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What $US10 trillion buys you today

You’d think US$10 trillion would buy you a lot.  Sadly with today’s inflation it doesn’t buy much.  Yes, it might buy you half the annual economic output of the EU or the US.   Yes, it might buy you all the real estate – every square inch – of land in Australia and New Zealand (both commercial and residential).  But it doesn’t buy you peace of mind.

Proof?

US$10 trillion has been spent by central banks to resuscitate world economies and move those economies from crisis to growth.

It didn’t work.  Unemployment is still shockingly high in Europe, growth is dying everywhere (including China) and nothing – nothing – lasting has been achieved.

Oh and Greece and the whole Euro area are in existential crisis.

As I said, US$10 trillion doesn’t buy you much these days.

Next time let’s spend it on something worthwhile.  Diamond encrusted guillotines for every fractional reserve banker in the world today.  I reckon that would cost around $50 million, given the repeated use guillotines achieved in the French Revolution.  Are you telling me that’s not better value?

Categories: Predictions

Food contamination

I have been predicting economically-induced food debasement and food contamination problems throughout the Western world for at least three years, on this very blog.  Indeed, just in recent months!

And now Australia has been hit – shock horror! – with a major food contamination scare involving Hepatitis A in imported frozen berries from China.  Why?  Apparently because Chinese businesses are trying to “save money” by putting human faeces directly into soil used for growing food!  Yum YUM!

Unsurprisingly this isn’t a good idea from a food hygiene/food contamination perspective.

See here and here.

No one predicted these kinds of issues arising in Australia.  No one points out this is inevitable due to perverse incentives embedded within our current monetary and economic system.  These things apparently just “fall from the sky” as random events.

That’s complete bullshit.  I predicted them here on these pages.  There will be more scandals and crises.  It is inevitable.  It is part of the monetary system.  It is part of the perverse incentives inherent in a system that produces paper-pushers and computer desk jockeys trading paper rather than encouraging (and providing reasonable financial returns to) real people producing real stuff (like real food).

David Graeber calls this the glorification of do-nothing paper shuffling and I agree.

When you have this kind of completely screwed up monetary system there will inevitably be created more and more psycho-nerd autistic bankers on the one hand, and fewer and fewer real, caring farmers on the other.

These are economic problems with economic causes and economic solutions, not random events or problems amenable to political solutions.

Solve the money problem and you solve resource allocation problems and you solve the food crisis.  That crisis is here.  And it’s going to get much, much worse.

In the madness that is locked in to the stupidity of the mainstream, no one can hear you scream.

I know correlation isn’t causation, but do these graphs look suspiciously similar to you?

graph

fredgraph_1

Categories: Predictions

OK I admit defeat

November 3, 2014 Leave a comment

OK this insane QE is completely out of hand.

Stocks and bonds are being bought directly by central banks around the world.  The US Fed stops QE only for its colonial slave Japan to take up the task on its behalf on the day US QE ends.  This will never end.

The mainstream story is that Europe is in a slump because they didn’t try QE.  Rubbish.  Most of the “benefit” of QE flowed to European banks if you look at the numbers.

What does this mean for investors?  Well, in the short term, stocks and housing are still good bets despite insane valuations and low yields because the monetary mandarins will clearly do everything in their considerable power to prop them up.

Inequality is a major short and long term issue.  Food is a major long term issue.  Water is a major long term issue.

But who is looking at the long term?  Not me!

Categories: Predictions

There may be a God

Now that Krugman is out of Princeton perhaps the Fed will be out of the US?  Too much to hope for….

I have despised this guy for years.  Finally he’s getting the ostracism he so richly deserves.

Trust

In 5 years of watching this chart (daily) I have never – never – seen this:

Gold_Chart

What does this suggest?

First, see those tiny little movements before today?  That’s called MANIPULATION.

Second see that big jump today?   That’s called “When the ball can no longer be held under water by the biggest manipulators in the world aka the central banks.”  There’s no news that would cause the jump.  It’s just that the ball is getting too big to hold under water anymore.

I said this would happen eventually.  When trust breaks.

Sadly the Chinese don’t trust each other.  They will end up trading in gold and silver.  And their idiotic rehypothecation-ponzi-lying will (ironically) bring down the Western monetary system.  Why?  Because the West lies but only strategically on the big matters.  Small people don’t lie day to day.   So Nixon can close the gold window and people continue trusting the system for another generation.  It’s been 43 years since August 1971 when the gold window was closed.

In China everyone lies.  Big and small.  No one can be trusted.  So the game blows up much quicker in China.  That’s why to survive people will ask for gold in China.  And that’s why the game will end, even if the Chinese government and the West don’t want it to.

When (not if) China blows up what are the consequences?

March 31, 2014 Leave a comment

It’s coming.  No doubt.

But what are the consequences?

A lower $A.  A housing bust in Australia.

I’ve been waiting for the next 2008.  It’s gotta come.  With the system we have it’s inevitable every 5 years or so.  So we’re overdue.

Looks like China is going to be the “blow up” candidate this time around.

 

Ayn Rand

OK, she was a little kooky and doctrinaire, but she had insights and was a clear thinker.  To quote Ayn Rand:

When you see that in order to produce, you need to obtain permission from men
who produce nothing; when you see that money is flowing to those who deal not in
goods, but in favors; when you see that men get rich more easily by graft than
by work, and your laws no longer protect you against them, but protect them
against you, you may know that your society is doomed.

We are DOOMED.