Thursday, June 16, 2011

The Cycle Of Volatility – The Balance Of Power In Greece Shifts To ‘We The People’ As Political Crooks Are In A State Of Chaos

With Greece’s prime minister disbanding his cabinet and with resignations in the ruling party, Greece is now officially in a state of chaos.   That doesn’t mean society is in a state of chaos.  Contrarily, it is the state in Greece that is the initiator of most violence against the peaceful protests of the sovereign people of Greece.

Make no mistake, the only reason the prime minister sacked his cabinet (His time as prime minister is likely over.  Whether he survives some time longer is irrelevant.  He has lost control and has no power.)  and the only reason that we see political resignations are because politicians fear the sovereign people of Greece and/or losing power and control.  Is that such a bad thing? 

“When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”  -- Thomas Jefferson

Remember, volatility always precedes a change in trend.  It looks like the crisis in Europe has now passed the point of no return barring some miracle.  There are no political answers for this mess.  There never have been.  And that means all of the blathering and bloviating by politicians is and always has been completely worthless; a point we have made on her countless times.  The people of Greece will determine their own future.  Sovereignty and democracy are gaining the upper hand in Greece.  The implications for this shift are enormous.  

So, if Greece decides it doesn’t need to pay its debts, then why should I as a citizen of Spain or Portugal or Ireland pay their debts.  Or why should any nation who receives IMF loans?  And if U.S. banks haven’t paid their debts but instead are bailed out, then why should I as an American citizen pay my debts?   And then why should the U.S. repay China?   If you default on me, how am I going to repay my obligations to others?  Who is then left as a counterparty to repay all of the massive financial Ponzi schemes including all of these naked bets (criminal bets might I add) by mostly American financial firms that countries are going to default?  

Now, at this point, what country trusts another country to repay or even make any arrears payments or terms of credit for trade?  And what business anywhere in the world will trust repayment of credit by individuals or other businesses or even governments?  At this point, all of the bulloney about your personal credit score that the corporate Gestapo holds over your head?  Who cares?  So, what then becomes the primary source of payment for economic transactions?  Why, that would be the local currency or in cases of less than democratic and massively corrupt states like China or Russia, underground currencies accepted for international settlement that are highly liquid aka mostly dollars.  And, for international settlements, that would be cold hard cash.   And that would be mostly dollar cash until and if the rules to the system are changed.  And what does that mean in a world void of cash?    It means the world would be scurrying for cash and dollars.  And the implications for globalization?  It would be completely dead.   Sound crazy?  We have already seen this dynamic happen numerous times to varying degrees. 

Now that scenario may play out exactly as typed above or it may not.  But make no mistake, globalization in its current form is dead.  We were the first to say it and there is absolutely nothing that will change that fact.   Nothing.  Because globalization is based completely on fraud and the self-interest of elitist and political crooks.   Self-interest as a foundation for any economic endeavor may be fine within a very rigid framework that subsumes this dynamic as a secondary or tertiary motive but when it is the primary motive, failure is always imminent.  (Adam Smith clearly did not advocate this in The Wealth of Nations although neoliberals surely want to believe that to be the accurate interpretation.  Nor was Adam Smith privy to modern day mathematics, science and gaming theory that can be used to devise an elegant and very simple framework of what a functioning economy could actually look like.   A democratic economy.  In other words, those who blow incessant bullshit about Adam Smith and free markets are religious zealots whose flawed interpretation of Smith’s limited, unscientific and often flawed remarks can’t see the truth beyond the end of their self-interested nose.) 

When an economic model requires me to bail you out at my own peril, you can bet the system is built on sand.  And not only is the U.S. economy’s based on said voodoo, but this is the foundation of globalization.  We can expect that because globalization is an American invention allowed only through the status of our reserve currency.   And that is why France and Germany tried to muscle in on this dynamic with the euro.  Because they wanted part of America’s game of power and control.  Globalization is based on fraud.  The funny thing about fraud is that once its exposed as legal and endorsed by the state, corporations and the privileged, the innocent and those on the outside soon learn to play by the same crooked rules……   Well, I think you get the idea.  That is, karma is a bitch.  It’s all just a matter of time.

posted by TimingLogic at 9:50 AM