Posted May 18, 2013 by Martin Armstrong
Well that post has brought tons of emails from those in the engineering world. Glad the light has gone off. We need to turn it on in government. One comment wrote:
- When you discuss containing velocity of the markets and changing the velocity do you refer to increasing the speed of the implosion and or explosion of inflation and deflation resulting in stagflation? Is the change in velocity similar to thermodynamics where you can change the thermo velocity in order to contain and control the convaluting wave of inflation and deflation and its extreme thermal effects?
- What you have achieved is testament to us all your continual pursuit of answers and truth whilst harnessing that internal fire regardless. Truly your knowledge, understanding and interpretation which has developed cycle theory and resulted in the creation of the ECM is monumental and will inevitably reverberate in time incandescently. It would be a great honour to partake in your new operation in Switzerland in any capacity, whilst being able to stimulate my mental yearning and learn as much as possible.
The hallmark of a Dark Age is the collapse in the velocity of money. It is more than reserve banking which increases the velocity of money. The greater the confidence that the future is bright the less you save and the faster you spend. That increases the velocity. As confidence declines, concern about the future increases, so you save more decreasing velocity. Everything complies with the laws of nature (physics). Only a fool (government) thinks they can alter the course of society to reshape it to conform to what they think would be better. Marxism was all about eliminating the velocity of money by taking money away from the people. This is why the greater the tax burden, the lower the economic growth because it too reduces the velocity of money.
Markets decline not because of external factors, conspiracies, or manipulations. Those types of external factors can NEVER change trend, but merely increase the VELOCITY of that market leading to VOLATILITY be creating confusion. Changes in TREND takes place ONLY from internal conditions – never external. This is why changing the systemic structure of the economy (taxation i.e.) is so dangerous because it changes the internal mechanism that propels the economy.
Hold you arm straight up in the air. Not a hard thing to do for most people. Now keep it there. Suddenly your arm will grow heavy and you will run out of energy to sustain that simple exercise. There is no external force that will compel you to lower your arm other than gravity. Nobody else has to push your arm down. It does not take a strong wind. Yes those things could happen, but you would still have the energy to fight back. Yet, without those external factors, your arm will grow heavy in and of itself and you will collapse lacking the strength to sustain the simple act of keeping your arm in the air. Gravity will win.
Just as there cannot be a perpetual motion without end, no system is sustainable regardless if we are talking about the sun eventually running out of fuel and dying, holding your arm straight up in the air, or keeping a market perpetually rising. The market must collapse, regroup, and in the process rejuvenate itself for the next rally. Japan created a 23 year Long Depression by trying to prevent the decline. Gravity won. This is not the result of manipulation or conspiracy. The sooner we learn these basic principles, we can progress to the next journey of knowledge as a society. Unless we learn to live with the cycles, compensate for them, and move on, we will be like a broken record stuck in the same grove repeating the same thing over and over again eternally. It is like Joseph in the Bible warning there will be 7 years or plenty and 7 years of drought. Eliminate the cycle and you kill the very essence of life like the White Earth Effect.
It took man centuries to admit the world was not flat against rational explanations that if it were a ball, how could you possibly stand upside down? Surely you would fall off! Well understanding that ALL energy moves in a cyclical manner is the same thing. Stop the Salem witch hunts. If we could just grasp this understanding, guess what? We end this stupid government attempts to manipulate society that only aggravates the system and destroys our future, and then they go lock up the people and blame them for what they themselves are causing. The definition of insanity is doing the same thing repeatedly and expecting a different result. Hello! Anyone reading history lately?