Monday, July 20, 2009

The positive aspect of Swine flu

According to several reports the Swine flu will also have an effect on the economy. Of course the enemies within will use this as an excuse to cover their own faults. “Oh, no it was not us, it was the Swine flu.” To a small extent this is correct and this is a very positive thing. Let me tell you why.

The world economy is in a much worse state than most of you realize. Not only has trade dropped significantly and unemployment is starting to reach 1930’s levels, but also GDP is going down and protectionism is growing. These facts are not really debated since even cornflake economists and politicians acknowledge it. But what you are not told is that things are even worse.

Firstly you need to know that GDP is not a very good measurement of either real wealth or the status of the economy; it only measures what is going on in general, not the actual increase in riches. If one, oh lets say, print a lot of money and borrow trillions of dollar and then spend all that money it will increase GDP (in our situation increase mainly stock-markets, which is why those are going up at the moment). However, the future decrease that should be measured (enormous debt accumulation) is not counted and furthermore the actual inflation (decrease in money value) has not been taken into effect. In GDP only “inflation” in regards to prices during the time of measurement is subtracted from the GDP-numbers. Since almost all this “new money” firstly reaches financial institutes and the government it means that inflation, in the short run, don’t grow as much. This is also the reason why central banks all over the world can artificially keep interest rates down for a while yet. Sooner or later they will need to increase interest rates significantly to avoid hyperinflation, but temporarily they can “stimulate” GDP “growth” through tricking people into keep borrowing. An increase in borrowing means that more people buy stuff they in reality cannot afford. Since it’s very cheap to borrow at the moment people – morons as they are – buy expensive things like real-estate and houses which in turn also increase GDP. All of this means that GDP numbers we read about and are told is “real” are, in fact, lower.

Are you with me so far? Because from here on out, it only get worse…

In GDP they also count services and, in affect, consumption. What your local politician and the central banks want you to believe is that an increase in consumption i.e. buying things; leads to an increase in services and more production and this equals higher GDP which in turn means we are getting richer. This is, of course, mainly a scam. Services can make our lives easier and help out with giving us more time over doing something else and, in this regard, services are a good thing. However, services are not the same is wealth; neither is a higher price a measurement of wealth. What you need to know is that wealth comes from production. If we want to be richer we need to produce more and/or faster and/or put in a lower effort in relation to production. Even if the production in industrialized countries per individual is very high today the total amount of production in relation to GDP is very low. In fact production in regard to the total economy has been decreasing and is still decreasing. In other words it is very hard for us to work ourselves out if this crisis. Instead “they” want us to borrow and spend ourselves out if the crisis, which might “work”, temporary, but as said; that is not wealth increase, only services and consumption increase which means that even if we halt the crisis we have actually created an even worse situation since the loans get higher and there is more money is in the system.

If you understand this so far, you now know that things can only get worse in regards to the economy, not better. But, of course, this is not the only problem. There is one even bigger coming to explode soon.

There is one thing in this world that can devastate entire towns, destroy crops, ruin a nation and bring forth the very worst elements in humanity. I’m not talking about wars or some influenza, I’m taking about hyperinflation.

Ever heard of the Weimar republic? Ever read about the money situation in Zimbabwe? If you read the newspapers today they talk about deflation, what “they” mean with that is lower prices, which in reality is a good thing. What our enemies are not mentioning, however, is where all the money they are using to finance all the stimuli and bail-outs really comes from. Some of it is borrowed money, but most comes from the printing machine. Yes, that’s right; they are printing money like crazies. When you increase the amount of notes and coins in the economy by many percent without having the correspondent increase in production all you are really doing is “fooling” the market and people that they have more money when in reality they actually have less money. So when trillions of dollars, pounds or Euros is just thrown out there, created from thin air, what do you think will happen?
If we look at the dollar - that is the world reserve currency at the moment - it was overvalued even before this crisis started. Thanks to China (and some others) that is buying American debt the value of the dollar is falsely kept up. And since the Obamination and his cronies are printing trillions of new dollars the value keeps dropping. So what will happen the day when no one longer wants to help the American scam? The dollar will close to collapse which means that the US debt will increases by lots which in turn means that all they really can do is print even more money! The only thing left for those in charge is the printing press. There is no real money left; the production rate is low, unemployment very high and interest rates already at zero. So only one thing to do: Print more money! This is what’s coming down the road and when the world reserve currency is collapsing and the US is defaulting towards its lenders, what will happen to the world economy? Yes, that’s right…

Now, back to the Swine Flu. The best thing that can happen is that we have a full bloody depression right now, not later. The further down this road we go, the worse its going to get. If the depression hits us with full force next year, as I have predicted, things will look much worse than today. So if this flu can increase the crisis and increase protectionism it might be the trigger that launches us into more despair and this is a good thing. The faster the depression hits us, the faster things go really bad, and the faster we also can get out of this mess.

If you think that the image that journalists are selling with tens of thousands dying from Swine flu is horrifying, just imagine what will happen when tens of millions are starving, unemployment reaches 25-30%, civil unrest hits the streets and we have food lines everywhere. Don’t kid yourself people, we are heading for a fall, the biggest depression ever seen is coming around the corner and if you have any sense of intellect you want it to hit now, not later when things are even worse.

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