Trade of the Decade: The Power Elite's Grand Strategy

[shiny!]

Re: Trade of the Decade: The Power Elite's Grand Strategy

Ah - but we will have those tax-hikes!

And we will have continued weak employment and weak wages. International companies will hire few Americans, and hire them cheap. Then the government will tax what little we Americans earn anyway.

You see ... we will have to have those higher taxes, to pay down the immense U.S. debt. Austerity, coming soon to a town near you.

The era of extravagant American consumption (except for the wealthiest few percent) is over.

Even if they taxed us at 100% total confiscation of our income, it would not be enough to pay down the debt (or at least that's what I've read). So what's the point of raising taxes? It can't be to curb consumption, because with 20% real unemployment, consumption is already severely curbed and getting curbier.

[flintlock]

Re: Trade of the Decade: The Power Elite's Grand Strategy

Even if they taxed us at 100% total confiscation of our income, it would not be enough to pay down the debt (or at least that's what I've read). So what's the point of raising taxes? It can't be to curb consumption, because with 20% real unemployment, consumption is already severely curbed and getting curbier.

It buys them time.

[shiny!]

Re: Trade of the Decade: The Power Elite's Grand Strategy

As I noted somewhere on the thread of EJ's I linked above, the basic difference (in my view) between Smith's view and EJ's view is thus:

EJ is figuring (hoping at least) that the major power centers in the United States will ultimately operate on behalf of the (deeply indebted) United States and its people. Smith is figuring (fearing anyway) that the major power centers in the United States have and will continue to operate predominantly on behalf of its lenders.

If Smith turns out to be right and the worst case scenario is in fact the one we get, will it be possible for us to ever to create a functional economy along the lines of EJ's vision? And if so, how will we do it? What will be the process of reclaiming our world from TPTB (The Powers That Be)? There will surely be a process of destruction and re-creation, but I was never good at seeing many moves ahead in chess...

[ThePythonicCow]

Re: Trade of the Decade: The Power Elite's Grand Strategy

Even if they taxed us at 100% total confiscation of our income, it would not be enough to pay down the debt (or at least that's what I've read).

Combined with "austerity", meaning reduced government social services (esp Medicare), and with reduced "defense" spending, the net tax revenue collection potential of the U.S. federal government is quite large ... as we shall find out, I predict.

Look at the bright side. If the Money Center Banks and their wealthy controllers can capture a major portion of our U.S. tax revenue as their income (servicing Trillions of Dollars of high yield, long term U.S. Treasury debt) then this might starve out some of the lessor forms of varied and entrenched corruption embedded in our system.

consumption is already severely curbed and getting curbier.

Compared to where we (Americans) have been, it's severely curbed. Compared to where we could go, I see plenty of curbing opportunity remaining.

[ThePythonicCow]

Re: Trade of the Decade: The Power Elite's Grand Strategy

If Smith turns out to be right and the worst case scenario is in fact the one we get, will it be possible for us to ever to create a functional economy along the lines of EJ's vision?

If Smith's darker view is right, we don't realize EJ's vision.

Let's hope metalman gets to enjoy the next ten years explaining what idiots some iTuliper's were when they posted Smith's foolishness and doubted EJ's vision.

I might even hang a metalman poster on my bedroom ceiling if that comes to be.

[herbkarajan]

Re: Trade of the Decade: The Power Elite's Grand Strategy

If Smith's darker view is right, we don't realize EJ's vision.

Let's hope metalman gets to enjoy the next ten years explaining what idiots some iTuliper's were when they posted Smith's foolishness and doubted EJ's vision.

I might even hang a metalman poster on my bedroom ceiling if that comes to be.

Smith is definitely on the right track i.e he says 'follow the money' and asks who benefits? His article in the summer of '08 when oil was heading to 140 is very impressive. I've heard the term 'head fake' used by very astute money managers post fact, they were taken by that move expecting deflationary bust in 2007.

Smith's short explanation of inflation captures most of what's going on. I'm glad someone's debunking "Inflation is a monitory phenomenon" and calls it for what it is, currency depreciation.

I'm not sure about his "grand strategy" though. To start, the target and in many ways the real adversary of the ruling elite is exactly that top 5%-10 percent (10's of millions of people world wide) holding a large portion of financial and 'real' wealth. To get the 'traction' on any policy, that's the cohort that needs to be convinced or many times duped, this is the group that has the most vested in preserving 'status quo'. They can make things very difficult for central planners by shutting down 'businesses' and panic selling and thus need to be control and directed toward 'productive' enterprises=generating growth.

Smith correctly identifies the desire of the 'status quo' cohort for moderate deflation/inflation, moderate is the key word. The problem seems the dollar is having difficulty being the funding currency of the global expansion. Something about one country taking on $54 trillion in debt, roughly the size of the global gdp. The top 5-10% are becoming nervous and hording gold.

I think the idea is China is suppose to pick up the baton and continue to expand the global bubble, bringing in more and more poor people (potential consumers/debt slaves) into the 'developed' economy. The way to do it is to revalue yuan. The entrenched export industry interests are holding out, though. I think another round of 'austerity' in the U.S plus high commodity prices will convince them that it's a losing game. The point of currency break will be painful but relatively short, its dynamics are well understood and practiced in the real world. 1931 U.S, 1985 Japan

[ThePythonicCow]

Re: Trade of the Decade: The Power Elite's Grand Strategy

I'm not sure about his "grand strategy" though.

Good observations, herbkarajan. Thank-you.

The part of Smith's "grand strategy" that makes sense to me is the following. It seems evident to me that much effort is being put into moving U.S. debt of various kinds "into the center", into Treasuries. In addition to what's already there, we have QE2 and promises to backstop Fannie, Freddie and FDIC. I wouldn't be surprised to see some debt from bankrupt states end up as Treasury debt as well, not to mention perhaps some large pension funds that get hit with the problems with Mortgage Backed Securities.

Meanwhile we have the Money Center Banks accumulating massive piles of cash and short term T-Bills.

Surely those banks and their uber-wealthy directors would like to move that cash and those T-Bills into long term Treasuries paying high yield at some point. The debt service burden of ten Trillion Dollars of 10, 20 and 30 year bonds at say 20% interest would be severe. A large portion of the U.S. tax collections would have to be redirected toward that debt service. U.S. social services such as Medicare, and my Social Security check, damnit, would be cut back. But it would be a sweet income stream for the holders of those bonds. Moreover, that tax burden would soak up Dollars, tending to strengthen the Dollar, causing once again, as happened after Volcker did this in the early 1980's, long term capital appreciation in those long bonds. That would be a double sweet deal for those bond holders.

The big banks of the world, working with the various international and national agencies and intelligence services which they have captured, have forced this sort of transition into debt peonage on many countries this last half century. Surely they are salivating at the opportunity to put the U.S. into this position of indentured debt slavery.

At some point, I expect a big publicity effort, bemoaning the massive amount of U.S. debt and its short term funding, requiring frequent rollover. This will be an effort to motivate "austerity" (meaning more taxes for the debt service, less for social services), and lengthening the U.S. debt maturity back out again, toward longer bonds. Also inflation will rise and be blamed for our economic hard times, justifying another Volcker-like sharp rise in Treasury rates (cramming down the price of the long bond, for those with immense liquid reserves, desiring to purchase cheap.) By such propaganda, and no doubt a well placed crisis or two, they will attempt to slip this yolk of debt service onto the broad shoulders of Uncle Sam.

... I'm repeating myself in the above, having written much the same on a couple of other posts this last week. But for now at least, the above seems quite compelling to me.

The above does not seem incompatible to me with the changing balance toward China you spoke of. China as the worlds number one energy consumer and low cost volume manufacturer could work closely with Russia as the worlds number one energy producer, with the two of them holding substantial additional mineral resources.

[ThePythonicCow]

Re: Trade of the Decade: The Power Elite's Grand Strategy

One more note on the ever favorite topic of inflation:

We all pretty much agree that there will be more inflation, at least in the things we need to buy (food, gas, ...), coming soon (or already here) and lasting for at least a while.

Most of us on iTulip, including myself, are not expecting hyperinflation and the death of the Dollar. Rather we expect that the higher inflation will be temporary, backing off after a time, rather than exploding into hyperinflation.

We don't all agree just how much the accumulative affect of that temporary higher inflation will be; we can just estimate within a range, opinions varying.

But we do agree on one more thing:

The real value, especially in imported food, goods and petro, of the average future income of Americans will be significantly lower.

Our average income might hold, but prices double. Our average income might double, but prices quadruple. Our average income might fall a little further (unemployment, reduced social payments from the government, softer wages), but prices nearly double.

One way or another, the Dollars that the average American requires to purchase the goods, services and energy needed to maintain anything resembling their current life style will purchase less, quite a bit less.

The Dollar could, after its bout of inflation, actually go back to being one of the stronger currencies. But if it does so, that will mean, sure the Dollar buys alot, but no one (no ordinary one) has enough Dollars to spend.

One obvious way to accomplish this lowering of the average American's real income, besides a continuing long term depressed job market and reduced government social services, is to also increase federal government taxes (required so "they" will say to pay all the interest on government debt.)

Indeed, some monetary theorists claim that the primary raison d'être for government taxes when in a fiat currency system is to soak up extra currency, so as to maintain its strength at the chosen level.

Corollary: Smith's argument that, after a burst of inflation to enable the super-wealthy to buy high yield long term U.S. Treasury bonds cheap, then the Dollar (the currency of debt service on those bonds) will stabilize again is not inconsistent with the argument that most of us Americans will be poorer.

Sure, the Dollar might stabilize and continue to purchase some decent amount of imported goods and petro, but if it does, we Americans won't have nearly as many such Dollars to spend.

[c1ue]

Re: Trade of the Decade: The Power Elite's Grand Strategy

Nowhere did I see any mention of "NWO/Shadow Elite/Bilderberg'.

CHS speaks to "Financial Power Elites and their functionaries in the Central State"

What exactly is the difference?

The letterless one 2 years ago alluded to the US crushing the rest of the world using its financial power, under the direction of the NWO, exactly as CHS outlined in this article.

There is nothing shadowy or mysterious about the most financial elite paying huge sums into campaign contributions and lobbying efforts in order to get policies that benefit their interests.

Except for one small problem: these campaign contributions aren't directed at specific focused goals. They span the entire spectrum - from Bill Gates' anti malaria campaigns, to global warming climate change global climate disruption, to Tea Parties, to whatever .

These campaign contributions also come from outside the US for specific reasons: the Taiwanese contribute so they can continue to exist under the US nuclear umbrella as an independent state. The Saudis contribute so they can keep their finger on the pulse of their military benefactor. etc etc.

To lump all of these players under one umbrella is a gigantic assumption for which zero supporting evidence has been forthcoming.

On top of that - there is plenty of evidence of the opposite: the poor people are selling gold while those with lots of money are buying.

If indeed the plan is to wind up with a stronger dollar, then buying gold is the direct opposite of what the NWO/Financial Power Elites/Bilderberg/whatever should be doing.

Combined with "austerity", meaning reduced government social services (esp Medicare), and with reduced "defense" spending, the net tax revenue collection potential of the U.S. federal government is quite large ... as we shall find out, I predict.

The problem with the theory of austerity being used to reduce income is that a significant portion, if not the majority, of Social Security income is used to live on.

The sheer numbers bear this out: if 10% of the population is rich and gets Social Security, that incremental loss of income might have some tiny impact on spending, but really does not because it is insignificant.

On the other hand, 50% of the population is not rich and depend on Social Security in order to avoid eating cat food.

Cutting this stipend just pisses them off and invites Lenin/Hitler/Mussolini/Robespierre.

Presumably unlike most of the American public, the FPE/NWO/whatever know something about history and can draw parallels between the instability of the French Ancien Regime and the failure of John Law's Mississippi bubble - the counterpart being the American internet/real estate bubbles.

[ThePythonicCow]

Re: Trade of the Decade: The Power Elite's Grand Strategy

I'm beginning to suspect that one of the posters above in this thread is a shill of the NWO, whose job it is to disrupt dangerous threads with tediously confused rebuttal. That posters apparently anti-NWO position on global warming may be his maneuver to get "street cred", on an issue that the elite were losing on anyway.

... it's time to walk the cat and pet my snack, or however that went.

Congratulations, Shiny! It seems your thread has been deemed dangerous by the NWO.

[shiny!]

Re: Trade of the Decade: The Power Elite's Grand Strategy

Congratulations, Shiny! It seems your thread has been deemed dangerous by the NWO.

Awww... shucks :p

[c1ue]

Re: Trade of the Decade: The Power Elite's Grand Strategy

I'm beginning to suspect that one of the posters above in this thread is a shill of the NWO, whose job it is to disrupt dangerous threads with tediously confused rebuttal. That posters apparently anti-NWO position on global warming may be his maneuver to get "street cred", on an issue that the elite were losing on anyway.

Either that, or the rampant conspiracy theorism is on par with the equally ludicrous global warming bandwagon.

Evidence is still lacking, as is coherence.