Wednesday, December 28, 2011

Morning Update/ Market Thread 12/28 - It’s the Debt, Stupid!

Good Morning,

Equities are lower this morning with the dollar rising, oil lower than yesterday’s high but still over $100, gold & silver considerably lower, and unfortunately for the world food prices are significantly higher at the same time.

Yes, it’s the DEBT, stupid, for anyone left on the planet that still doesn’t get it! Deficits DO matter! It’s a viscous circle because our money is debt. Those who produce it profit, while those who service it become slaves to it. That’s the problem, and it doesn’t have to be that way!

Money can come into existence without owing debt to any individuals! And before you shout INFLATION, yes, it is completely possible to do so without creating inflation, but it requires legitimate checks and balances.

Now we have Obama wanting another $1.2 Trillion to the debt ceiling! Yes, it matters! The more debt an economy carries, the more of that economy’s productivity goes into carrying that debt! Eventually debt saturation is reached and then unemployment begins to rise dramatically as income must service debt instead of being used as a tool of production.

Below is a chart showing our advertised Current Account Deficit – this deficit is only a FRACTION of our real debts, as we carry massive debts off balance sheet as well as massive obligations that are multiples of the advertised debt:



Below is our Current Account Deficit divided by the nation’s population – with the additional $1.2 Trillion we will be pushing $50,000 of advertised national debt for every man, woman, and child. Keep in mind that per working adult, this figure is more than double that:

Deficit Divided by Population:


Note in both those charts above the exponential math that creates the parabolic rise. Also note that Obama’s $1.2 Trillion continues the trajectory nearly straight up. Straight up is most definitely not sustainable – this WILL come to an end. The end will not be pretty, historic events will be occurring as it does.

And this debt is just the Federal Government debt! Then you must consider that the same population is also responsible to maintain all the debt in state governments, in local governments, in corporations, AND they must service their own personal debts! Impossible math just is.

And it is NOT possible to pay down the debt, because as you do you shrink the supply of money. And it is NOT possible to "inflate away debt" with money creation because our money is debt! Adding money adds debt, just look at the above charts! So, anyone who tells you that it's possible to inflate away our debt simply doesn't understand our money system (control you and profit from you system) or how we became debt saturated in the first place.

Oh yes, it is completely possible to escape this situation WITHOUT PAIN. But you first must acknowledge the underlying truths. Once you do, then we can set about making the purveyors of debt eat their own pain while freeing the rest of the planet from their shackles.

Equity prices rose right to resistance and now are fading. Coincident with that are headlines about Iran’s Vice President making threats to close the Straight of Hormuz. Other events are percolating, major league historic ones will be needed to mask the new money transition that is coming. If those who profit from the creation of money wish to hold onto that power, then they need to justify those other events which will culminate in new money systems that they also control, rinse and repeat, rinse and repeat, they control the world forever.

Meanwhile, a University of Michigan study found that the wealth of members of Congress has TRIPLED in the past 25 years - while the average U.S. family has suffered a DROP in their net worth. During that time, the Median net worth of members of Congress rose from $280,000 to $725,000, while over that same 25 years the wealth of the average U.S. family slipped to $20,500 from $20,600.

This dramatically shows that the closer one is to the production of debt money, the more they profit. In this case politicians profit from both insider information in corrupt markets, and also from direct contributions from the purveyors of debt - today called campaign contributions, i.e. laundered bribes.

If you wish to break the psychotic cycle of narcissistic control, then we must deny individuals the ability to make money from nothing. The people, collectively, must be in control of money production with its primary production not benefiting any individuals within society.

No major economic reports today, a bunch more lies to dispel tomorrow.

I, Nathan Martin, no longer consent to the lies.