The UNTAPER and Ponzi finance
Eyes wide shut!
The funding of moral and fiscal insolvency continues to BARRELL along. The whole developed world is INSOLVENT and the public just muddles along as the bagman for the behavior of the very people they have placed their trust and futures in. The vast majority of the world has bought hook line and sinker the thought that they can SOMETHING for NOTHING and are attempting to realize this dream.
They believe they can live a good life without working for it. That they are entitled to the fruits of others labor, known throughout history as slavery, but now the word for it is FAIRNESS. That wealth and prosperity can be printed out of thin air with no consequences to the world at large.
They believe that you can consume more than you produce without descending into insolvency. That you can borrow money for consumption and leave the bill for future generations to pay. That you can steal from the public and transfer it to government, bankers and crony capitalists without destroying the fabric of the economy known as the MIDDLE CLASS. How much pain must be generated to disabuse them of these ideas? WE WILL FIND OUT!
To them I say they must know the first lesson in Econ 101: TANSTAAFL – There ain’t no such thing as a free lunch! Today I am going to start off with a few quotes from Gentlemen that are widely recognized are as some of the smartest men in history.
“Paper is poverty. It is only the ghost of money, and not money itself.”
“In the end all paper money returns to its intrinsic value: worthless”
“Nations are not ruined by one act of violence, but gradually and in an almost imperceptible manner by the depreciation of their circulating currency, through excessive quantity”
Nicholas Copernicus, 1525
“Gold is money, everything else is just credit.”
What is it that our leaders know that these men did not? How is it different this time? I will add one thing to Copernicus’ thought: It is not imperceptible anymore!
The greatest SOCIETAL and financial insolvency in history continues to MUSHROOM like a nuclear BOMBLAST. Socialism and its handmaiden of FAKE UNSOUND money just continue to spread misery into ever widening circles. This is redistribution of the worst sort.
As the pain is sent to the masses, the riches are sent to the capitals and banking systems of the world to support their special interest supporters who participate in the looting in one way or another.
5,100 million ghosts are appearing every day courtesy of the bank of Japan and Federal Reserve electronic money generation. The European Union is printing staggering amounts through their commercial banking systems but it is very hard to measure.
Presented to the world as money they are no such thing. They are not wealth printed out of thin air. They are theft of purchasing power out of the money most people are paid and store their wealth in. A mugging of the public at the hands of their masters in government and in the banking systems is the result.
Since virtually no one knows what money is, what it represents or the functions it must perform, the victims go about wondering who/what the source of their misery is. No amount of ghosts will RESCUE the world’s economies, only the policies of solvency (producing more than you consume) will do this: rewarding hard work, prudent behavior (savings) and risk taking, ceasing the theft of private wealth through runaway taxation, regulation, and redistribution. The odds of this are NIL so Mother Nature is in the process of teaching history’s lessons to a new generation.
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The surprise decision not to taper QE infinity was a shock to the financial system. This was a colossal failure of forward guidance which now has been revealed as nothing but HOT AIR as virtually everything presented to the public has become. The masses live within the matrix (see the movie, it is the perfect analogy to what is unfolding) and reality has become a big lie which most live in.
The Federal Reserve cannot afford to live within the matrix; they may create it in cooperation with their associates in the main stream media, governments and banking systems. But at this point in time they can’t take the chance of swallowing their own Kool-Aid, as it is laced with poison just like that of Jim Jones.
QE infinity has nothing to do with stimulus, never has and never will. It is about maintaining the big lie that you can have something for nothing. That the government can support you and provide for your needs rather you providing for yourself. It is about maintaining the facade that the dollar and treasuries which are the reserves of the global financial system are promises which are good as GOLD.
They want to everyone to believe the US economy can generate enough economic growth and output that the owners of treasuries will get their money back with interest. That economic recovery can take place with a country whose government is at war with its own private sector and trying to kill it. Government never creates anything, least of all wealth and prosperity.
Wealth and prosperity come from a growing private sector. The growth comes through hard work, investment and great ideas people’s lives get better and middle classes are built on the shoulders of the private sector. In the developed world the private sector quit growing over a decade ago.
All growth has come from misstated inflation, a mushrooming financial and banking system courtesy of money and debt printed out of thin air and growth of leviathan government which has masked the murder of the source of all wealth aka the private sector. Consumption is not wealth creation but it can be presented as such by a George Orwell main stream media.
The Federal Reserve must conform to reality regardless of the words they present. What is reality at this time?
1. The stock market is leveraged to a point that has preceded every market crash in the last 15 years (courtesy of www.dshort.com , I highly recommend it):
2. A financial system which is sitting on a pile of over the counter derivatives valued at $296.8 trillion dollars, (courtesy of www.cross-currents.net ):
These derivatives are 17.6 times US GDP and 15.6 times total stock market capitalization and the banks that are counter parties to this are holding no margin to secure their counter parties along with running over 33 to 1 leverage. A mere 2 % move against them will vaporize a years’ worth of US GDP.