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Collapse Coming – likely in 2013! Why?

July 15, 2013

We now are living with numerous Bubbles in our markets. The Dow Index, the Russell 2000 Index, and the S & P Index (to name only three) all suggest that we are living in a Bubble economy. All these indexes have reached bubble levels IMO. We also now recognize that Keynesian DEMAND (the prime factor for growth) is slowing rapidly (China, Europe, Latin America, The Middle East, and North America are all slowing). The other huge factor is that all the Central Bank QE operations are NOT creating any real growth in jobs, manufacturing, or consumer purchasing power. All these QE operations pump up the Stock Markets (artificially) but these Index Markets are now mostly increasing via emotion and false perceptions. The one factor that most pundits seem to avoid and not fully understand is our IMAGINARY money! Our Digital (imaginary) money units require constant increasing Asset Values to survive!

Our President seems to understand that the American people live with ‘imaginary’ money (created ‘out of nothing’) and digitized to deceive the unwary. Politicians live on our imaginations and deceptions!

Could our imaginary money lead to a Centralized Digital Monetary Authority for our Planet? Could a NWO emerge with a single currency for our Planet? What do you think? Have you discerned that ‘money’ is derived from Consciousness? What is Consciousness? Think Dualism!

This image reveals how our money units have been digitized. Look at your computer screen for evidence! Some 96% of all monetary transactions are now a result of computer digits!

Our Central Banks are providing a huge increase in monetary liquidity for the markets, however, this liquidity is not creating any meaningful DEMAND (new and growing borrowing). This means that monetary velocity is stagnant and declining in many markets. The entire philosophy under the Keynesian Model is based on DEMAND management. As demand grows, loans increase, prices increase, asset values increase, and consumers increase their spending. Today, however, we witness a lack of any serious demand in many (most) markets. This means that the Keynesian Demand Model is failing and will soon enter a COLLAPSE mode. What happens when the core markets enter a collapse mode?

Keynesianism depends on continual DEMAND, credit, borrowing, increasing Asset Values! This Model is now obsolete and limited…as new alternatives emerge! Watch for a Global Centralized Authority!

The Keynesian Demand Model started after the Bretton Woods Agreement (1944-46) and became ubiquitous after Nixon’s closing of the Gold Window (8/15/1971). Centralization of money was essential for this model to work! This model is a ‘one way street’! Game over if asset values seriously decline!

The Keynesian Model is based on Math, Algorithms, Imaginary Numbers, and Consumer Deception (also called consumer/investor manipulation via a Centralized Banking Authority)!

What happens is that VALUES decline (all ‘values’ are imaginary and based on consumer perceptions), insolvencies increase (banks do not have sufficient Capital to offset a serious Value Destruction), loan demand decreases (we witness this today), bankruptcies increase (this is coming), consumer spending declines (emerging now), and derivative contracts start to default (coming). Our derivative markets can not be sustained if collateral values enter a serious decline mode. A small % of defaults in this $700 trillion market sets in motion a deflationary depression for the TBTF institutions. This collapsing process (once started) is unlikely to create any meaningful confidence in the overall markets. This means that once a collapse gets started in a meaningful manner, the ability of our Central Banks to reverse this trend is impossible. Our money units today are ‘imaginary’ units which cease to exist when a serious market collapse emerges. These units (now units of Consciousness) vanish into ‘money heaven’.

Real estate values (always imaginary in nature) can decline if DEMAND wanes. This event could be called Deflation and/or Value Destruction. What happens when this happens? The underlying DEBT is exposed as unpayable! This creates Lender insolvencies!

The Keynesian Model is a DEMAND model which requires continuing growth via new credit availability, lending and borrowing, and spending by consumers and investors. This means more debt in the overall system. The Keynesian Model is a Debt Model which can not survive during any type of serious market collapse. I call this Model a ‘One Way Street’. New debt and borrowing is required to sustain this Model. Once demand wanes and/or stops growing, the Model collapses and becomes worthless. The entire Keynesian philosophy is based on INCREASING ASSET VALUES (ad infinitum) via more DEBT. This trend is now mostly over! Get ready for a serious period of VALUE DESTRUCTION!

Actually, America’s DEBT is now near $17 trillion and growing. The Keynesian Model has created this DEBT (mostly since the closing of the Gold Window in 1971). Central Banks have loved the ‘imaginary’ money which emerged after the closing of the gold window. Gold coins and Silver coins are NOT imaginary (math numbers, however, are ‘imaginary’)! Do you discern the difference?

Richard Milhous Nixon closed the Gold Window and allowed our ‘dollar’ to evolve into an ‘imaginary’ number ($1.00). This decision was called the Nixon Shock. We now live with the consequences from this decision from 1971. Today, our ‘dollar’ is created from Consciousness (a no thing event)!

America’s history has been a ‘dollar’ which was tied to gold and/or silver. Today, our ‘dollar’ is tied to NOTHING (Bernanke’s Consciousness is fundamental to the existence of our ‘dollar’…going forward)!

The wise investor will digest all the above ideas and then consider their personal situation prior to making any changes in their investment decisions. What is right for me may not be right for you! The next few months could be crucial to the future of the Keynesian Monetary Model and its relevance. Watch the markets for serious CHANGE the remainder of 2013. I am:

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