Saturday, January 2, 2010

The devil you should know

Sadly most people don’t understand or, rather, don’t want to understand basic economics. This means that most people haven’t a clue what’s really going on within politics, why recessions happen, what happens to their purchasing power and their salaries. You all need to know.

As long as you’re oblivious to the facts they will continue to lie, cheat and steal from you.

There’s no way around it, either you except ignorance as blissful or you try to understand how much they are screwing you.

And to really make you understand how essential this is, I can tell you am absolutely sure that if a large portion of the general public really knew there would be rallies each weekend, politicians would be shoot on a daily basis and parliament would either be burned to the ground or be surrounded by military forces. And no, I’m not kidding. If anything this is an understatement.

The first thing you need to understand is that economy isn’t magic, it’s not any form of trickery. It’s fairly simple. This the elitists don’t want you to know; how easy it is to see through all the crap they are saying. Basic understanding of finance and how the economy works don’t take much of your time, you don’t need a degree or work at a bank to grasp the basic facts.

The basic facts.

- Deflation is basically a good thing
- Inflation means higher prices, and higher taxes and that you need to work harder but gain less
- Low interest rates may temporarily “help”, but always, without exception, makes the economy worse.
- No government can create jobs or wealth.
- 1+1=2 and 2-1=1

There are a lot of other stuff like M:(1,2,3,4) trade and such, but the points above is all you really need to know, with one exception; GDP (BNP in Swedish).

Let’s start by looking at how GDP is normally calculated.

GDP = private consumption + gross investment + government spending + (exports − imports), or,
GDP = C + I + G + (X − M)

What the equation tells us, among other things, is that if Government spends more, GDP goes up. You probably get this, but what you need to know is that it doesn’t matter what they spend money on. It can be daycare, roads or flowers, it does not matter. According to GDP-calculation it is beneficiary to have people dig holes in ground, fill them up again, and do this over and over. In fact, this is what government often does, not directly, that would be too obvious, but through other schemes like “investigations” or useless government programs to hide unemployment. An investigation takes manpower, costs money and often leads to conclusions a monkey could tell us beforehand. Anything being done to cover up people’s lack of jobs also cost money. Actually it may cost more, in essence contribute more to GDP, then if people in fact had productive jobs.

The same goes for private consumption. The more we shop ‘till we drop, the higher GDP. In the eyes of Keynesians and our enemies it means that the more stuff you buy, the better. If you borrow, use your credit-card or work to get that money to spend is irrelevant, what matters is GDP. Sometimes you can hear one or two voices claiming that savings are too low or that there is a difference in what we actually consume, but those are very few and not nearly as interesting for the media to quote.

If you’re with me this far and now understand why GDP is so important for the elitist agenda and why that measurement, to a large extent, is a fraudulent way of thinking, then you should already have started pondering on what gun to buy. Keep that thought, because it get a lot worse.

Inflation VS deflation
Many economists claim that deflation is the worst thing that can happen, which is, of course, totally false. Deflation - meaning lower prices - is a very good thing and a cornerstone in any healthy economy. If we produce more, faster, and better then prices should go down, even when adjusted for pay-increases and profits to stock-holders. Deflation – meaning the value of money goes up – is also a good thing since we need less money to pay for goods and services.

With this said; do you know what our enemies real concern is? Deflation may “prevent monetary policies from stabilizing the economy” because of a mechanism called the liquidity trap which essentially means that central banks and politicians lose control of the economy.

The “problem” economists (and their fellow criminals) see, and what also is one of the reasons for the massive bail-outs and stimulus packages being thrown everywhere, is that deflation is said to cause “credit-crunches” (really another word for liquidity trap). What they mean is that less money in the system leads to people buying less hence we end up in a recession, and/or GDP goes down because less money exchanging hands means lower GDP then if more money changes hands. This is, of course, not true.

You need to remember that money is useless pieces of paper we use as exchange-goods. Whether the name is “idiot-money” or “dollars” has no meaning whatsoever and so hasn’t - if all else stay the same - what it says on the note. If the note say 10, 20 or 100 is irrelevant, what is relevant, however, is what you can buy with it.

In order to combat the horrifying deflation and get people buying stuff again, central banks and politicians have decided to use Gutenberg’s marvel; the printing press! Basically what they are doing is throwing money into the system which, partly, according to above, is meant to get spending going again, but it is also partly to pay off debt (or increase income) and this in two ways.

The first way is that they use newly printed money to pay off loans. More specifically, in our situation, they are printing money to loan money on. Sounds strange don’t it? The government prints money and says; “Hey you, come buy our country’s debt”. Often they even buy that debt from themselves...
Putting aside, for a moment, the inflation growing from this bamboozle, it also means that all the money pouring in might trigger some illusions that get spending going. Since most of this money first goes to banks, financial institutes and the government it means, among other things, that - ta-dah! – prices on stocks go up! Surprise then that many stock markets are overvalued with around 40 percent at the moment, don’t you think?

But the real deception isn’t how they trick markets with fictitious money printed out of thin air, oh no, not at all. The real scam comes from how the money loses in value. You see, whenever there’s more of something then before, each piece becomes worth less. If you double the money supply you’ll effectively reduced each note’s value with 50%. If we at any given moment increase the number of notes in the economy this happens, however, the taxes stay the same…

Did you get that?

Do you understand?

If the value of each note reduces in value it means that prices go up and we get the salary-price-spiral. But since taxation is based on prices and the number of notes you earn, it means that taxation also have increased. It’s a hidden tax, and this is the other reasons why our enemies, the politicians and other elitists don’t want you to know what inflation is.

Ever wondered why our grandparents could survive on one job per family while we today hardly can manage with two? This is why.

What do our masters do?
Like crazed cardiologists journalists and politicians are rushing out to declare that the heart is beating again. In complete unison with cornflake economists and a bunch of oily businessmen they are solemnly affirming to the public that the economic crisis is easing off. Sentences like: “There are green shoots in the economy” and the hilarious: “The recession is easing off”, is spreading across the globe by the same mainstream media and the same spokespersons that just a little over a year ago said that nothing is wrong and the economy is fine. They were wrong then and they are wrong now.

Our enemies are on the warpath trying to bamboozle us one last time before the inevitable collapse. Oh, what they are trying.

Don’t kid yourself people, it’s a firesale going on. They are trying to milk us one last time - transferring control and money into the hands of the few, in essence allocating power for what’s to come. Certain banks are using their (yours) bail-out money (freshly printed and/or borrowed which you’ll be paying back for generations) to purchase large portions of the economy, privileged companies are putting up securities as walls against an unsuspected populace, and politicians are doing their part in making internet, the last bastion of freedom, into their fascist playground.

While stupid borrowers are indebting themselves the printing-press is going clickety-click day and night, effectively transforming the common man into a duped underprivileged state-controlled hobo.

Take a look at the banksters whom are resuming their carefree habits from the days of the credit boom leading up to our current debacle. Now they are back with a bonus-vengeance and this during an unprecedented money boom curtsey of banksters and elected criminals in suits. Again they are lending out to people that shouldn’t have any loans, again they are throwing money around and again the low interest rates are creating bubbles while very cheap money is handed out like candy.

And how do they manage all this? - With inflation and borrowed money.

And, again, you’re paying for it!

If you’re not clear about the string of events here you’ll better read it all again from the start or take a look at this:

Government create inflation and borrow money in order to increase income so they can bribe constituencies to re-elect them -> bubbles form in the economy, worker income decline, prices go up –> government intervene to “help” people against higher prices -> some crisis emerge -> government print more money and borrow even more -> the cycle starts over again.

This cycle is bad enough, but government has many other tricks up their sleeves. If we look at what happened recently several governments had created lending-institutes to keep spending up according to the mad GDP-scheme talked about above. They also decreased interest rates for the same reason. This enhanced the problems and inflated the bubbles many times over before it collapsed. The solution? You guessed it; print more money and borrow a shitload more.

With all this in mind you can either sit back and wait for the next collapse that will dwarf the smaller recession we’re in now, or you can go out and get that gun you should be longing for by now.

The next crash will occur very soon, within a year or two. From the heights our bubbles has been inflated to now and from the amounts of printing and borrowing that now, today, surpasses anything in history it will lead to the worst depression ever seen. And this is what happens when you don’t know what’s going on and let the elitists run the show.

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