By: Clive Maund: The acute
global economic crisis today is the direct result of the continued
wilful obstruction and overriding of the normal checks and balances that
should operate within a capitalistic system of commerce. This
interference has been perpretated by powerful banks and governments
acting in collusion, for reasons of profit and power. At every instance
in recent years when it looked like the economy was slipping into a
necessary recession they have assumed a godlike role and stepped in to
head it off. These periodic recessions are necessary to prevent excess
debt building up within the system, but the banks liked the ever growing
debt, because it meant ever bigger profits for them as they created
money out of thin air and then lent it to everyone and everything and
raked in massive interest payments. Being immensely powerful they
exerted more and more control over governments and succeeded in bending
them to their will, culminating in them "coming out" by actually maker
bankers into Presidents and Prime Ministers, as has recently occurred in
Greece and Italy. So there you have it - the world is now controlled
and governed by bankers. The problem with this situation is that their
objectives, which are the accumulation of ever greater profit and power,
are at odds with those of the population at large.
The
reason that things are coming to a head now is that global debt has
grown to such gargantuan proportions that the parasites, the banking
elites, are now killing their hosts, which is everyone else - Federal
governments, State governments, businesses and ordinary citizens.
Even
the parasites realize that if they kill their hosts, their profit
potential is going to be reduced, which is why they have clamped
interest rates in interest years - the hosts are totally maxed out on
debt and the idea of the interest rate controls is to allow them just
sufficient resources to survive, while siphoning off as much profits as
possible from their labor. To put it in a nutshell, the banks are
farming the world for huge profits, and reducing the global population
to a state of feudal serfdom - rather like some sports shoe companies
have done with their laborors in places like Indonesia.
The
situation has now become dangerously unstable, because everyone and
everything is maxed out with debt, which we should not forget is
frequently leveraged to far greater extremes via derivatives, and in
many instances victims have gone way beyond their capacity to repay.
This can only mean one of two things - default or repayment or servicing
of debt in devalued coin. In such circumstances it only takes some
spark - a catalyst - to bring the whole system crashing down, what we
might term a "gigantic global reset", which is actually necessary and is
going to happen as a deflationary implosion, or happen later as a
result of accelerating QE via hyperinflation and its resulting economic
wasteland. That catalyst is Europe. The discordant buffoons running
Europe have created such an unholy mess that it is unravelling at
extraordinary speed. Realizing that their creditors are not going to be
able to repay them, the banks are scrambling to push the bill for their
excesses onto governments and taxpayers via bailouts and austerity
measures, which they are able to do because of the power they wield over
politicians, many are who are severely compromised. The citizens of
Greece and Spain don't need to be told that a deflationary implosion is
already underway in their countries, with a vicious circle of falling
productivity and reduced tax revenues well underway that is getting
worse and worse, so the austerity measures look set to backfire on the
bankers and their political representatives. If these austerity measures
and associated deflation spread we are looking at a global depression,
since Europe is the world's biggest economy. European leaders, which is
to say Central Bankers, are well behind the curve with this and need to
get cranking the QE money pumps without delay, in order to put off the
onset of depression. This will buy time, and is thus the most attractive
option for them, but will still lead to a collapse that is first
preceded by hyperinflation.
What
is set out above is "The Big Picture" of the world economy. The world
needs a long and deep depression in order to purge itself of excess debt
and the distortions, inefficiences and misallocation of capital
resulting therefrom, and it is going to get it, QE and hyperinflation
first or not. All the daily noise in the media about the Greek election,
or any elections, or the hyped up Fed meetings and pronouncements, or
what Mrs Merkel thinks and says etc is just irrelevant fluff, detail and
distraction for the unthinking masses, and ultimately is not going to
avert the grim outcome of this appalling mess. Not until all this debt
is repudiated and the world has gotten the usurious banking system off
its back, with its tentacles reaching deep into government everywhere,
will the world be able to move forward again. Then at long last we will
be able to hail the return of true capitalism and the free market.
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