LibertySteve

When you hear there is a “currency war” or that “reducing the value of a currency will increase a countries exports” you are hearing propaganda. There is no mechanism by which printing money makes manufacturing more efficient. That’s silliness. The real story is that the Dollar is dying, and financial collapse and chaos will result. The U.S. is printing money to stave off the collapse, and central banks around the world are printing money in effort to prop the dollar up! Everyone will suffer when the Dollar goes up in smoke, so everyone is participating in kicking judgement day down the road.

The U.S. Dollar was debased in 1971. It has no backing, which means in real terms, it has the same value as an expired coupon. You could have traded 35 dollars in for an ounce of gold, but that offer has expired. Every currency that has been debased has ceased to exist. It’s just a matter of how long the public will remain in a delusional state about the meaning of their currency. In the end, the hard fact – it’s nothing but a piece of paper, will force the issue. The root problem with the financial markets right now has to due with people trying to trade in their paper assets for real stuff, and the real stuff isn’t there. Shockingly, printing money didn’t create more real stuff. This financial strife will continue until people demand paper assets that are guaranteed to represent real stuff – a backed currency.

To slow down this result, and to give the banks time to trade their paper for real stuff, we are being fed lies. We hear that printing money is “good”. Or “The Dollar is backed by the faith and credit of the United States.” What is the nature of such backing? They promise to give you a government bond in exchange for your Dollar? And to pay you back for that bond with devalued Dollars? The whole thing is a scam. It’s a monitary ponzi scheme.

As I predicted two months ago, the news media is improperly pairing the debt downgrade with our economic implosion. (This classical conditioning lie was found on FoxNews.com) The economy didn’t just suddenly turn south, it has been steadily declining. The market simply corrected to reflect this fact. The market had been rising based on false assumptions about a recovery and needed this correction. The cause for our economic decline is artificially low interest rates, government regulation and spending. The cause of the market correction is that the media presented enough bad information in a timely manner to make reality hit. And it was done on purpose.

This was done purposefully so that they could control the time schedule. People were going to wake up eventually, so they purposely engineered a market collapse so they could carefully control perception and frame the situation. The main objective is to convince people the economy is hurting because of a decision a few people made, rather than the decisions millions are making because of artificially low interest rates and government regulations.

As usual, the perpetrators are vilifying their sheep dog S&P so as to reduce the suspicion of collusion, but colluding they are! S&P helped bankroll Obama. Obama has been the puppet of the investment/banking community from day one, he works for them. Absolutely S&P timed their downgrade at the right time, and it was obviously the right time. Remember, I even predicted it! This was an engineered collapse, pure and simple.

Two months ago I wrote that we were a couple months from a major market crash, and thursday the market dropped more than 500 points, more than a thousand over the week. I had also said that this drop would be caused by a contrived event. I was right about that also. The entire debt ceiling farce consisted of manufactured drama, ending in the status quo all similar debates end with – more debt. Shockingly, I said that my clue that all this would happen was Bernanke saying he saw no sign of a double dip in the economy. How are such predictions possible?

It begins with having a sharper more clearer version of reality. In this case, it helps to understand that the entire media works together with the government and the federal reserve. And I mean the ENTIRE mainstream media. Unbeknownst to many, Fox News IS mainstream media… so is NPR. If you listen or watch any of that stuff, you are being as manipulated as the program directors think they can get away with for that audience, for the purpose of increasing government power and control.

It also helps to have an accurate view of government. I define it as: A firm with a competitive advantage in the use of violence over a specific geographic area. Someone once asked me why I would adopt such a horrid description. The answer is, because it’s most accurate. It helps in situational analysis as well as predicting outcomes. When you understand that crime generates bad social results, and you understand that government, in any form is legalized crime, you can predict the bad outcomes government will create despite the propaganda.

Lastly, it takes a good understanding of the propaganda techniques. This page is a good primer. You can study NLP and hypnosis, and pay attention to presuppositions. If someone says, “They lowered the US credit rating DESPITE raising the debt ceiling,” that message contains the presupposition that going into debt helps someone’s credit. When you note these techniques, you begin to see patterns. In this case I identified a past pattern of classical conditioning to associate bad economic news with something other than government growth. At this time I’m not sure they succeeded in that objective, but that doesn’t mean they didn’t try.

Rational ignorance states, “When the cost of educating oneself on an issue exceeds the potential benefit that the knowledge would provide, the person will remain ignorant.” For example, I am rationally ignorant of the exact number of pennies in my coin jar at home. No reason to bother with such frivolous information. However, rational ignorance is regularly offered as an excuse for wide spread adoption of false economic beliefs, particularly for why voters always vote for nauseatingly bad economic policy. That theory has the repugnant oder of wickedness encased within a misdirection.

People routinely spend vast amounts of resources perusing futile interests based on flawed economic assumptions. Countries spend billions of dollars and countless lives warring over economic positions. Putting your life on the line, being taxed half your income, and going without resources needed for productive activities cannot cost you less than it does to read a page or two about economics. Similarly, many people dedicate their lives, give massive amounts of money toward, and vote for, economic policies that have the same scientific foundation as unicorns. The comparatively small amount of work it would take to understand simple economic principals would save these people generously, so the suggestion that they are being rationally ignorant must be false.

People can’t discern a sound economic idea from a turd sandwich because they are deliberately fed flawed nonsensical rubbish. The notion that economic ignorance is rational, with the presupposition that ‘knowing economics doesn’t help you’, is an example of such rubbish. People have a strong desire to understand economic issues but they don’t seek new information because they think they already know. The TV and Newspapers are inundated with scam artist’s sock-puppets shoveling slick sounding blarney with presuppositional excrement filling the void in peoples’ eager minds. Any paltry look into the matter shows this to be true. Ask anyone you know about an economic issue. Do they claim ignorance? Or do they regurgitate snake-oil puff?

I suppose something similar to rational ignorance does occur, but ‘willful ignorance’ would be a better label. People willfully block information when they are living in fear, or the information would challenge their ego. However, people can’t make the choice to block scary ego confounding information unless part of them already knows what the information contains. These means the behavior really belongs in the category of the old fashioned ego defense mechanisms such as repression and denial.

The austrian business cycle can shed light on a few of the reasons for our economic predicament. Most economists who work from this theory predicted the latest bust, long before anyone else. The basic frame starts with the understanding of the connection between people’s future needs and the investment activities that satisfy those needs in a healthy economy.

When people have future needs, like to buy a house, they will save money. They put money in the bank, and the supply of loanable funds increases in that bank. An interest rate is simply the price one can “buy” a loan of those funds, and the law of supply and demand tells us that if the supply of something goes up, the price will go down. So, as people save for future purchases, interest rates go down.

When interest rates go down, businesses can more easily borrow money to produce machines and tools that will provide goods in the future. Also, because of the nature of compounding interest rates, the lower the interest rate, the more likely a business is to purchase a long term loan. This means that at really low interest rates, they can engage in projects that will not produce goods for a longer time. These factors create an amazing natural coordination. As the more people save, the more investment we get to produce the goods people are saving for. When people save for longer terms, we get investment in longer term projects.

The second coordination in a healthy economy has to due with the labor force. As people save, they obviously spend less. When spending goes down, this frees up labor that was engaged in sales type activities. However, the simultaneous increase in investment in long term projects, creates a need for labor in areas such as mining, trucking, and construction. This is essentially how healthy economies shift needs in labor without causing unemployment problems.

Now lets see how a boom/bust cycle can be created. Instead of having free market interest rates, a central bank may dictate a lower than would be natural interest rate. In this case, the lower interest rate does not accompany real savings. People are not saving for future purchases, and may even be going into debt. Meanwhile, the low interest rates lures businesses to invest in long term projects anyway. This creates a strain in the economy requiring labor in both service and sales sectors, as well as mining, trucking and construction. The result is that labor will be pulled in from outside, and immigration exceeds normal levels. This situation is often viewed as a “boom”, but should be viewed as an unsustainable “over heating” of the economy.

Eventually, businesses start to finish their long term projects and roll out big fancy products that only a consumer base that had been saving could afford. In our case here, the consumers were not saving, may even be sunk in debt, and cannot afford the new products. The businesses do not get the sales they expected, and cannot pay their loans. Businesses begin to fail, banks start to fail, and the larger than normal labor force exacerbates the impending unemployment problem. This is the “bust”.

This is far from all the reasons our economy is in the shape it is in now. Unfortunately, it is not the only reason things will get worse before they get even worse, but I hope this post will help someone gain new insights into the problems we have.

ALERT! We are months away from another major economic meltdown! How do I know? Because we’re already in it, and the media lies. Let me explain.

The economy has been turning downward for more than a decade. Back in 2006, 07 the media ignored this contraction, while many like me were screaming about it. Then in 2008, we had the financial disaster. This was not an economic downturn. Banks had been failing at in increasing rate long before. The only thing that changed was Henry Paulson said they needed $700 billion to rescue his “not allowed to fail” banker fiends, and this freaked out the markets. Suddenly the media shifted their focus on the economy and called it a “recession” which again affected the markets. But there was no sudden economic event, and it was not caused just by crap lending practices… the economic decline had accelerated BEFORE this event.

Now we are to see another media manipulation of the same type. While the economy has gotten progressively worse, the media has consistently talked about the “recovery”. There is no recovery. While the media focuses on fake, misleading statistics like GDP, they ignore real data that suggests it is harder for the average american to feed, house, and cloth themselves. They even announced the recession has ended, but the numbers are worse today than ever.

Today, Bernanke said he does not anticipate a “double dip”, indicating that the media is about to turn. How do these words help the manipulation? Because so many people trust Bernanke, what he says gives them a feeling of hope, and confidence. That emotion is the deception. Later, the media will pick another scapegoat event to blame the economy on. Whatever that event is, when it occurs, the media will shift their focus toward the negative economic realities, giving people a sense of doom. The shift in feeling makes the deception real. The facts don’t matter. All people will remember is that they FELT optimistic, then suddenly, they felt bleak after some contrived event.

The deception hides that the economic downturn has a 1 to 1 correlation with massive growth of government and spending. Suppose they intend on blaming the economy on a solar eclipse… People will remember feeling optimistic, then the solar eclipse happens and suddenly the market crashes and media goes negative. They stop talking about the 9% unemployment rate and start quoting the more realistic 17 or 24% rates. Then people feel pessimistic and discouraged, the markets correct to mirror these feelings, and people around the world believe a solar eclipse caused an economic collapse.

I beg people. Stop letting the media run your emotions. The facts are, the economy has been going steadily south for decades.

I am SO CREEPED OUT! I just heard last night’s ABC piece on rising food prices and they blamed it on the weather, population, and speculators!

I told everyone when TARP, and all the government spending occurred, food and energy prices would rise because of inflation. I was right.

Weather? Every year has weather! Just saw a study showing this year’s weather is no different from any others. But the values of the dollar is going down.. IT’S INFLATION!

Population? More people means there’s more people FARMING! Population didn’t explode in the last two years, government spending did! The value of the dollar is going down. IT’S INFLATION!

Speculators keep prices LOW when a crisis occurs. They SELL when the price gets high, lowering the overall price in the market. And speculators are just as likely to speculate that prices are going to fall. Why aren’t they? Probably because like me, the see IT’S INFLATION!

When you print money, the supply goes up, so the value goes down (supply and demand). Then dollars are less valuable, it takes more of them to buy the same product (prices rise). If you play poker and everyone get’s 10 chips, how will everyone bet? If everyone get’s 1000 chips, now how will they bet? Increased supply of currency causes prices to rise. Simple.

And the reason we are seeing this overseas so much first, is because Americans buy so much stuff overseas with Dollars.  We are exporting our inflation.  But other countries are getting sick of our weakening dollar and are in the process of changing the currency they trade in to something else. That means the balance will shift. Not only will the dollar be going down because we are printing so much (supply) but it will also go down because the rest of the world doesn’t want it anymore (demand).

The problem stems from a currency that is not backed by a commodity. When a currency is backed by a commodity, governments and Fed chiefs can’t print money. Such money is very stable and actually helps an economy.