• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

Trust Me, This Time Is Different

Tyler Durden's picture




 

Submitted by Simon Black of Sovereign Man blog,

By 1789, a lot of French people were starving. Their economy had long since deteriorated into a weak, pitiful shell. Decades of unsustainable spending had left the French treasury depleted. The currency was being rapidly debased. Food was scarce, and expensive.

Perhaps most famously, though, the French monarchy was dangerously out of touch with reality, historically enshrined with the quip, “Let them eat cake.”

The Bourbon monarchy paid the price for it, eventually losing their heads in a 1793 execution.  But it took the French economy decades to finally recover.

Along the way, the government tried an experiment: issuing a form of paper money. It didn’t matter to the French politicians that every previous experiment with paper money in history had been an absolute disaster.

As French Assemblyman M. Matrineau put it in 1790, “Paper money under a despotism is dangerous. It favors corruption. But in a nation constitutionally governed, which itself takes care in the emission of its notes [and] determines their number and use, that danger no longer exists.”

Translation: This time is different. We’re different. We’re smarter. We won’t suffer the same fate. TRUST US.

Within a few years, hyperinflation had taken hold in France. A measure of flour that sold for two francs in 1790 was selling for 225 francs by 1795. Everything soared. Carriage hires. Butter. Sugar. Everything.

Naturally, the French government decided to fix this problem by printing even more money, doubling the money supply from 7 to 14 billion units in a six-month period.

When these measures also failed, the French government imposed every control in the book– price controls, capital controls, information controls, people controls. They confiscated lands, they filled the prisons, they waged genocide against their own people.

History shows there are always consequences to entrusting a paper money supply to a tiny handful of men. The French experiment is but one example. Our modern fiat experiment will be another.

Like the French, our politicians think this time is different. Our central bankers think they’re smarter. And they want us to trust them. After all, what could go wrong?

Ben Bernanke, a man who has expanded the Federal Reserve balance sheet by nearly 300% during his tenure as central banker, just wrapped up Congressional testimony downplaying the risks of his own money printing:

“We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery…”

It’s also quite interesting that the Federal Reserve Chairman is discussing the ‘stronger’ economy, especially when by the government’s own numbers, US GDP contracted in the 4th quarter of 2012. Meanwhile the price of everything from food to fuel keeps getting higher.

Simultaneously, politicians in the US are racing to avoid imminent ‘sequestration’ budget cuts. They’ve created a problem caused by excess spending, and their solution is to ensure they can keep spending.

The French were in the same boat in the 18th century. During the time of Louis XV, no one could imagine how French society could possibly function if they cut the welfare system or defense budget. So they kept spending… kept going into debt… and kept debasing the currency.

We know what happened next.

The US already must borrow money just to pay interest on the money they’ve already borrowed. The political elite is dangerously out of touch. This time is not different. Assuming otherwise is really dangerous.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 02/26/2013 - 22:28 | 3280357 BoNeSxxx
BoNeSxxx's picture

We can only hope...

Tue, 02/26/2013 - 22:39 | 3280405 otto skorzeny
otto skorzeny's picture

unfortunately things go one of 2 ways after a revolution-like the US-or like France w/ The Terror

Tue, 02/26/2013 - 22:44 | 3280421 BoNeSxxx
BoNeSxxx's picture

Today's 'kings' are less easy to spot than they were during the French Revolution.  They operate largely in secrecy which is why you don't see the Rothchilds on any Forbe's list of 'Richest Men'... Let alone names like Baring, Lazard, Erlanger, Warburg, Oppenheimer, Schroder, Seligman, Speyers, Mirabaud, Mallet, Fould, etc. Yet they are the ones who should swing...

Tue, 02/26/2013 - 22:57 | 3280479 DJ Happy Ending
DJ Happy Ending's picture

The generations of politicians who allowed them to print fiat and happily took it to fund wars and deficits are the ones who should swing.

Those guys are just opportunists who preyed on the evil and the weak.

Tue, 02/26/2013 - 23:09 | 3280517 Caviar Emptor
Caviar Emptor's picture

The world is changing around them. They are as blinded by their avarice as the Bourbon monarchs once were

Tue, 02/26/2013 - 23:20 | 3280556 markmotive
markmotive's picture

So how long until America collapses and people are starving in the streets?

We're a long way from a bond market collapse it seems.

http://seekingalpha.com/article/1203761-the-bond-bubble-might-surprise-you

Tue, 02/26/2013 - 23:42 | 3280647 Supernova Born
Supernova Born's picture

Can we please at least keep the guillotines the same?

I'm looking forward to the guillotines.

Tue, 02/26/2013 - 23:52 | 3280675 TwoShortPlanks
TwoShortPlanks's picture

Perhaps most famously, though, the French monarchy was dangerously out of touch with reality, historically enshrined with the quip, “Let them eat cake.”

If only it were a true story.

Wed, 02/27/2013 - 00:03 | 3280698 neutrinoman
neutrinoman's picture

What she actually said was, "Let them eat brioche." The hyperinflation came later, during the French Revolution.

Go to Versailles and see the inner hall where Marie Antoinette fled from the mob. Maybe the Eccles Building will one day have a similar display.

Wed, 02/27/2013 - 00:58 | 3280810 McMolotov
McMolotov's picture

I clicked on this article hoping for a better picture of Marie's rack.

Wed, 02/27/2013 - 08:22 | 3281173 espirit
espirit's picture

Perhaps the 21st Century version of the French Revolution might end the same way, but with a twist.

All the Oligarchs, Banksters, and Crony Capitalists - down with the ship!

http://www.guardian.co.uk/world/2013/feb/26/titanic-2-launch-new-york-replica

Wed, 02/27/2013 - 00:27 | 3280763 ImReady
ImReady's picture

Why you no like cake? 

Wed, 02/27/2013 - 04:42 | 3281020 Bankrupt from B...
Bankrupt from Belgium's picture

Ah Monsieur - with you on that one. 

Wed, 02/27/2013 - 04:49 | 3281026 Redhotfill
Redhotfill's picture

+100 for guillotines!  Although I'd rather see Constitution Avenue decorated with those pols hung from the light, and telephone poles.

Wed, 02/27/2013 - 08:09 | 3281158 new game
new game's picture

RUSTY AXES ON STUMPS

Wed, 02/27/2013 - 11:44 | 3281803 MachoMan
MachoMan's picture

Be careful what you wish for.

Tue, 02/26/2013 - 23:49 | 3280666 Renfield
Renfield's picture

I'm happy for both groups on the lampposts to make sure all bases are covered.

Wed, 02/27/2013 - 09:19 | 3281295 AnAnonymous
AnAnonymous's picture

The King class in 'american' societies is the 'american' middle class.

They are in power and self indiction is a big thing in 'americanism'.

Wed, 02/27/2013 - 12:26 | 3281962 A Nanny Moose
A Nanny Moose's picture

This presumes that the outcome of either revolution differs in some meaningful fashion. There is no difference, other than the pace at which tyranny creeps.

The real alternative is to resist the temptation to tell everybody else what to do. A state of Statelessness.

Wed, 02/27/2013 - 03:19 | 3280957 philipat
philipat's picture

"Trust me, This time it's different"

OK so that means "Let them eat Horse"??

Tue, 02/26/2013 - 22:30 | 3280359 Stuart
Stuart's picture

Couldn't agree more.  This will end badly, particularly for those who tens of millions armed with guns feel were the source of the corruption. 

Tue, 02/26/2013 - 22:37 | 3280397 otto skorzeny
otto skorzeny's picture

so basically anybody that draws a check from the govt at any level.

Wed, 02/27/2013 - 12:31 | 3282018 zuuma
zuuma's picture

The USA (and, really, everywhere) now enjoys a scenario where enough votes are truly purchased to keep the regime going.

This will run until it completely blows up.

Taking ANYTHING no matter how small, away from a government recipient produces un-fucking believable shrieking & protesting. No exceptions. 

So nothing is ever taken away. The media assists with this. Which is amazing since they grow ever more impoverished as the regime strengthens itself. Also amazing, because totalitarian regimes ALWAYS viciously purge the media.  They think they're safe. Ont the "right" team.

Ha!  Just wait.

All this crap about sequestration isn't even a cut.  It's only a tiny reduction in the RATE of INCREASE in spending.

Until that one day, when the EBT cards don't scan. The Obama phones have no service.

The money STOPS.

Things happen.

 

There's a "reset" of some sort.

^^^^^^^^^^^^ Time passes. ^^^^^^^^^^^^^

It's the future.  

All those money troubles are in the past.

Most non-productive individuals will have passed away - one way or another.

Will the USA (if it's still called that) be a republic?

Will we vote & elect leaders?  How would we all vote in the USA if our votes weren't bought? If we voted only on principles?  It would be interesting.

Will we just vote ourselves more free stuff & start the cycle again?

Or will our new dictators give us bread & circuses to distract us while they build up comfy island retirements someplace, like now?

Is this our permanent cycle?   prosperity--> free shit mania --> war --> reset --> prosperity --> free shit mania --> war..... and on, and on?

 

I do wonder.

Tue, 02/26/2013 - 23:15 | 3280528 Kitler
Kitler's picture

Unless the Source of Corruption can make things end badly first for the tens of millions with (and soon to be without) guns.

Tue, 02/26/2013 - 23:32 | 3280602 The Gooch
The Gooch's picture

"Make things end badly" might happen, but "without" ain't gonna happen.

Wed, 02/27/2013 - 01:20 | 3280841 RockyRacoon
RockyRacoon's picture

You think that the "people" won't give up their guns if the laws are passed to do that very thing?  If the U.S. goes all Australia on us, there will be boatloads of guns turned in for destruction.   Just look back at how much gold was turned in when it was declared illegal to own.   And -- remember this -- gold was money then.  They're not called sheeple for nothing.  Those who have made it known that they kept their weapons will be declared traitors and turned in by the grandma that lives next door.   The U. S. is no different from any other group in the long run.   TPTB are trying to let this thing unravel slowly so control can be maintained.  Good luck with that.

Unless -- we go all France on 'em first.   Let them eat lead.

Wed, 02/27/2013 - 10:33 | 3281526 Vendetta
Vendetta's picture

indeed, however how delightful will it be for the gun collectors from the govt to go get the guns from the other 100 million who won't turn their guns in?  With 1,000 raids a day it would 'only' take 3 years to get 1 million and with each passing day, the resistance would get stronger and organized.

Tue, 02/26/2013 - 22:30 | 3280365 vmromk
vmromk's picture

Bernank......when this experiment you created goes BOOM, I wouldn't want to have the last name Bernanke.

Tue, 02/26/2013 - 22:32 | 3280373 booboo
booboo's picture

I would like to see the government disarmed prior to this event as we all know how they will respond if we le them keep their guns.

Tue, 02/26/2013 - 22:37 | 3280390 SheepDog-One
SheepDog-One's picture

Yep! The ones I don't trust with guns is the goobermint! They're all psychopaths!

Tue, 02/26/2013 - 22:33 | 3280376 mharry
mharry's picture

So where does one aquire a guillotine?

Tue, 02/26/2013 - 22:48 | 3280440 williambanzai7
williambanzai7's picture

Home depot, aisle 13

Tue, 02/26/2013 - 23:39 | 3280628 bagoshine
Wed, 02/27/2013 - 00:08 | 3280691 sitenine
sitenine's picture

THANKS! That's just priceless! And they are only 190€! Fuckin' ay! I want one bad ;-)

This page even has excellent drawings on how to build one! This information should be shared vigorously!

Wed, 02/27/2013 - 01:10 | 3280828 CompassionateFascist
CompassionateFascist's picture

is only a miniature guillotine. Would work for Bloomberg tho...

Wed, 02/27/2013 - 01:56 | 3280887 sitenine
sitenine's picture

There are two. The one on top is 2.2 meters - that would likely work, yes? - but there are also detailed instructions, so you could build one to your own specs. The bottom one is a miniature for 9.95€ which I agree would be perfect for Bloomberg!

Wed, 02/27/2013 - 07:04 | 3281114 Grimbert
Grimbert's picture

The blade on this guillotine and when you see them on TV are massively wide compared to the one you can see at the Conciergerie that chopped Marie-Antoinette's head off. After all it only needs to be as wide as the hole in the wood beneath

http://iwassomewhere.files.wordpress.com/2011/03/guillotine.jpg

 

You can't really see the scale but it is tall and top-heavy and not very wide. 

Wed, 02/27/2013 - 08:27 | 3281187 espirit
espirit's picture

Barrett .50 Cal = Portable guillotine.

Wed, 02/27/2013 - 10:37 | 3281537 Vendetta
Vendetta's picture

yeah but it has to heavy in order to do the job... unless of course you purchase my new and improved hydraulically powered guillotine for only $199... its slow but works every time.  Please no quips about how it looks like a log splitter.

Tue, 02/26/2013 - 22:33 | 3280380 besnook
besnook's picture

as long as the fed and congress don't let the people earn any money and maintain the anti riot programs(ss and snap) everything will be grand in the malthusian empire. subsistence living will be the new middle class and you will like it.

i see a digital guillotine invented in the near future where the crowd determines blade speed and the victim is face up without a head cover.

Wed, 02/27/2013 - 01:23 | 3280846 RockyRacoon
RockyRacoon's picture

This is the modern age, people.  Guillotines are barbaric.  The Germans have come up with a new microwave that should prove efficient.  It seats 300.

Wed, 02/27/2013 - 04:53 | 3281032 Redhotfill
Redhotfill's picture

Leave it to Hans and friends to be modern and efficient. 300 really?  We need one that will seat about 538 though, give or take a few.

Wed, 02/27/2013 - 10:37 | 3281534 RockyRacoon
RockyRacoon's picture

If those 538 had allowed the electric infrastructure updates we'd be fine.  At this point there would be fires breaking out in Idaho due to the overload.

Wed, 02/27/2013 - 04:49 | 3281018 Renfield
Renfield's picture

<<i see a digital guillotine invented in the near future>>

THAT would be a fun online game. I wonder if Anonymous has any game designers in their midst? Develop it, put it up for widespread piracy, and every budding revolutionary could practice chopping the heads (or hands, or genitals), off of <insert image of corporate/govvy criminal here>. Future versions could simply add more characters as suggested by fans. You could even have a "Jury of Peers" level where the avatar gets a chance to get off, or can make a deal by turning in a higher-up, and of course a "Pardon" card. Or a "Survivor" version where you could play out the Prisoner's Dilemma.

It'd be fun designing the avatars for that too. Shit what I wouldn't give for some talent. Alas I must settle for writing satire.

Wed, 02/27/2013 - 08:34 | 3281201 espirit
espirit's picture

What a brilliant idea!  Video game designers should use the most popular CongressCritter/Bankster/CronyCapitalist figures as the adversaries in most shootem' up online violent wargames.

Direct the anger appropos.

Wed, 02/27/2013 - 08:39 | 3281207 espirit
espirit's picture

Personally, I'd like to see Bernanke's mug as the Whack-a-Mole.

What a stress reliever that would be.

Wed, 02/27/2013 - 10:44 | 3281554 Vendetta
Vendetta's picture

absolutely, and it would be a true educational tool for the kids with no worries about random, wanton violence ... it would be focused violence against fiat evil doers who hide in plain sight with position, wealth, title and privledge ... ill-gotten and ill-deserved as it is.

Tue, 02/26/2013 - 22:38 | 3280398 q99x2
q99x2's picture

This is from the demons at CNBC 

A three-ounce serving of roast horse has 149 calories, 24 grams of protein, and five grams of fat. The same amount of beef tenderloin has 179 calories, 24 grams of protein, and nine grams of fat. Horse milk, which some Central Asians drink in fermented form, has one-third the fat of cow's milk.

Tue, 02/26/2013 - 22:40 | 3280410 SheepDog-One
SheepDog-One's picture

The biggest whores in human history.

Tue, 02/26/2013 - 22:47 | 3280432 adr
adr's picture

Just getting us ready for when we find out Wendy's starting using horse after Dave kicked the bucket and his whore kids took charge.

Do NOT follow this link or you will be banned from the site!