Sunday, December 11, 2016

Corrupt governments all roll from the same playbook

Just weeks ago, India announced a sudden swap out of this currency for that with the justification that it would force tax cheats to either come clean or lose their ill begotten cash horde.  Of course only an ass stores long term savings in fake paper currency which is why so much of Indian private wealth is stored in gold.  Still, many were affected negatively by the move as the corrupt Indian government tried to find someone, anyone to blame for their failed government.

Now the despots running Venezeula have announced roughly the same thing. In order to provide cover for a currency exchange that they hope will cover some of their hyperinflation woes, high denomination paper bills are now being pulled from the economy to be swapped with coins which are just as worthless.  Again, the action is to take place extremely quickly.  If you don't get your exchange done in 72 hrs, you lose your money.  This rapid move is being done in the name of catching drug cartels holding lots of cash that they can't account for and thus cannot exchange.  I say again, the smart drug operations are big and they are global.  They store their money not in hyper-inflating Bolivars but rather in metals and in Euros and in Dollars. 

Let's think about this for a second.  A drug operation makes drugs in Venezuela.  Then it sells them in the USA or in Europe.  What currency does that drug operation now hold its profits in?  That's right, NOT Bolivars.  So the paper thin excuse of government does not hold to even the most pithy analysis.  They are just making up shit as they go along now, trying anything to gain a few more months in power, trying anything to keep the confidence of the people up so that the people don't finally band together, grab their "leaders" by their necks and pull them down into the street to be Khadaffied. 

These 3rd world shit holes are canaries in the global meltdown coal mine.  They are marginal players and thus getting hurt the first and the worst.  But their situation is indicative of where every nation is heading because the root cause of problems in Venezuela, India and everywhere else is the fact that their peoples labor under a fake money supply which is now on its deathbed.

I want to be clear about that since Americans do not believe it could happen here.  Most Americans look at what is happening overseas and say, "that is because they are a backward people with no common sense, we are too educated and exceptional to allow that here".  I am specifically telling anyone who is reading this that such thinking is not just flawed in the extreme, it is also the height of ignorance.  How can Americans actually be better off than anyone else when we owe more absolute debt than anyone else?  The fact that we still ARE better off is an illusion because all of our prosperity is borrowed from the future.  When the day arrives that we are called upon to pay this debt back, our fake debt-driven illusion of prosperity is going to collapse.  Its as simple as that.  The illusion will suddenly, and I mean rapidly folks, suddenly be burst.  It will happen like a Venezuelan currency exchange.  One day things will just not be very good and the next day that condition will gap wave 3 down into a steaming pile of shit.  Supply chains will be interrupted and stores will be ransacked by the herd.

Maybe you are in the upper middle class or higher.  If so, your first problem is likely to not be your government but rather your fellow citizen who suddenly has no food, no shelter, no hope.  Don't count on FEMA to save these people because there are just too many to save.  These people will eventually be left with the decision to just starve or to go take what they need from anyone who still has something.

The whole world is going to have to deal with this because every major nation in the world has adopted fake currency/Mammon Money and all have bought into the great debt Ponzi.  No Ponzi ever lasted forever and no it won't be different this time.  These signs around the world are not the death of local currencies folks.  What we are witnessing is the death of all fake money in the world.  At some point all nations will be in turmoil at the same time because all of the fake currency will have lost all confidence at the same time.

As these fake money supplies die, who do you think is going to win and who do you think is going to lose?  In Venezuela, is the person holding his life savings in gold coins worried about what is going on?  Nope.  In fact, his stock is going up.  He's not only not losing buying power that was stored in fake money, his gold is worth many more Bolivars than it was last year.  All debts that are owed by gold holders are now being paid off with a 40% discount.  In 3 years it will likely be a 98% discount or more.  Once confidence is lost in the fake money, it always goes into a death spiral from which it can never escape.

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