The Big Lie
A common refrain from those who are awakening is they suddenly find themselves living with someone they no longer ‘know’. Rarely do they understand their partner may actually feel the same way.
The Fed’s public relations firm of Hilsenrath & Blackstone was out this morning with the official line on the market’s tremors of recent days. It seems that $10 trillion in freshly minted digital money at the world’s major central banks over the last eight years—-that is, a tripling of their balance sheets to $16 trillion—- is not enough. Not only is 2% inflation still MIA, but it now threatening to enter the dark side: Behind the spate of market turmoil lurks a worry that top policy makers thought they had beaten back a few years ago: the specter of deflation. Never mind that there is nothing close to a sustained run of negative consumer price indices anywhere in the world.
If nothing else we have learned it doesn’t matter how obvious the lie is if people don’t want to know the truth.
Long before 1984 gave us the adjective “Orwellian” to describe the political corruption of language and thought, Thucydides observed how factional struggles for power make words their first victims, "Words had to change their ordinary meaning and to take that which was now given them." Orwell later explained the reason for such degradation of language, "Political speech and writing are largely the defense of the indefensible." The bottom-line is that tyrannical power and its abuses comprise the "indefensible" that must be verbally disguised; which seems to have never been more appropriate than now in the stream of 'disguised' words we are fed every day...
The Bush and Obama presidencies have effectively dismantled the rule of law and the Constitution by invoking essentially unlimited executive powers in the name of "national security." After 13.5 years, there is more than enough evidence for reasonable people to conclude that the presidencies of George W. Bush and Barack H. Obama are easily the most destructive in U.S. history. The Big Lie is that this destruction of the foundations of the rule of law and civil liberties is for our own good: if the President and the National Security State don't grab all these powers and deprive you of your constitutional rights, bad guys will destroy the nation. This is of course the same old tired justification used by dictators and despots everywhere, and it is always a lie.
The pain we feel when balanced at the cliff’s edge is entirely of our own making and completely within our control to extinguish. All we need do is to abandon the certainty of belief that is presently stuck in our craw.
Presented with little comment.. Compare this:
*U.S. ECONOMIC GROWTH IS GATHERING SPEED, IMF'S LIPTON SAYS
To the following chart...
There is a causal connection between systemic theft and deflation. To all those terrified of deflation (for example, central bankers and their cronies holding trillions of dollars in phantom assets and illusory collateral), the solution is obvious: get rid of systemic theft. But since those terrified of deflation are at the top of the monopoly-power thievery pyramid, that is asking the impossible: for the thieves to relinquish their power to steal.
Even Before 9/11, NSA Knew In Real-Time Which Countries Both Parties to Phone Calls Were In
Inflation without compensation and a consumption tax hike make a very toxic mix
A central tenet of propaganda is that the Big Lie repeated often enough is accepted with greater ease than small lies. Thus it is no surprise that the leadership and propaganda organs of the Fed, Federal government and the Keynesian cargo Cult of fellow travelers all repeat our era's Big Lie: There is a free lunch after all. There are two free lunches, according to our financial and political leaders: free money, in the form of money created out of thin air by the Fed, and almost-free money borrowed into existence by the Federal government. The problem with Big Lies is reality has not been disappeared; it still exists. Actions create consequences, and not necessarily the consequences that were planned or expected.
Fingers of Instability
Every time real personal income goes negative, a recession occurs. Now that personal income is falling, a recession is baked in. The Big Lie of the "recovery" is that it is self-sustaining. Minus government transfers, the reality that the Fed and Federal government are simply enriching the top 1/10th of 1% with access to unlimited credit at zero interest is revealed.
We all know that double digit inflation in HPA is not a good thing for the long term recovery of the housing market.
Biderman's back and belligerent as ever. The TrimTabs CEO is perplexed at Krugman's (empirically) flawed assumptions that the US government can manage the US economy (better than a free market), destroys Krugman's cornerstone argument that the deficit is reducing to sustainable levels (thanks only to a big jump in taxes and not growth), and suggest he win an award for perpetuating "The Big Lie" that deficits don't matter because 'we owe it to ourselves'. The bottom line is thanks to simple supply and demand, the Fed is blowing a huge bubble in stocks "that will explode," since the typical growth in incomes is not there. Biderman wholeheartedly agrees with David Stockman and goes on to warn of the "Ides of April" as, while many proclaim the calendar as indicative of it being a great month; in bull runs, he notes, taxpayers are 'trained' to sell at the last moment and with tax-day arriving soon, he expects this week to remain bid (on quarterly flows) and next week to be trouble (as taxes weigh).