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Since the early 1980’s the US economy began to morph back into the same shape as the one that preceded the Great Depression. Only this time the BUBBLE economy became an amalgam of many more, and much larger, bubbles than inthe 1920’s. The dot.com bubble burst at the turn of the century is only a small example of this phenomenon, but also an excellent illustration of what would follow.
The Bubble Burst of 2008, 2009, and 2010 have their roots in the same forces and dynamics of those that contributed to the Crash of ’29. Only this time there exists a conspiracy of circumstances that simply overwhelms the imagination as much as it challenges credulity. For starters the overall economy today is exponentially larger than ’29. The sheer number and variety of financial instruments is likewise so much greater that ameaningful comparison is practically irrelevant. Globalization has created a much more complex world economy that has completely blurred national boundaries, created an imperceptible financial superstructure, as well as an economic infrastructure, which inextricably intertwines the commerce of all nations.
The convergence of these co-factors, together with the agenda of the underlying control matrix that runs through all of the financial and commercial capitals of the world,have given rise to the Mega/Ultra/Super BUBBLE of 2009. Add to this mix a past and present Federal Reserve Chairman who both very purposely and deliberately encouraged the formation of one bubble after another – in real estate (residential and commercial),stock, bond & commodities markets (relaxed margin requirements as well as critical regulation), currency and, of course, derivatives, Derivatives, DERIVATIVES. Through formal and targeted policy adoption, as well as selective policy cancellation, a highly conducive environment was systematically massaged and methodically finessed into place so that ONLY ‘bad’ things could happen. Since this overarching scheme was meticulously sculpted, orchestrated and implemented over a twenty year period, and well after the original bubble should have burst in the first place, onestarts to get a sense of proportion and begins to see the enormity of the events that we are facing. This is HUGE ! ! !
Now it is extremely important to understand, as well as highly instructive, just how this state of affairs evolved. The operative words that well describe the MO of all who had a hand in its creation, onceagain, begin with “D”. The handiwork of those responsible will eternallybe known for its (i) DECEPTION (ii) DUPLICITY; (iii) DECEIT & (iv) DOUBLE-DEALING . At every level of formulation and implementation of the aforementioned policies were these 4 dubious characters employed with perfect timing and great cunning. From the US Senate to the US House, from the POTUS to the SCOTUS, from the SEC to the FTC, from the Federal Reserve Bank to the Bank of England, fromthe last of Wall Street Investment Banks to the still standing(?) major Commercial Banks, from the Big Four Auditors to the Big NYC & DC Law Firms, from the K Street Lobbyists to the Military/Industrial Complex, they were all materially invested and substantially involved in this CON job of the millennium. From the NYSE to the NASDAQ, from the Dow Jones to the S&P 500, from the WSJ & NYT & WASHPO to FORBES & FORTUNE & FINANCIAL TIMES, from Bloomberg.com to CNNMoney.com, aswell as the rest of Corporate America, they all enthusiastically participated in the making of this bubble of BUBBLES. That’s right, the one that’s now deflatin’ faster than you can say The Hindenburg.
Really, thicker than thieves says it better than anything else in the English language.
So many hands in this cookie jar at once it gives newmeaning to sleight of hand, doesn’t it?! Really surprising they went through all the effort as the jar has been empty for so many years! One has to really stretch to wrap one’s mind around the degree and profundity of so much intentional fraud, systemwide malfeasance, misappropriation of any fund with value, routine embezzlement ofthe public purse, outright theft from every retirement fund within reach and looting of any national and corporate treasury in sight. From the US Treasury, to the US taxpayer, from 401K’s to Keough’s and IRA’s, Pensions to Annuities, from CalPERS to NYSLRS, savings account to checking accounts, from central banks to piggy banks – nothing has been spared a fleecing by these four very dubious con men. We mean nothing. And if you think something has somehow escaped, it just hasn’t happened yet. Or maybe you haven’t yet figured it out.
You see bubbles don’t just happen, and then somehow deflate; they were created by an extraordinary amount of institutional misrepresentation and fabrication from officialdom. Given this dynamic, each and every player in the game is a party to the process. If we “buy into this game”, aren’t we culpableas well, although perhaps to a lesser degree. We’re quick to take our profits, count our days to retirement, check outthe IRA balances, add up our quarterly dividends, calculate our annual appreciation, assess the pension plan and on and on, never really contemplating how we, ourselves, have benefited from the bubbles. How the bubbles have grown so fast, or why the get rich quick schemes never seem to lessen is rarely considered by thebeneficiary during the good times. Truly ,the $64 question is, and always has been, “Where is all of this unearned money coming from?!?”
What does all ofthis have to do with the current DEPRESSION through a downward deflationary spiral? What isn’t allowed to burst due to inordinately high pressure will inevitably deflate by way of a steady and sometimes quickly accelerating downward spiral. Let’s see now, it starts with decreases in price, which will then lead to lower production, which will cause lower wages that will then translate into lower demand, which will again cause prices to come down even further. This economic vicious cycle, which inevitably occurs when a systemic problem exacerbates it own cause, is merely a protective mechanism that ensures that the entire hopelessly flawed system will ultimately end in failure. And so it has.
Now, all we can do is sit back and watch therelentless erosion of every economy on earth through deflationary downward pressures, and all of its consequent stages of devolution. The fungus of deflation will guarantee that every national economy will deteriorate. This most pernicious variety of deflationary mold is known for the manyphases of deterioration it brings upon the host nation, so we know there will be periods of both hyperinflation and stagnation, mini-booms and maxi-busts, commodity-specific buying sprees (e.g. gold) and unprecedented market blowouts, runs on the banks and flights to foreign currencies. In the end, the nations of the world will be thoroughly decimated by the plague known as deflation. The economies of theregional financial unions/economic superstates (e.g. European Union) will be particularly vulnerable to the extent that they chose to play this game of BUBBLE monopoly (see the EURO).
The planet is hardwired by one, and only one, global money matrix. Although seemingly diverse, there is inreality, only ONE worldwide financial architecture. It has been purposefully designed, fastidiously engineered, painstakingly constructed, and put into place over many centuries, everywhere national economies have been born and died. Likewise, the planetary economic landscape,which once upon a time sat on a fairly seamless and monolithic bedrock, has been shattered and pulverized so much throughout the past 100 years that it is now a mere desert of shifting sands.
It’s an extremely unfortunate fact of modern economic and financial life that when there is a tremor in the City of London, countries like Iceland get hitwith a 100 foot tsunami prior to a 10.0 earthquake. Conversely, when the US sub prime mortgage market tanks, small towns all over the world can go bankrupt, just as small nations can go under, because of their investments in things like CDO’s. When the American consumer stops buying, China has just lost its largest customer, as well as a huge and highly profitable marketplace in which to dump its many toxic wares. This is how national economies are so tightly interwoven in the postmodern age. Because they share the same warp and woof of all that binds them together economically and financially, they will descend together into this GREATEST DEPRESSION of all time.
“HUMPTY DUMPTY HAD A GREAT FALL”
We sincerely regret that we paint not a pretty picture through this assessment of the future. In all likelihood, it is a picture that will only get uglier in the short term, especially by the looks of the day to day deteriorating circumstances and developments. Just as our friendly investment broker, Mr Madoff, made off with all the goods and ensured they conveniently foundsafe haven abroad, so too will many others at the top of the food chain do the same. This is, after all, the last phaseof self destructive capitalism eating itself. The dog eat dog world willnever have more relevance than now in the upper echelons of global financial decision-making and implementation. Every day seems tobring to light a new drama in the realm of international finance, especiallyfor once highflying investment fund managers and hedge fund crackerjacks.
At the national and regional levels we can point to numerous conflicts as evidence of “Free Market”Capitalism experiencing its final death throes. Certainly the economic warfare being waged against Russiais demonstrative of the desperation of those who would maintain the energy status quo. As is the financial battleground that Iran has found itself on because its oil bourse and oil revenues. Of course, Iceland has already become a victim of this hoity-toity cannibalism having recently been eaten by the UK, just as Ireland, Spain and most ofEastern Europe are about to become victims of the European Union. Then there is the Dubai Multi-Commodity Center challenging allthe traditional commodity exchanges that have been routinely and flagrantly fixing the prices of gold, silver, platinum and the like. Let’s not forget Venezuela and Bolivia and a handful of other South American countries taking on their former North American taskmaster and its corporate thugs. Zimbabwe has surely taken a beating ever since they confiscated the land that was once theirs from the recently evicted British landsqatters. Likewise, Iraq, Sudan, The Congo, and Nigeria have all been the site of violent confrontations between those who want resources byforce and those who actually possess them. Even Mexico, like Columbia, has had a very rough time lately in its attempts to secure and efficiently transport the various commodities that comprise the illegal drug trade. What just happened in Gaza is a glaring example of what certainstates will do for more land. The whole of Palestine, of course, has become the victim of a modern day land grab that is at the very heart of the ‘free market’ philosophy.
The real war,however, is the oil & gas revolution that’s been simmering between the Saudis (OPEC) and the Anglo-American juggernaut. The skirmishes on this battlefield have been fastand furious and may very well be the shot heard around the world when it breaksout in the open like the recent conflict between Russia,the Ukraine and the European Union. The slaughter inSouth Ossetia by Georgiawas just a small example of just how much self restraint will be required by the Russians to avoid a full blown theatre of war from developing. No one can deny that these are heady times!
Just how bad willit get? Well, since many of the practices of our current fascist corpocracy, as well as the kleptocratic oligarghy, find their roots in Imperial Rome, we might look there to see what might lie around the corner here, that is, if they are allowed to go unchecked. As long as they continue to define free market as free and unfettered for themselves, but at a cost – often severe– for everyone else, there will be unparalleled friction. The good news is that we are now at the endof a long and arduous age, and at a point on the evolutionary spiral wherethere is significantly less karmic slack – for each and every global citizen. Therefore, the divide and conquer strategy will not only no longer work, it will boomerang on all who attempt to use it to their advantage.
