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Sunday, July 3, 2011

Borrowing from the rich to keep socialism going




Understanding Capital Flows is the Key


When the model accurately forecast the collapse of Russia that is when the CIA came and wanted me to build the model for them. They acknowledged that  CAPITAL FLOW ANALYSIS that we developed at Princeton Economics was a new technology and important even to understand from a geopolitical perspective. The model accurately predicted the Lebanon War, the Iran-Iraq War and probably even 911. How? It turned out that someone has knowledge of the invasion and as such they move money accordingly. This was being picked up by our computer is monitoring global capital flows. It could not tell you WHO or precisely WHY, just that the shit would hit the fan.


It is absolutely critical to understand International Capital Flows. The Dow rose between 1932 and 1937 and unemployment exploded to 25% going into 1935, the Dust Bowl tore the economy apart, and the economy was far from booming. There was a lift due to the devaluation of the dollar. This is also the famous bank holiday. Much of the news between 1932 and 1937 was  BEARISH. Yet the stock market rallied as a HEDGE AGAINST untrustworthy public debt. Even the city of Detroit suspended all payment on its debt. It made good in 1963 with the help of inflation. 


We face similar crisis in the state and local governments. Unemployment will rise as the local governments (WHO CANNOT PRINT MONEY LIKE THE FEDS NOR BORROW FROM THEM) are forced into reality. Greece  MUST default or it will go into revolution. The lesson from the Great Depression is that the gold standard created DEFLATION because you could not increase the amount of gold in proportion to economic and population growth. The EURO is doing the same thing. By holding Greece to the Euro, their obligations are rising in REAL value terms forcing DEFLATION upon the country. The gold standard was abandoned (defaults) in 1931 and that was the key.  This is a battle between the investment bankers and the people. The debts have to be devalued or we will be looking a massive civil unrest by 2016. It is time to make a choice. It is them against us! Stop taking advice from the  banking  Primary Dealers for they have a vested interest in bankrupting society for their gain! Julius Caesar understood this. Are we just brain-dead?

http://www.10sigma.com/files/Borrowing%20from%20the%20Rich%2006-30-2011.pdf

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