patrick.net
An Antidote to Corporate Media
1,189,046 comments by 13,845 users - NuttBoxer, Patrick, RC2006 online now
invite responseComments 1 - 2 of 2 Search these comments
deepcgi
2016 Oct 20, 6:30pm
The mistake both parties are making is in assuming that inflation must materialize in the consumer price index to be recognized as any kind of threat to the fiat money supply.
The key to deficit spending over the past fifteen years or so has been in keeping the bail-outs a thousand miles from Main Street. Ordinary people must not be able to get the free money unless by real estate. Print as much as you need to bail out massive derivatives failures, but don't let grandma or grandma get near low interest credit of anywhere near the same scale as the international investment losers.
But the inflation is everywhere and it is massive. You are living in it. You are flipping it. It is a million dollar shack made of wood (that grows on trees by the way), on piles of dirt with no faster access to the internet, water, natural gas, or plumbing than 95 percent of the rest of the lots on the planet. In an era when no one goes out unless they have to.
You are buying paper commodities that are leveraged 250 to 1 while saying those commodities are "way over priced". You are buying equities that are so inflated that the corporations behind them couldn't actually earn that kind of money if they sustained growth at today's per dollar value over the next hundred years with zero downturns.
The inflation is monstrous and beyond comprehension. Nothing is cheap. Only short investing makes inexpensive deals possible right now, and even then I am referring to trades happening at thousands per hour.
The Great Recession was far from great. It was entirely unremarkable. The financials never got caught cheating and never paid the price. The housing market hasn't crashed yet. The tech stocks never crashed. We've had blips. That is all.
You have agreed to pay many hundreds of thousands of dollars for shacks built on sand stacked on top of hot air balloons tethered to supposedly "valuable" locations by a tether of thin fishing line.
Derivatives put at risk money worth hundreds of times the actual collateral promised in the exotic securities.
We have made ourselves weak. We produce nothing. We cannot sustain ourselves. Our culture can't even comprehend stagnant investments let alone belt tightening. We have generations who believe they are owed a retirement at 65 and a life expectancy of 95.
I can not imagine a positive outcome without earth shattering new discoveries in science, but I can hope.
Maybe it is also obvious that I don't care in the slightest who responds or whether the threads I create catch on. I am making consistent points at key times. That is all.
But inflation is not low, nor is it under control. Inflation is so massive in our time that the balloon is literally all we see in our field of vision as we stare at the horizon.
Amaranth.
Both candidates are Keynesians. They both rely on the leverage that comes from borrowing money at zero interest, creating money to cover massively toxic international debt, and inflating the money supply, equity bubbles, and consumer debt.
This house of cards is 45 years in the making at least. Both parties have encouraged everyone to continue borrowing, partying, and spending. The disease has spread to the entire world.
The world is teetering on massive debt disaster and while many financial entities may have seemed "too big to fail" in recent decades, this time the entities in peril have titles like the State of California, the Chinese shadow banking system, and many others. They are "too big to save" not "too big to fail".
The truth is, we haven't seen the crash yet. We haven't seen growth either. We've only seen inflation. Most recently, it has been the inflation of real estate, equities, financials, war machines, and most importantly, indebtedness itself.
The real melt down is coming soon. It will not matter in the slightest who you vote for.