Archive for September, 2014

Building blocks of logic

September 22, 2014 Leave a comment

Just as a quick mental note to myself in relation to this article that I’ve been working on for, well, around 10 years….

1. FRB causes malinvestment in two dimensions.  It promotes overinvestment in “higher order” goods (ABCT). And it promotes Ponzi speculation in housing (Minsky).

2. Both forces combine to underprice water and land for farming.

3. The Fed has every major market manipulated so the “truth” doesn’t appear.  The truth appeared in 2008.  What did it show?  Much lower stock and house prices.  Much higher oil and commodities prices.  To suppress these price signals is to suppress investment in these industries and guarantee future undersupply – all in the name of saving the financial system.

4. If this continues we will NOT have a financial crisis.  We will have an environmental or food or water shortage crisis.  Note:  This will not cause explosive food prices.  It will cause increased food contamination and food debasement scandals.

The warning bells have been silenced.  So the alarm will go off too late.

Best quote to sum up the end game:

The hint of what comes is seen in the devastating situation in Venezuela, whose tragedy few are paying attention to. They are exporting their essential products (beans, rice, oil) in order to raise hard currency and to prevent a domestic currency collapse. The same will be done in the United States. The early example of exported essentials is of hayfeed for livestock, heading to China from US farms on a growing basis.

Categories: Miscellaneous Musings