DEFLATION THE SEEDS OF ALL DEPRESSIONS:
Deflation is the downward price spiral of wages and asset classes across all levels. Stagflation is when asset classes and wages are stuck for decades influenced by deflationary spirals from deleveraging the massive credit bubbles that created rises in asset classes over decades. Now imploding into market levels versus speculation levels.
If the markets of today were moderated such that the speculative leverage that is presently at record high levels, were removed as a market influence, the crash in asset class values would be substantial. Speculations to accumulate commodity stockpiles in many nations, to corner markets, to influence supply demand such as in fuels, and influence prices artificially, work out of the system through deflationary spirals. The long-term forces of deflationary economics are impossible for nations markets and policies to offset.
For example, the Japanese Crises of the 1980’s became a deflationary spiral for three lost decades of Japanese sinking growth in real terms. The result has been massive loss of economic powers and employment. There remains no end in sight. Even today Japan has failed with all its trillions in policy investments to reset an inflationary upward counterbalance to the continued deflation.
Oil – the cost of everything – now is the manipulation of monopolies like OPEC. The investment of OPEC nations like Saudi by the 100’s of billions to influence price to upward mobility at targets of 60 or higher per barrel this year have lost OPEC market share of a trillion dollars while dropping the price into the $ 40.00’s. DEFLATION. As Oil bed rocks the cost of food, packaging, medicine, transportation, energy, everything. The deflation of oil from 120 dollars to 49.00 dollars – is not represented by pump prices. Oil has fallen 70% but the pump price is down only 45%. Such counter weights wear out as deflation lingers.
The US has put 11 trillion dollars into its inflationary game plan over ten precious years. We have now lost a decade of real growth and the deflation characteristics of the market are still with us. As free money credit and it’s huge ALL ASSET CLASS BUBBLE comes to a close, the bubbles will burst. This will return market wide deflationary accommodations into the market.
Said another way, asset classes from Real Estate to Equities will adjust price from bubble high’s to market reality in deflationary valuations. If asset classes are spiral downward in value, credit extended assuming asset classes will rise in value, are in many geopolitical postions, disintermediated into super high risk. Bonds and credit bubble defaults must wring their way out of the system to rebalance accounts. This painful process is a feature of longer term deflationary cycles.
Economic recessions tip into depressions globally, based upon the time length of the free money credit speculation price manipulation bubbles across access classes, the ratio of the bubble manipulation and its duration, and the move out of liquidity to support the bubble dynamic in forward ongoing market terms. As margin loans dry up and are called in a downward price cycle of deflation, bubbles burst and real price points begin to unfold in a soaring downward deflation spiral.
Nations have virtually zero financial tools to plan for to offset and to recover or manage downward inflationary spirals as history has shown us in Japan and the GREAT DEPRESSION. World war is economically how nations rebalance accounts and reform inflationary spirals. Very undesired modeling.
Can we while we have time, invent tools and tactics in a new digital fiscal world to combat a massive asset bubble crash, and better manager the next deflationary spiral at a recession versus depression level globally? As an investment banker economist I think YES WE CAN and YES WE MUST but the think tank to do this task work, is not in place and no agency or committee is even working on the core problem.
The world elite class ( Super Money ) knows all this. They profit massively from the BUBBLE until the BUBBLE Crashes utterly. Then they use their wealth to profit massively from the asset deflation. Most inappropriately they alone profit massively from war. A growing community of SUPER WEALTH is seeing the process to rebalance core accounts globally as via a world war. They are planning for a “controlled global depression and a controlled world war”. This idea of a controlled “world war” in today’s dynamic world of super weapons and bioweapons the like of which the world has never used before are so beyond any control that the very idea of a “controlled world war” is itself a feature of some insanity. You can’t make deals and split up the world in some structural economic rebalancing thinking population itself is the enemy of core economics.
On population, the issue is education and only education. We squander brains by loading impossibly bad software on young minds. If we loaded superior software on super learners of today the outcome would be solutions, not problems. For example, GEODESIC DOMES can be constructed under the late engineer Bucky Fuller’s suggested model, to populate cities of millions in the oceans. All self-sustaining and environmentally contributing to the earth. Each city dumb is a park during fair weather and is underwater during storms having no storm damage, no earthquake damage, no environmental damage, no tsunami damage and mankind survives a meteor strike with 100 billion of a population while we move the earth and its life forms to the stars terraforming planets with our new knowledge. Humanity has unlimited capacity and resources if we THINK it all through.
What is broken is the historic financial core system model. Consider this:
- Competitive capitalism – is opaque – nontransparent – filled with secrets for elite super money advantages – consolidates wealth until 1% own more than 99% – and is a failed economic system inherited from feudalism. Too many are not educated are poor and sick and starving when all the resources to fix all that are right at hand. It’s a crime and a sin to fail to improve a failed system model.
- Communism and socialism are worse. The % of poor starving and sick are always larger and the freedom of individuals is always lower. This system model consolidates wealth where 1% own more than 99% and itself is a failed system model worse in many respects for the masses than competitive capitalism.
- COOPERATIVE CAPITALISM within a G 100 Economic Global Constitution of box top rules, is transparent, fully reporting, has no secrets, is self-correcting, precludes unwanted wealth consolidation, maximizes wealth circulations, precludes speculation oary bubbles, and removes speculation from markets and unfair trade practices from markets.
Competitive capitalism exists to advance mindless profits at any cost to institutional power and wealth and market consolidations.
Communism exists to consolidate power to the central state at all costs and to spiral wealth consolidation into state agency and elites at all costs to perpetuate the system.
COOPERATIVE CAPITALISM exists for maximum contribution to a community being served by all entities nations and private public sectors while making surplus or profits in the contribution super focus to the served community with maximize focus. Huge difference.
As Steve Jobs coined – the phrase – WE HAVE TO THINK DIFFERENT if we wish to have superior outcomes.
My book REDEMPTION THE COOPERATION REVOLUTION is the book of a voluntary movement into COOPERATIVE CAPITALISM for nations. The lawmakers are informed of the box top rules and methods for 12 laws to create the new COOPERATIVE CAPITALISM for nations. The book is now circulating in the world. Those interested in joining the revolution for humanity – we feel as it is core to the economic foundation – the final revolution for us all – to rise and grow into our full potential – just circulate the book to your community. FORM REDEPEMPTION CHAPTERS to vote for COOPERATIVE CAPITALISTIC candidates into office and in a single generation our revolution can and will change the world. For the good and for the better. IDEAS are unstoppable when they are the truth.
Competitive capitalism is a royal class of super-wealthy elites, that take each other’s castles over ( violently ) or by negotiation and threats – just as nobles did in feudalism with knights and weapons – only today the knights and weapons are hostile takeovers with law firms being the knights. I want the bigger castle. This is not being done for maximum contribution to communities served. This is being done for maximum mindless profit consolidation where the fantastically wealthy are addicted to even more consolidations of wealth under their power and control. This system is a flawed system is not good or healthy for people’s nations or the world. It always leads to world war which is fully preventable.
If we cooperate we all prosper together.
If we compete we all perish to together.
Only the elites and Super Wealth ( and not all of them ) will win the wars they are now preparing for.
I know you understand all this. But it is refreshing to have the core truth presented in clear compelling language is it not? Have you seen it all so clearly set forth anywhere else? If not share it for me. With your mail list. Send my URL out and ask folks to subscribe and join the revolution for the truth of it all.
In the end, what you read in the news is spin. All of it.
The truth is financial.
Who is paying for the Wallstreet Journal to be produced or the Washington Post? It is those dollars that are in charge. FOX is not IN CHARGE. If 60 advertisers pull out of the BILL REILY show because the most popular on-air host commanding 450 million dollars of yearly add revenue – has all that cash pull out in ten days – the advertisers paying for BILL RILEY command the agenda and BILL IS FIRED on the spot. BAM. It’s the money folks. The real news is what is the economics behind what your reading. Then you really know. Then you have the truth, not the spin.
So you have to pause and say – what is the financial aspects of this. BECAUSE that is what the lobby work is about that is what the special interest are doing. Following and tracking this is enormous work with teams reporting daily to supply content just for my blog. Which is why it is read by press media financial managers and a growing national leadership group of lawmakers worldwide.
When the really big stuff happens they click HERE to see – what is really going on out there. And we always tell the truth. The whole truth and our readers know and trust this truth. Never political always economic.
Our readers want a better world and collectively want to lead it. They are part of SUPER CHANGE. Part of human revolution made possible by education. By knowing and understanding the CORE SYSTEM TRUTH you never learn in school.
This helps you as a business owner entrepreneur to manage forward safer better business bets. It helps you protect your nest eggs. It helps you in a family and in workspace.
Which is our goal in fostering COOPERATIVE CAPITALISM as the final global system reform for nations?
Competitive capitalism and communism are forms of insanity and are so inefficient it is a sin against all of us the system models are protected and continued without reform. Upgrading these failed system models is the most important work of nations.
Deflation is a spiral started in the system with the second largest economic nation JAPAN in the 1980’s and never solved by JAPAN who failed to completely reform its system as a proper response – now the entire global system of Competitive Capitalism and Communism is locked in a DEFLATION DEATH SPIRAL ECONOMICALLY. This model typically ends with either a bursting of the credit bubble – or a super inflation before the credit bubble burst. When the bubble’s burst the deflation is moved to a depressison worldwide to rebalance accounts. Without a core system reform world war is how accounts are rebalanced historically. All your history is wrong. The cause of all world wars if financial and economic never political. The politics created system abuse when politics led economics versus economics leading politics. COOPERATIVE CAPITALISM self-corrects and precludes politics leading economics once and for all – forever assuring circulation so prosperity is shared appropriately starting with massive ongoing superior software reaching human brains. Lifelong education.
So today we reside in a failed economic system model creating the largest SUPER BUBBLE in human history made possible by fantastic leverage and digital trading outside regulatory oversights.
The bubble will burst.
Until it does though you are inside the longest boom cycle on recorded historic record with the highest upsides setting records. If that makes you feel safe and secure play on. If your seeing what I”m seeing – follow the advice we have presented in our blogs and create your own safe harbor.
Knowledge is power and you have better knowledge today.
Deflation. 11 Trillion dollars later with ten years of full court press all the thinkers and planners for the FED and the central government in America have failed to put inflation and Humpty dumpty back together again. THE POLICY HAS FAILED UTTERLY and a SUPER BUBBLE is what we have today. No one wants to halt the stampede over the cliff as so many are making so much for a second in time. They are drunk with the SUPER BUBBLE as they always are – see 1929.
Berny Dohrmann – Keeping the TRUTH on BRIGHT just for YOU Today my readers