OPEC Presents: Q4 and Deflation

 

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  • #16947

    NPC Thanksgiving turkeys for the President Nov 26 1929 Thinking plummeting oil prices are good for the economy is a mistake. They instead, as I said o
    [See the full post at: OPEC Presents: Q4 and Deflation]

    #16950
    rapier
    Participant

    At it’s core the AE message, Nicole’s message, has been that deflation is inevitable. That means growth, the growth Illargi rails against, has to end if for no other reason that the planet won’t support it which is a pretty good reason.

    Which presents a dilemma if one has to choose a side. More inflation/growth or deflation/contraction. If there is a middle way, a way out I’d like to hear what it is.

    In every possible short term I think it’s fair to say that for most every living human, growth is preferred. It’s water under the bridge now but at any point the last 50 years or whatever period you choose if we had chosen to reject growth for its own sake the way down would have been less steep but we can’t go back now. Then too at every possible point in the past the same formula applied. Growth was better at every moment along the line.

    #16952
    TheTrivium4TW
    Participant

    Hi Rapier, I think you misunderstand my stance. I didn’t say that all monetary systems are prima facie fraud. Rather, I said that debt money systems where money is lent into existence are prima facie fraud.
    Since the Debt Money Monopoly is running the show, everywhere they control is tied down with debt monetary systems and everywhere they are in control are going to bankrupt to the Debt Money Tyrants and those who most closely serve their interests.

    People don’t comprehend the mechanics of why deflation is bad. Denninger is claiming how good “deflation” is because he doesn’t even understand the mechanics. Ilargi is 100% correct when he says that deflation is not just lower prices. He is also part way there when he says it also means lower spending. The REAL CRUX is that is means LOWER DEBT MONEY ISSUANCE INTO SOCIETY!
    Here is why: When $20 is lent into society, as all money is save coinage is (which is so small a contributor it can be ignored), more is due at some point in the future due to the attached usury. If the interest rate is 5% per annum, then $21 would be owed in a year’s time. If the interest rate is 30%, then $26 is owed in a year’s time.
    Failing any further debt money lending into society, society is on the road to bankruptcy and collateral confiscation with 100% certainty – and there is nothing society can do about it BECAUSE THEY ARE POWERLESS UNDER THESE RULES. The lender is also bankrupt iif even $1 of the $20 they lent into society isn’t returned to the lender in full (for example, it was lost in the couch) because they have the $20 liability on their balance sheet that originated when they created the $20 to lend into society (at interest to society, BUT THE BANK DOESN’T HAVE TO PAY INTEREST ON THEIR LIABILITY… SOME ANIMALS MORE EQUAL THAN OTHERS AND ALL…).
    I’ve said this before and I’ll say it again, this example reveals the FOUNDATIONAL REASON THE DEBT MONEY MONOPOLISTS MUST TARGET INFLATION AND WHY STEADY STATE CAN’T EXIST BECAUSE IT LEADS TO AN INSOLVENCY COLLAPSE OF SOCIETY! They KNOW they have to create more debt money to make the previous debts payable OR MUCH OF SOCIETY GOES BANKRUPTS – INCLUDING THEIR CORPORATE FRONTS.
    The latter problem was solved during the previous crisis. Their corporate fronts now CAN’T GO BANKRUPT BY DEFINITION. Too Big To Fail and Jail. That just means everyone else goes bankrupt more quickly when the exponential debt curve caves in AS IT MUST.
    The operating system is a Trojan Horse malware system.
    If you still don’t “get it,” try this example. Set up a game of Monopoly – the board game. Assign a person to be the banker. The only rule change you have to make is that the banker lends money into society at interest – say 5%. Every time any player passes go, THEY MUST PAY THE BANKER 5% OF THE MONEY THEY POSSESS.
    Guess who wins the game? Every single time.
    Monopoly. Indeed.
    That is a good real world simulation of the real world mechanics at work – except the interest is paid per “pass go” event instead of “annual event.”
    The Debt Money Monopolists have already orchestrated the nation state into bankruptcy. We are already there – with no way out under the current rules. We are done. Fork in Turkey; Turkey already cooked and carved; Turkey not sophisticated enough to figure this out given that the Debt Money Monopoly “farmer” has lied to them their whole life.

    PS – A steady state economy can easily exist in the real world. But it can’t exist in a debt money system where society’s (ex Debt Money Monopoly which is a class unto its onw) monetary debt is always greater than its monetary assets.

    BTW, the above is not my opinion or feeling. I KNOW it because that is what the 5th grade math lays out for anyone with eyes to see. I don’t think 2+2=4, either. I KNOW it. What is surreal is that otherwise super smart people can’t grasp it and aren’t the least bit bothered by the fact they can’t defeat the mathematics involved in the proof. If they tried to defeat it, they’d see that it can’t be defeated.

    #16954
    TheTrivium4TW
    Participant

    >>In every possible short term I think it’s fair to say that for most every living human, growth is preferred. It’s water under the bridge now but at any point the last 50 years or whatever period you choose if we had chosen to reject growth for its own sake the way down would have been less steep but we can’t go back now. Then too at every possible point in the past the same formula applied. Growth was better at every moment along the line. <<

    Rapier, in a debt based system where interest is siphoned away from society and into the hands of the architects of the debt based monetary system, the choice is to grow and then die when the bubble busts at a later date or die right now as your engineered insolvency is realized even sooner. Of course, the world collapses right into the hands of the the debt based monetary system, which is the foundational reason Nicole says “why should the bankers get it all” 49 seconds into A Tribute to the Automatic Earth…

    What Nicole doesn’t explain are the precise mechanics as to how the “bankers get it all.”
    I’ve done that – the Debt Money Monopoly privately controls the definition and issuance of debt based money to society (no vote for you, serfer boys and girls!), they saturate society with inextinguishable debt based mostly on collateralized loans, when the system begins to break down, they got their bipartisan political operatives to offload the Bankster debt onto our society that already held onto inextinguishable debt (now we have even more), they generated trillions more in debt money and kept the proceeds while offloading the corresponding debt onto the tax payer (the one two punch over a monetarily nescient society), and that’s where we stand now.
    The next phase, once we fully transition out of this phase, is to rescind credit, bust all the debtors, and seize the collateralized assets.
    The biggest bankruptcy will be the government and the assets of the government will be handed over to the Bankster – exactly as has already started in Europe. Greek Islands are going to Banksters – through a fraudulent debt monetary system mechanism and other deceits. Some will say that Germany took advantage of them – and then Germany will go bankrupt, too. This crime is bigger than the nation state.
    Now do you see why the Debt Money Monopoly government worked so hard to kick its citizens off of Federally liened land to the Debt Money Monopoly before the Banksters take it over? Cliven Bundy and the 50 or so other ranchers being kicked off federal land all of sudden takes on a whole new dimension.
    The takeaway is that “steady state” means “bankrupt society in short order.” It also means less collateral to convey from society once the exponential debt bubble busts.
    I **highly** recommend that you read and reread my last two posts until you completely comprehend what I’m saying. When you do, you will either “see the light” or you will be tasked with mathematically showing the error in my logic – something nobody has ever don’t in almost half a decade of me putting this information out as far and as wide as I can get it. And yes, I’m talking people with decades of accounting experience, Masters in Finance (worked for Blackrock of all places), Masters in Economics and even Steve Keen. I emailed him a diagram exposing the whole fraud and he never emailed back. I want someone to prove the 5th grade level mathematics wrong… It would make my day. But they can’t, so they ignore it – what else can they do in order remain nescient of the real world that is as unpleasant as the dystopia 1984. Orwell coined a term with the perfect definition of how schooled and unschooled people deal with revolution information – crimestop. Look up the definition – I see it at work all the time.

    #16957
    Baron
    Participant

    Interesting articles but unfortunately there are no solutions. It’s because the system is run by humans not robots. You would have thought that humans over thousands of years could have sorted out their finances… but they can’t. It’s part of our flawed human nature. The average person is happy to rub along with his neighbour and generally ‘live and let live’. Our species has many that want more than the average person. These are the people with the ‘drive’ to be in charge. They judge their success by how above average they are in wealth and acquisitions. Many of this group want to achieve their superiority over their average man by trickery not work. These are the ones that ultimately run any system. The problem is they are parasites and eventually their system collapses. Things then fall back to an equilibrium but this doesn’t last as the cycle starts again. The present fiat-fractional banking system is coming to an end. This will collapse and the whole merry-go-round will start anew with something different that everyone will believe will work and a new World will dawn where everyone has a just and financially sound lifestyle. Of, course it won’t work.
    The only way to survive and do well is know where you are in the cycle and to use it’s rules to protect yourself.

    #16973
    raptor
    Participant

    Bring on the deflation. I’m not buying the “deflation is bad” tripe. Our system needs to unwind. Peacefully is best. However some lynchings will occur. Debt and its creators must not get a pass. An overpopulated and overpriced world is what has occurred under this system. Let’s try another one for awhile.

    #16979
    Professorlocknload
    Participant

    Fannie Mae is going to be another major contributor to the next QE. And yes, this all goes full on Zimbabwe before real Deflation is allowed to gain a foothold.

    Bazooka hasn’t been deployed yet, but it’s dusted off and ready.

    Rates must “normalize” to save the system. There is only one way to do that.

    Devalue.

    Period!

    #16990
    Golden Oxen
    Participant

    The fallout from a collapse of Fracker junk debt could also pull out the Bazooka, could be very soon the way oil prices are currently falling.

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