Yesterday we looked at the situations in both Ukraine and Greece, and how
they are both out of money which makes them potential “flash points” for
reality to set in. What I’d like to talk about today are the various
“slights of hand” and why a spade can never be called a spade.
Currently in the U.S., some (but certainly not all) of the recent economic
numbers are showing an absolutely booming economy. All you need to
do is look at Friday’s unemployment numbers, they were clearly
bogus. The biggest driver of employment over the last five years has
been the boom in the oil patch …which is now busted with 1,000′s of pink
slips being handed out. BLS revised the November and December
numbers to show the fastest growth of employment for any three month period
…so far this century! Really? Do you believe this in any fashion
at all?De
The economic and financial lies are getting bigger and bigger while
the economy is shrinking and the financial position is more
perilous. The gap between the reality and the true conditions have
never before in history been this wide. Stocks are not allowed to drop,
institutions are not allowed to fail, heck, financial institutions have been
“told” not to mark to market as this would expose failures. Inflation
is understated, employment is overstated, gold is not allowed to rise and the
game continues. Everything you now see and hear has one goal
behind it, hide the reality at any and all costs.
The situation with Greece is very sticky for the West for several
reasons. Each and every one of them is because a Greek
failure will expose the very ugly reality that the West is one big and
interconnected series of Ponzi schemes constructed in pyramid fashion.
Greece cannot be allowed to fail because of what, how much, and who they
owe. In order for the reality to stay hidden, Greece absolutely
must be forced to borrow more money so they have the ability to pay past
debts. Already this morning, a six month “trial balloon” extension has
been floated. If Greece is allowed to fail, other central banks
(including and particularly the ECB) and many commercial banks will take
some very real losses. This CANNOT be allowed to happen because of the
leverage factor and the fact that no more collateral exists within the system
that’s not already encumbered.
You see, many assets have been hypothecated (lent/borrowed against) many
times over, including Greek debt. In case you don’t see the
problem here, I will spell it out. When something is “lent” out or
“borrowed” more than one time, it is theft pure and simple. This truth
cannot in any fashion come to the surface because it will create a
“call”. The original owners will flood in and ask for their security,
their asset, (think gold) back. What do you think the world will look
like when 100 or so “owners” of the same asset decide they will not be one of
the suckers who are left with nothing? This will be a bank run on a
system-wide basis and include nearly any asset type you can think of.
The following analogy sums it up pretty well I believe. This game
works well …for a “while”. It works “while” everyone is confident and
no one asks any questions. It works while no one at the poker
table decides to cash in and leave with their chips. It works well for
as long as no one believes anyone else is cheating. Actually, it even
works when everyone knows that everyone else is cheating …as long as everyone
is winning. The problems begin when people start asking questions.
Questions begin when people start to lose money. The answers are
brutally ugly when discovered so it is imperative that no questions are
allowed to be asked… and this is where we are today. This is exactly
what “official policy” is today.
The Chinese, the Russians, The BRICS nations and 135 other nations tagging
along ALL know what the “answers” are. They fully understand the
casino is 100% rigged. They understand that everything of value has
already been borrowed against and in many instances, several times
over. This is why there have been so many trade and currency deals
signed over the last year and a half …without U.S. involvement, approval or
even “dollars”.
My personal opinion is this, a spade will very soon be exposed as the
spade it is and all the theft, corruption and intentional fraud will be
uncovered. The relevant event could be anything. It could be
Greece failing to pay, leaving the EU or even being kicked out. It
could be a local currency blowing up which bankrupts someone in derivatives.
It could be the failure of a debt auction somewhere in the world.
It could be something already well known or not. It could be a
war. It could come from the West or the East, and it could be an
accident or even an intentional event. It doesn’t matter “why”, the
event is coming. The event is coming because everyone knows that
everyone knows the system is fraudulent.
Please don’t reply to me saying “no, not everyone knows, the sheeple are
as asleep as always”. I am talking about “countries”. I am
talking about the players that count. The East et al absolutely knows
they are dealing and trading in a lopsided and unfair system. They know
the West is massively leveraged and has been dealing unfairly for many
years. Even Western countries know this to be true, for example,
why are countries repatriating their gold? Because they hope there is
enough still in the vault to cover what they originally deposited.
Like I said, everyone knows that everyone knows.
As mentioned yesterday, it is my opinion the East would prefer to allow
the West’s failure to occur “naturally” and not force the
issue. Time alone will do this. The U.S. has been pushing
for war at every turn. A war will be pointed at as “the reason” everything
failed. A war will also be used to cover the tracks of the fraud.
This is not new thought and only the way it has always been. Distract,
pretend, and extend!
If you believe the meme of “recovery” or “growth”, all you need to do is
look at this. The Baltic dry index has just dropped to ALL-TIME
lows! This index is very basic and when broken down reflects the
state of global trade. Global trade has collapsed since the 2008
crisis began, unlike ever before.
This, after huge global deficit spending and monetization. “Magic
Policy” which we were assured would cure all ills has failed miserably and no
amount of bogus economic reports can mask this fact.
Expect out of control markets, unimaginable financial failures and
ultimately a breakdown of distribution and society itself. The truth
is, we have lived in financial fantasy land since 2007. 2008 came
along, markets collapsed and the reset which should have occurred was aborted
…only to become a much bigger and far more painful “inevitable” event
now. More debt, more money supply and of course less gold in Western
vaults. We in the West have spent, frittered, and given away 100′s
of years worth of labor and savings of our forefathers. This in an
effort to resist living within our means and calling a spade a spade.
Spades are almost all that is left, all the other suits have been spent, lent
and borrowed 100+ times over!
