Undercurrents of doom

Some or all of you must be thinking that too many “unrelated” things are going on for it all to be either accidental or in fact unrelated.

There seems to be a clear message out there that this world is coming to an end, and everybody should prepare, get their shit together and be ready to leave at any time.

Also, there are things clearly going wrong with the world, making the status quo untenable. I will list the short and long term problems in no particular order.

The Western civilization is falling; the scourge of feminism produced a temporary increase in economic output at the price of doubling the workload per family at half the pay per breadwinner, and also reduced the birth rate to the lowest in the world, while the concept of universal human rights prevents the wealthy Western countries from shielding themselves from the influx of migrants from countries with high birth rates, who are essentially parasites unable to contribute anything of value to the West, and their only intent is to harvest the resources that are exposed due to the West’s ideological vulnerability. The ideological concepts of progressivism, of replacing the religious foundations of the West with secular ones by introducing the concept of “human rights”, brought the entire civilization to the point where this concept will either be recognized as fallacious and deadly and thus rejected, or the entire civilization will collapse from both internal and external pressures. One thing is certain: the men in the west will not offer their lives in defense of a feminist civilization that openly rejects their essence. The civilization will fall without any defense, and the “powerful and emancipated” feminist women will be bought and sold on the Muslim slave markets of the future Europe. When Islam conquers the West, it will be nothing but darkness and death until the end of time. There is no culture that became Islamic and then stopped being Islamic. The only way that happens is when the Muslims are militarily defeated and purged from a territory, but once a population contracts the mental disease of Islam, it cannot be cured. The same applies to other mental infections, such as Christianity or Communism. The Christian ethics, according to which the poor are inherently virtuous compared to the rich, refuse to die once planted, and were simply recycled by Communism. Once a population contracts Communism, it refuses to be cured, because it implicitly assumes to have a high moral ground. East Germany is a wonderful example. Similarly, once someone contracts Islam, some implicit assumptions about the nature of the relationship between human beings and the transcendental are basically impossible to remove, and those happen to be the most harmful ones, such as the assumption that God wants/demands human submission. Once that’s implicitly accepted, it’s game over for the human spirit.

The world is dying. The layout of the tectonic plates, as of some 65 MY ago, opened up the circumantarctic sea current which plays a role that can most accurately be described in thermodynamic terms as a method of pumping fluid through a heatsink, after first circulating it through all the heat exchangers. Every single time in the history of the planet when ocean could circulate freely around one of the poles, it ended up with a planetary glaciation, which ended only when the layout of the continents due to slow geological forces rearranged the land mass in such a way as to impede the Coriolis-driven free flow of sea water around the poles. It takes a while for the planet to cool down, and this time it took 65 MY, but a few MY ago the process accelerated so much that almost all the buffer gasses leeched out of the atmosphere and into the ocean, to the point where Milankovitch cycles actually started throwing the planet in and out of periods of glaciation. This is a fatal threat, because historically speaking glaciations are extinction level events for hominid species, and this Pleistocene glaciation cycle is only an overture to the runaway glaciation, where Milankovitch cycles are no longer sufficient to bring the planet out of glaciation, at which point the ice covers the entire surface of the planet, and stays there until the tectonic plates shift again to impede the circumantarctic watercooling pump. It’s quite ironic to see all the fuss about global warming on a planet that is on its death throes due to runaway cooling. The only thing that could actually save the planet is if the Andes were crushed and used to fill in the gap between Antarctica and South America. I’m not sure that the current trend of replenishing the buffer gasses with industrial output will have any permanent effect, because the actual cause of the problem is geological. It might turn back the clock and give the world a few more millions of years of borrowed time, and then again it might produce a large Dansgaard-Oeschger event that might actually accelerate the process of cooling. The thing is, nobody knows, because the climate models are just not good enough; too many thermodynamic buffers and accumulators, and the system is inherently chaotic. The long term prognosis is unchanged: unless by some miracle the increased CO2 output manages to stabilize the climate on the pre-Pleistocene levels, almost all life on the Earth’s crust will be extinct in the timeframe of a couple of millions of years. Humans will be extinct much sooner than that.

We are in a critical phase of the West where the perfect storm is brewing, the kind not seen since the collapse of the Roman Empire. America obtained total control of the global economy, and holds the world hostage with a combination of economy and technology. Those forces are straining and will inevitably collapse. I can’t see America going down into the night without a fight, and my analysis is that what we are seeing since the 2001 in the world are merely steps America is taking to make sure that the collapse goes down on their own terms, and that they are the ones set up to emerge as the leading power once again when the nuclear dust settles. Russia appears to have complete understanding of the situation and seems to be spreading this understanding among other powers, and their strategy is to not take the bait, buy time, prepare in all possible ways, and turn what America planned as a game of chicken into a bull fight, where the bull of America keeps charging and provoking conflict, and the matador of Russia skillfully evades, dodges and absorbs, until the bull tires out and is reduced to just standing there for the kill. America is doing its propaganda thing, but for the first time in history it’s not working, because you can’t convincingly portray someone as aggressive when he’s objectively trying to avoid conflict at all cost and you’re the one charging at him and poking at him for years, trying to provoke a retaliatory strike in vain. This game, however, will soon end, because American economy is on borrowed time since 2008. The people who kept it running for so long are incredibly smart, incredibly competent, and they have immense means at their disposal. The fact that they kept it up for so long, despite the terrible cost inflicted to America’s geostrategic position by the fact that Dollar was openly used as a weapon, is testimony to their competence. However, the others are not stupid either. If anything, the Russians are smarter, and the Chinese are not far behind either, especially since they are consulting with the Russians and coordinating strategic moves. It’s quite difficult to de-dollarize your economy and do it in such a way as not to provoke total confrontation with America before the process is done, but people doing it are very good at what they are doing. From what I can see, the experts on both sides are incredibly smart and they are not really making unforced errors in this complicated game of chess, but I don’t see many ways of it ending that don’t include a nuclear war. At one point, America will run out of time, and will be forced to initiate a conflict regardless of whether their psychological warfare against Russia and China was effective; they would prefer to play the role of a good guy defending the free world from the evil forces, but if that doesn’t work, they will still strike openly as a power-hungry empire that doesn’t want to go down quietly. The inherent arrogance of America makes this inevitable.

Society is at the point where the combination of increasingly totalitarian states and pervasive technological surveillance all but guarantees complete and permanent loss of personal freedoms, as well as the loss of ability to manifest forms of society that politically diverges from the form that is presently in power. Essentially, the West is turning into a form of Stalinist Soviet Union, but armed with cameras on every corner, and AI that looks through all those cameras, as well as those on the satellites and drones. People sense this somewhere, and while some rationalize and justify, and others murmur in protest, everybody understands that doing something about it will come at incredible personal cost. However, at a certain point everybody will rise up at once, as was always the case in the end of all totalitarian systems of the past. People who are in power today will end up like Nicolae and Elena Ceausescu. However, this is not inevitable, and it’s quite possible that everybody will live on like cows on farms – captive, controlled, comfortable and powerless to change anything. But they will proceed to like the trending things on Facebook and Twitter, thinking they are changing the world, and they will trade Bitcoin, thinking they are wealthy. People fear strong AI because they think the machines will end up ruling the world, but I think Frank Herbert was closer to the reality of what is to happen: it’s not the machines, but people in control of the machines, who will enslave you, and the stable end-results will be either the Brave New World, or a Butlerian Jihad. The lesson of Herbert’s Butlerian Jihad? “Thinking” machines are just something other people use to enslave you.

But there is something more important at play in the background, something that is actually important, and yet even if I told you what it was, which I in fact already have, nobody would take me seriously, so I won’t even bother. It’s not as if words or belief will affect the outcome.

Some thoughts

I’ve been thinking about several things that are difficult to categorize, so I’ll write about all of them at once.

Why smart people make mistakes, for instance people predicting collapse of the global Dollar-based economy for years already, and evidence appears to contradict their predictions. It’s quite simple, really. They understand the deep underlying reality of the situation, but they underestimate the significance of other factors, such as meddling and interventions of very powerful players who desperately try to at least postpone the breakdown, if not completely alter its form. It’s only logical, if you assume the prediction is correct. It then also follows that the people in power will see what’s going on, and they are not going to take it sitting down. They are smart, and they have huge means at their disposal, and they have absolutely nothing to lose. They will print tens of trillions of fake digital dollars that will buy out the dollar bonds and then annihilate both. They will print a hundred paper-gold bonds for each gold bar, and sell them quickly to induce panic, and then when people start selling the actual physical gold, buy it with the fake Dollars they printed out of thin air, and then justify the printing of those Dollars with the newly acquired gold backing. Print trillions of dollars but suppress the price of dollar-backed oil, among other things by faking the existence of supposedly huge shale-oil supplies which are in fact thin air. Cripple the rest of the world with artificial roadblocks infiltrated into the payment system so that everybody else is fighting an uphill battle compared with the American companies. Print huge amounts of fake money and infuse them into your own technological companies to give you the upper hand. Print huge amounts of fake money and invest them into equally fake companies just to get them an IPO and bloat the GDP, retroactively justifying the printed amount with GDP numbers. Emit huge amounts of cheap credit into the economy to keep it on life support, while making the rest of the world pay for it, and if someone objects, threaten them with sanctions and war.

Most smart economists understand that the foundations of the Dollar and the American economy itself are untenable, and yet they fail to understand the lengths to which the players who created this system will go to defend it. Also, they see that the collapse will be a great disaster, yet they fail to actually use this as a premise and think from the position of the people in power who see the same thing, but also have the mechanisms at their disposals to do the otherwise unthinkable things – create a war that will hide and transform the collapse, from the “emperor is naked” testimony of fraud and theft that is the basis of the modern America, into a completely different narrative, that of “evil enemies of democracy” who attack and subvert America at every angle, to the point where they caused the great economic collapse itself, at which point America had no choice but to retaliate with nuclear weapons, but alas, it incurred heavy casualties, and all this chaos and destruction is actually someone else’s fault.

I actually think everybody was right – the people who see the geostrategic situation and understand that it is precursory to nuclear war, the people who see the foundations of the Dollar economy and understand that it is untenable and collapse of the debt economy is inevitable, the people who sense unclear doom and prepare, the people who fear the technocratic surveillance state, the people who fear the collapse of the Western civilization and its moral and intellectual foundations. They are all right, and it’s all happening on the same vector. It’s just that they underestimate the people who are actually guiding the process.

They are not stupid, and regardless of what they are telling you, they themselves understand perfectly well what’s going on, they have excellent analysts, military strategists and economists at their disposal and when they make and implement plans, they are incredibly more far-reaching and layered than most people are willing to accept. Imagine what would be going on if I was in charge of this thing, and if I had the wealth and power of America at my disposal to implement everything. I would be playing at 20 chessboards at once, with hundreds of people as smart as myself delegated to specific tasks. If you think you would be able to see what I’m doing from the outside, or predict events based on some part of the pattern you’re perceiving, then you’re naïve beyond belief. I would cook up specific points of chaos in order to divert attention of all other players, play feints and counter-feints intended for obscuring the sight of their analysts, introduce dozens of legitimate issues they can’t ignore while not being sure which one is the real attack-vector, and I would have a perfectly calm mind while stirring up the fogs of war that increase other players’ emotional potential, making their thinking slower and more inert, more prone to distraction.

That’s why smart people make mistakes. They don’t understand the power and ferocity of the guiding intelligence of the enemy. Sure, it’s easy to say it’s naïve to perceive the economy in the state of deep manipulation for decades and pretend there’s nobody at the wheel, that it’s just instinctual trading, reflex of self-preservation of the bankers, greed and power, but it’s actually emotionally preferable to the recognition that it’s all the result of people smarter than yourself at the wheel, with all the power in the world at their disposal, and that most of the events that seem unrelated are actually intelligent moves, most likely aided by artificial intelligence which simulates moves and their likely effects for the players, so that they can pick the best strategy against the simulated rational self-serving opposition.

If you gave me a trillion dollars, that’s what I would do – have the game-theory experts design and supervise the acres of supercomputing technology running AI software, and have it running a very detailed simulation of the real world, displaying the probable responses of all the world powers, set up the scenario very similar to the actual state, and then run millions of various scenarios, until you map out those with the highest probability of you ending up on top. If you think they are simulating the climate, and not simulating this, with all the computer game technology being there for decades, where you can run a combination of Civilization, Sim City and Starcraft on computers the size of a smaller city, running tens of thousands of teraflops-level computation units in parallel, well, let’s say I’m not betting high by predicting this. The thing is, human emotional responses are easy to predict, and it gets easier the bigger the group, so it actually gets easier when you’re trying to work on a nation-level. You give the computer the option to tweak variables, and it will end up with something that will look very weird, disconnected, not at all like figures on the same chess board, the way computers come up with weird optical designs when you apply them to making lenses. However, when you actually grind that weirdly looking piece of glass into the aspheric shape recommended by the computer, you see that it actually works.

That’s my problem with the AI. The computers themselves are incredibly stupid, and are no danger. However, when you take those computers, with their enormous quantitative power of simulating trillions of outcomes and pruning the tree of options until you get something that’s useful, and give them to extremely smart people, who work for extremely evil people, you end up with a nightmare of incredible proportions.

Liberty and safety

Whenever a government introduces some totalitarian measure that infringes upon liberties and freedoms of all, they justify it with “safety for you and your children”. Every single restriction introduced, from speed bumps and surveillance cameras to financial restrictions, is justified with either “need for law and order”, implying that only a criminal would oppose it, or “safety of your children”, implying that you must be incredibly irresponsible and callous to oppose it.

My comment on that is very simple. Regarding “safety” I will quote Benjamin Franklin:

“Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.”

Regarding criminality, people implicitly act as if the laws introduced by the state are the laws of God, not something voted on by a bunch of incredibly corrupt people in the parliament. Every evil thing imaginable can become a law, and actually was law at some point in time. In America, the blacks were counted as three fifths of a person and were legally considered property. In the Third Reich, the Jews, Slavs and other “undesirables” were legally stripped of all rights and property and “disposed of” in death camps. It was all perfectly legal, so you might understand my cynicism regarding human laws. I might obey them for fear of reprisals, but I have little inherent respect for them.

Regarding surveillance, I urge you to study the history of the Hollerith (IBM) punch card computers in the Third Reich. Please do, don’t take my word on it. People didn’t object to the census performed by the Nazis because they implicitly assumed that it would be impossible to analyze all those mountains of data and figure out whose third cousin is a Jew. Unfortunately, they didn’t understand that the Nazis had the technology to do just that, and with very little work. They categorized the data in computationally-friendly forms and used the mechanical punch-card computers to do the work. After that, they very accurately knocked on people’s doors and brought their precisely targeted victims to the death camps. But don’t believe me, because apparently nobody does, I’m supposed to be the one everybody doubts. Just do your own fucking homework and understand what those cameras on the streets, “for the safety of your children”, are actually for. And understand that “money laundering” is a code for “saving your money from forced confiscation by the state”. Every single measure against “money laundering” and “financing terrorism” will be used against you, when you try not to pay the 75% tax, or when you are designated a “right-wing domestic terrorist” because you don’t want your children to be indoctrinated with pro-Muslim or gender-fluid brainwashing at school.

But first, you need to be ready to sacrifice your lives, and the lives of your children, for liberty. Remember that there are no human rights. It’s a “social construct”, as the leftists like to say. There are now “human rights” because the law says so. The laws are changed in “emergencies”.

So, if someone wants to introduce some restrictive measure for the “safety of your children”, and you say “no thanks, I’ll take my chances”, do you understand what kind of hell will break loose?

JP Morgan warns about Dollar decline

Read this.

…we believe the dollar could lose its status as the world’s dominant currency (which could see it depreciate over the medium term) due to structural reasons as well as cyclical impediments  

As such, diversifying dollar exposure by placing a higher weighting on other currencies in developed markets and in Asia, as well as precious metals makes sense today.

… Being the world’s unit of account has given the United States what former French Finance Minister Valery d’Estaing called an “exorbitant privilege” by being able to purchase imports and issue debt in its own currency and run persistent deficits seemingly without consequence…

There is nothing to suggest that the dollar dominance should remain in perpetuity. In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted.

… In other words, in the coming decades we think the world economy will transition from U.S. and USD dominance toward a system where Asia wields greater power. In currency space, this means the USD will likely lose value compared to a basket of other currencies, including precious commodities like gold.

… Central banks across the globe are also adding to gold reserves at their strongest pace on record. 2018 saw the strongest demand for gold from central banks since 1971 and a rolling four-quarter sum of gold purchases is the strongest on record.2 To us, this makes sense: gold is a stable source of value with thousands of years of trust among humans supporting it.

Given the persistent—and rising—deficits in the United States (in both fiscal and trade), we believe the U.S. dollar could become vulnerable to a loss of value relative to a more diversified basket of currencies, including gold. As we scan client portfolios, we see that many of them have far more U.S. dollar exposure than we feel is prudent.

My interpretation: Jim Sinclair was right that the central banks intend to do a “soft landing” inflatory move, devaluing the Dollar (and Euro will, in my opinion, devalue even more since the EU has an even worse internal crisis on top of Euro being essentially a Dollar-derivative). According to Sinclair, this first controlled inflatory attempt will fail, and as a result there will be a second, “natural” inflatory event that will balance the world economy on actual values.

So, nobody can say they haven’t been warned. According to some rumors, JP Morgan has been accumulating immensely large amounts of silver recently, so you can’t say they aren’t backing up their talk with money.

As for crypto, I agree with Peter Schiff that crypto will be the first thing to collapse, and that will actually make fiat currencies look good. Everybody invested in crypto will be wiped out. The exception are the blockchain-based technologies backed by actual assets, like the Russian crypto-Ruble. After that, everybody holding significant portion of their assets in fiat currencies or their derivatives such as dollar and euro denominated bonds will be wiped out. The current rise of gold and silver is just a precursory warning shot, and I still recommend buying.

The disclaimer is that this only applies to people who actually have significant savings. If you reduce your cash supply below one month’s needs, you are actually putting yourself in harm’s way. Instead, stock up on canned and other long-lasting food (pasta, flour, sugar, beans), because in a hyperinflatory environment food supply might get disrupted. I don’t know how long this might last, so there’s no harm in assuming it might last long enough for everybody who didn’t prepare to regret it. Have in mind that I’m following my own advice, which means I’m taking this shit very seriously.

Inflation

How much is a German Mark (DEM) worth in Euros?

This is something intended for the Europeans in general and citizens of the former Yugoslavia in particular, since we used to do our inflation-hedging by doing everything in DEM. So, we must still remember how much is a DEM worth.

1 EUR is 2 DEM, right? That’s the conversion rate that was used when the Euro was introduced. And I caught myself thinking about that, implicitly assuming this conversion rate when I was thinking about the housing prices in the past, when a square meter in Zagreb used to cost somewhere around 1000 DEM, with the highest prices reaching 2500 DEM and the lowest being around 500 DEM. I was thinking how the prices went to Jupiter since then, as they are now between 1000 and 3000 EUR per square meter. That would be 2000-6000 DEM. Or would it?

And then I thought of a good way of verifying my calculations: the historic gold price chart in EUR:

The red X marks the spot where EUR replaced the former currencies in circulation; its value is 10000 EUR per kilo of gold. This means the value of DEM is 20000 per kilo of gold.

Today the price of EUR is above 40000 per kilo of gold. This means its actual value dropped by the factor of four since introduction, and the value of DEM, in today’s Euros, would be 2 EUR. So the exchange rate would still be 1:2, only the other way around.

So, the cost of housing in Zagreb today, recalculated using gold as the standard, would be 500 DEM for the cheapest, 700 for the normal, and 1500+ for the high-end of the range. Basically, that means that the prices got more affordable, in terms of gold per m2.

As a conclusion, no, the real estate is not going through the roof, and no, gold is not going through the roof. It’s the paper currency that’s gone down, by a factor of 4 in the time span of 17 years. You will ask why nobody told us? I will ask, why do you think they would want you to know? Your faith in their bullshit currency is what gives it value. Your faith is a commodity. You and I are just cattle that’s bred for slaughter. You don’t tell the cows the prices of meat and milk on the market. So, if you were a good boy and saved your euros somewhere in a bank, you are now rewarded by being poorer by a factor of 4. If you had your savings in real-estate or gold, you’re fine.