Amazing how much better the dollar is doing since the attack on Lebanon started.
I spoke today with an investor who has a portfolio positioned to Navigate a Falling Dollar. He has watched the dollar rise and precious metal prices fall when war and conflict in the Middle East worsen. He watched the same thing happen on the Tsunami and the aftermath of Disaster Capitalism in Indonesia. There were similar patterns in the aftermath of New Orleans.
At first, it would seem counter-intuitive — an increase in warfare and disasters precipitating a fall in gold prices before they head back up in their long term trend — albeit volatile —upwards. That is, until and unless you see a Tapeworm that is hungry for subsidy and using the supression of the gold price, non-accountable fiat currency, warfare and securities fraud to get it. In one sense, the dynamic is the logical extension of years of firing people and cutting their wages to generate a rise in stock prices. Popsicle Index down, Dow Jones up.
Cui bono, Lebanon? Answer that question and we may see how the current conflict serves global strategic interests, including a managed fall in the dollar in a rolling “pump and dump” pattern.
Remember always as you watch events the fundamental problem of the Tapeworm. A negative return on investment economy always needs more subsidy to prop it up. The problem is that the negativity of returns deepen over time. As injections are made to trick the system to feed the Tapeworm and subsidy is extracted, the fundamental productivity in the system decreases. Entropy rises. The healthy is eaten or learning to respond to the Tapeworm instead of doing what creates the wealth that is needed to sustain the system, let alone engorge the parasite. As the Tapeworm grows from its success in extracting subsidy, the need for subsidy increases. It keeps getting fatter. The subsidy demands grow at the same time that the availability of wealth steadily deteriorates — the system produces less per capita or per acre as the productivity and reserves decline. And so things worsen as the Tapeworm succeeds until one of two things happen — the host dies or the Tapeworm is expelled or shrunken.
If you understand the fundamental dynamic, then you see the opportunity. Reverse the process to a positive return on investment — one person, one family, one community, one enterprise, one industry at a time — and the conditions of abundance become possible. A critical question is how to do it in a way that is something other than generating more subsidy for the Tapeworm. This is why it is essential to withdraw our energy from the Tapeworm. Indeed, attract the cells of the Tapeworm back to investment in a positive return system and the process reverses in an exponential manner. Given the need to integrate complex and powerful technology to work in harmony with people and living things in order to make such a reversal possible, a far more spiritually and morally advanced culture and global investment model is required.
Doable? Yes. If you believe it is not, then the math is simple. The alternative is significant depopulation. If you watch the Tapeworm move into Tibet, into Rwanda, into Afghanistan, into Iraq, into East Timor, into the Gaza strip, into Lebanon — all likely financed by highly centralized financial interests — then you understand that what is happening is going to continue to happen until negative is transformed to positive. Events will progressively worsen as the rate of entropy grows.
When critics tell me that it is too much to ask of people to adopt a new investment model, I am not discouraged. Peter Medawar said it best, “What is relevant is what solves the problem. If we had thought through real relevancies, we would be on Sirius by now.” Or as I always say, “Nothing will change, until we change how money works.”
Understanding the process is incentive enough to Get Started With Coming Clean and Building Real Wealth. The more degrees of seperation between us and the entropy, the more our ability to thrive and survive gathers strength.