Witches Brew: Part 4 - Reality Bites, The Specter of Things to Come

tedbits's picture

A New Issue of the TedBits Newsletter, written by Ty Andros, is Available!

Click here to read the newest TedBits Newsletter in PDF format:

Witches Brew: Part 4 - Reality Bites

  • The Specter of Things to Come

The road to ruin is on plain display and the playbook is easily seen at this juncture. Let’s take a look at how that playbook will unfold. Contrary to popular outrage of the SOLUTION being IMPOSED it is the correct one once the insured depositors where PROTECTED.  In this edition the elites suffered FIRST followed by the private sector depositors who foolishly believed false BALANCE sheets which were POLITICALLY CORRECT but PRACTICALLY incorrect fictions approved by fiduciarily (regulations and regulators allowed ONGOING insolvent operations rather than protect the public by ending and prohibiting them) challenged governments (work for the banks and crony capitalists not for the public at large).

The pecking order of the losses was the CORRECT one: Shareholders FIRST, bondholder’s second and lastly uninsured depositors.  Have we seen this anytime since the crisis began?  It is clear that this is and what must be what’s done in the future.  But for the countries in question to RECOVER they must RECOVER the ability to PRINT and devalue their currency to competitiveness.

Ask Iceland and Greece how the different paths turn out?  Iceland (wiped out bond holders, shareholders, prosecuted the banksters and devalued its currency and is in RECOVERY mode), versus Greece (where the Troika holds all the debt, refuses to take a haircut, the bank shareholders and current bondholders (TROIKA) are intact, is forcing INTERNAL devaluations (to get their new slaves in line) rather than external and is in a perpetual DEPRESSION).  Let’s look at how this is reflected in employment courtesy of www.zerohedge.com:

Which country would you choose to be in?  One is internally devaluing (Greece) and Iceland externally.  In Greece the future is BLEAK, in Iceland freedom and a good future only requires hard work and REAL wealth creation for the public at large.  Italy, Spain, Portugal, Cypress, Ireland are internally devaluing and firmly on the road to ruin.  France is up next.
This is why the euro is DOOMED as internal devaluations destroy many generations of citizens and allow unelected technocrats to gather POWER over all.  Whereas external devaluations provide the path to recovery.  Beppo Grillo is a hero to those who want a future and their freedom from the debt slave masters in Brussels, the IMF, BIS and European central bank.

In a rare moment of candor the Head of the Eurogroup of finance ministers spoke the truth:

“If there is a risk in a bank, our first question should be: ‘Ok, what are you the bank going to do about that? What can you do to recapitalise yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll ask them to contribute in recapitalizing the bank. And if necessary the uninsured deposit holders: ‘What can you do in order to save your own banks?’...”
“If a bank can’t recapitalize itself, then we will talk to the shareholders, bond holders and uninsured depositors.”
- Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers

Unfortunately the vast majority of banks in the Eurozone will CEASE to EXIST inside this TEMPLATE.  This statement reflects reality and is practically correct but is politically incorrect.  He quickly retreated to the standard of LYING after the proper amount of PRESSURE from Brussels was applied.

It is THE template and since the sovereigns in which these insolvent banks reside are ALSO insolvent themselves a belly button moment is at hand for the European central bank and the European commission in Brussels.  CLOSE DOWN HALF of the banks (or more) within the Eurozone, stockholders, liquidate bomb...er...bond holders and confiscate the rest from uninsured depositors or get the printing press in HIGH GEAR!

There really is no alternative after this TRUTHFUL statement.  Human behavior has been altered to the extent that bank runs in Italy have already begun in the weakest institutions.  As they say: fool me once shame on you, fool me twice shame on me.  The die is cast and buffoonery by the TROIKA will it gather speed and momentum.

The average bank asset to GDP ratio in Europe is approximately 375% of GDP.

Switzerland is not included but its bank asset to GDP ratio is over 700% and according to the ECB Luxembourg is 22 times GDP.  If those assets are written down by 20% (those assets are worth FAR LESS) you are still looking at a CUMULATIVE $14 trillion dollar price tag MINIMUM.  The number does not include European sovereign debt which is the elephant in the room as most WILL NEVER BE REPAID but sovereign governments let the banks hold it as RISK FREE.  LOL

“Most Europeans, even today, probably would be better off if over-indebted governments were allowed to default in accordance with the relevant bankruptcy precepts. But it can't happen in societies so trained to look to politicians to overrule the laws of arithmetic and economics whenever those laws are inconvenient.”
- Holman Jenkins, wsj.com

The losses yet to be allocated or PRINTED AWAY by the TROIKA for the European banking systems is probably north of $30 trillion as the numbers above do not reflect off balance sheet and shadow banking activities.  A lot of those bank assets are SOVEREIGN BOMBS...er...BONDS and are UNPAYABLE and inextinguishable although they are sitting on the BANK balance sheets as RISK FREE.  HA, ha!

MONETARY monopolists who printed the MONEY out of THIN AIR and LENT IT OUT.  The idea that these central bankers, sovereign governments and the IMF can’t take a loss is a FICTION!  There is no loss when the money lent was created out of thin air!

(Author's note: In my opinion, this is NOT Doom and GLOOM, it is one of the greatest opportunities in HISTORY. Invest properly for this outcome and Prosper, invest looking in the REARVIEW mirror and your wealth will be irreparably DAMAGED. Volatility is opportunity for the prepared investor. As it is priced in and markets ZOOM higher or LOWER to price in collapsing economies and money printing huge opportunities are created. Is your portfolio structured to thrive? The greatest transfer of wealth from those that hold it in paper and financial assets to those that don't is UNDERWAY. Restoring fiat currencies to sound money and absolute return alternative investments with the potential to thrive in all market (up, down and sideways) conditions is what I do. If you have an interest in learning more and working with Ty: CLICK HERE

Look at little IRELAND whose citizens and their descendants are in a perpetual debt slavery to OFFICIAL (banksters of the TROIKA) bondholders as a result of a TROIKA rescue.  Once again money printed out of thin air with the obligations sent to the public to SAVE THEM.
As Rahm Emanuel said: never let a crisis go to waste.  Think about the IRISH rescue, a panic was created and the debt slave noose was fitted a la Cypress today!

The Germans, Austrians and Dutch citizens are now saying NO to borrowing money to bailout BANKSTERS and creating PERPETUAL generations of debt slaves out of themselves and their children.  These people are practicing SELF defense by refusing to participate FURTHER.  BRAVO!!  This represents an impending acceleration of the Global financial crisis in EUROPE!

Any COMPETENT and self-respecting CFO, CEO, Family office, high net worth individuals, institutional investor, small businessman, retiree, etc. inside the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) that is not moving or planning to move excess funds out of insolvent banks is insane.  No matter what the EU and ECB say...

The ECB Target 2 system is still up and running, when it crumbles and it will, capital controls will descend in a HEARTBEAT.

Remember, Germany is on the hook for almost $1 trillion euros of lending to PIIGS central banks through the target 2 system.  They will see this money back only in their dreams, the money is gone and the economies which must PAY IT BACK are COLLAPSING under Troika demands creating future crises to exploit.  The ONLY thing that will stop this from gathering the big MOMENTUM is the OUTRIGHT MONEY PRINTING not in the form of MORE DEBT.

The ELITE leadership in Europe is HARD CORE socialists no matter where you look and deeply entrenched and like in Amerika the socialists are on both sides of the aisle.  Rehn, Juncker, Merkel, Hollande, Monti, Baroso, etc. are easily revealed as SOCIALISTS to anyone researching their backgrounds and histories.  These people DON’T change their STRIPES.

Blind ideologues, sociopaths and psychopaths who will sentence their constituents to any amount of destruction in their LUNGE for complete control of what wealth is left to extract from what’s left of the respective private sectors.  The same is true for the District of corruption (both sides of the aisle) and the crew in the White House.

Although you may believe you, your money and your property are yours.  They believe it is THEIRS to allocate and confiscate as they wish.  It is no different inside Washington DC (district of corruption).  Private property ENDED at Breton Woods II in August 1971.  Developed world governments have been devising ways to confiscate your wealth ever since, as governments which where a small fraction of their economies then, now are most of the economies NOW!

“The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one's money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrats and bankers try that here?”
- Ron Paul

The European Union is itself a project of creating an unaccountable centrally controlled socialist government OUTSIDE the grasp of its CITIZENS.  It is what the European project has been about since its inception.  Control of the MONOPOLY MONEY printing press is central to their LONG RANGE plan working.  Banksters have worked the booms and busts (caused by unsound money) for centuries to impoverish and enslave (debt slaves) those who labor and live under their currency monopolies.  The founding fathers of the United States KNEW them well:

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered."
- Thomas Jefferson, 1802

We are QUICKLY approaching his conclusions in the developed world.  The banksters have gathered these monopolies on money in exchange for the funding of progressive governments.  How many monopolists that you know work to the benefit of their customers?  I don’t know of any...

Ask former president Woodrow Wilson about this, in the US he is the ultimate BENEDICT ARNOLD and traitor.  Many Presidents have betrayed the public; Watergate is but an anecdote to the betrayal of America by Richard Nixon when he stole the “GOLD” backing off the US dollar at Breton woods II creating the INSTRUMENT (unsound money) of the serfdoms the developed world has become.

In order to get money printed out of thin air countries must surrender their sovereignty to Brussels and chain current and future generations as DEBT SLAVES to the banksters.  The EFSF and ESM are the means of chaining the prudent northern countries (debt slaves but haven’t been notified yet) to the banksters through the indirect mechanism of GUARANTEEING the Borrowing to rescue the south.  It is the stuff of George Orwell (1984 and Animal Farm).

The Eurozone is nothing but a group of elites (government, banksters, crony capitalists, and trade unions) which run EVERYTHING (economy) to their own benefit.  It is a FLEECING machine designed only to prey as parasites on the public at large, its all-encompassing confiscation (inflation, taxes, and regulated demand to crony capitalists) of public wealth is the envy of every progressive in Washington on BOTH SIDES of the Aisle.  It is the economic and political blueprint of the current tenants inside the Beltway!

Just today the troika dribbled $1 trillion euros of money printed out of thin air in exchange for DOUBLING the income tax in Cypress from 15 to 30% as if they have not done enough to steal the futures of its citizens and future generations already.  Anyone who enters the troikas grasp hand their futures mortgaged in exchange for being SAVED.  Can you say Vile and insidious?

Just as the United States is morphing into at LIGHTSPEED under the Chicago boys and the Chosen one in Washington DC (district of corruption) as constant crisis combined with a predatory government prey upon the ECONOMIC crisis which their policies have CAUSED.

As INCOMPETENT, INEPT socialist central planning collapses the European and US economies things shall continue deteriorate from here in REAL TERMS.  Nowhere is there a plan for growth except in the increasing takings from the public, runaway currency debasement and the growth of unaccountable leviathan governments.  As I said, SOCIALISTS smelling the end zone.  An economic and banking collapse (CONSTANT CRISIS, FEAR and terrorizing the public at large) allows them to take everything to SAVE YOU and that is the PLAN on both sides of the Atlantic.  They believe they OWN YOU!

In Conclusion: The die is CAST.  The next stage of the Eurozone crisis has JUST begun!  Any child with a calculator can tell you insolvency is entrenched on both sides of the Atlantic on ALL LEVELS of society: public and private.  Some groups are within the radius of the printing presses (banksters, public serpents, government, crony capitalists) and others are outside (the public).

The public has to surrender everything (THEIR FUTURES) in exchange for the illusion of getting to safe ground.  They are actually being delivered into hell as socialism is MISERY SPREAD WIDELY as REAL growth collapses and money is printed and lent out to provide illusions of growth.  These episodes of currency and financial extinction events occur in waves of insolvency and the next wave is STRIKING right now.  The creation of money out of thin air is not keeping up with the deleveraging/default of the insolvent borrowers.

This episode of the unfolding crisis will provide the spark for the next CENTRAL BANK balance sheet expansion. The next aggressive reflation is commencing.

FLASH: As we go to press ABENOMICS and new BOJ president Kuroda has PRODUCED a STUNNING approach to the Global financial crisis as it announced over $81 TRILLION dollars of monetization of assets of all stripes PER MONTH.  That is triple the size of QE 3 in the US (Japans economy is 1/3rd the size of the US but the money printing is about the same size, wowee).  FIREHOSES of HOT money set to roll off the printing presses into every type of assets you can imagine.  Take a look at this detail from the fabulous Gartman letter (www.thegartmanletter.com):

When I look at this I gasp in its breadth and depth.  It is an incredible escalation in a KEYNESIAN monetary experiment.  The biggest shock and awe assault on paper creation in the crisis.  Between the Bank of England, Federal Reserve, and the Bank of Japan PRINTING over $160 billion a MONTH (160,000 million) to prevent the fall of asset markets and fund sovereign INSOLVENCIES!  Hard to conceive.

Banks in Italy are under great strain as the smart money PULLS OUT for destinations unknown.  Spain and Canada have just put into place the means (laws) for the upcoming episodes of being CYPRESSED!

Mario Draghli (look where he comes from: Goldman Sachs, BIS and Italian central bank, groomed as a master predator, notice Mark Carney incoming head of the bank of England has the EXACT SAME RESUME) in particular is playing the crisis like a maestro to deliver the Eurozone into the grasp of the BIS (the covert owners of all the big central banks) and their minions in Brussels.

He waits till he sees the whites of his victim’s eyes, panic/fear in their hearts courtesy of main stream media, and then extracts their futures from them in exchange for the printed money.  Bang, bang, enslaved nations into the grasp of the troika.  Just this I am completing this missive Draghli is REFUSING to supply capital (crisis creation) to the BANKING systems, as he must be aware this is a recipe for Europe going to the barter system) OR a nationalization of the banking systems (opportunity for central banksters who own the central banks) with the ECB as OWNERS in exchange for the CAPITAL!  WHICH will be printed out of THIN AIR...

This happened in the GREAT DEPRESSION as FED sponsored banks ROLLED up the weaklings.  Think Wachovia, Merrill lynch, Bear Stearns, Lehman Brothers (outside MONEY PRINTING loop), JP Morgan Chase, Citigroup, Goldman Sachs, Bank of America (inside the loop) etc. It has been documented that the Federal Reserve printed and lent almost $15 trillion dollars during the October 2008 massacre.  That money went to banks INSIDE the MONEY PRINTING LOOP!  Capiche?  This playbook has been played for centuries.  Are you inside the loop of money printing or outside, which is the question?

The NEXT question becomes: will he blink and let the real printing press loose or miscalculate and set off the real nuclear detonation of the Eurozone banking and financial systems.  We shall know the answer soon.  He has and the troika have gathered untold power in the PIIGS and destroyed countless lives and futures.  Beppo Grillo and his constituents are just the TIP of the SPEAR of citizens seeking to recover their freedoms and futures from the banksters. EXPECT MUCH MORE to emerge!

This decline in the rate of money printing is why you see silver and gold struggling in the face a disintegrating Europe.  Couple that with massive paper gold and silver selling by the Federal Reserve and US treasury to kill the inflationary canaries in the coal mine.  Fortunately the public and foreign central banks are taking delivery of physical gold and silver as fast as it is available at these bargain basement prices.  A clash of TITANS so to speak.

The only antidote to this crisis, REAL economic growth, not nominal growth.  In order for that to happen private property rights must be restored, CRONY CAPITALIST regulations repealed and CONFISCATORY taxes lowered.  What’s the chance of that?  A snowball’s chance in hell.

Don’t worry; they will print the money... Historically the printing press has always emerged and I believe this time will be NO DIFFERENT!  Don’t miss the next edition of TedBits Witches Brew, subscriptions are free at www.Tedbits.com or www.TraderView.com, may God Bless you!

(Author's note: In my opinion, this is NOT Doom and GLOOM, it is one of the greatest opportunities in HISTORY. Invest properly for this outcome and Prosper, invest looking in the REARVIEW mirror and your wealth will be irreparably DAMAGED. Volatility is opportunity for the prepared investor. As it is priced in and markets ZOOM higher or LOWER to price in collapsing economies and money printing huge opportunities are created. Is your portfolio structured to thrive? The greatest transfer of wealth from those that hold it in paper and financial assets to those that don't is UNDERWAY. Restoring fiat currencies to sound money and absolute return alternative investments with the potential to thrive in all market (up, down and sideways) conditions is what I do. If you have an interest in learning more and working with Ty: CLICK HERE

For greater insight into the philosophy behind Tedbits, have a look at the Tedbits Overview - To help understand our mission in serving you, the TedBits Overview gives a broad description of what’s unfolding globally and what you can expect from Tedbits as a regular reader.

You can view Archives of the TedBits Newsletter here.

If you know of someone who you think would enjoy the TedBits Newsletter or the information on TedBits.com, please feel free to forward them this email. They must subscribe to TedBits, with your recommendation (the forwarding of this e-mail), they can subscribe for free.

Comments or Questions?
As always, we welcome any comments or questions. Click here to contact us or email to comments@TedBits.com

Author's Note: I hope that you enjoy the newest edition of the TedBits Newsletter. My goal is to bring you the latest information touching on a wide variety of subjects and how they relate to global economics. Expressed in the Newsletter are my opinions, which do not necessarily reflect those of the TedBits website. I simply ask you to think and rethink your views; if along the way I offend you, I apologize. No offense is ever intended; please take none from my words.


Ty Andros
Author of the TedBits Newsletter

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
etresoi's picture

I could notcontinu ereading this drivel and suggest the author enroll in remedial writing lessons, before being allowed on ZH, again.

Bazza McKenzie's picture

"betrayal of America by Richard Nixon when he stole the “GOLD” backing off the US dollar"

As usual, Nixon gets a bum rap.  If Nixon stiffed anyone, it was foreigners, not the US public.  The latter had been stiffed when FDR confiscated gold and made the dollar no longer convertible into gold domestically.  Since a currency exists primarily for use within a country, by far the greatest betrayal was performed by FDR.

By the time Nixon "closed the gold window", the US had far more currency overseas than the US had gold, despite the fact that currency was ostensibly convertible into gold at the request of foreign CBs.  So the US was engaged in fraud.  This was courtesy of the spending behavior of Nixon's predecessors.  They had issued dollars, both domestically and internationally, to support a level of spending that exceeded the income and the convertible assets of the US government.  Nixon simply took the inevitable step of refusing to pay what could not be paid.

moneybots's picture

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered."


It makes me wonder why the conservatives are in the bankers hip pockets, considering conservatives  shout about liberty and freedom so often.  They stab liberty and freedom in the back.

Bazza McKenzie's picture

I think you are conflating conservatives with Republican politicians.  They are by no means the same.

cabtrom's picture

If I understand this correctly the first bubble was created by poor people via the housing bubble, now the new bubble is being created by richies? So if I'm rich where do I put all my money? I am friends with a older guy who is 67 and retiring this year from the construction industry. He tells mee ALLL his cash is in his saving account because he doesn't trust the stock market. This is just a guy who worked his whole life and has over 400,000 in 3 different banks. He says "I wouldn't put my money in the stock market I'd rather get 00.1% interest then gamble it in the stock market.". So, wtf does this mean?? Is he the norm or the exception?? If he's the norm why wouldn't cash be golden until boomers all die off? If he's the exception then where do all the other boomers have their cash?? Ps and by the way he called me crazy for wasting 4800$ on gold back in 2008 when it hit 800 and ounce. So now what?

lynnybee's picture

good to read Ty Andros articles.   this guy is awesome.   i'm hooked on his writings & interviews.

Fishhawk's picture

Radical has nailed the first premise: money is backed by murder.  But he seems to think that this is somehow inevitable, and results from natural forces.  Real money is not backed by murder, but results from enlightened self-interest of all market participants.  So the control fraud that is reflected in our current controlled markets is the direct result of the fraud of debt as money.  And this fraud is widely acepted by the populace because there is majority belief that such a system provides something for nothing.  We all know that there is no something for nothing system possible, so now cognitive dissonance covers for the initial acceptance of 'debt can be money' fraud.  It is faulty logic, accepted due to the desire that 'something for nothing' could be true, if not for real, at least for me.  

For the banksters, the money fraud is all about control.  The cartel/elite/money power, whatever you choose to perceive as the source of this fraud, realize that the escape from their system is independence from debt.  And for the middle class, the road to financial independence is through small business, ie, capitalism on a local scale.  Thus the rush to create a tax system, and a regulatory system, that creates an unfair barrier to small business, since the cartel does not like competition, and monopoly business is doomed to a high level of incompetence, what with bloated management full of syncopant bullies with no desire to be creative or successful.  Their definition of success is different from that of a would-be capitalist.

The elite have been highly successful in creating the debt enslavement of large portions of the world population, following the IMF blueprint.  But they have not thought through their experiment in financial repression, and as the transition period approaches, their premise that millions of once resourceful, productive workers will come in from under the bridge or cardboard box they are now living in, and cheerfully accept slave labor for less than survival wages is about to be tested, real hard.  And that is when the failure really begins.  The process of that resolution can only be described as war, although our concept of how wars have been fought will have to be revised, as this one will be personal.  The banks will be repudiated, along with the governments that are colluding to support the bank fraud.  This will largely be achieved by the people creating alternative systems that avoid the government regulations and the bank's debt money, ie, society will have to re-invent itself and create a do-over in which a new form of government and a different form of banking are established from the ground up, as the masses realize that top-down solutions only favor those at the top... 

ps to Tyler: why doesn't my bird picture show?

Radical Marijuana's picture

Fishhawk, as my reply above to Stycho just repeated, I DO "think that this is somehow inevitable, and results from natural forces."

I think it does no real good to correctly analyse how the banksters, as the Fraud Kings, were able to do what was clearly laid out by Georgetown Professor and historian, Carroll Quigley, who commented on the creation of the central banks in his 1975 book, Tragedy And Hope, as follows:

"The powers of financial capitalism had (a) far reaching (plan), nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank For International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank ... sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the Country, and to influence cooperative politicians by subsequent economic rewards in the business world." 

BUT, then collapse back to impossible ideals about how to fix those problems. The basic political problems ARE inherent and innate in the nature of all life. Those would also be repeated if we evolve an industrial ecology, wherein computers develop which have adequate models of their world, which include adequate models of themselves within those models of their world. If, or when, computers become as able as human beings to operate relatively complete symbolic models of their world, and themselves, then they will have all the same problems as human beings already do!

I think that nature tends to eventually wipe out over-developed monopolies. I think that nature tends, over the longer term, to favour diversity, since that enables adaptability, which favours longer term survival. However, for now, we are inside the runaway triumph of the Fraud Kings, the central banksters, driving an insane monopoly over the privatized creation of money out of nothing, which is rigidly enforced by governments, against the interests of almost everyone else!

Most of what you are suggesting, as partial solutions, are ways to favour the survival of more diversity, which are good ideas. However, ultimately, that would have to include diversity in the systems of death controls. I believe we are necessarily stuck with the murder systems being central to everything else. Militarism is always the most important ideology. The death controls are paid for through the debt controls, which then return to back themselves up in return. In theory, every possible different debt/money system has to have a death/murder system at the heart of that! Any possible system of alternatives have to have those realities as the central keystone, and lynch pin. 

Radical Marijuana's picture

I liked the cartoon of the legislature wolves having a committee meeting with the taxpayer sheep.

However, I again add my overall comment on human ecology to this kind of political economy story.

The basic problem is that money is backed by murder, and it is impossible for that to otherwise exist. There are no genuine solutions possible which do not go through profound paradigm shifts with respect to militarism, in order that the death control systems could be radically transformed.

The "road to ruin" we are on now is way worse than this article seems to still presume, since it does not face those deeper facts that MONEY IS BACKED BY MURDER, and so, when the money system breaks down, the murder system breaks down too. Furthermore, since this kind of Austrian economics perspective upon these problems is deliberately too superficial, and so, ignores the human ecology context, there is nothing adequate to comprehend being on the other side of the social storms that will blow through, when the triumphant runaway financial frauds' pyramid schemes finally collapse into chaos.

The globalized human civilization is an ENERGY SYSTEM, which is controlled by legalized lies. That makes sense from the perspective of history, but nevertheless, results in exponentially increasing social insanities. However, the full return to social sanity could not be anything less than for that system to develop a better murder system, to maintain a better money system ...

Of course, at the present time, the runaway triumphs of legalized lies, backed by legalized violence, which enable money to be backed by murder, in ways that the vast majority of people do not understand, and do not want to understand, makes any sufficiently good solutions to these problems appear practically impossible.

The current systems are the result of the small percentage of human beings who act like vicious wolves (or more domesticated dogs) controlling the vast majority of the human beings who act like sheep, (with even a few black sheep.) The established systems are the result of the triumphs of organized crime being able to take control over governments, in order to legalize frauds, and back those frauds up with force.

Therefore, everything we are doing is buried very deeply under layer after layer of the money being backed by murder, while almost everyone inside those systems refuses to recognize and admit those basic social facts. While there is no doubt that the basic financial numbers are nuts, since they are the result of runaway triumphant fraudulent fiat money, made out of nothing, by private banks, as debts, there are enormous doubts that we will be able to go through the eventual collapses of those systems with anything less than more genocidal wars, along with democidal martial law. Indeed, the ONLY real solutions would be to do those kinds of death controls better.

Our real human ecology is a bankster dominated government by a few wolves controlling a vast number of sheep. Almost everybody within that system is lying about how it works, and what it is doing. Therefore, it just keeps on getting crazier! Since there is finally nothing else outside of the basic facts that money is backed by murder, there is nothing else outside of the basic solutions that there have to be better murder systems, IF there are going to be better money systems. BUT, almost nobody within those systems will face those facts.

Therefore, we have a political economy based on legalized lies, backed by legalized violence, in which almost nobody will think systematically about the human ecology context in which that political economy exists. Instead, we have superficial "solutions" being offered that continue to presume that the current murder systems could be taken for granted. However, when the runaway financial frauds finally get so insane that they collapse themselves into chaos, then we will no longer be able to take for granted the current dynamic equilibria between the different murder systems either.

StychoKiller's picture

Hmm, munny might have to be backed by murder, but there are alternatives (which would involve locking up ALL sociopaths...)

Radical Marijuana's picture

The problem is the paradox of enforcement, which is embellished in the dilemma of who is going to defeat the psycho-sociopaths?

Nobody guards the guardians. There are no "good guys," which will stop the bad guys, there are only different kinds of bad guys, and the history of war, for thousands of years, has been that success in warfare was based on being the best at deceits, so that spies were the most important soldiers, etc.!

The problem is that the psychosociopaths are precisely the people who take control, because they are the best at lying to other people. As the cliche goes, "the good die young."  There is a very short, almost none existent, list of relatively bad politicians and public figures that actually got assassinated, while there is a very long list of relatively good politicians and public figures that were assassinated. That is because the good guys tend not to assassinate the bad guys, while the bad guys tend to routinely assassinate the good guys. Furthermore, that only illustrates a much bigger overall problem, which actually expresses some of the basic principles of general systems, through their forms in human civlization.

It was NOT an accident that the best psychosociopaths ACTUALLY ended up controlling civilization. It was not an accident that our society ended up being controlled by the best professional liars and immaculate hypocrites that money could buy. The most labile component in a system is regarded as the component which controls that system. In human terms, that means the people who are the best at being dishonest, and backing that up with violence routinely end up controlling civilization.

Anyway, it is extremely difficult to think of practical ways to lock up the psychosociopaths, instead of developing institutions that will enable the best of those evil people to take control of those institutions, to lock up other people who are not so evil. That is why I insist that the basic theory should be that money is and must always necessarily be backed by murder. There are no alternatives which can be based on impossible ideals as the way things work, because things do NOT work that way.

The scientific way to look at energy systems, in the form of civilization, is that human realities are ALWAYS organized lies, operating organized robberies. ALL churches, corporations and countries are doing that, in their own ways. Thus, there is no ultimate way to separate the good from the bad, and all attempts to fundamentally do that tend only to backfire, and thereby enable to worst people to take control over the social language and insitutions that pretend to do that, but then abuse and misuse that power as badly as possible.

Therefore, facile suggestions that we should kill or imprison the bad guys actually misfire, since it is the worst guys that actually operate the systems that routinely kill and imprison others. The general theory of good citizens protecting themselves collectively, through having a good rule of law and justice system routinely ends up backfiring badly, because the worst guys tend to take over control of those institutions!

In fact, the only things that might be possible are that IF more people stopped believing in the biggest bullies' bullshit social stories, then they MIGHT be able to work towards better dynamic equilibria between the different organized systems of lies, operating organized robberies.

Basically, there are NO "good guys." There are only different kinds and degrees of bad guys, while the worst tend to take over the whole system. Civilization is an energy system, or another entropic pump system. In energy systems, energy tends to go down its own local path of least resistance. In human terms, that means the path of least morality. In theory, it would be possible to build better systems of resistance, which would engineer a relatively more moral society. However, since the vast majority of people tend to believe in impossible ideals, based on false fundamental dichotomies, that is practically a non-starter.

Instead, false fundamental dichotomies, and their related impossible ideals, tend to assist the psychosociopaths to function as better liars and hypocrites, that can more easily bambozzle other people with the good sounding bullshit. In theory, we need way more people to become way more sophisticated in their understanding of society. Instead, the basic obvious facts, namely, that the governments are the biggest terrorists, and the banksters are the biggest gangsters, get lost and submerged in the bullshit debates about there being a basic difference between different groups of people.

There are no fundamental dichotomies between people, everyone is some degree of psychosociopath. The real world is NOT black vs. white, but endless shades of grey. There is a technicolour universe. The supreme "good" is all those colours taken together. The relative "bad" is some of those colours, with others missing, to some degree. Absolute bad is no light whatsoever, and therefore, absolute evil does not exist. The relative evils apparently exist, and our conflicts are between different systems which have different styles and rates of transforming the same energy. When people could not agree, and are in conflicts, then those who prevailed through those conflicts tended to be the best at being deceitful. That is WHY human history has driven the creation of War Kings, and then the sovereign powers of the states generated by those War Kings ended up being taken over by the Fraud Kings.

These problems are infinitely deeper than blaming a few psychosociopaths for being bad, and then thinking that killing them, or locking them up, would provide a better set of solutions to these social problems. The problems which this article reviews are that the financial numbers are going NUTS, because the Fraud Kings, the central banks, are the biggest gangsters, that have taken control over our civilization. The genuine solutions to those problems require a better murder system, to maintain a better money system, because in the real world there IS, and MUST BE, some combined money/murder system.

Blaming the ruling elites for being the source of all the evils is useless and misleading. What MIGHT be done is that what they do could be done better. However, that is almost infinitely dangerous and difficult to actually do. "The Spectre of Things to Come" is practically guaranteed to be "reality bites!"

As the exponential growth of the level of the human population and activities continues to overshoot, as funded by a debt engine system, the return to some equilibria is practically guaranteed to be drastic! One way or another, sooner or later, new systems of death control limits ARE going to stop the exponential growth that we have been taking for granted through the past few Centuries.

Notions about going backwards to some obsolete ideals about what sound money or honest money should be are NOT possibly going to work, since the human ecology problems are going to overwhelm those political economy problems. What I expect is that human society will continue going down and down it local paths of least resistance, with those who are the best at being running force backed frauds continuing to control what happens. The hope for an honest money system appears as forlorn and problematic as the paradox of hoping for a more honest murder system. Now that we have weapons of mass destruction, a more honest murder system would seem to be a fantastic priority. However, that is deeply problematic, due to the history of warfare making success be based on deceits, and the history of economic success end up making the most fraudulent people the most wealthy and powerful people.

I would like to day dream that we could and should theoretically develop better systems of resistance, in order to change what the path of least resistance was ... however, that is way more difficult than the facile suggestion that somehow, somebody, who are the "good guys" are going to miracluously put more of the "bad guys" in jail. Right now, the bad guys are way more able to put the good guys in jail, rather than the other way around, although there are no fundamental dichotomies between those groups.

ronaldawg's picture


first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property

Deflation is a term coined in the 1920s - SO HOW MUCH MORE OF THE ARTICLE IS BULLSHIT?



MORE - huge typo


?new BOJ president Kuroda has PRODUCED a STUNNING approach to the Global financial crisis as it announced over $81 TRILLION dollars

?TRILLON?  Really  why just not say CHAZILLION? 

moneybots's picture

"As Bartleby hints at, one shouldn’t throw the baby out with the bath water. Even if Jefferson didn’t say that, in whole or in part, it’s consistent with his beliefs and actions."

teolawki's picture

Ditto on the phony Jefferson quote. Jefferson was in many ways a brilliant man and it's unfortunate that this "quote" keeps being attributed to him. It really pays to do your homework if you want to be taken seriously.

delivered's picture

Scro. I have worked closely with the small/medium sized business community ($5 to $250 million a year in annual revenue) over the past 20 years through my consulting practice focused on accounting, financial, and strategic business functions and here is what I'm seeing (for what it is worth):

- The Great Recession cleaned house/culled the herd of the smaller/weaker businesses. Sales plunged, capital dried up, and the weak simply died. Some quick, others slowly but since 2008, their is no question the carnage has been significant.

- However, the stronger businesses not only survived but have prospered over the past 2 years by aggressively taking marketshare left by the walking dead. If you were able to survive, then new opportunities abound thanks to the economic misfortune of others. But job growth in these companies has been very measured as a result of leveraging economies of scale and business owners having fresh memories of what just happened.

- Further, the capital needed by small businesses to launch new ideas which historically has come from savings (wiped out by the market or used to survive), real estate (no explanation needed here), or from insiders such as family members, friends, or close business associates (all suffered significantly during the past five years) remains very limited. The result, the capital required to form new, small businesses is not available thus restricting new business formation and job growth.

- So with weaker competitors gone, no new competitors coming on board, the remaining businesses continue to benefit, grow, and get stronger.

- But what is interesting is what I'm seeing now - Time to Exit. Large companies have cash to deploy and need revenue growth so they are in a buying mode but the availability of smaller, quality companies (quality being the key word) is limited. Sellers from smaller quality companies are getting very attractive offers and with the recent bad memories of the Great Recession and worries about the next collapse (not if just when), they are heading for the exits. Compounding this is an extremely painful regulatory environment on the tax front and a nightmare coming with Obamacare for small businesses.

- So here's the conclusion. Take the money and run now as between capital still being very scarce and expensive (for small businesses), being regulated too death, having attractive offers being made to quality companies, and knowing that another meltdown is on the way (most likely starting in Europe), the risks and rewards of continuing to operate are just too great (compared to the ability to exit).

Back to your question, What about the small to medium sized businesses that were destroyed? They're gone for good with an economic environment that is making it very difficult to ever replace these companies. This engine, I'm affraid, is running out of gas as the Main Street American Dream of opening and operating a business has never been more challenging or full of risks. BTW, just wait until Obamacare really kicks in and kicks the ass of small businesses. In certain industries, I'm already seeing the signs of a stampede to the exits.

Ckierst1's picture

Woodrow Wilson was not the ultimate Benedict Arnold, dishonest Abraham Lincoln was.  Lincoln enabled Wilson.

StychoKiller's picture

It's interesting how History assumes a completely different complexion from a different point of view, that's still logically consistent.

akak's picture

An interesting read, but while a valiant effort, this guy does not Jim Willie as well as Jim Willie himself.

TheFourthStooge-ing's picture

akak said:

An interesting read, but while a valiant effort, this guy does not Jim Willie as well as Jim Willie himself.

Apparently Jim Kunstler agrees:

One rather extreme scenario I do subscribe to was laid out by blogger Jim Willie recently: the effort by Russia, China, and others to isolate and neutralize the US dollar as the world's so-called reserve currency by systematically converting holdings of US Treasury bills into gold wherever possible, and to thereby diminish the baleful influence of the Imperial US behemoth. They are assisted in this endeavor by the US itself in its bungling efforts to manipulate and suppress gold prices, as well as our prevarications as to exactly how much gold remains in the various places it is supposed to be stashed - Fort Knox, West Point, and the sub-basement labyrinth of the Federal Reserve Bank of New York - generating ever-greater uncertainty about the extant world gold supply, and hence its value relative to things like currencies.


solgundy's picture

Jim Willie is related to Central Bankers, as he too makes it up out thin air.

RockyRacoon's picture

The Disclaimer at the end told me all I needed to know.

"It's possible that we are full of shit, but don't blame us...."

Well, somewhere, some day, somehow, blame must be placed and the price paid.  Get in line.

Scro's picture

What about the small to medium sized business that were destroyed. I don't think they were/are the elite, just the engine of the economy.