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"Terminal State Of Broken"

Tyler Durden's picture




 

Originally posted at Monty Pelerin's World blog,

As markets continue to confound, it is useful to reflect on this quote from Jim Sinclair, particularly the last sentence:

The world has taken on a “virtual reality” with no reference to what really is. This is the biggest market power play of smoke and mirrors in history. It is happening because the financial system is in a terminal state of broken.

I could not agree more. This same view has been expressed since the inception of this website (over three and a half years ago). Mr. Sinclair’s wonderfully clever and colorful phrase,”terminal state of broken,” captures matters well. He used it with respect to financial markets, but it applies to much more.

The terminal state of broken also applies to government and the institutions contained therein. Furthermore, these areas have infected non-governmental institutions, especially those which derive their existence and/or success from a close association with government. These include the educational system, defense industry, highly regulated industries like medicine and finance and a host of others.

The common denominator in all of this is government. It is the modern day equivalent of typhoid Mary, infecting all that it comes in contact with duplicity, dishonesty and corruption. This “brokeness” now infects the very morality and civility of society. Institutional behavior provides the moral guidelines (or lack thereof) for society. Corruption, deceit and theft are not virtues, yet if they are practiced openly they cease to become vices.

Immorality in higher institutions weakens the social and moral fabric of a society. Incivility and coarseness is the least of the problems. Justice Brandeis commented on the “trickle down” effect of institutional behavior, focusing on that of government itself:

In a government of laws, the existence of the government will be imperiled if it fails to observe the law scrupulously. Our government is the potent, the omnipotent teacher. For good or ill, it teaches the whole people by its example. If government becomes a lawbreaker it breeds contempt for law: it invites every man to become a law unto himself. It invites anarchy.

Brandeis’ warning was early enough to head off our current condition, but it went unheeded. Instead, our “omnipotent teacher” chose to ignore ethics and morality as they stood in the way of the desire for power and wealth.

Albert J. Nock

Albert J. Nock

Government increasingly took on the Nockian (Albert J. Nock) description:

Taking the State wherever found, striking into its history at any point, one sees no way to differentiate the activities of its founders, administrators and beneficiaries from those of a professional-criminal class.

Years of misbehavior, favoritism and outright criminal acts produced a view of government officials that ranks below that of used-car salesmen. No other group or institution is held in lower esteem. Government’s survival is no longer based on a functional, moral need. Its continued survival depends upon its ability to distribute largess.

The wealthy and the poor now consider themselves allies with government. The wealthy are provided favors and leeway that free markets would not allow. The poor are bribed with “goodies” that government takes from the productive in exchange for votes.

“Terminally broken” is the exact description for our current situation. Terminally, I interpret, as hopelessly, as in unfixable. Terminally also implies a temporary condition, one that cannot last very long. The unstable equilibrium that now exists is not too different from the eye of a hurricane. Any movement out of this rather small protective area will produce havoc.

 

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Thu, 05/23/2013 - 12:59 | 3592560 slaughterer
slaughterer's picture

More and more, the writers on ZH sound like bears who have been trapped by this rally.

Thu, 05/23/2013 - 12:59 | 3592565 Dan The Man
Dan The Man's picture

U read it in 5 seconds?

Thu, 05/23/2013 - 13:03 | 3592580 IridiumRebel
Thu, 05/23/2013 - 13:09 | 3592595 Divided States ...
Divided States of America's picture

More like "Terminal State of Bernanked"

 

slaughterer, so I guess you must have shorted at the highs yesterday and covered all your shorts in the dump this morning and made another great trade, good for you.

OR

you just decided to go long all-in after the markets have gone up 30% in a straight line. good for you there also

Thu, 05/23/2013 - 13:13 | 3592621 The Thunder Child
The Thunder Child's picture

Humanity is in a Terminal State of cold civil war against Bankers and the corruption that eiminates from their central bank currency control. Everything else is just hisses and pops from the fire they have lit under us.

Thu, 05/23/2013 - 13:23 | 3592677 Pinto Currency
Pinto Currency's picture

 

The collapse is happening because of the centrally-planned debt-based fiat money system.

This money system has to be replaced with sound money (and not a "gold standard" which is another form of fiat money ).

This fiat money system was broken the day it was created.

Thu, 05/23/2013 - 14:14 | 3592944 Freegold
Freegold's picture

It will be replaced by freegold, the natural evolution.

Thu, 05/23/2013 - 18:17 | 3593868 Poor Grogman
Poor Grogman's picture

Freegold requires that fiat currency(means of exchange) survives through the heavy handed intervention of government laws (no gold loans). Therefore it is yet another cunning artifice of the money changers.

Don't worry if FOFOA gets her freegold, the sheeple will still be donating to the money changers by way of interest paid on money created from thin air.

Freegold is an attempt to integrate the money power (interest on fiat) into a gold coin framework, it is cynical sophistry at is most cunning.

I repeat my challenge to FOFOA to show up here on the boards and debate this bullshit.

Thu, 05/23/2013 - 19:01 | 3593984 Pinto Currency
Pinto Currency's picture

 

FOFOA has been posting giberish about fiat money being absolutely needed because people want to spend more than they have and that fiat wipes out the debt every few decades allowing this consumption.

FOFOA is crafty but the message of a pro-gold proponent pushing continued fiat money tells us much about him/her.

Thu, 05/23/2013 - 19:18 | 3594016 Poor Grogman
Poor Grogman's picture

If you were a banker who loves gold wouldn't it be great to be able to loan people money that they paid you interest on, thus enabling you to accumulate more gold.

All the while calling for a 50k gold price and simultaneous .gov ban of gold loans thus funneling even more fiat/gold to you?

A nice scam indeed if you were the one who benifitted.

Just saying...

Edit: then when the whole scheme of free gold Inevitably collapsed you would conveniently be sitting a mountain of gold that now "would be available to loan" .

The devil himself would be proud of this scheme...

Thu, 05/23/2013 - 13:28 | 3592704 GVB
GVB's picture

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

Henry Ford (note: NO INTERNET AVAILABLE AT THAT TIME)

Thu, 05/23/2013 - 13:41 | 3592768 greyghost
greyghost's picture

nice article....side note: sears holding to transform empty stores into "data" centers! what ever that means.

Thu, 05/23/2013 - 13:57 | 3592866 Divided States ...
Divided States of America's picture

Maybe they meant "drone centers" for storing drones for the US govt in cities near you.

Thu, 05/23/2013 - 13:42 | 3592773 earleflorida
earleflorida's picture

indeed, and all the piled-on-high 'horseshit' suddenly disappeared-- a twofer

btw    there's a reason 'bears' go into hybernation?

Thu, 05/23/2013 - 13:18 | 3592649 PiltdownMan
PiltdownMan's picture

Lol!

Thu, 05/23/2013 - 13:07 | 3592598 bluskyes
bluskyes's picture

You're only trapped if you hold an active position.

Thu, 05/23/2013 - 14:34 | 3593018 Professorlocknload
Professorlocknload's picture

"You're only trapped if you hold an active position."

 

Or if you must live within this system.

Thu, 05/23/2013 - 13:07 | 3592599 gjp
gjp's picture

Doesn't make any of it less true.

Thu, 05/23/2013 - 13:08 | 3592606 GeezerGeek
GeezerGeek's picture

Please explain what part of the financial system bears any resemblance to a rational system. Economy struggles to break even, but stocks double over the last few years with hardly a correction. Government expands while the middle class dwindles. Cost of things needed to live rise rapidly, but we're told the increases in the cost of living are negligible. This is surreal. Being trapped by this manufactured rally is inevitable when one has a bias toward rational markets and refuses to adjust for the lies and manipulation. 

Thu, 05/23/2013 - 14:36 | 3593027 nope-1004
nope-1004's picture

+100 Geezer.

 

Thu, 05/23/2013 - 13:09 | 3592607 Lion In a Sidecar
Lion In a Sidecar's picture

I assume these types of articles come from those who have already stepped out of the game and are trying to encourage others to do so as well.

Thu, 05/23/2013 - 13:46 | 3592793 Kreditanstalt
Kreditanstalt's picture

So what?  They COULD end up being right...

Thu, 05/23/2013 - 13:28 | 3592702 Hal n back
Hal n back's picture

I kind of remember 2000 and 2008--I missed the last part of the run up--but when the dust settled I was green in 2008 and 2000 and 2001.

 

Stand outs--I sold INTC at 70 in summer of 2000 via a covered call, I sold CSCO at 81--unfortunately I thought it was a bargain at 52 later on.

 

 

Thu, 05/23/2013 - 14:17 | 3592958 spaceduck
spaceduck's picture

Actually i think the writers of ZH (great writers, of such inspiring and very truthful and interesting articles) have nothing to do with trading. IF they would be traders, of course they would be bears, and considering the fact that ZH is per se a bearish blog, such writers-traders would be already broke from long time.

So, don't mix ZH and traders, ZH is not about trading, it's more about.. well, ZH!

cheers ;)

Fri, 05/24/2013 - 02:14 | 3595072 MythicalFish
MythicalFish's picture

Scientific research shows that when you are winning and you are "onto something", you are 89% less likely to blog about it than when the reverse is true.

Thu, 05/23/2013 - 13:00 | 3592569 Chupacabra-322
Chupacabra-322's picture

It is happening because the financial system is in a terminal state of broken.

Bullshit.  it is happening because the financial system is in a terminal state of CRIMINAL FRAUD!

Thu, 05/23/2013 - 13:07 | 3592602 SRSrocco
SRSrocco's picture

The collapse of the worlds economies has more to do with energy than most realize. This is taking place in the gold industry as well. I discuss it in my post below at the link.

http://srsroccoreport.com/the-big-squeeze-continues-in-the-top-gold-mine...

Thu, 05/23/2013 - 13:11 | 3592619 LawsofPhysics
LawsofPhysics's picture

True, but this would also be corrected in part if people/corporations/governments were being held accountable.  In any case, the laws of physics and Nature really don't give a shit either way.  But yes, new technology requires that no existing captial or resources are mis-allocated or mal-invested.  The financialization (enrichment of fucking paper-pushers) has been a horrible and is still a horrible mis-allocation/mal-investment.

Thu, 05/23/2013 - 13:24 | 3592667 Pinto Currency
Pinto Currency's picture

-

Thu, 05/23/2013 - 14:09 | 3592915 Stu
Stu's picture
Arab Countries Openly Discuss Peak Oil for the First Time

Reflections by Robert Hirsch on the Conference “Peak Oil: Challenges and Opportunities for the GCC Countries”. Held at Doha, Qatar on 2-4 April 2013. Posted with his generous permission. I was fortunate to be among the few westerners invited to attend and speak at this first-of-its kind “peak oil” (PO) conference in a Middle East. The fact that a major Middle East oil exporter would hold such a conference on what has long been a verboten subject was quite remarkable and a dramatic change from decades of PO denial. The two and a half day meeting was well attended by people from the GCC as well as other regional countries. The going-in assumption was that “peak oil” will occur in the near future.

Peak Oil:

 

• Peak oil provides an incentive to consider important national and regional issues. The GCC is currently working new problems with old solutions.

• Oil revenue represents about 93% of the Saudi budget. Everything is now imported — foreign expertise and most labor. Saudi can’t continue on the current track, because it would lead to a “bad future.” We need radical change.

• After peak oil, will there be great cities, or will Middle East cities end up like the gold mining ghost towns of the old U.S. west?

• So far we have wasted our opportunity.

Shale oil in the U.S. is so much foolishness and does not invalidate peak oil. We definitely must worry about peak oil.

 

http://oilprice.com/Energy/Crude-Oil/Arab-Countries-Openly-Discuss-Peak-...

Thu, 05/23/2013 - 13:22 | 3592669 Widowmaker
Widowmaker's picture

DAMNED STRAIGHT!

This is EXACTLY what it is.

Engineered racketeering, a fucking lie compounded.

Thu, 05/23/2013 - 13:00 | 3592570 buzzsaw99
buzzsaw99's picture

Do not blame the poor for this. There is only a very small percentage who must have their heads cut off for everything to come into balance.

Thu, 05/23/2013 - 13:23 | 3592674 Widowmaker
Widowmaker's picture

Do you mean recipients of record bonuses from TARP?

You better damn well.

Thu, 05/23/2013 - 13:49 | 3592816 Kreditanstalt
Kreditanstalt's picture

Nonsense.  It's insolvent simply because there isn't enough reason to produce wealth anymore.  The poor are some of the biggest lovers of government, and the violence on which it maintains a monopoly.  So are the corrupt rich, of course, but this is NOT a "99% vs.1%" situation...not class vs. class or "rich" vs. "poor". 

It's honest people, self-reliant, responsible for their own lives...vs. the institution of government.

Fri, 05/24/2013 - 14:19 | 3596488 Kobe Beef
Kobe Beef's picture

+1. Kleptocracy above, Lootarchy below. 

Thu, 05/23/2013 - 13:01 | 3592574 IridiumRebel
IridiumRebel's picture

"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both."

Louis Brandeis

Thu, 05/23/2013 - 13:37 | 3592739 rosiescenario
rosiescenario's picture

...so, you are saying we have become Mexico or any of the other 3rd. Worlds where corruption rules and the elite .5% control the wealth?

Thu, 05/23/2013 - 14:36 | 3593026 TNTARG
TNTARG's picture

Have you ever seen more corruption than in the US? All the rest of us are just amateurs.

 

Thu, 05/23/2013 - 13:03 | 3592586 Dan The Man
Dan The Man's picture

Corruption, deceit and theft are not virtues, yet if they are practiced openly they cease to become vices.

Well put mang

Thu, 05/23/2013 - 13:03 | 3592587 q99x2
q99x2's picture

You just BTFD and don't worry about it.

Thu, 05/23/2013 - 13:04 | 3592588 RSloane
RSloane's picture

Of course the government's survivability depends on its ability to distribute largesse. On a rational level, what else do they have to offer at this point?

Thu, 05/23/2013 - 14:29 | 3592999 tugtrash
tugtrash's picture

Force

Thu, 05/23/2013 - 13:04 | 3592590 Dareconomics
Dareconomics's picture

Easy money policies increase income inequality.  Trickle down economics, whether by tax cuts for the rich or cheap Fed cash handed to the TBTF banks, is a failure. 

http://dareconomics.wordpress.com/2013/05/23/around-the-globe-05-23-2013/

Thu, 05/23/2013 - 13:07 | 3592600 RaymondKHessel
RaymondKHessel's picture

“Go shopping more" - Bush

Thu, 05/23/2013 - 13:54 | 3592846 Clowns on Acid
Clowns on Acid's picture

That was obama...dickface.

Thu, 05/23/2013 - 15:01 | 3593153 aerojet
aerojet's picture

Pretty sure it was Bush just after 9/11.

Thu, 05/23/2013 - 13:08 | 3592605 robnume
robnume's picture

Great observation! Someone IS awake out there in the void! Just as parents set the tone for their children's behavior, government sets the tone for society. As George Santayana said "Those who do not learn the lessons of history are doomed to repeat them". Personally, I can't wait for the fall, it's inevitable; there will be no reset. Chaos is coming soon to a theatre near you.

Thu, 05/23/2013 - 13:14 | 3592628 GeezerGeek
GeezerGeek's picture

Actually, what's coming to a movie theatre near you is "The Purge". http://www.fandango.com/movie-trailer/thepurge-trailer/161109

Sort of a limited edition of Chaos on a regular schedule, from what the trailer says.

Thu, 05/23/2013 - 13:39 | 3592753 rosiescenario
rosiescenario's picture

....Clinton kind of made lying OK...."Read my lips. I did not have sex with Monica...."

Thu, 05/23/2013 - 16:25 | 3593524 Shigure
Shigure's picture

Clinton also said "You know, by the time you become the leader of a country, someone else makes all the decisions.  You may find you can get away with virtual presidents, virtual prime ministers, virtual everything" President Bill Clinton, speaking in Ireland 1998

Thu, 05/23/2013 - 13:10 | 3592614 kralizec
kralizec's picture

Havoc, I like the sound of that, where can we get some?

Thu, 05/23/2013 - 13:11 | 3592615 Skin666
Skin666's picture

Good post.

 

Anarcho-capitalism is the only method of social order for a free market...

 

It will happen in the next 20 years...

 

 

Thu, 05/23/2013 - 13:25 | 3592687 Widowmaker
Widowmaker's picture

The only "capitalism" (HA!) in the next 20 years will be at the behest of the barrel of a gun.

Widowmaker wishes he was joking.

Thu, 05/23/2013 - 15:33 | 3593296 Anusocracy
Anusocracy's picture

That's a possibility, although a very small one.

Large nation states would have to disappear followed by smaller ones. Eventually it would reach a point where city states would compete primarily as economic zones with their efficiency and productivity driven by ever less intrusive government.

A more likely outcome is that nanotech becomes so efficient that government then becomes superfluous.

Thu, 05/23/2013 - 19:50 | 3594117 blindman
blindman's picture

at the reduced level government becomes accountable,
closer to its cause or purpose and truth. there is a point
of growth of it where it becomes ..... cancerous.
I think it is a simple biological phenomena expressed in
social organization/s.

Thu, 05/23/2013 - 13:28 | 3592700 kchrisc
kchrisc's picture

Government and the banksters are the criminal ying and yang of theft and destruction, the "invisible hammer." They work hand in hand to serve their own needs and desires, greed, and as such bring great poverty and death to all the rest of humanity.

Thu, 05/23/2013 - 13:45 | 3592785 blindman
blindman's picture

specifically federal government or global government.
a distinction with a difference from local government,
we avoid that distinction at our own peril, imo.

Thu, 05/23/2013 - 13:47 | 3592703 blindman
blindman's picture

how do you accomplish investigation and prosecution without government?
when government has been compromised and bought, usurped, the people's
will has been perverted, stolen and fed back to them as poison
influence.

Thu, 05/23/2013 - 15:42 | 3593331 Anusocracy
Anusocracy's picture

In a very 'moral' society they would be ostracized.

Tar and feather them and run them out of town.

 

 

Thu, 05/23/2013 - 16:12 | 3593465 blindman
blindman's picture

http://www.youtube.com/watch?v=Gd6P1Ue2aGg
Defense Against the Psychopath (Full length)

Thu, 05/23/2013 - 13:29 | 3592707 thismarketisrigged
thismarketisrigged's picture

the only way to fix this market is for it to crash.

 

its like a computer infected with a bunch of viruses.

 

you may love that computer and are too lazy to go and fix it because u think it will fix itself, but the reality is, unless u go and wipe the computer out completely, the virus will persist.

same thing with this market, yes it will be extremely painful for anyone invested in this market, but at the end of the day, things will become a lot better because we fixed the problem. painful and annoying in beginning, but u will be happy it happened long term.

 

 

Thu, 05/23/2013 - 14:44 | 3593056 blindman
blindman's picture

good analogy but there is a big difference between
wiping out the hard drive and reinstalling an
operating system as you most certainly already know.

Thu, 05/23/2013 - 13:32 | 3592722 insanelysane
insanelysane's picture

See the entire state of Rhode Island as an example.

 

 

Thu, 05/23/2013 - 13:49 | 3592812 insanelysane
insanelysane's picture

They keep trying to remove the "and Providence Plantations" because even though Rhode Island never had slaves, the low information citizens believe any and all plantations have slaves.

Thu, 05/23/2013 - 13:52 | 3592832 Bastiat
Bastiat's picture

Professonal PC whiners/nazis bring this stuff up and the low info citizens are too dumb to object. 

Thu, 05/23/2013 - 14:02 | 3592883 Cognitive Dissonance
Cognitive Dissonance's picture

Considering "We the People" are all debt slaves to some degree or another I say they should change it to "The Debt Slave State of Rhode Island and Providence Plantations."

It has a nice ring to it.

Thu, 05/23/2013 - 15:00 | 3593145 Smiddywesson
Smiddywesson's picture

There once was a debt slave from Pawtucket,

Whose...err, never mind, not that kind of a web site.

....terribly sorry, carry on.

Thu, 05/23/2013 - 16:22 | 3593508 Disenchanted
Disenchanted's picture

Slave trade was Rhode Island's 'number one financial activity'

What that article doesn't tell you is exactly who it was that exercised major control of the slave trade and shipping.

 

 

Thu, 05/23/2013 - 13:39 | 3592761 Meremortal
Meremortal's picture

Corruption indeed. I'm surprised there is no thread up about this:

 

"The head of the International Monetary Fund arrived in the dock of a Paris courtroom today as she braced herself to be formally charged with embezzlement and fraud.

Christine Lagarde’s humiliation is not only a massive personal blow which could lead to her resignation, but one which will plunge the world’s banking system into further ignominy.

The clearly nervous 57-year-old said nothing to reporters as she entered the Court of Justice of the Republic, a special tribunal set up to judge the conduct of France’s government ministers,  shortly after 8.30am.

Lagarde faces a maximum sentence of 10 years in jail.."

Thu, 05/23/2013 - 13:50 | 3592822 Bastiat
Bastiat's picture

Systemic fraud starts at the top.

Thu, 05/23/2013 - 13:51 | 3592827 insanelysane
insanelysane's picture

Yes, the rich socialist that doesn't pay any taxes to any government apparently wrote a check from the government funds to a donor to the French President.  Unfortunately for Madame Legarde, she did not do it while in the US government where it is legal.  See Solyndra.

Thu, 05/23/2013 - 13:51 | 3592824 eddiebe
eddiebe's picture

There used to ba a saying SNAFU: Situation normal all fucked up.

They say we get the government we deserve, but I can't believe we all deserve this.

Thu, 05/23/2013 - 13:53 | 3592836 Bastiat
Bastiat's picture

I don't.

Thu, 05/23/2013 - 13:53 | 3592841 insanelysane
insanelysane's picture

The other 49% are happy and there is the 2% that are happy regardless of what crew gets elected because they pay both sides.

Thu, 05/23/2013 - 13:54 | 3592844 Atomizer
Thu, 05/23/2013 - 14:25 | 3592981 blindman
blindman's picture

great link there. culture is based on myth and politics
is based on culture. no where in this triad is thinking
either required or desired until people are dying and starving
in your presence. you would hope that someone in a position
of influence would know something about it, but, not today.

Thu, 05/23/2013 - 14:55 | 3593115 Smiddywesson
Smiddywesson's picture

Reality is like the Matrix.  All that is required for complete and utter control is belief.  Now that people are starting to have their eyes opened, we will see whether the system begins to crumble.

Thu, 05/23/2013 - 21:45 | 3593386 MeelionDollerBogus
MeelionDollerBogus's picture

That is NOT the message of the Matrix movie.

The message was CHOICE, not belief. So long as choice is given at any level it is a form of consent, co-operation with the system. It is those who can not, will not choose to comply that cause a problem.

Thu, 05/23/2013 - 15:04 | 3593162 blindman
blindman's picture

9/11 Truth: Hollywood Speaks Out (FULL LENGTH FILM)
http://www.youtube.com/watch?v=6rw397VbRyM
.
Robert Wyatt Story (BBC Four, 2001)
http://www.youtube.com/watch?feature=endscreen&v=CdNKPqG-0ss&NR=1
.
Concentrated wealth and power are intrinsically sociopathological by their very nature
http://dangerousminds.net/comments/concentrated_wealth_and_power_are_int...
.

Thu, 05/23/2013 - 15:07 | 3593168 nantucket
nantucket's picture

predicting a crash is tough.  you are wrong hundreds or even thousands of times before you are right.  that's a very tough way to make a living off of the market. but, I suppose, a decent way to make a living in the information business.

Thu, 05/23/2013 - 15:43 | 3593333 newworldorder
newworldorder's picture

It may be broken but it will NOT be acknowledged as broken till the FED admits it - or Americans stop drinking the cool aid.

Thu, 05/23/2013 - 15:52 | 3593375 MeelionDollerBogus
MeelionDollerBogus's picture

Silly rabbit – the kool-aid is going right to the water grid.

Thu, 05/23/2013 - 17:05 | 3593684 alfbell
alfbell's picture

 

 

Can't we all just get along?

The government, bankers and the people need to have a big garden party and become friends. No one will be mean or evil or greedy anymore and we'll all just be happy and have fun.

Thu, 05/23/2013 - 17:40 | 3593787 grekko
grekko's picture

Have fun?  I say bring on the crap storm, the sooner the better, then we can start to rebuild.

Thu, 05/23/2013 - 21:43 | 3593767 blindman
blindman's picture

I heard on the radio a comment from an apparent expert on
such matters that the problem in psychology today, as it pertains
to the diagnosis of schizophrenia, is the descriptions in the
dsm are so vague that the high functioning schizophrenics, and their
mental health professional support team, do not recognize the
schizophrenic in the literature; or, the schizophrenics do
not recognize themselves (as such and potentially humorous ...a?),
or the state of the field knowledge base
does not recognize the identity of the schizophrenic.
.
a schizophrenic walks into a bar and says "i'll have a jim beam".
the bartender says "we don't serve schizophrenics at this bar."
the customer says, "ok, i'll have a beer and a shot of jim beam."
the bar tender say, " is that a joke? "
.
somewhere in there is humor but I have yet to find it.
anyway, terminally broken might be part, a feature, of the new normal.

Thu, 05/23/2013 - 19:35 | 3594071 hidingfromhelis
hidingfromhelis's picture

Terminal State of Broken...to some it's a bug, but to others it's a feature.

Thu, 05/23/2013 - 19:38 | 3594085 Brazen Heist
Brazen Heist's picture

The financial system works in cycles due to the credit cycle. It will collapse because it is debt based and needs exponential growth which cannot keep up, and then grow again when interest rates are crushed. One thing is certain ladies and gentlemen, and that is that there is always more money being owed as debt than money in existence to pay off that debt. This is the driving force of the economic system - interest, and its Achilles Heel at the same time. After a collapse, humanity engages in protectionism, xenophobia and regulation, somewhat taken aback at the abrupt party crash. But don't fret! The maddness will begin again and we become good friends and ride the wave high. We are stuck in a volatile, cyclical, exponential matrix.

It didn't have to be like this. Lincoln issued debt-free Greenbacks with no interest (just principal), and they worked very well. Add to that a brutal concotion of centralized power cowering behind words like "freedom" and "democracy" which has convinced its serfs that they are free and VOILA, you get the state of the world we live in.

A possible solution: Central Banks and Commercial Banks should not charge interest on the money they create, because they created it out of thin air at no cost other than a few strokes at the keyboard. There is no opportunity cost in this deceptive chicanery. They can make their profits via the abundant fees and service charges that they make already, that would be more than enough. If you conjure fiat bullshit out of nothing and have the nerve to charge hefty interest on it, fuck you, you hardly even deserve only the principal back! Interest should only be allowed to be charged by non-bank financial institutions which cannot create worthless paper out of nothing and charge exhorbitant interest on it, institutions that actually have a real opportunity cost of lending out their limited funds to borrowers. This way, debt would not blow out of proportion. Blahh, just my 2 cents. But I know bankers won't give up their monopoly on money creation that easy.

"The greatest shortcoming of the human race is our inability to understand the exponential function"

- Albert Bartlett

 

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