“A ‘crack-up boom’ is fundamentally a financial boom, money comes into the system – a lot of it. People don’t know it’s phony money; they can’t tell the difference. This money hangs around the financial industry and everyone there has a good time.”
But society, as a whole, is not any richer because Picasso or Van Gogh paintings became more expensive – or because stocks are more expensive – or because a hedge fund manager makes a billion dollars. Society is richer when people generally earn higher wages, stash away more savings and pay down debt. That is not what is happening. It wasn’t happening then. And despite the Official Media’s explanations to the contrary, it’s not happening now, either.
Be aware that the Austrian School of economics is probably the best theory about the way the world works.
They too are suspicious of efforts to control the natural workings of an economy, in general – and suspicious of central banking, in particular. The fact that it was a one-time “Austrian,” Alan Greenspan, who became the most celebrated central banker in history, only increases suspicions. He was able to master central banking, it is imagined, because he understood what it really is – a swindle.
Von Mises explains a “crack-up boom”:
“The first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and alongside increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.
Deliberate inflation policy is Theft:
“But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against ‘real’ goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against it.
“It was this that happened with the Continental currency in America in 1781, with the French Mandats territoriaux, (paper bank notes issued as currency by the French Directory in 1796 to replace the Assignats which had become virtually worthless) and with the German mark in 1923. It will happen again whenever the same conditions appear, this time with the dollar and euro, with all paper currencies at once. If money has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last.”
Mises described the irrational phases of a classic inflationary cycle.
At the beginning, no one can tell the difference between a real euro – one that is earned, saved, invested or spent – and one that just came off the printing presses. They figure that the new euro is as good as the old one. And then, prices rise – and people don’t know what to make of it. Later, they begin to catch on – and all hell breaks loose.
You see if you could really get rich by printing more currency, Zimbabweans would all be as rich as Midas, since the Mugabe government runs the presses night and day.
Von Mises died in 1973 — long before this boom really got going — let alone cracked up. He may never have heard of a hedge fund – or even a derivative, for that matter. He probably couldn’t have imagined a world money system without gold? Or people spending tens of millions of euros for a painting, or twenty million for a house in east London. Or, Chinese stocks at 40 times earnings. He would have laughed in disbelief. He understood how national currency bubbles expand and how they pop, but he probably never would have imagined how insane things could get when you have a whole world monetary system in bubble mode.
He’d have recognized the beginning of this bubble – and he’d have recognized the end, but the middle – or the beginning of the end – that would have astonished him. During his lifetime, he saw a crack-up boom in Germany in the ’20s – and a few more thereafter – but he never saw a worldwide crack-up boom.
No one, anywhere, has ever seen a worldwide crack-up boom. This time, we’re the first ever. And we get to experience it live.
The Russian economist Kondratieff proved in the ‘30s that economic cycles are more powerful than government, while governments can alter the impact of a smaller “normal” bubble; they are helpless in the wake of a true “Super-Bubble.” The real economic cycle is going to run its course, no matter what the government does. Anyhow, the final stage of this crisis is depression.
Depressions are quite exceptional so no statistically reliable evidence and information is available. No general parameters do exist because this phenomenon is just too extraordinary. Hardly anyone still alive does remember the depression of the ’30s and are able to recall the circumstances that then took place. A depression is not a break in an on-going economy; it is the end of the economic road. It is a situation in which debt must be squeezed out of the system. In these circumstances bailouts, financial aid, and government stimuli packages are inadequate, in fact these hold back the process for recovery. Unfortunately this view represents a minority. Further the
The end of the RK Mafia (RKM) regime comes in sight:
The RKM owned U.S. Federal Reserve Bank is stuck between a rock and a hard place, facing an ETF fixed asset bubble that requires higher interest rates, and a massive derivatives equity bubble, requiring interest rates staying at zero. Causing the yield curve going up, which may lead to a T-Bond collapse, causing borrowing cost to escalate. – The Central Bank of Japan derivatives tied to Barclays Bank and HSCB holds the world currency market hostage, and it is getting worse! As Bank of America is in need of a $ 15 trillion bail out tied to the NAZI German Deutsche Bank.
Meanwhile the ‘Good Guys’ in the military have informed the Bush-Clinton Crime Family Syndicate that they will not tolerate even one member of their bloodline remaining on American soil given that they are directly responsible for the destruction of the American Republic. – Further is discovered that US Banks rigged for $12.8 trillion markets.
It’s getting more and more interested by the day, as these are the signs the Woken-Up are looking for!
Crack-up Boom & Hyperinflation Guaranteed:
Rob Kirby thinks all the current world problems come down to just one thing. He says,
“It all boils back to the money. And it all boils back to the notion we don’t have honest money because when you have honest money, these excesses don’t occur. Things cleanse themselves, and that is the virtue and the merit of the old relic, the gold standard, because it is honest commerce. When you have honest commerce, generally people are peaceful and get along with each other on a fair basis. They exchange equal value for equal value for the exchange of goods, not one country with the God given right to print money to buy the world’s output with freshly created out of thin air fiat money. It’s dishonest commerce. Dishonest commerce is at the root of all the problems we are facing in the world.”
Kirby goes on to say,
“You look at the math that is involved with fiat money and compounding interest. The life cycle of that system shows that money is created in its early life that is slow and gradual upward to the right. At some point, it inflects and it grows vertically. We are on the vertical part of the curve now. Things that go straight up are not sustainable, what we will experience at some point, and I believe this is a mathematical certainty. We will have a crack-up–boom. There will be a hyperinflation, and that outcome is guaranteed. It’s a sealed fate.”
The Dollar Collapse will Rock the World:
The markets, will shock the world in coming months. Major falls in global stock markets will be seen. Thereafter the bond market, holding the biggest bubble ever, will crash, leading to more problems in the monetary system. The vicious downward spiral will continue for a long time.
Gold and silver will be the major beneficiaries of these problems. As fear sets in and asset markets fall, many investors will look for refuge in precious metals. The problem is, there is very little available, as physical gold left the West, while Western central banks have already sold or leased most of their gold. Eastern nations, like, Russia, China, and India, have taken advantage of this and bought massive quantities of physical gold at manipulated discounted prices.
The Comex sold gold contracts for over 41 million ounces, equating 1,300 tonnes or $50 billion. But their registered stocks of physical gold are a mere $185 million. A leverage of 250 times more paper gold positions for each 1 ounce of physical gold available.
It is time that even the sheeple WAKEUP. – Below exposé explains everything what is going on, and will happen pretty soon. Be prepared, even when it may take a while longer, there are a handful of elites who decide to pull the trigger before it starts. But as always it it’s better to be one year early, than 1 day too late. But surly it is going to happen within two years, but rather sooner than later.
The American financed, and organised refuge crisis in the EU shows, the EU last week has quietly split-up and technically doesn’t exist anymore as Union, as many EU-countries have implemented their own border controls, and the Schengen agreement has been abandoned.
Jeff Berwick joins to discuss the Shemitah 7-year cycle, precious metals manipulation, breaking through the sheeple’s normalcy bias – and the impending collapse of US dollar – known as the world’s reserve currency for decades – as the last currency standing in the row of all other fiat currencies.
According to Jeff,
“When the Dollar collapses it’s not going to be like when the Zimbabwe dollar collapsed, or the Venezuelan Bolivar, or the Argentina Peso, it’s going to rock the world. And China and Russia are getting prepared for it right now, and you should be too.”
SHEMITAH EXPOSED: Financial Crisis Planned For September 2015
Published on Jul 14, 2015 – Survive Shemitah – For your free report on how to not only survive and even prosper from the coming collapse visit this site.