Guest Post: Dangerous Economic Misconceptions

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 09/07/2010 - 11:11 | 567241 Widowmaker
Widowmaker's picture

Excellent post.

Rememeber, wrecked lives (and war deaths) = record bonuses on Fraud Street, to hell with the future and common good when systemic failure of a few is rewarded by the theft from many.

Also don't forget, nobody saw it coming and that makes breaking the law okay.

Banks vaults are only full of lies, not money.

Tue, 09/07/2010 - 16:15 | 567843 Turd Ferguson
Turd Ferguson's picture

The latest from A E-P. I'm surprised this hasn't been discussed today regarding the "inevitability" of QE2+

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/798280...

Tue, 09/07/2010 - 11:04 | 567250 SWRichmond
SWRichmond's picture

I wish I was possessed with talents, or possessed of any thing that might enable me to elucidate this great subject. I am not free from suspicion: I am apt to entertain doubts. I rose yesterday to ask a question which arose in my own mind. When I asked that question, I thought the meaning of my interrogation was obvious. The fate of this question and of America may depend on this.

There are sufficient guards placed against sedition and licentiousness; for, when power is given to this government to suppress these, or for any other purpose, the language it assumes is clear, express, and unequivocal; but when this Constitution speaks of privileges, there is an ambiguity, sir, a fatal ambiguity — an ambiguity which is very astonishing.

But we are told that we need not fear; because those in power, being our representatives, will not abuse the powers we put in their hands. I am not well versed in history, but I will submit to your recollection, whether liberty has been destroyed most often by the licentiousness of the people, or by the tyranny of rulers. I imagine, sir, you will find the balance on the side of tyranny. Happy will you be if you miss the fate of those nations, who, omitting to resist their oppressors, or negligently suffering their liberty to be wrested from them, have groaned under intolerable despotism! Most of the human race are now in this deplorable condition; and those nations who have gone in search of grandeur, power, and splendor, have also fallen a sacrifice, and been the victims of their own folly. While they acquired those visionary blessings, they lost their freedom.

                                -Patrick Henry, 5 June 1788


Tue, 09/07/2010 - 13:27 | 567525 cougar_w
cougar_w's picture

Thank you for reminding us of what was/is at stake.

Nothing is a given. Nothing can be assumed. Everything is in play. Those who know this will take sides and fight to push the pendulum this way or that, towards less or more concentration of power, while the rest watch in dumb incomprehension.

Always it is this way. The battle never ceases. It is only won or lost for an instant and then it begins again.

Tue, 09/07/2010 - 14:25 | 567638 i.knoknot
i.knoknot's picture

great quote and responses.

lately, i'm starting to believe that most people who read what you (and others like you) have written, *don't* actually understand what you/we mean by "Nothing".

when you indicate that 'nothing' is out-of-bounds, somehow they think you mean "well, nothing, within the bounds of reasonable behavior" or sum-such.

i'm comfortable that you *really* mean that *anything* can happen with these morons who lead us, and that absolutely no horror is beyond their consideration if they believe it will protect their image of their current or future world view. fake a religious attack, sure. nuke a *real* city? why not? anything to get those sheeple back in line...

nothing is out of bounds, folks. nothing.

 

Tue, 09/07/2010 - 17:36 | 567804 DaveyJones
DaveyJones's picture

I'll second that. Ironic that it's comforting to know that others, at least others whose intellect and honesty you've come to respect, think it's all going to hell as well. In times like this when everything is literally insane, you need this more than anything just to keep from doubting your own.

The article is incredibly well written capturing all the psychology, propaganda, and constitutional subversion that is now our inside out / Nazi meets Patrick Henry reality. Thank you for posting it Tyler.     

Tue, 09/07/2010 - 23:41 | 568781 RockyRacoon
RockyRacoon's picture

I agree.  There was a cut-to-the-chase feeling about the article that is not commonly found in economic reporting.  The lack of waffling was refreshing.  Now if we could get that kind of candor out of our "leaders" we just might have a chance.

Wed, 09/08/2010 - 19:23 | 570690 iota
iota's picture

The lack of waffling was refreshing.

 

+Much.

Tue, 09/07/2010 - 13:43 | 567555 spekulatn
spekulatn's picture

OUTFRIGGINSTANDING post SWRichmond. Thanks for sharing.

Tue, 09/07/2010 - 11:06 | 567253 williambanzai7
williambanzai7's picture

This is a gold mine of reading!

THE ECONOMIST

http://williambanzai7.blogspot.com/2010/09/economist.html

Tue, 09/07/2010 - 11:08 | 567256 Sudden Debt
Tue, 09/07/2010 - 11:12 | 567264 andyupnorth
andyupnorth's picture

"In economics, bad news encourages bad events, whereas the truth is hazardous.  For the economy to remain healthy, the establishment must continue to lie."

Brilliant!

 

Tue, 09/07/2010 - 15:20 | 567760 doolittlegeorge
doolittlegeorge's picture

is it bad that they lie?  they can and do do far worse yes, yes?

Tue, 09/07/2010 - 11:13 | 567267 NOTW777
NOTW777's picture

liberals always attack the person because they cannot defend or justify their positions on the merits.

we live in an era where the fruits of the excused clintonesque lie bears its fruit.  more lying produces more lying and with each lie that is allowed uncontested, the course is set for more lying.

the media is generally a cancer on america

Tue, 09/07/2010 - 11:28 | 567279 Widowmaker
Widowmaker's picture

Don't be silly.   The cesspool of lies in the US goes back to LBJ and the Kennedy assassination (at least!).

It is during this time that the US government ceased telling truth (at all) -- lies became official policy.

Tue, 09/07/2010 - 12:34 | 567379 tmosley
tmosley's picture

Woodrow Wilson's administration is closer to the root.

Though the seed was planted with Lincoln's crusade.  The seed was formed in the hypocritical practice of slavery.  If we had never had slavery, it is likely we never would have trod this path.  Where would we be now if the founders had had the courage to smash slavery with the founding of this nation?

Tue, 09/07/2010 - 12:43 | 567424 aerojet
aerojet's picture

I love these exercises in trying to figure out when it all went  bad.  Folks, it wasn't Wilson, go back to the 1790s and then you have your answer.  I think the Founding Fathers were banksters out for a score, too.  Everything we believe about America and democracy is a complete lie. 

Tue, 09/07/2010 - 13:11 | 567480 tmosley
tmosley's picture

No, it is not a complete lie.  It's just that the lie has overtaken and consumed the truth, like the strangler fig, it has killed the host (freedom/democracy/America), and left only the lie.  There was once a real and vital free market in America, even if it was tainted from the beginning.  That does not mean that the principles they espoused were wrong.  It's just that they failed to consistently adhere to their ideology.

And it has left us, like the strangler fig that has killed its host, vulnerable to collapse.

http://en.wikipedia.org/wiki/Strangler_fig

Tue, 09/07/2010 - 15:10 | 567734 ZackLo
ZackLo's picture

If our founding fathers were as he suggests, we would have had a king and never would have a republic.

Tue, 09/07/2010 - 16:07 | 567829 tmosley
tmosley's picture

It's not that they were corrupt, it's that they weren't perfect.  If they had been perfect (by abolishing slavery immediately), the US would likely still be free.

As good as they were, they bought us less than two hundred years of liberty with their blood.  Hopefully next time around we can make it last a little longer, or, in a perfect world, create a system based around the individual, which can last for as long as there are free men.

Wed, 09/08/2010 - 00:12 | 568824 JethroBodien
JethroBodien's picture

Human nature will always pervert any ideology. 

Tue, 09/07/2010 - 13:40 | 567548 SWRichmond
SWRichmond's picture

Sorry, you are confusing "Founding Fathers" with "Hamilton".

Tue, 09/07/2010 - 14:45 | 567674 Bendromeda Strain
Bendromeda Strain's picture

Where Jefferson and Adams were esteemed opponents, both had major problems with the machinations of Hamilton, the ideological father of the bankster and the MI complex.

Tue, 09/07/2010 - 12:50 | 567434 Goldilikes permabear
Goldilikes permabear's picture

Where would we be now if the founders had had the courage to smash slavery with the founding of this nation?

 

Look at the top picture.  picture of white family cruising around in car all happy. notice the color of every single person waiting in line to get food.  i couldnt create a better picture of irony.  i hate to generalize but we need to take a closer look at the groups who contribute little to nothing yet suck the lifeblood from this country through UI, food stamps, fed programs, etc. and contribute the most to crime, hatred, murder 

Tue, 09/07/2010 - 13:14 | 567488 tmosley
tmosley's picture

Collectivism such as yours has helped steer America toward it's terminal decline.

Think about the differences in groups all you like, but continuing to think in such terms will eventually bring you or your family grief beyond bearing.

Judge individuals by the content of their character, not groups by the color of their skin.

Tue, 09/07/2010 - 13:36 | 567539 spekulatn
spekulatn's picture

Well said, tmosley.

Tue, 09/07/2010 - 13:58 | 567588 hidingfromhelis
hidingfromhelis's picture

Well said x2!

Tue, 09/07/2010 - 14:34 | 567652 grunion
grunion's picture

Gross, now you're pandering.

Tue, 09/07/2010 - 14:43 | 567669 Goldilikes permabear
Goldilikes permabear's picture

 

Judge individuals by the content of their character, not groups by the color of their skin

   ok MLK i'll get right on that, just let me finish off with these 2 white hookers and get to a good stopping point in marx's novel.  as far as grief beyond bearing, i have no idea what the fuck that means or how it has anything to do with observing which groups in this country are actually net producers.  all i am saying is that when shtf, you will see which members of society lose all control and resort to the most primitive human actions of violence and theft.

 

http://www.martinlutherking.org/thebeast.html

 

Tue, 09/07/2010 - 15:00 | 567707 tmosley
tmosley's picture

If you have ever read anything that I have posted on this or any other website, you would have seen that I am as far from a marxist as it is possible to be.

You seem to think that an individual's character has no meaning, but rather that a person's impact on society is dictated by the color of their skin.  This is collectivism, and it is a deadly disease.  This is not to say that others are not under the spell of collectivism.  Many in the black community are firmly under it's grasp, but there are many who are not.  Witness the 37% support that Rand Paul has among blacks.

You will also notice that I did not attribute the phrase to MLK.  I formed the words on my own, and you will notice that it does not match his famous quote in anything but content.

Tue, 09/07/2010 - 14:45 | 567673 i.knoknot
i.knoknot's picture

goldi,

while it *is* ironic, this image is a well-known icon for a reason... appears everywhere, doesn't it... why?

if the country during the depression was 80% white, and the unemployment rate was 20% (of the entire country!), then one can assume that most of those friggin lines were ... (here it comes...) WHITE! (sure, maybe disproportionately minorities, but... you can't just discount a few zillion whites anymore. can you? nevermind. and weren't the irish, polish, ... the minorities of the day?)

read the article again and you might actually catch the irony within your perspective.

baaaaah baaaah meeehhh

BTW, the founders (esp. Geo Washington) knew for certain, that to take on the southern slave states at the country's outset, would have resulted in no effective union of states to fight England, and therefore no USA. conscious decision on the part of the founders. fact.

speculation: everything below virginia would probably have been far more substantially french and/or spanish speaking/ruled, until a much later date. north would have remained far more british.

"bygones..." (alli mcbeal, circa 1990s)

Tue, 09/07/2010 - 14:58 | 567704 Goldilikes permabear
Goldilikes permabear's picture

read the article again and you might actually catch the irony within your perspective

 

i did, so maybe you could help me out here?  my perspective/conclusion was that for hundreds of years new groups and races have come to this country and flourished through hard work, intelligence, etc. just look at the indians, asians, mexicans here.  they didnt have shit and yet were able to migrate to this country and prosper in a fraction of the time other groups have been here. and yet we're still somehow bringing his ass down and still owe reparations for his great great great uncle.  WTF?  in my opinion, that is why this country is fucked.  we have millions of thugs and worthless mouths who have no intention of working or contributing to society.  the sad part is that this type of environment in which they can survive only exists because of our govt. created it.  the reset button will strike a great blow to these unprepared slaves  

Tue, 09/07/2010 - 15:18 | 567741 i.knoknot
i.knoknot's picture

perhaps we're in agreement

i look at those racial minorities around me that ... have made it. and there are plenty. and i hope to be like them 'when i grow up'. the guy who serves my burger is a minority. the woman doing my refi ... is a minority... hmmm.

those that lead our council meetings, teach our kids, mow the lawns of their own (solvent) homes. those that get up early, work hard, save, educate their kids, support their spouses, etc. all ... minorities? in food lines? i think not.

to read some, one would think there are no such minorities in america. hell, "look at the picture... see?" no whites! all victims of "the man".

i see that this victim-infested place (amerika) you think is such a mess, is actually still a place where people who produce can succeed, and those that have been taught (intentionally) to look outside themselves for their support, dont do so well. funny. it's always been that way, suddenly it's an american problem?

let me invert this logic for a second:

there are a whole bunch of lazy-ass white folk victims out there too, and they aren't doing so well.

lastly, does it really surprise anyone that a new influx of resource poor immigrants would be the hardest hit by a downturn? WTF? do folks expect that they will cross the border and suddenly have as much as the third generation irish mine-worker's grand-kids who have as much smarts and a three-generation social and physical baseline?

we've got to get over this race/victim game. it's already whithered.

Tue, 09/07/2010 - 13:16 | 567493 fiftybagger
fiftybagger's picture

If the founders would have "smashed" slavery as you say, they never would have formed the union.  For an essential element of the separation of powers was state sovereignty.  Rather than forming a union, they would have formed a federal tyranny like we have now.

Tue, 09/07/2010 - 14:47 | 567682 i.knoknot
i.knoknot's picture

++

i hadn't much thought of what would have probably been formed. nicely put.

Tue, 09/07/2010 - 15:07 | 567727 tmosley
tmosley's picture

One can go as deep down the rabbit hole as they wish.  The answer that lies at the bottom scares most people.

The only real way to have freedom is to have a stateless society.  Some call this anarchy, though that definition has long been co-opted by those who fail to recognize natural rights (life, liberty, property, specifically property).  Ultimately it must come down to the individual, and the right of free association.  All the benefits that the state claims to provide can flow from that type of interaction.  

Writers on mises.org have outlined how such a socity could work.  There is a functioning prototype in Somalia which has survived decades of invasion, though it suffers from the severe flaw that social insurance is provided by clans rather than by companies, but that is a conversation for another day.

Tue, 09/07/2010 - 12:31 | 567394 Maniac Researcher
Maniac Researcher's picture

[deleted - correct location of response below]

Tue, 09/07/2010 - 13:12 | 567485 NOTW777
NOTW777's picture

i agree that lying is not new but in our modern age when celebrities and politicans do it so blatantly that it becomes fashionable and acceptable, it spreads like a disease.  even when they superficially apologize, they do not accept responsibility. they call is a "mistake" or "misstatement" or blame someone or something. 

Tue, 09/07/2010 - 11:16 | 567273 cossack55
cossack55's picture

I have been an actor in various historical events over the last 45 years, this time I think I will just be a spectator and enjoy the show.  Seeking the truth is analogous to panning for gold... a lot of work and watch out for the fools, but a possible large payoff at the end.  Please pass the popcorn.

Tue, 09/07/2010 - 14:50 | 567685 Bendromeda Strain
Bendromeda Strain's picture

The lost verse from Sympathy for the Devil?

Tue, 09/07/2010 - 11:26 | 567296 tony bonn
tony bonn's picture

ye shall know the truth and the truth shall set you free.....i feel very free after reading this article....

Tue, 09/07/2010 - 11:30 | 567299 bruiserND
bruiserND's picture

"In economics, dishonesty and misconceptions can cost MILLIONS of lives."

Tyler, Giordano Bruno is awesome , keep bringing him back.

http://en.wikipedia.org/wiki/Holodomor

The Holodomor (Ukrainian: translation: death by hunger) was a famine in the Ukrainian SSR from 1932–1933, during which millions of inhabitants died of starvation in a peacetime catastrophe unprecedented in the history of Ukraine.[1][2][3][4] Estimates on the total number of casualties within Soviet Ukraine range mostly from 2.6 million[5][6] to 10 million.[7] Primarily as a result of the economic and trade policies instituted by Joseph Stalin, millions of Ukrainians starved to death over the course of a single year.

Tue, 09/07/2010 - 12:10 | 567363 Saxxon
Saxxon's picture

Indeed; and remember the Great Leap Forward which cost tens of millions of lives in China because everyone was busy trying to melt their rice bowls in backyard foundries while the crops went untenanted.

Death By Government.

Tue, 09/07/2010 - 12:29 | 567398 Maniac Researcher
Maniac Researcher's picture

Equally if not more tragic was the "telling everyone what they want to hear" mentality at the Party level in China during that period. As Mao reorginized small farms into huge state run cooperatives, party bosses gave glowing reports back to Mao - which were often untrue - even if they desperately wanted to believe them. Mao, in turn, believed his bosses - because he desperately wanted to listen to an opinion he agreed with.

The tragedy of living your life in an echo chamber only being surrounded by opinions you agree with is a good lesson for everyone, me'thinks.

Tue, 09/07/2010 - 13:43 | 567554 merehuman
merehuman's picture

Asd Mao reorganized small farms into state run co-ops" well now we have agripacs and our small farmers are going under.

Obamao?! I know damn well he is just a puppet

Tue, 09/07/2010 - 23:52 | 568795 Maniac Researcher
Maniac Researcher's picture

Comparing Obama to Mao is historically disingenuous. Yes, there are significant economic problems facing the US and the world - and a real vacuum of leadership. But the facts are that The Great Leap Forward led to as many as 20 million deaths. Sorry, but that is not the same scale as any of Obama's failings.

I'm sure you'll take this as a defence of Obama, so feel free to junk away -- but the only purpose of this post is to argue that your comparison of Obama to Mao offers little justice for the millions who suffered and died in China during the late 1950s and early 1960s.

Tue, 09/07/2010 - 11:34 | 567310 SheepDog-One
SheepDog-One's picture

Dang, what we need today is a couple of Leo's Chinese solar stock 'boner' charts that went up a few cents.

Tue, 09/07/2010 - 11:38 | 567315 barnaby33
barnaby33's picture

The narrative you paint is interesting and yet it seems to lack a certain thoroughness on the macro outlook from Asia. The Chinese particularly short circuited the hard work of a century of nation building by becomming a cheap labor export nation. Now you think that they will de-couple and build a consumer class (maybe not American in scope). I find this hard to believe. I haven't been to China yet, but many friends co-workers and my sister have. Someday the Chinese will want to buy the Nike's made in Vietnam, but for now they are far to poor to do so. So the Chinese are stuck subsidizing our currency, to keep selling us shit. In return for those goods we give them IOUs. When the hammer comes down, they have the paper, we have had 20+ years of their goods. They will have more production capacity, true; I just strongly doubt they will have a market to sell those goods too. At least in the short term, which to me is the next decade or so.  

 

 

Tue, 09/07/2010 - 12:11 | 567364 Eally Ucked
Eally Ucked's picture

Maybe Chinese will start to give those goods to it's citizens and take IOU's from them instead you? They are too poor, Americans are rich that's why there is 40 millions of food stamps recipients and the rest racked up trillions in debt.

Do NOT follow this link or you will be banned from the site!