The Sixth Law of War Time Currency Expansion Trumps the Fifth Law


The Sixth Law of War Time Currency Expansion Trumps the Fifth Law
04-01-12 - revised 04-02-12 & 04-06-12
mpg

Charles Biderman: The Problem with Rigged Markets
Must Listen AudioVid - Alt - (YuTbAudio - 36min11sec - March 30, 2012) - Source:  ChrisMartensondotcom - Related: Transcript - Related: DwnLdMp3 -- A quote...."Even Wile E. Coyote had to come back down to earth sooner or later", says Charles Biderman, founder of TrimTabs Investment Research. In his opinion, the prices of stocks and bonds - enabled by excessive financialization of our economy and central bank money printing - have been defying gravity for a dangerously long time."

Keep in mind folks, the market will NEVER be "un-rigged", Bernie and his boys will NEVER unwind their positions.  The market will always be increasingly rigged, all positions will always be levered upwards, there will always be less visibility and ever increasing policies of mark to fantasy.

Think of the Keynesian counter-cyclical theory.  During "bad" times the Fed was supposed to step up and monetarily stimulate while the Government would step up and fiscally stimulate. During "good" times both the Fed and the Government were supposed to ease off the monetary and fiscal accelerators.  Have they ever done so? Really?"  Besides Volker's interest rate squeeze?  (They'll never be able to do that again, not voluntarily anyway)

The "Virtual Economy" is here to stay until.... 1)  Voluntary deleveraging occurs (unlikely) - or 2) There is a final crash and they're forced to start all over again.

All they've done so far is blow a bigger bubble with US government guarantees (i.e. the risk, or debt if you prefer was MASSIVELY increased and than transferred to the sovereign or its many GSEs (government supported entities) such as Fannie Freddie the FDIC etc, while the parasites also looted Social Security, Medicare, and other programs).  They than transferred this paper "wealth" to the "market" as an asset bubble through various conduits, direct manipulations, and very importantly, a fall in the dollar which artificially inflated corporate "profits".  [01] And while the dollar was being destroyed, it devalued what little the ninety-nine percent had saved.

Now the US-NRE's one percent are in the final process of transferring eighty to ninety percent of this paper  "wealth" over to the "one percent" through stock buy-backs and Bernie's manipulation to inflate the "markets" while the insiders (the one percent) sell into it....and sell to the suckers, no, not the retail investors, they don't have any money left -- No, the suckers are the pension plans and sovereign wealth funds.

Keep in mind the Euro, from 2002 at $0.80, steadily rose to its all time high in mid 2008 of a $1.55.  It's still hovering around an average of a $1.40 due to Bernie's strenuous efforts. [see chart]

This of course is preposterous!  With the EU economy imploding for the last two years how could the Euro possibly be trading in the median range of a $1.40?  It should be trading at parity with the USD or even back down to its low of $0.80.  How could it still be so high?  Because the Euro when it was first established had two fatal flaws. 

One, a fundamentally flaw, is that differing national economies locked within a single fixed currency, would be unable to adjust their economies through monetary means, but only by fiscal means. If you're using an interest based fiat currency with ever increasing debt, that can be deadly.  Hence all the stupid, self-inflicted, economic devastation being wrought across the length and breadth of Europe by "austerity programs". 

Which leads us to fatal flaw number two, a flaw which might be responsible for the high Euro and  was probably designed from the beginning by the parasites.  The Europeans could not monetize their debt as Bernie and his boys are currently doing at the rate of 61 percent!!

The EU could not issue their own bonds. The member states as they struggled with their collapsing economies are subject to ever higher interest rates on their national bonds as their bond markets are subject to ever more relentless attacks by the Bankster parasites on Wall Street. Rates which are probably responsible for the high Euro. The Parasites constant attacks are funded by endless supplies of derivatives which they create out of thin air and is exactly why the US-NRE's government refused to impose ANY sort of regulation on the derivatives market in the first place.  It must be understood that these are planned, coordinated attacks against the European Union by the Bankster parasites.

Essentially the US-NRE's parasites got to export the Depression they themselves caused....to Europe while making enormous sums of money from the interest rates they themselves jacked up.  As an added bonus they are allowed to offer "help" to the EU through additional Fed loans and Fed Bankster bail-outs which some might think as a favor, but remember, the definition of "Currency Wars" is not how high your currency is relative to others, but how many others you can force to use your currency and how many others owe you money!

Why do you think "The euro was established by the provisions [of] the Maastricht Treaty [in 1992]"? 1992....get it?  Right in line with the US-NRE's "ten year economic / war cycle" right when the US-NRE embarked on another ten year economic / war cycle and needed to sell its tens of trillions of dollars of newly created toxic junk to the EU to fund their empire fling?  Why do you think Goldman Sachs bribed Greece's leaders and finagled Greece's books to sneak the country into the EU? [02]  Why do you think Greece, the same country Goldman set-up in 1992 was the first one to fail?  Why do you think they appointed a former Goldman Sachs officer to be in charge of Greece's "bail-out"? [03] (The second reload)

Now with Bernie set to crush the dollar with QE3, and the war with Iran set to go off as planned, both events most likely to occur after the 2012 elections, the US-NRE's AIPAC/Israeli Banksters who for the last year and a half have mounted a frontal assault on Europe to force them to comply with the final completion of the PNAC Protocols, can continue to do so without having to worry about a complete dollar collapse, since the Euro will be forced to fall just as fast!!

They've solved the conundrum (for now) of violating the"Fifth law of wartime currency expansion"

The size and length of the next war is inversely related to the economic recovery time of the prior war.

By more than fulfilling the Sixth law of wartime currency expansion

The ability to wage war through currency inflation is directly related to the number and size of economies willing to accept the aggressor nation's currency/debt.

They've also solved the conundrum (for now) of violating the "Fourth law of wartime currency expansion"

The chances of a war occurring are directly related to the rate of deflation and inversely related to the rate of inflation.

The parasites don't particular like excessive amounts of inflation regarding commodities, it makes it difficult to carry on their wars and eventually diminishes their financial power.  But if you crash Europe's economy it will keep commodity prices relatively low world wide even while you are practically destroying your own currency. Ditto for artificially keeping the Euro relatively high compared to your own currency.  It's all quite clever if you think about it.

Although both policies will make it more difficult for US based exporters, the manufacturing sector of the US-NRE's economy currently consists of just twelve percent of the US-NRE's GDP, [04] is still contracting and in any case is now irrelevant, it's the Bankster and Wall Street parasites that the Bernie and his boys intend to support, not the manufacturing base in this country.  Basically the banksters have concluded that military/bankster parasitism is the way to go and any manufacturing that needs to be done will be carried out in the conquered territories.  Just think of Israel and you'll get the idea.

This website editor did not believe the US-NRE's parasites could, or would, continue the "ten year economic / war cycle", that they were in fact "surprised" by the premature collapse of the cycle back in 2007 and that they were properly chastened and demoralized, that it had proved to difficult for them to overcome the fifth law of wartime currency expansion. 

Nothing could be further from the truth, by using the EU's economy as an adjunct of the US-NRE's economy, the US-NRE's parasites have extracted sufficient amounts of wealth, by the artificial elevation of the Euro, and therefore the corresponding increase in the US-NRE's corporate "profits", and by also selling the EU tens of trillions of dollars in toxic, worthless assets, that they will be able to continue their endless wars for several more years to come while at the same time severely hobbling and controlling a potential currency competitor.

It's a pretty simple process, all you have to do is follow the money. - mpg


01 -- About Those Permanently Rising Corporate Profits...  Alt
Profiting From A Weak U.S. Dollar
How U.S. Firms Benefit When The Dollar Falls
Will a Weak Dollar Do Us Any Good?

02 -- How Goldman Sachs helped mask Greece's debt
The Secret Goldman Sachs-Greece Deal That's Described As 'A Very Sexy Story Between Two Sinners'
How Goldman Sachs helped mask Greece’s debt

03 -- Greece Hires Former Goldman Banker as Debt Chief (Update2)
Head Of Greek Debt Office Replaced By Former Goldman Investment Banker
Goldman Sachs, the international web
Greek Debt Mngmt Guy Thought His Partners In Obscuring ~ Debt Would Be The Last People To Rip Him Off

04 -- Facts About Manufacturing
US Manufacturing -- Losing Out?