Sunday, March 21, 2010

The finite irrationality of paper wealth storage and its protection



Watch at 5:37 as Geithner threatens the congressman.

"do not have any leverage."

"Bankers were forced to take tax payer money"
"much more damaging to the people you and I care about.
to the people you and I worry about.
People we care about. People we wake up everyday worrying about."

Notice he did not say American people. He said "People".

Even pathological liars give away their deception.

Wouldn't tax payer love to be forced to take money at 0% interest and use it to lever up at the financial casino that is Wall Street knowing full well that their bets are covered even if they fail?

You can feel the smugness exuding from his facial expressions combined with the way he stresses the pronouncing of his words.

He's been coached to exude this confidence to an arrogant level that hints at saying:

I am untouchable because the people I work and care for and whose bidding I do own the American people.

If he actually believes what he is saying then he is no better than an MK Ultra stooge. No matter how he is being lampooned as the bad guy in the media to detract from the real puppet stringing baddies who never get on TV, he has the least to gain from what he has done.

Here is a guy who has admitted to screwing up payments on his taxes( he knows that he works for the people where the tax payments go)

He has to suck at the teat of the same people that now have him as their TV puppet Secretary of the continuously swindled treasure of the United States.

We have to go back to the basic idea of how cops catch criminals after they have committed a heist and seemingly got away with it.

Eventually, they find a dead body of one of the criminals on the lower part of the pecking order that is taken out of the equation in order to increase the payout to the remaining criminals.

The taking out of Bear Stearns, Lehman Brothers, Merrill Lynch and AIG and the countless other set of banks not within the inner circle of the Cabal is an amazing sight to see.

The Major Players of the private institution known as the NY FED and its Globalist Banker controlled overseer known as the FEDERAL RESERVE have been busy cannibalizing each other at the expense of the tax paying wage slave class.



http://www.youtube.com/watch?v=uGczVEWKgl8&feature=related

http://www.bloomberg.com/apps/news?pid=20601087&sid=aD0cjPLD9BTI&pos=5

recuse thyself.

roach:



Irrational events occur because people are inherently irrational when partaking in crowds as a whole and especially as individuals within such crowds and they can cause dislocation in the valuation of not just IPLY but everything.


http://www.infowars.net/articles/june2009/180609Bailouts.htm

http://www.bloomberg.com/apps/news?pid=20601087&sid=aD0cjPLD9BTI&pos=5

We would not have had such a massive Bull Market as 1982-2000 without increasing the participation in buying of securities by the rapid adoption of 401k's and such because if you look at aggregate overall return vs GDP growth, we should have never had this much growth in the stock market were it for the simple presence of more available money chasing less available product causing an artificial inflation of asset value when compared to how much debt was being generated on one side of the balance sheet to give us the greatest bull run in history.

Not everybody knows that the totality of value in stocks is a pittance to what is actually present in the bond market and that should be a red flag to anyone for the simple fact that when you sell bonds in your company as a means of continuing your operation or expansion, you are in bondage and you have to have a business that can stay ahead of the yield curve of your bond payments or a fork can be stuck in your business plan.

Most of the big businesses you see around you at malls and in trendy shopping districts have been able to easily expand due to debt hence
most of their business models cannot really handle all their debt and are inherently unstable.

Even the conglomerates like GE that make really important machinery that moves the world cannot live without debt for themselves and even worse: for their consumers since their consumers have even less real capital.

We have an inherently unstable world financial model built upon never ending usury, coveting and inflation of monetary supply that bankrupts treasuries and eventually it reaches an event horizon point of no return past being exposed to being a destabilizing force on this planet.

There is enough artificial money supply present in the whole world that is greater than 10 times the total GDP of the whole World.

If you get the point of where I am going, you don't really want to be that wealthy since most of that wealth is illusory and there are not enough wage slaves nor resources to work for it in aggregate in the long term.

Why you don't want to be that wealthy? We were within minutes in the Fall of 2008 from having what started out as a 500 billion dollar money market withdraw turn into a 5.5 trillion dollar bank run that would have completely destroyed the financial system not as we know it but in totality.

How did they stop it? The shutdown money market withdraws and wrote up new laws stating that they have the right to prevent you from withdrawing their money( A Defacto bank holiday while keeping the bank open)

That is all it takes to bring down this house of cards:show 5.5 Trillion in money markets funds removed and over 500 trillion in artificial wealth of the whole planet is destroyed because it is mostly paper and a ponzi scheme leveraged up derivative of mostly paper and very little real wealth.

But what is wealth? in the ancient past having lots of sheep and cattle and kids was wealth for you can barter that into precious metal methods of storing that wealth.

We are reaching a point where any major break in the system right via natural calamity will now will cause a famine that can kill half the planet's population.

At some points we have to redefine what wealth stands for if we want to stand a chance to survive as a species.

We are working for paper and they say that the people selling Tulips in 1600's Holland for more than the price of houses were crazy.

A clever substitution from money backed by Gold and silver to money backed by nothing and leveraged up to the hilt has been done and we are now at the asymptotic part of the curve where the devaluation of that money goes parabolic.

All the exotic ways of keeping this fake wealth locked up via mort"death"gage based securities and all kinds of mostly esoteric sounding names and schemes is slowly but surely being exposed.

They have been locking it up via securitization in order to prevent the truth about the actual value of this money from being exposed.

Its value is very close if not completely zero based on one perspective that must not be ignored: Does it help you survive massive and simultaneous Earth changes?

The brutal answer is no. ask Haiti if government works or even charity works when facing an apocalyptic situation.

In the future, real wealth will be measured in the dignified sustainment of peaceful coexistence with our planet and its biosphere and the upheaval that is structurally built into it.

Everything else is ultimately a pointless dog and pony show and is dangerous to survival if it comes at the expense of sustainable living.

That is my 5+ year long term forecast.

We have to reach a point of planetary stability and I do not mean Fascist Global Government based carbon credits to create another means of stealing real wealth and subjugating the poorest the most and the rest somewhat.

That only creates more instability.

In the mean time, the paper economy dog and pony show continues.

1 comment:

Anonymous said...

When you see the smoke rising from the burning of Rome, don't look twice. (oh, ad open you blog in chrome, it looks funny; especially with the gigantic picture)