Sunday, December 04, 2011

borrowing inflation

BORROWING INFLATION

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How many times does the Federal Reserve Bank pull the same rabid hairless fanged rabbit out of its hat, and the “market” goes wild, pom-poms are waved, gold colored plastic awards are given, gushing “analysts” display their rigid nipples atop floppy male breasts and every zombie consumer flushes at a near fatal thing, yawns, and goes back to sleep? Am I the only one smelling the faint whiff of the bloated putrid corpse of the free market that was hastily hidden in the guest bathroom towel closet years ago? This crap is getting ridiculous, the implausible story we are being asked to consume time after time for the sake of not panicking. With our old population growth of hastily assembled illegal aliens being packed into ER room to breed out below minimum wage workers, it was always assumed that we needed 250k new jobs a month, just to keep all the newly minted workers in a job. Now, we are seeing 400k newly applying unemployment beneficiaries each month. Add the required 250k needed for those turning eighteen and needing a job. You have 650k people each and every month unable to work. And they tell us the unemployment rate went from 9% to 8.7% ( or whatever the recent lie was ). But let’s be generous to our Muslim-In-Chief. We should feel sorry for him since he has a polled opinion rating him more unpopular than Carter ( Carter wasn’t stupid, he just didn’t lie. Obammy is both a liar and a stupid Shitte ). Let’s just call the number of new unemployed a half a million each month. In 150 months, give or take depending on my rusty math , we have 100% unemployment.

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But that is just one example of the same old lies. The most obvious one. What has my scruff standing straight up is the stupid ass news stories on the Fed and central banks bailing out the Euro. And then the market rally. Just to get this straight, the Fed says, hey, we’ll offer Germany a low rate loan so they can give Italy a low rate loan and then all will be well in our looking glass and we can get back to the serious business of staying two steps ahead of the lynch mobs carrying pitchforks and torches. Hello? Anybody home? Governments everywhere are OUT OF MONEY! If you are out of money, you can’t afford to pay any more interest on any new loans. But this is the central banks one and only trick. They keep offering new loans to delinquent borrowers. It might have worked with Mexico in the 1980’s, but back then they were paying in another currency, oil. An increasing supply of oil. Today, as with everyone else, the oil supply is contracting ( but wide eyed Pollyanna optimists still insist Evil Conspiracies Of Oil Companies Are Hiding Vast And Unimaginable Oceans Of Petroleum Somewhere- hey, the great thing about conspiracy theories is you don’t have to prove them ). No resource growth, no money growth. Inflationary currency growth, sure. That never worked before.

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Granted, our current central bank has been a lot smarter than most holding empire together. I don’t question their motives. I’m questioning if “the market” even exists anymore. Are there really independent players around betting on currencies and companies and such? Everybody knows there is, right? The Fed keeps pushing more money into the market to give the illusion of growth to keep retirement pensions investing there. Or does it? Is the market anything more than one central bank pitted against another? Sure, California pension funds invest in German municipal bonds or whatever, but is it really an investment? Or is it a bet on which controlling bank wins in the currency wars? Because frankly, I can’t see any intelligent person betting on bankrupt countries being able to pay more loans off. I can’t understand how a supposedly educated person would think “this time it is different” ( it is different as far as the scale and the timeframe, but collapse always happens in the end ). Does it matter if a bankrupt unemployed credit card user starts paying one half percent interest on a new loan issued to pay off his old loans? He still needs money to pay.

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I’m pretty sure that the silver and gold price are controlled, fixed or manipulated. You can’t tell me with a straight face that silver is only worth $30 an ounce when we have gone from 15% of imports to 65% ( in 200 we produced 85% of our own silver domestically and now only 35%, yet silver only goes up six times in price after that, after we find out silver globally is running out virgin ore wise, and dollar inflation? I don’t buy it ). And gold only goes up four times? Food has gone up double or more, just from dollar inflation. You are telling me that as the supply of new gold dries up, that fact is only worth a doubling of an already low price? So, if my paranoia isn’t misplaced, if the precious metal market is being fixed, why not other areas of the financial world? Would that help account for the continued growth in derivatives? You put down one or two percent and control untold instruments of

finance? I know it sounds tinfoil hat silly, but how else do you explain the rush into a bankrupt idea of bankrupting countries further with a bit of the hair of the dog? You don’t need to throw your money away in securities or bonds if you are rich. It isn’t the only game in town. It is the only suckers game, but far from the only way to protect your wealth.

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Here is a free consultation for rich bastards on how to preserve your vast capital and grow your wealth as the world implodes. Go down to the third world country of your choice. I’d pick Latin America since Asia will be a slaughterhouse with China as the chief butcher. Pick a remote, defensible area. Bribe the towns mayor and police chief, invest in local infrastructure, lay away arsenals and stockpiles and plenty of farming equipment not dependent of oil. Pick an area NOT dependent on cocaine or opium. Advance the living standard for the peons. Sit back and whait for the apocalypse, and emerge a new baron. See? No need to put your cash into digital money that disappears. You are buying tangibles. So who is actually in the market? Suckers still buying the line of a capitalist free market and the fat cats making the rules and controlling the money, vacuuming in the suckers life savings. Hope you ain’t one.

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3 comments:

Spud said...

Action of a Hoover upcoming to next greatest Depression. So fitting I suppose. I can certainly hear that giant Sucking sound Mr. Perot....

Anonymous said...

On the subject of where to go to hide from what is coming... Most people, including myself, have long discussed moving to a remote, lightly populated country, far from the evil doings here in the good ol' USofA. But recently I've started to wonder if it wouldn't be easier to disappear into a very large population.

A place like India for instance. It is a pleasant enough place if you have a little money and has an enormous English speaking population. It has a thriving economy where small business opportunities abound and their government and culture are open to entrepreneurs. The country has decent communications and transportation networks with excellent and inexpensive medical care available. I suspect one could live well there for no more than a similar lifestyle in a South American rat hole, yet there are probably fewer bandits and bureaucrats seeking payoffs in India.

With a population of over 1.2 billion and a relatively lax government, one could probably disappear pretty easily as long as you don't go out of your way to make your presence known to the outside world. Maybe become a used Tata salesman.

Anonymous said...

They don't like "us" in Latin American countries. They tolerate tourists because they bring money and they don't beat them or kill them (usually) because then we would stop coming and bringing dollars with us. If TSHTF and you are in one of these essentially lawless countries your value will disappear (since no more tourists are coming) and you will probably die horribly.