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Into the Breach

Economics / Global Economy May 25, 2015 - 10:06 AM GMT

By: Dr_Jeff_Lewis

Economics

Recently, I thought it would be fun to upgrade the turbo charger on my old car. No real good reason, other than it would be free (it was given to me) and interesting. It’s a very light car that feels like a little rocket (when it works)--a guilty pleasure.

One thing I hadn’t anticipated was the need for higher quality intake hoses to manage the extra air flow and exhaust heat. Over and over, I keep blowing hose connections. While the car still drives during periods, there is barely any power at all.


Strangely, the very odd sound and actual feel of the escaping wind under the hood and into the cabin has been a constant reminder of where we are in this stage of the current monetary cycle.

There is barely any power coming from what’s left of the world economic engine--despite a whole lot of wind blowing around it. We have huge hills to climb and heavy load and starving horses.

What do we have to show for $22 trillion of collective wind recently injected through a broken debt service intake system?
Not a whole lot.

This old money system is limping along. Nothing much real to show except for a huge segment of the labor force out of the system, disconnected.

On the surface it appears to be all ‘balloons and seashells’ as all the hot air propaganda keeps blowing and escaping.

The real economic engine is unrecognizable under the veil of ‘no mark to market’ (GAAP) accounting rule changes, the fall of moral hazard, and organized protection from prosecution – all bought and paid for by the financial-political elite and backed and socialized by the frail tax payer.
All the new money being forced into the system to hide this is barely enough to keep it from bursting, as the destruction of collateral and capital continue fragilize and make us for vulnerable and exposed to risk of ever more dangerous and collapse.  
The entire system depends on the constant flow and servicing of debt which, as we approach the end becomes more and more desperate, surreptitious, and hidden.

More and more we become shrouded in a desperate newspeak rhetoric hinging on the soon to be awakened need to save ourselves--because we owe it to ourselves. Because it’s our fault for being the actors and electing the company.

But too much rides on keeping the casino alive. The handouts must keep flowing, the pay masters solvent.

Elected officials will fall to the common denominator and printing will be associated with pensions and Medicare, and Social Security--and personal security.
The war against the people will be brought on by the people on both sides of the political divide. And that will be the trigger, just when they think that they’ve secured the conduit for the last time. It just blows out again.

History shows that hyperinflation is a process. The engine will keep sputtering along, breaking from time to time, and they’ll try and patch it up again.

But at some point the debtors will decide that enough is enough. Interest rates will rise, confidence will fall, and the system will finally burn. No amount of air will matter. The engine just stops and all that is left is a powerful vacuum disguised as silence.  At the point the very last moment to prepare will pass over.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2015 Dr. Jeff Lewis- 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.

Dr. Jeff Lewis Archive

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