Let's talk a bit more about contractions. I would love to add a note of unique profundity to the discussion of the idea of contraction. I have skirted the idea a bit. What is the contraction? It is not, primarily, the creation of a void or an abyss. The contraction, of course, is about dehydration of the fruit. The anti-flood. The contraction is supposed to remove the flood waters from the world so the next planting season can come. Of course, the geniuses of monetary inflation (Greenspan, Bernanke, and all of their academic predecessors -- Keynes, and others -- do not seem to grasp this. The creators of the Flood don't fully comprehend that contractions precede births (and rebirths) -- and that rebirths cannot happen until contractions do their real work -- dry out the world (remember the story of Noah's flood): Noah needed dry land in order to begin the planting season -- and that re-births ALWAYS and EVER precede economic growth periods.
More liquidity is not the answer. Less liquidity -- higher interest rates -- are required to produce the contractions that produce dry land and a new planting season.
Contractions are painful. Why is this so? Because, quite simply, and quite graphically, contractions are the process by which the fruit at the top of the tree -- speaking metaphorically, the fruit signifying the apex of expansion, growth, inflation, in terms of wealth, power, the global economy, civilization, technological evolution, progress, male world domination -- transforms itself back into a seed.
It takes 18-years for the seed to open up and transform itself into a fruit (1983-2001; 1947-1965; 1911-1929); it also takes 18 years for the fruit to compact itself back into the seed (1929-1947; 1965-1983; 2001-2019) -- contraction back into the seed is accomplished by dehydration, by the abstraction of water, matter, debt, cheap money out of the world.
This process guarantees evolution. The seed is the latest version of the fruit in its miniaturized, compacted, next-generational form. But the seed needs darkness and rest in order to germinate. The seed begins where the last fruit left off.
Contractions are the compacting of the fruit back into he seed-form. Contractions also described the process of birth. Women have contractions before they give birth.
Central banks all over the world, whose religious quest and religious duty is interpreted to as a holy question to prevent contractions, are, unwittingly in large part, using all the money and power and means in their hands to keep creation from happening.
Debt is water: the fruit is the seed swollen with water.
The seed of the next generation of growth is the fruit in its waterless form: dehydrated. Contracted back to Ground Zero. Back to the ground. It has to be buried in the Earth. It does not grow in the air; neither can it grow in the water.
There is a message in this.
Continuing to water the Tree of Life when it has sunk beneath the sea created by cheap money does not make the growing season return. Austerity; aridity; dry land; a dehydration process -- this is what makes the Growing Season return. I am speaking metaphorically here; and one must read it with a metaphorical eye.
Contractions are not the enemy. Contractions are painful, but necessary.
If we -- America, Europe, Japan, China, the UK -- the world -- continue to add water to the Flood we will all drown in worthless money and we will all die a very slow death by drowning, as Japan is now doing.
We need wisdom; we do not need more technologically advanced academic solutions on how to defeat deflation. Deflation is contraction is dehydration is preparatory to Growth.
Deflation is the process by which the fruit is transformed back into the seed so that we can live by the organic process, which gives Nature Eternal Life.
Failure to understand this will kill the American Civilization and Empire, as it killed the Roman Empire.
Greed is a sin; and there is punishment for this. The punishment is contraction; and this is also a reward. Perpetual Greed brings the death of the civilization.
The 36-year Cycle is a gift from God: 18 years of Growth, followed by 18 years of preparation for Growth. Unless we follow this order (Summer followed by Winter; Day followed by Night) and allow contractions to fulfill their proper role in the order of things (the dehydration process), then, like Japan, our next 18-year cycle of Growth will be weak and unfulfilled -- and we will die a slow, agonizing deflationary death of drowning by a destroyed local currency and by unsustainable debt leading to bankruptcy, social chaos, and civil and world war.
CGTS, Hanoi, Vietnam