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The Economic Fractalist
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  • Saturation Economics: The Last Fractal? 13-14/29-30/27-28/14-21 days? 0 comments
    May 17, 2010 9:52 PM
    Saturation Economics: 'The Last Fractal' Series for the Wilshire, FTSE, and NIKKEI: 13-14/29-30/27-28/21 days? The Real Economy Verses the Central Bank's Fiat Economy

    What happens to the real economy of the private sector when the public-government-central-bank sector makes profit and efficiency a mute issue by printing money that primarily supports the public sector and financial sector and by way of fiat and its inbred thought process, the entire system?  While private individual debt must always be repaid to bankers or the financial trust and individuals suffer loss of asset wealth, home, and family wherewithal - public sector debt, financial institutional debt, and public entitlements  are inflationarily fulfilled by limitless borrowed, never to be repaid ex nihilo money creation  or outright rebankrolling by in the truest sense of the 'Parker Brother's' word, a 'monopoly' bank.

    In the scenario without the monopoly bank, the entire economy undergoes catastrophic deflationary collapse and reboots itself with turbulent agony and with perhaps Adam Smith phoenix from the ashes characteristics and the potential for a real economic fresh start.  In the scenario with the monopoly bank, the public sector  demoralizes, disincentivises,  demobilizes, and withers the real substantial job producing private sector and its silly and futile profit motive in a contrived fiat economy that rewards money changers, and fiat money and fiat economy manipulators.

    This is the world of GS-affiliated central banks and governments and not of Adam Smith. And monopoly monetization will be the path the world central governments and central banks take.  Nevertheless, even in this Alice in Wonderland hybrid economy, there are limits to the valuation saturation growth of derivative assets such as the electronic markers for companies and commodities - even at extreme speculative malinvestment zero interest rates.
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