Now recall these fantastic sums are merely nominal.
Why so? Schools have too many revenue streams and too little control to know where they are financially at any given time. They just hope that at the end of the month they can somewhat balance the books and do it again, until the games they play catch up. But this is police departments, parks, one and all. And as a int'l bankers told me recently the business is extremely tough because everyone to whom he would lend money are simply lying about their circumstances. That is capitalism, which is not the free market.
Now the fellow with the article cited summarizes thus:
Gold is money for a purpose, the purpose of liquidating a debt and a relationship. People in business do not need money, now should want it, for we are building relationships, not liquidating them.
The solution is not to get out of currency and into money ("buy" gold) but get out of hyperinflated assets into the means of production. Get out of malcredit and into benecredit. Start a business in which you begin to generate benecredit, an asset the hegemon just cannot mulct.
Be like Russia: get rid of debt, build up your productive capacity and your rolodex. Network with the others who get it. Whatever happens, don't join the mob trying to recover assets to which people feel entitled. Start making your own.
Wealth is not accumulation, but the range of goods and services you can access by what you earn on your own. Prices are going to drop dramatically as we get into this crash. Just as students who are drowning in debt will not be in a position to get an education that matters, so will the unemployed trapped in home they cannot afford nor buy a cheap car to escape since their last one was repossessed and they cannot get more malcredit (or even benecredit for that matter).
On the other hand the self-employed will access just about anything and everything they want and need at very low prices. Too high for those who accumulated much in the way of tallies, but astonishingly cheap for those who are actually producing what customers want.
Feel free to email this to three of your friends.
We just had another confirmation that banks are dealing in sums which they don’t understand themselves. A junior employee in Deutsche Bank (DB) paid $6 billion to a hedge fund which was the gross value of a position. He should have paid the net. That in a nutshell shows the uncontrollable exposure of the banking system which will lead to its downfall.It really does not matter how fantastic they are, the show will be when the crash comes and all the people who feel entitled (literally) begin the 40 year march in the desert trying to be "made whole" on their "losses." When you lose part or all of your property, paycheck, pension, Feel free to forward this by email to three of your friends.
Just take Deutsche Bank, their derivatives position is officially $75 trillion. The real figure is probably over $100 trillion but let us accept the $75T. DB’s equity is $83B. This means that just 0.1% loss on the gross derivatives position is enough for DB to go under. It is virtually guaranteed that any loss on their derivatives would exceed 0.1% of gross value. DB is also too big for Germany. DB’s derivatives position is 24 x German GDP and equal to global GDP.It is not just banks, governments are as whimsically run as well. Now, as I teach in my classes entrepreneurs take no risks, nor do I expect my customers will do so either. For example, the schools with which I partner when lecturing are paid in advance by the students who attend my lectures (and I am paid out of the gate receipts.) Nonetheless, I am often paid by warrant.
Why so? Schools have too many revenue streams and too little control to know where they are financially at any given time. They just hope that at the end of the month they can somewhat balance the books and do it again, until the games they play catch up. But this is police departments, parks, one and all. And as a int'l bankers told me recently the business is extremely tough because everyone to whom he would lend money are simply lying about their circumstances. That is capitalism, which is not the free market.
Now the fellow with the article cited summarizes thus:
Physical gold (and some silver) is the best protection against both hyperinflation and deflation. Remember with a deflationary implosion, no loans will be repaid and the banking system would not survive. Thus gold will be money as it has been for 5,000 years.Yes, but so what? Money is gold, but money is not the problem. All those nominal figures are tallies of credit, not money. We do not have a monetary problem, but a credit problem. The problem is malcredit, and hyperinflation thereof, wherein a $32 million skyscraper in downtown Seattle is valued at $640 million, by the hyperinflationary calculations. Whole lotta pension funds depending on the nominal income from that nominal valuation. Come the crash, the building value goes back to $32 million, rents adjust to real world, but the debt is nominally there (perhaps $600 million?) Those pensions may seize the property, but the rents on a $32 million building are not going to cover the expectations of pensioners, or at best at ten cents on the dollar. Ouch!
Gold is money for a purpose, the purpose of liquidating a debt and a relationship. People in business do not need money, now should want it, for we are building relationships, not liquidating them.
The solution is not to get out of currency and into money ("buy" gold) but get out of hyperinflated assets into the means of production. Get out of malcredit and into benecredit. Start a business in which you begin to generate benecredit, an asset the hegemon just cannot mulct.
Be like Russia: get rid of debt, build up your productive capacity and your rolodex. Network with the others who get it. Whatever happens, don't join the mob trying to recover assets to which people feel entitled. Start making your own.
Wealth is not accumulation, but the range of goods and services you can access by what you earn on your own. Prices are going to drop dramatically as we get into this crash. Just as students who are drowning in debt will not be in a position to get an education that matters, so will the unemployed trapped in home they cannot afford nor buy a cheap car to escape since their last one was repossessed and they cannot get more malcredit (or even benecredit for that matter).
On the other hand the self-employed will access just about anything and everything they want and need at very low prices. Too high for those who accumulated much in the way of tallies, but astonishingly cheap for those who are actually producing what customers want.
Feel free to email this to three of your friends.
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