Highly recommended website, Common Sense Radio. Ken talks about the republic and how the politicians have stolen the American way of life. The financial system as you know it is over, there is time to save the 50 republics of the one United States republic.
http://www.reclaimmichigan.com/commonsenseradio.html
Sunday, April 11, 2010
Friday, April 9, 2010
It's Over, Last One to Realize is the Biggest Loser
The graph shows you above that your system is coming to an end, the system DEMANDS exponential growth but you can't even achieve what is needed with interest rates going to all-time lows.
I saw this discussion on TV, there was interviewer and two people being interviewed. One guy was a small businessman, the other was a banker. The businessman was like I can't get a loan to fund payroll, the interviewer was like all angry and says to the banker why won't you give this guy a loan. The banker looked confused, well my first question would be what kind of business model do you have if you have to have continuous loans to fund your payroll.
The seniors are crying because rates are too low, well the reason they are low is because nobody wants your money. The system is coming to an end.
Everyone is searching for yield but no one can or wants to borrow from you. IT'S OVER JACKASSES.
China the 2010 version of the 1930 United States
Headlines: China fin min fails to sell out bills at auction
http://tmdcelebritynews.com/headlines-china-fin-min-fails-to-sell-out-bills-at-auction/012980
China is no different than the United States was in the late 1920s and early 1930s. The United States was a huge exporter, flooding the world with cheap products.
The only reason those factories in China keep running is because of newly created credit created worldwide, lead by the United States. Wait till all you nutbags see the hidden balance sheets over in China where they are building large cities that have no occupants.
China runs the exact same system as the United States, and is a part of the global financial credit system. The system is expands at the rate needed or it starts to collapse. The Chinese have about as much power to sustain the equation long-term as Snoopy.
http://tmdcelebritynews.com/headlines-china-fin-min-fails-to-sell-out-bills-at-auction/012980
China is no different than the United States was in the late 1920s and early 1930s. The United States was a huge exporter, flooding the world with cheap products.
The only reason those factories in China keep running is because of newly created credit created worldwide, lead by the United States. Wait till all you nutbags see the hidden balance sheets over in China where they are building large cities that have no occupants.
China runs the exact same system as the United States, and is a part of the global financial credit system. The system is expands at the rate needed or it starts to collapse. The Chinese have about as much power to sustain the equation long-term as Snoopy.
Monday, April 5, 2010
Inflation My Ass... Dig Up The Corpses
http://www.zerohedge.com/article/two-cases-against-inflation#comment-286772
Interesting article over at zerohedge.
Not this again. The banks are not holding onto anything at all. If you line up a 100 million people that are able and willing to take on additional credit at an exponential rate, you would be back on the road to growth. The problem is the system is tapped out, you ran out of the amount of lemmings to support your pyramid scheme.
Banks will lend, they have no one to lend to. Why people continue to talk about this is beyond me. You ran out of brick to put in your pyramid, I guess you could start digging up corpses and have them sign on the dotted line.
Inflation is the increase of money. In today's system "credit" is used as money. Credit use is not expanding, it's collapsing. Unless you can find more and more people willing to take on more and more debt, it's over... simple as that. You are simply running out bricks to put in your scheme.
YOU KNOW WHY I KNOW THIS WILL COLLAPSE? BECAUSE I CAN DO SIMPLE MATH AND NOBODY CAN EXPLAIN HOW HUMANS CAN SUPPLY AND DEMAND AT A EXPONENTIAL RATE LONG TERM. IF THEY COULD EVERY PYRAMID SCHEME WOULD BE UP AND RUNNING.
Interesting article over at zerohedge.
Of course, the one aspect that Moody's does not discuss at all is the surge in money printing. Yet as monetary aggregates are still falling, and all the excess money is held by banks in the form of excess reserves, the debate continues to be just what catalyst will force banks to part ways with this handy $1.2 trillion buffer.
Not this again. The banks are not holding onto anything at all. If you line up a 100 million people that are able and willing to take on additional credit at an exponential rate, you would be back on the road to growth. The problem is the system is tapped out, you ran out of the amount of lemmings to support your pyramid scheme.
Banks will lend, they have no one to lend to. Why people continue to talk about this is beyond me. You ran out of brick to put in your pyramid, I guess you could start digging up corpses and have them sign on the dotted line.
Inflation is the increase of money. In today's system "credit" is used as money. Credit use is not expanding, it's collapsing. Unless you can find more and more people willing to take on more and more debt, it's over... simple as that. You are simply running out bricks to put in your scheme.
YOU KNOW WHY I KNOW THIS WILL COLLAPSE? BECAUSE I CAN DO SIMPLE MATH AND NOBODY CAN EXPLAIN HOW HUMANS CAN SUPPLY AND DEMAND AT A EXPONENTIAL RATE LONG TERM. IF THEY COULD EVERY PYRAMID SCHEME WOULD BE UP AND RUNNING.
The Big Unraveling
It has never been about "if" it will unravel but the size of the problem humans would create "when" it unraveled. This is the largest wave in the history of man to date, the unraveling will be the largest humans have ever seen.
The attempt is to fight off the inevitable as long as possible.
"That is the sound of inevitability"
In this case, the government has figured out that the equation only works in one direction. The problem is, you would have to have unlimited ability to supply and demand from the equation to keep it going. The private sector is gone, the only player left at the table is the federal government. Of course, the house will allow the government to play at the table by themselves until the house has taken everything the government has to play is gone.
For the system to survive even longer leverage must continue to go up, of course that is just going to make the fall that much more interesting.
See Federal government Z1 report, it's over folks.
It's like have this nice sports car, you ramp up to 5000rpm to get some speed, then you ramp it up to 7000rpm, then when that is not fast enough you ramp it up to 9000rpm, eventually smoke starts coming out of the hood and it doesn't matter how far down you press that gas pedal, it's over.
It's not the fall that kills you, it's the landing.
There is no Perpetual Motion Machines in this financial system, all of you are the machine, and when the machine has hit it's max that's it, it's over. You have no ability to supply and demand at an exponential rate for the long-term, around a generation or 60-80years.
The attempt is to fight off the inevitable as long as possible.
"That is the sound of inevitability"
In this case, the government has figured out that the equation only works in one direction. The problem is, you would have to have unlimited ability to supply and demand from the equation to keep it going. The private sector is gone, the only player left at the table is the federal government. Of course, the house will allow the government to play at the table by themselves until the house has taken everything the government has to play is gone.
For the system to survive even longer leverage must continue to go up, of course that is just going to make the fall that much more interesting.
See Federal government Z1 report, it's over folks.
It's like have this nice sports car, you ramp up to 5000rpm to get some speed, then you ramp it up to 7000rpm, then when that is not fast enough you ramp it up to 9000rpm, eventually smoke starts coming out of the hood and it doesn't matter how far down you press that gas pedal, it's over.
It's not the fall that kills you, it's the landing.
There is no Perpetual Motion Machines in this financial system, all of you are the machine, and when the machine has hit it's max that's it, it's over. You have no ability to supply and demand at an exponential rate for the long-term, around a generation or 60-80years.
Friday, April 2, 2010
3 Suprises This Week
Well, the 3 biggest surprise for the week for me were, that other people were surprised to find out:
1.) Comex is a highly leverage exchange, a paper exchange.
2.) That the Fed were buying products outside of their statutory authority.
3.) The Fed is unhedged in large portions of their holdings.
I am actually shocked these things were news this week. I thought the above was common knowledge among professionals.
1.) Comex is a highly leverage exchange, a paper exchange.
2.) That the Fed were buying products outside of their statutory authority.
3.) The Fed is unhedged in large portions of their holdings.
I am actually shocked these things were news this week. I thought the above was common knowledge among professionals.
Thursday, April 1, 2010
End Game (Not April Fools)
Why Is The Fed Actively Managing A $25 Billion Maiden Lane MBS Portfolio When Its $2.4 Trillion SOMA Holdings Have A $1 Billion DV01? (And Are Unhedged)
http://www.zerohedge.com/article/why-fed-actively-managing-25-billion-maiden-lane-mbs-portfolio-when-its-24-trillion-soma-hol#comment-283320
Interesting article over at Zerohedge. Goes on to discuss a non-hedge position by the Fed in case of MBS and Treasuries. It goes to the heart of the end of the system. Tyler goes on to say,
There is no counterparty even close to big enough to handle that trade. This is the end game of the equation. They don't call it a death spiral for nothing. I don't know why this is a big surprise, the Fed is the buyer of last resort, if there were a party larger enough to sustain the loses you wouldn't need the Fed in there buying. I assumed everyone already knew this, they don't call them the lender or buyer of last resort for nothing.
One point I would disagree with is this.
The only thing hyperinflating will be graves and funerals, that is the final result of using the equation. I assure you credit will not be inflating, it will be non-existent. You can't feed 7 billion without a credit system, no way Jose. The liquidation process will be long, hard and very deep this time -- it's not going to be a picnic like last time.
Also, the Federal Reserve is not a ticking time bomb, the whole system is. It's been a ticking time bomb since humans came up with this pyramid scheme.
THE EQUATION ALWAYS WINS!
http://www.zerohedge.com/article/why-fed-actively-managing-25-billion-maiden-lane-mbs-portfolio-when-its-24-trillion-soma-hol#comment-283320
Interesting article over at Zerohedge. Goes on to discuss a non-hedge position by the Fed in case of MBS and Treasuries. It goes to the heart of the end of the system. Tyler goes on to say,
"Yet that which is truly relevant, the Fed's nearly $2.4 trillion in holdings of MBS, Agency and Treasuries is completely unhedged. Good luck finding the counterparty that would be willing to put on a $200 trillion gross notional interest rate swap with the Fed."
There is no counterparty even close to big enough to handle that trade. This is the end game of the equation. They don't call it a death spiral for nothing. I don't know why this is a big surprise, the Fed is the buyer of last resort, if there were a party larger enough to sustain the loses you wouldn't need the Fed in there buying. I assumed everyone already knew this, they don't call them the lender or buyer of last resort for nothing.
One point I would disagree with is this.
"If rates do go up, and if the System Open Market Account holdings are unhedged, hyperinflation Catch 22 - here we come (oh yes, and the Federal Reserve is now a ticking time bomb)."
The only thing hyperinflating will be graves and funerals, that is the final result of using the equation. I assure you credit will not be inflating, it will be non-existent. You can't feed 7 billion without a credit system, no way Jose. The liquidation process will be long, hard and very deep this time -- it's not going to be a picnic like last time.
Also, the Federal Reserve is not a ticking time bomb, the whole system is. It's been a ticking time bomb since humans came up with this pyramid scheme.
THE EQUATION ALWAYS WINS!
Subscribe to:
Posts (Atom)