Tag Archives: recession

On foreclosures fraud, QE and coming new spiral of deflationary forces.


There isn’t anyone at the (nominal) helm who didn’t understood from the very git-go that the only possible way out was a resumption of organic credit growth. All the fraud, lies, deceit, corruption and violation of centuries old jurisprudence were justified (at least in their minds) by national security concerns.

The power-elite have always know that there was a black whole comprised of many different elements, one of which being title insurance, related to challenges in re-securitizing the ponzi. More importantly, they knew that they had at most two years in which to blow another bubble, anywhere/any kind, to get the herd moving once again in a speculative fashion.

Financial Crisis is an ‘Inside Job’.


Having now experienced a confirmed Hindenburg Omen in the last week that portends a stock market decline, we may again try to turn our attention to the Financial Crisis that began in 2007. Inside Job is a documentary by Charles Ferguson that unequivocally reveals to us that the GFC was not an accident. Those who benefited from it foremost were all in on it and new full well what they were doing and what it would lead to.

Is Canada’s housing market bubble beginning to deflate?


Now we are reading a welcome news from Canada. The supply of houses on the market is beginning to increase which if it were to continue on this path would signify that Canadian housing bubble is being pricked as we speak and should provide a spectacular deflation in the months and years to come.

This is how it started in USA back in 2005. First supply of houses rose while the prices continued to inch upward. But then the supply really began to accumulate as more and more fools started to put their properties on the market sensing that it was time to get out. We know what happened next.

And now in Canada we are beginning to see the same kind of trends. They, of course, still continue talking about how real estate prices never go down, and that the rising valuations are based on fundamentals and that Canadian economy is strong and getting stronger. But we now know that this is precisely the bubble talk you hear at the top of many speculative markets throughout history.

The Marginal Productivity of Debt.


The key to understanding the problem is the marginal productivity of debt, a concept curiously missing from the vocabulary of mainstream economics. Keynesians take comfort in the fact that total debt as a percentage of total GDP is safely below 100 in the United States while it is 100 and perhaps even more in some other countries. However, the significant ratio to watch is additional debt to additional GDP, or the amount of GDP contributed by the creation of $1 in new debt. It is this ratio that determines the quality of debt. Indeed, the higher the ratio, the more successful entrepreneurs are in increasing productivity, which is the only valid justification for going into debt in the first place.

A sure sign of deflation: 9 bailed-out banks report declines in new lending.


As the pool of credit worthy borrowers and worthy inestment projects dwindles in a deflationary environment so the lending declines. It is no surprise that in still democratic USA, unlike the communist China, the Government cant just mandate its banks to lend. It can provide interest free credit lines, it can embark on a massive Qunatitative Easing and public relations campaings, but if banks are scared to lend and the borrowers are not interested in borrowing nothing will get the lending machine going. At least, not until the bad debts are liquidated through defaults, which are, of course, deflationary. And so the lending contracts.

U.S. is in deflation as a nation. Shooting at the Pentagon. Revolt is brewing.


Now that the social contract has been torn up and stamped upon by the rich and the powerful elites of the USA, now that the trillions have been stolen from the millions in broad day light with smiles on their faces, now that tens of millions of jobs have been shipped off shore and tens of millions of immigrants have been allowed to pour into into America (even now in this difficult economic time) and take jobs that many US Citizens so desperately need, now that the mere dissent and opposition to the government policies is suppressed and government statistics are shamelessly falsified, the USA as a nation is deflating not only economically, but also sociall and politically.

We the People are damn f###ing tired of this disgraceful spectacle that the political establishment and their puppet masters are forcefeeding us.

May that is why the People of the USA are losing their patience (finally) and beginning to fly planes into privately owned tax collection agencies such as IRS and go on shooting sprees near buildings of other anti-American organizations, And oh by the way the Epic Beard Man is so popular, because he represents revolt and resistance to the government forced policies of tolerating crime and violence for the sake of diversity and multiculturalism.

Japan’s consumer prices fall again in January. Deflation now -1.3% compared to January 2009.


Japan, after two decades of fighting against deflation and racking up 240% of GDP public debt has literally nothing to show for. The deflation is firmly entrenched in the Japanese economy, which is a very good thing for consumers, not speculators.

Empty nonsense talk from European policy makers.


It is time to end globalism, time to end European Union, time to abandon Euro currency and shut down the Brussels parasitic state once and for all. European people don’t need their stinking opinions on how to run their lives. The sooner this modern economic and political systems come down, the sooner we’ll all breathe easily. It applies to all countries around the world.

G7’s Sheeple Distraction in IQALUIT, Canada, while Central Bankers Meet Secretly in Australia.


We don’t know what the Central Bankers will be discussing during their secret two day meeting in Australia, but what we know is that you don’t hold a well publicized G7 economic ministers meeting at the same time for no reason. If the CBs need a distraction that means that something is very grave and serious is going on. Whether we are on the verge of a new panic and financial crisis or something else, but it cant be good. Perhaps the sovereign debt issues in Europe are on the verge of causing a big monetary implosion and stock markets collapse.

Conquer the crash: Bernanke defeats deflation.


At last, the news reports are now fully brimming with optimism and proclaiming victory after victory on the economic front. Despite the fact that the private (and total) credit in the US economy has been and is still contracting at unprecedented multitrillion dollar annual rate, which is deflation by definition in credit based monetary system, the Bloomberg news declares nevertheless that the honorable manager of the privately owned Federal Reserve, Ben Bernanke, has already defeated deflation. Oh say, can you see …