About Spirit and Soul

Economic Cycles move Up and Down. We are now in a Down-state, a Recession. To stimulate consumers the Central Banks lower the interest and are pumping a tremendous amount of money into the economy.

Pumping money generates inflation and when inflation happens prices start to rise again. What the economist wants to avoid is deflation.

When prices rise people will buy goods and invest money. When the prices go up you can make a profit. When prices rise you have to buy the goods on the short term because they will be much more expensive in the future. When consumers believe the economy will contract they will start to save money to cope with the problems they believe they will encounter in the future. They will also postpone the buying of (luxury) goods. When they postpone producers will lower their prices and when prices are lowered other prices will be lowered. This is called Deflation and Economists are terribly afraid Deflation will happen.

A state of contraction is just like a state of expansion highly related to Expectations and Expectations are a Self-Fulfilling Prophesy.  If the self-fulfilling prophesy of a down-fall is not broken the economy will shrink until eternity. To motivate consumers to believe in an Expanding Economy Economists tell scientific fairy-tales hoping people will start to believe things are going the right way again.

Social scientists know for a long time that the majority of the people are not rational at all. Humans act on impulse and explain their behavior later. Humans believe others who believe others who believe others. Most of the things that are happening in the Economy are very complex and we need a simple explanation of a trusted expert. At this moment there is one thing everybody believes. Things are going in the wrong direction and One Thing is for Sure.

Bad news travel very fast.

The current state of technology has speeded up the transport of bad news to almost the speed of light. The contraction of the current economy moves much faster than the comparable contraction during the Great Depression.

The economy is controlled by two variables, Production and Consumption.

In a balanced economy the two variables are voided. The consumer destroys (consumes, eats) the products of the producer. The destruction of the product starts a new production-cycle. When the production is not voided producers have to create an inventory and take stock or speed up production. Producers don’t like to take stock. Stock costs a lot of Money.

Producers are just like Consumers highly controlled by their Expectation of the Future. The big difference between the two is the reaction-time. Consumers are able to Act on Impulse. It takes a lot of time and coordination to produce. Producers have to control their impulsive emotions but to sell their products they have to stimulate the impulses of their customers.

In the current economy the time between production and destruction is extremely shortened.  To keep the customer satisfied new versions of products are produced almost on-demand (on impulse). To organize a demand-driven production-line the producer needs highly advanced logistic systems. One of the most important concepts of logistics is to optimize the Inventory. Inventory costs money and space. To produce a product the chains of suppliers are heavily integrated.

Nobody is taking stock and one disturbance in the production chain causes a disturbance in the complete chain. When the impulses of the consumers are suddenly stopped a complete chain slows down and production has to stop.

When the Banks are not able to finance a slowdown of the supply-chain the production has to stop even faster. Again the effect of bad news has a huge and fast impact on every producer in the world. At this moment all the interconnected wordwide supply-chains are collapsing

We are living in a time where negative impacts propagate with the Speed of Light. The political institutions are unable to react to the speed of change that is now changing the world in an instant.

People remember negative impacts much better than positive impacts. The expectation of the Human is constructed to avoid big trouble. The constant sequence of bad news lowers the trust in almost everything that was trusted before.

At this moment Advisors, Bankers, Politicians, the Stock exchange, the Banking System, the Political system, the Medical System, Pension Funds, Insurers, the World Economy, the Climate and much more are not Trusted anymore. Everything is interpreted out of a negative perspective. Not only the economy is contracting but also the trust in the now and the future is contracting. Not only the Economy is in a Depression, many people are Depressed.

Production and Consumption are two important variables but there are really five variables at stake.

The cycle of Expansion and Contraction is balanced by two other variable called Spirit and Soul. Soul is related to the Human Emotions. Spirit is related to Human Creativity. The Four variables move around a Center and this Center is moving around other Centers.

Spirit is the Creator of New Ideas. Ideas want to move Down. They want to be realized on Earth. It is very difficult to determine these ideas because Old Ideas want to be Replicated all the time. Old Ideas have to be destroyed to make place for the New ones. The only way to do this is to enforce Stress on the old replication-system. It is very clear that this is happening at this moment. The old solutions don’t work anymore.

Soul contains the Human Potential and this potential is basically unlimited. When the Soul is Stressed it Explodes and new Opportunities become visible. There are two types of Stress. The Stress to create something New, the Stress of the Artist who is desperately trying to Express something that is there but cannot be Grasped. The other type of Stress is caused by the constant pressure of something that is forcing the Human to do what he really don’t wants to do or is not capable of doing. Let us call this type of stress, Negative stress.

Soul and Spirit are connected to the Destructor and the Controller.

When the Negative Stressed Emotions connect to The Destroyer of the Senses the Human becomes Violent. Sadly enough the Destructive force of a World Wide War will certainly generate an Up-state of the Economy.

When the Negative Stressed Emotions connect to the Expectations of the Controller it will generate Fear. Fear is the Destructor of the Senses. It narrows the view of the Human and produces the simple insight of the Common Enemy. They (not we) are the cause of all evil. A long time ago the Jews were the scapegoat. Recently Islamic Terrorists were the most important enemy. At this moment the “Greedy Bankers”, the Capitalists are the cause of the big economic crisis. If we don’t watch out we are moving into a new Struggle of the Classes.

When people are Afraid they simply stop moving. They wait and see and start to look for protection. In this case Big Brother is always there to help them. Extreme fear generates the need for all kinds of weapons to prevent war and to stop or even destroy the Agressive Humans. The Stressed Emotions create Enemies, Protectors, Weapons and finally the perfect reason to Fight a War or start a Revolution. If we don’t watch out a Huge Violent Conflict is unavoidable.

When the Emotions connect to Spirit, Spirit will generate an Insight. When this Insight has appeared Spirit will Transform the Soul and the Human will be lifted to another Center, a new Frame of Reference, a new View on the outside World. In this case Spirit gives the Expectation Hope, a view on a Bright and Exciting Future. The Creative Spirit is the Powerful Force behind Enthusiasm and Motivation.

We are living in an Illusion. Money is an illusion, the Economy is an Illusion, The Banking System is an Illusion, and the Contraction of the Economy is an Illusion. If we keep on believing this Illusion, the Economy, will slowdown, until it finally stops. At that time we have to cooperate to survive.

We See what we want to see and when we See a Contraction, the Contraction will happen. Our Expectation creates the world it wants to see and when the Expectation is without Hope, the outside world becomes Hopeless.

We, the Humans, are perfectly capable to create a completely balanced economy if we listen to the other, exchange ideas, cooperate and start to implement the ideas.  We will always make mistakes but mistakes generate new ideas and the cycle of Innovation will start again.

LINKS

About the Struggle of the Classes

How to create Enemies

About Suffering

About Unlimited Energy

Why Free Will is an Illusion

How to Shape your Own Future

About Mind Control

About the Emotions

About the Observer

About Synchronicity

About Time

About Paranoids

About Creativity

About the Big Brother State

About the Placebo Effect

About Honesty

About the Soul

About the Union of Socialistic States of America

Government is Nationalizing the Banking Industry. This is just what Karl Marx wanted to do after the Proletariat had taken over Society. Is the US becoming a Communistic State?

When the Economy is Going Up Investors take on Risk. They start to Lend. The longer the Economy is going Up the more risk they take the more they lend until they’ve taken too much.

Eventually, they reach a point where the cash generated by their assets no longer is sufficient to pay off the mountains of debt they took on to acquire them. When this Happens we are at the Turning Point. From that time on the Economy is going Down.

The big problem is that you have to Pay Back the money you Lend with Interest. To Pay Back you have to Earn money. When the Economy is going Down you will earn less money so why should you lend money even when the interest rates are low?

When you expect that your income will go down you will reduce your spending behavior. You will certainly not lend money and the bank will not lend you money either because the banks want to be sure that you will be able to pay back the money and the interest. The Recession will deepen.

When Everybody Expects the Economy will move into a Recession the Economy will move into a Recession.

What You Expect to Happen will Happen.

The Central Banks are not only telling to watch out for a Deep Recession. They are telling we are moving into a Worldwide Recession. This is a completely new phenomenon.

When people believe a recession is near many of them will start to build up an emergency fund. The amount of money in the emergency funds will rise but to make money you have to invest money in something. Most of the time a part of the World is going Up and the other part is going Down. You just have to move your money to the place Where The Action is.

When the whole World is going into a recession nobody knows where to invest money.

We are not only encountering a Worldwide Recession, we are also encountering a “burn-out” of the Worldwide Financial Infrastructure. When you have created an Emergency Fund and the World Economy is going down and the Banking System is failing you really don’t know where to go.

The underlying assumption of all these models is the Power of the Market. The only thing Government has to do is to create the conditions and after some time the Market will restore itself.

Government is lending money for a very low price to the Financial Companies and they will propagate this advantage to their customers. The Customers will start to spend and the Economy will rise again but the Financial Institutions don’t propagate the advantage.

They add a Risk Premium to Save Money for Customers who are not able to Pay Back the Money. When Everybody believes the Whole World is Going Down this premium will be very high.

In essence Banks are Brokers. They have been very successful in bringing two parties (the Savers and the Spenders) together. The savers and the spenders are the Customers of the Bank. They are also the Customers of Government.

Why is Government helping the Financial Institutions and not the Customers of the Financial Institutions?

They believe the Market is able to recover by itself.

Why is the Market not able to recover?

The Market is an Illusion, a Theoretical Construction. The Market consists of Humans. When Humans believe a Theory (a Believe) they will act according to this Believe. If the Market will recover they will Wait until the Market will recover. If everybody Waits nobody Acts. Not-Acting leads to a Recession.

What is wrong with Economic Theory?

The Scientists believe Humans are Rational Beings but Humans are Emotional Beings. Most Humans are doing what other Humans are doing. When they don’t know what to do they just wait until the Markey recovers. The Fear of Losing drives Human Behavior. When this Fear Takes over Control Humans Act without Thinking. They Sell Everything they have to avoid a Higher Loss.

In essence the Government is confirming all the time that we are heading to a Huge Crisis. When we go on the way we are going the Crisis will be the Most Spectular Crisis the World has Ever Seen. The World Economy will come to a complete standstill.

Why is Government not Acting as a Broker?

This could be a simple solution. Just put Your Money where the Action is and the Action in Society is performed by Entrepreneurs. Entrepeneurs are very different from Investors. Investors invest their money in Entrepeneurs. Entrepeneurs Act. They put Ideas into Practice.

Entrepeneurs are Practical people. They know that You have to Earn Money to Invest Money. Their big problem is the Cash Flow. Their Customers have to pay their bills. When Customers don’t pay their Bills they need the Support of a Bank. When Entrepeneurs want to lend money to balance their cash-flows lend money to Entrepeneurs directly.

When Customers want to lend money to pay their Bills lend them the money they really need. You don’t need Banks to do this.

Every Economic Scientist is agreeing on point. Small businesses are the Pillar of the Economy.

There are many reasons why Small Businesses are the Motor of the Economy. The owners are responsible for their own actions. They get broke when their Business Fails. In Big Business You are able to spend or waist money without any consequence. You even get money when you fail. When you own a Small Business you are unable to create big Staff Departments. Big Staff Departments waist money and play Political Games. Small Businesses are the most effective and efficient Economic Instruments. They are also the Source of Innovation.

Why is Government not Supporting Small Businesses?

Government always supported Small Businesses until the Big Malls and the Big Companies were created. The Big Companies are paying a Lot of Money to influence the Politicians. Politicians were able to make big money when they started to do what the Lobbyist were telling them to do. It is time we get rid of Politicians who only want to make big money. To be a Politician is an Honor. You are serving the Whole and not Yourself.

Is US Government doing what Karl Marx wanted to do?

This is the most interesting point. According to Karl Marx, the first action after the take over of the Proletariat would be to Nationalize Banks. There are more parallels with the USSR. The USSR Controlled and Manipulated the Media, Gathered a Lot of Data about his Citizens, Spend a lot of money to Build and Maintain an Army, Occupied many Countries, Created an Elite (The Communist Party) and controlled the State with a huge Almighty Secret Service.

Are we finally moving to the Union of Socialistic States of America (the USSA)? or even worse to World Government.

LINKS

The vision of Karl Marx

About the Broker State and Small Business

What is Happening in the Financial System

The current Foundation of the World Financial System, the US Economy based on the Dollar, is in a Fatal Crisis. The Solution to the Current Crisis, Bailing Out, will finally Speed Up the Crisis. The real problem is moved to the Near Future, to another Level of Society (MiddleClass, the Poor) and to another part of the World. In the End it will fireback on the US itself and deepen the Recession that is already taking place.

Money represents a Value of Something. For a very long time money was based on the value of Gold. This foundation failed. The failure of the Gold Based Money system created the Great Depression and finally the Second World War. At this moment the Financial System is without any Foundation.

To prevent a Third World War the Bretton Woods Agreement was created in 1947. The foundation of the International Money System was based on the Dollar. In 1971 the US broke up the Agreement because it was unable to stabilize the International System. At that time the US was spending too much money to fight the war in Vietnam. It became a Debtor and remained a Debtor until today.

From that Time on the International Money System is Floating but the Foundation, the Dollar, is still used. The Euro is an alternative but it is almost impossible to move to the Euro without destroying the US Economy and the World Economy. Europe, China and even Russia are Forced to help the Biggest Debtor in the World to avoid the destruction of their own Financial System. In the mean time the Biggest Debtor in the World keeps on Spending. It is even Increasing its Spending Behavior.

Many people believe that the reason behind the Financial Crisis is the Credit Crunch. They believe mortgages are the cause of everything but the reason is much more complicated. The main reason are financial derivatives.

Derivatives are very complicated ways to gamble with money. They are so complicated that almost nobody is able to calculate the value of these financial instruments. They are so complicated that almost nobody is able to keep the books. The controllers of the banks lost the control a very long time ago.

 

Derivatives are the playingfield of dealers and the dealers are able to confuse almost everybody when they want to play their game. The effect of playing dealers has shown itself in many cases like the falldown of Barings. The Derivatives have transformed The Banking Industry into a Casino.

The US Government and its Allies are trying to avoid a new Great Depression by bailing out or protecting every US Bank, Insurance Company and other Company (Farmers, Chrysler, Boeing, Ford, ..) that is unable to pay its debts. The US Government is moving the huge and uncertain debt from the Market to the Government hoping the Market will Restore itself. They believe the Market is going Up and Down. Someday they will be able to Sell the current Debt with a Profit back to the Market.

The strange thing is that other countries are helping the US to protect their vital companies from a certain disaster. The US, the Protector of the Free Market, is protecting its Own market and the only reason why others are helping the US is to avoid a certain disaster on the level of the World. Strangely enough they are disturbing their own market to avoid the destruction of the market of their biggest competitor.

In the background investors, Countries and Companies are slowly moving out of the US Economy. The are investing in Europa (Warren Buffett) or are creating their own financial market and currency (China, Russia, India).Nobody believes the US will recover but they have to prevent a total meltdown.

China is even taking over control of the US Economy. With their enormouss funds they will be alble to “blackmail” the US. They are already doing this. The Chinese are in contrary to the US fighting the war with the Wapens of their Opponent. They know how to win without fighting.

What many peopl don’t realize is that the long term Economic Cycle (The Kondratiev) is going Down for about 26 years. We have entered a State of Compression in 2000. The Expansion of the World Economy during the last 26 years has stopped. We are just in the beginning of the Phase of Compression.

During the phase of compression the Baby Boomers will stop working. They have invested a lot of money to buy a pension. During the compression their pensions will evaporate. During the phase of compression many people will get old and ill. The Social System will be without any money to help them. Many people will move into a very angry state when they realize what really has happened.

During the Downfall The Debts will increase tremendously. The move from the Market to the Government (and the Tax Payer) is a temporary solution. Someday the Debts have to be repayed and the only thing US Govenment can do is to accept the fact that the US and the strongly related Western Economy will enter a state of Recession.

The Economic Activity will go Down but Social Activities will Move Up. When you are losing money somebody (Your Friends, Your Family, Your Community) has to help you.

What many people also don’t realize is that the very long time cycles are supporting the DownFall of the Economic System. The very long time cycles and especially the Cycle of the Precession is Jumping to a new Level. It is jumping to a higher level of Consciousness.

The current instability of the World System is not only visible in the Financial System. It shows itself in every System of the World. It shows itself in the Psychological System, the Cultural System, The Religiouss System, the Political System, the Ecological System, the Weather System and the Planetary System.

These Systems are highly interconnected. A Disaster in one of the Systems has an impact on all of the other Systems. When the Financial System is fixed, a Political Conflict (Russia) starts and the Financial System is unbalanced. When the Political System is stabilized a huge Earthquake or a giant Tornado will move the total System into unbalance. This will go on and on until everybody realizes that we are living in a Highly Interconnected Reality.

The only thing we can do is to act on the Level of Earth and Face Reality. We have to realize that all the Isolated Systems are One and the only thing we can do is to find Balance on Every Level.

We could start to Find Balance on the Level of the Human.

We could start to Reduce the Power of the Ego, Desire, by reducing our Needs.

We could start to Reduce the Power of our Expectation, our Thinking, and start to Trust the Other.

We could start to Empower our Imagination, Spirit, and Imagine a Shared Future.

We could start to Empower our Soul, Empathy, and start to Take Care of Others.

We could start to use our Consciousness and become Aware of what is really Happening.

Many people believe the current crisis will be a Fatal Crisis, a (Financial) Apocalyps. I don’t believe this will be the case.

Imagine a world were you are not Working all the time. Imagine a Life without Stress.

Imagine a World where You don’t have to Play Political Games to Survive.

Imagine a world where You could enjoy Nature.

Imagine a World were You are able to Help without Being Payd.

Imagine a World were you are able to Create when You want to do this. Imagine a World without War and Violence. The only thing You have to do is Leave a Little Bit of Your Current Luxury behind.

If this happens the Downfall of the Bad Buck would be replaced by a tremendous Rise of Good Luck.

LINKS

How the Great Depression was created

About Derivatives, Accountants, Greed and other terrible problems in the Banking Industry

 

 

About Fools, Pyramids and Bubbles

foolsDuring the so called E-Commerce Bubble allmost everybody believed that when you sell something on the Internet you will become an instant multi-biljonair.

I did not believe this at all. The funny thing was that almost nobody believed me. I waited for the Bubble to burst.

To my surprise the E-Commerce Bubble became the biggest bubble I ever experienced. At a certain moment I even started to believe I was wrong and something really special was happening, The New Economy.

Later I discovered the reason why the Bubble was able to grow to an extreme proportion. The Long Term Economic Cycle called the Kondratieff-Cycle was at that time in an UP-mode. The Economy was expanding and many people were looking for a nice investment opportunity.

When the Bubble exploded the Kondratieff was moving Down and the Exploding Bubble excellarated the downfall.The Kondratieff will start to rise again around 2020. Until that time we will be in a state of Recession.

The people that promoted E-Commerce believed that Commerce was all about Communication. Just Tell Everybody You are There and Business will Come. But When Everybody is telling Everybody that they are selling Something Nobody will Find you. To find you they have to know what they are looking for. People used a search-engine to find what they were looking for.

E-Commerce created a new problem. The problem was “how to Manipulate a Search-Engine”. The problem was solved by the Search-Engine itself. Just Pay us and we Put You on top of the List. At that time I did not realize that the biggest money-maker in E-Commerce would be the creation of a “fraudulent” search-engine.

At that time we believed the only type of company that would benifit from E-Commerce was a Mail-Order Company. Amazon.COM was our favorite example.

I knew that the Old Companies were unable to create a Website with a connection to the Back Office. Their Legacy Systems would block them.

I reseached Logistics, Languages, Legal and Fiscal Issues and the big Cultural differerences between the many Countries in the World you could reach with one simple Website.I found out that there are a lot of questions you could ask about Commerce that many people never asked because Normal Commerce was “Just Happening”. We are immersed in Commerce and take many things for granted.

I got in contact with people in the US that where doing the same research. We decided to create a European CommerceNet. The EG asked me to participate in a big effort to solve the problems of SME’s in E-Commerce. We identified many issues that had be resolved.

Finally the Bubble exploded.

the-foolEconomic Bubbles are happening all the time. The simplest explanation for the appearance of a Bubble is The Bigger Fool Theory. When you buy something and your investment becomes questionable you believe you will always find a “a bigger fool” who pays the price of your life. Humans are positive thinkers. They believe they will always make a profit.

The bigger fool theory is an example of a positive feedback mechanism. Everybody feels things will go up. If this happens they want to become part of the tremendous success. What many people don’t realize is that positive feedback has to be compensated by a negative feedback.

Everything in the Universe is expanding and contracting. People who are entering in the beginning of the rise make a lot of money. People that join when the decline starts lose everything. A Bubble is a very complicated, unbalanced, unfair and sometimes even fraudulent exchange-mechanism. A fraudulent exchange mechanism is called a Pyramid-scheme or a Ponzi-Scheme. A Bubble is a Ponzi-Scheme where nobody is playing Mr.Ponzi.

In the E-Commerce Bubble many people used the Ponzi-Scheme to make a lot of money. I don’t want to offend my collegueas but I am convinced many financial advisors knew the Bubble would burst some day and did not tell this to the people they were advising. They did not tell the truth for many reasons.

They were completely ignorent about the technology and the effect of the technology on companies but the most important reason was sadly enough the fact that they were making a lot of money themselves. They became greedy. Greed is the Fatal Attractor behind all the Ponzi-schemes.

Economic Theorists proved that the Ponzi-Scheme can also be applied to other areas of our society like The Housing Market and the Government Pension System. All of them will finally end in a Bursting Bubble. The people that will win are always first users. The Housing Market Bubble is already exploding, The Pension Bubble is on its way.

LINKS

About Entrainment and Bubbles