-- Published: Tuesday, 28 October 2014 | Print | Disqus
Many of you have are aware of the incredibly fragility in the world financial system. Most have seen it coming for some time. Many of you saw it all coming before the great crisis of 2007-2008. Some of you saw it before the "Dotcom" crash. Perhaps a few of you saw it all before the Savings and Loan crisis.
Very few remember the Penn Railroad bailout, and the lead-up to the end of Breton Woods. And yet, with in each cycle, we have yet to see a scorched earth clearing. An actual deflation leading to the end of the dollar.
The year 1971 was an important turning point but served, ultimately, as only the culmination of a long battle between banks and politicians. In the end, it was a banking play to free up any dollarization of the international banking space.
From the rebuilding of Europe to the development of resources in South America and elsewhere, this was the major windfall for the giant banks. Penn Station was the original post World War II prologue to 2008.
The Dotcom crisis was averted by lower rates. Blame was placed at the altar of the ludicrous no-revenue start ups. The Lehman crisis left us with the emergency measures in place to this day in the form of zero interest rates (ZIRP) and quantitative easing.
Nothing has been cleared. European banks have yet to be capitalized. And political-Fed chatter regarding the need for more liquidity has re-commenced as the equity market turns volatile. It is sad how it boils down. The dark shadow cast by fiat. A perfect time to re-assess personal economics.
Enough time has passed. The charade always goes on longer than we think possible. Usually, just long enough to breed complacency.
If you were prepared for the Great Financial Crisis of 2008 and wonder when it will even follow through - now is the time re-check the financial earthquake kit. Obviously, the entire spectrum must be reassessed and considered on a constant basis. But that's easy to say, hard to do.
In the face of extreme, identifiable risk, protective measures need to become a way of life. Though it is a crucial component of the earthquake kit, it is not enough to only stack. Wealth must be approached from a holistic standpoint. A functional view.
Precious metals are an obvious component and a means to the scarce commodities like food, water, and time. And to be functionally wealthy, we need energy to keep going. We must take action with what we can control.
Collective complacency is a problem that leads to many others. The cure is a sudden awakening to discomfort and a sudden decline in quality of life that is visceral. The problem is that coinciding slow decline in quality creates a buzzing frustration under the surface- inability to handle frustration, rejection. When people break, it gets ugly.
Surveillance negates the need for overt totalitarian action. Propaganda keeps the masses complacent. We need to prepare. We need to train.
It is a mindset.
We need to think about scarcity of everything from water to financial assets, to connections and other sources or skills of revenue. We need to keep searching for the energy. It is an illusion that casts a shadow because these companies could buy hard
assets and create tangible wealth.
And some of them do.
But we will never realize the full potential as long as that “illusion" continues to cast its shadow and the mechanisms represent the cynical and misunderstood underbelly of what lies ahead.
Money printing on steroids. The historical rhyme, not a repeat. The attempt by the Fed to manipulate markets using comments by Yellen and Bullard is a telltale indictment of modern so-called Capitalism. Sadly, this can go down because there has been no repair of morality.
The moral circle fails to expand, despite the evidence. The lessons from the past do nothing to penetrate the dangerous adherence to world views. It's not even close to real capitalism. It makes a mockery of belief that the markets are free. The side effects are dangerous to say the very least.
They are far more worried about the economy than they let on. It shows us that they place extreme and misguided importance on the level of the markets more so than any other indicator.
Market indicators can trump easily manipulated statistics. It is all based on belief - and they must always be ready to intervene because of this. Recent remarks are clear signs of desperation. They create cynicism to the soon to be realized (and collective) breaking point in faith.
At the point the real state of our broken markets come home to roost.
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-- Published: Tuesday, 28 October 2014 | E-Mail | Print | Source: GoldSeek.com