Posted Oct 4, 2013 by Martin Armstrong
It is time we stop taking Prozac to make it appear normal. The more things change, the more they very much remain the same. There are trends that exist in everything. There have been discoveries such as the Cocaine Mummies of Egypt that demonstrate the history of humankind has been created within prejudices that bind our realities. Pre-Columbian trans-oceanic contact is highly debated with academia simply refusing to accept any such evidence.
There is the story of Heinrich Schliemann (1822–1890) who challenged academia who pronounced that Homer was fiction – a story for children. When he discovered Troy and took a picture of his wife wearing the jewels of Helen, they accused him of fraud.
Then there was the Historia Augusta, a book written recording Roman emperors of the 3rd century that academia declared was a fake because they never heard of these people. Only when a coin was discovered with the name Saturninus did it prove they were wrong.
Then there have been books published that challenge the perceptions of history that have also been constrained by academics. Forbidden Archeology that was made into a TV special provoked Academia to demand the show be taken off the air because it exposed how wrong they truly were. Anything that did not fit their perceived world was kept in a drawer as far away from the box they displayed to the public.
Economics is no different. The accounting system is fatally flawed because it was based on Bretton Woods and assumed since money was of a fixed value, it did not require someone at the dock to count the number of Toyota cars being unloaded. Just measure the dollars and if you spent more, you bought more. India is blowing itself up because it does not understand that a current account deficit caused by asset purchases such as gold does not mean it is a “trade” deficit with consumers just throwing money away.
Likewise, foreign capital can flow in creating domestic inflation because they increase the local money supply. We will see real estate peak in Switzerland and Singapore with a bust coming on the next cycle 2015.75 for these have been 26 year cycles due to peak.
We now play with statistics to pretend that socialism still works. We are chaining inflation to control deficits because government borrow every year with no intention of every paying anything off. This is just subsidizing the banking industry – they regular welfare check.
We simply have to understand that the entire way we look at the world economically is SERIOUSLY WRONG! In the ’60s people took acid to make the world look weird. Now the world is weird and people take Prozac to make it appear normal.