QE is their only card

Faced with a weak economy, central banks in the US, UK, Eurozone, Japan and other countries are engaging in further rounds of “Quantitative Easing” (QE).

This means they buy bonds in financial markets with new money that they just create for the purpose. The effect is to keep interest rates down and to inject cash in the economy.

The logic of the exercise was explained in detail by the US central bank (“the Fed”) when it embarked on such programmes in November 2010: http://www.newyorkfed.org/education/lsap/index.html

And the same logic is invoked again these days.

The Fed says it’s doing this to reduce unemployment by supporting demand for goods and services through more money flowing in the economy and cheaper credit for potential buyers.

Most experts doubt that this will work, pointing out that there is already a vast amount of money in circulation, and that what hampers demand is a general lack of confidence.

In fact new money created by central banks when buying bonds goes straight in the pockets of investors.

The latter use this money to acquire investible assets such as bonds, shares, derivative financial products, property and commodities, which pushes these markets up.

But very little new money actually trickles down into the “real economy”, i.e. purchases of (new) goods and services produced by the workforce.

In other words QE contributes to asset inflation while having hardly any effect on jobs.

The true reason for carrying out QE is not to protect jobs but to keep heavily indebted governments, banks and property owners afloat, thereby preventing massive defaults on debts which might bring down the global financial system.

While central banks in cahoots with governments are playing this big trick, companies keep squeezing their workforce. With the consequence that large sections of the middle classes (from whom comes most of the demand in the economy) are now poorer and feeling vulnerable.

No good news for demand; more weakness in the economy triggering yet more restructuring by companies.

The global economy looks on the brink of a downward spiral, but governments and central banks have no other card up their sleeves than QE.

As said over and over again on this blog, there are no technical “solutions” to the apparent global crisis as long as most people have their minds trapped in the materialist mode of thinking.

But a subtle change is happening beneath the surface, which a minority of intuitive individuals can already perceive.

Fear not, sharpen your intuitive capacity.

Love,

Leo

Copyright © Leo Foresta 2012

Love in response to banking scams

Bankers crossed all limits long ago: http://www.guardian.co.uk/business/2012/jun/30/banking-scandal-barclays-lawsuits-libor

And they continue.

But this is above our heads and there is nothing people like me can do about it. – Not true!

Banks create money. Money rules the modern economy. The modern economy is destroying the world. Your present incarnation is part of the world.

You are here for a mission assigned by universal consciousness. Not to sit on your bum and watch it all happen without uttering a word or emitting a thought.

Be lucid. Tell everyone to be lucid.

And pass the word round that the only response to scams, injustice, crimes, stupidity and horrors is the infinite energy of pure love. Love without judgments, segregations and restrictions.

The choice is between the pain of burning rage or the soothing of pure love.

There is nobody to fight. There is no enemy. No one to hurt. No need for wars, armies, drones and generals. There is only a system of thought that ignores love and kindness.

This system will soon be de-programmed by waves of pure love.

And you can be among the thousands of pure love emitters.

Fear not, watch the full moon.

Love,

Leo

Copyright © Leo Foresta 2012

Flickers of lucidity in mainstream press

The recent article “Our volatile age defies spreadsheet strategy” by Gillian Tett in the Financial Times is one illustration that the depth of the crisis is at last starting to shake established certainties:

http://www.ft.com/intl/cms/s/0/acc852ee-ac0a-11e1-a8a0-00144feabdc0.html#axzz1wkbSGcp3

Here is an extract:

“Ever since the computing revolution took hold on Wall Street and the City of London in the 1970s, finance has been treated not as an art but a science – and banks have operated as if computer models could not just explain the past but predict the future, too.

Now those “quants” and rocket scientists find themselves at sea. Computer models alone can no longer calculate meaningful probabilities about what will happen next in the eurozone.

Instead, what really matters now in places ranging from Finland to Greece are non-quantitative issues such as political values, social cohesion and civic identity.

Above all, the question of “credit” is key to working out whether bonds can ever be repaid. But this is not credit in the mathematical sense by which banks have often defined it (as a projected probability on a chart), but in the old fashioned, Latin – social – meaning (belief).

The crucial variable, in other words, is whether voters have faith in their governments and central banks. Do they trust the safety of their banks? Are citizens willing to trust each other, and co-operate, when pain is imposed?”

And the article’s last sentence reveals a budding awareness of reality:

“We have entered a new “age of volatility”, and not just in finance and economics, but in politics and society, too”.

Only reality is much broader and more subtle than anything materialist thinking is able to convey, as regular readers of this blog know very well.

Still, it is encouraging to find in the main press a partial acknowledgement of the extraordinary transition unfolding before our eyes.

Fear not, read papers now and again.

Love,

Leo

Copyright © Leo Foresta 2012

Debts, jobs, nature

As the materialist system is nearing meltdown, a crystal clear understanding of what is presently going on in the world is extremely useful to anyone intent on full spiritual transformation.

Let’s start with debts, currently public obsession number one. Not without reasons.

Debts are the flip side of money. Every penny in circulation is created ex nihilo by a bank or central bank through a book-keeping entry involving a debt for exactly the same amount.

While a debt is generally held by the same debtor for most of its duration, the corresponding money flows between many players in the economy.

If there isn’t enough traction in economic activity, a significant number of debtors fail to make sufficient revenues to be able to service and repay their debts. To avoid this, monetary authorities ease credit conditions, and therefore create more money to sustain activity.

As an ever greater amount of debts requires ever more activity for debtors to be able to service and repay their debts, and as easier credit is practically always used to stimulate activity, a perpetual spiral is created.

In fact, it amounts to a Ponzy scheme at global level. Like any such scheme (where participants are paid with money just brought in by new entrants) it has to end badly (when the flow of new entrants dries up).

At some point creditors become worried, confidence in the system erodes, people consume and invest less, growth in the economy is slowed or stopped, resulting in some of the debts becoming impossible to repay.

That is presently happening in the economy of developed countries (and soon enough in other countries).

Now jobs.

Because today’s economy produces largely standardised products and services on a very large scale, using vast amounts of energy and sophisticated technology, it only requires the labour of a limited fraction of the total population.

Out of the 7 billion people on earth, roughly 1 billion workers are enough to deliver about 95% of world GDP. And companies are constantly doing their utmost to squeeze payrolls because labour is by far the largest cost factor in the economy as a whole.

It is therefore evident that the trend can only be towards more unemployment and more badly paid employees.

Last but not least, nature.

Although money is a pure abstraction, economic activities involve land, plants, animals, minerals, oceans, eco-systems, processes, chemicals, wastes, high frequency electro-magnetic and radioactive emissions,… etc.

Activities in the mainstream economy cause major interferences with natural equilibriums.

The overused word environment conveys an idea of décor somehow external to us humans. This is totally misleading: we are part of nature, we are constantly in subtle interactions with every other creature on the planet and beyond.

The great ocean plastic vortex, the mass torturing of cows, pigs and chickens, the killing of soils in intensive farming …all these large scale horrors resulting from a total lack of respect for nature directly affect our minds, bodies, and souls.

There are not just about the environment; they concern a complete system to which we belong. Materialists have tried to cut off our subtle links with nature, but that is impossible.

With a bit of intellectual honesty, none of the above is particularly difficult to understand.

All it takes is to free oneself from mainstream materialist propaganda. Which is the first step towards spiritual transformation, the only effective way to respond to the global crisis.

For reference on the economy, here is a recent piece from the Financial Times: “A diabolical mix of US wages and European austerity”

http://www.ft.com/intl/cms/s/0/7b84f1c8-a977-11e1-9772-00144feabdc0.html#axzz1wRRjvVfG

Fear not, stay calm and attentive.

Love,

Leo

Copyright © Leo Foresta 2012

Essilor shines in the market

Essilor is the world leader of corrective lenses.

This morning its share price was up 26% since the beginning of the year, after a great performance in 2011. In ten years it went up threefold. Not bad, eh.

Essilor’s business may appear relatively innocent compared to that of, say, Big Pharma or the agro-food sector.

And it certainly is much less harmful than corrective eye surgery.

But the fact is that it thrives on people becoming ever more stressed and anxious.

Why?

This was explained in some detail in a previous post: https://leoforesta.com/2012/02/11/medical-technology-is-great-for-gdp/

In short, the more deep seated fear, the more tension in the muscles controlling eye globes, the more pronounced the resulting optical faults.

Essilor’s success looks like a reflection of humanity’s profound unease.

Therefore, no regret at all about not being one of their “happy” shareholders (many of whom wear glasses or contact lenses themselves).

Fear not, and go for natural restoration of vision.

Love,

Leo

Copyright © Leo Foresta 2012

Debt pile only one view of the abyss

Events in the hologram show most people take for reality are turning more extraordinary than ever.

Debts, public and private, are now so large that they are becoming hard to service and replace, let alone pay back. This is not just in the Eurozone, but also in the US, UK, Japan, and many other countries.

China, the main source of hope for future world economic growth, has not only its own (internal) debt pile, but more importantly a colossal environmental liability.

The country’s soils, rivers, water tabs are destroyed and poisoned. Agricultural production has started to decline in quantity, not to mention its dramatically degraded quality.

To try and make up for this, the Chinese authorities buy land all over the world. Inevitably, this land will be damaged by chemistry-based intensive agriculture.

In Japan, the crisis at Fukushima is far from over. Millions of Japanese are much more affected than authorities will admit.

All nuclear production of electricity (previously 30% of the mix) is now stopped, replaced by the output of gas fired plants, requiring massive imports of gas which bring the country’s trade balance in the red.

Amazingly, the yen is still, for now, regarded as a safe currency.

We could go on; for example, also talk about the millions of tonnes of plastic bits in the oceans, the increasingly destructive exploitation of the last hydrocarbon reserves (tar sands, shale gas,…), GM crops, the effects of electromagnetic pollution, and so many other issues.

All of them interrelated.

Only the crudest intellectual dishonesty prevents the establishment from conceding that their materialist approach is crumbling. In fact, it has lost any kind of credibility in the eyes of lucid folks.

As yet though, only a minority are totally lucid, and spiritually advanced enough to stop clinging to a dying system.

The change of paradigm, inevitable as it is, does require courage and clear understanding. The latter implies not only intellectual grasp of events as they appear in the hologram of pseudo reality, but also intuitive recognition of the broader picture of existence.

This is why we share our thoughts on this blog.

Fear not, accept the clear messages of nature.

Love,

Leo

Copyright © Leo Foresta 2012

Over $100 million for « The Scream »

« The Scream » by Edvard Munch is unquestionably a piece of art.

But it is profoundly disharmonious. One might say a reflection of the times.

No sane person would want such a picture hanging in his home. It would fill the place with negative vibes.

Some rich people don’t see things that way though.

Here is the recent auction at Sotheby’s:

And this was the auction at Christie’s in 2010 where Picasso’s “Nude, green leaves and bust” sold for a slightly lower price.

Funny, I find the Picasso nicer, if still not completely harmonious.

But I haven’t got $95 million. Who cares? Somewhere down the line banks’ little IOU’s will have lost all value. And so will ugly pieces of art.

Fear not, go for genuine beauty.

Love,

Leo

Copyright © Leo Foresta 2012

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