First
we salute those brave, quick thinking, US Marines on the Amsterdam to Paris
train who prevented a massacre yesterday. May we have more US Marines on
European trains!
We hope all three countries involved know how to properly show
their appreciation.
We
have entered the final act of the Great Nixonian Error of fiat money (GNE,)
1971-present. The benefits of fiat money were all front loaded and long ago
dissipated in sex, drugs, rock and roll, I want it now lifestyle, wars, bribes
to socialist voters, unlimited unrepayable debt, financialised casinos, and the
malinvestments of China. We have entered the era where central banksters are
increasingly irrelevant, out of ammo, and trapped in a mousetrap of their own
making. Having let loose serial bubble Meister Greenspan in 1987, twenty years
later the Orwellian financialised bubble he eventually created blew up in 2007-2008. First in 2007,
in the first bank run in the UK in 150 years, Northern Rock, and in 2008 the collapse
of Bear Stearns, Merrill Lynch, AIG, Lehman Brothers, and many more too
numerous to name. In response, the massed ranks of panicked central banksters,
shocked at the calamity they had created, closed ranks and tried to cover up.
Balance
sheets were expanded by Quantitative Easing, ZIRP introduced to steal from the thrifty, competitive devaluation was rushed
out, extend and pretend brought in, mark to the model pretend valuations, and
unlimited credit rushed into the casino. Seven years on, the central banksters
have only a massive global stock market bubble to show for it all, and now a
hard landing in China is bringing it all crashing down. The Great Deflation is
already underway. My own guess is that globally we entered a new recession
somewhere between June and December of 2014. The global oil glut was probably
the leading indicator. Far from an excess of oil supply, my guess is that history
will come to show it was a collapse in oil demand unrecognised at the time.
Simply
put, China became the world’s biggest bubble ever. Another unintended
consequence of the Great Nixonian Error of fiat money. The GNE had a good run,
1971 to 2015. The Great Deflation will
not last, Moses like, as long as 44 years. My guess is that it will run only 5
to 10 years. But that is bad enough. My guess is that like all troubled times
past, human ingenuity, thrift, hard work and a younger generation, will be the
basis of establishing the new prosperity. But we also need to end criminal
central banksterism and fiat money.
We
also have the added advantage that we are just at the start of our New Carbon
Age of graphene and virtually unlimited, almost free solar power, and 21st
century electric energy storage solutions.
Think 1884 and the invention of the practical steam turbine that ushered
in the first electric age. Think 1908 “Tin Lizzie,” the motor car for the
masses. Think January 1914 and Henry
Ford’s $5 a day wages.
The
trick for us all now, is to get from here to there.
I will build a car for the great multitude. It will be large
enough for the family, but small enough for the individual to run and care for.
It will be constructed of the best materials, by the best men to be hired, after
the simplest designs that modern engineering can devise. But it will be so low
in price that no man making a good salary will be unable to own one – and
enjoy with his family the blessing of hours of pleasure in God's great open
spaces.
Henry Ford.
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