The Global Debt Ponzi WILL collapse at some point and the time grows short as the elite makes their bets on the outcome.
One of two things MUST eventually happen. Either all the assets that are priced sky high as denominated in fake bux will collapse in value as debt collapse kills the naked short on the USD dollar (for that is what debt actually is...) OR the dollar will begin to go worthless in a hyperinflation as people lose confidence in the con.
In case you don't get it still, this is how it works. The federal reserve controls what we call base money. It's not really money because it can be conjured from thin air (where as real money requires work in order to attain) but that's what we have been trained (like monkeys) to call it.
On top of that monetary base we have debt. Debt is the "rubber band" portion of the money supply. Special people are authorized to create new debt from thin air. We call them banks. Banks create this fake money called debt and then it spends into the economy just like it was base money. But while base money is forever, debt comes and goes in waves. As the debt grows, overall money supply grows. If debt is paid off or defaulted on or forgiven then the money supply decreases by that amount.
When the herd is in a liberal mood it takes on debt and the money supply grows but when the conservatives take over, loans are eschewed, debts are paid down and unpayable debts are dismissed in personal bankruptcy. In some cases the system can just agree that debts are forgiven along the lines of the jubilee. Debts are forgiven when the system is ready to collapse. It is essentially an admission that the amounts owed cannot be paid and that attempting to collect will have the working class up in arms. And so the elite find ways to let them off so they can re-start the next debt Ponzi and continue profiting off the labor of the poor suckers who have no idea what is going on.
Right now, the debt is teetering. We saw this in the Q4 2019 earthquakes that happened in the repo market. We also saw it in Chase walking away from Canadian credit card debts. And we certainly saw it in the global print fest that followed in the aftermath of the contrived shutdown of the entire global economy.
We are now at the point where the federal reserve has had to promise to begin buying obvously dodgy corporate debt so that market participants don't fear collapse. IF they fear collapse the markets will go no bid and everything will just collapse in value. IF that happens all the banks, who loaned out all this money so that gamblers could gamble in the markets, will BK. And if that happens then the people will riot and kill because their personal worth will go down with the bank. And so the fed is doing everything possible to kick the can down the road.
That is the unvarnished truth of where we are.
My view has always been that the supernova effect will be what happens. First the great deflation which has already happened to oil, offshore drillers, global shipping, etc. will collapse asset prices. And then government will respond by printing to oblivion.
So first massive deflation and then massive price rises that people normally think of as inflation or even hyperinflation. IF you think deflation is coming then you want to sell assets now because the dollar will strengthen in the collapse. Instead of it taking $3000 dollars to buy one unit of the S+P 500 which is what it costs today, after a deflationary crash it might cost $300 or even $150. Deflationists believe that the reason gold and silver bullion coins have 1970s valuations stamped on them is because that is their actual value once all the debt deflation takes place.
Elon Musk is having a personal fire sale. He suddenly announced he is selling everything. And he is wasting no time in doing it. He suddenly believes that real estate "just holds you down". Well I call bullshit. Musk is doing what anyone should do if they believe a deflationary crash is right around the corner and that it is inevitable: he's raising cash. Let someone else take the 90% valuation hit and be cash rich when valuations collapse in a smoldering heap.
Another thing is this: if the herd is ready to tear cities down, why have real estate that could be affected? Once the people realize just how badly the elite have fucked them, there WILL be weeping and gnashing of teeth. And when that happens it could turn into open season on the rich. It is possible that Musk is simply trying not to look like a nail when the hammer comes down. His recent comments about tesla stock being too high come after many months of fighting against short sellers. That is quite a turn around for Musk. One day he says the stock can do no wrong but as soon as the economic shut down kicked off and he saw how bad it was getting, he suddenly wants to put on his pauper suit and spend more time working with children. OK so I made that last part up but you get the point. Musk is doing what he is doing for a reason. He's an engineer. The reason is thus logical, not a gut reaction. The reason is based on math. I think Musk sees the next most likely thing to happen to be a global deflationary collapse.
Next thing you know he will be saying that he's buying gold because the color and weight of it make him feel good, not because he knows the fake money supply is on its last legs.
Saturday, June 20, 2020
Friday, June 19, 2020
Major political shift is taking place as cops figure out that the elite really aren't their friends.
The liberal elite are good at using people. They take advantage of trust and use it like a blunt weapon against the gullible. This is not a new thing. They make and break alliances as it suits them. The political elite were buddies of the cops, treating them as a private terror force. If government said "do this" and the people didn't do it, the cops would be sent in and the result would either be compliance, arrest and jailing, or death of those who did not agree and who would not be talked down from their position.
Cops sided with politicians against the people. That is the plain truth of it. But as the herd woke up and decided not to get pushed around anymore, cops thought it was business as usual: bash a few faces, kill a few people and then go about their lives like nothing happened. Except this time enough people banded together. It got big enough that politicians feared being laid hands on and killed in the street. Or not being re-elected, which ever you think is worse.
When that happened, politicians threw the cops under the bus, just like I said would happen. But cops are not without power and so the backlash has arrived. Their bosses are handing down more and more edicts and cops are just saying no. In today's evidence point, a Cally Sheriff was told to enforce a mandatory mask order put out by that milquetoast Gavin Newsom. The Sheriff thought about it and finally realized that he and his boys were getting played. Newsom wants to remain dictator passing out mommy - like edicts and then threatening physical force, and ultimately death for those who might simply not comply. And like always, any beatings or death would not be from the mask order itself but in fact for using physical force to push the cops away who are going to follow their orders no matter what, once given. In any case, the sheriff looks at it and says, "what's in it for me? all I see is me and my men being vilified in the public eye for doing what we are told.
And therein lies the real problem with cops. They will enforce every law in the book like it was the 10 commandments handed to them directly by G_d. They did this because their bosses wanted to appear strong and in charge. If people don't have to follow rules then politicians have to think long and hard what the rules must be. If people are made to follow rules "or else", then any whim that comes into the shit for brains liberal establishment comes out their mouth as a parental edict. Except most parents don't use an assault force to get kids to comply and most parents don't kill their kids if they won't listen.
That used to be the rule of engagement: cops and politicians stood strong together in order to herd the gullible people about. But now that politicians have broken rank and are trying cops for murder, the pact is broken. So if POLiticians (those who make policy) cannot be trusted by the POLICy Enforcers then maybe its time for cops to start weighing the actual value and important of all these edicts, and only enforcing those which make sense.
Whereas the cops used to enforce every stupid fucking edict, like this famous jaywalking case from Austin TX....
... going forward you can expect the cops to start pushing back on politicians saying, "I'm not burning myself down with the public just so you can have a power trip. I disagree that this rule is important and therefore I'm just not going to enforce it".
That is important because what it means is that the police are now beginning to dictate policy! As long as the police use this new power to do right by the people then all will be OK. But if the cops suddenly realize that they should be running the whole show and who needs these leaders anyway then all of the power could find its way into the hands of the police. History shows that rarely works out very well. The cops become little Caesars and then begin making up pedantic rules as well. The goal of these rules is to make the ruled easier (and cheaper) to rule by the rulers. Rules are not for the people, they are in spite of the people.
If cops were smart they would very quickly turn this "I will not comply with your edicts" to simply stop fighting the corrupt war on drugs. Stop with the focus on nonviolent crime. Stop with the revenue generating speed traps. Stop with the me master you slave act. I predict that unless the cops wise up very quickly and extend a clear olive branch to the public that lots of cops are going to start getting ambushed and otherwise killed. I hope cops are listening to me since they apparently didn't listen when I predicted they will be going under the bus, stabbed in the back by their liberal politician pals. I knew it would happen because liberals eat their own.
Cops sided with politicians against the people. That is the plain truth of it. But as the herd woke up and decided not to get pushed around anymore, cops thought it was business as usual: bash a few faces, kill a few people and then go about their lives like nothing happened. Except this time enough people banded together. It got big enough that politicians feared being laid hands on and killed in the street. Or not being re-elected, which ever you think is worse.
When that happened, politicians threw the cops under the bus, just like I said would happen. But cops are not without power and so the backlash has arrived. Their bosses are handing down more and more edicts and cops are just saying no. In today's evidence point, a Cally Sheriff was told to enforce a mandatory mask order put out by that milquetoast Gavin Newsom. The Sheriff thought about it and finally realized that he and his boys were getting played. Newsom wants to remain dictator passing out mommy - like edicts and then threatening physical force, and ultimately death for those who might simply not comply. And like always, any beatings or death would not be from the mask order itself but in fact for using physical force to push the cops away who are going to follow their orders no matter what, once given. In any case, the sheriff looks at it and says, "what's in it for me? all I see is me and my men being vilified in the public eye for doing what we are told.
And therein lies the real problem with cops. They will enforce every law in the book like it was the 10 commandments handed to them directly by G_d. They did this because their bosses wanted to appear strong and in charge. If people don't have to follow rules then politicians have to think long and hard what the rules must be. If people are made to follow rules "or else", then any whim that comes into the shit for brains liberal establishment comes out their mouth as a parental edict. Except most parents don't use an assault force to get kids to comply and most parents don't kill their kids if they won't listen.
That used to be the rule of engagement: cops and politicians stood strong together in order to herd the gullible people about. But now that politicians have broken rank and are trying cops for murder, the pact is broken. So if POLiticians (those who make policy) cannot be trusted by the POLICy Enforcers then maybe its time for cops to start weighing the actual value and important of all these edicts, and only enforcing those which make sense.
Whereas the cops used to enforce every stupid fucking edict, like this famous jaywalking case from Austin TX....
... going forward you can expect the cops to start pushing back on politicians saying, "I'm not burning myself down with the public just so you can have a power trip. I disagree that this rule is important and therefore I'm just not going to enforce it".
That is important because what it means is that the police are now beginning to dictate policy! As long as the police use this new power to do right by the people then all will be OK. But if the cops suddenly realize that they should be running the whole show and who needs these leaders anyway then all of the power could find its way into the hands of the police. History shows that rarely works out very well. The cops become little Caesars and then begin making up pedantic rules as well. The goal of these rules is to make the ruled easier (and cheaper) to rule by the rulers. Rules are not for the people, they are in spite of the people.
If cops were smart they would very quickly turn this "I will not comply with your edicts" to simply stop fighting the corrupt war on drugs. Stop with the focus on nonviolent crime. Stop with the revenue generating speed traps. Stop with the me master you slave act. I predict that unless the cops wise up very quickly and extend a clear olive branch to the public that lots of cops are going to start getting ambushed and otherwise killed. I hope cops are listening to me since they apparently didn't listen when I predicted they will be going under the bus, stabbed in the back by their liberal politician pals. I knew it would happen because liberals eat their own.
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