On governments as systems to alter economic demand (pt 2 of 2)

The prior commentary was actually an introduction to this dialogue.

BP wrote: “I think a real estate, banking and monetary collapse is around the corner.”

JR replied: Starting in 2003, I published analysis of the global and national transitions that I have observed and forecast. Economics (supply and demand) always rules finance (price trends, lending trends, borrowing trends).

BP responded: Except when government interferes. Printing money and keeping interest rates artificially low create huge bubbles.

By 2004, global fuel markets were my main economics focus. Those global fuel markets explained the trends in war and politics.

I also consider fuel markets to be a big target for propaganda and “perception management.” An actual crisis in supplies of fuel is not essential. A perceived crisis is just as useful to people managing empires.

And, to BP, note that my model does not begin by saying “governments fundamentally distort economics.” That is propaganda.

Governments are instruments of economics. They demonstrate it.

Invasions are economic actions, as are taxes and everything else that governments do. Governments exist for the sole purpose of promoting economic benefits for the planners of that government.

The British monarchy in the 1830s had thousands of naval soldiers fighting to force China to let the British Royals sell opium to the Chinese. It was not just the British navy, but also France and the US.

But even there, it was not just about promoting the drug cartel of the British monarchy. Pushing opium addictions was itself a strategy within a bigger plan of colonialism.

BP wrote: Yet they create bubbles and prolong recessions

JR replied: There will always be periods of accumulating debts and periods of fleeing from debt. That pattern is more basic than government.

Printing money is simply a different issue. The debts could be accounted in bushels of wheat or barrels of oil.

So money is just part of “finance” … Which is RULED by economics.

Like economics is when the US invaded the North of Mexico and replaced the monetary system and tax system that had been present in Texas, New Mexico, Arizona, and California. Demand for pesos plunged and demand for dollars soared. Or recall the 1860s when the union army rendered the confederate dollar worthless.

BP wrote: But the free market is a better predictor of when to take on debt and when to save. The market better determines the price of money. Governments create moral hazard.


To me, governments are predictable developments within natural open markets. Of course governments tend to promote delusional borrowing. That is key to their purpose.

Then, when a natural deflating of credit market happens, the purchasing power of currency SOARS.

The delusional discounting of the value of money that the government has helped promote can end VERY suddenly.

Why the discounting? Because currently people relate to credit as EQUAL to cash. They think “I have a 700 credit score so I can get $400k for a mortgage if I want.”

But that $400k is not $400k of cash reserve. Their delusion is massive and it crashes with intensity.

Which creates a “cash crunch” (a release of the delusional discounting of cash as “everyone” panics and chases cash, selling inflated assets for cash, avoiding new borrowing, etc).

BP wrote: Since many politicians are puppets of bankers, the system is rigged to make both the politicians and bankers wealthier.


JR answered: All governments are instruments of the powerful. The powerful form governments as economic tools.

Why did Moses and the Israelites invade and slaughter the Midianites? It was not just to kill every male of any age and almost all of the females.

It was to take thousands of shekels of gold which the Midianites had accumulated, plus about one million head of livestock. The Israelities certainly could have killed the livestock and the 24,000 Midianites that they spared and enslaved.

However, if the whole point of the military enterprise was to “liberate” all of that wealth from the Midianities, then it would make no sense to simply abandon the livestock or set it free. So, the Israelites captured all of that livestock, plus all of that gold, plus the 24,000 virgin girls that they then distributed throughout the military and to the ruling caste of Levite priests.

Why form a military of 12,000 Israelite soldiers? Because they can pursue large-scale operations of piracy, pillaging, and enslavement.

Same as the Israelites did at the command of Moses… And same as the Brits, French, and Americans did when expanding the British drug cartel in to China.

Why did JP Morgan fund Trotsky and the Soviet “nationalization of private wealth?” It was the most profitable pillaging enterprise in Morgan’s career.

The creation of the USSR was a massive success from the perspective of the federal reserve and the US military-industrial complex. After a few decades of supporting our communist ally, we then changed policy.

When the Soviets had invaded Poland and then Germany responded by coming to the aid of Austria to meet the advancing soviet tanks, the German action was “spun” as an act of aggression. That justified the second US invasion of Europe.

The US and USSR split Berlin and Germany between them. Soon, the US and USSR were talked about as competitors (suddenly no longer allies)!

The USSR would invade somewhere that the US wanted to invade, so then the US would respond to “defend the innocent from the Soviet invaders.” Soon, the Soviets and Americans had colonized and split Korea, sections of Africa, Afghanistan, and so on.

If the Soviets set up a military base in one of their colonies, maybe they said “we are just going to keep these troops here briefly and then we will withdraw them as soon as the Iraqis can manage the situation on their own.” Or was that Japan? Or was that Chile? Or was that Panama? Or was that Nigeria or Libya or Syria or Ethiopia?

The partnership between the US and the USSR as “enemies” was a huge success. For whom? For oil companies. For international bankers. (Who own the oil cartel.)

For the Rockefellers and their collaborators, including Woodrow Wilson and FDR and Nixon and Bill Clinton and so on.

The amount of oil consumed by the US-USSR “colonial arms race” was massive.

And the amount of debt entered by governments across the planet was also massive. Power was further concentrated in the IMF and the Bank for International Settlements. The top leaders among the Zionists and the Catholic Militia orders and the free masons were all very enriched by the enterprise.

What Catholic militias and mafias do I mean? I could mean the Soveriegn Military Order of the Knights of Malta.

Note that what in the US is called the Post Master could be called in some other places the Post Magistrate or the Post Major or the Post Magi or the Postal Majesty or even just the Prime Minister of the Postal Ministry.

What organization is so powerful that it is part of the UN and has passports, but yet has no physical territory?

Mussolini: was he the one in charge or was he just a puppet? He is shown here wearing the medal of the Knights of Malta, indicating his submission to their collective operations, right?

That is not G.H.W. Bush in the left middle pic, but his son, G.W. Bush. However, the basic idea is still sound.

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