Gonzalo Lira On The Coming Middle-Class Anarchy

Tyler Durden's picture

Submitted by Gonzalo Lira

The Coming Middle-Class Anarchy

True story: A retired couple I know, Brian and Ilsa, own a home in the Southwest. It’s a pretty house, right on the manicured golf course of their gated community (they’re crazy about golf).

The only problem is, they bought the house near the top of the market in 2005, and now find themselves underwater.
They’ve never missed a mortgage payment—Brian and Ilsa are the kind upright, not to say uptight 60-ish white semi-upper-middle-class couple who follow every rule, fill out every form, comply with every norm. In short, they are the backbone of America.
Even after the Global Financial Crisis had seriously hurt their retirement nest egg—and therefore their monthly income—and even fully aware that they would probably not live to see their house regain the value it has lost since they bought it, they kept up the mortgage payments. The idea of them strategically defaulting is as absurd as them sprouting wings.
When HAMP—the Home Affordable Modification Program—was unveiled, they applied, because they qualified: Every single one of the conditions applied to them, so there was no question that they would be approved—at least in theory.

Applying for HAMP was quite a struggle: Go here, go there, talk to this person, that person, et cetera, et cetera, et cetera. “It’s like they didn’t want us to qualify,” Ilsa told me, as she recounted their mind-numbing travails.
It was a months-long struggle—but finally, they were approved for HAMP: Their mortgage period was extended, and the interest rate was lowered. Even though their home was still underwater, and even though they still owed the same principal to their bank, Brian and Ilsa were very happy: Their mortgage payments had gone down by 40%. This was equivalent to about 15% of their retirement income. So of course they were happy.
However, three months later, out of the blue, they got a letter from their bank, Wells Fargo: It said that, after further review, Brian and Ilsa had in fact not qualified for HAMP. Therefore, their mortgage would go back to the old rate. Not only that, they now owed the difference for the three months when they had paid the lowered mortgage—and to add insult to injury, they were assessed a “penalty for non-payment”.
Brian and Ilsa were furious—a fury which soon turned to dour depression: They tried contacting Wells Fargo, to straighten this out. Of course, they were given the run-around once again.
They kept insisting that they qualified—they qualified! But of course, that didn’t help at all—like a football, they were punted around the inner working of the Mortgage Mess, with no answers and no accountability.
Finally, exhausted, Brian and Ilsa sat down, looked at the last letter—which had no signature, and no contact name or number—and wondered what to do.
On television, the news was talking about “robo-signatures” and “foreclosure mills”, and rank illegalities—illegalities which it seemed everyone was getting away with. To top it off, foreclosures have been suspended by the largest of the banks for 90 days—which to Brian and Ilsa meant that people who weren’t paying their mortgages got to live rent free for another quarter, while they were being squeezed out of a stimulus program that had been designed—tailor made—precisely for them.
Brian and Ilsa are salt-of-the-earth people: They put four kids through college, they always paid their taxes. The last time Brian broke the law was in 1998: An illegal U-turn on a suburban street.
“We’ve done everything right, we’ve always paid on time, and this program is supposed to help us,” said Brian. “We follow the rules—but people who bought homes they couldn’t afford get to squat in those McMansions rent free. It would have been smarter if we’d been crooks.”
Now, up to this point, this is just another sob story of the Mortgage Mess—and as sob stories go, up to this point, it’s no big deal.
But here’s where the story gets ominous—here’s where the Jaws soundtrack kicks in:
Brian and Ilsa—the nice upper-middle-class retired couple, who always follow the rules, and never ever break the law—who don’t even cheat on their golf scores—even when they’re playing alone (“Because if you cheat at golf, you’re only cheating yourself”)—have decided to give their bank the middle finger.
They have essentially said, Fuckit.
They haven’t defaulted—not yet. They’re paying the lower mortgage rate. That they’re making payments is because of Brian: He is insisting that they pay something—Ilsa is of the opinion that they should forget about paying the mortgage at all.
“We follow the rules, and look where that’s gotten us?” she says, furious and depressed. “Nowhere. They run us around, like lab rats in a cage. This HAMP business was supposed to help us. I bet the bank went along with the program for three months, so that they could tell the government that they had complied—and when the government got off their backs, they turned around and raised the mortgage back up again!”
“And charged us a penalty,” Brian chimes in. The non-payment penalty was only $84—but it might as well been $84 million, for all the outrage they feel. “A penalty for non-payment!”
Nevertheless, Brian is insisting that they continue paying the mortgage—albeit the lower monthly payment—because he’s still under the atavistic sway of his law-abiding-ness.
But Ilsa is quietly, constantly insisting that they stop paying the mortgage altogether: “Everybody else is doing it—so why shouldn’t we?”
A terrible sentence, when a law-abiding citizen speaks it: Everybody else is doing it—so why don’t we?
I’m like Wayne Gretsky: I don’t concern myself with where the puck has been—I look for where the puck is going to be.
Right now, people are having a little hissy-fit over the robo-signing scandal, and the double-booking scandal (where the same mortgage was signed over to two different bonds), and the little fights between junior tranches and senior tranches and the servicer, in the MBS mess.
But none of that shit is important.
What’s really important is Brian and Ilsa: What’s really important is that law-abiding middle-class citizens are deciding that playing by the rules is nothing but a sucker’s game.
Just like the poker player who’s been fleeced by all the other players, and gets one mean attitude once he finally wakes up to the con? I’m betting that more and more of the solid American middle-class will begin saying what Brian and Ilsa said: Fuckit.
Fuck the rules. Fuck playing the game the banksters want you to play. Fuck being the good citizen. Fuck filling out every form, fuck paying every tax. Fuck the government, fuck the banks who own them. Fuck the free-loaders, living rent-free while we pay. Fuck the legal process, a game which only works if you’ve got the money to pay for the parasite lawyers. Fuck being a chump. Fuck being a stooge. Fuck trying to do the right thing—what good does that get you? What good is coming your way?
When the backbone of a country starts thinking that laws and rules are not worth following, it’s just a hop, skip and a jump to anarchy.
TV has given us the illusion that anarchy is people rioting in the streets, smashing car windows and looting every store in sight. But there’s also the polite, quiet, far deadlier anarchy of the core citizenry—the upright citizenry—throwing in the towel and deciding it’s just not worth it anymore.
If a big enough proportion of the populace—not even a majority, just a largish chunk—decides that it’s just not worth following the rules anymore, then that society’s days are numbered: Not even a police-state with an armed Marine at every corner with Shoot-to-Kill orders can stop such middle-class anarchy.
Brian and Ilsa are such anarchists—grey-haired, well-dressed, golf-loving, well-to-do, exceedingly polite anarchists: But anarchists nevertheless. They are not important, or powerful, or influential: They are average—that’s why they’re so deadly: Their numbers are millions. And they are slowly, painfully coming to the conclusion that it’s just not worth it anymore.
Once enough of these J. Crew Anarchists decide they no longer give a fuck, it’s over for America—because they are America.
Update I:
The Center for Public Integrity has a story, written by Michael Hudson this past August 6, that shines a light on the issue of perverse incentives of the HAMP program. These perverse incentives came to light because of a whistleblower, a former employee of Fannie Mae, filing a lawsuit. Fannie Mae was so keen on being perceived as a money-maker, after the Federal government bailout, that the aid programs passed by the Congress and signed by the President were turned into profit centers.
The former executive, Caroline Herron, recounts:

    “It appeared that Fannie Mae officers were focused on maximizing incentive payments available to Fannie Mae under various federal programs – even if this meant wasting taxpayer money and delaying the implementation of high-priority Treasury programs,” she claims in the lawsuit. 

    Herron alleges that Fannie Mae officials terminated her $200-an-hour consulting work in January because she raised questions about how it was administering the federal government’s push to help homeowners avoid foreclosure, known as the Home Affordable Modification Program, or HAMP.

Herron further alleged that “trial mods” were implemented regardless of eligibility of applicants, so that Fannie Mae would be eligible for Federal government bonuses.
Ms. Herron’s testimony in fact proves Ilsa’s suspicion that there was a scam at bottom. As Mr. Hudson writes, “Herron charges that Fannie Mae continued in headlong pursuit of ‘trial mods’ even though it knew that many had little chance of becoming permanent. [. . .] Fannie preferred doing trials, Herron alleges, because it was eligible to receive incentive payments from the Treasury Department.”
So in the pursuit of these perverse incentives, people who did not qualify for HAMP were enrolled in the program. And when their “trial mods” were up after 90 days, they would be notified that they didn’t qualify—regardless of whether they in fact did qualify, as in the case of Brian and Ilsa.
All so as to be perceived as a profitable operation, worth having been bailed out. All so as to be perceived as “returning America’s money”.
As of February, 2010, of the over one million homeowners’ mortgages under HAMP auspices, 83% were “trial mods”. One would assume that those 850,000 homeowners would also be assessed an $84 penalty for non-payment.
$84 times over 850,000? You do the math.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dismal Scientist's picture

Is this why they call banksters 'Fat Cats' ?

Rodent Freikorps's picture


Cat just eat your soul while you sleep.

MsCreant's picture

Don't be so dismal, I think the doggy joked back with you Marvin.

Dismal Scientist's picture

As always, your lightest touch commands obedience, MsCreant. I will now return to perfecting my Space Modulator.

Rodent Freikorps's picture

I've always had a facination with Irish Wolfhounds, so I'm biased. Good to meet you, Ms. Creant.

I wish you joy.

Hephasteus's picture

What's so facinating about them? Europe would never have reached any sort of population if it weren't for them. There literally was 20 wolves for every human there and people were their main pray for a century. But mixing wolfhounds and humans together broke up wolves abitlity to defend against them.

i-dog's picture

Nah, CD ... you're fuckin crazy! It was just caused by some well-meaning Harvard, Princeton and Yale PhD's who mostly got it right but did make a tiny mistake or two here and there. No biggie.

How could they possibly have known that a $200-400 billion dollar a year deficit -- every year for 30 years and recently increasing to over $1,000 billion a year under Bush and Obama -- would require any sort of change in policy other than increasing the spending to pay for more wars and more social benefits? Did you expect them to be prescient or something?

Anyway, they couldn't possibly be planning to pull the system down and impose martial law over a country of debt slaves ... because they are too busy building FEMA camps, installing cameras and microphones on every lampost, arming the police and national guard with x-ray vans, riot control equipment and "don't chat, just taser" instructions, plus building up a 1-million-strong surveilance infrastructure, to catch a couple of evil terrorists who may be planning on sneaking in from the hills of central asia! How could they possibly manage both activities at once? ... there are only so many hours in a day!

And as for all that nonsense about sterile genetically modified food crops that are resistant to aluminium from chemtrails and are only good for one harvest, while heritage crops are dying from chemtrail sprays and GOM polution, thereby creating the potential hazard of no food at all for man or beast if anything goes wrong with Monsanto's seed deliveries one year, is just that ... abject nonsense! Couldn't possibly happen. No hedge fund would ever go long on that one coming about!

Better get yer tin foil hat ready. Just sayin'.

Cognitive Dissonance's picture


Everyone get the hell out of the way. The i-dog is i-rolling. :>)

Freebird's picture

Is this the Chumba reincarnated?

Freebird's picture

Is this the Chumba reincarnated?

Well is it....

Cognitive Dissonance's picture

I've actually been conversing with Chumba via e-mail over the past few months. And while s/he (I really don't know which it is though I think I know) hasn't told me if s/he has taken on another ZH ID and Avatar, I sometimes wonder if s/he has.

However, Chumba was one of the original thoughtful rebels (despite the occasional manic outbursts in the Israel threads) on a web site full of rebels. When Chumba went on a roll, nearly everyone knew they were in class. I have begun to notice that many here on ZH have slowly but surely been catching up to or with the early ZH pioneers. Maybe that's what's really going on here.

Is i-dog the son of Chumba? In some ways aren't we all. :>) 

Bob's picture

Funny, CD!  I'm glad to hear that (as far as one can tell via email) Chumba is not residing at Gitmo.  That was one radical cat whom I was suprised I came to like. 

I am not Chumbawamba [slow tear rolling down cheek] .

Cathartes Aura's picture

Chumba was his own, unique.

and sorely missed.

Bay Trader's picture


I have been reading ZH since February 09 and while the Tylers are the reason I read the stories, CheekyBastard, Chumba, Mako, B9K9, and yourself are the reasons I read the comments. Your piece on the collective mindset of Americans was brilliant and forwarded to everyone I knew who would read it.

Glad to hear that Chumba is still alive and well. I was beginning to worry that he went AWOL or was paid a visit by the men in black.

Cathartes Aura's picture


serious swoon i-dog.

And as for all that nonsense about sterile genetically modified food crops that are resistant to aluminium from chemtrails and are only good for one harvest, while heritage crops are dying from chemtrail sprays and GOM polution, thereby creating the potential hazard of no food at all for man or beast if anything goes wrong with Monsanto's seed deliveries one year, is just that ... abject nonsense! Couldn't possibly happen. No hedge fund would ever go long on that one coming about!

and THIS paragraph deserves repeating. . .all the guns 'n' golds 'n' "free" houses won't mean a thing if you're a slave to your next meal. . . or being slowly poisoned by simply breathing, or when they up the biowarfare.

respect i-dog!


UGrev's picture

Conspiracy, controlled down to minutiae, always fails because it's too easy to connect the dots. I agree with your light hearted post, however sarcastic it may be. 

It's so much more devious to conspire to cause chaos, plant the seed and let chaos grow on its own. It's also much harder to trace back to the source or sources. 

In that case, it comes down to school rules. Everyone in the classroom gets punished if no one fesses up.

In 1932, they jumped. In 2011, they'll need wings. 

Heroic Couplet's picture

If they voted for George W Bush, they have nothing to complain about. Take complaints to the Republicans in your state. Demand to know where the Bush tax cuts have created jobs.

All people living in houses underwater should be declared employees of the banks and custodians of the property they're living in. Let the banks pay them salaries to care for the property. The more the property cost, the more the banks have to pay for custodial services.

Let the custodians have a hand in correcting all the faulty paperwork, say, ten per year, because ten per year is way more than the banks have managed in the past decade. When the banks go bankrupt and collapse, then the custodians of the property collect unemployment indefinitely. The more bankers and FIRE employees  who end up on food stamps, the better. They're much easier to maintain that way.


Rodent Freikorps's picture

Tax cuts are to blame for the massive generational theft by the Ivy League?


Heroic Couplet's picture

Yep. My solution has at least two advantages: takes banks, the FIRE economy, and homeowners upside down on their mortgages out of the government space, which no Republican could ever object to. Solves the unemployment problem. If a house "cost" $400K originally and the banks have to pay 10% custodial fees, $40K per year to the custodians is nice pocket change. We'll see the banks suddenly decide the real value of the house is only, say $90. I've said all along the value of your house is the wholesale cost of the plywood and nails in India and China, and nothing more. Globalization.

Ricky Bobby's picture

What is with all the fucked schemes. We have a model that works and hasn't been tried in 100 years. Its called a Free Market.

Heroic Couplet's picture

Free Market in the case of jobs sent offshore (and lied about) and the FIRE economy, banking and housing has a synonym, a set of words that means exactly the same:  Intentional criminal intent.

Show me a Free Market where intentional criminal intent has been removed. I'll show you a Fair Market. As in, who in the h3ll would want to send jobs from a representative republic (the USA) to China (a dictatorship)?

chopper read's picture

jobs sent offshore


if Americans would work for what they are worth (not much), the jobs would still be here.  its true!



manufacturing jobs are not a 'right', they're earned.  create your own job.  ask your neighbor if you can pick up trash around his house for a few bucks.  call yourself an entrepreneur! 

Landrew's picture

Free Markets! Free Markets? You are kidding right? Even free market people who teach free market don't believe WE have free markets! Bank bailouts are free market? GM /Chrysler bailout? AIG bailout? We don't have anything like a free market otherwise we would be on the round to a healing economy although at a much lower standard of living. Free market, I laughed then puked! Really, I am horrified thinking anyone would even utter that out loud without fear of being called ignorant or an employee of the U.S. treasury ha!

AnonymousMonetarist's picture

Repost  December 14,2009

American Schemer: Synarchy for all


'Without the slightest artificiality of face, without the faintest counterfeit of voice,and without more than a slight exaggeration of natural manner, he could become the typical American schemer'.
- Famous American Actors of To-day (1896)

'Populism espouses government by the people as a whole (that is to say, the masses). This is in contrast to elitism, aristocracy, synarchy or plutocracy, each of which is an ideology that espouse government by a small, privileged group above the masses.'

'The story that democracy is not to last for ever is as true, and as little to the point, as the assertion that human reason is not to last for ever, since only democracy provides an institutional framework that permits reform without violence, and so the use of reason in political matters.'
-Karl R. Popper

The butterfly wings of the banks, too bankrupt to go broke, need imaginary pricing for their imaginary collateral -tis too humptied to get dumptied.

The state, too captured to go real, pressures the squints to 'Less Nessman' the bad speculative bets.

The bets, whilst still on the books, are an option ... the regulatory put socializing the downside, the upside beholden only to imagination.

Such an imagining is the MSR(mortgage servicing rights) bucketshop, where there is no active trading and hence the value in the bucket depends largely on the expected life of the mortgage.

Extend and pretend is the proposed means to mend. Pay no attention to the marks behind the curtain. What ever the banks want to show they show.

The Nancy Capitalists proclaim its' all good, and we all should support that which brings recovery home.

But a storm is being created.

What they fail to realize is that they are corrupting, not supporting the American Dream; through their desire to be prophets they have ceased to be makers of their own fate.

The American Dream is becoming the American Scheme as moral hazard is writ large.

With Mr. & Mrs. America feeling no compunction to walk away from their home if their neighbor does it, with the neverending Federales policy of exalting drunks and punishing the sober, with the phrase 'the whole thing's a Ponzi' being uttered by even the most ardent of conservatives at family functions - life is imitating the arts of the elites.

People are losing faith.

Lies have consequences.

Trust can be gained once and lost once. Once lost, it's lost forever.

The American Dream of working hard, making it, and making a better life for your children is being replaced by synarchy for all

Cognitive Dissonance's picture

What they fail to realize is that they are corrupting, not supporting the American Dream; through their desire to be prophets they have ceased to be makers of their own fate.

So nice to have you back AM.

I'd be willing to bet large sums of my precious metals that there has never been a group in power who, while driving their country/Empire into the bowels of hell, didn't delude themselves into believing they were doing "good" for those very same soon to be hell dwellers.

Of course, it doesn't hurt that their actions are also going to help them make it to heaven....or at least a bought and paid for beach in some South American banana republic, should things get out of hand.

You know, contingencies. Just in case......well.....you know.

chopper read's picture

+1, great post

Nancy Capitalists


more like "Nanny Capitalists".  everyone gets to play 'businessperson' in the sandbox of an expanding money supply, then velocity contracts and its off to bed without any supper.

Shameful's picture

We need a little anarchy, the state is killing us.  Everyone who is paying attention would know the rules only apply to us serfs.  The open criminality of our "leaders" should prove that.  We have a tax cheat as the head tax man for Christ's sake!  As this goes on it's going to be us or the State, only one group is going to make it into any kind of good future.  Anarchy could and indeed should lead to more liberty, read Rothbard.  It's not about chaos it's about choice and not having some bureaucrat standing on your neck.

kaiserhoff's picture

Well said.  Ask the Jews of the Warsaw Ghetto whether it's better to fight early, or when it's already too late.

williambanzai7's picture

It's gonna be very hard to ask them.

But it appears the banks are adopting storm trooper foreclosure tactics.

His Dudeness's picture

"It's gonna be very hard to ask them."

Even harder to understand their response.

Some questions just don't need to be asked. Like the time I'm at our local Walgreens at 1:00am on a Sunday night because our dog just returned from a romp around the neighborhood where she was smart enough to encounter the neighborhood skunk. (And you 'tomato juice bath' remedy thinking pukes out there... shut up and keep reading!) We had luckily came across this recipe on the 'net: 1 quart hydrogen peroxide, 1/4 cup dish soap, 2 TBsp baking soda ... combine these and lather up the dog. Additionally, they recommended a mild femine douche (I got 2) for if that mix got into the dog's eyes. So add a pair of rubber dishwashing gloves to protect my hands, and you now know what I had just plunked onto that Walgreen's counter.... And the clerk asked: "Will there be anything else?"

The guy obviously didn't know that when I throw a party... I throw a party right!!!

BTW, the mix worked like a charm!! The dog was in the house 35 minutes after her encounter without a trace of skunk smell! And my cherry for never having used a douche was broken! Priceless...

Cognitive Dissonance's picture

And my cherry for never having used a douche was broken! Priceless...

Thus the reason I'll never own a dog. I don't ever wish to use a douche. 

Unless (or course) it's to clean up after Bernanke and Company are done with my rear end. :>)

Cognitive Dissonance's picture

Well said.  Ask the Jews of the Warsaw Ghetto whether it's better to fight early, or when it's already too late.

When courage is lacking, one can always find the courage to conclude it's never too late. When finally proven otherwise, usually one doesn't stew long in one's cowardice for the end often comes relatively quickly. After reading many books on the WW2 Nazi (as well as Russian) concentration camps, the most popular attitude to take was for each and every person to believe that they will somehow survive.

Thus it was only when they were eventually marched off to the ovens or the firing squads were they finally forced to face their own cowardice. Even then, the ever accommodating Nazi's still helpfully enabled their denial by planting flowers and playing music for those who were walking those last few hundreds yards.

bronzie's picture

"We have a tax cheat as the head tax man"

along with an overweight surgeon general and a president who smokes ciggarettes when off camera

jesus_quintana's picture

Barry O smokes? I didn't realise that there was something I could actually like about him.

Every day's a school day.

Fred Hayek's picture

It would be admirable if he did it and just said, "Fuckit" and let you see.  Instead he hides it while his wife, the Patrick Ewing lookalike, goes around scolding america about whatever occurs to her at the moment.

Cognitive Dissonance's picture

"We have a tax cheat as the head tax man"

I just went through an IRS audit. When it came time for them to hand down their written decision, I noticed that they had tacked on penalties and interest.

So (of course) I asked them, in writing, if I could please get the "Timmy" treatment of waved penalty and interest. That didn't go over very well. Interestingly the "No" response was accompanied by an amended decision that tacked on even more charges. Oh well, time to pay some attorney fees.

No sense of humor in the IRS. :>)

DosZap's picture


And there's another agency that needs to GO AWAY.

Cognitive Dissonance's picture

I have often asked the various beetles, flies, spiders and the occasional cockroaches who visit my humble abode to go away. They don't respond well to my requests. I have ascertained this by the fact that they don't voluntarily leave. Sad really because I always ask nicely.

So now I must exterminate them......with extreme prejudice I might add. Though I've been told by a few close friends that this would simply be piling on and that extermination alone is sufficient to reach my goals. But I want those little bastards to suffer, suffer I tell you.

Landrew's picture

CD, sorry I had to run to work for a min. I have a few more questions so the logic side of me can move forward on this conspiracy. How many people would this take and what connections would they have to have in order to accomplish these tasks? How many events would it take in order to create even more control through dis-order and up-heavel? I know in my own dealings with extremely complex problems there seems to be a balance needed in order to solve for working solution. To many creates solution by committee (doomed from the start) and to few sometimes misses both ends of the spectrum. I am very interested in this and found several topics discussing The Octopus was first tentatively identified by a freelance investigative reporter named Danny Casolaro, who believed it linked such conspiracies as Iran Contra, BCCI, Inslaw to such government agencies as the CIA,FBI and the NSA. Of course he ended up in a freaky suicide? 

Cognitive Dissonance's picture

The more I studied this the more I realize that I had to learn a new language to understand. Or maybe I should say a new perspective. If I may explain.

If I live in a two dimensional world of length and width (ignore that there must be some height and just go with the flow here) then it would be nearly impossible for me to comprehend a three dimensional world that included height. I would need to gain that perspective before much in that world would make sense.

To give a real world example from my long ago high school education, I really struggled with plain (or two dimensional) geometry in high school and within 4 or 5 weeks it was clear I was going to fail. This didn't make any sense because I was very good with math. But the math just didn't make any sense.

The teacher also taught the solid (three dimensional) geometry class for the next grade and one day I asked him if I could sit in on that class instead of going to study hall. Within 30 minutes it all made sense to me. Suddenly not only did I grasp my own 2 D class but I was actively participating in the 3 D class as if I had always been there. I convinced the school to let me take both classes at the same time and I passed both with A's.

My point is that to understand what's going on we must see the big picture from a different perspective than most currently posses. And people are deliberately kept within the 2 D Matrix to blind them of what's going on in the 3D and 4 D worlds that are all around them but unseen. This is why when talking to people about the Ponzi, they simply don't see most of what is clear to you and I. Everything they deal with on a day to day basis shields them from the other realities.

There are 5 basic levels of control in this world. One will only see the levels they are trained and tuned to see. For most, they see only the first few levels, that of "government" and of "real or overt politics". The motor vehicle department, the IRS, the Department of Transportation etc is an example of "government". The House and Senate, the President, the state and country politicians, the school board are an example of "real or overt politics".

But there is a second level of politics, the 3rd level of control, which I call "covert politics" or "shadow politics" where the CIA/NSA and other countries intelligence agencies play. It's where strategic alliances are made that can never be publicly acknowledged, where black budgets are authorized without the vote of Congress and funded using drugs and weapons sales or financial fraud. In fact, much of the financial fraud of the past 20-30 years, the fraud that's coming apart at the seams, was the result of the "shadow/covert politics" level of control and the next one above that.

The next two levels are so far beyond the perception of the average and not so average Joe that they are dismissed as crazy or wacko or conspiracy. They are considered beyond fringe by the control systems below and are not ever acknowledged as real by the MSM or the first 2 levels except as out right denials or in a dismissive manner.

The 4th level is that of the "Brotherhoods" or "secret organizations" or the popular "Illuminati", though these terms are such hot button today that I don't like using them other than as an example. Without going into them much, because one must do their own research into the existence of them if their existence is to be believed, we hear about them all the time when we hear about "Skull and Bones" and "Masons" and so on.

What's not discussed is that these publicly outed "Brotherhoods" are not the source of the real power and have been outed primarily to take people off the scent of the center. In fact, these outed Brotherhoods are now often used to produce the stooges of the overt political world. Even one loves to be "in the know" including the stooges. They are also used as recruitment for the power level of the Brotherhoods, but not exclusively. This is where you will find most of the conspiracy you're looking for.

The final level is so beyond the comprehension of the average person that if I were to begin to discuss it here on an open forum, I would lose any credibility I might have at the moment. The layers below have done such a complete job of obscuring its very existence that anyone talking about it is immediately considered crazy by those still trapped in the 1st and 2nd and even 3rd levels. It's like taking someone from basic math to quantum physics. It's not a matter of difficulty in understanding as it is simple believability. To those who lived in caves, the Boeing 747 is magic.

chopper read's picture

But there is a second level of politics, the 3rd level of control, which I call "covert politics" or "shadow politics" where the CIA/NSA and other countries intelligence agencies play. It's where strategic alliances are made that can never be publicly acknowledged, where black budgets are authorized without the vote of Congress and funded using drugs and weapons sales or financial fraud. In fact, much of the financial fraud of the past 20-30 years, the fraud that's coming apart at the seams, was the result of the "shadow/covert politics" level of control and the next one above that.


spot on.  CD, i would appreciate it if you would continue on with your theories since you GAINED credibility with me in the aforementioned prose.  

Cistercian's picture

 That is because so much energy is expended denying the existence of the unbelievable level you refer to.It makes people afraid, and they self sensor from childhood.And the culture reinforces it.

  Few perceive it, which is a triumph for it.But some of us discern and observe it's operation.

   For it, things are very quickly falling into place.....which is bad.

 Note how you say speaking of it would ruin your credibility....now that is control.



Cognitive Dissonance's picture

Note how you say speaking of it would ruin your credibility....now that is control.

The ultimate control is the control that compels self censorship. However.

A number of years ago I did not self censor. My attitude was that if the average person couldn't handle it, too bad. But after a while I realized that I was only hurting myself and the person I was talking to if my intention really was to educate and inform. So many people use their higher awareness as a weapon to bludgeon the ignorant in order to feel superior or to release their anger rather than to inform.

It's a way of releasing their anger against the hidden machine and it's released upon those most familiar and available victims standing on every corner in America. When one is impotent against the real source of their distress, one will look for the good china to break. I realized I was somewhat guilty of this myself. Another ugly realization to swallow.

Our biggest mistake is forgetting that our knowledge base has been formed over weeks, months, years or in some cases decades. To expect someone to deal with all their cognitive dissonaces in a few hours of briefing from me is the ultimate form of arrogance on my part. How many times do I pull away from the open fire hydrant of information and knowledge in order to process and assimilate? How many times do the pieces come together ONLY after repeated immersions? And yet I expect others to absorb all I know in one or two sittings? Shame on me.

Seeing it from this point of view (and it's a very valid point of view because I self censor in order to pass on information, not deny information) I no longer ever have a problem with it as long as my motives are clearly understood by myself.

The slow and steady tortoise will eventually win the long race.

chopper read's picture

CD, i, too, am guilty of this.  my intention is to perpetuate a 'dripping' process, but sometimes my dripping turns into a sledgehammer for all of the reasons you have highlighted.  just know you practicing such personal restraint inspires me to do the same, although it does not come naturally.  either way, many, many measures can be taken to avoid being dragged down with the herd. 

Landrew's picture

Thanks CD, I work in physics so it wasn't hard to make that leap of connection to your theories. I have understood most of what you stated since the sixties ( open minds that communicate reveal everything). I understood early on when politicians, media, anyone in authority wanted you to look where they pointed you should look the other way to see what they were really doing. Distraction is a major tool of these groups. Funny you mention the Masons, my grandfather was a mason ( love the ritual). The world to me has always felt as though a war between extremely powerful groups has been waged not unlike that of any comic book and we are merely accidentals in the game. Working in dark energy will do that to you ha!

traderjoe's picture

Thanks for the post, CD. As always, good stuff. 

Just as a thought experiment, I could imagine the 5th level actually requiring very little direct 'effort'. Once the money systems (fiat currency, fractional reserve banking, private central banks) are set up, and dividends are assured, then the PTB can sit back and allow human nature to drive much of the direction/future action. The 4th through 0 levels, and their actions, would be relatively easy to predict. A gentle nudge here or there, perhaps a signal every now and then to a rogue operator, etc. But not so much a steady hand on the wheel, but automatic pilot with occasional inputs from the captain. 

On another point, I'm intrigued to see how MortgageGate turns things. Clearly, the eventual final burst of greed and sloppiness at the top of a parabolic credit curve can be 'predicted', without knowing how it will reveal itself. But I am hopeful that perhaps the shadow nature of levels 1-3 will be revealed as anti-thesis to the direct freedom and prosperity of the average citizen. 

Again, thanks. 

Cognitive Dissonance's picture

Just as a thought experiment, I could imagine the 5th level actually requiring very little direct 'effort'.


One of the conceits of man is that he has "control" when in fact he has very little. If we were to place a rat in a very large maze, the size of a basketball court, the rat would most certainly begin to think it had control over its decisions. It would set up a home or two, foraging areas, rest stops, storage depots etc. Yet it would always need to turn left at the end of this passage and a right at the end of that passage.

All the controller needs to do is close and open a few gates and the entire game changes. Yet the individual rat sees only minor variations and it might take a while before it even sees any change.