Wednesday, December 15, 2010


Greetings good citizen,

The markets are up but what would you expect considering the Fed continues to fuel the surge in stock prices through ‘quantative easing.’

Which is to point out that this current swelling in the value of capital is actually meaningless if it were put in the perspective of a rotting corpse, which is precisely what this phenomenon is reflective of.

As you might imagine, the recent ‘excitement’ over retail sales figures are precisely the ‘smoke and mirror’ hocus pocus one would expect from a shrinking customer base.

Defunct businesses do not report sales figures, these figures can only come from the surviving outlets which now enjoy a bigger share of the market, causing their sales figures to improve.

Worse, many of the ‘survivors’ have shut ‘under-performing’ locations, driving business to the remaining stores. And reporting the results as an ‘increase’…

Nothing from nothing leaves nothing…and that’s a fact, Jack!

Fewer people working and even less shopping does not equal a net increase in sales! IT IS IMPOSSIBLE!

Yet the fucktards expect YOU to swallow it!

Worse good citizen is the ‘basic dishonesty’ these tactics represent.

How can we trust the systems that produce this incredible bullshit?

Short answer, you can’t!

More succinctly, it is this ‘basic dishonesty’ that will lead to the collapse and eventual destruction of our civilization.

Yes good citizen, Debunking Gonzalo Lira and Hyperinflation here we have an argument that is essentially moot. Which is to say pointless because this is not how things will ‘play out’.

As Stoneleigh points out in the beginning of the article (a fact that dovetails nicely with my, er, ‘assertion’ that money is in fact a fantasy, wrapped in an illusion enforced at the point of a gun) that ‘hyper-inflation’ requires isolation. A key separating factor between our current crazed banking system and the economies of Wiemar Germany and that of Zimbabwe.

So no, it won’t be ‘hyper-inflation’ per se that causes our economy to collapse, it will be the sudden necessary shift from fiat currency to ‘in kind’ commodity trading that will cause the financial system to…evaporate.

Once the tax rate reaches zero, the currency becomes ‘illegitimate’ since it is no longer required to pay one’s taxes (talk about a mind fuck!)

However, the basic dishonesty we are witnessing throughout our society will only serve to increase the demand to be paid in ‘items of value’ as the situation continues to disintegrate.

That said, Stoneleigh and I are in perfect accord regarding the ‘ultimate outcome’.

I do not see this as a transitory problem leading back to business as usual, and I mean NEVER returning to what we would now regard as business as usual, let alone doing so in only a couple of years.

Deflation and depression are mutually reinforcing. This is a persistent dynamic that should last at least as long as the last depression, and likely longer as every parameter is worse going into depression this time. We have more debt, far more structural dependencies (on cheap energy and cheap credit primarily), looming resource limitations, far higher expectations, a much larger population, a far smaller skill base etc.

I think we are looking at an economic catastrophe of unprecedented proportions, not a bump in the road that can be quickly consigned to history, if only we face our problems head on. In my view we are going to have to live through deflationary deleveraging, a long and grinding depression, and then quite possibly hyperinflation once the international debt financing model is broken, and with it the power of the bond market to constrain currency printing.

This could easily take twenty years to play out, and even then the upheaval is very unlikely to be over. The last time a major bubble burst - the South Sea Bubble of the 1720s - the aftermath lasted for several decades and culminated in a series of revolutions. This bubble is much larger, and the aftermath is likely to be proportional to the excesses of the preceding bubble. This is why I call the presentation I travel to deliver A Century of Challenges.

Moreover, I do not see a return to what we consider to be business as usual at any point, because our business as usual scenario is critically dependent on cheap energy, and the energy subsidy inherent in fossil fuels has been a once in a planet's lifetime deal. We are going to be living on an energy income instead of an energy inheritance, and this will mean living a life none of us in the developed world will recognize.

UNDERSTAND GOOD CITIZEN, when she says ‘never’, she doesn’t mean in a couple of years, she means right here and now!
The ‘tipping point’ has already been passed even if the MSM is pretending otherwise because acknowledging this event opens the social contract to be re-written!

We no longer enjoy cheap abundant energy so the conditions we must live under WILL change…considerably.

Allowing them to remain ‘the same’ or even ‘similar’ for the few will make things much worse for the rest!

Funny how a ‘little’ hoarding can screw up an otherwise equitable distribution plan. People with ‘income streams’ will be at a decided advantage to those of us with less, er, ‘flexible’ forms of income.

Those with a paycheck that is negotiated on an annual basis will find themselves facing a crisis for most of the year…because it is not in your employer’s interest to pay you a cent more than they absolutely have to.

Since the FUCKING CONSERVATIVES have fucked up the tax structure of this nation, you now have no one to protect you from being ‘shortchanged’ by your employer.

Worse, if you’re ‘two-steps’ down on the distribution chain, your fucked because your employer ‘lacks the leverage’ to negotiate a better deal for himself.

Do you see how this inter-locking piece of shit can cave in quite suddenly?

If there is a ‘common thread’ on the gloom and doom sites it is this, the speed with which collapse can be upon us will astonish most of you.

Everything can be ‘fine’ when you go to bed tonight only to be unrecognizable by the time you wake up in the morning…IF you wake up in the morning.

Be Prepared (for pretty much anything, including deception!)

The depths of their depravity are unknowable and they’ve done some pretty ‘mad shit’ already!

Thanks for letting me inside your head,


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