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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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?

 

 

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

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.

robertocarlos's picture

They put it all on 44 red.

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.

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.

A Lunatic's picture

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

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. 

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.

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....

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.

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.

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.

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!

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.

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!

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.

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.........".

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%.

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.

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.

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

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.

 

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?

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.

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.

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.

andrewp111's picture

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

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.

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.

knukles's picture

I like Kentucky family orgies.

Disenchanted's picture

You sho have a purty mouth Ma...

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

e-recep's picture

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

Gold Dog's picture

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

U4 eee aaa's picture

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

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."

sbenard's picture

Bubbles Bernanke, sugar daddy to the global elites!

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!

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.

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.

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?

 

 

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...

janchup's picture

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

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?

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