1 – The Slow Burn – 2013 Wrap-Up

The Slow Burn Wins Again

The US Federal Reserve continued Quanitative Easing throughout 2013,
buying up and – I believe – shredding the fraudulent mortgage
and treasury securities still outstanding after $27 trillion of bailouts.
With the bank balance sheets cleaned of the fraudulent paper which financed
it, the trail on the financial coup d’etat went cold. Mr. Global
declared a quiet success.

I estimate that more than $40 trillion was shifted out of US government
entities, pension funds and households between 1995 and 2008 – much
of it by illegal means. That amount is in addition to what has been shifted
out through the Black Budget and the Exchange Stabalization Fund in terms
of technology, financial resources and leverage between 1947-1995.

This is the funding for what Richard Dolan and Joseph Farrell refer to
as “The
Breakaway Civilization

Indeed, the amount of money that has been shifted out is sufficient to
create an endowment that can generate dividends and interest sufficient
to finance a US or global government on a private basis. Five percent
current income on $40 trillion a year = $2 trillion.

Throughout the alternative media, financial
commentators have been assessing the remaining shortfall of assets in
pension funds and government entities when compared to their debt and
retirement obligations. We are told that we are bankrupt – that
things are about to collapse.

That is not the case. The systems that are obligated to pay retirement
benefits and health care have shortfalls – some significant and
some not, but the hype continues to say they are.

Solari Reports on this

  • Derivatives
    101: Engineering The Slow Burn
  • 2nd
    Quarter 2009: Surfing the Slow Burn
  • Volatility
    of Stocks vs. Bonds
  • Secular
    Trends in the US Equity Markets
  • 2013
    3rd Quarter Wrap Up
  • Articles & Blog Posts
    on this Topic

  • The
    Slow Burn
  • Lorre
    Explains the Slow Burn
  • That puts Mr. Global as the winner of the financial coup in a control
    position. $1.00 of promises are competing for $0.60 of assets and everyone
    has to suck up to Mr. Global in the process of winning some or all of
    that $0.60.

    Debt is a control system.

    The funds shifted out of the old industrial model – let’s
    call it Global 2.0 which has been centered in the developed world of
    North America, Europe and Japan – the G-7) are being reinvested
    in Global 3.0.
    This includes the development of domestic oil and gas reserves in North
    America, the reengineering and renaissance of the North American manufacturing
    base and the capitalization of a private space industry and network
    of spaceports throughout North America. It also includes an explosion
    of new funding and activity in Silicon Valley.

    Global 3.0 is booming. Global 2.0 is downshifting as it uses debasement
    and debt to continue to slowly deflate the value of most labor and related
    health care and retirement benefits. The federal budget and black budget
    intersect as Mr. Global continues to shift overt and covert assets from
    2.0 to 3.0.

    In short, we took the assets promised to the baby boomers for their
    retirement and shifted them out to invest in the emerging markets, in
    new technology and space. The wealth to be created from abrogating and
    debasing obligations for reinvestment in higher margin economic activities
    and rebalancing the global economy is a significant contributor to keeping
    the economy going and keeping the Anglo-American alliance in a dominant
    global position.

    Think of this as the reengineering of global
    governance on the “just do it method.”

    The money stolen is being reinvested and the high tech work force leading
    that effort is profiting and spending. A significant portion of the
    population, however, has been “left behind.” You can see
    the impact when you compare the performance of the consumer discretionary
    stocks with the consumer staple stocks this year.

    Predictions of collapse or hyperinflation reflect a profound naiveté
    about the black budget, the covert economy and the train tracks of control
    that keep the slow burn burning along.

    We said in the 2012 Annual Report that the chance that the Slow Burn
    would continue throughout 2013 was 75%. The reason my prediction was
    not higher was that significant fraudulent securities were still outstanding
    and the management of the interest rate swaps issued to keep interest
    rates down were (and are) still plaguing the financial systems.

    Not only did the Slow Burn continue, but it displayed unprecedented
    strength as the reinvestment in 3.0 kicked in and the leadership enjoyed
    the reduction of personal and corporate liabilities with Federal settlements
    and Fed shredding parties, as statue of limitations were reached on
    trillions of financial fraud. The winners of the financial coup are
    feeling their oats.

    Moving forward, there are significant risks on the horizon, but the
    forces powering the Slow Burn are stronger than ever. I give the Slow
    Burn an 80% chance of continuing throughout 2014.