How To Bend An Economy

Tyler Durden's picture

From Bill Buckler, author of The Privateer

How To Bend An Economy

Once a government becomes involved in “running” an economy, it invariably ends up running it into the ground. The only variables in this process are how long it takes and how prostrate a given economy becomes by the end of it. Because it always ends - sooner or later. Rational economic theory provides abundant proof of WHY this is the case. Economic and political history is absolutely unanimous in their verdict that it always DOES take place. There is no escape from this truth, no matter how many people wish it were not so and how fervently they ignore the evidence of their eyes and their brains.

It took a very long time to enshrine into law the separation of church and state. But it was finally recognised that religion is a matter for the individual “conscience” and that any interference with this is beyond the legitimate role of government. What has as yet been realised by very few is that the individual “conscience” is even more involved in the economic realm than it is in the religious realm. For that reason alone, the separation of economic action and state is equally important. It is impossible to prevent an individual from making choices. It IS possible to discourage or hamper or prohibit that individual from acting on those choices. A threat is usually sufficient, if the individual knows that behind the threat rests the outright use of force if he or she persists. But the INITIATION of the use of force by anyone is precisely what a legitimate government is set up to prevent - or at least to deal with if it occurs.

In the economic realm, ANY threat or exercise of the use of force to hamper or prohibit the voluntary interaction of individuals is guaranteed to inhibit the functioning of the economy. The extent to which force is used is exactly proportional to this inhibition. Once a government gets involved in giving PERMISSION for people to act or in PROHIBITING actions which do not involve the use of force, the economy starts to bend out of shape. The insoluble problem is that once regulation in an economy begins, it cannot go “just so far” and then stop. A government cannot prohibit one voluntary action while remaining aloof from all other possible voluntary actions. The fact of the matter is that any governed nation has two ultimate choices. It can be free - in a situation where the government is TOTALLY barred from interfering in economic exchanges. Or it can be strangled by a government which stands as an impenetrable barrier between choices and the actions necessary to convert them to the building of a free and therefore prosperous nation.

The global “crisis” is a faithful and exact picture of how far down this second road the world has come.

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Fukushima Sam's picture

All power centers are ultimately corrupted and corrupting, whether political or economic or whatever.

Anusocracy's picture

Stupid comment. Government stands alone as being able to force obedience.




Anusocracy's picture

Yes, and you can ignore them. But you can't ignore government.

Jake88's picture

sieg heil meine fuhrer

Bananamerican's picture

"Once a government gets involved in ...PROHIBITING actions which do not involve the use of force, the economy starts to bend out of shape"


francis_sawyer's picture

But the DOW [14k] "IS" the economy... I saw it on TV so it must be true... Time to pull all the troops home, cut defense spending by 30%, take the Fed Funds rate back up to 6%, & put an immediate stop to QE4EVA...


Take this barnstormin' RECOVERY out for a spin & see what she can do...

kliguy38's picture

they already know what it will do.........

Karlus's picture

"they already know what it will do........."


As do we. The reality is that they cannot raise the Red rate because of the impact on Govt debt repayment. I highly doubt new "revenue" aka taxes will work moving forward.


I do agree that there will be regulation around retirement accounts at some point to force mandatory investment in "govt approved" instruments. After raiding the SS bucket for years and tapping people out from a tax point of view (asset, consumption, income, inflation, licenses) this new bucket is about all that there is left besides printing more stimulus.


The only thing that will survive this will be non-depreciating "off book" assets like PMs and perhaps Ammo. Anything "on book" will be taxed and regulated most completely. This includes real-estate which because of property taxes and other costs I dont consider a real asset. You are basically a renter from the govt even with no mortgage.

shovelhead's picture

My property taxes are a bargain.

At least I get something in return for them, unlike FED taxes that buy drones I don't need or want.

unrulian's picture

Bend it like Bernank...Bitchez

CPL's picture

Once the pensions of all government workers are cracked open like an egg, the DOW will be around 27000 then the inflation will go completely apeshit because all that cash locked away in escrow will be put back into the system and thereby 'fungible', taxable and counted.


Any holders of US IOU-Bills aren't going to know what hit them.  Nobody is walking out of this alive financially.


Bullish BTW.  Whatever that means anymore.

francis_sawyer's picture



Is that "Groucho Marx" nose & eyeglass a NEW addition to your avatar [or did I completely hallucinate & miss it in the past]?...

CPL's picture

My cunning disguise...and I'm still fooling around with a cartoonify, alpha channel merge, shrink and sharpen plugin in GMIC/FX Foundry/GIMP.  I've seen it done on some forums and I'm trying to replicate the effect.  

aka a fun waste of time.

chubbyjjfong's picture

"aka a fun waste of time"

Unfortunately a sentence that also succinctly and accurately describes how the TPTB elite treat the masses.  

Silver Garbage Man's picture

The sooner this massive world wide Fraud, Coruption, and Crime bubble blows the better for humanity it will be. It will be very painfull but it has to happen.The sooner the better.

Anusocracy's picture

Whatever replaces it will be worse. Mother Nature has no need for uppity thinking individualists.

She has to claw them back into the collectivist morass of the human ant colony.

Genes must rule.

NidStyles's picture

Says the uppity thinking individual...


You collectivists are so damn stupid that it's funny.

Cognitive Dissonance's picture

As the government craves, then demands, more and more power, most of "We the People" become almost infantile in our dependence upon the hierarchal power structure (aka government) to protect us from ourselves.

The general population has devolved from the more mature and self assured age of a 30 year old back down to the middle teens, somewhat rebellious but still very dependent. Next step is further down the scale to the high single digits. And then, finally, back to the future of the terrible two's.

Just in time for the adult diaper explosion to be fully embraced.

Karlus's picture

While I think people my age (41) are caught in the middle of costs for kids moving back and adults, most I know are taking a pretty gaundiced eye at the parents who never saved and squandered the money they did have on luxury.

I truly think a growing industry will be adult warehousing where the adult surrenders their SS payments (~$800/mo) and the kids pony up some money to cover the rest. It literally just becomes the adult monthly you pay.

CPL's picture

Historically back to normal for the human race.  Multi-generations of a clan (not with a K) living in the same house driving each other crazy and helping one another.  It spells the death of some service industries (pre-childhood education I'm looking at you) and government departments (Family services).

The economies collapsing have GOOD unintended consequences.  It repairs what was destroyed with greed.  The family.  The Tribe.  Blood.  Pick your poison.

Besides, at 41, I would guess you would much rather have a Grandma/Grandpa/Papa/Gran/Nana teaching the kids than a complete and total stranger.  Regardless of creditation or temperment, that's what anyone outside of a family circle is.  A stranger. 

Nanas/Papas > 20 something year old waiting to find mr right minding your kids.


As for the money lost, there wasn't a choice in the matter.  It was a mathmatical guarentee that the outcome is always collapse.  Makes as much sense as attempting to make an egg whole from an omlette because an egg is involved.  It's done.  

Karlus's picture

I agree. Moms was trained as a teacher. Time to put that to work for the newborn

CPL's picture

Everyone's kids are better for it and healthier for it.  Ever heard of the grandma that starved her grandchildren outside of the very rare media notation.  Or the grandpa that doesn't have something for kids to do, fun or not.  I haven't either.  There are some good things that come out of a shitty situation.  This is one of those things that once gained back will not be lost for so little next time around.

It's just going to be a bumpy assed ride for those that manage to stay standing.  So having walking living libraries of the past isn't such a bad thing.  It why any good project I've worked has a stateman/woman, they aren't leader but they have veto.  

My parents generation turned my grandparents into products, my children's grandparents will be transitioned to become grandparents again, either by choice or means.  Old looking after young, young looking after old in time.  Family becomes balanced again.

We can all see this now in the wicked jump in homecare, with legal concessions and tax schemes.  As if a legal ruling and a tax break would have changed the outcome, it's the principal reason for this undirected mess now that is just as dangerous for it's architects as for the users.  

Widowmaker's picture

The meat you are lookng for is already cooked and eaten, along with the young and old alike - monetized.

Without a critical facet of enlightenment (of any sort) the "family" doesn't exist.  Without the family the community doesn't exist.

Both are decimated by the manipulation of money and self worth, government is the catalyst and the boot.  Lanny Breuer lets Fraud Street off the hook for crippling the world and yet it's the pot-head trying to open a small business that has the government boots take everything he has.  Justice?  Dead.  Privacy?  None.  Taxes?  Up.  Savings?  Punished.  All symptoms of enlightenment revoked by government.

Take a look anywhere you like that is poor, do you see strong families or despairation and decay of your "family-values?"   If you are honest with yourself you will see rot and decay are pervasive, just as much as enlightenment absent.

Nanny fuckup goverment and fraud capitalizm-jism (both exported by the the 1% Inc.) will assure that grandma and grandpa see their offspring as little as possible. Symptoms the boomers welcomed such as two-working parents until they die, the "retirement" pipe dream, etc meant to assure a good life is unachievable by the vast majority, etc.

Family "balance" competes with government-assured "unbalance."  Fraud money is the rod and guarantee.

The "family," absent government, is an illusion and nothing close to what you are saying will actually occur without total collapse of broken governement and money.

q99x2's picture

And as the backlash begins to lash back the slash and burn strategy of the banksters will increase: first because more of it comes to light, second because they will try to escape the sinking ship with as much loot as possible.

They are losing now and we should see this increase at a faster rate until a bang. Then everyone including the banksters will know that things have changed.

Whiteshadowmovement's picture

Have you guys noticed how often times an article is presented with nothing but a "by Tyler Durden" on the homepage but then when you click through to the actual article it turns out it was a "guest post"

Its surprising the Tylers would go out of their way to lend their own credibility to some of the fringe "articles".

This one reads exactly like a long rant posted by some ZH'er on one of the forums here with lots of outraged CAPITALIZED letters

Whiteshadowmovement's picture

Fair enough, but the point here is that in a cerain way, the Tylers are tricking me into clicking on it by feigning authorship

TheFourthStooge-ing's picture

Whiteshadowmovement said:

Fair enough, but the point here is that in a cerain way, the Tylers are tricking me into clicking on it by feigning authorship

Big deal. So you've irretrievably lost two seconds of your life by clicking on it to see that it is a guest post. Life must be pretty good if that's the magnitude of the difficulties you face. (Incidentally, those two seconds can't be all that valuable to you, as you've sunk more time than that into posting about it.)

ZH provides a free smorgasbord of information that you won't find elsewhere, and you're going to begrudge them a fraction of a cent of ad revenue? Small potatoes, Bubba, small potatoes.


Totentänzerlied's picture

If ZH is anything like most other small multi-contributor blogs, the "editors" post nearly everything under a single CMS account, regardless of who wrote it, because they don't want to give anyone else publishing rights within the CMS, probably for security and simplicity.

Whiteshadowmovement's picture

Thanks for your comment, it was probably the only sane response here. I understand what you mean, but all Im suggesting is that often times, it is very clear what is a "guest post" and whats written right by the tylers (like I said, Mark Grants guest posts every other day are easily differentiated).. Yet every once in a while, one the homepage you will see an article not really marked one way or the other, with just a "submitted by Tyler Durden". As we all know, I think most ZH readers are more likely to give articles penned directly by the Tylers more clicks than others by guests. So as much as Im grateful for ZH, I for one would be even more humbly grateful if they could make clear which articles are written by whom on the front page. I really dont see whats so outlandish about that suggestion.

NidStyles's picture

Then quit reading the articles. What will it take for to grasp that concept?

Obama4Ever's picture

ZH: Love it or leave it. The echo chamber must not be disturbed.

Terminus C's picture

Sometimes guest posts are listed, sometimes not.  I find on the weekends you get this more as there are no "Tylers" writing that much on the weekend, especially Sunday.  As others said... don't like, don't read.  No one is making you read the posts.

As for the echo chamber comment, sometimes it does feel like an echo chamber but in reality... what else is there to say?  This whole shit show is so fucked up beyond all recognition and it gets hard to see anything else.  I, for one, attempt to keep an open mind to all commentary until someone 'proves' themselves to be a troll.  Hell, I even occasionally find myself agreeing with Ananonomous (in his temporary lucidity of random blobbing up American citizenism).

This clusterfuck we call an world economic system is going to go supernova at some point in the 'near TM' future.  we are all here just waiting for the real pain to begin.

Whiteshadowmovement's picture

Good comment and as I said, fair enough, but isnt there room for a litle truth in advertising on here. The bottom line is that if they had made it clear whose article this was as they often do with guest posts (mark grants articles are never confusing that way), I could have saved my time in clicking on it. I think we might all agree that we give a little more preference to article penned directly by the tylers. And as you correctly pointed out, its not that guest posts are all worthless, many of them are great reads, Im just the kinda guy that likes to know what hes clickong on ya know?

Also youre right, i wouldnt have had this lovely exchange with all these closed minded thumbs down had i missed the opportunity!

Anusocracy's picture

If you were a paying customer you could demand truth in advertising.

Since you are not, keep it to yourself.

TheFourthStooge-ing's picture

Terminus C said:

I, for one, attempt to keep an open mind to all commentary until someone 'proves' themselves to be a troll.  Hell, I even occasionally find myself agreeing with Ananonomous (in his temporary lucidity of random blobbing up American citizenism).

Although AnAnonymous was far more coherent, sensible, and, infrequently, humorous back in 2010 than he is now, he'll still make the occasional insightful comment, for which I'll gladly give him a green arrow.

I'm still not entirely sure that he's a troll. He may just be someone with a different, and at times bizarre, perspective. Is he a kook? Probably, but at least he's original, which is more than I can say for Max Fischer/Kantbelieveit.

gould's fisker's picture

How fucking stupid are the both of you--Tyler is tricking you into clicking on links on a site that you're obviously trolling to tell its inhabitants that they are slack jawed neanherthals, right?  What has you so upset about the site--it's not like this is one site out of ten on the net, it's one out of billions.  So what's the problem--have to bop around to sites that disagree with your world outlook. How stimulating. Go back home ot momma and fuck yourselves.  Yours, Slackjaw

Whiteshadowmovement's picture

Well Slackjaw, Ive never even thought about having the time to troll online, anywhere. It does amaze me though that to many of you ZH is a religion. To me its just the best market info anywhere, period. With some good and some not so good articles on the side.

Anusocracy's picture

It is not a religion.

There are those that worship the government boot heel on their necks, and those that don't.

Is that too difficult to understand?

For all you government lovers: 400,000,000 people killed by government in the 20th century.

Your insane desire to control others comes at a very steep price.

Whiteshadowmovement's picture

Bro, you know what would really help you- smoke a joint once in a while

NidStyles's picture

Yeah, let's just get high and forget what is going on... That will just make everything better and fix it all man...

TheFourthStooge-ing's picture

Whiteshadowbowelmovement said:

Bro, you know what would really help you- smoke a joint once in a while

Take your own advice, Bubba. Maybe if you sparked up a doob before reading ZH, you wouldn't get so butthurt about wasting two seconds of your life clicking on a link to a guest post that you spend half the day posting a dozen comments about it.

Whiteshadowmovement's picture

Haha, listen it just grew out of something to do on my ipad a long car trip. Its just something ive often thought of while being a reader here and as I started posting recently I wanted to bring it up to see if anyone else had noticed/wondered about how there sometimes is/sometimes isnt a distinction betweem Tyler articles and republished ones. This article I found was really poorly written (imho) and so I thought a good point to bring it up. To be be honest I didnt even expect anyone to actually reply. So it really surprised me to see such a level of rejection and opprobrium among the audience at the very idea of even marking out Tyler authored articles from others. There is almost a sort of cult undercurrent here that I wasnt aware of in the form of: "how dare you ever profane what is published here?!"

In any case, lets all smoke a doob and enjoy life (im just saying that to piss some of you off but I do mean it!)

Whiteshadowmovement's picture

You know what I often wonder sometimes? How do the Tylers decide whether to place an article that didnt originate with p them (such as this one) on the body section of the homepage versus the 3 articles at the top the screen, which are always clearly sourced from other contributors. I wonder what the criteria is for that distinction?

css1971's picture

It's pretty clear up at the top:

From Bill Buckler, author of The Privateer

And I'm pretty sure that everything is "submitted by Tyler Durden".

Don't see the issue. You can even give individual articles different ratings.

Whiteshadowmovement's picture

Right, but the point is you dont know its from Bll Buckler until *after* you click it.

And as Ive said a couple of times now, in many case thr Tylers DO make clear its a guest post.

See this:

It was sourced and written by the Tylers.

See the page were on, its just someone elses article the Tylers republished.

Doesnt anyone care to know the difference beforehand?