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Niall Ferguson – The Great Degeneration

Tyler Durden's picture


While Harvard historian Niall Ferguson's off-the-cuff remarks during the Q&A were in his words "as stupid as they were insensitive", the core message of his presentation was clear: the party of the last 20 years is now over and the longer we fail to address the real issues the bigger the hangover will be in the future. The central question Ferguson asks is whether our institutions, corporations and governments, are degenerating. As Lance Roberts of Street Talk Live notes Ferguson believes that without addressing the structural problems that plague the economy from production to employment – stimulus will fail. The reality is that the 'punch bowl' won't fix employment growth, economic growth or the rule of law.


Via Lance Roberts of Street Talk Live blog,

I am at the 10th annual Strategic Investment Conference in California which is put on annually by Altegris Investments and John Mauldin.   Niall Ferguson is the Laurence A. Tisch Professor of History at Harvard University, a Senior Fellow of the Hoover Institution at Stanford University and a Senior Research Fellow at Jesus College at Oxford.   He is also the author of 14 books including the must read “The Ascent Of Money: A Financial History Of The World.”   The following are the notes from his presentation.

Capitalism and the rule of law the central theme of Niall’s forthcoming book “The Great Degeneration.”  

What is it that ails us?   Has there been enough stimulus or is the current economic malaise a symptom of something else?

Adam Smith – brought forth the idea of the “stationary state” where economies transition from growth to stability. However, it is the rule of law that allows countries to grow.

Historically, what makes nations strong is the guarantee that justice will be done. This is what separated Europe from China during the 1800’s. Today, the west is now approaching the “stationary state.”

So, the central question of the “great degeneration” is whether our institutions, corporations and governments, are degenerating.   There are four symptoms of degeneration:

  • Breakdown of the contract between generations.
  • Excess regulation
  • Rule of lawyers
  • Decline of civil society

Generational Contract

Each generation has a responsibility to the next. Currently, we have violated the contract between our generation and the next. In order to restore the generational balance we could currently have to do one of two things:

  1. Immediately cut, and make permanent, all government outlays by 30%
  2. Immediately, and make permanent, increase in all federal taxes by 60%

The problem is that if these measures are not implemented immediately the percentages required to restore the generational balance rise each and every year.

While this is what is required to achieve generational balances – the individuals responsible for such decisions, however, are pursuing the opposite path – spend more and tax less.

Regulatory Excess

One of the major constraints to economic growth and the second pillar of the degeneration of our institutions is excessive regulation.

“Unlike my arch enemy Paul Krugman”….who believes that the financial crisis was not caused by deregulation – the reality that there was plenty of regulation over the financial institutions. (Enforcement of those regulations is another issue entirely) that ultimately were at the epicenter of the crisis.

The financial crisis was really a result of an increasingly complex financial system. However, in response to the financial crisis, the immediate course of action was to complicate the system further by adding layers of new regulation (Dodd-Frank, Consumer Protection, Etc.)

However, the problem is that by making a complex system more complex – the outcome is not stability but rather instability. Instability leads to inevitably bad outcomes.

The Rule Of Law

Dodd-Frank demonstrates the primary problem with the rule of law. Statutes that cover thousands of pages are ineffective, cumbersome and impedes growth. The complexity of recent laws such as Dodd-Frank, Affordable Care and others, along with our current tax code, would have our founding fathers and those of the Gilded Age reeling from disbelief.

However, here is the real problem. The world is no longer under a rule of law - but rather a rule of lawyers. The U.S. has the highest cost of law of any other country in the world. The rule of law is supposed to be speedy, efficient and effective. However, the rule of law has been corrupted by the legal system for self-serving needs.

There are three key indicators of the health of the “rule of law.”

  • Legal System and Property Rights
  • Regulation
  • Summary of Economic Freedom

Unfortunately, all of these measures have declined dramatically since the turn of this century. The outcome of this decline over the last 13 years is that it is more difficult than ever to do business in the U.S.   Compliance and regulatory costs are on the rise which reduces profitability.

Note: For evidence of this thought process simply review the top three concerns of small businesses that is inhibiting them from hiring and expanding – taxes, poor sales and government regulation.

The decline in the rule of law has led to daunting decline in the view of American Institutions. America was once the envy of the entire world - that is no longer the case.   Of the 22 measures of institutional quality, covering everything from property rights to bribery, the U.S. is not at the top of the list in ANY category. More disturbing is that today – the U.S. is soundly beaten by Hong Kong on every measure.

The Decline of Civil Society

Lastly, the decline of civil society is most disturbing. One way to look at this is by looking at the active membership is voluntary associations which has plummeted in recent years. Americans are no longer actively involved in civil society and now depend on the government to “solve problems.”

The problem with this, of course, is that the decline of the civil society also leads to a decline in economic output. Dependency on government to solve social issues has very little economic benefit. While the rest of the world is getting better in term of building better institutions – the U.S. is getting progressively worse.

Bright Spots

However, the good news is, as compared to others, is that the U.S. is ageing less rapidly. China, as an example, will be harshly impacted by an aging population in the next two decades.

For the U.S., despite have a completely flawed and non-existent energy policy, the country is undergoing and energy revolution that is just now becoming apparent. Natural gas is the new gold rush.

While a large portion of the U.S. will continue to languish due to regulatory and fiscal policy – there are four growth corridors:

  • Great Plains
  • Third Coast Region
  • Intermountain Region
  • Gulf Coast

However, the boom in these areas is not due to just the location of natural gas but rather pro-business regulatory and tax policies. If the current Administration was paying attention they would take the time to emulate the state governments that are growing versus declining. (The problem is that these are all red states)

There is no question that institutions matter. It explains why the developed economies are struggling versus emerging markets.   The problem is that, despite mainstream media commentary and Keynesian economists, the decline of institutions cannot be saved by monetary policy.

In other words…Washington is killing economic prosperity.

“The U.S. has the right to be stupid…and has been exercising that right for years.”

We have allowed our government to whittle away at the rule of law and replace a vibrant economic system with a European style welfare state. If you want to be stupid…keep doing what you are doing.


Worried about the U.S. – What of Japan?

The main lesson to be learned this year is the limit of monetary policy.   The story last year was that the Central Banks are the only game in town. The story this year, is that despite stimulus spending which is simply an anti-volatility policy, the economy will not achieve “escape velocity.”

I predict that the limits of monetary policy will be witnessed by the end of this year. We have a structural economic policy problem – not a monetary one.

Question By Paul McCulley

“The long run is a misleading guide to current affairs…in the long run we are all dead.”


Are we in a liquidity trap, are we at a zero bound of interest rates and stuck at 8% unemployment?

Keynes was a homosexual and had no intention of having children. We are NOT dead in the long run…our children are our progeny.   It is the economic ideals of Keynes that have gotten us into the problems of today.   Short term fixes, with a neglect of the long run, leads to the continuous cycles of booms and busts. Economies that pursue such short term solutions have always suffered not only decline, but destruction, in the long run.

Have Corporations Usurped Government?

“It is corruption when corporations can buy regulation.   It is corruption when laws are sponsored by Wall Street.”  

It is a sad state when the current level of corruption of the U.S. government is what was once only associated with third world countries ruled by dictators. The problem is that crony capitalism is a profound predicament in the U.S. and we now suffer from a third world disease.

What Is The Solution To Restore Growth?

The fiscal problems are a function of structural problems. Without addressing the structural problems that plague the economy from production to employment – stimulus will fail.   The reality is that the “punch bowl” won’t fix employment growth, economic growth or the rule of law. The party of the last 20 years is now over and the longer we fail to address the real issues the bigger the hangover will be in the future.


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Sat, 05/04/2013 - 15:46 | 3530356 LetThemEatRand
LetThemEatRand's picture

"the reality that there was plenty of regulation over the financial institutions."

My head just exploded.

Sat, 05/04/2013 - 15:47 | 3530358 ghandi
ghandi's picture

Oh, these college educated cunts.

Sat, 05/04/2013 - 16:20 | 3530407 LetThemEatRand
LetThemEatRand's picture

He hates Krugman so he some redeeming qualities, but he thought Mitt Romney was the bees knees.  He's been an academic most of his life, and the short time he was not in academia he was a banker.   

Sat, 05/04/2013 - 16:39 | 3530429 flacon
flacon's picture

Most people (baby boomers especially) don't realize that a Government BOND is a contract of ENSLAVEMENT for their children's generation. Government BONDAGE. 


Most people think it's just a cute play on words.... but oh how WRONG they are! There is also no TREASURE in the TREASURY - except the slave contracts known as BONDS for the souls of the working man. 


Let the chips fall where they may. 

Sat, 05/04/2013 - 16:46 | 3530448 James_Cole
James_Cole's picture


Have the people writing these idiotic articles even passed high school? Why do they make so many blanket claims without any supporting argument or citation?? 

Gawd these writers are shit. This guy makes a bunch of blanket claims with no argument or evidence. Doesn't that bother anyone else? 

The financial crisis was really a result of an increasingly complex financial system.

Oh? Complex in what way? How did the complexity lead to collapse??

The decline in the rule of law has led to daunting decline in the view of American Institutions.

Cite when this happened and why it happened.

Americans are no longer actively involved in civil society and now depend on the government to “solve problems.”

Give examples, Gawddamn. Am I just to assume this is the case across all communities / all industries? 

The problem with this, of course, is that the decline of the civil society also leads to a decline in economic output.

Why am I to assume this is 'of course' the case?

For the U.S., despite have a completely flawed and non-existent energy policy, the country is undergoing and energy revolution that is just now becoming apparent. Natural gas is the new gold rush.

Why was't it apparent before? What are the problems in the energy policy, what's the relationship between the energy policy and 'civil society'? 

If the current Administration was paying attention they would take the time to emulate the state governments that are growing versus declining (The problem is that these are all red states)

What are the key differences? Why is the administration not paying attention? What can 'civil society' or the 'rule of law' do in these instances?

In other words…Washington is killing economic prosperity.

Again, I'll take your word for it?

It is a sad state when the current level of corruption of the U.S. government is what was once only associated with third world countries ruled by dictators. 

Cite a time period when the US government had a low level of corruption and contrast that with the present please. 


Sat, 05/04/2013 - 16:55 | 3530466 LetThemEatRand
LetThemEatRand's picture

This is how academia works.   A guy like this makes a bunch of unsupported and frankly unsupportable claims, and cites himself as authority.  He is an expert, after all, being a student of such things.  Then other academics will cite his statements in future works, thus lending credibility to themselves ("here is a citation to prove my point"), and to the original author simultaneously.  Once this goes on for a while, the big circle jerk lends credibility on both sides.  The original author will say, "how can you question my work?  It's been cited by numerous leading academics?".  

Sat, 05/04/2013 - 17:12 | 3530483 flacon
flacon's picture



...and then an Ivy League University creates courseware on this and teaches it to students who have no money so they buy government loans in order to be indoctrinated. It's a perfect scam system. 

Sat, 05/04/2013 - 17:40 | 3530527 Pinto Currency
Pinto Currency's picture


James Cole,

You say:

"  Gawd these writers are shit. This guy makes a bunch of blanket claims with no argument or evidence. Doesn't that bother anyone else? 

The financial crisis was really a result of an increasingly complex financial system. "


Agreed.  It wasn't complexity.

The 2008 financial crisis was the onset of bubble failure.  A 20 year final monetary bubble (and thus all of the asset bubbles) was blown by the world's central banks, coordinated by the BIS while the c.b.'s and bullion banks rigged the gold market so that "tell" of rocketing gold prices wouldn't advertise their perfidy as the party roared.

The bubbles are coming down one by one now with the bond bubble being the final one that will let go.

Thanks to our central planners at the central banks - and to the bullion banks who rigged the gold price. The populace are increasingly understanding your part in all of this.


Sat, 05/04/2013 - 18:41 | 3530609 Fredo Corleone
Fredo Corleone's picture

"Immediately, and make permanent, increase in all federal taxes by 60%..."

Ferguson here dutifully parrots his "arch enemy" Krugman. Simply another Oxford-indoctrinated European soclialist - with an ever so subtle, yet ultimately negligible, rightward bent - whose grand, "considered" solution is to balance the Government's morbidly obese budget upon the backs of the already financially-strapped governed.

"Hypocrisy can afford to be magnificent in its promises, for never intending to go beyond promise, it costs nothing."

- Edmund Burke

Sat, 05/04/2013 - 19:10 | 3530646 Imminent Crucible
Imminent Crucible's picture

He presented first the alternative of immediate and permanent 30% cuts in government spending, but you ignored that. He offered "one or the other, take your pick".

Was it careless reading, or just the urge to bash?

Sat, 05/04/2013 - 19:18 | 3530659 Richard III
Richard III's picture

Why, then, not a reduction in bloated government expenditures by 60%, and taxes remain level ? Why should the public be punished for a government hunger for expansion which grows unsated ?

Sat, 05/04/2013 - 19:26 | 3530660 Pinto Currency
Pinto Currency's picture


In the first 60 seconds of this clip, Robin Williams shows he knows far more about our financial crisis than Niall Ferguson:


We now need Robin Williams to give us 60 seconds on Bail Ins.  Who needs another book by Ferguson.


Sat, 05/04/2013 - 19:57 | 3530708 clymer
clymer's picture

Please Ferguson. Go back to licking Heinz scrotum, you neo-feudalist. (60% ..?) Spoken like a man who would proudly sacrifice individual freedom and human potential, in exchange for globally consolidated power in the hands of few inter-generational monied sloths who sign his paycheck

Sat, 05/04/2013 - 21:53 | 3530934 CompassionateFascist
CompassionateFascist's picture

Ferguson is a Rothschild/Globalist cognate. They pinned an award on him for his sychophantic bio of the ultimate Moneychangers. Still, his book on WW I is quite good, and he is always worth a listen. Esp. when he disses that faggot-pedophile Keynes. Discount teh apology.  

Sun, 05/05/2013 - 16:33 | 3532660 Manthong
Manthong's picture

he has a massive book on the "rothschilds" (wink.. wink.. nod.. nod) as well..

oy vay.    and all this time I thought it was a deformation.. or a dislocation .. or a misallocation


Sun, 05/05/2013 - 11:13 | 3531984 Occasional
Occasional's picture

Why should the public pay? Well, um,er, ah, because at the end of the day, it's 'the public' that goes to the polls and elects the people who, in the end screw them over. If they voted for people of intelligence and loyalty to our (US) founding principles, we'd generally be in good shape. In short the first world, despite it's much esteeemed 'education' system, is populated, by poorly formed mobs of infanile narcissists who vote for folks they believe will give them free stuff in exchange for pacification. When they see they are no longer gonna get their free stuff, then the folks they've punted responsibility for their lives to are the assholes. Don't get me wrong I'm no fan of the leadership, but 'we' put them there. They are exceedingly self seeking....

Oh. Hey, look at that! They're just like the folks who elect them! Aaaaaah yes, grasshopper; the beauty of 'representative government'.


Sat, 05/04/2013 - 17:17 | 3530509 James_Cole
James_Cole's picture

This is how academia works.   A guy like this makes a bunch of unsupported and frankly unsupportable claims, and cites himself as authority.  He is an expert, after all, being a student of such things. 

I think it's more how the internet works - slap a bunch of random claims together and then click publish. No need to make an argument, gather sources, edit etc. 

If one were to try and make a counter-argument to what this guy wrote, first you'd have to separate out all his variety of claims (there are numerous) and coutner based on assumptions of what he was referring to - making the whole thing futile.  

Sat, 05/04/2013 - 17:27 | 3530528 newworldorder
newworldorder's picture

All 3 of you are correct. Ferguson has no skin in the game. He is an articulate, well educated man who has been adopted as a historical sage by both the right and left in America.

I would have a lot more respect for him if he started pissing people off in this writings. No generalities please - start naming names of all the thieves that he knows form Wallstreet and Academia. 

Sat, 05/04/2013 - 19:15 | 3530655 Imminent Crucible
Imminent Crucible's picture

Well, he seems to have pissed off virtually everyone on this comment board including you, so that's a start. My take is that Niall Ferguson is useful when he criticizes; he very often gets the problems right. It's when he goes into solutions that he gets into trouble, and that is no doubt the result of his Harvard indoctrination. The Ivy League schools do not educate; they prepare their subjects for induction into the elite class that enunciates policy and shapes the public discourse. It might not be quite so odious if they did not uniformly exempt themselves from the edicts and onerous burdens they lay on the rest of us.

That is, the rest of us who trouble ourselves to pretend to obey the Brahmins. For myself, I can't be bothered.

Sat, 05/04/2013 - 19:32 | 3530675 newworldorder
newworldorder's picture

I will give you a +1 for your astute comments. That  may slightly ofset the minuses you will get from the "ivy league protection society."

Sat, 05/04/2013 - 19:51 | 3530707 Imminent Crucible
Imminent Crucible's picture

You're an inspiration, NWO. I agreed with you so much that I gave myself an up arrow. One for you, too, in the interests of fairness and balance.

Sat, 05/04/2013 - 17:19 | 3530515 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

This was a Q&A, not an academic paper

Sat, 05/04/2013 - 17:44 | 3530548 James_Cole
James_Cole's picture

It's not a Q&A it's 'notes' from a lecture. I doubt Ferguson's whole talk was unsupported claims and if the author is presenting a summation of the talk he needs to present at least the basics of actual argument otherwise it's useless.

If I were to say, "Goolsbee gave a talk the other day, here's what I got - Obama is a much better president than Bush II, as can be seen with the Dow way up" it would actually be more of an argument than what this guy came up with but still useless. 

Sat, 05/04/2013 - 19:18 | 3530657 e.blair
e.blair's picture

Your objections are idiotic.  It is an hour long talk. 

Sat, 05/04/2013 - 19:26 | 3530665 Imminent Crucible
Imminent Crucible's picture

I see the Down Fairies are out in force this evening. Must be the weather.

Sat, 05/04/2013 - 19:53 | 3530710 Keegan11
Keegan11's picture

Dude, it's a fucking Q&A ... Take his course if you want detail . Tool

Sat, 05/04/2013 - 21:59 | 3530890 James_Cole
James_Cole's picture

Hey guess what I just saw a debate on minimum wage, really interesting arguments on both sides. Here's my summation:

Speaker one said minimum wage should be abolished, is bad for the economy and destroys jobs.

Speaker two said minimum wage should be kept, is good for the economy and creates jobs.

Really provocative stuff! 

Was also in court the other day, defending a client on tax fraud charges. Let me sum up our argument; our client shouldn't face fines because they paid all their taxes. But wait, before you yell 'freedom!' prepare for the bombshell the prosecutors came up with! They countered that there should be fines because our client didn't pay all their taxes. 

Again, great points on both sides! Going to be tough for the judge!

Mon, 05/06/2013 - 22:57 | 3536501 masterinchancery
masterinchancery's picture

He was assuming you had some knowledge of history, otherwise he would have to write a book on each statement.

Sat, 05/04/2013 - 19:06 | 3530638 Dick Buttkiss
Dick Buttkiss's picture

Right you are, flacon, as there is no more pernicious form of taxation without representation than government bonds, as they are taxes on those who are either not old enough to vote or not yet living.

Not that voting means shit, as "democracy" is as big a scam as any other form of statism, all of which can kiss my ass.

Sat, 05/04/2013 - 22:09 | 3530964 Dick Buttkiss
Dick Buttkiss's picture

Don't know what your beef is, down-voter, but as the most influential liberal columnist in America, Walter Lippmann, wrote in 1929: 

A state is absolute in the sense which I have in mind when it claims the right to a monopoly of all the force within the community, to make war, to make peace, to conscript life, to tax, to establish and disestablish property, to define crime, to punish disobedience, to control education, to supervise the family, to regulate personal habits, and to censor opinions. The modern state claims all of these powers, and, in the matter of theory, there is no real difference in the size of the claim between communists, fascists, and Democrats. There are lingering traces in the American constitutional system of the older theory that there are inalienable rights which government may not absorbed. But these rights are really not inalienable for they can be taken away by constitutional amendment. There is no theoretical limit upon the power of ultimate majorities which creates civil government. There are only practical limits. They are restrained by inertia, and by providence and even by goodwill. But ultimately and theoretically they claim absolute authority as against all churches, associations, and persons within their jurisdiction.

Has anything changed other than to entrench this limiltlessness, and hasn't our money been stolen from us precisely as Henry Ford well knew and, as an oligarch of his time, thoroughly approved of?

It is well enough that the people of the nation do not understand our banking and monetary system, for if the did, I believe there would be a revolution before tomorrow morning.

The state can kiss my ass.


Sat, 05/04/2013 - 22:33 | 3531004 Imminent Crucible
Imminent Crucible's picture

The state may kiss yours, but I'm not offering mine. The state kisses like a piranha.

Sat, 05/04/2013 - 19:56 | 3530713 Peter Pan
Peter Pan's picture

And stocks may well turn out to be like the stocks used in England where people had their heads and hands locked in while in a sanding position.

Sat, 05/04/2013 - 16:20 | 3530408 whotookmyalias
whotookmyalias's picture

Depends on what he meant by "plenty".  Compared to today where it has all gone to hell, what they used to have and enforece could be argued to be "plenty".  It's all relative.

Sat, 05/04/2013 - 16:33 | 3530430 LetThemEatRand
LetThemEatRand's picture

It was the repeal of Glass Steagall that was the straw.  I totally agree that much government regulation is just unnecessary red tape, much of which is actually written by large corporations who want to squeeze out the little guy.  It's the big stuff that matters.  Eric Holder's second in command actually admitted that he believed prosecuting TBTF banks for doing things like knowingly selling worthless paper to pension funds would result in a systemic collapse of our economy.   That is fucked up on more levels than I care to count.

Sat, 05/04/2013 - 16:35 | 3530434 Skid Marks
Skid Marks's picture


The fact of the matter is that there is too much paper regulation and not enough enforcement of existing law.

Sat, 05/04/2013 - 19:24 | 3530663 Freewheelin Franklin
Freewheelin Franklin's picture

It is impossible to regulate all of the moral hazard in the system. The banks know, for a fact, that they will get bailed out. That's what the Federal Reserve was intended to do - "lender of last resort".


But it's gone even further than that. Whether it is Mexican bonds, Russian bonds, tech stocks or housing, the banks, particularly Goldman Sucks, is basically guaranteed a bailout either by the Fed, the Treasury, or both.


So, when I hear people say there's "not enough regulation", or even, the "current regulations are not enforced", I think to myself, they never were meant to be enforced - at least not in the past 30 years, or so.


You do not need "regulations" to enforce basic violations of fraud. Fraud is fraud. Solvency is solvency. If you commit fraud, and are insolvent, your company gets seized, assets auctioned off, and you go to jail. End of fucking  story.

Sat, 05/04/2013 - 21:39 | 3530904 BigJim
BigJim's picture

Another problem with regulations 'regulating' the financial system is that if an institution obeys them, and gets into trouble, it can turn around and expect help from .gov because, after all, it was doing it 'by the book' - therefore, its failure must be to some extent .gov's responsibility.

Sat, 05/04/2013 - 17:02 | 3530431 Skid Marks
Skid Marks's picture


An Unqualified Apology


I see no problem linking Keynes to being queer. However, to apologize for making that point after using it as a basis for trying to understand the subjects thought process tells me that the speaker is a coward who has succumbed to the rule of the jack boot. Freedom of speech is a right........ as long as it has been approved by the censors.

Sat, 05/04/2013 - 17:47 | 3530553 ebworthen
ebworthen's picture

If he wants to keep his post at "Hahvahd" he must bow low to the P.C. thought police for daring to impugn a protected class.

If he had said that Keynes was a rabid heterosexual old imperialist white guy he would have received an award.

Sat, 05/04/2013 - 19:23 | 3530662 Imminent Crucible
Imminent Crucible's picture

If he'd said that Keynes was a rabid heterosexual, he would have been laughed at. Keynes' trysts with chauffers and stable boys were common knowledge in his own day. He kept diaries about them.

The truth is that Keynes' statement, "In the long run we're all dead" was a contemptible evasion from a legitimate question. Whether his homosexuality tempered his unconcern for the long term is open to debate. But it's a fact that for most of us, having children makes the future personal. Most of us are not large enough in spirit to have genuine concern for faceless masses that have not even been born yet. But when you look into the face of your child or newborn grandchild, you see the future and you know it matters. That's why Keynes' toss-off was a damnable dodge.

"That man who plants a tree, knowing he will not live to sit under its shade, has begun to grasp the meaning of life."

Sat, 05/04/2013 - 19:38 | 3530686 Nick Jihad
Nick Jihad's picture

Well said, sir, well said.

Sun, 05/05/2013 - 19:03 | 3532868 koperniuk666
koperniuk666's picture

yes Nick, Shoving it up a man's arse is wrong. He will answer to Jehovah on the day of Judgement. 

There's no sweetcorn on the end of my cock!!!

Proper sex is up the missus's 'front bottom'

With the light off!


Sat, 05/04/2013 - 17:49 | 3530557 kaiserhoff
kaiserhoff's picture

You're right, but Harvard is an epicenter of political correctness, and free speech is hated with a purple passion.

It's also small and claustrophobic.  A great place to be from..., far away from.

Sun, 05/05/2013 - 09:23 | 3531783 Dull Care
Dull Care's picture

Totally agree. There was nothing unreasonable about what he said. I'm so sick of political correctness and its oppression of speech.

Sat, 05/04/2013 - 19:36 | 3530683 Nick Jihad
Nick Jihad's picture

Drop the marxist rhetoric for one moment and think. I say that the problem was not a lack of regulation, it is simply that government cannot be a regulator and an enabler simultaneously. In other words, crony capitalism is the problem - it nullifies any and all regulation, as we have clearly seen in recent years.


Sat, 05/04/2013 - 21:02 | 3530817 Imminent Crucible
Imminent Crucible's picture

Yep. Like Goldman Sachs being a proprietary trading house AND a Supplemental Liquidity Provider at the same time. The temptation to cheat is irresistable--or would be, if Goldman Sachs ever felt any temptation to do the right thing.

Sat, 05/04/2013 - 23:10 | 3531077 PKF
PKF's picture

No, they're Son-of-Short-Dicks!

Sat, 05/04/2013 - 15:59 | 3530374 lolmao500
lolmao500's picture

"the reality that there was plenty of regulation over the financial institutions."

Kill the FED, break up the big banks and go back to Glass Steagall Act...that'll be enough regulation. And of course, hang all the criminals in the banking industry...and their puppets in congress.

Sat, 05/04/2013 - 18:16 | 3530585 Sudden Debt
Sudden Debt's picture

to late... everybody voted for presidents that broke that.
and once broken you can't go back untill it's birned to the ground.

maybe we'll use it with the new banking system after the purge.

Sat, 05/04/2013 - 16:14 | 3530397 Silver Bug
Silver Bug's picture

Western society is passing the torch to the east.

Sat, 05/04/2013 - 17:25 | 3530524 Jack Burton
Jack Burton's picture

Yep Rand, That was enough to blow one's brains across the room! The bigger the lie the better I guess. It beggars comment to consider that the crisis was caused by over regulated financial institutions. He also fails to mention that these same financial institutions have captured government and the regulators. Who in fuck does he think does the regulating? It is the financial services industry and bankers. They own congress, a HE dares cry about over regulation.

He is a fucking TOOL of the elite 1% 'ers who are almost all either in the financial services industry or the military. Listen to him. Bankers and Generals are his target audience, he always blames the little guy and the low wage worker for not being enaged enough in his version of civil society.

What a fucking tool. What a waste of an obvious intelligence. He servers his masters now, he does not think independently!

Sat, 05/04/2013 - 21:43 | 3530912 BigJim
BigJim's picture

Regulation a: FRNs are legal tender

Regulation b: banks belonging to the Fed system can create deposits

There's the over-regulation that created the crisis. If you don't understand why, maybe you need to do a bit of research. 

Sat, 05/04/2013 - 23:43 | 3531191 Jack Burton
Jack Burton's picture

Now is that OVER regulation? Or is that failure to regulate? You mean every thing they can and do do is due to them being regulated? I miss that logic. If there was proper regulation, then would A and B be allowed? Christ man, Bankers WRITE the regulations, you dispute that??

Sun, 05/05/2013 - 06:33 | 3531616 BigJim
BigJim's picture

The body of laws that i) created, ii) maintains, and iii) enforces the monetary system (ie, the very wellspring of our current woes) is by definition regulation, not 'failure to regulate'.

Your whole conception of 'proper' regulation is flawed. There should be no regulation with regards to money or banking beyond the usual prohibitions that pertain to everything else in the economy - ie, the punishment of force & fraud. 

Sat, 05/04/2013 - 20:51 | 3530787 Offthebeach
Offthebeach's picture

There must be 50,000 fed and state regulators, and tens of thousand of pages of laws, regulations, court rulings. Not including in house, private compliance staff and countless in-house rules.

So, like more would fix things?
I don't think so.

Sat, 05/04/2013 - 21:06 | 3530823 Imminent Crucible
Imminent Crucible's picture

Having regulations is one thing; we have thousands and thousands of pages of regulations.

Having regulation is another. The so-called "regulators" are just there to make sure no one actually gets regulated.  When things get too grotesquely blatant, they slap a small fine on somebody to show that Barney Fife is on the job.

Sat, 05/04/2013 - 21:02 | 3530814 malek
malek's picture

Com'on LTER, don't dance around the elephant but speak it out: We just need more regulation and then everything will be fine!!!


Sat, 05/04/2013 - 22:06 | 3530960 LetThemEatRand
LetThemEatRand's picture

We need less regulation of small business and more regulation of monopolies.  

Sat, 05/04/2013 - 22:18 | 3530979 nmewn
nmewn's picture

The largest monopoly there is government you idjut. Who regulates the regulators? There are NOW 20,000 pages of regulations being IMPOSED on fucking health insurance with moar to come!...and you're still not happy!?!?


Friggin psycho.

Sat, 05/04/2013 - 22:35 | 3531006 LetThemEatRand
LetThemEatRand's picture

The People regulate the government.  It's in the Constitution.  There's probably a show on television you could watch about it.  

Sat, 05/04/2013 - 23:57 | 3531223 Real Estate Geek
Real Estate Geek's picture

Good call, because you won't see that anywhere but on TV. 


(Unless by "people," you meant corporations.)

Sun, 05/05/2013 - 19:47 | 3532971 nmewn
nmewn's picture


"The People regulate the government. It's in the Constitution."

They do? Well how's that workin out so far Vladimir? I guess I never contorted myself into a pretzel to think of regulating YOUR way.

Great, so I am to understand the government is running a surplus in taxation and will be issuing checks for the tax overpayments. The "People" wanted increased camera surveillance on every street corner, in fact demanded it!

They also said hey, this Maddof fellow is kinda crooked, throw his ass in jail but this other guy Corzine...he's a salt-of-the-earth type guy...give him a pass. He was a govenor of the "People" for crying out loud...a good Jon.

And Holder and his gun running operation to Mexico? Theres a fine example of gun regulation right there, no doubt about it.

The two thousand page "law" (that they didn't bother to read) becoming twenty thousand pages of "good regulation" is another fine example of the "People" regulating just as the Constitution outlined.

Yep, gotta admit it Vlad, you got this one nailed down


Sat, 05/04/2013 - 22:42 | 3531017 Imminent Crucible
Imminent Crucible's picture

I don't know why anyone would vote you down for that. What we need is MOAR tantrums! Keep 'em coming.

I want 20 BILLION pages of regulations imposed on Congress and Obama, and they're not allowed to do anything else until they've read them so they can see what's in them.

Sat, 05/04/2013 - 21:30 | 3530878 H E D G E H O G
H E D G E H O G's picture

so, we've went from "The Greatest Generation", to "The Greatest DeGeneration" in no time flat? wtf is on deck, "The Greatest ReGeneration"? please Lord, let the gnashing of teeth begin.......and soon.

Sun, 05/05/2013 - 08:42 | 3531727 TeMpTeK
TeMpTeK's picture

Krugman.. The gayest of them all

Sat, 05/04/2013 - 15:48 | 3530361 centerline
centerline's picture

perhaps the problem IS growth.   hmmmm

Sat, 05/04/2013 - 17:18 | 3530512 americanspirit
americanspirit's picture

I think you're onto something Centerline. Now what we have to do is to discover what KIND of growth is the problem. Growth in good-paying permanent private sector jobs - not a problem. Growth of government beyond all rational functionality - problem. Growth in agricultural productivity - not a problem. Growth in agricultural productivity achieved by driving small farms out of business and substituting corporate control for individual initiative and chemical fertilizers for good soil-building practices - problem. Growth of small and mid-sized owner-operated business - not a problem. Growth of TBTF corporate flesh-eating monsters - problem.

And so forth.

Sat, 05/04/2013 - 17:51 | 3530562 ebworthen
ebworthen's picture

Aye - and the penchant for perpetual growth via the FED with no creative destruction by healthy market forces allowed.

Sat, 05/04/2013 - 20:39 | 3530775 ImReady
ImReady's picture

Not trying to be a smartass(I'm relatively new here and want to learn.) What is the alternative system to a growth system? And is it viable long term?

Sat, 05/04/2013 - 21:16 | 3530850 Imminent Crucible
Imminent Crucible's picture

The issue is a perpetual growth system centrally planned around some arbitrary figure such as 4% annual growth. The alternative is a natural system with natural forces at work, like a forest.  We have some huge old trees out there that are rotten to the core and blocking the sunlight so nothing can grow beneath them. But they keep getting propped up at enormous expense, even though they're hollowed out and loaded with parasitic insects. JPM, Citibank and a bunch of other zombies need to topple so some fresh growth can take place. Too Big To Fail really means Too Influential to Face the Consequences.

What we need right now is a well-aimed forest fire.  And hot dogs and marshmallows.

Sat, 05/04/2013 - 15:57 | 3530369 lolmao500
lolmao500's picture

the party of the last 20 years is now over and the longer we fail to address the real issues the bigger the hangover will be in the future.

More like 30 years...

The central question Ferguson asks is whether our institutions, corporations and governments, are degenerating.

Ferguson still has his head up his ass apparently...

ENFORCE THE RULE OF LAW, let anyone who can't make it FAIL and things will go back to normal real fast... with a lot of pain at the beginning of course.

Sat, 05/04/2013 - 16:28 | 3530423 Binko
Binko's picture

ENFORCE THE RULE OF LAW may sound great as a sound-bite. But one of the issues Ferguson identifies is that there no longer exists a Rule Of Law once Congress starts passing "laws" that are 2000 pages long. Instead you have a rule of lawyers, and the only entities that can afford a lot of lawyers are Corporations and their Government lackeys.


Sat, 05/04/2013 - 16:46 | 3530449 LetThemEatRand
LetThemEatRand's picture

Simple solution -- require Congress itself to write the laws, and require that any given law cover only one topic.  As it stands now, corporations literally write many of the laws.

Sat, 05/04/2013 - 17:25 | 3530525 Binko
Binko's picture

There are a number of simple solutions that would radical improve our situation. That might be one. But the laws would still be written by Congressional Aides who rotate in and out of the corporate world. Our actual representatives would literally not be capable of writing anything. I doubt most of them could write a passible High School level essay themselves.

The only simple solution that would have a real chance of working would be to completely remove the need for money from political campaigns. But that would require a Contitutional Amendment.

Sat, 05/04/2013 - 17:37 | 3530537 lolmao500
lolmao500's picture

True that. Anti-science folks are on congress science committees... people who have never been in the military are on the armed forces committees... etc...

Most in congress are total fucking retards.

Remove money from politics... get rid of the MSM cartel that makes it so only republicans/democrats control everything... force one issue = one bill... Force every political candidate to take a test on the constitution and general US history... with their answers PUBLIC... minimum grade = 85%... can't get that, you can't run...

Sat, 05/04/2013 - 17:41 | 3530540 Ignatius
Ignatius's picture

We're swimming in possibilities for good, sound solutions.

So it's really who has the power and what do they want?

The system is being run for the benefit of them that own it and run it.

Cui bono?

Sat, 05/04/2013 - 19:32 | 3530676 buyingsterling
buyingsterling's picture

I see zero possibility for federal solutions. They have no will to do anything aside from sticking it to the defenseless - the middle class.

The solution is a vigorious secession movement, starting with Texas. If Texas goes, the midwest and south will follow, or they will be stuck with an endless parade of incompetent demagogues like Obama for President; no one like Ron or Rand Paul could win without Texas' electoral votes, and like it or not, we're saddled with an imperial presidency, change will have to come from the top (I won't approve a budget that doesn't include tax reform, cuts to everything that isn't a matter of life or death, Glass Steagal, etc.). Even wiith Texas in the union that's unlikely, so it's time for separation. The newly formed union could even offer to subsidize the nuclear deterrent and pay their share of interest on the debt. They could adopt the regulatory rules that were in place in 1970 or 1980 -- not perfect, but it would eliminate a lot of crap. They could use the dollar, and at the same time encourage pricing of good and services in milligrams of gold and silver. Most importantly, they could phase out the income tax: no more reporting, you pay what you paid last year on a declining schedule. The possibilities are endless, and the largest complication is that the left would rather kill every Texan than see a new union form to which people can escape (theyd like to kill every Texan anyway, unless they're on the dole, so no change there, just an excuse to let them try). Socialism has to be universal or it will ultimately fail; there can be no escape, the productive must all remain shackled to the state. The death cult that is the left knows this, so it won't give up without a fight. But better to have the fight and get it over with than to let everything and everyone go to hell in a handbasket.

Sat, 05/04/2013 - 19:45 | 3530695 Nick Jihad
Nick Jihad's picture

Women have the power - they constitute a majority of voters.  Women want a cradle-to-grave welfare state - and they've gotten it. Cui bono?  Just look at who sucks down the lions share of entitlement spending: from when they're single mothers, until they become elderly SS/Medicare benificiaries, the majority of government income redistribution, is redistributed to women.


Sat, 05/04/2013 - 20:22 | 3530757 LetThemEatRand
LetThemEatRand's picture

Yeah, fuck the women!  Sorry Keynes.

Sat, 05/04/2013 - 21:19 | 3530857 Imminent Crucible
Imminent Crucible's picture

the majority of government income redistribution, is redistributed to women.

and by "women" we mean--Blythe Masters.

Sat, 05/04/2013 - 19:30 | 3530670 Freewheelin Franklin
Freewheelin Franklin's picture

As it stands now, corporations literally write many of the laws.


Yes, that's called "regulatory capture". And it has existed since the very first regualtory agency, the "Interstate Commerce Commision".


You don't strike me as a Friedmanite, so I assume you are not familliar with that term.

Sat, 05/04/2013 - 20:26 | 3530761 LetThemEatRand
LetThemEatRand's picture

Insults notwithstanding, the Commerce Clause (as it has been interpreted) is one of the roots of the current evil.  That and the Fed.  You don't have to be a Friedmanite or subscribe to any particular ism or dogma to see that.

Sat, 05/04/2013 - 16:03 | 3530373 Supernova Born
Supernova Born's picture


The End

Sat, 05/04/2013 - 16:16 | 3530401 DeficitAlchemist
DeficitAlchemist's picture

Fail. oversimplificationto the extreme. Malasia should be best economy then, largest percent of young working age work force growing at fastest rate, in a big population. Not seeing you In Borneo soon. the list of desireable yet missing elements too vast to list.

Tue, 05/07/2013 - 01:25 | 3536710 Kobe Beef
Kobe Beef's picture

Here's my oversimplification: Collectivism leads to Collapse.

Whether democratic, communist or corporatist, once you remove responsibility and accountability for one's choices from the mix, destruction is assured.

Sat, 05/04/2013 - 16:02 | 3530377 joego1
joego1's picture

And the earth still revolves around the sun. The stars still shine. The universe cares nothing of our foolish human plight.

Sat, 05/04/2013 - 16:01 | 3530378 skank
Sat, 05/04/2013 - 16:14 | 3530396 TeamDepends
TeamDepends's picture

Moony was a god.

Sat, 05/04/2013 - 16:03 | 3530380 debtor of last ...
debtor of last resort's picture

A basis economy is needed. With a duty to participate in this basis economy 1 day a week, for everyone. The basis economy includes housing, food, medical care. Parallel to the basis economy, a capitalist system, free from rules, just some fundamental environment stuff.

It functions like the 'law of communicating vessels'. It gives people freedom, entrepreneurs freedom. With a certain basis, a real crises isn't really a problem, because the basis economy is separated from other 'systems'.

As soon as the 'one day a week' duty is too much, it can be reduced. What it is about: the law of communicating vessels. It removes power from tbtf, because there is always a backup, and it gives a real free market.

Sat, 05/04/2013 - 16:09 | 3530392 illyia
illyia's picture

That is rather interesting - as an economic application, could you explain more?

Sat, 05/04/2013 - 16:28 | 3530422 debtor of last ...
debtor of last resort's picture

Excuse me for my English..., and thanks for asking. It's about eliminating power of central banks, multinationals, politicians etc. Through a basis economy, there is no need for foodstamps, rent, mortguage or unsustainable debt. Everyone has to participate in the basis economy, the rest of the time can be put in the capitalist part of society. Can be, not must be. The capitalist part is completely free in doing what they want, that goes for workers as well as for entrepreneurs. Only regulated on a environmental 'sustainable' level. As soon as something fails, people can rely upon the basis economy. The basis economy functions apart from the capitalist part. In the past, both socialsm and capitalism have failed. So there is a need for some kind of 'hub'. The flow between the basic needs and the free market.

Where something goes wrong, labour flows to the socialist part, or the other way around. It's about the law of communicating vessels. The flow between the two 'competing' systems.

Sat, 05/04/2013 - 16:43 | 3530445 debtor of last ...
debtor of last resort's picture

It's not about the stock, it's about the flow ;-)

Sat, 05/04/2013 - 19:05 | 3530637 Cthonic
Cthonic's picture

So, bringing back corvée labor (merely one day a week, at first) is the solution? Well, with the Feds reinstituting indentured servitude via student loan programs, why not?  /sarc

Sat, 05/04/2013 - 19:34 | 3530679 Freewheelin Franklin
Freewheelin Franklin's picture

Why do I even bother reading the comments on the weekend?

It is a "sustenance economy".



Sat, 05/04/2013 - 16:03 | 3530381 TuPhat
TuPhat's picture

Increase taxes by 60% to restore generational balance.  I nearly barfed and quit reading.  The comments on ZH will be far more informative than this article.

Sat, 05/04/2013 - 18:19 | 3530589 Sudden Debt
Sudden Debt's picture

that part will be the only truth in the article... you can bet your ass off they'll raise taxes.... but they'll forget to downsize government with 30%... and the shit will be able to pile up a littlebit higher...

Sat, 05/04/2013 - 16:06 | 3530387 illyia
illyia's picture

Nial's “The Ascent Of Money: A Financial History Of The World” was wonderful and fascinating. Since then I have felt him an apologist for the banksters. What happened? Did he try the other pill?

The bottom line is corruption, corruption, corruption.

The criminals are controlling everything - including the laws.

He is just nearly in that pack. 

Sat, 05/04/2013 - 17:04 | 3530480 massornament
massornament's picture

I have similar feelings about Ferguson... I really like (and believe in) some aspects of his work but agree that he, at times, seems to be a bankster-apologist. I suspect that it is because he is so close to the levers of power (Blah-Blah-Blah Chair of Harvard/Oxford) and therefore derives some of his own political capital from his priviledged access to powerful people and institutions. To be fair, I think those people have a difficult time proposing solutions because they cannot see far beyond their own comfort zones and have a natural tendency to preserve the system that gives them priviledged access to power and resources. (I sometimes wonder if I would be any different.)

Sat, 05/04/2013 - 17:43 | 3530544 kaiserhoff
kaiserhoff's picture

I haven't been a fan of Ferguson in the past, but this is excellent.

The growth in the areas he cites would put the US and Canada as far ahead of the pack as they were in the fifties...

  if the government doesn't steal all, and I mean all, of the profits.


Sat, 05/04/2013 - 18:31 | 3530393 TNTARG
TNTARG's picture

So, statements like this make the "First World" universities the best in the World?

The financial crisis was really a result of an increasingly complex financial system.

Highschools here in the "Third World" teach much better than that.

No way out with such diagnosis.

Sat, 05/04/2013 - 16:21 | 3530394 THE DORK OF CORK
THE DORK OF CORK's picture

If Jesus turned up at the Jesus college he would kick him out.


"Fiscal problems" happen when the physical economy has difficulty paying interest to private banks.


Europe is declining because the entrepot economy which grew from the extraction of labour value is failing.

I.e. - its strange production orbits & services the people who hold compounding tokens rather then the needs and interests of people who do real work for a living.

Essentially its a wages / beer  vs credit / car war.

The banks can't make much money from local primary production.

Which means primary inputs become external over time until the trade links are shut.

Then you get a black debt event.

But who fucking cares except the bankers and their reps on earth.

The rest of us will face death and debt without really thinking about it anyway.

Europes " pointless added value" economy is fucked.

Sat, 05/04/2013 - 16:15 | 3530400 Telemakhos
Telemakhos's picture

It looks like Paul McCulley's question was the one that got Ferguson in trouble for making ad hominem remarks about Keynes in a professional setting.  But check out McCulley's phrasing: 

"The long run is a misleading guide to current affairs…in the long run we are all dead."

Someone reads.

Sat, 05/04/2013 - 17:41 | 3530539 newworldorder
newworldorder's picture

So someone was offended. Big deal. Political correctness has killed our country. The corporations that do not want to offend anyone that might decrease their sales no longer allow for free speech at public events.

Sat, 05/04/2013 - 16:16 | 3530402 unirealist
unirealist's picture

He's right about one thing: complexity is the problem.  It cannot, however, be fixed, because it's almost impossible to reverse course and regress from complexity to simplicity.

Only way it happens is all at once, when the system crashes from overcomplexity.  And boy, that won't be pretty.

Sat, 05/04/2013 - 16:17 | 3530404 css1971
css1971's picture

They are not degenerating. They are degenerate. Have been for decades. Since pre 1970. It just takes a while for the corpse to start stinking.

Sat, 05/04/2013 - 16:26 | 3530417 Atomizer
Atomizer's picture

If Central Banking can get within a pubic cunt hair of the trading centre’s. We’ll manipulate all daily trading pools better than today. Let’s just sell another terror epidemic to execute investor security. Shall we begin?



PS: Don’t mean to disrupt your motor boating workout, Janet Napolitano. Just wondering if this illegal activity falls on your shoulders or some underfunded sublet you refer to as peon law enforcement?

Sat, 05/04/2013 - 16:40 | 3530439 W T F II
W T F II's picture

In sub-atomic terms, a 'cunt-hair' is light years away..!!

Sat, 05/04/2013 - 16:28 | 3530421 unirealist
unirealist's picture

Corruption is an opportunistic disease.  The thievery of Wall Street and the looting by the big bankers did not occur in a vacuum; it happened because the societal body was already sick.

I honestly believe that when we stripped our money of any intrinsic value (1965-1971) we lost the very basis for making value judgments in this country.

People cry about how this society of ours has lost its values.  Well, that's where it happened.

When the value of money is utterly and completely arbitrary, the more abstract judgments of value become clouded.  After forty-odd years of this degeneration, our sense of what is real and what is bullshit has been lost.

That is why corruption thrives.  Blame fiat money. 

Sat, 05/04/2013 - 19:42 | 3530692 Imminent Crucible
Imminent Crucible's picture

When the value of money is utterly and completely arbitrary, the more abstract judgments of value become clouded.  After forty-odd years of this degeneration, our sense of what is real and what is bullshit has been lost.

No doubt, and I believe it's all intentional. When a gallon of gasoline has been less than $1 and over $4 all within the space of a decade or so, with wild gyrations over supposed supply disruptions and market games, consumers no longer have any idea what a gallon of gas should cost. Or a loaf of bread or a pound of butter.  They just pay the price and go on, with no notion of what their labor should be worth in terms of essential staples.

Then the gamers are freed to game everything, without outrage or even much objection. That's why we saw gasoline at around $4 even as inventories were high relative to demand. And oil is $96 as inventories remain well above the five year average.

Sun, 05/05/2013 - 09:46 | 3531821 Ckierst1
Ckierst1's picture

I must respectfully disagree, but I celebrate your inquiry.  It IS an important subject for study, inquiry and reflection.  I have also wandered down this path, as have many others.  The farther you go, the more bitter the truths, seemingly revealed, but the more understanding and tolerant of the human condition you become, IMHO.  You accept brilliance and enlightenment where you find it, with the associated baggage, and in the quantities established.  No man is perfect.  I am not an Exceptionalist!

I suggest you read the works of Tom DiLorenzo and Tom Wood, if you haven't already, which may be the case here.  They are essentially economic historians.  The discipline of economics was formerly known as political economy.  I think you need to go back much farther.

Sat, 05/04/2013 - 16:30 | 3530424 lasvegaspersona
lasvegaspersona's picture

I read Niall's apology and I those without children have the same outlook as those who have lived the endless years of diapers, fevers squabbles and tears?

I do know they often say stupid things about child rearing. They have a theoretical construct based upon their own upbringing as to how one should raise children but often I have found their comments to be "as stupid as they were insensitive". They have opinions on spanking, deprivation, feeding and religion. But they have never had to deal with the pushback that kids are sooooo good at providing.

So I wonder if they have the real sense of worry...what will happen to my kids when I'm gone? Who will protect them from the predators of this world? I wonder how they can really worry about the future without a realistic worry, a dog in the fight. What does economic collapse mean to them? If they feel they have prepared adequately (and I believe for many problems one can prepare fully for two people and pets for years) what do they really worry about?

For those with kids and grandkids it is simply not enough to 'be prepared'. We must see that there is a functioning society for them to perform in. They must have a real economy to work, earn and consume in.

This is not meant to criticize. I just wonder if they see things the same way I do and if their formula for the future provides for a livable outcome for all.

Sat, 05/04/2013 - 16:58 | 3530473 reload
reload's picture

+++ great post.

I am teaching my kids to shoot, grow food &  how to ride and care for horses. Its fun anyway but one day it may be vital.


Sat, 05/04/2013 - 18:33 | 3530607 TrustWho
TrustWho's picture

...forget the horses and get mules. Teach them to harness the mule and pull a plow.

Sat, 05/04/2013 - 17:15 | 3530505 massornament
massornament's picture

I agree, good post.

But I don't think it has anything to do with being a parent or being childless. I see many parents who are oblivious or who can only think about getting more resources for them and their children.

I think a person can get 'pushback' from toher sources as long as he or she retains an open mind and thinks clearly about what it takes to maintain his/her lifestyle and the world around them.

Sat, 05/04/2013 - 16:29 | 3530425 kito
kito's picture

hey niall......wake the fuck work for the biggest bubble industry out there..............look out..............................................

Sat, 05/04/2013 - 17:10 | 3530489 massornament
massornament's picture

In reality, don't we all (at least those of us in the West) work for the biggest bubble industry?

Sat, 05/04/2013 - 19:46 | 3530698 Imminent Crucible
Imminent Crucible's picture

You mean USA, Inc and the Uniform Commercial Code? Yeah, it's a huge bubble about to burst on the pin of insolvency. I'll be glad when it's over and the U.S. can turn into a real country again. That is, if we choose. We could just remain a real dump like so many other has-been states. France comes to mind. Beautiful place; horrible society and government.

Sat, 05/04/2013 - 16:30 | 3530428 css1971
css1971's picture

I find it amusing that Ferguson who was in all but name a rabid Keynesian and apologist for the vested interests is becoming Austrian.

Sat, 05/04/2013 - 16:33 | 3530432 Tapeworm
Tapeworm's picture

Decline of civil society

Fight Club for toddlers.   Jungle drums. Dat's raysis.


'Toddler Fight Club' Video Shot by Daycare Workers

Two women - one of them from Caledonia - are charged with child abuse for allegedly filming instead of stopping three small children from beating up a two-year-old.


Two women — one from Caledonia — have been arrested on child abuse charges after Racine police say they encouraged three children at the day care where they worked to beat up a 2-year-old.

Krystina Woods, 23, of Racine, and Jakitta Hollins, 22, of Caledonia, are facing single felony counts each of child abuse/failure to prevent bodily harm, according to court records.

Both defendants had their initial appearances Friday. If convicted, they could each see six years in prison.

Woods and Hollins were each released on a $10,000 signature bond with the condition that she live with her mother and not have any unsupervised contact with minors. She is also not to be employed by any child care facility or school and is to have no contact with the daycare where the alleged incident took place.


two of the assaulting chilluns are the spawn of the director.

Sat, 05/04/2013 - 16:38 | 3530435 W T F II
W T F II's picture

Keynes was gay...?? Who knew...? Gay, but not happy.

Sat, 05/04/2013 - 16:43 | 3530444 ShrNfr
ShrNfr's picture

Actually, he was bi if you read his biographers. Sexuality is a spectrum anyway.

Sat, 05/04/2013 - 20:04 | 3530723 nmewn
nmewn's picture

Sounds like he was confused or just recklessly randy to me.

Kinda like his economic theories ;-)

Sat, 05/04/2013 - 20:28 | 3530764 LetThemEatRand
LetThemEatRand's picture

Always comes back to Rand[y] with you, Newman.

Sat, 05/04/2013 - 20:40 | 3530777 nmewn
nmewn's picture

Well hey there Vladimir, hows the sickle hangin?

Sat, 05/04/2013 - 21:51 | 3530927 LetThemEatRand
LetThemEatRand's picture

Sickle's fine, but really working more on the hammer tonight.  How goes the narcissistic hag hero worship? 

Sat, 05/04/2013 - 22:06 | 3530959 nmewn
nmewn's picture

What the hell are you asking me for? You're the one so completely obsessed you "incorporated" her name into your little on-line enterprise here. Really starting question your grasp on reality, lady.

You know, if you quit opening the door into your face the pain will eventually stop.

Sat, 05/04/2013 - 22:13 | 3530973 LetThemEatRand
LetThemEatRand's picture

Did you hear that on television?  Must be true then.

Sat, 05/04/2013 - 22:21 | 3530984 nmewn
nmewn's picture

All time weakest, so far, go for the prize.

Sat, 05/04/2013 - 22:15 | 3530976 W T F II
W T F II's picture

"Not that there is anything wrong with it", as Seinfeld famously said. I believe sexuality is inborne. Choice is not a factor. To each their own.

By the way, more essentially, Keynes was apparently very against the Bretton Woods Accord's provision for the dollar as THE reserve currency. He felt a sovereign currency was not the proper route. This notion may have profound implications very soon. I believe there will be a collaborative move towards a multi-faceted replacement soon. It may be a very bumpy ride from here to such an inevitable outcome.

Keynes really did try to save us all the trouble, didn't he..?

Sat, 05/04/2013 - 22:44 | 3531018 nmewn
nmewn's picture

Keynes saved us from nothing, he is largely the cause of it all.

From his foreword in the German language edition of General Theory 1936, this could not have escaped your attention:

"The theory of aggregate production, which is the point of the following book, nevertheless can be much easier adapted to the conditions of a totalitarian state than the theory of production and distribution of a given production put forth under conditions of free competition and a large degree of laissez-faire. This is one of the reasons that justifies the fact that I call my theory a general theory."

He was a socialist, a eugenicist eventuating into a fascist. Which is exactly where we are today, economically and socially.

Sat, 05/04/2013 - 23:59 | 3531229 gwar5
gwar5's picture

Sorry, I didn't see your post before I hit send. See my post above. Some causes are biological/medical and others are psychological. It's the latter that is the problem. At the end of the day everyone deserves empathy for things they never asked for.


I'm trying to be objective because the subject has been so politicized by the MSM there is no consideration for the unintended consequences and costs to society of opening the floodgates. Seems nobody has a clue so they surrender to relativism by default.

It is well known we can create a 'gay' heifer on the farm with testosterone shots to a pregnant cow at the right time during pregnancy, they're called 'Free Martins' that think they are bulls when they grow up and try to hump the other heifers. This is biological, they didn't have a choice.

This is distinct from children who were anally raped and grow up to become sexually dysfunctional and/or molesters themselves. In this case the victims didn't have a choice. The remedy is to prevent it, not encourage it.

I have a gay sister and I chose a gay friend be my best man at my wedding (a woman) because he was a helluva guy. That was before I was in San Francisco working on AIDs patients at the height of the hysteria. All of 'em, even the locals, admit SF is a zoo.


Sat, 05/04/2013 - 22:56 | 3531045 gwar5
gwar5's picture

It's true that gender identity disorder and hermaphrodite manifestations are a spectrum resulting from aberrant exposure/timing to hormones during gestation. Biological accidents are one thing....


But, 35-40% of male homosexuals report being molested by homosexuals as little boys. They're Jerry Sandusky kids. And statistically the vast majority (like 40,000% higher) of child molestors will come from this same group when they grow up. They are both sad victims and sick perpetrators. They were fucked up and traumatized as little kids. As a group they also suffer far more other severe mental problems. Little boys don't go missing with their faces on milk cartons for their lunch money.

This is the elephant in the room nobody wants to talk about. Those are not things that should be glorified or encouraged because you'll only get a lot more of it. Only 4% of heterosexual men report being molested.

Currently an epidemic of molestations is going on in the public schools. It is 2000% bigger than the Catholic problem but it's being covered up. MSM Silence. 1 in 10 children in public schools report being molested or approached by staff at some time K-12. And it's not hot blondes banging the football quaterback either.

The teachers unions and progressive politicians are far worse than the Catholics because they are not only covering it up, they are actively encouraging more of the same. Introducing first graders to homosexuality 'tolerance'  only confuses and grooms them for predators.

"Little Johnny... let me touch your pee pee, or I'll report you as a hater!" 


Sat, 05/04/2013 - 16:41 | 3530441 Black Forest
Black Forest's picture


Sat, 05/04/2013 - 16:48 | 3530453 ross81
ross81's picture

Ferguson's a Zionist "bomb them all" prick....wouldn't trust him as far as I could throw him.

Sat, 05/04/2013 - 17:13 | 3530498 WhoMe
WhoMe's picture

 The only person he has to appologize to are the Politically Correct. People need to stop picking their words so carefully hoping not to offend anyone. On the other hand the Politically Correct are offended by anything and everything that is pretty much said so it's an impossible task to please them anyways.

Sat, 05/04/2013 - 17:45 | 3530550 newworldorder
newworldorder's picture

The politically correct are everywhere, especially at our workplaces. Try not being PC and see what that brings you.

Sat, 05/04/2013 - 17:15 | 3530504 Debugas
Debugas's picture

solution is easy - write-off all of the debts.

No creditor is willing to go that path hence the continuation of the "crisis"

Sat, 05/04/2013 - 17:24 | 3530522 Edward Fiatski
Edward Fiatski's picture

"Keynes was a homosexual and had no intention of having children."

The whole presentation can be summarised with the above.

Sat, 05/04/2013 - 17:28 | 3530530 q99x2
q99x2's picture

Live long and prosper. Look where that got us.

Fuck Spock.

Sat, 05/04/2013 - 21:14 | 3530847 Poor Grogman
Poor Grogman's picture

Spock was a collectivist, To Paraphrase one of his remarks.

"sometimes the needs of the many outweigh the needs of the few or the one"

This was probably also the "Empires" official attitude towards the "rebel alliance".

Star Wars and Star Trek = Individualism vs Collectivism.

Continuing the battle of ideology through sub-conscious imagery.

Sat, 05/04/2013 - 22:19 | 3530982 W T F II
W T F II's picture

WAIT A SECOND...!!! Didn't the Federation's Military-Industrial Complex build the Starship "Enterprise"?

ps. Frank Gorsham's role of the half-black/half-white and half-white/half-black guys was the BEST..!!

Sat, 05/04/2013 - 17:38 | 3530536 ebworthen
ebworthen's picture

Slave plantations and mining companies maintained oppression by using their own police and forcing reliance for all things necessary to survive upon the plantation owners or the company store.

The modern state - in collusion with crony capitalism - is no different.

Sat, 05/04/2013 - 18:27 | 3530596 TNTARG
TNTARG's picture

In fact, they STILL DO in Latin America, Africa...


Sat, 05/04/2013 - 19:54 | 3530712 GeezerGeek
GeezerGeek's picture

Cue Tennessee Ernie Ford singing "16 Tons"


Sat, 05/04/2013 - 17:39 | 3530538 booboo
booboo's picture

No matter what solutions are conjured up they will all need to be run through a government hostile to the individual. Democracy (50+1) by it's nature demands the systematic dismanteling of the Rule of Law (the fence protecting 1 sheep from two wolves with severe penalty for violations) Nothing will change until IT is changed. Getting back to a Constitutional Republic would be a start but not an end, there would still be hangings to conduct.

Sat, 05/04/2013 - 18:19 | 3530588 Blues Traveler
Blues Traveler's picture

James_Cole  RE your rant on Nials.

Who are you??? I hope a maligned student trolling or seeking enlightenment.  Unfortunately, I am afraid you are Joe Biden's speech writer.

Sat, 05/04/2013 - 18:30 | 3530598 reader2010
reader2010's picture

Holy Shit. He's the message boy for the elite. What the elite have in store for us then? 

Let me quote Edward Abbey here:

The tank, the B-52, the fighter-bomber, the state-controlled police and military are the weapons of dictatorship. The rifle is the weapon of democracy. Not for nothing was the revolver called an "equalizer." Egalite implies liberte. And always will. Let us hope our weapons are never needed — but do not forget what the common people of this nation knew when they demanded the Bill of Rights: An armed citizenry is the first defense, the best defense, and the final defense against tyranny.

Sat, 05/04/2013 - 18:57 | 3530633 Mr. Hudson
Mr. Hudson's picture

Are there any good, decent Jews left on this planet?

Sat, 05/04/2013 - 19:10 | 3530645 nmewn
nmewn's picture

You seem completely obsessed by something...I can't quite place my finger on it, you might wanna go see a good joooish doctor about it.

Just tryin to help ;-)

Sat, 05/04/2013 - 21:35 | 3530889 gwar5
gwar5's picture

I don't even much consider the sociopaths running big banks to be real Jews. They seem more like non-practicing atheists of common decent doing family business like the Gambino's. Or, gangbangers with MBA's.


Example, Soros admitting no regrets turning in fellow Jews to the Nazi's, and saying he has no use for Israel, or Israeli's. Distancing himself from the tribe was a very non-Rothschildish thing to do since Rothschild Blvd is the name of the main drag in the capital and Rothschild money made it happen.

(I'm also agnostic on Israel, btw).

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