Economic turmoil is all around and it is not going away anytime soon!
What is driving this frenetic behavior is the desperate search for value. What has been the reserve currency for the world since 1944 is now naked for all to see. It is not a pretty sight! The mirage is gone and what is left is a hollow shell described as an exoskeleton of corruption and militarism.
The dollar has no real asset backing, it is purely fiat. What supposedly props up its value is confidence in the United States as a viable sovereign State. Gone are the Constitutional restraints which were designed to keep the nation fiscally responsible. Gone are the Constitutional restraints which were designed to keep the nation principled. Nothing is left except the fear of the threat of economic or military warfare. That is what holds up the value of the dollar around the world despite massive counterfeiting.
But since these military exploits and flexing of war muscles are dependent on borrowing from other nations and from counterfeit printing of money out of thin air the desperate victims of U.S. monetary hegemony are now beginning to question whether the U.S. is really that strong. And as the confidence in the U.S. goes so goes its fiat currency!
There is a solution. The solution is to abide by the Constitution which was inspired by the philosophy of classical liberalism.
Which means that the solution is to get rid of all of the politicians who violate their oath of office every time they do anything that is not authorized in the Constitution. Violating their oath is sufficient grounds for their removal by impeachment, through elections, or by trials for treason if necessary.
For more information go to http://www.divineeconomyconsulting.com .
Sunday, April 27, 2008
Monday, April 21, 2008
A Penny Bank Run!
What would it take to bring the banks to their knees?
Go to the bank and ask for your money, all of it or a portion of it, but request payment in pennies!
The reaction of the bank teller and the bank manager would be the same as if the bank was insolvent. You will be told that you can only extract a portion of what you requested.
If everyone then came in to extract that same portion in pennies the bank would have to close.
How fragile is the monetary system if banks would be forced to close their doors simply if people asked for a small percentage of their deposited money to be paid in pennies?
Who is to blame for this disgraceful condition? The Federal Reserve system and the politicians who use the central bank as their counterfeiter.
For more information go to http://www.divineeconomyconsulting.com .
Go to the bank and ask for your money, all of it or a portion of it, but request payment in pennies!
The reaction of the bank teller and the bank manager would be the same as if the bank was insolvent. You will be told that you can only extract a portion of what you requested.
If everyone then came in to extract that same portion in pennies the bank would have to close.
How fragile is the monetary system if banks would be forced to close their doors simply if people asked for a small percentage of their deposited money to be paid in pennies?
Who is to blame for this disgraceful condition? The Federal Reserve system and the politicians who use the central bank as their counterfeiter.
For more information go to http://www.divineeconomyconsulting.com .
Sunday, April 6, 2008
Economic Whirlpool Caused by the Political Cesspool!
Every day the news about the economy is shocking for one reason or another. It is enough to make one’s head spin.
Combined with the mixed signals of the data reported by the empiricists are the explanations of the spokespersons of economic statistics. Their interpretations are mostly sterile, but really, it is propaganda most of the time. Anyone who thinks that this information (or misinformation) will be useful in decision-making is either a fool or is part of the political scheme of trying to enrich the political class by thievery. Regardless, the empirical data and the statistics and the analysis are all erroneous.
When does a recession become a depression? I will explain that in this article.
At some point the practice of pumping money into the credit system and the banking system causes a fracturing of the capital structure. All the malinvestment caused by the distortion of the interest rate begins to become evident as the scrambling for resources exceeds what was thought to be available. This is a significant part of the beginning of the recession. Also the over-consumption stimulated by the artificially low interest rates hits consumers in the face as an overburdening debt. Restrained consumer spending and business streamlining causes unemployment.
Monetary policy by the politicians (and their minions) leads to inflationary policies in an attempt to stimulate the economy, but what results is stagflation - high unemployment and high rates of inflation. This is the worst case scenario for what can be described as a recession. But it is not the end of the line!
The ‘perfect storm’ scenario is called a depression. In short a depression is when there are all of these same extreme recession conditions combined with a deflationary spiral. Money, despite massive pumping into the system, disappears!
I describe the depression as a whirlpool where the currents created by the interventionists become so powerful and misaligned that they generate a whirlpool where everything is sucked into the depression. Any actions taken by the interventionists simply add to the currents and intensify the whirlpool. The debasement of the currency manifests itself as hyperinflation and yet there is no credit available since there is no savings. Recovery is nil or strongly suppressed because alert entrepreneurship cannot decipher the mixed up signals. The depression will persist as long as the interventionists continue to feed the spiraling whirlpool with fallacious economic policies.
Are we currently in a depression or are we about to enter a depression? The forces unleashed by the interventionists are very erratic. It could be that one of the next actions taken by the interventionists will trigger the depression whirlpool. Who knows?
What we do know is that a depression is an exponential recession that cannot be stopped if what causes the currents is continually fed by the interventionists. Imagine the unstoppable pull of a whirlpool. What we do know is that the cesspool of interventionists (composed of politicians and their bootlicking economic advisers) are responsible for all economic disruptions, whether the disruption is minor or whether it is a major catastrophe like a depression.
What is the solution? The correct policy is non-intervention which is like getting oneself out of the water before the currents build so much momentum. Then the equilibrium forces that allow resources to become freed up will disrupt the vortex throughout its structure, dissipating the energy, lessening the swirl velocity, causing it to break into smaller eddies, and making the economy safe for entrepreneurs to re-enter, to diagnose, and to set their sails and forge a new direction.
That new direction that is necessary for prosperity and liberty is non-interventionism! In America a restored Constitutional Republic is what can prevent the economic destruction brought about by the ego-driven interventionists that are part of the political cesspool.
For more information go to http://www.divineeconomyconsulting.com .
Combined with the mixed signals of the data reported by the empiricists are the explanations of the spokespersons of economic statistics. Their interpretations are mostly sterile, but really, it is propaganda most of the time. Anyone who thinks that this information (or misinformation) will be useful in decision-making is either a fool or is part of the political scheme of trying to enrich the political class by thievery. Regardless, the empirical data and the statistics and the analysis are all erroneous.
When does a recession become a depression? I will explain that in this article.
At some point the practice of pumping money into the credit system and the banking system causes a fracturing of the capital structure. All the malinvestment caused by the distortion of the interest rate begins to become evident as the scrambling for resources exceeds what was thought to be available. This is a significant part of the beginning of the recession. Also the over-consumption stimulated by the artificially low interest rates hits consumers in the face as an overburdening debt. Restrained consumer spending and business streamlining causes unemployment.
Monetary policy by the politicians (and their minions) leads to inflationary policies in an attempt to stimulate the economy, but what results is stagflation - high unemployment and high rates of inflation. This is the worst case scenario for what can be described as a recession. But it is not the end of the line!
The ‘perfect storm’ scenario is called a depression. In short a depression is when there are all of these same extreme recession conditions combined with a deflationary spiral. Money, despite massive pumping into the system, disappears!
I describe the depression as a whirlpool where the currents created by the interventionists become so powerful and misaligned that they generate a whirlpool where everything is sucked into the depression. Any actions taken by the interventionists simply add to the currents and intensify the whirlpool. The debasement of the currency manifests itself as hyperinflation and yet there is no credit available since there is no savings. Recovery is nil or strongly suppressed because alert entrepreneurship cannot decipher the mixed up signals. The depression will persist as long as the interventionists continue to feed the spiraling whirlpool with fallacious economic policies.
Are we currently in a depression or are we about to enter a depression? The forces unleashed by the interventionists are very erratic. It could be that one of the next actions taken by the interventionists will trigger the depression whirlpool. Who knows?
What we do know is that a depression is an exponential recession that cannot be stopped if what causes the currents is continually fed by the interventionists. Imagine the unstoppable pull of a whirlpool. What we do know is that the cesspool of interventionists (composed of politicians and their bootlicking economic advisers) are responsible for all economic disruptions, whether the disruption is minor or whether it is a major catastrophe like a depression.
What is the solution? The correct policy is non-intervention which is like getting oneself out of the water before the currents build so much momentum. Then the equilibrium forces that allow resources to become freed up will disrupt the vortex throughout its structure, dissipating the energy, lessening the swirl velocity, causing it to break into smaller eddies, and making the economy safe for entrepreneurs to re-enter, to diagnose, and to set their sails and forge a new direction.
That new direction that is necessary for prosperity and liberty is non-interventionism! In America a restored Constitutional Republic is what can prevent the economic destruction brought about by the ego-driven interventionists that are part of the political cesspool.
For more information go to http://www.divineeconomyconsulting.com .
Tuesday, April 1, 2008
Giving More Power to the Counterfeiter - Brilliant!
What are the chances that the counterfeiter is not a criminal?
What are the chances that the criminal mind of the counterfeiter will not lust after more power?
What are the chances that the power-hungry counterfeiter will not use any and all power to amass wealth, extort the wealth from those under control, and to bribe the agents of the system?
What are the chances that the total corruption brought about by the counterfeiter will not be the embodiment of totalitarianism?
Thanks, George Bush and Hillary Clinton and John McCain and Barack Obama, for your mutual desire for increasing the powers of the Federal Reserve! You are all peas of the same pod, a rotten fruit of a single party system controlled by an amorphous hierarchy of plutocrats who have violated the covenant that we call the Constitution.
Yet you live in fear because you know liberty is beyond your reach and you know that Ron Paul has ignited that unquenchable fire!
For more information go to http://www.divineeconomyconsulting.com .
What are the chances that the criminal mind of the counterfeiter will not lust after more power?
What are the chances that the power-hungry counterfeiter will not use any and all power to amass wealth, extort the wealth from those under control, and to bribe the agents of the system?
What are the chances that the total corruption brought about by the counterfeiter will not be the embodiment of totalitarianism?
Thanks, George Bush and Hillary Clinton and John McCain and Barack Obama, for your mutual desire for increasing the powers of the Federal Reserve! You are all peas of the same pod, a rotten fruit of a single party system controlled by an amorphous hierarchy of plutocrats who have violated the covenant that we call the Constitution.
Yet you live in fear because you know liberty is beyond your reach and you know that Ron Paul has ignited that unquenchable fire!
For more information go to http://www.divineeconomyconsulting.com .
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