How Bad Can This Get, And How Fast?
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NPA Fifth Avenue at W. 54th Street 1954 There’s so much negative real bad economic and financial news out there that it’s hard to choose a ‘favorite’,
[See the full post at: How Bad Can This Get, And How Fast?]I’m not sure how emerging markets will affect the economy and why they are so important–would you mind briefly explaining to this novice?
Thanks in advance
“But the simplest of principles stands no matter what: there’s no way out of this that doesn’t lead through the exact kind of massive debt deleveraging that all governments and central banks are ostensibly trying desperately to prevent.”
The only politically expedient way out of this is destruction of the Fed’s own currency. It’s baked in the cake. Asset prices may fall in real value in this process, but not in nominal terms. This is a sort of democracy, and there are elections to tend to.
Federal Reserve Note Credit holders, as well as the holders of most any “Security” will be washed away.
Federal Reserve Notes = Instruments of confiscation, through the stealth taxation of devaluation.
Bonds= Instruments of confiscation by the same process.
Asking a Central Bank to stand for deflation/revaluation is asking it to stand aside and close up shop. Along with the political machine that enables it.
Even FDR resorted to devaluation during the “Big One”
So, real “assets” are those items that preserve purchasing power through financial turmoil better than any other means of maintaining it. The antithesis of Federal Reserve credit (green backs) and Bonds.
Unless one believes TPTB will do the right thing and impose the ultimate form of austerity, by allowing the system to purge itself through mass default, (Fat Chance!) it might be prudent to consider trading ones debt holdings (Federal Reserve Notes) for anything one may perceive to be useful, after the backer of said funny money drowns in an ocean of it.
Heather, perhaps of interest;
Ken, I can relate, especially following the Feds revelation that all those who have fallen out of the workforce don’t want a job 😉
Kinda like saying all those in a depression clinic don’t want to get better?
Raul,
Although the sagacity of a 10-year-old is one viewing angle, another is simply that economics is bad science but brilliant politics (for some). The question our elites and comprador managers have stopped asking is what is good for economies, or one’s particular nation over all. Some time back, the basic compact that Ralston Saul mention in Voltaire’s Bastards that the technocracy was assuming control from the aristocracy in the interests of the nation has been abrogated. The technocracy has returned to serving an aristocracy or plutonomy–this has been a cluster**ck but one in which some, those driving the parade, have made out like bandits, and we can only assume they think they have enough private security and walled compounds to dominate the chaos that ensues. It’s not just that the US has destroyed its labour force, middle-class, manufacturing base, but even its critical arms-manufacturing infrastructure.Put otherwise, those that profit from the offshoring of manufacturing are not necessarily the ones who profit from arms manufacture, who are not necessarily the ones who profit from maintaining US critical infrastructure, who are not necessarily the ones who profit from debt, There’s overlap but apparently little overall strategy among these parasitic profit-takers.
That anyone is still doing anything for the long-term benefit of anything so broad as a nation, civilization, or species seems increasingly implausible.
I know, I’m cluttering up the board again, but need to say this,,,and I believe it’s the way they think;
“There are 5 times more claims on dollars as dollars in existence” ??
‘Simple solution, create 5 times more dollars.’ Gramma Janet
There could ultimately be as many FRN’s created as there are electrons, but that’s getting into “Quantum” physics,,,and monetary policy.
Indus,
“Princes and governments are far more dangerous than other elements within society.”
Machievelli, surprisingly enough.It only follows that the more revered and bigger, the more dangerous.
“There are 5 times more claims on dollars as dollars in existence”
Perhaps you are not nearly psychopathic “enough” to understand the way the syndicate thinks. 5 fold excess claims is equally 5 fold excess claimants. Eliminating claimants eliminates claims. The continuity of money power, is entangled with global conflict.
War is a great way to solve MANY problems simultaneously.
-Continuity of money monopoly
-Command and control of essentials (Energy, food, etc.)
-Elimination of rivals
-Demand Destruction (infrastructure destruction, depopulation, economic etc.)
-Depopulation (There is an incentive to get rid of BILLIONS)
-Efficiency of war time economy (All fat is cut off socio-economic system)
-Unification of a fractured society against an external enemy
-Elimination of political rivals and dissidents (martial law)
-Complete control of media and propaganda
– etc… (List goes on and on)Sympathetic, empathetic altruists do not see war as a legitimate problem solving strategy. For this, they can never lay claim to a big picture perspective.
This domain is defined by the selfish competition for limited, highly leveraged, mutually exclusive shares of biocapacity in a zero sum game. This domain is defined by conflict.
To the least losers go the spoils.
In regard to capitalism, capital is the ultimate “weapon”. Those who have capital become the victors and those who don’t become the slaves. Permitting the free flow of capital worldwide allowed the Predator class to pillage the whole world. This is what so-called free trade really is: the ability to shift capital with no boundaries.
The criminals that advocated for free trade should be thrown in prison. Or worse.
The controllers of the Federal Reserve control the most asset-money and the debt-paper.
The false narrative is that the controllers of the Federal Reserve are going to decrease the wealth of **themselves** in order to bail out those they’ve criminally impoverished through a fraudulent debt-based monetary system.
Let’s say the claims are 5x the actual wealth. The trick is for the Debt-Money Monopolists, the people who set-up and control the Federal Reserve System, to gain control over most of the assets by WIPING OUT THE EXCESS MUPPET CLAIMS ON SAID ASSETS.
This is what they’ve done 100% of the time previously. They did it in Argentina. They did it in Germany after WWI. Sure, they teach you both those events were hyperinflations, BUT THEY WERE DEFLATIONS AND DEBT-MONEY MONOPOLIST ASSET STRIPPING OPERATIONS FROM THE PERSPECTIVE OF THE DEBT-MONEY MONOPOLISTS THAT CONTROL THE FEDERAL RESERVE.
To bet against the outcome that favors the controllers of the Federal Reserve with 0% historical implementation is not a rational bet.
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