Monday Memes

Follow the Money

I’m sure a fair number of you have heard about this second assasination attempt on Trump while he was out golfing. Yes, the guy arrested just seems like a crackpot Trump hater who wanted to fight and die for Ukraine for whatever reason. Nothing is sticking out to me on this assasination plot. But in general why does nobody follow the money on these things?

I enjoyed this article on Brownstone Institute that laid out the Global Financial Crisis. It was all built up on the basis of utter BS. As Tomas Furst writes:

"In 2007, the total value of an exotic form of financial insurance called Credit Default Swap (CDS) reached $67 trillion. This number exceeded the global GDP in that year by about fifteen percent. In other words – someone in the financial markets made a bet greater than the value of everything produced in the world that year."

How do you exceed the entire value of everything produced in the world? My guess is that you would have to start monetizing things which previously were not considered monetizeable. Considering that money is nothing more than a declaration of fiat anymore, this isn't that hard in theory. Billlionaires can start trading licensing rights to the sun and the moon and each individual star in the sky. Bill Gates can get licensing rights to Alpha Centauri and Klaus Schwab can get licensing rights to rename Saturn. They can count every bird on the land and every fish in the sea and every insect and plant as assets! Unfortunately for them the sun, the moon, the stars, the birds, the plants, the fish and the insects will not pay them any of their fiat back with interest so they can keep their ponzi scheme going. A few of those things are monetizeable to a degree, but only insofar as people are exchanging economic units to consume them.

That's why they need you, dear citizen reading this.

"What were the guys on Wall Street betting on? If certain boxes of financial pyrotechnics called Collateralized Debt Obligations (CDOs) are going to explode. Betting an amount larger than the world requires a significant degree of certainty on the part of the insurance provider. "

You would think that betting an amount larger than the GDP of the entire world would be illegal. Even if it was not, however, the premise is so absurd that it is laughable.

What was this certainty supported by?

A magic formula called the Gaussian Copula Model. The CDO boxes contained the mortgages of millions of Americans, and the funny-named model estimated the joint probability that holders of any two randomly selected mortgages would both default on the mortgage.

The key ingredient in this magic formula was the gamma coefficient, which used historical data to estimate the correlation between mortgage default rates in different parts of the United States. This correlation was quite small for most of the 20th century because there was little reason why mortgages in Florida should be somehow connected to mortgages in California or Washington.

So they bet the entire world on the likelihood of people continuing to pay their mortgages in California and Florida. This just gets more stupid by the minute.

But in the summer of 2006, real estate prices across the United States began to fall, and millions of people found themselves owing more for their homes than they were currently worth. In this situation, many Americans rationally decided to default on their mortgage. So, the number of delinquent mortgages increased dramatically, all at once, across the country.

So in this case there was a breaking point. Is there one anymore?

The gamma coefficient in the magic formula jumped from negligible values ​​towards one and the boxes of CDOs exploded all at once. The financiers – who bet the entire planet’s GDP on this not happening – all lost.

This entire bet, in which a few speculators lost the entire planet, was based on a mathematical model that its users mistook for reality. The financial losses they caused were unpayable, so the only option was for the state to pay for them.

It's always backstopped by the .gov full faith and force.

Of course, the states didn’t exactly have an extra global GDP either, so they did what they usually do – they added these unpayable debts to the long list of unpayable debts they had made before. A single formula, which has barely 40 characters in the ASCII code, dramatically increased the total debt of the “developed” world by tens of percent of GDP. It has probably been the most expensive formula in the history of mankind.

All they had to do was type a few extra digits into a computer code and viola! The problem went away for them. It's like magic.

Did the problem go away for those who lost their homes and everything of value over this? Of course not. They were forced into undue economic hardship, which is the bankers favorite type of magic trick. A starving, desperate people, who will do anything for a job and a way to feed their family, will gladly take on an enforcement role against other people. If they are seperated from their homeland, their culture, and their native community, they can be also be brought to bear so much more easily.

The entire economic system is designed to turn you into an economic unit. One that follows orders and doesn’t question where your paycheck came from. All of the destruction and despair and manufactured scarcity is well financed.

The hierarchy is set up so that the plunder will continue. The good pay for the regular folks always involves enforcing entrapment in the monetary system. Do you think you’ll be able to get compensation for your losses? That just feeds the beast:

Overpopulation and scarcity may be a myth. For those at the top, however, controlling and managing the human population so that they maintain power and prestige is not.

New markets are always required through the ever expanding money supply. So we pay them to create problems and then pay them to fix problems that always make the problem even worse Doctors are incentivized to harm healthy babies through vaccines at well child visits, say, then the child becomes sick and the medecine makes them sicker and now there is a recurring customer for life. We pay for violent extremist groups to have color revolutions and murder people and then when war breaks out we pay the defense contractors to drop bombs to murder more people, then we pay the NGOs to try to fix things, who then bring the refugees that we created into our country to take our jobs because they’ll work for less and won’t ask questions. They make sure those who rise to the top who we see are the most craven, corrupt, willfully blind and bought off. They want to own it all.

The soul must re emerge for us to have any hope for a future that looks less dystopian.

1 Timothy 6:10

King James Version

¹⁰ For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

My Phuket flooding update is that it is still raining, and now the ground is becoming flooded inside the restaurant:

The couple who has been staying in the restaurant after they were flooded out of their homes have a beautiful baby son. He’s been hanging out watching me type. What will the future hold for him?

I hope it looks nothing like the Hell on Eart they have planned for us all. For a better day…

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