Will a Tremor to Remember Greet Queen Confetti? ~ The Risk Averse Alert

Tuesday, November 26, 2013

Will a Tremor to Remember Greet Queen Confetti?

There is no chance hopelessly insolvent albatrosses of the trans-Atlantic euphemistically called "banks" will sustain their present state of feigned viability if the means of subduing a growing social impulse demanding effective, activist leadership from the U.S. government addressing profound economic want will remain intact. Indeed, slated for near-term extinction is any talk of economic recovery, such as today accompanies the game of make believe pretending the Fed has not been made entirely insolvent, itself, extending the Ponzi scheme its reckless, banking system oversight under Greenspan actively fostered. We are in all probability heading for a permanent state of crisis and the banking system will be at its center. With systemic threats constantly lurking, any talk of economic recovery will become even more ridiculous—fantastic—than is true right now. Subdued as a result will be otherwise sound political attacks on finance capital, recognizing its significant part in bringing economic ruin over these past forty years.

Utter calamity practically must visit the trans-Atlantic banking system, such that hyperinflationary liquidity provided through central bank quantitative easing, today masking the destructive illegitimacy of post-Bretton Woods wildcat finance, can kick into high gear over the coming period and reek Wiemar-like havoc across the full spectrum of society, crushing rich and poor alike, while at the same time furthering a Venetian-modeled oligarchy's time-tested strategy of divide and conquer. Destitute and desperate, the U.S. ruling class in all probability will be far less disposed to resort to American System solutions assuredly offering to reverse widespread and unprecedented want. Rather more pragmatic solutions likely will be sought, as finance capital under duress is likely to use Section 4 of the U.S. Constitution's 14th Amendment as means to extort submission to the capricious, anti-social agenda its oligarchic controllers have been promoting for as long as there has been a United States.

Notwithstanding hyperinflation's undiscriminating capacity to spread ruin, an historic gap dividing haves and have nots can only widen as the vast majority of wealth is destroyed by an out-of-control monetary policy acting to accelerate the physical economy's dismantling. With finance capital increasingly being thrown into disarray by reckless regulatory policy—a non-linear process to be sure, but one maintaining a certain degree of continuity in the post-Bretton Woods era—a dynamic fostering supply disruptions and material shortages will accelerate as business insolvency spreads on account of financial obligations becoming increasingly impossible to meet. So as we are seeing already, the U.S. federal government's failure to programatically address the root causes of the country's economic decline—disinvestment in the physical economy and in the nation's capital stock more broadly, this on account of loosing finance capital's regulation from the necessity of fostering investments of this sort, which, alone, provide a sturdy foundation securing economic stability—is giving rise in sheer desperation to meager local attempts to organize "solutions." These in fact make manifest a divide and conquer strategy advancing the cause of slavery so attractive to a capricious, illegitimate, anti-social oligarchy. This troublesome, counter-productive tendency seeking "local solutions" no doubt will accelerate as hyperinflationary breakdown proceeds to its chaotic crisis phase with the ascension of Queen Confetti to the Fed throne.

We might recall that, within six months of King Ponzi Greenspan taking the reigns at the Fed, the crash of October 1987 came to pass, laying the groundwork for a derivatives-based experiment in zero due diligence the likes of which King Ponzi sold as "risk mitigation." We should rather expect something of a similar experience awaits Queen Confetti. Whether she is afforded six months to redecorate her throne, however, is open for debate. She may begin her reign with the banking system in full blown crisis. We might even imagine the minute Tea Party obeisance to oligarchy's Weimar intention is proven with Yellen's nod coming from the full U.S. Senate, the plug will be pulled on the trans-Atlantic banking system, delivering a precursor of an historic earthquake set to radically alter today's financial landscape not long after Queen Confetti assumes the Fed throne.

Thus raised here is suspicion 2013 could go out with a tremor to remember.

Although capital being force-fed into the banking system through the Fed's QE is proving a useful means of facilitating exploitation of a broken price discovery mechanism, it is doing nothing to increase demand. Inasmuch as tepid demand remains a big problem afflicting the global physical economy, it is likewise a big problem for the financial economy, too. Troublesome lack of demand in the stock market is seen by way of still diminishing volume of shares exchanged as share prices are goosed higher via a broken price discovery mechanism. Granted, this is one of those things that is not a problem ... until it is. An insolvent banking system today holding tight every piece of trash staining its balance sheet obviously affords the luxury of playing make believe real demand is lifting share prices. However, the minute trouble arises on account of dynamics proceeding from some highly correlated trade—the real issue precipitating 2008's crisis—and the need to quickly raise capital becomes an overwhelming reality, what are otherwise demand-starved assets subsequently brought to market in order to meet urgent capital requirements surely will see prices these assets fetch falling right through the floor, just as occurred in '08 in fact.

That's where we're at and as we approach year end, some quarter within the financial community moving to lock in 2013's gains whose effect initially brings share prices to fall more or less of their own weight could precipitate on account of a longstanding, fundamental lack of demand an avalanche of selling prior to the new year. Who knows? Maybe this time around equities markets will prove the banking system detonator that, derivatives anchored by subprime mortgages in '08 were. Thereafter, resulting capital imbalances could cause selling to cascade from the bottom of the capital structure straight up to the top. Thus would conditions conducive to blowing out the physical and financial economy be established, ushering to the fore the chaos fostering Wiemar plan of an anti-social oligarchy bent on imposing slavery to its bankrupt, idolatrous ideology the world over.

Today's fundamental circumstance no doubt is ripe for manufacturing a permanent state of crisis. The fact is, though, the extraordinarily vulnerable condition we find ourselves in arguably has been intentionally created, thus reasonably suggesting, too, its promoters venture destruction of the United States itself. Honestly, seeing the greater preponderance of intellectually inclined observers taking a position naively assuming the Federal Reserve's policies have been nobly intended over the interim beginning in the Age of King Ponzi and extending to today's Dawn of Queen Confetti rather reveals just how unfit for survival as a nation the constitutional republic of the United States has become. Granted, such naive viewpoints toward the Fed's entirely destructive role as a regulator allowing the banking system to become perfectly captured by a Ponzi scheme are not quite as ill-founded as, say, unpenetrating analysis coming from some circles claiming an ex-Marine with poor marksmanship using a bolt action, semi-automatic rifle could assassinate a U.S. president delivering shots even performing extraordinary feats of magic. Yet much as November 22, 1963 became a date that will live in infamy largely on account of political cowardice preventing the President's real murderers from being prosecuted, thus paving the way for some new infamy to be imposed by the same murderers on September 11, 2001, so too likely will be similar consequence of affording the likes of Greenspan, Bernanke and Yellen the luxury of assuming their policies somehow are nobly intended. These people are nation wreckers—poisoners of capitalism and killers of economic freedom—whose subversion of the means promoting economic stability, let alone encouraging the natural, human creative spirit forwarding economic growth through technological progress, leaves us perfectly vulnerable to suffering a far more impactful attack on the essence of political cause that brought forth a Declaration of Independence and a Revolutionary War.

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