Sunday, August 23, 2009

Debunking more lies

A couple articles in Swedish newspapers today is talking about the current depression and how things are “turning around”. As usual without any sense of reality or basic understanding of math, so lets debunk those shall we?

1. Germany and France are out of the ‘recession’
Not true. You can read how I already have revealed that lie here. Basically what have been done are three things: One is that those governments have thrown billions at the car industry and since all that cornflake economists are looking for is higher GDP, they have succeeded. Not taking into account that this is a fictive run or that this means that people that soon might have bought a car anyway now wont. Another reason is that trade surpluses can be shown which makes up almost half of both countries GDP plusses. The third is lots of different useless government projects, mainly on borrowed money, that also increases GDP. All of these numbers are consequently manufactured, not actual increases in wealth. And what will happen when those government programs runs out? Although, granted, France and Germany is in better shape than many other countries, one cannot say they are out of the wood, that’s a lie.

2. Japan is out of the ‘recession’
Japan is living almost entirely on trade surpluses, mainly to China that, as mentioned, is living in a fictive world of boom and bust. You can read about my earlier debunking of that travesty here.

3. A fall in Real-Estate prices in the US
I don’t really know what they got those numbers from, although true that the prices has fallen slightly lately the levels are still way to high and as foreclosures and defaulting is reaching the highest levels in history at the same time as new developments never before have been this low it is hard to see the positives. You can read more about this lie here.
Also, as mentioned in that link, the commercial real-estate bubble is about to burst. With interest rates at zero and lots of cheap fiat money available the real prices are much much lower.

4. The psychological financial climate has changed
This is partly true. With trillions of freshly printed dollars in circulation the financial institutes are doing insider trading, and gambling on a rising stock market for future gains. Many banks are also showing profits for the first time in a year which further increases the madness. Here you need to know that many banks, almost all of the important US ones, are double-dealing and lying about their numbers. Every time a fallen bank has gone bankrupt, the value is written down 25%-30%-40% and even over 50% which means that ITS ALL A LIE! If there is this much overvalue in many banks, not just American ones, we have enormous bubbles developing. The entire situation is totally absurd. Almost all that money that governments and central banks have thrown into the system is going to financial institutes whom then (as before and during the crisis) fictively increase their own value and put much of that money to use at the stock market that increases stocks even further. This is the mother of all bubbles and if we were to crash from these levels down to depression numbers, which we in all likelihood will, it will make the “Great Depression” look like a walk in the park.

5. The credit crunch is easing off and people are borrowing.
This is crazy at so many levels its hard to know where to begin. First of all the total debts levels are reaching such heights its ridiculous. Many countries have total debts of well over 300% of GDP! Never before in history have such debt accumulation been seen. Not even if you put the first and second world war together we reach up to our current levels. Can you imagine that? If you really comprehend this madness you are probably laughing as uncontrollable as I am.
But, of course, it doesn’t stop there. Because most of the money we borrow is already borrowed and indebted since it comes from *drum roll* the printing machine! Looking at history, not even Zimbabwe started with these levels of printing. But even this isn’t enough. We have also the fun fact that interest rates are already desperately needed at much higher levels. In a real market economy the rates would be around 5-10% now depending on which country we are talking about. So what do you think is going to happen when interest rates eventually goes up if you look at all those suckers that has borrowed indebted money to buy things they in reality cannot afford? This scenario might be frightening and should make you start piling up dried-up food packages, but add to this equation what I wrote about banks further up and you will start to realize what I and many others have; we are soooo screwed that it dwarfs anything from human history. We have never been in this much trouble - things have never before looked this bad.

6. We can recover despite high unemployment
Some politicians have claim we have a jobless recovery. Wtf!? So unemployment levels in double digits aren’t a problem? People having no income in addition to further increases on welfare expenditures aren’t a problem? People not able to pay back their loans or mortgages are a good thing? More demonstrations or even civil unrest is fantastic? What world do these people live in? Idiots!

The final things you need to worry about are those things that haven’t happened yet. What I mean is what if oil-producing Venezuela ends up in a war with Columbia or USA’s military attacks oil-producing Iran? What if China has a real rebellion? What if a terrorist attack by nuclear or chemical weapons strikes London? What if Russia starts cleaning house among the old Soviet states? The possibilities for such events are endless and mark my words, one or several of the mentioned or similar ones are in the works at the very time you read this. And if such an event takes place, what will that do to the world economy?

Please take notes. Every journalists writing this crap and every economists that is trying to fool you should be on you future hit list. All our politicians, with very few exceptions, from left to right, are liable and should be hold accountable. There is no recovery, it cannot happen. Even if fictive numbers and temporarily gains can be shown - it’s all a lie! We cannot recover until we have changed the way we live and throw out the old order as well as the coming new order. We need a fresh start and that will not come from above, its up to you, the average man, you are the one that might turn this around. I don’t think you will because there are no heroes left in the world, but if you don’t, there will be no end to this madness.


  1. Daniel Bergh, SwedenAugust 24, 2009 at 9:09 PM

    Thanks for taking the time to break it all down for us. Much appreciated. Since the papers do not stop to publicise these lies it's important to debunk them over and over again.

  2. It almost seems like a plot doesn’t it? I know journalists are lazy ass-holes, but there should be at least some of them that actually wants to show the truth, you know, being a reporter…