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WHY
REFORM MOVEMENTS ARE NECESSARY I will begin this hodge podge of a missive with a quote. Notice I did not say hedge podge. If I had done so, this article would have ironically been entirely about the poster child of the status quo -J.P. Morgan Chase and their 40 trillion derivatives book: “Every society goes through the pangs of reform and change. But, the leaders of society representing the status quo strongly resist any movement for reform and change since it deprives them of leadership. Any establishment has its own leaders who benefit by the status quo and would do everything to resist change either in the name of religion or in the name of age-old tradition. Those who advocate change are denounced as heretics, unbelievers and innovators and violators of religious sanctity. The real issues involved are sought to be drowned in the sea of such accusations. Real issues are never discussed or even touched.” -Ashgar Ali Engineer 2004
Quite a mouthful isn’t it? I mean the part about leaders representing the status quo resisting change. Forget about the fact that this was written referencing a religious reform movement for a moment. After all, once Jane and Joe Sixpack figure out exactly what they have been doing to our money they aren’t going to be too happy eh? When they get wise to the goings on they might even have a religious moment of their own. How bout the denial part? Songs have even been written about this….and I swear there ain’t no heaven and I pray there ain’t no hell. Our fiat religion will not die easy, that’s for sure. Its supporters will seemingly go to any lengths to perpetuate it, even if it means undue hardship for the masses. They will tell anyone who will listen that inflation isn’t a problem. These are the same folks who claim that anyone who points to the chart above (complements Dan Norcini) is a heretic. Well folks, I hate to rain on anyone's parade, but according to the Kondratieff discipline, this is a little taste of what lies ahead:
MZM
Exponential Growth vs. Fed Funds Rate The light blue vertical lines are just to point out the relationship between rates and MZM... Rates rise and MZM contracts...Rates are lowered and MZM expands... Debt backed by debt fractional reserve banking, to be sustained from this point means that MZM growth must grow faster and faster exponentially like it has been since the early 60's... Can rates be dropped past zero faster and faster exponentially faster and faster? The answer is NO...that is impossible... But to sustain the current reality MZM must begin moving straight up...forever... 1776
to 1991 MZM growth 2 Trillion in 215 years So from now until the end of 2004 MZM must grow by 2 Trillion and after that it must grow by 2 Trillion in 3 months then 1 month then 1 week then 3 days then 1 day then 8 hours then 2 hours then less than an hour and so on and so forth until we are down to nanoseconds and beyond... Or the System will collapse...the end Try all you want to deny it...the dawn of economic doomsday is upon us... Rates across the spectrum must crash to sustain growth...Mortgage rates especially...and that will only buy a few more months to live in "THE GOOD OLD DAYS" So tell me folks, do you really agree with Alan Greenspan – the part about inflation not being a clear and present danger? It appears to me that a reform movement has been underway for some time now. Graphically, it began in 1913 with the establishment of the Federal Reserve. Then it picked up an enormous head of steam when the gold window closed in 1971. Along the way the movement has picked up spokespeople. Their names are or should be familiar to a lot of you. Names like Jim Sinclair, Bill Murphy, John Embry, Jim Puplava and a long list of others have given untold amounts of their time and expertise to make the rest of us aware that, despite what Alan Greenspan and Co. say, the light at the end of the tunnel is really a train. If you look closely at the graph above, you likely will reach the conclusion that an unsustainable situation is unfolding. In a nutshell, that is why reform movements are necessary. I’ll close this missive with another quote. This one was written 500 years ago. It’s one I read virtually every day since it hangs in a frame above my desk. I sent it to Bill Murphy recently because it reminded me of him, GATA and their plight. A New Order Of Things “There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. For the reformer has enemies in all who profit by the old order, and only luke-warm defenders in all those who would profit by the new order. This luke-warmness arises partly from fear of their adversaries, who have the law in their favour; and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.” -Machiavelli in "The Prince" (1513) Isn’t it funny that the more things change, the more they stay the same? ©
2004 Rob Kirby CONTACT
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