Unintended Consequences – Turning Japanese – Part One


Unintended Consequences – Of economic policy – Part One


The butterfly has wings

The role of an economist – Art of predicting the cause and effect – in an economy.

I am standing at the edge of the abyss!

I don’t like the feeling one little bit!


We missed the global defining moment on the financial collapse – through the postponement of the interest rate increases – by not only the U.S. through Yellen – but also the UK with Carney and the Bank of England dribbling on the subject – both postponing increases – as both countries indulged with spending more.

So – who would have thought?

If one looks at the external influences on Yellen over the past 12 months – one sees a myriad of comments – all designed to forestall the misadventures of all countries in their quagmire of debts.

The ‘wicked witch’ let her feelings be known in June, July, August, September, October, November, December 2015 and January 2016.

AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)

From the Guardian June 2015 On Tuesday, the IMF said “growth could be significantly debilitated” by another rise in the dollar. Barring a major change in circumstances, the organisation urged keeping rates at the current 0.25% “into the first half of 2016 with a gradual rise in the federal funds rate thereafter”.

Well – June was the perfect opportunity to increase the interest rates and I assume that China and Saudi Arabia – during their visit to the U.S. in September – were as vocal in their private meetings with the Fed.
Then we have World Banks intervention in September 2015

From the FT. The US Federal Reserve risks triggering “panic and turmoil” in emerging markets if it opts to raise rates at its September meeting and should hold fire until the global economy is on a surer footing, the World Bank’s chief economist has warned.

And we still have authorities in the global economy dictating U.S. policy visa vee the geni-arse on monetary authority trying to set policy.



Larry Summers on CBNC “I’ve thought consistently that it was not a confident bet that the economy could withstand four rate increases this year, and continue to growth robustly and continue to provide support for a very weak global economy,” Summers said. “Certainly the way markets have moved this year has done nothing but support the view.”

So everyone (in the know) are fully aware of what ‘will’ happen should the increase in interest rates continue to be implemented in the U.S. and to a lesser extent in the U.K.

Yet has any country actually addressed their problems?

We all know the answer – and we know the reason for the delay that has forestalled emerging countries grief for the short term – and a sovereign debt collapse through rising interest rates – however the pressure behind the financial tsunami is exerting far greater force now – in concert with additional global problems surfacing rapidly since September.

Bloomberg has reported that – “Federal Reserve officials left interest rates unchanged and said they still expect to raise borrowing costs at a “gradual” pace while watching to see how the global economy and markets impact the U.S. outlook.”




Now can no one see the problems that have developed – through the Fed Reserves procrastinations?

“The Federal Open Market Committee is “closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook,” the central bank said in a statement Wednesday following a two-day meeting in Washington.



We are turning Japanese – globally.

Debt has its boundaries – if the world leaders are content with continuing with the low interest rate policies – then the history of Japan’s economic malaise – for the last 25 years – will be future.

Japan has been stagnant since 1989 – deflation has gripped the economy through the inane debt policies associated with crony capitalism – insider dealing – and an elite – that serves itself and its friends first and foremost – these actions were assumed by the U.S. Federal Reserve with Bernanke’s actions – in 2007 – and then perpetuated by the global central bankers thereafter.

Consumers were the ultimate beneficiary of low interest rates – to gorge themselves on debt – the problem is deflation and stagnant wages – a saturation point on debts – which must be repaid which only compounds the problem further.

Foreign investors have lost faith in Abenomics and the bastardized Keynesian policy implemented and favored by Krugman – Abe has no strategy – other than to roll out more stimulus plans and hand more money to Japanese banks and corporations – and have the Bank of Japan buy all of the debt supporting these plans – while buying stocks in Japan and the bonds in the U.S. for good measure.

Foreign investors are fleeing.

Now the butterfly does have wings – the global capital investment – needs to earn income – all countries globally have a huge problem of – deflation – ‘negative inflation’ – this happens when prices fall because the supply of goods is higher than the demand for those goods.



The cause is usually attributed to the reduction of money – credit or consumer spending.

In this instance the fall into negative inflation by countries can be attributed to debt.

So where will capital flee to avoid negative interest rates – currency debasement – and a deflationary environment?


No guessing – USD – U.S. assets.

And the impact on the United States Dollar?



There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises

We missed the global financial reset – the consequences now are a prolonged period of deflation – until the USD collapses under its own value – due to capital flight to safety.

Now – who would have thought this?



The problem is with unintended consequences though – it can have multi-dimensions.

Part Two on further unintended consequences coming soon.

Edit: 29th January 2015

Japan’s final battle within the currency wars.

The BoJ has only one bullet left in the arsenal – it appears they are using this with negative interest rates.

The Financial Times of London summarized the story below(excerpt):

We’re still waiting for official word from the Bank of Japan, but ahead of its impending policy decision, the yen has lurched lower. As of 11.27am Hong Kong time, the central bank is yet to release its policy statement, but there’s chatter on the wires and on Twitter that the BoJ has discussed/is discussing negative interest rates policy. That’s according to reports in the Nikkei.

The impact on the Yen:USD is self explanatory – and where Japan goes – the world will follows.




Even I am amazed by my timing on this article.

Turning Japanese – The butterfly has wings.



IMF Study Calling for Gov. Subsidized Slavery and German Wealth Confiscation Expose The True Globalist Nature of the Refugee Crisis

Why Willyloman?

Well I know I am crazy – this bloke just thinks he is.

American Everyman

by Scott Creighton

Is anyone else troubled by the thought of German troops snatching the gold and valuables from refugees as they file off the cattle-cars? Bring to mind anything else? Anyone?

from the Huffington Post: Barack Obama posing for photo-op with cute little refugee girl to promote his Weapons of Mass Migration campaign

A couple months ago, the refugee crisis was all the rage. We were being told how evil and dastardly we were when we questioned the fake little dead boy stories or talked openly about Kelly M. Greenhill’s weapons of mass migration campaigns (their terminology, not mine). As the Huffington Post presented each and every refugee as a light-skinned, English-speaking adorable little girl in order to appeal to white liberals, places like Islamaphobic Di$info Jone$’ website presented them all as raving, baby-raping crazed Muslims just waiting to kill all the Christians and impose Sharia Law…

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The lovely thing about Government debt.

Government on debt “we owe it to ourselves” – accepted dogma in the government and financial circles and accepted by the ‘serfs’ – you – the taxpayers the population.

Oft wondered what happened to ones ‘doctrine of rights’ – a quaint custom – each individual the free exercise of conscience, the right and control of property, and ‘a happy’ life.

Mind you this doctrine throughout history instigated revolution.

And so it goes out the window in that the theory of an individual’s rights ‘may be infringed upon’ – in order to benefit a greater population – yes irrespective of the percentage of greater population – it is the ‘elected’ government that makes these rules on the presumption that they were elected to do so.

In essence we ‘have no property’ rights – you see taxes are raised and then payment demanded by the government – non payment means confiscation and sale of the subjects property – to the reduction of your tax debt.

Our debts – our government debts – are your debts – you have no control on where that money is spent – your governed by the governors – you are all serfs – the property belongs to the State and your right to use it limited – to whether you have paid all taxes.


Oh – and that ‘meta-data’ collection that your government has made law – seems that the Taxation Office has the right to review – collate – and postulate – as to your wealth. In so doing make any amended ‘Notice of Assessment’ as required.



Just increase the monies that can be spent – you see they have run out of money and need to increase available revenue.


I do not object to taxes – my objection is to how they spend this money – increased bureaucracy – increased malinvestments – increased interest payments on new debt.

We have to operate within a budget – why can’t a government?



What is it about this black flag?


Yes a few noxious emails over my post ‘Stop waving that black flag (1).

Okay – so Mr Smith is using his rights to also boycott the Oscars – due to his wife’s statements and actions on the issue of the non representation of ‘black’ people in this years Oscars.

Or is it Mr Smith will support his wife – to avoid a domestic dispute?


Read it whichever way you like – that is the freedom of thought.

Please note however – that you are not allowed to say this publicly – as it will be skewed that you are indeed a misogynist – racist – and throw in – good old fashioned sexist.

Ever wondered why they chose the Oscars to boycott?

Why did they not just boycott the studios that are responsible for the content, actors etal?

Like hello – is not the Oscars a recognition of the best stories, directors, script writers – the actors from the best films?


  1. https://millermatters.wordpress.com/2016/01/18/just-stop-waving-that-black-flag/

Recipe for financial disaster.

Zloty anyone?


How about the exchange of foreign currency mortgages to Polands zloty with Poland?

Recipe for a financial disaster and it is a wonder that the ‘wicked witch’ from the IMF has not got involved – as yet….

The architect of this not so brilliant scheme – is Polish President Andrejz Duda with proposed ‘draft’ legislation that – if approved – would make ALL banks accept repayments on the equivalent of almost 8 percent of Poland’s gross domestic product in foreign-currency mortgages at a “fair” exchange rate – unless a voluntary agreement is reached between the parties.




As Bloomberg reports.

The planned legislation comes after the ruling Law & Justice party imposed a new levy on bank assets that will drain 4.4 billion zloty ($1.1 billion) from lenders, or about a third of their profits from the last 12 months.

The Polish president’s draft legislation to convert $42 billion in foreign-currency loans into zloty is a “recipe for a banking crisis” that could weaken lending and economic growth, according to central bank Governor Marek Belk?


Interesting to see who does come out of the woodwork to thwart this legislation – if it does get passed – then one suspects that it will be subject to legal challenges through the courts.

So not only is Austria on the list of creating the next financial crisis – we can also add Poland.




Postscript – this proposal is described as ‘pure evil’ – me personally think that it is a political ploy by the new President – as it goes against international contract law.

At least he can say he tried – at the next election.



Is Cameron correct on learning the native language?


Assimilation in Sociology:

Assimilation is the process whereby persons and groups acquire the culture of other group in which they come to live, by adopting its attitudes and values, its patterns of thinking and behaving—in short, its way of life. (1)

Freddie Roosevelt’s letter prior to his death.

We should insist that if the immigrant who comes here does in good faith become an

American and assimilates himself to us he shall be treated on an exact equality with every one else, for it is an outrage to discriminate against any such man because of creed or birth-place or origin.

But this is predicated upon the man’s becoming in very fact an American and nothing but an American. If he tries to keep segregated with men of his own origin and separated from the rest of America, then he isn’t doing his part as an American. There can be no divided allegiance here. . . We have room for but one language here, and that is the English language, for we intend to see that the crucible turns our people out as Americans, of American nationality, and not as dwellers in a polyglot boarding-house; and we have room for but one soul loyalty, and that is loyalty to the American people.”

I do agree that if one intends to live in another country than one should learn that language – this – from one who was bone lazy and had no interest in doing so – until I mastered a few words – they smiled.

Mastered a few more and we laughed.

It is a pity that more languages are not mandatory through primary schools – just shows you the ignorance of those that set the curriculum.

Children have the ability to learn languages quicker than Math.


  1. http://www.sociologydiscussion.com/sociology/assimilation-in-sociology-definitions-and-aids-to-assimilation/2216



Devolution and as the ‘End of Empire’

Devolution and as the End of Empire – Guest Post

Rarely do I post an article from third parties – this one is special.

Please take the time to read and understand.

Falls into Ashes

The Phoenix Rises

“Come to the edge,” he said.
“We can’t, we’re afraid!” they responded.
“Come to the edge,” he said.
“We can’t, We will fall!” they responded.
“Come to the edge,” he said.
And so they came.
And he pushed them.
And they flew.”

― Guillaume Apollinaire



Waterbear – Judith Westerfield


Eye of Science

Introduction: Psychoanalysis

Mankind is powerless against mankind, and the gods, as ever, show it the ways of fate. …

In the realm of consciousness we are our own masters – but if we step through the door of the shadow we discover with terror that we are the objects of unseen factors.

To know this is decidedly unpleasant, for nothing is more disillusioning than the discovery of our own inadequacy – It can even give rise to primitive panic, because, instead of being believed in, the anxiously guarded supremacy of consciousness – which is in truth one of the secrets of human success – is questioned in the most dangerous way – but since ignorance is no guarantee of security, and in fact only makes our insecurity still worse, it is probably better, despite our fear, to know where the danger lies.

Jung asked the question, and let it follow by intuitively felt concern though not by an answer:

To ask the right question is already half the solution of a problem.

At any rate we then know that the greatest danger threatening us comes from the unpredictability of the psyche’s reactions. Discerning persons have realized for some time that external historical conditions, of whatever kind, are only occasions, jumping-off grounds, for the real dangers that threaten our lives.

These are the present politico-social delusional systems.

We should not regard them casually, as necessary consequences of external conditions, but as decisions precipitated by the collective unconscious.

It seems that Jung had world communism in mind; for national-socialism’s upsurge, as some scholars have brought to light, Jung had only an attitude of sympathy and did not describe it as a delusional system; with Judeo-Christianity; he felt an urge to part.

My thesis, then, is as follows: In addition to our immediate consciousness, which is of a thoroughly personal nature and which we believe to be the only empirical psyche (even if we tack on the personal unconscious as an appendix), there exists a second psychic system of a collective, universal, and impersonal nature which is identical in all individuals. This collective unconscious does not develop individually, but is inherited. It consists of pre-existent forms, the archetypes. …“Pre-existent” means since the emergence of the human race. Velikovsky

I wonder what you, the Reader, et al, consider just what Socialism really is, and just how this religion of Economics, and “Government” (an elite dominating Power Cult) management fit into this contemporaneous schema.

Let me start by saying that the structure of the Economics Industry / Profession is like the Vatican; an overall structure and hierarchical organization, which believes it is the center of the Universe (Catholic, sic) and its “wisdom” – comes from no other but the only Supreme Authority (which collaborates only to economists).

This eye rolling Cult Supremo comprises of perhaps hundreds of “Christian-like” autonomous Cults which tend to fly the same flag, publicly, when convenient, but generally engage in subterfuge continually and consistently, as policy, in order to eventually get into the ‘ear-of-ultimate-power’ for the purpose of self agenda and profit; typically expressed as some tortured version of Totalitarianism.

Economics: Short version:

Economics is a business of institutional religion, structured and organized for purposes of Totalitarian Control, in order to imperceptibly harvest the productivity of the proto-Human Capital for purposes of Power and Profit, ad infinituum, with the least amount of effort /work. Indeed, Pluralism, as stated.

Empire: Extract ‘asepp’

“ The size of government has increased from 20 percent of GDP to over 36 percent of GDP in 70 years. This fact of gradual increase in the size of government is called here creeping socialism, which has occurred also in other Western countries.

In a cross-sectional study of 40 countries over a recent 10-year period, it was shown empirically that, on average, increasing socialism leads to decreasing economic growth(Sy, 2015c). This observation holds true longitudinally also for the US economy in the years since the WW2, as the following chart shows.”

“In summary, the cause of growing US government budget deficits is not primarily due to increases in government consumption, as is often assumed, but is due principally to growing unfunded transfer payments in social security, Medicare, Medicaid, unemployment and other social welfare payments. Wealth transfer through social welfare payments is the hallmark of socialism. Clearly, this policy does not represent American capitalism as it is commonly understood nor is it neoliberalism of neoclassical economics – it is socialism. “

“In brief, American saving has been borrowed by the government and spent on social welfare to increase consumption. The fact that increased consumption has not resulted in increased economic growth, due to the Keynesian fallacy, means that American saving is at risk in the sense that, in future, the US government may not fully fulfill, i.e. default on, its promises to its savers and pensioners. “



Socialism is the tendency towards Totalitarianism, which, in the most ancient of times at the birth of Life itself, was that which is today referred to by Psychoanalysts as the Collective Unconscious, found as the primitive, even primary, default mechanism in all men equally, unless defeated through the Catharsis of evolution and Individual self-determination; a natural Principle.


“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.”

Capitalism, the short version:

The Right of Human Beings (includes, proto-Humans) to exchange property without interference. Under such definition, every deal is a good deal which brings values to Society – unless, there are the middleman e.g. Tax Man, Banker, Government, Agent, other bodies and all other, unproductive parasites, as it is today.

“By virtue of exchange, one man’s prosperity is beneficial to all others”. – Frederic Bastiat


The ordained Right of the proto-Human to Vote for a political representative that will steal the result of other peoples productivity, of individual and collective, physical and intelligence, efforts, so that they may remain idle in comfort and ease. In other words, to survive where not normally possible; it is a technology captured by the political adept and called correctly, in its own right, bribery.


Well, the above describes Socialism well, but hence, this mandate is brought into Law and empowers those representatives, aka as Government, to steal from those that don’t empower them and give to those which do. The natural extension is to steal from all that produce and give as little as possible to others, until the next delusional democratic election. Nothing new here, and it really the forced re-distribution of the work of the productive to the unproductive (in return for voting in favour of the re-distributor).


“Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.”

Indeed, but why?

Plato obfuscates and Aristotle denies; Socrates stood firm and for this, he died.

The answer lies here:

Man, or the proto-Human, has not yet evolved to the Human Being.

In the proto-Human, the urge of the Collective is ever present.

Eric Hoffer call this the “True Believer”. Those who come under the embrace of the Collective (Plato’s Cave”), that is to say the proto-Human, or the unevolved, are mentally, or cognitively, under the, a priori, influence of the “Collective Consciousness” (Blueler, Freud, Jung, Velikovsky, et al) and not fully in command of their own thoughts and actions.

As a consequence, a neurotic state of mind can and does emerge constantly on the world stage of “elite leaders” when stresses contort these incompetent unaccomplished. Can this not be observed daily in Global and domestic affairs?

“My thesis, then, is as follows: In addition to our immediate consciousness, which is of a thoroughly personal nature and which we believe to be the only empirical psyche (even if we tack on the personal unconscious as an appendix), there exists a second psychic system of a collective, universal, and impersonal nature which is identical in all individuals. This collective unconscious does not develop individually, but is inherited. It consists of pre-existent forms, the archetypes. …” Jung

Then, there is the fact, that all life specie are innately empowered only by subjectivity (and distrust); Survival, a priori, if one prefers; the Theory of Objectivity in unevolved humanity cannot and does not pass the test of time and as a consequence, does not exist in the affairs of the proto-Human, or apparent civilization today; yet.

As such, the temper of the proto-Human has not yet been steeled, nor forged. He suffers the vagaries of trauma collectively past; Fear and all its fates of circumstance, constantly under attack by emotion and imagination; hate, ‘tribal nationalism’ (Arendt), lack of integrity, lost in the swirling energies of the cyclone and the prevailing guilt of unknown sexuality and its deep repressional tortures and terrors.

“A neurotic state results from triggering an explosive precipitate inherited from ancestral generations. Early trauma-defence-latency-outbreak of neurotic illness-partial return of the repressed. Such is the formula which we have laid down for the development of a neurosis. “

For those which embrace the Collective, any Collective belief, as their raison d’etre, has, as their default functional consciousness, an immediate fall-back position in the Collective Unconscious; a primitive and most ancient belief system, originating in the time prior to vocal communications; perhaps the beginning of Life itself.

Accordingly, this Collective Unconscious has not evolved; does not evolve, belonging to the most ancient of times, of which we know little.

The danger being the neurosis, the paranoia and intensive fear of all that is confronted. In other words; hence induced, as all becomes dread leading to obvious extreme perversions and irrationality that have escaped the Catharsis of evolution in feedback looping over the experiential development of humanity of ages in millennium.

Velikovsky – suggests that we are on the cusp of Nuclear annihilation.

As today, we can observe all these neurosis being played out openly and publicly, confidence walks with the ones that concur with Velikovsky’s fears.

Are these neuroses not be played out in the exact identical form in many nations today; from Israel, Palestine, Syria, Ukraine, the USA, Mexico, Libya, Egypt and many others?

Can this Thesis be denied?

Is it not incontrovertible that the insanities and irrationalities in behaviours,, which include the most despicable of murders, rapes, genocides, tortures, bombings, executions, pedophilia, etc., are from the same library of barbaric, and repressed psychotic inheritance?

No matter to what Collective the proto-Human belongs, and remains loyal, this Collective Unconscious is identically distributed and comes with the same set of perversions in behaviours when engaged by Fear and Stress.

Today, everywhere we look, this is blatantly apparent; no matter which nation, which village; which institutional religion; which governing authority; insanity and irrationality are pervasive identical.

This most primitive default mindset known as the Collective Unconscious is Totalitarianism, a priori, and in essence, the primitive urge of the Collective.

(In the Book of Genesis, YHVH shows Adam, aka Humanity, out of the Garden to make himself by his own hand. This is evolution. Special Note: The Book of Genesis is a work or meta-physics unequaled by any scientific work produced since, correctly translated and interpreted and written originally well before the 4th. Millennium BCE.)

What has this to do with Economics, you ask?


Everything. And, it is to be, Physics; “science” being the popular term.

If Economics is to become useful to humanity, collectively, and Objective, then it must make a Pact with Humanity – and Humanity with it.

This was called a Republic (of Law) – but not a Republic where the Economist (or others) make the Laws and re-distributes the wealth of productivity and elects the non-elite of humanity as Capital.

All men to be respected as individuals and stand themselves as Individuals.

No classes, no Collective, no preferences; all equal in the eye of the Law.

The Individual is responsible for the Individual. Respect.

A Republic which recognizes that Socialism is the devolution of Society and Humanity by way of returning the cognitive intelligence of its peoples into the primitive default Collective Unconsciousness mechanism, condemns all men.

Or, Socialism is the Collective Unconscious. It is Devolution.

It is crasse political ignorance and social criminal irresponsibility

As shown below in the reference material, and noted within the text, in excerpt, the USA has devolved economically and spiritually.

There is no Respect; there are only Lies and Denial.

What does it matter if the USA collapses and what does this mean?

Answer: Not much; Life goes on.

Power will vacate the US centres and will move (is moving) to the GMT +8 Longitude from Vladivostok in Russia (a warm water Port in Winter) to Perth in Australia (an efficient supplier of Iron Ore and Copper).

Along this time-line, China will build (is building) High-speed Rail infrastructure throughout the World, managed from Beijing.

Shanghai, Hong Kong, Singapore will provide (are providing) the specialist financial services; a 100 year project that will bring growth and wealth to the whole World.

Europe will be able to break the USA vassal death grip and join with Russia and China for a trans-European adventure without US war mongering.

The USA will divest itself of its current infestation of insane “leaders” and all that hangs off them.

The USA will become reborn – for want of a better expression.

For this purpose, the USA retains its Constitution, Preamble and Bill of Rights; the most magnificent statement of Human Rights and Human Dignity ever created and of great Intellect; an expression of Human greatness and capability; momentarily lost to lesser men..


Mathematics do not predict; mathematics describe.

Models are extrapolations, false assumptions and as such, mostly meaningless.

Physics is founded in Principles while Causation is a constant.

Experience builds the Intuitive centre of the Humanity, which together with the Animistic centre, builds the Intellect, from where the proto-Human is reborn as a Human Being; a Man

Accomplished. This is the natural Physics of Human evolution, as explained and written in ancient text.


But, there are too many vested interests in the current criminal mismanagement of the global affairs of humanity to expect any opportunity to even begin to build and appropriate “economics” system before the current racketeering and protection schemes collapse’ and, collapse they must, and will.

Humanity has a history of burning the Messenger they call Heretic. While, “they”, this elite “economist”, would far prefer a nuclear global holocaust prior to having their credentials challenged or their Banking System legitimized. This being due solely to the unevolved state of humanity, and their preferred Subjectivity of ‘Recursive Scamming’ (looting) of the proto-Human Capital.

Until, the evolving Humanity of Objectivity orientation can come forward without fear of death by burning, and worse, as the norm, the affairs of men will evolve towards Total Nuclear extermination of all Life on Earth.

In order to avoid this insanity, Humanity need only, simply evolve.

The faster, the better.

If we want to do this; we will do this; if not, we will not.




Creeping American Socialism



Velikovsky, Immanuel, Mankind in Amnesia

Arendt, Hannah, The Origins of Totalitarianism

Engel, Pierre, Adam and Eve, The Solar Temptation

Mandelbrot, Benoit, The Misbehaviour of Markets

d’Olivet, Fabre, The Sepher of Moses