Posted on 12/29/2001 10:38:08 PM PST by spoosman
As we roll out of the fourth quarter of 2001, it would appear that the vast majority of people when queried about 2002 expect 2002 to be a better year than 2001. Whether it is a matter of a little better, or much better depends on who is asked, but the near unanimous expectation is for some level of better.
What fuels these expectations is the manipulation of the money supply by the banking cartel, with the ready assistance of the U.S. Treasury. With the fiat pyramid in a state of emerging collapse long before 9/11/01, the central planners of planet earth developed a gameplan in an attempt to at least cushion the collapse, if not avert it altogether. In the event the deal just fell through completely, there was always 9/11/01 to blame, just in case.
The primary reason prices were collapsing in the months prior to 9/11/01 was the money supply was in contract mode. The banking cartel made several desperate attempts to inspire borrowing, but there rate cutting did not produce the desired effect. Despite the periodic 'spiking' of M1 in 2001, nothing was working. The only way money supply increases is if somebody takes the bank's bait and starts to borrow more money. People were not taking the bait prior to 9/11/01. If borrowing ceases, the money supply contracts, and the fiat ponzi pyramid house of cards collapses in upon itself.
The heaviest borrower, with the most voracious of all appetites for borrowing money, is the U.S. government. When the little people stop borrowing for the plain reason that the hyper-inflation caused by the chronic money supply inflation over the last 88 years makes prices go so high that the cost of credit becomes irrelevant, this is like taking a stick of dynamite and attaching it to the foundation of a hut in Bangladesh. Unless some other borrower steps up to the plate, like the mother of all borrowers, the U.S. government, then the people who rig the game on planet earth have a very real problem on their hands.
Prior to 9/11/01, the government itself was in contract mode, evidenced by (Heaven forbid!) tax cuts, and not only that, rebates (can you believe it?!?!)! If the government is lowering taxes, and giving away rebates, because of some sort of alleged surplus, this is not a government that is expanding, and borrowing more money, and thereby adding new money to the existing money supply. When we couple the failure of the rate cuts to inspire borrowing by the little people with a government in fiscal contraction, that is the proverbial double whammy for the banking cartel, and the current fiat based economic system which underpins our assets. (The best way to think of assets is your ass on the line to produce something, you succeeded at doing that, and what you can save represents that process. The three primary saving tools are stuffed mattresses, stocks, and real estate.)
There was never any doubt in my mind where the prices were headed during 2001 prior to 9/11/01 (Link 1, Link 2 for those who have the mistaken notion I was 'wrong' about something). However, 'chance' intervened for the mother of all interveners (the cartel), who were busy intervening all year up until 9/11/01 anyway. The net result of 9/11/01 was a pre-determined and calculated scheme to close the markets for four sessions, force the prices in a foot race to just north of 1998 lows on all markets, and then -- using the new money freshly borrowed by the previously contracting and non-borrowing government, which now suddenly becomes a re-expanding and heavily borrowing government to fund and fight the 'war' on terrorism, thanks to the 'seminar' Bob Rubin gave the Treasury on how to use Treasury money to intervene in the stock market in late September -- attempt to contain the what was becoming a certain disaster from happening, by engineering the mother of all market maniplations known to mankind, which just happens to be the fourth quarter rally.
Now, faced with this level of attack, it is no wonder that sellers took the fourth quarter off. There is a long list of geniuses who were deathly quiet on this site in late September, who now, impressed by the ability of the manipulators to keep the game going, who are now just letting out huge sighs of relief. For the rest of those whose sentiments are being swept up in this CONfidence rally by the manipulators in the fourth quarter, well, hey, I can't blame them. This type of thing is designed to make you feel exactly like that, because the boyz can only carry the pail so far up the hill. They expect somehow that the CONfidence they have 'inspired' in you by the most radical form of market intervention ever witnessed in world history is going to do the trick ... "Go on, now, borrow that money dammit. There is nothing wrong with the high prices. You can handle it. Sure, you are already working three jobs and are awash in debt and have no savings, but just look at that big rally in the stock market! Don't kid yourself, everything is OK. You can borrow more. You must borrow more. You need to borrow more! Cammon, trust us. We are your friend!"
It is ironic that people, when faced with an even worse set of circumstances that led them to back off of the borrowing binge, which led to the money supply contraction threat, which led to the hemmorage in stock market in 2001, it is ironic that they will change their mind, and start thinking, "yeah, I can borrow more. The bank is right!" Rallies like we saw in the fourth quarter are a powerful narcotic and hypnotic. The emotional reaction to them is what eventually translates into CONfidence.
However hypnotized and mezmorized the public might be by the manipulators slieght (sp?) of hand, the effect of the hypnosis will wear off, and whatever they might have expected to happen will simply not come to pass. If people are expecting a free ride to the North Pole in 2002, they have another thing coming. It'll be more like a very long and rough ride to the South Pole.
I am only saying this because I want to reiterate the cause of the failure we will witness in 2002 of expectations being met will not be terrorist attacks at the olympics, or a war in India, or some other thing. It is the cause of the fraud of central banking, fiat money, central planning, and global hegemonizing, etc. The root of the disaster is the modern global aristocracy that make sport of our liberty to construct a world that suits the designs of their deluded minds (please, no cracks about mine:)). It won't be the fault of the Republicans, Democrats, Bush, Daschle, Cheney, or Hillary, unless they have an active role cooperating with the modern global aristocracy. And perhaps they do have a role. I do not know.
The last time I wrote was to say America was in big trouble. It was. And we saw the fruit of those forces take shape in September of this year. But because of the suffocating, manipulative intevening actions by the global elite, at least as far as US stock and real estate markets are concerned, the ability of these forces, which are still there, was temporarily shunted. After all, we are talking about 11 rate cuts, and massive govt borrowing, plus massive and unprecedented market maniplation to boot. These are powerful forces to just stand in the way of -- at least for the duration of the fourth quarter.
The same old crowd of self congratulating, half truth spouting, cartel loving posters are all abuzz about the 4th Q rally. If you want to rest the value of your assets on this level of market manipulation, that is up to you. This is one trader who won't.
As for the sky high expectations for 2002, they won't be met, and in fact, they won't even come close.
Hey, that's the Home Equity Loan industry's whole sales pitch!
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