Category Archives: Archived

My last comment on this “Economy” discussion and this one my simply cause your brain to turn to Cheetos!  This “Cycle” of  Debt creation,  Inflation and Collapse, I theorize,  may actually be deliberate, planned and/or crafted purposefully.  The reasoning is vague and may seem wholly inconceivable which I readily acknowledge but for one simple reason and it goes like this:  Let’s imagine for the time being that you are a Bank but, NOT just any Bank!  You are a Central Bank and being a Central Bank you and you alone are privileged with being able to print all the Currency you want. Your Currency is the very life-blood of the Economy/Nation you serve.  Nothing and I mean nothing moves from the extraction of raw material to finished product, from the oil reserve to the local gas station,  from the Government to the Citizenry, from the timber stand to the eventual home,  from the reservoir of water to the tap in any sink without using YOUR Central Bank’s Currency.  It’s important that you master this understanding to this point as nothing I will say further will make sense if you don’t!  Read this preamble of this illustration again and again until you do! You are not only the life-blood of the Economy/Nation but you also create the Blood!  Now,  for all your printing efforts you are entitled with the ability to charge (Interest) your friendly distributor,  your local Banks,  for the their distribution of YOUR Currency about the Economy/Nation for which they also charge their Patrons for its use all of which is evidenced by some form of Debt Instrument (e.g., Mortgage, Secured/Unsecured Loans etc.).  Wait,  it gets even better.  One of your best Clients is the Government because this entity wants to spend as much as it wants and because Debt = Economic expansion YOUR Bank is only to happy to oblige.  So,  for your Best Client,  you give them all the Currency necessary to suit their delight after all,  all you have to do is print it.  Right?  Yes,  but it all has to look legitimate so what you do is create pieces of Paper evidencing the Governments promise to pay YOU back and then turn around and sell them to unsuspecting Investors who actually think,  one day,  these Instruments will be settled.   Now,  here’s were it really gets interesting.   At some point the Economy/Nation’s ability to advance this cycle of debt creation,  for various reasons some of which we illustrated above in the “Housing Industry” discussion,  simply becomes unsustainable.   What do YOU do,  what do YOU do?  Well YOU do what every self-respecting Central Banker would do which is you simply allow the system to collapse.  The financial markets where Debt is traded (along with other Securities) implode, the Real Estate that you secured by your Debt Instrument submerges and the Economy that is stimulated by it all founders. The Government is, to some degree, off the hook too.  How,  because the Debt you sold the unsuspecting Investor that funds the Government now becomes nearly worthless.   This statement,  I know,  needs further explanation,  but I’ll not bore you further.  Just,  for now,  accept that it does. Lastly,  and this is really, really, good news,  the stage is now set, once the dust settles,  for YOUR Central Bank to start the cycle all over again because you’ll come to the rescue with more Currency!  You don’t mind though,  all you have to do is load up the printer with paper and ink and start it all over again!  Read more...

Apparently,  there are seemingly few moments in the span of a twenty-four hour period when my brain isn’t engaged.  Ennui is rarely present.  I point this out in a more or less tongue and cheek sort of comment as I’m not necessarily proud of this characterization nor am I completely at ease with confessing it!  However,  the level of depravity one witnesses in our present day world makes,  as a source of commentary, for an extremely target rich environment.    There seems so much to be concerned about yet there is so little time spent by the purveyors of social conscious (Media) devising a coherent and constructive query that has any discernable poignancy or prescience!  Read more...