The writings on the wall


“The writings on the wall” It’s a well known term normally used to insinuate an impending negative outcome. It also hints that some see it and some don’t.

The origins of the saying can be found in the Bible (Daniel 5) where human like fingers miraculously appeared inscribing a message on a wall where Belshazzar (then king of Babylon) was throwing a mass drunken party for one thousand of his senior officials “lords”. None of the kings “wise men” could interpret the writing, finally Daniel was called and interpreted the strange writing saying the famous words “you have been weighed in the balances and found wanting” (Sorry to disappoint some who thought these words originally came from Hollywood)

That very night Babylon was sacked by Darius the Mede (The Mede’s & Persian empire starts). When I look at the world today the officials seem drunk and dazed, they can’t seem to read the writing on the wall..

It’s not that America, UK and Japan print money to “fix things” but that they are printing money in the first place!  It’s not that republicans and democrats may come to an agreement to avoid a US Government default but that there is a US government default possibility at all!
It’s not about the type of “bail out” or “bail in” a country gets, it’s the ever increasing list of counties that need help.

Ten years ago if people came across a wall where a financial newspaper from today was pinned up, and read it, they would be utterly shocked. There are dire warnings everywhere, debts have become too big, they are not sustainable or payable, default is inevitable. It’s not a time to have ones head in the sand, we need to be alert.

Clearly the world financial system is on borrowed time, it should be evident that the only way to maintain it is to print more and more money to pay for the interest on debt in an ever increasing spiral.
Printed money is fake money that does real damage diluting the capital base of a countries financial system.

You cannot have a capitalist system based on money that has no capital backing. The irony is that you can see capitalism being blamed for the impending situation yet it is the lack of and debasement of capital that is a major issue.
Howard Buffet (Warren Buffett’s father) stated:

  “Lenin declared and demonstrated that a sure way to overturn the existing social order and bring about communism was by printing-press paper money” 

With this in mind read the below excerpt from an article in the main stream financial press, It just sums up the state of the addiction to printed money, it would be really funny if it were not so tragic:

 “Stocks advanced for a second straight day on Wednesday as a broad measure of economic growth was revised down, easing investors' concerns that the Federal Reserve would begin to withdraw its stimulus early.” 
 So no need to worry, things are still bad so money printing will continue so things are good!

The writings on the wall.

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