How The Stock Market Became The "Food Stamps" for the 1%

Tyler Durden's picture

Via Michael Krieger of Liberty Blitzkrieg blog,

The price of anything is the amount of life you exchange for it.
- Henry David Thoreau

Society is like a stew. If you don’t stir it up every once in a while then a layer of scum floats to the top.
- Edward Abbey

When the rich wage war, it’s the poor who die.
- Jean-Paul Sartre

The Stock Market:  Food Stamps for the 1%
For most of the past four or five years, I have spent the majority of my time studying the dominant forces that fuel the power structure that exists in these Unites States today, and indeed throughout the world.  My education began quite suddenly and unexpectedly in the middle of the last decade when I started understanding fiat money, Central Banking and the global monetary system.  Since then, I have expanded my understanding to mainstream media brainwashing, the military-industrial complex, the role of the political oligarchs in Washington D.C., the corruption of the food industry under the complicity of the FDA itself and much more.  The more I peered under the curtain, no matter what the industry, the clearer it became that the system had no chance of survival under its current form.  What’s worse, it became obvious that the very small 0.01% of the population that I call oligarchs (financial and political), who are actively gaming the system for their own pleasure, are well aware of the system’s terminal nature.  That’s why they are rapidly putting in place the police state grid.

That said, this article is not about the implementation of the surveillance state.  I cover that pretty much daily these days.  This post is more of a philosophical stream of consciousness; a guilty pleasure that I have not engaged in as of late.

I have mentioned many times in the past that food stamps are just a payoff to the poor.  While I think a permanent and expanding welfare state is completely and utterly destructive to an economy and culture, I do not demonize these folks.  The vast majority of them would like to work and be productive.  They are victims and this is being done to them quite intentionally.  It creates dependency.  It keeps them off the streets.  It’s an unspoken bribe plain and simple.  The oligarchs do not want angry, roving, hungry masses on the streets while they strip mine what’s left of the economy.  Food stamps, disability and all sorts of other freebies take care of this segment of the population as the oligarchs continue on with their crimes and prepare for the day of reckoning (hence the surveillance grid).

However, the oligarchs have another problem to deal with.  This problem is the huge group of people that resides in between them and the poor.  Ideally, they would like to shove all of them into the poverty category and keep them barely alive and on dole of the government.  That way, the politically connected large corporations that do not pay taxes and receive bailouts can continue to pay them peasant wages while the government takes care of the rest.  It’s a win-win.  The situation I just described is exactly what is happening as we speak and has been occurring at an ever frequent pace since the coup of 2008.  This is exactly why people are buying guns, gold and are extremely negative on the economy and the future of the United States.  I recently discussed this in my post Gallup Poll: Americans Most Negative on the Nation and Economy in 30 Years.  If you read the Gallup data in detail you will see that this level of negative readings only occur during very bad economic times.  The average person can feel themselves getting poorer despite the nonsense spewed by the mainstream media.  Their standards of living don’t lie and no amount of false statistics can change that.  As John Adams famously said:  Facts are stubborn things.

Stubborn indeed; and this is where the stock market comes into play.  Banana Ben Bernanke has not made it a secret that he is directly targeting a higher stock market with his purchasing power destroying money printing.  He has made that clear from pretty much the beginning.  The idea is that a higher market will improve the balance sheets of pensions, individual retirement accounts and also create a psychological impact that will make people feel confident and thus boost the economy.  It is the last point that is of course most important. If the latter does not happen then the boost in stock prices is merely an unsustainable bubble that will burst and all the “good” that was done to balance sheets will be undone with a vengeance at some point in the future.  The latter did not happen.

As much as people like to talk about the 1% versus the 99%, the real winners since 2008 have been the oligarchs.  The 0.01% have benefited much more than any other class in terms of both money and power.  It’s the 0.01% versus everyone else and the quicker we recognize that, stop fighting amongst ourselves, and push them aside the better it will be for our species.

 

As I have repeatedly stated, the oligarchs are using the current period in between financial panics to put in place the surveillance grid they plan to use on the population once the SHTF.  It is of extreme importance that the masses stay apathetic and obedient in the process.  Hence food stamps for the poor and the stock market for the 1%.

I grew up around the 1%.  It’s my socioeconomic class. I know the 1% intimately.  There’s nothing special about the 1%.  Most of them are very average and very lucky.  Of course there are many, many exceptions but there are exception in all classes.  Sure they are slightly more educated than the rest of the population, but on average are not any more intellectually curious than the 99% and are just as easily manipulated by propaganda and more importantly money.

More than any other group, the 1% has been convinced that the stock market represents some sort of leading indicator of wealth and prosperity.  Nothing could be further from the truth.  Sure, the stock market can function as such an indicator.  It is such an indicator when the rising stock market reflects a dynamic, capitalist economy where new industries and companies are rising to the top and improving standards of living for the populace.  It represents the opposite indicator when it merely reflects the ownership interests of the oligarchs in a crony-capitalist, fascist economy that is picking away at the dying carcass of what little economic freedom still remains.  This is what a rising stock market actually represents today.  When people look at it they should understand it is merely a measure of the oligarchs getting wealthier and more powerful and you becoming more of a debt slave.  It represents their interests in multinational corporations with record profit margins because they refuse to pay their employees a living wage.  A rising stock market today is actually a leading indicator of the destruction of the middle class, cultural destitution and a society in collapse.

The stock market is like slop in a pigpen.  It is a key instrument used to keep the 1% from getting antsy.  Unlike the middle class (a group that isn’t falling for any of the tricks), many of the 1% work on Wall Street or related industries and own stocks.  Many of the people in the 1% are at least wealthy and connected enough to still cause serious problems for the oligarchs.  They must be kept quiet as the coup that started in 2008 is brought to fruition.  Then they will be left high and dry like everyone else.  This is the role that the stock market is playing at the moment.

So as the 1% sits around analyzing a casino, the poor collect food stamps and the middle class dies.  Many in the 1% look upon the poor on food stamps with disdain, yet little do they realize they are on food stamps as well.  It’s called the stock market.

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buzzsaw99's picture

The .01% have made enemies all over the world so we have that going for us when the shtf. [/sarc.]

El Hosel's picture

The fans are blowing, the shit is everywhere. WTF?

buzzsaw99's picture

what shit? What fan? i don't live in syria hose head

trav777's picture

if an idiot like Krieger is in the top 1%, then yeah you have to pretty much just be lucky to get there

centerline's picture

2008 was just a fart.  A good one too.

LetThemEatRand's picture

I'd go one step further and say it was a shart.   The taxpayer is the groomer of the stool, and we ain't seen nothing yet.

centerline's picture

Yeah.  I agree.  Dot com was the fart.  This was the shart.  And I can hear some rumbling sounds getting louder.  Damn.  It's going to be ugly for sure.

andrewp111's picture

A complete shitstorm driven by geopolitical and oil shocks. A hurricane of semi-solid waste straight from Blue Plains covering all of the Washington DC area, complete with live sludge puppies riding the wind. Oh, what fun!

fonzannoon's picture

"More than any other group, the 1% deperately need to believe that the stock market represents some sort of leading indicator of wealth and prosperity"

Fixed it.

Freddie's picture

+1

Fonz.

Great article by Mike Krieger.  He is right on the mark.  Kudos to the Tylers as well for awesome daily content.   Clinton knew that if the market was up - he was home free.  The difference was the bond market kept him in check on spending.   We have blown through any checks and balances.

The sheep watch TV and Hollywood's daily shit and believe the fake reality and lies.  If you watch it - you support it.

Gold Dog's picture

Boy Fred, You REALLY hate the television!

Dog

Whiteshadowmovement's picture

I could effectively sum this guys article up very simply:

The plan looks exactly like a pyramid= proportionate stock market wealth effect for top 0.1%, 1%, 10% and then to maintain middle class life for those with 401ks and pension alike. Foodstamps for everyone else (soon to be 100 mil) so we can suck up everybody who doesnt own stawks into a quasi lower middle class consumer segment to make as many babies as possible so we never ever face the risk of running out of casting material for reality tv shows. These are the people you see fighting over trinkets at doorbuster sales. Black Friday to eventually become the Hunger Games...

fonzannoon's picture

If you guys have never read "The Long Walk" by Stephen King, it is a great read. I think the hunger games stuff is not out of the realm of possibility.

What I also find amusing is the people i see with big money have had a real hard time in this market because they keep fighting it, or they bought apple at 700 or the facefart ipo. But the mid level guy who just set his 401(k) and forgot it is getting a real kick out of this.

Whiteshadowmovement's picture

Personally, I deal only with high-net worth private clients. Nearly all Europeans, and nearly all from the baby boom generation. I can easily group them into 2 sets:

-those who dont really have ANY idea whats going on, they just know they nearly lost everything a few years ago for some reason or other and that there might be inflation in the future. They dont care what I do or what positions I take, they simply have in their mind the idea that they should be getting an 8-10% return to sustain their wealth. Most of them do not even follow the benchmarks. They trust me to deliver for them, as I have these past years and tend to be more happy go lucky by nature.

-the second group used to do this on their own until they were HOPELESSLY left in the dust these past few years and decided to seek out a professional as they have grown far too old and out of touch with the markets and just cant bear to lose more money doing exactly what you just mentioned (buying AAPL at $700 etc) This group closely scrutinizes everything I do and requires constant reassurance that all is well. What they really want from me is someone who can perfectly time this market, really theyd like me to operate like an algo and constantly pick tops and bottoms, and think they do me a favor by emailing in "what-ifs" about particular positions lol. They get all their news from TV and the financial times.

This latter group is very interesting because its their psychology that the Bernank plays into. You see, being Europeans they were all terribly afraid of bad news there and when they were selecting which benchmark, almost all of them chose the S&P for me to outperform. But then in 2012, even though I had a very good year and handily beat the S&P (even in Euro terms), it was a disappointment for them because of course the DAX went up nearly 30% and this was gigantic news on the front of the FT for months. This not only excited their greed, but now felt I might be too cautious because I only had about 15% of holdings in Europe. Ive even had one guy tell me he wants me to, and I quote, "actively manage" 50% of his portfolio in DAX etf's from now on to make sure doesnt miss another rally like this.

Wow. Right?

fonzannoon's picture

What I find interesting about what you say is that the clients who know they nearly lost everything have it in their mind that they "should be getting 8-10%" and tend to be happy go lucky by nature.

I prob don't deal in as high of a net worth crowd. But the crowd I deal with also know they nearly lost everything. They, up until very recently, were only concerned about capital preservation, and rarely are happy go lucky. Only recently have they started quoting benchmarks and become concerned about making sure they catch this rally. That is why I feel pretty good we are about to take some sort of a ride down, however temporary.

Dr. Engali's picture

The crowd I deal with are almost all conservative. They want as little volatility as possible. The bulk of them are happy with 8 to 10%. I've been with the bulk of my clients through two major crashes and we successfully navigated through both of them, so they put a lot of faith in my judgement. The hard part for me is I know longer have faith in the system, so when I talk to clients I have to tread lightly. I usually try steering the conversation towards precious metals, but maybe one in ten want anything to do with it.

Whiteshadowmovement's picture

Thats really interesting doc, I actually find myself in exactly the opposite situation. Their friends talk about nothing but gold at dinner parties. They all ask each other if they should be buying lol! In fact, I all the time get questioned by both groups if maybe now they should go long gold. I patiently explain that in my opinion gold is not for trading, if you want to make money trading there are much better instruments out there that dont get slammed with the precision timing of a swiss railway, so they should be buying physical and expecting to give it to their heirs if they really want to own gold.

The first group accepts it and relishes regiving this advice at their next dinner party. The latter group sort of stews on this but then get nervous about all the what ifs of storing gold. Every once in a while when PMs rally ill get an email from one of these guys in sort of a see i told you so kind of tone but then it gets slammed right back and they never bring it up again...

Dr. Engali's picture

When I talk to them about precious metals I'm cautious. All our conversations eventually come to QE and the affects of printing. They will usually ask what happens if the "dollar goes to heck". That's where I talk about precious metals for wealth preservation. But they don't want to have anything to do with gold laying around their house or "buried in the basement". It's funny because not one if them trust what's going on but very few of them are willing to take steps to address it.

Whiteshadowmovement's picture

Lol,

they don't want to have anything to do with gold laying around their house or "buried in the basement"

Thats almost word for word what I get to hear after I tell them to buy phyz if they really care about gold.

As far as far as wealth preservation. Im a big fan of hard assets also, just like you guys, buy I just dont think PMs are far too rigged. I always advise my clients at the end of the year to withdraw some funds and put it either into art or classic cars, I do my best to council them on both markets and put them in touch with reputable dealers I know,

oldmanofthesee's picture

Was going to write something in response, listing all the reasons a 75 year old is not comfortable buying gold/silver, storing it, buying bread with it, etc., but then I said, f#@k it!

andrewp111's picture

They must fear being killed by home invaders if they have gold buried in a basement floor safe.

Freddie's picture

All three of you should tell your clients - "Gold, silver and bullets - bitchez!"

Looks like Fonz and the fellow in Europe are starting to see these people shake off the fear and go back towards greed.  Sounds like a topping of the ponzi.   time to remind them of the not so distant 38-40+% losses.  But like Dr. E said - the system is a joke.

The public and even advisers still have faith in the scum on CNBC and Bloomberg.  ALL TV is shit.  They all lie for the regime.

Whiteshadowmovement's picture

Fascinating fonz, i love talking shop with you guys. Heres the thing- its actually for the very reason that you just mentioned that I think the Fed wont pull the rug out from under them. Bernanke is soooo close now...

Hes almost got retail back in. Bro imagine if they sucker in retail over the course of 2013 and then ramp that shit 20%+ in 2014- imagine it man, it would feel like the 80's all over again. "Its morning again"

Whiteshadowmovement's picture

Good talking to you guys, its getting late here so ill see you guys tomorrow

fonzannoon's picture

Let me ask you this. I saw you asking about where the top is on the euro on another thread. Assuming the top is almost in and we reverse. That spells at least a mini correction, no? As far as if they sucker retail in....I can't say it's not possible, and I totally admit I am biased, but I have a hard time with it. Tyler said it on here a while back. The markets have flip flopped. Now people buy stocks for income and bonds for capital appreciation. You said it yourself when you said grandma will be getting a negative yield in her checking account, but she will be making 8% in her bond fund right?

Later man

Whiteshadowmovement's picture

Nah man, granny will get 4% at best in her bond fund. I think thats the Bernankes goldilocks threshold, anywhere under there is ok

Granny will have to go SPY and that is no joke, she really will

And yeah man, of course well keep having mini cofrections, just like in 2012, the Fed needs volatility as the oil that makes the engine churn, not too much, just enough and always changed on schedule.

I think as far as the euros concerned (and you can imagine with EU investors who all want euro denominated returns, that shit is metastasizing like a cancer into my returns) they most likely will give France a turn fairly soon and then we get some mild correction in EU stocks and I would think (and Im biased) a return to below $1.30. I really cant say though, i just cant understand the logic behind this strong euro. My investors all think it has to do with their european prIde- the idea that a rallying euro proves they really are better than those american naysayers. They honestly think the dollar is weakening because it "deserves it"...

fonzannoon's picture

Agreed about the euro and good call with France, and yes, the dollar deserves it. Catch you tomorrow.

Whiteshadowmovement's picture

Its funny though theyre right for the wrong reason completely they think the beauty contest is won hands down by the euro (kinda like why Schiff lost all that money betting the wrong way into the crash). Really though, theyre missing the fact that its really euro strength, not really dollar weakness, dxys been in this range for ever.

See you guys,
Over and out...

Freddie's picture

Why is the dollar lower?  For all of Europe's problems - you do not have O.  Baroso, Van Rompouy and the EUSSR are scum but they still "ain't" O.  

Europe also has a few more sane areas like Germany, N. Europe, the Baltic states and some solid countries in Eastern Europe like teh Czechs.   The USA has Mugabe aka the sch*arz Hi**er.  

centerline's picture

I'll have to check that book out.  Thanks.  Absent some of the real stupid stuff in the Hunger Games, it was sort of scary.  Not sure we would get from here to there... but, it makes sense in terms of what it seems most "elite" have in common regarding thier station and what the rest of us are worth.

 

fonzannoon's picture

The Long Walk Centerline. You will absolutely feel like you are the main character. That book nailed it.

centerline's picture

Will definately check it out.

fonzannoon's picture

Thanks for the correction. I forgot about that.

Go Tribe's picture

Hunger games? C'mon.

How few politicians would have to be put away for the rest to surrender?

Dr. Engali's picture

I like the food stamp analogy. I think I'll use that in the future. I have to disagree with one point though Michael.... the coup started long before 2008. It began in 1913... 2001 was the beginning of the end and 2008 was the ringing of the bell to get the final preps in place.

Freddie's picture

I think it was before that with the Civil War run by european bankster families.   The real reason Abe was killed was the banksters did not want Lincoln to send the slaves back to Africa.

francis_sawyer's picture

Closer ~ Timewise ~ but it was because Abe didn't borrow any money that they could print out of thin air at 30% interest [& the concept actually worked & Abe was in favor of keeping that system going]...

~~~

It was about GREENBACKS over JOOBUX... [There, Engali, I said it... Now ~ you have proper reason for a conniption after you scour for typos]... Please use proper KELSEY GRAMMER when formulating your reply]...

aphlaque_duck's picture

Most of the 1% seems quit old and rigid in their thinking. SS will come through, gold is a scam, my house and stocks will keep going up, government data means something. Ya dad, it's all ging to keep goin "up" just like in the fucking weimar republic.

So they'll just kill off the old people through trickery, then hire half the young people to kill the other half. Free thinkers GTFO - we're the 0.01% and I hope there will be some of us left to rebuild.

reader2010's picture

Anyone weeping for the mindless Middle Class? God Save the Queen!

Freddie's picture

The middle class in America have enabled their destruction by watching Tv and Hollywood.  They gave them total control.  Dub ***k baby boomers I know still believe in TV beecause they were mindless children of the Age of TV. 

Dumb sheep buy the lies of Tv and Hollywood aka Operation Mockingbird.  They almost deserve what they are getting.

knukles's picture

I do not watch TV and Hollywood. 
I am neither poor nor 1%
I am being squeezed by the non existent inflation, contained never to go up health care costs and the no tax increases whilst getting absolutely no section8, food stamps or the like.

I'm paying for all that shit.

And I deserve it?

Ex-fucking-cuse me?
What demographic are you part of, pal? 
The leeches or the uber-wealthy?

Freddie's picture

Welcome to The Party Pal!

http://www.youtube.com/watch?v=vD94dVu8lqQ

My apologies because you are not the standard drooling baby or echo boomer who drools in front of TV and Hollywood's shit.  They voted with their clickers and some in 2008 + 2012 for their own death panels.

 

The Monkey's picture

It's at the point where it's an overvalued bubble.  Good luck.

centerline's picture

Not sure the "payoff to the poor" is the most fitting term.  More like containment... pacification.  Else the poor burns the place down.  It's about keeping the lid on the place until it is time to unleash hell on earth... or even better, they manage to beat down the middle class right and proper and we wind up with a Hunger Games future.

knukles's picture

Bread and Circuses.
Food stamps, Sec8 housing, TV, iCrap and porn.

And the rest of us caught dying in the middle.

centerline's picture

Yeah, I had a long talk with the wife a few years ago when the writing was on the wall.  Explained that happiness is going to be difficult if bent on maintaining a standard of living that is going to decline.  That if we could make a list of what gets ditched, shut down, cancelled, etc. as each leg of this journey occurs, that we would be better off.  She really didn't believe me then, but is starting to come around.  So far it has been a tough ride, but the more she comes around the easier it will go.  I figure just about the time we get in sync the bottom will fall out... lol.

marathonman's picture

Welfare is the political stabilizer for the Fed to keep inflating this ridiculous debt based monetary system.  Unfortunately it is poisoning me in the middle class.  I guess Hillary would say that a few eggs have to get broken to make an omelette.