Saturday, July 21, 2018

GDP: Global Debt Ponzi.


GDP stands for Global Debt Ponzi.  The world bought its way into higher production using debt.  At first, $1 of debt bought $2+ of GDP and so debt based growth looked like a real miracle, but over time (i.e. once everyone is into the act) additional debt finally becomes a net negative relative to new GDP is buys.  Jim Rickards puts it like this:

 

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During the boom years of the 1950s and 1960s, every dollar of debt that was created, we got $2.41 worth of economic growth.

So that was pretty good bang for the buck.

But by the “stagflation” of the late 1970s that relationship had actually collapsed.

So now for a dollar of debt in the late 1970s, we were only getting $.41 in growth, so, obviously, that’s a huge drop-off.

Description: economic growth vs great economic depression

So we’re piling on the debt, but we’re getting less and less growth.

You know what that number is today? Today, we only get $.03 in growth for every $1 of debt.

Description: http://www.moneymappress.com/pro/images/0814MMRBS/BangForBuckofDebt.jpg

So we’re piling on the debt, but we’re getting less and less growth.

As the trend goes from $2.41 to $.41 to $.03…

It’s soon going to go negative.

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When additional debt actually results in negative returns, the debt:GDP numbers skyrocket because the debt is an exponential function (even at only 2% interest, it’s still exponential) and GDP is not.  At that point any thinking person can see that there will certainly be a global economic reset as everyone figures out that the whole thing is one big Madoffian lie based on fake money.  It used to be I was the only one saying this. 

Now the main stream analysts like Mauldin are saying it too.

 


 

There is still time to prepare.  Paper assets will not be your friend during this time.

Friday, July 20, 2018

California's large magazine grab with retroactive criminality hits major speed bump.

California continues to try to disarm good people while having zero control over disarming bad people.  It's a complete joke.  If I were a California resident intent on doing bad things and I decided to use a gun instead of a bomb, a knife, a car, a truck, arson or the many other ways that crazy people decide to kill complete strangers then I would just get in my car, cross the border, load up the trunk with death gear and come back over.  Simple as that.  So all that these California laws are doing is attempting to chase away people who don't think like the bureaucrats do; it is not a credible crime prevention strategy.  That's just the obvious fact of it.

Last year, Cally tried to criminalize anyone who had bought a large mag lawfully by suddenly declaring them illegal and requiring people to dispose of them or turn them in.  But this over the top heavy handed dictatorial game has been thrown a gut punch by the federal appellate court as being a violation of the 2nd amendment as well as the so called "takings clause" of the 5th amendment.

Now here is how I see it.  When someone has a law book that is 3 feet thick they can justify or vilify whatever they want to and still claim to be within the rule of law.  When Japan made the sorry mistake of attacking the USA during WW2, nearly 130,000 American citizens of Japanese heritage were rounded up like common criminals and they were put into concentration camps with complete loss of all rights, all freedoms, all rule of law.  No compensation was made.  This action is commonly referred to as "Internment of Japanese Americans".  Do you see how they put Japanese first in that label?  The last time I looked, "Japanese" is a label of citizenship, not of race.  The people of Asian heritage who were "interned" were not "Japanese".  They were Americans who just happened to have parents who were Japanese citizens.  Or they were once Japanese citizens who had become naturalized American citizens, supposedly with full rights of citizenship. 

How many Americans have German or Italian heritage?  Why were the "German Americans" and "Italian Americans" whose ancestry was also from countries that were our WW2 enemies not also "interned" alongside the Americans of Asian heritage?  The Americans of Japanese heritage were targeted because it served as a way to vent American anger (mob appeasement) at the actual citizens of Japan since Japan was the primary attacker at Pearl Harbor.  In addition, Asians look physically different from western races and so it was easy to target them.  Also, their numbers were pretty small relative to the population of the US and thus there was going to be little to no resistance in taking that action.  Bottom line, the mob wanted blood and so the politicians looked through their rule books of fake "law" and trumped up a legal way to imprison 130k people who had done no wrong and who in fact are among the more productive members of society.  So much for rule of law; the whole notion that such a thing exists is a fucking lie.

If those 130k people had a culture of gun ownership and proficiency with firearms then I doubt the government would have tried to do what it did.  Government and mobs (including police) are cowards.  They pick on those who they think cannot defend themselves.  A heavily armed Japanese population living in a small area would have been too much of a credible threat to be attacked.  Might makes right.  Always has, always will with our species.  I'm not advocating for this, I just know what's true and what's not true when I see it.

So you see, the government does what the people want it to do (mob rule, not rule of law) and then they thinly paper their actions over as just and "lawful".  In the recent appeals court decision, it was ruled that Cally could not criminalize people retroactively for keeping their large mags. Instead of just stating it to be a violation of the 2nd Amendment (which Cally clearly doesn't give a shit about) they also justified the ruling by dragging in the takings clause.  If you read the link I provided, the takings clause is not about taking personal property but rather taking real estate under the claim of eminent domain.  Fans of Guardians of the Galaxy movie will recognize the poke taken at eminent domain laws by the character Rocket Racoon.  My point is that the takings clause is a very weak argument for the ruling but it is yet another road block for legal fucks in Cally to have to leap over during their next assault on the good, law abiding gun owners of that state.  The appeals court was simply playing conservative politics.  They are looking forward and they see the tide changing and they want to keep their jobs.  They don't give a shit about justice.

These are the actual rules of the game.  Forget the fake rules that they try to impose upon us; recognize that all of those rules are liberal "do as I say and not as I do" bullshit.  If you are strong enough to fend off those who, in the words of Rocket Racoon, want your stuff more than you do, then you will not be a victim.  If you aren't strong enough then you will learn the hard way what I am talking about when the Global Debt Ponzi eventually collapses.

Thursday, July 12, 2018

Hussman uses many words to say "Global Debt Ponzi"

John Hussman is a smart guy who knows how economic fundamentals work even if he knows little about market timing.  Zerohedge has a great article from him that is well worth your time to read.

"The dysfunctional economic system provides the illusion of prosperity for some segments of the economy. But in the end, the underlying instability will, as always, be expressed in the form of mass defaults, which effectively re-align the enormous volume of debt with the ability to service those obligations over the long-term."

When Madoff victims looked at their account balances they loved what they saw even though they questioned how it could be that good.  In truth, it only appeared to be good.  Most of the paper wealth in a Ponzi is fake, it literally does not exist except on the account statement.  It is a fictitious made up number.

The second economic system is dysfunctional. Consumers work for employers to produce goods and services, but because of past labor market slack, weak bargaining power, and other factors, they are paid meaningfully less than they actually need to meet their consumption plans.

Hussman is right about this as well but he does not say how this happens.  I'll just repeat what I have been saying since I started this blog: Ponzi finance is enabled by the acceptance of fake "feel good" money as if it were real.  The money has no value; that is how it can continue to be created out of thin air and handed to people in exchange for their goods and services.  But at some point even the cheap debt cannot be serviced because of its sheer size and then everyone has to admit that unpayable debts will not be repaid.  That is the collapse phase of the Global Debt Ponzi (GDP).

Wednesday, July 4, 2018

Forget all the fake witch hunt investigations, this one is real.

The GOP and dems are trading political barbs, jabs and roadblocks these days.  Most of it is pithy hearsay fake news unbacked by anything tangible.  But the actions of the FBI and DOJ in colluding with the democratic party are now well documented.  If you want the clear, unemotional and no bullshit version, don't watch the news, watch this GOP run down of the history and the abuses. This clear presentation in unemotional, plain and clear terms and was presented in a proper and formal  venue and format (as opposed to shock jock interviews).  It is going to resonate with the conservative majority AS WELL AS moderate liberals who recognize truth when they see it and who are not consumed by party politics. 

This is likely the beginning of the collapse of the Clinton dynasty IMO.  This is something that I have been looking for as a major sign of the end times of the Global Debt Ponzi.  I have laid out my reasons in the past and now I am just watching all of the indicators go into the red zone.  This is NOT politics as usual.  Big names are going under the bus for these abuses.  Big connected people will go to jail.  I know it sounds ridiculous to say this given that the corrupt political elite seem to have been made of teflon for the past 60 years.  But the people have now awakened and we are finally demanding real change, not fake liberal promises and double talk.

Bush 2 (a flaming liberal on many fronts despite GOP affiliation) should also be choosing a non-extradition country to flee to because when people learn of his involvement in 9-11 they will be very, very angry to say the least.

The fall of the criminal enterprise known as big government is playing out in real time.  Soon enough we will see rats fleeing the sinking ship and we will see people ratting each other out in order to save themselves from the jail time that they so richly deserve for their treasonous acts against hard working Americans.
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