The Daily Climb-Wednesday, Nov. 30th, 2011

Wednesday, Nov. 30th, 2011 – The funny money game continues. The opening article this morning, details China’s move to free up it’s currency and get it’s factories back to full speed. Their housing market stinks, but it’s hard to buy a house, without a job and income.

Now, this is a very interesting story. I’ll have to think about where all of the possibilities in this story come out. I would think that people couldn’t just go exploring these tunnels, without drawing official attention.

I got out of it that, a situation stays stable, as long as no one panics. There’s a lot to be said for remaining cool under fire. Yet, there are limits. We can say that nothing is a crisis. If the ground splits open and fire comes out of the rift, that’s a crisis. This current debt boil will burst, if it doesn’t get lanced and drained, soon.

People used to be able to say that, as it was in the days of their fathers, so nit is, even today. They can’t say that, anymore. Who knows what tomorrow will bring?

There’s a novel thought. China’s production economy has to take desperate measures to crank the factories back up. They have to do that by competing with their currency. It wasn’t so long ago that they wouldn’t float their currency against other currencies. Now, they have to bend to keep civil unrest at bay. People without paychecks can’t buy things.

There are other factors to consider. With both declining purchasing power and rising unemployment, deflation can still occur. Even with an increasing fiat paper supply, an increasing number of people have to cope with zero dollars. They can’t buy houses, cars, some won’t be able to buy even food. The chain reaction decline in demand would produce deflation. Unless Helicopter Ben does drop bales of currency out of the sky, we could see deflation.

They don’t want to stampede the livestock. They impose martial law, without calling it, martial law. They tell us that it’s to protect us from the terrorists. They tell us it’s for the children. They tell us that only the experts can understand it. They tell us anything to keep us frozen in fear.

I recently wrote that we are reliving the Great Depression, leading up to WW II. These measures are every bit as Draconian as anything that happened, back then. The threat is magnified by the application of technology that is available, today.

“Government, being a magnifier of human nature is, in it’s best state, a sleeping murderer.” – Georgesblog, 2003

I’m going to start calling the Fed the Paper Mill. Banking is the only industry in which increased production is bad for the economy,

I’ve been saying all day that this market response to Fed policy is not a good thing. It will go bust, on the first bad news.

Oh, joy ! More funny money to play with. As I’ve been saying all day, the market response is not a good thing. Pumping debt will collapse the currency. It always has, always will.

While European bonds are gagging maggots, I’m watching for a U.S. Treasury auction that digs up a turd, instead of a turnip. The movers and shakers earned all the trouble they get.

Looks good, on paper. The problem is that there are politicians, tax collectors, attorneys, bankers and other thieves out there.

Yes, the Fed is predictable. To borrow a quote, “the Fed is no more Federal than Federal Express, and they have no reserves.” When they stop calling debt assets, then the conversation becomes much more realistic.

The market response to the growing urgency to print currency is not a good thing. This rally will be short – lived. The bow of the Titanic rose, when the ship hit the iceberg. In economic context, the debt load will rip a hole in the economy. Got a seat in the lifeboat?

That horse left the barn at Jekyll Island, back in 1913. It’s been a stampede, ever since. By the process of gradualism, the country has goner to Hell in a hand basket. My grandfather was right, 50 years ago.

Better yet, every time you hear the word, “tax”, buy more physical gold and silver. That way, you can sit back and watch your garden grow, while everyone else is trying to figure out what a job is.

That was a quick ice – breaker. Now, we can watch the fur fly, when S & P, Noody’s jump on the train wreck. The week was starting to quiet down. Watch for what the UK and the Fed respond with. This could turn into crack whores on parade.

The Mafia should be taking notes. This is how loan – sharking is done.

Of course, the Constitution is Corporate. The Federal corporation was formed by agreement, among the States, for the purpose of managing their mutual commercial affairs. 

Economic data has been a manipulated fabrication for at least a decade. The agenda driven pace has accelerated to the point where it is difficult to tell wgere one lie ends, and the next begins.

Thank you for liking my blog, “The Daily Climb”. I’m always looking for new blogs to follow, and you have a great one. It’s going to take all of us to get through this mess.

The ratings agencies work muscle in the central bank protection racket. The banks want countries in financial trouble. The central banks gain power over national govetnments and exact tribute from popularions. That is the end game and the end goal.

This doesn’t just drive a nail in the coffin. It starts to fill the hole in. The die is cast. Now, the central banks have no choice, Print, print, print.

There’s a limit on how much adrenaline can be administered, after which the patient ceases to respond. The global economy is the patient. Fiat currency is adrenaline. They can’t jump start a corpse. They’ll just have to find out, the hard way.

This goes way back. A verbatim translation of a passage from the Nazi Law on Weapons of 1938 is contained in the Omnibus Crime Control Act of 1968. We have Senators Kennedy and Dodd to thank for that. Nazi roots run deep in the ruling families of the United States. Prescott Bush was convicted of trading with the enemy, for his business activity with Germany, during the war.

This is the artificial stimulation that I wrote about in “Fiat Addiction”. Every time you see money mentioned, substitute the word, “cocaine”

Fiat Addiction Update 11/09/2011

This illustrates the point that war is a commercial action. With increasing U. S, activity in Asia, China steps up to improve it’s export position, competing with India. The housing market is only one of China’s internal issues. Lowered production demand idled factories and contributed to civil unrest. Chinese people want a paycheck, just like everybody else. 


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