who can we blame for the crisis

who can we blame for the crisis in global finance
(and for any crisis in the personal finances of many of us who are disappointed with the results we have produced with our prior strategies of time management, investing, etc)?

How about Obama? How about my ex? How about the Federal Reserve? How about Hitler? How about Santa Claus?

A correspondent (whose name I will gladly acknowledge if she permits/requests that I do) wrote this:

Well, the international “finance” capital of the world – Dubai – is having trouble paying its bills. Thirty-five of fifty states have yet to balance their budgets for this fiscal year. Twenty-three percent of US homeowners owe more on their mortgages than their homes are presently worth. It seems our world is awash in unpayable debts…. At some point we’ll realize the fault lies in a monetary system based entirely on the accumulation of debt.

[she wrote more, but let’s start with that.]

I notice this kind of commentary- especially that last part- frequently. In fact, about 7 years ago, I said things pretty close to that myself as I made my first public predictions of a global credit crisis- but I said more than just that, and then added and edited my wordings over the years.

So, here is my reply to her:

you are still talking the talk of fault (blame, condemnation). However, I am going to go with that for a moment.

But is the fault the Fed’s alone? Ron Paulmight suggest that, but then again… he is overtly part of the establishment, right? He’s an agent provocateur- at least functionally- and it all comes down to this: “we do not control what the people think, but only what they

Ron Paul, member of the United States House of...

Image via Wikipedia

think about!”

But is it even possible that the fault is the Fed’s alone? After all, it is the mainstream Americans who participate in the system as well as the Bank For International Settlements (www.bis.org) at the hub of the cartel of central banks throughout the world. It’s not a national issue (or not just that)….

And, as I have been saying with potentially nauseating repetition for the last 7 years, it does not matter what the source of the so-called problem is (or is what is happening now the solution?), but how soon we are motivated even to make personal adjustments in alignment with the clearly immense changes already evident obviously- rather than (1) ignoring it- either not noticing or just hoping it will go away- or (2) attacking it, resisting it, fixing it (or speculating about how SOMEONE “should” fix it- as in someone ELSE), and perhaps even asking (demanding?) that governments rescue or bail us out from it (rather like the Japanese have been vainly doing for two decades now?), and basically anything and everything besides… just personally adjusting!

So, while I agree with Suzi and Rhonda [other correspondents who commented on what for now I will call consumerism and spiritual ignorance] and while I also agree in many ways with [the original author], a more functional, practical definition of the problem- like as one’s own personal problem- is this: “Aha, I notice rather suddenly and with perhaps rather unpleasant surprise that I may not have been investing/organizing my finances in accord with what works well, like sustainably- At least NOT YET. Sure, I may have had some emotional reactions against it, and that was what it was… so now there is facing the reality of any anxiety under the prior angst and anger… and allowing fear to be a channel through which courage is moving me with determination into new prudent action!”

For more on the specific details of the changes underway and personal adjustments to make (from someone who predicted all of the major changes of the last several years- me), see

For more on the general principle of acceptance as key to aligning harmoniously (including profiting with) the changing world, see:

Now, here is more of what the original author had written, read in the light of what I mentioned above:

…At some point we’ll realize the fault lies in a monetary system based entirely on the accumulation of debt. Every dollar printed, as well as every dollar lent to us by a bank, is a dollar that was invented solely to generate more debt. All printed dollars are debts of the US treasury (i.e. the American people) and all bank-created electronic … dollars are debts of the borrowers (i.e.: the American people.)

The only ones getting wealthy in this system were the bankers, until – like in Monopoly – they bankrupted most of the players and found themselves unable to collect the rents anymore from the folks who were landing on their properties. They then screamed about how dangerous it was for them not to be able to collect, so we gave them even more money to reset the game. Now our debt grows exponentially larger and our ability to pay it has declined accordingly. Looks like the Ponzi scheme is about to explode.

Money, in its original format, was meant to facilitate the exchange of human creativity, not hinder it. By making money deliberately scarce, in order for it to become what we individually strive to attain (instead of a mere tool we use to achieve what society has decided is important to accomplish) was our major error.

And here is my reply more specific to her framing of the issues above:

By the way, the inflationary financial bubble did not make money scarce. That is like saying that a downpour of raindrops can make something dry.

The problem is not the bubble either, but that people have been valuing debt contracts payable in actual cash (AKA accounts receivable) as EQUIVALENT to the same amount of cash. (That is like saying that cloudy skies are the same as rain.)

In other words, an over-inflated unsustainable bubble of abundant credit MUST deflate (which appears to be cash getting scarce, when in fact there is actually quite a bit of cash, but people had been discounting the value of it, and now that error is being corrected abruptly, as in by the activities of bankruptcy courts). Yes, that deflationary collapse of the bubble/balloon produces a huge shift of ownership away from debtors to lenders. Yes, that shift may be the specific design of the system. What if it is?

Adjust now. Not eventually. Not maybe. ASAP. (ASAP means right now!)

If you’d like to reach me to find out how I have been helping people adjust, my email address is 144jr144 (at gmail.com).

5 Responses to “who can we blame for the crisis”

  1. jrfibonacci Says:

    LG wrote:

    ah yes but many have many cars, boats, snowmobiles, jetskis and much more they owe on and they don’t need these toys but they can’t let go because they think it is humiliating and so much was bought by people without thinking for so long and they have so much to lose now that it is a nightmare just to get past the crap and back to basic essentials … See Morebut they can’t let go because their existance it tied up to owning more than the guy next door but the guy next door doesn’t care but his brother might so but he doesn’t and it is so hard to remember we can not take this shit with us when we pass and just what is life all about anyway….stuff….stuff brings bondage too much stuff has really screwed everything up

    JR replies:

    …blame the stuff? You are joking, right? Like, “SOS: our planet has been invaded by things we humans made; can someone please come help?”

    People can let go and do. Some file bankruptcy voluntarily.

    (I have worked in a law firm specializing in bankruptcy, plus I know LOTS of other people who have filed bankruptcy or are considering it now- and you may know a lot more than you think. Because of my field, people volunteer info about their own past bankruptcies that they would not confide in most people. I know data compiled by Harvard professor Elizabeth Warren indicating that more children in the US were in households that filed bankruptcy in recent years than filed divorce.) … See More

    Some people even sell near peak prices and “make a killing” benefiting, from the exact same changes that may be deemed a “surprise” by the mainstream, given that they may have been naively gambling, trusting people who were incompetent or untrustworthy (assuming that those two terms are not entirely redundant).

    Some may only let go when the armed deputies/soldiers/thugs come over and announce “if you do not step away from the jetski/home/child that we are taking with us and is no longer yours, we will draw our guns (which have bullets in them, by the way), and we are not going to explain this twice. Slowly step away now- as in right now. We have dozens of these to do today!”

    By the way, I do not use the terms “thugs” out of any disrespect for cops or infantry, but nor any disrespect to the mafia, crips and bloods, and so on. From the perspective of the creditor collecting the claimed property, all forms of infantry are ultimately just mercenaries.

    Again, I’ve been on lots of sides of these equations, working in a law firm, being arrested and jailed, having a home foreclose in the early part of this decade, etc etc etc.

    I detail that and more here:

  2. jrfibonacci Says:


    Ive a few thoughts on your most recent blog.

    first off this one made a lot of sense to me.

    “The only ones getting wealthy in this system were the bankers, until – like in Monopoly – they bankrupted most of the players and found themselves unable to collect the rents anymore from the folks who were landing on their properties.”

    JR replies:

    1) That was written by W.E., not me. I think of it a bit differently.

    Think about the old question: “who benefits?” The whole point of inflation was deflation: the deflationary concentration of resources away from debtors to creditors. That is, the whole point of deflation was to go from sharing half the equity in residential or commercial real estate (with the creditors and borrowers splitting, for sake of argument the total value into two equal halves) to the creditor owning the entire thing- and yes they also got all the rent/mortgage payments and interest up to then, but the big issue is that a concentration of creditors quickly can own instead of 20% of the real estate in a country, 80%- like within months. That is what deflation can do. In fact, from a strategic perspective, that is precisely what deflation is for (how it can be used to concentrate immense economic benefit to a few parties).

    Not collecting “rents” is the whole point of the mortgage contracts. They get to keep all thei prior “rent,” take the real estate, plus, if the debtor stills owes beyond the amount of the mortgage, then the creditor still has a legal claim against all other assets (retirement savings, cars, revenues) of the debtor. The debtor is still the debtor until the whole debt is paid (or discharged). People do not understand the terms of their mortgage contracts. They have been “playing with fire.” They may be about to find out- “we ain’t seen nothing yet.”

    back to JE:

    it would seem to me that it was planned to shift all ownership back to the banks..this would eventually turn us into a 3rd world country would it not.

    They have slowly been eliminating the middle class.

    JR: exactly- except that is equally valid to say that the middle class has been investing in their own bankruptcy, committing suicide, turning the industrialized nations into 2nd world countries (not so much 3rd world, realistically). 😉

    Back to JE:

    Would it be insane to think that the goal is to bring everyone to the same poverty level across the world and then to introduce a global currency?

    JR replies: If so, then you would have been calling most of the last 7 years of my publications “insane.”

    In 2003, my writing seemed ridiculous to many. By 2004 and 2005, perhaps less so. By 2006, “too true to be good.” By 2007 and 2008 “let’s hope that he was only right by a fluke, while we argue against him in vain.” Oh hell, let’s toss “all of 2009 so far” into that same category as well.

    JE: The middle class still have a little bit of power and so by eliminating them we have the richest of the rich vs the poorest of the poor, with no in between.

    JR: the middle class have a huge amount of power as of today. They are just throwing it away in most cases. They are abdicating by default (inaction- or merely complaining, whining, trying to fix things as if something is wrong with the way it is, rather than just personally adjusting).

    I am not a cynic about political re-organization, but (IMO) a realist. It will have to hurt really really bad before most people will accept responsibility and shift gears- though I could be wrong, but I do not think that a smooth revolution is about to happen. That would be kind of cool though. However, if that happened- like if the BIS and Fed disappeared tomorrow, that actually would not improve the situation in any fundamental way. We’d have chaos. The two most obvious possibilities I see are various forms of totalitarianism (my bet) or a systemic collapse (much more likely years or decades away) in which we have relative anarchy.

    My forecast- and this includes a lot of intuition rather than the hard numbers of so many of my forecasts- is that the currency system is quite stable (the governments) and that the financial system will collapse (deflate) and the middle class will largely disappear. NETWORKS of technology and consciousness will flourish “over” the totalitarian” systems in which the masses will be chipped and warehoused, more or less. (That is, the government will own all the property- or at least manage it all- and those who are antagonistic and/or desperate will be targeted for “swift justice” – and I will leave the details of that term to your imagination.)

    Those networks will eventually establish a radically different, non-central global government. That is only available today because of technology. A central global government is also what will appear over the masses, but- perhaps after an excruciating depopulation, a true “golden age” is available. The “black death” in europe led to the renaissance. A deflationary collapse of the middle class could go rather smoothly- especially with the technology of chips- but vanity and ego will get a more Clockwork Orange or 1984/Room 101 type of “correction.” Odd- that we call it the correctional system, huh? Rather like the re-education camps of USSR- though in a few countries, like Sweden (if I recall rightly), prisons are rather like monasteries or even universities- but that takes public support (such as the continuing existence of a middle class that supports such programs).

    Transitionally, it could be messy. Unless people like you and I are willing to serve, humanity may even face extinction. 😉

    it is not Obama that bothers me, it’s that slowly over time the powers that be have been trying to strip at our belief that there is a divine power that is greater then all of us. How much more will they try to take from us?! If they slowly brain wash us to no longer look to God as inspiration…

    then what…so many are quick to dismiss what they believe in because someone else said it no longer matters.

    Consider it all an instance of reverse psychology. “Do not believe in a God that is greater than each of us but within all of us and much greater than all of humanity itself” is still pointing to the possibility that the syntax also negates. That is, the presence of the word “not” is functionally irrelevant (“do not think of pink elephants”), except that reverse psychology tends to get people into dialogue in a way that a positive dictate might not…

  3. JE Says:

    What do you offer as a salution to this maddness?

    • jrfibonacci Says:

      Fist, I offer clarity and calm, which can be contagious even without understanding it. “It” may be mad, but we can rest at the eye of the storm/hurricane/needle?)

      Second, I offer services regarding what I sent you already:

      Re-organize finances for a future of prosperity and leadership and service (or other words you like)

      A) invest wisely (sell things that are losing value, unless a direct instrument of production- such as a truck for a truck driver and invest in CASH or things that are much better than cash in a deflation- see me for details).

      B) protect everything from tax and/or court liability (again, see me)

      C) aggressively settle any unsecured debt (or at least consider it- some people are better off just filing bankruptcy before those bankruptcy laws are dramatically revised again)

      Is all of that generally clear? By the way, thank you for asking!

  4. jrfibonacci Says:

    add’l reply from JR to Nico: (whose message is not pasted here):

    re: blaming Goldman Sachs, the SEC, those darn corrupt CEOs, etc….

    The “sad” truth is that the middle classes of the industrialized nations are getting exactly what they invested in. Investors relied on CEOs and courts and the SEC naively. No, it’s not a few CEOs. It;’s systemic. It always has been. Now people are finding out and may think that it is new. What if it isn’t?

    The idea that the greed of the top folks is the only greed in the system is… exactly what a forecaster of negative social mood(like myself) would expect to be popular, but I have no emotion to it. Folks may be guilty about their own greed, which is why they invested so unconservatively, ignoring the actual business of the companies they invested in. They just bought mutual funds and ignored the rest. They did not get IBM or GM or GE because they respected the way the company did business and accepted responsibility for holding the CEOs accountable to the share holders like they would read the proposals and care… or act based on new polices. Investors ignore the policies of the companies they own. They even ignore the finances of the companies they own. That is the only way to be surprised when those companies file bankruptcy.

    Isn’t that odd- that people invested $10,000 or $100,000 in a company would be surprised to find that it just filed bankruptcy? They were paying that little attention to the operations of that business?

    Yes, generally speaking. Now they are mad to find out the consequences of their prior negligence. It’s like being pissed off that I ran out of gas- let’s see, who can I be pissed off about this? Of course, it is not quite like that, but you might as well be pissed off about the fact that your car cannot float or fit in an elevator.

    Nope, what isn’t just isn’t. Only what is actually is. Now you know. Man, life sure has offended me personally again, huh? Should we be pissed at the termites for eating up our house? We were responsible for keeping it sturdy. We did not. Yes, we trusted the “top dogs” of the financial system, but maybe that is only because we were stupid.

    If you want to gather all the top dogs and shoot em dead, then take their assets and donate them to your church or school district, fine. Just no need to be pissy about it. Yeah, they are crooks. I guess the twist is that many people just found that out… and may be unconsciously GUILTY as hell for having supported those operations for so long.

    Yes, investors in some cases may have definitely been screwed, and then investing in getting screwed more. But it is not like the American Empire has not been exploiting other countries for… EVER. We just do not like to admit what we have done to Africa, South America, and Southeast Asia, etc…. “We’re saints, right? Not according to that info/author? Oh, well then… I DO NOT WANT TO KNOW ABOUT THAT!!!”

    Why isn’t Chomsky a household name in the US? I think of that Jack Nicolaus character from the movie “a few good men:” “You want to know what? The truth? Well, you can’t handle the truth!”

    The middle classes are afraid and, further, they are afraid of being afraid (that is, they are ashamed and paranoid), and so anger is the next stage. Eventually, any value derived from the anger may be fulfilled and people will shift from casting blame to taking personal responsibility. You can trust me on that. Or, if you prefer, don’t! 😉

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