June 3rd, 2012 by Dissolving Dollars

“Gold just went over $2000.” “By tonight that’ll be cheap.” Rollover

Just get it over with already. The longer everyone waits the worse it is. I’m so tired of the economy resting on the whims of the shysters at Central Banks and the endless supply of pandering politicians across the world. The Federal Reserve has been trying to force people into taking risks with their low interest rate policy for many years now, but no one should be taking the bait with money they can’t afford to lose. This is an economy for short-term speculating only, not long-term investing. Money printing to infinity is all the Central Banks have left to avoid the inevitable: massive debt default. The economy is a farce of debt. And to add insult to injury, there aren’t even accurate economic statistics to gauge the state of the economy. Modern day economic statistics are revealed as pure propaganda when a person investigates the methodologies. For example, the unemployment numbers don’t include people who stopped looking for work. And most of the jobs are created statistically using the birth death model. As another example, GDP includes government spending as economic growth. But the only place the government gets its money is through debt, inflation, and taxation (forms of theft), all of which are bad for a real economy with the objective of efficiently allocating resources.

When is the end game? The answer depends on who is really in control.

Status Quo Politics: Politicians/Central Banks will keep on using debt and inflation to buy votes, kick the can down the road, prop up banks, and cook the books/statistics. That is the slow burn we’ve been on for over a decade. Just think about how many times the world has been supposedly saved over the past few years only to need saving again. It’s just an endless the world is saved, the world is doomed roller coaster of manipulation.

Conspiracy: Perhaps there are money powers that are ready to pull the rug out from under the economy and usher in a big reset that will screw over everyone who planned on a future using Ponzi delusions (namely governments). It could be triggered by anything from China dumping US debt, to an implosion in derivatives, to a crash of the Euro, a war, bank runs, to all of the above.

Unless you are a vigilant trader, this is not an environment for making much money in the markets; it is more of an environment for trying to lose as little money as possible. The sooner the system is cleansed, the better. I look forward to the day shown in the movie clip above. It will not be the end, but a new beginning. Despite the endless propaganda of new plans to save the economy (like more money printing), which will likely continue and serve to do little more than drive markets higher so they can sell off again from higher levels when new plans are needed, the economy will only be actually saved when it is allowed to fall apart and reorganize itself. Embrace the crash when it comes, don’t fear it. Because if you are counting on the central planners of the world to save the day, you’re in for a long wait. All they can do is steal money from one group and give it to another without ever really fixing anything. Also, don’t count on growth to save the day, because until the debt excesses are remedied, the economy can’t grow to the extent needed to keep up with debt. The debt currency system must dissolve and reset. That’s all there is to it. The sooner the better.