Sunday, January 11, 2009

The Depression 2

This Depression did not start with the housing market, that is a great misconception. The Depression began in 2000 when at the end of the last FEDERAL RESERVE RATE cycle the US economy went into a tailspin (sound familiar) and the FED began cutting rates into 2003 to 1 to save the day (wow that sounds really familiar).

At that point the pinnacle index of the US economy was the Nasdaq, like the Nikkei of Japans crash in 1989 or the 1930's Dow it was the best measure of the biggest sectors that were driving the US economy and Japanese economy at those times respectively. All were reduced into their lowest 30% percentiles of their lifetime ranges all meandered around in their lower 40% percentiles of their historic ranges up to that period in their first decade after their respective crashes or there a bouts.

What we experience in 2003 to now was nothing more than a credit dislocation cause by the financing of the WAR in IRAQ and a rapid expansion of the money credit system by the FED in order to finance WAR (big business for the FED--business 101 means we are probably due for another war shortly). The FED increased the money supply and it debased the dollar. We had all commoditized assets run up in price 2 to 3 fold or actually they held value as the dollar decreased due to excess supply of fiat dollars.


If you notice the FED hid the M3 money supply number in 2006 the year after George Bush closed the Bankruptcy loop hole and the FED changed the minimum credit card payments for the first time since 1981 (interesting year if you really think). By doing this they hid the massive contraction in the money supply which collapsed the markets globally and reduce commodity prices like Oil, Gold, Houses, Gas etc.....PLEASE NOTICE FOOD PRICES ARE NOT FALLING BECAUSE THE FOOD SHORTAGE IS UNDER WAY. Remember the debt money is the only money if there is less debt then their is less money in circulation which means that all assets denominated in fiat money must reprice downward to account for the reduction of circulating paper. Nothing happens by accident and the sooner people try to understand the way that pretty piece of spray painted paper in their pocket works the less we will all have to suffer from mass ignorance. SNAP OUT OF IT!!!!

The Depression

Yes its round two and you are already in it so stop waiting on the TV to confirm that.

I watch the media say we have not proven the 2 quarters of negative growth need to confirm a recession for all of 2007 and most of 2008 and when they finally did the whole planet had already crashed to the tune of 40-70% in their respective financial markets. Trust me the people on TV are smart. And when is the last time a millionaire told you what he was doing for free? Think... do you really think the TV is dying to tell you what to do to really not get in trouble. If it was it would be blasting the things I put on here from the mid 2000's as I have and face the amount of ridicule I have had to take doing it to try and help people not get wiped out....

Sadly it has to smash everyone in the face for them to care or notice or pinch em in the wallet and make them suffer with their families to say whats going on. Now that I have your attention. You are already in the depression and with it facing a new World War and a Food Crisis. The powers that be are going to rebalanced this worlds assets with its population make no mistake you are very much managed like a heard of cattle. People are going to starve don't be one of them the powers that be do not have your best interest at heart stop lying to yourselves okay its time to grow up and face facts.

FED CUTS RATES TO ZERO!!

Ok now its pretty funny how this one plays in the media. Has anyone yet ask as I have from this blog began. If the FED is cutting rates to save the day right....would anyone like to ask them where the rates are coming from (5.25%), and who was the genius that put them up there with 17 rate hikes and annihilated the housing market by forcing adjustments on LIBOR Mortgage Arms, which where 80% of origination from 2003-2006, up and triggering the default wave on the American people and the world?

**Please note the 95% correlation of FED Rates to LIBOR (a measure of risk in bank to bank lending)***

For what ever reason I have come to accepts that at least 85% of any population remain in a fantasy world for most their lives okay fine but for the remaining percentage that doesn't have their heads up their asses ask yourself this. Who just became GODS of the US financial system by bringing it to its knees. I hope that is blunt enough to get the message across. Please wake up my god what has to happen in all American's faces for you to get that this Private bank is raping the people.