Tuesday, May 15, 2012


Greetings good citizen,

The opening bell just sounded but it’s too early to see where the markets are going…although if the ‘rest of the world’ is any indication, our capitalist overlords have another day of bloodshed on their hands.

But who knows, it seems for some (totally illogical) reason; yesterday’s pigs morph into today’s gems!

How sad is it good citizen that the ‘rationale’ behind purchasing stocks has boiled down to, ‘because they’re there’?

But it leads us right up to the edge of the world of ‘funny money’. The ‘presto-chango' required for a nation to abandon one currency and to then issue their own…er, ‘fiat’ currency.

Many of you have probably already heard about Mr. Krugman’s self-fulfilling prophecy by now but here it is for those of you who like under a rock (or anywhere inside the US propaganda zone…)

Below is his post in its entirety.

Some of us have been talking it over, and here’s what we think the end game looks like:

1. Greek euro exit, very possibly next month.

2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany.

3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals.

3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing.

4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or:

4b. End of the euro.

And we’re talking about months, not years, for this to play out

Switch mental gears here as we explore the task of putting your own currency out there on the ‘global currency market’.

Understand that nobody doubts that the new currency will be ‘named’ what the old currency was called, at least in Greece’s case, the Drachma will be ‘resurrected’.

The ‘trouble’ comes in at where this ‘new’ currency will be valued relative to the (mostly worthless) already existing currencies.

Get this bad boy wrong and you have instant Zimbabwe on your hands!

IF those who dictate what our currency is worth are ‘too generous’ to Greece there will be a mad scramble to abandon the Euro…so we can be assured that the new Drachma will not receive ‘favorable treatment’.

Now it all depends on (because we’ve got a ‘chickens and eggs situation on our hands here) what they do AFTER a price is ‘set’.

They won’t be able to print Drachma number one without first specifying how many they intend to issue at that price and what will be used to, er, ‘back that claim up’.

Which is to say the market makers won’t issue a ‘value’ for the new Drachma until they are given an idea how many of them there will be.

Naturally, the Greeks would want to, er, ‘undermine’ the Euro, the old Drachma was like the Italian Lira in that respect…which mimicked the Japanese Yen.

One yen is worth roughly one US cent (which was responsible for turning Japan into an exporting dynamo! So how sad is it that it also marks the beginning of the long slippery slope of ‘financial manipulation’ that ultimately destroyed the global economy?)

Like the ‘cesspool’ we live in? Thank a fucking banker!

Back to our ‘exploration’…

AFTER a ‘value’ is set, the Greeks will ‘revalue’ as quickly as possible.

This is where the ‘tug of war’ begins. It is also kind of how they got into this trouble in the first place.

How much money there actually is and how much money they SAY they have will soon turn into a matter of ‘conjecture’ and all of a sudden the global banking system will find itself ‘awash’ in Greek debt instruments.

Hell, it worked the first time and NOTHING has been fixed…

And this time it’s ‘shame on me’! (Which is to opine we should be ‘smart enough’ not to get taken twice…but what kind of world would it be if you couldn’t trust anyone?)

A mighty dysfunctional one good citizen…and no place you’d want to raise a family in.

In a world where nobody can trust anybody we have the beginnings of a global systemic collapse, and we have our financial sector to thank for it!

Naturally, we can only skim the surface of this issue in a few paragraphs but the point is quite clear.

If we can’t trust the people who handle our money then we are well and truly…

Don’t you agree?

Thanks for letting me inside your head,


Um, PS: A Simple Plan ‘stabilizes’ money by re-purposing it to its ONE useful social function, that of a regulator.

Under A Simple plan there is NO currency, only money of account that is totally non-transferable and therefore, non-negotiable.

Thus does the ‘cheaper there’ not exist, just as it is a ‘fiction’ today.

Um, you have to understand the ‘true nature’ of money to comprehend the above statements which refer to the frauds you are regularly victims of.

I’m unsure how helpful you would find the explanation of a Duck remaining a duck, a Pig remaining a pig and a Dollar remaining a dollar no matter where you were!

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