Misery Spread Widely

Tyler Durden's picture




 

Via Gordon T. Long of GordonTLong.com,

The 'something for nothing' mentality is now firmly in charge in the developed economies. As the G7 economies cascade lower under their past, present and future entitlement & politically connected reward policies, misery is now being spread widely! Misery being spread widely is the product of socialism, as real growth disappears and money printed out of thin air fills in for the lack of real income growth. All of this is paid for by the money you earn and store your wealth in, buying less and less, while your balance in the bank stays the same. The attacks on wealth and job creation are set to accelerate as politicians loot and plunder the private sectors to pay the unpayable promises and support those that don’t produce, by dis-incenting and enslaving those that do. Effectively, penalizing those who lead a prudent and productive lifestyle.

The cynical would argue that the goal is not to spur economic growth and job creation but instead is intended to formant economic collapse, grow government dependence, gather power as the man-made disaster unfolds, take freedoms and redistribute what wealth is left to the special interests in charge. This may very well be true but it could also be a matter of human nature and the generational re-learning of what role a government must be restricted to playing.

"A great civilization is not conquered from without, until it has destroyed itself from within. The essential causes of Rome's decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars."  – Will Durant, The Story Of Civilization III, Epilogue, 1944

Recent Hurricane Sandy exposed once again the governments inability to execute even its most basic mandate - to serve the people. Grief stricken Americans heard plenty of platitudes by well meaning politicians, but the follow through was as usual found wanting by the destitute. The bureaucracy that the politicians supposedly run, with expanding central planning and control, simply couldn't deliver on its most basic responsibilities. The politicians focused on political goals of power and the redistribution of wealth through taxation, regulation and crony capitalism only add to the growing frustrations with the incompetence, inefficiency and shear neglect of the government. The bureaucrats have consistently failed the people and with their failure so will the healthcare, energy industry and financial systems.  They have failed with the post office, social security, the public schools, medicare, medicaid, energy policy and everything else they have taken charge of in a supposed attempt to serve the people!

Every generation learns these simple truths about governments and central planning, but always fall into the trap of expecting and relying on government versus themselves. The reality is people will sell their freedoms for what they perceive to be safety and security. Predictably and consistently they end up with neither safety not security.

Many have learned through experience that socialism is best defined as "Misery Spread Widely".

 

Margaret Thatcher in the depths of pulling the UK out of its economic misery pointed out:

 

"Socialism is about spending other peoples money, until there is none left to spend".

Slowing Credit, CAPEX and Corporate Industrial Production are only three of the 'Canaries in the Coal Mine' that point out that the current bull market in government regulations and uncertainty is stymieing growth, innovation and risk taking. By avoiding and effectively "papering over pain" with unsound money and a litany of transfer payments, it doesn't allow nor force required societal change. It may 'kick the can down the road' by 'extending and pretending' but it only delays the inevitable. A degree of pain is needed to keep a society both healthy & vibrant. Without it you remove motivation and instill complacency, reduced risk taking and Misery Spread Widely.

 

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Sat, 12/15/2012 - 18:59 | 3067295 ISEEIT
ISEEIT's picture

Plus vaccinations!!

LOTS of vaccinations.

Keeps ya healthy!

Sat, 12/15/2012 - 20:46 | 3067527 CPL
CPL's picture

Have to fight the kids away when the flu shot is around!

Sat, 12/15/2012 - 18:59 | 3067297 Hannibal
Hannibal's picture

I don't need no stinking job!

Sat, 12/15/2012 - 19:27 | 3067362 Race Car Driver
Race Car Driver's picture

Fuck happy.

Sat, 12/15/2012 - 19:01 | 3067302 toady
toady's picture

These things always read like they are surprised, that no one could have seen it coming. The minute I heard 'deficits don't matter' I knew it was just a matter of time. The only people who have a chance are the financial elite that own derivatives, but it's a very small chance, because who will be left to pay when the derivatives are triggered?

Sat, 12/15/2012 - 19:05 | 3067313 q99x2
q99x2's picture

Oh boy a revolution is coming. I'm in shape. Time to practice my bugleling. Tah tah tah tah tah tah tah tah tah tah tah tah tah tah tah tah. That was Reveille in case you didn't recognize it.

Hell yes the banksters are taking the US down. Until you prosecute the fraud we're going down.

This guy sounds like he's suffering from an extreme loss of nepotism. It's in his voice print. He's all sucked up because things are being controlled at the Federal level. He's lost his corner on the market.

But that is what we need. Long live the revolution.

Sat, 12/15/2012 - 20:48 | 3067532 CPL
CPL's picture

Tah tah tah tah tah tah tah tah tah tah tah tah tah tah tah tah.

- Baby's got Back as rendered by ir Mix a Lot on the bugle.

Sun, 12/16/2012 - 09:25 | 3068358 tango
tango's picture

Why will prosecuting bankers (and I presume you mean Wall Street and not small community banks) help the problem? US citizens vote repeatedly for those who promise more debt. They're quite blatant - "We can't afford NOT to do it" they blab. So why will attitudes change if investment bankers are brought to task? It's a phony argument designed to protect the real culprit, the voters who have knowingly accepted the fix.

Sun, 12/16/2012 - 10:36 | 3068425 Karlus
Karlus's picture

The Obamaphone crowd needs someone to blame and it cant be The One or themselves. Bankers and a certain demographic fit the bill nicely.

Sun, 12/16/2012 - 10:55 | 3068455 Lednbrass
Lednbrass's picture

It isn't an either/or binary problem, it is all of the above.

The banking/financial sector leeches and the hordes of urban fleas and ticks need to be removed or the host that actually produces things in the US dies- they all feed on the productive private sector. And yes, its going to be ugly but it must happen.

Sat, 12/15/2012 - 19:08 | 3067319 A Lunatic
Sat, 12/15/2012 - 19:29 | 3067368 Race Car Driver
Race Car Driver's picture

Fuck privacy.

Sat, 12/15/2012 - 21:27 | 3067623 duo
duo's picture

the more data they collect, the less they will be able to discern something useful from it.

Sat, 12/15/2012 - 23:09 | 3067819 A Lunatic
A Lunatic's picture

When everything is a crime they won't really have to.

Sun, 12/16/2012 - 01:25 | 3068072 Lord Koos
Lord Koos's picture

That may be true, but a more useful result might be the ability to instantly dig up dirt on just about anyone, when needed.

Sat, 12/15/2012 - 19:15 | 3067333 Klazy Plick
Klazy Plick's picture

Do, do, do, da, da, da is all I want to say to you.

Sat, 12/15/2012 - 19:16 | 3067335 LetThemEatRand
LetThemEatRand's picture

This article is painful.  Socialism?  Try fascism.    They really are not the same, and the solutions to fixing a system broken by socialism are quite different from fixing a system broken by fascism.   I think it is a fair statement that socialism in America is also a problem because the welfare system is broken, but it seems clear to anyone who wants to look that it is fascism that is destroying our country from within and without.  400 people do not have more wealth than one half of the country combined because of socialism.

Sat, 12/15/2012 - 19:27 | 3067365 Yen Cross
Yen Cross's picture

I told you, that I liked your comments several months ago. Apparently other posters agree? Keep up the good work!

  Golden Krugerrands ;-)

Sat, 12/15/2012 - 20:58 | 3067559 Oldwood
Oldwood's picture

Socialism is not a destination, it is a vehicle and in this case a means to an end. Class warfare is being used to justify centralizing control. The tools of wealth redistribution have never ensured fairness, only the power to do so. Fascism is the same. Power being allocated to big business as an effort to again centralized power. The simple fact that government forces business to be their tax collector, all of course for the cause of efficiency, is just another indicator. The fewer rich, the fewer businesses, the easier to control.

Sun, 12/16/2012 - 09:37 | 3068367 tango
tango's picture

Perfect!  You have captured the real heart of the matter, eliminating the phony socialist/fascist conflict that so many ZHers think is so important.  In the end, it's all about control.  Because nothing will bring Nirvana, regulation, taxes, security and favoritism always require more of the same in increasing doses. When crises (caused by State policy) occur, the State gets to assert more control.  It's almost childishly predictable  because it's a mindset and not a structured plan.

Sun, 12/16/2012 - 09:42 | 3068375 Slightly Insane
Slightly Insane's picture

Well, this is the last stage .... kill Capitalism.  They've already destroyed the education system, the monetary system, the (populist) media, and society in general.  This cannot possibly end well.  Perhaps Rand was right.  When the takers out number the makers ... you've got a problem on your hands.

Sat, 12/15/2012 - 22:21 | 3067733 TWSceptic
TWSceptic's picture

Socialism and fascism are both descendants of collectivism. Call it what you want, the main problem is a too big and out of control government. The solution isn't democracy, we've tried that and things keep getting worse. The solution lies within the constitution, for those who still care.

Sat, 12/15/2012 - 23:24 | 3067843 Bindar Dundat
Bindar Dundat's picture

If Socialism soves Capitalism than Facism solves socialism? 

Sun, 12/16/2012 - 02:58 | 3068199 been there done that
been there done that's picture

I have listened to a lot of Gordon's shows w/ Ty and they do use the "F" word; Fascism to describe what we have.

Sun, 12/16/2012 - 08:48 | 3068338 Dick Buttkiss
Dick Buttkiss's picture

Fascialism -- http://www.lewrockwell.com/dilorenzo/dilorenzo172.html

In whatever form it takes, the state can kiss my ass.

Sun, 12/16/2012 - 10:57 | 3068459 sessinpo
sessinpo's picture

LetThemEatRand:  "400 people do not have more wealth than one half of the country combined because of socialism."

 

I don't even know why people bring this up since historically, in every form of government and economic system (that isn't some small tribe hardly touched by what we consider civilization), there are the elite that control the vast majority of wealth. In other words, when you take that fact, all this nonsense about the top 1% or whatever is not relevant. They were there thousands of years ago and guess what, they will be there in the future even if there was a revolution, even if the economic or political system was changed.

Sun, 12/16/2012 - 16:35 | 3069139 Dick Buttkiss
Dick Buttkiss's picture

As Bastiat rightly said: "The state is that great fiction whereby everybody tries to live at the expense of everybody else."  And as history has gone out of its way to prove, this is always a disaster for the people, even if (especially if) they are able to vote themselves money, as the resulting welfare state turns out to be anything but.

The only solution, then, is to eradicate the state itself, which will begin in ernest when the American state collapses and the worldwide "devolution revolution" is thereby launched:

http://www.zerohedge.com/article/guest-post-transition-free-society

Sun, 12/16/2012 - 11:31 | 3068463 Lednbrass
Lednbrass's picture

Do you have any hard evidence whatsoever that in Fascist systems 400 people had accumulated more wealth than half of the country?

I know that you don't, because neither example of Fascism in the 20th century produced such a class- what we have in the US is something different. That label does not fit well at all, neither Fascist Italy or its similar spinoff in Germany produced a similar group.

Sat, 12/15/2012 - 19:26 | 3067344 Kamehameha
Kamehameha's picture

Bullish on Bubonic Plague

Sat, 12/15/2012 - 19:19 | 3067347 Vidar
Vidar's picture

The productive need to stop producing any excess, refuse to work any harder than necessary for survival, and avoid paying taxes in any way they can. Only when the hosts reject the parasites will we be free of the state and all its evils. Take your money out of the banks and the "markets", buy guns, gold, and ammo.

Sat, 12/15/2012 - 19:20 | 3067351 Harry Dong
Harry Dong's picture

Misery isn't being spread widely enough, I'd say. Time to eat the rich.  I hear they taste like bacon! And you either love bacon or you're wrong.

Sun, 12/16/2012 - 11:01 | 3068465 sessinpo
sessinpo's picture

And I hear the Occupy group considers you rich. Can they get a side of potatoes when they fry you up? See the problem in your thinking?

Sat, 12/15/2012 - 19:28 | 3067366 wisefool
wisefool's picture

There are poor and there are poor in spirit. An 80,000 page tax code accomodates both.

Education is the best accomodation for old age.

Sat, 12/15/2012 - 19:31 | 3067369 Chupacabra-322
Chupacabra-322's picture

Father of Alleged Connecticut Shooter is VP of GE Capital: Report

According to ABC and Yahoo news, the alleged shooter at the Sandy Hook Elementary School, Adam Lanza, is the son of Vice President of GE Capital, Peter Lanza. Peter Lanza is also a partner at Ernst & Young, and major accounting firm. The older brother, Ryan Lanza, is also reported to be employed at Ernst & Young.

Peter Lanza, who drove to northern New Jersey to talk to police and the FBI, is a vice president at GE Capital and had been a partner at global accounting giant Ernst & Young.

Adam’s older brother Ryan Lanza, 24, has worked at Ernst & Young for four years, apparently following in his father’s footsteps and carving out a solid niche in the tax practice. He too was interviewed by the FBI. Neither he nor his father is under any suspicion.

 

Another report from Stamford Advocate says Peter Lanza is vice president of taxes for GE Energy Financial Services and also an adjunct professor a Northeastern University in Boston since 1995. The facts have been sketchy and changing from hour to hour.

After 28 years of marriage, Peter and Nancy Lanza divorced. Nancy Lanza was found shot at her home. A source told The Post Ryan has told investigators he last saw Adam in 2010 and that Adam is autistic.

The tragedy is also being politically exploited for tighter gun control. If they ever get guns banned in the U.S., the politically unfavorable will be quickly rounded up and we will get a Soviet style authoritarian system magnified by 100. It is not the guns doing the shooting, but the people. Some of the “leaders” in the U.S. want to get the guns away from the citizens. I don’t know what the answer is to the violence that permeates the United States, but it is likely a symptom of a very sick society. Nobody is shedding tears for the thousands of children who die from U.S. bombs. A nation that exports violence around the planet with an elite core of individuals that profit from it, is destined to be troubled domestically. It’s a karmic certainty.

Obama’s tears

Are Obama’s tears fake like some people are suggesting? Obama has no compunction to order bombings all over the place which regularly kill civilians including children. He also authorizes the killing of Americans, so it’s very hard to believe that his tears are real, although anything is possible in this strange world.

http://www.infowars.com/father-of-alleged-connecticut-shooter-is-vp-of-ge-capital-reports/

 

Pssst, word on the street is the father is vice president for GE energy financial services and is going to testify in the LIBORgate trail soon.

Sat, 12/15/2012 - 19:39 | 3067392 falak pema
falak pema's picture

this story is getting more and more freudian; son has guilt pangs of mom's guns and father's financial hanky panky ?

And takes it out on his memories of youth, to erase his past and also the school class?

Sat, 12/15/2012 - 19:58 | 3067433 A Nanny Moose
A Nanny Moose's picture

vice president of taxes

Is that even a real title? Or is the media writing/fucking up the narrative...again?

Sat, 12/15/2012 - 20:57 | 3067556 Chupacabra-322
Chupacabra-322's picture

Is Peter Lanza sheduled to testify in the Libor investigation? Is Holmes and the Aurora incident tied to the Libor investigation? Why does Libor keep popping up?

Holms father is also some type of Bankster or Financial analyst.  All tied into LIBOR.  These shootings have CIA False Flag written all over it. 

The whole Global Criminal Economic system is tied into intelligence/espionage and murder.

Sat, 12/15/2012 - 21:02 | 3067566 Chupacabra-322
Chupacabra-322's picture

G.E.? That’s Rothschild owned. Here’s part of an article from the NY Times, June 25, 1967.

Financial specialists have noted the family’s increased interest in African mineral wealth over the past 10 years. With other banks, they have formed companies to exploit Saharan oil (Cofirep) Cameroonian aluminum (Cofimer) and Mauritanian iron ore (Miferma). They have retained long-term holdings in nickel, Katangese copper and oil (they are large shareholders in Royal Dutch). In 1959, they formed a company called Sitetec, which invests in American companies such as Eastman Kodak, General Electric, Bendix and I.B.M. They also control a Canadian holding company, Five Arrows. Through another holding company, SAGA, they control 20-odd shipping companies, many of which operate between Europe and Africa. As Guy explains: “Being in shipping leads us into related businesses, like harbor installations. We are methodical. We look for what we already know. Actually, we feel that the Compagnie du Nord controls too few businesses.”…….In the 19th century era of nationalistic revolutions, the Rothschilds showed that the bankers of monarchies could become the bankers of republics. They became Europe’s Friendly Finance Company (lol) with influence so great that no major credit operation seemed possible without them. They exercised a virtual monopoly on government loans, 80 per cent, and underwrote government bond issues. They were on familiar terms with the great statesmen. Metternich himself, the coachman of Europe, borrowed 900,000 florins at 5 per cent in 1822.

Sat, 12/15/2012 - 22:15 | 3067638 duo
duo's picture

Lenin didn't shed tears for the 20 million killed during the Bolshevik revolution.  His agenda was served.

The same for Stalin, for the 30 million killed during the purges and forced collectivisation.The agenda was all that mattered.

Obama/Soros have an agenda.  Enough said.  A few drops of saline solution in each eye...roll camera.

Sat, 12/15/2012 - 23:07 | 3067815 lakecity55
lakecity55's picture

The father of Holmes, in Aurora, was to testify in LIBOR.

There are no coincidences.

Sat, 12/15/2012 - 23:22 | 3067836 Chupacabra-322
Chupacabra-322's picture

No, Peter Lanza is sheduled to testify in the Libor investigation sometime in the future.  Holmes father is some bankster or financial analyst tied into the LIBOR scandel. 

Sun, 12/16/2012 - 04:06 | 3068243 IrritableBowels
IrritableBowels's picture

This would be a little strange if there were, hypothetically speaking, another incident where the accused was directly related to a connected financial bigwig. Like say if the shooter's dad was a guy who spent a few years at HBC and FICO and who developed algorithms concerning fraud and credit risk models and who was also supposed to testify in the LIBOR hearings. 

HYPOTHETICALLY SPEAKING, OF COURSE.

Sat, 12/15/2012 - 19:43 | 3067374 falak pema
falak pema's picture

its getting very trendy to quote Maggie...don't you find MAggie's farm reality and City casino a bit of a honest man's slaughterhouse and a white washed oligarch's haven of financial mayhem?

Mr Gordon T Long, you are strong on socialism, but the story of first world since 1981 has NOT been socialism, its been Maggie's farm and Ronnie's pig sty.

At least they laid those golden eggs of fiat mayhem then and called it Big Bang Deregulation.

Why this fascination for socialism? Remember what happens when Oligarchs are given the keys by State (R & M tap dance show) to the private run economy model, and drive it into the ground?

Like after 1929, government has to step in to clean out the mess. Nobody else there; those private shills just lock up their Caymanista cupboards. We are heading there again, for the same reasons.

Unless you can tell us how to pull a rabbit out of our collecitive hats! 

Sat, 12/15/2012 - 19:34 | 3067378 alfbell
alfbell's picture

Durant might as well have been talking about the USA. We can check off all those requirements for a decline as accomplished and now we are just gonna spend the rest of our time amplifying them until the USA goes from once being the super power to an empty shell of a once great nation.

Luckily massive empires, due to their size and momentum, die slowly —like the Roman Empire. It sure gets nasty in those last stages of decay though. It won't happen in my lifetime (I'm 60) or maybe the next generation or two's lifetime. Probably another century and this country will be a total basket case.

Next lifetime I think I'm going to pick a baby body in a weathy family in Singapore.

Sat, 12/15/2012 - 19:39 | 3067386 Waterfallsparkles
Waterfallsparkles's picture

Always think of Dr. Zhivago.  Where he returned home to find his Wealthy Family in a small room in their Home.  They could not have heat but a few hours a day and scavenging wood for heat was a crime.  Which he found out the hard way.

When he asked what happened the Controller of the House said the house was to big for his Family and others needed accommodation as everyone had to be equal.

Then when he and his wife went to the Retreat they once owned they could not enter.  They settled for a while in a cottage that was not taken over by the State.

Americans need to watch Dr. Zhivago again to see what is coming.

That is where we are headed.

Sat, 12/15/2012 - 21:34 | 3067645 duo
duo's picture

+1000.  The best line:  "This is the last half of the last cigar in all of Moscow".  Dr. Z's dad lighting up a butt in the one room of their former mansion they were allowed to live in.

We all will live to see a day like that.

Sat, 12/15/2012 - 19:40 | 3067395 Yen Cross
Yen Cross's picture

 What happened to Intrade? Oh that's right, they got blocked from American Markets about 1 month ago...

 We can't have any hedging when interest rates are pushing negative yields on short term notes!  Prohibition part deux/

 Needed, 200 kids to run numbers ASAP! Youth unemployment rate 20+%   ( Being sarchastic)

Sat, 12/15/2012 - 19:47 | 3067415 sbenard
sbenard's picture

One of the best books on political economy I've ever read:

http://bastiat.org/en/the_law.html

We have our work cut out for us!

Sat, 12/15/2012 - 21:51 | 3067683 Bastiat
Bastiat's picture

I approve this message.

Sat, 12/15/2012 - 19:47 | 3067416 Waterfallsparkles
Waterfallsparkles's picture

The biggest problem is that there is no consequence for the people in power.  They will be exempt from any negative effects of Socialism.  They will only gain power and Money.

Do NOT follow this link or you will be banned from the site!