Wednesday, December 15, 2010

Japan’s Top Currency Official - Global Recession Lasting Until 2018

I don’t know why it is so hard for people to believe this crisis is not over.  For 90% of Americans, they know its not over. 

Sakakibara notes a fundamental problem is that government’s are implementing austerity rather than growth strategies.  And how often have we said austerity is for the corrupt and people who don’t understand economics.  Sakakibara is right.  And on that note, for those advocating a return to the gold standard, that would involve massive austerity and economic misery as far as the eye can see.   Of course, we have already said that.  Gold is a religious ideology and those who espouse returning to a gold standard don’t seem to understand the first thing about what money is.   Want a history lesson and a monetary lesson?  You’ll get one in January if I can find the time. 

Pesek goes on to question if this is 1937 all over again.  Well, not really.  We aren’t repeating history exactly because policies have changed.  But we are repeating history.   And there is some comparatives to 1937 but not many. 

There is a clearly pronounced decennial or ten year cycle.  I haven’t talked about it on here but that is simply because I don’t talk about a lot of things on here.  So with this in mind, let’s look at history from a perspective of years ending in 0-9 or the ten year cycle starting with year 1 and ending with year 10.  It’s more likely that the 2001 recession was similar to the 1921 recession.  It was brief and its significance was glossed over with monetary policy in both instances.  We then entered the roaring 20’s just like we entered the roaring 200o’s.  Consumption was the order of the day in both situations.  This while much of the population was losing ground in both cases.  Wealth concentration occurred in both cases because of corruption.  Wall Street was considered brilliant in both cases.  While in reality, they were sowing the seeds of massive fraud in both situations.  The housing bubble that peaked in 2006 is similar to the housing bubble that peaked in 1926.   So, where does that leave us?  We are most likely in 1930.  That is, we had the initial stock market collapse and a fast and hard stock market recovery.   In both situations, the corrupt status quo thought the crisis had passed.  That 1930 rally is simply being extended today through currency debasement around the globe.  Following the cycle, 2011 would therefore be the return of 1931.  1931 was the resumption of the global collapse and I expect 2011 will be the resumption of a full force collapse.  That collapse will most likely be concentrated outside of the United States. 

I have never posted this on here but have discussed this with many people offline.    It’s an early holiday gift.    Happy holidays.  :) 

posted by TimingLogic at 11:12 AM

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