Guest Post: Monetary Malpractice: Moral Malady

Tyler Durden's picture

Submitted by Gordon T. Long of,

We have a Crisis of Trust in America and it has become so pervasive that it is paralyzing America's natural inclination towards risk taking and innovation. This Crisis in Trust is a direct result of Monetary Malpractice and the Moral Malady which it has inflicted on America.

Some would argue that the lack of growth and jobs has created a sense of uncertainty in America which has manifested into historically low levels of confidence and sentiment. I would argue the cause is a crumbling foundation of trust and the cause and effect the opposite.



It is a Crisis of Trust which is the foundation for confidence and sentiment levels in a nation. Trust fosters certainty and a sense of security. Uncertainty is the death knell for business investment and finance. Today's plummeting capital investment in America means slower growth and an even tougher job market lay ahead. So where does a Crisis of Trust stem from and why do we suddenly have one?


Monetary Malpractice - Moral Malady

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JLee2027's picture

Silver Shortage is almost here. That should wake up the masses.

I am Jobe's picture

Nope. U want to see the sheeples wake up turn off the IPHONE, Football and Cable TV and watch them commit suicide.

Tom Green Swedish's picture

Why do I get the feeling you're right Jobe. 


What the hell is a silver shortage. I don't need silver.

francis_sawyer's picture

I'd place 'PEDOPHILE DICKSUCKING' at the top of that pyramid...


But then again... I'm just an 'in tune' historical archivist 'perfectionist' type... Let history be recorded as it may... francis_sawyer is a mere scribe...

DoChenRollingBearing's picture

+ 1 The top of this pyramid is very fragile, as is our whole financial system.

Fringe Blogger Bearing is a mere scribe as well.  I have recently started  reading Nassim Nicholas Taleb's new book Antifragile (he wrote the very influential book The Black Swan in 2007).  

This is a book that EVERYONE at Zero Hedge should read.  BTFB!  My first impressions of the word "antifragile".

Max in St Moritz's picture



What the hell is a silver shortage?

A silver shortage is a doomer myth perpetuated by doomer goons in trailer parks and by billionaires who enrich themselves by taking advantage of these aforementioned doomer goons.  It is also frequently perpetuated by media carnival barkers who are trying to popularize their blogs and YouTube channels.

Just look at Spring 2011.  The "silver shortage" theory was being pumped to the moon, and what happened?  No shortage.  No failed deliveries.  Doomer goons gorged.


akak's picture

MaxFischer, I would know your unique brand of foul stink anywhere.

Now that you have gotten all that irrational and illogical bile against silver owners (whose savings are up over 100% in REAL terms over just the last three years), do you have anything intelligent or honest to discuss?

francis_sawyer's picture

He has nothing... He might as well be in GSTAAD...


Ultimately... THO... I'm grateful for the input... It lets me know that we're CLOSE to a bottom in the 'FLAVA OV DA DAY' [joobuck] Ag, paper trade...

Position [& 'junk'] accordingly... I happen to love when 'joojunkers' enrich PM entries for 'goyim'... DISCOUNT CITY bitchez... 

Max in St Moritz's picture



Listen up, lady...that foul stink is probably a roiling miasma of swamp gas enveloping your head from all the bullshit, horseshit, and garbage you puke up around here.  Your arguments are so much horseshit, you're lucky the EPA doesn't cite you with a TICKET.


akak's picture

And another ad hominem homerun from Max Fischer, uncivil coatimundi.

DoChenRollingBearing's picture

One of my greatest pleasures here at Zero Hedge is seeing akak the Troll-Buster wreak his havoc on the unworthy.  Well done, Sir!  H/T!

Species8472's picture

Lady?, u so dumb that you don't know a Francis with an I is male, Frances with an E is a she??


Theosebes Goodfellow's picture

Though I am loathe to flame, Maxie ol' boy, you've asked for it. FYI, the name 'FRANCIS' is a boy's name. In Spanish it is 'FRANCISCO', as in 'de Gama'. 'FRANCES' is a girl's name, as in Frances Power Cobbe or more contemporarily, Mary Frances Berry. Knowing and understanding some of what either Frances has written won't do you any harm either for it does not seem as if hanging out in Saint Mo' has done anything for your erudition nor your sense of simple, common civility.

Jack Burton's picture

I know a number of young women who would fucking die within minutes should their fucking IPHONE stop working. I have seen heroin addicts with LESS need for their substance of choice. What in the hell are they talking about on those phones.

A few months ago on my way to work just at the first stop sign from my home, I stop and a god damn bitch shoots right through that sign and I see the c*** texting as she flys past! And she looked to be in her 40's.

No revolution in America till the IPONES stop working, then millions of crazed zombie women will go looking for human brains to eat. "World War Z"!

I wish I was just making fun, but I am serious!

TheFourthStooge-ing's picture


I have seen heroin addicts with LESS need for their substance of choice. What in the hell are they talking about on those phones.

Just a theory, mind you, but I believe that for at least some of them, talking/texting is a way for them to keep every little empty space in their lives filled with diversions and distractions, lest there be any unguarded opening through which their suppressed thought processes might sneak through.

I don't necessarily mean to imply that they're incapable of thinking, but that it causes them severe levels of discomfort and has resulted in a response akin to pain aversion.

Ghordius's picture

+1 the ancients said you have to keep the young and the females busy, busy, busy to make them happy

thought processes are sneaky, dangerous dragons for which you need some experience and emotional fortitude

sea captains say a busy crew is a happy crew

land captains know their boyz are a danger to themselves whenever idle

and females get small doses of hormone-induced "good feelings" for (even very little) items of "attentions from others" like flowers, chocolats, but even an sms or a smily on facebook

RafterManFMJ's picture

lest there be any unguarded opening through which their suppressed thought processes might sneak through


Nah, nice theory but wrong. Women do not think; they react to all stimuli emotionally, then justify their actions, no matter how insane the 'logic' later.  And no matter what, they are never at fault even for their own descisions.  

Tom Green Swedish's picture

Look at Apple, Google and Microsoft the demons, and their little junior evil clone Facebook. They are the biggest example of cash hoarding going to waste in the world. Please tell me what the hell do they need to sit on 131 billion dollars for. No reinvestment in anything productive. What a huge waste.


I'm done with these hoarders. Boycott these wastes. I bought my last Ipod, Microsoft Windows, at this point I think I'll stop searching google.

RafterManFMJ's picture

Americans are rapidly becoming the least productive creatures on the planet.  What should Microsoft et al invest in? Printing machines? Green ink? Oh, I know - drones!  Then we can have .gov drones killing American drones as they sit on the couch watching dancing with Oprah.

sgt_doom's picture

I believe the item below explains everything (IMHO):

The Sinister State of the American Economy 

(An explanation even a Kardashian can understand!)

 A little over twenty years ago, the Soviet Union dissolved.

The popular mythology holds that nothing occurred to the U.S. economy --- that even though David Rockefeller accompanied President Nixon and Henry Kissinger on their trips to Beijing and Moscow, when Rockefeller established banking operations in those two countries dating back to 1973,  there was supposed to be absolutely no economic nor financial connections between American and the old Soviet Union.

Gorbachev was honest about the demise of the Soviet Union, but Wall Street was its usual duplicitous self and dissembled about the collapse of the American banking system around the same time.

With the 1990s came an explosion of credit derivatives, what's been referred to as "shadow banking" and created originally to alleviate the S&L meltdown losses --- even then a specious solution.

We'd have to wait until 1996 for Blythe Masters, at JP Morgan, to concoct that insurance fraud instrument, the credit default swap (another credit derivative), and a few more years until its epidemic spread across the globe.

Remember, the USA invaded Iraq when Saddam stopped selling oil in US dollars --- Petrodollars --- but switched to Euros?

Remember when the sanctions and drones and outright aggression began against Iran by America --- after Iran switched from US dollars to Euros for oil exchange?

To remain the world's reserve currency, countries must use American currency to buy and sell oil --- otherwise it loses its value, especially when enough countries begin to dump US dollars with the resultant collapse of the American economy.

That's the cause behind those American attempts on the life of President Hugo Chavez of Venezuela, and the American government's bellicosity against that country (backed by the corporate propaganda network, frequently referred to as "the media").

(America exporting democracy?  Tell that to Honduras, Guatemala, Columbia, Ecuador, Bahrain and the Palestinians!)

Now imagine if a neighbor, or complete stranger, broke down your door and invaded your property because they didn't agree with the way you spent your money?

The super-rich varmints and vermin have been dismantling the American economy over the past thirty-some years, leaching as much value and wealth from it as possible; offshoring the manufacturing base, offshoring the jobs in all sectors, and ignoring the country's infrastructure --- or worse --- selling it off!

You really think a "consumer-only economy" can survive?

I've nothing personally against Robert Reich, he seems like a decent enough fellow, but did you really believe Bill Clinton would have appointed such a complete idiot?

A pseudo-economist who doesn't understand arithmetic or large data sets?  The author of the pile of crap, The Work of Nations --- the temporary fantasy being pushed by Wall Street, the Peterson Institute and the super-rich while dismantling everything?

The other day Reich said that 70% of the GDP activity is consumption --- but that doesn't mean anything of and by itself --- the important number is the percentage composition of the consumer demographic which is doing the vast amount of consuming. (Answer:  the top 15%, used to be the top 20%, but the super-concentration of wealth has accelerated --- and that ain't a consumer-based economy, that's a plutocracy!)

Are you beginning to get an idea of what's taking place?

Please understand, this is basic economics, not even Econ 101, but the pre-Econ 101 course, and the purpose of economics is to justify why that pirate over there has all the money, while you have little or nothing.

A farce based upon a farce.


sgt_doom's picture

then millions of crazed zombie women will go looking for human brains to eat.

(Thank the gods I recently purchased my very own....


Works like a charm...)

SteinRobyn17's picture

just before I saw the paycheck which said $9933, I did not believe brothers friend could actualy earning money part time on their apple labtop.. there mums best friend had bean doing this 4 less than twentey months and recently repaid the mortgage on there apartment and purchased Chevrolet Corvette. go to,

Dr. Sandi's picture


At least it's very well written.

willwork4food's picture

How can these new creeps get an account so fast? It took me MONTHS to get approved here.

Dr. Sandi's picture

This user has posted real comments over it's 28 or so weeks registered on ZH. Maybe they just lost their mind today.

DoChenRollingBearing's picture

Or the account was maybe hacked?  Might be time for a password change...  Thanks Dr., very alert passing that along.

Tom Green Swedish's picture

The only one making money on their apple laptop is apple. Get a brain.

Dr. Sandi's picture

No need for a brain when you have an Apple laptop. It'll do all that cogitation for you.

Max in St Moritz's picture



Looks like Akak's mother is starting some sort of internet business.  I guess it's better than working the streets and back alleys.


DoChenRollingBearing's picture

- 1  Allow me to Copy & Paste akak's remarks just above to our beloved Max:

"And another ad hominem homerun from Max Fischer, uncivil coatimundi."

You may have to look that last word up on Google, Max...  But, don't feel bad, I junked myself too, for stealing akak's words!

Sparkey's picture

Thank you Mister Bearing, now, when people refer to me as, `The lonely Loser` I can reply, I am a "Coatimundi" thank you very much!

ball-and-chain's picture

We need rule of law.

People see a divided America.

They lose hope in the concept of justice.

They turn to football.

Theosebes Goodfellow's picture

I beg to differ, B & C. We have the Rule of Law. What we lack is a moral people, and moral people in positions of leadership, to follow, obey and uphold the Rule of Law we have.

Tom Green Swedish's picture

It's not a constituional right anymore.  It's a "terrorist" act. LOL

knukles's picture

This describes the "Credibility Trap" which is, behaviorily at this time, the primary cause of the "Liquidity Trap."
If an economy persists in a condition of significant excess liquidity (check) upon which at a low cost (interest rate) economic entities at the margin do not borrow (check) the motivation must then be concluded to exist in some other condition than an excess availability of lendable funds.

Thus, the Credibility Trap.  Wherein the system itself dampens the incentive to borrow for investment or consumption purposes.
Ie, it has become a condition dependent upon something other than monetary phenomenon.

Which, to address with monetary or fiscal stimulus approaches the symptom but does in no way address the root problem, itself.


Deacon Frost's picture

Yes knukles, and we can place Exter's Inverted Pyramid for assessing asset risk, next to Long’s and we get a more complete picture.

Dr. Sandi's picture

I think I followed all of that, but there's smoke coming out of my eye sockets.

Pharming's picture

Hey'll never guess what I just did.  I just made a deal with this guy I work with here at the hospital involved something shiny he had, he wanted to sell it, I bought it...  We shook on it!   No shit!  We actually looked each other in the eyes...and shook hands!  Is that fricken crazy or what???  Man...fricken crazy...TRUST what a concept.

MFLTucson's picture

The Crisis of Trust is all about the man who occupies the White House.

Dr. Sandi's picture

The Crisis of Trust is all about the men who operate the man who occupies the White House.

alfred b.'s picture


    ...and those guys would be the barnank and  the diamon headed by Gaitner!   ....the source of the country's distruction.



Dr. Sandi's picture

Those guys are just the louies. The bosses have names that we average schmucks don't even know. And that's by design.

Only the insecure seek fame when they're extremely rich. I'm looking at you Donald 'Skunkskull' Trump.

TheFourthStooge-ing's picture


Those guys are just the louies. The bosses have names that we average schmucks don't even know. And that's by design.

I believe that the new weekly FleeceBook feature intends to address that matter:

Dr. Sandi's picture

You know Shemp, I was actually thinking of that. But I forgot what they were calling it. Good catch!

MFLTucson's picture

And who would that be?  Name those your referring to.

Pharming's picture

What happened to your takeover comment?  It magically disappeared... 

TheSilverJournal's picture

The "Crisis in Trust" stems from the world's monetary system being a fiat ponzi scheme used to keep the power in Washington. Nothing more, nothing less. The reason there's a lack of trust is that fiat is simply counterfeit gold and silver being shoved down our throat. Clearly, there's no reason to trust that counterfeits will hold value and there's no reason to trust ANYBODY advocating a system that protects a counterfeiting ponzi scheme.

michael_engineer's picture

This whole article might fall into this category :

if it ends up being that resource depletion issues were the root causes of societal change.