Please read this cogent explanation of the mess we are in. And by "mess" I mean "worldwide collective delusion".
The real reason the debt limit was raised?
Because without it the simulation would crash.
The economy is a mathematical simulation and not real as you were taught in school or in the universities. The economy is rooted in a currency bond that can never pay itself off because what is being used to pay is the same currency bond.
The monetary system overlays the economy as a transfinite mathematical loop.
It extracts or harvests everything you work for and accumulate during your lifetime. Money on the other hand points the flow of wealth towards you where you can actually pile it up.
Real money used to be silver, or gold.
A currency bond on the other hand, reverses the flow away from you and towards the issuer of the currency bond - the central bank.
Such a currency is rented to you in perpetuity, like a rental car that you can never return to the lot.
I talked about this to two fairly well known economists with actual websites and newsletters at a conference I attended.
This was basically my exchange as best as I can recollect it:
Me: If the currency is essentially a legal tender negotiable bond backed by Treasuries, which are themselves bonds, then shouldn't these bonds be listed as liabilities instead of assets on the balance sheet? And instead of income on the income statement, isn't it in fact deferred income (a liability) owed in common to the issuer and renter of the currency bond?
They: Nodding yes...
Me: Where's the so called "cash" or "income" if it's clearly a bond printed on paper with portraits of decease presidents on them?
They: Shrug and a nod...
Me: If both are true, then aren't all corporations and governments, like municipalities, technically in a legally contrived default as well as being insolvent? And doesn't the primary creditor -the Fed - ultimately have claim over all that's in default? As the creditor/lender of last resort?
They: Halfheartedly nodding yes. (But I now have their undivided attention).
Me: And if that's true, then how do you as economist derive a rational understanding of the market and indeed economics as a whole if the premise for it is itself irrational?
They: Stopped nodding and stared at me in surprise and alarm. (They've stopped moving and are frozen in place).
Me: If the premise is a hallucination, then isn't a conclusion about it also a hallucination? About a zombie economy propped up by that hallucination?
They: Smirked. Looked down or away.
Me: Isn't it a superstitious or fictional economy?
Me: Why is this allowed to exist?, I asked.
They: Everyone agrees to the hallucination Alex
Me: And there you have it? We're living in a mathematical simulation of an economy, and not in an actual economy?
"Exactly" they said. "But it works and that's all that matters."
(Spoken like true witch doctors and palm readers ladies and gentlmen. And they and those like them, are the ones in charge making "decisions" about the "economy".
And, if you're a politician reading this and you say a single word about debt or taxation without mentioning this hallucination for what it is.....I will. Diplomatically of course.)
It's these sorts of things that throw charting into a cocked hat... that and the manipulation, of course, ... although, I must admit, it does pique my interest.
Our thoughts coincide. It's dicey, though, holding equities and/or dollars. Each offers it's own stylized peril. It makes using stops abysmally futile.
I cannot help but wonder at what price gold/silver the back of the fiat system breaks. Any ideas?
I watched a short video today. It included Bill Rogers and Ron Paul talking about the highly likely development that the government will "absorb" both IRAs and 401Ks, wrapped up as a scheme to "save the people" from poor returns from their investments. Of course, the caveat is that the funds will be converted to Treasuries because they are much safer.
I'm sure that each of you noticed that both AU and AG jumped sharply this morning only to be hammered down, probably in reprisal. Did TPTB lose their grip this morning? Someone hit the wrong key? Is the end near? LOLOLOLOLOLOL!!!!
In my opinion... we must (and there's no escaping it) go through a catharsis, one that will come about either as a result of this tapering (if there be such in reality) or continued monetary expansion. Yes I meant exactly that.
Those with things of intrinsic and perceived value will make out much better than those without. So, what are you going to be hoarding?
Where are you seeing after hours bids and asks?
A great many know, some even inside the fed, that further monetary expansion has a markedly toxic effect, one greater than any possible economic enhancement that may derived from it. Do you give someone with alcohol poisoning more booze to cure them?
Keynesian economics doesn't work; never has; never will. It is time to get the gangbanksters out of control of the economy and end the fiat system that is poisoning the land and enslaving the people. The debt based system must be supplanted by one based on value again. Then things will turn around, government will have to shrink like a tumor in remission and America can enjoy freedom again.
Why are you here? No one needs you to be their nanny, so you must be on someone's payroll. Who cuts the checks, nanny?
If they actually announce tapering, they will still continue inflating, surreptitiously, to keep the federals spending money. This is nothing but theatre, nothing but.
Technically, the federales have no authority here. Remember, it took a Constitutional amendment to give them the authority to outlaw alcohol. It still would take the same procedure to empower the feds. All that is really happening is unlawful usurpation.
Don't be too sure. Prosperity under the oligarchy is a fool's game.
I do and have given several presentations regarding it and the fraud money system being used to enslave mankind.
Crimes Mala Prohibita are instituted by tyrants and in America there are tyrants of both parties. At one time Americans were free to do whatever they pleased as long as they did not damage another party. That was when America really was a free country. It has devolved to a carnival in a concentration camp.