Tuesday, May 19, 2020

The Masquerade

The last decade has been strange indeed. 2020? Stranger still. Many formerly held beliefs are being questioned, as what we read and hear challenge them. Some people do not know what to believe. Is "truth" an objective constant? Never wavering, never escaping our most objective perceptions?

It seems fairly obvious to some people ... that powerful entities are battling for "the public's" perception of the truth ... attempting to either affirm, or change, those perceptions ... usually to one extreme or another. There are many who are still unsure, or are moderate in their positions. But there is so much cheerleading to "identify" with one or the other of opposing extremes, those positions may begin to lean in consideration of competing truths.

Roacheforque has talked of this phenomenon in many posts... in terms of the "world of future expectations" vs. the "here and now". And perhaps with this curious perceptual "tug of war" depicted above, we can better appreciate how the world of future expectations (the derivative world) shapes the here and now in a very real sense. A sense which gives us a framework for how these two worlds collide and interact.

Hopefully, we have shown how capital, leveraged in massive derivative financial positions, has grown to a degree that financialization has become a prime determinant of our dominant reality. Forgive me for taking this sudden logical leap. But if you have read at least the past 10 posts, I think you will have seen that we can agree on certain things.

For example, our real world is closely defined by our "economics". We can see that when the physical world delivers a catastrophic, unexpected shock (like COVID 19), the systemic world order collapses into economic panic. It could have been a bomb dropped, or a massive world wide weather catastrophe, or a global pandemic. The crash would be the same.

Secondly, only massive amounts of capital creation by the system's "money creator" (the FED) can assuage the panic, and bring the derivative world back under control. These massive infusions of new US dollars stabilize the derivative positions by guaranteeing systemic integrity ... in a sense, bringing the world "back into order"

There are big winners, and big losers, mostly in the off-book dark money world of the banking class elites. And as always, the casino (FED) covers all bets, according to house (BIS) rules. When the money flows to the correct players, the price of gold and other commodities is reconciled, the exchange rates of the currencies are reconciled, the equity markets continue to be elevated, and the price of money over time is brought under control.

These competing realities we speak of, show us how the real world becomes the derivative world, as the value system we ascribe to is attenuated by the movement of senior capital. And likewise, the competition for sentiment - that hard to define moment when your perception shifts to favor one outcome over the other. That, my friends, creates "winning".

Thus, as we give the money its power. It's influence shapes our very reality.

If that does not seem Orwellian enough for you, by all means pick another competing reality to identify with, for there are many. Just remember, they are all backed by one thing. And when we accept that one piece of paper is worth a hundred times more than another, we are truly engaged in the derivative delusion.

Yes ... we ALL ARE ... for now.

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