The Black Swan is War This is not really a response to your writings, more just my own ramblings!)
Since the last market crash in 2000 2001 the fed has been reinflating, but now they inflated away 30 years of growth in just 6 years. This entire market move to 15 000 dow was an illusion built on nothing more than monopoly money. The money changers are still running this country and they got a large bonus for doing such a fantastic job to boot.
I think the great minds of wallstreet and government came to the conclusion back in 2000 to create a massive arms development program so that they could spend away this dollar as fast as possible and build out their war machine at the impending thrashing of the dollar and eventual move to a single north american currency! Now as it stand the US has a well trained large army with tremendous technology advantage over many other nations. This is no coincidence going into the all painful ‘payment’ stage of bubble economics. This bubble was so large and so widespread that people are not going to want to pay these debts. They will walk away in droves.
Because we are already seeing smart debtors simply walk away from assets that can be paid! This is going to be a mass exodus out of assets and banks to cash in the mattress. This becomes worse at every turn with lowering wages, increasing unemployment and riots in the streets as families get hungry. So called well meaning elitist politicians start discussing tearing down homes once again, and yet families are left homeless. Civil rest is already occurring in many parts of the world, and will only really be understood here when California falls soon.
This debt repayment phase may not go as well as paid, since the bankers are not required to pay for their bad loan practices neither should well intentioned and mislead Americans.
I believe that once hunger strikes more americans will hit the streets and give up the middle finger to those that have and to governements that have destroyed their future with lies and deceipts.
War being the fourth becomes easier and easier as the bottom rung feel defeated and lose hope. These individuals are a growing segment of the population, and as their numbers grow so does their strength. No matter how neurotic their ideals become, locally they become the dominant force ready to join the cause, any cause.
In Africa we see all the time the ill effects of no food or hope, and that is war. How this could happen is infinite in possibilities, but it could simply be a spread of war in the middle east to Iran and then Russia. Ideally as far away from China as not to upset them, and why not take out Venezuela while their at it. Protect them from the tyrrany of evil as well. Anything to keep peoples minds of their lack of quality of life and dreams they once enjoyed. In other words a reset of the mind to lower expectations so once again men can be happy with less. Human expectations if renewed every so many years is a great tool for slavery of the debt tool once again.
Earlier someone said that a default of the debt would threaten war, absolutely a real possibility. It would hardly matter with that many nukes and large airforce and navy.
The inflation theory does not work when velocity of money comes to a screeching hault because of sickening money changer carry trades that steal from the people and pay the banks. Vile anarchists that enslave the working class and syphon off all of their value created by interest and taxation.
The last cycle will not be seen for years, any velocity will be quickly destroyed when fear of not having ones next meal arises. As well any income earned is being grabbed by the Buffets of the world who enslaved large companies with huge arm twisting interest rates.
I am not sure when or if a larger war would occur, but a quick Reichstag fire in the white house or senate. Perhaps a quick bomb in the senate whiping out the cabinet would allow someone to step in and make decisive actions knowone else could make. This would then give power to a sole individual that could send all of our kids to their deaths.
I may come accross as somewhat over the edge, but all of us here were calling this years ago and we were all conspiracy theorists back then. Now what are we?
I will never bother studying the numbers in depth, the exact nature and how or why doesn’t matter one bit. What matters are the facts that we can simply not afford to repay all of the debt, and all these ideas of no interest on debts etc, only hinder growth and help create a nation of hording zombies moving from town to town looking for a job or a loaf of bread.
The powers that be will not allow a 10 or 15 or god for bid 20 year pay back cycle, tha is far too slow for their greed. War is much faster and much more profitable for those that can avoid it and supply it.
Just my ramblings on the 4th option.