Short Circuiting Hyper-Inflation

8/14/2019 Short Circuiting Hyper-Inflation

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Daniel Saarinen

6/17/09

[email protected]

Short Circuiting Hyper-Inflation to Save the Global

Economy

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Abstract

The global financial crisis can be traced to private banking entities.

The $1.5 Quadrillion in derivatives that triggered the collapse still exist in

the hands of the banks. When confidence is lost in the system, this illusory

money will flee the paper superstructure of the economy and seek real

values. The derivatives and zombie banks must be isolated from the real

economy, and destroyed before this financial singularity consumes all real

sectors of the global economy.

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Executive Summary

The issuance of money is a sovereign power of the state. From the point of view

of the state, money only serves the purpose of being a medium of exchange. From the

point of view of private people, money is also a store of value. When private interests

have control of the money supply, they will act as though they can create value with

their power. This is a confusion of the purpose of money, and is corrosive to all

civilizations.

Private banking interests have created $1.5 Quadrillion in counterfeit paper

value in their systems. They are forcing the world to interact with this false value as

though it represents something real. The time will come soon when these counterfeit

values attempt to move into the real sectors of the economy, and turn themselves into

capital goods. This will manifest itself as a form of Hyper-Stagflation when all real

sectors are devoured and stripped of value, and all asset prices explode as counterfeit

assets compete for scarce resources. This will despoil the entire wealth of all the people

in the world, and deliver it into the hands of the hidden few that control the paper

superstructure of the world economy.

The solution is to revoke the licenses of the zombie banks, and stop the trading of

all derivatives. The false values cannot be allowed to flee, and seek refuge in the real

economy. Then the zombie banks can be imploded, their executives jailed, and the

derivatives destroyed, deleted and liquidated before they can metastasize and consume

the real economy.

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Introduction

The battle against the coming bank-led inflation is a battle for liberty, private

property and human dignity around the world. The private central banks, and their

zombie bank minions, must be stopped. Their derivatives must be isolated, and deleted.

Their executives must be put on trial for their crimes, have their assets seized, and the

fraudulent fiat debts owed to them repudiated. This is the only way for freedom to

emerge from this arc of history.

The most severe problem facing the international community in the near term is

the prospect of Hyper-Stagflation1 associated with the bailouts of zombie banks by their

parent central banks. If the private criminal bankers are allowed to have their way, the

entire world will be plunged into economic turmoil, and war from which it is doubtful

that any representative forms of government will be able to emerge. There will only be a

world of control, stagnation and tyranny left to the next generation. It will be a dark age

administered by a scientific dictatorship, darker than the inside of a closed bank vault.

In September of 2008, the American financial markets collapsed. An

interconnected web of commercial banks, private banks, brokerages and insurance

companies had become hyper-leveraged beyond any credibility over the previous decade.

The damage from the counter party risk associated with these bankruptcies spread around

the world as cascading margin calls caused otherwise sound businesses and investment

firms to fail, and be consumed by bigger well connected banks. The corporate dominated

1 The premise that the global economy is heading into a period of stagnation, combined with hyperinflationdue to the massive monetary expansionbeing orchestrated by the world's governments and central banks.

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government-media complex was activated, and with its monotone hypnotic voice it

demanded money from the taxpayers.

The universal response around the world has been to create vast sums of fiat

currency, and deliver it into the hands of the very same bankers that caused the collapse

in the first place. Over $25 Trillion has been generated out of the private central banks of

the world above and beyond anything needed for economic growth (which is negative).

Even the casual observer can guess that this much extra fiat currency dumped into the

economies of the world will cause severe inflation to occur. If economic stimulus had

been used to build new industry and develop new technologies, it would have helped the

United States. Instead, almost all of the money has gone to the banks and is being used to

buy up healthy businesses. The taxpayers will also pay interest on the money that the

central banks created to give to subsidiaries.

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Approach

This analysis will start with a look at money itself. We cannot even begin to

understand how inflation works without at least some basic understanding of what money

is, and what it is supposed to do for us. After our working understanding of money is

established, we will proceed to look at a few useful historical examples of inflations that

are relevant to our situation today. The actions of the government in these cases will help

us to understand what is going on today with our own looming inflation. This will lead

us into the discussion of the current financial powers that are driving the current situation.

The origin, structure and effects of the current banking structure in the United

States will be examined. The fractional reserve banking system will be addressed here as

well. The beginning of the derivatives problem will be examined next. A basic

explanation of different types of derivatives will be offered to allow a better

understanding of the problem facing the world.

The next section will deal with the solution to the problem. Academic and

historical examples will be given to support the solution offered to the problem of hyper-

inflation.

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A Brief Explanation of Money

Some of the first work done on economics and money was done by Aristotle. Our

study of economics comes down to us from the ancient Greeks. O2 (oikonomia)

means management of the household. The philosophers of the day were studying the

methods of household management in order to teach young aristocrats how to manage

their resources more efficiently. It was the political implications of the mismanagement

of resources that made it an interesting topic for the giants of human thought to study.

The origin of value, money, money lending, savings and interest are a part of this.

In The Politics3,Aristotle believes that money is two separate and complimentary things:

a store of value, and a medium of exchange. Aristotle is 75% correct in this assertion.

Money does indeed serve as a medium of exchange, but it runs into trouble as a store of

value. It is true that money is a medium of exchange for everyone, but private

individuals and the state do not view money the same way when it come to it being a

store of value. Private individuals can, and do indeed use money as a store of value in

addition to it being a medium of exchange. It is relatively easy to add up the value of

everything a private person owns, and list it in terms of money because it is not really that

much. Individuals operate on a short time scale, and interact with the rest of their country

in a very limited way. This makes it easy to save money in case of an emergency or an

opportunity to invest. On the other hand, the issuance of money is a Sovereign power,

and the group that wields the Hobbesian Sovereign power can increase or decrease the

2 Dictionary.com Origin:152030; (< MF economie) < L oeconomia < Gk oikonom household management, equiv. to oko(s)house + -nomia NOMY.3 Book I, The Politics. Aristotle, c350 BC.

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money supply as it sees fit. Increasing the money supply without any basis for the new

wealth is called inflation. A decrease in the money supply in relative terms to the

amount of capital goods in the economy is called deflation 4.

Wise governments know that they cannot create real value in their economy by

executive fiat. The real values are contained in the farms, factories, cities and

infrastructure of the nation, and not in money. It does not matter whether the money is

defined as fiat paper or as gold. Even during the days of the gold standard in the United

States, no one would suggest that the entire value of the country (pre-Fed) in 1912 could

be quantified by some pile of gold in Ft. Knox.

Of course, no simple pile of metal could approach the real value of a rising

industrial superpower. A simple application of reason tells us that real value, and real

capital goods are separate from the thing we call money. The natural evolution of a

barter economy is for the most valuable and portable of commodities to become the

medium of exchange in any given area. Eventually this list is narrowed down to one

thing, and more often than not throughout the world that thing is gold or silver. This is

not to say that gold and silver are the only possible forms of money, or that they are

problem free.

4 n economics, deflation is a decrease in the general price level of goods and services. Deflation occurswhen the annual inflation rate falls below zero percent, resulting in an increase in the real value of money a negative inflation rate.

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Historical Inflations

The Severan Dynasty of the Roman Empire

A classical example of intentional government induced inflation is the action of

the Roman Emperor Caracalla. Gibbon said of him, Caracalla was the common enemy

of all mankind. He spent his reign traveling from province to province so that each could

experience his rapine and cruelty5. He preyed on the Roman world from 211-217 AD.

Caracalla wanted to keep the Legions happy with him, so he decreed a raise in their pay.

He then proceeded to immediately reduce the silver

content of the Roman denarius to 25% of its former

value6.

The good times continued for a few years after this

event, but soon enough the merchants raised their

prices to make up for the lower sliver content in the

coins. This caused tax and other economic problems across the empire as bad money

began to drive out good. Greshams Law was operating thirteen centuries before he

articulated it7. The Legions were cheated, and this combined with the general level of

wickedness emanating from Caracalla was enough to erode their loyalty. In April of 217

AD, the Praetorian Guard stepped aside one day, and an assassin sent him on to his

5 Gibbon, Edward. The Decline and Fall of the Roman Empire. Volume 1, Chapter 6. Accessed athttp://ancienthistory.about.com/library/bl/bl_text_gibbon_1_6_2.htm6/17/096 Tainter, Joseph. The Collapse of Complex Societies. Cambridge University Press 1990. Page 139.7 Bad Money Drive out Good.

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reward. The end of Caracalla was not the end of inflation in Rome, but the beginning.

Towards the end of the Western Empire, Rome would no longer accept taxes in Roman

denarius because they were completely debased. Byzantine or other good currency was

required to satisfy tax obligations. The other group that would no longer accept Roman

money was the barbarians. How does one bribe a barbarian with lead coins?

The American Civil War

During the Civil War, the Union needed to fund its war operations. In 1861 the

Lincoln administration searched far and wide to secure war funding. Private bankers

connected to the Rothschild banking empire wanted to charge between 24%-36% interest

on the loans. Instead of signing away the future of the nation to private banks, Lincoln

called on Congress to exercise the power it has under Article I of the Constitution to

create money. This money is what became known as the Lincoln Greenback. The

Greenback was not backed by specie, and was inherently inflationary. The good part of

the deal is that the interest rate attached to them was 0%.

By the end of the Civil War, the Union had experienced a total of about 80%

inflation, not quite a doubling of price levels8. Compared with borrowing at 36%, it was

a good deal. Borrowing also causes inflation in an economy, as the borrowed money

competes for the same scarce goods and services that the Greenbacks would compete for.

The main difference is the absence of crushing debt at the end of the cycle. The entire

8 Civil War Price Guide. Accessed athttp://www.valuetrac.com/civilwar1861.phpon 6/17/09.

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war was not financed with

seigniorage9, and regular taxes and

duties were still collected in

addition to issuing new money.

In contrast, the Confederate economy experienced 5,000% inflation by the end of

186410. What accounts for this is the difference in capital goods present in the economies

of the North and South. The North had 70% of the wealth of the country, and as the war

progressed Southern industry was systematically targeted for destruction by the Union

armies. With fiat currencies, the fortunes of war are much more important than with

specie backed currency. The inflation in the South really took off after it was clear they

were going to lose in late 1864.

Weimar Republic Inflation

One of the legendary inflations of all time is the Weimar Inflation of 1921-1923.

In only two years the German people were subjected to 854,000,000,000% inflation11. A

postage stamp would cost 50,000,000,000 Paper Marks. This was the overnight

destruction of the middle class in Germany. All forms of savings and investment were

wiped out, and all pensions and social welfare payments were made meaningless.

Once the country had become addicted to inflation from 1918-1920, it was

impossible for the government to stop printing money. Any elected leader would be run

9Seigniorage, also spelled seignorage orseigneurage, is the net revenue derived from the issuing ofcurrency.10 Civil War Price Guide. Accessed athttp://www.valuetrac.com/civilwar1861.php on 6/17/09.11 Bresciani-Turroni, Constantino. The Economics of Inflation: A Study of Currency Depreciation in Post-War Germany. Pages 30-36.

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out of office if he let the economy crash by turning off the money pump from the

treasury. Up until the economy fell off of a cliff, everything was moving at a feverish

pace in 1920-1921. Inflation was still relatively low, and unemployment was near zero.

The incredible money creation caused all sorts of projects to be carried out that

would never

have been

contemplated

under normal

monetary conditions. Inflation of the money supply creates the illusion of abundance in

an economy. The easy money makes it easier to acquire the factors of production (land,

labor and capital) and put them to use. The illusion is only an illusion. Most projects

will encounter great difficulties part of the way through, as

prices of the factors of production increase rapidly.

Industrialists and speculators that own the stranded

projects suffering from cost overruns howl to the

government for more money in order to complete their

schemes.

Many of the projects that are completed early on

end up only being over capacity. The feverish activity during an inflation makes it seem

as though the sky is the limit for every form of commerce. Everyone will need fifty pairs

of shoes, three steak dinners a day at three different restaurants and an investment house

for each day of the week. Entrepreneurs responding to the false signals of inflation

attempt to meet this phantasmal demand, and engage in massive mal-investment

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schemes. In the aftermath of many inflations, great swaths of the economy are torn down

because they are worthless. Factories that are not needed to produce unwanted goods,

restaurants that no one will eat in and houses that no one wants to live in are torn down.

We hear recently there are plans to bulldoze large portions ofFIFTYAmerican cities12.

All forms of investments that are slow, steady, reliable and honest are eschewed

both by the people and by the government. The result of this is that when the central

bank money machine is turned off, everything dies in a thermodynamic collapse of the

economy. Mile after mile of factories lie dormant, as do the power plants created to serve

them. Banks collapse when they have no capital left, and only a book full of foreclosed

property no one wants to buy. Retail shops and restaurants die by the thousands as

people struggle to survive. There are other, more ominous consequences to a dying

inflation.

The failure of the Weimar leadership to

curtail the inflation caused people across the

political spectrum to lose faith in the system

of government itself. Both National

Socialist, and Communist movements

became increasingly popular as alternatives

to the helpless leadership in the current

government. Just as the inflation was reaching its crescendo in 1923, Hitler and the

NSDAP13Storm Troopers attempted a revolution with the complicity of Erich

12 Leonard, Tom. US cities may have to be bulldozed in order to survive. London Telegraph, 6/12/09.Accessed at http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5516536/US-cities-may-have-to-be-bulldozed-in-order-to-survive.html13 National Socialist German Workers Party

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Ludendorff. This was foiled, but it illustrates the extreme state of the political world of

Germany.

The Munich Putsch took place almost at the same time that the inflation was

stopped by Hjalmar Schacht, the currency commissioner of the Weimar Republic. He

ordered the cessation of money creation, and in one stroke took it down to zero. He

introduced the Rentenmark as a new German currency at a conversion rate of

1:10,000,000,000,000 old marks14.

The inflation was stopped and the Weimar Republic had its life extended by ten

years. Hitler was arrested, and spent eight months in jail devoted to his writing. He

emerged a reformed individual, and decided to focus on legal ways of achieving power.

He did so in 1933 when he was elected Chancellor of Germany, and the rest is history.

Private Interests, Private Profits

14 Krause, Chester L. and Clifford Mishler (1991). Standard Catalog of World Coins 1801-1991 (18th ed.ed.). Krause Publications.

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The story of the current financial system in the United States begins in 1913 with

the Federal Reserve. Here is a brief overview of its historical antecedents. The First

Bank of the United States was chartered by Congress in 1791 at the behest of Alexander

Hamilton. There were many enemies of the private bank who believed it would be

controlled by the British banking system, and they were able to limit the lifespan of the

Bank. It had a twenty year charter on it, and it expired in 1811 right before the War of

1812 was launched to re-conquer the United States. The United States was severely

harmed by the British action in the war, and needed sources of funding in order to

rebuild. This forced President Madison to revive the private bank as the Second Bank of

the United States in order to increase the credit worthiness of the nation in the eyes of the

European Money Trust.

The Second Bank of the United States would engage in massive corruption, and

produce a speculative real estate bubble in the country in 1818, a mere two years after its

re-emergence. When the bubble was sufficiently built up, the Bank called in debts and

bankrupted many people causing the Panic of 1819. The Bank became the greatest

enemy of Andrew Jackson, and he made destroying it his primary goal in the 1832

presidential election. His mistake was in simply abolishing the Second bank, and not

taking control of it. Disarming the lawful government of a publicly held central bank

threw the country into economic chaos for years afterwards.

The bank was a private corporation that was not affiliated with the government in

any way, and even though its existence was upheld in McCulloch v. Maryland17 U.S.

316 (1819)15, it represented an unconstitutional usurpation of Article I authority by a

15 This case can be viewed at http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=17&invol=316

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foreign controlled private entity. The Second Bank of the United States received all the

deposits of the federal government, and had a great deal of reserves with which to play.

The Bank would speculate with the public money, and when it won it kept the profits.

When it experienced losses, it would charge it to the tax payers.

The Second Bank was predominantly owned by British interests including the

Rothschild banking clan in City of London. President Jackson investigated the Bank, and

found that it was using the tax revenues deposited in it to influence the election of

Congressmen and other officials in the states. This meant that British banking interests

were in fact running a significant part of the federal government by 1832. The Second

Bank was set to expire in 1836, but it sought to be re-chartered four years early in 1832.

President Jackson vetoed the bank. In 1835 Jackson began depositing federal funds into

banks besides the Second Bank of the United States, and there was an assassination

attempt against him that year by a madman acting alone who supported the Second

Bank. Jackson believed that the madman was guided, and put up to it by elements of the

Rothschild Empire. It fits a long historical pattern in America of madmen acting alone,

but it is very difficult to prove anything one way or the other. What we do know is that

the entire wealth of the United States was up for grabs if President Jackson could be

killed, and the bank re-chartered in 1836.

The United States has been fighting against private banking interests since the

beginning. Control of the money was specifically given to Congress, and not to some

private outfit. The power to define and regulate money is a Sovereign power, and should

never be controlled by a private interest lest it be abused to the detriment of the people.

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After 1836 it would take the enemy 77 years to strike again. This time, they would play

for keeps. Total power and complete control was, and is the goal of the Federal Reserve

System. There would be no sunset clause this time.

Libertarian minded people should take heed of the mistake of Jackson, because

the Ron Paul faction would happily repeat it if given the chance. What is needed now is

the real Third Bank of the United States, and not the anarchy of the post-Jackson

presidency.

The Federal Reserve System

In November of 1910, the power elite of western banking met in complete secrecy

at the vacation estate of J.P. Morgan on Jekyll Island, Georgia16. Here they created the

plan for the Federal Reserve System. Senator Nelson Aldrich was a key proponent of the

Federal Reserve System, and he was close friends with J.P. Morgan and was married into

the Rockefeller clan. The Federal Reserve Act was passed during the Christmas holiday

when many members of the House and Senate were out of town. Private bankers were

given control of the American economy in the virtual dead of night.

Also during 1913, the 16th and 17th Amendments were put into force. The 16th is

the Income Tax, and the 17th is the popular election of Senators. The Income Tax exists

only to pay interest on the fiat debt created by the banks, and is a mechanism to transfer

American wealth offshore to private bankers. It does not fund any part of the operation

of the government. The 17th Amendment allows the banks to directly fund the campaigns

16 Griffen, G. Edward (1994, 1998, 2002). The Creature From Jekyll Island: A Second Look at theFederal Reserve.

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of Senators in addition to the Congressmen they buy, whereas before they had to get

control of a state legislature in order to put a Senator in power. Anyone doing research

on the politicians representing them in Washington will discover that more often than not

the single largest category of campaign funding will be banks, financial companies,

insurance companies and real estate.

Fractional Reserve Banking

Fractional Reserve Banking is one of the magical ways that money and debt come

into existence. The Federal Reserve itself is not the only entity that can create fiat money

out of nothing. Every bank down the food chain in the system has the right to create

money and debt out of nothing.

Here is how it works. The central

bank sets the reserve ratio that the

subordinate banks must adhere to.

An example we will use here, and it

is a conservative one, is 10%. This means that for each dollar that is in the bank, it can

loan out $9 and charge interest on them. This system causes money, lending and debt to

explode in a country. Non-personal time deposits means all the money that comes in that

is not in a checking account for a corporate entity, and these have a reserve requirement

of 0%. Eurocurrency international deposits have a 0% requirement as well. In practice,

most large banks have arranged it so that their practical reserve requirement is near 0%

today.

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If the Fed creates $1, and lends it to a commercial bank, that bank will now have

$10. It will lend $1 to nine other banks, who in turn now have $10. These banks loan out

$9 each, and so on until the Ponzi scheme collapses and the banks foreclose on

everything. Then after the banks foreclose on everything and already own it, they go to

the government and demand bailouts so that they can buy up the rest of the country at

knock down prices. And people mock 1990s Russia as being corrupt

As far as the bailouts go, they are

maintained at the highest levels of secrecy.

Senators on the appropriate committees can look

into the secrets of the CIA and NSA. They can

learn the location of all of our nuclear weapons,

and the war plans to use them. But they cannot

learn who received bailout money, taken from the

taxpayers and doled out by the Federal Reserve System.

Deriva-whats?

Financial derivatives are a class of fraudulent financial instruments that have been

used as a weapon of mass destruction to destroy our economy and political system. They

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exist only theoretically, and occupy a place in between money and common stock. They

are not money strictly

speaking because they

cannot be spent

anywhere. They are not

common stock because

they do not represent an

investment and

ownership share in a real firm that produces something. They do have the ability to

rapidly turn into money however, and at the slightest hiccup in the economy the

derivatives will try to flee back into the world of money and bonds.

Credit derivatives are used in order to achieve massive amounts of leverage.

Criminal operations like Fannie Mae and Freddie Mac achieved levels of leverage of 60:1

to 200:1 before the 2008 collapse1718. The American taxpayer is on the hook for $5-$6

Trillion dollars for the Fannie/Freddie Ponzi scheme. Who is in prison for this?

The London office of AIG alone generated over $3,000,000,000,000 in

counterfeit derivatives, which is an amount larger than the GDP of France. Their penalty

for running a gargantuan counterfeiting operation was to have their backs injured

carrying billions of dollars of American taxpayer bailouts out the back door of the

treasury in order to pay it through to European banks and Goldman Sachs to make sure

none of the too big to fails got hurt for speculating. Meanwhile everyone else is too

17 Denniger, Karl (2008). Freddie, Fannie, Banks and Government Debt 7/12/08. Accessed athttp://market-ticker.denninger.net/archives/513-Fannie,-Freddie,-Banks-and-Government-Debt.htmlon6/17/09.18 Cohan, peter (2008). Fannie and Freddie 60:1 leverage could drive $1 Trillion Bailout 5/6/08.Accessed at http://www.bloggingstocks.com/2008/05/06/fannie-and-freddie-60-to-1-leverage-could-drive-1-trillion-bail/ on 6/17/09.

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small to save19. Goldman Sachs itself was converted from a private investment bank to a

commercial bank on a Sunday night in order to give it access to taxpayer money20. Can

any of us too small to save people get anything done at a bank on a Sunday?

There are currently over $1.5 Quadrillion in financial derivatives lurking in the

banks around the world. They are toxic, and have negative value because they do not

represent anything real. They only represent fiat counterparty

risk and debt. The banks that have these instruments on their

books are zombie banks, in that their net worth is less than

zero. They are the walking dead of the financial world, only

existing to feed their never ending infernal hunger.

The Federal Reserve System and the other central

banks of the western world are trying to force these liabilities to have value, and to count

for something in the real world. The GDP of the world is something around $65

Trillion21, so if the banks are allowed to get their way, the derivatives from the shadow

world are going to consume the real world.

The bailout money that we were told was going to revive the credit system is

being hoarded by the banks. The Fractional Reserve System only works when the banks

want to lend, and the Fed is having trouble pushing the string when it comes to actually

making any of the zombie banks lend to the little people. The returns are not great

enough for the zombie banks, and given the true state of their losses they have to seek

gross speculative profits in order to stay alive. They will flood their money into

19 Credit to Gerald Celente for the catch phrase, The too big to fails, and the too small to saves.20 Sorkin, Andrew Ross and Bajaj, Vikas (2008). Shift for Goldman and Morgan Marks the End of anEra 9/21/2008. Accessed at http://www.nytimes.com/2008/09/22/business/22bank.html21 CIA World Fact Book numbers accessed at http://www.economywatch.com/world_economy/world-economic-indicators/world-gdp.html

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commodities futures once again just like in 2006-2008 and oil will be driven over $150

again by the likes of J.P. Morgan/Chase and Morgan Stanley.

Healthy businesses will be consumed by the banks, and stripped of assets for

quick profits. They will attempt to re-inflate the dead real estate bubble to recover value

from the hordes of foreclosed properties they are sitting on. This is only going to make

things worse in the end if they are not stopped, because they are not doing any good for

the country. The zombie banks are the self licking ice cream cones of political economy,

and they need to be melted down and thrown in the trash can of history.

The Golden Gun Solution

The Man with the Golden Gun was an expert. He only needed one shot to kill his

target. Our target is the Hyper-Stagflation that is going to happen when the derivatives

try to rise from their graves and consume the real economy. Trillions of dollars of these

instruments are eventually going to try and bid up the price of every thing in the real

economy.

The real economy is only going to have one shot at stopping the private central

banks and their zombie bank minions from taking over the world with their counterfeiting

machines. The first and only shot has to kill it deader than Donald Trumps toupee, or

else it will be too late.

It begs the question, Why hasnt the inflation happened already if all these

trillions of bailout money have been given away or promised to the banks? The answer

is that the money is seeking speculative profits right now in the virtual paper

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superstructure of the economy, and it is not competing for the scarce factors of

production in the real economy Asset prices in the stock markets are increasing again

even though there is terrible economic news all of the time. Demand and production

numbers are down, and real unemployment is at or above 20% already. The reason paper

assets are increasing in nominal value is because that is where this new money is going.

Various types of securities and commodities are the only things going that offer the

prospect of speculative profits. The timing on the beginning of the real collapse is not

knowable in any precise sense, because it is a matter of human action. As long as the

perception persists that there is hope for these assets, market participants will be reluctant

to head for the doors all at once for fear of triggering the very panic that will destroy the

assets they are trying to get out of.

No one knows what the trigger could be, but it will be like the bursting of a dam

when it comes. Once the collapse of the final world banking bubble begins the only way

to save ones wealth is to be the first to the exits. What is on the other side of the exit

door? Pass through that door, and you will find the real sectors of the economy where the

rest of us live and work. The first level of collapse will be for all the speculative money

to panic and flee into the bond markets. This will bid up the price and drive down yields

on these debt instruments. As the yields fall, the money will then seek to enter other

areas of the economy like water flowing to the lowest point it can get to. When the

inflation gets going, all the bonds with low yields or yields linked to the fraudulent CPI

will become worthless. The bond markets will collapse, and all that money will try and

buy anythingit can get

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The solution is to first stop the private central banks from creating more money

and derivatives to fund their evil final bubble. Audit them, close them down and

imprison them. Money creation for zombie banking activities goes to 0 like in November

of 1923 in the Weimar republic. The next step is to revoke the charters of all of the

zombie banks and seize their assets. Ban the trading of all derivatives, and firewall them

inside of the zombie banks. Then push the delete button. $1.5 Quadrillion in inflationary

overhang disappears without even a whimper and no one will ever know that it ever

existed in the first place because they do not represent anything real. This is the one shot,

one kill Golden Gun Solution to the coming Hyper-Stagflation.

Conclusion

The Republic is in mortal danger, and the rest of the world will suffer

tremendously if we fail in our duty to stop this calamity from happening. This unreal

level of debt, and madly aggressive predatory banking is going to lead us into a needless

series of wars culminating in a confrontation with a revived, empowered Russia.

The bankers have shown that they have no limits, no hearts, no country and no

humanity. They will make slaves out of everyone in the world if their scheme is allowed

to be carried through to its logical conclusion. The United States is the central front in

the financial war on the world. Our government has been hijacked by the unlimited

money from the banks, and if we cannot get control of it our civilization is going to be

used as an engine of destruction against the rest of the world until it is looted and burned

to the ground..

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