STANDARD PACKAGE - (contains the following nine blogs)
  1. The Sixth Law of War Time Currency Expansion Trumps the Fifth Law
  2. The Three Legs of a Sound International Financial System - A Proposal
  3. One Vile, Venom Tipped, Taloned Hand Washes the Other
  4. Israel is NOT a "Nation-State", Nor Does It Plan To Be One
  5. The End-Stage Process of Mature Fiat-Currency-Capitalism
  6. The Virtual Economy
  7. Effective Fed Funds Rate & Total Nonfarm Payrolls - (The Ten Year Economic / Warfare Cycle)
  8. Some Tentative Laws
  9. On Inflation, Deflation & The Fed
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The Sixth Law of War Time Currency Expansion Trumps the Fifth Law
04-01-12 - revised 04-02-12 & 04-06-12
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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?

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The Three Legs of a Sound International Financial System - A Proposal
03-15-12
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SWIFT Cuts Off Iran As Sanctions Vice Tightens
War Alert - If you, as a nation, do business with these organizations, and nations like the US-NRE or Britain and their crime syndicate boss Israel, this is what will happen to your nation and your peoples every single time.
These countries, The US-NRE and Britain, are colonies of the Israeli government. Their behavior is quite predictable and easy to model. They've done the exact same thing for sixty years. They honor nothing.  It's that simple.

It is about time that something be done about this situation.  Three very simple steps can be taken which will benefit the people on this planet, those who reside in the other 190 or so countries.  One can be taken immediately and will result inevitably in taking the necessary and subsequent two additional steps to secure financial independence and security for this planet's population.

The first step obviously is to set-up an alternative to SWIFT immediately.  The BRICS (Brazil, Russia, India, China and South Africa) should take the lead. Given the size and power of the internet, the wide spread use of its technology, and the technical skills of the BRICS, it could be done in months, if not weeks.

The second step once a secure bank settlement system is established is to set-up an alternative world currency which despite all the naysayers, could also be done almost immediately.  You don't have to do anything large or grandiose, simply to smooth out transactions over the BRICS-FASTEST (financial account settlement tracking encoded & secure transfer) system, a modest sized fund of $500 billion or a even a trillion, composed of weighted currencies (based on the size of each countries economy) from the BRICS, plus a basket of other currencies, with perhaps a selection of commodities should be quite adequate.

The third step, naturally arising from the first two, should obviously be the establishment of an alternative international bank to the World Bank or the IMF.  After what's happened with SWIFT, and given these banks prior histories, and who manages them, they are utterly and totally unreliable.  It is as useless to give money to these institutions and expect a greater say in their management, or a return of your capital, as it would be to give your money to any banking institution on Wall Street or in London.

Again it should be a relatively simple, easy and rapid process, the account you set up to hold the assets to establish an alternative currency for your new financial settlement system will be the beginning of your new international bank.

The banks shares should naturally be allocated based on the size of each members economy, which also determines their contribution to the new reserve currency.  Instead of voting, an algorithm could be set up where these shares are increased or decreased based on how each nations currency trades in the market and the size of their economies.  Obviously agreed upon formulas of GDP calculation and procedures to prevent the million ways to manipulate or attack currencies will have to be implemented.

This will prevent the problems associated with the EU where members states economies were locked into a single currency and were unable to adjust to changing economic circumstances with disastrous consequences for their national economies.

The only hard and unalterable provisions which should be adopted by this new system is that NO citizen, or former citizen, of the US-NRE, Britian, or Israel, nor any person who is eligible to be an Israeli citizen  under current Israeli law, should ever be allowed to serve as an officer or as an employee of the BRICS-FASTEST system, the new international bank, or the institution set-up to handle the new international currency.  Also any currency basket should strictly limit how many dollars or pounds will be excepted. It really should be no more than ten percent of the total.  Finally no investments, loans, deals or joint ventures should EVER be made by these new institutions to or with any financial institution in these three countries.

These three steps, or legs if you will, will solidly  support a system of financial transactions and an international financial system whose currency will be based on the hard labor, intellectual power and material resources of its participating members instead of the complete absence of ANY financial regulations, financial fantasies, bogus statistics, endless cycles of ten year economic warfare and the production of limitless supplies of fiat script, securities and bonds not worth the paper they're printed on that is the current basis of the worlds international financial system.

The new system will be "organic" in that it will adjust automatically to the rise and fall, or to put it bluntly, the wise management, or mismanagement, of its members economies by their respective governments and populations.

It is sincerely hoped that this proposal be implemented as soon as possible.  Time is running out, the threat of economic instability is increasing dramatically along with ever expanding wars.  The parasites currently running the economies of Britain and the US-NRE into the ground will not stop, and most likely they cannot be stopped.  The populations of these two countries appear at this time to have completely given up on trying to control these events.  Therefore, for the good of the rest of humanity, for the financial security of the other 190 countries who exist on this planet it is IMPERATIVE that an alternative, viable, reliable, solvent, and stable international economic system be established immediately. - mpg

Related articles....

Dishonest Money: Financing The Road To Ruin with Author Joe Plummer - (AJYuTb 19m09s 03/22/12) - Src:  AJ
Another Hidden Bailout: Helping Wall Street Collect Your Rent
Financial Crisis, Round Two - Wall Streets Reloads With Toxic Bonds
He Could Be Worse Than McNamara! - Jeffrey Sachs’ Grab for the World Bank
Muslim Brotherhood wary of Egypt IMF loan
One Half of Italy's New Sales Tax Receipts Go Directly to Morgan Stanley in New York

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One Vile, Venom Tipped, Taloned Hand Washes the Other
(a.k.a. The Standard Model)
07-28-10 - revised 07-29-10
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Fifteen out of the nineteen hijackers on 9/11 were supposedly Saudi Citizens, the Saudi Royals are the ONLY ones to support their own sick, twisted, demented, version of Islam, called Wahhabism, which they have been sponsoring for well over a hundred years without much effect on the world's Muslim community until they recently received huge amounts of revenues from their vast energy reserves.

This is the very religion that every person in the US-NRE has been hearing about for the last ten years, although they wouldn't know it from listening to the mass media.  Every single time this government breathlessly announced another arrest of a "militant jihadist" (usually a Wahhabist) who received his "terrorist" training at some radical mosque (usually a Wahhabist mosque) and who was nabbed "just in the nick of time" to prevent another "dastardly terrorist attack" against the poor, pitiful, peaceful citizens of the West, they were talking about the Saudi Royals' state sponsored religion.

Yet NOBODY wants to name it, describe it or analyze it.  The Saudi Royal's religion has remained deliberately unnamed by this nation's corporate controlled press for over TEN YEARS, not one single mass-media news outlet will call it what it is, Wahhabism, or mention that this religion is sponsored by the Saudi Royals, or investigate the Saudi Royals establishment of hundreds of thousands of Madrassas worldwide, or the vast sums they bestow on these Madrassas, or the radical philosophy they teach there, or the US-NRE's acquiescence to all of these policies.

None of the six major media conglomerates in this country, corporate behemoths which control nearly ninety percent of this nation's mass-media, most of which are owned or directly controlled by Israeli/AIPAC members of this nation's "Jewish Community", have ever discussed these issues or investigated them.

This is a sick joke folks, the US-NRE has supplied tens of billions of dollars to help fund radical Islam throughout the Middle East for almost thirty years, it is spending trillions of dollars on its military industrial surveillance complex while supplying tens of billions of dollars to Israel all in an effort to "defend" itself and Israel against the supposed "threat" it has itself helped to create, all the while the Saudis have received trillions in US-NRE script for their oil, the proceeds of which go directly to support groups like al-Qaeda, along with the Saudi Royal's bastardized, xenophobic, version, of Islam..

This is the True Axis of Evil in action, where one, vile, venom tipped, taloned hand gets to wash the other, were one member of the axis of evil's acts of mayhem and murder goes to directly support the actions, plans and objectives of the other two members.  Plans and objectives such as....
This Trinity of Evil probably began to see how a mutually beneficial Faustian bargain could be struck as early as the 1970s.  After the US-NRE went off the gold standard and it's currency was about to become worthless, after Israel proved its military powers during the 1973 war, the Saudi Royals realized they would have to make some sort of accommodation.  And so they agreed to recycle their petro-dollars through the US-NRE's and Britain's banks probably for a guarantee that they would not be attacked by Israel.

Concurrently around the same time, all three countries began to rapidly radicalize elements of their populations.  Israel of course begin to foment a philosophy of lebensraum that would make even the Nazis blush while members of the Jewish Community in the US-NRE began to vigorously promote the US-NRE's strange faux-Christian, Zionist supporting (or even worshiping) “Armageddon” cult while of course the Saudi Royals massively increased their support for radical Islam everywhere, but specifically in what is now called the "arch of instability"

These plans were actually written down more than thirty years ago, they were to be the blueprints of the US-NRE's "long war" their "thirty years war" of  full spectrum dominance across the globe.

They began to bare fruit during the eighties as the Soviets were driven out of Afghanistan and finally culminated in the arranged event called 9/11  An event that would help to launch what had by now been finalized by this "Triumvirate of Evil" as the PNAC Protocols.  Plans for a mutually beneficial, self reinforcing, self-aggrandizing model of mayhem and murder the world has never seen before.  The Saudi Royals, with US-NRE assistance, would funnel massive amounts of money to hundreds of different terrorist groups throughout the Middle East allowing the US-NRE to launch wars of profit against almost all of Eurasia.

The Saudi Royals would acquiesce to the complete elimination of the Palestinians as a viable entity and would get to joyfully watch the destruction of their enemies from afar at the hands of others while extending their malevolent "religious" influence across the Middle East.

Israel would be allowed to conquer and permanently occupy all of Palestine while even developing its own sphere of influence, friendly regimes such as Egypt, Jordan and perhaps the soon to be formed "New Kurdistan" which is to be carved out of the carcass of what was once the nation state called Iraq.  With the countries of Lebanon and Syria to follow as soon as possible once Israel launches its next series of wars

And finally the parasitic class in the US-NRE would get to impose their will upon the entire world while establishing the most vicious police state ever seen since the fall of Stalin's regime in the Soviet Union.  Its new Bankster class would even be allowed to make permanent debt slaves out of the Neo-Romans (one could hardly call them "Americans" at this point) now living in this country.

A masterful plan, and of course, after such brilliant successes we should all realize that this Axis of Evil will not stop now, not after they've been so richly rewarded. - mpg

For more on this issue see the articles shown below....

2002 Iraqi Intel Reported Wahhabis Are of Jewish Origin - posted 08-05-11
On Saudi Arabia in Paksitan - posted 07-26-11
The Saudi States of America - posted 07-26-11
US, Saudis make deal to incite carnage - posted 03-31-11
Let's make a deal: Saudis agreed 2 back Libya airstrikes 4 muted US criticism of Bahrain's supp... - posted 03-31-11
'US, Saudis sustain dictators in power' - posted 03-31-11
$60B arms deal with Saudi Arabia goes through at midnight after cong review expires - posted 11-20-10
Imperialism and Imperial Barbarism - Alt - Alt - Alt - Alt - Alt - Alt - Alt - Alt - Alt - Alt - Alt - posted 09-18-10
911, Power Elite, and Al-Qaeda - Alt  - posted 09-17-10

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Israel is NOT a "Nation-State", Nor Does It Plan To Be One
01-13-12
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Israel is NOT a nation-state, it doesn't act like one, and in fact, it has no intention of being one.

To be brutally honest, most members of the "Jewish Community", especially those in Israel, absolutely despise and hate "nation-states" and the whole concept of the nation-state structure.  It's why they created the PNAC protocols in the first place, it's why they've had their psychotic, moronic, satanic, Golem destroy every "nation state" in the Middle East, reducing everything to the tribal level (to eventually be reduced even further) or to the level of barbaric medieval monarchies, (the entire Arabian Peninsula for example)  It's why they've now turned their sights on the two remaining nation-states still left in the Middle East, Syria and Iran.

(Note:  although they also had their sights set on Pakistan and Pakistan's nuclear weapons, Pakistan appears -- for the moment -- to have "woken up" to their country's imminent peril and successfully halted their nation-state's long planned dismemberment)

The Israelis and most members of the "Jewish Community" firmly believe that corporations, controlled by a few globe-spanning banking institutions who can print fiat script at will, is the future organizational structure and governing principal for the world's people. That any other entities or economic systems, especially those not currently part of, and deeply in debt to, the US-NRE's (i.e. the AIPAC/Israeli Consortium's) banking sphere, should be flattened -- literally -- (per Thomas Friedman), and if necessary, that tens of millions, even hundreds of millions of people (non-Jews only of course), be murdered, to make way for this new global structure.  A structure where those who print and have free access to fiat currency get to lord it over the 99.99% who don't and are forced to work for theirs.

Some might object that there are other fiat-currency unions like the Euro. Yes, the Euro is the one effective system that has risen to challenge the US-NRE's and Britain's Banksters world wide financial dominance, and we are currently witnessing that system's total destruction at the hands of the very same US-NRE (AIPAC/Israeli Consortium) Banksters who sold that system tens of trillions of dollars worth of faux-financial paper crap. All to pay for their Empire fling in the Middle East

These are the very same Banksters (Goldman Sachs), who ten years ago helped Greece finagle their books to illegally get into the EU, the very country that first "started" this crises and which, by the way, also happens to be the very country that is now supposed to "trigger" the EU's domino like downfall when it finally goes bankrupt/leaves the EU. 

These are the very same US-NRE ratings agencies, who illegally, and knowingly triple "AAA" rated all of the toxic waste sold to the EU during the last decade, and who are now constantly down grading the EU's member states for having bought all of their crap in the first place.

This was planned more than ten years ago.  It appears to be part of the Ten Year Economic / Warfare Cycle.  ---  Or to quote a previous blog....

"Be it the CIS states, the SCO, the South American Currency Union the GCC's currency union, Asia's currency union, and many others.  [Note: these alternative currency spheres are not even up and running yet, most of them are just in the planning stages] No one will be allowed to threaten the US-NRE's [the AIPAC/Israeli Consortium's] monopoly over its "reserve" currency system of Neo-Roman tribute extraction.  The US-NRE's government, Goldman Sachs and a few other Banksters intend to make an "example" of the EU and anybody else that gets in their way."

"We should all just call it the US-NRE's "Financial PNAC Protocol".  Its plans for Full Spectrum Financial Dominance." -- *The First Salvos of the Currency Wars - 05-07-10 - mpg*

Israel is an ever expanding criminal enclave of gang-banging, terrorist supporting, empire building, nation-state destroying, war mongering, financial parasites, living by the shores of the Mediterranean Sea who've refused to; establish a constitution, abide by ANY international laws or coherent set of internationally recognized principals, or the laws of other nation-states, set their own borders or even try to establish peace with their neighbors. 

They have no intention of EVER doing so.

They truly believe they can romp around the entire world, propagandizing, spying, black-mailing, bribing, assassinating, "arranging" numerous wars and economic "collapses" whenever it suits them.  They truly believe they can penetrate the institutional structures of national governments with their front-men (such as Nicolas Sarkozy in France and Stephen Harper in Canada), own other countries in their entirety by the printing of fiat currency, (like the US-NRE & Britain), and stage false flag events like 9/11 & 7/11 to "play" the stupid goyum against Israel's geo-economic competitors in the Middle East whenever they wish to do so. 

Well one day there will be a reckoning for all the millions they've helped to murder and impoverish  and the countries they've helped to destroy. - mpg
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Additional articles you might enjoy....

Israel’s refusal to present borders with Palestinian state marks end of talks
Mark Glenn joins The Bob Tuskin Radio Show for an in depth two hour discussion on Zionism....
Audio - (AdbeFlsh - 2hrs - January 18, 2012) - Source:  BobTuskinRadio - Related:  Download Mp3
Are The Middle East Wars Really About Forcing the World Into Dollars and Private Central Banking? - Alt - Alt
Truth About Middle East is Spreading - Alt
Libya all about oil, or central banking?
William Engdahl: US economy goes down the tube by days - rtvideo - Alt - (YuTb - 5m41s - 01/16/12) - Src:  RT
On Exceptionalism and Deviance - key article
"Financial Terrorism": Wall Street’s Ratings Agencies Degrade Nine European Countries
Waging Covert War on Iran
Money Over God, Power Over Country: 9/11, The Almighty Dollar, & The Betrayal of American Values

Additional mpg essays you might enjoy....

Attack of the Killer ZOG-Banksters - 12-16-11 - mpg
One Vile, Venom Tipped, Taloned Hand Washes the Other - (a.k.a. The Standard Model) - 07-28-10 - mpg
Time For Jews Who Disagree To Step Up.... 06-21-11 - mpg
Israel Collapsing; Not Quite.... 03-13-11 - mpg
It's Pronounced "The Jewish Community" - 03-15-10 - mpg
They've Become Monsters - 05-17-10 - mpg
Minority Control - 01-08-10 - mpg
Four Criteria - 01-18-10 - mpg
A Mortal Threat – Europe’s New Frankenstein Monster - 01-26-09 - mpg

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The End-Stage Process of Mature Fiat-Currency-Capitalism
11-30-11
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If you're wondering why the "markets" (hah!) have done quite well for the last two years, but also why it's going to "get worse" for the 99 percent and the "real" economy.  Just read the articles shown below.  Here's how it works.
Keep in mind this process may not be linear. Also keep in mind this downward cycle and massive transfer of wealth to the parasites is the rapidly evolving end-stage process of mature fiat-currency-capitalism, what is known as Banksterism or Parasitical Financialization. 

It occurs in societies where the paper products produced continue to exceed the underlying, (and in the case of the US-NRE, rapidly declining) "real" assets.  It is also caused by the increasing, inflation adjusted, debt per capita imposed on each citizen that these products represent, along with the destructive cumulative effects to society of the Ten Year Economic / War Cycle the parasites use to time their investment decisions.

The concept can best be thought of as a double helix, where the real economic business cycle going forward is controlled by its counter point on the other side of the helix, the monetary economic cycle. The cycles timed, or punctuated, every ten years by war.

It has taken almost one hundred years to arrive at, or should it be said, to lever-up to, this point since the establishment of the Federal Reserve, the US-NRE's income tax system and the ten year economic / war cycle back in 1913.  At its present rate of of unraveling it will probably only take only another two to five years to complete this society's utter destitution .

Unless some sort of Jubilee or other arrangement is made to write off all these debts and paper products, (deleveraging) it appears the parasites intend to repeat the process described above until either the 99 percent have all become complete, abject, slaves....or, the one percent have all been rounded up and executed.

This seems like a pretty STUPID, self-reinforcing, highly destructive process to this website editor, but than again, this website editor isn't an economist, (thank God). - mpg

Additional articless you might like....
Nomi Prins: No Matter What, The Banksters Always Win - vid - NP(1/2) - NP(2/2) - (YuTb 15m 120211) - Src AJ
Federal Reserve Hands Out Trillions In Corporate Welfare - vid - Alt - (MSNBCYuTb 7m32s 112811) Src MoxNws
Not a Laughing Matter: Fed Throws Trillions at U.S. and Foreign Banks in Secret … Hides from Congress
Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The TBTF Banks?
US Debt/GDP Hits Post WW2 High 99.5% Following $55 Billion Overnight Debt Increase: Total Debt Now Over
29 Amazing Stats Which Prove That The Rich Are Getting Richer And The Poor Are Getting Poorer
Tens Of Millions Of Americans ~ On The Edge Of Desperation – And It's About To Get A Whole Lot Worse
Global Central Banks Ring Gold Buyers' Bell - vid - Alt - (PSYuTb - 5min12sec - Nov 30, 2011) - SchiffReport
Central Banks’ Latest Move Shows Desperation
[US] Productivity Weaker Than Thought, Wages Slip (Revised Down Again)
It's Good To Be The 0.1%

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The Virtual Economy
05-01-09
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[The Real] Economy On The Ropes
Must Read - While Bernanke may have avoided a global bank-run, the bleeding continues in housing, business investment, manufacturing, industrial capacity, and global trade. Every sector is falling precipitously with no end in sight. Even worse, nothing has been done to remove the trillion dollars of toxic assets from the banks balance sheets which is causing credit to tighten even more. Treasury Secretary Timothy Geithner has failed to take advantage of the uptick in investor confidence to resolve the problem of underwater banks. Instead, he has stubbornly stuck with his Public Private Investment Program (PPIP) which has made less than $6 billion in transactions so far. Unless the banks are restored to health and their balance sheets repaired, a sustainable recovery will not be possible. According to Bloomberg, 6 of the 19 largest banks (which contain 75% of the system's total assets) are insufficiently capitalized:"

The author’s basic conclusion is that Bernanke has kept the financial sector from imminent collapse....for the moment.  That's it.  That's all they've done so far.  Despite spending trillions of dollars for their various and ingenious transfer programs to the wealthy while also backstopping and guaranteeing trillions more in toxic waste, the author is still very dubious about the prospects for a sustained economic recovery anytime soon.

And that certainly would seem to be the case. From this website's editor's perspective the banks aren't solvent using any normal bookkeeping standards and are highly unlikely to become solvent for at least the next decade.  In addition to the prospect of having to deal with these zombie banks for years, everyone can also look forward to at least another twelve to eighteen months of ongoing economic deterioration, followed by years of continued stagnation.  During which the Fed will continue its ineffective quest to inflate the economy by printing and giving away trillions more....to the Banksters of course.

Despite all these efforts, or more properly because of them, the situation in eighteen months will be exactly the same as it was a year ago, or for that matter ten years ago.  Assets will still be "over-valued" relative to those that could be purchased just about anywhere else in the world.  There will still be no disclosure on what the banks are actually holding, the Fed will be on the hook for an additional five to ten trillion dollars, manufacturing will be decimated and will remain so because it will still be cheaper to manufacture in most other parts of the world, unless of course the dollar collapses completely.  The housing market will stay depressed for a decade. Real earnings of the American worker will continue to stagnate as they have for the last thirty years, and for the same reasons. The US-NRE will by that time be mired in at least three, possibly four, ongoing wars of occupation. And finally, we as a nation have yet to experience the predicted "credit card default crisis" and "commercial real estate crisis".

However the financial sector by then, flush with about fifteen to twenty trillion dollars worth of paper promises from the Fed, will be sitting pretty and looking good.  It will probably occupy forty percent of the US-NRE’s economy producing about that much of its GDP.  All of it by "manufacturing" additional bits and pieces of paper and "shuffling" this blizzard of "financial products" (new versions of toxic waste) from millions of accounts to millions of other accounts with the usual staggering mark-up and interest rate charges.

It's become obvious by all this frantic activity for the last two years that most of the economists currently employed by the Government, and almost all of the elites in this nation, have developed a firm and abiding belief in the new, improved, "Virtual Economy™".

The fervent belief the if you counter-act a massive wave of economic contraction, which they of course created by their first attempt at creating a virtual economy, with an equally massive wave of engineered inflation (a version of the Black-Scholes formula perhaps?) you'll achieve a "balance" of some sort and be able to maintain their "sacred system” of "wealth accumulation", now known as paper production.

More importantly from their prospective they'll get to continue the "status quo".  They believe this approach will enable them to keep their privileged position on top of the economic pyramid for a long time to come, no matter how much destruction the implementation of this perverted economic doctrine may cause to the "base" of the pyramid.  The elites therefore appear willing, for the moment only, to settle for becoming larger frogs in a possibly much smaller pond, or to put it another way, they're willing to settle for continuing to occupy the top of a possibly much smaller - and much shorter - economic pyramid.

However something has got to give in this arranged, titanic struggle, of economic forces and like the incredibly shrinking GM Corporation, what's going to give is the "base" of the US-NRE's entire "real" economy.  What the new financial aristocracy have successfully achieved by all these shenanigans is a massive, and permanent, decline in the standard of living for just about everyone else in the country.  A decline that will become apparent as soon as the value of the dollar begins to reflect the permanently shrunken state of this nation's "real" economy, just exactly as GM's stock has already reflected the shrunken state of that company's "real" future income, assets and prospects

At best given these factors it looks like the US-NRE will undergo the equivalent of Japan's "lost decade" followed by a massive increase in inflation around 2020.  Essentially a more destructive variant of what occurred in this country during the '72 to '82 "ten year cycle".  That's at best of course.  At worst, given the deflation that's occurring, there still exists a significant chance, although it looks to be somewhat diminished to the great surprise of this website editor, that the US-NRE will experience an old fashioned, long term, Depression.

The conversion of bigger and bigger chunks of the US-NRE's "real" economy into a "virtual economy" every ten years however does not bode well for this nation's future prospects.  Obviously at the end of the next eighteen months, (assuming the elites are able to get away with their little cock-eyed scheme), the elites intent will be to make every employee (that includes the self-employed) in this country work twice as hard for even less benefits for the next ten years while taxing them as much as they can to reduce the "virtual portion" of this economy to something a little more manageable. 

Since in the end they'll be forced to increase that portion of the virtual economy by another ten or twenty trillion dollars in just four short years, (that figure does not include the Federal deficit -- yet) they'll probably run out of any economic maneuvering room to do so.

In other words they could lose the race to deflation-depression and/or crash the currency.

Only time will tell. – mpg

For more on this issue see....Enforcing the Rules -- Too Little, Too Late - 02-27-09

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Effective Fed Funds Rate & Total Nonfarm Payrolls - (The Ten Year Economic / Warfare Cycle)

Now note the chart Effective Fed Funds Rate - how each recession occurs right around the "two's"
 of each decade..... proceeding the start of most of this Nation's wars.

.  Now isn't that interesting, or to use another phrase -
how "fortuitous" is it that these wars always seem to start near the bottom of the recessions . - mpg

Effective Fed Funds Rate (updated 01/30/10)

http://www.reficultnias.org/mikesfiles/cachedfiles/photofiles/FEDFUNDS_Max_630_378.png

Total Nonfarm Payrolls - (added 01/31/08)

employment-growth.png

Avarge Mean Duration of Unemployment - Weeks (added 01/30/10)

http://www.reficultnias.org/mikesfiles/cachedfiles/photofiles/Duration-Of-Unemployment3.png

http://www.reficultnias.org/mikesfiles/cachedfiles/photofiles/Total-US-Debt-As-A-Percentage-Of-GDP.jpg

START OF WARS - APROX.

1912 - 16th Amendment (income tax) created Feb 3, 1913 - Fed created Dec 23, 1913 - WWI started July 28, 1914
1922 - The "Roaring Twenties" - Courtesy of the brand new Fed's largess
1932 - Great Depression - courtesy of the brand new Fed's prior largess - no wars started.
1942 - WWII - (FDR knew, he knew when & where - LIHOP / War Provocation)
1952 - Korea - (MacAuthor was warned - LIHOP / War Provocation)
1962 - Vietnam - (Gulf of Tonkin / False Flag - MIHOP / Propaganda) - Kennedy Assassinated
1972 - Oil crisis, Gold Standard ended, Stagflation, Wartergate, Nixon Resigns, no wars started
 1982 - small wars Granada, Panama, Lebanon
1992 -  Gulf War I - (April Glispie - "Green Lighted" - MIHOP / War Provocation)
2002 - Gulf War II - (AIPAC/Israeli Consortium - 9/11 / False Flag - MIHOP / Treason, Criminal Conspiracy, Mass Murder)
2012 - Iran War....pending

||  LIHOP - def. Let It Happen On Purpose  ||  MIHOP - def. Make It Happen On Purpose  ||

a.k.a. "the long war" the "thirty years war" "the PNAC Plan" etc.

"Every ten years or so, the United States needs to pick up some small crappy little country
 and throw it against the wall, just to show the world we mean business." - quote attributed to Micheal Ledeen

Otherwise known as the US's ten year cycle of "Keynesian military spending" - mpg

PRSTVVideo - MK(1/3) - MK(2/3) - MK(3/3) - (PRSTVYuTb - 8/10 min - February 12, 2011) - Source:  PressTVGlobalNews
The Case That Wars Fuel U.S. Economic Booms
Collapsing the Economy in the Buildup to World War III: 11 of the Most Important Economic Events of the Last 11 Years

See also....The Economic Impact of the Iraq War and Higher Military Spending - PDF - or in HTML

Film: Money as Debt - Alt/1 - Alt/2 - video - (GoogleVideo - 47min:07sec - aprox 03-29-08)
War and Inflation
Economic Cycles and Political Trends in the United States
The Case for War: The Iron Mountain Report - It's BUILT into the "system" folks, it always has been.
The "Dollar Glut" is What Finances America's Global Military Build-up
Economic Depressions: Their Cause and Cure
Some Tentative Laws - 07-20-08 - mpg
The International : Scene with Umberto Calvini - Transcript - 02-20-10 - mpg
Market Predictions from the Foundation for the Study of Cycles
Michael Hudson's "Super Imperialism: The Economic Strategy of American Empire"
Super Imperialism
The Great American Bubble Machine
The Great Consumer Crash of 2009
Manufacturing a global economic collapse in the buildup to World War III
10+ Abuses for the Past 30+ Years
Hard numbers: The economy is worse than you know
Sell the rumor, buy the news
Money Supply is Soaring ... Right?

Nov 2006 Peter Schiff Mortgage Bankers Speech- (YouTube - aprox 10 min each - Added:  July 22, 2008)
Part - 1 of 8 - 2 of 8 - 3 of 8 - 4 of 8 - 5 of 8 - 6 of 8 - 7 of 8 - 8 of 8
[Nov] 2006 Peter Schiff tells over 1000 mortgage brokers they are about to be out of jobs.
Watch how he completely nails the coming real estate/mortgage debacle before anyone else even realized it was coming."

Money As Debt - also posted at ICH
(Google 47 min 7 sec - Feb 12, 2007)

FIAT EMPIRE - Why the Federal Reserve ...
(Google - 58 min 53 sec - Dec 5, 2006)

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Some Tentative Laws - To be updated/changed when needed
July 20th, 2008 - last updated Aug. 15th 2008
mpg

First law of wartime currency expansion
The positive economic effects of wartime currency expansion/debt turn negative after approximately five years.

Second law of wartime currency expansion
The recovery time from the inflationary affects of war time currency expansion/debt is inversely related to the size of the conquered territory's underlying economic assets and directly related to how quickly they are incorporated into the conquering country's economic system.

Third law of wartime currency expansion *
1) The interest rate (eventually) is inversely related to the amount of war time debt.
2) The interest rate (eventually) is directly related to the amount of war time currency expansion.

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.

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.

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.

Seventh law of wartime currency expansion
The wartime cycles take approximately ten years to complete.

Special Note: If great care is not taken, each successive ten year cycle creates more and more  underlying debt/inflation per capita necessitating bigger and bigger cycles of war (violating the Fifth law) thereby increasing systemic instabilities untill the entire system collapses.

* Regarding the third law, if there are large amounts of debt greater than the carrying capacity of the economy (deflation) while at the same time there exists large amounts of currency expansion (inflation), the result will invariably be stagflation, and both the direction of interest rates along with the chances for war (the fourth law) will be problematical. - links added 08-30-09
This is just a very tentative analysis - there's a lot more work to be done. - mpg

For more on this issue see....Effective Fed Funds Rate 03-24-07 - mpg

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On Inflation, Deflation & The Fed
08-17-09
mpg

China is Again Buying Long-Term U.S. Treasuries . . . Does That Mean China is Betting on Deflation?
Deflation Alert - A quote...."For the first time since the financial crisis started, China is again ramping up purchases of long-term U.S. treasury bonds. Indeed, according to Bloomberg:" -- This makes sense ONLY if China believes the US-NRE will not monetize the debt or default on its obligations.  This could be a very bad call and a severely misplaced sense of faith on their part, just think of the Japanese and what happened to them in the US-NRE's real estate market during the 80's. – mpg  -- For more on this issue see....The Green Light - 01-16-08 - mpg

Let Them Inflate - It's coming, but it'll take time. - mpg
Related Article - A quote...."I think that Paul Krugman is one of those absurd guys that has no idea what in the hell he is talking about and who owes his undeserved prominence to being a real butt-kissing sucker-upper to Alan Greenspan and his Federal Reserve, and now he’s doing the same thing to the laughable Ben Bernanke and his disastrous Federal Reserve, although I will admit that I don’t know why anybody listens to this guy."

Regarding the two articles shown above see the following quote from Some Tentative Laws.....

Third law of wartime currency expansion *
1)  The interest rate (eventually) is inversely related to the amount of war time debt.
2)  The interest rate (eventually) is directly related to the amount of war time currency expansion.

Bernanke & Co. have generated enormous amounts of "temporary" debt by creating over twenty four trillion dollars worth of loans, back stops and guarantees to support "asset valuations" (rich people's paper products).  These programs were implemented solely to support and conceal trillions of dollars worth of bad debts (toxic assets). 

As it stands now, we're still at the third law's rule number one regarding interest rates, as long as all that debt out there is still unwound (which will be difficult, if not impossible to do, because it's still increasing and we probably will soon enter into a Great Depression) interest rates will remain at zero and deflation will hold sway.

As soon as the debts and toxic assets are canceled or marked to market, (not likely for years, if not more than a decade) all those Fed "guarantees" will suddenly become monetized (not paid back), the third law's rule number two comes into play and the Fed will have to jack rates into the stratosphere to combat hyper-inflation.

Of course we could have stagflation (the asterisk*) however if that occurs, with the horrendous amounts of paper products already floating around out there, we'd all be looking at a replay of Germany's Weimar Republic. – mpg

See also....Long Term Joblessness Chart & The Ten Year Cycle

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