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Idols of the unaware
Does the average person understand what central bankers globally are doing to money? Do they realize inflation is about to cause crisis in America? I suppose the answer is no, however they will likely soon feel the effects.
Francis Bacon (1561–1626) was an English philosopher, statesman, scientist, lawyer, jurist and author. Bacon developed a reliable method of questioning he believed would free people from dependence on infrequent geniuses (Ozmon & Craver, 2008). He encouraged individuals to develop alternative methods of thought. According to Ozmon &Craver (2008), Bacon believed that “knowledge is power”, and devised what he called the “inductive method.” Bacon’s inductive approach insists on confirmation of specifics before reaching conclusions. Bacon urged people to reexamine all previously accepted knowledge. He believed people should free their minds of various “idols”.
Three of Bacon’s idols, according to Ozmon & Craver, (2008):
1. Idol of the Den:
People believe things because of their own limited experiences.
2. Idol of the Tribe:
People tend to believe things because most people believe them.
3. Idol of the Marketplace:
This idol deals with language because Bacon believed that words often are used in ways that prevent understanding.
On Idol of the Den:
The average person underestimates the possibility of a disaster and its effects. They believe since something has never happened before it never will. We are all guilty of this as it is human nature.
On Idol of the Tribe:
The idea of a currency collapse or hyperinflation is alien to the average person. They are likely unaware of such an event. If they watch a major television network, they are likely to trust an economic recovery is underway.
On Idol of the Marketplace:
The Consumer Price Index (CPI) is a government statistic that measures consumer goods and services prices, and is used to gauge inflation in the United States. What is interesting about CPI is that it fails to recognize rising prices of food and energy. What? The cost of food and energy are not considered by government as indicators of overall inflation? Talk about unclear language that restricts understanding.
Warning Signs
Worldwide quantitative easing is flooding global money supply. This money is chasing fewer goods as more and more of the world’s population ramps up consumption. Predictably, this will lead to higher prices. It is happening now, as we are already seeing food and energy prices rise significantly with price increases of 30% or more year-over-year.
Another sign of coming fiscal problems, which ultimately leads to more monetary quantitative easing, is continued uncontrolled spending of federal, state and local governments. As more money is spent, more needs to be created to monetize the debt. Quantitative easing and monetizing are trouble. Especially with a measuring stick now segmented in trillions. Monetizing will ultimately overwhelm purchasing power of everyone holding U.S. dollars, and dollar denominated assets. Inflation is set to occur at an alarming rate.
Drink Upstream
Francis Bacon urged people to reexamine previously accepted knowledge, and believed people should attempt to liberate their minds of the assorted idols. Bacon encouraged individuals to develop an alternative method of thought (Ozmon & Craver, 2008). Is there a chance the prediction of extreme future inflation is inaccurate? Yes, and I genuinely hope it is. This piece isn’t really about if I’m right or wrong. It’s about preparation and identifying the possibilities, because it seems likely economic recovery will not take place anytime soon. It should be easy to see, the signs are all around us.
I reckon it’s still not a bad time to pick up a few pounds of extra rice, tins of tobacco and some junk silver. It is without a doubt a time to heed Francis Bacon’s remarks, to free our minds and think independently.
Ozmon, H. A. & Craver, S. M. (2008). Philosophical foundations of education (8th ed.). Upper Saddle River, NJ: Pearson/Merrill Prentice Hall.
~MV
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Nice piece Michael. Frances fucking Bacon. Go figure.
It's funny that you see a wave of inflation that will take us out. Half the people at this site think a massive deflation in our future.
Could we get both? An egg costs $20, but the average wage is $8/hr, and there are no jobs anyway?
Got a neighbor HFT coder. They are doing all right. Haven't asked but I assume they are loading the cannon right now as fat tails is their specialty.
Reminded me of the story of the young girl cashing in bags of quarters at her local bank. Teller asked, did you hoard it all", to which she said, "No, my sister helped me".
France is bacon?
Nice post, but I was thinking of "disaster" of a more tangent element when I read the title. As we continue to dig ourselves out of the global calamity in the exchange of debt for worthless fiat the prospects of another Northridge Earthquake, Katrina or worse seems unaccounted for in the national consciousness, much less the global (except in the prospects of war). Another large earthquake in Greece or Italy at this precarious time might even prove to be the straw that breaks the Euro's back.
Well that's a very good point. It's interesting that just at the moment that the wordlwide fiat currency system is preparing for a six-sigma paradigm changing epoch-making event -- the natural world seems to be doing likewise. Coincidence?
And if you like earthquakes, you're gonna love sunquakes. And the New Maunder Minimum.
I have taken all knowledge to be my province.
Bacon
Many people promoted Bacon as the actual author of Shakespeare, because the semi-literate Stratford actor never traveled outside of England, had at best a few years of education, never owned a book, and left nothing in his own hand except six "wretched" attempts to sign his own name.
Alas, it is not so. The styles and interests are wildly divergent. Bacon's biographer once remarked, "there are not five lines in Shakespeare that could be attributed to Bacon, and not five lines of Bacon that could be taken for Shakespeare."
The real author was Edward de Vere, 17th Earl of Oxford. See Shakespeare by Another Name for the greatest hoax in literary history. Happy trails.
I've prepared for the upcoming crash by getting naked every night and going outside at midnight to stand in my yard for 3 hours, regardless of the weather.
No, it didn't harden my senses ala "Red Dawn"... I made a fortune buying and reselling my neighbor's houses.
.
rotflmao
" by getting naked every night and going outside at midnight to stand in my yard for 3 hours,"
Don't forget to pee on your compost piles while you're out there...
Waste Not, Want Not
It adds good, sanitary, clean nitrogen...
i just pooped my pants laughing so hard...
then i took note of your genius and pulled my pants down around my ankles and ran down my street... I'll let you know when the first house goes on sale, we'll corner the market JPM style. If anyone asks, we'll tell them, "we don't own more than 90% of the real estate here, and no comment on the rest..."
Thanks for the tip. I tried baying at the full moon with the dogs, but my neighbors considered that almost normal;) The bar for deviance is pretty high in a college town.
(d)
To "Free your mind" of 'common' thinking and achieve independent thought, people have to experience some emotional pain as they reevaluate and modify what they currently believe or think. Most are unwilling to go thru this process.
Pavlov's dogs were trained to salivate at the ring of a bell. But when torrential rains ravaged his labs in Russia, of the dogs that survived, the conditioning was erased and Pavlov had to start over. So it will be with 'the people' with that strong possibility of hyperinflation...it will be like torrential rains
( dang it. this was supposed to be a reply to Sudden Debt's comment, above. )
SD --
When people say "junk silver" they are usually not referring to the small number of 40% silver coins that were produced. They are referring to the much larger class of 90% silver coins which have no numismatic value -- no value outside of their silver content.
Well, actually, "junk silver" coins (like my avatar) do indeed have value above that of their AG content, but only because they are recognizably silver. A 100 oz. bar of AG bullion is *not* recognizable to most Americans. Most would ask if it were real. I know that it is, but every 15 seconds that I spend educating them about how they can tell -- its value drops by 10%.
The concept of numismatic value of coins is -- quaint. Charming. Doomed. It will not survive a major paradigm shift, which is what many of us are worried about.
The value of plain old silver coins will.
You are pretty much spot on there. Junk silver is reeded, circulated U. S. coinage before 1965. (Why reeds? To detect shaving more easily... ta da! That excludes nickels unless you want to play the metals game.)
If one has 40% silver, like Kennedy halves 1965 to 1970 business strikes, gather 'em up and sell 'em on eBay -- trade the cash for circulated 1964 Kennedy halves.
If one has 100oz bars get rid of them and trade for junk silver or American Silver Eagles, or better yet, some gold coinage. The premiums on Eagles (silver or gold) may be worth the expense as you point out. The recognizability of the coin will offset the bit of added premium. A few years from now that premium will fade away into the memory hole due to the overall value rise.
I am a coin dealer, so I can say with certainty that your prognostication on the quaintness of the numismatic premium is fading. Even now the value of common mint-state proofs and other commemorative issues is dwindling as the silver price escalates. There will always be a market for high-end collectible coins, but not for the mass produced items like proof sets and mint sets. Sell them now!
always learn a little more from each one of your posts, Rocky. thanks!
+92.5 %
Rocky, how about your thoughts on un-circulated Peace Dollars, as well as gold Pandas, and kangaroos? Your input is appreciated.
Unc Peace Dollars: No. Reason: The premium is high since they are collector (numismatic) coins. You can get common date Peace and Morgan dollars for a bit over spot... go for it.
Gold Pandas: Don't pay any more premium over spot than you would for an American Gold Eagle.
Same for Roos.
Look for generic gold recognizable coins and circulated silver common coins.... period.
Otherwise you are not focusing on your reasons for holding PMs in the first place.
I always carry a Silver Eagle as a pocket piece. I let go of one now and then for my favorite waitress or others who would appreciate the value. I don't give them to people to "convince" them of a damn thing.
+10
Numismatic is a joke WHEN things go into the shi!!ter....
I agree with your position on 100oz bars, but still love them. I keep hoping mine will have turned into Au magically overnight in my safe!
A guy can dream right?
Thank you Michael Victory for this post.
My partner and I are prepared for the coming crash.
"It is without a doubt a time to heed Francis Bacon’s remarks, to free our minds and think independently."
So the author's first act of independent thinking is to depend on Ozmon and Craver for his knowledge of Bacon?
My suggestion: Avoid cliff's notes, however elaborate. Instead, confront the classics face to face. This should be the novum organum of one's intellectual life.
Emergency management folks will tell you that even when people admit a disaster is probable, they still don't plan for it.
this poor sod was unaware and look what happened to him...
http://www.foxsports.com.au/Other+Sports/awesome-fly-kick/video-e6frf56c...
More important still ar the ideas of Soren Kirkegor which hold that the "truth" can be discerned a-priori from available evidence. So as the "evidence" becomes more abundant, more people know the "truth." This system si doomed.
Wait - Ben Bernancke and/or Harry Reid saved the world economy. I know this is true 'cause Time magazine said so.................
Is DWTS on tonight anyone know?
Time Magazine... is that idiot, propaganda, dinosaur, media piece of shit still around?
Hand me your copy... I am off to the bath room and need something to wipe with...
& just how does BERNANKE think people are going to survive on $8/hr. jobs (that is if you can even find an $8/hr. job anymore ) !! Pity the elderly who saved all their lives to see it all for naught ........... CRIMINAL / it's all just criminal. I was earning $10/hour in 1975 !!! END THE FED. As my sainted Grandma Jo said years ago : Never trust the government .
They are not; the Bernank doesn't care about people lynnybee; he cares only about his member banks & will sacrifice anything & everybody to achieve their preservation. His motives & agenda are clear. His achilles heel is his self induced sacrifice of the country to achieve his goals. He will fail, for his addiction to failure thru QE2 will be his end & legacy. I hope someday when he is gone, he don't have to undur him on TV or working for PIMCO as a consultant with the media focused on his proclaimations. We don't need another QE2 Greenspan redux.
The coins pictured above are available & cheap. I personally removed 429 ounces off the market this week with additional purchases to follow. If you want to get rid of the Bernank, drive a stake thru his heart by purchasing gold/silver in whatever quantity you can afford. The more you buy, the deeper the stake goes into his chest. Not only do you retire his FRN's (debt) you drain the banking system of its deposit base accomplishing two goals simultaneously.
Next time you go to your bank, ask how much cash they have on hand for withdrawal. You may be surprised...
"Next time you go to your bank, ask how much cash they have on hand for withdrawal. You may be surprised"....
You may go to jail too!
Pretty much it. There is a lot of sleight-of-hand, but the banks are what it's all about. Just diversionary tactics in all other areas to obscure that fact. Re-liquifying the insolvent banks is the ultimate goal -- and the hole is just too deep. But that won't keep them from trying, at our expense.
Time-on-target, RR. Destroy the banks=free the world.
Whats the difference between JPM and the Nazis?
A: JPM is more ruthless
Whats the difference between GS and the NKVD (KGB)?
A: GS wears Hugo Boss suits, not cardboard.
A million more. (Fed speak....1.7 trillion more)
Q what's brown and black and looks good all over Bernake?
A My doberman
Good enough for a repeat. LMFAO
Q what's brown and black and looks good all over Bernake?
A My doberman
The dreaded classic: "We're from the government, and we're here to help."
""Francis Bacon (1561–1626) was an English philosopher, statesman, scientist, lawyer, jurist and author. Bacon developed a reliable method of questioning he believed would free people from dependence on infrequent geniuses (Ozmon & Craver, 2008).
He encouraged individuals to develop alternative methods of thought. According to Ozmon &Craver (2008), Bacon believed that “knowledge is power”, and devised what he called the “inductive method.”
Bacon’s inductive approach insists on confirmation of specifics before reaching conclusions. Bacon urged people to reexamine all previously accepted knowledge. He believed people should free their minds of various “idols”""
And this line of disciplined thinking about thinking, of course, enabled modern Science to grow, starting from confirmed factual foundations and layer upon layer built up....though there was a slip/tumble in 1900 when the new concept of 'quantum' physics HAD to be adopted, and about 1980 another, slip/tumble regards the application of mathematical geometry to the REALITY of 'chaotic, yet orderly growth/patterns Nature' namely FRACTAL GEOMETRY and fractional dimensions..
Now, Bacon encouraged a disciplined thinking, over the more naturalistic 'common sense' approach...'common' = that which 'Everybody knows"...
It is this 'naturalistic' approach that STILL is our human everyday framework of reference...the 'Normal' - which actually is NOT NORMAL, nor Normative, but merely cultural/conventional and STRONGLY LINGUISTIC...words and things, our 'communal language' of words and syntax, mimics the World of People and Things, in a useful, conventional manner...and as we KNOW, from school that some things 'out there' are just NOT describable using the 'common language', rather is used 'scientific terms' or deeper/better Mathematical models..multidimensional and beyond 3-4 dimensionality...etc..
A fairly RECENT restatement of the baconian linguistic caution is NLP, neurolinguistic programing...used in behaviour correction, salesmanship (lies done scientifically), lawyering, acting...and more...you'd be surprized..
And THAT, NLP itself comes from a well known, but discounted/forgotten science/art...called, since 1850 'Hypnosis'...I have included some reference material here...
It is worth noting that the Ancients residing in the Indus River Valley about 1500 BC had pretty much conceived the idea that 'life is but a dream'
consciousness, a false mask...etc...so today 2010 some academics consider that conscious life is mostly a living dream, a 'consensus trance'...
for those interested:
http://en.wikipedia.org/wiki/Hypnosis
http://en.wiktionary.org/wiki/consensus_trance
http://www.skilluminati.com/research/entry/charles_tart_on_consensus_tra...
http://en.wikipedia.org/wiki/Milton_H._Erickson
http://en.wikipedia.org/wiki/List_of_NLP_topics
"i would not just be a nothin' my head all full of stuffin'/my heart all filled with pain/i would dance and then be merry life be a ding a' derry/if i only had a brain." what i find fascinating about computers is that "little tiny memory port." with humans it is the exact opposite--an almost infintessimally small calculation machine up top--but a "remembrance machine" beyond the ability of any "human machination." interestingly "certain humans have music"--the point being just to "hear a song"? the point of course "to take us back to a time and place"--in real time no less. try that one Mr. Computer! Now WHERE'S OUR PHUCKIN' ZH FIGHT SONG!
Bacon: It's not just for breakfast anymore.
funny!
Junk silver omelet.... mmmm!
Francis Bacon (obviously no relation to Kevin) must have been one of the first scholars to come up with the theory of cognitive dissonance.....a disease that runs rampant in America BTW.....
Ah yes, Cognitive Dissonance..
http://www.youtube.com/watch?v=c2Fs-HnYiWg
DavidC
6 degrees of Kevin Bacon
god his last name is delicious...
ha, ha. ...and everywhere else, Jack.
Thanks for the warning. Tonight i will try out thinking bitchy. Tommorrow i will think like i own the place. I appreciate your point of view.
nice post. thanks. well put.
+1 well articulated
besides the junk silver part.
Buy bullion
Buy silver collector coins
Why you say?
1. Bullion: silver price will always keep going up
2. Collector coins: price also always goes up.
Junk silver: nobody wants to buy those. There's no market for it besides the melters. And they don't pay that good for 40% silver coins.