Sunday, March 6, 2011

Our Economic Death Spiral Into The Second Great Depression

Our economic death spiral into the Second Great Depression
Wracked up by both parties over many decades our debt has evolved into a yearly deficit that can no longer be serviced with tax revenue and borrowing.
To avoid default Ben Bernanke chose to monetize the un-payable portion of our deficit. Each month about 100 billion dollars are created out of thin air to cover our government’s bills.
This has set forth an unstoppable, self reinforcing, negative-feedback-loop whereby:
Debt monetization (printing money out of thin air to cover the portion of governments spending not satisfied by tax revenue and borrowing) reduces the value of the dollar.
The debt monetization triggers dollars to flow out of bonds and into commodities.
This increases demand, commodity prices rise.
As commodities make their way into the supply chains businesses and consumers realize higher prices.
Since globalization has caused wages to stagnate at 1970 levels, and with 23% unemployment, businesses try to eat increases, this in turn reduces hiring, causes layoffs and kills expansion.
Consumers reduce their purchases, case in point: Wal-Mart is losing market share to the Dollar Store - that right there spells retail health (read: it’s terminal).
Nations whose citizens spend 32%-52% of their entire budget on food are especially affected.
In those nations where citizens spend 32%-52% of total their income on food; food riots erupt, social unrest breaks out, governments topple.
Geographically speaking, many of these nations are in the Middle East where about a third of the world's oil supply comes from - so oil production is adversely affected, the price of oil increases. Drastically increases. The empire must then send in troops and warships to protect oil assets from being wiped off the map.
Oil is an integral part of everything from farming to manufacturing to transportation, therfore the prices of all goods and services rise.
This of course creates more stress on our economy, which drives tax revenues down, whic creates a greater deficit, which causes idtiot Ben to lean on the print button and monetize even more debt.
Like an infinite loop in some errant computer code we go back to #1 above and iterate back through this unstoppable, self reinforcing, negatively-insane-Ben Bernanke-code that we call a negative self reinforcing feedback loop.
Bernanke's Crimes Against Humanity
More Here..



Read more: Dollar's Global Fall Will Be 'Disastrous’ for US Living Standard 


Demonetized Currencies

12 comments:

  1. At this point - the entire world revolves around Oil; evrything else is secondary in nature.

    As a country - we should have been adressing this problem 25 years ago - and adressing it hard. Like everything else we Americans do - it got put on the back burner as these foreign regimes, shipping conglomerates, drilling companies, importers and exporters, insurance companies, washington politicos, wallstreet traders and armies of corporate lobbists fought and won to keep the life line of black gold flowing.

    All the while, 3rd world countries fuel their
    vehicles with everything from sugarcane to natural gas and here we are trying to grow corn
    thereby taking valubale foodstocks from the world grain reserves.

    We have had tankers ruin entire coastlines due to drunk captains - entire coasts marginalized due to negligent pumping practices and an entire Guld destroyed because BP wouldn't re-vamp a 5 thousand dollar blowout collar.

    And now we cannot drill on our own soil.

    We own the worlds largest reserves of natural gas and entire city transit fleets now run on nat. gas because the emmissions are so low.

    We have millions and millions of idle cropland due to such high priority topics as "endangered " frog, salamander, smelt, cricket, brown bat, grasshopper and to many birds to print. Nutrient rich land that could grow Trillions of tons of Sorghum or sugar cane

    But oh no - that would be too easy and it wouldn't make the aforementioned a fraction of the kickbacks and power

    Money, Gold, Silver, Platnium, Coal, gas,

    All bullshit because the world is main veining 85 MILLION barrels of Oil EVERY DAY !!!!!!!

    I switched over along, long time ago but until we get 50% of this country to do the same

    More of the same old same old same old dung

    ReplyDelete
  2. Alas 3:44pm change will only come with chaos.

    I could expand on that and give examples but why?

    We all can feel what's coming like a slow train wreck...Some are prepping...Some know and are hiding and some REFUSE to look and understand.

    Still hell of a time to live and see all this rise and fall in our live span...Crazy amazing times.

    ReplyDelete
  3. Not true. This has been said now for years. There is no depression comming. Get on with your lives.

    ReplyDelete
  4. 2:38 Cant you see it just because it is going slow doesnt mean it isnt happening

    ReplyDelete
  5. 2:38 is awesome. They give the rest of us more time to prepare.

    ReplyDelete
  6. 3:44--don't you know that whatever the oil and gas companies take from our land doesn't have to stay here? The companies are under no legal obligation to sell us our own resources. For example, most of Alaska's oil is sold to Japan.

    Of course in order to own our own oil and gas we'd have to nationalize the corporations, but the teabaggers would scream Socialism. We don't even get a fair return for those leases either; they pay the go'vt a tiny percentage, around 5%, for the lease, and keep the rest. They don't even pay taxes, for god's sake. I mean, you do know that ExxonMobil and GE haven't paid any taxes? And if you don't know, they do some effing research.

    ReplyDelete
  7. @7:48: I agree with you completely, and that's why the system is so corrupt. But it's absolutely impossible to prove to the sheeple, even if it's staring them in the face they ignore all the problems.

    The sheeple LOVE corporations and even banks. They love ALL the elite even as they rob us blind. The Joe Plumbers of the world all think they will be elite soon so they argue against everyone else. Only in the US.

    ReplyDelete
  8. I hate both Socialism and the Tea Party.

    The followers of either, and all those in between and further out mindlessly feed the "Problem". It doesn't matter if they desire the economic slavery under Communism, or have vampiric lust for materials along with the egomania that runs rampant in a capitalist system... all of you are brain dead!

    I'm so tired of the stupidity. I can't even get amazed anymore, or baffled. The Progressives, Socialists, Marxists, and Communists, along with the Jihadis are just funny at this point. Yeah, congratulations! You destroyed the United States of America. But you're still not happy... how much more poverty do you want to force on yourselves and others before you're satisfied!? How much more control do you need to strip away from the masses?

    Rather, I mean HELP force. You know, the Tea Party doesn't attract the brightest souls on earth. Most are just middle aged and baby boomer Republicans who have some strange problem when you give loose change to a bum. "DON'T GIVE YOUR MONEY TO THAT BUM! YOU'RE ONLY HELPING HIS HABIT!" Or this one is always a classic, "I WORK HARD FOR WHAT I HAVE!" And finally, "All it takes is hard work and you can achieve anything!"

    Hey... what happened??? How come we are being annihilated from within if God blessed us and if we all worked so hard? According to the economic doctrine of Republican Baby Boomers hard work equates to wealth and success. So how come we are all about to become 21st century paupers!?

    HAHA! What a joke. What a freaking joke. A slap in the face to humanity!

    Commie dimwits, Marxist morons, tree humping liberals, New Agers, monkey brained generation Y-ers, bipolar rape victims who practice Wicca, followers of the far out conspiracy sites like Alex Jones or David Icke who deny Islamic Radicalism like a bunch of immature, iconoclastic juveniles, grouchy and niggardly Repubs and boomers, the moderates and right wingers who are senile enough to think that McDonalds and Walmart - along with the bankers and TV personalities are a representation of America and prosperity, all the Elites and all of those trashy shit eating professors who murder the minds of their students by singing praises of them, those in Europe who love globalism, Community Organizers mobilizing illiterate minorities in ghettos to vote for criminals, and all of you dumbshit 35 year olds just now realizing your money doesn't go as far as it used to...

    to everyone just mentioned... FUCK YOU! YOU LAME, GOD DAMN FUCKING ASSHOLES!!!



    Good day.

    ReplyDelete
  9. 11:07 Your own Humanity is in dire need.

    To somehow try to equalize everyone else's stupidity; with your obvious ignorance as evidenced by the last line of said diatribe;

    Well now - it pretty much sums you up.

    ReplyDelete
  10. “At this point - the entire world revolves around Oil; everything else is secondary in nature.

    As a country - we should have been adressing this problem 25 years ago - and adressing it hard. Like everything else we Americans do - it got put on the back burner as these foreign regimes, shipping conglomerates, drilling companies, importers and exporters, insurance companies, washington politicos, wallstreet traders and armies of corporate lobbyists fought and won to keep the life line of black gold flowing.Says 3.44”
    that was surely the case in the openly colonialist days.

    But was it really in recent decades the wars and all the rest all simply keeping the cheap oil flowing ?

    Or mainly supporting the OPEC monopoly oil backed US dollar hegemony system in world trade and finance ?

    Whereby America could print trillions of dollars to satisfy a world demand for Fiat paper dollars by every country needing oil. Most dollars eventually being re-circulated back to America, but not as a claim on commodity wealth , but with oil counties investing in US Treasuries ,property bonds ,and interest gaining $ vendor finance for Americans such as supplied by China and Japan.

    American industrial production of real commodity wealth that could be exchanged with other countries in trade was wound down ,as America now relied on the strength of exported dollar paper and foreign dollar credit supply. America became a parasitical consumer society its working people converted from productive of wealth workers into services workers facilitating consumption of wealth.
    America was eaten by Globalism with American industrial capitalists exporting their ‘free trade” capital from high waged industrial America where a real profit could not be got , to the cheap labor third world.


    After the collapse of the foreign credit supply system in 2008 The dollar hegemony economics Ponzi Debt ridden system built on government private and commercial debts began to collapse as interest and dividend payments especially on Dud Sub prime and other bonds could not be met.

    While Sharonji The “lefty”Democrat takes perhaps has a Gaddafian style “American National Socialist” solution.

    “Of course in order to own our own oil and gas we'd have to nationalize the corporations, but the teabaggers would scream Socialism’


    11.07 Hasn’t got a clue about any of this thinking that a perfect American capitalism and strong dollar was sabotaged by Marxists ,unionists , Communists etc not by capitalists ,or the central Bankster organized fiat debt paper dollar hegemony system and the creation of a Ponzi economics.

    ‘“I hate both Socialism and the Tea Party.”

    The followers of either, and all those in between and further out mindlessly feed the "Problem". It doesn't matter if they desire the economic slavery under Communism, or have vampiric lust for materials along with the egomania that runs rampant in a capitalist system... all of you are brain dead!

    I'm so tired of the stupidity. I can't even get amazed anymore, or baffled. The Progressives, Socialists, Marxists, and Communists, along with the Jihadis are just funny at this point."

    " Yeah, congratulations! You destroyed the United States of America."
    !!!

    yes, the economic problems for America were clearly created by Marxists, Communists and their boogeyman dupes the Muslim jihadis , especially those Muslim terrorists that object to US ‘free Trade” by Royal families of oil and puppet elite dictators that America has so kindly militarily protected all these years, like the Nigerian Government ,or those great partners and allies of the USA the democracy loving Saudi Royal family and their theocratic Justifiers the Wahabi sect.

    After all they Price their oil In dollars!

    American CIA has always been the great supporter of “Womens freedom ” and the veil for decades in the middle East as in Kuwaiti And Saudi ! Or, by financing Taliban like the Saudi Bin Ladin in establishing Muslim rule in Afghanistan?

    ReplyDelete
  11. Most Alaskan oil is sold on the West coast of the U.S. Some Alaskan oil is sold to Japan by agreement with them they pay for replacement oil from the Middle East. The logic is it saves about 4000 miles of tanker travel since Alaska is so close to Japan. The net result is the oil that goes from Japan to Alaska is entirely replaced by oil Japan pays to ship to California.

    ReplyDelete
  12. 5:28

    It's called life

    Been goin' on fer a long long time - not much has changed when ya think 'bout it. You have it
    I want it - simple as that.

    Get used to it; she'll be goin' on fer quite a spell.

    Liver eatin' Johnson

    ReplyDelete

Everyone is encouraged to participate with civilized comments.