Spain downs Portugal 4-2 on penalties, Euro 2012 prediction intact, Faith and Courage in the face of hegemony and collapse

6/27/2012 Portland, Oregon – Pop in your mints…

We are emotionally drained here after Spain’s victory over neighboring Portugal in the Euro 2012 semifinal which took place in the Ukraine.  From what we could tell, soveriegn credit quality was not mentioned nor did it have an impact on the match.  As such, the correlation between a country’s sovereign credit quality and Euro cup performance is still being tested.

Spain downs Portugal! Euro 2012 prediction intact

If Germany downs Italy tomorrow, the hypothesis will hold, at least as far as the semifinals are concerned.  We are predicting that Spain will disprove the hypothesis in the final and take the cup home.

Yet the Euro 2012, as are the Olympic games, which commence in just one tender month, are large scale distractions from the disease that ails the world and is threatening to rip it apart.  Yes, fellow taxpayer, the insane “debt is currency” monetary experiment of the past 40 to 100 years is beginning to disintegrate.

Someday the historians will write about our times and lament:  “They used debt as money, and corn as fuel,” or something to that effect.

While modern life is full of such contradictions, there are few with the potential to wreak such havok as the one where debt is forced into the role as money, which is akin to water being forced into service as oil.

But what is so bad about debt based currency?  Doesn’t the ability to create money at will buffer everyone from suffering another depression?

On the contrary, the fickle nature of electronically created debts masquerading as money is economic suicide.  This demands an explanation that we will not unduely withhold, for it about to burst out of us.

Capitalism is man’s only productive reaction to his Anarchic surroundings.  It is inevitable that man would choose an increasingly free and capitalistic society as he gains a deeper understanding of natural law and his rightly understood self interests.

The expansion of the capitalistic system relies upon the division of labor in which men (we include women as we use the term “men” to define all of mankind) increasingly abandon self reliance and begin to trust their fellow men to provide them with life’s essentials.

This process is good, for it inspires and encourages widespread effeciencies in all spheres as man’s natural tendency to economize is rewarded as his actions align with what we refer to as the demands of anarchy and the natural economic law of supply and demand.

While this process is good, it is dependant upon capitalistic principles to operate in all spheres without exception.  Any part of the system which succombs to hegemony (what we refer to as ‘Might makes right“) by one party causes all of those who mistakenly rely upon that part of the system to become vulnerable to its collapse.

The hegemonic parts of the system are prone to collapse because their existence is no longer owed to willing participation, but the use of force.

At the risk of oversimplifying a complicated issue, the more an organization encourages willing participation, the more it must adapt to the wants and needs of its clients.  The process of adaptation makes the organization extremely strong and stable.  It becomes a rock.

A hegemonic system, where organizations rely upon force to maintain thier positions, has already failed, for the organizations cease to adapt in a vain attempt to force others to adapt to them.  The organizations in turn become weak and prone to collapse.

The largest hegemonic system operating today is the world’s monetary system, and it is on the verge of collapse.  This debt based monetary system is especially dangerous because it has the effect of stimulating economic interdependence in much the same way that a healthy capitalistic system would while at the same time rendering useless or destroying the capital upon which a healthy capitalistic system relies upon to operate.

While the more perceptive members of society see it coming, the inevitable collapse causes the interdepence on which all rely to suddenly cease to operate.  The result is chaos and suffering for the unprepared.

While there are many ways to prepare for this, there is only one way to start.  It requires large amounts of humility, faith, and courage.

For now is the time to walk humbly with God and others.  It is time to step, on the right with faith, which is provided by God, and the left with courage, which comes from within.

Faith…courage…faith…courage…faith…courage as we work together to pick up the pieces of the failed experiment to build something new, something reliable, something that will last.

For walking humbly in faith and courage is to live in the Kingdom of God.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 27, 2012

Copper Price per Lb: $3.36
Oil Price per Barrel:  $80.42

Corn Price per Bushel:  $6.42
10 Yr US Treasury Bond:  1.62%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,585 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  8.2%
Inflation Rate (CPI):  -0.3%
Dow Jones Industrial Average:  12,627

M1 Monetary Base:  $2,192,300,000,000
M2 Monetary Base:  $9,933,900,000,000