While I supported Trump over all the alternatives, the
impossible math is the only way to glimpse economic reality. No source that I’ve seen understands where
the math is headed. And with the first
cut of Trump’s budget priorities comes a focus on the way in which the
impossible math is distributed, with no discussion of how impossible the math
is or why.
In a nutshell the debt is growing and accumulating at twice
the rate predicted by both mainstream and non-mainstream sources alike, this article
will show you how to glimpse the reality of the math.
While the national debt almost doubled under eight years of
Obama administration going from $10.02 trillion to $19.95 trillion (it was far
worse than this in reality, we’ll cover that later). This 99% growth in just eight years means
that the national debt effectively doubled in just eight years. That’s terrible, but most people are
projecting the same $1.25 trillion growth per year for the next eight years, or
a total growth that will equal another $10 trillion. That is NOT math reality.
The reality is that regardless of who is
president, the math must double again in the next eight years in order to
achieve the same rate of growth! $20
trillion, not just another paltry $10!
In other words, at the end of eight more years, the end of 2024, the
national debt will likely stand at $40 trillion, not the projected $30
trillion. If that RATE of growth is not maintained, then what do you suppose
will happen to the economy, knowing that all our money is DEBT?
But why is it that nobody can do a projection that matches
reality?
Reality does not exist in ANY mainstream media. The mainstream media is 90% fake, every bit
of that is designed to fill our heads with a story-line that manipulates and enslaves
us, robbing us of our productivity and holding back the advancement of humanity. The 10% that is real is obscured by the majority
90% spin. If you incorporate their narrative,
you will consume unfit foods, unfit water and drinks, drugs, medicines, and
vaccines that will make it impossible for you to think clearly enough to
distinguish what is real and what is not.
You will likely work in jobs that perpetuate and are dependent upon enforcing
the mainstream narrative (most people do not realize the part they play).
The internet is the ONLY place that reality exists. But you must be able to think and filter
knowledge clearly in order to see it.
Most people have not been taught to THINK. To filter correctly you must intensely focus
on each subject looking for inconsistencies.
Thinking is a process of removing inconsistencies until you have a clear,
consistent, and simple picture in which all the pieces fit together without
conflict. You will not even find reality
in a modern library; it, too, is filled with nonsensical thinking that has been
poisoned by corrupted mainstream science and ideology.
Here’s an important truth that you must understand before
discussing the impossible math that underlies our economy:
EQUITY: An increase or a
decrease in equity (stocks) primarily affects the person who owns it. Thus, if the stock market falls the
individuals who own it are negatively impacted, but the wealth effect is very
narrow. Equity is a one person
transaction. The person who holds equity
cannot default, they can only lose their investment thus the ripple effect of
lost equity is small. If you were to
lose all your equity holdings, no one will come after you for payment, you will
be angry with those managing the companies you owned, but there is no recourse.
DEBT: Debt, on the other
hand, is a two person transaction. When
a debt is created there is always a person who is on the other side of the
transaction. If the person who owes the
money, the debtor, defaults, then the person who loaned the money will come
after your assets to recoup losses. THIS
IS WHY DEBT MATTERS, and equity doesn’t.
Wars are fought over debt, not equity.
The entanglement of debt across nations means when debts cannot be
repaid, or even if faith is lost that debts can be repaid with money of value,
then emotional anger ensues. We are
riddled with more debt, by far, than at any other point in history. It matters.
Those who ignore it are ignorant of history, and believe that the math
is fantasy. The math of debt is NOT FANTASY,
it is real and is woven into the people on both sides of the debt transaction.
DERIVATIVES: Derivatives
that are based upon debt (sliced and diced), leverage the debt (leverage upon
leverage) and obscure reality. But the
underlying debts still exist, even if created under an improper rule-of-law as
most modern debts are. Derivatives not
based on debt are fantasy, they are not reality, but like debt their impacts
are entangled beyond just one person or entity.
In that regard derivatives also matter, they represent systemic risk.
To get a glimpse of how mainstream “authority figures” deny
the reality of debt, please view the following example, although from 2008 is
still valid as mainstream Keynesian psychopathic gibberish:
The deluded thinking is, that no matter what, more debt can
be produced, thus default will never occur.
And that government debt is somehow magically different because it’s
backed with nuclear warheads, oh, and the ability to tax the living heck out of
you and me. Not mentioned is how insane
and absolutely ridiculous it is that our unsovereign government borrows money
from PRIVATE individuals and uses our tax money (productive effort) to pay
those privileged private individuals interest.
One of the reasons people are not correctly projecting the RATE
of growth into the future is that most people’s minds do not understand, and
have not been trained, to comprehend the exponential function. To which I am reposting the following video from Dr. Bartlett, I highly suggest that you review the first 15 minutes
so that you can visualize the exponential math that I’m referring to:
Dr. Bartlett’s rule of 70 is the same as the more common “rule
of 72” except that he rounded the number to make the math easier.
So, to see the doubling time of our current account deficit
we need only look at the past eight years, because the deficit almost exactly
doubled in the past eight years. If you
divide 70 by 8, then you will find that the past eight year doubling equates to an annual growth rate of 8.75%
per year!
And that’s exactly the rate at which our federal debt is
growing. Our “money” is debt, and thus
this portion of “money” is inflating at the rate of 8.75% per year. Here’s how you can see into the future…
If that rate is maintained, then in the next 8 years our
debt will DOUBLE again. From $20
trillion, to $40 trillion. Again, the
mainstream assumption is that our debt only continues to grow at the current
per year dollar amount of $1.25 trillion per year, but that is NOT the case.
Should the 8.75% growth rate of debt not continue, then
growth will slow and the real economy will turn more negative than it is
already. So another doubling does not
have to happen, but there are consequences if it does not under the current
criminal central debt as money system.
If, however, the growth rate continues to escalate as it has
been, then a crackup boom is likely. A
crackup boom results in things close to the production of money rising in
value, while those further away stagnate.
So things like stocks, gold, silver, Bitcoin all get speculated higher,
while food and necessities get more expensive relative to stagnant incomes.
A real economy that is not saturated with debt actually does
grow when debt is added to it. That was
the industrial revolution in the United States.
Since 2008 we have been in a state of macroeconomic debt
saturation where the return on more debt is negative:
 |
| Chart of the Century - Diminishing Productivity of Debt |
You may recognize that Diminishing Returns chart from my
articles on the “Chart of the Century”
back in 2010. Below is an updated
version of that chart directly from the Fed now that they publish charts that
can reproduce using their statistics (total debt figures ended in 2015 in this
series):
 |
| Diminishing Productivity of Debt through 2015 |
Note that in the Diminishing Returns chart above that the
rise seen in 2010 is due to the FED taking on $4.5 trillion onto their balance
sheet! That debt would have otherwise
been added to our national debt, thus the stated $20 trillion is actually $24.5
trillion today! Cough, cough. Of course it’s much worse than that, but let’s
ignore unfunded liabilities and all the other giant sums hidden under ginormous
carpets.
Here is a chart of the FED’s Balance Sheet:
 |
| FED's Balance Sheet |
Of the above $4.5 trillion, below is the portion that is
just mortgage backed securities on the FED’s Balance Sheet:
 |
| Mortgage Backed Securities on the FED's Balance Sheet |
Of course the FED did this to prevent collapse. What QE did was to temporarily unsaturate the
debt, thus the spike in the 2010 Diminishing Returns Chart. By simply moving that debt from a current
payable to an even more distant payable (an "asset" on the FED's balance sheet), it created more room for debt to be
pushed into the economy, mathematically.
QE was the most effective tool to date for modulating the saturation
point of debt within the economy. BUT,
we are now back into full on saturation where adding debt creates negative
growth, not positive growth.
And so, the game of private central bankers modulating the
economy with tricks continues for now.
They steal our productivity while the impossible math continues to
become even more impossible. If the FED
begins to reduce their balance sheet, look out below. If they feel the need to increase their
balance sheet, look out above.
When does the music end?
It ends when the people are no longer willing to tolerate giving so much
of their productive effort to a criminal enterprise. In the meantime, look for the next economic
blackmail to come soon, very soon.
