Open Source

Negative interest rate policy (NIRP) is here! That's right, money saved is earning negative interest. In other words, money saved is money lost. In addition, banks have implemented the nefarious "bail in" policy. If a bank becomes insolvent, it can seize the accounts of depositors to pay off its creditors. Yeah, that's all in place already. Soon, we will be robbed of all assets. Only the most affluent class (i.e., the "one percent") will be able to instantaneously recover both assets and ill-gotten gains.

Of course, cognitive dissonance reigns supreme amongst the masses. Even I have difficulty with the inevitability of financial collapse. Everything looks "normal." Lots of wage slave running around with "shit eating" grins plastered on their faces as they spend money like there's no tomorrow. Petrol is cheap. There's seemingly plenty of food, albeit expensive. Everyone is clutching a premium "smartphone." Social networking on the Net is the only concern. No worries. No cares.

Unfortunately, I don't feel any sense of security. There's something ominous lurking beneath the perceived stability. There's so much complacency around me that I could easily be duped into believing that my imagination is playing tricks on me. Yet, deep down inside, I know that something is clearly wrong. Politics, religion, economics, society ... now all deeply flawed. Lies must constantly be circulated in order confuse the masses. The most ominous sign is the gradual rise of the police and surveillance state.

The ubiquitous "smartphone," as I have previously postulated, is the most effective tool to control the masses and insure a high level of homogenous ignorance. The device is perpetually powered on for most people, giving them a sense of being "connected" and informed every second of the day. Instead, the device either sedates or feeds propaganda to the user. And, the device creates a chronic dependence which further facilitates subordination.

As also discussed previously in the "blog," the "smartphone" betrays the subordinate user. Every location is tracked. Every cell phone call is monitored. Every piece of e-mail is gleaned for personal data. Every social network transaction is archived. Heck, no transaction is immune from the surveillance gauntlet. The small device that people clutch in their hands all throughout their waking hours is an anathema to freedom. It is the tool to further the imprisonment of the masses in a prison-like society. Why else would people view its small portal as a conduit to everything that is conspicuously missing from their lives?

So, why did I give in and purchase a "smartphone," albeit a cheap one? Well, the homeless decision is a major factor. However, I rarely use the device aside from its ability to substitute for a tablet computer. I have it "just in case." Of what, I do not know. I have disabled all of the surveillance software and "apps." Location services are also disabled. It is as close to the Android Open Source Project (AOSP) as possible. But, I digress.

No one really believes (or cares) that the collapse of the "system" is imminent. Most of the doomsayers disappeared a few years ago when their dystopian predictions did not come true, much to their embarrassment. Collapse, as I defined previously, will only affect the masses. There's no indication that some form of "quantitative easing" (QE) and NIRP will not continue in perpetuity. Therefore, asset price inflation will affect three classes including equities, real estate, and some commodities. Bonds may also be affected, although it can be argued that the bond collapse has already transpired.

The collapse can only occur after as many suckers as possible are lured into those asset traps, including institutional investors. Subsequently, only when a large number of investors realize that asset prices have reached a ridiculous level, a major sell-off will occur. The "one percent" will be able to exit instantaneously. Then, the velocity of the sell-off will increase as asset prices deflate. The lowest tiers of the "99 percent" will suffer the most losses. In other words, there will be a huge transfer of wealth along three asset classes to the "one percent." Stocks will most likely be the first casualty, with the devastation cascading through the remaining asset classes in rapid-fire succession.

The true power of the collapse can only be understood when the massive "derivatives" exposure is laid bare. Just as it was prior to the Crash of 2008, there is a substantial number of "alphabet soup" instruments, all of dodgy quality, flooding the financial markets. Imagine that the money value is many times more than seven years ago. What does that spell?

Ol' Lavahead Mini-Update®
I have had to wash my clothes by hand at the Waimanalo studio rental unit because the fancy new washing machine is malfunctioning. There is also an outhouse near the garage because the cesspool (no sewers in Waimanalo) is backed up. The landlord appears to be in financial dire straits, most likely because of the renovation of the former Chaos Manor (read: rental housing). The landlord's son had secured a $400,000 construction loan for the renovation which is supposed to be consolidated into a third mortgage on the Aina Haina property (of which there is no equity). The Waimanalo property is being paid for by the landlord's husband and proceeds of the rental of the other house on that property. That's probably why the studio was offered for rental to me.