|
Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 02/03/2010 : 18:57:33
|
Time to Inflate or Die.
--------------------------------------------------------------------------------
Time to Inflate or Die.
To all; we are again at another point in time where the "powers that be" must either "inflate or die". Some way or somehow air MUST be shoved into the balloon immediately or the "unthinkable" deflation will take over which once started will devour everything. We have had massive monetary and fiscal stimulus for 18 months or more and the only result so far is an economic plateau at a lower level. Past recessions were normally 6-9 months in duration, if you believe the official but cooked numbers we have had a minimum 1 year of recession.
Yes we got GDP numbers on Friday showing 5.7% growth for the quarter ended in Dec.. All of the common sense, anecdotal and hard numbers argue against this fairy tale. The problem we now face is that global debt has grown so large that interest payments will and are eating away at cash flows and tax revenues. Money must be "created" (by debt) in order to have enough in the system to pay interest. The problem is that individuals, states, and sovereigns are leveraged to the gills and either don't want or can't take (the market won't give it to them) on more debt. In my opinion we have finally "arrived" at the long forecast (by the Austrian economists) debt saturation level. Once interest rates start to rise and they will worldwide, sovereign defaults will start going off like popcorn kernels because there is just not enough "money" in existence to pay the future debt service. This is why there cannot ever be an exponentially growing Ponzi scheme that goes on forever. Either the money runs out or it becomes worth less (worthless), there is no other option, it is math and logic.
The entire system has now become untenable and the inflection point is now. The collective world does not have enough money to fund the debt that the U.S. government so desperately wants and needs to continue "life as usual". The "answer" has so far been outright monetizing of debt and "printing" of whatever has been necessary by the Federal Reserve for nearly a year now (almost 40 years). The Chinese picked up on this and their response has been a basic boycott of new U.S. debt purchases. There are only 2 roads to take from here, either deflation where everything goes bust and the world literally stops dead in its tracks or currencies must be devalued on a massive scale. Unfortunately history tells us that when all things monetary go this wrong, war is the ultimate result.
The era of "Sovereign defaults" is about to begin and do not fool yourself that the US is "too big to fail". In fact, Britain, the US (and it's former puppet state Japan) are at the head of the class for most likely to go upside down financially. Yes we have Ireland, Spain, Italy Greece and several Baltic nations that are on the verge financially but they are "symptoms" of the problem. It is the West that created the derivatives and the debt in the first place that can be seen as the "cancer" that will kill the system. In reality it does not matter where the first default occurs because the world is so intertwined financially and have ALL already fired the entirety of their "magic bullets". Once one goes down, they will all fall.
We have now financially lit the fuse and set war in motion by our recent $6.4 Billion arms sale to Taiwan, China has reacted by threatening to issue sanctions on U.S. arms companies. A very stupid move on our part to inappropriate language off our biggest creditor. The "volume level" coming out of the US, Israel, Iran, Russia, and now China is deafening. War has always been a (the) way to "right" an economy. It has always been a way to inflate rather than die, history has always shown us this. The problem now however is that the weaponry available today has far longer lasting effects than ever before which makes "business as usual" afterwards very difficult.
I don't have a clue how CNBC rolls out clown after clown to tell us how recovery is here and how we need to buy the banks, hi techs etc. and get back on the train because if you look at the math in the US, municipalities and states, government agencies, the pension systems up to and including the Fed and Treasury are all upside down broke. Not only is the system bankrupt, there is nowhere left to turn to bailout anything. In a nutshell, IT'S OVER! The endgame has arrived and I believe it is very important to put your "helmet" on. People may call this a tinfoil helmet or whatever they like, the point is that very soon it will be everyone (family) for themselves. Do not expect help from any quarter, you will need to fend for yourselves and families. The helmet I speak of is your own mentality or mindset, be prepared for what is mathematically and historically coming. Don't be lulled to sleep by what the laughable US media puts on your plate everyday, open your eyes and see for yourself. Get tough mentally, have a plan and be prepared!
Regards, Bill H.
end.
You must be logged in to see this link.
|
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
Inflate or die
Forum Locked
