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April 19, 2013 / 74

“What Is Deleveraging. Why Is It bad?”

“What is deleveraging? Why is it bad?”

Deleveraging is when lending comes to a halt and the debts “reset”. Deleveraging can be done by people/governments either paying off what they have borrowed, or by defaulting on their debt (bankruptcy). In either case, at the end of the deleveraging, there is no debt.

Why is it bad? Well… it is but at the same time it’s not. The thing to remember is that deleveraging is like breathing – only it’s done by people/companies/the economy.

You see, things move in cycles. You know – you breathe in, you breathe out, what goes up must come down, what goes around comes around, etc. Everything moves in cycles. Some cycles are loooong, some are short – but everything moves in cycles.

Some people do better on the up cycle than the down cycle. Some do better on the down cycle. So what you get is a resistance to both.

If you don’t let the cycle proceed naturally the forces that REQUIRE cycles start to build up pressure to complete the cycle. And the pressure builds and builds until it blows up and the cycle is completed – but not in an orderly fashion. ie The continuation of an impeded cycle does vast amounts of damage to the systems.

The Powers That Be (PTB) do well on the economic up cycle. So they seek to prolong it as long as possible. And when it should reset, they prevent it from doing so. While the pressures build, these PTBs know what is coming and so delay the reset as long as possible while positioning themselves for the explosive reset and the resulting down cycle. So we see the same people/powers that benefit from the up cycle, taking over the down cycle, and using the destruction caused by the explosive turnaround to set up the next up cycle – with them on top again.

So the “bad” part of cycles is when they are artificially interfered with and they cause destruction, which the PTBs benefit from and the rest of us suffer from.

But the thing to remember is that the cycles MUST RESET and WILL RESET. If the cycles were left alone, ie protected from artificial manipulation, then everyone benefits from the up and down renewal caused by the cycles… which the bad people do not want.

The amazing thing is that there really are few “bad people” – at least those that you can point at and say “BAD.” There are just neighbors, and fathers, and sons, and the mechanics and the bankers and … well… people. You talk to them, you see them everyday… mostly two arms, two legs, and only one head. If the “bad people” had two heads it would be so much easier to sort them out and fix things so that they couldn’t interfere with the cycles. But they don’t.

So stand by. The turning of the cycles is upon us, and it has been long delayed so it’s going to be ugly when it resets. And you may some day stand next to one of the bad people who delayed the reset and you’ll both shake your heads and comment on how bad things are.

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