Friday, October 25, 2019

We Are Only Human

If anything has been learned by the American people in the last 20 years, there is certainly little evidence of it.

In these annals, we have shown how a just Republic is gradually transformed, over time, into a corrupt empire. Many still deny the transformation, clinging to an artificial narrative which is conveniently provided to "cleanse" the conscience. But denial (as any psychoanalyst will confirm) is not conducive to a healthy state of mind.

In post after post, we have supported an argument (central to these annals) to identify the root cause of the empire's moral decay. But first, there is a well known adage, which this author accepts as irrefutable, due to the volume and consistency of historical evidence, as follows:
All power tends to corrupt; absolute power corrupts absolutely.
This quote, often paraphrased, has been borne out by so much incontrovertible historical evidence, that it is a given, in terms of our initial premise. If any reader can honestly refute this argument, then there is little hope that the following important findings within these annals can be accepted, or even properly considered. Conversely, any reader who accepts the above quote as being universally true, would certainly be interested to understand the nature of absolute power - how is it obtained, what is its constitution? To that end, we have Roacheforque's core argument.
The power to create wealth by decree is humanity's absolute power.
In our modern world, the power to "create wealth by decree" has been gradually honed as near to perfection as our global society - humanity - can hope to achieve. Effectively, humanity has empowered a "banking class" with the ability to issue a functional "money" in the form of fiat currency, with the click of a mouse. And the benefactors of that ultimate power system have defrauded the "lesser classes", and enslaved them through the concept of "debt as wealth". These are the logical conclusions to the bits and pieces of evidence all around us, which continually validates these arguments, and which creates our world of income opportunity disparity and "banking class world rule".

As we seek to understand how our technology has moved humanity further toward this condition of class disparity and social disequilibrium rather than further away from it, we need to understand human nature, and our simple desire to gain something from nothing, to "get rich quick", to have much wealth with little work, and so on. This is the lure of the system (and its benefactors). If humanity will accept the premise that we can only find "the easy life" (wealth without real value creation) by increasing the obligations of our "fellow man", then this system of "debt as wealth" works. And it has worked well for many generations of wealth accumulation for the ruling class, concomitant with the expected decline of wealth among the lessor classes. 

Will the cryptocurrencies somehow correct our "wealth by decree" or "debt as wealth" problems? Will gold? Will human beings ever evolve past their "debt as wealth" contract? A contract they never agreed to accept, yet willingly oblige? It will take some manner of wisdom beyond that of Roacheforque to answer these important questions about our social and moral evolution. But where we are today, and how we got here, must first be understood. 

As our "wealth by decree" fiat currencies (both paper and now digital) evolved as an artificial representation of a former, widely accepted and historically stable, element of universal wealth (gold and silver) it is important to understand the nature and impact of this artificiality. Our derivative "money" and related financial derivatives have such systemic importance to our "debt as wealth" construct, that our ruling banking class will inflict as much pain upon the lesser classes as needed to preserve the value of this systemic derivative construct. The "debt as wealth" contract we abide by allows this, as long as the pain falls upon "our fellow man" and not us. It is no great mystery as to where this eventually leads.

As the banking class pumps more "wealth by decree" to its systemic banks to preserve the system, we note that the process merely increases the power which corrupts absolutely, infecting humanity's "value system" with moral hazard

Perhaps we can learn from this - that as long as people value "things" over one another, the "debt as wealth" contract is in force. But ... perhaps too ... we can come to appreciate that debt (and all its myriad artificial representations) is not the only form of wealth. Certainly, not the ultimate form of wealth. 

True value creation, with a positive social benefit was once thought to be a "virtuous" form of wealth - like a well built bridge, or an airplane which safely transports human beings from one continent to another. But sadly, today, value creation comes through dollar derivative profit - achieved by cutting corners - like at Boeing. Value creation is a rising stock price - like with record corporate buybacks to boost stock values artificially. Where does this end? 

Some countries (and groups within them) see the writing on the wall. And their accumulation of gold as a first step back toward the recognition of "real world" wealth is promising. But will they fully abandon the lure of the derivative world? Will technological virtue lure them into another layer of artificiality - a technologically evolving fantasy of "wealth by anonymous consensus"? 

Again Roacheforque cannot see past what will come of us many years beyond his lifetime. It is more than enough to plan for this generation, and the new generations springing up within a single lifetime. We are not given more than this single life on earth, and that is a great failing which helps to reinforce our nature. Together, we could defeat death once and for all. But instead, we'd rather defeat one another.

We are only human after all.

Wednesday, September 25, 2019

It Has Begun

Between Tom Luongo and Pam and Russ Martins it's pretty obvious that the inevitable crisis of interbank confidence is well underway. As stated several times in this blog, the 29 Trillion in Fed dark money bailouts from the last such event barely kept the system hobbling along in maintenance mode for 11 years (although it cannot be said that the illusion of recovery wasn't artfully maintained).

Now with its daily repo on auto-pilot (publicly) the FED can only do what it's systematically programmed to do - keep bailing out defaulting derivative debt with more debt based derivative FIAT. As the weeks and months progress, you will be entertained with cries of "all is well" and "back to normal" but what is going on behind the curtain of happy smoke blowing up the skirts of the little people will be harder and harder to contain.

I suspect it's Deutsche Bank that can't cover its losses, and it's counterparties know it. It's Lehman / AIG in the form of Deutsche / Lincoln National for starters, but all the primary dealers are feeling their sphincters tighten as the great sucking sound coming from their assholes presages the collapsing super nova of liquidity anti-matter. In other words, multiple "dark holes" with "big JP" conspicuously involved, deep state cufflinks and all.

Maybe Mnuchin will go full Paulson on CNN. Williams as Geithner is unlikely, and Powell is no Bernanke. Somehow I can't see Trump in the role of Dubbya, looking like a deer in the headlights and talking about "Too Big To Fail". It's got to be spun another way. In the Luongo article above you are given a few clues.

We waded into uncharted waters in 2008 and we've been drifting further out without a life preserver ever since. Even the families are divided.

I know what I'd like to see, but no light is shed upon the flower of understanding. Only darkness. Someone will say "I told you so" but that won't matter. It will be interesting. Let the liquid invasion ensue.

Monday, September 9, 2019

A Changing

People were beginning to ask ... 22 years ago ... how can 50% of total annual worldwide gold production be traded every single day? How can more than 14 times the entire above ground stock of tradeable gold change hands every year?

We know the answer to these questions today - derivatives. But we are only beginning to recognize the impact of these answers. It is one thing to fractionalize fiat money for the purposes of lending. But what are the implications of massive financial positions (14+ times global annual GDP) in key global markets like foreign exchange, interest rate, equity and commodity?

These annals are filled with reminders of these implications. These position holders completely eliminate supply side economics (still effective in the 1980's with Paul Craig Roberts under Reagan). Underlying physical assets increasingly represent a diminishing fraction of their hypothetical value - hypothecated values as real in currency terms as if the underlying physical asset in said amount exists in the "here and now". The impact on controlling prices in key markets is substantial. Forget about sound banking 10:1 ratios - those are a barbarous relic. As always recognized in these annals, we now have a chart whereby we can visualize how oil price is controlled just like gold:


But it all really started with gold, since to hyper-fractionalize gold freed the currencies to be hyperinflated to derivative levels (1.7 quadrillion notional?) without having the true price of gold realised. If it was known that a real ounce of gold is worth 10 (or 100) paper ounces, gold would trade at 10 times (or 100 times) it's current price. Such a world would destroy the credibility of our currencies, and the currencies themselves with it. So we continually choose functioning currencies over the unknown impact of a systemic crash. And here we are today.

We hear more and more about not just a "fake gold market" but increasingly an entire "fake world" of prices, markets, statistics, polls, elections, behaviors. Yes, there is indeed a global societal harm in unrestrained financialization as the dominant (and growing) component to developed market economic growth and GDP, as we transfer the derivative wealth effect of hypothecation to every aspect of life on earth.

Our world is truly a derivative matrix, powered by the unlimited wealth creation capability of our fiat-currency-derivative system, dominated today by the dollar system, and enabled by the hyper-hypothecation of gold.

To have a "free market" in gold, the paper gold market must die, and for that to happen, either the currencies must come under great stress from loss of confidence (then loss of function) or we can simply agree to abolish the entire derivative system and make it punishable by death to fractionalize good delivery gold. The effect would be the same - we would be transforming from a debt based to an equity based system. Do not reference past gold standards, as a free market in gold has never truly been in effect during their reign.

Which is more likely: currency destruction or humans miraculously and simultaneously abandoning their human nature?

The signs of the more likely outcome are growing in the thoughts of both little people and Wealth Giants alike. Thoughts of value are changing. And our times, they too are a-changing. They always do, they always will ... and in the end, time proves all.


Thursday, August 22, 2019

The Flower of Time

As new and believable data begins to bubble up from the hard to reach places where truth can still be occasionally found ... the statistics are remarkable.
According to the Bank of Russia data, in the first quarter of 2019, export earnings in US dollars formed 61.7% of the total amount. In comparison, in the analogous period of 2017, they constituted nearly 70%. Especially noticeable is the change in trade with the EU, where the dollar share in exports – for the first time ever – fell below one half. In the first quarter of 2019, 46% of exports from Russia to the EU were sold in dollars and 42% in euros. A year ago, this correlation was 53 and 33% respectively.
Of course, there is likely a notion to decry this data as "fake news" ... and that Roacheforque is a Putin puppet, or worse - an ISIS sympathiser. But I do think that the balance of evidence in other news supports the behavior of the dollar system's operational "measures".

Strong dollar policy has inverted, but supporting (weaker) dollar USAGE is as critical to obedient dollar vassalage as ever. Just ask Deutsche Bank, or Volkswagen. The former was subservient to Baffin, which irked the FED/ESF/UST/NYT quadfecta of Dollar Imperialism to no end, and the VW fines were a warning against further sedition.

We all know the reactions to Russia, China and Iran's impudence. Whenever the Euro is used in major trade settlement, especially for energy and systemic technology, the dogs of war are unleashed. Economic war is especially favored due to the advantages of USD stability, exchange rate pair dominance and depth of dollar correspondent accounts.

But that advantage is derived from the circularity of long term usage, which is now reversing at a rate (in both the quote, and further in the article from the first link above) that cannot be ignored. The well worn adage about systemic change "happening slowly at first, then all at once" is beginning to take shape. We still may have a few more years and a few new tangles to unravel, but the key here is:
Instead of 'greenbacks', the central bank has actively purchased yuan, euros and gold, whose inventory has already surpassed 2000 tons.
As made to be known, central banks on the whole have purchased a record amount of gold in recent months (and probably quite a bit more than is being reported) apparently with dollars. Since the stability of the currency system hinges on the dollar as the cleanest (most stable) in a somewhat musty laundry basket of currencies desperately, but inconspicuously dirty-floating to ZERO, the only holding which doesn't need another self-referential bail-out is gold. Buying it with dollars as they rise does seem to be the final act in the lead up to a new "accord".

See the systemic signs? See what the BIS is supporting? See what its member banks are abandoning?
There is no stopping the hand of time.

Thursday, July 18, 2019

The Truly Entitled

We hear a lot about MMT lately, and I will assume that readers understand the concept well enough that it doesn't need to be explained in detail here. But there are certain worrisome ideas about MMT that are being propagandized into the broader mainstream consciousness. One such idea is that it is a political tool of left leaning Socialist progressives. The other is that it's purely theoretical and never yet been "unleashed" - only talked about in heated debates between left and right wing political factions.

Neither of these ideas could be further from the truth.

But first ... let's acknowledge the core concept of these three words: "Modern Monetary Theory". It can be summed up with another three words: "Debt Doesn't Matter". Yes, my friends, you can read volumes about MMT and in the end, what is distilled from all the academic argument and theory involved is that debt doesn't matter (in terms of currency hyperinflation). And the lesson of 2008 lends credence to this view.

Now, the way in which MMT is demonized by the conservative right is to claim that our US political system has been infiltrated by un-American Marxist welfare state-ists who want to rob the middle class's hard earned dollars and give them away to illegal immigrants who will watch free Netflix in their underwear all day, then screw all night to make babies for more free meal tickets. Hold that thought for now, because this idea does bother some people - just not the ones (or for the reasons) you may think.

But the trick here is that our progressive welfare state doesn't actually take the middle class's earned money and hand it over as entitlements. It just prints up all this free money, making the earned money worthless. Most everyone gets this narrative - it's played to death. But again, the lesson of 2008 keeps chipping away at this notion of "making the middle class's earned money worthless" - because here we are 11 years later and it "kinda hasn't". It just pisses earners off to see the same money they earn given away (if only they realized who it's really given to, and how much).

Hopefully, we can begin to understand the truth of these matters. MMT has been in practice for decades (long before 2008). But ... it's not the little people who are the recipients of this free money. It's the generational wealth dynasties and preferred shareholders of the systemic banks who are the benefactors. Listen to Jim Rickards from about the 16:00 mark below:


Yes, the FED could issue 4 trillion in unsterilized dollars to bail out the derivative banking system without creating hyperinflation, so why not issue another 4 trillion to accomplish the Green New Deal? Why not? Because it is the confidence of the ruling class that matters, not the confidence of the little people.

You see, this system in which the ruling class is on "systemic welfare" and the working class is left with dollars that are "harder to earn and keep" ... this is the system which the ruling class supports. Change MMT to place the needy on welfare and leave the rich to create nothing less than real, socially responsible, material wealth (instead of fraud - backed by bailouts) and the system will be sacrificed in another Great Depression. The rich can endure the transition to a new system which again places them on welfare (at the expense of working classes).

The families illustrated this stalemate to the world in 2008. Does no one remember this? The system was to be sacrificed if the debts of ruling class systemic banks were not salvaged. And it was not 4 trillion, it was 23 trillion on the books (and more off).

This my friends is MMT. It is no theory, and again, it has been in practice for decades. And it is never used for the purpose of shoring up income equality, it is used EXCLUSIVELY to increase income INEQUALITY. So in effect, MMT will NEVER be anything more than a theory for its "left leaning Socialist progressive" proponents. Rather, it is a practical tool for the ruling classes to increase wealth and power at the expense of the working class tax base.

As such, MMT and Corporatism go hand in hand, as they have for generations in one form or another. And hopefully, with this better appreciation of MMT, the little people can truly understand who is entitled, and what it means to be.

Saturday, July 6, 2019

Inveculation

There are many facets to a complex idea. The core ideology of these annals, for example, is that our chosen money system is at the root of our moral decay. And furthermore, a free market in gold will do much to cure this ailment. But these are far from "mainstream consciousness" ideas. Indeed these thoughts are discouraged by the operators of our chosen money system. And even this statement is subject to the conditioned response: "check against social correctness".

Alas, to organize the many proofs of argument which support Roacheforque's core ideology would be endlessly tedious. But occasionally, a new proof, or a new branch of one, inspires a new post, and so on. One such branch was revealed through a recent Quora dialogue concerning Ripple's use of XRP.

As I was digesting the implications of the discussion, my thoughts wandered into a new direction. With cryptocurrencies, what are market participants actually investing in? This is not a simple question, so let it sink in a bit. And then consider ... what is the meaning of "investing" in this context.

These thoughts above are merely a different approach toward the popular notion that the traditional definition of "investing" has come under some degree of scrutiny lately. From Google:
in·vest
/inĖˆvest/
verb
gerund or present participle: investing
  1. 1.
    expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.

    "the company is to invest $12 million in its new manufacturing site"

When we put money into "financial schemes" is this the activity of investing or speculation? Look up the word "speculate" and you will find their definitions almost completely synonymous.

There once was a distinction between "investing" and "speculating", when fiat dollars were restrained by gold. And then things changed.

It may seem quite a leap to associate the change in our financial markets, and their activities - indeed the very definition of what market participants are actually doing in the markets - to a change in the nature of our money. But this is because ... as our paradigms shift, our definitions change with them.

When the world's global reserve asset is truly FIAT in nature, the financial markets are now the issuer's CASINO. The owners issue the betting chips, unleashing a paradigm-changing event in the nature of the marketplace.

We all have no doubt heard the many references to our global "casino economy" or "casino markets", but have we truly examined how they got to be this way? It is the fiat betting chips we call "dollars" that enable our casino mentality, our "inveculation". Before the 1970's, a free marketplace existed, as regulated by the somewhat democratic participation of world-wide market participants. I say "democratic" as in more "balanced", since no single player had the supreme advantage of being able to issue and dispense unlimited units of exchange at will (without those units soon finding their way back into bidding for the issuer's gold reserves).

But since the advent of the fiat dollar derivative, the marketplace is a feudal empire run by the issuers of the betting chips, and their proxies. The casino owner can never be broken when they can issue as many chips as it takes to completely manage any market (if the trade is important enough). There is no whale that can outmaneuver a casino that can issue unlimited wagering units at will, whereby the units remain valid throughout the play.

And this has in essence gradually moved our definition of "investing" to one of "speculation", as our market paradigm has gradually shifted. We no longer invest in a fundamental market place, we speculate on the machinations of the Casino chip managers. There is really no difference between the two activities other than the inclusion of the word "risk" in the definition of speculation. As if "investing" in today's "market" does not entail risk? Ask Bill Gross.

So now, back to the discussion that inspired this proof of concept. What actually are we investing in? ... or speculating in? ... when we participate in the cryptocurrency trade?

Why, betting chips of course.
The implications of this?
Time will tell, as the world decides ...

Wednesday, June 26, 2019

Empire of Illusion

No, this is not a formal review of Chris Hedges, but rather an affirmation of what Roacheforque has previously expressed ... possibly to the point of tedium through these annals.

Whether we call it an Empire of Illusion, a Fake World, Idiocracy or 1984, these concepts all generally imply the same understanding.
Hedges describes the polarities of the two societies he says we are now living in: One side is based in reality and able to separate illusion from truth; the other side is rooted in fantasy. The latter, Hedges says, is the growing majority. 
Roacheforque mostly agrees with this. We have indeed gravitated toward a reality that is shaped by information that is created to alter our perceptions - using a socio-economic value system based upon these perceptions.

In effect ... we have invested our world ... massively ... in a complex set of possible outcomes ... involving what we ourselves judge as the most important future events to take place in the material world. We refer to this complex set of possible outcomes as "financial derivatives". And the massive investment we have made amounts to over one quadrillion units of account, denominated in the world's most used and accepted measure of pure value. We need only to understand the implications. Are they elemental? Socially defining? Culturally essential? Spiritually enlightening? Reality defining?

Or instead do we consider these dollar units of value relatively unimportant to our existence - really just a minor afterthought as we go about our lives? Is it the case that money seldom occupies our thoughts ... or is it in fact the bane of our existence - driving us, consuming us?

Does money bring happiness, comfort, the admiration of others, status, power, attraction of the opposite sex, the fulfillment of our desires? Or is it something that we seldom ever think about - just an unimportant item, not really essential, a passing occasional thought?

We decide the value of money, and it's importance to our fulfillment. And if we look around us, at each other and our activities ... what we do and think about money may in fact help us judge it's essence. Once we truly understand the role of these units of account in the civilised world, we may begin to have a better appreciation of the impact they have upon our reality - our material world.

Because the creators of these units can issue as many of them as is needed to shape our perceptions, using this massively invested derivative system which we call financialization.

Call it an Empire of Illusion, a Fake World or what have you. I contend that we live in a Derivative World, empowered by our emotional, intellectual, cultural - even our instinctual / biological / physical attachment to these units of account which define us, and which define the vast majority of  interactions and relationships in this world  ... with humans and their essential man-made systems.

We give that ultimate power to the creators of these units, to manage and manipulate our world ... to achieve their goals - not those of the greater good. That is the great flaw of our derivative world system.

Gold takes this power away from the creators and issuers of our fiat currencies. Gold has no self-serving interest, it has no quality which perpetuates wealth disparity by class or social contract. In the real world, an ounce of gold is worth the same in the hands of a third world nobody as a central banker. And no one can magically turn one ounce of real gold into two, or ten, or a thousand, with the ease of a keystroke.

Furthermore ... we have the power to decide "what is real".

And this, my friends, is the key. As we have given the issuers of US Dollars the power to control our reality, in essence to rule our lives, that power has been sorely abused. And you can clearly see that the nations of the world (and its peoples) who have been most abused by this power, are stacking sovereign gold. You read about it constantly, and you see charts that actually matter - as the contenders for power earn the gold through productive activity in the material world - not through malfeasance and mismanagement of fiat in the corrupt derivative world. Rehypothecation indeed!

More and more nations (and peoples) are getting behind this notion, understanding the power of  this derivative world, wielded for the sole benefit of its creators.

GOLD ends this Empire of Illusion, and the power of its creators - ushering in a more equitable system, rooted in the solid physical world which has always sustained us.

It is Roacheforque's burden to make this known - a solemn duty. Such are the obligations of the Flower of Understanding.