2014 Outlook: Pandora's Box

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TedBits Newsletter January 17, 2014 



General Overview and state of affairs

Looking for an accident/black swan

As we begin 2014, it is important to recognize the levels of INSANITY currently existent in the world  enabling us to understand the apocryphal nature of the times we live in and prepare ourselves to meet the challenges it represents.  The world is leveraged to an extent that has never before seen in history! Debt now masquerades as NOMINAL growth and REAL growth has ceased.  Headline economic reports are now nothing more than POLITICALLY CORRECT HOAXES to FOOL the public at large and mask the betrayal of the public by the leaders who hold the reins of power.  ECONOMIC Stagnation emerged after the 2008 Global financial crisis and in real terms has NEVER ENDED!

The greatest economic, political and societal collapse in recorded history is unfolding and has been doing so ever since the final denouement of partially sound money occurred at Bretton Woods II in August 1971 – thereby allowing governments, the financial systems and elites to substitute money printed out of thin air and politically correct/corrupt legislation for sound economic policies.  This process has been unfolding for 40 years and is nearing its demise. 

Growth now is a function of expanding credit, financing government and consumer consumption and calling it GDP.  The developed world has become Something for nothing societies are like locusts they eat everything right down to its roots, including next year’s seed corn.  They will issue debt until it no longer can be sold. They will print money until it is no longer accepted.  This process is well established and underway (think Venezuela, Greece, Argentina, this is the future).  To illustrate the LACK of GROWTH, look at this chart of GDP from Chris Wood at CLSA and subtract the deficit:
Most economists are PREDICTING accelerating GDP growth in 2014; you sure wouldn’t come to that conclusion based upon median family incomes since 2008;
Or the crash in PERSONAL incomes over the last year
As you can see, the only period that compares to this CURRENT CRASH in disposable income in the last 20 years was the crash of 2007-2009.  Do you think this reflects a robust economy in 2014 as predicted by the MSM and Keynesians?  To grow the economy, we must borrow money to finance spending and report it as GDP.  DEBT MASQUERADING as GROWTH!

Now, the developed world’s economies have been hollowed out (by runaway regulation, taxes and crony capitalism) and much of the wealth creation occurs in the emerging world.  Crony capitalists and their minions in government just attack the private sector where future growth and productivity must come from.  They carve it up and destroy the future creative destruction (aka “Capitalism”) which must occur for growing middle classes and economies.  The powers that be are MINTING fire hoses of NEW money, creating at least 8000 million dollars/yen a DAY (2 million million a year or 2+ trillion per year) to support the global economy, bankrupt sovereigns and financial systems.  Very little BAD can happen when they are printing and injecting this amount of money into the financial system and government coffers on a daily/yearly basis.

“Currencies don’t float they just SINK at different rates”

- Clyde Harrison
Asset-backed economies provide the ILLUSION of growth in the developed world driven by currency depreciation (ASSET prices rise/reprice as the purchasing power of the currency they are denominated in sinks) and never-ending leverage to fund consumption and HIGHER ASSET prices.  This is insane behavior, but now is the last refuge of the powers that be.

Insanity in individuals is something rare - but in groups, parties, nations and epochs, it is the rule. 

- Friedrich Nietzsche
The crisis will GROW and GROW and continue to unfold until enough people WAKE UP and people begin to take action to preserve themselves, at which point volatility will explode.

"Men, it has been well said, think in herds. It will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."  

- Charles Mackay, Scottish journalist, circa 1841
Authors note: Tedbits is global Macro analysis PURELY through the AUSTRIAN lens and when this “Pandora’s Box” series concludes I will have extracted you from the MATRIX of UNREALITY and cut through the ILLUSIONS of the Keynesian world most people live in.  YOU will KNOW the truth and SEE the unfolding collapse of the developed world unmasked from political, main stream media and monetary illusions.  In coming issues will be covering, stocks, bombs er bonds, something for nothing societies, energy and natural resources, commodities, precious metals and currencies, policies of insolvency, G-8 economies,  China, suppressed volatility, politically correct and practically incorrect economic stats, demographics, debt, deflation, inflation, etc.  All black swans: which one will land first?  Don’t miss an issue as subscriptions are free CLICK HERE.
We are nearing the endgame of this global insanity and the opportunities are as great as the pitfalls. The unfolding CHAOS will escalate and escalate as waves of insolvency strike fiat currency and credit systems over and over until the reorganization and reset takes place in the near future as Mother Nature forces man to yield to REALITY.  A King Canute moment LOOMS!

What is the REALITY I speak of?  It can be summed up in THREE words: COMPLETE SYSTEMIC INSOLVENCY.  The world is locked into debt spirals where debt just continues to compound and growth has become a STATISTICAL fiction.   They are simply unpayable and inextinguishable PROMISES TO PAY (Bonds and the IOUS /“currencies” in which they are denominated: IOUS denominated in IOUS) at every level of Government, and the FIAT Currency and financial systems are their circulatory systems. 

Add to this the MORAL and FISCAL insolvencies which has evolved throughout the developed world governments who are SOCIALIST in everything but name only. 

“The American people will never knowingly adopt socialism. But, under the name of “liberalism,” they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened.”

- Norman Thomas 1944

Socialism is MISERY SPREAD WIDELY as economies collapse under its policies.  It is the transfer of wealth from the poorest (aka the private sector, individuals and small businesses in particular) among us to the central governments and their special interest constituents as THEY are the most defenseless to their policies. In other words, you and me.

"Socialism is a philosophy of failure, The creed of ignorance, and the gospel of envy, Its inherent virtue is the equal sharing of misery.." 

Winston Churchill
This socialism and financialization of world economies has careened out of control, funded by MONEY PRINTED out of thin air since 1971!  Bretton Woods II was a breathtaking betrayal of the American people and the developed world as money being a store of value CEASED to EXIST. 
At Bretton Woods II, the developed world’s economies were converted from Capitalist economies (based upon semi-sound money, sound regulatory policy which encouraged and rewarded entrepreneurism and wealth creation, producing more than you consume, creating real wealth/savings and allocating capital to people that delivered more goods and services for less money). 

This RECIPE had been in place since the founding fathers were inspired by GOD and created the US constitution and a nation of FREE MEN.  All that is required for REAL wealth creation is FREEDOM from the shackles of corrupt rulers and human behavior.  We did it for 200 years and created the wealthiest country the earth had ever known. 

“Capitalism has created the highest standard of living ever known on earth. The evidence is incontrovertible and yet those who are loudest in proclaiming their desire to eliminate poverty are loudest in denouncing capitalism. Man’s wellbeing is not their goal.”

Ayn Rand
Deng Xiao Pings epiphany on capitalism and that to “Get rich is glorious” has lead china to the top of the world’s GDP tables in just 25 years.  The Chinese people suddenly were given the freedom to reap the rewards of their efforts and human behavior, once again, did the rest.

“The best way to destroy the capitalist system is to debauch the currency. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.  By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose.”

- John Maynard Keynes, 1920
Bretton Woods II turned the developed world economic models into economies which consumed more than they produced, borrowed money from the future, converted the monetary systems into confiscation devices of morally bankrupt governments, elites and banking/financial systems.  Economic growth is now a function of credit expansion, government growth (consumption/spending labeled as economic growth), and misstated inflation.  And a redistribution scheme where the unproductive TAKERS loot the MAKERS of wealth with public servants in charge at the point of a government gun.
At least 10 to 20% of this debt is NO GOOD, UNPAYABLE, INEXTINGUISHABLE and SITTING on the books of the financial (banks), insurance and pension industries.  This bad debt is far in excess of the reserves held to offset losses.   The US economy now requires about $11 dollars of new debt to create $1 dollar of GDP!  A big portion of this debt was and is used to finance welfare state consumption, thus it is not self-liquidating.  It is just a FUTURE tax on our and our children’s income. 

When this leverage FAILS, and it will, we will face a CURRENCY and FINANCIAL system EXTINCTION event.  Note how this tiny reduction in leverage in 2007-8 almost destroyed the GLOBAL financial systems.  Reserves against losses have dwindled to a point in which we essentially run an UNRESERVED financial system.   The rules of Basel III is now being debated as to whether banks can run with 3 or 4% common equity, the difference being whether they run at 25 to 1 leverage or 33 to 1 leverage… Operating with INSANE levels of LEVERAGE, especially in a fasby 157 world where assets are marked to model/MYTH.   PROPERLY MARKED the Developed world’s banks are operating in regulatory approved INSOLVENCY.  The Federal Reserve created approximately $15 trillion dollars ($15 million million) during that period and injected it to prevent bankruptcies throughout the developed world’s financial systems.    

As New Chairman Janet Yellen and vice chair Stanley Fischer (mentor and teacher to so many of today’s central bankers) set to take office you can expect an event to materialize shortly as markets challenge them as they have every new chairman in the last 50 years (Miller, Volcker, Greenspan,  Bernanke).  No one knows where the challenge (dozens to choose from as I will outline in this series) will come from but you can bet it will ARRIVE shortly (2 to 18 months).  The federal reserve has three mandates: foster inflation of 2% a year, support employment and NOW GUARANTEE the GLOBAL financial system with their printing presses.

Quoting Ludwig Von Mises:

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

- Ludwig von Mises
Something for nothing societies (communist/socialist) now inhabit what once were capitalist economies in the developed world.  The public school monopolies have now turned the majority of their citizens into “USEFUL IDIOTS” (as described by Vladimir Lenin) who believe hard work is not a requirement for success and happiness, but is simply a lifestyle choice.  This lack of education has destroyed their ability to get a job, advance or think for themselves, making them RIPE for Main stream media MANIPULATION.  They are not taught how to think for themselves but what to think.

A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.

- Alexis de Tocqueville 1835
The dictatorship de Tocqueville speaks of is under construction in Washington DC (the district of corruption).  Central Planning has become the policy of government.  Growth in government started its transition from servant to master after Bretton Woods II when it became UNSHACKLED from SEMI-sound money:
Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.
- George Washington 
The UNITED STATES has now become the nation the constitution was meant to PREVENT, a socialist centrally-planned economy on its way to dictatorship as the economy fails and the something for nothing societies EAT the minorities who actually produce REAL wealth.  Cannibalism of the worst sort! The founding fathers CAREFULLY crafted the constitution to protect minorities from the tyranny of the majority.  Those protections have now been dismantled and what’s left of the private sector sits on the buffet table. 

Those protections are now routinely repealed/ignored as we recently witnessed the REPEAL of the 60 vote majority rule by Senate democrats.  That rule has been in place for 229 years and its demise will allow all sorts of political ideologues to ascend to positions where the checks and balances of our government (which are essential to the freedoms of all) are REPEALED or ignored.

The regulatory state, implemented since 1971, stands ready for ENFORCEMENT during the UNFOLDING crisis which the economic and financial collapse will create (this will be covered in detail in subsequent editions of TedBits).  Most of US citizens break dozens of laws on a regular basis and don’t even realize it, as the laws are too numerous and complex to comply with, unknowingly waiting for the government to show up and arrest/fine them if they GET OUT OF LINE!  (Ask Jamie Dimon about this)

A steady theft of freedom through CENTRAL GOVERNMENT regulation has been in process since 1971 when the road to Leviathan government was ALSO born at Bretton Woods II.  Get ready to hear from our masters inside the beltway, Brussels and world capitals: “IT’S THE LAW” will be their rallying crie as their authoritarianism finds no limits as future events unfold.

“The more corrupt the state, the more it legislates”

- Tacitus
What you see below is nothing less than the creeping corruption of our federal governments and the rise to power and wealth of those who control it.  Now, global capitals and the political parties are nothing but the Gotti’s and Gambino’s fighting turf wars known as elections to see who gets the front row fleecing the sheep aka what’s left of the private sector.
Competition, Capitalism, Innovation, Freedom is INCREASINGLY PROHIBITED by LAW!

When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you...you may know that your society is doomed.

- Ayn Rand - Atlas Shrugged
This is the face of Crony Capitalism being IMPLEMENTED, the beltway is controlled by those with the most money.  Just 10 corporations control most of the brands you use every day:
Each one of these employs armies of LOBBYISTS to INFLUENCE the LAW for them and against their customers and competitors, let’s call it politically regulated demand.

"Europe Is Now Run By Big Banks, Big Business, and Big Bureaucrats"
- Nigel Farage UKIP 
And the United States I must add. For a thorough discussion of the illuminati and who REALLY OWNS the world, this video is a must see - James B. Glattfelder: Who Controls The World.  Add to this the 19 too-big-to-fail banks which own and control the Federal Reserve (government granted currency and financial system monopoly) and you know who controls the central government in Washington, Brussels and the developed world’s capitals. 

"Let me issue and control a nation's money and I care not who writes the laws"

- Mayer Amchel Rothschild 
It has now been 100 years since this statement became true in the United States and it is clearly the reality in which we live.  Can anyone give me an example of a MONOPOLY which serves its customers before themselves?  The Federal Reserve was created in 1913, and a monopoly on money was exchanged for UNLIMITED funding government.  
Remember Bastiat’s words from the beginning of this commentary?  Look around you; is this not the situation TODAY?  Is it impossible to lose money you lent to others if you PRINTED IT OUT OF THIN AIR.   In exchange, the banks which own the Federal Reserve were given the go-ahead to run the U.S. to their benefit rather than the benefit of the American people.  The founding fathers knew these rascals well and placed constitutional bars to fiat money which have been completely circumvented. For 135 years, these rascals tried to circumvent the founders’ intentions and the battles happened continuously until Woodrow Wilson finally succeeded and betrayed the American people.

The developed world’s money was converted to IOU’s in 1971 and the road to debt slavery for the nation and its citizens began.  Socialists throughout the developed world didn’t utter a word when the final strings of the dollar to gold were CUT.  The printing press and ability to fund politicians’ grandest plans suddenly became affordable and within their grasp.  Their greed became UNBOUNDED as did that of the banking systems, corporations and elites who controlled them.

”Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.”

- Daniel Webster
The transfer of wealth from those that hold it in paper to those that don’t accelerated.  There is also a secular ECONOMIC decline which began that day.  As politicians substituted political choices of governance for practical ones, the conditions for REAL WEALTH creation have been destroyed.  As this has evolved over 4 decades, nominal growth has taken over real economic growth.  These are the Keynesian illusions which are used to FOOL you.

Now, wages are PAID in paper wealth and the equivalent of JUNK bonds: promises to pay by entities which are financial zombies and walking dead also known as developed world governments, central banks and financial system, SUCKING the wealth (purchasing power) out of the money people are paid in and store their wealth in.

 Author’s Note:  In my opinion the greatest manmade disaster and OPPORTUNITY in history is unfolding in every corner of the world.  Are you diversified or operating with EYES WIDE SHUT?  Are you prepared to turn it into opportunity by properly diversifying your portfolio?  Adding absolute return investments which have the potential to thrive (up and down markets) regardless of what unfolds economically?  Hedging the printing presses impact on your paper money?  This is what I do for investors; help them diversify into investments which are created with the potential thrive in the storm.  For a personal consultation with me CLICK HERE! 
Nothing can be done to avoid the UNFOLDING collapse.  It is written in stone and has happened countless times in history and we are below the event horizon of a proverbial BLACK HOLE, thus our fate is INESCAPABLE.  We have placed our trust in sociopaths and psychopaths and they are driving us to the ultimate societal and financial denouement.  It is a story that can be seen littered throughout history and the FINAL outcome has never deviated.  It is a story of Man versus God and Darwin, and Mother Nature. 

Man may win skirmishes during the ongoing conflict to define reality, but has NEVER WON the WAR.  This is a MAN-MADE disaster of epic proportions and the people who have created the disaster have NO ABILITY to FIX or STOP IT!  They live inside a Keynesian matrix and KNOW NOTHING ELSE, the ability to restart real growth, restore freedoms and incentives to produce are unknown and inconceivable to them.  In fact, they have no desire to do so, as the crisis unfolding offers the opportunities to take freedoms and to control others to “SAVE US”!  This is called the Cloward Piven strategy of collapsing societies and financial systems to seize control and is unfolding as we speak…

“A crisis is a terrible thing to waste”

- Rahm Emanuel, WH chief of staff
In closing: 2014 will be a year when we stumble from one crisis to another until BANG the BIG kahuna hits.  We know they will ALWAYS look to paper printed out of thin air to solve any EXCESSES which may erupt.  Remember, to a Keynesian the solution to ANY PROBLEM is always monopoly money and unreserved credit, if that doesn’t do it CREATE MORE.  The 2014 outlook series will open your eyes to the various cliffs edges we are at the precipice of.   Austrian economics are extremely PREDICTIVE and few Austrians where surprised in 2008.  

“The U.S. government has a technology, called a printing press, which allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

- Ben Bernanke, Chairman of the Federal Reserve
Since 2008, some issues have diminished - The banks in the US (Europe has done NOTHING) have more reserves from FINANCIAL repression.  Corporations have repaired and refinanced TON’s of debt and slimmed down expenses and trillions of dollars of toxic debts have found their way onto central bank balance sheets where they can die a quiet death.  The Central Banks have restored a great amount of control and stability to their ponzi economies, but cannot control what comes out of PANDORAS box.

Empires rise and fall upon the foundations of their CURRENCY, Financial, economic and political systems and this time is NO DIFFERENT.  This is the biggest episode in HUMAN HUBRIS in history, as rarely have we seen so many areas across the GLOBE practicing the same suicidal societal behaviors.  Authoritarianism is reaching a crescendo and, as the tide turns, they will be wiped out.

These behaviors are well-chronicled throughout history and it is history repeating on the grandest scale in history as globalization assures it.  The collapse will be the LARGEST in recorded history, written about and studied for decades or centuries into the future.   I am dedicated to explaining it to you to prepare yourselves to prosper rather than to be a victim of it.

DO NOT BE AFRAID. This could be the greatest opportunity of your life. Let’s chat. CLICK HERE

It is inflate or die for the powers that be.  They know the ECONOMIC and financial system collapse is INEVITABLE, but will play their hands until the ultimate denouement when the LEVERAGE FAILS.  The leaders of the developed world are the man with a gun to his head: Will he duck or take the bullet?  You know the answer.  Of course they will duck… and let you (PUBLIC at LARGE) take the bullet.


Authors note: Tedbits is global Macro analysis PURELY through the AUSTRIAN lens and when this “Pandora’s Box” series concludes I will have extracted you from the MATRIX of UNREALITY and cut through the ILLUSIONS of the Keynesian world most people live in.  YOU will KNOW the truth and SEE the unfolding collapse of the developed world unmasked from political and monetary illusions.  Don’t miss this series as subscriptions are free CLICK HERE.

In coming issues, I will be covering, stocks, bombs er bonds, something for nothing societies, energy and natural resources, commodities, precious metals and currencies, policies of insolvency, G-8 economies,  China, suppressed volatility, politically correct and practically incorrect economic stats, unmargined derivatives, financial repression, QE, demographics, debt, deflation, inflation, etc.  All black swans: which one will land first TRIGGERING the next CRISIS? In my opinion this is the greatest opportunity in history but you need a clear vision of it, don’t miss the next TedBits!  - CLICK HERE.

DISCLAIMER AND TERMS OF USE: While TedBits strives to present accurate and useful information, we make no guarantee of accuracy or completeness. All information and opinion expressed herein is subject to change without notice. Opinions and recommendations contained herein should not be construed as investment advice. Under no circumstances does the information in this column represent a recommendation to buy or sell any securities or commodities. Do not assume that any recommendations, insights, charts, theories or philosophies will ensure profitable investment. The information contained herein is for personal use only. Any redistribution of this information is strictly prohibited.

Gold and silver backed means that various commodity options strategies in gold and/or silver may be used. When buying options, you may lose all of the money paid for the option. When selling options, you may lose more than the funds received for selling the option. Strategies using combinations of positions, such as spreads or straddles, may be as risky as taking a simple long or short position. A high degree of leverage is used to buy or sell a sufficient quantity of options and/or underlying futures contracts equal to the value of the entire portfolio. The high degree of leverage can work against you as well as for you and lead to large losses as well as large gains. Absolute-return is not meant to imply that a positive return can or will be achieved. Absolute-return describes investment strategies which are designed to have the potential to succeed in rising, market-neutral and falling market conditions. Gold and silver backed and absolute return investments do not mean the investor will take actual physical possessions of any precious metal. Nor should any promise or guarantee be implied that such investments will perform better than any other investment in any possible future scenario described herein nor that such investments can or will preserve or protect in such possible future scenarios.

TedBits may include information obtained from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made to ensure its accuracy or completeness. Many of the statements and views made are the opinions of the author. Opinions expressed are subject to change without notice. This report is not a request to engage in any transaction involving the purchase or sale of futures contracts or options on futures. There is a substantial risk of loss associated with trading futures, foreign exchange and options on futures. This letter is not intended as investment advice, and its use in any respect is entirely the responsibility of the user. Past performance in never a guarantee of future results.

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DeusHedge's picture

So what should our leaders do? They should change the system to be based on long term assets (not purely gold) and stop the QE. Really if the QE stopped at the expense of a few lives we could even revert back to this system. Too bad I don't trust the federal reserve though.

wisehiney's picture

Ty Andros, you rock dude. You are true to the rebels of your ancestral home........


On May 10, 1821, Theophilos Kairis, one of the leading intellectuals of the Greek Revolution, declared the War of Independence by raising the Greek flag at the picturesque cliffside church of St George on the island of Andros: at this time, a famous heartfelt speech, or "rhetoras", inspired shipowners and merchants to contribute funds and contribute ships to build a Greek Navy to combat the Ottoman Empire.


satoshi101's picture

”Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.”

- Daniel Webste




Mr webster I would like you to meet BITCOIN, ... man has finally created the ultimate fraud for  cheating and stealing their wealth.

satoshi101's picture

TED is 100% the SYSTEM, think IMF/UN


Everytime anybody says anything read at TED, it gets deleted, ...


Go check out "Banned by TED", and then you can learn something.

Why is ZH promoting TED-SHIT?

Radical Marijuana's picture

I was already familiar with almost everything in that article. However, my conclusions are much more pessimistic than what that article presents, although I agreed with what it said, within its own frame of reference. My view is that the basic mechanism which controls civilization is lies, backed up with violence. Especially legalized lies, backed by legalized violence, has certainly driven social polarization, which is automatically getting worse, with no end in sight ... (As that repeats getting worse and worse, what I write below will repeat that theme, again and again, as reality actually does!) The deeper problems that flow from operating fundamentally fraudulent financial accounting systems are not merely that those enable a small minority to routinely rob the large majority. The deeper problems are that too much success at controlling society with triumphant Huge Lies, backed by Lots of Violence, are that drives civilization as a whole to become able to ignore common sense laws of nature.

Being able to make "money" out of nothing, as debts, (which also can disappear back to nothing, when those debts disappear) is the foundation of our economic system, because our real economic system is based on the long history of successful warfare being based on deceits, becoming the foundation of sovereign states whose powers were effectively captured by private banks, which were enabled to thereby be given the power to legally counterfeit the public money supply, while those governments forced everyone else, including themselves, to operate within those fraudulent accounting systems, that flatly contradict common sense laws of nature, except when perceived as simply being the runaway social triumph of organized crime controlling civilization, in which sense that does not violate the laws of nature, because symbolic fraud, backed by force, is quite possible within the laws of nature. However, the longer term consequences of being able to successfully do that in each short-term increment necessarily drives the society that does that to overall constantly become more psychotically insane.

The deeper problems are not merely that that kind of triumphant runaway financial fraud drives social polarization, but also that kind of triumphant fraud enables every economic decision to be made in the context of evil deliberate ignorance towards basic common sense laws of nature: namely, nothing can be made out out nothing, nor sent to nothing, EXCEPT the established monetary system is based upon that notion, as its fraudulent foundation, as the result of the almost total triumph of the best organized gangsters, the banksters, capturing control over the powers of governments, in order to legalize their endless financial frauds, and have those frauds legally enforced, for generation after generation, so that almost everyone gradually learns to live inside of a sophisticated system of social slavery, operated through a state religion monetary system, which is utterly absurd and irrational, but which nevertheless continues to be able to enforce its frauds, in each short-term increment, and thereby drive everyone to become more and more collectively insane, since everything they decide to do is a decision that is forced to be made and maintained inside of triumphant frauds, which flatly violate the basic common sense laws of nature, and which therefore require them to adapt more and more to operate with greater and greater extreme cognitive dissonance.

Furthermore, that triumphant fraud, which is the foundation of our entire economic system, in each short-term increment enables those who got away with doing that to become more wealthy and powerful, and therefore able to leverage up their triumphant frauds to be able to dominate the funding of schools and the mass media, etc., so that the public is broadly brainwashed and conditioned to think in ways which operate absurdly contrary to basic common sense laws of nature, but nevertheless, they are persuaded to be able to maintain an attitude of evil deliberate ignorance towards the consequences of them doing that. Hence, the runaway social polarization caused by triumphant financial frauds, enforced by governments whose powers were controlled by the persistent and systematic application of the methods of organized crime applied to the political processes, is relatively related to the degree of destruction of the natural world, which results from operating fundamentally fraudulent financial accounting systems, which are based on being able to deliberately ignore the basic common sense laws of nature, as far as their longer term consequences go, because the only way that the laws of nature are actually connected to the laws of man are those ways which enable violence to back up dishonesty, so that that kind of dishonesty becomes socially dominate.

The degree to which we act like we understand everything BACKWARDS to the most basic laws of nature, and indeed, even understand basic energy laws systematically BACKWARDS, due to the biggest bullies' bullshit social stories being able to control civilization, can not be overstated. Indeed, I do not believe that  anyone can comprehend the full magnitude of the final consequences of the collective craziness of our civilization.

The theoretical solutions to these problems would require profound intellectual and scientific revolutions. However, as with Pandora's Box, the ONLY thing which actually remains inside that box is an irrational hope in some series of political miracles, because everyone who is relatively successful within the established systems has necessarily achieved doing that through some significant degree of evil deliberate ignorance towards the actual ways that money is measurement backed by murder, and the debt controls really depended upon the death controls. The established systems are run by the best professional liars and immaculate hypocrites, while they have been so successful, for so long, at doing that, that they now tend to mostly face only various kinds controlled opposition, in the form of various groups of reactionary revolutionaries, who tend to also be operating within the same overall frame of reference, and thus, only provide some superficially different kinds of alternative big bullies' bullshit social stories, while otherwise that controlled opposition is also dominated by its own kinds of professional liars and immaculate hypocrites, who have mastered their own ways of maintaining evil deliberate ignorance.

We should be understanding human civilizations as energy systems. However, when one approaches doing that, one then has to face those social facts that the history of warfare has selected for society to be dominated by the most successful deceits, upon which basis was built financial systems based upon the most successful frauds. Therefore, the "successes" of the social pyramid systems have become such that our civilization actually operates in the real world on the basis of the maximum possible deceits and frauds. Obviously, that situation drives social polarization to get worse, faster, as it is at the present time. However, although deeply connected to everything else, that social polarization is relatively trivial compared to the greater overall consequences, which are the destruction of the natural world, driving natural capital to be destroyed as fast as possible, on one-way express trips to hell, because every economic decision is made inside of the context of fundamentally fraudulent financial accounting systems, which are based on being able to maintain evil deliberate ignorance towards the basic laws of nature.

WE ARE STUCK IN THAT VICIOUS SPIRAL, WHICH I REPEAT: our real human ecology was made and maintained by the murder systems developed through the history of warfare, based on successful deceits, and that then morphed into becoming a political economy whose money systems were built on that historical foundation, which enabled successful frauds to be enforced, and therefore, become able to almost totally dominate and control what civilization actually did. Therefore, our entire political economy, within our human ecology, have become operated through the maximum possible frauds and deceits, and, in that context, the fraudulent political economy driving runaway social polarization is surrounded by the overall ecological situation becoming based on the maximum possible deceits. THOSE VICIOUS SPIRALS ARE OBVIOUSLY SPINNING FASTER, WITHIN THEIR OWN REPEATING FRACTAL PATTERNS.

It now seems practically impossible to develop better human and industrial ecologies, within the overall realities of natural ecologies, when every economic decision is being made through the operations of fundamentally fraudulent financial accounting systems, whose enforced frauds are based upon society as a whole operating with evil deliberate ignorance towards the basic common sense laws of nature. 2014 is merely one more year, inside the context of the runaway exponential growth of debt slavery, driving its numbers towards debt insanities. The outlook for this year is the same as it always was, regarding exponential growth of triumphant financial frauds, driving themselves towards the paradox of final failure from too much success. That there has been too much success at driving social polarization through those means is serious. However, that problem is relatively nothing compared to the bigger problems of being able to drive basic human, industrial, and natural ecologies towards mad self-destruction. In that context, the only irrational hope left in Pandora's Box is for some series of political miracles, whereby enough people go through enough paradigm shifting in the ways that they think, in order that they will understand human civilizations as energy systems, and therefore, be able to more effectively comprehend and respond to the degree to which civilization has almost totally been taken over by the short-term successes of deceits and frauds, which collectively have driven that civilization to become more and more psychotically insane, when one looks at the longer term consequences of having done that.

I repeat as my conclusion what I started saying, that, while I agree with what this article outlined as being necessarily correct, my personal views are far more pessimistic, because I believe that there are deeper problems which are way, way worse, and which would require enough people understanding the world in ways which are profoundly BACKWARDS to the ways that they tend to now understand the world, in order that it might be possible to start more scientifically resolving those problems in the future. However, from a practical point of view, that appears to be politically impossible, since everyone who is relatively successful now became so because they were able to operate within deceits and frauds that they took for granted, and that includes not only those operating the established systems, but also almost all of those who are the controlled opposition against those established systems. All of the traditional problems associated with scientific revolutions in the past are present to the greatest degree possible with respect to achieving any significant scientific revolutions in politics. Furthermore, the stakes have never been higher!

RMolineaux's picture

The author is a little weak on his vocabulary and grammar.   The word "apocryphal" means unauthorized or fictitious.  I suppose the author meant to say "apocalyptical" meaning the end of the world or some absolute disaster.  There are also some inappropriate capitalizations and faulty sentence structure.  But getting to the substance of this tome, my comments would be as follows:  Ayn Rand, in my opinion is not an authority on anything.  Her books were promoted to sanction the kind of unlimited greed from which we a now suffering.  The Austrian view of economics is defective, as it does not recognize the tendency of unrestrained capitalism to end in monopoly or oligarchy, such as we are now witnessing.  Capitalism can only work if regulated by the commonweal and inbued with a spirit of fairness and justice.


JamesBond's picture

"..... the REPEAL of the 60 vote majority rule by Senate democrats."


The Black Swan has taken flight.




akak's picture


The Austrian view of economics is defective, as it does not recognize the tendency of unrestrained capitalism to end in monopoly or oligarchy, such as we are now witnessing. 

I think it is your view of economics and history that is defective, as what we are witnessing today is NOT the result of 'unrestrained' free enterprise, but of unrestrained government and its unrestrained centralizing of power and inherent cronyism.

You goofy apologists for out-of-control government, why do you always put the cart before the horse and blame 'capitalism' for the faults and crimes of STATISM?

RMolineaux's picture

What we are witnessing today is unrestrained capitalism taking control of governmnt and using it for its own purposes.  One of its current successes is the de-regulation program which eviscerates the government's role in restraining the abuses of monopolies.  Another success of unrestrained capitalism is the promotion of opinion favorable to their programs.   The Austrian school of economics is one such program.

akak's picture

... "Just look on the bright side of life ..."

Racer's picture

Man had a great place to live, but because man stole fire, Zeus gave man Pandora and hence man brought it on  himself the problems of the world for his wrongdoing.

Ref: Hesiod c. 725 B.C.E., Works and Days,

This story has been twisted around to become Adam and Eve in the bible, they get given a great place but Eve does the bad thing and given something by the devil and so the blame is laid on her

So propaganda, misinformation and twisted 'truth' goes back a very long way in the history of human beings!


disabledvet's picture

Alchemy has come a LONG way in the past 100 years. http://www.youtube.com/watch?v=7YtvsxB9xQY

ebear's picture

"This article is made for some serious studying."

I'll wait for the movie 

dexter_morgan's picture

but...but...Obameo is going to raise the minimum wage to the magical $10.10 level, that'lll fix things.

rsnoble's picture

Long astroglide.

ebworthen's picture

Yup, all true.

Too bad the sheeple don't read or understand any of this.

I'm going to have to go to the store today and withstand the 15' high soda and snack displays for the Super Bowl.  Wasted cardboard and tape to push me to indulge and CONSUME (yes, They Live!).

lynnybee's picture

So happy to see this make ZEROHEDGE!!   I like this authors style...tell it like it is and bold and brash.  In other words, TRUTH.  now, what the hell are we all gonna do about it!   I am doing my part to get the word out and change my behavior and acquiring sound money.   We must educate others and help those who do understand to get strong.

This article is made for some serious studying.  

TrustWho's picture

We must educate others and help those who do understand to get strong.

Too late bee, In 1913, federal reserve act 16th and 17th amendments to USA Constitution, USA needed ZEROHEDGE and people with the TRUTH character of our founding fathers to stop the insanity we see today.