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Guest Post: Keynesians And Ponzians

Tyler Durden's picture




 

Originally posted at Monty Pelerin's World blog,

The economy cannot recover without a complete cleansing of the excesses that have built up over the last half century plus. This mantra has been repeated again and again on this website and elsewhere. It is not a unique idea. It is a foundational belief of Austrian economics and an integral part of Austrian Business Cycle theory.

Ludwig von Mises provided this fundamental observation:

Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.

There has likely never been a boom so great (and so fictitious) as the one that this country experienced for the last several decades. Its origins began with the hubris of government economists in the decade of the 1960s who believed that the economy could be managed like a piece of machinery. They believed that they had the tools (and wisdom) to eliminate business cycles by judiciously stepping on and letting off the gas at the correct times.

This incorrect belief is still fundamental to Keynesian economists, despite the impressive string of failures it has produced. Empirics notwithstanding, the belief is maintained. The misjudgments of practitioners, not the theory, are responsible.

The movement toward a social welfare state provided additional incentives for Keynesians. With its “costless” provision of increasing benefits to increasing numbers of people, the welfare state required that a boom be maintained lest the Ponzi scheme collapse prematurely. The Ponzians and Keynesians became natural comrades and allies.

Keynesianism promoted activist government. The welfare state was activist government taken to an extreme and required increasing amounts of money to survive. A symbiotic relationship was evident. The growth of one promoted the other and vice versa. The complementarity is apparent when one realizes that members of one of these cults generally belong to the other.

Whether this boom was the greatest in history might be debated. What cannot be debated is the fact that no other boom has been more dependent on government for its formation and maintenance. No boom in history has been created by easier money and bigger government interventions. Nor has any other been so desperately maintained by government.

As a result, this boom has been more artificial and damaging to the economy than any other. For decades the Fed and government interventions distorted interest rates and product prices. These incorrect price signals encouraged entrepreneurs to engage in behavior that should never have been undertaken. Massive mis-allocations of capital and labor are the result and they have built up over fifty years.

Markets are now trying to right these wrongs. Government is desperately trying to prevent the curative process. More stimulus and interventions may stem the tide for a while longer, but they also increase the distortions. Government efforts to stop markets are doomed to failure.  Markets will prevail. They always do. Regarding such efforts, Mises observed:

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.

This quote is the bottom line. It summarizes what will be.  It describes what the last five years has been about — a battle between political desire and economic law. It is a battle of hope against reality.

Politicians foolishly believe they can bend the laws of nature. They are fools for trying. Sadly, the pain and suffering that will be incurred will be borne by the millions of citizens dependent on markets and the economy.

Do not forget the big picture. The inexorable theme that is playing out is captured in Mises’ second quote. Knowing the underlying and immutable laws of economics will ensure you don’t fall prey to the political propaganda spewed out daily from Washington, their media minions and Wall Street shills.

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Mon, 01/21/2013 - 20:15 | 3174152 bugs_
bugs_'s picture

Ponzians go to jail, Keynesians get tenure.

Mon, 01/21/2013 - 20:25 | 3174178 NidStyles
NidStyles's picture

Shame, that's the only difference.

Mon, 01/21/2013 - 20:32 | 3174201 Enslavethechild...
EnslavethechildrenforBen's picture

Fake elections, fake politicians and judges.

What is real though is that the bastards have our printing press and are buying drones to bomb our asses with our own money.

Mon, 01/21/2013 - 20:38 | 3174211 NidStyles
NidStyles's picture

Nope, they are real elections, real politicians, and real judges. Welcome to reality, your idealistic view of how things should be is just that, and idealistic view. It's not reality in the least.

 

To add, it's not money, it's a currency.

Mon, 01/21/2013 - 20:46 | 3174226 rhinoblitzing
rhinoblitzing's picture

They are Rigged Electionz, Bought Puppet Politicianz, and Corrupt Inept Judgez...

There... Fixed it 4 ya

"I tremble for my country when I reflect that God is just; that his justice can not sleep forever"

Thomas Jefferson

Mon, 01/21/2013 - 20:58 | 3174248 NidStyles
NidStyles's picture

They were the same back in his days as well. The difference is that they simply had to control who was voting, rather than controlling the counting of the votes. One should not confuse themself with a history that never existed. 

Mon, 01/21/2013 - 21:03 | 3174257 The Limerick King
The Limerick King's picture

 

 

Ponzi and Keynes must be kin

From mothers who liked drinking gin

What else could explain

Two systems that drain

The wealth of all suckers within

Mon, 01/21/2013 - 22:27 | 3174396 CompassionateFascist
CompassionateFascist's picture

One thing: the "markets" aren't trying to "correct" anything. They're gone (along with any real "politics"), ceaselessly ramped up on ZIRP + Rothschild Reserve debtbux sluiced in via the JewYork banks, then churned around via HFT algos. The GlobalPonzi will more likely collapse via a political externality:  a violent ZOG gun-grab sparking domestic Civil War, and/or a Zionist attack on Iran leading to closure of the Straits, sustained oil price spike, and dollarcollapse.   

Mon, 01/21/2013 - 23:35 | 3174552 TruthInSunshine
TruthInSunshine's picture

Aggregate demand destruction & deleveraging is the monster freight train that is the new unstoppable force. Nothing, no one, and no entity can stop this behemoth. In fact, the central banksters can print and dump fiat by the raw tonnage and it will only fuel this locomotive of a force.

It doesn't matter if the collapse comes in a month or 15 years, because the longer they kick the can based on current practices of sucking the lifeblood out of what are now left of or would otherwise be the productive sectors of the economy (and individuals participating in them) to support the parasitic drain that is the banking-financial-WallStreet-military complex, the more severe the collapse will be when it does arrive.

This is not an opinion, but a factual prediction based on the laws of arithmetic. To those skeptical of this claim, I've yet to see a single rebuttal set forth coherently arguing that the collapse can be avoided short of some absolutely impossible scenario whereby real economic growth in developed nations runs at a rate that's so high that the rational amongst us can confidently claim that the real economic rate of growth cited not only can't happen, but that such projections are likely 3x to 4x what is remotely possible under the best case scenario.

I was the first (I believe) to invoke the analogy of a forest fire and controlled burns to demonstrate how radical interventionism by incredibly active fractional reserve central banks, along with concomitant radical interventionism by the treasury departments (or whatever designation they have in other nations), have broken all markets beyond the point of repair.

Just as in nature, when the scrub and brush is allowed to grow too thick, because an external and artificial force is dousing nascent fires each time a whiff of smoke fills the air, the only thing such interventionism is guaranteeing is an epic forest fire at some point in the future, since nature was not allowed to take its course earlier.

Instead of allowing for a deeper and more cleansing controlled burn in 2008 (let alone since the true credit/debt crack up boom began in the 1970s), all the fractional reserve central banks and treasury departments of developed nations have done is to allow even more highly volatile fuel to accumulate, which will lead to a far more destructive and unstoppable fire once the can can't be kicked any further.

We have had central banks intentionally producing fiat-fed bubbles, and inducing capital to chase these bubbles, for decades now, in an attempt to paper over the hollowing out of major economies around the world. The housing bubble was the best example of this phenomenom and process (up until the present period, where asset bubbles blown by central fractional reserve fiat banks DWARF the dot.com & housing bubbles combined), as tens of millions of Americans who were formerly employed in productive sectors of the economy, but who found themselves without a career suddenly (because of hollowing out of the U.S. economy and those of major European Nations), found replacement work as real estate agents/brokers, mortgage brokers, title agents, subprime loan agents, working in infrastructure companies, or otherwise working in industries and in companies that necessarily fed off the real estate and housing boom.  This was a bubble that papered over the hollowing out of the economy- structural, despite what the very disingenuous and or incredibly errant Paul Krugman would and has claimed- and allowed people to believe that all was well and consume as if there were no future crisis lurking.

The crisis has arrived, whether people realize it or not, and the fractional reserve central bankers can't 'fix' the deleveraging that now is deeply entrenched across major economies, let alone prevent the inclination for deleveraging from affecting emerging economies.

The 'wealth accretion' that Bernanke claims he's helped create via his unprecedented, radical, 100% debt dependent, market breaking monetary policy is but an illusion and transitory mirage; another bubble that will pop as they all do.

The credit that is now being extended as part of the last gasp of fractional reserve central banks to delay the inevitable collapse is going to do many of the clueless in, once and for all, as it plays havoc with their outlook and causes them massive cognitive dissonance  (and makes them and their real assets, encumbered by debt, more 'harvestable').

How many people on "the street" realize that consumer debt is CURRENTLY at an all time record in the U.S.? Most probably think this was the case back during the peak of the housing bubble, but it's actually FAR higher as of today.

It's not a boast, but a life lesson (and one that I took to heart), when I say that I personally know people who had high 8 (and even several 9) digit checking accounts, and that I traveled with them while they lived like kings, and that almost to a person, they've gone bust now. Credit is dope. Credit based on fractional reserve, fiat printing practices is crack cocaine. And all fiat in fractional reserve banking closed loop systems equals debt, and vice-versa.

The Bernank has now inflated the largest asset BUBBLES-- consisting of equities, credit/bonds & even particular segments/slices of real estate yet again (think coastal properties or NYC commercial properties of the type likely to be in Blackrock's TBTF portfolio) in terms of the broadest swath of asset classes & also in terms of transaction prices relative to FMV (i.e. we're at nosebleed level over-pricing, here), since the "roaring 20s," and arguably even more so.

It's a helluva neat trick to get equities AND bonds both to nosebleed levels, simultaneously; say what you will about The Bernank, but he went whole hog and neck deep into the Fed's "tool box" to make that incredible trickery happen, committed anti-free market central planner that he is.

The problem with this type of bubble re-flation strategy via the warp speed printers is that the only ones that can participate, this time, are those intimately tied in with Treasury & the New York Branch of the Fed (I'm not saying blowing bubbles is a sound economic/monetary policy, because it's not; I'm saying that Bernank's latest bubble blowing has virtually no "trickle down" affect as the dot.com & housing bubbles did - at least temporarily, to act as a band-aid to disguise the decimation of the economic foundation that had happened during the prior years, by providing cash flow and jobs, however "transient," to tens of millions of Americans who worked in sectors that benefited from those bubbles).

It's not hyperbole to claim that we're now precisely at one of those moments in history where we can say that our economy rests on pillars of salt & pillars of sand, and the fundamental foundation has rotted and continues to rot away (i.e. diminishing aggregate demand, diminishing need for human labor, lack of true price discovery, loss of faith in fiat & official monetary policy carried out, in part, via open & broadcasted fiat manipulation, etc.).

We're at the end of real economic growth & in a tailspin of shrinking aggregate demand/consumption.

No one knows the sequence of events that will transpire in the days, months and years ahead, but I'm in the clear minority by proclaiming a SWAG that central fractional reserve banks not only won't be able to induce significant inflation on a sustainable basis, but that they will not be able to stem a tsunami of real deflation that will be inevitably be part & parcel of the human condition finding new, innovative and adaptive ways to curb its collective demand for and consumption of goods and services (as just one of hundreds, if not thousands, of examples of this, consider that the demand for gasoline is considered relatively inflexible, yet Americans are driving fewer miles per driver than at any time in the last 30 years-- which has now prompted many state legislators to push for higher registration fees, rather than gasoline taxes, as a way to gin up revenue).

Mon, 01/21/2013 - 23:40 | 3174594 economics9698
economics9698's picture

Stop the cut and paste.

Mon, 01/21/2013 - 23:56 | 3174602 TruthInSunshine
TruthInSunshine's picture

Only the last few paragraphs were copied from a post of mine just yesterday (filed under the U.K. triple-dip recession essay), because they tie into this subject matter so inherently.

This subject matter is the absolute crux of our current economic & financial crisis (that is a direct consequence of batshit crazy neo-Keynesian monetary policy), and warrants a deep, complete & thorough analysis, or nothing does.

So, to summarize, your vagina shouldn't hurt as much as it does.

Tue, 01/22/2013 - 01:59 | 3174844 All Risk No Reward
All Risk No Reward's picture

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.

This quote is the bottom line. It summarizes what will be.  It describes what the last five years has been about — a battle between political desire and economic law. It is a battle of hope against reality.

Politicians foolishly believe they can bend the laws of nature. They are fools for trying. Sadly, the pain and suffering that will be incurred will be borne by the millions of citizens dependent on markets and the economy.

Do not forget the big picture. The inexorable theme that is playing out is captured in Mises’ second quote. Knowing the underlying and immutable laws of economics will ensure you don’t fall prey to the political propaganda spewed out daily from Washington, their media minions and Wall Street shills.

IMHO, the author frames the problem incorrectly.  He assumes the stated narrative of known liars is their actual narrative.  Somehow, he thinks the lying politicians are telling the truth.

In doing so, the author, like so many on ZeroHedge, don't evaluate the cost/benefit ratio of the people that BOTH CONTROL GOVERNMENT AND MONEY.

Mises offered two options.  One where the international banking cartel (IBC, they control money and government and mega corporations) stops creating debt (money) and one where they print until the money is no longer backed by debt and the value of the currency approaches zero.

There is actually a third option - and that is the option that most benefits the IBC.  Try serious credit contraction.  The IBC is trying to avoid it now so they can loot the Treasury of trillions and offload trillions in debt to the chumptocracy.  When that game ends, they will collapse the economy so that their trillions will buy 3x or 4x or 5x times as much stuff.  The fact millions will be on the street is of no concern to them...  they actually get giddy thinking about it.  Ignorant chumps thought they had rights...  what bafoons.  They get what they deserve... survival of the fittest so feel free to die off, alrighty?  Too many people on Earth and all.

There is a reason they consider themselves "illuminated" and most everyone us not illuminated.  They see clearly where most others do not.

Let me start out by asking yuo to answer a few questions.

If you ran the IBC, would you be doling out 3% 30 year loans ahead of this hyperinflation you were about to create?

If you would, you'd be a galactic moron.

Either you think the IBC are filled with galactic morons you have to deal with a CONTRADICTION in the straight to hyperinflation scenario.

I've listened to thousands of hours of podcasts, mostly from pro libertarian type people.  Unfortunately, not a single one of them will explain why the banksters are lending out 30 year money at 3% ahead of this imminent hyperinflation.  I could name names, but the irony here is that I like most of the people to whom I listen.  They simply are blinded by Rockefeller funded impuned Mises dogma that every debt saturated society wants to hear...  they will be bailed out of their unpayable debts.

I have news for you - that narrative is false.

Henry Ford knew it.

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”

~Henry Ford

Charles Lindbergh, Sr. knew it.

“The new law will create inflation whenever the trusts want inflation. From now on depressions will be scientifically created.”
(Congressman Charles A. Lindbergh, after the passage of the Federal Reserve act 1913.)

“Under the Federal Reserve Act, panics are scientifically created. The present panic is the first scientific one, worked out as we figure a mathematical equation.”
(Congressman Charles A. Lindbergh, The Economic Pinch, 1921.)

If you owned/controlled trillions in personal and corporate cash and trillions more in debt instruments, would you hyperinflate it into nothingness?

Are you a galactic moron?

Are the people who covertly rule the Earth galactic morons - oh, they want their victims to believe it...  that's a principle in the art of war.  You have read the Art of War, right?

"Pretend inferiority and encourage his arrogance."

~Sun Tzu, Art of War

The current exponential debt (money) growth curve is unsustainable.  You know it.  I know it.  IBC knows it.  Your local 5th grader knows it.

But the sheeple isn't informed, so they need a false narrative to try and hide the fact they are LYING about trying to restart what can't be done...  a return to long term exponential debt growth on top of a debt saturated society.

So what are they doing? 

Looting the crap out of society by the trillions and offloading trillions in their toxic trash to the Federal Reserve (which the IBC ultimately controls, not that punk front man Bernanke...  he's the false narrative to hide the real criminals from those without eyes to see) on its way to the American tax payer, what else?

Once that process is done, they will flip the switch to "Americans are responsible people, we've gone too far, we can't run deficits anymore and we need to pay back our debtors."

I don't know if the test is right, but the bottom line is the IBC will cut back on credit (money) and the debts of most of society will become unpayable.

When the economy is in shambles - you ain't seen nothing yet! - their TBTF&Jail corporate fronts will snatch up the physical world for pennies on the dollar.

THEN, and only then, do you need to worry about hyperinflation...  it will become a book balancer for the IBC AFTER they've used their Debt Star to literally destroy society and pretend it was all on accident.  Or blame their puppet politicians.  Or al Qaeda that the IBC openly finances to overthrow nonthreatening sovereign states...  something the world hasn't seen since Hitler.  Remember, Hitler wasn't attacking other nations, he was "freeing Germans" from those nations...  well, if you are naive enough to believe the state propaganda, anyway.

The monetary system is a fraud...  debt based money is engineered to enshrine the criminals running it as economic overlords over everyone else in society - including government.

Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

The monetary system is a fraudulent artifical constraiint imposed on society in order to covertly convey the wealth of the common person to the people running the system until the common person is impoverished and under the boot of the criminals running the criminal system.

Read that sentence as many times as you need to until the Veritas sinks in.

The politicians are Vichy collaborators.  Left, right, doesn't matter.  Ron Paul does everyone a disservice when he pretends these criminals are just "misguided academics."

The major media are Vichy collaborators.  Left, right - doesn't matter.

I could go on and on.  Most people can't emotionally handle this message, but you can ignore reality, but you can't ignore the effects of reality as they smack you around going forward.

Get control over the necessities of life - that works no matter what happens in the future.

Get your wealth out of the financial system.

Build a constructive community.

Tue, 01/22/2013 - 04:16 | 3174876 TruthInSunshine
TruthInSunshine's picture
The Harvest excerpted from the book The Creature from Jekyll Island
When men are entrusted with the power to control the money supply, they will eventually use that power to confiscate the wealth of their neighbors.


There is no better illustration of that law than the Crash of 1929 and the lingering depression that followed.


p501
The lingering [1929] depression is an important part of the story. The speculators had been ruined, but what they lost was money acquired without effort. There were some unfortunate souls who also lost their life savings, but only because they gambled those savings on call loans. Those who bought stock with money they actually possessed did not have to sell, and they did quite well in the long run. For the most part, something-for-nothing had merely been converted back into nothing. The price of stocks had plummeted, but the companies behind them were still producing products, still employing people, and still paying dividends. No one lost his job just because the market fell. The tulips were gone, but the wheat crop remained.


So, where was the problem? In truth, there was none-at least not yet. The crash, as devastating as it was to the speculators, had little effect on the average American. Unemployment didn't become rampant until the depression years which came later and were caused by continued government restraint of the free market. The drop of prices in the stock market was really a long-overdue and healthy adjustment to the economy. The stage was now set for recovery and sound economic growth, as always had happened in the past.


It did not happen this time. The monetary and political scientists who had created the problem now were in full charge of the rescue. They saw the crash as a golden opportunity to justify even more controls than before. Herbert Hoover launched a multitude of government programs to bolster wage rates, prevent prices from dropping, prop up failing firms, stimulate construction, guarantee home loans, protect the depositors, rescue the banks, subsidize the farmers, and provide public works. FDR was swept into office by promising even more of the same under the slogan of a New Deal. And the Federal Reserve launched a series of "banking reforms," all of which were measures to further extend its power over the money supply.


In 1931, fresh money was pumped into the economy to restart the cycle, but this time the rocket would not lift off. The dead weight of new bureaucracies and government regulations and subsidies and taxes and welfare benefits and deficit spending and tinkering with prices had kept it on the launching pad.


Eventually, the productive foundation of the country also began to crumble under the weight. Taxes and regulatory agencies forced companies out of business. Those that remained had to curtail production. Unemployment began to spread. By every economic measure, the economy was no better or worse in 1939 than it was in 1930 when the rescue began. It wasn't until the outbreak of World War II, and the tooling up for war production that followed, that the depression was finally brought to an end.


It was a dubious save. In almost every way, it was a repeat of the drama played out with World War I, even to the names of two of its most important players. FDR and Churchill worked together behind the scenes to bring America into the conflict-Churchill wanting American assistance in a war England was losing and could not afford, FDR wanting a jolt to the economy for political reasons, and the financiers, gathered behind J.P. Morgan, wanting profits of war.


p502
During the nine years before the crash of 1929, the Federal Reserve was responsible for a massive expansion of the money supply. A primary motive for that policy was to assist the government of Great Britain to pay for its socialist programs which, by then, had drained its treasury. By devaluing the dollar and depressing interest rates in America, investors would move their money to England where rates and values were higher. That strategy succeeded in helping Great Britain for a while, but it set in motion the forces that made the stock-market crash inevitable.


The money supply expanded throughout this period, but the trend was interspersed with short spasms of contraction which were the result of attempts to halt the expansions. Each resolve to use restraint was broken by the higher political agenda of helping the governments of Europe. In the long view, the result of plentiful money and easy credit was a wave of speculation in the stock market and urban real estate that intensified with each passing month.


There is circumstantial evidence that the Bank of England and the Federal Reserve had concluded, at a secret meeting in February of 1929, that a collapse in the market was inevitable and that the best action was to let nature take its course. Immediately after that meeting, the financiers sent advisory warnings to lists of preferred customers-wealthy industrialists, prominent politicians, and high officials in foreign governments-to get out of the stock market. Meanwhile, the American people were being assured that the economy was in sound condition.


On August 9, the Federal Reserve applied the pin to the bubble. It increased the bank-loan rate and began to sell securities in the open market. Both actions have the effect of reducing the money supply. Rates on brokers' loans jumped to 20%. On October 29, the stock market collapsed. Thousands of investors were wiped out in a single day. The insiders who were forewarned had converted their stocks into cash while prices were still high. They now became the buyers. Some of the greatest fortunes in America were made in that fashion.

 


Replace Great Britain with PIIGS+UK+Japan currently, and, voila, bitchez (throw in the economic meningitis of the U.S. for good measure, which is undeniable).

Did someone say that The Bernank was a serious student of the causes and consequences of The Great Depression? If this is true, he's the worst student in the history of students.


Wed, 01/23/2013 - 02:47 | 3178179 All Risk No Reward
All Risk No Reward's picture

The disconnect is that he's not doing what he says he's doing.  It's like he's saying, "come out with your hands up, you will be safe" while he's shooting bullets at you.

Bernanke and his handlers are experts in the Great Depression, but not in a way that they will ever admit to in the presence of sheeple.

They've orchestrated the world's largest credit bubble BY DESIGN!

They're orchestrating the world's largest transfer of monetary wealth to themselves and offloading the world's most debt onto society BY DESIGN!

The stage is almost set for them to pull the plug on credit creation and, in fact, collapse credit (money) to cut the legs off of any financial competition...

That means they take their looted cash and buy up reality for pennies on the dollar.

He knows what he's doing.  Indebting society to bust them and asset strip on a magnitude most can't even fathom as they see it right before their eyes...  all while playing the part of the fool (not a traitorous, debt money pushing criminal).

Anyone who thinks Bernanke is as dumb as he plays, or even dumber, has been owned by the false narrative.

And it isn't even about Bernanke - he's a punk front man for the international banking cartel...  and they own/control everything big - including your government and its military.

Tue, 01/22/2013 - 21:02 | 3177483 Pseudolus
Pseudolus's picture

I logged in just to say thanks

Trouble with ZH sometimes, its delusion/faith in the reasonableness of these markets

 

You've got to have a plan. If you dont have a plan, your working to someone elses

And guess what they have planned for you. Not much!

Wed, 01/23/2013 - 02:58 | 3178190 All Risk No Reward
All Risk No Reward's picture

I'm glad you found value - that's why I post these Veritas rants.

While the "free market" is good, it isn't sufficient.  This is where almost everyone goes off the rails.

The missing ingredient is a critical thinking, active populace that values their community and realizes the biggest threat they face is anything big.

If this ingredient was in place, nobody could gain enough power to overwhem government and their competition.

Critical thinking people aren't chumps that enjoy being part of a chumptocracy.

The foundation that would make this system should also be identified - people have to care about others equal (not more, not less) than themselves.

Otherwise, people will act as they do today and the result will be the problems we face today.

The free market is as real as communism is as real as capitalism is as real as Skittle (GMO sugar) sh*tting unicorns...  none of those fictions exist, but most people have no clue they don't exist.

All that exists are different forms of tyranny at different levels of hardness.

Richard Grove made an excellent point in a podcast I listend to today - we don't even have a word for people who think they are free but aren't by any reasonable definition of freedom.

There isn't even a word to describe the state we live in today.

 

Tue, 01/22/2013 - 01:59 | 3174843 JOYFUL
JOYFUL's picture

Not so true.

Ponzians, for the most part, are economic criminals - interested in scamming for cash...

Keynsians, on the other hand, as emblemized by their namesake, are social criminals, of the worst order. JM Keynes the man, was a monster...a sodomite who worshiped not just at the altar of pedophilia but was a self confessed Bolshevik, dedicated, along with his Fabian co-conspirators, to destroying the West, both morally and economically. His whole image as a 'bourgeois economist' was a cover given to him by IV Lenin personally, just like his sham marriage to a Bolshie(double entredre)ballerina to disguise his reprobate character...

http://web.archive.org/web/20040831165842/http://www.aposse.org/commons/...

http://www.keynesatharvard.org/

that these key aspects of the man who is supposed to be the cornerstone creator of the modern social welfare state should be rigorously ignored for so long is extremely telling: we are supposed to belief that somehow economics - a pastime as much driven by human greed, avarice and passions as any other(if not more!) is somewhere sequestered far away from any such 'petty personal' levels...an Olympian pursuit, performed by godlike creatures in high office, or their 'helpers' in Wall St chambers.

In this deliberate fallacy, Austrians are as much implicated as their erstwhile nemesis...holding economics to be a mechanical device subject to "ïmmutable laws" and worshiping their own pantheon of god-like superheroes! Which brings us to the droll humor of the author of this piece's pyseudonym - a play upon the Mont Pelerin gathering and subsequent conspiracy of fat cat industrialists to divert the energies of free thinking, free enterprise advocates into the stagnant pool of 'libertarianism' instead of the vibrant stream of anarchism into which they had previously flowed.

Make no mistake, the horrors of Dutreux in Belgium, the Channel Islands and Scottish pedophilia coverups, the long list of Stateside child abuse scandals in which the political caste and their financier buddies are always implicated but untouched...these are the hallmarks of the victory of Keynesianism...a sick, decayed society ruled over by seriously demented perverts whose careers of theft, graft and embezzlement are trumped by their crimes against humanity and nature...

truly, Keynesianism and Libertarianism are joined at the hip, both diversions of dialectical talmudist materialism, controlled opposition movements which seek to delude and degrade the peoples of the West into self-desctruction and complicity in the economic and military terror committed in their name.

In "Barack Obama" we find achieved at last the dynamic coupling of the twin streams of perverted thought and action which the Fabian pederasts sought to bequeath upon us as their legacy to humanity.

Tue, 01/22/2013 - 14:25 | 3176126 Kobe Beef
Kobe Beef's picture

Yep. Welcome to the NWO.

Mon, 01/21/2013 - 20:32 | 3174198 Bluntly Put
Bluntly Put's picture

Ponzians go to jail?

Where? When? Whom?

hahahaha.

Mon, 01/21/2013 - 21:38 | 3174317 Harbanger
Harbanger's picture

Free Corzine! ,so we can catch him.

Mon, 01/21/2013 - 21:46 | 3174337 Mike7.62
Mike7.62's picture

Madoff. NY. 2009. Unfortunately he is the only one-because he didn't work with the approval of the Fed.

Mon, 01/21/2013 - 22:01 | 3174375 Harbanger
Harbanger's picture

Madoff didn't Govern over people, he scrwd his clients, not the general population like a politician does.  I don't have pity for Madoffs clients anyhow, they were greedy suckers who took his bait believing they would score outrageous returns.

Mon, 01/21/2013 - 22:20 | 3174400 CompassionateFascist
CompassionateFascist's picture

Actually, some did: B'nai Brith (ADL) got in and out early, and scarfed about 30 mil. 

Mon, 01/21/2013 - 22:38 | 3174453 optimator
optimator's picture

He schrewed his own people, most of whom thought he was trading on insider information.

Mon, 01/21/2013 - 23:14 | 3174523 Matt
Matt's picture

Outrageous returns?! He was giving 12 percent annually. When he was started his schemes in the 60s, through the 70s and 80s, the 12 percent was not that big a deal. In fact, there are many funds that have returned more than 12 percent in a year. The big hint that something is going on, was the pure consistancy of 12 percent every year, no matter what.

Mon, 01/21/2013 - 23:36 | 3174578 Totentänzerlied
Totentänzerlied's picture

I have been told that during the 80s and 90s, analysts and such were taught that 8% returns are normal.

Tue, 01/22/2013 - 00:59 | 3174780 Matt
Matt's picture

8 percent sounds more like 2000s. 10 year Treasuries yielded 8 percent or better throughout the 80s. If your job was to get 8 percent returns, you could have gone all-in on UST, then sit back and rake in the bonuses for meeting your targets.

Mon, 01/21/2013 - 22:23 | 3174411 clara-to-market
clara-to-market's picture

I agree.

Fuck  Ben Bernanke.

But what's the alternative.

If we go to austerity, we're staring down the barrel of deflationary depression.

So what's a Fed Chairman to do?

http://www.angrysinner.blogspot.kr/2013/01/yesterday-we-went-to-restaurant-for.html

Tue, 01/22/2013 - 01:25 | 3174817 rotagen
rotagen's picture

I'm a Fonzian.  I say its all fecal material from a Jekyll Island Mothman.

Mon, 01/21/2013 - 20:18 | 3174153 TheSilverJournal
TheSilverJournal's picture

On the bright side, if it wasn't for a world fiat monetary ponzi leading to the massive mispricing of silver, there would be no massive mispricing of silver.

Mon, 01/21/2013 - 20:17 | 3174155 Snakeeyes
Snakeeyes's picture

Just lie and pretend Keynes works. 133% increase in debt but only 2.6% real GDP growth over 4 1/2 years? FAIL!

http://confoundedinterest.wordpress.com/2013/01/21/the-last-four-years-o...

Mon, 01/21/2013 - 20:19 | 3174158 Whatta
Whatta's picture

Trillion Dollar coin will fix this bitch.

Mon, 01/21/2013 - 20:24 | 3174174 NidStyles
Mon, 01/21/2013 - 20:30 | 3174176 otto skorzeny
otto skorzeny's picture

read today that 1 in 3 people from Prez brO's home state of IL is living in poverty-he forgot to mention that in his rah-rah speech. green shootz and Hope and Change bitchez.

Mon, 01/21/2013 - 20:38 | 3174209 rhinoblitzing
rhinoblitzing's picture

Prez's home state of... IL...???  I suppose he went to Harvard too. HaaaaHaaaaa... Whoz dat laughing...?

 

Mon, 01/21/2013 - 22:09 | 3174387 jimmytorpedo
jimmytorpedo's picture

You mean Obama's state of Coast Province in Kenya?

Tue, 01/22/2013 - 09:35 | 3175127 PrintemDano
PrintemDano's picture

Regarding his "inauguration", the crowd reminded one of the Nuremberg rallies although the crowd was a shade darker on the outside, and much darker on the inside.

Mon, 01/21/2013 - 20:25 | 3174181 Floodmaster
Floodmaster's picture

Every man should have a job but wait One man can do the work of hundreds ... liberal bullshit ...

Mon, 01/21/2013 - 20:28 | 3174185 NidStyles
NidStyles's picture

Don't confuse Socialists and Progressives for Liberals. They are not the same, and the Liberals as flawed as they were were at least honest.

Mon, 01/21/2013 - 21:00 | 3174250 Harbanger
Harbanger's picture

Bottom line is, they would not have had the ability to create a big welfare state without a debt based keynesian economic system.  The era of big Govt. is oooover folks, it's going bankrupt.  It's pretty clear from reading the article.

Tue, 01/22/2013 - 05:15 | 3174961 smacker
smacker's picture

I agree with you ...except that the elites could always impoverish ever more people through taxation et al to continue funding their glorious welfare state (which is little more than a vehicle for buying votes). It may not work but don't dismiss them trying!

Mon, 01/21/2013 - 21:08 | 3174268 lunaticfringe
lunaticfringe's picture

Hair splitting. All have the same DNA.

Mon, 01/21/2013 - 23:25 | 3174547 NidStyles
NidStyles's picture

Ludwig von Mises was a Liberal, and he was the most outspoken opponent against Socialism and Fascism of the 20th century. In all application he was the last real Liberal that stood up for Liberal philosophy.

Tue, 01/22/2013 - 05:10 | 3174958 smacker
smacker's picture

Fine. I agree that, in the past, 'Liberal' had a different meaning to what it has today. In the UK, informed people tend to describe the original Liberals as Classic Liberals (believers in small govt, sound money, freedom/liberty, Rule of Law etc etc - I am myself a Classic Liberal but there's no political party nowadays which advocates such ideas!), to differentiate them from the modern day Liberals who are mostly Soft Left and many of its members used to be in the Labour Party (mindless and moronic Socialists & Marxists and quite a few wannabe fascists. The current leader of the Labour Party was essentially parachuted in by the Hard Left Trade Union movement and is simply their marionette).

Mon, 01/21/2013 - 21:34 | 3174307 bobert
bobert's picture

Liberal economists in the traditional meaning of the word were the good guys. Labels are such a fickel thing. Better to just explain what you mean.

Mon, 01/21/2013 - 23:30 | 3174560 NidStyles
NidStyles's picture

I refuse to bend my language to deal with Progressive Dialectics. If they want to understand me, they need to learn what the meanings of the words they throw around actually are. I'm not looking to garner favor or fans from anyone anywhere. If they do not want to hear what I have to say, that is their loss. My crowd does just fine without them. Those that are curious will read and search for the answers themselves or ask me.

I have a feeling you already know some of what I speak of, but unfortunately I don't think you are of the same mindset that I am. I've done my work to help educate and save these people. I only put the hints and message forth, it's up to them to find the answers themselves.

 

Tue, 01/22/2013 - 00:19 | 3174710 Harbanger
Harbanger's picture

Progressive Dialectics have already hgjacked the language including the term liberal.  How often do you tell people you're feeling gay when you're cheerful?  I always just say modern liberals so I don't have to go off topic and into all the definitions. 

Tue, 01/22/2013 - 04:57 | 3174953 smacker
smacker's picture

Why don't you explain the difference in your mind between "Socialist", Progressive" and Liberal"? And tell us which political party(ies) represent each group?

I accept there are probably nuances between them and they probably fight among themselves for supremacy. But that doesn't mean they aren't all of the Left.

Mon, 01/21/2013 - 20:28 | 3174183 Temporalist
Temporalist's picture

"Never Forget"

http://news.yahoo.com/photos/undated-image-shows-never-forget-one-most-r...

 

Public trust in government, business leaders falls

"Public trust in business, government and media leaders has fallen in the wake of financial and political scandals, according to a new global survey."

http://news.yahoo.com/public-trust-government-business-leaders-falls-103...

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