What follows this introduction is one of the many articles I wrote on TBP in the aftermath of the Fuk-U-Shima Quake and Tsunami. Some of them are too dated to repost, but this one has particular significance because of a similar Quake and Tsunami building now in Eurotrashland, just on more of a financial level than a geological one. The Euro markets are crashing now in much the same way the Nikkei did after Fuk-U-Shima. The CB interventions already look similar to what occurred then.
The important aspect insofar as recent discussions going on inside the Diner are concerned relate to how Hyperinflationary events might transpire in the aftermath of such Quakes. In the first paragraph, just substitute “Euro” for Yen and “ECB” for BoJ and you should see the whole game is pretty interchangeable here as far as how the CBs are handling it. Will this lead to Hyperinflation, and in which currencies and when? Read on for some more thoughts on these subjects.
After a couple of days watching the Nikkei sink like a stone and the Yen rapidly appreciate in value against the Dollar, the Central Banksters of the world Pulled together here, and now have gone ALL IN. The Geeks from MIT, Harvard, Princeton, Columbia and Trinity College of Cambridge University have loaded up on Jolt Cola and they are working in overdrive now pulling All Nighters every night. The BoJ will print as much Yen as necessary to keep the Nikkei floating and the other CBs will print in tandem to swap out as much currency as necessary to keep the relative exchange values even. This should keep the Supercomputers doing Teraflops here until the circuits burn out.
What are the Intangibles, what is going on BEHIND the curtain here? Its not all that different than what has been going on with the NYSE, which is that although the nominal value of the stocks are being kept relatively even, the OWNERSHIP of those stocks has been steadily changing hands. The Insiders are selling out their shares, the CBs are buying them up through their Proxies of the trading desks of the TBTF Banks.
All this really worthless paper is going onto the Books of Banks which ALL will eventually go BK, the liabilities then transferred to the Nation States they are chartered under. Insiders are currently exchanging the stocks for currency they can still use to buy hard goods and secure themselves. They need the currency to remain working as long as possible to be as complete as possible buying up what remains of wealth in the world. Every means possible to forestall currency collapse is being taken here, because once it does occur, all bets are off and it becomes a Power Game which all the Big Players are positioning themselves to play here, but which none of them know the outcome of.
By maintaining the relative value BETWEEN international currencies, none of them will Hyperinflate until there is a local collapse of confidence in one of the currencies, most likely to be the Yen first now. Local Japanese are going to start spending what Yen they have as fast as possible as soon as there are any hard goods to buy with that Yen. Internal commerce in Japan is so slow now (for all intents and purposes it is at a complete halt) that this Hyperinflation will take a while to develop. Might not be for a few weeks or even monthswhen they get some control over the ongoing Nuke disaster and Humanitarian crisis of around half a million people displaced from their homes and in emergency shelters, and try to begin “rebuilding”. Could begin sooner though once the currency traders wake up and smell the coffee. (Note: over a year now still no HI of the Yen. It clearly takes a lot longer for such a loss of confidence and complete evacuation of a currency such as the Yen to occur. So for the Euro, same probably is true, and it probably will take longer than seems logical right now for a complete Euro Collapse to play itself out)
Right NOW, the Yen has appreciated in value because it is NEEDED in Japan, but once it becomes evident that it is hyperinflating, everybody will try to get rid of what Yen they hold outside of Japan. The currency is fundamentally worthless now, the industrial infrastructure on which its value was based is pretty much in ruins. Short term though, it is highly VALUABLE, because everybody in Japan needs Yen right now, it’s the currency THEY use to buy stuff.
Anyhow, if the BoJ continues printing at this rate, currency traders who hold Yen should see the Writing on the Wall unless they are stupefyingly dense. The Unknown Variable here is just how fast this will Dawn on the currency traders, and how fast they react by trying to dump their holdings of Yen. If they start dumping, the BoJ has to stop printing, elsewise you get a synergistic effect and the currency completely blows up. (So WHY don;t they dump the Yen as I wrote here? My current take on this is that Da Fed and BoJ prevent this from occuring through Swaps and currency manipulation. the Carry Trade here is enormous, and these folks cannot unwind these trades without gettinng HAMMERRED, so the CBs prevent runs on the currency juicing the market either way if it looks like a run is underway. I suspect the same will be true if a major run begins on the Euro. Not so sure Da Fed can move enough CASH through the Back Door in the even of a run on Spanish Banks though.)
If you think about it, this explains why the Dollar, despite constant printing by Helicopter Ben over the last few years has not Hyperinflated. Yes, there IS price increase in commodities and some services resulting from Hot Money flow into speculation in the commodities market and indexes which track that are perceived by many as “inflation”. However, for the most part the money printed here by HB is being HOARDED, not spent rapidly out into the market by end consumers. End consumers for the most part have no access to this money. Smart folks who are still in Surplus aren’t spending their dollars, they are paying down debt and some are Speculating with them buying PMs and driving the price of them up. Relatively small segment of the population in the category of current surplus to be doing either of these two things though. However, there is not YET a crisis in confidence over the Dollar which would lead to across the board Dollar Dumping by people who still have a large surplus of dollars. To achieve Hyperinflation, there must be a crisis in confidence in the currency, which has not happened yet with the Dollar. It will happen eventually as long as the current path is pursued, but the crisis of confidence will come in smaller currencies FIRST, the Yen being the most likely right now.
As it becomes ever more clear just how dire the situation is in Japan, there will be a crisis in confidence over the value of the Yen. Belief is a very strong thing, so is Denial. The belief still exists in many that Japan will shrug this off, rebuild and continue to produce Toyotas and Sony Plasma TVs to sell to worldwide Consumers. Reality will eventually undermine this belief, denial will become impossible as long as things there continue to be out of control, this will happen sooner rather than later.
Of course, the ongoing Nipponese Armageddon is only a part of the total Collapse Picture. Just about as big as this is what is happening over in the M.E., and with the sheer MAGNITUDE of the problems in Japan I haven’t spent much time in the last few Daily Rants keeping tabs on that Shitstorm. Fast as I can keyboard, its just not possible to keep up with all this shit. Besides, I have to keep the OP under 5000 words each day anyhow. LOL. Partially because I promised I would do this, but more for personal reasons which is that if I let myself go longer, it would take more time than the hour or so I will devote each night to writing while I make dinner before I hit the sack. I spend a LOT more time than this composing, but I do it during the day while I am at work in my head. It’s multitasking. So at night, all I have to do is keyboard it out which does not take that much time, not actually compose it which is more time consuming. That is how I write so much every day, in case you were interested, which you probably are not. LOL. The Quality varies from day to day obviously. A few Gems, plenty of Rocks. If you are Panning for Gold here in what I write, you have to sift through a lot of dirt to find some grains of Gold. I’m just ranting on what I think about with respect to the ongoing Collapse, that is all.
Since I last updated on the M.E., there has been quite a bit of action in Bahrain and Saudi Arabia, but the big Newz of the day is the UN resolution to implement a No-Fly Zone over Libya, AKA a License to NATO to Bomb el-Kabong back to the Stone Age. The “Arab League” quickly capitulated on the idea that Arabs could solve Arab problems here. The “Arab League” is of course not representative of the Arab PEOPLE, it’s the Stooges the Illuminati prop up as Goobermints in these countries, all part of the Oil Conduit.
Why are they doing this? It is NOT to bring Democracy to Libya obviously, its because there is so much fucking CHAOS there right now that probably ZERO Oil is floating on tankers out of Libya, even though the MSM claims that production is only down by 2/3rds or so. Italian Auto plants are dependent on Libyan Oil, and if they don’t keep producing Fiat Cars, Silvio Berlusconi will not have any Fiat Money to buy Underage Hookers with.
So the ANSWER they have come up with here is to as quickly as possible bomb the living shit out of all the military hardware THEY sold to el-Kabong, so that then HOPIUMFULLY they can send in a small force of Boots on the Ground to ally with Rebels and get those damn Oil Fields BACK online ASAP! They are likely to be as successful with this concept as they were with Bombing Baghdad back to the Stone Age to take control of Iraqui Oil Fields after Saddam got outta control.
This is of course a UN operation of “Peacekeeping”, not an FSofA Imperialist War, and dutifully all the NATO countries are contributing here, even the Hosers in the Great White North are sending over some Jets piloted by Bob & Doug Mackenzie to bomb the Living Shit out of the Libyans. What about the freaking ITALIANS? They get most of the Libyan Oil, who are THEY sending over there? OK, they are probably providing Airbases in Sicily to fly out of.
El-Kabong has been singularly uncooperative here, unlike the Hoser Mubarak in Egypt he did not dutifully Exit Stage Left with a few Billion in Gold Bars. No, El-Kabong is going to fight to the DEATH to keep control over his patch of depleted land. If he wasn’t such a complete SCUMBAG with bad taste in his wardrobe, his refusal to capitulate to the Illuminati could almost be viewed as heroic. LOL. However, like all the rest of the propped up Dictators, he IS a scumbag, and in the process of trying to hold onto “his” property, a whole heck of a lot of disenfranchised Libyans are going to get a near term ticket to the Great Beyond.
The Intangible Question in the case of El-Kabong is just exactly what Options he has here once NATO brings to bear their Air and Naval assets on that patch of land? How Well Prepped IS he? Does he have enough Anti-Aircraft weaponry to fill the skies full of Lead and shoot down some NATO hardware? Can he send Missiles aimed at Italy from Libyan shores? Can he send out teams of Special Ops forces to do some Assassinations? How LONG can he hold out under Carpet Bombing? (Question has been answered. Not too long. El-Kabong clearly did not Bunker himself up well enough here.)
El-Kabong is isolated and his days are numbered here, but he has made it VERY clear he is not going down without a fight. Also clear is he is not going to make a distinction between Civilians and Military, either among his own people or anybody else. ALSO clear is that he is not going to hand over the Oil Fields intact no matter what. His personal Pretorian Guard knows they are all Dead Men once his regime is overrun, so they are likely to be just as INSANE as he is. Even if its ONLY 10,000 troops he has as part of this force, if they have access to good military hardware and enough MREs to keep going for a few months, this will be a rough bunch to take out. They are ALL suicidal now, they all know they are dead men walking, so they have NOTHING LEFT TO LOSE. That makes them dangerous indeed.
I did have the intention tonight of addressing the question Flash asked, which is once all this SHTF stuff coalesces, where does that put us a year or so down the line after an across the board monetary system collapse? That is a very good question to ponder on, but too much to drop in this rant unfortunately even though on a word level this one is short at around 2000 words. I am about out of time here regardless, and I have a Salmon Fillet simmering in Garlic, Lemon Rinds, Dill, Cayenne Pepper and Kerri-Gold Irish Butter just about ready for consumption. I’m a little slow on the keyboard tonight because I have to keep a close watch on the fillet, overcooked it falls apart and doesn’t have the right texture, undercooked the flavors don’t blend properly. So that question will have to wait for tomorrow’s Daily Rant, unless of course I wake up tomorrow and still MORE SHTF I have to address. No shortage these days of Doomer Topics to write on. We have not reached Peak Doom here by any measure, it is the Gift that keeps on Giving to the Doomer. I am of course a major Doomer. (A year later now, we are still mired in what appears to be a “Long Emergency” of the Kuntsler variety rather than a Fast Crash. Indidcations are that the “Long Emergency” will remain the dominant paradigm for a while longer. However, the system remains so unstable that it could FLIP at any time. You have to pay attention to it all the time to not get caught with your pants down. If /when it flips to aFast Crash, you will not have much time to make the Last Bugout.)
Long Emergency or Fast Crash in terms of the Human Lifespan is concerned notwithstanding, either way I STILL See Dead People.