正文
The really significant thing that has to be borne in mind when lookingat the markets at the moment is an understanding that the word‘inflation' means a different thing to today's Central Bankers thanwhat is widely reported in the financial media.
Central Bankersare concerned with the problem of protecting the currency itself andthe viability of the broad, regulated banking system structure – notthe issue of protecting any individual or small group of banks.
Theword ‘inflation' is caught up with CPI figures and related data seriesand general price rises in important things people use like houses andgasoline and food basics.
None of these things are the triggers for today's Central Banks instruments to interfere with open markets.
Althoughthere has been a lot of focus recently on sub prime debts' lack ofliquidity and the consequences for the institutions too exposed to thisescapade – this is not the most important matter for Central Banks.
Noteven the huge consequences in the broad community of massiveforeclosures and bankruptcies and unemployment are that important atall.
Central Banks worry that in a world in which theirpolitical masters are technically parlous, and in which the regulatedbanking system has a fictional liquidity base from which to lend moneyout of, any general RECOGNITION BY THE PUBLIC that there is a genuinecompeting monetary mechanism to what exists, carries the threat ofactually destroying government itself because of its capacity to veerfinancial transactions away from the taxation capture process.
Goldand precious metals are partially equivalent to genuine competing,non-government managed money, and to this extent they are targets forthe control of their prices by the Central Banks and its enablers. Yetat the same time they are regularly relied upon to counterbalance thenegatives on the fictional monetary base's balance sheet from externalslike oil prices and commodities generally, and so their manipulation isnot terminally downwards.
Real estate, despite almost everyone's insane obsessions about it, is not now nor has it ever been, a financial asset.
Consequently, it has virtually no bearing on the main area that calls for the protection of the Central Bank.
Peopletend to forget that for many capital cycles since the Second World Warand maybe even before that, total liquidity wipeouts were the basicconditions from which the economy was ‘raised from the dead' as itwere. There is no point talking about the crisis of sub prime lendingwhen there wasn't any real viable capital wealth to have a crisis aboutin the first place.
Today's crisis is not a crisis for Central Banks!
Ifcommunities actually failed or were seriously on the verge of doing so,then the grip of government, its tax base, and its monetary systemwould be at risk from people trying to find a better solution. What ishappening in the West is no more or less than the symmetry of what tookplace in the Soviet World when Communism fell. Western democracy is thesame megalithic monolith idea that Communism was but with a differentname and with some cultural differences – it is in all other respectscompletely totalitarian.
Hence the creation of terrorism as away to bring the public to heel, hence the zealotry of Stock Exchangeregulators against operators not belonging to captivated industrial andbanking complexes, hence the monopoly media, and hence the radicalabandonment of good currencies for fiat and propaganda-led CPIstatistics.
The benefits of such a system are the appearance of political stability, and economic survival and even growth.
Thedownsides are manipulated markets that are not favourable toindependent investors and a feeling of unreality by anyone looking atthe system too closely.
Sacrifices that Central Banks and thepolitical administration can make are: all the lives of the public, allthe industrial output capacity, the education standards of the publicand their quality of life while they are living, and all real assetsand tangible wealth.
What it cannot sacrifice is segments ofthe asset or financial markets that can evade control and taxation…Such things as technology (and there are others) are particularlysensitive to modern governments.
The greatest secret for theserious independent investor is how to preserve, grow or develop liquidvalue, while the market proceeds through a drawn-out manipulationdesigned to prolong what is an eventual and inevitable disaster. Thoughnot one that will come through sub prime problems.
The greatest secret is how not to get caught long in equities when a sudden collapse occurs without obvious warning.
Thegreatest secret is the way to distinguish the type inflation that theFed really worries about – the inflation of financial assets not ableto be controlled and taxed by the government. This includes oil sourcedfrom places not controlled by the West.
The present oil pricedrift is an illusory phenomenon which is the very short termafter-effect of the failure of the Neocons to carry off their Iran scam.
Next year's market action is so obvious and clear, quite frankly…
AndI only say this now because all the bs hedge funds are on the shortside of the oil price and the muslims are too stupid to kick theirasses into the ditch of history for all time! In other words, nothing Isay at this precise second will in the slightest change the fixationpeople have to believe the oil price CAN go down for any length oftime, that you CAN prop the Dow by forcing interest rates down, andthat inflation CAN be controlled.
Good luck to them all!
Calvin J. Bear
Central Bankersare concerned with the problem of protecting the currency itself andthe viability of the broad, regulated banking system structure – notthe issue of protecting any individual or small group of banks.
Theword ‘inflation' is caught up with CPI figures and related data seriesand general price rises in important things people use like houses andgasoline and food basics.
None of these things are the triggers for today's Central Banks instruments to interfere with open markets.
Althoughthere has been a lot of focus recently on sub prime debts' lack ofliquidity and the consequences for the institutions too exposed to thisescapade – this is not the most important matter for Central Banks.
Noteven the huge consequences in the broad community of massiveforeclosures and bankruptcies and unemployment are that important atall.
Central Banks worry that in a world in which theirpolitical masters are technically parlous, and in which the regulatedbanking system has a fictional liquidity base from which to lend moneyout of, any general RECOGNITION BY THE PUBLIC that there is a genuinecompeting monetary mechanism to what exists, carries the threat ofactually destroying government itself because of its capacity to veerfinancial transactions away from the taxation capture process.
Goldand precious metals are partially equivalent to genuine competing,non-government managed money, and to this extent they are targets forthe control of their prices by the Central Banks and its enablers. Yetat the same time they are regularly relied upon to counterbalance thenegatives on the fictional monetary base's balance sheet from externalslike oil prices and commodities generally, and so their manipulation isnot terminally downwards.
Real estate, despite almost everyone's insane obsessions about it, is not now nor has it ever been, a financial asset.
Consequently, it has virtually no bearing on the main area that calls for the protection of the Central Bank.
Peopletend to forget that for many capital cycles since the Second World Warand maybe even before that, total liquidity wipeouts were the basicconditions from which the economy was ‘raised from the dead' as itwere. There is no point talking about the crisis of sub prime lendingwhen there wasn't any real viable capital wealth to have a crisis aboutin the first place.
Today's crisis is not a crisis for Central Banks!
Ifcommunities actually failed or were seriously on the verge of doing so,then the grip of government, its tax base, and its monetary systemwould be at risk from people trying to find a better solution. What ishappening in the West is no more or less than the symmetry of what tookplace in the Soviet World when Communism fell. Western democracy is thesame megalithic monolith idea that Communism was but with a differentname and with some cultural differences – it is in all other respectscompletely totalitarian.
Hence the creation of terrorism as away to bring the public to heel, hence the zealotry of Stock Exchangeregulators against operators not belonging to captivated industrial andbanking complexes, hence the monopoly media, and hence the radicalabandonment of good currencies for fiat and propaganda-led CPIstatistics.
The benefits of such a system are the appearance of political stability, and economic survival and even growth.
Thedownsides are manipulated markets that are not favourable toindependent investors and a feeling of unreality by anyone looking atthe system too closely.
Sacrifices that Central Banks and thepolitical administration can make are: all the lives of the public, allthe industrial output capacity, the education standards of the publicand their quality of life while they are living, and all real assetsand tangible wealth.
What it cannot sacrifice is segments ofthe asset or financial markets that can evade control and taxation…Such things as technology (and there are others) are particularlysensitive to modern governments.
The greatest secret for theserious independent investor is how to preserve, grow or develop liquidvalue, while the market proceeds through a drawn-out manipulationdesigned to prolong what is an eventual and inevitable disaster. Thoughnot one that will come through sub prime problems.
The greatest secret is how not to get caught long in equities when a sudden collapse occurs without obvious warning.
Thegreatest secret is the way to distinguish the type inflation that theFed really worries about – the inflation of financial assets not ableto be controlled and taxed by the government. This includes oil sourcedfrom places not controlled by the West.
The present oil pricedrift is an illusory phenomenon which is the very short termafter-effect of the failure of the Neocons to carry off their Iran scam.
Next year's market action is so obvious and clear, quite frankly…
AndI only say this now because all the bs hedge funds are on the shortside of the oil price and the muslims are too stupid to kick theirasses into the ditch of history for all time! In other words, nothing Isay at this precise second will in the slightest change the fixationpeople have to believe the oil price CAN go down for any length oftime, that you CAN prop the Dow by forcing interest rates down, andthat inflation CAN be controlled.
Good luck to them all!
Calvin J. Bear
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