Wednesday, December 19, 2012

How to destroy a country

If you borrow more money and buy more stuff you don´t need, I will appear! jey! 

We have seen this a few times now, not only recently, but over time as well. We know it never worked before and in fact it never will work either but constantly and ferociously our magnificent leaders try it again and again and again.

What I am talking about is of course trying to solve problems created by too much cheap credit with way too low interest rates and too much government interference with even more of the same.

Sweden is now heading down the same path towards the abyss as previously Greece, Spain, and all the rest went galloping down towards. Well, to be fair it is probably a road more similar to that Japan and the U.S. If time allowed it Sweden would face a stagnant economy with permanent problems and an ever increasing debt-mountain, just like the Japanese have had for a couple of decades and the U.S. have had for a few years. Sadly time won´t allow that happier scenario.

I say happier because we should be so lucky to only have a stagnant economy with sky-high debts and very high unemployment. But no, time is up.

I don´t really understand why so many out there keep allowing the elitists to repeat the mistakes of neighbors and previous rulers. In fact it seem like most of you even encourage it. Pundits, journalists and most economists certainly do, but the people too seem to live in a dream world far, far away where pink unicorns immediately appear when more paper money is printed, where the sky turn wonderful blue and gold sipper out from every stone instantly after we borrow more trillions, a world filled of wonders and shiny rainbows as long as we give government and banks more power.

Delusional idiots.

For once I would like to see politicians stand up and say;
“We are sorry, we messed up. We will however fix this now by doing the complete opposite of what has been done. We will cut government in half, allow the market to set interest rates, and we will tighten the grip of both our money supply and our banks. After that we´ll roll back all the laws and rules that we have put in place to obstruct you normal folk. Yes, this means much lower, and for a while minus, comes to GDP. It will mean that many will lose their jobs and homes, and plenty of businesses will go bankrupt. But in the end and after a few years of hardship and hard work, we will get real prosperity and real growth back. If you instead want The Greatest Depression, please ignore us and vote for someone else.”

That would be the truth and that would be the shinier happier road to take.

Our government printed trillions and gave it to big banks - look how happy we are! Jey! 

But reading comments online and seeing what a happy jump the stock market did when the Swedish central bank issued even lower interest rates yesterday, it chills my bones. I feel sick and disgusted.

Instead of fixing the problems they created and letting the market correct itself, instead of flushing out bad investments and get people to save again, the central banksters issued a decree that promises certain destruction - and this at a time when the entire world is going down the drain.

And the only thing commentators seem to care about is ´when´ (not if) the Swedish government will pour more gasoline on the fire by borrowing/printing and throwing such borrowed/printed cash into the economy. As if that’s the remedy to bring forth opulence and pink unicorns.

Anyone that understands finance and economy knows that in order to get real healthy investments you need savings. Without savings there are no investments, because there is no money to invest. From a Keynesian view government can step in and play the investor by borrowing and printing money and so get investments going in the economy, but in reality all such a scheme accomplishes is that the government takes future savings and future investments and put them to use today since the money borrowed has to be paid back (with interest) and any additional notes printed brings with it inflation.

Another thing people with working synapses understand is that we today live within a debt-dependent and an ever-increase-in-prices economy. Take away the debts and the constant price increases and the economy crashes. Automatically. As a matter of fact; if we took away all debts there would be no money. All money is created from, by, because of, and in order to increase debt. In essence anytime a government tries to do the right thing deflation, crashing real-estate markets and failing banks becomes a reality. It too is automatic. Or, to put it bluntly, if they do the right thing voters will riot and vote for the other guys. This is why every single government is doing the same thing. From their point of view, they have no other choice. It’s either eat the bullet now or pray and hope that something or someone will save them and the country. Left or right? Have no meaning anymore. It does not matter. All of them need to keep the banks solvent, keep prices going up and keep at least a fair amount of debt in the system.

It’s a failed Keynesian system built around the idiocy of Fractional Reserve Banking.

Only if you vote for the same parties as usual, then this is our happy future together! 

It’s not really socialism, although it often leans in that direction, and it’s not capitalism. It’s a highly regulated; government controlled market economy wherein the big banks rule supreme and the ´Too big to fail´ control the pawns. And with a constant increase in regulations, the roll-out of the surveillance society, and the escalation of our problems going forth towards a very shaky future, the closest ideology becomes Fascism.

But regardless of what label or ideology you wanna put on it, the reality is that we´re inside the biggest shit-storm in human existence. There are no magical formulas; there are no government programs, there´s no savior waiting behind the curtain – this is it, this is The Greatest Depression.

I hope you all enjoy the show – it’s going to be fabulously gory and magnificently disastrous. And sadly Sweden won´t be saved, the central bank has seen to that. 

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