We have Reached Maxium Borrowing Potential
October 5, 2008 – 11:27 pmThe mass social engineering is designed so that the next installed puppet will have the benefit of blaming the previously installed puppet for all the wonderful austerity measures the US public will have to accept.
It’s all over…the top takes effects that the bottom is being exposed to and then says they are causes and because the bottom has no real ability to think…Accepts the lie as truth.
The USA has been hyperinflating for 64 years…It’s just been hidden with accounting tricks…Yes that’s 51 Trillion Dollars…because the USA like all countries on Earth has a credit system…the money supply of 51 trillion dollars is also the total debt that everyone owes.
And every country on Earth basically has a doomsday spike like the below.
The daily growth rate of that green line that hyperinflationists need to keep going up faster and faster forever? Slowed by 42.6% from the end of 2007 to now.
The largest slowdown of the daily growth rate of the US money supply in 62 years
Yes a sure sign that the hyperinflation of the world the past 64 years is on track.
The only hyperinflation I see is if producers cut production quicker than demand..until that doesn’t work and the strongest cave in…In the case of gold…The production is already insignificant.
All gold needs is an increase in demand…Nothing significant can be done on the production end.
But huge spikes up and down will make it so that nobody can accurately value gold so only dealers short of supply and speculators gaming it will be playing with it…
At some point that will just shut the market down.
Tighter financial regulation would have just accelerated the implosion to this point sooner.
All these morons haven’t the foggiest clue what the cause of this is…it’s not about regulations.
Wait until India begins imploding as the inflow of consumer debt inflation from the rest of the world dries up…then they will be bawling too.
The banks have an unlimited ability to create credit…Unfortunately consumers have a finite ability to request the commercial banks to manufacture and service it…
All the money pumped in the markets today is not going to fill in the hole left by the consumers who have for the past year become more and more exhausted…it’s to keep the banks from collapsing due to the drop in inflation the consumers are no longer supplying to the bank to keep them inflated.
It’s too funny…it’s the workers/consumers which power the banks…but you morons think it’s the other way around…
The banks are not “lending” because consumers have borrowed all they can and are “unwilling” or “unable” to borrow any more…
The top lives off the yield from the bottom…Until of course the bottom can’t or refuses to continue servicing it.
Then all the people holding you up…let go and you all fall down.
The real estate sector and markets and bankings system collapses once the hyperinflation reaches maximum potential…not before…
Hyperinflation is the investment the top got you all to BUY AND HOLD onto…
Certainly things inflate better if you are all brainwashed into thinking inflation is the bet to place all your chips on…Because if deflation was the bet you all put your chips on…the system would implode.
Ben said he would print money in 2002 so that all you morons would think hyperinflation was a done deal…and you all believed it…and when the consumers of the USA caould no longer sustain power to the hyperinflation salvation delusion…it shattered.
They are all singing the same tune…
The Wall Street corruption/toxic debt/deregulation is not the cause…those are effects…
The top take effects and market them as the cause to the mass of braindead morons and you all lap it up.
The cause is the attachment of interest to the medium of exchange…which basically forces all below to request the commercial banking system to manufacture more and more new money.
Until the bottom reaches their maximum potential to request the commercial banking system to manufacture more new money…then the system implodes.
All the effects are then marketed to the public as the cause and and since they are oblivious drones are forced to accept the official fable as truth…
At this point you are all just a massive pile of oblivious puppets.
It’s easy to find who the pretenders are…when you tell a whole bunch of people that they are oblivious drones…the ones that bawl the loudest are the the ones who have been outed.
In 1990 Japan collapsed…and since then all the Japanese car producers have been subsidized by the Bank of Japan with 1% loans..Japan has made emission standards so high that almost no car can pass after 5 years…
The Japanese devalued the yen so that US consumers would buy Japanese imports…
Japan has been on US consumer Life support for 18 years…
It’s so funny…Somehow the population has been socially engineered to destroy America by worshiping Japan…
Really Americans spit on their own country…
Everytime a US consumer buys an Import…They are slowly committing economic suicide.
Cry and moan all you want.
There is no salvation coming…The just think positive ignore the negative religion strikes again…
The system will at some point implode way past the Great Depression…
This excitement will transform into terror when you all forced to wake up from the daydream into the nightmare.
All the pumping is just short term loans that have to be paid back…90 day loans…
Reguardless the cause of all this is the inability of the US consumer to continue requesting the commercial banks to manufacture new money…it works like this…
In 2007 US consumers were requesting commercial banks to manufacture 12 Billion dollars a day of new money.
Bank prime average this time last year was 8% roughly.
What was the discount window rate at that time? 5.5%
Borrow short term at 5.5% and then sell to consumers long term at 8%
The FED is not pumping…consumers are requesting.
But the discount window was only overnight back in 2007 and then the rules were changed…now it’s been extended to 90 days because consumers have become exhausted and can no longer request commercial banks to manufacture 12 Billion a day like in 2007…now they can only on average request 6.99 Billion dollars a day…
A shortfall of 5 billion dollars a day…meaning the banks are borrowing from the FED just to sustain operations…
Because the consumer can’t…The 42% slowdown in the daily growth rate of the money supply/total debt of the USA is the largest in 62 years.
It’s like this…you are running a business that costs 1000-1200 dollars a day to operate but the customers are only spending 700 dollars a day to support it…and you decide to borrow the difference you need to keep from having to go bankrupt for 90 days in the hope that everything is going to turn around in that time.
And in order to do that…borrowing from the FED…all these banks and financial institutions need collateral…assets…
Without consumers willing and able to service greater and greater amounts of debt…like they have been doing the past 64 years…it’s game over.
The bottom supports the top….the top does not support the bottom at all…and when the bottom reaches the maximum potential to support the top…game over.
There’s the rider…top and the horse bottom…and the rider whips the horse over and over trying to get the horse to ride straight up faster and faster…but the horse is exhausted won’t move and eventually drops dead from the whippings…
The rider then runs to congress and demands they change the regulations making it illegal for exhausted horses to refuse to do what the master wants them to do.
Problem solved…
At some point they will have to shut everything down…
Stages of a compounding interest commercial banking system.
Stage 1
Inflation of debt and the destruction of savings
Stage 2
Deflation of debt and the destruction of equity
Stage 3
Bankruptcy of the banks, collapse of the economy/division of labor, and the consolidation of power.
Attaching interest to the medium of exchange bacially forces the population to request more and more new money to be manufactured by the commercial banking system until maximum potential is reached…then the population either can’t or refuses to request more new money to be manufactured and the system cannibalizes itself and implodes.
There are 1000’s of banks in the USA that are going to implode…
The FED is pumping?…Like your heart pumps when you are bleeding to death…
source: http://hypertiger.blogspot.com/
