[Fouttysotlalf]

Sunday, October 02, 2011

The shadow of a hammer...






During the expansion phase...You need to power inflation greater than previous inflation...

It gets tricky understanding inflation.

Inflation requires a measurement between two points to figure out what it is doing...oh it's inflating...but how. There are generally two kinds...inflation greater than previous inflation and inflation less than previous inflation.

Inflation greater than previous inflation to maximum potential is the one you all generally call inflation...it's the one that everyone loves...because it's positive.

Then there is inflation less than previous inflation...a term called deflation was invented to describe the observation of this form of inflation...it's the one everyone fears because it's negative.

Of course depending upon what is deflating...The deflation of the witch at the end of The Wizard of OZ...that's an example of deflation that people that fear witches love.

Now losing money.

In a credit system...a consumer uses their current income which is previously created out of thin air money or an asset inflated in value by previously created out of thin air money as collateral backing their request for a commercial bank to create new money out of thin air.

Basically due to the attachment of interest, a yield or growth rate to money...It generally inflates greater than previous inflation to maximum potential...attachment of a demand to grow will generally cause something that is capable of growing...to grow.

When a consumer requests money to be created out of thin air and loaned to them...they are making money...but when a consumer pays the loan back they are causing money to return to where it came from...and they are losing money.

So during the inflation greater than previous inflation to maximum potential phase of the cycle it's he that obtains the most money that wins the game.

But once maximum potential is reached and it becomes impossible to sustain inflation greater than previous inflation any longer...inflation greater than previous inflation transforms into inflation less than previous inflation to maximum potential.

Or deflation.

Then it becomes he who loses the least money that wins the game.

And since the positive phase has been sustained so long you all generally have zero concept of how the fantasy you all call reality will operate past the point where inflation to maximum potential transforms into deflation to maximum potential.

The further past the point we travel the harder it will become to make money the way you have during the roaring 6 decades.

Many people that could have lived died because they didn't chop off their leg when they should have.

In the inflationary phase consumers are basically forced to request more and more and more new money to be created out of thin air but once the maximum potential is reached...consumers are forced to request less and less and less new money to be created out of thin air.

Yield rates were rising until the early 1980's...consumers were basically forced to request ever greater amounts of new money creation...until maximum potential was reached and they were then forced to request less and less until now.

Which causes a greater demand for growth of 100 Dollars...a 20% yield rate or a 1%?

OMG...The past 30 years you all thought something different was happening.

Well now growth rates are so low that there isn't enough inflation greater than previous inflation to keep the system from inflating less than previous inflation...or collapsing.

The top lives off the yield from the bottom...the roof or top of the structure is supported by the bottom or foundation of the structure.

If the bottom can't support the top...the structure collapses.

Oh I get it you all think you support those below...

You think the top or roof supports the foundation of the structure...well I guess in your mind where LAW that governs the Universe does not apply you could imagine such.

The bottom produces everything and the top monetizes it...They then mark up everything and sell it back to the bottom to get their money back.

The top owns the money system...it and all the money belongs to them...it's their money that monetizes the wholesale production operation...not yours...all the money in circulation does not belong to any of you...You just think it does.

The difference between the wholesale cost and the retail price is the yield the top lives off of...well then how does the bottom make up the difference?

By supplying the top with more than the top gives...forever...Until the bottom can't supply the top with the yield they demand.

Then poof...The goose that lays the golden eggs...dies

So then when the top inputs money to the bottom and the output by the bottom is less than the input. The top has to stop doing that or they will not make any money...they will just continue to lose money.

What you think? the FED is going to print money forever?

The bottom produces everything and the top prints money to buy it wholesale and then marks it up and sells it to the bottom retail...and it's up to the bottom to pay the difference between the wholesale cost and the retail price to supply the top with the yield they demand.

And if you all can't.

Then you are going to have to be fired and replaced with more productive workers.

You were fired over the past few decades and Chinese workers were hired...but now they can't even support the top supports the bottom delusion you all depend upon.

I have no idea when the real yucky mindblowing soul destroying stuff is going to begin having an impact...but as long as you have a few years of existence left...you will see the day.

As far as I can tell we are a long ways from the actual bottom where the milking operation reaches its maximum potential and the shorting method of extraction of yield from the dying USA and world system is still an effective way to make money.

If that is what turns your crank.

The bottom supplies the top.

Stocks will storm back if the bottom can support the ability for the top to cover. The bottom is the leverage the top use to increase the value of their assets.

Master what is my purpose? Your purpose is to slave till the day you die making me rich...

The top lives off the yield from the speculators.

There's two kinds...aggressive...Those that are personally involved...they are a minority...then there are the passive...they supply the agressive speculators.

The top does all the buying and selling...the bottom follows along and speculates.

The top is following a plan...the bottom is trying to figure it out.

The top must keep the bottom in the dark.

The top can see the bottom's demand.

The bottom supply the top with everything wholesale...the top then mark everything up and supply it to the bottom retail.

Eliminate the ability for banks to inflate the money supply to make up the difference between the wholesale cost and retail price...and the economy can't grow.

It's why the world basically went nowhere for centuries...it's why the primary method of travel was riding around on the back of an animal or pulled around in cart by an animal for 1000's and 1000's of years until the 20th century.

Consumers use their current income which is composed of previously created money which is debt or an asset inflated in price by previously created money which is debt as collateral backing their request for a commercial bank to create new money which is debt.

Operating expenses are composed of previously created money which is debt and profit or yield is composed of newly created debt.

Within a constantly growing or yielding system...Once the bottom reaches their maximum potential to sustain the expansion...contraction follows. The roaring 6 decades was the greatest boom in the history of the 600 year old credit system...The past 6 decades was a massive blow off.

So in order to sustain this...the bottom has to supply the power that is required to sustain perpetual blow off.

Due to the construction of the system...that is impossible.

The top is the rider and the bottom is the horse...for the past six decades the top has been whipping the bottom...demanding more yield a year...faster...faster...faster...

Until the horse became exhausted slowed and finally stopped. Now the top is basically whipping it to death.

That's Greece

Eventually it will be those higher in the hierarchy.

Eventually there will be nowhere to put what you perceive to be money to acquire a positive yield.

Unless you short sell your countrymen and country to oblivion...like those higher in the hierarchy in Greece did.

You think Obama gives a rat's ass about any of you?

They are all using insider information to short sell you all to oblivion.

They are the first class ticket holders on the Titanic...