Written by Jeff Nielson Tuesday, 18 February 2014 23:39
Since the beginning of 2014; we have been subjected to two constant themes in the propaganda of the mainstream media. One of these themes is that after “recovering” year after year after year; the U.S. economy is finally strong enough to begin the Exit Strategy which former Fed Chairman B. S. Bernanke (originally) promised us would begin early in 2009.
The other, closely related theme is the (supposed) collapse of “Emerging Market currencies”. In fact; what we have seen is the collapse of most of the world’s currencies versus the U.S. dollar. In no way can these two events be considered mere coincidence.
As explained in my last commentary; the contrived collapse of these currencies -- by financial criminals currently being investigated globally for serially rigging these same markets – is nothing more than a Reverse Beauty Contest. It is an effort to make the world’s least-attractive/most-worthless currency appear to be the world’s “strongest” currency.
With the perversion of statistics and the manipulation of our markets reaching new, absurd extremes; it becomes necessary to remind readers (and alert newer readers) of what is actually transpiring in the real world. This two-part series will establish three obvious points:
1) The U.S. economy is currently in the midst of a Greater Depression; the worst, sustained economic collapse in the history of this nation.
2) Given this collapse; the U.S. does not have one of the world’s stronger economies, but rather it has the weakest economy of any/all major nations.
3) The downward spiral in this Greater Depression is, in fact a terminal collapse. The final result of this economic devolution can only mean the transformation of the United States into essentially a “Third World nation”.
We start with the fundamental lie regarding the U.S. economy, the mythical “recovery” itself. By now; regular readers should understand that GDP (growth) is arguably the easiest of all statistics to falsify. All that is required is to first understate “inflation”, and then GDP can be exaggerated commensurately.
A simple example will explain this, for the benefit of newer readers. If (price) inflation is (hypothetically) 10% per year; then when our governments collect the raw data on economic growth, they must, roughly speaking, subtract 10% from their data. This is called the “GDP deflator”. If our governments did not subtract inflation out of the equation when they attempted to measure GDP, then they would not get a statistic which measured “economic growth”, but rather a statistic which measured economic growth plus the increase in prices.
Continuing with the hypothetical example; let’s suppose our governments now pretend that inflation is only 2%, rather than 10%. Thus when they measure GDP; they only “deflate” the data by 2% instead of 10%. And so the statistic they release which they call “GDP growth” is actually GDP growth + 8%. In fact; this hypothetical example very closely mirrors what we currently see in the U.S. economy.
Written by Jeff Nielson Friday, 14 February 2014 15:04
This commentary has a dual title, because it was impossible to give precedence to either one of these questions of paramount importance. The sequential order of these questions is governed by the fact that an affirmative answer to the first question gives rise to the second.
But such talk ‘puts the cart before the horse’. The first detail of which readers must be aware is the Reuters headline (and article) which provides the basis for these interrogatives:
Fed’s Lacker calls for new laws to end too-big-to-fail threat
Yes, we have seen/heard various banking officials and politicians occasionally muse about “doing something” about this systemic, corporate blackmail in the past. However, the strong/direct language of the title of this article was fortified with equally strong and explicit language in the text:
Calling too-big-to-fail banks “the most critical issue facing our financial system,” a top Federal Reserve official on Tuesday urged new laws to address the problem, including ending Fed emergency lending powers…
This is unprecedented, at least with respect to the last six years of saturation-fraud which has been condoned (if not actively assisted) by the same cast of banking officials and politicians. Here tone is of equal importance to substance. Note the judgmental nature of this reporting:
…new laws to end too-big-to-fail threat
…“the most critical issue facing our financial system”
This is the sort of language which regular readers are used to seeing in my own commentaries – not coming from the lips of either our (corrupt) banking regime or our (corrupt) Corporate media. Indeed, for nearly six, long years; we have seen the media, our politicians, and (of course) the Banksters themselves all referring to the abominable concept of “too big to fail” as a permanent reality, and rarely as a “threat”.
Why is tone as important as substance? Simply look at our own, recent history. Over the past six years of ambivalent weasel-talk from this same collection of Villains; what we have seen is that the weak, equivocal language of these bankers/politicians/media drones has always been accompanied by equally weak action – either no action at all, or mere window-dressing which actually perpetuates the fraud/crime.
Conversely, when we have a “top Federal Reserve official” drawing attention to “the most critical issue facing our financial system”, and that issue is described as a “threat” and a “problem”; it becomes difficult to imagine how such language could manifest itself into anything other than strong legislation – if words do indeed lead to actions.
So let us go down that road. What if (finally) the call to action which we have seen this week is matched by meaningful legislative action, including “ending Fed emergency lending powers”? Simply, it changes everything; or perhaps to put it better, it is an essential first step along a path toward purging a System of saturation fraud/corruption/crime.
Let me connect-the-dots here. To understand this line of reasoning requires understanding what “too big to fail” really represents. Here regular readers already have the answer: too-big-to-fail is literally Corporate blackmail (by the Big Bank tentacles of the One Bank). “Pay us our blackmail, or we will blow-up the global financial system.”