Tuesday, June 23, 2015


"We will have hyper-DEflation in everything measured against real money, GOLD, and       we will have hyper-INflation in everything measured against paper dollars."
Yes indeed, that's the post which started it all for me, though I had stumbled into the FOFOA blog a few month's before it was written. I had a LOT of catch-up reading to do and it took weeks to grasp this "FREEGOLD Concept". But then, when the above article was posted in April of 2011, something seemed to click. And in every article written since, more light bulbs went off.

Let's visit our man across the border, Hugo Salinas Price. If you can bear to read as long a post as FOFOA's, then perhaps you will see a certain commonality between that post and Hugo's Coming Liquidation.

Bonds are key. But in essence, the credit markets, a.k.a. the debt markets, a.k.a. DEBT is considered too big to fail. As Hugo says:
The problem for the world's central bankers is to keep the debt cloud up in the sky and avoid at all costs a deluge of liquidation. That is to say, there must be no movement to get rid of bonds in exchange for cash.
And yet, a few days later, this is exactly what is happening to $140 billion in one Bond Fund alone.

But of course, the bond market has many trillions in interest rate swap "bond insurance"- debt-based debt insurance - protecting sovereign debt (creating demand for it). Ergo we have the Greek bolero of debt, slowly building to its crescendo.

All derivatives are a form of debt-based debt insurance, some agreements serving as an additional layer of debt-based debt insurance for the derivatives themselves, and so on, growing exponentially, as debt does, and manifesting as more than 14 times the nominal value of current annual global GDP, (if it was reported accurately) which in turn would represent the grand underlying asset of it all.

But since we factor certain derivatives (of truth, no less) into the calculation of said GDP, it is a bit farther than 14 years into the future, I think, that our derivative protection promises repayment of debt through the world's productive endeavors. Still, if we accept the 14 year calculation as a reasonable estimate (it is not) then we need only to become 14 times more efficient in our global domestic productivity to "catch up".

And truly, we have done wonders with global productivity in the debt-ridden economies, by outsourcing multinational production to cheap labor. And we can go further. But we can only stretch that efficiency so far, since that productivity eventually returns at least some wealth to the source of labor, such that those economies may have their turn to consume, rather than to endlessly and exclusively produce for the debtor / consumer nations - especially the exorbitantly privileged creator of world reserve wealth, who "creates" said wealth from debt, at the drop of a pin.

This of course brings us back to another great FOFOA axiom involving the "debtors and the savers" - though they could easily be called the "producers and the consumers" for the conflict between the two to shed light upon this angle of view.

But back to topic, hopefully you can see that debt becomes too big to fail when the debtors have the power to issue wealth by decree, and to serve it up to any and all who can be co-opted into the system of "debt-as-wealth", meaning that debt must be saved at ALL costs to keep the absurd promise of eventual repayment alive and prevent systemic collapse.

This is your answer to Greece at this point in time. Their debt is impossible to repay, yet Sovereign EU member debt is too big to fail if we are to prevent a sovereign bond collapse. Interest rates must follow the course of their derivative counter-claims for nominal continuity, or a derivative chain reaction ends the system from a derivative interdependency.

And to end the system, is to end the cronyism, fraud and wealth redistribution to the controllers and narrators of current world affairs. What is a bag of money to an ISIL double agent, wreaking havoc in Syria, at the CIA's bidding, if that bag represents nothing more than worthless paper?

What is a million dollar contract to our noble CNN and MSNBC "celebrities" who report the propaganda they are required to spread, if that million dollars only buys a loaf of bread?

What is paper money worth, if no one can be lured to the dark side with it, and co-opted to do the bidding of those who command the printing of it, and redirect the flow of it so easily? Today, debt retains its incredibly useful purchasing power value ... enough to breed its own diabolical "advocates" ... as long as they can continue to protect its value by doing whatever it takes to prevent its default.

Yes, those who profit most from debt will always argue that is is too big to fail. And for those invested in the system, by it's profits, this could never be more true.

But as those who have been wearily fleeced by the strangling tentacles of "systemically protected debt" for generations gradually grow in power and in wealth, the tide begins to change, and the world changes with it. Look Eastward to the sea of change that one can actually take an equity stake in - far prefereable to endless debt peonage and systemic 'obedience"..

Debt will always be with us - it is useful in so many ways. But the world is coming to the realization that it is NOT too big to fail. The fraud is not too big to fail. The cronyism is not too big to fail. The poverty and dependence is not too big to fail. The greed, the theft, the profits, the genetic manipulation, the eugenics, the bailouts, the bailins, the wars, the color revolutions, the single military empire and unilateral domination under the 1% are NOT too big to fail.

We come to realize that all this pain and suffering is in fact too big to sustain. TBTS. Someone is finally doing something about it. And that someone is YOU ... by reading and understanding the TRUTH.

I have not seen the indiscriminate helicopter drop of trillions in cash upon the working classes of the world, but if that is the system's final attempt to save itself, so be it. It ends either way. The ruling class would never have it until the paper is burning, and to do so guarantees the paper will burn anyway.

In the end, all fiat burns to ZERO. Dirt. It is baked into our human nature. We will always print more than we can repay. We will always over-promise and under-deliver. We cannot save ourselves. Human nature is not too big to fail. It fails us every time.

And then ... we begin again. May you live to see it through to the other side.


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  2. Great post, I really enjoy reading your blog, thank you for your insights