Socialism is Collapse for it Benefits only Politicians
I am not exaggerating what is going on and how uninformed the politicians are because they do not “represent” the people and are certainly not from our ranks. They are a professional class that see themselves on top of the Great Unwashed looking down upon us all. This is the very same attitudes of monarchy. The king is dead – long live the Professional Politician.
Ex-ECB executive board member Lorenzo Bini Smaghi summed up the recent meetings. admitting: “We don’t fully understand what is happening in advanced economies.” These people are INCAPABLE to avoiding the total collapse because, like the Romans, they too were still laughing as the Empire crumbled into dust as St Jerome put it. There is no conspiracy – this is idiotocracy.
Rallies of the youth in Spain has shown that there is no future. This cannot continue. We are sitting on an explosive situation as we enter May and June. Create massive civil unrest and the German elections go chaotic.
Politicians Are Just Blind to Everything
To be a European politician, it is starting to look like the requirement was to be mentally challenged, incapable of reason, blind to the truth, oblivious to everything around you that shows you are wrong, and obviously they required special schooling as a child. Austerity to maintain “confidence” in the currency isPRECISELY what the academics advised during the Great Depression. Europe is being torn apart at the seams. How can you constantly raise taxes and then expect small business to develop to create jobs? Bankruptcies of business in Spain last year rose 45%. The youth are fed up with “socialism” and fail to see where taxing the rich benefits them with unemployment exceeding 60%. These politicians are destroying the entire future of the next generation. But they could care less as long as they get their perks and retain their jobs – that is all that matters – not the people, the country, or the future. Even S&P in Berlin has reported the rising tensions. You have to be brain-dead not to get this point. What is the end game? Sorry – I did not take the little bus to school so I somehow just do not get this reasoning.
How Europe Fails
Ever since the ECB issued a report that claims the south was richer than the north to get out of bailing them out, the reaction behind the curtain is very interesting. The talk in the south is now to demand reparations from Germany for World War II. What goes around comes around. There cannot be any realistic expectation that these “loans” will ever be repaid. Had they just created a proper structured currency with a single national debt, this crisis would not have materialized and Europe would have emerged as a potential rival to the USA. It is instead one giant joke, Only a fool still thinks the Euro can compete with the dollar. It cannot absorb big capital because there is NO single national debt to compete with the dollar that is the only game in town for reserves. The tensions are rising. Herein lies the seeds of its destruction and even war.
Inflation v Deflation – Reality Check
QUESTION: I read your metals report. This is really a great read. It is deflation that destroys empires by sucking in all assets like a black hole eats star systems. I am correct?
ANSWER: Yes! The hyperinflationists only look at Germany and Zimbabwe and assume if you print enough money that is where you go. What they fail to grasp is that they had no debt markets nor were they the reserve currency with worldwide demand. Germany was a brand new revolutionary government that was inviting the Russian communists to come take Germany. Who would buy their debt under such conditions? Capital withdrew even from the banks, so there was no cash or “real” money to be found. That stands in stark contrast to our position where we have a $17 trillion debt outstanding, $11 trillion in international central bank reserves (primarily debt starting to diversify into stock), with no alternative anywhere in sight since Europe is incapable of offering a national debt product, and who wants Japan?
The dollar is the ONLY game in town for now. Consequently, 40% of the interest is exported and it does not stimulate the domestic economy – non-inflationary. Then we have government aggressively raising taxes and where is much of that money going? Either overseas to service the debt or to government expense. We are sucking the lifeblood of the economy from our veins like a vampire and consuming it by the rising cost of government and exporting what they do not burn up.
The hyperinflationists have you looking in the wrong direction. Empires haveNEVER fallen by that method. Yet they sell this nonsense under the same theory that everyone who has ever eaten a carrot has died, and therefore carrots are lethal. There is a cost to big government – it sucks the productive forces out of the economy and lowers economic growth – plain and simple. These people have eliminated virtually the entire constitution and piss on the graves of such people as Thomas Jefferson and Ben Franklin to mention a few. They can only see their own power and will not give that up willingly.
They have convinced the police and military that everyone may be a terrorist so it is now papers please. The collapse of every empire, nation, and city state follows the same pattern. As the cost of government rises, they realize they need more and more money. That in turn compels them to raise taxes and that produces resistance. That in turn leads to a greater police state to save them control of power. Hitler also made it illegal for Germans to have accounts outside the country. The USA threatens to confiscate assets of anyone who fails to report what Americans are doing overseas so no one will allow Americans to have accounts in Europe – PERIOD!
Even the Empire of Venice established boxes called the Mouth of Truth where you were to report anything suspicious. Your name would not be required. The information then led to the torture of rivals and innocent people. The more you deny, the greater the torture to get to the truth.
We are heading down the very same road. Whatever government has done in the past, they are doing again right now. Hyperinflation is a distraction from what is taking place before your very eyes. They will not print to try to meet obligations, they will default on those obligations and seize everything not nailed down in the process. They will seize all pension funds when the economy turns down in 2016 to “protect” you of course and they intent to be “conservative” and buy government paper. So? What are you worried about? There is $20 trillion in these funds and $17 trillion in debt. Perfect – problem solved! Will anyone complain? Companies will be off the hook. States are behind. Pennsylvania has not funded state pensions for 5 years. The Feds will take over EVERYTHING right down to IRAs and 401Ks to protect you of course. That will justify a national sales tax as well. You have to pay for their amazing skill demonstrated by their management of social security. Remember the words of Milton Friedman.
Welcome to the new reality. If we do not blink – we go to the extreme of a Mad Max Event. So is the glass half full and we head into inflation, or is it half full because they have been sucking everything up? Open your eyes. Put your ear to the ground like the Indians use to do. Are they coming or going? That is a very important question that you have to answer in your mind. Just remember, guess wrong, and you may be totally unprepared for we cannot stop this crisis. It simply has to unfold. We get to pick up the pieces afterwards if there is anything left.