My conspiracy theory on the collapsing economy.Submitted by Kevin Tuma on Thu, 02/26/2009 - 09:58
I don't believe it's about a "prison planet" or empire. There may be a new war in our future, since Obama is being painted as the 'new FDR', but I don't think that's the big goal.
I also don't believe it's about robber baronism and the Rich eating each other. That's definitely happening, but it's a sidebar to everything else.
I do think a global banking empire may be pushed---but, again, I think that it's a sideline plan being floated, not the real goal.
If this is really an engineered crisis, in my opinion, the real goal is for the filthy rich to become astronomically, exponentially rich.
Hyperinflation favors the people with a lot of money, depending upon their investments.
You see, the very rich will not have trouble getting by. They have hardened investments and extra money to invest in new things. Like land. Like devalued real estate and homes in the aftermath of a bubble pop. They can afford to buy more. Especially if they know how the cards will fall on the table, in advance.
If you have debts or mortgages, and hyperinflation devalues the currency, it will simultaneously devalue the debts, unless you have something foolish like a balloon-head mortgage. As long as you can pay the debts, in a hyperinflationary crisis, you can win big.
Bear in mind, also, that one of their primary 'solutions' to our economic woes have been to lower interest rates to ridiculous levels. This favors investing in mortgages.
Imagine if you will, that in the past year, the elites have been buying a lot of real estate after the bubble pop. On mortgages and credit.
Suddenly, paper money that's needed to finance deficit spending and bailouts floods the economy. Suppose the economy "recovers", but with a huge massive spike in the rate of inflation. Perhaps, let's say, as much as 500% by the time a real recovery occurs, and gold-backed currency is reinstated.
The real estate investors will have made a fortune.
Imagine it just using your own level of budget, as a member of the middle class:
Suppose you bought a five-bedroom suburban repo home for $75,000. It's already a bargain, because it's distressed real estate. You'll make 30-year mortgage payments with a final payment on it of, after miscellaneous costs...around $600 per month.
Let's say we go through a three year period of turmoil caused by the Fed's Zimbabwe-style hyperinflation, and at the end of the cycle, they finally stabilize the currency with gold, so the inflation they generated does not spin completely out of control.
After the hyperinflation wave ends:
-- A can of Campbell's vegetable soup costs $7.
- A 'Jumbo Jack with cheese' value meal costs $12.
- a loaf of wheat bread costs $13.
- a gallon of milk costs $18.
- A steak dinner for two at a suburban restaurant costs $350.
- A Smith and Wesson revolver costs $3500.
- A new pickup truck, with no fancy extras, costs $120,000.
- A new five-bedroom suburban home costs $900,000.
But you just bought a new five bedroom home a couple of years ago for $75,000.
You can sell it, or you can rent it to tenants. Either way, you have achieved massive profits.
Now imagine that you are a billionaire, and you bought thousands of such homes in trendy areas, along with Florida beachfront property, hundreds of collapsing apartment buildings, hotels, restaurants, and dead retail malls.
On each of them, the combination of 500% inflation PLUS a collapsing real estate bubble has caused each property to rebound to a minimum of ten to twelve times its original value. In just a few years.
That's if the hyperinflationary wave stops at 500%...I just pulled that number out of the air.