Monday , 17 June 2024

Coming Soon: Further Devaluation by Deception

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We are faced with the corollary of the famous maxim; “It is not who votes thatbubbles matters but who counts the votes that matters.” It is not the numbers but who devises them and then applies them that matters. It isn’t magic but trickery and you and I are the audience. Words: 598

So writes Mark J. Grant, author of Out of the Box, in edited excerpts from a post* on entitled Devaluation.

This article is presented compliments of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Grant goes on to say in further edited excerpts:

The Current Stock Market Valuation Is A Deception

The markets are where they are for one reason only, just one, the sea of money that the central banks have poured out across the globe. There is no other reason. Money flows into the corporations, money flows into the markets and the tide rises because it must. It is a [nothing more than a] House of Cards, [however,] a dangerous game that works because there is no place else to go with [the] money.

The euphoria, New Year’s Eve at the Big Casino, continues but the price will be high when it all ends and it will end because it is not this or that asset class that is in a bubble but the entire world that is a giant soap bubble that will float until the heat of the sun pops the thing in one ugly mess. I fear that subprime loans, fantasies, and the S&L crisis will pale when we are done with this party because, my friends, the bill for the festivities must get paid.

The Next Deception Will Be Via Currency Wars

Plenty of time to play; we have only had currency skirmishes to date. The boys in the backroom can’t do the Inflation play; “out of bounds” say the politicians. The little blue and green pieces of paper created out of thin air is growing limp and the magicians of money have searched their bag of tricks and will be performing live and in person soon.

Here is the scheme; lower the value of all of the currencies and play the Absolute Value game where Relative Value is consigned to a secondary position. This means that all currencies must be deflated to a lower value regardless of how the Dollar trades against the Euro or the Yen. Now the simplest way to do this is to Devalue in coordination but that course is unlikely as it would be impossibly tough to explain.

The trick will be based upon the same methodology as debt to GDP ratios or the CPI fiction; it all depends on what is counted. There have been many postulates floated about, in the case of America’s CPI number, that real Inflation is somewhere around 8.00%. However if this was accurate and the number used then everything tied to CPI such as wages and pensions would increase dramatically and so the reality is ignored and the data is defined by how it is counted. A great trick; an effective sleight of hand.

So those in the green eye shades sit around and plot. It worked for CPI, it worked for the debt to GDP ratios where liabilities of all types are not counted and tossed into the trash bin so why won’t it work for currencies; it will. Prices of goods and services don’t have to rise; it is just that a scheme to use more Dollars or Euros to buy them must be put in place. So it will be Devaluation by fiat but since it is a new game; it will be tricky. It is a game that has never been played before and there is no rule book for this one.

Watch the hat; the rabbit will be coming out soon.

Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.


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One comment

  1. It is about time that we the people, realize that the Gov’t is doing the same thing with their Economic numbers as they are doing with the value of the Dollar.

    Face it, the Gov’t. is doing everything it can to juggle all the numbers to make things look rosy when in effect they are shafting (economically speaking) everyone but the Wealthy which can use the write offs. Saying the COLA at 1.7% for 2013 is a perfect example.

    If you trust the Gov’t. will continue to do their best to protect your future, fine and dandy otherwise I’d suggest that if you and your assets are mobile you pick some Country that is not using the Dollar and relocate ASAP, that way you can visit all you want but your entire fiscal future is not left up to how much the DOLLAR is manipulated by the Fed.