Guest Post: Let's Have A Depression Now

Tyler Durden's picture

Originally posted at Monty Pelerin's World,

The United States is more than four years into its form of economic purgatory. The government pronounced the recession over in June of 2009. That announcement does not conform with reality or even subsequent government suspect data. Even the Administration-friendly New York Times knows better:

Between June 2009, when the recession officially ended, and June 2011, inflation-adjusted median household income fell 6.7 percent, to $49,909, according to a study by two former Census Bureau officials. During the recession — from December 2007 to June 2009 — household income fell 3.2 percent.

To believe the recession ended requires a bizarro interpretation of economics where bad is actually good and good is actually bad.

21st Century politics sees no need for truth. When government believes itself to be responsible for the economy and convinces the people of that, it has put itself into a box. In a world where government claims credit for good things, bad things ultimately become their responsibility as well. Recessions are bad things which government should not have allowed to happen or should fix quickly.

The reality is that government does not create wealth or economic abundance. (They can create poverty, however.) When recessions occur, they threaten the myth of all powerful government. The first reaction of government is to do something regardless of whether something makes sense or not. The second phase is to declare the problem solved (in this case, claim the recession ended).

This kind of politics is dangerous on two counts. First, government risks what little credibility it has left (which I might say is not necessarily a bad thing). Second, it causes government to pursue policies which reinforce its lies. It is these policies which created the current economic crisis in the first place.

The country’s economic problems began decades ago. In trying to cover them up with economic interventions (stimuli), government actions prevented the economy from correcting the imbalances that caused slow growth. From a political standpoint, economic policies encouraged institutions and people to use debt to live beyond their means. The massive debt buildup in both the economy and the government hid the underlying problems and allowed them to grow ever larger and more malignant out of sight.

After decades of such interventions, the economy no longer is able to function efficiently. In order to remedy the problems, massive liquidations of debt and misallocated assets are necessary. There is no other way to achieve an economic cleansing. It may be possible to continue this economic charade with additional interventions, but there is a limit to how far it can be continued. Japan has achieved zombie existence for over two decades by refusing to face up to the imbalances in their economy. Our government has chosen the same course of “extend and pretend.” There is no hope for a recovery until something like another Great Depression liquidates the built-up imbalances.

No politician wants to be in office when that event occurs. Thus, they make matters worse for the country by continuing to spend money we don’t have to prop up an economy that cannot and should not be saved. Their goal is not to repair the economy but to ensure the most favorable terms for their own re-election. As a result they continue to savage the future of the country in order to protect their own present.

People will eventually regain control of their government. They always do. Unfortunately the process of history is slow and sometimes ugly. Multiple generations around the world have never known freedom. China and the Soviet Union are two examples that are just now transitioning toward freedom. Are we to enter some institutional dark ages where our grandchildren and their grandchildren do not experience freedom? It is possible because all governments prefer more power for themselves and less liberty for their citizens.

The required change is so great as to be analogous to an addict trying to break his habit. Most addicts have to hit rock-bottom before reality intrudes. In the case of the US, we are going to hit rock-bottom when the economy collapses. That is likely to be within the next ten years and could be at the front end of that estimate. This world-changing event may (at least temporarily) drive a stake through the heart of big, oppressive welfare-state governments.

There is no guarantee that government will shrink when this happens. Civil unrest is a likely outcome. Statists may attempt to use the crisis to further expand government. Martial law and other restraints are likely. Hitler used a similar situation to rise to power. Parts of the Constitution were emasculated under New Deal policies that “had to be done” to pull us out of the Depression. Of course, we never got out of the Depression until after the end of WWII.

Economic pain and suffering will be great. Yet the economic calamity is unavoidable. It was pre-ordained by years of government interventions. Mathematical and economic laws will not be avoided. As stated by Ludwig von Mises:

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

We are coming off the biggest boom in the history of the world. If Mises was correct, and I believe he was, then Keynes was wrong (and I believe he was). Thus far all the Keynesian dollars expended have had little effect other than to make this country poorer. We are set up to have a Depression greater than the one in the 1930s.

A Depression is not a good thing. Yet in this case, it may be the one event that can prevent a chapter in future history books entitled “The Demise of the Great American Empire.” Unless citizens and politicians return to their senses, we will be both impoverished and living under tyranny.

A reaction opposite that of the 1930s is a hopeful outcome. Despite the recent election, government is increasingly seen to be the problem. It is no longer viewed reliable, trustworthy or as a solution. Freedom is deeply ingrained in the American culture and most of us recognize how much we have already lost. The resurgence of books such as “The Road to Serfdom,” “Atlas Shrugged” and others similar indicate the public is interested. Historically low poll numbers for all politicians and the rise of the Tea Party movement are further indicators. The economic trauma may provide the catalyst to return to the founders’ concept of government.

Totalitarianism needs the military. More than any other segment of society, the military respects and supports the Constitution. If push comes to shove, they are likely to defend the Constitution rather than the government.

Government has reduced itself to little more than an insolvent zombie, staggering around awaiting the coup de grace that will end its misery. The coming economic collapse is that executioner. When collapse happens, efforts to increase government are will occur. They must be resisted strongly. The love of freedom and the experience with big government should overcome decades-long madness. No matter how things evolve, in the history books of the far future, there can be no better title to describe our current situation than “The Myth of Government.”

If we must have a Depression, let it begin today. It will be hard and dangerous, but it may be the last chance to get our country back. When it happens, we must all think and behave like Founding Fathers. To paraphrase Rahm Emanuel, this crisis will be too important to waste.

The “greatest generation” handed us a gift and we fumbled it away by allowing government to run wild. We cannot turn this mess over to future generations. We must take our country back and remedy the problems.

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Lednbrass's picture

If by "gift" the author meant "ticking bomb", then sure- they are the ones that sowed the dragons teeth of government gone nuts then died as they sprouted.

bunnyswanson's picture

If we did not have the internet available, we'd not know much of what was hidden from "the great generation."  

Without a news source that informs the people of an accurate sequence of events and the people who are involved (investigative unbiased journalism), it is hopeless to expect anything but what we have today.  Last minute news, when it is too late to contact your representatives to object to life-changing legislature being passed, is the best I have seen coming out of MSM. 

Boycotting the media may work but half the citizens do not even watch the news:


On a typical day...

  • 57% of Americans watch TV news
  • 54% watch their local news
  • 34% watch cable news channels
  • 28% watch the nightly network news
  • 23% watch the morning news programs (The Today Show, Good Morning America, etc.)
  • 40% of Americans read a newspaper
  • 36% of Americans listen to news on the radio
  • 23 % of Americans get news online
  • 18% visit news aggregators (Google News, Yahoo! News, AOL News, etc.)
  • 14% visit national TV networks' sites (,,, etc.)
  • 14% visit newspaper Web sites
  • 4% visit news blogs
  • 3% visit online news magazines (,, etc.)
  • (2006)

    Jugdish's picture

    We won't be so lucky. The Golden Age of America 1946-2001 is over. Bit by bit your lot in life will become shittier and shittier. Incrementally and tightly controlled so as not to arouse your anger. The Matrix has you. You will not escape. Do your time on this spinning rock and pass on. No golden age awaits you here. Look around. The vast majority love the game, the theft, the lies, the deciet, the freakshow media and hollywood, the casino-gulag. If you don't the lie you are in a very small minority and your fantasy of a new way of life are just that - fantasy. Hopefully I will be proven wrong.

    HelluvaEngineer's picture

    The future of America depends on small groups of strong-willed people who are able to keep their fucking mouths shut.

    Just IMO.

    NidStyles's picture

    What Engineer said, it should be something everyone understands already. Just shut your trap and do what you need to do. No one needs to know what goes on when you are not around them.

    sschu's picture

    It is naive to think that a depression or economic collapse will result in smaller government and more freedoms.  History points in quite the opposite direction.  

    The love of freedom and the experience with big government should overcome decades-long madness.

    Anyone who believes this gibberish is a fool.  More and bigger government with freedom-limiting rules and regulations will be the result of our folly.

    Power is the ultimate elixir, government provides this power to those who seek it.  Warnings have been forthcoming for a long time, too bad we did not heed them.



    NotApplicable's picture

    Worse yet, this guy uses Hayek and Mises as his role models.

    I would make a guess that he's making a disingenuous effort to smear the two, but sadly, the incoherence of statists provides all the motivation needed to explain his brain fog.

    Statism, enslaving mankind via violence in order to create Utopia. Yep, that's a great fuckin' gift all right.

    Thankfully it's almost beer-thirty.

    Anusocracy's picture

    I prefer to use the word control rather than power. Power is a bit of a euphemism, whereas control explains exactly what government does.

    Control is a powerful survival adaptation in nature and in human organizations.


    Yen Cross's picture

     All those desperate,so called technicians keep talking about how cheap the SPX is at just over $10 multiples... Look at volume and net outflows!

      The fiscal cliff is a joke! Demand isn't there to support the kinds of multiples that these clowns are looking for. The fiscal cliff is a lose/lose scenario. Either way revenue is going to get taken out of the economy. 

      The SNAP Card /Entitlement economy, needs to be trimmed! The monkeys in Washington know how out of control things are.... They're just spineless puppets!

    blindman's picture

    did someone mention the math of debt as money
    at interest in a fractional reserve setting,
    all controlled by a private central bank makes
    everyone a slave to the bankers? it is getting
    old and obvious? no?
    oh right, it is the government that need be
    demonized. the idea of it, the meaning of it
    destroyed. ok, government as enabler of the overriding
    financial concern should be destroyed and humiliated
    for the prostitute that it may become but the idea
    and potential of government must be differentiated
    from this model or conceptual system. we the people
    does not translate in any equivalency to "we the
    fucking central banks" ! cia ( read the bankers )...
    Guns and Butter
    Friday November 30 9:00am
    1 hour
    keywords: financial concern vs commons. public
    vs private. underwriting. "creamin' it".(the artist
    taxi driver). war for profit, ongoing.
    regarding the existence , or not, of the devil.
    Tom Waits - Heart Attack and Vine
    it starts out ..." liar, liar with your pants on fire .."
    and just goes to ,
    gets to the point from there.
    " ...bonnie's high on china white
    shorty found a punk
    don't you know there ain't no devil
    there's just god when he's drunk
    this stuff will probably kill you
    let's do another line
    you'll probably see someone you know
    on heart attack and vine ",, ....t.w.
    stop me if you've heard this one before....
    these simple words lead to a world, inexorably
    and forever recurring yet gone for better or worse.
    so, there ya go. left with a lyric from a song, a play
    from a tired room, an argument tied to a paycheck
    or a horse in a race where the jockeys have been drugged.
    speaking of jockeys ....
    Screamin` Jay Hawkins - Heart Attack & Vine
    Tom Waits - Heartattack and Vine ( the original version )
    iv'e found this last version does not get old, odd.
    Jockey Full of Bourbon
    and to tie it together, the lead scientist sighted by
    the "authorities" supporting the notion that vaccines
    are not associated with autism happens to be on the
    most wanted list for committing financial fraud of some
    sort. i'm shocked. don't know about u
    Gary Null - The Natural Living Show
    Friday November 30 12:00pm
    1 hour

    hannah's picture

    cant tell you how many times i have been told that the 'greatest generation' ceated the world. cant tell you how many times i have been told by a person that age that tells me they are owed somthing...greatest generation of entitled spoiled 'i got mine'.

    Parrotile's picture

    In Australia, they are the "I've got RIGHTS Mate!" generation - a phrase I hear every day at work in Secondary Healthcare.

    Seems the "Rights come with RESPONSIBILITIES TOO" message has been conveniently forgotten . . . . . Responsibilities nowadays are firmly in the "Someone else's problem" basket.

    Anusocracy's picture

    The Lucky Country imported too many socialists from Europe and third world countries.


    DaveA's picture

    There's a right time and a wrong time to have an economic collapse. If you're over 85 and taking dozens of pills just to stay alive, die happy, you had a good run. If you're under 50 and in good health, fight your way through the chaos and build a new life on the other side.

    If the collapse hits just after you retire, you're screwed. All the savings and pensions you worked so hard to earn are gone. Stake out a good dumpster and defend it to the death.

    Things that go bump's picture

    And death won't be long in coming, because that is the age when the bill comes due for the all the deadly sins you have indulged in during your ill-spent life.  

    Dasa Slooofoot's picture

    More than any other segment of society, the military respects and supports the Constitution. If push comes to shove, they are likely to defend the Constitution rather than the government.



    NotApplicable's picture

    And even if it were to be true, those kids will all be too busy chasing down brown people in some far off land.

    Well, except for all of foreigners serving in order to get a green card. They'll keep them around here in sufficient numbers. Even the failed General Washington understood that when he ordered the "Whiskey Rebellion" suppressed.

    MedicalQuack's picture

    We also need to put a stop to dirty code and algorithms, like the banks use that CEOs can't understand and those algorithms seem to keep losing their (our) money. 

    Quotes from the video: “with software you can do anything but not so in real life”…”you become so isolated from the real world”…”making money is like a drug”…”you are just so much better than anyone else”…” I used to be a computer programmer at a major player  on Wall Street that is no longer among us for obvious reasons”…”I did the plumbing, not the model itself but the infrastructure surrounding the model”…”I could do it sleeping”…”why I decided to stay off camera and anonymous”…”we sold the software to all the investment banks”…”I left in 2000 and after that it went nuts”…”CEOs are actually fantastic instruments when they slice and dice”…”I have to apologize to the planet (said the quant)”..”I have the ability to see patterns and abstract mathematical symbols”…(most programmers do)…”the managers just have to believe the quants”…”if it’s a hedge fund they are taking a percentage of the money even if you go bankrupt, they don’t lose money it’s the client’s money that is lost”…”wait a minute (developer) these guys are out of control (Wall Street)”…”because I was a technologist I did not fully understand what was going on”…”you have to have some kind of responsibility”…”If people don’t complain now, it serves them right (quant)”…

    ”people that are in the business now refuse to talk to the press as they would probably be fired”…”you have to be perfect and you have to be right all the time, if the software fails you lose millions and billions”…”it’s a lot of stress”…(that goes for almost any software development, healthcare included)…”you wake up and you don’t know what day it is”…”banking has completely lost touch with it’s purpose”…”sometimes the real world is just dirty (quant)”…'”Quant back to the drawing board and re-do your numbers change the math and make it look less risky”….”hide the risk”…”once you have too much mathematics, it’s difficult to see where the mistakes are”…”banking has become so enormous it has outstripped all other businesses when it should be supporting”…”hedge funds get the black boxes as close as they can to the exchange”…”a black box has a secret or a formula inside, stock prices, etc. that tells you what to trade”…”Google search, trading on what people are searching for”…”people say Goldman itself is a black box, we don’t know how it makes all it’s money”…

    Only video of it's kind...

    divide_by_zero's picture

    Far from handing us a gift, the "greatest generation" had a heavy hand in this shitshow.

    TimmyB's picture

    The author doesn't know what he is writing about.  The term recession has a technical meaning.  GNP isn't currently decreasing, so the "recession" as that term is defined has ended.  However, as we can all see, the recovery from that recession isn't very strong. 

    BTW this quote is complete nonsense:

    The “greatest generation” handed us a gift and we fumbled it away by allowing government to run wild. We cannot turn this mess over to future generations. We must take our country back and remedy the problems.

    If you don't think that "government ran wild" during WWII, when the government had complete control of the entire economy, when there were tens of millions of Americans serving in the military and when high taxes and huge government deficits to fund that war were the order of the day, then you don't know shit about history.  Keynesian spending was the order of the day, and when the author argues it doesn't work, but ends by claiming that its results were a great gift to us, he is arguing against himself.  

    Umh's picture

    You are right, but they started using the term recession because FDR was trying to avoid saying depression. I actually see many parrallels between FDR and Obama. Mostly I see that the people like being told it's going to be fixed by taxing someone else AND without costing them anything.

    DirkDiggler11's picture

    Perhaps the "gift" he is Referring to is the fact that half of the globe is not speaking German and the other half Japanese ?

    pfairley's picture

    Somewhat true. Paul Krugman made this argument that WW2 shows that even ill spent stimulus is good. That needs so much qualification it seems seriously in error. UK had a War stimulus and did not do as well as USA,struggling after WW2... a 1970's IMF bailout, and still struggling even with North Sea oil windfall. USA had huge exports in the 1940's to Russia. UK and other allies, making USA similar to China today except for the govt debt. USA exports with todays debt, & deficits paint a very different situation than the 1940's.

    Bansters-in-my- feces's picture

    " More than any other segment of society, the military respects and supports the Constitution. If push comes to shove, they are likely to "

    Too funny.

    oddjob's picture

    Lets just bypass any sort of accountibility or justice and proceed right to arranged public suffering. You are beneath weak, a spineless fiat apologist.

    woggie's picture

    man, is this right on. whether it's cultural rot, rampant socialism/marism, debt induced economic implosion or combo (probably) the dye is cast. i hope the real money realizes the reformation leverage is depression; it's been known to get heads straight real quick.

    newengland's picture

    And the irony is that those with most to lose are willing to pay the most, for the return of the Republic of the USA.

    honestann's picture

    The military will not defend the constitution against the predators-DBA-government.  Those predators have blatantly violated the constitution for decades, and nobody in the military has done anything I can see.

    All this optimism about people standing against tyranny is laughable.  People have not stood against tyranny in any significant way, and they won't, outside a few rare and isolated cases.

    What people don't understand, but the predators-class does, is that modern technology makes permanent tyranny quite possible, and at this point in time, almost certain.

    newengland's picture


    You are defeatist, a worthy wage and tax slave.

    My beloved reminds me that people like you and politicians can do whatever you like...until your dystopia arrives in our privately owned lane...and then he will blow your heads clean off.

    The USA is a Republic, not a kowtowing snivelling back stabbling socialist, communist, monarchist, corporatist bully boy girl. I pity your sort. Stay out of our way.

    honestann's picture

    No, I am not.  I left the USSA 3 years ago, and with great effort and expense created an almost entirely self-sufficient existence in the extremely remote boonies elsewhere on this planet.  I did my part, warning against tyranny, not supporting or sanctioning tyranny, and avoiding every last bit I could without being overtly suicidal.

    In all those decades I hearn virtually nothing but sanctions, defenses, apologies and justifications for tyrannny, authoritarianism, predators-DBA-government, predators-DBA-corporations and endless other fictitious entities claiming authority over everyone.

    I did not participate in the fads and stupidities that virtually everyone suckered for.  I never borrowed a cent, I avoided all debt, I always lived frugally, I worked 100 hours per week for decade after decade designing, developing and implementing new products and generally staying productive.

    In short, I stayed honest, stayed productive, worked my butt off, spent as little as possible, and saved as much as I could (in physical metals, which was just part of being honest and not supporting the fiat, fake, fraud, fiction, fantasy, fractional-reserve predators that virtually everyone else supports indirectly, if not directly).

    And when I saw that the vast majority of regular folks would rather defend, support and sanction tyranny, I explored the planet, found the best places in the most remote, extreme boonies, and chose the one most suitable to me.  And I moved.  And I took my savings and created a self-sufficient place, utterly disconnected from any corporate or government system.  And, in fact, invisible for practical purposes.

    The USSA is a republic only in theory.  In FACT it has been utterly taken over by predators who utterly ignore the constitution and even their own laws.  The USSA is pure tyranny of elitists, no matter what you choose to call it.

    And you are the problem.  All you who imagine mere words mean something, but the reality around you is irrelevant.  Well, indeed, on paper, in theory, the USA gives some lip service to all the right things.  However, in fact, in physical fact, and in actions, the USSA is pure, unadulterated tyranny.  And those of you who imagine words on some piece of paper will save your butt... are doomed, utterly doomed.

    I lived my life consistent with honesty, liberty, productivity and benevolence when nobody else around me did --- at least not consistently.  I earned my liberty at great cost, effort, expense and denial of the "easy life", and others around me did not.  I earned the better life that I will enjoy for the rest of my years.  Most others did not bother, and they will suffer the consequences.

    newengland's picture


    You ran away, rather than stood your ground and defend the Republic. The slaves you employ will plot your demise.

    honestann's picture

    You need to learn to SEE... and READ.

    There IS no republic.  If you believe there is one, you are terminally insane.

    Also, I would have been happy to remain and defend the liberty of people who value liberty and were willing to defend their liberty themselves --- no matter where in the universe they happen to live.  However, there seemed to be fewer than 10 people willing and able to do the same, rather than just talk about it.

    Where do you get your drivel from, anyway?  I don't employ anyone, and the only people trying to plot my demise are predators and people like you, who I have effectively escaped.

    woggie's picture

    let's speculate:

    if obama declared tomorrow he was unilaterally terminating the Constitution, where would the Congress and Joint Chief of Staffs stand? and, if they declined to support the Constitution, what and how many citizens would mount an opposition?


    honestann's picture

    Very few, if you mean real physical opposition.  Would many people moan, groan, write blogs and generally complain?  Certainly, just like everyone does already, about a great many issues.

    The fact is, the entire administration, congress and court system decline to support the constitution at least 5 days every week (RonPaul being the only exception).  They will continue to take an oath to the constitution, then royally and fatally destroy it every day.

    However, they will not openly say "we hereby discard the constitution".  Why would they?  They pass endless laws that blatantly violate the constitution.  The TSA, for example, is a 100% blatant offense against the constitution (4th amendment).

    Every single scumbag in congress and administration that the only honest, lawful, legal, legitimate, constitutional way the 4th amendment or any other provision in the constitution can be ignored... is to pass a constitutional ammendment.  They explicitly did not, they passed a stupid law that is 100% invalid, and they know that, and they have it enforced anyway... on tens or hundreds of millions of people every year.

    That is willful tyranny.  That is willfully discarding the constitution and their oaths of office.  They are predators.  Period.  The fiction that is called the USSA is pure predatory tyranny.

    And the final nail in the coffin is this.  The predators can do anything they want, and nobody will do a damn thing about it, as long as the predators do not say "we are masters and you are slaves".  Thus the sheeple have enshrined the predators by their silence and sanction and often willing support of tyranny.

    What matters is reality, not words!  Why does nobody understand this?

    newengland's picture

    Good luck to you and yours, ann.

    The Republic is made of sterner stuff, the 3%. My land, my neighbors. Our values.

    'The cynic knows the price of everything, and the value of nothing.' (Oscar Wilde)

    When you are surrounded by slaves who want to kill you,  ask yourself why you put money above values.

    honestann's picture

    I treat my neighbors honorably, and get along with them vastly better than any westerners (or easterners) I've ever met.  They'd rather take a bullet than risk someone harms me, and I feel the same way about them.  Of course, when I say "neighbors", you need to understand how low the population density is in the areas I considered - typically 1000s to 10000s of square kilometers per human being.

    PS:  You do not read (or else comprehend) what I write.  I spent most of my money in order to establish my independence and self-sufficiency.  If I loved money so much, I would have kept saving it.  And if you consider "federal reserve [debt] notes" to be money, you should have noticed that virtually 100% of my savings were physical gold, silver, platinum (that is, "real stuff", not what you likely consider "money").

    What I have now is worth more than money: liberty, safety, security, self-sufficiency, and honorable neighbors.  Oh, and my own dinky little 650 pound (dry), 75mpg high-tech aircraft that can take me anywhere I want to go, when I want to go (even 4000+ km non-stop), including across artificial, fictional borders (which I do often, and always without approval, paperwork or predators involved).  I have more liberty in my little finger than anyone who talks about any so-called "republic".

    honestann's picture

    It is you who live where the slaves want to kill you... very slowly though, as they bleed everything they can from you.  You live in the predator-parasite controlled nation, where they bleed producers dry... producers who stand for it because some fool on some media channel calls it a "republic".

    If you're a producer, how sad for you.  If you're a predator or parasite, you live in paradise.

    Anusocracy's picture

    Because there is no room for reality in most people's heads.

    There is mentalist cognition and mechanist cognition and your brain is mechanist while most other's are mentalist.

    Mentalism and Mechanism - the twin modes of human cognition by Christopher Badcock

    btw, which continent did you move to?

    honestann's picture

    there is no room for reality in most people's heads.

    Yeah, no kidding.  And apparently a huge majority of the population is utterly unaware they are almost entirely controlled by mental content that they absorbed without significant consideration.  So now they're controlled by a near-random accumulation of predator-crafted soundbites, and incapable of making coherent sense of anything.  For someone who focuses on reality, modern humans are stunning in their ability to almost completely detach from reality, and be manipulated by [almost entirely baseless] abstractions and sound-bites.

    I don't say where I went for privacy and security reasons, but I have posted discussions of the places I seriously considered, and my judgements about the most appropriate bases to consider locations.  You can probably find some of these past ZH messages, some of which I'm fairly certain were within the past 3 months.

    Note that some conclusions I came to are very counter-intuitive, but very much "reality oriented" rather than "theory oriented".  For example, some of the best place to relocate have horrible "government" - in theory.

    In these cases the "rulers" are so petty and small-minded, they pretty much only squabble with other political-minded dimwits, and only in/near the capital city.  When such a country is large or "scattered" (like dozens to hundreds of outlying islands), and the government is run like a bunch of keystone cops (and only in/near the capital city/island), the outlying locations are often virtually government-free (in practice), and therefore wonderful places to live (in practice).

    A few places I seriously considered moving to include: South America (the high andes and deserts in argentina, chile. ecuador, peru), south pacific islands (some outlying islands in inhabited island groups like fiji and others, several uninhabited islands), nepal, iceland, mongolia... and a few other places.  I really didn't give africa a fair shake... just ran out of time to explore further.

    Perhaps the most important principle is this:  Never live where you are citizen!  Pretty much every government today considers every citizen as their slave, but considers tourists more like "welcome if not honored guests" who they expect to spend outside money into their economy.  Never live where you are citizen!

    NuYawkFrankie's picture

    Agreed . "The Military" doesn't give a rats about The Constitution. Probably can't even spell it.


    If it did, why would "The Military" be fighting UCONSTITUTIONAL & ILLEGAL Wars Of Aggression on phoney pretexts ? 

    Wars which are prosecutable - for targeting defenseless populations - under the Nuremberg Trials rules - drawn up largely by non other than the USA ?


    lakecity55's picture

    Stay positive. Once the reptiles rip off their masks, they will be easy targets. We need some of those glasses the guy had in that movie what revealed their disguise.

    But, hyperinflation ruined the Weimar, brought O'Twinkies' dad into power, they had a Police State, they got destroyed in a war, and only after all of that did they get to rebuild, and then the Red Shield Clan moved back in.

    Weird Reptile Karma, baby.

    You can't make this up. Earth vs. Reptilian gold hoarders.

    They Live:

    newengland's picture

    Ace article. And remember this: only 3% fought in the War of Indpendence. Others made supply lines or stayed out of the fray.

    The Republic is NOT a democracy, despite the re-writing of history post WWII by crypto-monarchists and crypto-communists. They are corporatists, wedded to the idea of big government, big banks and the chosen few big companies, served by brat academics shilling for them, eg Krugman and the New York Times.


    The USA was built on the concept of real community, one for all, all for one; no one takes more than they give. Everyone gives more than they take.

    That is the Republic of the United States of America. Home to all who support the Constitution and Declaration of Independence, and distant friend of other countries who sadly choose monarchy, despots and corporatists ... the corporatists who are trying to own the Republic under the scam of 'democracy'.

    Anusocracy's picture

    I recommend for you to read No Treason: The Constitution of No Authority by Lysander Spooner.

    topspinslicer's picture


    grunk's picture

    Go to the Wahington Post comment sections.

    Nothing bu government dependency.

    CheapBastard's picture

    The 'recession' ended for MSM when Bankers were handed Billion dollar bonuses (via TARP, etc) by the Fed.  Check out the record high bonuses again this year at GS.

    steve from virginia's picture


    More bilge from the Ayn Rand-von Mises crowd, it never ends with these fools:


    The country’s economic problems began decades ago.


    Indeed they did, over-consumption began during the 1950s aided by television advertising, the most effective vehicle for propaganda ... ever!


    In trying to cover them (problems) up with economic interventions (stimuli), government actions prevented the economy from correcting the imbalances that caused slow growth.


    This is factually incorrect. Keynesianism has worked. The growth since 1950 was enabled by non-stop stimuli -- 'military-industrial complex' plus trillion$ in auto-highway-development related subsidies and debt guarantees:

     - Nuclear arms race,

     - Interstate highway system,

     - Revenue sharing for highway construction for non-interstate roads and other projects,

     - Tax write-offs and depletion allowances for oil/coal industry,

     - Direct subsidy of nuclear power industry including acceptance of all liabilities, provision of fuel for reactors, and over-ride of local ordinances,

     - Direct subidies for tract-house builders including tax expenditures, mortgage interest deduction, accelerated capital gains, subsidized mortgage origination (FHA, VA, FMHA, then Fannie-Freddie), guarantees for banks and favorable zoning models,

     - Direct subsidies for auto industries including purchases, military contracts, credit and tax advantages,

     - Direct subsidies to finance and insurance industries including access to Federal Reserve discount window,

     - Direct subsidies to airline industries, including 'free' airports and use of airspace; quashing of US railroad system,

     - Subsidized advertising (sweetheart deals for networks, collusion on airways then permitted monopolies), end of Fairness Doctrine, leading to the sale of government/elections to media,

     - Sale of government to insiders such as Koch brothers and Warren Buffett, TBTF banks and overseas finance such as UBS  leading to dominion by Goldman-Sachs, Citi and JP Morgan-Chase. All of the above financed with hundreds of billions/trillions of debt.

    What's there not to like? Take away the handouts to well-connected insiders and there is no growth at all ... starting in 1950!


    Keep in mind, the public sector deficit is the private sector's surplus. The private sector cannot run perpetual deficits needed to service the private sector debts only the public sector can run perpetual deficits: the public sector is servicing the private sector. Don't believe me just watch what happens with the public is less able to run deficits: the private sector will collapse. The reason for the private sector debt is because no industrial enterprise can pay its own way. If it could it would: there would be no debts at all.

    'Slow growth' is happening NOW b/c the world has literally 'run out of gas (cheap petroleum).'


    From a political standpoint, economic policies encouraged institutions and people to use debt to live beyond their means. The massive debt buildup in both the economy and the government hid the underlying problems and allowed them to grow ever larger and more malignant out of sight.


    Finally, something sensible.


    After decades of such interventions, the economy no longer is able to function efficiently. In order to remedy the problems, massive liquidations of debt and misallocated assets are necessary. There is no other way to achieve an economic cleansing.


    What is this, a car wash? What is this 'cleansing' all about? What do you want: virtue or more consumption? Debt isn't the problem as much as the absence of productive enterprise ... there is no such thing.


    Keep in mind, if all the debt was somehow forgiven in its entirety by Monday ... new debt in the same amounts would be required by Wednesday to restart the precious machines.


    No politician wants to be in office when that (cleansing) event occurs. Thus, they make matters worse for the country by continuing to spend money we don’t have to prop up an economy that cannot and should not be saved. Their goal is not to repair the economy ...


    Make up your minds: either destroy the economy or repair it, you cannot do both at the same time. The real problem is Peak Oil: the cost of crude together with the cost of credit cannot be met by 'use' of the crude. The dumb Austrians believe the wasted fuel can be retrieved and that credit comes from a vacuum-cleaner bag. Forget it, the capital business needs to run its shit is gone, Baby, gone!


    People will eventually regain control of their government.


    You have to be kidding? The government is irrelevant. Nobody here on Zero Hedge would tolerate responsible government b/c the first step would be to GET RID OF THE GODDAMNED CARS.


    Are we to enter some institutional dark ages where our grandchildren and their grandchildren do not experience freedom?


    What kind of freedom? Freedom has MEANT living beyone all means. That is now obsolete. The 'entrepreneurs' and 'innovators' have proven themselves to be clever thieves. They have exhausted their capital and cannot regain any more either by dieting or gluttony: modernity is an empty sack.


    Tell me what is this freedom? Freedom from advertising? Freedom to eat non-poisonous food? Freedom to use the public streets without having to dodge automobiles? Or ... freedom to buy ... to buy more Chinese shit at Walmart? Coke or Pepsi?


    Just a lot of empty words, scoundrels wrapping themselves with the flag.

    TheObsoleteMan's picture

    Steve, I believe you are a bit confused. It wasn't Keynesianism that was responsible for the post WW2 American boom, it was the fact that we were the only country left on the planet after the world war that had more industrial capacity after the war than before! Everyone else was in ruins. The Brits were hopelessly in debt. Besides the US, only Sweden and Switzerland were better off in 1946 than they were than in 1939. An argument could be made that the USSR was better off, but at the cost of tens of millions of it's people? I think not.

    newengland's picture

    Steve writes like a typical blowhard indulged child.

    steve from virginia's picture



    New reads like someone who failed the first grade ...