“Let me issue and control a Nation’s money and I care not who makes her laws. The few who understand the system, will either be so interested from its profits or so dependant on its favors, that there will be no opposition from that class”.
Amschel Rothschild, Am Segullah 1838
UPDATE. 2016. JUST IN TIME.
As we predicted the 3rd great crash of the economy, the AGE OF CURRENCY WARS AND BOND MARKET CRASHES, has started.
In the graph, as China starts selling, the Americans as usual put the burden of debt on the Japanese ‘slaves’ since World War II backing always the crashes of its financiers (remember the 2008 massive BoJ bail out that sank further the Japanese economy). But if Trump punishes Japan asking him to pay also the bill of weapons, it might find an independent nationalist Japanese in the rising and with both sells-off the debt has nO BACKERS EXCEPT THE OWN AMERICAN COMPANIES AND PEOPLE’S FUNDS:
IN THE GRAPH, China is selling. Japan is now backing as always the ‘winner of II world war’ and true owner of that country; but Japan might get out of the hook too, and then it will be basically over 3/4 Self-Debt which the Americans won’t be able to sustain in the world market. Once China drops beyond 1/2 trillion it will have zero problems making a sell-off war and manipulate with its higher reserves whenever it wants the American ‘stalwart’ backing of all its speculative economy, its printing money machine, which Trump has said it will use,as Yellen has done ONLY FOR speculative purposes:
And to fuel war, NOT for the people as a public bank and Chinese public banks do. And those are the two types of futures we must consider. Unfortunately public banks are nowhere to be seen and so the future is still the private one:
The screenshots are self-explanatory with some extra-commentaries. Who are the 3 biggest sellers in its proportion of bonds U$ IN THE PAST YEARS?
- Israel, which started to sell a few years ago when the ‘rewarded’ vp of the Federal reserve, stanley, then head of the bank of Israel started a sell off… which was soon followed by Russia, but now a much larger sell-off has started. China is selling treasurys even before Trump comes to power. And immediately after Trump talks on Taiwan:
So here is where we start to see the development of the long ‘prophesized’ next historic phase of currency wars.
And of course, as Trump goes, things could be made even easier. Indeed, let us remember his proposal to ‘NOT’ pay the debt and discount it at 80% who would sink the dollar.
Donald Trump dubs himself the “king of debt.” Experts say he doesn’t have a clue — at least when it comes to U.S. government debt.
Only a few weeks ago, Trump said he could eliminate federal debt in just eight years, a nearly impossible task. Trump’s own tax plan would add trillions to the debt.
Now he says the U.S. should just borrow more and renegotiate the terms later.
“I would borrow, knowing that if the economy crashed, you could make a deal,” Trump said on CNBC last week.
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The reaction on Wall Street and in Washington was that Trump can’t be serious. U.S. bonds are seen as one of the safest (if not THE safest) places to put your money in the world. Tinkering with that would almost certainly hurt America for years to come.
“Mr. Trump doesn’t have a coherent idea of what he’s talking about,” says Michael Strain, an economic policy expert at the American Enterprise Institute, a conservative think tank. “This is the bond market equivalent of ‘we’re going to build a wall and have Mexico pay for it.'”
Related: Donald Trump: ‘I’m the king of debt’
Trump tries to clarify his debt plan
Paying creditors back anything less than the full amount calls into question the “full faith and credit” of the United States.
“People would read this as a default,” says Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “It’s saying we’re not repaying you what you’re owed.”
On Monday, Trump walked away from those comments. He told CNN’s Chris Cuomo he was misquoted.
“First of all, you never have to default because you print the money,” he said on CNN’s “New Day.”
Trump says what he really wants to do is have the government find a way to buy some bonds back at a cheaper price. It’s a fairly common practice for companies with “junk bonds” that are in financial duress.
But Strain, MacGuineas and many others say it would be a disastrous tactic for the United States government.
The problems with Trump’s debt buyback plan
First of all, businesses typically buy back debt when they are in trouble. It’s seen as a red flag. Investors agree to accept less money because they would rather get 80 cents on the dollar than nothing. The U.S. would have to be in terrible economic shape for this scenario to be an appealing idea.
Second, it would alarm investors in the U.S. and around the world to see the trusted U.S. Treasury playing games in the bond market. It could cause huge uncertainty, and possibly raise U.S. borrowing costs for years as investors demand higher interest payments. Other nations like China might even retaliate with trade sanctions or other economic tactics.
Third, if Trump buys back bonds at a lower price, it doesn’t just hurt the Chinese and Japanese who hold the debt. It would also harm millions of Americans who hold U.S. bonds in their retirement and savings accounts.
Fourth, the federal government doesn’t have any money to buy debt back with. The U.S. already has $19 trillion in debt. Trump’s plan would require the U.S. Treasury to issue new debt to buy old debt.
Or it would require the Federal Reserve (America’s central bank) to buy the debt. That can cause inflation (or even hyperinflation), and send prices of everything from food to rent skyrocketing.
And that’s to say nothing of the fact that the president doesn’t control the Fed, so it’s unclear how Trump could even get more money into the economy that way.
“Trump’s recklessness has no limits, even to the point of suggesting Treasury debt restructuring. He’s playing with matches in a very arid forest,” wrote Greg Valliere, chief investment strategist at Horizon Investments, in his morning note Monday.
Related: Trump’s latest wild claim: He’ll fix the debt in 8 years
The 3rd Kondratieff crash: e-money, computer speculation and the currency crisis.
From future magazine, c.o1
Growth of rent in the US in the last 30 years. If we adjust for inflation only the top 20% grew their wealth. The bottom 40% lost wealth. The 1% of top stock-holders and company-men absorbed all through e-money speculation. If we observe the same data for the entire planet the differences are far more pronounced. Since the world has become a plutocracy, where the language of power of society, which is money, no longer the law, is controlled by a few non-elected speculators, which use electronic platforms developed in the chip age to tax unfairly the world economy till exhaustion.
There has never been so much credit… in so few hands: the dictatorship of markets.
Money is fiat. When machines print money in its different ‘evolutionary phases’ they print a fiat, a form of information easy to reproduce. Each generation of machines reproduce easier fiat money. Speculators can create bubbles with simple modes of printing money, now in e-screens, in the 20s with rings of speculators that pushed up prices till finally unloaded it in the public.
In our study of money as a language of information, we explain the ‘secret’ most hidden in capitalism: how two double your capital easy, inventing a new ‘form of representing mney’, which will double the ‘states’ in which money can be kept, like ‘decoupling’ a particle in two. This is essentially what each new form of money does. Paper money represents gold but then you have gold and paper money, twice the money. This way of inventing money requires though legal measures which the corruption of politicians has aways provided to legalize the new representations of money and machines that evolve ways of printing it. Those forms were paper money, electric tickers in the 20s and electronic computers in the 80s and 90s and 00s which managed to multiply the quantity of money and prices in stocks by 100.
The problem for the speculator is not to invent future jacked up prices of things, as it is merely a form of rethoric, digital information, bits in a computer, paper in a printer, ticker roll with numbers in the 20s, but unloaded it for real money into some ‘sucker’, before it looses value.
This means that as new machines and new energies of the 72 year cycle creates new massive forms of fiat speculative money, this must be unloaded. And this produces a bubble in the prices of the things the speculator buys with fiat money and finally when the speculative flush of money collapses, its collapse of prices.
And since humans produce 3 ‘massive fields’ of valuable things, currencies, real state and companies represented by stocks, all speculative bubbles of new invented industrial money have ended with 3 crashes of those 3 ‘real forms of wealth’, when speculators unload and manipulate its prices.
3 financial crashes must happen: the 2001 wave of speculation in stock prices, the 2008 wave of real state speculation, and the 2015 crash of the $, according to the short 7-8 cycle of economics known as the cycle of the product, in this case e-money, which every 7-8 years brings to the market ‘new speculative products’.
Those 3 short crashes are in fact parallel to the 3 crashes of the 1920s speculative wave (first the crash of the deutsche mark that brought fascism, then the crash of stocks and finally of real states and commodities) and the 1860s speculative wave of train stocks, which signaled the final overproduction ages of steam machines and electromechanical ones. This time though the order has changed and we suffered first the stock crash, then the real state crash and now we are embarking in the most lethal of all of them, the crash by speculators of the Euro and Dollar, soon to be substituted by the Yuan as reserve currency. Since this final crisis tends to be the engine of global wars as the deutsche crash was the engine of fascism and II world War.
Thus the effects of this multiplication of speculative platoforms that manipulate the prices of all goods are many and all are negative for the 99%:
– A distortion of the balances and equilibriums between real offer and real demand that used to govern markets. Now the demand is first speculative, then once the prices are jacked up with the speculative tax the product is sold to the real demander.
– A massive redistribution of rents to the speculative, financial houses, through inflationary prices caused by their speculative tax, unfair lobbied laws that minimize their taxation, and unfair new taxes on citizens to cover the no longer allowed deficit rights of governments, which should create the language of power of society, money, instead of giving away that privilege to ‘creationist economics’.
– The entire planet is now submitted to a 10 to 20% speculative tax in the price of commodities and the costs of currency uncertainty, shared by a few financial houses and big ‘movers’, such us Mr. Gross’ PIMCO (2 trillions dedicated to speculate against currencies and jack up prices and interests in the bond market), Cohen, Loeb, Schiff and many other huge hedge fund bankers (who have managed to multiply since e-money was discovered in the 70s by one hundred the value of stocks), Rich or Hirsch in commodities (the speculation in the market of wheat and food, which has reached stratospheric prices, is in fact the main cause of a new wave of global hunger), etc.
Our 20 years old prediction based in our work on information theory, fractal systems and the 700-800-70-80-7-8 long, medium and short waves of evolution of memes of metal are happening with astounding precision. We predicted 20 years ago the 3 short waves/crashes of the global financial economy, with the short 7-8 cycle of the product – in this case electronic money, parallel to the 22-29-37 crashes of fiat money.
Those crashes happen as banksters print fiat money without limit with their new printing machines (the ticker then the bloomberg platform now) and THEN THEY EXCHANGE fiat worthless money for the 3 ‘assets’ that have real value in the economy, stocks, real state and currencies, crashed them. So there was a 22 currency crash (deutsche mark that brought fascism) a 29 stock crash and a 37 real state crash (skyscrapers ended then) that brought world war II and the switch of America from New Deal to arms production…
To state the truth in my original thesis at Columbia University (c.94) I could not figure out the order of those 3 crashes, which has changed. So first banksters crashed the stock market (2001 Nasdaq crash), then they crashed real state (2008 mortgage scam) and so there is only an ‘asset’ to play with, currencies. And indeed, currency wars are starting up, as Japan and England, the ‘selfish islands’ that tend to start those destructive global processes (at this stage Japan was in the last cycle pounding nanking and the Bank of England had started in 28 the crunch of credit that provoked the 29 crash), are already talking of devaluation of currency.
The graph shows how the 3rd wave is already formed. Wait a couple of years when the S&p comes towards 1600 and the policies of inventing money without limit for banksters (central bankers) not for a new deal of real jobs and real welfare goods, makes the Dollar and the Euro and the Pound wet papers… Maybe then, someone will care to say the truth of the crisis instead of censoring it.
The electronic boom and bust cycle. The 2015 crisis.
It is within this faster electronic 72 years cycle of creation of ‘minds of metal’, chips=brains, cameras=eyes and mobiles=ears, when the arrival of chips and e-money in the 70s, provokes a new decametric, accelerated process of evolution of memes, causing the 8 years product cycle and boom and bust cycles of overproduction of e-money – the top cycle of the graph.
So we had since the 1970s a series of boom and bust cycles of creation of e-money, parallel to the boom and bust cycles of creation of ticker, ‘electric’ money in the 1920s and ‘paper’ stock-money in the 1880s:
– The boom and bust cycle of creation of electronic stocks (dotcom, 2001 crash).
– Then 7-8 years latter the boom and bust cycle of creation of electronic ‘real state’ (2008 mortgage crash) and
The key to understand those cycles is the power of speculators and banks who control totally the system – politicos in democracies, without the right to invent money. are truly accessory. Adn what they want – the do not want to KEEP FIAT MONEY, BUT THEY PRINT MONEY TO EXCHANGE IT FOR REAL WEALTH IN MASSIVE processes that ruin society, as financiers seek to invent money for free and change it for the 3 assets of industrial societies:
– Stocks of corporations; real state and paper currency.
So they WILL PROVOKE 3 SHORT CRASHES AS THEY MASSIVELY EXCHANGE their fiat money for real wealth ruining all sectors of society.
1 1st cycle: 1857, train stock crash; 1865, real state crash & 1873, silver currency crash.
2 II cycle: 1922 Mark currency crash; 1929 stock crash & 1937 real state crash.
3 III cycle: 2001 dotcom crash, 2008 real state crash and 2015-16 euro&dollar crash: In S&P graph we see the 2015 final 7 y. crash forming.
– Panic of 1857: train stocks crash due to overproduction. Mr. Lincoln, an Illinois Railroad lobbyist declares war to the south to liberate black slaves but also to build railroads to haul cheap cotton to Northern mill factories of ‘white slaves’. Train ‘demand’ switches to war, thanks to the railroad act that pays robber barons to lay tracks South and West, causing the Indian genocide.
– 1865: Real state crash. At the end of the war the south plantation system collapses, as slaves abandon the land, which is not given to them, since carpetbaggers want to buy it at bargain prices.
– 1873: Silver demonetization causes a global currency crash as deflation ruins middle classes. But corporations keep printing stock-money and politicians push buy trains for colonial wars.
– II Cycle: 1922. Crash of Mark, overprinted by the private Reichsbank to embezzle their owners and pay reparations, ruins Germany. The banking elite depletes German banks of gold moving to New York where the Warburg Syndicate creates the Federal Reserve starting Ticker speculation.
– 1929: New electric machines (tickers) overprint tape prices. Stock speculation becomes rampant, as Federal Reserve and Bank of England fuel credit and then contract it causing the 1928-9 crash.
– In 1937 after a new wave of speculation based in loose credit – NOT invested in the real economy, due to the limited scope of the New Deal – multiplies for 3 stock values. A new crash of stocks and real state, ends the skyscraper era. A much bigger New Deal could have avoid it, creating real welfare, but the opposition of industrial and financial corporations favor the solution already implemented by Germans, ‘guns instead of butter’; that is, fascism, war and holocaust, in which the poor Jewish peasants become scapegoats of their ari-stockracy of international bankers.
Then you add 1929+72 years, as I did 20 years ago forecasting 3 new e-money crashes:
2001:Greenspan’s loose credit policies & deregulation fuels speculation in Internet stocks with no profits. NASDAQ overcomes in value NYSE, then crashes mimicking the 29 crash (graph.9).
– 2008: e-money is tailored to real state with the repacking of worthless 2nd mortgages in CDOs sold to global investors at AAA ratings by the American Financial-Media system till they crash. Instead of ‘erasing’ this false money from their accounts, banks pretend it is real wealth and peers in Central Banks massively reproduce currency, NOT to create a welfare Global Deal to get out of the parallel labor crisis, but to buy toxic assets banks didn’t sell; while politicians overtax people, and give banks their tax money in new bail outs, ruining the middle class. Thus bankers sold 3 times, worthless mortgage assets they invented for free (1st sale, Central Banks credit & bail outs)
– 2015-16: If in 1922 people exchanged Marks, overprinted to pay reparations not to credit German production for $ crashing it, now the massive $ printing by the Fed used NOT to create jobs and wealth with Keynesian policies but for bail outs and soft credit speculate in markets will crash the overproduced $, when China makes its currency convertible, as nations will change their $ reserves to Yuans, the top predator currency of the new cycle.
Since only China is following the right Keynesian policies printing money to create real wealth and a sustainable economy, growing at 10% annually while Europe and America contract the real economy, since bankers do NOT give credit, as speculation, which is just ‘the manipulation of prices to profit without creating real wealth’ (Henry Ford) is more profitable.
The date will likely be at the end of the Obama Presidency when the Tea Party rises to power, the GOP provokes China with anti-communist war rhetoric, and China liberalizes its currency market and sells Treasuries. Then as it happened in Germany, with a similar social structure, neo-fascism might rise in America and civil wars, a holocaust of the Jewish middle class and/or a worldwide war, blaming China might bring more ‘guns instead of butter’.
D) The solution to the pending 2015 crash and III W. W. is thus obvious: end of currency speculation and creation of a global currency ¥€$ money at fixed parity: 1 $=1€=100¥=5Yuans with rights to a 20% annual deficit, equivalent to a 10% annual inflation adjusted for salaries to cre(dit) a Global New Deal with overproduction of Welfare Human Goods and Human jobs ending the crisis (11). Keynesian militarism is never the answer, since wor(l)d life values must control digital money.
BUT THIS IS NOT WHAT IS HAPPENING, AS WE LIVE IN A CAPITALIST DEMOCRACY WHERE HUMANS HAVE NO RIGHTS, GOVERNMENTS ARE PUPPETS OF BANKERS AND CORPORATIONS AND BRAINS ARE MANUFACTURED BY AUDIOVISUAL MEDIA, TO LOVE THAT, since the financial-media system prints also news besides money.
So what will happen ‘after’ the crash is obvious. We shall enter the age of robotic wars, robotic workers, 3D virtual realities that feed humans at minimal cost, and the GOOGLE=skynet systems of global control of information and programming of machines (already more machines are connected to the web), will truly constrauct the metalearth.
Money will become then the digital informative, ‘genetic code’ that organizes their reproduction in those automated company-mothers.
It will be the birth of the metal-earth and the end of history. Mankind will become obsolete and the metal-earth will decree its extinction, as we become further degraded by audiovisual machines. We already are. Let us see in detail why and how.
The hardware of the financial crises: the bloomberg platforms.
The fundamental r=evolution chips have brought about in the financial economy is the invention of a new form of money, e-money. So, nowadays we can consider money to be no longer a representation of soft, informative metal, as paper-money was (gold standard) but bits of information in the mind of computer machines. This transformation of money into pure computer information accelerated its adoption by all companies, which made the chip the main worker in all digital and financial tasks, before performed by human beings. Meanwhile financial companies lobbied to end the gold standard, which limited the quantity of electronic money they could invent. When Nixon ended it and the dollar no longer could be changed by gold, the ‘sky’ became the limit for the free invention of ‘bits of computer information’, now called money. Financial companies invented soon all kind of e-money and derivatives with no value, mere bits of data in the computer screen, whose prices could be artificially jacked up with software programs, to keep creating ever more money. It was the oldest tricks of stock-markets.
When Sephardim invented them in Holland, it was called ‘skinning the rabbit’. The idea is simple: you find something which has not clear price and you speculate creating false, rhetoric information about his ‘stupendous future value’ that sends his price up, till the price is completely inflated. So you need to control the press, specifically today the Wall Street Journal, which each day would come with another fantasy article about the amazing future value of .com companies that never had a profit. Then, you skin therabbit of the ‘real money’, which is in the hair and sell the worthless bones to a 3rd person.
Speculation is the ‘alma matter’ of monetary creation and can be traced to the origins of Canaanite trade, made by bartering, when Phoenicians convinced natives of the value of their glass beans and weapons, they exchanged for slaves and raw metal.
When the stock-market was invented, speculation was 1st done with ‘gold boats’. An imaginary or real boat was coming from far away lands with a load of gold and slaves, of which the speculator ‘knew’ some important information. So he convinced people to buy shares on that boat, which could or could not show up. Next it was done with tulips. Tulip bulbs fetched the price of a house in Amsterdam, as speculators increased its value till it fade away. Why people bought tulips? The less important part of the stock–market scheme is the real value of the object. What matters is the monopoly the Market has by law to ‘invent’ real money, in the form of paper or bits of electronic data. This privilege must be applied to ‘something’. So Sephardic and Calvinist traders in Amsterdam merely used the tulip as an excuse to invent prices. One speculator said 1 guilder, another bought it back for 2 guilders, a 3rd offered 3 and so on, till the ring of speculators sold the tulip to a nobleman visiting the market and the ‘rabbit was skinned’.
But what matters is that at this point money has been created, while no real wealth – tulips have been produced. Paper money has changed hands, but at the same time there is a NEW NUMBER, a higher price for the tulip or today the oil barrel or the stock, or any other jacked up price for any STOCK OR COMMODITY.
Next to tulips, the Brits invented the ‘Tea’ scam. ‘Expert doctors’ were paid to prove the amazing curative benefits of tea, which was imported from Bengal. Bengalis were obliged to abandon rice crop and 15 million died of hunger to keep the tea scam, in the biggest massacre of the century. But the craze of tea ripped huge profits to the companies involved. Then there were the scams of gold companies from South-America that culminated with the South-Seas Bubble crash of the XIX C.
But nothing ripped so huge profits as the .com scam. Since 1973, new technologies and scarce commodities became all the craze in speculative markets, since nobody knew the real price of a ‘future’ electronic company. In commodities ‘future’ oil scarcity has been also a good ‘rabbit’ to speculate, jacking up prices, especially in age of wars (which explains why we love to have wars in the Middle East, among other causes). Those speculative oil wars make every human being pay to ‘market-makers’ a tax on their gas. Today the old speculator of tulips and slave cargoes had become a sophisticated mathematician, programming computers to invent e-money. And the tea doctor is a serious ‘scholar’ that dedicates his live to find theoretical models about the ‘risks’ of the market to justify the free invention of money.
So think tanks and ‘experts’ validated the speculative value of .com companies in the 90s, derivatives in the 2000s, oil prices in 2009, euro crash in 2010… In this manner financial and commodity markets, always controlled by a few groups, which either have more bets or create the tendency, substantially tax every commodity and good which will be latter paid by the public.
This was clearly proved in the Oil market last year, when due to speculator ‘s massive taxation of Oil, as they jacked up prices, the rest of mankind paid a tax on oil that double for a while its price.
It is now clearly proved by the massive ring of Wall Street speculators against the Euro, which in fact is the currency with less deficit of the 3 top currencies, the dollar, the yen and the euro. Japan has a debt relative to its gnp bigger than Greece, certainly much higher than the euro countries combined. The United states has a deficit higher than the Euro zone. So why the Euro plummet? Because speculators from massive hedge funds started to bet against the euro 2 months ago, and then they created the conditions of the market with a massive campaign of articles against the Euro that provoked the avalanche.
The next step was to downgrade the status of the Greek debt. This was done with utter cynicism, after the Euro governments affirmed they were going to bail out Greece. Hence at that point Greek bonds had the same quality that the European Bank that bailed them. Yet to back the bet made by their croonies at hedge funds, the Agencies of Rating downgraded Greek Bonds to Junk, provoking the sinking of the Euro; precisely when they had acquired an AAA rating backed by the entire European Community. Then they exit the bet with astounding profits, at the Fibonnaci ‘golden’ mean (1.20 eur/$), provoking the crisis of sovereign=human people’s money that will ruin all welfare states and rights to create public money=deficits, still surviving in the world.
It will be the final global crisis of the e-money era and will culminate when the Yuan becomes convertible with a self-similar speculative wave against the Dollar that would finally destroy the global economy. You ain’t seen anything yet.
Why we need Mexican bonds if we have sun microsystems run…’ business this week ‘ when in a previous cycle the Mexican peso was sunk. Now we say, why we want to create Greek hospitals if we have AIG junk cdos which during the mortgage crisis were constantly upgraded to AAA status to guarantee they would be sold.
This is possible because the Rating Agencies, Wall Street Journal news-makers and hedge funds belong to the same croony ring that decides the future of all economical indicators in advance. In turn the rest of mankind must struggle with higher prices in commodities, sunk currencies and politicians running ammok. But the control is now impossible as the speed at which computers speculate put 70% of the market in the hands of speculators and central banks can’t do anything against them UNLESS they create a fixed parity currency and end speculative taxation over all products, which amount to trillions of $ each year.
The truth is that the stock-market is a license to print money with any excuse. And stockrats know it, so they speculate with the price of companies, overvalued to stratospheric numbers to invent money and then prick the bubble, selling those shares to the rest of the world. It is a modern form of taxation that electronic money has widened, as computers now speculate day and night, buying and selling and increasing the price of all things, commodities, stocks, mortgage derivatives. Then, the speculative price is ‘sold’ to central banks, investors, wealthy individuals… and the speculator rips the benefits.
Thus, the present crisis is just the final tip of an iceberg of invented e-money that has multiplied by 10 the volume of ‘speculative money’ (growth of the dow) with worthless value. But who is the skin of the last derivative schemes of false wealth? The tax payer who is now taxed by corrupted governments to cover up for the value of the cdos tulips.
So now tax-payer money is given to financial companies for free, because the ‘People of the Treasure’, Mr. Bernanke, Mr. Trichet and Mr. Geithner convince Representatives that they are ‘too big to fail’; while millions of those tax-payers are too small to avoid foreclosures, going out of business and loosing their jobs to the computer and robotic r=evolution. All those experts win Nobel Prizes, given by the ‘experts’ of the Bank of Sweden, as Ricardo won the Prize of the British Parliament for inventing the myth of the free trade.
In that sense one of the funniest things about the GOP base voter is his belief that only the state taxes him. Wall Street taxes him twice, with price speculation and then with political corruption: 100% of the last Obama’s budget withut deficit went to 1)The bank bail outs 2)the mercenary wars in which their army fights for the country of the Am Segulllah, and debt payments. What can i sat: he believes in experts.
What is the purpose of all those trillions of invented money, during the electronic era? Was behind a plan to restructure the global economy, improve the production of scarce Human Goods, develop trade among nations, new industries and secure jobs? No, the only purpose of speculating is to create e- money, latter exchanged for real goods and increase the fortunes of speculators. Thus, huge fortunes were invented in derivatives and .com companies, latter transformed in real state assets and bank accounts, mainly hold by the bankers and ‘stockrats’ that invented the game. Of the 50 billion $ financial companies received in 2008, 18 billion $ went into compensation salaries . . .
It is in this electronic age, when managers of companies learnt to give themselves huge payments, bonus and stock options – the money earned by those companies, no longer reinvested, crippling the competitivity of the American Industry.
Thus, at the height of the mortgage bubble, we observe a growing divergence between the real economy of human beings and the financial economy of speculative bankers. It is similar to the one experienced in 1929, when at the peak of the evolution of electrochemical systems, Taylorism and automation was imposed in factories with the creation of assembly lines. Most workers were expelled from their jobs, as now they are expelled by robots and integrated software suites. So in the 20s workers without jobs couldn’t afford anymore to buy the new Fords-T that Ford, whose automated assembly lines had made them lost their jobs, was churning in his assembly lines. Today, workers who loose their jobs to robots and software suits cannot afford to pay their mortgage. Thus, the collapse of jobs and consumer’s demand, both in the 20s and 2000s, is not fictitious or financially induced, but caused by the evolution in the 20s of electromechanical machines that automated productive processes and robots and software suites in the 2000s. Those electromechanical machines were also creating bits of monetary information, as Wall Street bankers distributed tickers to middle class America. Today the evolution of robots expels workers and software creates billions of e-money in Wall Street.
Of course, in both ages, economists, paid by bankers and companies, asked at the peak of those processes of labor destruction, to further liberalize the labor market, to make easier the process of extinction of labor by robots. So today at the height of the ‘productivity process’ of extinction of labor (Max. capital=machines/Min. Labor=Max.productivity), economists ask for further liberalization of the labor market.
The excuse is the myth that productivity, the destruction of human labor by capital invested in machines, in the long term causes new employment, as a new Kondratieff cycle kicks off. Yet this no longer holds today as there are no more cycles of Evolution of machines to increase future production of new machines. The evolution of machines endswith robots and so the expulsion of labor by robots will not be met by new creation of labor in a new age of energy machines. Game over.
Only Korea and Japan, at the center of that robotic revolution, hold near full employment as the nations that export robots and unemployment to the rest of the World. And so, as the creation of speculative electronic money peaked in the 2000s, most workers were loosing their jobs, as they did in the 1930s, when the speculative bubble of electric tickers and car companies peaked. So the crashes are self-similar in 1929 and 2001.
The mimesis between the crash of 1929 and the crash of 2001 in NASDAQ is clear. When everybody had its Ford-T and RCA radio, the 29 market crashed. In the 2000s, when everybody had his camera and Pc, the III Kondratieff Crash happened. Its epicenter was the electronic stock market, NASDAQ, which in 1999 had surpassed Wall Street in annual volume, becoming the engine of invention of e-money. Did the Middle and Lower classes of humanity receive any part of that pie? Hardly . . . Since the purpose of any multiplication of speculative money is the same: to tax the financial resources of the real economy, deviating them to the speculative economy and the pockets of the financiers that run the creation of money in stocks and derivatives. So at the end of the 2000s, when the short-lived dotcom resurgence and massive creation of yens by BOJ had reached its limit, financiers invented a new ‘tulip’, derivatives in the mortgage market.
In that regard, Mr. Madoff, Mr. Fuld and the rest of financiers, who felt Masters of the Universe, are just human anecdotes of a far more complex process, the evolution of machines and money that made and destroyed them. Yet because our politicians have no idea of those cycles and believe the myths of mechanism, all the solutions they implement are just placebo actions, or what is worse, they obtain the opposite effect to what they seek – aggravating the crisis.
The next phase in that sense, will be the speculation and ruin of the currencies and welfare states, which happened also in the 20s and brought fascism to power in Europe.
Indeed, the entire financial community now massively attacks the value of currencies which sustain the human economy. Yet the destruction of the human economy, based in the welfare state and the human life-enhancing goods we consume is an aberration.
It is only ‘necessary’ to liberate even more money to invest in robotic and computer technologies and accelerate the demise of the human kind. Since machines indeed work cheaper than human beings and increase the profits of companies. And it is possible only because the economic ecosystem is not a Democracy, but a Free Market in which only companies are ‘free citizens’. We live in a ‘stockracy’, where the new aristocrats, the stockrats who control the financial systems of reproduction of money rule our corrupted political system and select the ‘authorized’ thought oneconomics. Thus, we give 200 billion $ to a few owners of AIG but our ‘authorized’ economists expect the 400 million euro people and 300 million Americans cannot invent money with deficits. Instead they will have to cut their expenses to the survival level of the ‘iron salary’ that the Economist Ricardo expected for all humans, as ‘machines keep evolving and competing with them’.
Thus we enter the 30s, the years in which first the blindness of capitalism, guided by the unlimited greed of financiers, ruined the middle classes, till the political backlash brought fascism andSocialism to power. The outcome of this earlier 30s/2010s is thus self-evident: the middle class is going to disappear, the wealthy who caused the crisis will become richer, till the social fracture sees the rise of neo-fascism in the post-Obama, post-dollar crash America. While Europeans will steadily move towards a socialist economy with quantitative easy and a soft euro to pay the welfare state, given the fact that European bankers are still sharing power with governments and the go(l)d culture is no longer dominant on that society. Europeans remember history and so, despite the present fear of a melt-down of the European economy, it is expected they will reach a balance to avoid the rise of neo-fascism, as everybody knows what happened in the 30s, when the massive absorption of capital in the post-29 crashed made Adolf Hitler the most popular politician with brutal sentences like ‘the death of the ‘Am Segullah’ will be the wealth of the Germans’. In America however, censorship of the ‘real cycles of history’ is absolute, because there has not been any change in the pyramid of social power in place since the end of the Civil War. And so the real ‘crisis’ has yet to take place to the dollar once the Yuan becomes convertible and the International Banker, the Forex speculator switches international currencies. Since in the present cycle America plays the role of Germany and China the role of America. Thus what we have seen in Greece is only the beginning. The true currency crisis will take place when the Yuan becomes convertible and the entire planet ditches the dollar as the international currency as it happened in the 1920s when it substituted the Deutsche Mark and the Pound for the dollar. Then America will suffer an age of hyper-inflation, lost of purchase power, as the trillions of dollars created by the Treasury return home, multiplying the quantity of money inside the states that will loose value; and the market panic ditches treasuries for Chinese money and bonds.
Once and again in the history of croony capitalism, rigged markets controlled by a few financial firms create the future by creating credit, by making bets. Then they will invent opinion news to ‘inform’ as experts that their bets WILL happen. And so fresh capilal follows the new Ponzi pyramid, which speculators will abandon first on the peak of speculative profits=taxes, leaving the skinned rabbit on the hands of the last to come first to loose naive believer in experts.
The euro game and the ‘future bets’ that will try to sink the dollar against the yuan are just the last of those games, which are recurrent in all the cycles: in all of them we had the stock-paper speculative bubble, the real state bubble, the commodities bubble, the currency wars and ‘the final frontier’: war profiteering. So far in this cycle we had a fair share of them all: the dotcom bubble skinnned middle America of savings with the do-youself-become-trader at home propaganda and the e-trade platforms which allowed Wall Street to skin the tulip rabbit of the 2000s; then we got the derivatives, real state scam; then the oil racket related to war speculation (Irak war). Those wars gave us the ‘fair prices’ (-: Halliburton charged to the US tax payer…
So all what is left in ‘Weimar America’, when all has been milked is the most risky game of all: sinking currencies. And the euro has been the test for the unspoken ‘future’ 1 trillion $ profit bet that will be placed when China allows free floating of the Yuan by the ‘Bloombergs’. Yet either ignorant of the basic laws of the economic ecosystem, or too aware of them, and hoping to get a good job in W.S. when its public service ends o ur ‘Treasure department’ people insist that China makes the Yuan convertible and rises its value, in a self-suicidal process that will bring in the late 2010s the decline of America as economical power, and an internal social and political crisis, seen in the past cycles, when a nation looses its top predator status, with an international currency that always has unlimited rights to invent money for free. Indeed, when Spain lost that right to Holland and the bullion plummeted in value it entered in a civil war (1640).
When France lost that status at the end of the Indian/American wars in the 1750s it soon entered into the French R=evolution. And when Germany lost that status, Hitler raised to power. Indeed, if Hitler got elected saying that if the internationall banker destroyed the European Economy it would be the ennd of his rule over europe, the continuation of the currency wars and the sining of the dollar, will be the end of Weimar America and the beinning of you know what as out major becomes the top 500 F on commissions as his ‘business’ destroys his city and the skinned rabbit all bones and hunger chases him down, biting like a mad dog anyone he finds in his hell, a world that oncee was the hope of the Wor(l)d and now is the coffin of go(l)d… Deja vu. It is for that reason that today paradoxically we must hope that Chinese politicians won’t listen to our Treasure People and never make the Yuan a capitalist currency as nobody except those blinded by greed want to see the end of Weimar America.
So what is the solution to the unfair taxes over human consumption caused by speculation? A massive reduction of the financial instruments and electronic platforms that invent those prices . In the case of currencies, an international currency, the ‘yes’ money (yen/euro/yuan/dollar) based in fixed parities with rights to deficits to create a welffare state. The G-20 group should bring again into the table the model proposed by Keynes in Bretton woods and convert the SDR+yuan in the global currency of mankind, ending the racket of speculation.
As of today, a simple 5 yuans=1 euro = 1,25 $ = 100 yens, fixed parity price by decree with a 10% of National Yes money (no longer called ‘deficit’), mandatory for all nations that peg their currency to the yes money, which represents already more than 3/4 of the global economy, would allow to create a ‘Global Deal’, a Global welfare state and a new demand for life-enhancing goods. A simple legal agreement between Obama, Hu and Mr. Europe could in this manner change the world and end the massive deviation of resources from the lower and middle classes of the humankind into the elite of speculators and company-mothers of machines, from Sun Microsystems and AIG
to Mexico and Greece… And then the creation of such welfare states would allows the building of a future world made to the image and likeness of man not the chip, as it happens today.
While in all other speculative and commodity markets a small tax like the Tobin tax would enormously reduce the number of false operations speculators make merely to ‘create’ money distorting the economy, making prices far more real and taxing properly the monopolistic players of those markets, giving back to the rest of the population part of the money they detract from the real economy.
Speculative Taxes vs. ¥€$ money
In the past, there were only direct taxes and speculation was not so extended as we didn’t have complex systems of price speculation with computer platforms. One of the most destructive consequences of the expansion of fast-calculating chips that accelerate the processes of information on planet Earth, is the overgrowth of speculative taxes in all commodities and markets, which today is higher than the taxes of governments. Further on, this taxation goes to a very reduced number of wealthy individuals, which can easily with such massive systems of creation of moneybecome instant billonaires.
Yet in a real democracy taxes would not exist as governments would cre(dit)ate, invent, create money to fund the future that their voters wish to have, producing the natural Human Goodspeople need in a demand economy.
The government would have rights to re=produce money and under a global international currency with fixed parity (the ¥€$ money: 5 American/Australian/Canadian dollar=4 euros=4 pounds=500 yens=20 yuans, printed in ‘dual’ notes with local and ¥€$ money denominations in each side), easily agreed by the dominant countries of the world economy (+75% of world gnp), and latter extended to other countries, all nations would have the right to produce a 25% of annual deficit, far less money that speculators create each year provoking inflation and taxation of all commodities.
This simple political agreement would end also the main case of global wars and holocausts (the competence between societies and social castes).
It would mean the end of human taxes. Further taxes should be implemented only against companies that produce lethal products that do not improve the human economy; monopolistic companies with huge profits that endanger our health and environment (weapon’s companies, oil companies, tobacco companies, highly pollutant companies, Tv companies that degrade the human kind into a visual neo-paleolithic, etc.)
Because nations will reduce extraordinarily their competitive fear of each other the main budgets of all nations, which is defense and the military would plummet.
And all nations would have enough money to create a welfare state, pay universal health-care and education and start the reconversion of the planet into a paradise made to the image and likeness of man.
That is a world in which politicians and economists work for the common good and evolve the Super-organism of history and mankind in a planet made to our image and likeness.
This is not the case, as we have explained ‘ad nauseam’ in this web, neither history nor economics are guided by ‘bio-historians and bio-economists’, the ideal scientists of a humanist govern, but by ‘murder’ and ‘greed’, the values of iron and go(l)d, of weapons and money, of metal and its ‘animetal’, people-castes that govern us
And for that reason, as always in this web on the duality of history as a science and as a praxis of power, we have to consider reality. And the reality is that warriors, who created armies and ‘nations with borders’ to justify those armies and bankers, who control the reproduction of money, also tax citizens to further exploit the ‘sheeple’, following their tradition of treating the human ‘bewildered herd’ as a sheeple. And at any time of Economic History that taxation reaches the maximal possible exploitation, sucks in the maximal blood of the human economy, trying to maintain the human sheeple with the minimal possible wealth to survive and fill the dwindling productive jobs left by the Machine-biased economy… As the samurais said on farmer’s taxation, ‘the peasant is like the soya seed, the last squeeze gives the best juice’. So how warriors and bankers tax mankind with their monopoly on political and financial power? Warrior castes which are always ‘direct’ in their imposition as they must show openly their power and repressive methods (police, military, jail, etc.) simply tax you directly and so everybody knows the state asks you formoney to spend in weapons and wars. In America more than 1/2 of the budget.
But as astounding as that level of taxation and useless expenditure is, the biggest taxation in our economies is made by financial monopolists (bankers and markets manipulated by financialcastes of speculators). This taxation takes essentially place by manipulation of prices upwards and downwards in all commodities and by creation of ‘derivative’ money, which is translated then into a constant inflation in all prices. Because costs of production steadily diminishes in all industries, due to the evolution of productive machines, it is easy to calculate a rough first estimate of the taxation on commodities: Sum of inflation + Sum of productivity. It means normally a taxation of around 5% of the global GNP given to a few thousand top speculative houses.
But this is only the beginning. Because as we predicted in our foundational books of biohistory, 2 decades ago, the fundamental transition at the beginning of the XXI century will happen between the US and China, as the new leading global economy of the world, after the 2008 crash that inaugurates the III Industrial R=evolution (age of robotics). The transition however will not be smooth, since one of the fundamental crashes in the change of top predator economical power is the crash of the previous international currency, which has been overeproduced with unlimited deficits for decades, and once it looses the status as international money has no use for global contracts, returns to the country looses value and provokes the collapse of national budgets and a massive evasion of capitals, reducing enormously the wealth of the nation.
The solution was anticipated in the III crashes by their key ‘economic scientists’, Marx (nationalization of the financial industries); Keynes, an international currency and Sancho (both measures, ¥€$ money and public banks with private companies whose credit creates reality according to the Ethonomical WHealth of the Human Superorganism).
The future of the Financial Crash of the $: Its political and military consequences.
In our original books we predicted the date of the crash to take place according to the Product cycle of 7-8 years (since the speculative platforms that multiply money playing with the price of stocks, currencies and real state ‘derivatives’ are a product: e-money) 7 years after the 2008 crash, providing that the Chinese liberalize their financial system.
Now those cycles provided a decade ago in http://www.futuremagazine.net and earlier in my books of bio-history, can be ‘read in the details’.
Since a science predicts the cycles of the ‘systems’ and ‘masses’ of particles – not of their ‘indistinguishable quanta’, in this case human beings. The details therefore come in as individuals follow the trends of the system and occupy the different slots of the ‘cycles’.
This means that when Obama ends his second tenure, the GOP will be elected. Since votes will be tired of ‘damned, optimist lies’ and no-solutions. Solutions do exist provided by the ‘best’ scientists of history, which prophesized the future of each cycle and were ignored, as they gave ‘human solutions’ and capitalism is an ideology of the memes of metal not of the human species; and so it never hears the human solutions.
Thus in the same way Marx, who analyzed and provided solutions to the first kondratieff crisis was ignored and had to see how 2 daughters die of hunger; in the same way Keynes, who provided solution to the second crisis, was ignored and spent most of his time with the Bloomsbury group and his dancer’s wife; Sancho, who analyzed and provided solutions to the third crisis will be ignored (it has been ignored now for 15 years). And I can assure you that Mr. Bernake, Mr. Draghi, Mr. Geithner and all the other financial economists, who have caused the crisis, will not provide solutions but more of the same – defense of the electronic platforms and the ‘freedom of financial corporations’, which will continue to absorb resources from the real economy, manipulating its prices, in this cycle, the prices of currencies.
Thus, you can expect the crisis to increase its ‘tempo’ as it happened in the 30s, with Obama, and then the electorate will choose the GOP – the party of war.
And war will increase its ‘tempo’ – Keynesian Militarism against the Arab world and china, which will be the ‘preferred solution’ to come out of the crisis and blame somebody else outside the ‘Kabala’ of financiers that have caused it.
So the financial profits will be invested in the military-industrial complex, and America will be using its deficits, paid with treasurys not for their people but to pay the profits of war corporations.
This is exactly what Great Britain and France did after the I Kondratieff Crash of the Train and Germany after the II Crash. The III Crash now has already entered in the ‘Keynesian Militarist’ phase of drones, which will lead according to the ‘imagination’ of those American industries into a terminator race with China, they hope to win.
But China will NOT respond with weapons but with financial weapons selling the treasurys that finance the war machine of America, as we anticipated long ago… And that will be the crash of the dollar, which cannot maintain its debt without China and is Asian allies buying.
Already Israel – the nation of the Masters of Wall streets and Russia, the old enemy, have sold 46% and 92% of their Treasurys this year 2011.
Then without Chinese and South-Asian demand (where Chinese are the biggest stock-holders and Fortunes), the price of bonds will spike to 6% easy – the Italian level today, when its demand has been curtailed. But nobody can bail out the fed. So that crisis will be the real beginning of III world war as the deutsche mark crash was the beginning of fascism; since the panic will move massively assets from America to Asia, as the International Banker has no nation except go(l)d.
For that, of course, it is needed to liberalize the Chinese market.
Yet US economists, unaware of those ‘bio-economical processes’ are asking China to speed up the process, which will be the starting point of the so long announced collapse of the American empire and its downslide into neofascism… Most likely during the tenure of the first ‘Tea Party President’, which will then become the ‘neofascist party’ of America, and might enter into civil war or seek a World War with the incoming power, as previous crashed economies (Germany before nazism, France before the revolution, Spain in the bullion crash), did trying to find external scapegoats to their mismanagement of the economy…
The fight beyond ‘abstract jargons’ is one of tribal nations, who control the West and East with go(l)d power.
Let us then consider the main elements of the previous landscape with the jargon of superorganisms, specifically the change of wealth from the west to the east that will ensue the end of the dollar as international exchange currency at the end of this decade. The readers should excuse the use of biological jargon, which I prefer to the ‘abstract’ sanitized jargon of economists and the political ‘incorrectness’ of the discourse, which is a blatant form of censorship in a world ran by the ‘dictatorship of bankers’, invisible people of which we cannot talk except with vague concepts such as ‘Markets’ of ‘financial industry’. Fact is we still live in ‘Tribal History’ and so the fight between the Yuan vs. the Euro and the $ is also a fight between two ‘nations’, which ‘own’ most of the financial assets of the West – the Jewish Nation (not a religion, not a race) – which has ruled for millennia the financial industry of the West – and the Chinese Nation, which has dominated except for Japan and Korea, the financial Industry of the East.
Of course, in the West, we live under the dictatorship both financial, (90% of the Central Bankers of the past decades have belong to that nation), cultural (80% of Hollywood producers) and military (we are fighting the wars of that Nation against its enemy Islam), of the Jewish Nation and so even the mention of this fact can get you those days in ‘jail’, and with the new Laws of their Senators Levin (Patriot Act II applied to Americans) and Ort (censorhip of the net) we can consider that this control has tighten now to a degree only observed during the fascist age of the 30s. On the other hand China is already a nation with no political freedom. And so in as much as the elites of both Nations – the 1% of America (of which around 60% belong to the Jewish Nation) and the political and industrial elite of China – have tightened their control over their ‘sheeple’, it is very unlikely that their confrontation is avoided. In the next graph, taken from my old webs we can see that ‘stockractic’ control over the West and the East in numbers:
Source, the Economist.
In the graph, we can see clearly that the confrontation is supranational and will be guided by the central bankers of the Jewish nation that control the West (Bernanke, Trichet->Draghi, Chancelor, Canadian and Australian central bankers) and its speculative houses, playing with the Bloomberg Platforms vs. the Chinese capital, which also is supranational. It is truth that the West has higher speculative and financial muscle, but the East will win, as the International Banker of the Jewish nations will -as it did in the 20s moving capital from Germany to America – betray the West whenever is needed to increase capital and use its firepower to its convenience.
The fact that the Governor of the Israeli central bank, which used to be head of the FMI has shredded 43% of the US treasurys this year and the biggest bond holder of the world, also of the Jewish Nation, Mr. Gross, had bet strongly (and lost, too early to do that bet) against treasurys and declares that he ‘has weeped’ – not for America but for his losses), shows the ugliest side of those confrontations – on one side a highly nationalist country, China, which will defend his nation, in the other an elite, the ‘Am Segullah’, which will seek profit, and abandon both the Western people and their own ‘sheeple’, the Jewish 99%, which needless to say could in the future as it happened in the past, be blamed of the misdeeds of his 1% elite of bankers, as it was after the crash of the Deutsche mark. This further on is something you cannot even talk about, as in the same manner in a monarchy you cannot insult the king, chosen by the grace of God, any real analysis of the Jewish Nation NOT as a victim of mankind but in Darwinian terms, as the animetal people-caste that have controlled with the memes of go(l)d, capitalism since its inception can get you even in jail. So because you cannot discuss ‘reality’, the processes will continue.
The result will be a further loss of wealth in the West as it happened when Britain and Germany lost their status as holders of the International currency after the 2 World wars, what in the poetic/biological jargon of my earlier books in the 90s i called the ‘ring of the go(l)ds’, the top predator currency with rights to massive deficit, because it is the currency of international exchange. Once China imposes its currency with a higher GDP, and hence imposes the prices of commodities worldwide, there will be a massive shift of resources to the Yuan, the dollar will loose value and the International banker will move its assets to Hong Kong – already this year overcoming London and New York in IPOs…
What happens to the 99% of hard working Jewish people and to Israel if the Americans as the Germans did change from an utter worship of their leaders to a sense of betrayal is again an absolute taboo of history (the economical causes of the holocaust), which I explained in the previous webs -but right now after getting my webs destroyed ‘twice’ in 2 months, frankly I’m not reposting. Just to state again that I am trying always to be objective to the truth, that my family has sephardim origins and that I don’t hate or love specially the Jewish nation; my only nation is the human species, and my only goal to explain the biological truth of history and economics. Let us then go on with the knots and bolts of the recurrent currency crashes, main causes of the wars that ensue each Kondratieff cycles.
To point out though that the solution to those crisis were already anticipated in the I Kondratieff crash by Marx – nationalization of the financial industry; in the II crash by Keynes, an international currency with rights to deficit for each nation of around 10-30% (I would choose personally 25%, which would allow to create indefinite welfare states, unemployment benefits and credit to companies of a sustainable economy); and by Sancho, with his concept of ¥€$ money… (the international currency made with fixed parity, 1 dollar = 1 euro = 100 Yens = 5 Yuans, by ‘decree’, adjusted then easily within a year or two with price changes in each nation. So this simple measure, which could be taken by ‘8 people’, the 4 central bankers of europe, china, japan and US and its 4 presidents would end the entire crisis with a stroke, end the dictatorship of bankers, end the holocaust cycle, end the war cycle, end unemployment, restore the welfare state, and a ‘future for mankind’). Yet at this stage I understand ‘real’ evolutionary economics and the 3 sciences of the human species, socialism (in economics), humanism (a single species in politics) and organicism (humans and the natural goods we consume as the measure of all things) are done with, and the memes of metal have imposed a selfish non human future. I am in that sense, at this stage as my predecessors Marx and Keynes were in their last days, after the failure of the International and the failure of Bretton Woods – totally cynical about the future of the species, slave of their memes of metal which lives his last generations.
So the reader will excuse me if i dont ‘cry’ more for the future. You are all going to hell but that is what you wish for. ‘Sarna con gusto no pica’. Also to apologize because in this 3rd reposting many articles were lost so I have to get them from the c.01 old web version and all links are lost and some pictures too. As I said repeatedly, the brutal indifference to truth of economists and the silence that has always involved the true sciences of economics in America (Marxists and Keynesians, now this renovation of them) makes their adventure a Sisifus cycle… Mankind though will have to deal with the consequences of denying the scientific method and the search for truth in its more important sciences (the search for cyclical patterns of events in the behavior of the species it studies to understand its future and control that future, providing changes on those events that favor the human species – that is reforming the financial system). Indeed, the 1% should know they are human and the 99% of Jewish sheeple should know that even though the ‘Goths’ (the military) kills them, the Am Segullah (their financial elites) are the cause of their murder; and so as their triad of great prophets, Moses (‘the jewish people will suffer all their life for their love of money’), Jesus (expulsion of the money-lenders for the temple of righteous Yvwh) and Marx (the solution to the Jewish question will happen when they abandon their ‘wordly’ religion, gold), they have in their own hands their destiny, joining the efforts of mankind, asking responsibilities to their elites, preventing Keynesian militarism and stopping the creation of neo-fascist laws in America, which can be turned against them in the future. Enough admonitions. Of course, nobody will listen or else the future would not be deterministic as nobody listened to Moses, Jesus and Marx.
The currency crisis: a new top predator money.
The main reason of economical chaos during the transition between Kondratieff cycles of national power, is the change of top predator currencies with unlimited rights to credit=deficits that buy for free the goods of all other nations. When the cycle ends however, money returns to the nation that originated the currency, which looses value, provoking widespread poverty and r=evolution. In the III crash, the cycle will affect America that will loose his financial power to China. In Germany, it was the cause of fascism, when International bankers avoided the loss of money, moving their funds to America, as they will probably do now, moving them to Asia. In the graph, taken from a 15 years old book (Bio-economics, bio-history), in which the top predator currency nation was called ‘Sigfrid’ for the metaphor of the ‘ring of the go(l)ds’ that it holds, we can see the enormous difference of financial value of the American market at that moment compared to all other nations. In essence nations who develop their financial economy (sigfrids) and those who develop their physical economy making the top predator machines of each economic cycle, are the wealthiest of the world. But they develop different economies. Physical economies are backed by strong banking industries (Germany, Japan) and little financial speculation. They are the inheritors of ‘warrior nations’, physical cultures that are energy-driven, masters of machines and weapons. On the other hand, those nations ruled by traders and go(l)d are more speculative, based in ‘the information of the economy’, money and have more developed financial markets. This is the case of England in the past and now America. In those nations the financial crashes are deeper. Today America has plummeted respect to the values of the previous graph as the process of loss of value of the dollar and financial crisis has started. In the right side we can see how Britain’s GNP plummeted after loosing the ring of go(l)ds (the pound) to America. China will probably take both rings, making the best machines and having the most sophisticated financial markets when the Yuan becomes convertible and its finances fully capitalist. It is a paradox in that sense that the Americans, trying to blame China from the crisis, are accelerating their demise asking them to liberalize the financial market and rise the value of the Yuan.
In each cycle of History the top predator nation with higher GNP has a top predator currency, which allows it to produce free money, just printing paper. That privilege is the highest privilege of all – the invention of free money. Moreover in most cycles of Western History this privilege was hold within each nation at the top of the wave by a group of Am Segullah Bankers, except during the 2 periods of dominance of the Greek-Roman culture, in the Iron Age and the ‘Renaissance’. Yet at the end of each cycle, a nation or civilization sinks and another rises, the GNP shifts and the Am Segullah abandon a nation with its go(l)d moving to the next nation. It is then when the country that looses the top predator currency, the ‘ring of go(l)d’ plummets in wealth.
(And often a Holocaust of the people left behind in the country that has lost the ring of go(l)d happens.)
The process of change of power also happens when a nation overcomes the GNP of other nation, because the economical transactions require more money of the new economic super-power. So as the currency of trade changes, the previous nation’s money is no longer needed and returns to the country, provoking hyper-inflation. Money looses power and poverty ensues as now it cannot be printed for free.
In most cycles of the past both processes go together. For example, the Spanish bullion crashes of the XVII century, hyperinflation and civil wars of 1640 were caused by the change of financial control from silver coins to stock-paper and from Spain to Holland. Yet Spain had a century before expelled the Am Segullah, who moved to Amsterdam and created the first companies.
Germany also lost his power as international currency in the 20s to the rising dollar. But again the Am Segullah had moved their capital at the end of I World War from Germany to New York and both causes reinforce each other.
Now we shall see probably both causes reinforcing each other as the Am Segullah has become again an ‘International banker’ moving and will be soon moving his investments to Asia.
While the economic evolution and sheer population of China makes unavoidable that China overcomes in GNP the US within the next decade. Then the US GNP will plummet, the change in global currency will happen, and the Am Segullah will abandon the US, as fascism rises, move to Australia and invest in China through Hong Kong and India, natural ally of Israel as the enemy of its Islamic neighbors. Because the US is ruled as Germany was before I world war by the International Banker, it is obvious to consider the parallelism between this end of the cycle and the previous one also from a political perspective.
Unfortunately all those processes are censored as any economic truth that goes against the ‘religion of capitalism’
For 2 decades I have warned of this cycle and asked as Keynes did for an International currency, for 2 decades I had to publish in an obscure web, http://www.futuremagazine.net and self-publish books on bio-economics. So again, the hope for reform is null, because as long as economics is not treated as a science but as religion of power,those cycles based in the simple assumption that people will do ‘anything’ for money will happen. I have long stopped thinking that most humans can evolve beyond their primary instincts of greed and murder… to make a sustainable world. So we shall consider the Deja vu experience of the future crash of the American economy, self-similar to the crash cycle of the German Economy (mark crash that caused the rise of fascism), self-similar to the crash of the French Economy (after the defeat in the Indian wars to England that substituted France as top economical nation in the XVIII century, prompted France into the r=evolution), self-similar to the crash of the Spanish bullion and civil wars… And if we look backwards in time, self-similar to the crash of the Denarium in Rome that caused the end of the Roman Empire…
In that regard, the error of the present American administration is to compare itself with the Roosevelt Administration, instead of the Weimar Republic. Since in each Kondratieff cycle the ‘exit and entry’ nations change. So today America plays the role of Germany and China plays the role of America. China is indeed in a New Deal age, implementing a massive program of peaceful investments and already some of her companies have returned to the values prior to the 2008 crash. While America is in its Weimar age, when the corruption of its International Bankers reaches its height, since the reproduction of the new form of money peaks at this stage, in the zenith of the evolution of the new type of money. Then, the Germanic middle class, whose money is absorbed in different ways to sustain the speculative pyramids, becomes ruined and amidst drenching poverty, turns towards fascism. Yet, as long as a fascist leader is not elected, there is still hope for a change of financial policies, before the ‘military solutions’ of the next decades, are implemented by Hitler in Germany, by a future president in America.
But those solutions will not come from the International Banker, since History shows, he will be as harsh with money as the military leader is with weapons, since that is his go(l)d ideology. Profit has no moral limit as long as it is technically possible. Thus the only solution to quench social unrest is a financial revolution, a reform of the system, the nationalization of the banking industry and the reform of stock-markets to help financing life-enhancing human goods. That is the only change we can believe in, the change for which Obama was elected on false promises that he has not realized – a Health care reform that would nationalize and reduce costs, as it happens in Europe; the end of the military wars in defense of Israel against Islam; the nationalization of the credit industry and its reform to back a sustainable economy; a new energy policy that would put at rest the Nuclear Menace, including the closing of the factory of Black Holes, built at CERN; and the creation of a new global monetary system of fixed parities, based in an International Yes (euro-Yuan-dollar) currency that prevents the crash of the dollar. None of this proposals are even considered in the present world, where all the industries of information, both verbal, audiovisual and financial, are controlled by the most extreme form of capitalism.
We can now update the previous graph more than a decade old. And yes, again the predictions are here, the ‘new sigfrid’ Hong Kong has climbed to the top. It is the most valuable exchange of the world, doubling the value of NYSE. Soon its assets will also combined with Shanghai overcome the value of American stocks. The world is ripe for a change of currency as soon as China decides it. In brief, the future clock of the world -surprise surprise – will not this time be set by the Am Segullah. The president of China will decide when and how the western world enters its final self-destruction… We wish as always to have been proved wrong by a r=evolution of the human kind. But the ‘lanwave of money’, man=price=object makes the system of human/life self-destruction automatic. So it will again be a question of greed and murder: when the tea party takes power and provokes china, china will sink the treasurys, get rid of its dollars and cripple the American economy… Deja vu.
The Euro Crisis, antecedent of the Dollar.
As we forecasted 2 decades ago, the XXI century will be played between the Jewish-Protestant Capitalist culture that dominates the West and the old European Empires and the raising economical power of the East, China, which will abandon its social ideals and integrate itself into the global worldstock superorganism. Since, those tribal wars between America and China that deny the laws of Eusocial evolution of History will be just a fin theatrical, anthropomorphic game that hides the only Superorganism that truly evolves today in planet Earth, the Superorganism of machines, ruled by flows of Stock-money, re=produced in corporations and evolved by technological sciences. This Superorganism, we call Matrix, is the dark horse nobody talks about that will dominate the human species, once Artificial Intelligence and Robotics displaces human workers and make our species obsolete.
In that regard we can compare the present game of 3 currencies with the previous change of top predator currency in the 1920s, also between 3 currencies: the deutschemark, the big looser, is now the first currency to destroy by speculators be the Euro; the pound who also sunk but more slowly is played now by the dollar and the winner which was then the American dollar is now played by the Yuan.
The Euro in fact is the currency with less deficit of the 3 top currencies, the dollar, the yuan and the euro. Japan has a debt relative to its gnp much bigger than Greece, certainly much higher than all european countries. The United states has a deficit higher than the Euro zone.
So why the Euro plummet? Because speculators from massive hedge funds started to bet against the euro 2 months ago, and then they created the conditions of the market with a massive campaign of articles against the Euro that provoked the avalanche. Once andagain in the history of croony capitalism, rigged markets controlled by a few financial firms, create the future by making bets, then creating news to ‘inform’ with experts that their bets WILL happen. The next step was to downgrade the status of the Greek debt.
This was done with utter cynicism, after the Euro governments affirmed they were going to bail out Greece. Hence at that point Greek bonds had the same quality that the European Bank that bailed them. Yet the Agencies of Rating downgraded Greek Bonds to Junk, provoking the sinking of the Euro; precisely when they had acquired an AAA rating backed by the entire European Community, to back the bet made by their croonies at hedge funds, which exist the bet with astounding profits, provoking what will be the 2nd global crisis of the e-money era and will culminated when the Yuan becomes convertible with a self-similar speculative wave against the Dollar that would finally destroy the global economy. You ain’t seen anything yet.
Of course, this week the theatrics have ended; the big profits have been made and so the shorts (the people who play at credit with billions of euros betting it will be going down) have closed the roulette.
They have made a few billion $, and behind they have left the corpses of 400 million europeans, which now will have renounce to their democratic right to reproduce money for their welfare state.
Each new Soros, the Einhorns, Goldmans, Cohens of the great speculative funds that work FOREX in wall street, will have a few more billions ‘taxed’ to the European citizens through their electronic platforms, so the old widows of the continent will have to move from herrings to bread and oil.
This is the deal, in the globalized age: the control through electronic platforms of e-money which allow credit of 1 to 100 (you put a dollar you speculate with 100), sink all currencies that do not obey the extreme capitalist concept that financial houses must own all the money of the world andthe rest of mankindcannot produce it. Now, all is calm in the Western Front. As we anticipated long ago, the first phase of the currency wars would be the sinking of the Euro (1920s, sinking of the Deutsche mark) by speculators, with the connivence of rating agencies and the economic press.
But you ain’t see anything yet.
The next phase, the important one, will be the change of top predator currency with unlimited deficits, as the Yuan becomes convertible and not a single speculator on planet Earth looses its chance to sell dollars and buy Yuans, to sell the past and cre(dit)ate the future, as it has always happened in previous crises. It will be the end of the American Weimar, and the beginning of neofascism, treated elsewhere in this web.