entities there were in the American intelligence community,,, nor how many employees. The complexity and corruption is WAY out of control. U.S. GOV has slowly morphed into a command-economy run by psychopaths in D.C.
There can be no saving the country because the psychopaths will never stop what they are doing.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re:

Postby Here and there » Fri Jul 15, 2011 10:31 pm

Image

ygmir wrote:Image


Mmmm ... those are good eating. ImageImageImage Image




Image
When in doubt, hit the ignore key. You'll seldom miss anything worth reading, and your blood pressure will thank you.

My Homepage: Torchlight
Other Pages: My Foes List
User avatar
Here and there
 
Posts: 326
Joined: Thu Oct 09, 2008 8:30 pm
Location: Nowhere I want to be

Re: The Long Cold Winter

Postby can't sit still » Sat Jul 16, 2011 5:06 pm

The pols claim that there is only 2 days left to save the Euro. Sounds a bit harsh. http://www.express.co.uk/posts/view/259 ... eal-stalls
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Sun Jul 17, 2011 2:33 pm

Most of the attention and the antipathy has been directed towards the FED. This is an excellent vid supporting the contention that the FED is only a strawman.
The Exchange Stabilization Fund of the US Treasury
The ESF secret gold and currency dealings -- source of funding for economic black ops

ESF PART ONE
http://www.youtube.com/watch?v=2ssrcD5GdPQ

part two
http://www.youtube.com/watch?v=ImuVUab6WW0

The FED is a "front" for a consortium of banks. They perform the function of a central bank. The FED does not own the U.S. gold. It really doesn't have much in the way of capital. IF the ESF is the big Kahuna and NOT the FED, one wonders why Ron Paul is grilling Bernanke. The FED sent the bailout money to European banks. Was this done at the order of the ESF ? The U.S. is in full attack on the Euro. Who is behind this attack?
So, someone saturated the European banks with dollars. Someone attacked the Euro. Is someone hoping that the Dollar rises up above the fray?
The FED holds $ trillions in bad paper. They claim that they were completely paid back for their loans. Sure they were. They paid 100% of face value for junk loans.
There is a possibility that the FED will be thrown under the bus. The individual banks can walk away from the smoking shell. If the ESF "branch" of the treasury is the final power, they can torch the FED like it were a MAN in the desert. The individual banks walk away with the Treasury bonds that they received in exchange for the liar-loans. Freddie and Fannie go up in smoke. The investors get smoked big-time. Dunno,, have to wait and see.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Tue Jul 19, 2011 7:29 pm

The GEAB report just came out. They have had great accuracy in their past predictions.
"For our team, it's now the other half’s turn, the 15 trillion USD of ghost assets remaining, purely and simply vanishing between July 2011 and January 2012. And this time, it will also involve government debt, "
http://www.leap2020.eu/GEAB-N-56-Specia ... a6679.html
The GEAB team has been pretty accurate. They are now talking about the open warfare between the dollar and the Euro. The gloves have come off and the war is obvious. GEAB paints a picture where the Euro will survive because of anticipated actions. They believe that the ECB will soon implement the sale of eurobonds. They also believe that private capital WILL share the credit burden. I'm doubtful on both accounts.
I believe that all the credit default swaps and interest rate swaps will eat the various banks and treasuries alive well before any eurobonds can be conjured up.
I doubt very much that private lenders will buy PIIGS bonds. One German treasury official stated that it needed to be made compulsory. The high-risk bonds are demanding over 30 %. I seriously doubt that private investors can be forced to buy them for a survivable rate of 3.25 %.

The article points out that the Anglo-American money powers have fallen into a trap. They bad-mouth the shit out of PIIGS debt for BAD GDP to debt ratios. At the same time the GDP to debt ratios in the Anglo-American hegemon are far worse than almost all the debt in Europe. They have succeeded in making the dollar look just as bad as the Euro.

GOV has followed the ideas of Freedman and Keynes. They just don't work in the long run. The ideas of Fischer are proving to be far more accurate.
http://www.johnmauldin.com/images/uploa ... 071811.pdf
It would be smart to also include the ideas of the Austrian school, especially Mises. The whole thing is going to blow. The PTB need to make a very good examination of alternative theories. Academia has proved itself to be totally useless. The University of Missouri teaches economics aligned with the work of Mises.
Martin Armstrong is calling for a final collapse in fall of 2012. GOV will need to implement some BIG policy changes if America is to exit the chaos. I am not optimistic on a rapid change of course. It would entail too much loss of power to those who have always had all the power.
Even then, I don't see an easy return of jobs. There are 2 billion people who are willing to work for a little beans and rice. How do we wrestle away the manufacturing jobs? http://endoftheamericandream.com/archiv ... easy-steps
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Thu Jul 21, 2011 7:50 pm

This is an excellent report from Hudson. It covers a lot of ground;

http://www.globalresearch.ca/index.php? ... &aid=25676
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Thu Jul 28, 2011 8:28 pm

The mantra from GOV for the past several decades has been strictly Keynesian. GOV is supposed to do counter-cyclical spending when the economy threatens to stall out. GOV elected to do this spending in the war industries. This created the most lucrative transfer for the banking industry. GOV had to create endless war to justify endless war spending. GOV could have spent this money on NASA, infrastructure, education, foreign aid, renewable energy, clean water, etc. Nope, WAR was the fastest way to transfer the bucks to the banks. In the long run, this isn't sustainable,,,, except for the banks. Reportedly the tipping-point of the decline came in 2008.
http://theeconomiccollapseblog.com/arch ... r-shortage

Part of the reason for the emphasis on the war industries was because war supplied far more demand than the consumers. This was illustrated in Viet-Nam where the military was expected to blow up and burn up as much equipment and munitions as possible. Consumers just couldn't supply that much demand for goods. The program worked and subsequent military engagements were designed to destroy everything in sight and spur productivity. The bankers loved the rapid transfer of wealth to their banks. They lost sight of the fact that a country can't afford to operate on a war footing continuously. The consumer and the middle-class eventually went broke paying $ trillions for wars. The bankers were pissed off the middle class no longer had the money to keep them in gravy. They eventually came up with a solution.
"the transnational capitalist class is “utilizing the global crisis to impose brutal austerity and attempting to dismantle what is left of welfare systems and social states in Europe, North America and elsewhere” (GCL, p. 2). In other words, they are bolstering short-term profits by looting wages, pensions and taxes, rather than investing in real production."
With globalization, world-aggregate-salaries have fallen. There will be no return to prosperity as long as the worker is starved. We see that here in America. People just continue to cut back on luxuries first,, then discretionary spending,,, then necessities. Just as the markets went global, the crash will go global.
"The Global Great Depression we are now entering is therefore capitalism’s final crisis."
The bankers accumulated TOO much of the capital and now,,, they are trying to figure out how to revive the economy.
The financial elites are seriously worried that all their gazillions of dollars of precious bonds will just evaporate. They have meetings,,, they loan tons of money but, nothing works. Capitalist socialism is proving to be just as big a "bust" as communist socialism.
http://worksep.org/blog/2011/03/global- ... at-next%29

We're going downhill fast. http://dailybail.com/home/graphic-of-th ... not-1.html
I don't see any good solutions being adopted right away. GOV screwed things up so badly, 1% of the population is in the prison system.
http://en.wikipedia.org/wiki/List_of_co ... ation_rate
How do you turn around a country that spends trillions and trillions on needless wars.

GOV is talking about firing up the printing presses once again. It's NEVER worked before but, ""It's the wrong thing to do but that's all they [US policymakers] know to do" http://www.moneynews.com/StreetTalk/Jim ... 04095?s=al
NEVER worked.

A Keynesian-modeled economy can not survive unless their is constant growth of money and credit. The trillions of dollars of new money is not circulating in the mainstream economy. The mainstream economy will not survive.
http://dont-tread-on.me/feds-16-trillio ... y-of-life/

Meanwhile the financial powers have this attitude;
"Should America instead opt to evade these fiscal cuts by actually defaulting on debts accumulated by self-indulgent baby boomers, I would also like to flee Mars because such an outcome might be even worse.

Those who choose to breach America’s sacred bond to creditors across the world"

Real cute; the "self-indulgent baby boomers" These boomers paid in to these programs for most of their lives.
"America's sacred bond to creditors" ,,,, sounds wonderful, we should all live on the streets so that we don't break our "sacred bond".
Austerity is on it's way and it isn't going to be fun.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Sun Jul 31, 2011 5:58 pm

Y'all know that I don't post good news. Y'all know that I want fellow burners to be informed well enough to make their own decisions about the economy. I don't demand that any of you believe what I write. Here are some numbers. You can judge.

GOV is expected to spend about $ 3.8 trillion this year. http://www.usgovernmentspending.com/ This is a bit more than 40% of GDP. http://www.usgovernmentspending.com/dow ... 20of%20GDP
Here are some GDP growth numbers. “Working from Q309, forward, read GDP as follows:
“1.7, 3.8, 3.9, 3.8, 2.5, 2.3 ... now here it comes: 0.4 ... and then today’s 1.3%."
http://www.johnmauldin.com/images/uploa ... 072911.pdf

The fight over the debt ceiling is all about votes and nothing more.
"There are absolutely no meaningful fundamental differences between Boehner's plan that was approved by the House of Representatives yesterday evening, before being killed by the Senate two short hours later, and Reid's bill, which was just rejected by the House today in a pre-emptive vote before the Senate even had a chance to vote on it."
http://inflation.us/debtceilingtruth.html One could be forgiven from believing that all of this is done to give the banks a reason to raise the interest rate on treasuries.
"Over the last 9 months the U.S. has spent a total of $385.9 billion on interest payments on the national debt, which means it is on track to spend a record $514.5 billion this year on interest payments alone"

John Williams has this to say;
"His Shadowstats Government Statistics (SGS) analysis "reflects the inflation-adjusted, or real, year-to-year GDP change, adjusted for distortions in government inflation usage and methodological changes that have resulted in a built-in upside bias (aka cooking the books) to official reporting."

As a result, his annual growth calculation bottomed out in early 2009 at minus 6% GDP, elevated to over minus 1% in early 2011, and now has it at over minus 2% heading south"

OK, so GOV is borrowing and printing $ trillions to spend to keep the economy from stalling out. With GOV spending 44 % of the GDP, the GDP is still shrinking.
What would the economy look like if GOV hadn't spent $ trillions? GOV has tried to prime the pump and nothing is working. Some in GOV has recognized the futility of further priming.
52.5 % of Americans rely on a check from GOV. GOV sends out 81 million checks a month.

The FED has done the usual stupid stuff;
http://www.elliottwave.com/freeupdates/ ... onomy.aspx

More numbers. The FED recently printed up and distributed $ 16 trillion. U.S. inflation is running about 10 %.
GOV hands out $ 16 trillion,,, spends 44% of the GDP,,,, and all we can manage is 10% inflation. That tells you that we are falling in to a deflationary depression. A couple of the links mention the same thing.
GEAB claims that an additional $ 15 trillion will disappear between now and Jan. 2012. Should this prove to be true, then, a deflationary crash will be inevitable.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

Re: The Long Cold Winter

Postby can't sit still » Wed Aug 03, 2011 8:17 pm

"Ben Bernanke reportedly got drunk Tuesday and told everyone at Elwood's Corner Tavern about how absolutely fucked the U.S. economy actually is."
http://www.theonion.com/articles/drunke ... hoo,21059/
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.
can't sit still
 
Posts: 4645
Joined: Tue Aug 23, 2005 4:21 pm
Location: SoCal

PreviousNext

Return to Open Discussion

Who is online

Users browsing this forum: Bing [Bot], Roundabout and 6 guests