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International Commentary

The West’s Slow-Motion Collapse

Articles & Blogs - International Commentary

Many analysts outside the mainstream herd have been making dire predictions about the collapse of the economies of the Western bloc for the past several years, myself included. Those predictions have not come to pass. Does this mean that we were wrong, or at best woefully premature in our thinking? Simply, no.

Analysis (and prediction) is based upon the rational assessment of data. It is (or at least is supposed to be) a purely logical extrapolation based upon existing trends and parameters. Part of this “rational assessment” is the presumption that the various actors and authorities in our markets and economies will respond to these trends and parameters in a rational manner.

This is not merely a reasonable basis for engaging in analysis, it is the only basis. The only option to expecting rational behavior from these various participants would be to expect irrational/arbitrary behavior. However, by definition, irrational/arbitrary behavior is unpredictable. Thus such an approach is no longer “analysis” at all. It devolves into a mere guessing-game.

So we expect rational behavior and rational responses to various economic/market stimuli because we have no other choice, and when we don’t see such behavior this inevitably skews all analysis based on such rational expectations. What is important to note, however, is that irrational/arbitrary behavior (and thinking) does not invalidate such rational assessments and predictions – at least not those based upon Big Picture trends/parameters – it merely alters the time-horizon.

These Big Picture trends are the economic equivalent of the proverbial “irresistible force”, because boiled-down, they are nothing but manifestations of simple arithmetic. Any nation which chooses the (suicidal) economic policy of permanent deficits will default on its debts; it’s just simple arithmetic (i.e. compounding interest on that debt). Any nation which allows its money-printing to spiral higher will produce hyperinflation, it’s just simple arithmetic (if you keep adding water to the lemonade, you will dilute the lemonade).

The purpose of this piece is thus not to defend (no-brainer) predictions which must come true, just as certainly as “2 + 2” will always equal four. Rather, the purpose of this piece is to identify the factors which have prevented these predictions from being validated (so far), and to alert readers to the grave danger of assuming that this slow-motion collapse of Western economies will continue at the same rate.

If there is one thing we have learned with our Wonderland Matrix, it is that the puppet-masters of the One Bank are seemingly “masters of illusion.” But such a conclusion gives these bankers (and their servants in government and the media) far too much credit.

Framed more negatively; we have populations of Sheep across the Western world who have been rendered so myopic through the saturation brainwashing of Western media that they would not “see” a brick wall directly in front of their own eyes – unless/until they were first told to look for it. The proof is in the numbers, the numbers from the real world.

It would be impossible for any of the Sheep to believe the lies of “jobs, jobs, jobs” in the U.S. economy, if they simply saw with their own eyes that there are less people working in the U.S. economy each month.

It would be impossible for any of the Sheep to believe the lies that “inflation is too low”, if they simply saw with their own eyes the hyperinflationary spiral of U.S. money-printing (and money-printing across the Western world).

 

The ‘Recovery’ of Greece: Fraud and Fiction

Articles & Blogs - International Commentary

Roughly 2 ¼ centuries ago, a member of the French aristocracy (Marie Antoinette) was reputedly quoted as saying “let them eat cake”, as her naïve response to the plight of starving, French peasants (shortly before the French Revolution).

Historians now cast doubt as to whether this line was ever uttered by her, and it’s quite possible it was merely attributed to her as a means of attacking her reputation. However, the allegory itself has survived. Why? Because whether or not this anecdote is authentic; the symbol is an eternal one: elitist Oligarchs dwelling in their ivory towers, so totally out of touch with ordinary people (and reality) that their perspective on the real world is naïve and/or absurd.

In the 21st century, we see that this same Ivory Tower remains intact, and is currently situated at the headquarters of Bloomberg News. Do the drones who work for this den of elitism prescribe “eating cake” to feed the 100+ million unemployed across the Western world, or to mitigate the 50+% collapse in the standard of living of ordinary people in the West?

No. Bloomberg’s callous elitism is much more corporate in nature, and demonstrated in stark/absurd terms, in its piece of Marie Antoinette “journalism” from March 27th:

Greece Is Pulling Off an Amazing Recovery

Of what “recovery” does Bloomberg speak? Did Greece’s corrupt coalition government find any jobs for the 27% of the Greek population “officially” unemployed (real unemployment is closer to 50%)? Of course not. The Traitor Governments of the West don’t “create jobs” – they only destroy them.

So what is this “amazing recovery”? Bloomberg is so overjoyed it doesn’t keep readers in suspense for long. It reveals this “remarkable story” in its sub-title:

Greece Can Afford To Borrow Again

Anyone who hasn’t spent the past five years journeying on distant planets understands that Greece’s economy was just destroyed – utterly – as it went through a messy (and deliberately induced) debt-default. Now with Greece’s economy still in a state of utter ruin, the bankers want us to applaud the fact that they (and Greece’s Traitor Government) are about to start piling new debts on a population which cannot even currently feed itself.

This is not like Marie Antoinette saying to the people of France “let them eat cake.” Its bankers and politicians saying to the people of Greece “let them eat poison” (just as they are now doing with their new victims in Ukraine). But beyond the absurd/outrageous theme of this piece of elitist nonsense; in trying to create the myth of an “amazing recovery”, Bloomberg and the bankers have done nothing but inadvertently reveal their own culpability (and fraud) in the original destruction of Greece’s economy.

It’s all in the numbers:

 

   

Corporations Hunt For New Slave Labour

Articles & Blogs - International Commentary

In 2014; we now see the next chapter in the economic nightmare known as “globalization” unfolding before us. Regular readers will be familiar with the first chapter of globalization.

Western governments were told (by their Corporate masters) to erase all of their borders, but only for the benefit of the large corporations which are the “fronts” for Western Oligarchs. This allowed the Oligarchs to shut-down most of their high-wage factories in the Western world, and shift their operations to wherever they could find the cheapest slave-labour – and the most-compliant governments.

Indeed, in 2014 these Oligarchs are now so smug and confident of the success of their agenda that they have the audacity to divulge it publicly:

Obama Seeks Trade Deals Sought by Biggest U.S. Companies

That Bloomberg headline tells us two things. First it confirms the summary of their agenda, laid out in the preceding paragraph. Secondly, it makes it unequivocally clear who is the Puppet, and who is the Puppet-Master.

As we all know; the original destination-of-choice for these 21st century Slave Masters was China, and to a lesser extent, India. Here readers need to understand that there was a dual motive at work, not merely a quest for massive/easy corporate profits. The second, equally-important facet of this scheme was the global destruction of wages – beginning in the Western world.

This wasn’t simply desired by the Oligarchs (and the Oligarch-cabal known as “the One Bank”), it was necessary. The destruction of wages brought on by globalization (and the Greater Depression it triggered in the West) produced powerful deflationary pressures, to counter the hyperinflationary upward pressure produced from their insane/extreme money-printing.

Thus we see the dichotomy in the world economy of generally soaring prices for raw materials/commodities (reflecting the hyperinflationary money-printing) and flat or even falling prices for finished goods, produced by the slave-labour. The Liars in our governments then “calculate inflation” by deleting the soaring prices of commodities (notably food items) from their “basket of goods”, and only including the moderate prices of manufactured products. They then have the audacity to tell their (unemployed) Western victims, via the Corporate media, that “inflation is too low.”

Clearly inflation is not “too low” for the ¾ of a billion people in the Western world who have seen their standard of living collapse by more than 50%, thanks to the Oligarchs’ “globalization”. How far back can we date this scheme to destroy-wages-to-hide-inflation? Fortunately, the foot soldiers of the Oligarchs (who are generally not very bright) have a bad habit of blurting out their secrets.

In the gold market, we have the example of Jeffrey Christian. At the worst possible time/place (the middle of a CFTC hearing); Christian blurted out that the Bullion Banks’ paper-called-gold market was one hundred times larger than the actual market for (real) gold.

In other words; for every one ounce of gold which trades in global markets, the bankers have (fraudulently) created “100 ounces” of paper masquerading as gold. This operates as a massive price-suppression mechanism, in two ways. First, this ocean of paper dilutes actual gold investment by a factor of one hundred. Second,  by trading/holding vast quantities of this fantasy-paper between themselves; it allows the bankers to dictate (i.e. manipulate) prices. A very inconvenient Truth.

   

The West’s Debt-Bomb

Articles & Blogs - International Commentary

In the news today; we saw the Corporate media engage in a typically Machiavellian attempt to present the West’s “debt problem”. It did this by first hiding the explosion of Western debt within the total growth of overall global debt.

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession…

This was followed by a convoluted presentation of “creative statistics” (i.e. gibberish numbers, which mean nothing), cobbled together to present the following message: things were pretty bad with Western governments back when the Crash of ’08 took place, but “we’re much better now, thanks.”

With the United States being the apex of this propaganda, the Corporate media (as usual) made particular effort to “explain” how much stronger the U.S. economy was now versus then. In other words, the picture in the U.S. was a particularly extreme perversion of reality.

Below, we see Step 1 in going from that media fantasy-world to the real world; our official numbers on GDP and debt for the Anglo banking “Axis of Evil”

______________GDP_____DEBT_(2007)_____GDP_____DEBT_(2014)____

Canada               $1.56T          $516B*                    $1.82T          $676B*

United States     $13.3T          $8.5T*                     $15.7T          $17.4T*

UK                      $2.44T          $500B*                    $2.44T          $1.28T*

(* - excludes state/provincial debts and other liabilities)

Because the numbers above for the U.S. and Canada require a considerable, additional amount of translation; let us first look at the UK numbers – where the picture is (somewhat) clear. No change in GDP between 2007 and 2014, while total debt exploded to more than 250% of its previous level. But even these numbers understate the horrific debt-bomb constructed by the UK government over the past seven years, as we’ll see when we examine the doctored numbers for Canada and the U.S.

Relative to the UK; things look pretty good in Canada, until one pokes their finger through that phony façade of health. The first point to note is that Stephen Harper and his Conservative government inherited the strongest economy in the Western world, with a high rate of growth, huge trade surplus, and the only budget surplus of any major Western economy. Thus it took considerable sabotage just to reverse all that positive momentum.

However, much of the improvements in  Canada’s debt picture at the federal level had come through reduced transfer payments to the provinces from the federal government. This made balancing the books difficult (for the provinces) when Canada’s economy was strong and healthy. Since Stephen Harper’s “reign of error” began in 2007 and destroyed this economy, it has become totally impossible.

Total provincial debt has exploded to approximately $550 billion for Canada’s provinces, taking total Canadian debt to over $1.2 trillion. This is nearly as large as the total (official) debt of the UK, which has a considerably larger economy, and almost doubles Canada’s debt-to-GDP ratio.

   

IMF: Wealth Inequality Harms Economies

Articles & Blogs - International Commentary

For the past three decades; we have been subjected to the mythology that when the Rich get richer “it’s good for the economy”. This mythology has been debunked in several of my own previous commentaries, most notably The Pareto Threshold.

In that piece; it was explained that wealth-inequality was not merely “harmful” to economies, but rather when it becomes too extreme it literally destroys economies. This is all just simple arithmetic/economics. Proof of this principle requires nothing more than simply visualizing an inverted “wealth pyramid” – where a small number of people at the top hold all the wealth, and the masses hold nothing.

Obviously such an economic phenomenon is the literal representation of “instability”, reflecting a hollowed-out economy which cannot possibly survive. Conversely, elementary economic theory (i.e. the “marginal propensity to consume”) proves that an economy must be healthier/more robust if most of the wealth is held by most of the people.

Now the International Monetary Fund, one of the central institutions of the Western banking empire, has come out and stated the obvious. Nations with higher wealth-inequality consistently exhibit poorer economic performance than nations with less inequality. We have had empirical proof of this for decades.

Year after year, decade after decade; the Scandinavian nations of northern Europe, with centralist governments and economic policies, consistently rank at the top of all international surveys of “quality of life”. Many in the mainstream media (and the Right-Wing media, in particular) mistakenly label these governments as being “socialist”. However this cannot possibly be true.

It is these same banking institutions and “right-wing think-tanks” which tell us all the time that socialism destroys economies. However, the centralist governments of Northern Europe also rank at the top of all international surveys on prosperity. The societies with the least wealth-inequality in the West are also its strongest economies.

While the “more capitalist” nations in the West (dominated by Western banking) all have debt-to-GDP ratios approaching 100% or worse; these Scandinavian nations have debt-to-GDP ratios of 25% or less. Surely the right-wingers at Fox “News” don’t want to assert that all of the best-managed (and most-prosperous) economies in the Western world are “socialist”?

Why is a commentator who generally specializes in “precious metals” even covering the subject of wealth-inequality? The glib answer would be that I first spotted this news at Kitco Gold. The more thoughtful answer is that it provides us with yet more illumination on our Lemming Economies.

Wealth inequality is bad for economies. Too much wealth-inequality is fatal for an economy. Wealth-inequality in (most) Western societies is at the worst extreme in history, and continues to get worse by the day. Conclusion: all these Lemming Economies will soon go “kaboom”, and so we hold gold/silver in anticipation of this collapse.

What makes analysis of wealth-inequality so productive is that it tells us why our economies are about to go “kaboom” (contrary to the daily mythology from the Corporate media). It also tells us how to prevent our economies from going  “kaboom” (assuming anyone in our Traitor Governments still care).

   

Falling Emerging Market Currencies Prove Dollar-Fraud

Articles & Blogs - International Commentary

Since roughly the beginning of this year; we have witnessed what is being characterized by the Corporate media as “the worst selloff in emerging-market currencies in five years”. This comes several months after our authorities began a (supposed) investigation into the serial rigging of currency prices in global FX markets by various tentacles of the One Bank.

Only the most naïve or obtuse of readers would not immediately suspect that we are witnessing yet another, monstrous financial crime by this rapacious crime syndicate. It is thus both ironic and amusing that as the mainstream propaganda attempts to pervert and conceal what is really occurring here that it inadvertently described what is taking place, in this Bloomberg headline:

Contagion Spreads in Emerging Markets as Crises Grow

Of course the “contagion” (or disease) which Bloomberg refers to is none other than the One Bank, itself. Simply and literally, this financial cancer destroys everything it touches, as part of an overall campaign to suck-out all of the world’s wealth.

How do we prove the One Bank’s guilt in this crime? The same way we prove guilt with any other crime: means, motive, and opportunity. Both “means” and “opportunity” are very obvious here; given that we are dealing with a financial monopoly which literally controls and operates all these markets. However; it is worthwhile to explicitly delve into the One Bank’s means for perpetrating these financial crimes – as it also epitomizes why smashing this crime syndicate is the primary imperative of our era.

Let me first revisit the Swiss research which defines the One Bank, itself:

In detail, nearly 4/10 of the control over the economic value of [all transnational corporations] in the world is held, via a complicated web of ownership relations by  a group of 147 TNCs in the core, which has almost full control over itself…an economic “super-entity”…3/4 of the core are financial intermediaries.

Obviously when the Swiss academics refer to 40% “control” of all of the world’s “transnational corporations”, they are not talking about minority-interests of all these corporations, but rather 100% control being exerted over 40% of all the world’s largest corporations. Thus when the Swiss academics refer to a “super-entity” what they are really describing is a corporate monopoly so enormous in size/scope that it makes Microsoft or Google look like corner grocery-stores in comparison.

More specifically; with the research indicating that 75% of this Mega-Monopoly is composed of “financial intermediaries”; we are clearly dealing with (primarily) a Financial Monopoly. Here; the research does name names:  JPMorgan Chase & Co, Goldman Sachs, Bear Stearns, Lehman Brothers, T.Rowe Price, UBS AG, Barclays PLG, Merrill Lynch, Citigroup, Deutsche Bank AG, Morgan Stanley, Prudential Financial, Franklin Resources, Credit Suisse, Commerzbank AG, and Bank of America. These are merely some of the One Bank’s 147 tentacles, and obviously some of these tentacles have since been cannibalized.

   

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