The word "general" in the early 1900s referred commonly to the Federal Government. J Edgar Hoover referred to the federal government as the "general government", and the DC offices as the general headquarters The capitalists at the time were all-in on the emerging fascism, and thus named their companies General Electric, General Tire, General Insurance, General Foods, General Motors, etc...
These companies benefitted most in times of inflation, even opening their own banks to ever get closer to the advantage of first receivers of "new credit" and indeed begin creating their own.
So when General Electric decides to sell off its finance side (to Wells Fargo, desperate to get way too big to fail...) this is news and a recognition that deflation is here.
Ever heard of this?
These guys are simply saying "No thanks, we'll take an+archy, no+king, and do much better on our own than with your offers and capabilities."
Expect GE to no longer have a usury-based, asset-less back credit arm, but begin again to offer asset-backed, interest-free vendor financing.
1. The longer it takes to get paid, the harder the "money" is which you receive.
2. They cannot tax money you have not received. This move will keep GE from the tax collector, and GE will manage receivables to that end.
Accounting will go through a sea-change too.
They are welfare queens, but they extremely smart ones. Watch them, for they point out the way. These guys know what is what and make their moves regardless of government. Recall when Boeing knew perfectly well there was nothing else in the State's welfare purse for Boeing, Boeing simply moved to Chicago:
Pled to no avail. Why would Boeing bother to inform anyone in government? Government is theatre, and when it can no longer provide bread and circuses, and chaos sets in, the smart escape to anarchy.
Feel free to forward this by email to three of your friends.
These companies benefitted most in times of inflation, even opening their own banks to ever get closer to the advantage of first receivers of "new credit" and indeed begin creating their own.
So when General Electric decides to sell off its finance side (to Wells Fargo, desperate to get way too big to fail...) this is news and a recognition that deflation is here.
Chief executive Jeff Immelt intends to sell the bulk of GE Capital, the company’s finance arm, over the next two years in the most radical shake-up of the company in at least a decade.And more like 50 years. In fact, it is one huge destruction of credit capacity, meaning it serves to accelerate deflation. Even the welfare queens know it is time to get back to work.
Ever heard of this?
However, he warned that the impact was likely to be felt in the longer term, because the plan hinged on regulatory approvals and GE Capital losing its designation by US regulators as a Systemically Important Financial Institution.GE had been selected as too big to fail. "Systemically important financial institution" is government bullshit for "too big to fail." What system? Whose system? How do you define "important?" In what way is it financial, and not force and fraud? They have already set out who is to be bailed out. And says Jack Welch:
Former GE chief executive Jack Welch, who has at times been critical of his successor, was quite positive on the move. He wrote to CNBC “I like the package. It looks like a smart move and right for the changing financial landscape.”This means some of the most connected, experienced smart people out there know that what the government has to offer in the coming decade in way of "help" will actually be quite harmful. Anyone who will rely on that will end up badly. The FEDS do not have the tools necessary, can only effect what is good by going away, and what they will do will be disastrous for many.
These guys are simply saying "No thanks, we'll take an+archy, no+king, and do much better on our own than with your offers and capabilities."
Expect GE to no longer have a usury-based, asset-less back credit arm, but begin again to offer asset-backed, interest-free vendor financing.
1. The longer it takes to get paid, the harder the "money" is which you receive.
2. They cannot tax money you have not received. This move will keep GE from the tax collector, and GE will manage receivables to that end.
Accounting will go through a sea-change too.
They are welfare queens, but they extremely smart ones. Watch them, for they point out the way. These guys know what is what and make their moves regardless of government. Recall when Boeing knew perfectly well there was nothing else in the State's welfare purse for Boeing, Boeing simply moved to Chicago:
Seattle's mayor, Paul Schell, said he was ''totally blindsided.''
The state's governor, Gary Locke, describing himself as ''surprised and deeply sorry,'' said loss of the headquarters ''leaves a void in our economic and cultural life.''
Both pleaded with Boeing to reconsider.
Pled to no avail. Why would Boeing bother to inform anyone in government? Government is theatre, and when it can no longer provide bread and circuses, and chaos sets in, the smart escape to anarchy.
Feel free to forward this by email to three of your friends.
2 comments:
Another example of credit deflation leading to price deflation. Here credit for an asset type dries up and that asset rapidly deflates.
http://www.nytimes.com/2015/04/11/upshot/new-york-taxi-mogul-seeking-a-bailout-says-hes-too-big-to-fail.html?
The banks then come in, take the businesses' assets backing the loan, and sell them at a fire sale--further forcing deflation.
Maybe this will be an overall pattern? Specific asset categories that had access to credit such as housing, big business, farm land, stock market, will experience massive deflation even while there could be a general pattern of inflation from the FED as it tries to print more money.
And if so, how to play it? Sell now at the top, especially to Chinese or Russian hot money land-bankers... but with a 5 - 10 year lease-back, and right of first refusal (lease-back is a tax write-off, so it lowers your tax bill) ... right of first refusal comes into play when the Chinese have to unload the property at a fire sale price in the next ten years... let someone else come in and make an epic bona fide deal... then you step in and take the buyer's place due to your option. Sell for a million now, buy it back for $250,000 in five years.
That would be the play, if deflation is happening.
John
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