No Money Exists Without the Majority

[AnonyMint]

I was challenged again and rebutted again. See link in prior post for link to discussion.

Andao,

I have a moment to compose a hopefully more cogent rebuttal. This will continue on from the rebuttal I submitted a couple of hours ago.

I am wondering if you don't read carefully, or if I don't write coherently. For example, I wrote previously that Chinese are allowed to speak against the government, e.g. making a comment in a social network (if it is not censored) or at home, but they are not allowed to organize or become activists. Let me make it more clear. Chinese are allowed to express their personal opinion, but not allowed to form movements that threaten the power of the Communist Party (which I stated already in my prior comment to which you are replying).

In the West we are allowed to talk and organize politically, but this is pointless as the politics is already determined by the fact that the majority of voters are boomers and they will not tolerate a quick and sharp economic collapse the accompanies the defaults from write-down of the debt. But as Michael explained in an upthread comment about Japan, not writing-down the debt (i.e. not defaulting on the lenders) means a long-drawn out period of economic stagnation and decline (23 years thus far in Japan). Without a write-down, the capital stays locked up in interest payments and centralized amongst those who have proven they don't know how to allocate capital. Thus capital does not move to the most efficient, and thus the economy stagnates and declines.

I hope you understand that ZIRP (zero interest rate policy) causes capital to accumulate in the least risky sovereign bonds (e.g. USA, Germany) for safety, as well to speculation and emerging markets to seek yield. Thus ZIRP drives capital away from productive investment to bubbles. Precisely now we have huge dollar bond issues in developing countries funding a bubble in condos and fixed capital infrastructure. This means the developing world is short the dollar, as a Michael's past blog on globalization predicts, this capital inflow will reverse when the Minsky moment hits the West. In fact, you will see a huge rise in the dollar soon through 2016, as capital flees Europe (since Europe is moving rapidly towards capital controls and bail-in form of confiscation). Armstrong had predicted this and this is why we all (following Armstrong) had the knowledge to sell gold before the recent crash of gold.

This is a dead-cat bounce for the dollar and US real estate, being driven by capital in flows some of which is seeking a safe haven and then speculators seeing the trend and following it to chase yield.

Also potential home buyers in the USA are rushing to buy as interest rates rise (California house prices up +25% in past months), because the Fed sees the bubble forming and is talking about tapering down on QE. Armstrong predicted this too, so I was expecting it.

...this will be continued in the next comment...

...continuing from  prior comment...

Indeed the western media appeases the rage of the citizens with talk, but the action is all increasingly socialism. In my prior reply, I forgot to mention France already imposing capital controls and chasing away business with severe taxes and "do not fire" labor laws & regulations, and in the USA we have Obamacare which is destroying business. I already mention ZIRP which is a socialization of debt instead of a write-down of the lenders.

Whereas, China doesn't allow organization of dissent, and the reason is because the real economy is moving more and more capitalist and so there is no political vested interest that can hold up the Communist Party once the wildfire is lit. Thus they must prevent the spark, but the Minsky moment will provide that spark and then it will be dismantled rapidly. Whereas the West politically and economically can't reform because of the demographics can not allow it. Thus the West will devolve into a horrific outcome of wealth confiscation when the Minsky moment occurs (roughly circa 2016).

The privatization and discovery of information will spread very quickly in China after the Minsky moment because there is nothing stopping it other than the Chinese military. The people are young and will adapt quickly because in reality they are moving more to capitalism and back to their core values of Confucianism every day.

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[AnonyMint]

Andao, finally got back to my desktop computer where I can type properly.

You cited the arrest of some activists in China and made the conclusion that this is not a "big improvement". How can you ignore the progress China has made on moving away from the totalitarianism of the cultural revolution, Great Leap forward, and the Tiananmen Square, to the widespread capitalism and freedom today? Of course, there are still some serious obstacles, but to argue there has been no big improvement is absurd.

Also that there exists activists who were emboldened by hope generated by the Premiere's policy statements, and that they were not immediately shot, is another indicator of how far China has come. China appears to be in the mode now of increasing tolerance, while maintaining suppression of a political spark that could send the whole thing spiraling out-of-control. I don't expect the leadership to succeed in a gradual transition from the remnants of communism to more free markets, because this last step (towards greater consumer share of the economy and foreign exchange freedom-of-capital for the middle class) requires removing the power of the 200 families that rule China. So unless there can be found a way for these 200 to continue to concentrate wealth and power, and open the economy more, then eventually there will be a Minsky moment, and another step forward in change similar to Tiananmen Square. Transitions occur in stages, as the economics and demographics overpower the stasis.

I think we need to consider the Asian culture of "face" when separating what the people on the street say when quoted, and what they actually do. Sure they play the "who you know" political favors game, because for now that is one of the primary means to do capitalism and succeed within the system which is still held back by the power of the Communist Party. But underlying this, the thoughts of the people are more Confucianist than Communist, and they want capitalism in their business activities. My perception is they want socialism to the extent that it creates a level playing field for eliminating evils of society. Since socialism does exactly the opposite due to the Olsen effect, then as the next economic crisis hits, they will grow more and more aware of their closer attachment to Confuscianism over a failed communist ideology which serves no purpose in their daily business lives as they strive to maximize wealth and security within their Confucianist core value system.

Their result will be different than the Europe or the USA to the extent their core culture is different (from Christianity, and the western culture of always moving forward man can improve upon nature versus Asian culture of cycles and repeating wisdom with nature in control).

The key point is that when the Minsky moment comes China won't have a majority of the population over 60 and unable to do anything but demand the government sequester wealth to sustain them. China will have a majority of the population in the 20 and 40 age brackets, thus able to roll up their sleeves and refocus energies on new markets after the fixed capital investment bubble has burst. And the rest of Asia is in proximity with the majority of the population in the working age 20s bracket.

Whereas the west is now burdened by the result of massive use of birth control and the bulge in births due to returning soldiers from World War 2, thus now not having sufficient youth to vote out the stasis of sequesting wealth from savers and transferring it to maintaining the increasing debt.

The freedom that westerners have is very fragile, because it only exists to the extent is does not conflict with the need of the boomers to sequester wealth to maintain their quality of life. In southern Europe, we see the youth unemployment is double the adults, as the boomers vote to sustain the debts and minimize effects on themselves.

[AnonyMint]

http://www.mpettis.com/2013/06/10/how-much-investment-is-optimal/#comment-24051

illumined,

It is very difficult to make the depositors whole, because this is a highly leveraged fractional reserve system (e.g. I've read the Spanish banks are leveraged 26-to-1), and worse yet there are all these up to a $quadrillion of sovereign bond interest rate derivatives gambling bets effectively used as reserves (since Tier 1 capital are sovereign bonds), thus leveraging the western financial system into the stratosphere.

We have to hit the reset button on the entire western financial system. There are two ways to do this. The slow way which allows increasing the debt and continuing to misallocate capital. Or the fast way of declaring everything 0, and recapitalizing a new system.

So far, Japan and the west have chosen the slow way of continuing interest payments and ZIRP to keep the derivatives whole, with Japan in a 23 year decline.  If the West continues down the slow way, it will be a global contagion. The west must continue down the slow way, because the boomers are too old to gain from a quick reset, they would not be competitive with Asia given a lack of youth in the west.

Asia will break away and do its own quicker reset once this global contagion takes down global exports. Japan is 3 years from the 26 year downturn bottom expected by the repeating 78 year cycle.

[AnonyMint]

http://www.mpettis.com/2013/06/10/how-much-investment-is-optimal/#comment-23978

Andao,

And of course you’re talking about a banking system which is entirely government run, and where property cannot be purchased, only leased. I’m not sure how you can get more socialist than that.

Ditto the western banking system in reality, and especially once all the derivatives and liabilities in the system are factored in and the system has reset to (as I postulated in reply to illumined downthread). Fractional reserve banking systems are inherently socialist over time until the financial system resets with write-downs.

Leasing property is not necessarily socialist. Private property rights in the west are somewhat of an illusion due to the false high valuations by pulling demand forward 30 years with debt, high insurance payments, rising property taxes as states are bankrupt. The western real estate has not bottomed. I expect the gold-to-house ratio to increase another order-of-magnitude!

What is the limit on taking USD out of the US vs RMB out of China? Obviously there is a huge difference when you are talking capital controls.

You cherry picked foreign exchange. Yet if we compare controls on exporters, I bet the USA is much more socialist with labor laws, export restrictions, and higher taxes.

As far as I know, there’s no such thing as a private hospital in China (unless you’re looking at plastic surgery/dental). I for one have never been to a private practice, nor have I ever seen one.

China may be trying to keep the national cost on health care low, so it has a more competitive economy for exporting. As it shifts to a consumer economy, the priority will shift to the advantage that allowing more spending on health care, enables greater security and consumer spending of savings.

What I am saying is that when global exports crater circa 2016, China will undergo a radical and rapid transformation. The pent up demand and capacity for this change is ready. Whereas, the west doesn't have any capacity to adapt after 2016.

You overemphasize lack of interest of the Chinese to research some obscure facts about history. The main priority of Chinese today is to earn money, so they can buy a house, car, and get married. On that front, they know they are not [entirely] free and are eager to gain more capitalism.

[AnonyMint]

As far as I know, economists widely have failed to emphasize the critical role derivatives are playing in keeping the west locked into ZIRP and bail-ins versus write-down of the lenders. Thus instead of a quick collapse and reset with ensuing quick recovery, as what occurred in Iceland or the USA after 1919, these derivatives have conflated the sovereign bonds with the lenders to real-estate, thus insuring any write-down would be apocalyptically spread on to retirement plans. The derivatives along with nearly retired boomer demographic bulge, are the main factors of social capital looking forward for the west.

Btw, bail-ins are socialist because the savers pay for the mistakes of the lenders and borrowers (and derivative gamblers), but this is inherent in fractional reserve banking.

Michael raised a very important concept by introducing social capital. Now let's get real about it. I wish I could read some prominent economists face the reality that the West can't escape with write-downs, and thus there won't be any break from Euro either (which I published a prediction on nearly 2 years ago). This will be a 26 year catastrophe. And it happens every 78 years in recorded history, at least since we emerged from the Roman Dark Age. Because demographics drives economics. Twenty-six years is how long it takes a human to become mature and ready to take over responsibility and become a major factor in the work force and start a family.

The west has to wait 26 years from 2007, when the boomers were 52, for them to die off at age 78. And for the generation born in 2007 to mature and be ready to compete with Asia in the robotic and automation revolution which will becoming a significant sector of the global economy by then (2033).

[AnonyMint]

I think one of the most important features for a better bitcoin alternative is the ability to realistically mine from general purpose computers. Two main reasons:

• help protect against a 51% attack by enabling humanity to leverage its preexisting idle computing power
• anonymity (not subject to id checks at money exchanges) since western governments must hunt down all wealth over time and confiscate it. Paul Rosenberg, the CEO of virtual private network provider Cryptohippie seems to agree. First they will do "bail-ins" for deposits over 100,000 probably with clawback against those who moved funds in anticipation, c.f. clawbacks in the MG Global default.

In addition to such a better alternative bitcoin perhaps coming on the horizon (perhaps created by myself), in the near-term until at least roughly 2015, US citizens may be able to keep under $10,000 in cash off the radar in a foreign account with a country that as of yet still has some bank secrecy. A GAO report explains why in 2015 the pressure from the US government will increase to force foreign banks (even those with bank secrecy laws) to report your account(s), although perhaps this has been delayed to 2017. Already for example, the US can obtain information on a specific account in most countries with bank secrecy, if they have a specific name or account number and a justified suspicion of tax avoidance.

I just learned today that the total amount of foreign accounts must not reach nor exceed $10,000 on any given statement period as follows.

http://www.nestmann.com/appeals-court-weakens-willfulness-defense-in-failure-to-file-foreign-account-reporting-forms/

Should you have any concerns if you have an account under $10,000

Bob, if the aggregate total of all offshore accounts never exceeds $10,000 in a given year, you don’t need to report the existence of the account(s) to the IRS or Treasury, although you still need to report and pay tax on any income generated.

http://www.onlinepokerfaq.com/guide/tax-fbar-90221.html

In addition to filing this form [Treasury form 90-22.1: Report of Foreign Bank and Financial Accounts] with the Treasury Department, you may need to declare the foreign accounts on your US tax return. The IRS instructions for Schedule B, line 7 say:

Check the "Yes" box on line 7a if either 1 or 2 next applies.

1. You own more than 50% of the stock in any corporation that owns one or more foreign bank accounts.

2. At any time during the year you had an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account).

The instructions go on to note an exception in the case of small accounts:

Exceptions. Check the "No" box if any of the following applies to you.

The combined value of the accounts was $10,000 or less during the whole year.

(Remember: This page gives you pointers to information that may help you understand US Treasury regulations and tax law. We do not give you legal or tax advice. It is up to you to understand the law and file the correct forms. If you need advice you must see a professional.)

The penalties for not filing the above are extreme, including possibly up to a $500,000 fine and 5 years in jail.

As for Europeans, France and the G8 are also getting organized to come after your wealth hiding overseas:

http://armstrongeconomics.com/2013/06/26/us-iron-curtain-is-coming-in-new-immigration-bill-for-all-americans/
http://www.nestmann.com/homelanders-to-u-s-expatriates-dont-come-back-ever/
http://armstrongeconomics.com/2013/06/18/g8-going-to-hunt-down-all-capital/
http://armstrongeconomics.com/2013/06/18/icij-has-done-far-more-damage-to-the-world-economy-that-anyone-realized/
http://armstrongeconomics.com/2013/06/15/united-stasi-of-america/
http://armstrongeconomics.com/2013/06/15/precious-metals-remain-under-attack-by-governments/
http://armstrongeconomics.com/2013/06/14/the-collapse-in-liquidity-rising-volatility/
http://armstrongeconomics.com/2013/06/13/german-high-court-introducing-more-euro-chaos/
http://armstrongeconomics.com/2013/06/12/city-dwellers-at-greatest-risk/
http://armstrongeconomics.com/2013/06/12/snowdens-rude-awakening-usa-does-control-most-of-the-world/
http://armstrongeconomics.com/2013/06/12/greesce-shuts-down-tv-new/
http://armstrongeconomics.com/2013/06/11/capitalism-or-marxism-that-is-the-question/
http://armstrongeconomics.com/2013/06/11/mailing-cash-is-prohibited-in-usa-france-bars-even-gold/
http://armstrongeconomics.com/2013/06/11/congress-wants-snowdens-head-not-the-nsa/
http://armstrongeconomics.com/2013/06/11/the-future-of-the-world-economy-les-miserables/
http://armstrongeconomics.com/2013/06/11/paranoid-or-conservative/
http://armstrongeconomics.com/2013/06/10/capitol-hill/
http://armstrongeconomics.com/2013/06/10/france-declares-victory-over-entire-eurozone-crisis/
http://armstrongeconomics.com/2013/06/09/nsa-surveillance/
http://armstrongeconomics.com/2013/06/08/why-the-survelience-is-very-dangerous/
http://armstrongeconomics.com/2013/06/08/political-trivia-test-can-you-pass-it/ (Hillary Clinton's plans for confiscation)
http://armstrongeconomics.com/2013/06/07/unemployment-benefits-cut-part-of-deflation/ (the official rate will go to 25-30%, real rate much higher perhaps)
http://armstrongeconomics.com/2013/06/06/imf-admits-it-made-a-mistake-with-greece/ (Only Julius Caesar understood how to fix a debt crisis)
http://armstrongeconomics.com/2013/06/06/nsa-tapping-into-internet-directly/
http://armstrongeconomics.com/2013/06/06/is-paranoid-becoming-normal/
http://armstrongeconomics.com/2013/06/05/this-no-time-to-quit-a-job-us-youth-unemployment-hits-16-2/
http://armstrongeconomics.com/2013/06/04/search-warrants-not-necessary-to-take-you-dna/
http://armstrongeconomics.com/2013/06/04/the-growing-shadow-economy-politicians-just-dont-get-it/
http://armstrongeconomics.com/2013/06/04/1984-is-here-2014/
http://armstrongeconomics.com/2013/06/03/seniors-are-the-greediest-generation/
http://armstrongeconomics.com/2013/06/02/rising-tide-of-civil-unrest/
http://armstrongeconomics.com/2013/06/02/the-real-conspiracy/
http://armstrongeconomics.com/2013/06/01/11999/ (Primary Dealers – the Truth About Their Iron Grip)
http://armstrongeconomics.com/2013/05/31/freedom-to-travel-in-europe-shutting-down/
http://www.nestmann.com/cell-tracking/
http://armstrongeconomics.com/2013/05/15/europe-plans-the-confiscation-of-depositor-assets/
http://armstrongeconomics.com/2013/04/19/germany-wants-global-taxation-cooperation/
http://armstrongeconomics.com/2013/04/19/the-pension-crisis-interest-rate-nightmare/
http://armstrongeconomics.com/2013/04/19/inflation-v-deflation/
http://armstrongeconomics.com/2013/04/18/europe-considering-mandatory-15-of-wages-to-be-taken-for-pensions/
http://armstrongeconomics.com/2013/04/17/the-next-seizure-coming-u-s-consumer-financial-protection-bureau/
http://armstrongeconomics.com/2013/04/17/will-pension-funds-be-the-target-after-2016-to-seize-for-our-protection/
http://armstrongeconomics.com/2013/04/16/europe-to-begin-capital-controls-soon/
http://armstrongeconomics.com/2013/04/13/france-is-pushing-for-tax-evasion-to-be-top-eu-priority-hitler-returns/
http://armstrongeconomics.com/2013/04/12/government-pensions-will-cost-2500-per-household-climbing/
http://armstrongeconomics.com/2013/03/29/cyprus-confiscation-of-assets-is-global-plan/
http://armstrongeconomics.com/2013/03/28/electronic-money/
http://armstrongeconomics.com/2013/03/27/are-we-head-to-a-mad-max-scenario/
http://armstrongeconomics.com/2013/03/25/sovereign-debt-crisis-conference-2/
http://armstrongeconomics.com/2013/02/26/visit-italy-they-seize-your-jewelry/ ("Diego Maradona, the Argentine soccer star...")
http://www.nestmann.com/yes-you-are-a-criminalyou-just-dont-know-it-yet-2/
http://en.wikipedia.org/wiki/List_of_countries_by_incarceration_rate (USA an order-of-magnitude higher)
http://esr.ibiblio.org/?p=4934&cpage=1#comment-400351 (suburbs as peaceful as Switzerland, Americans are culturally less law abiding & some violent big cities)
http://en.wikipedia.org/wiki/Conviction_rate (with 93% conviction rate from US Dept or Justice, 99%  in NY Fed courts according to Armstrong)
http://esr.ibiblio.org/?p=4927&cpage=1#comment-399831 (Why should it happen to Denmark?)
http://www.nestmann.com/passport-denials-long-a-feature-of-u-s-foreign-policy/
http://www.nestmann.com/hungary-now-imposes-tax-on-non-resident-citizens/


So what should one do after 2015 (or 2017 perhaps) and with more than $10,000 in savings?A better bitcoin? I warned about this situation 3 years ago and that gold will not be a solution (note I no longer think a stampede into gold will cause hyper-inflation, because the world's wealth will never make it into gold, rather we are headed for deflation with confiscations yet gold will go very high due to being a place where wealthy attempt to store wealth from confiscation).

Disclaimer: I am not giving tax nor financial advice in any my posts. I am merely relaying some thoughts I have had, thus readers should consult their own professional advisers and attorneys.

[AnonyMint]

Armstrong has been correct so far, so bottom should be in first week of July at $1150 and $17.

We will then rally later in the year, as gold rises in the Euro significantly as turmoil around the German elections. Ditto Yen and probably emerging market currencies too. The Australian dollar looks like it is ready to capitulate.

But then the dollar will rally very strongly and gold may dip in dollars while not in Euros.

Thus gold & silver will not move strongly up in dollars until after 2015.

Silver could possibly move even lower than $17 in 2014/5 as the emerging markets start to slow down due to Europe.

I think Japan will crash hard in 2014/5, then bottom in 2016.

What we lose for silver industrial demand to consumers, might be recovered not only in investment demand but if we go to war after 2014. Probably more importantly Asia will bottom before the West does and then their demand will pick up again.

http://www.mpettis.com/2013/05/21/excess-german-savings-not-thrift-caused-the-european-crisis/#comment-23486

================
The global sovereign debt crisis will ultimately be resolved with a stable global (or first several regional, e.g. NAU dollar, Euro, Yuan as the Asia Union and/or BRIC currency) currency (ies) against which all other national currencies float. This will enable nation-states the flexibility to exist with differences, while providing a stable fulcrum for reserves, international store-of-value, and international trade and FX.

Europeans want the advantages of integration (e.g. travel freedom, market economies-of-scale, control of conflicts between states, etc) without the costs (e.g. uniform debt-to-GDP ratios, uniform productivity, uniform culture, etc), thus they tried to create a Euro which had the advantages without the costs, and it has failed miserably as predicted by Margaret Thatcher and others..

Now the politics is shifting towards disillusionment, and this is likely to explode to the forefront with the German elections in the fall, especially now that the Germany economy is shrinking.

http://armstrongeconomics.com/2013/06/27/merkel-becoming-euro-skeptic/
(summary which links to spiegel.de story that also contains the following comment)

3. European Unification
chris@drakemarine.co.uk 06/25/2013
Frau Merkel, as usual, has accurately taken the pulse of her electorate. There has never been an appetite amongst the electorate of any country for full integration and all that it means : central control from Brussels, loss of sovereignity etc. The problem has been that the Eurocrats have a long history of ignoring the wishes of the people and it was always going to turn round and bite them. The Euro was a half hearted project because the Brussels elite thought they could bring is full integration step by step. This policy has failed spectacularly and there is no chance of achieving sufficient unification or the necessary transfer of resources to enable every country to stay in the Euro. Britain is the one country where this was evident years ago and we are well ahead of the game. Where we lead, others will follow. To her credit, Frau Merkel is a pragmatist. She needs to do everything she can to keep Britain on board to counter the protectionist and socialist tendencies, particularly in France. Looser ties between member states are necessary to gain the support of the electorate all over the EU and in particular the UK. Without Britain, the ultimate goal of establishing the EU as the centre of a worldwide free trading block will be a battle Germany can’t win. Mrs Merkel is simply positioning her country for the battle to come. I believe it will be very difficult to drive through a deal Britain can live with.

[AnonyMint]

Click the link to read it in context of a discussion.

THIS WILL BE THE MOST IMPORTANT EMAIL YOU READ.

http://blog.jim.com/culture/radish-explains-what-racism-means.html/comment-page-1#comment-343342

You have provided no counter example. No empire has ever collapsed with hyperinflation. As you admit, Rome survived the inflationary crisis and only collapsed with deflation when the people abandoned the currency and the city too. Hyperinflation is where a country can't sell its bonds and pays its bills by printing money. The key difference is that in hyperinflation you can get more fiat for your gold. In deflation, you get less fiat, or you don't want the fiat because no one will accept it anymore at any valuation. Deflation is the state vs. the people madmax scenario, hyperinflation is running on a treadmill where people lose confidence but the government is not attacking the people, rather just printing money to fund its operations in an exponential spiral. You will pray for hyperinflation, when you see what is coming to us. You don't understand that Rome had a two-tier money system, and the people abandoned their land and the currency, because of the onerous taxes that had to be paid in the first tier currency that wasn't debased!! The G20 is going to hunt everyone down and tax them to death. You can't argue with Martin Armstrong, he has spent $millions on researching the history of world. He spent $10 million just to create a chart of the silver price during the Roman era, by collecting every silver coin from the era. He had researchers compile information from the media archives in London and else where. Read How Empires Die.

Note the empire rotates around the world from Europe to America to Asia. USA is peaking and Asia is next up. Britian handed it to USA, but we had our 1929 at the handoff, and China will have its 1929 in 2016.

China wasn't an empire when they hyperinflated, they were an isolated Yuan Dynasty in middle ages or the socialist failure of the Republic of China in the 1940s.

[digitalindustry]

"Money and socialism are intertwined and this will never change. To survive the near total wipeout of fungible money in a Mad Max Dark Age, store production in non-fungible knowledge or technologies that continue to generate revenue during or at least after the crisis."


Markets and "money" and "socialism" are intertwined.

I expect you mean, Markets are the most social natural human aspect , as humans are social naturally, all "money" is , is the shiney little tokens in which we can base "faith".

I designed a transnational  E-democracy pyramid structure policy , its very very simple .

it simply works like protocols:

At the "Top" of the pyramid you may say Government owns essential hardware and infrastructure, you can guess as to which types.

then they let the market "compete" on top of these essential structures this can be called the "Transitional directed free market"

then on each level down there is less and less government ,requiring less and less tax,  until you get the small and micro business , which are/should be essentially the freest markets.

now picture , lines or many fibers holding the pyramid together if you like , these lines run from bottom to top and every which way in-between, these lines are the essential feedback mechanisms to and from the "top" and "bottom" and all levels in-between of the Pyramid .

A feed back mechanism is simply something like, this forum.  <there are many detail I'm not going to bore you with<

but the key is to connect the essential parts of each platform of the Pyramid , so in that example , for example say.. regional governments and local and business centers Police of course, these are all feedback connected, the key is to the base.

The Russian Federation is a Key nation that has taken on a similar concept {all-be it coincidental} , although you would never hear about it , revolutionary things are happening, because they have no stake in a pure top down system., its almost like the revolution was a blessing and a victory , although it wouldn't be seen as such.

in a structure like this censorship is a kind of attack and unneeded censorship is an outright attack on the system and should be viewed seriously and as such.

[AnonyMint]

You hide my very important post with a gibberish post. Readers please see my immediately prior post.

[Lauda]

Cool story bro.

This.
Stopped reading at the word "No". 

[digitalindustry]

You hide my very important post with a gibberish post. Readers please see my immediately prior post.

I guess it's only "gibberish" because you simply can't understand it yes?

you write a long simplistic diatribe full of "common economic" and "socialism" then point at "actual social economics" as gibberish ?

my advice,  stop getting excited about the fact that you think you understand the difference between deflation and inflation .

you have a very dim view of the future - its a future of "no price" , this is not revolutionary , many people see a deflationary spiral typically when this occurs people are dying and the military are on the street .

my own view is that long before it gets exactly that bad , most "western" nations that have direct exchange swaps, will simply walk away from the principal system without too much of a drama.

i'm sure there will some and/or many localized disruptions, but guess what? the market will still be there , and it will still be working.  



** my suggestion for you , invest hard into "Cap currency" "although they seem to keep "forking it" literally.

[SlyWax]

This is also why we can digitally sign with a newspaper clipping to prove the signing occurred after a point in time (as Satoshi did to prove that he did not pre-mine), but we can't use any absolute reference point for proving something happened before a point in time, rather different observers will have a different recollection of reality.

If you have a photo in front of the twin tower, It should be dated before 2001/09/11 ...

[Lauda]

Walls of text, so much fun.. not 

[AnonyMint]

This is also why we can digitally sign with a newspaper clipping to prove the signing occurred after a point in time (as Satoshi did to prove that he did not pre-mine), but we can't use any absolute reference point for proving something happened before a point in time, rather different observers will have a different recollection of reality.

If you have a photo in front of the twin tower, It should be dated before 2001/09/11 ...

Not true. Photoshop lies.

[AnonyMint]

More pointedly why we sink into deflation, not hyperinflation.

AGAIN THIS IS THE MOST IMPORTANT THING YOU NEED TO KNOW NOW.

SEE ARMSTRONG's 100s OF CORRECT PREDICTIONS NEAR BOTTOM OF THIS THREAD.

Click this first link below to read the following in context of larger discussion about hyperinflation vs. deflation as how fiat dies when empires die.

http://blog.jim.com/culture/radish-explains-what-racism-means.html/comment-page-1#comment-344394

My prior explanation didn't pointedly clarify what is recognizably distinct (different) between hyperinflation and the deflation where people discard the fiat (for anything they can until no one will accept it). In both cases, there is deflation relative to the value of hard assets (e.g. gold and land that wasn't fiat financed overvalued, e.g. undeveloped rural land that banks won't provide loans for).

The pointed distinction is that in the hyperinflationary case the government prints 10,000, 100,000, 1 million notes (or physically debased the physical coin to the same effect). Thus you see the value of gold go to 10,000, 100,000, etc. You will not see $100,000 dollar notes during this crisis.

The debasement of storing QE generated reserves at the Fed by the banks, caused massive dollar loans (leveraged on those reserves) in the developing world (not in the USA). Now those (fractional reserve created) dollars are returning home causing this bounce in the USA that will end 2015.75 because of the feedback loop effect I described upthread. That feedback loop is causing rest of world to collapse in deflation.

At the death of the empire, the powers that be maintain control by squeezing the middle class between inflation and deflation simultaneously. The currency is debased (but not exponential spiral unless they create a two-tier currency where the monetary unit for paying taxes isn't debased, note even 500 A.D. Roman coin was only debased 1/50, not 1/100,000) while increasing taxes. The middle class eventually disappears and flees the cities where the powers are extracting unlivable taxes, to places where they can produce without interference of the pathological end-game of statism.

The key difference is there is no state to run to with the collapse of the global empire, you can only run away to the mountains (the Madmax outcome depending on how the handoff from one empire to the next transpires, hopefully we won't get a Dark Ages this time, probably not because Asia is so rich in billions of educated youth with good family values that the western empire hasn't destroyed yet). Whereas, with hyperinflation, you can run to another state and its currency and continue functioning normally.

The global empire collapses in deflation and then the center of the empire transfers to where there isn't this huge statism taxing the economy, i.e. as Heritage Foundation data shows Asia (including China) has much lower government share of GDP than the West (with the exception of Switzerland). I explained why China and Asia are the future.

Anarcho-capitalism is the technological mountains this time around.

James A. Donald, you were there at the beginning with Satoshi. Now stay with me as I fix Bitcoin. But you won’t be able to prove it is me doing the work


=====================================
Another line of summary at the following link:

http://relativisticobserver.blogspot.com/2013/07/observing-microsoft-part-3.html?showComment=1375616451672#c6434436042918130550

First a macro-economic point w.r.t the relative trajectories of Microsoft, Apple, and Google. Some details were in the prior blog.

The western empire is dying (empires move periodically from Europe to America to Asia to Europe...), but empires never collapse with hyperinflation, rather always deflation and onerous taxation (police states devolution into abandonment of the cities).

The future (after 2016 when the USA begins its big economic collapse) after China has its 1929 handoff depression in 2016, is consumer economic volume and growth will be focused in the developing world predominantly Asia. The stock valuation of these companies should be based on their market share in Asia. The collapse starting in 2016 (maybe ending 2020 for Asia, 2033 for West) will do that.

I hope Tim Cook (Ballmer is hopeless) is aware. You may not agree, yet I have studied the evidence that this repeats every 78 and 224 years. The Google people may not understand this, but they understand that global market share is the future, so they arrive at the same optimum long-term strategy.

[digitalindustry]

Anony

You show all the traits of someone that is on antidepressants and has just learned about economics, actual real , economics.

if you take that the wrong way , don't,  as its not meant as an insult.

if I'm right of course , continue... of course...

[AnonyMint]

Careful with your subjective bias when the record clearly shows that Armstrong predicts everything every time without fail. 30 years of record is enough to show you that your bias is irrational.

https://en.wikipedia.org/wiki/Cognitive_dissonance

http://www.simplypsychology.org/cognitive-dissonance.html

http://psychcentral.com/blog/archives/2008/10/19/fighting-cognitive-dissonance-the-lies-we-tell-ourselves/

birdbrain, it will be proven by 2016 that everything I wrote above about the coming deflation is correct. Now stay on ignore (I encourage other readers to click the ignore next to your name on the left to show you that you speak only noise) with your other dimwitted commentators who have nothing intelligent to say.

All of what I wrote is just a re-summary of Martin Armstrong's Pi model of international capital flows. It has enabled him to make the following correct predictions years in advance of the predictions coming true. He spent $100 million developing the research and having his computer find all the correlations. That is when he discovered that human nature and thus international capital flows also move in waves, just like everything else in the The Universe (my blog) does. That doesn't mean we can predict what any individual human will do, only that we can predict the macro waves. Martin Armstrong helped me to make a public prediction that gold would decline from $1550 to under $1200. I was also the person who exactly predicted the 2011 price moves of silver back in Oct 2010. So shut your birdmouth. It is also allowing me to predict that the DJIA will go to 39,000 before 2015.75 and that gold will probably go up to 1424 - 1550, then crash back down to 1050 or below. Gold will not make new highs under after 2015.75. Now you just wait and see if I am correct again or not. I made one mistake betting too early on China's collapse last year, because I wasn't reading Armstrong (who makes it very clear China won't collapse until 2016).

• Predicted the Sept 2000 market top, Nov 2002 market bottom, January 1st, 2005 yearly high for the NASDAQ to exact day! in document that was published in 1997 which also predicted the 2007 market top and earlier had predicted the upturn in commodities in 1977
• Predicted back in Jan. 2012 that gold would decline from $1600 to below $1200 before 2015 even while everyone was screaming he was nuts. This year he was writing a blog every few days shouting that gold was going to fall. The goldbugs hated him.
• He predicted the top in gold in 1980
• He predicted the crash of 1987 (to the day!) and that bull market in Japan would continue until end 1989
• His model predicted an event something like 9/11 would happen
• many, many, many more correct predictions than I care or have time to go compile for you

P.S. I am sending a link to this rebuttal out publicly.

=================================

Note I was starting to lean towards Armstrong's cycles when I INDEPENDENTLY discovered his 78 year cycle in Feb. 2013. The key was looking at long-term charts for strange patterns that stand out like a bloody nose. This caused me to integrate his 3 x 26 = 78 year model into my understanding of technological unemployment (follow the sub-links at the above linked pages to get to a table of historical dates evidence of the 78 year cycles).

[AnonyMint]

LaudaM has been placed on ignore and reported to the moderator for trolling (for the comment immediately above this one which has disappeared since I reported it, he said "he is an alien fuck"). He doesn't say anything meaningful and turns my thread into a circus of meaningless noise.

[AnonyMint]

So again I ask you, do you have any numbers or any evidence to show that transaction fees alone cannot support the Bitcoin network in the future?

Sure it can if you accept the mining won't be available as the only way to get true anonymity, and that the large corporations will take over mining (because they can offer transaction fees of zero or even less than zero because they make it back with a cartel and higher prices).

I guess you guys never heard of Visa and MasterCard.