THE ECONOMY AS A PATIENT – CHAPTER TWO
SEQUESTERING BLOOD OR MONEY SEQUESTER DEFINITION
(There are many definitions)
= to separate from all external influence; to separate in order to store; to prevent an ion in solution from behaving normally by forming a coordination compound (according to en.wiktionary.org/wiki/sequester)
- requisition forcibly, as of enemy property; “the estate was sequestered”
- impound: take temporary possession of as a security, by legal authority; “The FBI seized the drugs”; “The customs agents impounded the illegal shipment”; “The police confiscated the stolen artwork”
- undergo sequestration by forming a stable compound with an ion; “The cat ions were sequestered”
- seclude: keep away from others; “He sequestered himself in his study to write a book”
- set apart from others; “The dentist sequesters the tooth he is working on”
(wordnetweb.princeton.edu/perl/webwn)
We can easily see that sequestering something is placing the object in an area where it no longer can be used, and where it is hidden.
SEQUESTERING BLOOD
This is a common finding in disease and trauma. The blood is hidden in a cavity and the quantity of blood that can be used by the body is very low. Frequently, a patient will bleed from an ulcer and the blood will accumulate in the stomach and intestine. The patient will appear very pale and weak.
In trauma, we may find a small wound in the abdomen, frequently caused by a long thin knife. The patient, again, is pale and weak and a large quantity of blood is found in the abdominal cavity.
IN ECONOMICS
We find the economy weak and no one has much money. Exactly as the economy appeared in the Great Depression.
When we look in history, we find great quantities of Gold that were hidden in Fort Knox, safe from the hands of potential communists. Of course, the Democratic Administration, under President Franklin D. Roosevelt, the Obama of the 1930′s, played a big part.
Here is an item from Wikipedia
Two items of Roosevelt-era legislation markedly affected the U.S. banking and monetary system. The first was the so-called Gold Reserve Act of 1934.
This legislation gave the president the unconstitutional power to call in all privately owned gold for deposit in the U.S. Treasury.
It also gave him the unconstitutional power by his fiat to revalue the price of gold (devalue the dollar) by as much as 60 percent.
TODAY
The Money Supply is disappearing. The price of Gold is soaring. Are rich people afraid of Obama Baby and his team of socialists?
The U.S. Government is giving Trillions of Dollars to its friends, the Donors to the Democratic Party. These “Donors” are the executives of large very wealthy corporations, such as banks, pharmaceutical companies, chemical companies. The “Donors” are essentially big business, and they control the Governments of the West.
The population of the West live under the delusion that it is their votes and their well being which motivates their the politicians who have the power to spend their money.
SEQUESTERING THE MONEY SUPPLY
The Governments of the West caused a major bleed in the stomach of the Western Economies. By falsifying credit in the form of fraudulent mortgages, the money supply left the general circulation and was sequestered in the intestines and became unavailable to the rest of the body. The Body immediately became weak.
Banks closed, companies went bankrupt and the Unemployment Rate shot up. The Western World is in that state at the moment. The Western Governments have not stopped the bleeding. Because of their blind interest in serving their Donors, they are pulling money from the general circulation.
Here is a report from the U.K. Telegraph
Depression?
Written by The Daily Bell
US money supply plunges at 1930′space as Obama eyes fresh stimulus … The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history. The stock of money in the US fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6 percent.
The M3 figures – which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance – began shrinking last summer. The assets of institutional money market funds fell at a 37 percent rate, the sharpest drop ever. … “It’s frightening,” said Professor Tim Congdon from International Monetary Research. “The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly,” he said. – UK Telegraph
As mentioned in Chapter One, we are seeing the Money Supply dropping as it did in the Great Depression of the 1930′s. We are also witnessing the fall of the Dow Jones Industrial Average (DJIA).
The DJIA represents the Stock Markets of the Western World. The Stock markets are the emotional centers in the brain of the World Economy. When investors are frightened, the indices of the stock markets go down. When investors are happy, the indices of the stock markets go up.
Like all basic emotions, the indices obey instincts and sensations and not reason. They change direction and levels with amazing speed, just as birds fly away at the slightest sound, and reptiles bite and swallow when they sense that an object is prey.
If we watch these indices and the DJIA is probably the most watched by equity traders, one can get a good evaluation of the emotional status of the people who control the money in the economy.
DOW JONES FALLS TO 1940 LEVEL
From Schaeffer’s Investment Research
News out of Spain helped propel U.S. stocks higher on Thursday, as traders cheered the government’s approval of new austerity measures.
However, the jubilation was short-lived — bright and early this morning, Fitch Ratings slashed Spain’s long-term foreign and local currency issuer default ratings to “AA+” from “AAA.” In a note accompanying the downgrade, Fitch pointed to “Spain’s unemployment rate, the legacy of its construction boom, and its high level of indebtedness” as near-term concerns, and also cited “the risk that economic growth will fall short of the government’s projections.”
With this negative note effectively negating any newfound confidence in the euro zone’s economy, stocks finished the month of May with a resounding thud.
Meanwhile, on the home front, disappointing reports on consumer spending and Chicago-area business activity only served to exacerbate the bleak mood.
In fact, the Dow Jones Industrial Average tumbled 7.9% for the month, marking its worst May performance since 1940.
CONCLUSION
We are seeing the Money Supply drop, as it did in the 1930′s. We are, also, seeing the stock market indices fall as they did in 1940. The Money Supply moves slowly. The Stock Markets jump with each new emotion.
We can anticipate that the DJIA will go up and down, but that with a lack of blood in the general circulation, the trend will be down.
TO BE CONTINUED
