• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

What's Wrong With America: Part I

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Wed, 10/21/2009 - 17:45 | 106136 Rusty Shorts
Rusty Shorts's picture

I don't know who is the author of this piece, but he hit the nail on the head !


What is globalization?


Globalization is nothing more than the constant search for cheap labor and the constant upgrading of infrastructure all across the earth. Thus improving the infrastructure of previously ‘unindustrialized countries’ and accessing a whole new ununionized labor pool. The new world’s that are created and improved through road, rail, energy, and hospital projects that are built by huge multinational corporations and paid for by unwitting outside investors. Before all the public works’ projects are completed there is a debasement to pay for the projects with outside investors’ money because it was ‘lost’ during the stock market crash or crash of a company’s stock (debasement of vehicle of monetary exchange).

During the debasement period the “inside” investors are selling short, 401k’s/entitlements etc. are frozen until the company pays out whatever debts it can with whatever liquid it has left., then the company goes bankrupt, it’s assets are filtered off to a subsidiary/holding co that was formed prior to debasement, the projects they were building get snapped up at fire sale prices. Now the projects are paid for, the companies get their money and the country gets its infrastructure for their people to work jobs cheaper than other people in the Old World will work them

Along the globalization trail, TPTB monopolize all the resources they can under corrupt regimes that most of the time they put into power. Then take control of all essential parts of the economy; food supply, energy and mineral resources, fresh water sources, precious stones, cash crops, telecom, and healthcare. The foreign multinational corporations use cheap labour to assemble their goods while owning all other utilities the people of the country use. Once the cheap labour and resources are exploited, the globalists pick up and start the search for a new land to build up. Every new world is built on the dollar of outside investors and tax payers. Outsourcing is the only way the king can afford the peasants wages.

It started with canals, ships, and marinas in olden days and evolved into railroads, locomotives, then into trucks and roads, and most recently aviation. Every logistic means throughout history has been payed for by the outside investor through the use of debasements. Bubbles are built up on the word that ‘the good times will never end’ and popped on ‘we never saw this coming’ - all made possible by governments pretending to fail all across the world. All three tiers of government (soon to be four; federal, state, municipal, and soon, Union) are chalked full of failures.

The same groups of companies get the contracts for foreign nation building, usually spawned off each other, tracing their way back to a group of banks that operate throughout the world. These companies debase vehicles of monetary exchange (stocks and stock markets). Most of them having intimate ties with the World Bank. The financiers’ of globalization stay the same. Once projects are completed and economies successfully debased, wars are waged to pay for economic recovery and fulfill whatever geopolitical agenda these global financiers have. After the era of fraud there is a period of boom and the cycle repeats itself, the size of the war usually depends on the size of the debasement that preceded it.

Once the Vehicle of Monetary Exchange is debased, the stolen money is laundered through various organizations (charities, non-profits, Legatus, museums). Once the money has been laundered there needs to be a war to destroy the paper trail (the fog of war) so they need an event to set off the war. If multiple countries’ economies are down, it will be a global war (each country fighting with it’s favorite enemy). At this time the financial sector will air its laundry, and we’ll start hearing about frauds and accounting errors. This will lead to federal bodies (FINRA, SEC) bringing cases against the scapegoats (Skilling, Conrad Black) and we will have show trials with show judges (Crater, Landis). The trials will bring justice to the ‘rogue conspirators and that’s that.

The new bubbles are usually being built up as the current bubble is popping. These bubbles are allowed to happen through manipulation of laws. In America, the crash (era’s of fraud) usually coincides with the end of one presidency and the start of another and occur every 4 years. In the lame duck sessions of a presidency, all previous corporate criminals get pardons. This timeline repeats itself throughout history.



Wed, 10/21/2009 - 16:57 | 106057 time123
time123's picture

The primary issue really is the hit that everyone has taken in their portfolios. That is what is wrong with today's America. But it will come back strong as it always has.

For those with 401K, I believe it is time to take our destiny in our own hands and recover at least some of the losses in our portfolios through trading the markets.

Today, we had a big drop in the end of the day, as nvestors were probably looking for an excuse to sell.

Richard Bove had made some good calls in the past, and that may be why they sold today on his comments.

By the way, the Invetrics DJIA index timing signal switched to Short prior to market open today (unrelated to the analyst's comments), and warned web site visitors of today's potential drop in the market.

It is up a respectable 64.84% for the year (as of October 20, 2009) and it is free of charge for individual investors at:


Wed, 10/21/2009 - 14:22 | 105841 Unscarred
Unscarred's picture

Who is John Galt?

Wed, 10/21/2009 - 13:20 | 105744 Anonymous
Anonymous's picture

I work in the arts - at theatres all over the world. The money these guys were paid is outrageous with no relation to the amount or complexity of the work they do. Instead, it's a reflection of the imbalance of power unions have accumulated over the years.

Thank goodness they don't charge me that for my donkey act in Tijuana.

Wed, 10/21/2009 - 13:02 | 105720 chet
chet's picture

I'm increasingly unsure what I'm goigt to tell my young kids about our "meritocracy" as they prepare for life.

Since college won't be affordable in 16 years, I guess I should be glad that there are millionaire stagehand positions for them to compete for.  And by "compete on their merits", I mean "somehow meet some union mobsters, or Sandy Weill."

Wed, 10/21/2009 - 11:39 | 105580 Anonymous
Anonymous's picture

Sallie Krawchek - that would be the former CFO of Citicorpse who oversaw the transformation of Citicorpse' balance sheet into a toxic waste dump.

Wed, 10/21/2009 - 11:27 | 105564 alien-IQ
alien-IQ's picture

I spent many years working in New York productions. I worked in just about every aspect ranging from stagehand to production manager and producer. I know a lot of people who work in the industry. A lot of union guys. Yes some of them make good money. Is it easy work? Well, tell you what...you drag your ass up to the rafters at the MET, about 130ft off the ground and lean out over the rails to hang a 65lb light on a 2inch pipe...then tell me if you think it's easy work. However, I find those reported numbers by Bloomberg for the Carnegie prop guys... more than a little hard to believe.

Wed, 10/21/2009 - 12:57 | 105711 Anonymous
Anonymous's picture

Amen. Also, it's important to remember that overtime is often a big part of total pay for the technical guys. Especially in a big venue like Carnegie Hall, with different shows every night, you're basically balls-to-the-wall every single day trying to get things set up for the night's show.

Wed, 10/21/2009 - 10:52 | 105524 RagnarDanneskjold
RagnarDanneskjold's picture

There's no difference with Wall Street. It's greed and rape of the taxpayer. The evil flows from the fountainhead of USG, the banks and most unions (I would not include skilled unions that are more like guilds, but teachers and government workers definitely apply) bask in its waters.



Wed, 10/21/2009 - 11:07 | 105540 Dixie Normous
Dixie Normous's picture

Someone finally mentioned teachers.

If we want to talk about what is wrong with America let's start with one of the world's most expensive educational systems vs results.

Let's talk about towns of 33,000 in New England that educate 7000 kids for $90 million a year.  Where the main goal of a teacher is to get out of the classroom and get into the ever-growing admin positions where the pay outs are into the $200k per year.

Wed, 10/21/2009 - 13:26 | 105757 Anonymous
Anonymous's picture

Don't limit it to teachers - look at the layers and layers of bureaucracy that have been added to school systems over the last 20 years. Teacher's pay hasn't changed all that much but the high paid Peter's Principle dimwits that suck up billions in tax payer dollars but produce nothing need to go. Get back to neighborhood schools.

Mon, 11/02/2009 - 19:56 | 117723 Anonymous
Anonymous's picture

It's not the teachers; sure, there are bad teachers, but has anyone here looked at a schoolteacher's salary recently? They don't even get overtime.

Administration is the problem. 300k+ a year to manage a school is absurd. This sector is notorious for voting itself lavish pay raises while operating budgets are slashed a la elite CEOs.

It's all about who has the leverage at key nodes in the system. While we're at it, what about police and firefighter pensions?

Wed, 10/21/2009 - 11:50 | 105593 gmrpeabody
gmrpeabody's picture


Wed, 10/21/2009 - 10:50 | 105519 crzyhun
crzyhun's picture

All gains are ill gotten, no?

Wed, 10/21/2009 - 10:26 | 105491 Jus7tme
Jus7tme's picture

What if the title of the story had been

Wall Street Stagehand Moving Props Makes $530,044

with subtitle

Man behind the curtain is getting rich at taxpayer expense.

Wed, 10/21/2009 - 10:25 | 105487 Printfaster
Printfaster's picture

And the singers who must train, rehearse, travel, prepare,  and strain earn what?

These stagehands could all be replaced by a minimum wage street person.  Not altogether different from Wall street traders.

Seriously, the bigger problem is that who will donate to Carnegie hall when money is being sent down a rathole.  I cannot see rattling a tin cup to help feed a $500,000/year flunkie.  He should be replaced by a volunteer.


Wed, 10/21/2009 - 12:43 | 105692 channel_zero
channel_zero's picture

These stagehands could all be replaced by a minimum wage street person.

Spoken like a true know-it-all.  Are you a sound engineer?  Do you even know what that is?

What you know-it-alls fail to comprehend is the skill required to get the most out of a performer and the performance space.  Oh, but then all of the ZH sound engineers know that right?  Maybe the Carnegie acts should just play out on the street and knock the hall down.  Because according to you geniuses, there isn't any difference.

The howls of protest about banking pay are somehow wrong too?  No unions there.  No skill there either according to the ZH brain trust.

This kind of content is the garbage that has gotten us to the place we're in right now and most of you fools just eat it up.

Wed, 10/21/2009 - 12:38 | 105683 Anonymous
Anonymous's picture

For 1/5 the cost, they could hire 5 interns from NYU to do the same thing this one guy does, although volunteers would be perfectly acceptable as well.

Wed, 10/21/2009 - 09:59 | 105452 Anonymous
Anonymous's picture

Dixie - Poor assumption. I guess you also assumed TG paid his taxes right?

...and how is this a 'non-story'...it is somehow 'ok' because of NYC's history. Don't be an idiot.

BobPaulson - 'The mega-graft'...quit it with your childhood delusions. Do you really contend that a stagehand paid 500K adds more value than any GS employee being paid 500K. If so, there is only you left to help yourself.

ZH - You post some decent articles and some that are pure crap...yet it is your commmenters that really detract from any credibility this site may have. Some of them make TD look completely sane and reasonable, which is quite the feat.

Wed, 10/21/2009 - 09:48 | 105445 BobPaulson
BobPaulson's picture

Good to hear comments aren't just knee jerk labour bashing. I think they're overpaid, but it's orders of magnitude below the mega-graft that is really the problem. I bet those carpenters did more constructive work than the parasites in GS this year.

Wed, 10/21/2009 - 10:01 | 105456 Anal_yst
Anal_yst's picture

So a banker or trader who brought in $50million in revenue for GS this year is a parasite, but a glorified niche, small general contractor makes half a mil while their organization essentially loses money, and that's ok?

Wed, 10/21/2009 - 13:13 | 105736 Anonymous
Anonymous's picture

I think the point that is missed here is that the trader who brings in $50 million should be paid a salary - no more no less. Bonuses, if any, should be paid out as an average of performance over a ten year time frame and paid in company stock which should then be held for another ten years. When traders start thinking about the long term welfare of the country and their company, then they can be rewarded with bonuses. As long as traders behave like third world dictators, raping the productive resources of a country to fund their lavish lifestyles, then they will be treated like the criminals they are.

Wed, 10/21/2009 - 10:06 | 105460 BobPaulson
BobPaulson's picture


Wed, 10/21/2009 - 10:17 | 105476 Paul S.
Paul S.'s picture

And THAT comment is what is really wrong in America.  It's not okay to steal, unless you're the one doing the stealing. 

Wed, 10/21/2009 - 10:22 | 105483 gmrpeabody
gmrpeabody's picture


Wed, 10/21/2009 - 10:44 | 105515 BobPaulson
BobPaulson's picture

Which part was stealing? Earning too high a wage or doing something useless that has no net benefit and getting 100x more? When the guys with torches come to my house, I'm going to be smart enough to run, not go out there and tell them they deserve to be unemployed and I should get 7 figures for punching some buttons on a screen.

Wed, 10/21/2009 - 10:51 | 105522 gmrpeabody
gmrpeabody's picture

It's stealing when you have your fingers in the publics wallet. Whether your are stealing 50 million or a half million, it's still stealing.

Why is this so hard to understand?

Wed, 10/21/2009 - 11:17 | 105557 Stevm30
Stevm30's picture

agree completely.

Wed, 10/21/2009 - 13:33 | 105767 BobPaulson
BobPaulson's picture

Because the carpenter isn't paying himself. Sorry, seems obvious to me.

Wed, 10/21/2009 - 10:17 | 105475 gmrpeabody
gmrpeabody's picture


Wed, 10/21/2009 - 09:40 | 105437 Dixie Normous
Dixie Normous's picture

This is a non-story.  It's profit sharing in an entrenched unionized city like NY.

At least these guys pay taxes unlike most of the undocumented workers building and maintaining the banker palaces in places like Greenwich and the Hamptons.

Wed, 10/21/2009 - 09:51 | 105448 gmrpeabody
gmrpeabody's picture

Can't be called profit sharing without profits. Oh, that's right, there is a profit after government grants and other tax deductible handouts.

Wed, 10/21/2009 - 10:07 | 105461 Dixie Normous
Dixie Normous's picture

My comment on profit sharing was an attempt at sarcasm.

However, when an organisation has Sandy Weill as Chairman of the board and you are looking down the ladder at a few million in union salaries, then you are looking in the wrong place.

Wed, 10/21/2009 - 10:15 | 105473 gmrpeabody
gmrpeabody's picture

I appreciate sarcasm.

But it's O dark:30 on the left coast, barely thru my first cup, and having to decifer....

Anyway, I get your point if you get mine. 

Wed, 10/21/2009 - 09:35 | 105430 Yankee
Yankee's picture

Thanks Econophile, always nice to see how the other half lives. 

Wed, 10/21/2009 - 08:26 | 105406 Anonymous
Anonymous's picture

Ah, the arts, always the arts. The great underminers of the American economy. (I wish.)

While I don't endorse half-million dollar salaries for stagehands, most stagehands make jack squat plus nothing, so you're isolating the exception as the rule, which is, well, dumb.

And art is not a capitalist enterprise--stunning that such things exist, but true--and has throughout modern history failed to pay for its operating expenses, until it discovered "the musical".

Stick to the for-profit world, please; there is plenty of garbage to unearth there first.

Wed, 10/21/2009 - 10:28 | 105495 Anonymous
Anonymous's picture

art is very much a capitalist enterprise funded
in large measure by capitalists - certainly so in
the above example....

if a stagehand is making several standard deviations
away from the mean then there are extraordinary
explanations one of which includes fraud....

however in this case it's not exactly fraud but
more mobster tactics at work....

nice work if you can get it.....

i'm all for digging up garbage anywhere it's found....

Thu, 10/22/2009 - 03:07 | 106620 Anonymous
Anonymous's picture

No, actually, calling art a capitalist enterprise so won't make it one. It has nothing to do with markets, though markets may (and frequently do) commandeer its products. And it is often sustained despite operating at a loss and not favoring efficiency. Just because people get paid (or overpaid) for doing something doesn't mean capitalism is in play. And the funding can come from any system at all.

The fact that IATSE may be an overpowerful union has nothing to do with this taking place at Carnegie Hall. That just adds cheap flash to the post. Kind of like the way the Congress likes to argue endlessly about the NEA budget, despite its infinitesimal and meaningless weight in the overall bottom line.

Wed, 10/21/2009 - 07:32 | 105398 Anonymous
Anonymous's picture

Blaming a hardworking blue collar guy for making a buck?

anyway, do you think you could do the job? Or could an overpaid Wall Street Executive do the job?

Those regular fellas made a bonanza in a niche market... so what's different than what Wall Street analysts are doing? I am trading on the market, does that entitle me to a million dollar salary? But "they" are getting one.

I am handy with tools but I'd not have a clue on how or where to get the jobs above. Connections? Talent? Doesn't seem much different than the average CEO. Connections trump Talent every time.

Stop blaming blue collar America for the fraud perpetuated at the Top.

Wed, 10/21/2009 - 11:15 | 105551 Anonymous
Anonymous's picture

Did you miss the part where it says the organization is essentially bankrupt, egregiously so, without "government grants"?

Government grants for the arts are supposed to be so more people throughout society can enjoy the arts. You know, like sending busloads of kids or poor people to peformances and stuff like that. Or, allowing that super talented performer to go ahead a make a go it as a young artist.

It is NOT to pay union entrenched manual labor 10-15 times the everyman salary to build the props!

Wed, 10/21/2009 - 10:27 | 105493 Anonymous
Anonymous's picture

Who said that these guys work hard? I was a carpenter for years, working way my way through college, earning degrees in Physics and Mathematics. There were no heaters or air conditioners on the job site. At least Carnegie Hall has a roof. With my practical experiences as a carpenter, an electrician, and a broad quantitative, theoretical, scientific foundation, and the advanced technical expertise gained in the Lab, I could do any of the jobs that these union extortionists do. I am not under qualified. I do not get the work. A fair, just society does need individuals justifying their right to excessive benefits due to someone else’s receipt of excessive benefits. Simply because everyone else does the wrong thing, does not mean that I cannot do the right thing. Do away with nepotism and create a meritorious society. I have starved and slaved and suffered and earned my right for a decent wage. With the money one that these union thieves make, ten people could live comfortably.

Wed, 10/21/2009 - 09:46 | 105443 gmrpeabody
gmrpeabody's picture

Fraud is fraud. White collar, blue collar, whatever. If tax payers have to support their extravagant wages, I guess it qualifies. 

Wed, 10/21/2009 - 04:06 | 105363 Anonymous
Anonymous's picture

Sounds like the stagehands need a taxpayer funded bailout - they're overpaid and underworked!

Wed, 10/21/2009 - 12:53 | 105706 Anonymous
Anonymous's picture

If you think a 4-man crew is excessive for doing all the lighting, sound, scenery etc. for three performance venues, you've clearly never worked in the industry. Also, please observe this throwaway line hidden away in the article: "...overtime is a key component of pay." We can argue ourselves blue in the face about what a reasonable base pay rate for this kind of work is, but a back-of-the-envelope calculation shows that with a base pay of $40/hour, you would make almost $250k working 90 hour weeks (which is more common than you would think in theater).

Wed, 10/21/2009 - 13:21 | 105749 Anonymous
Anonymous's picture

So why not have 8 or 9 guys working so there are no 90-hr work weeks? There is no need for that kind of overtime except by design. Sign me up, I'd work 110 hrs a week for that, and retire at the end of the year.

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