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Guest Post: The Dark Age Of Money

Tyler Durden's picture


Authored by James C. Kennedy, originally posted at CounterPunch,

[It's Thursday; The World Series is on - so is Football; Grab a drink, we know it's long - and read this - at least skim the bolded segments and the last section - will open your mind a little]

If you often wonder why ‘free market capitalism’ feels like it is failing despite universal assurances from economists and political pundits that it is working as intended, your intuition is correct.  Free market capitalism has become a thing of the past.  In truth free market capitalism has been replaced by something that is truly anti-free market and anti-capitalistic.  The diversion operates in plain sight.

Beginning sometime around 1970 the U.S. and most of the ‘free world’ have diverged from traditional “free market capitalism” to something different.  Today the U.S. and much of the world’s economies are operating under what I call Monetary Fascism: a system where financial interests control the State for the advancement of the financial class.  This is markedly different from traditional Fascism: a system where State and industry work together for the advancement of the State.

Monetary Fascism was created and propagated through the Chicago School of Economics.  Milton Friedman’s collective works constitute the foundation of Monetary Fascism.  Knowing that the term ’Fascism’ was universally unpopular; Friedman and the Chicago School of Economics masquerade these works as ‘Capitalism’ and ’Free Market’ economics.

The foundation of Friedman’s corrupting principle is that the investor (money to be more precise) has no duty, obligation or covenant to anyone or anything.  Friedman’s ‘Market’ is not subject to ‘any’ human standard of morality, political limitations or national interests.  Money is free to act without bounds or conventions.  Nothing is prohibited as long as the market can provide a “clearing price”.

The fundamental difference between Adam Smith’s free market capitalism and Friedman’s ‘free market capitalism’ is that Friedman’s is a hyper extractive model, the kind that creates and maintains Third-World-Countries and Banana-Republics, without geo-political borders.

If you say that this is nothing new, you miss the point.  Friedman does not differentiate between some third world country and his own.  The ultimate difference is that Friedman has created a model that sanctions and promotes the exploitation of his own country, in fact every country, for the benefit of the investor, money the uber-wealthy.  He dressed up this noxious ideology as ‘free market capitalism’ and then convinced most of the world to embrace it as their economic salvation.

As improbable as it sounds, this ideology has the near-universal support of most economists, the media, universities, the Federal Reserve, the U.S. Treasury, nearly every member of The U.S. Congress and most everyone you know.  Today Friedman’s ideology is accepted, to some degree, by nearly every country in the world.  But ultimately this exploitive model is not sustainable at any level, or for anyone or any nation.

The ultimate difference between Friedman’s ideology and Smith is simply this: Smith was in fact a Mercantilist.  True, he opposed the custom of hording gold and other Mercantilist practices, but ultimately he was a Mercantilist. Smith promoted “free trade” with the goal of improving the English merchant’s advantage, and thus the State’s.  Nothing expresses this more clearly that the title of his book An Inquiry into the Nature and Causes of the Wealth of Nations.  Mercantilism is based on the relative wealth of one Nation State over the other, not the plunder of the State and it’s peoples for the benefit of the individual.

Smith believed in the power of the State and recognized that it was only by the power of the State that free enterprise could succeed and thrive. In a world without the State, he sided with Lock, “life was brutish and short”.  Consequently one had obligations to the State and the people who make up the state: the working man.

According to Smith every butcher, baker, craftsman and merchant would seek out his own self-interest and that economic advantage would ultimately benefit his fellow Englishman and the Crown.  Smith’s arguments against some precepts of Mercantilism were intended to give the English tradesman a greater advantage, nothing more.  The intended effect was to enrich one’s State above all others as an alternative to the primitive act of war, the traditional means to National enrichment.  Smith viewed things as a zero sum game.  And as England was the undisputed master of global exploitation at this time, exploitation of other Nations was fair game.

However, according to Economist David Ricardo trade between nations of relative economic parity result in what he termed “Comparative Advantage”.  Comparative Advantage is based on specialization: Germany builds machine equipment, Italy does leather goods, France produces cheese, wine and literature.  When these nations trade with each other all parties enjoyed a net gain as a result of specialization and non-duplication of resources.

Of course this does not work when first world nations off-shore factories and jobs into subsistence-based economies (the term “comparative” is no longer germane).  Off-shoring into non-comparative economies is purely extractive because all of the gains are ‘privatized and are no longer correlated to national interests.  Non-Comparative off-shoring undermines both the host and source/flagship nation.

The financial entity is able to extract environmental, capital, tax and infrastructure concessions from the host nation.  If the host nation ever seeks to renegotiate its position with the financial entity the entity can enlist the powers of its flagship nation (i.e. State Department).  This type of intervention can be very costly to the flagship nation and end very tragically for the host nation.  Under Monetary Fascism the financial entity maintains out-sized rents from the host nation by utilizing the state as its enforcement agent, while maximizing tax avoidance via off-shore corporations (and other gimmicks).

Free market capitalism, as conceived by Smith, was Nationalistic in nature and as the Nation State became wealthier, so did its people and industry.  This relationship required shared obligations and shared rewards between the State and its people.

Traditional Fascism, as conceived by Mussolini or Hitler, had an aggressive Nationalistic disposition where the State promoted Industry above all others in order to strengthen the State relative to its perceived rivals.  Hitler and Mussolini believed that as the State lifted industry, industry lifted the people – dignity and pride in one’s nation were foundational principles.

Monetary Fascism, as conceived by Friedman, uses the powers of the state to put the interest of money and the financial class above and beyond all other forms of industry (and other stake holders) and the state itself.

In democracies and first world nations this is achieved through lobbying, campaign donations, financial incentives, revolving door regulators and through other means.  As such, the state is coopted into altering regulations / legislation, diverting investigations / prosecutions or creating tax loopholes for the benefit of the financial class/ industry.  Ultimately these actions undermine states sovereignty.

For the rest of the world state interests and sovereignty are undermined through the IMF, The World Bank and other global monetary agencies.

Monetary Fascism has a strong preference for political rather than capital investments.  These  investments are designed to sustain and support the preferences and activities of the financial class as it manipulates and create ever larger out-sized rent opportunities or constructs risk-diverting transactions that aggregate a ‘risk-arbitrage premium’ to one side of a transaction and transfers all future losses to the other.

On a global basis Friedman’s ideas heavily influence international treaties on taxation and capital flows with the single minded goal of freeing capital from any obligation to the host or origin country.  These agreements have essentially created a virtual nation, or non-nation, of money that is ultimately beyond the reach of the conventional Nation State.  Friedman’s ‘invisible hand’ is free to extract the wealth of any corporation or Nation without any reciprocal obligations.

The Serene Insurrection of Money

All economic theories are devised to fill a need; to justify public and / or private actions. With the rapidly growing profits to the financial class during the divestment era, beginning in the early 1970s and continuing today, they needed some ideological justification for what they were doing (selling out America’s future and destroying corporations and jobs for quick profits) so they found and embraced Monetary Fascism. In fact, they found each other: Friedman was just ‘fulfilling a need in the market place’. Friedman simply created a new ideology that justified what the financial class was doing.

Rationalizing the divestment of an entire economy is morally deplorable, but it also offered “out-sized” profit opportunities on a massive scale.  Seeking relevance in this sweeping tide of economic-cannibalism other academics rushed into the water.  None bothered to consider the long term consequences that would result from the wholesale dismemberment of our industrial economy.  Instead academics suddenly ‘discovered’ an implausible utopian future that would be sustained by the creative powers of finance and trading our industrial heritage for a service economy.

Shocking? – no, the academic promotion of concepts, theories, historical narratives and the state of ‘fact’ and ‘science’ are increasingly available to the highest bidder.  Custom realities are also made-to-order ad nausea from within our Nation’s many tax exempt ‘think tanks’ that attempt to define public debate and guide public policy for the benefit of their patrons.

Milton Friedman and the Chicago School of economics claimed to have refined and developed modern,  scientific tools of ‘free market capitalism’, capable of unlocking ever greater rewards from Adam Smith’s simple, primitive concept of free markets.  Monetary Fascism was rapidly adopted because western culture recognizes the tremendous historical contributions of traditional free market capitalism and wanted to participate in the promise of these enhanced rewards.

In truth, it was nothing more than a cloak of deception – providing cover for the unscrupulous behavior of investment bankers, corporate raiders, speculators, off-shore corporation, debt mongers and bubble pushers (typically one and the same).  The enhanced rewards came from the pilfering of capital investments and technology from generations past, the liquidation of employees and off-shoring of production, the pilfering of pension accounts and the termination or spin-out of R&D departments and option packages to executives and directors that focused on short term stock price targets.

Bell Labs, once part of AT&T, laid the foundation for all modern telecommunication and electronics technology today was morphed into Lucent Technology.  Lucent quickly looted the legacy portfolio of Bell Laboratories to enrich themselves and shareholders, leaving a worthless shell that was eventually merged with Alcatel.

Wall Street Investment Bankers, leveraged buyout firms and hedge funds became the Paladin Knights of the ’free market’ whose allegiance was to the ‘noble shareholder’, markets and liquidity.  In truth the shareholder was/is nothing more than a nameless, faceless transient in an endless pursuit of ever larger ‘outsized returns’.  Traditional capital formation was replaced with financial schemes designed to acquire existing asset for liquidation, management and directors traded long term management discipline for short term performance and accounting gimmicks tied to stock and option pricing.  With most of the IPO capital used to pay for the exit of early investors, the stock market has become nothing more than a series of game theory type exit strategies.   The equity markets are a failed forum for the creation of productive or capital intensive projects.

However, the larger system failure at the nation and global level stems from the perversion of the public and private debt market.  This was made possible through massive decade’s long deregulation and the post 2008 financial crisis.

The entire 2008 financial crisis lies at the feet of The U.S. Congress.  When The U.S. Congress repealed the Glass Steagall Act, passed in response to the Great Depression, they eliminated any meaningful financial oversight within the Banking and Investment Banking industry.

Why did the U.S. Congress change the law that protects our economy from a second 1930s type depression?  Simple, it was campaign contributions (shit-loads of cash, considered bribes or worse in the private sector), filling the top post in the Fed, Treasury and the Administration with top level executives from Goldman and the like and the prospects of private sector jobs in the financial industry for pliable regulators, retired Members of The U.S. Congress and former Presidents.

It was from the decades-long cash infused orgy of conflicted interest that Congress finally entrusted the financial industry with “self-regulation.” If you believe the rhetorical record, deregulation was intended to unleash the ‘wealth creating powers’ of these new financial instruments created through the pure genius of the investment bankers.

Alan Greenspan and others saw no limits to the potential economic contributions of the financial markets – if they could only be freed of unnecessary and burdensome regulations.

This wanton deregulation allowed the financial industry to create trillions of dollars in unregulated CMOs and CDSs (CMO: Collateralized Mortgage Obligations – packages of high risk mortgages that were rated AAA & CDS: Credit Default Swaps – bogus insurance on junk paper like CMOs) and other complex derivatives, hypothecated derivatives, synthetic derivatives, even hypothecated synthetic derivatives and the ‘black pools’ of unregulated capital that created and priced these complex financial instruments.

This resulted in the unprecedented and unsustainable accumulation of debt and related derivative instruments, literally in the hundreds of trillions of dollars, dwarfing global GDP by a number of factors, controlled by unregulated and uninhibited bankers.  Ultimately it has cost most nations their sovereignty.

Monetary Sovereignty and the Death of Nations

Friedman’s model of wealth extraction has been in conflict with the traditional Nation State and the concept of State sovereignty from inception.

Great, you say!  The state is evil and must be replaced with something new.  Beware of this thinking.  The evils of the state are nothing when compared to the money-counter.  The State must answer to the public, or at least the mob.  The money-counter only answers to his insatiable desire for more and more money.

Friedman’s ideology undermines State sovereignty by initially delinking the aggregation of wealth from the interest of the state.  As wealth accumulates it is then used to alter political outcomes, tax avoidance and financial regulations for the benefit of the wealthy.  Throughout history the State has always jealously protected its sovereignty.  So how did this ideology survive and eventually overtake the State.

Easy, they co-opt everyone.  First the academics and think tanks then one political party after the other.  The media was consumed and consolidated by large corporate conglomerates who quickly enforced their own interest’s at the editor and programmer’s desk. Then they locked in the entire public through 401(k)s and savings plans.  Even the unemployed and the unemployable qualified for credit cards, new cars and even homes. At the national and global level they expanded public and private debt everywhere.  They made everyone feel richer for a short time.  At the same time the financial industry off-shored, liquidated, crowded out and displaced the traditional industry of our economy.

With the introduction of Monetary Fascism financial activities as a percentage of GDP grew from less than 5% in 1969 to more than 22% of GDP by 2008.  Over the same period U.S. manufacturing as a percentage of GDP declined from more than  26% to just 12%. Using historical measures 2008 GDP for the manufacturing sector would be considerably less than 10%. Only the federal government was consuming a larger portion of GDP at 35%.

Taking the number one spot in the U.S. economy, the finance industry has become the most influential player in government.  But the real power behind the finance industry is much deeper than just the political access that campaign donations buy, the financial industry has wide and deep influence throughout government policy via the Federal Reserve, Treasury, Fannie May, Freddie Mac, the FDIC, key advisory rolls in the Administration, Members of Congress, political appointments within the SEC, CFTC, and membership on The Council on Foreign Relations and participation in global organizations like the G8, G20, Basil Accords, IMF and World Bank.

Through their unparalleled influence over the Administration, Congressional Finance Committees and the Federal Reserve they gained full control over the regulators.  In fact, it was the Allen Greenspan, Tim Geithner (Federal Reserve) Robert Rubin, and Larry Summers (the Administration) and others who silence ‘Rouge Regulators’ who attempted to alert The U.S. Congress to the potential risks of deregulation, dark pools and derivatives.  Greenspan, Summers, Rubin and others essentially staged a soviet era show trial against Brooksley Born and others, designed to send the message to any would-be-regulators that the rules no longer apply to the financial class.   It worked.

Once they controlled the regulators and the key members of the Congressional Finance Committee they were free to alter accounting standards, create complex financial vehicles, and leverage risk in derivatives while real losses accumulated to staggering and globally disruptive levels. They hypothecated CMOs and even synthetic CMOs to unsupportable levels, papering over any potentially observable warning signs with zero-collateral CDSs.

The real risks to global finance were hidden in the derivative instruments related to the massive debt portfolios controlled by the “Too Big To Fail” banks with unprecedented political power.  These banks were not subject to any measurable regulatory restriction.  Point of fact, Goldman Sachs and others were able to morph into traditional Prime-Banks overnight, with the blessing of their regulators, instantaneously gaining unlimited access to the Discount Window.  The act is so egregious that the public is incapable of cognition, while the media, academics and think tanks collectively remain silent.

Unlimited access to the Discount Window was not enough.  Investment Banks and the overall financial industry enjoy unlimited government largess in the form of Quantitative Easing, immunity from prosecution, as it relates to fraudulent financial instruments such as CMOs, CDSs & assorted derivatives, front running client accounts, pilfering of client accounts, wholesale asset sweeps from failed banks to failing banks and even the wholesale world-wide manipulation of LIBOR.

The final act of treachery was delivered by the U.S. Supreme Court who imbued ‘money’ with a voice and electoral powers.  This decision treated each and every single dollar in circulation as a prospective voter.  In the hands of an ordinary citizen the dollar’s ultimate voice is limited to $2,500 per person per candidate.  But in the hands of a corporate controlled Super-PAC the dollar’s voice is virtually unlimited.

The Financial Sector invested more than $5 billion in campaign contributions and lobbyists from 1998 to 2008.  As if $5 billion was not sufficient, the new Supreme Court Ruling and the creation of Super PACs will create a financial Tsunami Effect on politics.

Super PACs may raise and spend unlimited sums of money from individuals, corporations, associations, and other interest groups to “overtly” advocate for political candidates.  A recent example of how disruptive this is demonstrated by Sheldon Adelson and his wife’s $10 million contribution to Newt Gingrich.  The Aelson’s ‘legal’ Super PAC contributions were able to keep ‘their candidate’ in the Republican Primary single handedly.  Gingrich had no meaningful support beyond this single patron.  Democracy?  Representative government?

This decision effectively abolished our representative form of government.  Again, this act of treachery did not spark any meaningful discussions from academics, constitutional scholars, think tanks, civil rights groups or the media. Why?  They have all been co-opted.

Today the power of the State blindly serves the interest of these banks at the expense of all others.  I am not claiming that this needs to be a preconceived conspiracy. To the contrary, the outcome was inevitable.  Without any restraints most growth oriented systems, such as a virus, tend towards uninhibited growth.  With no means of restraint, equilibrium becomes impossible.  The single-minded focus on the growth of money compromises all other systems in the economy.

Any U.S. political leader who puts forward a Nationalist agenda is pillared as an opponent of ‘free trade’ and a danger to ‘free markets’.  A perfect example is the U.S. Congressional and Administrative reaction to traditional Industrial Policy initiatives.  The universal reaction is to characterize any U.S. Industrial Policy initiatives as “anti-free trade” and un-American.  This is wrong on both counts: Adam Smith’s entire argument about free trade was intended to enhance England’s Industrial Policy.  It is also a fact that the U.S.’s industrial greatness was rooted in 200 years of government directed, supported or sponsored Industrial Policy.

The press and pundits also contribute to this reversal of reality when they recently questioned Obama’s commitment to capitalism and free trade because he criticized Mitt Romney’s “Off-Shoring” of U.S. jobs as the head of Bain Capital.  According to the press and pundits off-shoring is a foundational principle of ‘free markets’, but off-shoring has no basis whatsoever in Smith’s free markets.  Off-shoring as we now employ it technically does not fit with Riccardo either, as Riccardo’s arguments of Comparative Advantage pre-suppose reciprocation of trade between relatively equal partners.

Historically governments would use tariffs or other measures to balance out large deviations between un-equal or undesirable trading partners.  Today corporations and the financial industry pocket these out-sized ‘comparative disparities’.  Eventually this results in wide spread unemployment and dislocation inside the flagship/host-country and all of these accumulated costs simply become a burden of the state.

This is nothing more than arbitraging disparity and transferring the resulting collateral costs to the state.  As the unemployment and dislocation costs to the state threaten the asymmetric relationship between the state and the financial class, the financial class promotes austerity through its various think tanks, financially sponsored academics and loyalist inside Congress and the Administration.

Outside the U.S. it is the IMF, the World Bank and various international trade and financial trade and monetary agencies including the EU that promote austerity.

Today the financial and banking class enforces this ideology through the media and government with the same ruthlessness of the Church during the Dark Ages: to question is to be a heretic.  It is a much more sinister form of excommunication for any public figure who does not accept or property articulate his allegiance to Friedman’s poisoned ideology.

Consequently, it is a sad fact that both Democrats and Republican Members of Congress wear Monetary Fascism on their sleeves – out of conviction or fear.   Both parties have become slaves to this deadly ideology.

Global Contagion

Challenging Monetary Fascism is much more dangerous for political leaders representing countries outside the G-20.  Populist leaders who put forward Nationalist policies are automatically in violation of one or more international ‘free trade’ agreements.  Non-conformity with these agreements ultimately results in trade sanctions, IMF or World Bank imposed austerity, or worse…

Friedman’s ideology is global and his rules of ‘free trade’ are deeply integrated into the laws of international trade.  All of our Nation’s international treaties on trade and banking are a series of interlocking agreements that force all nations to subvert their sovereignty and conform to Monetary Fascism.  It is a global pandemic built on a world-wide transmission system with universal powers of enforcement.  Sovereign Nations comply or they lose their credit rating.  Considering the world wide mass escalation of debt to GDP for most western nations, a small increase in the cost of borrowing would easily result in default and bankruptcy.

Today, Nation States face nothing less than financial Armageddon – the Sampson Option, if they do not comply with the demands of the global banking industry.  And it is with this weapon that the Financial Class has come to dominate the State.

Forget Al Qaeda, the only legitimate threat to U.S. and international security is the financial class.  They have created Weapons of Mass Financial Destruction (Financial WMDs) and they stand ready to take down the world economy.  They are more dangerous than any ‘terrorist group’, or even all of the ‘terrorist groups combined.

Exaggeration – consider what Friedman’s ‘free market’ banking system has done to Iceland, Ireland, Spain, Greece, Estonia, etc.  How many western nations has Islam overthrown?  Not one, and by comparison that should scare you.

Money has become the state and the traditional state is forced to serve money’s interests.  Everywhere the Financial Class is openly lording over sovereign nations.  Ireland, Greece and Spain are subject to ultimatums and remember Hank Paulson’s $700 billion extortion from the U.S. Congress.  The $700 billion was just the wedge.  Thanks to unlimited access to the Discount Window, Quantitative Easing and other taxpayer funded debt-swap bailouts the total transfers to the financial industry exceeded $16 trillion as of July 2010 according to a Federal Reserve Audit.  All of this was dumped on the taxpayer and it is still growing.

Why must the people of Ireland or Iceland accept the losses of the private banking sector as a public obligation?  Why must Greece accept austerity because its politician’s entered into a series of deals structured by Goldman Sachs specifically designed to deceive its EU partners?  If Goldman Sachs authored documents with the intent of fraud then Goldman Sachs is required to bear the losses and prosecution.  The taxpayer had no hand in this.

It is breathtaking.  Within the last 40 years ‘money’ has gained total control of each and every one of us.  Generations to come will enter this world burdened with the debts of their fathers.  It is inescapable and ubiquitous.  More than just a spider’s web, or a money-sucking vampire squid, it is a global pandemic that infects our very DNA.  It is the Original Sin of money – subject to compound interest, converted into a derivative, hypothecated and rolled into a CMO and then leveraged through CDSs.

The uber-wealthy will continue to aggregate wealth.  The banking system will continue to make ‘risk free bets,’ booking gains and shifting the losses to the public.  As these losses accumulate on the public balance sheet the state will be forced to seek austerity measures from the public. As austerity and debt levels increase the global economy will continue ‘circling of the bowl’ with increasing speed until we suddenly plunge into the vortex.

All Bow to the Welfare Queen

Total governmental transfers and assumed liabilities related to U.S. financial institutions since 2008 exceed the entire history of all social welfare programs for all free world economies collectively since Bismarck (do the numbers, its true).

So, how is it that history’s biggest welfare queen can demand that the rest of human society be forced to take responsibility for its prolific reproduction of trillions of dollars in derivatives and other financial abominations in the name of ‘free markets’?  Easy, your government has surrendered its National Sovereignty.  Representative government has ended. The public’s misconception and blind acceptance of Friedman’s ideology as a legitimate form of capitalism is precisely what makes Monetary Fascism immune from any true political recourse.

It is the classic case of failing to properly identify the true nature and source of a contagious epidemic.  This is the hidden strength of Monetary Fascism.  Failure to identify the source of the disease or its mode of transmission assures continued contagion, misdiagnosis and mistreatment.

The public’s support for Friedman’s poisoned system is based on the past success of true capitalism and free markets as surmised by Smith.  Most U.S. Citizens desperately want to regain our Nation’s former prestige.  Because they cannot differentiate Smith’s system from Friedman’s they see government restrictions on business, taxes and capital flows as the obstacle to achieving our previous economic greatness.  The public can be counted on to demand even greater deregulation, undermining their relevance in the system and our Nation’s economy and sovereignty.

Whole industries have long ago disappeared.  Friedman’s Monetary Fascism has burnt through most of what remains of the middle class.  Seeking fuel, the fire has spread to the upper middle class and the lower middle class. Small businesses and Unions are consumed in the flame.  Even the ranks of the finance industry were offered up to the god of money.  Tens of thousands of recently dispossessed upper middle class and the lower ranks of the wealthy find themselves without meaningful work and dark prospects.   All of these people have passed through the bowels of Monetary Fascism, yet they stand up and defend ‘free markets’ so that they can be consumed once again as this raging fire seeks new fuel.

The only rational defense is for people everywhere to denounce Friedman’s ideology in all public policy debates and academia, and to articulate the true principles of Adam Smith.

Ending the tyranny of Monetary Fascism begins with the wide spread recognition that it is the anti-theses of capitalism, free markets, individual self-determination and national sovereignty.  However, it is truly unstoppable as long as the world continues to view it as the embodiment of Adam Smith’s “free market capitalism”.

Until then, the plunder will continue, lives will be discarded the angry mob will continues to grow.  As we approach critical mass the fear is setting in.  The remaining upper middle class and middle class fear losing what they have, while the recently disenfranchised desperately cling to their faith in Friedman’s ‘free markets’ in the hopes of redemption.  The faithful double down on their own demise, while the ranks of the dispossessed swell.  Every one of us has become a bit player in our own tragedy.

We are at the end of human evolution, we have become chattel.  We are conditioned to the service of those with money, who only seek to enlarge their store of money, to beget money, for money’s sake and nothing more.  The future is grim.

The predictable long term outcome is a steep decline into a very dark Monetary Feudalism.

When asked in an interview what humanities’ future looked like, Eric Blair, better known as George Orwell, said “Imagine a boot smashing a human face forever.”

Welcome to the Dark Age of Money.


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Thu, 10/25/2012 - 23:17 | 2920583 vinayjha
vinayjha's picture

US debt is now 16.205 trillion and limit is 16.395 trillion. Thanks to Obama and Fed. Everything you need to know for Oct 26th trading.


Thu, 10/25/2012 - 23:32 | 2920599 Silver Bug
Silver Bug's picture

The only true real money are gold and silver. Like countless times in history we will be back on that system before long.

Fri, 10/26/2012 - 00:00 | 2920636 Bindar Dundat
Bindar Dundat's picture

OK count me officially scared.  Maybe this gold and guns thing has some merit!

Fri, 10/26/2012 - 10:19 | 2921354 Colonial Intent
Colonial Intent's picture

The skills to use gold and guns correctly should also be developed.

Fri, 10/26/2012 - 05:49 | 2920889 Freegolder
Freegolder's picture

Uh oh.

How many central banks are holding/buying silver?

You need to read this first, then google 'costata's silver forum'.

Have an open mind. I used to think gold was in a bubble, now I see what is coming.

Hate to see guys like you, having seen the light, just take the wrong route (i.e. silver).


Good luck.



Fri, 10/26/2012 - 09:00 | 2921093 exi1ed0ne
exi1ed0ne's picture

While it is important to always look to the other side of your thesis, there are quite a bit details missing from the linked article.  Silver is mostly a byproduct of mining other metals.  As demand for those metals fall, fresh silver supply falls also.  However the biggest tell for me as an investor is correlation.  How are the other panic goods (beans, bullets, food oils) doing?  What is happening in relatively inelastic (ex oil - too many games there!) goods?  How about the super elastic goods(Prosumer goods, not luxury).  Bottom line they are all going more up than down, and even hockey stick in some cases, because absent all the other factors fiat currency of all stripes is sinking.  Correlation does not always mean causation, but sometimes a cat is a cat.  Couple that with political instability the world over, poor weather, developed nations in deep debt, and general cluelessness of the public about precious metals, and you have to work harder than an ex-investment demand vs. supply chart for the core of your thesis.


Fri, 10/26/2012 - 10:17 | 2921343 Colonial Intent
Colonial Intent's picture

Or you could just hedge your gold with silver:)

Thu, 10/25/2012 - 23:52 | 2920625 mayhem_korner
mayhem_korner's picture



"Limit"...?  You don't really believe that, do you?

Fri, 10/26/2012 - 01:56 | 2920759 Essential Nexus
Essential Nexus's picture

Limit Target

Fri, 10/26/2012 - 04:53 | 2920867 Never One Roach
Never One Roach's picture

"There is a feeling today among too many Americans that we might not make it," Lawrence Lessig writes in the introduction to his new book Republic, Lost. "Not that the end is near or that doom is around the corner, but that a distinctly American feeling of inevitability, of greatness – culturally, economically, politically -- is gone." He goes on to note that Americans' trust in government is at an all-time low, related to the (largely accurate) belief that moneyed special interests wield outsize influence over our political system. In his book, Lessig, a Harvard Law School professor and big noise in the field of law and technology, details how money came to corrupt our government, how our broken system hurts both the Left and the Right, and what it will take to return American democracy to its rightful owners – the people.



Read more:

Fri, 10/26/2012 - 10:16 | 2921340 Colonial Intent
Colonial Intent's picture

And iraq and afghanistan were just an off books expenses claim right?


Fri, 10/26/2012 - 10:32 | 2921401 poink
poink's picture

In a world without the State, he sided with Lock, “life was brutish and short”

That was Hobbes, not Locke. Maybe my overpriced university actually did teach me something.

Fri, 10/26/2012 - 11:48 | 2921732 BigJim
BigJim's picture


Nice catch. Of course, that's not the only thing the author got wrong. No mention of the Fed (or even central banking generally) or Triffin's dilemma; no, it's all Friedman's fault for advocating free trade. And the usual holding up of 'Adam Smith' as some kind of high priest of free market thinking, which shows the usual ignorance of the history of economic thought.

Of course... Friedman's support for centralised monetary control was not exactly pro- 'free market'.

The deleterious affect of minimum wage laws and endless regulation, and actual monetary fascism (the State arrogating to itself the right to control the money supply) get no mention, which is hardly surprising from the avowedly Statist author.

So, Mr. Kennedy, +1 one for seeing the disease, -1 for allowing your Statist brainwashing to blind you to its aetiologies. 

Thu, 10/25/2012 - 23:23 | 2920588 caconhma
caconhma's picture

"You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold."

– George Bernard Shaw
Fri, 10/26/2012 - 09:47 | 2921234 hapless
hapless's picture

You kids do realize that Shaw was an anti-capitlaist who believed that capitalism tainted Government, which could only be rescued by Socialism; ergo the Wikiquote directly above the one cited by caconhma:

"Capitalism has destroyed our belief in any effective power but that of self interest backed by force. But even Capitalist cynicism will admit that however unconscionable we may be when our own interests are affected, we can be most indignantly virtuous at the expense of others."

- George Bernard Shaw in The Intelligent Woman's Guide to Socialism and Capitalism (1928), p. 214.


Fri, 10/26/2012 - 10:15 | 2921334 Colonial Intent
Colonial Intent's picture

Thats because G B Shaw equated capitalism with corruption and naively thought socialism had less corruption.

A view shared by many at the time.

It dont but why spoil the dream by letting facts and history get in the way of wishful thinking.

America has a capitalist society in the same way that USSR had a communist one, In name only.

In reality its the same old story of corruption and cronyism in both systems that ultimately provides the seeds of its own destruction, if I was a free market capitalist i'd be pretty pissed at the current 'capitalist' system too and it has poisoned people against any real free market capitalism for generations in the same way that western communists lost their faith when the reality of communism was shown to them.

Fri, 10/26/2012 - 11:37 | 2921683 BigJim
BigJim's picture

Capitalism... or, to be more precise, free market capitalism, can exist without  tyranny; communism, by its very nature, cannot.

This business that we only got to see a 'perverted' communism is quite wrong; communism (and even socialism) are by their very nature perverting. 

I suggest you read Mises' seminal work on the impossibility of rational economic calculation in an economy that has no price discovery:

I just wish whoever translated it into English had done so a little more idiomatically.

Thu, 10/25/2012 - 23:29 | 2920594 DoChenRollingBearing
DoChenRollingBearing's picture

Here's a handy little guide (below) to what my family and I are doing re financial fascism.  The original author does not offer up much, except LOTS of words, so here is what we have done:

1) Bought gold.

2) Peru does not produce rolling bearings, so we get them from Korea!

3) Have a healthy dose of salt from stuff from CounterPunch...

4) Get diversified, now!  Stay out of debt, he should have mentioned that.

Fri, 10/26/2012 - 03:16 | 2920813 MachoMan
MachoMan's picture

It depends.  People close to the retirement hump are squirrels trying to store nuts for the winter (they still have hope that there will be some semblance of what they envisioned).  People not close to retirement have no such fantasies and are busy simply trying to tread water and stay afloat.

There is a two part process for this: (1) deleverage; and (2) purchase inflationary hedges.  They might be able to be done contemporaneously.  Pay down all debts that benefit you from paying them early: student loan, credit card, etc.  (each payment you make, you will actually be charged less interest the next payment you make; compare and contrast this with a mortgage).  For those debts that you know will take you decades to pay (forever), then get them fixed and as long of a duration as possible (reduce monthly payments as much as possible to weather the storm and/or create surpluses to purchase inflationary hedges).  With the additional money, begin being more self sufficient, e.g. growing part of your food needs, learning to maintain your automobile, fixing your computer, maintaining/repairing your house, etc. 

Contemporaneously, purchase meats and other items in bulk and store for longer term (freezer, etc.) to help mitigate the effects of inflation.  Do the same with virtually anything you'll NEED. 

At some point, you'll end up with surplus income...  and that's when you actually get a smell of freedom...  albeit with a bit of the fart smell of paper.

Thu, 10/25/2012 - 23:36 | 2920605 cygamaczer
cygamaczer's picture

Revolution Bitchez! I'm guessing I'm the only Marxist on the site so let me spell it out for you. The expansion of Capitalism has been dependent on being able to make a profit off the work of those doing the physical work and having a rich enough consumer population to sell those products to. This could continue as long as Capitalism could expand, find new cheap labor forces and subsidize the Consumer Class (created by Keynesianism). Face it, Globalization is over, energy will only get more expensive, and the Fascist elite will plunder all that is left from the remains of the middle class. Its endgame friends, resist or die.

Thu, 10/25/2012 - 23:55 | 2920628's picture


The expansion of Capitalism has been dependent on being able to make a profit off the work of those doing the physical work and having a rich enough consumer population to sell those products to.


Nothing wrong with that. Folks like to make a profit and folks also like to be able to afford quality goods and services. Don't forget that those who do the physical labor profit from having access to the capital organized by management and would have far less earning potential if left to their own devices. Nothing wrong with that at all.

Fri, 10/26/2012 - 09:27 | 2921184 Nothing To See Here
Nothing To See Here's picture

The guest author might as well be a marxist too :

"Today the U.S. and much of the world’s economies are operating under what I call Monetary Fascism: a system where financial interests control the State for the advancement of the financial class."

He's got it all wrong. You have to be either totally naive or totally socialist to believe that the State can be made a slave to any interest whatsoever. The Leviathan State always controls. Those "financial interests" are what they are because the State wants them like that for its own purposes.

Sat, 10/27/2012 - 00:51 | 2923446 taeonu
taeonu's picture

Maybe you haven't noticed but the state and the financial interests are the same group of people.

Fri, 10/26/2012 - 17:05 | 2922702 Joe A
Joe A's picture

"access to the capital organized by management" = debt, lots of it.

Fri, 10/26/2012 - 00:27 | 2920666 Harbanger
Harbanger's picture

You're not a Marxist, you think like Obama.

Fri, 10/26/2012 - 10:01 | 2921278 Colonial Intent
Colonial Intent's picture

But i was told obama was a marxist, all the commenters say he is, and they must be right/Sarc

Fri, 10/26/2012 - 00:50 | 2920687 Dr. Engali
Dr. Engali's picture

Get your head the fuck out of the matrix. You are a slave , the sooner you realize that the sooner you can free yourself. I don't care what kind of ism you worship, it will never ever .... evar... come to fruition due to the corruption of men. So wake the fuck up to reality and understand that there will never be justice until all corrupt men and women are held accountable regardless of who they are.

Fri, 10/26/2012 - 01:20 | 2920730 NidStyles
NidStyles's picture

More like you are just another chump that has never actually read the material you are claiming to adhere to.

Fri, 10/26/2012 - 02:31 | 2920767 cygamaczer
cygamaczer's picture

Really? Look up Marx's theory of overproduction in the Grundrisse. Keyensianism, Decoupeling from physical assets, Financilization and Friedmanite Fascism have been the steps the Government and Capital been forced to accept to stave off the inevitable collapse of Capitalism. Infinite growth is impossible on a planet with finite resources.



Fri, 10/26/2012 - 04:03 | 2920838 Hobbleknee
Hobbleknee's picture

Capitalism does not exist.

Fri, 10/26/2012 - 05:38 | 2920883 falak pema
falak pema's picture

nor do infinite resources and infinite growth of toe nails.

Thu, 10/25/2012 - 23:39 | 2920606 mayhem_korner
mayhem_korner's picture



Currency is intended as a medium of exchange; a proxy for barter to make commerce more efficient.  A fundamental problem arises when scarcity is imputed on the currency via an interest rate...AND that interest rate is subject to establishment other than by market forces.  Social agendas force the interest rate to be artificially lowered, while at the same time artificially empowering those who wield the lever (i.e., CBankers).

The predictable end-result is increasingly upon the world.  Insufficient scarcity of currency leads to unrepayable debts. 

The CBs are not printing currency, they are printing debt.

Smith and Locke understood that "free" and "market" are inseparable concepts; neither exists at this point.

My rant is done.

Fri, 10/26/2012 - 00:44 | 2920680 Harbanger
Harbanger's picture

Not all countries have the same levels of national Debt.  Some are doing much better than others.  So isn't it really your particular Govt., printing money to pay for years of borrowed money. 

Fri, 10/26/2012 - 10:30 | 2921390 FrankDrakman
FrankDrakman's picture

Currency is intended as a medium of exchange

Far too limiting. As the old saw goes, "Money has these functions four: a measure, a means, a standard, a store"

A 'measure' - money allows us to equate e.g. hours of labour with pounds of flour.

A 'means' - Money allows you to obtain other goods and services that you can actually consume more efficiently than barter (your point)

A 'standard' - i.e. legal tender - All debts can be settled by money (the lender can't demand your car or your house to satisfy a debt if you have money)

A 'store' - A store of value. Sadly, the Fed and central banks everywhere have virtually wiped out this function.

Thu, 10/25/2012 - 23:47 | 2920607 Orly
Orly's picture

"Ending the tyranny of Monetary Fascism begins with the wide spread recognition that it is the anti-theses of capitalism, free markets, individual self-determination and national sovereignty."

We are beginnig to see this, collectively, as people of the globe.  What was once able to be hidden with esoterics and complicated instruments is now finding its way into the open dialogue.

These ideas, however, were around long before Friedman and were known even in the day of Thomas Jefferson, who warned quite clearly about the advent of the money-men, of which Alexander Hamilton was one.  Perhaps Friedman quantified it, put the formulae down on paper, but the idea has always been one and the same: to strap the people with interminable debt such that they were to be "chattel," as you say, for the rest of their lives.

The only difference between then and now was the availablity of cheap transportation and other luxuries of technology.  It was inconceivable to Jefferson to move himself from what would be Washington, D.C. to Sydney, Australia in a matter of a single day.  Technology, then, was the root of global expansion of the money-changers, the central bankers and the usurists, not some guy named Milton.

Monetary fascism has been around for a long, long time and is not limited to its time in the latter part of the 20th century until today.  While I grant that such a thing exists and that we, as a global people have allowed it to go on for the benefit of a few rather than for the benefit of all for far too long, the advent of such thinking was borne not of modern technology and global reach but from the bane of humanity from the get-go; namely greed and jealousy.  Extrapolation of that main thesis will take us back to the Book of Genesis when it was noted that, "I am not my brother's keeper."


Thu, 10/25/2012 - 23:50 | 2920622 mayhem_korner
mayhem_korner's picture



Interesting non sequitur to Scripture.  BTW, the Bible police would point out that it does not say in any translation of Genesis the statement, "I am not my brother's keeper."

Fri, 10/26/2012 - 01:11 | 2920639 Orly
Orly's picture

Perhaps so but I am not a Hebrew scholar by any means.  My intent was to demonstrate that the idea of taking advantage of and even murdering someone, say for better land or, in short, more riches, was not invented by a mousy academic from Chicago.


Fri, 10/26/2012 - 01:50 | 2920753 socalbeach
socalbeach's picture

fyi the "brother's keeper" line comes from the following, after Cain murdered his brother Abel:

Genesis 4:9
New International Version (NIV)

Then the Lord said to Cain, “Where is your brother Abel?”
“I don’t know,” he replied. “Am I my brother’s keeper?”

Fri, 10/26/2012 - 01:57 | 2920761 Orly
Orly's picture

Thanks for that.  :D

So we have a young man who murdered his brother for what would be assumed to be monetary reasons and he callously shrugs it off because it was done for his own benefit and he has little guilt about it.  He got his, so what does he care?

It seems fitting to what the author is trying to say about the callousness of the bankster class but is as ancient as the day is long.

Fri, 10/26/2012 - 02:11 | 2920772 socalbeach
socalbeach's picture

I thought Kennedy's essay above was excellent, but one thing I wasn't sure of was the role Friedman played in all of it.  Your comments about Jefferson and Hamilton were good, and there's a good chance Kennedy overstated his role.

(Back to the biblical quote, my interpretation is that Cain killed Abel over jealously, and he wasn't shrugging off the murder, he just didn't realize he was caught: )

Fri, 10/26/2012 - 02:27 | 2920782 Orly
Orly's picture

Well, let's just hijack the thread, shall we?  :P

I have heard the interpretations, or rather the insinuations that it was over jealousy but as far as I know, the main point of fact is never explicitly stated in the Bible.  Let's suppose that he was indeed jealous of his brother. Jealous over what?

One was a shepherd, the other a farmer.  Both need arable land to perform their tasks in life.  It could be assumed, therefore, that Cain was jealous over Abel's lot and murdered him for that.

Your idea that he didn't know he was caught seems a bit of a stretch to me.  I mean, how would you not know you were busted when God Himself says, "Yo, where's yer bro?"  Cain would have had to know of God's omnipotence and would therefore have been trying to lie.  If he were trying to lie, then why didn't he just say, "Oh, he must be over in the pasture."  Instead, he basically said, "What are you asking me for?  Do I look like I care?"

Of course, he would have said that knowing full well that God already knew the answer to the question but was insolent in his response, which would lead me to believe that there was a jealous motive in his mind about his brother's lot and could justify the murder to himself secondary to his anger over the situation.

Fri, 10/26/2012 - 03:21 | 2920814 Harbanger
Harbanger's picture

Cain was the 1st born from Adam and Eve, then they had Abel, who was murdered by his brother.  Some say that he was the child of satan, from when he met Eve in the Garden.

Fri, 10/26/2012 - 05:04 | 2920870 falak pema
falak pema's picture

Without a sexy twist what is a good murder mystery worth? 

Now we are getting somewhere; if you threw in some inferences to incest and one son being preferred by mother than other, we would be home and dry! 

Voilà Hercule! 

Fri, 10/26/2012 - 09:13 | 2921143 Orly
Orly's picture

I love the little Belgian!  My favourite character of all time.

Fri, 10/26/2012 - 10:50 | 2921480 FrankDrakman
FrankDrakman's picture

Cain and Abel are a myth, and all myths are compressed wisdom. The point of the fable is if you murder someone, you will be cast out of society - east of Eden, into the desert, by God in the Bible, and by your fellow man, into prison, in real life. Why you killed him doesn't matter, so long as it wasn't self defense.

Sat, 10/27/2012 - 11:12 | 2923770 mayhem_korner
mayhem_korner's picture



Cain killed Abel over jealousy, correct.  He was jealous that Abel's offering was found more favorable to God than his own.  But there are two other elements to the story.  First is the notion that God would even need to ask Cain where Abel was (He knew).  So it is about rejecting accountability to God.  The second point is that Cain and Abel were Adam and Eve's first post-fall offspring.  So the sinful nature was passed down from Adam & Eve to their first offspring and, by extension, to all men.  That is why only Adam is considered "made in God's likeness" and the rest of us are "made in Adam's likeness".  We have the physical form God intended, but not the spiritual purity.

Sat, 10/27/2012 - 11:15 | 2923765 mayhem_korner
mayhem_korner's picture

Thanks for that.  :D


He just confirmed that what you wrote is NOT correct.  You wrote "I am not my brother's keeper."  It does not say says "Am I my brother's keeper?"  You may say subtle difference, but the context is important as to why it was a question and not a statement.  Just like the Bible does NOT say that Adam and Eve ate an apple, does NOT say there were three wise men, does NOT say Jonah was swallowed by a whale, does NOT say we are made in God's image, etc. etc. etc.

Thu, 10/25/2012 - 23:41 | 2920608 Kitler
Kitler's picture

Epic post. We are incredibly fucked.

Fri, 10/26/2012 - 00:00 | 2920635 kito
kito's picture

oh please, stop fretting,...... pinochet, er, romney will save us......drones, dissident camps and free market capitalism!!!!.....

Fri, 10/26/2012 - 08:10 | 2920986 tocointhephrase
tocointhephrase's picture

Free market Capitalism.

lol good one!

Thu, 10/25/2012 - 23:41 | 2920611 anonnn
anonnn's picture

University of Chicago founded/funded by John D. Rockefeller of Standard Oil fame.

Surely a meaningless detail of no consequence to U of Ch spawn Leo Strauss, Milton Friedman, etc.

Refer to Naomi Klein's Shock Doctrine for details of U of Ch's global effects., [the book oddly does not mention Rockefeller's original influence. or I missed it].

Thu, 10/25/2012 - 23:43 | 2920615 t0mmyBerg
t0mmyBerg's picture

OK, it was Thomas Hobbes that made the observation about the life of man, nasty, brutish and short, not John Locke (with an e at the end you should note if you invoke his philosophy in one of your future rambling rants).  Errors of fact aside, I think you have an unhealthy fixation on Milton Friedman, who, while not perfect, I am pretty sure was not an advocate of monetary fascism.  But whatever.  What do I know.

Thu, 10/25/2012 - 23:46 | 2920618 Orly
Orly's picture

The author seems to confuse human nature with someone being in the right place at the right time.  His idea of "monetary fascism" is what I would call "collective greed;" nothing more, nothing less.

Fri, 10/26/2012 - 00:29 | 2920668 new game
new game's picture

as the pedulum swings history repeats. while the monetary power concetrates the majority boils.

what i watch is gun control, because history says the story times millions dead that the jackboot of power can not

have this. how about a mortar for lack of loyality-no trace of freedom left...

u.n./above mentioned oligarchs know  that that is the last resistence to overcome.

while the  last nation to allow guns in ordinary citizens hands appears to be near the end it remains to be

seen if the collective rage will act accordingly.

Fri, 10/26/2012 - 01:12 | 2920717 toomanyfakecons...
toomanyfakeconservatives's picture

There is no such thing as "human nature". Nuture matters FAR MORE than nature. The human nature myth is right up there with the "DNA determines everything" myth.

Fri, 10/26/2012 - 02:00 | 2920765 Orly
Orly's picture

You cannot be serious! <Invoking my best McEnroe>

You don't have kids, do you?  If you do have them, then you must know that they are as different as night and day and there is not a thing you can do about it.  If you don't have them but will have them, then at that time you will understand that you have absolutely no clue as to what you're talking about.  If you don't have them and don't plan on having them...well, that's probably okay, too.

Fri, 10/26/2012 - 03:48 | 2920827 Kiwi Pete
Kiwi Pete's picture

So true Orly. Reminds me of a family we knew when I was a kid. Two totally normal kids and one a total mongrel who ended up in jail. 

Fri, 10/26/2012 - 04:49 | 2920862 putaipan
putaipan's picture

financial fascism, inverted totalitarianism.... whetever. collective geed indeed. hey! let's wish this guy alittle luck-

Sat, 10/27/2012 - 12:39 | 2923869 putaipan
putaipan's picture

you gonna click it? i ain't gonna click it.     3 days now and ZH hasn't picked up on this.

Sun, 10/28/2012 - 01:50 | 2924868 putaipan
putaipan's picture

4 days. dead journalist/editors kids dead.....stilll nothin'


Thu, 10/25/2012 - 23:48 | 2920621 Everyman
Everyman's picture

Today the U.S. and much of the world’s economies are operating under what I call Monetary Fascism: a system where financial interests control the State for the advancement of the financial class.

Sounds like it is time to have "open season" on the financial class.  Kill 'em all, and let the politicians sort out the peices.



Fri, 10/26/2012 - 00:10 | 2920648 Bindar Dundat
Bindar Dundat's picture

Let's make sure we differentiate between those who started and grew their companies and the banksters.  Just sayin' I hate the bankers too but I made some good coin as a business man.  Guess there are not to many like me on this site.  Marxists and entrepreneurs need not apply?

Fri, 10/26/2012 - 00:16 | 2920655 Orly
Orly's picture

I, for one, appreciate all perspectives, as long as they are cogent and kind.


Fri, 10/26/2012 - 10:06 | 2921301 hapless
hapless's picture

"Let's make sure we differentiate between those who started and grew their companies and the banksters."

Good luck with that.  For many, the recognition of starters/growers leave too many loose ends that need to be explained.

Fri, 10/26/2012 - 03:54 | 2920831 Radical Marijuana
Radical Marijuana's picture

Have you noticed, Everyman, that the banksters can easily pay for private military contractors, as well as that the banksters control the professional killers that work for the government, and, indeed, the banksters, by controlling the government, were able to thereby massively subsidize the privatized professional killers?  In general, these sorts of suggestions about killing those in the financial classes ignore that those classes can pay for the best mercenaries. ... Such a suggestion is a childish daydream, and moreover, it is NOT based on paradigm shifts in our militarism, that does better death controls, through a better murder system, which is the only theoretical solution that might work.

Fri, 10/26/2012 - 06:10 | 2920903 Tango in the Blight
Tango in the Blight's picture

I wonder how many bodyguards follow Lloyd Blankfein wherever he goes.

Fri, 10/26/2012 - 00:04 | 2920641 David449420
David449420's picture

Perhaps the most profound explanation of what is happening to our world  that I have read in the last four years. Doesn't present any solutions  but I hope that this essay (and others like it) will be the catalyst that will start to move us towards actually developing some solutions.

Fri, 10/26/2012 - 10:25 | 2921151 Bob
Bob's picture

Here's some historical context that helps fill out the picture:

Michael Hudson: The Road to Debt Deflation, Debt Peonage, and Neofeudalism

Beware the false differentiation the Austrians (the sons of Mises, Hayak, Rothbard, etc.) are promoting between themselves and the Friedmanites.  The Austrians are simply a more virulent strain . . . who wrap themselves around "Liberty" as the theme of a war they claim to be waging against a socialist straw man. 

Here we have Rothbard condemning Friedman for retaining objections to private monopolies:

Here's a paper from the mises institute proclaiming that eliminating Glass-Steagall would usher in a new age of freedom:

The version of "Liberty" these sick fuckers are pushing is Friedman on steroids and meth.  These are the guys putting the final touches on that jack boot that would crush the face of humanity forever.

As our present author notes, if you think government is bad, domination by extra-govermental entities that literally control the world's economy is gonna be far worse.  That is a genuine NWO . . . one accountable to no one.

Fri, 10/26/2012 - 00:17 | 2920656 traderjoe
traderjoe's picture

Point of Order: One must go back to 1913 to see the true source of corruption and monetary facism. A guy like Friedman? Either a shill, insider, or useful idiot. 

The Federal Reserve Note, the abdication of monetary sovereignty, the borrowing of the people's money at interest from banks that can factionally reserve it for free, and the debt-money system are simply the scam of the century. 

All else, is just a part of the theater. 

Fri, 10/26/2012 - 00:37 | 2920673 new game
new game's picture

yes, keeping it simple and understandable to anyone with a little brain power; i ask why cant i create money so i can control your fucking life?

and until people connect their shity situation and this monetary regime and actually overcome the fucks(not by voting) we continue down the road of a mortar for disobedience...

Fri, 10/26/2012 - 01:11 | 2920714 toomanyfakecons...
toomanyfakeconservatives's picture

American civilian patriots, backed by American patriots in the military will step in soon and end the monetary treason...

Fri, 10/26/2012 - 08:24 | 2921015 northerngirl
northerngirl's picture

This could be true, but there is one problem...Most Americans do not want to take the time to learn how our economic system for the past 100 plus years has been nothing more than smoke and mirrors.  If that were not true we would not be in this mess today.  There really is a sense that no matter what happens there will always be someone out there to take care of us.  Guns and gold are good, but those will not fix our problems either.  The mindset of the mass has to change from being a looter to a producer.  When we have more producers than looters the United States will grow strong again.  Are there enough American Civilian Patriots and the American Patriots in the Military that understand what needs to be done to bring this country back to an economic sanity?  Put 3 Americans in a room with a problem and you will get 4 different answers on how to solve the problem.  Sadly, the problem will never to solved, but the 3 Americans will fight each other to the death defending their answer.  Hence, where we are today...

Fri, 10/26/2012 - 00:22 | 2920661 anonnn
anonnn's picture

Regarding a solution, this may help :

George Seldes* view was: While all societies have leaders, in a failed society the
wrong persons are chosen and/or accepted to be the leaders; those wrong
leaders are more precisely the mis-leaders, as the prefix "mis-" aptly
denotes. This view of a basic problem, from which so many other problems
grow, got Seldes' attention and he postulated the brilliant handling of it.

How Do You Tell The Leaders From The Mis-leaders? Seldes found just one
answer to that question. He said so in a speech and I have a copy to hand;
it is from his 1953 book "Tell The Truth And Run" p.118-119, extracted below.

[BEGIN EXTRACT] "...Is there a simple way by which an intelligent but
confused people can test men and parties, a sure way? I do not know if I
have the right answer, but about Christmas time,1944, when Clifton Fadiman
for the Writers War Board asked me [among scores of others] to write a radio
address to the Germans [which our Army later broadcast to the civilian
population from transmitters along the front], I sent the following:

People of Germany:
I hear you say the same words today I heard on December 13, 1918,when I
marched into Coblenz with the First Division of the American Army.

You shouted then and you shout today: "Wir waren belogen und betrogen." You
cry out that you were "lied to" and "betrayed" by your leaders. In 1918 it
was the Kaiser and the Junkers who had fooled you into a commercial war;
today it is the Nazi crowd of politicians, cartel businessmen,
landowner-Junkers---practically the same outfit.

You had your eyes opened suddenly in November, 1918, when the men of the
fleet and a few labor leaders with their armbands reading "Arbeiter and
Soldaten Rat" [Workers and Soldiers Committees] came to the cities and
overthrew the monarchy, and you had your eyes opened the other day when from
the underground the real leaders of the people of Germany suddenly appeared
and overthrew Fascism.

I saw you in 1918 raise your fists to the sky and shout "Nie Wieder
Krieg"---"No more war". I hear you shout "no more war" today.

But I also hear someone who is not being carried away by the great elation
and the great emotion of this great day. I hear a man call out: "But we will
be betrayed again--and again-- unless we , the common people, find a way to
tell our friends from our enemies. How can we tell who are the real leaders,
who are the misleaders? Hitler promised us everything good. How can we tell
when false leaders arise and make promises?"

I think I can answer that. Let me ask you, first, what did Hitler do about
labor--about the labor unions? Remember, he never had the backing of labor.
He fought labor. He was anti-union.He had been a scab and a labor spy. And
the first thing he did when he seized power was to smash the unions by
confiscating union treasuries.

And Mussolini? He gave the people what he called a "Labor Charter". But it
was a slave charter.. He organized labor-management committees, but the
employers named the labor men on them as well as their own.

It is so in all Fascist countries. Labor is the bulwark of democracy. Labor
is the people. So this is your answer for the future: Judge and test every
man, every leader, by his words and actions regarding labor. If the Italian
people, who knew Mussolini was a labor-faker, and the German people, who
knew in 1922 that Hitler was a tramp who had never done honest work and
always hated the unions, had fought these two men on their labor records; if
they had gotten the middle class and the intellectuals and the liberals and
all anti-Fascists to work together, they would never have been betrayed.

There was a way of telling. The test was labor. And in the future, you
people of all nations, you can tell your true leaders fom the Fascists, or
the misleaders, by their record on labor. It is the only real test I know
of. And if you use it rightly you will have a democracy instead of
Fascism--and war--and death. [END EXTACT]



George Seldes was an American journalist of highest integrity and
credibility, as he wrote mostly from his own, actual observations an
experiences. He died 1995 at age 104, in Vermont. For example,
he uniquely interviewed Gen.[later President] Paul von Hindenburg just after the WWl
Armistice [and was nearly shot for breaking US Army rules to do it]; he
learned firsthand and tried to break the story in the 1920' s of Benito
Mussolini's direct involvement in the murder of his popular rival Matteoti;
he broke virtually the whole, basic story just after WWll of the tobacco
industry's addiction, cancer and health debacle. And of course Seldes' works were
actively suppressed.

Fri, 10/26/2012 - 04:50 | 2920864 falak pema
falak pema's picture

+ 100 loved it. Thanks.

Never betray the people. Never stigmatise its representatives as EVIL, even if they be dumb, and not attuned to reality.

Talk and reason them. Make them part of the solution. Thats why those who rule are truly "the best and brightest"; if they know how to share...the ciment of civilization.

Fri, 10/26/2012 - 14:10 | 2922228 Cypher_73
Cypher_73's picture

By that measure, Mitt Romney is an utter failure. Yeah, that seems about right.

Fri, 10/26/2012 - 00:35 | 2920671 jez
jez's picture

When asked in an interview what humanities’ future looked like, Eric Blair, better known as George Orwell, said “Imagine a boot smashing a human face forever.”


No he didn't. This is a mangled extract from "1984" in which someone -- I think it's O'Brien but I don't propose to go through the book to confirm it -- says to Winston Smith: "If you want a picture of the future, imagine a boot stamping on a human face — forever."


Poor old Orwell. Still being misrepresented after all these years. May I recommend that you read his essay "Politics and the English Language" (1946) for priceless advice on clarity and precision in writing and reporting.


And you mean "humanity's future", by the way.

Fri, 10/26/2012 - 00:48 | 2920685 Orly
Orly's picture

You are exactly correct, jez.  O'Brien says to Winston in the book 1984, "If you want a vision of the future, Winston, imagine a boot stamping on a human face forever."

He also said, "If you're a man, Winston, you're the last man. Your kind is extinct. We are the inheritors. Do you realize that you are alone? You are outside history. You unexist."


Fri, 10/26/2012 - 00:42 | 2920678 stormsailor
stormsailor's picture

this one is a keeper,  excellent article,  outstanding.

Fri, 10/26/2012 - 00:46 | 2920683 uncle reggie
uncle reggie's picture

We are entering the final stage before total control is established. When drones fill the airspace over every city in a few years, the final piece will be in place. The boot is polished and poised to crush humanity.

Fri, 10/26/2012 - 01:08 | 2920708 toomanyfakecons...
toomanyfakeconservatives's picture

Governor Tarkin: Princess Leia, before your execution, I'd like you to join me for a ceremony that will make this battle station operational. No star system will dare oppose the Emperor now. 

Princess Leia: The more you tighten your grip, Tarkin, the more star systems will slip through your fingers. 

Fri, 10/26/2012 - 00:48 | 2920686 adr
adr's picture

I got a D in my college economics class based on Friedman. I ended up dropping the course. It wasn't that I didn't read the book or do the work. I was just told all my answers that went against the insanity of Friedman's philosophy were deemed wrong by my professor.

That six hours per wee for three months was the iggest waste of time in my life. But it did prove that the quickest path to wealth is fraud.

That professor drove an Audi S5 and lived in a $500k home.

Fri, 10/26/2012 - 11:35 | 2921671 slightlyskeptical
slightlyskeptical's picture

Thats a good story. In college I was taking Econ 2 or whatever they called it back then and on day one knew I couldn't sit there listening to the crap. Fortunately Prof tells us that any grades/test we miss will be made up on the final. So I did nothing all year, never went to class, etc. and final counted 100%. Turns out just about everyone failed every assignment and test (I wonder why?) so the Final was 20 multiple choice questions. I attended the study session (My second class) and ended up with an easy A.


Fri, 10/26/2012 - 00:55 | 2920693 new game
new game's picture

my ray of hope always comes from a natural understanding; the strong will survive as a whole and the rest will perish.

good night...

Fri, 10/26/2012 - 04:37 | 2920853 falak pema
falak pema's picture

r u leaving us already? Or are we all leaving u?

Fri, 10/26/2012 - 00:57 | 2920695 Quinvarius
Quinvarius's picture

 Every time you buy an ounce of real money, you are walking away from this slavery.

Fri, 10/26/2012 - 01:05 | 2920701 toomanyfakecons...
toomanyfakeconservatives's picture

Nothing dollar-denominated in my basement bank... coffee, canned food, ammunition, gold, silver, and so on.


On the global stage, the 100+ nation BRICs alliance is getting ready to end the slavery and ditch the Federal Reserve Note forever.

Fri, 10/26/2012 - 01:00 | 2920697 Kreditanstalt
Kreditanstalt's picture

"The foundation of Friedman’s corrupting principle is that the investor (money to be more precise) has no duty, obligation or covenant to anyone or anything. Friedman’s ‘Market’ is not subject to ‘any’ human standard of morality, political limitations or national interests. Money is free to act without bounds or conventions."

And what is the responsibility of GOVERNMENT in all this?  

Isn't government - not "corporations" - supposed to be in charge?

Why blame investors and speculators?  Why doesn't GOVERNMENT enforce the rules???


Government has the authority....government is the problem, not a corrupted bystander...   

Fri, 10/26/2012 - 01:09 | 2920711 Orly
Orly's picture

Walmart does have guns...

But you are exactly correct in that it is the role of government to oversee that the rules get laid down fairly for all.  I suppose the author's point is that the financial arm of society and the political arm of society are one and the same, i.e., monetary fascists.

It follows that in any mature society, the ones who have the guns protect the ones who have the money, so they can make more money and they can buy more guns.  Invented by Milton Friedman.

Smart guy.  Cleopatra should have thought of that.


Fri, 10/26/2012 - 05:32 | 2920833 falak pema
falak pema's picture

the lady in the carpet who had two roman lovers who held their gladius swords like their  victorious "guns"; she chose well her lovers but they both died on her. The guy who won had no time for her. Augustus only liked Egyptian grain and he wouldn't touch any woman who had slept with Mark Anthony. Strange how men don't appreciate women for their carpet bagging tricks. 

Awesome post by the author and wonderful summary of the financial demise of US exceptionalism in this PAx Americana morph. 

One rule of history this author does not refer two is the basic principle of all nation state constructs : the golden rule of balance of power to which FDR adhered; never to demonise the vanquished enemy. What Richelieu and Metternich taught the nation states of Europe in previous centuries. His immediate successors stretched out their hands to the losers of WW2 and rebuilt the world.

Reagan and Thatcher as the intransigent Catholic kings of this new, revitalised, Unilateral, Anglocentric construct, and their Bush family and NWO cabal successors, demonised the enemy within; the welfare state and unions; as the recalcitrant nations of the vital Oil patch, veritable life line to fuel the post industrial global age.

And it led to hubris, even after the collapse of the old enemy of USSR. When you feel you tower like a colossus over the world and none can challenge your pre-eminence either from within or from without, you are on the road to deperdition.  The mind set of Augustus and consorts...lost to Cleopatra's charms, to the existence of all the others. The ciment of nation state becomes brittle like that of imperial construct without.

Sad, painful lesson of unknown dimension for us, as the first world loses it collective superior culture to an Oligarchy that knows no values other than material, ephermeral gain for the "happy few"; now a corrupted and dangerous legacy to future generations. 

PS : Here is an interesting graphic presented in Jesse's café that allows you to understand "monetary/financial fascism" in the overall political spectrum. 

Jesse's Café Amé the extremes, the Left and Right become almost indistinguishable in their disregard for the individual. 

Fri, 10/26/2012 - 09:20 | 2921161 Orly
Orly's picture

Headed right for my old haunt in New Jersey.  I'd kind of like to experience a hurricane in New Jersey.  I've been through them in Texas, Louisiana and Mississippi but never up north.

Fri, 10/26/2012 - 11:16 | 2921594 falak pema
falak pema's picture

don't ride your broomstick like Mary Poppins, you might find that ole Sandy has a wicked tail,  like wily croissants and strong cawfee is nice to wake upto with orange juice. Smell the heather and gather the mushrooms. 

Fri, 10/26/2012 - 05:24 | 2920839 Radical Marijuana
Radical Marijuana's picture

... the ones who have the guns protect the ones who have the money, so they can make more money and they can buy more guns ...

THAT is the essence of the real problem.

It is a combined money/murder system.

Those who were the best at backing up their lies with violence controlled governments. Indeed, governments were always systems of organized lies, operating organized robbery. Our current system has only astronomically amplified the size of that, and so, its own madness is its only significant threat.

Nobody outside of that system of debt controls, backed by death controls, could do anything significant to change it. The politicians are already puppets, or else they have no careers. (The politicians that could not be bribed or intimidated were assassinated, or destroyed in some other way.) Therefore, the government is organized crime, effectively controlled covertly by even better organized criminals. The dilemma is that there are NO practical ways to change that.

Fri, 10/26/2012 - 05:48 | 2920888 Peterus
Peterus's picture

Constitutional Republic is better than nothing and what is up now in the West. With popular revolt, overturning of current govt before a lot of corruption sets in, shredding current Constitution and writing it down again every few decades it could probably work pretty good. USA got somewhat corrupted almost instantly but until WWI it was still tolerable amount.

Though Ankap is the real way to go. Take the basic rule - I own myself, I own stuff I've made, found, traded for and were given. All violations to it, all aggression is always wrong. Is it violence or war, is it theft or taxes, is it coercion or (some) police action, is it fraud or politicians misrepresenting reality. No exceptions to any "special" group of people.

Fri, 10/26/2012 - 08:21 | 2921004 Nimby
Nimby's picture

And what of land?  What right do you have to land?  Does not the entity that protects your interest in the land from which you harvest the food you eat, or make the things you sell, or rest your body not have an interest in that land as well?
What of pollution?  Part of the bundle of rights that comes with an interest in property (be it allodial or fee simple) is the right to enjoyment.  If a neighbor is, through pollution of one form or another, supressing that enjoyment, what mechanism would you employ to restore your rights?  BTW, I'm not trying to come across as some wacko-environut, it's just that the statists have embraced this cause as a means to an end (that end NOT being private property rights!), so please don't confuse me as such and take this in an unneccessary direction.  It seems to me that Ankap is an impossible dream.

Fri, 10/26/2012 - 07:42 | 2920954 Vooter
Vooter's picture

"Why blame investors and speculators? Why doesn't GOVERNMENT enforce the rules???"


Why blame rapists and murderers? Why doesn't GOVERNMENT enforce the rules???

Fri, 10/26/2012 - 10:21 | 2921361 Vooter
Vooter's picture

"Government has the authority....government is the problem, not a corrupted bystander..."

Oh, I if someone robs a bank, we should let the robber go and arrest the police for not preventing the robbery?

Fri, 10/26/2012 - 10:24 | 2921373 Vooter
Vooter's picture

"Isn't government - not "corporations" - supposed to be in charge?"

YOU'RE NOT SUPPOSED TO COMMIT CRIMES, regardless of who's in charge. Get it?

Fri, 10/26/2012 - 10:36 | 2921421 Kreditanstalt
Kreditanstalt's picture

Following your logic, we'd have to say that governments, and police are totally useless.  I think they are getting off easy in this mad public race to find villains ("evil corporations") and victims (themselves)...what about government??  Is it USELESS??

Government: "a body having a monopoly on violence in a given territory."

They have the guns.  Without government inaction, "evil" corporations would be nothing.

Fri, 10/26/2012 - 01:18 | 2920699 toomanyfakecons...
toomanyfakeconservatives's picture

Great article... it's a sworn affidavit for the coming MASS ARRESTS...

Fri, 10/26/2012 - 01:04 | 2920702 Downtoolong
Downtoolong's picture

My solution:


Get out of all debt and stay that way.


Avoid financial investments. They are just worthless promises, based on and exchanged in a fraudulent system. Unless you control them, you will be victimized by them. An eTrade baby isn’t so cute anymore when it turns out to be you.  


Trust no one in the mainstream banking and financial industry. Those who seem like nice people trying to help you probably are. Unfortunately this most likely means they are too stupid and naive to realize the greater destructive forces they are part of. Think one of the assistant operators in the control room of Darth Vader’s Death Star.


Invest any wealth you have and yourself in physical things and businesses that matter to you, support you, and contribute to your quality of life. This includes your home, health, food sources, transportation, hobbies, etc.


Noble as it might seem to fight the financial elite, your chances of winning a head on battle are slim. Case in point, Occupy Wall Street. Your best weapon to defeat their tyranny is to keep finding ways to walk away and distance your life from their influence. Without your money, they are nothing.



Fri, 10/26/2012 - 09:53 | 2921255 Colonial Intent
Colonial Intent's picture

I've always preferred fight to flight, maybe i'm the evolutionary dead end and you are the naturally selected homo nobilis.

Fight the sytem or run and hide from it? even if your ethical paradigm is correct its not one any moral human being would ever follow.

Fri, 10/26/2012 - 10:27 | 2921383 Vooter
Vooter's picture

"Even if your ethical paradigm is correct its not one any moral human being would ever follow."

LOL...says who?

Fri, 10/26/2012 - 10:56 | 2921511 Colonial Intent
Colonial Intent's picture


I just said it.

In the post above.

Did you not read it?


Seriously tho:)

I'm sure there were many jews who shared his view in 1935, i wonder how many of them were alive in 1945?

Fri, 10/26/2012 - 01:12 | 2920715 Vlad Tepid
Vlad Tepid's picture


 In a world without the State, he sided with Lock, “life was brutish and short”. 

Except it's spelled "Locke" and it was Hobbes, not Locke who famously made the statement he's inaccurately quoting...kind of took a little away from the credibility factor for me.

Fri, 10/26/2012 - 01:16 | 2920723 Get the Borrow
Get the Borrow's picture

Milton Friedman was a libertarian.  He was a fascist the same way Ron Paul is a fascist...FAIL

Fri, 10/26/2012 - 04:55 | 2920868 putaipan
putaipan's picture

again, check naomi klien's "shock doctrine" and her lectures around the time they were lionizing him and the 'chicago school'.

Fri, 10/26/2012 - 01:19 | 2920729 IridiumRebel
IridiumRebel's picture

"Within the last 40 years ‘money’ has gained total control of each and every one of us.  Generations to come will enter this world burdened with the debts of their fathers.  It is inescapable and ubiquitous.  More than just a spider’s web, or a money-sucking vampire squid, it is a global pandemic that infects our very DNA."

Zero sum until kingdom come. Welcome to the Monkey House.Be careful as shit will be tossed.

Fri, 10/26/2012 - 01:26 | 2920737 Leto II
Leto II's picture




My ten step program:

1. Find a River

2. Drink water from the River

3. Eat fish from the River

4. Use water from the River to irrigate farmland

5. Repeat steps 2-4 until sufficient stores are obtained

6. Make booze from crops

7. Consume booze

8. Find members of the opposite sex

9. Fuck

10. Kill anyone trying to mess with steps 2-9

Fri, 10/26/2012 - 04:48 | 2920860 Vlad Tepid
Vlad Tepid's picture

You're a very complex person.  I'll just skip the first seven steps and beat you to step 8.  :)

Fri, 10/26/2012 - 01:49 | 2920750 polo007
polo007's picture

What is central banking good for?

What, so we must ask, is central banking good for when it is not even able to guarantee a stable price level (see chart 3)?

Why keep a quasi-dictatorial creature within the government body that operates largely outside of public control? Why hold on to an institution that more often than not has failed to provide full employment and price level stability? By these criteria the Fed has indeed been a failure. What then, we must ask is the true mission of central banking as one cannot calibrate accurately the effects of monetary policy on the real economy and price level? The answer is provided by the historical origin of central banking. As Rothbard and other authors such as more recently Lawrence White have shown, central banking grew out from the cooperation between the state and the big players of the banking sector. The deal that was struck said that the big banks will finance government and that the government won’t let the big banks go bankrupt. For that purpose a lender of the last resort was installed in the form of a central bank which would obtain the privilege by the government to produce unlimited amounts of fiduciary money.

Historically the scope of discretion was restricted by the gold standard at first, yet over time the various constraints have been removed step by step beginning with World War I. With the so-called Smithsonian agreement of 1971 the last anchor for the US dollar fell. At the day when President Nixon fully abandoned what was still left of the gold standard, the starting gun was fired for the escalation of the financial sector to grow into its current gargantuan proportions. In tandem with the expansion of the financial sector, government grew its public debt into its current colossal dimensions.

While central banks are effective as lender of the last resort and thereby to safeguard the big players of the financial system from going bankrupt, they are not only incapable of promoting economic growth, employment and price level stability, they are in fact the major perpetrators of the business cycle. Always under pressure to set the interest rate as low as possible, central banks provoke artificial booms which inevitably must result in a bust. The big players in the financial market can profit on the way up without fear about the downturn as they can rely on the central bank to bail them out.

In an academic paper Bernanke (2001) and his co-author argued explicitly that central bankers should not try to prick asset bubbles but stand ready to bail out banks and financial institutions when the bubble bursts. In his speech as a Governor of the US central bank on “Monetary Policy and the Stock Market”, Bernanke declared in 2003: “The ultimate objective of monetary policymakers is to promote the health of the U.S. economy by pursuing our mandated goals of price stability and maximum sustainable output and employment. However … monetary policy actions have their most direct and immediate effects on the broader financial markets, including the stock market, government and corporate bond markets, mortgage markets, markets for consumer credit, foreign exchange markets, and many others.” The message was well understood. The big players in the financial market could rest assured that their central bank would bail them out when a new episode of the lending spree began - the housing bubble. Operating as bailout machinery for the financial system, the US central bank has thoroughly infected the monetary system with moral hazard.

Fri, 10/26/2012 - 09:30 | 2921192 Offthebeach
Offthebeach's picture

Then it becomes the Gaming Of The Bubbles Game. Investors less look to the broader economy and more to capturing/frontrunning and outright controlling Fedgov. Why work, invest, waste in retail when you can sit in the lap of state power and have your ear in the mirrored new royal court of the Federal Reserve?
Naturally the peasants will always be with us, but by taxing them and inflating away their savings and barbaric hovels and pathetic tinker craft "businesses", EBT and other peasants quieter costs sinks are funded by the said same peasants.

Fri, 10/26/2012 - 01:51 | 2920754 polo007
polo007's picture

The strategy of governments and central banks is clear; lower interest rates and pump money into the system in order to re-inflate asset prices and releverage the economy. Although they have been very successful at debasing their currencies, they have missed a very key point. That is, an increase in money supply growth and inflation does not equate to an improving economy. And when taken to the extreme levels we see today, it instead leads to a protracted period of persistently weakening economic growth.

Money supply growth should never eclipse labor force + productivity growth. When inflation rises faster than GDP, malinvestments are created and asset bubbles form. That is especially true today as we see a tremendously-dangerous bubble being created in all the bond markets of the developed world. But what is also true is that government debt that is being systematically monetized by central banks is slowly destroying any confidence left in fiat currencies. As more and more credibility is lost in paper money, GDP growth will continue to decrease in real terms.

As long as governments continue to produce massive annual deficits that are purchased by their central banks, the global economy will continue to stagnate and inflation will increase. What is also true is that equity markets tend to rise over time in nominal terms because excess money creation lowers the value of currencies and raises stock prices. However, the increase in equity values seldom keeps pace with the rate of inflation. To accomplish the goal of achieving a real rate of return on investments after taxes and inflation are considered, history proves that can only be supplied by owning hard assets.

Fri, 10/26/2012 - 01:54 | 2920757 snblitz
snblitz's picture

That is an awful lot of text simply to convince me the author has not read the authors he is quoting, except possibly in excerpt form.

Fri, 10/26/2012 - 04:21 | 2920849 Arbysauce
Arbysauce's picture

Doubt he's read Friedman. He must have heard that stuff somewhere, perhaps the unimpeachable voice in his head.

Fri, 10/26/2012 - 05:26 | 2920879 Peterus
Peterus's picture

I took something else from the text, but around the same line. I think it proves that at last even people with little knowledge in the area and Statist views start to see through this scam.

It is really hopefull as almost everybody is a Statist (National or International kind, left or right) and almost everybody has barely any econ knowledge. We're not avoiding new Dark Age unless these guys get it... and one of them did.

Fri, 10/26/2012 - 03:05 | 2920806 AnAnonymous
AnAnonymous's picture

'Americans' behind that site are doing an excellent work at providing such superb 'american' spirit articles.

They are so good.

Knowing that the term ’Fascism’ was universally unpopular; Friedman and the Chicago School of Economics masquerade these works as ‘Capitalism’ and ’Free Market’ economics.

No kidding? What do you expect from an 'american'?


Knowing that the term coercion, lie and injustice was universally unpopular; Jefferson and the Boston 'american' think tank for 'americanism' Founding Fathers masqueraded these words as freedom, truth and justice.

Aint it great?

The reality of an 'american' world.

Fri, 10/26/2012 - 03:07 | 2920808 Orly
Orly's picture

War is Peace, Winston.

Fri, 10/26/2012 - 03:14 | 2920811 AnAnonymous
AnAnonymous's picture

The fundamental difference between Adam Smith’s free market capitalism and Friedman’s ‘free market capitalism’ is that Friedman’s is a hyper extractive model, the kind that creates and maintains Third-World-Countries and Banana-Republics, without geo-political borders.

If you say that this is nothing new, you miss the point. Friedman does not differentiate between some third world country and his own. The ultimate difference is that Friedman has created a model that sanctions and promotes the exploitation of his own country, in fact every country, for the benefit of the investor, money the uber-wealthy. He dressed up this noxious ideology as ‘free market capitalism’ and then convinced most of the world to embrace it as their economic salvation.

No, wrong, no difference between the twos save different stages in the development of 'american' economics.

At stated later in the article, Smithian economics is all about transfering wealth to an interior from an exterior, the limits between the two being the national borders.

Smithian economics is all about empoverishing an exterior world to concentrate all the wealth within national borders.

That was the line of thought that was enabled centuries ago and adopted by 'americans'

But today is today. The exterior is saturated, there is little left to optimize the transfer of wealth from an exterior to 'american' nations.

Expansion has reached the stage of saturation and as the scheme must keep going, the only way is to reframe the borders, create new relationship from a newly redrawn interior to a newly redrawn exterior.

It is no rocket science. Friedman knew it and him and others, provided tools to meet the 'american' demand.

Fri, 10/26/2012 - 05:28 | 2920880 Acet
Acet's picture

Extending AnAnon's theory and removing the gratuitous anti-Americanism, it is quite conceivable that the "evolution" from preying mostly on other Nations to widespread preying on the citizens of one's own Nation is a natural consequence of the dwindling of natural resources per-capita.

Another possibility is that it's actually a cyclical thing between periods of widespread corruption and wealth-inequality, revolution/war, tyrany, liberation, sustained growth and back to corruption and inequality. I can't but remember things in South America and places like Brasil which had huge wealth inequality (it used to be said that it had no middle-class, only rich and poor) and is now seeing a period of sustained growth following measures to reduce wealth inequality (it seems logical to think that when everybody has equal chances no mater who their parents are, society will be much more likelly to allocate the right people to the right jobs, thus boosting efficiency and wealth creation).

More in general I think that the premise of the article that what is happening now is unique and "This time is different" is flawed: this time is not different and economic collapses due to financial "liberalization" and abuses by the money-changers seem to happen about once every century (see the book "This time is different").


Fri, 10/26/2012 - 07:23 | 2920942 Alpha Monkey
Alpha Monkey's picture

I agree with the probable cyclical nature of events.  However, I would also like to state that it is possibly the natural evolution of a system based simply on "preying" on others.   How to create a system that supports biodiversity of business/government/social culture and give-take-give relationships is yet out of my reach. 

Fri, 10/26/2012 - 03:23 | 2920818 Monk
Monk's picture

What you are seeing now is the result of free market capitalism.


Fri, 10/26/2012 - 03:33 | 2920823 AnAnonymous
AnAnonymous's picture

This world is an 'american' world and is the result of 'americanism'.

Fri, 10/26/2012 - 05:28 | 2920881 Peterus
Peterus's picture

Do you know definition of this term you've just used?

Fri, 10/26/2012 - 07:12 | 2920934 Alpha Monkey
Alpha Monkey's picture

Nope, Crony Capitalism.  Free market capitalism doesn't use imaginary bullshit in lieu of capital. 

Fri, 10/26/2012 - 13:27 | 2922073 OneTinSoldier66
OneTinSoldier66's picture

So Monk, your Monastery worships at the alter of T.A.R.P. + QE then?

Fri, 10/26/2012 - 03:29 | 2920820 OutLookingIn
OutLookingIn's picture


Pick up most any item of merchandise - Made in China.

It uesd to say - Made in USA,

This current global "Greater Depression" has "Made in America" written all over it.

So, take solace from that! Most everything you buy now is not made here, but your current misery is!

Grandpap always said, "Never shit in your own back yard." Now I really know what he meant. We have shit all over our own back yards and are now froced to roll in it by the financial elites. Nice to smell ya!

Fri, 10/26/2012 - 03:36 | 2920824 AnAnonymous
AnAnonymous's picture

Not really. 'Americans' have been shitting so much in others'yards than these yards can no longer absorb the 'american' shit and 'american' nations have to keep some of their shit at home because elsewhere it is saturated.

That is the 'american' world for you.

Fri, 10/26/2012 - 04:48 | 2920859 TheFourthStooge-ing
TheFourthStooge-ing's picture

Not really. Chinese citizenism citizens have been shitting so much on their own roadsides that these roads can no longer absorb the Chinese citizenism citizen shit and Chinese citizenism citizen nations have to blob up some of their excreta abroad because their roadsides and public parks at home are saturated.

That is the AnAnonymous Chinese citizenism citizen blobbing up of aggregate excretionary output world for you. Roll up your windows and hold your nose.

Fri, 10/26/2012 - 03:33 | 2920822 AnAnonymous
AnAnonymous's picture

Friedman does not differentiate between some third world country and his own. The ultimate difference is that Friedman has created a model that sanctions and promotes the exploitation of his own country, in fact every country, for the benefit of the investor, money the uber-wealthy.


As stated many times, for 'americans', all is situational and it is all about staying on the right side of the fence, on the right side of 'americanism'.

Basically, this is what this 'american' reproaches with his flawed perception of 'americanism': everyone is equal before exploitation in 'american' economics.

Classical 'american' windows dressing.

'Americans' have invested much in promoting everything they felt could provide themselves with permanent barriers. Like racism which should have allowed people to be born on the right side of the fence indefinitively. Unfortunately for 'americans', that system is worth the resiliency of those born on the wrong side of the fence which is the natural limit to their 'american' entitlement mindset.

So now, breaking point is reached and new borders between the exterior and the interior have to be drawn again.

'Americans' resent equality everywhere but fields they perceive as negative.
Hence China land grabbing over Tibet has to make the Chinese equal to 'americans', even though in terms of land grabbing, no equality can be reached here.

As such, there is no equality in being on the wrong side of 'americanism' and being on the right side of it.

The article is one raving attempt by a member of the 'american' middle class whose status is jeopardized by the lack of resources world wide to sustain the 'american' way of life to make a situation universal.

Classical 'americanism' classwarfare with the middle class using the lower class as a stepping stone.

What the 'american' author laments is the very fact he is less and less a member of the 'american' gang. Therefore doomed to be preyed by the 'american' gang.

'America' is a big club. Pay your membership fees or jet. It is as simple as that.

Welcome to an 'american' world.

Fri, 10/26/2012 - 09:39 | 2921215 onebir
onebir's picture

Ye huanying dajia dao gongchangdang de tiantang!

Fri, 10/26/2012 - 04:05 | 2920840 Arbysauce
Arbysauce's picture

Sorry, calling bs. Not a single Friedman quote to support all that. Who is "james kennedy, economic consultant"? I cant find anything else he has written.

Fri, 10/26/2012 - 04:40 | 2920855 Heyoka Bianco
Heyoka Bianco's picture

"We are at the end of human evolution, we have become chattel. We are conditioned to the service of those with money, who only seek to enlarge their store of money, to beget money, for money’s sake and nothing more. The future is grim."

And this differs from any time since hairless apes started walking up right how exactly? The end of history has been declared many times, and those declaring such have always had cause to regret doing so.

The whole span of human history is an evolutionary eye blink. Humanity has certainly weathered the collapse of many a powerful political economy before, and, sans the Flame Deluge, will do so again.

Fri, 10/26/2012 - 04:48 | 2920858 The Heart
The Heart's picture

Here is something you all must know. Our govt is getting ready to not only declare more war on Syria, Iran, Russia, and China, but also they are going to declare war on you, the American people. What kind of evil insanity is running this ship into the ground is well known and yet, the stupid sheeple keep electing these psychopathic-things who profit from war, kow-tow to the zionist agenda, and have us ALL on the hell bound train to kill America fast.

At last, someone with some real fortitude explains it to you all in “JWO Unmasked” It’s all one who actually cares needs to KNOW and UNDERSTAND.

For years we have told people what is coming and have tried to prepare them to grow foods and provide for themselves. For years we have told you that the US Military (“stupid useless brutes"-kissenger) have been set up to lose a world war by being depleted and worn down after ten years of going all over the world being nazi germany 2.0 on steroids. The mission has been accomplished. Americans are hated all over the world. When america falls to itself and the stupidity of the brainwashed multitudes, the world will rejoice. Whoa unto you o’ israel. (Here israel means, God’s people)

You all better tell the military they better stop killing and murdering for the rothschild bankster empire of elitists and globalist zionist oligarch pigs and their god money because they are ALL BEING SET UP FOR Nuremberg type trials in the courts of the new world order at the Hague. When it is all over and they have performed the evils they are being ordered to do, the globalists will turn on them and arrest all WHO ARE LEFT that partook in the atrocities, war crimes, and murders they are being ordered to do. Remember military guys and girls, following orders was NOT an excuse for the evil wickedness and killing performed by those nazi’s at Nuremberg. They hung! And, what part of “Thou shalt not Kill” do you not understand?

America, know your enemy. Here is a scary truth that was foretold. We said many years ago during the Iraq invasion that the “Juba” sniper videos on the net were done by the zionists to kick up anger amongst the troops and those at home (usa) that saw them. It worked well. We told you that the idf were the only ones with camera scope technology at the time and spoke to this exact reason for doing the evil sniper killing. (Put “Juba” into the U-tube search)

From the article below:

“One IDF sniper team has spread stories around Israel that they killed 400 American troops inside Iraq.”

“They brag about it constantly. It gets back. We are not deaf.”

By deception they make war for the profiteering puppeteers. What is a real shame is how israel has also been set up to go down and most Jewish people do not understand they are also tagged as useless eaters and breathers and are on the slate to be part of the population reduction agenda. Zionist stooges WILL fall to zionist evil.

In this time and age information can be the difference between life and death. Knowledge is power if you use it. Most people do not believe in death so they live their lives in a melancholy of disillusionment that thinks like we will be in Disneyland forever. If you ever saw war or real dead in your face, you would hear this voice seriously. What fools people are to ignore the real facts and actual signs of what is coming.

What is even more sad is seeing so many struggling and stressing things like school when in the not to distant future, it will not matter at all. It's like learning to be a brain surgeon, and then suddenly being thrown into a rugby ball game. Mere survival alone will be the most important thing on most people minds. Food will be used as a weapon to disarm and quell the hungry masses whose god has suddenly become the stomach. Many will perish because they refused to see the light and prepare for what is coming. May God have mercy on a civilization that allows this evil to succumb them.

Read this new important story that tells you what is coming and pass it on. Most of all, start preparing for the well planned martial law clamp down, loss of freedom, and an end to normal daily commerce. Help your neighbors too. When the stores close and there is no food or supply, WHAT ARE YOU GOING TO DO? Are you ready for this??

National Guard Whistleblower: “Doomsday Preppers Will Be Treated As Terrorists”:

Can it all be stopped?

Please people of the world, it is not too late to learn to live in peace as one people with individual purposes, identity, liberty, and free state governments. Take Iceland for an example. Only the globalist zionist banksters keep us all divided and separate living in shortages for higher profits. There is plenty to share and everyone world wide can have plenty. We must all know that in spirit, or what we are, we are all One and we can all get along just fine without the banksters and their puppets, the murdering evil war profiteers and plunderers for their god money.

Pray that those who are part of this money-god beast and the evil falling empire it is, see the light and DO the right thing when the time comes to act. Wield your double-edged swords for truth and real justice. Pray that real law enforcement people DO their job because corruption, theft, graft, killing and murdering, and anything contrary to the US and State Constitutions that harm anyone or any property is still against the Common Law and NULL AND VOID no matter what they tell you, or get you to actually believe. Know ye this truth; satan is an evil trickster.

May God (Love) and the angels guide you ALL but most of all, may you get jiggity NOW and prepare yourself mentally, physically, and spiritually for what is really possibly coming...soon!

Bless'ed Light.


Fri, 10/26/2012 - 06:47 | 2920918 Arbysauce
Arbysauce's picture

Hey Heart...don't you realize the jews are controlling your brain *right now*? You are playing right into their hands douchebag.

Fri, 10/26/2012 - 05:10 | 2920873 Sandmann
Sandmann's picture

It is a truly funny world. NATO destroyed Ghadaffi who had come to an MI6 deal with Tony Blair to protect Libya from Al-Qaeda after his death. Cameron-Obama-Sarkozy topple his regime and let Mali become another Afghanistan with Obama telling Hollande to sort out the French Colony Mali. Hollande wants to dive into the French Colony Syria in fact but Obama holds off. Russia moves Surface-Air Missiles to the Turkish frontier to protect civilian airliners. Iran is selling oil to Turkey for Turkish Lira (see Die Welt 26 Oct) and then buying Gold from Turkey for trading with Lira. Iraninan businesses are re-flagging in Turkey to circumvent sanctions. Iran is supplying Syria over Iraqi airspace. Iraq warns Turkey not to interfere in Syria. Iranian Revolutionary Guiards are in Syria asare French and British special Forces. The Muslim Brotherhood is strong in Homs and had to be dealt with before by Assad Sr. Egypt stops truckloads of Libyan weapons en-route to Gaza. Russia says rebels in Syria have SAMs from Libya.

Somewhere these clowns in NATO and Foggy Bottom have stirred up a real cauldron. We read that Britain will not allow UK bases to be used for an attack on Iran because of legal opinion showing it would breach international law and invite the International Criminal Court to indict British politicians - US is not a signatory.

The wheels are coming off this waggon.

If the US gets involved in Syria/Iran it cannot expect India not to look at Pakistan or China to flex its muscles in Asia. It might end up like Britain in 1938 wondering how it could fight Germany + Italy in Europe and Japan in Asia simultaneously after the USA blinked over USS could be the final nail in the coffin of US power


Fri, 10/26/2012 - 07:59 | 2920877 Radical Marijuana
Radical Marijuana's picture

Generally excellent article, within its own frame of reference. However, as several other comments above already pointed out, the privatized fiat money system was restarted in the USA in 1913. The statistics do demonstrate that system took off from the 1970s, in an almost perfect match to the mathematics of exponential growth.

I also believe that the ending of that article was far too optimistic, when it concluded that:

The predictable long term outcome is a steep decline into a very dark Monetary Feudalism.

I expect the trajectory we are on will become much worse than Feudalism. Feudal Lords needed their serfs. The banksters only need machines.  The people the banksters still need are the police and army, but those will be replaced by robots. The banksters are going to attempt a total global consolidation, which requires wiping out opposition. Therefore, the predictable long term outcome is genocidal war, and democidal martial law. This runaway will not return to Feudalism, instead, it will deliberately kill off the majority of human beings, which that system no longer wants or needs to be its serfs.

I can not see any way to prevent that from happening, as this article correctly stated:

Without any restraints most growth oriented systems, such as a virus, tend towards uninhibited growth.  With no means of restraint, equilibrium becomes impossible.  The single-minded focus on the growth of money compromises all other systems in the economy. ...  The future is grim.

Indeed, I have studied the problems identified in this article for several decades, and worked on them quite a bit, through several prolonged political action experiments, and court cases, only to become 100% objectively depressed, since the more I learned, the worse it always got. The central core, lynch pin, or keystone to everything was the funding of the political processes, and therefore, that has been the thing that I most studied and worked on.

As this article stated:

Why did the U.S. Congress change the law that protects our economy from a second 1930s type depression? Simple, it was campaign contributions. It was from the decades-long cash infused orgy of conflicted interest that Congress finally entrusted the financial industry with “self-regulation.” ... money-counters ... co-opt everyone.  First the academics and think tanks then one political party after the other.  The media was consumed and consolidated by large corporate conglomerates who quickly enforced their own interest’s at the editor and programmer’s desk.

GIVEN THAT THOSE ARE THE SOCIAL FACTS, THERE IS PRACTICALLY NOTHING THAT CAN BE DONE TO STOP THIS RUNAWAY FASCIST PLUTOCRACY JUGGERNAUT FROM TURNING MOST PEOPLE INTO ITS ROAD KILL. It is now only a question of time until the global consolidation of the banksters' triumphs goes through with measures that kill off the majority of human beings. The worst science fiction nightmares are coming true faster and faster!  "Trading" in the "free market" is already overwhelmingly dominated by computers. The military and police are gearing up as fast as they can to become robotic.

As usual, I WISH that I did not believe what I do, and I WISH that I felt that I was exaggerating, but, in this context, I probably am understating the situation, since the most advanced aspects of this are being kept secret ... One only has to look at the many articles that have been featured on Zero Hedge regarding the awesome advance of computer driven trading,  to see how recently that has become a real runaway, and then, there is this timely article, about the robotic and/or drone killers, which were recently let loose to operate inside the United States:

The pyramidion people, I believe, have also lost control of the system they built. Eventually, they will also be destroyed by that, as the economic and military activities become more and more done by computer/machine entities. There has evolved a combined money/murder system that is going classically GI/GO. We are programming computers and robots to take control of the money system, and the murder system, and those are being programmed to not care about human beings, but only care about numerical abstractions. Our entire civilization has become astronomically amplified, Garbage In/Garbage Out, and human beings have defaulted to defining themselves as the Garbage. Since everything loops around, back on us, and our civilization is based on huge lies, backed by violence, and we are getting better and better at that, and enabling computers and machines to take over doing that, we are terminally screwed up!

The politicians only have to fool enough of the people enough of the time, which is way too easy for them to continue doing. The system has become so totally corrupt that many of the people who are no longer fooled decide not to bother to vote, since their only real choices are the lesser of evils, which they despise. The voters have no truly better choices available. No genuine opposition groups can compete with a trillion dollar mass media empire against them, running a political puppet show starring puppets with billions of dollars to spend. Enough of the people are nothing more than Zombie Sheeple, voting for the political puppets, that will keep the established systems growing. It is almost impossible to have a saner public debate about any of those problems! Science fiction is becoming FACT faster than just about everybody previously predicted, and that is happening along the path of least resistance, to create the worst possible nightmare future for human beings imaginable. The only theoretical solutions are to make a greater use of information, with higher consciousness, to operate a better money/murder system. However, there are no good grounds to believe in such a series of political miracles (although, I still try to vainly keep my irrational hopes alive.)

As I said, everything within this article appeared to me to be correct. My quibbles are that the problems started before that article says, and therefore, the outcomes afterwards will be way, way, way worse!!! The basic problem was that human societies developed their ability to control themselves primarily through frauds, backed by force, and we have applied science and technology to get way, way, way better at controlling ourselves with frauds, backed by force!


MONETARY FASCISM BOILS DOWN TO FRAUD BACKED BY FORCE. That started long before the 1970s, although the exponential growth take off of that became much clearer since then. That process is now continuing its astronomical amplification, through more exponential growth, enabled by computer/machine entities, that more and more are taking over the money/murder systems! However, those computer/machine money/murder systems are STILL GI/GO because their numerical abstraction programming IS BASED ON FRAUD!

Controlling civilization with huge lies drives it MAD, and that madness will go through psychotic breakdowns, which become as genocidal and democidal as the worst science fiction nightmares have ever imagined. Only some series of political miracles could prevent or ameliorate that. Otherwise, we are on an automatic accelerating runaway towards tragedy.

Fri, 10/26/2012 - 05:57 | 2920896 jack stephan
jack stephan's picture

Auctioneer: "Are there no further bids for this exquisite galaxy. Sold! To the being of inconceivable horror."
Being: "Muhuhahaha! Will a money order be ok?"
Auctioneer: "Yes."
Being: "Muhuhahahaha!"

Fri, 10/26/2012 - 06:09 | 2920900 jjsilver
jjsilver's picture

MONEY: The 12th and Final Religion

The Moloch is the God of money. The book MONEY: The 12th and FINAL RELIGION tells about this God that can neither pardon nor forgive. Israel was not intended either as a people or a place name. The Cosmic contract to prosper in harmony with nature during human progress has been set aside to favor the usury of God Moloch, and the Temple of Central banking known as the Federal Reserve System. The religion of God Moloch dominates all other religions as it is the only universal religion recognized by all and known as MONEY. A preview of the book is in the videos.

The book, THE AMERICAN CALIPHATE; A General Theory of BIZWOG (British-Israel Zionist World Occupation Government) speaks to the United States as a country under foreign occupation. The control of US markets and finance by the quiet subversion powers of London city and Tel Aviv and complicit US academia and corporations is a wonder of the world. The Pentagon is a useful tool. The advances in the science of mind control in advertising move to convert the once independent citizen into the perfected value free consumer. Presidents are assassinated and humiliated and elected as suits the needs of BIZWOG. Mayan Prophecy speaks to these days as the time when tools will rebel against their user. I write from experience and imagination. Videos are useful for understanding.

Fri, 10/26/2012 - 06:34 | 2920910 Wakanda
Wakanda's picture

"The State must answer to the public, or at least the mob."

I call bullshit.  The people who have a monopoly on violence in a geographic area (the state) can choose to use that violence or fear of potential violence to answer to no one but themselves.

A Kennedy from Counterpunch defending the state.  Why does that seem creepy?  : (

Fri, 10/26/2012 - 06:30 | 2920911 Professor Fate
Professor Fate's picture

This article is an exceptional collection of drivel.  Milton Friedman would have let every one of the damn banks they should have.  The problem isn't the capitalists.  The problem is the (welfare) state.

"Push the button, Max"

Fate the Magnificent

Fri, 10/26/2012 - 06:53 | 2920925 Withdrawn Sanction
Withdrawn Sanction's picture

This long-winded breeze through the facts does not support the author's claims that Friedman is the intellectual root of today's ills.  The claim may very well be true; it's just not supported in this article.

The author simply states, for example, "Friedman’s ideology undermines State sovereignty by initially delinking the aggregation of wealth from the interest of the state."  Fair enough.  Now support that claim w/some evidence from at least one of MF's many articles and books.  A sentence snippet or a short citation into just one or two works would do.  Indeed, it can probably be done.  It's just that this author did not even attempt to support his claims.  Rather his argument substittuted repeated claims for evidence, hoping I suppose that repetition would transmute the claims into evidence.

I am no fan of Uncle Milty.  His biggest policy failings, in my view, were to be the father of income tax withholding (obscures the real cost of government from the taxpayers), and the earned income tax credit (or negative income tax, which destroys incentives).  His biggest intellectual failing was his work on Positivism, and biggest economic failure was his rule-based monetary policy based on a crude quantity theory of money foundation.

Fri, 10/26/2012 - 09:11 | 2921136 Radical Marijuana
Radical Marijuana's picture

The elites just cherry pick from the think tank ideas. Typically, most good ideas that someone has are never implemented, while most bad ideas that they had get implemented. Often, what that person would have done gets edited in half, and thereby transformed into becoming practically the opposite of the whole package of notions that they were systematically thinking about.

Fri, 10/26/2012 - 07:13 | 2920936 Nimby
Nimby's picture

"Super PACs may raise and spend unlimited sums of money from individuals, corporations, associations, and other interest groups to “overtly” advocate for political candidates.  A recent example of how disruptive this is demonstrated by Sheldon Adelson and his wife’s $10 million contribution to Newt Gingrich.  The Aelson’s ‘legal’ Super PAC contributions were able to keep ‘their candidate’ in the Republican Primary single handedly.  Gingrich had no meaningful support beyond this single patron.  Democracy?  Representative government?"

Gingrich had no meaningful support from the electorate, either.  It's Mr. Adelson's right to waste his money as he sees fit, just like it is your right to waste you time putting together this screed, and it's my right to stop wasting mine.

Fri, 10/26/2012 - 07:20 | 2920941 SWRichmond
SWRichmond's picture


Note the date.


This system relies utterly on respect for private property. That respect for private property is embodied in a judicial system to which all contract parties agree to be bound, and from which the parties can mutually expect rigorous enforcement of the terms of the contract. It is only under such protective circumstances that capital will venture forth; it is only under such circumstances that savers will loan their saved work and make productive economic activity possible. It is absolutely vital that this be clearly understood: failure of the legal system to respect private property and enforce contracts is the death of capitalism.

Fri, 10/26/2012 - 08:00 | 2920968 luckylongshot
luckylongshot's picture

It is hard to avoid concluding that the monetary fascists knew all along that their system would collapse and are setting the stage for some catastrophe that they can use to stampeded us into agreeing to something truly obscene like their single currency and rfid chips...however all these problems could be solved by governments taking back the right to create their own money and issuing fiat money linked to productivity...Europe ran this way without problems for 500 years..

Fri, 10/26/2012 - 08:06 | 2920976 Clever Name
Clever Name's picture

While I agree with the overall premise of the article, that capitalism has been coopted for and by the rich (what else would one expect?) I have a problem with one of the foundations.

If we (the citizen/voter/consumer) truly have a say in the matter, which is debatable, then it is ultimately OUR fault for letting this happen. We are the 'mob'. We have let this happen to us. This entire premise assumes that money in politics changes everything, and that the people have no say in it at all by willful ignorance or just plain stupidity. While this may be (is...) 95% accurate, who's fault is it ultimately?

Look around you. The sheep you pass in the streets every day. Those who vote to uphold the status quo by remaining in the false red/blue state of mind. I have thought in the past that "We get what we deserve". I can now only think that "We get what we want". If there is no accountability for any in government for perpetual wars, insane debt levels etc., then who is to blame? This is not "The Matrix". It is the matrix. We have not been completely blinded from the truth. It is right there in front of our faces, but we (the citizenry as a whole) are unwilling or unable to acknowledge it. If we (they) will willingly accept anything we see and hear on tv or from the MSM and not question a thing, it is our own fault, so the results are by our own making.

Even if we assume that our votes do not matter, we still have our wallets and our free will. We/they can limit participation in the scheme as much as possible. Dont buy goods made in China, or whatever.

We can point the finger up at the elite/politicians all we want, but it is ultimately the sheeps fault. They are all around you.

"What do you get for pretending the danger's not real.
Meek and obedient you follow the leader
Down well trodden corridors into the valley of steel.
What a surprise!
A look of terminal shock in your eyes.
Now things are really what they seem.
No, this is no bad dream."

-Pink Floyd 'Sheep'

Fri, 10/26/2012 - 08:34 | 2921027 WhiteChrist
WhiteChrist's picture

It is the fellowship of White Christ, and its insiders are the law. We have no say in this. There is not naught for any to do but buy till the Kingdom come. Buy any goods He looketh kindly on. We get what He wisheth whether we like it or not, as 'tis of the best. This is not a bad dream, but the beginning of His Kingdom. We must put aside childish dreams of freedom, folkdom and selfhood. Blessed be His mains that be, the great ones of the Borough and Wall Street, for theirs is truly His work.

Fri, 10/26/2012 - 09:19 | 2921158 Radical Marijuana
Radical Marijuana's picture

I too rail against the Zombie Sheeple, however, it is unfair and superficial to stop there. What we are really up against is the advancement of the methods of organized crime, working behind the scenes to take control of governments. Unless you have an equally capable assassination squad, that could ferret out who was ordering the people's champions to be assassinated, when those few good politicians refused to be bribed or intimidated, then you really can NOT stop the process from being taken over by those who are the best at being dishonest, and backing that up with violence, winning by acting behind the scenes.

It is NOT just that there are no good politicians, because voters are idiots. It IS that any good politicians were systematically discredited and destroyed.


In fact, the only realistic choices, in realistic politics, MUST include the question, "what is you murder system?" or "what are your death controls?" The answers to those questions explain the reality of the runaway fascist monetary system, and any genuine alternative solutions MUST provide better real answers to those question, which can NOT be that there should be no such systems.

Fri, 10/26/2012 - 08:12 | 2920987 rustymason
rustymason's picture

"... the investor (money to be more precise) has no duty, obligation or covenant to anyone or anything."

Ah, brings back memories of all that Peter Drucker "wisdom."

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