<< Read Part I: A Tale Of Two Crashes

In the first part of this series, readers were presented with two separate but related expositions. First, readers were reminded of what is now a pattern of crime: the eight-year bubble-and-crash cycles manufactured by the Big Bank crime syndicate in the West.

The previous eight-year cycle ended with the Crash of ’08, making us merely weeks or months away from the Crash of ’16 . While some elements of this cycle are the same, such as another mammoth bubble in U.S. equity markets , several elements of the pattern are markedly different, for reasons which will be explained in this concluding installment.

One of the facets of this cycle which differs from the previous one is with respect to commodity markets. It is thus necessary to review the fundamentals for these markets, and explain how prices are supposed to be a function of demand and monetary variables—specifically the rate of currency creation (and thus “inflation”) manufactured by the world’s central banks.

Corporate media hides this reality, pretending that prices are purely a function of demand. This charade extends to the absurd pretense that central bankers can create their funny-money in ever-increasing quantities, while (supposedly) having no impact on prices—in commodity markets or elsewhere. This silliness was explained through an analogy in a recent commentary :

When you devalue a currency, you create inflation. It is the flip side of the same coin. Yet we have the corrupt regimes, particularly in the West, pretending there is virtually no ‘inflation’ in their economies, while they ‘competitively devalue’ their currencies. In other words, we have the utterly absurd scenario where Western governments are openly trying to destroy the value of their currencies as fast as they can via excessive money-printing, but claiming they are ‘unable’ to so – i.e. create inflation.

It is like going to a lemonade stand, and complaining that the lemonade is too strong. The 10-year-old proprietor replies that there is nothing he can do, because no matter how much water he adds, he can’t dilute the lemonade.

This is the Western monetary farce. We have criminal central banks creating paper funny-money at an unprecedented rate, which is backed by nothing, and then pretending that no matter how much they create, these ( worthless) currencies cannot be diluted in value. As is generally the case in our Wonderland Matrixof crime and corruption, the truth is virtually the opposite, in every respect.