The Biggest Bubble In History: Fraud

George Washington's picture

Bursting Gas Bubble 60 Light Years Across. Courtesy of ESA


The housing bubble which burst in 2007 or so was the biggest bubble of all time.

Many argue that the bubble in U.S. bonds has surpassed the housing bubble as the largest ever.

Of course, given that the derivatives market is more than a thousand trillion dollars, and that is is backed by thousands of times less collateral, a good case can be made for arguing that derivatives are the biggest bubble.

But if you really think about it, the largest bubble in history is fraud, because it includes all of the above and more.

Specifically, the housing crisis was caused by fraud.  The government encouraged fraud, and helped cover it up.

Huge swaths of the derivatives market are manipulated by fraud.  See this, this, this and this. But instead of cracking down on the fraud, the government is backing it.

And the bubble in bonds was caused by super-low interest rates.  See this, this and this.

Low interest rates - in turn - are caused by quantitative easing and the government's general zero interest rate policy.

And how did the government sell these programs? That they were necessary to help the economy and create more jobs.

But in reality, zero interest rate policy is just another stealth bailout for the big banks.  And quantitative easing only helps the super-elite ... and hurt the economy and the little guy (Bernanke knew back in 1988 that QE doesn't work for its advertised purposes.)

In other words, the government's low interest rate policies were based upon a fundamental misrepresentation as to their purpose and probable effect.

Indeed, experts say that all bubbles are enabled by fraud.

But there are signs that the fraud bubble is collapsing.

Trust is falling to all-time lows as to many government and private institutions.  Why?  Because institutional corruption is so rampant that it is becoming obvious to everyone from Joe Sixpack to amateur and sophisticated professional investors.

While liberals tend to distrust big corporations and conservatives tend to distrust the federal government, we all agree that the malignant, symbiotic relationship between the two is the root problem.  Indeed, when government and corporatism merge, it is hard for anyone to trust what is going on.

When government officials are as corrupt as the criminal enterprises they are suppose to regulate, even the mainstream media can't ignore it any longer.

And the people lose all trust in the system.

No matter how hard the boys work to cover up their ongoing misdeeds, the fraud bubble may finally be popping ...

See examples of a popping fraud bubble here, here and here.

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sgt_doom's picture

Sorry, but you're missing the macro picture:  it's really about the ultra-leveraging on ALL debt, plus the largest insurance swindles in human history. 

IamtheREALmario's picture

When ya got nothing left in the bag, ya go with what ya got ... in this case FRAUD.

green888's picture

Peace- a period of cheating between two periods of fighting, Ambrose Bierce, The Devils dictionary

No Euros please we're British's picture

The biggest fraud seems to be the "election" of government to represent the people. Might as well elect a volleyball called Wilson.

dexter_morgan's picture

While liberals tend to distrust big corporations and conservatives tend to distrust the federal government, we all agree that the malignant, symbiotic relationship between the two is the root problem.  Indeed, when government and corporatism merge, it is hard for anyone to trust what is going on.



the grateful unemployed's picture

there are bigger bubbles, (yet to be popped), there is the cell phone bubble, which is probably as big as the tulip bubble. there was the entire information bubble, yes i have some information here, but it doesn't suit the purpose of our policy, what else have you got? weapons of mass destruction? sounds good. start the tanks

people who chatter on about the information age should be flogged with buggy whips.

fraud arrives when the thing you believe in doesn't match up to the new reality. right now the feds view of money is a mile away from what most of us understand. bob prechter calls it lack of confidence, but the confidence bubble already popped. i don't trust that dollar you want to pay me with, what else have you got? confidence is when you go to work at a job you don't believe in or don't care about, for fifty years.

confidence is a consistent approach to something (policy by another word), and Obama isn't much, but he has policy (most of which he got from Bush, and so on)

bernanke studied the great depression, does he have any idea what to do about the next economic surprise? fraud for want of another term is the status quo, constantly betting on the last number that came up on the wheel. and to make it work out that way they rig the casino.

i recall something Steinbeck said about the mordida, or the bribe, when he was in Mexico, that it created a personal relationship between people. amplify to the corporate, government scale, and it reverses into something else. that's when the government starts handing out bribes to its constituents (money from helicopters, which is a nice dream if you think about it, but the big banks have their nets ready, and most of is that rain which falls from the cloud but never reaches the ground. fraud)

monad's picture

Watch Wesley Mooch at 1:45 PM ET Before Vice President Mooch introduced a set of ideas to help reduce gun violence, he kicked off a national conversation. He wanted to make sure that he heard from people from every perspective about the steps we need to take to protect kids and make our communities safer. And that dialogue isn't over. Today, in a hangout hosted by Google and moderated by Ahgja Ftptehgyshumi from PBS NewsHour, Vice President Mooch will speak with a group of Google+ users about the White House policy recommendations and answer their questions.

And we want you to join us.

mayhem_korner's picture

While liberals tend to distrust big corporations and conservatives tend to distrust the federal government, we all agree that the malignant, symbiotic relationship between the two is the root problem.


The root problem is human nature.  Corporations and governments are conduits.

Clesthenes's picture

“The root problem is human nature.”

Absolutely not.

The root problem is ignorance – nothing more.

Criminal and useful-idiot classes use “the sovereign power” to perpetrate genocides and limitless plunder and to suppress or eliminate witnesses, victims and critics of their crimes.

The sovereign power is nothing less than the power/right of petition; the same power used by American Founders for their revolution.  It is a power/right available to every man on the planet.

As noted “they” use the power to perpetrate genocides with impunity.  Why do men of justice not use it… why do men of reason not even know it exists?

Ignorance, nothing more.

Omen IV's picture

"the root of the problem is human nature" not so - human nature hasnt changed in thousands of years - the reality is systems can be created to "enable" Fraud or "disable" Fraud

we live in a period where the Fraud as the primary business tool has been enabled as the man says: "symbiotically"

FDR. Eccles, Pecora. Glass, Stegall and many others - in the 1930's - "disabled" the Fraud and it worked until the 1990's

Rubin, Greenspan, Summers,  Gramm, Paulson and many many others "enabled" the Fraud in the 1990's

the only solution is the complete destruction of the system as in the 30's to effect change

Breuer goes  - white comes in - all the same - and the game will continue until what catalyst?

mayhem_korner's picture

"the root of the problem is human nature" not so - human nature hasnt changed in thousands of years


Yes, human nature is fraudulent, sinful, evil.  And has been for "thousands of years".  Seems either you agree with me or you know nothing about human nature.

The "system" was completely uprooted and changed in the 18th century (birth of the U.S.)...and see what happened to it?  You are misguided if you think that there is a "fix" or "reset" that will right things permanently.  The nature of man is fraudulent, you are missing the larger point while in fact evidencing it.

I am on to you's picture

Fraud???The 100 most rich,made in 2012,enogh to save the poors?4 times?


U n ,was created in 1945-47,to save the Poor,how laud does a lie have to scream,before its heard,almost 70 years??How much money has been pumped into UN,just to be eaten by Diplomats,coce and caviar,instead of being used for the purpose,that they were ment for:

Are children evil,you put two together,and then go on a distance,and observe them,youll know!

Its like he Universe,its a bubble,expanding forever,but the question is,into what,if it was the only thing in the begining,what did it then expand into,the void?How,nothing excisted,the big bluff of all times!

Like the stones consert,the big bluf,dinosauers,who didnt play a tune right!

Have a nice day!

MickV's picture

When is GW going to really speak the truth? There is no law and no Constitution because the POTUS, who is the executor of the laws is a FRAUD---- as in not eligible for the office. It is now a different level of fraud, where there literally is no law, and no Constitution. How could there be when the POTUS, who is the executor of the laws is illegally holding the office?

Obama was musceled into office by the Oligarchy specifically for that purpose--- it is the endgame of the NWO. "But all of the POTUS' are figureheads" some will say. "Obama is inept and over his head", others will say. They fail to see the gravity of the situation. Obama is a domestic enemy, who works at the behest of foreign NWO interests to weaken America. He was specifically picked because he lacks the allegiance and attachment to America or its ideals--- the very reason that the President must be a natural born Citizen. What better way to hasten the destruction of America then to infiltrate its highest office? Obama is EXACTLY whom the framers were preventing from the office by the requirement the "no person , but a natural born Citizen, shall be President".

The Useful idiot media, at the behest of his Oligarchal handlers, are protecting the Usurper from the mass realization of Obama's ineligibility by the public. Alternate media, like widely read blogs, are also protecting Obama in a way, by not trumpeting the fact of his ineligibility. All the research they do, and opining about legal and economic matters, means nothing--- it is ineffectual whining. NOTHING will happen, and the republic will not ne restored until the Usurper and his handlers are put on the defensive by the mass realization of Obama's ineligibility. Then the Treason committed at all levels of the government and media will then be apparent. ONLY then can we begin to lead ourselves back to a lawful society, governed by the rule of law, and not of evil men. ___ GET A CLUE GW!!! Start here:

"The Constitution does not in words say who shall be natural-born citizens. Resort must be had elsewhere to ascertain that. At common law, with the nomenclature of which the framers of the Constitution were familiar, it was never doubted that all children born in a country of parents who were its citizens became themselves, upon their birth, citizens also. These were natives or natural-born citizens, as distinguished from aliens or foreigners." Minor v. Happersett, 88 US 162, 167 (1874)

SEE Also, Federalist 68, that the purpose of the natural born Citizen clause is the prevention of foreign influence by way of an "improper ascendant" (improper ANCESTOR). Avoidance of an improper ascendant leads to the choice of a "child of their own" (natural born Citizen).

Obama SR. is an improper ancestor for the president to have the necessary allegiance and attachment to lead the US and its armed forces. Obama 2 was born British (and likely still is because of the British Common Law principle of Perpetual Allegiance-- which ended in America at the declaration of Independence). Obama 2 was born BRITISH, of a BRITISH subject father---thus is ineligible for the office of President. GET A CLUE GW--- write the truth. There is no more United States of America--- Obama confirmed it during the oath of office, where he refused TWICE to say "United States OF AMERICA"--- it was not the legal oath.

purplefrog's picture

Good stuff.  I think the Con-stitution is a fraud.  It is used by TPTB when it is in their best interest and ignored when trampling on our rights.  It is clearly NOT the law of the land and never has been.  If anything we are really goverened by maritime law - trusts and contracts - and even these laws are ignored.

My only question is: "From what source do the three branches of government draw their authority?"


MickV's picture

The Constitution isn't the fraud. When "used" as intended it is an instrument of freedom. The people "using" it or ignoring it are the frauds.

Radical Marijuana's picture

While this article's thesis was correct, it has understated the situation to a virtually infinite degree!

"... the largest bubble in history is fraud, because it includes all of the above and more ... all bubbles are enabled by fraud ... there are signs that the fraud bubble is collapsing."

Civilizations were created in crucibles of conflicts, by selecting for the most triumphant militarisms. Success in war was based on being the best at deceit, and backing that dishonesty with violence.

What made War King then made Fraud King. We now have an entire aristocracy of development based upon the triumphs of fraud, which segued from the history of militarism creating the triumphant sovereign states, which were gradually taken over by the best organized covert criminals, the biggest gangsters, the banksters. That aristocracy of fraud are all those who participate in the established economic systems which are based on being able to make "money" out of nothing, as debts. We have the smaller banks, and other entities, which are allowed to make "money" out of nothing, in order to lend that. Those may be called the Knights of Frauds. Then we have a range of larger entities which can make "money" out of nothing, which may be called by the titles such as the Dukes of Fraud, etc.. Then, we have the Central Banks of each sovereign state that has one, which may be called the Kings of Fraud. Finally, we have the King of Kings of Fraud, which is the Bank of International Settlements.

Of course, this aristocracy of fraud is evolving, but basically the banksters are the new royalty, which have become above the law, because they effectively control the law.

The Kings of Fraud could not succeed without their frauds being backed by force. That is where the history of making War King plays the role that it did, of establishing the sovereign powers of the various nation states, which emerged through the long history of military conflict, selecting for the survivors to be able to be the best at being dishonest, and backing that up with violence. Those countries then chartered corporations, and those corporations grew up around the banks, as the most important corporations that those countries chartered.

Thus, the patriarchal social pyramid system, which developed through the history of Neolithic civilization, gradually became bigger and bigger legalized lies, backed up by legalized violence. Fraud is not an aberration of that system. FRAUD IS THAT SYSTEM.

Furthermore, to point out just how much more that goes towards being a virtually INFINITE TUNNEL OF DECEITS, one should push the philosophy of science through itself, which makes it become consistent with ancient mysticism.

Everything that human beings "know" is based upon a relative subtraction, which is therefore necessarily a relative illusion, or lie. EVERYTHING THAT HUMAN BEINGS KNOW, OR MEASURE, IS BASED ON RELATIVE SUBTRACTIONS OF PARTS FROM A WHOLE WHICH IS UNKNOWABLE. Therefore, all knowledge is inherently fraudulent. It is not possible for any knowledge to overcome the inherent limits to measurement, due to the way that the measurer can not be separated from the measured.

Furthermore, to the degree that we subtract any living organism from its environment, then we have defined boundaries to that being, across which it must get more energy, in order to continue to live. Every living thing becomes defined as an energy system, which means every living thing must operate as an entropic pump. Therefore, by the most basic definitions of the nature of knowledge itself, the AXIOMS are SUBTRACTION and ROBBERY, as the basic ways that we "know" anything, and can "do" anything regarding what we "know" about. These are the basic concepts regarding any and all understanding of any possible energy system, and therefore, those are the fundamentals with respect to human beings, and groups of human beings in civilizations. Human reality is ALWAYS organized systems of lies, operating organized robbery. Thus, the real history has been the development of War Kings, morphing to become Fraud Kings. What has actually happened is the astronomically sized amplification of what was always here, due to progress in science making technologies become trillions of times more powerful.

In that context, it is important to remember the almost infinite degree of fraudulence which is inherent to the ways we understand the world. Of course, when we developed thermodynamics, which later became information theory, our basic understanding of energy included an understanding of entropy. Crucially, the mathematical equation for entropy had an ARBITRARY MINUS SIGN inserted, in order that the measurements of power and information would end up having positive values, instead of negative values. However, the truth was present in the mathematics. All power and all information is innately negative, because it is due to a relative subtraction of some part from a whole.

That whole cannot be known. Only the parts can be relatively known. However, all of those parts are necessarily relative illusions, or lies. Therefore, FRAUD IS THE FUNDAMENTAL BASIS OF ALL HUMAN KNOWLEDGE.

It follows that all human behaviours are based on acting on the basis of those frauds. Furthermore, by definition, all of those behaviours, according to their own relative definitions, are engaged in various forms of robbery, in order for human beings to continue to live, as entropic pumps of energy through their systems.

All of this is relevant to attempting to understand the basis of the monetary system, which is backed up by the military system. The real human history of War Kings becoming Fraud Kings is how to understand the ways that all of our lives are bubbles blown by frauds. (More accurately, like toroidal vortices of fraud, but the metaphor of bubbles is easier to visualize.)

The paradoxical problem is that people still want to believe in various impossible ideals, based on false fundamental dichotomies, that actually make the opposite happen in the real world. Therefore, there are delusions that somehow there is any human reality that is not based on organized lies operating organized robbery. What those delusions do is enable the runaway triumph of the established fascist plutocracy to become a juggernaut that is not effectively resisted within a better ecology of organized lies and robberies, because the opposition to the established systems are controlled to spout the same bullshit impossible ideals as the biggest bullies that built those systems spout.

Therefore, we are watching as the checks and balances built into the American Constitution fall apart before our eyes. We have already seen the original concepts that money would be backed by gold and silver, whose measure would be set by Congress, devolve to become privatize fiat "money," made out of nothing, as debts. That has become a runaway triumphant system of fundamentally fraudulent financial accounting that enabled the Fraud King in the USA, the Federal Reserve Board, to establish an entire aristocracy of fraud. Furthermore, military history enabled the American Fraud King to become integrated into the globalized system of the King of Kings of Fraud.

To NOT be fraudulent is to admit it is impossible to not be fraudulent. Money is backed by murder. The debt controls depend on the death controls. The history of warfare enabled the creation of sovereign states, which were gradually taken over by the best organized covertly operating organized gangs, that directed the political processes to privatize the powers to rob and to kill, by delivering the power to make "money" out of nothing to private banks, while enforcing that fraud through the powers of the government's police and army, being the force to back up that fraud, through demanding taxation in legal tender. However, it is important to understand that ALL of these legalized lies, backed by legalized violence, were simply codified formalizations of what was always there before, namely that human reality is ALWAYS organized lies, operating organized robbery.

The future should not be based on attempting to make impossible ideals become real. That will only continue to backfire more badly. The future should be based upon a more spiritual understanding, which transcends the false fundamental dichotomies, through a greater use of information, and higher consciousness, regarding the evolution of human reality AS FRAUD!

I liked the astronomical image of a cosmic "bubble" used to illustrate this story. I am simply attempting to explain how much more astronomical, and indeed, cosmological, fraud is!

mayhem_korner's picture

Success in war was based on being the best at deceit, and backing that dishonesty with violence.


Apparently, you have not read Joshua, among others.

Radical Marijuana's picture

I read the Bible once, which included the Book of Joshua, which I presume you are referring to, mayhem_corner?

However, I regard the Bible as being only a very small part of the data base.

There are many other authorities that I tend to have been more inspired by.

"All war is deception."

- Sun Tzu (544 BC-496 BC)

I believe that he wrote the oldest book about warfare.

It begins by saying success in war is based on deceit, and ends by saying that spies are the most important soldiers.

It could be summarized as saying "KNOW THYSELF, & KNOW THY ENEMY."

The Art of War

Of course, I also was inspired by the ancient Greek, Heraclitus.

Heraclitus quotes about the idea that government is like fire:

"Everything is fire, and War is the father and king of all."

And, of course, President George Washington also stated that:

"Government is not reason; it is not eloquent; it is force.

Like fire, it is a dangerous servant and a fearful master."

There is an enormous tradition that is behind the points which I made.

As far as I know, the Bible simply confirms what others have also said.

mayhem_korner's picture

I believe that he wrote the oldest book about warfare.


Even though it was written 1200 years after Joshua

War is an extension of human nature.  I'd be interested if you also feel there is a better authority than the Bible on human nature.  My suggestion is to re-read what you claim to have read once.  Haven't met anyone yet that grasps the Bible on one read.

BullionTweet's picture

"The future should not be based on attempting to make impossible ideals become real. That will only continue to backfire more badly. The future should be based upon a more spiritual understanding, which transcends the false fundamental dichotomies, through a greater use of information, and higher consciousness, regarding the evolution of human reality AS FRAUD!"

This statement appears to be a contradition because the use of the term "impossible ideals" is somewhat misplaced.

Spiritual Understanding is based on the ideals of Truth = Light = Love. These concepts  or ideals are infinite and timeless and are not an illusion of the physical system of entropy in which we have incarnated. They are the foundational building blocks of all that is, which is much greater than what appears to be or how it is interpreted by our limited level of awareness in this time.

The human mind is by definition limited and should not be considered capable of understanding infinity but the entity human being is intuitively aware that infinity is at the basis of all that appears finite. Human intuition has nothing to do with the limited mind but manifests through a human in the form of an action that always proves right. This should be a good sign to us humans that there is more going on here than the five sense reallity we are taught to never question (entropy).

This is why it is always best for the human to align its thoughts and actions to "infinite ideals" that cannot really be achieved on this limited three dimensional plane of apparant finite existance, but which alignment can guide the human to make the right (anti-entropic) decisions in what otherwise could be a very confusing life of entropy and illusion. To align in thought and action to limited or finite ideals is entropic and is terminal. The ideal must be infinite to be sustained.

One must first die to the limited illusion in order to be reborn into a higher awareness of the unlimited. Fraud (entropy) is vaporized in the light of self-awareness.

The concept future is nothing but another mental illusion of limited possibilities to distract us from all that is real.. the infinite resides in the here and now.

Claiming right thought and right action (aligned to the infinite Ideal of Truth) in the Now is the only way to overcome the illusion of entropy and break the system that appears to hold us down in captivity.

As the old chinese master answers his student's question: When is the best time to plant a tree? The master answers "twenty years ago", then adds, "but the next best time is now".

My compliments on your well described discertation on the myriad manifestations of entropy and for pointing to a higher self-awareness as the real solution.




Radical Marijuana's picture

I agreed with your comments, BullionTweet. The problem is how does that ever manifest within the real monetary systems?  At present, it looks like the international banksters have been selected to operate at the top of the social pyramid system as a group of trillionaire mass murderers, with very little compassion for others.

How could it ever be possible for the greater truths about our Oneness to work through a monetary system that achieved a better balancing of the human ecologies, industrial ecologies and natural ecologies? That problem manifests most intensely through the monetary system. The consequences of having a fundamentally fraudulent monetary system, blowing bigger and bigger bubbles, is that those could then pop in worse and worse ways.

I wish that I have some better practical solutions to offer, but I have none but my own paradoxical attempts to understand myself, and the world that I am living in ... Actually, in my own little life, I am treading water in the Canadian context, where I live, with this current political experiment:

However, what that has tended to prove, over and over, is the FACT that more than 99% of Canadians do not want to participate in politics, and do not want to learn about the money and tax system that controls their lives more and more ...

rwe2late's picture


Your analysis made some sense until you started with the nonsensical epistemology.

You wrote:


Really? How do you know?

If you really believe your allegation, then your advancing your views here at ZH is quite hypocritical.

 Indeed, we are all humans, and cannot take the omnipotent view of an alleged god.  Nonetheless, it is impossible to avoid acting in some way (even by illusory inaction).  It is the human condition to act on the basis of what we believe we know based on our limited tools of perception such as logic and scientific method.

Thus, instead of your false premise:


Radical Marijuana's picture

Dear rwe2late, of course I agree that I am hypocritical.

The only ultimate truths are paradoxes.

I also agree with your existential resolution of the dilemma, as Sarte was most famous for elaborating.

Human beings must still act on the basis of their limited knowledge.

The crucial FRAUD in the context of topics most popular on Zero Hedge are the ideas revolving around making "money" out of nothing, as debts. Those relate to the basic ideas about "contracts." After all, there are tons and tons of legal discussions about various ideas of what "fraud" means, and what are the various possible elements regarding beliefs and actions which go into making "frauds."

In that context, I promote the view that the fundamental fraud which has been legalized was the privatized ability to make money out of nothing. Thus, when one goes into a bank, say to get a mortgage to buy a house, the bank is allowed to make the money it lends out of nothing, but the borrower's promise to repay. Our entire economic system has been adapted for more than a Century to be based on that foundation, which has enabled those who enjoy the privilege to legally counterfeit our money supply, which the government continues to force everyone else to accept, have automatically become more and more wealthy and powerful, to the degree where there appears nothing left within that system to be able to resist that runaway fraud from driving itself mad, and destroying itself.

At the same time, there also appears to be nothing sane outside of that system which can resist it. The origin was that everyone has some power to rob, or some power to kill. That is, power was always distributed. However, that power to rob and to kill can be assembled and channelled. Therefore, states evolved, such as the United States of America. American history has been primarily about the development of its powers to rob and to kill being privatized, through the banksters taking over control of the political processes.

As far as I can tell, at present, rwe2late, the answer to the question "ARE WE TOO LATE" is Yes!


That is a good restatement of my position. As it applies to our political dilemma, where the international banksters have already taken control over almost every country in the world, the issue is the overwhelming vast majority of people in those countries behave like Zombie Sheeple, or political idiots, that are so abysmally ignorant that they are allowing themselves to be robbed blind by the banksters, while also allowing themselves to be probably set up to be slaughtered.

The banksters are able to get away with their frauds because they can fool enough of the people enough of the time. The banksters' runaway triumphant frauds depend upon the THE ABSENCE OF HUMAN KNOWLEDGE.

However, one of the reasons why I find myself almost 100% objectively depressed these days is because, after decades of political experiments, I have become convinced that not only do the vast majority of people not understand the monetary system, they do not want to understand. Therefore, I can not see any practical and realistic political ways to prevent the established systems of triumphant runaway financial frauds to not continue to get worse, faster, with terrible consequences. As this articleabove correctly stated, we appear to be headed towards the greatest bust, following the greatest boom, that there has ever been ... one that could result in billions of people dying in quite horrible ways, unless some political miracles happened instead ???

The supreme contradiction is the conjunction of MORE HUMAN KNOWLEDGE, besides the continuing ABSENCE OF HUMAN KNOWLEDGE, which is taking the form of electronic fiat money frauds, backed by atomic bombs that are trillions of times more powerful than ever before in human history ... all of which are developing at exponentially accelerating rates, towards ???



rwe2late's picture



Radical M,

I believe we agree, and look forward to reading more of your comments.

The “real situation” now, in the words of Bob Marley may truly be

that we only are just “here for a while”

and “no one can stop them now”.


But I’ve lately been viewing Ken Burns documentaries on Prohibition and another about the Abolitionists.

“It ain't over til its over.” Who knows what will happen in the long run?

For now, in our lifetimes, we surely will not see much, on the macro scale at least, to make us very happy.

And after we are no longer here, I doubt we’ll see much of anything.



Jstyr's picture

So to summarize what your saying..."Dave's not here."

But seriously-
It is the concept that all men are flawed. And I would agree that the flaws stem from the fact that we experience the world through a combination of our biological filters and technology and not as a whole. We then make up models and theories about how the world works but these are imperfect for the very reasons you have just laid out.

Over time these flaws are exploited by individuals and groups which can manifest as corruption or fraud. Of course it is a basic instinct for any organism to seize on opportunity. You cannot blame the organism!

But can we be wise enough to know our own limitations? I believe the U. S. Constitution was an attempt to recognize that men are flawed and opportunistic. By placing limits on power and upholding the rights of the individual they hoped to stave off the fraud/corruption as much as possible and leave people with the means and freedoms to redress any future fraud that would inevitably surface.

onthesquare's picture

Great commentary.  They have done studies using children to see if they are born to deceive or if it is learned.  Seems they (we) are born innocent and need to learn deception from others as it is rewarded.  There may be hope for us if we stop raising our children or allowing them to be raised by these deception mechanics.

A lie told 10000 times becomes the truth. Confusus?

Anusocracy's picture

Maybe in terms of the conscious mind but not the subconscious mind.

Even before birth, a fetus will send out chemicals into the mother's blood to dilate arteries feeding it to increase its access to nutrients. Even to the point of possible harm to the mother.

The mother is able to respond, but sometimes it can be fatal for one or the other.

In other words, the battle for survival and resources begins before you are even born. Nature sets up people to behave like animals, it is being human that is taught (mostly unsuccessfully).


autonomos's picture

Great comment, thanks. Please could you elaborate on "one should push the philosophy of science through itself, which makes it become consistent with ancient mysticism."

This reminds me of Wittgenstein's will.

Radical Marijuana's picture

Dear autonomos, I have spent several decades attempting a creative synthesis of ancient mysticism within postmodernizing science. The essence of my point you quoted is the issue of self-reference, which is illustrated when there is a map, which is within the area being mapped, or when a video camera is pointed at its own monitor, etc..

One book that I would recommend regarding that topic is by Douglas Hofstader,  Gödel, Escher, Bach: an Eternal Golden Braid.

That book is full of great examples and explanations of the significance of self-reference. Of course, that concept is central to the idea of the limits to measurement, which arise in quantum physics, and everywhere else. They go back and back, to be lost in time of the transcendental poetry of mystics. There truly is no separation between observer and objects observed. Human beings are able to grow a brain, that can build a model of their world, and that ability is WHY we have science and technologies. However, after a being can build an adequate model of their world, then that model includes a model of themselves within that world, which then generates infinite loops of self-reference ... The classic Kantian philosophy talked about the phenomena, and the noumenon. The appearances, and the things in themselves. The paradox is that we can only know ourselves as just more phenomena, although we ARE the noumenon.

The supreme paradox we face today I regard as an Oedipal dilemma. Our abilities to be relatively scientific have enabled us to create technologies which are trillions of times more powerful. BUT, BUT, BUT, those have primarily been applied to advance the social pyramid systems, which are driving social polarization towards some breaking point. Therefore, we have electronic frauds, backed up by the force of atomic bombs, BUT, BUT, BUT, not so much more understanding of ourselves doing that! Of course, I recommend that we "should" recognize that the philosophy of science is supremely important to a civilization based upon technology. I recommend the idea that philosophy of science tends to rediscover what ancient mysticism already intuited, since that was the source. However, the philosophy of science itself tends to confirm Thomas Kuhn's view of the structure of sceintific revolutions. Namely, after we already have an established system of legalized lies, backed by legalized violence, the only apparent ways that can change are very rough! More radical truth has almost no effect upon established systems of lies backed by coercion. More radical truth tends to simply be ignored ... Money as measurement symbolically concentrates all these issues! Therefore, as this article above correctly pointed out, the whole world is now dominated by runaway frauds, which are blowing bubbles whose popping are practically beyond our imagination!

falak pema's picture

to summarise your exposé : human nature is a fraud and evil always triumphs, so back to original sin...we are doomed from the beginning. 

Oh Sisyphus.

Pretty depressing conclusion. 

But both Thucydides and Machiavelli would agree with you; as would Saint Augustine. Manifest destiny, perpetual sleight of hand by the sons of Atreus and its cure : eternal penitence in cowered humility, awaiting judgement day. 

Radical Marijuana's picture

"Pretty depressing conclusion."

Yes, falak pema, these days I tend to have become almost 100% objectively depressed. I WISH I could time warp back to when I was younger, and way more ignorant about politics, and therefore felt more idealistic and optimistic. However, the more I learned, the worse it got, and yet, there is no way to forget ...

There are the philosophical consolations of transcendental poetry, such as that "WE ARE THE WHOLE"

Or, one may attempt to remind one's self that

"I AM the energy flowing through, not the defined system, which is limited by that defintion."

After all, every energy system IS the evironment, since every toroidal vortex is made of infinite loops through the environment. There are lots and lots of mystical meditations to attempt to find such consolations, and those are transcendentally true, in their own way. However, for the particular individual, it depends where they find themselves in their actual life cycle. Just as for the individual human being, there is a life cycle, there appears to be life cycles for entire civilizations. Seen in that light the problems are that we in North America, living in our currently established social systems, ARE seeing those reach their tipping points from debt slavery to become debt insanity. Therefore, we are watching as the runway FRAUDS that control our society become increasingly INSANE, in more and more painfully obvious ways.

I can not think of any effective ways to resist the established trillionaire mass murderers that have taken control over all of the countries in NATO. We are being gang pressed into paying for genocidal wars, along with preparing for democidal martial law, because we are stuck inside of the established international banksters' systems, which are going for broke to try to consolidate their kind of global government, where they continue to have a total hegemony over being able to continue to make the world's money supply out of nothing, as debts, while forcing everyone else to accept that fraud.

We are clearly reaching some tipping points towards where the established debt controls are going to attempt to be backed up with more death controls. Thus, we may well be looking at the runaway global insanity of electronic fiat money frauds, backed by atomic bombs, actually start using some of those atomic bombs, along with the matching imposition of martial law. Since the established systems are ALREADY based on FRAUDS, backed by FORCE, and those FRAUDS have already become debt insanity, according to their numbers, YEAH, "Pretty depressing conclusion."

mayhem_korner's picture

so back to original sin...we are doomed from the beginning. 


To believe that is to buy into the biggest fraud of all.  We are no more doomed than we are redeemed.



spanish inquisition's picture

I remember reading a book many years ago and the line that stood out was, "Every man is an experiment, Mankind is not".

Edit: As to the above poster. More people are involved and more resources are required to maintain the fraud than can be supported by the "Kings of Fraud". Too much vig is being charged to too many people which stifles growth. You need to reduce the amount of vig charged or trim the amount of people you are supporting. Or put another way keeping with the gangster theme, If you have 50 gangsters in a NY square block and 4 shop owners paying protection money... Even totalitariansim has its limits.

Anusocracy's picture

Predation is limited because of feedback.

It's just that man's development of positive-sum economies has raised the quality and quantity of predators possible.

Setarcos's picture

And talking of fraud:

The biggest fraud of all that got us into multiple wars and mass deception + the destruction of evidence for previous massive financial fraud.

"And what was this massive fraud?"  I hear you ask.

Hint:  One sunny day three buildings were virtually vapourized and one severely damaged.

They all housed records of financial corruption and pending investigation.

Yes folks, welcome to a few facts about 9/11 ... which have well and truly been brought to light by Architects & Engineers for Truth, though it has been an uphill battle to get most people unhooked from the official government conspiracy theory that Osama bin Laden dun it all from a cave in Afghanistan.

9/11 remains the biggest lie in all of history and I believe it to be incumbent on all thinking people to continue to expose that lie, on the albeit tenuous chance that exposure might reach a 'critical mass' which destroys ALL of the pretexts for everything enabled by that new "Pearl Harbour" event.

Take the time to look at this:

moneybots's picture

The 9/11 Truther Fraud.


In 1993, one of the Towers was bombed, with the comical expectation that one Tower would collapse into the other, bringing both down.  They failed.  Thus their goal remained.


The Truther conspiracy is that Osama did it from a cave, to invent a mockery.  How many planes have been hijacked over the years?  What does it really take for a group of people to hijack 4 planes, instead of one?  Dividing the group up among four flights.  It is not rocket science.


Financial records were in those WTC  buildings.  If you look around, i would guess that financial records are in a number of buildings.  After the corporate fraud of the 1990's, some people were prosecuted for corporate fraud.  People who are not being prosecuted, are not being so because records in the WTC were destroyed, but because those people are simply being protected from prosecution.  The housing fraud happened after 9/11 and no one has been criminally prosecuted.  It is not for a lack of records.



MedTechEntrepreneur's picture

Question for fellow ZH'ers.  When Kyle Bass points out Japan's Debt Doom due to Debt of 24x Revenues, does that include their unfunded liabilites?  If the US debt bomb included UL's we would be 30 to 40x Debt to Revenue...

hooligan2009's picture

short answer is "yes" and the same applies to Europe (including UK, Scandis). 

policy makers had assumed that fudning future unfunded liabilities from general taxation was viable because the economy would grow in real and nominal terms by much more than the growth in liabilities.

the problem has arisen because capital employed in an "economy" cannot produce the return on capital necessary to retire the liabilities and "grow" at the same time.

rather like each of us saying we will have every lifestyle option we want and not getting sufficient pay rises to pay off the cost of that lifestyle.

sitenine's picture

I can hardly see that the actual numbers even mean anything anymore. As GW points out, the liabilities are all based on fraud anyway. The promises of a brighter future are all bullshit fraudulent derivatives. When trust is finally extinguished, and nothing can stop that now, there will be nothing left except for any unencumbered physical assets you may have wisely stored away for just such an occasion.

working class dog's picture

In the 1920's Berlin was the sin city of the world replaced Paris with an open city for any kind of sex with anyone and using anything.

Circa Berlin 1920's

At this time people in Berlin turned to the only thing they could do to make money that wasnt' controlled by France and Belgium , and that was sex. Middle class families turned their homes into brothels to  get the tourists to come ,and other germans. This liberal period of womens and gay rights being flaunted in the open would last for 14 years before Hitler came to power.  Hitler drove the best thinkers and innovators in Germany to America and England.

        During this misery of hyper inflation and Ruhr work stoppages,     instead of bringing wheel barrels of money to the store to buy bread,  people started to use cigarettes for currency.

       The currency collapse world wide will manifest itself with the large scale emergence of the black market and bartering.

 This will happen on a world scale this time thanks to the race to debase currency wars between central banks.

Today another classic hartley tarriff implemented against Korea. Problem is Whirlpool doesnt make appliances here in the US, they are all made in Korea and China?  Soon it will escalate as the people on food stamps in the US will have them removed by the entitlement cutters for the poor and middle class, meanwhile the scum in Washington have the feed bags tied around thier face as they gorge on election inaugaration banquets.  There is no way the Keyensians are going to grow their way out of this inequality. The system will reset and I will have my ammo, but I will pass on the shelter and canned foods.

Manthong's picture

1920's Germany's got nothing on us..

"..the next big trend, anal tattoos. That was the buzz in August at the 17th annual South Florida Tattoo Expo"

tony bonn's picture

a most blessed and enlightened article.

honestann's picture

The biggest bubble in history is FICTION.

The creators and manipulators of fiction have 99.9999999% of humans completely fooled and enslaved.

Anusocracy's picture

Rights are mentalist constructs - fictions- used to control people, and they are in bubble territory, too.

Dealyer Turdin's picture

The biggest bubble in history is the hole in the human heart, which, being full of a gas that petrifies brain development leads to paper smothers rock.

Long scissors.

eatthebanksters's picture

The time will come when the moochers and the looters manipulate the system to dissuade the creators of wealth from creating. Then the moochers and looters will attempt to control the masses with force from the end of a gun.  And then it will be too late for the foolish people who empowered the moochers and the looters to do their bidding. 

You don't have to make your decisions based upon truth and reality, but you do have to live with the consequences...

gwar5's picture

GW, you're on a roll.  O/T  Would like to see a blog on John Brennan, new CIA guy. Would be most interesting.


He was  CIA before 2008. During 2008 primaries his private security firm was the one who hacked State Dept. in Passport-Gate. Lieutenant Quaryles was the 24 yo guy who did the actual deed but was shot in the head two weeks before he was to testify, April 2008. Just weeks after election Brennan was named Obama's counter-terrorism czar. He's also the guy who said Jihad is a legitimate form of struggle. He is close to Obama who doesn't seem concerned about MB and just gave Egypt F-16s and 200 Abrams tanks. 

Lately, there has been big infighting with DOD vs CIA (boots vs spooks) as to who is in charge of wars, eg, Benghazi fiasco. Complaint is CIA is running illegal wars (more than usual) and ops with strange goings on. US Military is being purged and marginalized and Brennan is now CIA chief, so I guess CIA and Brennan won and he is now in charge of even more covert wars.

What is with John Brennan?





Tinky's picture

Glenn Greenwald is the best source for the truth about John Brennan. Here's a link to one of his latest columns on him:

falak pema's picture

awesome article by Greenwald, thanks. 

The whole African and Syrian capers express this new Obama mindset. 

But this is diabolical play which feeds the inevitable backlash : Obama now seems to concentrate on "drone" target killings rather than DOD boots on ground strategy; which means using more surrogates; aka the French in Mali and more local "respectable renegades" like in Afghanistan; as Bush did in Shia/Sunni/Kurd disruption of Iraq. Technology will never conquer the human will ALONE, if anything encourage them to use 9/11 type insurgency all over first world assets. We need to profit share with responsible local governments but that is not on the agenda of a civilization now deep into bubble fraudulence and over consumption of the earth's accumulated natural riches. We have done more devastation in one and a half centuries than in 10000 years.

Only MAJOR problem with this strategy : the french have no stomach or money for protracted plays and their "white" skinned presence only feeds the neo colonial sentiment locally; of return of Françafrique with a vengeance, and, "local renegades" have the bad habit of becoming Al Qaeda elements spreading the plague.

Remember what the French/US play did in Nam over twenty years?

EMpires do end up with their heads up their asses...

njfeds's picture

I watch my 93 mom lose it all as her money sits and languishes. Fucking sick. It is cruel