Monday, August 1, 2011

Early quantum state phenomenon

Money, money, money...

Well, the lying continues. Go figure.

Been reading through papers this morning and even if we ignore the total phony stupidity of using the word “cut” together with yesterdays Demopublican budget agreement, we can find lots of other lies.

For example almost every article I can find referring to U.S. GDP numbers keep telling us only a fraction of the real story. Sure several journalists have finally (sic!) picked up on the downgrades of GDP which show a bad story, but none of them, - Not. A. Single. One. - point out the deficit spending that has been at 10-12% levels for 3 years also is part of the same equation.

This is very simple. Its basic math. Easy pluses and minuses. Don´t need to know differential-equations, don´t need to solve Fermat's theorem and you don´t need to go search for macroscopic quantum phenomena’s.

Let´s say the government is borrowing/printing to keep spending at a level of -% of GDP in deficits (in effect contributing to GDP) and keep increasing this every year at a rate of 2% and GDP is growing with 1%.

And what would happen to GDP if the U.S. suddenly withdrew that 12% of GDP in deficit spending they are currently running?

Uhuh!? hard? Impossible math to solve?

Although the latest years have been the worst, this has gone on for a long time. This while U.S. consumers have been overcharging their credit cards and productivity is in freefall. At the same time as the Federal Reserve have been printing enough dollars to fill up the Great Lakes. At the same time as the entire housing- and real-estate market is totally bogus. And at the same time as toxic assets are floating around just waiting for the crash.

I could go on, but after this tiny oversimplified exercise you should know two things:

1) The U.S. economy is crashing, burning, going up in flames and actually in a depression since several years.

2) Since U.S. have been and to large degree still is the engine of the world, you now know that anything crashing over there, will effect everything else.

Not that Americanos are alone in this. Many European countries are actually in a much worse condition. Focus have been on the PIIGS, but they aren´t alone in this debacle either. China is building entire cities no one lives in, only in order to keep GDP numbers up. Japan keep doing the same thing they´ve been doing for two decades now. Never worked before, but they´re still at it. And do I even need to mentioned the screw-ups in Africa and South America?

The debts have never been higher, not even putting all the wars of the 20th century together with the Great Depression (soon to be re-named into ´The Minor Depression´). The amount of fictitious and overstuffed derivates are at an all time high.

The world economy is in such bad shape that it’s hard to find anything from history even close to it. All it needs is a big crash, another war or a currency crisis and we´re off into that hilarious funny financial Armageddon I´ve been awaiting for the past decade.

Again: this is math. Easy simple math.

You know the thing journalists, politicos - “conservatives” and lefties alike - ignore. Well, not completely “ignore” really, many of them are fully aware, they just chose not to abide and act accordingly. How would they be re-elected if they told you idiots the truth?

However their world of consensus is falling apart right now though. The signs are there to see. Everything from certain countries refusing to print more money to China and Russia criticising the U.S.

Before they worked in unison, everyone printed and borrowed to “save us”. They did this in unison because if all of them do the same the comparison between currencies and debt stays about the same. Now they aren´t doing that anymore.

Despite what you may think about me I don´t want to go through the worst disaster ever stricken the modern world, I would love to put my head in the sand and pretend GDP´s are in the positive and that a budget deal actually cuts a bloated budget, but you see I think too much, I actually use my brain.

Time for you idiots out there to do the same.

Not much time left now.

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