Friday, 15 August 2008

Credit Crunch? Nah - It's Profit Taking!

The story of the credit crunch is amazingly simple. It's as simple as the dotcom bubble and the great depression, as simple as the scam itself. It has a slight twist, however and more than a few wild cards.

What the bankers have done is bubble housing on purpose, so they can take control of a lot of assets through the magic of people defaulting on debts that aren't there. Why, do you think, have the bankers done this?

Well, to put it simply, the bankers are short on time. Two things are against them - the first being the rise of home computing/printing and the second being the massive debts they have run up via their proxy companies "the united states, the united kingdom" etc. They've promised pensions and universal healthcare and a playboy model for every 16 year old boy and a whole boatload of other stuff to keep the general citizenry passive which they haven't got a hope in hell of actually providing.

A nice economic crisis will solve that problem for them. No pension for you, grandad - "credit crunched", no medical care for you young 'un - "credit crunched" and no pay rises and lots more taxes and regulations for all the little folks who just go to work every day and are no harm to anyone. Or so the plan goes.......all hung on a simple slogan "credit crunch."

But it's just paper!!!111

Fiat paper currency is pretty well crafted. It's so well crafted that a man in Glasgow managed to print a few hundred million "perfect" ten pound notes a year or so ago. It's so well crafted that a family in the south of england managed to print "enough money to destablise the bank of england." Counterfeit, of course. Not that you or me could tell them apart, but the man in the wig calling himself a judge said they were so they must be.

Here is the problem of paper fiat, going forward - home printing will eventually catch up to the top of the line printing of currency to a good enough standard to fool shopkeepers. Simple as that. It doesn't have to be perfect - just good enough to hand over to a corner store. At this point the empire of fiat is doomed. Given that PC's double in power every 15 minutes it seems and home printing also improves at a breakneck speed the day when it's uneconomical to keep up the paper part of the banking scam mustn't be all that far away.

The bankers must know this, and one would expect them to be preparing for it, one way or another. All those madcap cashless society and RFID tagging schemes that the internet has been chattering about for a while now suddenly start to make a bit more sense, don't they?

It's either start providing people with actual value (like gold or something) or get them into a database. As providing people with value for their labour isn't what banking is all about, a database is the preferred solution!

The other thing about the PC revolution is the internet. Right now you can go and watch umpteen videos about banking, get help with your debts, learn about fractional reserves, gold standards and all the lovely and obscure stuff that was up until a few years ago kept well out of the public arena. Now we have forums, blogs and lots and lots and lots of chatter. Word is spreading. Slowly, but surely, word is spreading.

Here is the plan -

1) Bubble housing by targetting that sector for cheap loans. (Remember, to the guy who owns the printing press paper money really IS worthless and even if it wasn't it doesn't matter he'll be getting it back soon enough!)

2) Do this in a few countries at the same time. Tv shows ramping property, magazine articles and all that jazz to accompany the cheap money.

3) Once the bubble is underway and in full swing, stop handing back out the money that is taken in and crash the whole system. This is a nice deflationary bit - when the market realises there is less money than has appeared because velocity has been so high and everything gets repriced.

4) Once everyone and their dog is flat broke and going bankrupt, print up a boatload of new cash to but their assets and technically pay all those outstanding state and private debts. You set aside a million for your pension? No problem, here have a million back - it will buy you a cup of coffee with no sugars.

5) Reboot the system with a new currency, preferably global or multi regional and probably claiming it is backed by gold to shut the goldbugs (and others who were paying attention pre bust) up. Actually it will be a database effort with ID cards and tagging if they can possibly get away with it. If not, they can always just go back to pretending they have more gold in a small household safe than exists in the whole world. And they will have almost all the gold, make no mistake.

6) Go back to business as usual and start again, only starting with owning most of the real estate on planet earth's western bit. (Lovely views, crazy skies.)

or so the plan goes, or so the plan goes. Chuck in a contrived war, Iron Man/Father of the people rescuer hero figure, persecution of a minority or two, strikes, riots, Tom Joad, gold confiscation, the discovery of a massive fraud or three that mysteriously don't get prosecuted and that's about it.

The paper is worthless if you own the press. It's the defaults that the bankers seek.

Bankrupcy for you and yours is profit taking for them and theirs.


Anonymous said...

interesting stuff.

however, who'd be a banker now? they are all going under. and no amount of ownership of repos is gonna compensate for that.

Injin said...

Banks go under.

Do bankers.....?

All I see is golden parachutes (so far.)

You do raise a fine point though - like all things the banking system has problems both internal and external. People like me who can critically think and laugh at them are one, Islamic terrorists who have correctly identified their enemy are another.

I aim to get to outlining the major problems the bankers face at some point in the next few weeks!

Anonymous said...

look forward to that.

more interestingly - can they be solved?

Injin said...

I believe that all the bankers possible problems are solvable, yes.