Explain Deflation ArticleHow do you explain deflation - important to your and the world's survival?
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HOW DO YOU EXPLAIN DEFLATIONBy Delwyn Lounsbury - THE DEFLATION GURU A Russian named, Nikolai Kondratiev, was the first to explain deflation as a long wave capitalism economic cycle lasting 60 to 80 years back around 1900. He paid for it with his life. Joseph Stalin had him killed by a firing squad for saying good things about capitalism. Kondratiev said capitalism goes through a Kondratiev long wave cycle - similar to YOUR spring (inflation), summer (stagflation), fall (disinflation) and winter (deflation/depression). But, never does it go all the way back to where it started. That is what Stalin didn't like. It made capitalism sound considerably better than communism, Marxism and socialism/Keynesianism (pie in the sky - schemes for taking away your FREEDOM & LIBERTY). ONLY BELIEVE IN THE FREE MARKET! Robert Prechter describes the Kondratiev long wave theory in his New York Times best seller, "CONQUER THE CRASH" (2002) - Now updated. You really need to read this book. Get 8 chapters free by subscribing at links on my website. The whole world is experiencing the ending of an eighty year Kondratiev long wave business cycle that went way overboard due to wholesale worldwide central bank fiat paper money creation. It is the Anglo financial power elite who control all 100 central banks in the world. The elite are globalists who want a one world government and one world currency. They want a new world order in which people are controlled cradle to grave. Say goodby to your freedom and liberty. Printing money then morphed into an electronic money credit inflation creation climax binge. First we had fractional reserve banking and then starting in the late 1990's the government let banksters get away with having no reserves standing behind deposits. Now, we have the insanity of creating money with just a computer entry. Think QE1 & QE2. With quantitative easing the Federal Reserve Bank buys Government (bonds) and then just credits the U.S. account. Presto - fiat fake fraudulent money. BEWARE OF FIAT MONEY! The some members of the federal government are in a covert conspiracy with the Federal Reserve Bank (not a bank but a fraudulent monopoly cartel) and the impossibly rich 1,500 or so banking families in the world who want to be your “Big Brother.” Fractional reserve banking is used as multiple banks lend on the same money reserves in a "daisy chain" - "Ponzi scheme is more like it" of money creation. This led to the largest current credit creation climax calamity and blow off of all times. It's all coming unwound right now. The next 5 years will not be pretty! I am here to say we have had our runaway inflation or hyperinflation. Next is deflation and hyperdeflation. As a real estate agent in California since 1968, I have seen it first hand. The house I sold for $20,000 back then went to $500,000 and was financed by a "liar loan" where a person didn't even need to show his income. Next is the Greater Depression three times larger and three times longer than the 1930's depression. The world will experience the pain of the cure for credit inflation - a credit deflation crash. Real estate and most other asset will drop 90% from peak and bottom in years 2016 to 2018. Even gold may drop in half by then. Unemployment will be 35%. High unemployment is already setting up a snowball effect - a vicious circle cycle of layoffs upon more layoffs. People don't buy as much. Then businesses have to fire workers. Those workers plus the others already without jobs can't buy stuff. In subsequent years employers have to layoff more. This goes on until the excesses of the credit inflation period are liquidated. This is the Multiplier Effect in economics in reverse. Look it up. It feeds on itself! Plus, it goes a lot faster on the way down than on the way up. That is why this deflation article is important to you. At this stage of the long wave, the government cannot stop the deflation economy and coming Greater Depression.. Besides, the Anglo financial power elite don't want to see their dollar investments lose any more value. In fact, they probably have sold their real estate and will now be getting ready to short stocks and commodities. Of course, they will pick all these assets back up at ten cents on the dollar in 2016 - 2018. You should do the same. Cash is King right now. Reduced property taxes, reduced income tax and reduced capital gains tax revenues will hurt city, county and state government most since they cannot print money. This will lead to long lines, long waits and possible denial of service because of age. The economic reality of deflation and the Greater Depression will cause governments at all levels to tighten their belts, including the Feds. Since the federal government can still create money out of thin air, they will not be affected as much as the rest of governments. Socialism by its very nature is a form of wealth redistribution. It is inefficient and incompetent. The socialist president Franklin Roosevelt started us down this path of big government spending and greatly delayed economic recovery after the 1930's depression. There are no jobs when government projects are finished like those of the New Deal. Better to lower taxes and let businesses create jobs that will be around. Mark my words they are trying these schemes again with the "shovel ready" projects. President Obama just admitted publicly that there was no such thing as a "shovel ready" project. Unemployment insurance now pays for 161 weeks! At least with FDR's CCC Corps and WPA there was some honest work in return for the $1 per day stipend. Franklin Roosevelt was a misguided socialist president. He made the depression worse. He threw gasoline on the fiat money rip off. He outlawed gold ownership, started farm subsidies that are still in effect today, created government jobs instead of letting businesses create jobs and hurt free enterprise with over 525 new regulations. He and his advisors reasoned that low prices where the problem and sought to raise them by reducing supply by paying farmers not to produce. Why did they do that when people were starving? He led us down this path of big welfare government sucking the very life out of the working people to pay those on the dole. FDR's legacy is an enormous inefficient socialist government that every administration since grew even bigger. In new book by Dinesh D'Souza, THE ROOTS OF OBAMA'S RAGE, D'Souza says American President Barack Hussein Obama wants to stop America dead in its tracks with all his wealth redistribution and government regulation. His father, Barack Obama Senior - deceased, was anticolonial and a socialist. Obama Senior believed the U.S plundered and ripped off the third world by selfishly using up the worlds resources, bullying other countries around and dominating the planet. Obama Sr. was an alcoholic, African socialist who wanted to get even with both Britain and other colonial empires of the past including the United States. He also was in favor of state confiscation of private land and increased taxes with no upper limit. Like father - like son? Are Obama senior’s anticolonial dreams becoming our socialist one-world-government nightmare thanks to his son Barack Hussein Obama Junior? President Obama's self-written autobiography is titled, "DREAMS FROM MY FATHER." So, don't try to tell me otherwise. John Maynard Keynes was an economist who preached government intervention and spending as a cure-all. This socialism actually leads to harmful big cyclic swings in the economy. Business people have to deal with the cycle uncertainty, piles of red tape and waste of time restrictions and reporting requirements. All governments of the world these days are Keynesian. Governments ramp up stimulus programs in downturns then pull the plug on stimulus when inflation heats up. The cyclic swings make it hard for business to plan for the future. The economy whips around so much that eventually business people finally get so confused, uncertain and scared they freeze up. It's what is happening now. Keynesian economics is a big socialistic mistake and eventually ends in a much worse depression due to stimulus and the growth in size of government. The only cure for inflation is a deflation and hyprdeflation. Credit inflations like we have had always end in a crash per the Austrian school of economics. Alan Greenspan previous head of the Federal Reserve presided over 4 or 5 bubbles. Years ago he was a libertarian and friend of Ayn Rand, the author of ATLAS SHRUGGED and FOUNTAINHEAD. Greenspan wrote a long article back then about gold being the only safe money and best backing for paper money. He got bought off. Bureaucrats loved Greenspan in the good market years. His name will be mud in the history books. Google Greenspan gold and see his article. -------------------------------------------------------------------- "We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force." Ayn Rand. -------------------------------------------------------------------- Barack Hussein Obama, a community organizer from the politically corrupt city of Chicago. He is a for sure a socialist and may well be a communist/Marxist turning fascist on us. Bad news! Obama, Franklin Delano Roosevelt, Alan Greenspan and John Maynard Keynes along with many other social scientists and political bureaucrats are the ones who's names will be mud in the future. This is not what our freedom favoring founding fathers had in mind when they wrote the constitution. In fact, these big brother, Orwellian, wealth redistribution, utopia, power elitist, oppressive, power hungry, police state, tax us into oblivion, take our freedoms, take our rights, take our guns, big government, socialistic, Council On Foreign Relations, warmonger, communistic, Marxist, fascist new-world-order, Trilateral Commission, one-world-government, United Nations ideas are TYRANNY. We need to stand up for our rights and LIBERTY everywhere we can or we can kiss our own FREEDOM good-bye. We will soon be told what to do, how to act, how high to jump, where to live and what to think. Is this the life you want for your children and your children's children? I don't think so. Barack Hussein Obama is leading America right down this path. Stupid is as government does. Stand up and be a free thinker. Be a contrarian. Be a renegade. Live your life to the fullest. These are historic times. Don't back down! Help restore our constitutions principles. Soon the stocks, mutual funds, commodities and most bonds you invested in will also be toast due to the ravages of deflation and hyperdeflation. Just like the real estate bust that Robert Prechter says will eventually be a 90% plus drop from peak, by the way. The dollar from 1913 when the Federal Reserve Bank was secretly hatched by the bankers has dropped to 4 cents in value. We have had our runaway inflation. When we explain deflation we maintain that first comes inflation (spring - 1940’s – 1960’s), then we have stagflation (summer - 1970’s – 1980’s), then comes disinflation (fall - 1990's & 2000's), finally deflation (winter - now) and finally hyperdeflation possibly until 2016. This is the Kondratiev long wave. Copyright 2011 by Delwyn Lounsbury - THE DEFLATION GURU Use of this article allowed with attribution back to: http://www.deflationeconomy.com
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