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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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Thu, 01/31/2013 - 21:13 | Link to Comment buzzsaw99
buzzsaw99's picture

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

Thu, 01/31/2013 - 21:14 | Link to Comment El Hosel
El Hosel's picture

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

Thu, 01/31/2013 - 21:19 | Link to Comment buzzsaw99
buzzsaw99's picture

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

Fri, 02/01/2013 - 00:31 | Link to Comment trav777
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

Thu, 01/31/2013 - 21:46 | Link to Comment centerline
centerline's picture

2008 was just a fart.  A good one too.

Thu, 01/31/2013 - 22:04 | Link to Comment LetThemEatRand
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.

Thu, 01/31/2013 - 22:21 | Link to Comment centerline
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.

Fri, 02/01/2013 - 09:04 | Link to Comment andrewp111
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!

Thu, 01/31/2013 - 21:17 | Link to Comment fonzannoon
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.

Thu, 01/31/2013 - 21:28 | Link to Comment Freddie
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.

Thu, 01/31/2013 - 23:58 | Link to Comment Gold Dog
Gold Dog's picture

Boy Fred, You REALLY hate the television!

Dog

Thu, 01/31/2013 - 21:29 | Link to Comment Whiteshadowmovement
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...

Thu, 01/31/2013 - 21:34 | Link to Comment fonzannoon
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.

Thu, 01/31/2013 - 21:50 | Link to Comment Whiteshadowmovement
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?

Thu, 01/31/2013 - 22:02 | Link to Comment fonzannoon
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.

Thu, 01/31/2013 - 22:24 | Link to Comment Dr. Engali
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.

Thu, 01/31/2013 - 22:32 | Link to Comment Whiteshadowmovement
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...

Thu, 01/31/2013 - 22:44 | Link to Comment Dr. Engali
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.

Thu, 01/31/2013 - 22:53 | Link to Comment Whiteshadowmovement
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,

Fri, 02/01/2013 - 08:07 | Link to Comment oldmanofthesee
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!

Fri, 02/01/2013 - 09:01 | Link to Comment andrewp111
andrewp111's picture

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

Thu, 01/31/2013 - 23:34 | Link to Comment Freddie
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.

Thu, 01/31/2013 - 22:27 | Link to Comment Whiteshadowmovement
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"

Thu, 01/31/2013 - 22:44 | Link to Comment Whiteshadowmovement
Whiteshadowmovement's picture

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

Thu, 01/31/2013 - 22:51 | Link to Comment fonzannoon
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

Thu, 01/31/2013 - 22:59 | Link to Comment Whiteshadowmovement
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"...

Thu, 01/31/2013 - 23:05 | Link to Comment fonzannoon
fonzannoon's picture

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

Thu, 01/31/2013 - 23:09 | Link to Comment Whiteshadowmovement
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...

Thu, 01/31/2013 - 23:37 | Link to Comment Freddie
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.  

Thu, 01/31/2013 - 21:59 | Link to Comment centerline
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.

 

Thu, 01/31/2013 - 22:03 | Link to Comment fonzannoon
fonzannoon's picture

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

Thu, 01/31/2013 - 22:13 | Link to Comment centerline
centerline's picture

Will definately check it out.

Fri, 02/01/2013 - 06:11 | Link to Comment Disenchanted
Disenchanted's picture

Stephen King wrote The Long Walk under his alias Richard Bachman...

http://www.stephenking.com/library/bachman_novel/long_walk_the.html

Fri, 02/01/2013 - 07:44 | Link to Comment fonzannoon
fonzannoon's picture

Thanks for the correction. I forgot about that.

Fri, 02/01/2013 - 01:18 | Link to Comment Go Tribe
Go Tribe's picture

Hunger games? C'mon.

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

Thu, 01/31/2013 - 21:24 | Link to Comment Dr. Engali
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.

Thu, 01/31/2013 - 21:30 | Link to Comment Freddie
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.

Thu, 01/31/2013 - 21:50 | Link to Comment francis_sawyer
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]...

Fri, 02/01/2013 - 10:13 | Link to Comment marathonman
marathonman's picture

Good job fs - you nailed it.

Thu, 01/31/2013 - 21:23 | Link to Comment aphlaque_duck
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.

Thu, 01/31/2013 - 21:25 | Link to Comment reader2010
reader2010's picture

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

Thu, 01/31/2013 - 21:33 | Link to Comment Freddie
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.

Thu, 01/31/2013 - 21:46 | Link to Comment knukles
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?

Thu, 01/31/2013 - 22:26 | Link to Comment Freddie
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.

 

Thu, 01/31/2013 - 21:24 | Link to Comment The Monkey
The Monkey's picture

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

Thu, 01/31/2013 - 21:35 | Link to Comment centerline
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.

Thu, 01/31/2013 - 21:43 | Link to Comment knukles
knukles's picture

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

And the rest of us caught dying in the middle.

Thu, 01/31/2013 - 22:22 | Link to Comment centerline
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.

Fri, 02/01/2013 - 10:16 | Link to Comment marathonman
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.

Thu, 01/31/2013 - 21:45 | Link to Comment smartstrike
smartstrike's picture

It's the middle and upper classes that destroyed the world. The poor are just poor. This is a very ignorant article, in fact, it's center-piece analogy is downright ridiculous.

FOOD keeps people from being hungry.

STOCK MARKET makes rich very rich.

Is the author saying that eating is like investing in stocks?

 

 

Thu, 01/31/2013 - 22:45 | Link to Comment JR
JR's picture

"Without the ability to create wealth transfers by legally favoring one group over another there would be no 'benefits' for the socialists to distribute." --David E. Keeler, The Indivisibility of Liberty

Thu, 01/31/2013 - 21:50 | Link to Comment Freddie
Freddie's picture

A rising stock market today is actually a leading indicator of the destruction of the middle class, cultural destitution and a society in collapse.

+1 Mike Krieger

Just like Zimbabwe.  The stock market soared while the country and currency imploded.  I always thought from day one that Ob-MAO was America's Robert Mugabe.  I was concerned and now I realize that he really is Mugabe.  Amerika is doomed.

Thu, 01/31/2013 - 21:41 | Link to Comment robertocarlos
robertocarlos's picture

They put it all on 44 red.

Thu, 01/31/2013 - 21:43 | Link to Comment A Lunatic
A Lunatic's picture

It is the one percent that keeps everyone in line as they have the most to lose when shit gets real. Whether they know it or not, they are the front line of defense to the Oligarchs. They are tools, not victims. They deserve no pity.

Fri, 02/01/2013 - 00:20 | Link to Comment Gold Dog
Gold Dog's picture

This 1%'er knows I am the thin line that will have to use my wealth to fight the evil ones when the time comes.

Many of my peers are of a similar mind-set and are ready to "pledge" what it takes to give our country the chance to fight back to what it once was and, Good Lord willing, will be again some day.

I ask not for your pity and I am a tool of good.

EDIT- See JR comment below, he is more elequant than I am.

Fri, 02/01/2013 - 00:33 | Link to Comment A Lunatic
A Lunatic's picture

I shouldn't generalize. See you on the front lines my friend.........

Fri, 02/01/2013 - 00:52 | Link to Comment Freddie
Freddie's picture

Keep your powder dry and continue to make preparations.  This evil in our land and world will do anything and everything to divide us. 

Sat, 02/02/2013 - 11:17 | Link to Comment e-recep
e-recep's picture

you know why to buy pms and land and you think the top dogs dont? even if the bonds and stawks go to hell, those guys will retain their ranks on the wealth ladder.

Thu, 01/31/2013 - 21:59 | Link to Comment tony bonn
tony bonn's picture

mike - this stream of consciousness is a godsend and outstanding understanding of the dynamics in our godless debt ridden morally bankrupted whorocracy.....keep writing....

Thu, 01/31/2013 - 22:10 | Link to Comment Seasmoke
Seasmoke's picture

I think the middle class has just about had enough. I'm not sure if they are going to take it out the lower class or the class above them but they are going to beat some group down. It may start at the Jersey Shore as that middle class is pissed right now.

Thu, 01/31/2013 - 22:14 | Link to Comment RocketmanBob
RocketmanBob's picture

A brilliant thesis. If many members of the middle class would pay more attention to what their elected representatives are enabling, and understood the damage Bernanke and his printing press are doing to the country and to them directly, we mightn't be in the shape we're in today...

Excellent piece by Krieger, and well done Tyler; highlighting it for public consideration.

Thu, 01/31/2013 - 22:28 | Link to Comment dolph9
dolph9's picture

Just don't be the sucker that buys overpriced housing/stocks/bonds.  That's exactly what they want.  They think you are dumb because you are not a multibillionaire.

Thu, 01/31/2013 - 22:37 | Link to Comment JR
JR's picture

“Many of the people in the 1% are at least wealthy and connected enough to still cause serious problems for the oligarchs.” – Michael Krieger

The biggest danger coming from these people as well as the middle class is the realization that the central bank is not only picking winners and losers but it is destroying the American system. When the wealthy citizens of goodwill join the middle class patriots in fighting to save America as a free market and liberty-providing nation, then the banker oligarchs will see an attack the likes of which they cannot now imagine.

As to competition, monopoly and the role of government, Sylvester Petro had this to say:

“In the free society, government keeps the peace, protects private property, and enforces contracts. Government must do these things effectively, and it must do nothing else; otherwise, the conditions absolutely necessary to genuine personal freedom in society are absent. Whether or not a genuinely free society is attainable no mortal man can know; the limits of our knowledge are too narrow.

“But one thing we do know; that until at least the advocates of the free society are fully aware of the conditions necessary to its existence, it can never come about. For they must ever be on guard against new movements, ideas, and principles which would endanger its realization.

“And on the other hand, they must be sharply aware of existing impediments so that they may direct their energies intelligently to the removal of the causes of current imperfections.”

Mike, you have put into crystal clear words what the average person has been trying to say in defense of his property these past few years if only he knew how. At last, his case has been made!

Fri, 02/01/2013 - 00:53 | Link to Comment trav777
trav777's picture

You and the OP clown; wake the fuck up.

where the fuck have you been for the past 30 years?  America that you think you knew is DEAD.  It's GONE. 

It was RACIST.  And that's the beginning and END of it, ok?  You and all you fucking pathetic piece of shit belly crawling whites ALLOWED yourselves to be led to your own destruction and to be labelled with this bullshit and the nation your forefathers built is GONE.

It's fucking HISTORY, get it?

Obama isn't the canary in the fucking coal mine, he's the collapsed miners coughing up blood.  He's a symptom of the latter stages of terminal condition, not an early warning sign.

The early warning was the fucking riots in 67 where useless brown people burnt shit down in an orgy of violence and WHITES accepted the blame for others' propensity to be violent and inability to create or sustain civilization.  The flood of mexicans PERMANENTLY entering the country was your warning.  What the fuck, you actually believed that they were just like you with a fuckin tan, huh?

And it was all IGNORED.  Because you chickenshits were afraid of that faggot jew marxist word "racist."  And they ran game up and down your ass like a drunk whore in a frathouse.

America is dead; get over it.  Fucking Krieger, seriously...fuck you.  Don't come in here preaching like you saw the fucking light when you voted for that piece of shit in the first place, and for the SAME fucking reasons people like you didn't say SHIT when people like him burnt down half the big cities in this nation and commenced to running the Paris of the West into the fucking GROUND.  You just looked the other way and stayed polite and PC and turned and pretended shit wasn't there.  And NOW that the sea of shit is lapping against your doorstep, you're fired up?  GFY.

ANYBODY who voted for Obama is a TRAITOR in the deepest sense of the word.  Half of you idiots don't know what the score is or even what fucking team you're on.

Fri, 02/01/2013 - 02:40 | Link to Comment JR
JR's picture

Trav, I’m laughing so hard I’ve got tears rolling down my cheeks.  I know it ain’t funny; I know I should be cryin’, but, dang, that’s writin’!  I hear ya man. Glad you’re back!

Fri, 02/01/2013 - 06:13 | Link to Comment DosZap
DosZap's picture

“Many of the people in the 1% are at least wealthy and connected enough to still cause serious problems for the oligarchs.” – Michael Krieger

The biggest danger coming from these people as well as the middle class is the realization that the central bank is not only picking winners and losers but it is destroying the American system. When the wealthy citizens of goodwill join the middle class patriots in fighting to save America as a free market and liberty-providing nation, then the banker oligarchs will see an attack the likes of which they cannot now imagine

The latest Poll of American weapons owners said NO way would they obey any new laws, nor turn them in, and the percentage was 65%.

So, this bears you and Krieger ideas out................Bad Moon RIsing.

Finally people have had enough.They will not fire the first volley, but woe to the entity that does.

Fri, 02/01/2013 - 11:18 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Finally people have had enough.They will not fire the first volley, but woe to the entity that does.

Here is where I have a problem with the 2nd amendment crowd.  The FF gave us that right so we COULD FIRE THE FIRST VOLLEY when it was needed.  Why?  Becasue that's what they did.  They knew if the British went door-to-door that individuals could not stand up to them.  Yet the gun crowd has that exact plan.  "When they come to my door.........".

Thu, 01/31/2013 - 22:39 | Link to Comment Multivariate Man
Multivariate Man's picture

I reside very comfortably towards the top part of the 1%, though not in the top 0.01%, and the majority of my clients are in the top 1%.  This article is spot on though the author implies there is something calculated or deliberate about the action of the top 0.01% and above.  In my view, the current maldistribution of wealth has evolved quite naturally as players pursued their self-interest.  Roughly, the bottom half of the top 1% is bought off by the wealth illusion created by equities.  What blows my mind the most is that my social and busines networks and the places we tend to hang or travel to are robust, rich, vibrant, spending, beautiful, cares are far away.  I know the real world exists and and I know the grimy details but it is far, far away.  If you want to journey to the top, read the weekly or biweekly insert in the Financial Times, "Spend It".  This glossy piece says it all.  Let them eat cake or their shoes, it matters not to the 0.01%.

Thu, 01/31/2013 - 23:19 | Link to Comment JR
JR's picture

So, the top 0.01% players pursuing their own self-interests includes ZIRP, the sacrifice of savers to "help the economy,” the use of the President’s Plunge Protection Team (PPT), QE1/QE2/QE3/QEIndefinitely coupled with taxpayer money to keep the stock market up, bailout and inflation, and the windfalls created through fraud initiated through Goldman, JP Morgan and others?

This form of self interest is not exactly the invisible hand. It’s more like visible fingers in the public cookie jar and Bernanke’s heavy thumb on the scale of justice.

In short, it's government-induced wealth transfer from the poltically weak to the poltically stronger.

Fri, 02/01/2013 - 00:22 | Link to Comment Gold Dog
Gold Dog's picture

...and it must stop. It WILL stop, I only hope that there are enough men of good charector to relize that the overall good outweighs any personal sacrifices that they and theirs may have to make to right the ship.

Fri, 02/01/2013 - 00:43 | Link to Comment trav777
trav777's picture

concur.

This is why you have to go places that are not in this rolodex.  Drive in cities in brazil, see families living in a park or on sidewalks on pieces of cardboard.  There is your real world.

The richer people I know are increasingly out of touch.  Too chickenshit scared of reality

Fri, 02/01/2013 - 01:00 | Link to Comment Freddie
Freddie's picture

The Financial Times is another terrible festering propaganda mouthpiece in love with O.  Another Murdoch/Al Walhed Saudi financed propaganda mouthpiece.  I loathe all of TV, Hollywood and 99.8% of the media and newsmedia.

The only outlet even close to the truth that is TV based, I dropped vile O-TV years ago, is Russia Today aka RT. The irony.

The networks of people you mention remind me of the aristocrats of Europe particularly in France circa about the 1800s.  We know how that worked out.  The 0.01% are usually the problem and no one has gotten to them since probably before the 1600s.  They are too well insulated and protected.  

Hollywood calls him Lincoln for a reason.

 

Thu, 01/31/2013 - 22:46 | Link to Comment RopeADope
RopeADope's picture

The current stock market resembles bundled debt instruments with zero underwriting standards rather than a casino. Where have we seen this before and why doesn't the top 10% recognize this?

Thu, 01/31/2013 - 22:49 | Link to Comment Hohum
Hohum's picture

The stock market is for money people that don't know how to invest in actually creating wealth.  That wouldn't be so bad except the same people think they are the cream of the crop.

Thu, 01/31/2013 - 22:49 | Link to Comment gbresnahan
gbresnahan's picture

The rich don't need us anymore.  Now we get free birth control and entitlements, the former telling us to stop reproducing and the latter serving as a bribe to pay off the poor and buy their obedience.  The people (especially the middle class) are pissed off because they are picking up the tab.

Anyone who questions or doubts "mainstream/corporate-owned" media's interpretation of events is given a derogatory label like: truther, conspiracy theorist, constitutionalist, prepper, doomsdayer, etc, and basically equates them all with being some sort of domestic terrorist.  The rich are raping the country with every chance they get and are being increasingly brazen about it  How many times have we witnessed them getting caught abusing the system, in circumstances most of us would do significant time in prison for, yet they always seem to come out unscathed?  As if the rules don't apply to them.  Somehow, the majority still don't seem to be too pissed off.

So what next?  People are waking up but not fast enough.  The rich are afraid too many of us are waking up, and now they want to take our guns.  Can you imagine catching a home invader in the act of raiding your stuff, then with the barrel of your gun in his face he preaches how guns are bad?  This "gun grab" is no different.

Over 80 million Americans are (legal) gun owners.  The rich are outnumbered and outgunned and they know it and fear it.  If the gun grab succeeds, then it is truly over for this country.  If we lose the 2nd amendment, we will never again be able to defend oureselves, and over time our other amendments are sure to erode as well.

Fri, 02/01/2013 - 00:27 | Link to Comment Gold Dog
Gold Dog's picture

The new gun laws will be pretty pussy. It would be nice if they started punishing those that are arrested using them for criminal purposes.

Fri, 02/01/2013 - 08:48 | Link to Comment andrewp111
andrewp111's picture

If Obama had a Democratic House, he would be proposing Australian style gun laws - a total ban.

Thu, 01/31/2013 - 23:08 | Link to Comment jballz
jballz's picture

Food stamps are not a payoff to the poor. They are a subsidy to Walmart and agribusiness and major consumer product companies. They were created to make markets for general foods during the depression and have been built up that way ever since.

Throw out the food stamp bums and watch stocks take a huge hit.

It is all tied togther like a kentucky family orgy and you can't point the finger without three pointing back at you.

Thu, 01/31/2013 - 23:43 | Link to Comment JR
JR's picture

That’s exactly right. The government is subsidizing these industries. When it’s food, it’s processed food – tv dinners, chips and packaged lunch meat; it is not flour and rice and milk. It goes far beyond that. Anyone can see it on the days when the payments are out. These recipients are eating higher on the hog than many middle class families; and the retailers have an interest in passing through many non-food items.

The fashion stores are populated by these people—women are in there buying their wardrobes, and the latest fads for the kiddies…

The system once used by the slum lords has now expanded into retail industries whereby the circuit of taxpayer welfare money can be channeled back to these government-connected businesses and banker interests.

Fri, 02/01/2013 - 00:45 | Link to Comment knukles
knukles's picture

I like Kentucky family orgies.

Fri, 02/01/2013 - 06:19 | Link to Comment Disenchanted
Disenchanted's picture

You sho have a purty mouth Ma...

Thu, 01/31/2013 - 23:47 | Link to Comment U4 eee aaa
U4 eee aaa's picture

History shows that it is not the poor that lead rebellions. It is the disgruntled children of the rich and the middle manager types. Take a look at Gandhi. He wasn't a poor boy. He was a well educated lawyer. Lenin was from a wealthy middle class family and so was Marx.

It is often the well connected insiders who have a close view of the corruption that light the torches and throw the molotov cocktails

Sat, 02/02/2013 - 12:03 | Link to Comment e-recep
e-recep's picture

yep, the revolutionists who will end this mess will come from upper middle class families.

Fri, 02/01/2013 - 00:29 | Link to Comment Gold Dog
Gold Dog's picture

U4, well connected insiders with a well developed sense of right from wrong. Ala our founding fathers.

Fri, 02/01/2013 - 03:27 | Link to Comment U4 eee aaa
U4 eee aaa's picture

....but more often those that are closed out of the booty loop :)

Fri, 02/01/2013 - 02:00 | Link to Comment Son of Loki
Son of Loki's picture

Does this mean my banker still gets his $863,682 bonus for 2012 ? He said his yacht sorely needs a new helipad. I think he is one of the "0.01%'ers."

Fri, 02/01/2013 - 02:28 | Link to Comment sbenard
sbenard's picture

Bubbles Bernanke, sugar daddy to the global elites!

Fri, 02/01/2013 - 06:35 | Link to Comment goldenbuddha454
goldenbuddha454's picture

Adjusted for inflation over the last ten years the market is in the 10-11,000 range.  QE will prove to be a disaster longterm.  Shortterm, enjoy the ride!

Fri, 02/01/2013 - 09:06 | Link to Comment Black Markets
Black Markets's picture

This article is a joke. This guy has wasted the years of his life spent searching for a 'hidden power within the system'.

The stock markets are rising because they are priced in dollars!! Dollars are a currency and their value is being eroded by an accelerating money supply. This article is full of contradictions and the use of biased adjectives is a big turn off.

If you think calling referring to Bernanke as banana Ben Bernanke adds anything to your article then you are deeply mistaken, it makes the whole thing read as an amateur/nutjob fumbling about in the dark (which is what it is).

 

This is poor journalism.

 

If you want to make a point from a soap box, your points will be more powerful if you can deliver them in neutral language. Stop trying to invent soundbites and catchphrases it just makes the whole thing appear ridiculous.

This guy has wasted his life by bringing his deep rooted opinion to everything he surveys, I bet if he had a look at my toaster he would find evidence of the 1% and their plans for a new world order. What a joke.

 

People like this are essentially underachievers who cannot handle their own failings so create some fantasy reality for themselves to occupy, they usually occupy this self delusional world as someone in possession of highly powerful and secretive knowledge.

Rather than attempt to rectify their shortcomings in the REAL WORLD these underachievers waste countless manhours trawling the internet for any evidence to support their self delusional persona.

Fri, 02/01/2013 - 09:53 | Link to Comment honestann
honestann's picture

The author may think the 1% is smarter, but are they?  One of the traps the 0.01% are playing on the 1% (or perhaps 10%) is called the "nominal dollar".  It works like the following, though understand these numbers and percents are simplified to make the point, not intended to be exactly predictive.

As time passes, stocks increase 2x.  During the same period, the dollar as measured by DXY or equivalent bounces up and down by plus or minus 10% or 15%.  The 1% or 10% are "happy" because they imagine they made 100% profits over the period.  So they don't much complain as they pay 20% to 25% (to the 0.01%) as taxes on their profits.

What these morons don't realize, beause ulimately they're just as stupid as the bottom 1% or 10% (albeit with better vocabulary), is that each of their dollars only buys half as much (at best).  Oh, the lie that is the CPI might make them imagine the loss in each dollar is less than 50%, but if they bothered to observe and measure reality, they'd know better.

They'd start my noticing that even their "official measures" (the DXY and CPI) don't match.  The DXY dollar doesn't change, while the reported CPI isn't zero.  What gives?  How can the dollar stay the same as costs rise?  Shhhhh.  The 1% and 10% are too busy/stupid/brainwashed to notice such inconsistencies.

The joke on them is the following: They gained 100% in nominal dollars, they gained 0% in real value, yet they paid 20% to 25% to the 0.01% in taxes.  And all this happened while they imagine they're doing great (100% "gains").

Of course, the 40% to 90% aren't doing any better.  Any wealth they have is probably in real-estate, which is increasingly taxed every year.  So they get fleeced roughly the same 20% to 25% every several years too.

So, who doesn't get screwed?  Nobody except the 0.01%, who are immume from taxes, because the "justice department" has them on their "do not bother" lists.  Perhaps the only folks not being grossly raped are the tiny, tiny minority who hold vritually all their assets in physical gold, silver, platinum, palladium.  Of course, the 0.01% are investing a lot of fiat paper to manipulate those [formerly] markets, so not too many others get the smart idea.

Of course, the 0.01% isn't satisfied just to manipulate the market for real durable (and thus long-term savable) goods.  When you trade your goods for something else, they intend to make it difficult for you to complete your 1:1 value exchange without paying them the same 20% to 25% tax on fictional profits that is imposed on sellers of stock.

The 0.01% really do have mankind fooled.  And when you consider how outnumbered the 0.01% are (as in 10,000 to 1), you really do start to understand why they are spending so much fiat, fake, fraud, fiction, fantasy, fractional-reserve money on creating the most egregious (and permanent) world-wide police state the planet has ever seen.

Fri, 02/01/2013 - 10:32 | Link to Comment tommus
tommus's picture

"The oligarchs do not want angry, roving, hungry masses on the streets..."

 

Yeah, neither do I.

Preventing/postponing anarchy costs society more and more in goods and services (not paper).

What's it worth to you?

 

 

Fri, 02/01/2013 - 10:47 | Link to Comment Apocalicious
Apocalicious's picture

I have been saying this for some time. Higher "corporate earnings" are not an indicator of economic strength in this country, but rather a siphoning off of wealth of the middle class to the oligarchs. Look at corporate earnings of the top 4 firms in all sectors as a percentage of GDP vs. the spread between top and bottom decile income levels. Someone really needs to do a longitudinal and time series analysis of this.

Breaking up every top 3 or 4 firms in every industry would not only create jobs, but also increase ecompetition, reducing the oligopolies' ability to squeeze vendors (i.e. employees) and customers. Porters Five Forces.

If I steal five dollars from you, that five dollars is the inverse of you getting wealthier...

Fri, 02/01/2013 - 10:46 | Link to Comment janchup
janchup's picture

Food stamps for the top 10% would be more accuarate.

Fri, 02/01/2013 - 10:51 | Link to Comment jbvtme
jbvtme's picture

did the psy op sandy hook hoax intentionally arm the middle class so they could take out the 1% when the time comes?  how could the illuminated ones not have anticipated the gun buying frenzi that ensued?

Fri, 02/01/2013 - 13:44 | Link to Comment dark pools of soros
dark pools of soros's picture

" Many in the 1% look upon the poor on food stamps with disdain "

this is the biggest crock of shit painted these days...    the poor are just the straw that the 1% siphon future print press tax dollars through.

follow the money, and see where it settles

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