Tuesday, October 18, 2016

An Inspired Response ....

Tradition? See the old French "tradere": to give up, to hand over (I believe ... certain older dictionaries will reveal). You touch on relevant topics.

For example, is ethnicity not a form of sovereignty? Certainly for Soros it is. He sees not only the newness of the American "culture" but sees the results of a social experiment (not unlike our own in Japan) by which a certain loss of national ethnicity or heritage or sovereignty creates condition X (it's complicated but in essence the people are docile as long as they are fed). Therefore, open the floodgates to Muslim-ize Europe (his NGOs certainly have spent much capital to shape those events) then "bet" on outcome X there.

As long as human beings place such great value on the ability to "tell the future" then people who can shape the future and then bet on that shape will grow their fortunes.

But back to ethnicity ... the "elites" will never fully homogenize the Chinese or Russian cultures. Russia learned from Summers in the 90's, that will never happen again in our lifetimes. So again, you touch on salient subjects for our next few months ahead.
As for FIAT, fiat is pure debt. The reason it can be treated as an asset on a balance sheet is the long standing likelihood of future performance that the collective debt the fiat dollar derivative represents (by virtue of pretending to have the same future performance guarantee as gold) will always and forever be satisfied by future payment with ..... (?)
"Noone can see the value of a real asset when knowing how many currency units it is denominated in. Value is only known when holding one real asset next to another real asset and comparing the currency unit valuations of both.
Use as an example, a $75,000 $US Mercedes and a small apartment, also $75,000. They can be traded using the currency as a temporary holding until the transaction is complete. The car and apartment are viewed as having productive use of equal value. However, it is the items that have the value, not the currency unit! The currency is of but momentary value expressed as "the intention of a trade completion". Complete the trade and "poof" the units hold no future value.
At this point in time, everything in the world is "denominated" in currencies that have no use, except to complete the trade! Trillions upon trillions of digitized currency are currently being held for the "completion of commerce", extending out into other lifetimes! Of course we are speaking of any form of currency denominated debt, be it government or private.
The question that must be asked is: what and where is the wealth (asset) that we use to satisfy this quantitatively growing future debt?

But wait, it is a loaded question - we simply issue more debt today to indemnify the future debt of tomorrow, calling it "wealth" and making the debt self-referential as some form of perpetually credible asset.
In that regard, now, not 1 but 2 (present and former) Buba bankers come out with a Oedipus-complex-driven theory, inciting the impotence of the coordinated CB (Daddy's) credibility gap, as being vulnerable to political shock (which is what we've been seeing for years now).

So back to the central question. HOW DOES DEBT FAIL?
It fails politically my friend. It fails when China snubs Obama on the runway. It fails when Russia stops taking it up the ass and bites back, with it's new equity partner and ally ..
I say this very calmly now, but surely you can see that we will go to war to prevent a political failure of our debt. And we are gaining momentum in that direction. Yes, the CBs have worked hard to maintain that peaceful "debt as wealth" status quo. But not every country likes what that has become "politically" on the world stage.

On "Another" hand, some very wise people at the BIS see gold as a way to move from the US dollar without world war.

Mr. Kosares,
A few thoughts for you, as the questions are asked?
** It seems that both you and your friend believe that the world is splitting up into currency/trading blocks -- much as the world did for both World Wars. There has been much discussion around the world about the imposition of a NEW WORLD ORDER and international one world government. Simultaneously, we see another, opposing force at work -- regionalism, nationalism, even tribalism. What do you make of this? Is the Euro a child of the forces of the New World Order, or the forces of regionalism/nationalism/tribalism? **
I would say, "Old World Order" to return. To understand/explain better: "A very easy way to view this "order", would be to simply say that the American Experience is reaching the end! As we know, world war two left Europe and the world economy destroyed. Many thinkers of that period thought that the world was about to enter a decades long depression as it worked to rebuild real assets lost in the conflict. It was this war that so impacted the idea of looking positively toward the future. The past ideals of building solid, enduring, long term wealth were lost in the conception of a whole generation possibly doing without! In these fertile grounds people escaped reality with the New Idea of long term debt, being held as a money asset.
Yes, here was born the American Experience that comes to maturity today. New world order, regionalism and tribalism are but modern phases that denote "group retreat to avoid paying up". The worldwide currency system is truly a reflection of an economy built from war, using the American Experience, the US$ and the debt that it represents. But, for the American dollar to continue as the representative of the global financial system, in the form of being the reserve currency, maturing generations of all countries must accept it, and the tax on real production it clearly imposes! In the very same mind set, that people buy the best value for the lowest price (Japan cars in the late 70s), and leave an established producer to die, so will they escape the American currency and accept any competitor that offers a better deal. Because we are speaking of currencies here, the transition will be brutal!
As you ponder these thoughts, consider that; all economies today are truly equal in production as the exchange rates are the manufactures of profit!"
** Is Europe (led behind the scenes by the BIS) an opponent to the United States?**
Sir, Yes, but not in the ways of war, as it is in the feelings of "pride" and "we go our own way". The downfall of the Russia, did allow for the Euro and all that it will build. They now see the debt of the US$, as a reserve money can be escaped! As even the US citizen will leave it's own workers to die as products are purchased "overseas", how much less will the world also flee the dollar! Opponents? No, I would say they are learners of the "American Way" as they embrace the "American Idea" of a "free world market economy".
*** If so which countries are in which camp? Your associate seems to feel that Asia is split between the United States which has Japan as an ally, and Europe which has China as an ally ( a notion I found particularly intriguing). Where is Britain in this? Japan? And most importantly, the Gulf States, particularly Saudi Arabia? **
Sir, I feel he is correct in this thought. Europe does grasp for a relationship with Asia as the US did have with the Japan. It would build a mighty economy on a foundation of oil and gold as backing for new money. As China and Arabia was once a part of the Europe economy, in a small way. They may now return with no fear of Russia. Britain? A lost nation. Japan? This one is "of the American Economy" and is to live and die by it! They will seek your Alaska oil before loss of face with gold. A dead Yen be a dead Japan.
**Along these lines, I too believe that currency movements will flow through Europe because the Euro currency will be gold backed. Where does that leave Japan with over $200 billion in dollar reserves, let alone its massive U.S. Treasuries' holding? **
Perhaps, they be like Korea? Rich in paper until the world says, "this paper, it is not good"!
***Your associate says that BIS helped China increase its gold holdings. Please tell me what the source of that information is, or is it simply a speculation on his part. ***
The BIS is the gold broker for all interbank sales/purchases. Bullion Banks are for sales to other entities. I think, at first, China was leverage against the oil producers. Then Arabia was allowed into BIS for Euro.
**One other item you might clarify for me is "Who is really behind BIS?**
Perhaps, "who control them"?
**The Swiss?
**The eurocentral banks?
**Who does BIS really represent?
"old world, gold economy, as viewed thru modern eyes" or " way to move from US$ without war".
Tradere ...


  1. **Who does BIS really represent?
    "old world, gold economy, as viewed thru modern eyes" or " way to move from US$ without war"....

    I was wondering when these comments were made? If fairly recently, then they would be a ray of hope would they not? (of avoiding war and a real asset based economy emerging)

    1. About 17 or 18 years ago. So ... in the 70+ years since Bretton, quite recently indeed ;0)

  2. It is obvious the world is losing its "fear of" (confidence in) the U.S. It was good while it lasted!