How do you put into words what shouldn’t or couldn’t easily be put into words? I had intended on posting this after Christmas and I had intended on writing a long treatise complete with a set of references (see below) but I decided that the math would likely be way over too many people’s heads and this article would be glossed over by 99% of the people reading it.

Instead, I’m going to tell you as easily as I can that “it’s over” and there isn’t much, if anything, that can be done about it. What is over? Well, the banking system is over, the stock market is over, the credit system is over and our political system may be over soon too. The best case scenario might be marshal law until the whole thing can be rebuilt brick by brick.

Let me state clearly that I don’t think the world will come to an end without these things because modern humans have survived on this planet for the last 200,000 years without much of a banking system but the world as we know it, experience it and live it is going to drastically change. Lol! That’s perhaps the irony, the recent presidential election was about “change” and people are in store for a change that they did not anticipate or expect.

I am seeing an apparent logarithmic deflationary decay in many of the numbers coming out all over the place and the “bad” information is accelerating exponentially. Real unemployment is running somewhere between 12% and 18% and the job losses are accelerating. Real GDP is 3% negative and getting worse.

Chart of U.S. Unemployment

Chart Courtesy of ShadowStats.com

Chart of Growth in U.S.Gross Domestic Product (GDP)

Chart Courtesy of ShadowStats.com

Let me try to summarize some key points:

If 80% of the wealth is controlled by 20% of the populous, what happens when those top 20% start losing money by the billions? Think of the cascading fractals from a self contained “economic ecosystem” that is in logarithmic decay.   All of the “solutions” offered by the government goons do nothing more than simply transfer the pile of crap from point A (the losers that caused the problem) to point B (the tax payer).   These solutions “solve” nothing.   I get the sense that the only thing that will “fix” the system is replacing it (e.g. a total collapse).

We’ll see how the next 12 months unfold.

News Sources: Japan, Australia, China, Canada, Russia, UK

References: Damping Ratio, Hoover Index, Benford’s Law, Zipf’s Law, Lorenz Curve, Pareto Distribution, Gini coefficient