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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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Sat, 12/29/2012 - 19:43 | 3105504 JLee2027
JLee2027's picture

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

Sat, 12/29/2012 - 19:44 | 3105509 I am Jobe
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.

Sat, 12/29/2012 - 20:00 | 3105533 Tom Green Swedish
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.

Sat, 12/29/2012 - 20:23 | 3105581 francis_sawyer
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...

Sat, 12/29/2012 - 22:45 | 3105848 DoChenRollingBearing
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".

Sat, 12/29/2012 - 20:36 | 3105606 Max in St Moritz
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.


Sat, 12/29/2012 - 20:41 | 3105623 akak
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?

Sat, 12/29/2012 - 20:51 | 3105638 francis_sawyer
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... 

Sat, 12/29/2012 - 21:00 | 3105644 Max in St Moritz
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.


Sat, 12/29/2012 - 21:10 | 3105690 akak
akak's picture

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

Sat, 12/29/2012 - 22:47 | 3105854 DoChenRollingBearing
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!

Sat, 12/29/2012 - 23:17 | 3105905 akak
akak's picture

I does what I cans.



Sun, 12/30/2012 - 01:12 | 3106039 Species8472
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??


Sun, 12/30/2012 - 12:41 | 3106554 Theosebes Goodfellow
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.

Sat, 12/29/2012 - 23:18 | 3105907 Jack Burton
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!

Sun, 12/30/2012 - 00:26 | 3105996 TheFourthStooge-ing
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.

Sun, 12/30/2012 - 09:05 | 3106208 Ghordius
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

Sun, 12/30/2012 - 12:48 | 3106566 RafterManFMJ
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.  

Sun, 12/30/2012 - 00:28 | 3105999 Tom Green Swedish
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.

Sun, 12/30/2012 - 12:51 | 3106575 RafterManFMJ
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.

Sun, 12/30/2012 - 16:58 | 3107219 sgt_doom
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.


Sun, 12/30/2012 - 16:59 | 3107225 sgt_doom
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...)

Sat, 12/29/2012 - 20:09 | 3105555 SteinRobyn17
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,

Sat, 12/29/2012 - 20:17 | 3105573 Dr. Sandi
Dr. Sandi's picture


At least it's very well written.

Sat, 12/29/2012 - 20:30 | 3105600 willwork4food
willwork4food's picture

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

Sat, 12/29/2012 - 23:13 | 3105898 Dr. Sandi
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.

Sun, 12/30/2012 - 00:14 | 3105983 DoChenRollingBearing
DoChenRollingBearing's picture

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

Sun, 12/30/2012 - 00:29 | 3106000 Tom Green Swedish
Tom Green Swedish's picture

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

Sun, 12/30/2012 - 01:21 | 3106050 Dr. Sandi
Dr. Sandi's picture

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

Sat, 12/29/2012 - 20:59 | 3105660 Max in St Moritz
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.


Sun, 12/30/2012 - 00:11 | 3105858 DoChenRollingBearing
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!

Sun, 12/30/2012 - 09:14 | 3106213 Sparkey
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!

Sat, 12/29/2012 - 21:38 | 3105686 ball-and-chain
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.

Sun, 12/30/2012 - 12:49 | 3106570 Theosebes Goodfellow
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.

Sat, 12/29/2012 - 19:54 | 3105527 fnord88
fnord88's picture

OT but interesting: How the FBI fucked the Occupy movement:

Sat, 12/29/2012 - 20:01 | 3105536 Tom Green Swedish
Tom Green Swedish's picture

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

Sat, 12/29/2012 - 20:06 | 3105546 knukles
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.


Sat, 12/29/2012 - 20:58 | 3105659 Deacon Frost
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.

Sat, 12/29/2012 - 23:15 | 3105902 Dr. Sandi
Dr. Sandi's picture

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

Sat, 12/29/2012 - 20:07 | 3105549 Pharming
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.

Sat, 12/29/2012 - 20:12 | 3105557 MFLTucson
MFLTucson's picture

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

Sat, 12/29/2012 - 20:18 | 3105576 Dr. Sandi
Dr. Sandi's picture

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

Sat, 12/29/2012 - 21:57 | 3105760 alfred b.
alfred b.'s picture


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



Sat, 12/29/2012 - 23:09 | 3105890 Dr. Sandi
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.

Sun, 12/30/2012 - 00:35 | 3106009 TheFourthStooge-ing
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:

Sun, 12/30/2012 - 01:22 | 3106052 Dr. Sandi
Dr. Sandi's picture

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

Sun, 12/30/2012 - 10:38 | 3106301 MFLTucson
MFLTucson's picture

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

Sat, 12/29/2012 - 20:26 | 3105593 Pharming
Pharming's picture

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

Sat, 12/29/2012 - 20:21 | 3105579 TheSilverJournal
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.

Sat, 12/29/2012 - 20:23 | 3105585 michael_engineer
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.

Sat, 12/29/2012 - 21:08 | 3105684 MedicalQuack
MedicalQuack's picture

Why don't consumers trust?  They have good reason not have big data and algorithmic processes (the machines) moving the money with dirty math and formulas and it's still happening and you read a fairy tale in the news about this.  Algorithms work against consumers in more areas than just markets, wake up time.  I have been writing about this relative to healthcare for a while now.

Watch this video from the author of "Proofiness, the Dark Arts of Mathematical Deception"...Charlie tells you and he's a mathematician and science professor at NYU who nailed this a while back and I agree as I used to write software and once you know the mechanics on how the algos all play together, you get it.

Furthermore in my opinion piece here, data scientists the term and occupation is not much better than an oxymoron.  I had a couple quants actually with me on this:)  This is not science finding cures or splitting atoms, its algorithms for money and it'an occupation and a tough one at that.  Is data science for the linguists?  Where in the hell are these "miracle people" that folks want to understand 6 or more computer languages and then SQL queries and data queries with SQL less software such as Hadoop going to come from?  Duh???  Dummies have no clue what they are putting on job descriptions and thinks it's like looking for someone who can type 60 wordsa minute or better, right?  Duh? duh?  Duh?  When you find a person who can partially fill these shoes they will become one of the sedentary "evil twins" that insurers tell us about that costs us money..the subliminal crap that goes with it:)

Sat, 12/29/2012 - 22:18 | 3105795 q99x2
q99x2's picture

So where does a Crisis of Trust stem from and why do we suddenly have one?

Washington D. C.

Washington D. C.

Specifically Attorney General Eric Holder's office. He covered up the killing of the children in Oklahoma City and is a crimminal that hasn't been brought to justice yet.

Sat, 12/29/2012 - 22:34 | 3105827 Peter Pan
Peter Pan's picture

Did the author lament the fall off in risk taking and innovation?

He must have forgotten the financial sector.

Seriously though, what does he expect when just about every damn piece of US inspired innovation ends up being mass produced by Asian factories?

Sat, 12/29/2012 - 22:39 | 3105830 Billy Shears
Billy Shears's picture

Make no mistake, John Gault is calling the shots. But in this case, he's not an individual but groups of like minded individuals. The wheels are coming off this shit wagon and sure as night follows day the end to the present abomination will come to pass. It is my sincerest wish that those who have done us the most harm pay the gravest penalty. If history is any guide, when this sucker blows it will be epic but hopefully this will then allow for a return to something resembling the original constitutional intent of the founders.

Sat, 12/29/2012 - 23:11 | 3105895 Dr. Sandi
Dr. Sandi's picture

I share your sentiments. However, I expect a fully grown unicorn to wing its way from my ass before we return to constitutional government in the Untied Snakes.

Sat, 12/29/2012 - 23:22 | 3105914 Jack Burton
Jack Burton's picture

I have great trust in American political systems. We know the elite 1% have purchased the congress and president with unlimited millions of dollar is bribes, OH! I meant "Campaign Contributions".

Look at tax rates, look at income growth, look at the 2008 collapse, look at asset losses and asset gains for Americans. Only a liar, or a bloody fool would fail to see who benefits and who loses in the political game. Money buys power, power facilitates money.

Sun, 12/30/2012 - 02:55 | 3106098 kedi
kedi's picture

Trust requires a complete circle. Honest relations are rewarded fairly, because dishonest ones are prosecuted. At all levels. This has to be from top to bottom. Especially at the top, as those dishonest relations can steal from so many and are too distant from so many to prosecute in any small scale personal way. As more dishonest relations happen due to lack of prosecution, it removes more of the level of reward for even honest relations. This increases pressure to be dishonest in ever smaller more personal relations and it is harder to believe that anyone is dealing honestly. This also impoverishes more of the society, the powerful dishonest gathering ever more wealth, adding to the common pressure to be dishonest.This is another fast track to third world conditions in a society, the common belief that everyone is corrupt. Everything becomes infected. In a populous complex society, when this has become ingrained, it seems impossible to reverse.

Sun, 12/30/2012 - 05:00 | 3106127 hooligan2009
hooligan2009's picture

this article is completely off ... the economy is structured around the government sector which as we all know is counter productive.

deleveraging is not a problem as it downsizes the economy to what is sustainable in the (non-counter) productive private sector. the problem is the size of the governments balance sheet and involvement in paying people to take drugs and not work with free food into the bargain. 

bringing back back manufacturing jobs by competing with a hopelessly inefficient Europe and Japan and a backward emerging markets sector that can only (for the most part) compete with 19th century labor laws will see the employment participation rate increase to around 70%, with full time jobs and an unemployment rate of 6.5% but ONLY if the government interference in doubling the cost of labor is removed.

until that time Go GALT!!

I am Spartacus and so are you, you and you! Take no benefits, pay no taxes and stop being slaves to the (fucked up) system! 


Sun, 12/30/2012 - 09:11 | 3106211 Go Tribe
Go Tribe's picture

Another damned powerpoint presentation. Too many pundits!

Sun, 12/30/2012 - 10:48 | 3106316 Stud Duck
Stud Duck's picture

In a battle zone the only commoodities that have any demand are ammo, food and water. Also, medical treatment supplies (especially pain relief supplies) are in great demand Silver, Gold, script, and dollars or the currency of the county in which the war is being waged are laughed at when one attempts to use them for exchange for the more in demand supplies.

The one thing that is in great shortage is compassion for other humans.

Ya all need to experience it sometime, a real eye opening ecperience!

Sun, 12/30/2012 - 12:25 | 3106520 flyme
flyme's picture

When something is 'unsound' there are only two avenues available, either you retire it, or you put it down. Sadly, the 'fix-it' stage passed a while ago.

Sun, 12/30/2012 - 21:49 | 3107914 Dr. Sandi
Dr. Sandi's picture

I think I smell gas.


I hope it's just taco farts.

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