my deflated ass

MY DEFLATED ASS

Oil falls below $30, and silver goes under $12, and suddenly we are looking at deflation? I know economics is The Dismal Science ( well, not really. The idiots hiding central bank culpability just pulled mathematical formula out of their ass, but the basics are easy and require no elaboration ), but in what universe was I transported to where adding half the annual GDP in stimulus is deflationary? Houses could fall 70%, and they would still be overpriced ( especially in Smurf areas ). And “half” might be conservative, as I have no way of knowing the details of the Repo Market scam.

*

The central bank keeps putting in $100 billion a day, perhaps a bit more or a little less, but call it an average for near six months. $25 Trillion. How much of that was “forgiven” or kept getting extensions on repayment? We only have what the Fed agreed to share with us. You know, the people lying to us for a century. It took many years for it to come out that TARP was several trillion rather than $700 Billion, AND to add insult to injury foreign central banks received about $18 Trillion. Why is the current Repo Operation aboveboard and on the up and up?

*

Please recall the historical function of a central bank. They are given a monopoly of money and credit creation ( if the latest waiver of ANY reserves by retail banks don't scare you, your Ollie-ness is completely out of control ) and in return give the government as much money as can pay the interest on. Zero percent interest means even that restraint is gone and inflation is guaranteed. We'll return to that in a second, but know that central banks are a requirement for successful imperial efforts. Without the funding for mega-projects, the means of acquiring power are lacking.

*

I won't get into that, not being pertinent right now. Just understand that inflation is what pays off the old principle. A government can create its own paper, and all of them do, but energy in some form must be secured to stretch out the process in a functioning manner much longer. Energy input slows down the inflationary effects. The problem is that if that energy ( or energy marker ) decreases, all that debt and interest is no longer serviced. Britain's empire had growth of real wealth for a long time, from colonialism. As did ( DID, past tense ) America.

*

During a time of the Agricultural Age, England grew as its food supply did. It had nitrates for gunpowder, in abundance. Coal gave it another boost, and the gold from its colonies created finances long past its resource contraction ( gold or silver being a nice energy marker, or substitute. If everyone else wants your precious metals, they trade you products with energy embedded in that ). And I've already told you of America, its world record oil, then its Saudi Arabian oil, many times already. Spain, desperation dumping its gold and silver from South America, just devalued its colonial efforts.

*

The point is that economics isn't just finances or markets, it is also resources and geopolitics. China understands this right now, but the US does not. We understood we had to go to war to keep countries from deserting the PetroDollar, but we did so in such a bumbling incompetent manner that we did more harm than good. We are drawing down our capital to enrich a very small group, which allows nothing in maintenance costs.

*

One of those infrastructure maintenance costs unable to be maintained was interest payments. Most of the companies on the Dow, and all of the levels of government, and most consumers, had to massively borrow after 2008 to stay in business. Consumers obviously took on way too much debt prior to the housing bubble popping. A lot of the mortgage ATM money was wiped out in foreclosures, but everyone started over with less pay, fewer hours, higher rent ( instead of mortgage payments ) and then higher medical insurance. That sector, in other words, could only borrow so much.

*

Corporations had far lower interest payments than the populace binging on credit cards and auto/college loans. All three sectors which have been seeing very high delinquencies. BEFORE the Beer Virus. The corporations cut payroll to make their loan payments. Which cut back on the ability of their customers to spend money. Governments just kept raising taxes, but also drawing down THEIR seed capital ( pensions were a nice piggy bank ). In case anyone missed it, the last decade has been everyone screwing everyone just to survive. There was no “thrive”, and frankly I'm astounded anyone thought so.

*

If you mean that people and organizations have borrowed way past their ability to ever pay back any of the loans, then yes, the illusion of prosperity was there for all to glory in. And I'm not necessarily saying this is, individually, a bad thing. When one entity receives a bag of free money, one is a fool to return it. The problem was that everyone got a bag of free money. I don't mean, a problem as in inflation. I mean, a problem in that the increased income was a one time offer, to mask falling income, and now everyone has even less than before.

*

Peoples income is not enough to pay the interest on their loans. And by people I mean all consumers, companies and governments. Eliminating the interest does nothing if they then cannot even pay back the principle. Now you cannot provide the bankers income needed to loan money to everyone who needs more loans to substitute for lost income. Do you see the feedback loop here? Without money circulating, and I mean money backed by something like real oil growth, you only have Zimbabwe/Venezuela inflation left. And before your little pea brain screams out, “oil reserves, communism=Venezuela”, just stop. Don't embarrass yourself. We'll start there, continued tomorrow.

( .Y. )

( today's related Amazon link click HERE )

*
note: do you as worry as I that Google/YouTube will go out of business?  If they fail, there goes blogger.  Please consider signing up for my e-mail newsletter.  I send them on the e-mail BCC line, so no one else sees your address.  If not, if not reading me will soon be the least of your worries, just write my e-mail address down on paper ( see right below this ) in case the worse happens and you change your mind.  Also, my web site, also listed below.  If the Interweb goes tits up, consider recording my snail mail address-if we don't descend into Mad Max, I'll continue my writing through the real mail.  I gotta write, more than I'm worried overly much about money.  And as usual, if we go dark tomorrow, it's been a pleasure taking this journey with you.  Thank you one and all.
*
note: free for today books.  Normally I hate the "100 years ago the world ended" kinds of books, but this might have possibilities HERE 
*

Please support Bison by buying through the Amazon links here ( or from http://bisonprepper.com/2.html or www.bisonbulk.blogspot.com ). Or PayPal www.paypal.me/jimd303 

*** Unless you are in extreme poverty, spend a buck a month here, by the above donation methods ( I get 4% of the Amazon sale, so you need to buy $25 worth for me to get my $1 ) or mail me some cash/check/money order or buy a book ( web site for free books, Amazon to pay just as a donation vehicle ).

*** My e-mail is: jimd303@reagan.com My address is: James M Dakin, 181 W Bullion Rd #12, Elko NV 89801-4184 ***E-Mail me if you want your name added to the weekly e-newsletter subscriber list.

*** Pay your author-no one works for free. I’m nice enough to publish for barely above Mere Book Money, so do your part.*** junk land under a grand **  Lord Bison** my bio & biblio***my web site is www.bisonprepper.com *** Wal-Mart wheat***Amazon Author Page***Screw the NRA, join the GOA HERE
* By the by, all my writing is copyrighted. For the obtuse out there