Best of the Week
Most Popular
1.BrExit Looks Set to Win EU Referendum, Final Opinion Polls Give LEAVE Lead Over REMAIN - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit to Save Europe from Climate Change Refugee Migration Apocalypse - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.EU Referendum Latest Opinion Polls Show LEAVE Halting REMAINs Surge - Nadeem_Walayat
7.Gold And Silver – Insanity Is World “Norm.” Keep Stacking! - Michael_Noonan
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.Gold And Silver: Security, And BREXIT - Michael_Noonan
10.BrExit Vote - "The Trend is Set" -- And What You Should Pay Attention to Next - EWI
Free Silver
Last 7 days
BrExit Stock Market Upwards Crash as FTSE Recovers 100% of Friday Plunge - 30th June 16
Stock Market Rally Runs Out of Steam - 29th June 16
Rapid Growth:The Financial Trends Of Online Gaming - 29th June 16
FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - 29th June 16
Stock Market Bounce May be Over - 28th June 16
Stock Market Meltdown Likely to Drive Gold Towards $1,500 - 28th June 16
Brexit Victory over the EU Globalists - 28th June 16
Brexit Psyop: Greenspan Falsely Blames the Brits for the Crash and Chaos to Follow - 28th June 16
Greenspan Calls Brexit a ‘Terrible Outcome’ as Euro Area Tested - 27th June 16
Stock Market SPX Below Mid-Cycle Support - 27th June 16
Best Holidays for Summer 2016 - 27th June 16
Another Stocks Bear Market? - 27th June 16
BBC EU Referendum Result Highlights - YouGov, Markets, Bookmakers, Pollsters ALL WRONG! - 26th June 16
Investors Map Post-Brexit Strategies Amid Global Market Upheaval - 26th June 16
Gold Price Weekly COT Update - 26th June 16
First the UK, then Scotland ... then Texas? - 26th June 16
Stocks Bear Market Resumes or Just More Noise - 26th June 16
Gold And Silver: Security, And BREXIT - 25th June 16
Dow, Euro & Brexit Recap - 25th June 16
Resistance Holding Gold Stocks after Brexit - 25th June 16
Venezuela vs. Ecuador (Chavismo vs. Chavismo Dollarized) - 25th June 16
Gold, Silver And PM Stocks Summer Doldrums Risk - 24th June 16
Here’s Why China “Economic Hard-Landing” Worries Are Overblown - 24th June 16
Jubilee Jolt: Markets Crash, Gold Skyrockets as Britain Takes Brexit - 24th June 16
BrExit Morning - New Dawn for Britain, Independence Day! - 24th June 16
LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - 24th June 16
Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - 24th June 16
EU Referendum Shock Results Putting BrExit LEAVE in the Lead Hitting Sterling Hard - 24th June 16
Final Opinion Poll Gives REMAIN 52% Lead, Bookmakers, Markets and Pollsters ALL Back REMAIN Win - 23rd June 16
Does BREXIT Matter? Outlook for Sterling - 23rd June 16
Keep Calm and Vote BrExit - Last Chance to Break Free of EU Superstate - 23rd June 16
Here’s the Foreign Policy Trump and Clinton Really Want - 23rd June 16
Details Behind Semiconductor Stocks Leadership - 23rd June 16
Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - 23rd June 16
BrExit Looks Set to Win EU Referendum, Final Opinion Polls Give LEAVE Lead Over REMAIN - 22nd June 16
Proof that the Gold Bears are Wrong - 22nd June 16
Here’s a Trillion-Dollar Investment Opportunity for Those Few with No Debt - 22nd June 16
BrExit to Save Europe from Climate Change Refugee Migration Apocalypse - 22nd June 16
Increase In U.S. Rig Count Will Not Cap Oil Prices - 22nd June 16
Are Copper and China Stocks Set to Rally? - 22nd June 16
SPX May Break Its Trendline - 22nd June 16
Believe it or Not: More Kids Live At Home Now than Since The Great Depression - 21st June 16
EU Referendum Latest Opinion Polls Show LEAVE Halting REMAINs Surge - 21st June 16
British Pound Outlook - BREXIT, Europe and You - Does your vote matter? - 21st June 16
Fascist Victory Behind the European Union - 21st June 16
EU Referendum Opinion Polls Analysis Shows Strong Momentum in REMAINs Favour - 21st June 16
Is It Time to Dump Gold and Buy Platinum? - 21st June 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Market Volaility

Mayan Prophecy, Fiscal Cliff, End of the World – What, Me Worry

Politics / Social Issues Dec 10, 2012 - 09:25 AM GMT

By: DeviantInvestor

Politics

(December 21, 2012)

The world will not end on December 21, 2012 or anytime soon. I think the Mayan calendar indicates the end of a very long-term cycle that has a gradual impact upon the world, just as other long-term cycles make significant but gradual changes. Increases and decreases in solar output (a long-term cycle) may create ice ages or droughts that slowly and gradually change the world.


I’m also not worried about the other “end of the world” that we continuously hear about – The Fiscal Cliff. That topic has been worked to death. But the important information is simple:

  • Politicians brought the United States into our current fiscal mess, with the help of The Federal Reserve and bankers.
  • We have entrusted politicians to solve the problem. Really? The same political elite who created the problems will solve them? And what is your current belief structure regarding the Easter Bunny and the Tooth Fairy?
  • We have way too much debt and far too much government spending. The supposed plan is to increase debt forever and without end (sounds like a prayer) and to marginally decrease the rate of increase in spending – and call it a spending cut. If I call a donkey a mosquito, is it really a mosquito, or just a renamed donkey? If I have a debt and spending problem and my plan is to continue spending excessively, should I expect my problem to persist or disappear? If I have a serious drinking problem, should I expect to cure it with vodka?
  • So, the world is not going to end on December 21 or January 1. More of the same will beget more of the same.

But what does worry me are the actions that we, the supposedly most intelligent species on the planet, have made over the past several hundred years. Actions have consequences. Consider these actions:

Creation of Fractional Reserve Banking: This allows bankers to create money “from thin air” and loan it to businesses, individuals, and governments and collect the interest on that created money. The result is that debt increases, additional interest must be paid, and the financial services portion of the economy increases at the expense of the manufacturing economy. The paper shufflers won, and the manufacturers of useful and valuable products lost.

Creation of Central Banks: Central banks, not the free market, currently control the money supply and interest rates, enable politicians to spend excessively and government to expand more rapidly than the productive economy. Consequently, the economy becomes overburdened with debt, interest payments, and government regulations. What could go wrong?

Corporate control over the government and regulatory process: If a business owns many politicians, it can purchase the legislation and regulation it desires. The US tax code is an estimated 70,000 pages of legislation and regulations, as purchased by wealthy and powerful special interests. Intelligent action or payoff action?

Demonetization of gold and the use of unbacked paper money: When paper money is not backed by gold (silver, oil, etc.), then the total quantity of money in circulation can increase almost without limit. Hence, the purchasing value of the money decreases and prices rise. Consumer price inflation is guaranteed.

Politicians, bureaucrats, and bankers control markets and make decisions that should be left to free markets. Another writer likened that process to handing a Stradivarius to a gorilla. Freer markets do a better job of managing the economy, money supply, interest rates, prices, and production. How do we know? Ask the survivors of the hyperinflations in the last century.

Actions have consequences. What are the consequences to the above actions? Read We Have Been Warned!

If not, why not?

GE Christenson
aka Deviant Investor

If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2012 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife