Hyperinflation then Deflation: Inevitable
posted on
Dec 19, 2009 04:57AM
Creating value through Exploration and Development in the Sierra Madre of Mexico
It's 3:56 am
Deflation is the natural culmination of all this. It is the death that must occur after every life. A better analogy would be that it is the death that must occur after every terminal lung cancer. The lungs started out young, pink, healthy, but through abuse and harmful behavior they became diseased then cancerous. The owner of these lungs is going to die. Indeed, he would die whether he had lung cancer or not, just a lot sooner with the lung cancer. But he doesn't want to die, and he wants to feel as good as he can for as long as he can as he tries to stave off the inevitable. The solution: Chemotherapy and lots of painkillers. Such methods will buy him time and comfort. They are the human effort to fight the inevitable forces of nature. A battle that will never be won, but that is still fought every day in every imaginable way.
So too is man's unwinnable battle against the inevitable forces of deflation by using inflation. This you must all understand. Inflation is a man-made aberration adding disorder to an otherwise orderly system. Deflation is the natural function of the system. Inflation is the furnace. Deflation is the winter. No one wants to freeze to death just as no one wants to die, but one day all of us will be both dead and cold, no matter how badly we don't want to be.
There is no choice for those in charge of the Federal Reserve. They are too used to screwing around with the natural order to sit back and let nature take its course. They are going to lose, but have no option but to go down fighting. Its their own private version of the Alamo. There's really nowhere to go and hide at this point. There's no way to win, so now it's all about "honor" and trying to go out in as big a blaze of glory as possible. There is no option but to inflate. How can anyone who understands the way the human mind operates not understand that this is what is going to occur? It's not about logic. It's about ego. These guys can't quit now, so all that's left to do is weld themselves into their cockpits and head off on a kamikaze mission hoping that somehow they might just live forever. Sound crazy. It is! Now if you'll excuse me, I have a paraplegic in Room 2 with constipation. You think you have problems! Bull