Sunday, January 30, 2011

Bernanke prints Food

The riots in North Africa and the Middle East are occurring for one main reason.  People are hungry.  Yes they want their leaders gone, and yes they want a better form of government, but the tipping point is the aching coming from their bellies.  Here in America we have the same thing, yet the dollar keeps the food stamps coming in.  The problem is, the greater the amount of dollars issued by Bernanke, the greater amount of food stamps needed to feed the hungry.  If Bernanke could just print food, we wouldn't have a problem.  Bernanke wishes to be such an alchemist, if only for a day.  Yet the man who stands in front of America comes from a long line of self taught alchemists.  The dollar has brought more complacency to policy than anything.

Americans have been privileged for the last hundred years because of the dollar, yet at the same time, it is the dollar holding them back.  The dollar has the upper hand when it comes to finance, but for those who do not earn many dollars life becomes cumbersome.  It is even worse when other countries try and compare their fiat vs the dollar.  The dollar has unlimited power on the Monopoly board.  Imagine playing that board game with someone who can give themselves as much money as they want.

Life in America is slightly different from the rest of the world, until it isn't.  No one can print monie, and so it is only a matter of time before the fiat ponzi collapses.  It is in its death throes now in not only North Africa and the Middle East, but in Europe's periphery as well.  These nation states are about to rise up and end the old system.  Will the new one be better?  Time will tell.

In America, we elect new Congress and new Presidents.  We have a schedule.  This schedule makes us think we can change things, when in fact it makes us complacent.  Instead of wanting to kick everyone out at once, we wait for the schedule.  This appears different from dictatorships because it appears we have the ability to change the system when we want to.  The only difference is the apparition of change, when that is far from reality.

First of all, never forget, Diebold threw the '00, and '04 elections.  Would Gore and Kerry have been different?  No.  But I think it is important to remember that America is a fascist dictatorship.  Obama's policies are no different from Bush's.  Even Dick Cheney can tell you that.  From Guantanamo to the wars, same policy.  The ironic thing is that they share the same economic policy; Keynsianism.  Then again, we are all Keynesian, ain't that right Nixon?

Bush ran TARP through like a dagger in the side of America.  Obama not only cheered from the sideline, he came onto the field!  Remember, Obama flew from his campaign trail to plead with Congress to pass TARP.  What do we owe these politicians?  Did they save the world from crashing?

First, it is the politicians and bankers who got us into this mess.  Truck drivers did not want NAFTA passed (yes I am taking this back through the incompetent line of Presidents), teachers did not want TARP ushered in, and Americans do not want any more of this quantitative easing.  So if the people of America do not want this farce of an economic policy, and neither do the people of the world, why are we doing it?

There is a theory, the current 'politic', that people can not think for themselves; that they need others to tell them what is right.  I think that everyone has the ability to see the truth, and therefor no one needs anyone else's opinion.  Of course the best way to solidify an opinion is to keep an open mind and listen to other people's thoughts.  People's experience are circular.  Do we need linear thinking to prove our axiom?  Probably.

Bankers want money.  They start a system based on usury.  The usury gets out of control.  What should be done?  Should we continue to inflate the old system?  No, because the system is flawed.  Usury is against logic.  We want everyone to be safe and happy, that is our goal of our society.  Anything that goes against that should be taking outside.

The control of usury is not only subversive, it is binding, but if only in our thoughts.  People now think that the almighty dollar will save us from....the almighty dollar.  Yes, people are shadow boxing, and it would be a great exercise if they knew what they were doing.  Practice is practice.  The game is the game.  We have been in the game since oil plateaued.

Is it ironic that once oil plateaued the oilgarchs crashed the already totally fucked economic system?  They had been preparing to do it since Rubin and Summers rammed NAFTA through, since Glass-Steagall was eliminated.  Once Greenspan tipped off the "housing fiasco" with cheap rates the system was as good as done.  Housing peaked in '05, equities peaked in '07, and during that time oil production went flat.  It was time.  It was their time.  Oilgarchs and their ilk do not let opportunities go to waste.  All of this was part of the plan.  And like a phoenix their will be dust to dust.

This is why I strongly believe that fiat has its days numbered.  While the world burns the dollar is safe nowhere.  Paper will be ashe in an instant.  That is the way it goes.  That is science.  Another point of rhetoric is that fiat was never and will never be monie.  It does not fit one of the rubrics, and that is "a store of wealth".  An IOU is not a store of wealth.

This is where gold comes in.  It is a store of wealth.  Yes that wealth is determined based on the world's financial structure, but what does that mean today?  With quadrillions of dollars floated through the netherworld, and two Olympic sized swimming pools of gold, what does that tell you?  What does it mean that when Presidents flee their countries, they take as much gold with them as possible?  What does it mean that Fort Knox has not been audited in several decades?  What does it mean when COMEX, the LBMA, and EFTs like GLD have more paper claims on their gold than they have on reserve?

Hugh Hendry had it right when he said, I suggest you panic."  He did not mean go hide under a rock, however.  He meant that if you were to hide under a rock, you better line up your ducks first.  The squirrel, as unattractive as it is, is at least smart enough to save for the winter.  They kept their wealth stored, safely or not, they tried.  Trying is half the battle.  This battle may soon be over.  When the next terrain has a more adjusted and real narrative, where will you be?

Right now the richest people in the world are in a country that can seperate itself from the rest of the world in fifteen minutes.  All it has to do is blow its bridges, which are wired with explosives.  How ironic that the oilgarchs are as far away from the problems that they have created?  It is not ironic at all.  There are reasons even behind manic thoughts.

No comments:

Post a Comment