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IPFS News Link • Economy - Economics USA

A Tale of Two Crashes, Part 1

• http://www.zerohedge.com

By now, regular readers are familiar with the eight-year, bubble-and-crash cycles in our markets and economies which are manufactured by the crime syndicate known as "the One Bank." The reason the cycles are roughly eight years long has also been explained: to coincide with the U.S. political cycle, and the rotation of its two puppet parties.

With the last crash being the almost-terminal Crash of '08, readers have been warned on many occasions that the Next Crash is scheduled for this year. With that manufactured collapse now being only a few months (weeks? days?) away, it is instructive to compare these two cycles of financial crime.

The analysis of patterns can yield insights in two opposing manners. Value can be gleaned in looking at how these repeating cycles are the same, but perhaps more revealing is how and why they differ. In this particular piece, the focus will be on (hard) commodity prices in each of these cycles, and how and why the bubble-and-crash pattern have been significantly different in this respect.

Most readers will recall the spiral in prices which occurred in nearly all commodity markets – hard and soft – right up to the eve of the Crash of '08, as seen in the table above. This analysis will examine strictly hard commodity prices, since soft commodity markets (and their prices) are affected by several other variables totally outside the economic cycle.

There were two reasons for the spiral in commodity prices which occurred leading into the Crash of '08, but only one of those reasons is ever discussed by corporate media. The known reason is a massive spike in global demand, the catalyst for which being the rapid industrialization of "BRICS" nations, as well as a number of other, so-called "Emerging Market" economies.

The rapid dilution/debasement of the world's paper currencies, especially in the West, has been hidden from us. These corrupt regimes have had the audacity to refer to this destruction of our currencies as"competitive devaluation" – a race to see which central bank can destroy its own currency first.

The concept of "dilution" is well understood in the corporate world, when it comes to the paper instrument known as "stock." When a corporation prints more stock, (all other things being equal) it thus dilutes its share structure, and all shares lose value.

Incredibly, the concept of dilution is virtually entirely unknown with respect to the paper instrument known as "currency," despite the fact that the principal of dilution applies in an identical manner. When a government (via its central bank) creates more currency, all existing currency loses value. This is the true meaning, and correct definition of the term "inflation."


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