Inflation or Deflation?

Google's decision may not cause major problems for China right away, experts said. But in the longer run, they said, China's intransigent stance on filtering the flow of information within its borders has the potential to weaken its links to the global economy.

Ray, agreed on great change, but bear-in-mind that manufacturing profits are being driven to 0 (even negative as China is subsidizing their production now). China has been handed the industrial revolution at it's death throes.

Food economies-of-scale were driven so high with petro-farming, that it became unprofitable to be a farmer and farms were subsidized by govts, debt financing, and by a *negative* EROEI for farming petrol inputs. Now industrial production is entering a similar fate.

The future is not the agricultural nor industrial revolutions, just as we are not going back to Stone or Bronze ages.

Rather the future is about information and knowledge networking. Nanotech, biotech, and cloud computing...

Unless someone can figure out a way to involve the masses in producing value with these new technologies, then the masses have been reduced to "useless eaters". This shift to making industrial production a 0 profit (raw material cost), which is making billions of people unemployed, is what is causing the deflation. This is why the world has no choice but to use money printing to socialize the problem. There is excess industrial productive economies-of-scale now (capacity).

I understand that the technology solution in the cloud computing space will be one of proliferating the ability of masses to do mashups and design. We will have all this 0 cost productive capacity and we need a proliferation of designs to match all the varied needs of humans, since humans are not cookie cutter and have diverse needs.

The energy economies-of-scale will take another leap with nuclear. TPTB are holding this card back, they will play it when it best suits their interests.

This is a N-dimensional chess board, you need to look at how all this interacts and timing.

-Shelby

Add to above post, that developing world has billions been forced from farms into cities to seek income. Right now they are taking over the mundane office work from the western world ("call centers"), professional services (nurses, doctors, programmers, etc), but many of these are jobs that will be eliminated with computer automation in coming years.

All trash (dead end) jobs are being dumped on the developing world, leaving the west a shell of debt-dependent masses and developing world too will never reach full employment.

The people supporting the economy now are the high tech workers (and some one-time infrastructure build out in developing world), and this will worsen, unless someone figures out a way to involve these masses in the new information technology economy. That is why I am working on copute.com

-Shelby

And this is why so many are being turned into gamblers (ahem "traders"), because they can find no suitably profitable employment.

But there is a role for people who can involve themselves in the new technologies and/or in the transitional chessboard (e.g. the infrastructure build out in developing world, cultural/language interfacing, etc).

Ray thanks for you thoughts.

I have not been to China, but I've been to Hong Kong, and I am in Philippines right now. What I see is that China has a huge population, and much of it is still rural and not educated with the type of creativity that will be necessarily to compete in the new technology epoch.

Given that a large population is a liability in era of increasing automation, then I do not see how China has a strong position. Also China has a severe demographic bubble that will peak around 2020, due to their insane 1 child policy.

Someone sent me humorous image of how China "does not waste anything", and it was 100m meter track start, with the starting gun pointed at a dissident's head, with arms tied behind back.

I have also been told by someone who outsources manufacturing to China, that the factories have razor thin profit margins, and they get by not paying their suppliers on time, floating on the inventory for 90+ days, etc.. Also I have observed the mentality of the Chinese who run most of the business in Philippines, they try to extract every last penny (centavo) of cost cutting, even if it means service sucks. For example, the least expensive place to buy computer supplies here in Philippines is CR King, and they have walls and walls of stuff from China at like 1/2 to 1/3 the price of the other name brand stuff in other computer stores. But their are only 5 ladies serving dozens of customers, and so you have to take a number and wait up to 1 hour to get served. That cuts the costs as much as possible, except for the customer who loses the cost of his time. That works economically here, because there are billions of underemployed people in Asia with nothing to do with their time. That is why SMS txting is so popular here (and becoming more popular in west), because even it is slow to type with 2 thumbs, people have too much time to waste.

And where does all this wasted time end up? It ends up in economic failure.

Ray the point is that manufacturing (industry) is now a liability, not an asset. Proof is as I wrote before, China is forced to subsidize their factories now with their savings, proving it is a negative ROI activity. Farming has long been a liability.

The assets now will be pure technology and design.

TPTB in old europe have handed China the trash.

The strong position now is not a nation, but individuals who possess strong new technology skills. The rest will have to attach themselves (even if indirect recipients of govt spending in their area) on the coattails of an expanding government (that must expand to steal from the producers to feed the expanding supply of useless eaters).

To make it clear, the reason that manufacturing is a liability is because the value added (over the input raw materials cost) is driving towards 0. This is because automation is accelerating exponentially.

The value added is in the design of both the automation and even more so on the products to be produced.

And this applies to software also. The cost of manufacturing software is 0 (electronic copy), the valued added is in the programming or design of the electronic product.

The X generation understands this shift. They grew up with it. The smartest 20 year olds are in biotech, nanotech, or at least looking for jobs abroad to be part of the transitional phase of this epoch of globalization and industrial revolution death throes.

Although a smaller population is preferable in the death throes of industrial age, a declining population is also a transitional social delimma, because the lower quantity of workers have to support an increasing quantity of retirees.

China is expending savings to subsidize industrial full employment, and this is evidenced by both a Yuan peg (that traps all savings in the country) and the recent govt stimulost in excess of 20% of GDP. The savings of China is not allowed to seek its optimum path. Rather it is centrally allocated to western treasury bonds, commodity stockpiles, overexpansion of manufacturing capacity at razor-thin profit margins, etc..

TPTB are driving us away from the technnology solutions and towards a massive global implosion in employment that will drive the world towards a one world govt.

To defeat this, we technologists/futurists (such as myself) have to get more busy at delivering technological paradigm shifts. So in short, I need to shut up.

Hope my input has helped some. If you have necessary skills (I mean if you are top 1% in your university and career), please get in touch with me. I am working on some revolutionary things in software.

The silver price suppression scheme, and the resulting failure of paper money, and the resulting collapse of commerce and world trade risks sending the entire world into a severe depression that risks famine on a world scale unlike what has ever been seen before in world history, and could therefore cause the direct deaths of anywhere up to a third of all humans on earth, or even more.

Shelby wrote:Finally Hommel admits how bad it could get:

http://silverstockreport.com/2010/doj.html

The silver price suppression scheme, and the resulting failure of paper money, and the resulting collapse of commerce and world trade risks sending the entire world into a severe depression that risks famine on a world scale unlike what has ever been seen before in world history, and could therefore cause the direct deaths of anywhere up to a third of all humans on earth, or even more.

Preparation for big changes in the global financial order. The craziness I see coming, outstrips the imagination. The federal debt is now more than annual GDP, and if all current retirement mandates are funded, then it will rise to several times GDP in coming decade or two. This means at double-digit interest rates (which is likely given rampant inflation needed to inflate away value of the debt), even 100% of GDP could not pay the interest on the national debt. This will cause increased borrowing, which will increase the national debt faster, which make it even worse than above statement. The only way out is to drastically reduce the lifestyle (including housing, etc), or to inflate away the value of the debt. Even 100% taxes won't solve the problem without doing one of those 2 actions. Thus we can be nearly certain that massive inflation is on the way. But this doesn't solve the problem, because it continually raises the quantity of the national debt. This would be an endless debt trap spiral with massive inflation that ends only with a MadMax outcome (or world war). You would have massive social unrest during this. The most sane option is for westerners to right now decrease their standard-of-living voluntarily and buy gold and silver. But this won't happen. Less than 1 in 1000 own gold, and many of them own it in IRAs or certificate forms, and the govt can steal of all this through taxation.

Note that is monetary inflation, combined with cost of manufacturing deflation. This is a wicked mix, and no country will be spared...

Ray, you do not understand what is going on. China is a nation, on the aggregate it will suffer immensely. China's controlling elite know this and they are just maximizing their position. The old world bankers are playing the strengths and weaknesses and will continue to increase power.

It is not "he who holds the gold". It is "he who holds the gold, and does not hold 1.5 billion peasants liability". There is no way China will ever have as much gold per capita as the USA once had.

That time is finished, never to return again. We are in the final mopping up stages of the one world order, where gold can not be held by people any more. That is what this big shift will do by the end of it.

You do not seem to understand that China came to the party too late, and too debt in socialism debt. They can not undo 50 years of shooting themselves in the feet, with 2 decades of Yuan-pegged anti-capitalism.

=============

In short, the Chinese elite are just pimping their population to the old european banksters. Communist party is nothing but a massive sheeple herding system. Pimps and their socialism sheeple whores. That is what world is coming to now.

Soros wrote:"The correction has scarcely started."

Shelby wrote:If China is so great at technology, why did it produce capacitors that explode:

http://market-ticker.denninger.net/archives/2226-Chinaman-Fails-To-Hose-American.html

Also apparently you did not read the link I provided for crisismaven. It explained how China is rapidly wasting it's cash hoard. Essentially the capital moved from western debt addicts to China's central managers, and now wasted on increasing production beyond supply. The GDP numbers are lies (more like nominal GDP without the inflation adjustment).

Ray you don't understand the basic concept of economics, which is that the free market always wins (meaning no interference by central managers against individual opportunity cost). China is prime example of state misallocation. As I said, they are forcing all private capital to stay within the country. This is causing a massive misallocation globally and internally.

This will result in an epic global crash, and old world banksters have this planned out as a way to move the world to NWO.

Shelby wrote:here is the correct link for crisismaven blog on china:

http://crisismaven.wordpress.com/2010/02/13/bloom-of-doom-vi-will-china-survive-the-crisis/

Ray, if China is so good at making software, how come they have not produced any commercial success outside of China? Rather what you have is a captive audience, due to state censorship and the natural language barrier.

China is competing with slave labor. This worked for the Southern USA for a while too. It has worked for the banana republics too. And just look how backward these turned out to be, when the big shift came (e.g. end of slavery in south, or the plunge in sugar prices).

Ray the bottom line is that centralized economies NEVER outperform free market ones.

China is doing relatively better primarily because the rest of the world is becoming more centrally managed.

But the who world is headed into massive unemployment, because of factory automation. The future jobs are for the intellectual work. The designers, the engineers, etc. In short, the information revolution.

The USA is not suffering because of losing manufacturing jobs. The USA is suffering because the people got binged on debt.

Immigration is a good thing. It means a freer market. The most robust economy would be the one that has a completely open border.

Free markets always win. Centralized control always loses.

Shelby wrote:I will repeat again, that the loss of manufacturing is not what ails USA.

It is the inordinate rise in debt, that enabled Americans refuse to adjust to the new opportunity costs of the information revolution.

The highest value activity is not in making stone tools, plowing a farm, being a blacksmith, nor in a sweatshop. The current computer/information/software revolution is having effects similar to the labor replacing machines invented in the textile/industrial revolution. China's current centrally managed attempt to monopolize the dying industrial model, is the death throes of it's centralized communist political system!

Empires die when they don't adjust to labor-saving technology, read about Roman empire's preference for slave labor over technology:

http://www.nytimes.com/books/first/j/johnson-renaissance.html

Google for "ENTERING AN EPOCH OF SOCIAL REVOLUTION", then search for "
Search for "Every schoolbook
states that the industrial revolution brought down feudalism" in this document.

The Luddites resisted the textile and industrial revolution, but ultimately these labor replacing machines actually created more prosperity and higher employment!

http://en.wikipedia.org/wiki/Industrial_Revolution#Social_effects
http://en.wikipedia.org/wiki/Textile_industry#History_during_the_industrial_revolution
http://en.wikipedia.org/wiki/Cotton_gin#Effects_of_the_cotton_gin

Shelby wrote:Let me repeat what I have written in past, which is that manufacturing is becoming increasingly automated, and China is driving profit margins to near 0. This is the death throes of the industrial revolution. The profit is in the design/engineering of the products and machines to produce them.

Shelby wrote:The point is that China is operating at near 0 margins and this is why they used a faulty electrolyte in their capacitors.

They cut costs by destroying their own environment (just west did in our industrial revolution).

The problem is the industrial revolution was 100 years ago. China is too late, and the way they gain market share is by cutting costs and this is accomplished by trapping their capital inside the country and not letting it seek higher opportunity costs.

The fact that China can not allow unlimited access to information is proof enough.

Everyone knows that China produces inferior quality products. This will improve over time as they learn that people will pay more for quality, but the point I am making is this was not the economic incentive given to them.

The govt has basically given them free capital to produce at 0 profit margins, and so they careless about profit and care only about volume. It is all about pumping up their GDP and employment, as billions of people unemployed is main problem in China.

I told you this is a huge liability for China and it is the death of the industrial revolution, as margins are driven to near 0.

Shelby wrote:I know someone who does manufacturing in China. And he said (prior to 2007 crash) that manufacturers float on their suppliers' capital. They will refuse to pay for greater than 90 days. And they lie, cheat, and steal. I read an article yesterday, about how popular it is to work for state company, steal all their clients, then run your private company from your office at the public company. Then eventually leave the state company after some years, taking the clients with you.

The entire system is one of connections, favoritism, etc.. This is a failure oriented economic model. Study entropy and the free market.

Shelby wrote:The basic family values in China may be good, but there is one major thing missing. They do not demand freedom. Chinese have learned to co-exist with their lack of freedoms. But freedom is necessary for a free market and to prevent the massive misallocations that are happening now, which are going to drive China into the ground again.

The basic problem boils done to the people placing too much trust in the government and the communist system. In fact, they are quite proud now of their system and its recent accomplishments. They think the system is working for them, because their middle class is expanding. They don't see the massive leverage in real estate and their savings being wasted on over production of high volume, low quality goods and other misallocations (e.g. brand new cities with no one living in them, etc).

Shelby wrote:I have not subscribed to economic theory as taught in the institutions. Fortunately I was not a victim to that abuse of having to attend one of their indoctrination centers as you claim to. I am using fundamental theorems of physics, such as the 1856 law of thermodynamics, which states that the universe (a closed system by definition) is trending to maximum disorder.

If you look at the equations for entropy in any discipline, what you understand mathematically is that increasing disorder is correlated with increasing diversity of actors (increasing possibilities).

Thus any force which attempts to direct a mass of matter (e.g. a group of formerly independent decision makers being constricted by a central control), will fail eventually. These forces must act with exponential increase in order to counteract the opposing force of the direction of entropy in the universe. These exponential bursts of order, are local (closed systems) while the global system is acting upon them to break them down.

TPTB (the elite) can operate only within trends of entropy. They are currently aligned with the human nature that aspires to debt and to be taken care of (order provided) by a government authority. But this trend is an exponential order that ultimately leads to widespread failure for the entire world. This mathematically inevitable outcome of human nature was predicted 2000 years ago, as it was written down in Revelation.

China as an actor in this trend is already documented in Revelation as the red dragon. But I don't subscribe to the Biblical theories, rather just note when they correlate to physical science.

Napoleon was also a victim of his own exponential push for order, and so will follow all those elite who attempt to defy the trend of the universe.

China's elite know their system is failing. They don't care. They are milking it for maximum gain, and they have already sent all their children to Vancouver and will flee when the shit hits the fan.

Shelby wrote:I suspect the top level of TPTB are purposely aligning to the human nature trends that drive misallocation of capital and failure (e.g. desire for debt, desire for insurance, desire for order/govt, desire for laws other than natural laws). I think TPTB have tried to maximize this push for failure. China and West have been played off as symbiotic elements of maximizing this failure.

Out of this failure, will exist a huge belly of "useless eaters" and major problem for the world to feed them, because the misallocation of capital is going to drive massive shortages and widepread failure of economies.

This is a trend of society towards a world government. The Bible talks about this trend of human nature and explains that man can only remain free by "not being surety to a friend", "not choosing to have a govt" (1 Samuel 8), "no idoling things of this earth" (e.g. laws, govt, order).

At the same time this failure trend is occurring, there are zillion lights of new freedom occurring. Remember the exponential equation, "small things grow faster". A kid can double his net worth in an hour, buying a can of cold coke on a hot day, and selling it for double price at stop light.

Those who have studied this math and see the correlations to the wisdom in the Bible, will always be free. We understand the limitations of TPTB. We understand their weaknesses.

Shelby wrote:Chinese elite understand Ying and Yang, so they too understand very well that China can not rise up on the back of massive debt addiction in West. This was not a wise model of how to build a sustainable China. This was a model of how the elite could cash out and maximize the global failure necessary to bring about dependent class to drive the NWO.

Chris Laird wrote:China certainly is well aware that 60% of their economic growth in recent years is construction related. Did you know that? If China is popping a huge construction bubble that is 60% of their economy then why is everyone talking about using basic commodities as an investment haven? There is a difference between a haven and a speculation. Commodity markets are speculation markets right now. That makes them subject to wild price swings.

Shelby wrote:Coarse's Theorem is there are no externalities, only transactions costs. Nature will also route around any artificial barriers to maximum efficiency, the same way as a river will always route around a dam given enough time.

http://en.wikipedia.org/wiki/Coase_theorem#The_theory

Coarse Theorem is just another way of stating the 1956 law of Thermodynamics that says the universe is always trending to maximum disorder.

If you don't understand these concepts, then you won't understand me or what I am writing about.

Shelby wrote:You speak of "largest" but you forget to divide by the population to get a "per capita" normalization.

And you wrote nothing which refutes the hard facts and economic realities of bubbles.

Where do you live? I've been living in Asia since 1994.

Marc Faber lives in Asia (has a beachfront home in Vietnam) and visits China regularly:

http://www.kitco.com/reports/KitcoNews20100412J.html

Marc Faber wrote:China Bubble?

Is China headed for a bubble? “For sure,” said Faber. “The symptoms are there. It is a bubble when something goes substantially above the trend, when there is excessive credit gross and when there is excessive speculation. All these elements are in China,” said Faber who predicted the Japan and NASDAQ bubble collapse.

“If everything is so great in China, why is the Chinese stock market lower today than it was in August in 2009?” he asked.

Shelby wrote:I am not disagreeing with Asia being a large mass of population with improving standards of living (wealth). No one can deny that trend. It is obvious to anyone here in Asia.

That is not the point! You are missing the point.

The point is that this growth is being mismanaged in such a way that there is going to massive failure and setbacks along the way. Just study the data and this is obvious too.

Shelby wrote:Why would you assume I have adopted Faber's logic about China's stock market? I can quote him and his reasons, without adopting his logic. Learn to not conflate, it is the enemy of rationality.

Still you fail to refute factually any of the arguments I made on this page. You just continue to repeat an subjective assumption that China does not have to obey the laws of nature.

Here is some data on flows:

http://www.taxjustice.net/cms/front_content.php?idcat=103

What we can clearly see is the the rich are routing 60% of global trade through tax havens specifically to skim all the profit off and leave the misallocation of the current global mess to society.

Shelby wrote:Also your analogy of Ferrari to stock market pricing illustrates that you do not know the difference between a controlled action and an uncontrolled action.

The stock market is priced by the laws of nature, the Ferrari is controlled by one foot.

If you argue that China is holding back on their potential, I will agree, and due to the laws of nature, this means they are radically mispricing and mispricing has massive misallocation effects.

Ray can you not get it in your thick skull, that there is no way the communist party can control every effect and action from the mispricing they create from their controls? Wikipedia "Butterfly effect".

Puru Saxena wrote:A correction in China will occur when there is more monetary tightening, said Saxena. When this will happen? Saxena does not know. “One thing working in favor of Chinese assets is that China doesn’t allow the Chinese to invest overseas – so the money is all contained within the economy,” he said.

Shelby wrote:One human may be able to do something completely foolish and away from the trend of maximizing disorder (which is what nature is always doing on the big trend), but something which is an aggregate of a multitude of independent actors (humans, computers, processes, govts, etc) like a stock market is much less likely to move countertrend to nature's desired path, and in those cases where it is able to be so centrally controlled and manipulated, then you can be damn sure that nature is going to destroy it eventually. And this is what is going to happen to the centralizing efforts of the govt in China (and the symbiotic corruption of Wallstreet, suppression of gold&silver prices, etc). And the Chinese people will benefit immensely from the demise of their central authority.

Shelby wrote:1) Ray wrote:
"Therefore, even by your fuzzy logic this means that the foot controlling the Ferrari is also conforming to what you claim are the laws of nature."


2) Apparently you failed to read what I wrote:

Shelby wrote:
"...one human may be able to do something completely foolish and away from the trend of maximizing disorder (which is what nature is always doing on the big trend), but something which is an aggregate of a multitude of independent actors (humans, computers, processes, govts, etc) like a stock market is much less likely to move countertrend to nature's desired path, and in those cases where it is able to be so centrally controlled and manipulated, then you can be damn sure that nature is going to destroy it eventually"


3) Thus there is no "goof" nor "fuzziness" in the logic I have presented here. The fuzziness is apparently the inability of your mind to grok the concept on the whole. Let me explain #2 to you in terms of evolution. Nature puts all possibilities out into the wild, and only the strongest (i.e. the outcome most adaptable or compatible with the overall trend) survives. And a verifiable factor of nature (in all forms and sciences) is that entropy (aka disorder or randomness) is always increasing on the overriding (longest durational scale) trend. In the short-term, nature must allow exponential trends that are counter-trend to the ultimate outcomes. This failure is part of the free market.

Shelby wrote:4) Ray wrote:
"'..Disorder is a mathematical term that means the greatest freedom for the greatest number of independent possibilities....'

If that is 'disorder'. Then what is 'order' - lack of freedom?"


5) 'order' is exactly a reduction in freedom, this is why NWO will be one of greatly reduced freedom. 'order' or opposite of 'freedom' means a reduction in the number of possibilities available. This scientific truth is in the Bible in Revelation.

6) Let's go deeper into #5, and I have often stated that 'insurance' is guaranteed failure. You see people want sureness against random outcomes. But random outcomes are precise the maximization of freedom (disorder). You see fundamentally humans are uncomfortable with adapting to change and to embracing all of the possible outcomes of the universe. Instead they want to force the universe to not change, but of course they can not force this and they can not stop the universe's march towards maximum possibilities (maximum disorder, i.e. maximum freedom). This scientific truth is in the Bible where it says "never be surety for another person".

7) 'chaos' is synonymous with 'disorder', in fact one definition of it coincides with my theory of everything, which is that infinity (or the edge of the universe) is maximum disorder. The problem is that people misassociate 'chaos' with negative outcomes, because people love order (no change) versus disorder (random change). Because people love to put themselves in jails of order, instead of embrace the glory of the continual unknown. And this is why TPTB are aligned with the trend. Because it is a scientific fact that humans will chose order over disorder, and thus the guaranteed failure of the world in a NWO. But the Bible does say that a few people will understand, they will refuse the order and choose to be free instead. It all fits with the science and the theory of everything. In fact, infinite as maximum disorder is the only theory that can explain the singularity of the black hole as I pointed out:

http://www.coolpage.com/commentary/economic/shelby/Mass-Entropy_Equivalence.html

Shelby wrote: Ray wrote:
"Shelby wrote:
...'Ray, you write about the numerous variables that can affect pricing. This is the free market at work......'

Who said it wasn't. Read the context to which I made that comment"

9) Ray if you understand that freedom means maximizing disorder (i.e. the absence of centralized control or limitation of possibilities), then you will understand that freedom is a trend which over a long enough duration is independent of the variables of the free market. You were arguing in this blog that China's central planning is superior and that they are holding back on their potential (the slow Ferrari analogy). I am arguing that by interfering with the free market, they are sowing their own demise.

Shelby wrote:9) Ray wrote:
"The New World Order gives the 'organisers' greater freedom, by subjecting (curtailing) ours."

"Like many words, order can mean different things to different people"

10) Mathematically wrong! The equation for entropy is independent of the observer (the observer is one of the elements of matter considered by the equation). That error demonstrates how ignorant you are of law of entropy (as are some of TPTB, the inner core realize their fate is doomed if they continue, but they choose to continue for the interim gains, to protect their birthright, because it is their culture trained since birth, and because if they did not, someone else would).

The controller loses just as much freedom as the controlled. This is a very important wisdom repeated throughout the Bible. And now I am going to explain it to in scientific terms. Pay attention.

First example of a facet of what I will next explain more generally below. What happens to the Ebola virus when it gains complete victory over it's host? The Ebola virus dies too, because it hasn't had enough time to spread to a new host. And even if it did give itself sufficient time to spread to a new host, if it was successful in spreading to all hosts, then it would kill itself.

Fact is that when you control any matter, it also impacts (and thus controls) you. This is a fundamental finding of the equation of entropy. Do you need for me to discuss the equations?

For example, aggregating great wealth, reduces your freedom. You are no longer able to spend your days following any whim, because you have to manage and protect your wealth. If you stop paying attention to your wealth, it "grows wings and flys away" in time (quotation from the Bible). All the people with wealth who have their money "safely" stored in bonds, precious metal "accounts", with Bernie Madoff, etc.. are all losing their wealth in time.

The Bible also agrees with this scientific fact, and explains (in Revelation) that TPTB will be holed up on a hill near Israel with all their gold at the end, and they will be destroyed by the nations who will rebel against their NWO and their gold supremacy.


11) Ray wrote:
"Who is the 'terrorist' the one who establishes his order by taking it from others. Or the one who fights to maintain his order by resisting?"


12) #11 is a very interesting and intellectual statement, but it is mathematically wrong. Relativity does not apply to order, because order is dimensionless. In it's purest consideration, disorder only counts the # of possibilities. If a centralizing force takes away more possibilities for multitudes then he/she adds to his own perspective, the total disorder is declining and the total order in increasing. And the universe will not let that trend continue for too long. In fact, such a counter-trend must grow exponentially, for as soon as it stops growing exponentially, it implodes. In short, it is an exponential mis-allocation trend.

This is what Revelation explains. And now I have tied it into human nature and explained the science and math.

Now in the short-term (and given the globe is such a big mass, this could mean decades, maybe even centuries more, but I doubt centuries because exponentially changing is accelerating), TPTB and the NWO trend can continue before it finally implodes. And when it does implode, it is going to be essentially a total wipeout of humanity. This is why TPTB that can not succeed, they will destroy their Host. It is mathematically certain. The only randomness is who and what will escape their control in the interim time before final peak of NWO and implosion (and I am not referring to the peak of the dollar system, as that is not NWO yet).


13) The reason I have scolded you, is because you posted in these blogs with a condescending and elitist attitude. If you are going to talk down to people, then at least make sure you are correct first.

14) Ray wrote:
"I think we have 'entertained' others without payment long enough."

We have paid way too much with our valuable time, in order to inform others.

Shelby wrote:Anonymous wrote:
"When is this mythic crash coming then?"

Just when you go long and decide it is not coming, that is about when it will come.

The point is stop trying to make short-term bets. Understand entropy and make long-term bets based on what MUST HAPPEN eventually.

What must happen is that gold must go to the moon. What happens to other assets and speculations may make you jealous at times and other times make you feel very smug. But in the end, I can say for sure that any one who buys gold for the long-term, is going to be the winner.

Shelby wrote:However there is a very big caveat about gold. Given there is only 1 ounce of gold per person in the world, and given most of this gold is already held by TPTB, then it is basically going to be most of society + TPTB against those private people who own gold. This is why the Bible says we will throw our gold into the streets. It will become too dangerous to use it for anything. I am not sure if that comes in this cycle or if that is something for a worse time some decades from now. I do not have enough data yet to know that timing.

What I plan to do, is to spend my gold and re-distribute it back out into society. This is a great increase in disorder (many more people deciding what to do with that gold, than just me).

I am not saving up gold for my offspring or for afterlife. I am saving it up, in order to go to war against TPTB, by spending my gold back into society, precisely when they drive society into a massive poverty with a very high gold price. I hope to do my part, to turn society away from "lets help steal the gold for the govt and taxes" and towards "lets invest and work hard and create more possibilities".

Shelby wrote:Ray,

I finally figured out your psychology. The reason you were constantly talking down (whining) about the masses, is you feel the control of TPTB is inevitable and I think deep inside you do not feel good about this. This discomfort is coming out subconsciously as condescending tone. You've placed your false hope with the Chinese being able to do some great things and the order to come from that being good.

As Jesus said, "I came not to bring peace, but with a sword", I have an inspirational message for you!

I come here with a sword! I am giving you the equation you need to understand that we are not doomed. It is a matter of individual choice. If you choose to join the aims of TPTB, you will have taken the 666 mark and you will be doomed. But there is another choice. Choose freedom. Keep fighting for more diversity, for more possibilities.

I am not fighting with words, but with actions. I have already identitied a major weakness in Facebook that the can not fix (for valuation reasons):

https://goldwetrust.forumotion.com/technology-f8/computers-t112-30.htm#2951

https://goldwetrust.forumotion.com/technology-f8/computers-t112-30.htm#2786

And I am planning to take on the top social networking sites within about a month. I already have a clever domain name, and it will apparent to you in a few months.

I was the creator of CoolPage.com, a product for making webpages, that had million users (on free hosting at GeoCities Yahoo) back in 2000/2001, before friendster (the first social network) was even created!

I will be doing action. I have a plan to defeat TPTB's plans with ACTA, which throw a major monkey wrench in their plans to control the internet. My plan is to basically turn the entire internet into Peer-to-Peer, then TPTB and nations will lose all control over it. Massive disorder coming.

The fight has just begun, and you are already throwing in the surrender towel.

Come on! Learn to fight for freedom!

Shelby wrote:Ray, which action is creating greater order (and less disorder), foot lightly on the Ferrari or TPTB manipulating the global interest rates by selling 100 times more paper gold & silver than physical?

This is why it is much more possible for the slow Ferrari to happen indefinitely, and much less possible for NWO to be sustainable. Then again, the implosion of the NWO may not happen in our lifetime.

But what are you living for? For the comfort of your time here? So you will align yourself with the trend towards more order, but then at what psychological cost?

Do not be jealous that my mind is free. Stop using your psychological BS control categories on me. I have chosen less order and more freedom. This time here on earth is nothing but a blip of time.

Being part Cherokee native American, I relish the opportunity to die fighting, versus live my life in a jail of order and control. And this includes the freedom of my mind.

Shelby wrote:Ray, I remember you wrote earlier that you are a psychiatrist. It is a corrupt profession, designed to work with TPTB to control people. You may have been so indoctrinated, that you may not even realize it or even be in control of your own mind any more:

https://goldwetrust.forumotion.com/health-f5/epidemic-of-psychiatry-t31.htm#241

TPTB believe that abuse is normal:

https://goldwetrust.forumotion.com/technology-f8/psychology-t123.htm#2763

Shelby wrote:When the globalists such as Rockefeller said

Rockefeller wrote:"The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries"

:

http://www.crossroad.to/Quotes/globalism/rockefeller.htm

What they mean is that they want to decrease the diversity of social order, i.e. increase social order and decrease diversity.

They claim certain benefits, such as the ability for large corporations to operate a higher economies-of-scale.

But what happens in nature when diversity is decreased? For example, what happens when you make your siblings or cousins pregnant? Birth defects and failure.

In fact, the elite are very inbred. And their ethics is hopelessly twisted. For example, David Rockefeller apparently sees himself as a "kind" person, and while he is giving a little bit, he sucking the life blood out of you:

http://www.brainyquote.com/quotes/authors/d/david_rockefeller_2.html

Rockefeller wrote:"I do not owe any personal income tax. But nevertheless, I send a small check, now and then, to the Internal Revenue Service out of the kindness of my heart."

Rockefeller wrote:"I do not like to be unkind."

Rockefeller wrote:"My grandfather, along with Carnegie, was a pioneer in philanthropy, which my father then practiced on a very large scale."

Rockefeller wrote:"Only once in my life was I on the edge of incivility."

http://www.crossroad.to/Quotes/brainwashing/rockefeller-mind-control.htm

Rockefeller wrote:"Populists and isolationists ignore the tangible benefits that have resulted from our active international role during the past half-century. Not only was the very real threat posed by Soviet Communism overcome..."

1974. In his book, Wall Street and the Bolshevik Revolution, Anthony Sutton "documented the fact that Rockefeller and Morgan banks provided the Bolsheviks with loans, while American industry provided them with the plants and the technology thy needed.

==========

The globalists see themselves as doing a better job of managing the world, but in fact they create problems, that they then claim to fix.

Why is it today that people are not free to move from country to country? It is because of crap the Rockefellers and their ilk have done. Back in the 1800s, people were free to go to any country they wanted to. There was no concept of citizenship or border patrol.

Mostly what you find coming from the mouth of all these elitists is pure BS!

In China, real estate fever is rising

The country is treading dangerously close to a full-blown property bubble, economists say, and the industrial outpost of Hefei represents China’s embrace of housing to fuel economic growth...

...China's real estate rush, once confined to a handful of leading cities, has spilled into the hinterlands with a ferocity reminiscent of American expansion into exurbs...

..."Prices in second- and third-tier cities are increasing more dramatically than in the first tier. It's very dangerous, and it puts local banks at risk."...

...The average annual income here is $2,000. The local economy centers on home-appliance manufacturing. There are few tourists...

...Huang Qingyuan, a sales agent for one of Hefei's most expensive housing estates — they go for about $120,000 per apartment.

While pricey by local standards, that's still a fraction of what homes cost in the capital. That's why buyers continue to pour in from across the region, accumulating apartments as a hedge against inflation in a nation where there are few investment alternatives. More residential units were sold here the first three months of 2010 than in Beijing or Shanghai — cities four times the size of Hefei...

Shelby wrote:I think this cycle can not move entirely to one world govt, because there are still too many people living in farms. These people are not accustomed to following rules and they have not been raised on Television. However, this is rapidly changing. The priority has been to put electricity and TV on every mountain top in developing countries.

So I do think there is a chance that technology could swing us away from the NWO trend for a while, before more of humanity adopts the western culture (praying to insurance and govt and perfection and accumulating material things and not being friendly to your neighbor "privacy and your own space being important").

I think it is very important what kind of media these developing youth will consume. That is why my focus is here in Asia.

The upside that Ray sees in China in terms of the qualities of the people (the way americans used to be in 1800s), is what I want to nurture, but I disagree this is some power of the govts (e.g. China), but rather it is the power of the people who are still relatively free of imposing order on themselves, as compared to the westerners who are already dead (in Biblical terms, they already whorEshipped insurance, govt, protections, social safety nets, etc).

In Philippines, I pay only $2 to see a doctor, because there is no medical insurance here to drive up the prices. I explained in prior post above, why insurance is guaranteed failure. Jason Hommel at silverstockreport.com and bibleprophecy.org does a lot of writing about the evil of futures contracts (aka 'insurance').

Shelby wrote:TPTB have already failed on numerous initiatives recently:

* Global warming is a scam as proven by climate-gate hackers

* H1N1 scam failed, Poland even refused the vaccine

* NAU target date keeps getting pushed back

* Rise of alternative information on internet

* Most people realize 9/11 was a false-flag scam

* Major resistance to socialized health care in USA.

Etc...

Shelby wrote:A link to the most insightful article I have read in a long time is contained within the comments at the following link:

https://goldwetrust.forumotion.com/economics-f4/inflation-or-deflation-t9-360.htm#2965

Ray, please read the above link and the article that is linked within it.

China's govt is not acting against the western trend, but rather is working with the banksters.

China doesn't even have 1/20oz of gold in reserves for each citizen. This no where near the nearly 10 oz per citizen the the USA once had.

The fact is that the banksters are mopping all the gold. The people and govts have very little per capita. There should be 1 oz per person on earth. Where is it?

First I want you to understand more deeply why I say the profit (or value) is not in manufacturing but in the intricate level of design that the Chinese can not do. I have seen the Chinese cell phones (e.g. "Cherry" here in Philippines) and there is no way they are close to mastering this critical point that makes the iPod the most profitable cell phone ever (can you tolerate a cell phone that pauses for 3 seconds between some button presses?!):

http://esr.ibiblio.org/?p=1931#comment-252994

China as a nation are no where near the level of the upper 0.01% of designers in the world. The global best and brightest go to a few select companies in the world (e.g. Apple, Google, etc), irregardless of national borders.

And you are missing the point about gold. As gold is no longer being used as a currency, when the people have less and less per capita, this enables the elite to hide their monetary inflation theft (aka "mis-allocation" of the economy).

China is symbiotic with this theft. Thus China is helping to drive the world towards this theft system called "NWO". Of course, the poorest in China can see some individual gains, but I am talking about the aggregate result of increasing socialism/centralization which is enabled/symbiotic with a reduction in gold per capita held by the masses globally. As the gold is brought into centralized holdings (even held by the govt), the entropy is declining and we are moving ever close to the 7 year tribulations which is the horrible rise and then finally failure of the NWO (the elite will kill the host and die with it).

Shelby wrote:In short, China is just a pawn of the banksters, and the elite in China are selling their own people into slavery for their own personal gains as elite always do.

Your notion that the Chinese elite are somehow positioning to the advantage of their people is entirely wrong. Elite are elite every where. Human nature is human nature every where (cultural differences do not alter this).

Shelby wrote:Ray indeed I agree that China will play a very big role in the NWO of great socialism "ONE WORLD, ONE DREAM". That is my point, they are a key force that is driving the globe that direction. I explained how they are doing it, by enslaving their own people, and then exporting this slavery in the form of very low prices, by trapping their citizens' savings inside the country. This has driven global interest rates low, because instead of their own citizens being to be a billion beacons of light investing diversely outside their country, what we have is the Chinese institution investing the money in US treasury bonds (driving interest rates lower).

The whole world is being told that the opportunity cost is much lower, because the capital is being focused on those bonds, versus the private sector seeking the maximum returns.

So I agree it will not be a total wipeout for China (their influence will grow, as rightly so as their population is 1/6 of the world...it is just simple mathematics).

But China is exporting their past mistakes. They are exporting their decades of socialism which impoverished their people.

It is up to the west to reject that export, but the west can not, because the people no longer use gold as currency.

So the failure will be shared worldwide. And this is very dangerous to private gold owners, as the world will look to tax your gains (not in ounces of gain, but in an arbitrary theft of fiat value of your gold).

Shelby wrote:That is BS about China not being aggressive. They are passive aggressive (similar to quotes I gave above from David Rockefeller). China is stealing stealing from world, as they claim to be virtuous or in harmony. They are shrinking the pie, while taking a bigger slice of the pie. It is not a fruitful direction for the world. And quality will decline as a whole, even while China's quality will come up. What I mean is they their centralized control will kill new innovation, while they get better at copying past innovation. Their censorship of the internet is proof enough. They will not stop until the rest of the world has enacted the ACTA treaty and is censored as well.

As previously stated, I am hoping for (and working towards) a technological solution that makes enforcing ACTA not feasible.

Shelby wrote:Ray, your latest posts are very lucid and I agree with them.

Let's not forget the Gambler's Fallacy:

https://goldwetrust.forumotion.com/economics-f4/stocks-vs-precious-metals-vs-bonds-vs-real-estate-t11-15.htm#2967

What you need to know about gold is that the standard deviation of mean of private holdings per individual (i.e. the aspect ratio of the Bell Curve) is accelerating exponentially upwards, as the mean is accelerating exponentially downwards.

Thus although gold will rise immensely in value, it will become increasingly dangerous for the private investor to hold. I explained that the elite have synergized (even help cause and direct) the failure of the nations and the gold-less masses will be suck the tit of "increase tax collection" to fund their "survival" (further failure!). I expect gold to be taxed at its ever inflating fiat value, thus private gold investors can expect to lose 90+% of their ounces to society.

This is predicted in the Bible where it says we will throw our gold into the streets.

P.S. I am trying to do something about this.

P.S.S. Ray TPTB have power to destroy a nation arbitrarily, but they dare not use it, as if it is not in harmony with the mass trends, they will lose power due to the "Butterfly Effect"s. Wikipedia it. Their power is actually a jail. They are simply feeding (fullfilling the demand) the evil that society has. I enumerated those evils in prior post, i.e. the demand for more order and govt and insurance and debt. Buddhism explains this as the evil of "craving".

Shelby wrote:

Ray replied wrote:"

Shelby wrote:'What matters is what people are doing economically. That determines the politics...'

"

IT DOES???"

Of course. Very simple. If the people were all buying *PHYSICAL* gold and silver right now, then it would be impossible to sell any CDS derivatives. If the banksters (elite or TPTB) can not sell fractional reserve paper gold certificates, they are powerless.

Thus the Chinese communist party would also be powerless.

Instead only 1 out of every 10,000 (?) people in the world are buying more than there 1oz per capita (total above ground supply per capital). Thus politics and derivatives are running amok and are in the back pocket of the banksters.

I don't know if it is 1 in every 1,000 or 10,000 or 100,000, but the point is that without at least 1 in 10, we private gold investors stand no political chance against the banksters.

Shelby wrote:So indeed the masses are setting the economic outcome. This enables the politics to be what it is.

If the masses were instead refusing to use fractional reserve "money" (actually fiat is always born as a debt), then of course the politics would be different. The masses fail to understand that voting is done by individual economic choices, not in the voting booth. The voting booth is a mirage.

TPTB only exist because the masses demand that they exist, by their individual economic actions.

So enumerate the holes Ray? There are none. That is why you can not.

Shelby wrote:Again Ray lacks insight into what is different now as compared to 1980s.

The juniors have an extreme beta, and the majors provide no more leverage than physical silver.

The problem with investing in stocks (as compared to 1980s), is that western civilization is bankrupt, and so it is very very likely that there will be a complete disrupt of the paper markets.

This epoch is not about "making money with speculations" but about preserving capital, and "making money by capturing the growth of developing markets" with real income businesses.

Shelby wrote:I try to always keep learning, and I am not afraid to present new data that might disagree with something I have written.

I see that Buffet has invested in BYD, and their CEO says that they think they may be able to compete with the world in electric cars:

https://www.youtube.com/watch?v=Qs-tjjIQhT4&NR=1 (list near end)
https://www.youtube.com/watch?v=rZ9AooeFe9E
http://en.wikipedia.org/wiki/BYD_Auto

Also he said their profits doubled during the economic crisis.

My perspective on this data, is that indeed (as I wrote in prior post above) that China will learn how to compete on quality, but this was not the larger aggregate focus up to now (and for the forseeable term), and I assert this is true in BYD's case. Their growth up to now, has basically been an exact copy of a Toyota Corolla.

Domestic car sales exploding are not surprising given China's massive (12.8% of GDP) stimulost spending much of it on infrastructure (i.e. roads). Thus BYD is a leveraged derivative of that stimulost. However, when the negative effects of the stimulost play out, the roads will still be there, supportive of huge car sales. However, one thing southern California learned was that after about 2 - 3 lanes, adding more lanes doesn't really support much growth. 2 lanes are 100% more than 1 lane, but 4 lanes are only 33% more than 3 lanes. 5 lanes only 25% more then 4 lanes, and so you don't see any 6 lane highways which would only be +20%.

If you make an argument for suburbia, the USA has already shown that this is a very inefficient use of resources. And it leaves a huge maintenance liability.

Shelby wrote:And another interesting datum, was they use 300 workers to produce 400 cars per day. Given they probably pay < $50 per day per worker, this gives a firm example of my assertion that automation is driving the (labor component of) manufacturing costs to near 0. IN other words, labor is only capturing about $50 / $10,000 = 0.5% of the GDP of making cars (well that is not factoring in the labor of the parts suppliers, but I my point still holds even if labor is 1 - 2%).

Manufacturing jobs will not support full employment for 7 billion people (as all manufacturing is increasingly automated as much as car manufacture). Eventually not even for 0.5% - 2% of the 7 billion.

Shelby wrote:Ray remember I told you that China's profit margins are near 0:

http://www.marketoracle.co.uk/Article19498.html
http://www.bloomberg.com/apps/news?pid=20601080&sid=aCxxXIVSAh9o

"China’s trade surplus shrank 87 percent...

...import and export department of apparel maker Shanghai Dragon Corp., said in an interview at China’s biggest trade fair in Guangzhou on May 3. “If the yuan rises 3 percent, where’s our profit? Many, many factories will close.”"

Shelby wrote:Shelby wrote:
"...Ray remember I told you that China's profit margins are near 0:....."

Ray replied:
"Amazing! Just where is their growing reserves comeing from?"

Are you sure you studied economics at the finest institution in London? Seems you don't know the difference between profit and a trade surplus. A trade surplus can result from exporting more than a country imports. It has nothing to do with the amount of profit being made on those exports. It entirely possible to be losing money (no profits) and export more than one imports.

It is claimed that China's surplus has been 11% of GDP (although it declined drastically recently due to huge stimulost which drove Chinese imports way up). But this doesn't mean China's exports generate 11% profit margins. It just means China is exporting 11% more than they are importing.

To say that China is adding 11% value, might be more accurate, but again that wouldn't be profits. They may be mining and producing raw materials that go into exports that contribute to the 11% value added, but that doesn't mean those operations are generating 11% profit margins.

Shelby wrote:Ray,

Wealth and material production are not the same, and in fact can be quite opposite and fool the eye. For example, Egypt built great pyramids using slaves, it didn't mean that Egypt was building great wealth. It was actually squandering it's wealth.

It is a fact that China is enslaving its people by pegging the Yuan exchange rate, lower than the free market would. So don't be surprised to discover that China squandering the wealth that should have gone to the workers, and overproduced (squandered wealth) in sectors that are redundant.

You see Ray, you just can't seem to understand entropy. NEVER is a centralized decision maker as efficient in allocating wealth and capital, as is a free market of multitudes of people making their own decisions with their wealth.

China's central bank stole the wealth from the workers by pegging the Yuan.

Theft never works out in the end Ray. You will learn that the hard way apparently.

Shelby wrote:Yes Ray, the central banks of the world are robbing the people in every country. So what is your point?

The average Chinese worker would much rather have his fair value on the free market exchange rate (and thus more personal income), than to have it expropriated and spend on high mountain trains to (and govt expenditures to suppress human rights in) far flung Tibet. That is but one example of waste of wealth by the centralized decision makers in China.

The Solution

The national government has been proactive in implementing a number of programs including higher down payments and higher mortgage rates on second home purchases, 100% down for homes after the second home, the initiation of property taxes, disallowance of government sponsored enterprises from developing real estate, and other restrictions to cut the speculation in its four or five biggest cities. The government has required developers to build more affordable housing (of which there is a shortage) and to stop building high end housing. The effects have been as expected. In recent weeks anecdotal evidence says prices have fallen 20% in these cities. We expect prices to fall further and to return to a normal range within a year or two.

The combination of less real estate purchased and lower exports will cause China’s GDP to slow to no less than 5% in the second half of 2010. We expect GDP growth to pick up again in 2011.

Shelby wrote:Ray I told you China enslaved its own people with the Yuan peg:

http://www.bloomberg.com/apps/news?pid=20601089&sid=agH5bsyUCva8

Apple's Steve Jobs said "but they have nice working conditions, restaurant, cinema, etc".

I tell you all that is shiny and modern, is not the reality for people. They have bills to pay. $137 per month is slavery.

...Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.

I want to remind you that I am only talking about the unfunded portions of Social Security and Medicare. It is what the current payment scheme of Social Security payroll taxes, Medicare payroll taxes, membership fees for Medicare B, copays, deductibles and all other revenue currently channeled to our entitlement system will not cover under current rules. These existing revenue streams must remain in place in perpetuity to handle the “funded” entitlement liabilities. Reduce or eliminate this income and the unfunded liability grows. Increase benefits and the liability grows as well...

John Willliams of ShadowStats.com wrote:If you look at those GAAP-based statements and include in the deficit the year-to-year change in the net present value of the unfunded liabilities for Social Security and Medicare, what you'll find is that the annual operating shortfall is running between $4 and $5 trillion; not $500 billion as we saw before the crisis or the $1.4 trillion that they announced for fiscal 2009. Now to put that into perspective, if the government wanted to balance its deficit on a GAAP basis for a year, and it seized all personal income and corporate profits, taxing everything 100%, it would still be in deficit. It can't raise taxes enough to contain this. On the other side, if it cut all government spending except for Social Security and Medicare, it still would be in deficit.

Shelby wrote:Here follows a shocking, epiphanic equation for "Inflation versus Deflation" from the author (myself) of "How Deflation is Inflation":

http://www.marketoracle.co.uk/Article16212.html

Assets become way over priced when people are allowed to borrow 30 years of income, or recently an infinite # of years of income (subprime, liar loans). The lack of land titles and debt-financing is often why real estate is still so cheap in rural developing world. I expect this will change in a NWO.

The deflation in the price of saturated credit based assets (e.g. real estate) is not the primary phenomena, and this is the key mistake of the deflationalists (e.g. Mish's credit money supply equation).

The near-term measure of the money supply, credit, and velocity of money are meaningless noise. What really matters is the ratio of the productive to non-productive sectors (population). The lower the ratio, then the higher the inflation in future. This may be the first time any one has pointed this out, I dunno. Why is this so? Because less production means higher prices.

That is why I have recently written that we should be looking at the accrual deficits in USA, which are running $5 trillion or 33+% of the GDP:

https://goldwetrust.forumotion.com/economics-f4/inflation-or-deflation-t9-360.htm#2983

This means future inflation is being accrued at 33+% per annum acceleration, as the non-productive expands relative to the productive (the public sector is displacing the private sector).

And I have written about my well-founded theory, that this shift is due to the massive unemployment resulting from extreme automation at the twilight of the Industrial Revolution:

https://goldwetrust.forumotion.com/technology-f8/computers-t112-45.htm#2984

Shelby wrote:...The near-term measure of the money supply, credit, and velocity of money are meaningless noise. What really matters is the ratio of the productive to non-productive sectors (population). The lower the ratio, then the higher the inflation in future. This may be the first time any one has pointed this out, I dunno. Why is this so? Because less production means higher prices...

Shelby wrote:...The good assets (the collateral) on the Fed balance sheet will be sold back to Fed member banks for pennies on the dollar, while any attached obligations will be inflated away. The hyper-inflation will wipe-out everyone but the Fed member banks...