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August 13, 2015 | Creative Destruction now Developing in all Markets!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Capitalism must cleanse itself eventually via creative destruction. This will soon happen as our bit-currencies implode and trader confidence collapses. The suppression of silver/gold prices reveals how serious our Central Planners view our current financial situation. If gold and silver were not important than our hierarchy of  monetary leaders would not attempt to suppress these prices (now on a daily basis and for some four years). When investors finally turn to a solid safe-haven like silver/gold we will know that the End Game is here. This is now starting to develop slowly. At some point all the physical silver/gold will vanish into the strong hands of those who discern what is now happening.

China may start the trend towards Creative Destruction! This nation is in serious trouble!

I have demonstrated for the past seven years that our fiat/cyber currency is really nothing but an imaginary unit of our consciousness. This makes all our financial assets subject to collapse as trader confidence collapses in the coming months. Subjective money (our current global currencies are all subjective units) creates huge distortions in values and prices over time. The world has experienced subjective currencies (called money) since 1973. This means that for 42 years our financial assets and our prices have experienced value distortions, instability, and Central Planner manipulations. The degree of distortions have never been greater than today. All this leads to Creative Destruction.

Capitalism is now mostly over! Debt, Derivatives, Funny money, and Central Planning reveal its demise!

The two core concepts of Capitalism are the following:

  1. Value:  this concept is foundational to Capitalism, trading, lending, saving, and investing. This concept is internal (an inner concept of our mind) and we objectify this concept with a chosen item from nature. The most desired item from nature which traders and investors have chosen for thousands of years is gold and silver. All of Capitalism emerges from those safe-havens (proxies for value) which hold their ‘value’ over time.
  2. Money:  the concept of money emerges to solve the riddle of ‘value’. Since ‘value’ is subjective and internal we need a concept called money to serve as our proxy for ‘value’. To serve as a proxy, money needs to be tangible and desirable in the marketplace as substitute for ‘value’. Think of ‘value’ as the core concept of Capitalism and ‘money’ as the substitute for this core concept when trading, exchanging, lending, saving.

The end game of Capitalism is when the strong hands of the wealthy develop fears of a collapse. History shows that cycles in our markets are real. The long-wave cycle for a fiat currency is usually not more than 40 years. We have now exceeded this cycle by two years and counting. The American dollar was viewed as a proxy for gold until President Nixon closed the gold window in 1971. Then is 1973 our Central Planners developed a new model for our dollar (without any backing or direct tie to gold). This means that we have now experienced a pure fiat (unbacked) currency for some 42 years. The distortions in prices and values has now reached a threshold level. The time for Creative Destruction is here!

Capitalism started as a decentralized system where the individual was supreme. It has evolved into a centralized system where banksters control the outcomes. The End Game is now here!

We witness that volatility and fragility of all our markets in real-time daily. Our stock markets are unstable. Our bond markets are in a bubble. Our derivative assets are in the quadrillions. The policies of our Central Banks have reached an End Game. The final straw for Central Planners is QE and Loans to the wealthy. These actions have now been followed for some 7 years with minimal success. The only alternative left for Capitalism is a final wave of Creative Destruction where asset prices and values collapse. This leads to debt moratorium, bankrupt firms, liquidations of debt, deflation, and panics among traders and investors. The End Game has arrived!

This economist coined the word, CREATIVE DESTRUCTION! This cycle is now here!

The wise will now recognize the current cycle (time in history) which is upon us. The system is ready to implode and all assets are vulnerable to a huge change in prices going forward. The Downside of Keynesian Economics is here. Keynesian Economics is based upon Debt, Credit, Money Velocity, Inflation, and Central Planning within our Central Banks. All these forces have reached their End Game and no longer work effectively. This means that Creative Destruction must now happen. Fear tends to accelerate and traders and investors turn to a solid/historical safe-haven. What is the best safe-haven based upon 5000 years of history? Yes, it is gold coins (and bullion), silver coins (and bullion), and successful mining companies which produce these safe-havens.

The foundations of monetary Capitalism are the money commodities called Gold and Silver!

The suppression of the spot price of silver and gold will continue until it ends. The End Game of suppression arrives when the physical supply is in the strong hands of the wealthy. This is now starting and the trend is likely to continue for many years. Creative Destruction is a multi-year event. The start will likely be in 2015 (soon) and the end around 2022. The next seven years is when this safe-haven of silver and gold will prove to be a sound investment. Eventually, we will need a completely NEW MODEL for our planet. This, however, is some seven or more years into the future. Now is the time to prepare for Creative Destruction and the End Game of Capitalism. Enjoy! I am:

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August 13th, 2015

Posted In: Kingdom Economics

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