Financial topics

[Higgenbotham]

The composited overlays will fit the cycles without much enabling Higg on this GD wave cycle.

The Fed can slosh it around and dress the Dow pig up for photo ops and headlines for awhile.

In terms of what many consider to be real money (gold) the Dow is down 80% from the cycle high. In those terms, the peak of the cycle was in 1999, but I would start first with the fact that the gold price was manipulated through the exchange traded derivatives contracts to an abnormally low price in 1999-2001. If it's measured in terms of inflation adjusted dollars, the published inflation rates are questionable but I think shadow stats is just as far off. Nothing in this cycle is truly measurable because there are no anchored or honest values. It's all measured in terms of Bernanke fun house fiat smoke and mirrors. I don't know if that's the right way to measure it.

Also the degree to which fiat debasement is acceptable probably says something about the placement within the GD cycle but there exists the confounding factor of the position on the larger cycle which can't be separated. The degree to which fiat debasement seems acceptable at this late date is one reason I believe sanity cannot be restored and we are heading into a dark age.

longtermdowgoldlogtr1800.png (57.35 KiB) Viewed 3061 times

[gerald]

"Specifically, Cyprus will impose a levy of 6.75% on deposits of less than €100,000 - the ceiling for European Union account insurance, which is now effectively gone following this case study - and 9.9% above that."

"It's something that compared to other possible outcomes, is the least onerous," Finance Minister Michalis Sarris said, adding the arrangement meant his government "avoided salary and pension cuts" for the public sector.

I think the news out of Cyprus is the canary in the coal mine that confirms this is were we are heading:

The "false flag" cyber attack will be launched after this massive crash occurs. The reason it will be is because at that point the banks will be insolvent but so will the Fed and there will be no way to bail out either. Plus the US government will be completely bankrupt to the point where "business as usual" cannot prevail. In a desperate attempt to save themselves they will attempt this "false flag" to wipe the slate clean. It won't work and that's when Washington and New York will utterly collapse and the world will then enter the new dark age.

As I've been saying repeatedly, sustainable economies and market value are not built on money and more money; they are built on solvency, profit and energy flows. Without profit, a company is worth zero. Force feeding electronic printed money into a company and calling it profit can't work. The US economy is insolvent, it does not and cannot operate at a profit, and net energy flows into the US economy are decreasing.

Cyprus got a bailout in return but when the US goes under there is no bailout possible.

A new dark age , net energy flows are decreasing into the us economy ---- hmmmmmmmmmmmmm

Reviewing ,Tesla's work, recent comments on the "Electric Universe "site regarding space tethers, the electric earth http://www.thunderbolts.info/tpod/2005/ ... rth.htmetc. and the push by others to release suppressed
knowledge, ---- that we live in a sea of energy and just need to connect into it. Knowledge that is and has been suppressed for over a century by those who wish to control, and for power, hmmmm What if you do not need the oil industry ,( except for a source of raw material for plastic) nuclear power plants, the electric grid, coal, solar power, solar panels. But have an unlimited non polluting source of cheap energy? -- A game changer? hmmmmm

[Higgenbotham]

Over the past eight months, bond yields have crept higher for the governments of the major developed countries. Recent monetary policies of the US, UK, and Germany helped subsidize the constrained spending of consumers, corporations, and countries hampered by decades of over-borrowing and over-spending. For example, Germany’s decision last year to relent to Draghi’s ECB plan of buying bonds issued by the PIIGS dramatically drove down yields in Italy, Portugal, and Spain while it caused yields in Germany to increase. Likewise, the Fed’s QE interventions helped corporate issuers of junk bonds – where bond prices have soared in recent years and yields have dropped to near record lows versus US Treasury bonds. The low LIBOR rate indicates the global “easiness” of credit. Overall, investors viewed these central bank interventions positively. However, they only magnified the global credit bubble at a huge cost to the US, UK, and Germany. A time will soon come when these costs come home to roost. When that happens, there will be no other countries left to bail out the big three industrial countries or any of the smaller groups dependent on government interventions from the big three. With yield spreads becoming unrealistically narrow, PIIGS, homebuyers, and junk bond investors will soon cease benefitting from low interest rates. When that happens, the ongoing inflation of the latest bubble will stop and the next phase of the global economic crisis will begin. With hordes on investors once again leveraged and long the market, expect a new financial crisis to erupt with a magnitude that exceeds the crisis of 2007-09.

[Higgenbotham]

We live in a sea of energy and just need to connect into it.

Distributed free energy would result in distributed political power. It won't happen until the political power structures crumble and we enter the new dark age.

[gerald]

We live in a sea of energy and just need to connect into it.

Distributed free energy would result in distributed political power. It won't happen until the political power structures crumble and we enter the new dark age.

I agree the current political power structure, as well as the knowledge structure has to crumble. Dark age maybe , messy transition --- yes.

[Higgenbotham]

In his book, The Price of Civilisation, he says the US economy is caught in a feedback loop. ''Corporate wealth translates into political power through campaign financing, corporate lobbying and the revolving door of jobs between government and industry; and political power translates into further wealth through tax cuts, deregulation and sweetheart contracts between government and industry. Wealth begets power, and power begets wealth,'' he says.

Sachs says four key sectors of US business exemplify this feedback loop and the takeover of political power in America by the ''corporatocracy''.

First is the well-known military-industrial complex...

Second is the Wall Street-Washington complex...

Third is the Big Oil-transport-military complex...Big Oil has consistently and successfully fought the intrusion of competition from non-oil energy sources, including nuclear, wind and solar power.

Fourth is the healthcare industry...

http://www.theage.com.au/business/the-f ... 2c1e2.html

I think the least messy way this can happen is that distributed energy, politics, and economics takes a solid foothold in a lesser developed area like Africa. Naturally, this would threaten the power centers outside Africa and they would try to step in and squash it, or milk it. Any success in this regard though would ease the transition post collapse by creating successful models to copy.

[Higgenbotham]

9 January 2013

One in four children in the U.S. are on food stamps as participation in the program continues to rise, according to 2011 data from the United States Department of Agriculture and U.S. Census Bureau.

A total of 19.9 million children benefited from the food supplement out of a population of 73.9 million Americans under the age of 18, the Census Bureau estimates in a new report released this week.

http://www.dailymail.co.uk/news/article ... ds-newsxml

Up to 27 percent as of 2011. I would think when the next financial crisis hits, it will be going to over 40 percent, seeing the growth that has occurred in food stamp recipients during the so-called recovery.

[aedens]

Transition to the war economy since well, we never left the welfare state economics anyway as we note the iron triangle who owns the
Executive Branch and the current pitifull things in it.
No need for ration coupons with snap. https://www.youtube.com/watch?v=FDoW8sJ ... r_embedded#!

We already forumed the methane issue and other swings and ocean ph which was rather negatively acepted.
In 1993 the water and soil reclamation projects would still stagger the human mind and they have no idea to this day.
This conveyance linked above is just the tip of the matter.

[Higgenbotham]

For example, the theory suggests that particles don't exist in a particular place at a particular time, but rather float around in a haze of probability, with a certain chance of being in point A, and another chance of being in point B. In his "Copenhagen interpretation," physicist Niels Bohr took this to mean that the physical universe is indeterminate and fundamentally probabilistic.

Yet Albert Einstein never believed this, famously saying "God does not play dice with the universe." He preferred to think that underneath it all, the universe is deterministic, meaning the future state of, say, a particle, is completely determined by its prior states. In other words, all effects have causes.

In the poll, 42 percent of respondents said Bohr's Copenhagen interpretation was their favorite interpretation of quantum mechanics — no other interpretation received more than 24 percent of the votes.

Meanwhile, 64 percent of those polled said that Einstein's view of quantum mechanics "is wrong," while 6 percent said it would "ultimately turn out to be correct." Another 12 percent said Einstein's view would "ultimately turn out to be wrong," while the same percentage said "we'll have to wait and see."

http://news.yahoo.com/physicists-disagr ... 57147.html

I think this is exactly how markets work. The cycles are deterministic within an orb and the bigger the cycle, the bigger the orb and consequent ability to use free will to manipulate it. It's become obvious Bernanke is playing with a big cycle and it's my opinion that he is attributing his ability to manipulate it to some special talent he has, while in reality it is the size and importance of the cycle which allows for the greater degree of manipulation.

There were 4 years to prepare or continue to live large and pay more later. The choice was taken under false premises and is irreversible.

[aedens]

I think we just defined the pockets they avoid and the Babcock Leighton model to also include the 12 types of radiation each year and
the actual effects called hard science. Some may include this to behavior science when they catch up. We utilize many branches in the science
tree to relate what we choose since truly a few will not care anyway. These things are real and have real effects on hard science.
I will watch these subsets and check hard data as we do since we trade money and observations. Bennny and the Inkjets have
a thought process just like any other Cult of Personality in the Generational Dynamic. I considered our construct to be somewhat ahead
of these creatures of predicated patterned avarice.