Pyramid Comment

This journal takes an alternative view on current affairs and other subjects. The approach is likely to be contentious and is arguably speculative. The content of any article is also a reminder of the status of those affairs at that date. All comments have been disabled. Any and all unsolicited or unauthorised links are absolutely disavowed.

Sunday, August 07, 2011

Financial Trick - The Illusion Of A Crisis

An illusion is always manufactured.

The financial system has been described here as a total failure. Current global debt 'crisis' provides the growing evidence that supports this contention. The concept of Virtual Money explains how a growing debt can be financed by borrowing more money from... where?

Nowhere

There isn't any actual money

The redistribution principle also explains events. The USA is regarded (by whom? - DA) as the most advanced economic system in the world, yet the US Public Debt is currently:

$14.34 trillion 

and to prevent defaulting on repayments the Budget Control Act of 2011 was (quickly) 'introduced' to enable increased 'borrowing' and offset the US debt ceiling crisis.

  • National Debt as of Jan. 15, 2009 (Mr. Bush left office):

$10.6 trillion 


  • Debt when Mr. Bush took office (2001):

$5.7 trillion
    National Debt Increase: 

    $4.9 trillion

    (Source: U.S. Treasury Dept.)

    How many Americans are aware of this? - DA

    The US simply 'borrows' more virtual money to perform the trick of pushing the debt forwards and kicking it into the never-arriving future. The big debt of today is avoided, but the debt is bigger tomorrow as a direct result. The debt never gets paid since more finance is borrowed to technically get out of debt by obtaining more credit. It's what consumers do by paying off one credit card by borrowing on another. This is frowned upon by government, yet they hypocritically do it themselves. The taxpayer isn't asked if they agree to the increased size of the yoke that government spending has created. They are expected to pay for it through increased taxes to settle a non-existent (virtual) debt.

    All governments are just different parts of the same beast, but just dressed up to only 'appear' different.


    They are NOT

    The questions that are never asked:
    1. Who is the Lender?
    2. Who gets all the interest on the debt?
    3. Why does (bad) debt get bought up?
    Well, clearly there is no loan, but the taxpayer is charged for the virtual interest on the virtual (non-existent) loan. If money can be 'created' then this is how it's done. Finance isn't actually created, just the debt. The financial crisis can be regarded as a trick to introduce (and hide - DA) the apparent 'creation' of money.

    Quantitative Easing


    Debt-creation is inflationary and causes increased (invisible and totally virtual) interest on the debt.

    The taxpayer never pays anything towards a debt mountain, of course, since there isn't one. The money is collected though through the imposition of taxes and cuts, cuts, cuts... it's all about control and fear. And the introduction of the 'necessary' cuts. And the chains. The device has been used before: the act of alleged external 'terrorism' to introduce measures that would otherwise be complete non-starters.

    Any desirable state changes can be introduced on the back of 'terrorism'. But who is the terrorist? There is always someone to point a finger at, but in reality how can anything be verified? As usual, because government says so, it'll be believed (not here - DA).

    Tottenham Fires

    The timing is to perfection. This will almost certainly be a prelude to the introduction of considerable new laws to protect London with the up-and-coming Olympic farce. Governments have choices, but the only option to choose is financial reward and growth. But growth of a population is not the growth needed or wanted. The growing population represents a growing consumer market. The equation has become unstable and has failed. The plan has gone terribly wrong. Or has it?

    The elitist society will grow and thrive in times of unprecedented modern-day violence. But who orchestrates it? The overblown consumer population or government wanting to introduce Draconian law resulting in a very British The Patriot Act or the consequences of a The Reichstag Fire? This will continue to oppress the people by turning the screws even tighter. The Olympics are a farce since the £bns invested on behalf of the British taxpayer for the perceived enjoyment of the masses for a couple of weeks in times of austerity and cuts, cuts, cuts, . What it means is less out and more in. More what? Money. Money. Money. There cannot be continued growth without a growing population of consumers to pay for it. But the more people and more automation that does not require people for manufacturing consumables then - well here we are.

    It happens with house prices. Up and up and... to a limit. Then they plateau, otherwise more would be living on the streets as property prices would be so high few who did not already have a property could afford to buy one. Many are still hostage to the debt cycle.

    With the austerity cuts (manufactured or not - DA) consumers have more perceived needs than actual needs for a comfortable life-style and many are imposing a 'cut' back of their own as a result. The consumer market is dwindling so the population growth must be advanced.

    Planet Earth swamped by
    the growing parasite

    Gluttony will destroy the planet. It's inevitable. Mix this up with individual competitiveness (selfishness) and the recipe just accelerates the end point towards destruction. Everyone dies: the paradoxical fact of life. It may well be just a bit sooner. Planet Earth will survive. That's also inevitable. Any trace of an earlier existence of 'human-type' life would be buried. Vegetation and trees would rapidly change the climate resulting in violent storms. Subduction would eventually remove surface traces of earlier life to be taken down into the cauldron of the mantle.

    The choice was made a long time ago way back in history. And it's money. Screw the people in every way. Allow and actively encourage the consuming population to grow and grow and ...
      True value doesn't change, but perceptions of value do. That Old Master painting bought and then sold for always more than originally purchased makes for a good investment. Someone will always buy it up as an investment. Capital gains tax could apply, but even if it does a high return would still be expected. The wealthy 'footballers' buy up mansions not to live in, but simply as a sound investment. Property (usually) appreciates in the longer term.