THE ASTEROID ASSET INFLATION PHENOMENON
Asteroids and their colossal value are back in the news again, according to an article spotted and shared by C.A.F. and E.G. Now folks, I have to tell you, when C.A.F. and E.G. both send me the same article, you know I have to sit up and pay attention. Most of you can, of course, figure out who C.A.F. is and why I'd sit up and pay attention. Trust me, E.G. is in a similar position...
As I said, asteroids and their colossal value are back in the news again, and E.G. even mentioned in the accompanying email that the article seems like "narrative preparation" for collateralizing asteroids:
What's interesting here is to note the inflation of "asteroid value." A few years ago we were feted to certain asteroids with estimated values of resources totaling about 17-18 quadrillion dollars, that's 17,000,000,000,000,000.00 which, gee whizz aren't we lucky, just happened to be the estimated value of all the rotten derivatives sloshing around in the financial ledgers prior to the 2008 meltdown, derivatives which are - I hasten to point out - still sloshing around on the books!
But now, thanks to the asteroid Davida, we're up to a cool 27 quintillion - 27,000,000,000,000,000,000.00 - dollars. The mere quadrillions of previously mentioned asteroids is mere pocket change. All we need to do now is discover some asteroids with values in the septillions, heptillions, octillions, nonillions and as the late senator Everett Dirksen once said, pretty soon we're talking about some serious amounts of money, though Senator Dirksen made his remarks long before the Asteroid Asset Inflation Phenomenon had set in.
And all this joy was made apparent after June 30, which is the U.N.'s "asteroid appreciation day," or something.
Now, why am I pointing out the phenomenon of Asteroid Asset Inflation?
The answer is very simple: while we are yet a long way away from practically mining asteroids, a venture which I've argued in many blogs and interviews is impossible to make practical and profitable using chemical rockets, there is absolutely nothing preventing the financialization of asteroids now. They can already be used as collateral if so desired; options can be bought and sold, like mineral rights and leases. There is nothing to prevent the financial system from doing so now. One may think of a simple analogy: geological surveys indicate that XYZ parcel of land is probably riddled with rich veins of rare earth minerals. A corporation is formed, and raises capital by selling shares, and uses that capital to purchase land and mineral rights. Loans are taken out using the assumed riches of the deposits as collateral, securities are bought and sold, and held by banks, brokerage houses, and so on, as assets. They in turn leverage these into more trades and assets, and so on, and all this before a single shaft has been drilled or a single ton of ore has been mined and processed. All one needs are some good geological reports of parts of rare earth per million, and so on, and we're off and running. Indeed, I've argued that the collateralization of space has been under way for a very long time, as part and parcel of what I've been calling a secret system of finance. Thus, what is happening now is really more of prepping the narrative for the eventual revelation that financialization and collateralization has already occurred.
This is what the asteroids now represent: a vast way to create more money by means of the collateralized assets they represent... Of course I'm overstating, because part of that collateralization process will involve the technology to go out there and get those assets, but rest assured, the very first demonstration of a "proof of concept" for any such technology will usher in a mad scramble of "asteroid derivatives" to go along with the current weather and pandemic bonds and derivatives. Never underestimate the ability of a bankster to financialize anything. And of course, I've argued that such collateralization already occurred as part of a hidden system of finance to create those very technologies. On this view, a narrative is not only being prepped, but the meaning of that preparation is that the hidden system is on the cusp of becoming public, or at least, a significant portion of it it.
It will be obvious that such a system is open to huge potentials for fraud. After all, you and I do not have access even to the technologies to determine asteroid value; none of us have spectrometers in our garages and space probes winging their way to the asteroids.
There's another problem, and I call it the "Spanish riches industrial poverty" problem. Assume that Country A manages to snag an asteroid and mine it and bring all that wealth back to earth to make things. Like the Spanish galleons bringing back the gold and silver of the new world, the result was a massive inflation of prices and wages inside Spain, and the corresponding fleeing of manufacturing to cheaper climes, like the Netherlands. The Spanish gold enriched the Spanish state, but impoverished the country, and ruined its manufacturing base to the extent that Spain which began in the 14th and 15th centuries as a major manufacturing and industrial power in Europe, declined within a mere two centuries to being a second-class power, never to regain its premier status.
I submit the dangers from asteroids might be similar, and even more so if financialization and collateralization occurs too early. The problem is, the banksters have shown they are perfectly capable of fraud on such massive scales, and in my opinion, the financialization has already occurred, which is one reason the financial system is in such a mess.
And there is, of course, a final problem: all this assumes that there are no "prior claims" on the asteroids and that they do not already belong to someone else. The problem is, if one believes the asteroids are the remnant of an exploded planet (as I do), and if that planet was inhabited, and if the descendants of those inhabitants are still around, then there's a problem... not the last of which is how such a claim would be presented, verified, and adjudicated.
Of course, one way to "adjudicate" such a claim is through raw force, or by sending a message via a "rocket" that the hairless monkeys on the blue planet have no idea where it originated from, and have it crash into the Moon...
See you on the flip side...
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