What I Have Been Doing

Well, I'm stuck, aren't I?

I'm out here, on my own, it's getting dark -, and...

Nah.

Is nothing like that. Too much. LOL

Was in the Perth Mint on Monday - the queue was pretty long and it took me almost five hours to get to one of the bullion dealing cubicles. There were people both buying and selling, now that the price is seeing new highs. I mean to be sure, there's sellers around at any time, but right now they all want to advertise that they are obviously 'taking profits' or that they had been smart or something, I dunno. Or their grandmothers left them a heap.

Artwork; obsolescent 
technology.

The real reason for the lengthy process these days is that last year, the government here went into a flap because of the appearance of money laundering going on or being let through the systems, and so the systems have been tightened up almost to an extreme.

One consequence has been that it is making buying gold look like waiting in the artificial lines outside of Louis Vuitton!

But the point is not whether to buy gold or to sell it right now, the point is what the heck is happening in the financial markets, and in economies generally.

I've been sitting in late night coffee places last few days (as you do) and jotting down notes about capital and flows-of-funds in the economy - and this scenario applies right around the whole world these days, because of the alignment of global politics and banking.

So I've posted a pic of one of the sheets from my note-pad, and here you will see that I have described what I have termed 'bank lending stock' - this means mortgage-able land and buildings (and nothing else anymore), with the wholesale rate of money being the ten-year government bond rate and then a line for bank costs and a theoretical margin. This gives you the effective nominal average borrowing rate for real estate mortgages.

Where I have a problem understanding what went on, is how they ever got to the valuations (which is the modeling sample that you see in the oblong-ish box denoting '$100 billion').

This is nowhere near the size of any actual national property market that I had in mind, it's just a notional figure for ease of looking at the model itself as a dynamic interaction.

My scribbling.

Whatever the actual figure, say, for the Australian national market is, for real estate, it all started in its current form after the Stock Market Crash of 1989 - and where anyone got the moneys to float that property market after that Equities Crash I have simply no idea: there was massive unemployment everywhere in the world, then there was the Gulf Crisis, there was also 9/11, there was the so-called 'Sub-Prime Mortgages Crisis' (a fraud, in my view, when you look back in hindsight and the 'infinity liquidity' proposition of central bankers since that time).

There is no transparency at all as to how any figure for the market valuations of viable real estate was arrived at by bank lending and policies of central banks after the Stock Market Crash of 1989.

In fact, to highlight that, the Basel Agreement (which is two things, the Accords on banking regulation, and the Conventions, on hard core asset backing of debt and national currencies for transboundary movements of funds) has no meaning anymore and had none after the Crash of '89 when none of its items were adhered to by anyone; so they simply altered the key elements and watered them down to nothing and to meaninglessness.

What really happened was that governments and banks appropriated land and buildings, and/or also 'created' them, and re-valued them at absurdly high prices and then sold them to themselves for ever-decreasing interest prices on the basis of no securities and no ability to pay, and then on-sold them at a margin to the idiots who are called the citizens and also to foreign investors, who are just as much idiots possibly even more so.

The elimination of the hard-core asset ratio for lending and debt allowed for the accounting opacity to what has become the media-led and thus overtly political pressure to lower interest rates - against a backdrop of incredibly high risks and zero effective real liquidity, let's put it this way, in hard money terms - which is always expressed by the price of gold.

If I could really scribble, 
I'd pen designs like this!

You cannot actually lower interest rates unless the through-put on capital (so, over at least ten years worth of trade banking) has been providing an excess over the wholesale rate of money after bank costs and profits repatriated to shareholders - none of which has happened.

The real money comes from the tax receipts that governments have attained over the ten-year term of the domestic circulation of money (aka 'the economy/commercial sector profits'), otherwise you are denuding the currency and it must fall - Saudi Arabia, for instance, will charge you more for energy if they think you are making lots of money and can afford to pay; they do that by either literally increasing your gas prices, or forcing your currency down, or both.

This is what is happening in many countries around the world recently, and Australia has been one of the finest instances of it, with the local currency dropping like a stone every time the central bank (the RBA) claims loudly that it 'has lowered interest rates' and everyone claps their hands and thinks they are better off and can 'pay their mortgages.'

If you look again at the sheet of paper, you will realize that by up-valuing the figure in the oblong box (say to double; which is easily what has happened over the last five years), in fact the quanta of money increases dramatically where you see the '2%' and the 'plus 3%+' (total 5%+).

That's what people don't see and they don't understand and they don't want to understand.

The amounts of money are dramatically escalating and where is it all coming from?

Well I'll tell you where 'it' is coming from...

And then we'd be able to have nice
things like this.

It is coming from your lifestyle, your quality of life, your health and well-being, the standard and quality of available products and services - in short everything is going to meet the mortgage debt of the citizenry.

And so because like rocket-ships, it looks impressive and it is real up to a point, it also means that it sucks all the attention and everyone, especially businesses, commercial enterprises, departments stores, leading brands, are stealing from their own past normal cost lines to feed an ever-more voracious mouth.

Advertising and marketing is shoddy or non-existent, service standards decline or even disappear -, and so on.

There is no room for anything other than the feeding of a fantasy, which is the magical increase in the 'in the oblong box number.'

It is no longer a case of an economic scenario - this is an event sociologique. 

People are wasting their time looking at economic modeling and economic scenarios from this point on.

The outcome to this will take place on the social front, not the economic or the banking one.

When you look at the amount of hate everywhere for these women that went up on that dangerous damn rocket of Jeff Bezos's, you are looking at the overflow of deep negativity which springs from the mass subconscious knowledge that there is something drastically amiss in the society and in the economy at large.

The biggest argument against celebrating what these celebrities did was that they are all rich entitled brats wasting money when everyone else is suffering...

Suffering?

Nice things for females.

How? People's properties are going through the roof. There is virtually full employment. People are working lots (giggle). Money is free. Why are they complaining? 

But it was a fraud. The rocket didn't really go into space. It was probably done with smoke and mirrors on a sound stage in LA.

Yeah. So what. Your mortgage is a fraud its apparent rise (in value) to the moon is done using smoke and mirrors and filmed on a sound stage in the back rooms at CNN and Fox...

Now none of this means property prices and values are going down any time soon.

What it means is there is a lot of anger in the hearts of the public.

The women of the world today, despite that they can go into space on tragically old-tech rockets, are not brave enough to send donkeys to the senate in place of their men (like the women did in Roman times)...

And that is what I mean by dumbed-down and stupid.

The end of this is going to be tragic. Although probably not for any of you because you have the inside run on things.

And like I say often enough around here - there are more animals in the forest than just bulls and bears.

...Never make the mistake of thinking that what you saw the other day was so fantastic and somehow genuine because it was using real rocket-ships and real material motion and travel from this planet up to high high up there. It was genuine in the same sense that some ancient Chinese emperor one time strapped himself to a large kite in order to fly 'to the clouds' and again another time had bamboo firecracker rockets tied to his chair in order to get that to take off when lit.

LOL

Marshmallow flower tea
is different to marshmallow root
tea - but they will both
give you a nice sensation.

I mean yeah it was real.

And it was genuinely courageous of those people to do it all.

To fly in the air you need aeronautics. Not Chinese skyrockets and firecrackers under upturned garbage bins from LA alleyways. This is antiquated, it is obsolescent technology.

To travel into space you need seriously advanced astrophysics and key new understandings about electron matrix fields and light and how gravity even works, which the human race is nowhere even close to near working out on its own.

 - Regardless of what Steven Greer and Bob Lazar say the government has behind closed doors. It doesn't have any such thing.