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Government: "A Seedy Circus... Perpetually In Debt"

Tyler Durden's picture




 

Originally posted at Monty Pelerin's World blog,

Larsen E. Whipsnade, aka W. C. Fields

As a card-carrying curmudgeon, I have always been a fan of W. C. Fields. His pessimistic view of the human race and its foibles rivalled that of H. L. Mencken, another favorite. In 1939 W. C. Fields wrote and starred in “You Can’t Cheat An Honest Man.” Wikipedia describes the plot:

Fields plays “Larsen E. Whipsnade”, the owner of a shady carnival that is constantly on the run from the law. The whimsical title comes from a line spoken by Fields about ten minutes into the film. Whipsnade says that his grandfather Litvak’s last words, spoken “just before they sprung the trap”, were: “You can’t cheat an honest man; never give a sucker an even break, or smarten up a chump.” … The character name is obviously a play on “larceny“, a point which Fields reinforces at one point when someone calls him “Larceny Whipsnake”.

Another website, IMBd, described the storyline in this fashion: ”Larson E. Whipsnade runs a seedy circus which is perpetually in debt.” [Note, it is unclear whether the first name coined by Fields was spelled Larsen or Larson. Both appear in various places.]

A Seedy Circus Which Is Perpetually In Debt

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I was struck by the latter description. Is there a better phrase to describe modern government than “a seedy circus which is perpetually in debt?” It is perfect.

Government is exhausted. It, like Whipsnade’s circus, is  out of resources, ideas and solutions. Government has painted itself into a fiscal and financial corner from which there is no escape.

As a result of its profligacy, government is no longer able to sustain itself. That is the real reason for the Fed’s quantitative easing program(s). Taxes and traditional government bond sales no longer provide enough money to run the monster. QE, more properly described as counterfeiting, is a euphemism to disguise the insolvency of the government. Without the Federal Reserve, government would have to pare down dramatically. There is not enough money to meet the levels of military spending, social spending, entitlements, debt service and other commitments.

QE was sold as a basis for stimulating the economy. While that may have been a consideration, it wasn’t as important as pretending the government was not bankrupt. Of course no economic recovery has occurred, which most anyone not infected with Statist economics (feel free to substitute Keynesian) predicted.

Government is now hopelessly indebted. It cannot honor its current debt obligations and social promises. Additional debt is issued to cover the debt service on existing debt. This practice is the equivalent of borrowing against your Visa card in order to make an American Express payment. It works for a short period, but it reflects the debt death spiral that has overtaken government. As Herbert Stein intelligently observed: “something that cannot continue will not.”

An economic Armageddon is coming. It is up to government whether this shows up in the form of fire (massive inflation) or ice (a collapse of the economy). Regardless of what the entry phase looks like, the ending is a massive Depression. The problem is beyond governance or economics. Mathematics has assumed control and mathematics is cold, unemotional and relentless.

Government is insolvent. It will ultimately dishonor many of its obligations. The longer it postpones this reckoning, the bigger the defaults will be and the greater the pain.

Larson E. Whipsnade, aka Government

fieldses (2)

Larson E. Whipsnade is now running the failing circus we call government. He is doing his best to con the people in whatever way fits his advantage. Unfortunately, this is not a comedy and our current Whipsnade is hardly a hapless, likeable con man.

Government has been reduced to a smoke-and-mirrors machine. There is little substance left (other than raw tyrannical power) and tools are limited. Those which might be beneficial are politically unpalatable and will not be used.

What we get from government is little different than the routine of the carnival barker. A major difference is the carney only grabs a portion of our wallet. Government is playing with our entire wallet and the future of our children.

Government is now a facade, with guns. It has failed miserably at governance and shifted its focus to survival. It is doing and will do whatever it perceives can enhance its survival chances. Citizens are considered mere marks to be exploited, fodder for the power class to use as they see fit.

Charles Ponzi and Bernie Madoff, two famous hucksters, were mere gnats compared to the schemes that the American public are facing. A desperate and dying dinosaur is trying to avoid its fate and it does not care what it has to do to accomplish this end. The damage it inflicts will make Ponzi and Madoff appear compassionate with respect to how they treated their victims.

George Washington had no delusions about government:

Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.

Since the time of our first president government has broken virtually every restraint the Founders imposed. The Constitution is little more than a curious artifact. The Rule of Law is routinely violated and headed for the same historical graveyard. Washington could not imagine the “fearful master” we all face today.

A century-long rampage has seen government break virtually everything it touched. Every program enacted has failed in terms of original and revised goals and objectives. None have stayed within budget. Many have produced results 180 degrees from intended. Many are bankrupt in the sense that they cannot be sustained much longer. Many will be defaulted upon. Finally government has driven itself to the precarious position of so many of the programs it manages. It too is broke and unsustainable.

Government itself is broke and unsustainable. Fittingly, it has reached the same state as most of its programs.

Examples of Con Artistry

Larson E. Whipsnade is now running this failing circus and doing whatever he can to con the people. The issue is no longer whether you can cheat an honest man. The government believes, probably correctly, that they can deceive tens of millions of honest men.

To do so, government is engaged in an unusually blatant propaganda campaign. Economic recovery, so we were told, began in June of 2009. That was a lie. We still haven’t recovered and only the Great Depression took longer than this to recover from (and we are not out of this yet).  There are still 5,000,000 fewer people working today than would be considered normal yet the media echoes the government line as faithfully as Pravda once did.

Incredible statistics are routinely reported with a straight face by bureaucrats. Websites like Shadowstats.com provide information as to how this is accomplished and the gap between the reported numbers and what they consider the true numbers. Lying with numbers deliberately misleads and is a reflection of the ruthlessness of those in power. But these prevarications, while shameful, likely cause little economic harm. They are intended to keep the masses happy with whomever happens to hold office.

There is other deception in terms of price manipulation which is very harmful. I am not talking about gold price manipulation or other market fixes designed to enrich Wall Street. These are illegal and should be punished to the full extent of the law. Rather I am referring to something more subtle and devastating in its effects on the people of this country.

 

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Fri, 05/31/2013 - 13:05 | 3614010 akak
akak's picture

Regarding the pic: AnAnonymous was here.

Fri, 05/31/2013 - 13:14 | 3614043 dogbreath
dogbreath's picture

I had a Bouvier de Flandres.  I ran out of the normal premium food I gave him and had to buy DogChow which you have to feed at more than twice the volume  .  Needless to say the volume of his turds were more than twice as big.  He would drop four+ of them piles every day. 

Fri, 05/31/2013 - 13:20 | 3614063 jbvtme
jbvtme's picture

eliminate the pension and the beast will die

Fri, 05/31/2013 - 13:51 | 3614206 cougar_w
cougar_w's picture

I think it has more to do with the actual DogChow. Obviously the beast in this case sounds like an expensive breed and irrespective of that it's a lot easier just to pick up the outputs and then work harder on the inputs than to -- as they say -- starve the beast.

Fri, 05/31/2013 - 14:41 | 3614509 CH1
CH1's picture

"Seedy Circus" is true enough, but it misses the fact that they rob every person in the tent - perpetually.

Working people are stripped of half their earnings by these pompous crooks, and yet they want to be thanked and adored for it.

Fri, 05/31/2013 - 16:18 | 3614991 underman
underman's picture

Checkmate.

Fri, 05/31/2013 - 16:20 | 3615000 dontgoforit
dontgoforit's picture

They want to be thanked and adored BECAUSE of it.  Biden somehow comes to mind with this article, the picture part, at least.

Fri, 05/31/2013 - 16:48 | 3615121 giggler123
giggler123's picture

Looks to me like someone had a happy meal and decided to leave it half finished

Fri, 05/31/2013 - 16:58 | 3615153 Slightly Insane
Slightly Insane's picture

Dogbreath - your story about turds is a hoot.  I have a Tibetian Mastiff - goes by the name "Elvis" - (my 8 yr. old named him).  This guy was just north of 85 pounds .... at Thanksgiving he gets all the left overs .... which when you cook 2 - 20# birds is alot.  My dog will eat 10 pounds of turkey scraps in one sitting .... and layout "steamers" all day long.  It's a riot.  The triptofan causes the poor guy to sleep most of the day .... he doesn't even chase the rabbits when he's that full.  Reminds me of a politician feeding at the "public trough" .... just can't get enough until he's had too much. 

Fri, 05/31/2013 - 20:01 | 3615654 dogbreath
dogbreath's picture

I work in the bush as we say.   I came accross a fresh wolf kill about 10 years ago..  This was in winter and our survey line passed by the site by 100 feet or so.   We smelled it first.  there was hardly anything left, a part of the skull and spine and pelvis if I remember.   The smell of  wolf shit dominated yet there wasn't the amount of turds laying around that you would expect from a wolf pack eating an entire 800 lb moose hide hair and all. 

Fri, 05/31/2013 - 13:08 | 3614021 Investor-1
Investor-1's picture

Global debt is the biggest problem we have and a huge treath to peace and stability in our world. That's why I own some gold and silver in the Goldrepublic vaults in Zürich. Just in case!

Fri, 05/31/2013 - 13:13 | 3614022 CaptainSpaulding
CaptainSpaulding's picture

That pic is definitely da schitz. Respect for the great William Claude Dunkenfield ( W.C. Fields)

Fri, 05/31/2013 - 14:37 | 3614482 Ignatius
Ignatius's picture

"Government is now a facade, with guns."

An apt phrase that and I can imagine 'ol WC usin'.

Fri, 05/31/2013 - 16:59 | 3615156 Slightly Insane
Slightly Insane's picture

Few commedians can rival the wit that W.C. had .... I still love watching him when I can.  What a riot!

Fri, 05/31/2013 - 13:09 | 3614024 cougar_w
cougar_w's picture

You can all count on one thing:

Government will not go quietly into that long night.

This is going to become all seven kinds of ugly before it is done.

Be prepared.

Fri, 05/31/2013 - 13:16 | 3614047 machineh
machineh's picture

Stick a knife in Obamacare and give it a hard twist.

Fri, 05/31/2013 - 13:58 | 3614197 cougar_w
cougar_w's picture

And that saves the day, right there?

You have much to learn grasshopper.

Fri, 05/31/2013 - 17:03 | 3615160 Slightly Insane
Slightly Insane's picture

I'ld rather put Obamacare on the grill at 450 F for a few hours .... then baste it in barbeque sauce and feed it to my canines.

Fri, 05/31/2013 - 17:14 | 3615199 jimmytorpedo
jimmytorpedo's picture

By that I take it you mean without the 'care' portion?

Fri, 05/31/2013 - 13:19 | 3614059 Cognitive Dissonance
Cognitive Dissonance's picture

"We have not begun to fight spite." - John Paul Jones The Elite

Fri, 05/31/2013 - 13:35 | 3614130 cougar_w
cougar_w's picture

Yeah. To really destroy shit takes an insane genius. Someone weened on generations of privilege, who knows the importance of status, and can look down on the other 99.99% of humanity like the maggots we are.

I've heard it said before, we have to kill them before they kill us. But they hold the media and the military in their hands, and they've already got us beat on crazy-as-bat-shit, so I don't know how that is supposed to work out.

Fri, 05/31/2013 - 14:41 | 3614505 Ignatius
Ignatius's picture

I just visited an old friend -- smart guy, actually -- and he thinks things are turning around.

Didn't have the heart to tell him nor the inclination to rant.

Fri, 05/31/2013 - 16:28 | 3615036 markovchainey
markovchainey's picture

The valve must have been sticking, huh Ignatius?  :-)

Fri, 05/31/2013 - 18:36 | 3615404 Ignatius
Ignatius's picture

Temporarily, half way....

Fri, 05/31/2013 - 17:05 | 3615175 Slightly Insane
Slightly Insane's picture

It is turning around ..... like a "floater" in the turd bowl ..... circling the drain as the "flush is in progress".

Fri, 05/31/2013 - 14:41 | 3614507 Ignatius
Ignatius's picture

dupe

Fri, 05/31/2013 - 14:03 | 3614280 Room 101
Room 101's picture

Tyranny is the natural course of events.  The question is whether the tyranny is relatively benevolent or malignant. 

Fri, 05/31/2013 - 14:44 | 3614518 CH1
CH1's picture

And tyranny stops the moment that people stop obeying the tyrant.

Rulership is one gigantic Psy-Op.

Fri, 05/31/2013 - 16:21 | 3615008 dontgoforit
dontgoforit's picture

Only to begin with the next...tyrant.

Fri, 05/31/2013 - 13:11 | 3614028 q99x2
q99x2's picture

Ban guns from the UN Mercinaries (previously known as the US Military).

Fri, 05/31/2013 - 17:42 | 3615202 monad
monad's picture

Too little too late.

Military psyops on civilians and police 4/6 

Fri, 05/31/2013 - 13:15 | 3614042 bluskyes
bluskyes's picture

The debt is caused by issuance of debt based currency. Until this is addressed, and understood by the general public, all measures / discussions are futile.

Fri, 05/31/2013 - 13:19 | 3614060 cougar_w
cougar_w's picture

The public?!? You mean the Wal-Mart hopping lottery-playing suburban happy motorist public? That public?

Are you even serious?

The public will never ever evar understand even the first level of money magic. That train never leaves the station ever forever.

If you've got a Plan B we'd all like to hear it.

Fri, 05/31/2013 - 14:15 | 3614346 Crisismode
Crisismode's picture

 

 

The debt is caused by issuance of debt based currency. This will never be addressed, nor understood by the general public, therefore all measures / discussions are futile.

 

Fixed it for you.

 

Fri, 05/31/2013 - 14:17 | 3614359 bluskyes
bluskyes's picture

Focus on the young people. That's what the establishment does. I give away copies of a book called: "Whatever Happened to Penny Candy?" to kids that I know.

Forget about most old people, they're a waste of time for the most part. Study history, and economics, and call bullshit whenever some stupid geezer opens their mouth and thanks governement for allowing them to breathe today.

Fri, 05/31/2013 - 14:45 | 3614534 CH1
CH1's picture

I give away copies of a book called: "Whatever Happened to Penny Candy?" to kids that I know.

On behalf of posterity: Thank you!

Fri, 05/31/2013 - 14:50 | 3614558 Kreditanstalt
Kreditanstalt's picture

And THAT'S why they should be constitutionally FORCED to keep minting pennies!

Fri, 05/31/2013 - 17:07 | 3615181 cougar_w
cougar_w's picture

Good point. Because you put it that way I hope they do.

Fri, 05/31/2013 - 14:33 | 3614454 grunion
grunion's picture

Demean the working, make fun of the poor. Your hubris destroys any semblance of what credibility you may have had. A quite limited amount I might add.

Bitch, bitch, bitch. So say something righteous or constructive or even toss a bit of advice for the less informed. but your racket just reminds one of Bill Maher. All blah, blah. No solutions.

I suspect you just enjoy seeing your mindless ranting in print.

Perhaps you like to think you are correctly identifying the culprits but your motives are a mystery and the whole schtick is annoying.

Not understanding "magic money" is not a crime (legal or moral) and can be remedied with a little education.

A lot of nasty words could accurately describe your attitude and I think you might have a future with the Royal Presidency as another of his character assassin minions.

Fri, 05/31/2013 - 17:31 | 3615246 cougar_w
cougar_w's picture

I'm sorry you found it offensive. Although offence might have been the point. This is fight club, after all.

But if you did find it genuinely offensive then you might enjoy some of my fiction. My characters (a humanoid tigress and a humanoid computer) are not "every man" but they embody elements of the human experience as I have seen it over the years.

They are the working poor trying to live in a hostile environment. They are lost and sometimes don't know what to do. They are at best ignored but just as often find themselves subject to casual abuses. However they happen to be incalculably powerful and while one of them is technically the destroyer of the human world she doesn't want to do it, really worries about that, has already done it too many times, and has decided to keep her destructive impulses checked.

People are like that. Sometimes we destroy everything on accident and sometimes we work hard to preserve important things. Our failures emerge most often when we fail to apply the proper amounts of sensible animal instincts and rigorous mathematical logic.

People need to wake up to what it really means to be human.

http://madscienceunlimited.com/fiction/

Fri, 05/31/2013 - 16:23 | 3615013 dontgoforit
dontgoforit's picture

There ain't no fuckin' Plan B - that's the point, coug - what's your Plan B?  Guns, ammo and head for the hills?  (no wait, that's actually MY Plan B.)

Fri, 05/31/2013 - 17:13 | 3615196 cougar_w
cougar_w's picture

Not head for the hills, no.

Mine is the Plan B of historical jujitsu: wait for the fall -- help create the fall if you can -- and when the fall starts move forward with as much leverage as you can and fall the thing over a cliff.

Fri, 05/31/2013 - 17:39 | 3615273 jimmytorpedo
jimmytorpedo's picture

I was going for a witty reply but after reading cougars post was ashamed of myself.

but my plan 'A' is guns, ammo and some scuba tanks.

Fri, 05/31/2013 - 13:15 | 3614044 malikai
malikai's picture

The problem is beyond governance or economics. Mathematics has assumed control and mathematics is cold, unemotional and relentless.

+10000

Fri, 05/31/2013 - 13:37 | 3614100 cougar_w
cougar_w's picture

If mathematics was actually in control we would be 100% confident of the outcome and I for one would sit back and relax.

Except mathematics is not in control at all. Not even a little bit. In fact I heard Mathematics was taken out behind the garage and shot at dawn along with his co-conspirators MarkToMarket and TheRuleOfLaw.

We are off the edge of the map now. Except for the laws of physics the world is become utterly lawless. And frankly I'm a little worried for the continued reign of physics. I think these fuckers are gonna try and become gods immune to natural law. I'm serious. They are showing signs of crawling insanity.

It is very troubling. The roads to any proper way out are all behind us, and every escape ahead seems only more desperate than the last. I am now entirely resigned to the prospect that humanity will take no side road to any kind of solution however late or ill-considered but will stubbornly run itself right over a cliff and into 1,000 years of relentless grief.

What a ride. Crap.

Fri, 05/31/2013 - 14:18 | 3614370 Crisismode
Crisismode's picture

 

 

Just think of the current state of affairs as comparable to Rome around 400 AD.

After the fall, that abyss took a helluva long time to crawl out of.

 

Fri, 05/31/2013 - 14:21 | 3614377 newworldorder
newworldorder's picture

RE: cougar_w

 

You are correct. At a practical matter, the country is ungovernable in what passed for governance up to about 1990. The tipping point was passed when we hit the "deficits do not matter and the spread the wealth" mantras. The rest of the world will go along for we have the two most powerfull enteties the world needs.

A money printing/money swapping FED and the US Navy, able to keep the commerce/oil lanes open.

 

Fri, 05/31/2013 - 14:55 | 3614571 Kreditanstalt
Kreditanstalt's picture

MAINTAINING CONFIDENCE.  The public has to lose confidence in the system and the currency for any real change to occur and withhold legitimacy from government - not "this party" or "that party", but big government itself....and THAT isn't happening. 

Even though living standards keep falling but...boiled frog syndrome...

Fri, 05/31/2013 - 16:25 | 3615018 dontgoforit
dontgoforit's picture

Boilded frog is a good analogy.  It's a 'con' game after all!

Fri, 05/31/2013 - 19:23 | 3615547 candyman
candyman's picture

 

Mathematics presentation May , 2013, Singapore

http://www.youtube.com/watch?feature=player_embedded&v=Osq1yxSFVG0#!

Sat, 06/01/2013 - 06:05 | 3616244 malikai
malikai's picture

The liars would love for you to believe this. But no matter what they do, they cannot change the laws of mathematics, which is the overlord of the laws of thermodynamics, and more importantly entropy.

I would love to believe it wasn't true. If so, I'd run out and buy me a nice big McMansion and 3.5ton SUV, on the credit card. Unfortunately, I cannot believe their lies.

Fri, 05/31/2013 - 14:06 | 3614301 Room 101
Room 101's picture

Wrong.  Mathematics is subject to control as are other things.  2+2=5.

2+2 has always equaled 5 and always will.  Until it doesn't.   

Sat, 06/01/2013 - 06:07 | 3616245 malikai
malikai's picture

Until it doesn't.

Fuckin-A.

Fri, 05/31/2013 - 14:15 | 3614344 AurorusBorealus
AurorusBorealus's picture

Mathematics is a language with a rigid set of gramatical rules and nothing more.  Mathematics is not the language of God, does not connote inevitability, destiny, fate, or anything of the sort.

Human beings control this game, for the moment, and they have chosen, collectively and democratically, to live as animals: exploiting one another (either through financial wizardry or taking other people´s money rather, welfare, rather than searching for gainful employment), killing one another, and outright robbing their neighbors.  I am quite sure that God is not pleased.  Someday, we will all see who is really in control, and He is not happy.

Fri, 05/31/2013 - 14:39 | 3614491 cougar_w
cougar_w's picture

I was fine with everything except "living as animals".

Animals don't commit any (not one) of the crimes humans commit against each other and against nature. If humans really behaved like animals we wouldn't have a fraction of the societal problems we deal with now, and 0% of the wars for resources.

I'm not sure how god enters into it. I'm just an animal and don't get that part at all so you can claim what you want.

Fri, 05/31/2013 - 15:14 | 3614670 AurorusBorealus
AurorusBorealus's picture

I stand corrected.  You are right.

Sat, 06/01/2013 - 06:09 | 3616246 malikai
malikai's picture

Dolphins and certain nonhuman ape species are well known to rape and pillage under certain circumstances.

Fri, 05/31/2013 - 17:44 | 3615281 jimmytorpedo
jimmytorpedo's picture

Of which "GOD" do you speak?

There are like,...7000 of them last time I checked

Fri, 05/31/2013 - 18:08 | 3615346 cougar_w
cougar_w's picture

Why play favorites? I blame all of them as a rule.

Wait that's not true. I don't mess with either Kali or Sekmet. Some women you want to stay away from.

Fri, 05/31/2013 - 13:15 | 3614045 nonclaim
nonclaim's picture

The elephant has gone to greener pastures a few years ago... It is the donkey that is shitting the place now (need a more recent picture).

Fri, 05/31/2013 - 13:16 | 3614049 asteroids
asteroids's picture

$1T+ added to the debt forever. That is until the rubes run you out of town.

Fri, 05/31/2013 - 13:19 | 3614061 johnQpublic
johnQpublic's picture

oh what a tangled web we weave when first .....ahhh nevermind

Fri, 05/31/2013 - 13:20 | 3614064 fonzannoon
fonzannoon's picture

10yr at 2.19%

Tick Tock

Fri, 05/31/2013 - 13:21 | 3614066 rsnoble
rsnoble's picture

Hard to prosper-for most- in a country that's gov't is hanging on for dear life.  They will tax us to holly hell and nuke everyone that doesn't go along with it.  The US is like the asshole sibling that has ruined his life and is bound and determined to not let go and drag everyone kicking and screaming down the toilet with them.

Fri, 05/31/2013 - 14:07 | 3614309 Room 101
Room 101's picture

Another starry eyed optimist.

Fri, 05/31/2013 - 15:36 | 3614761 akak
akak's picture

Another boot-licking Quisling and purveyor of acquiescence to sociopathic and pathological corruption and evil.

Fri, 05/31/2013 - 16:27 | 3615031 dontgoforit
dontgoforit's picture

It's the devil's paradise

Fri, 05/31/2013 - 13:31 | 3614077 ebworthen
ebworthen's picture

Government:

Lying and smoke and mirrors.

That and a steaming crock of bullshit.

And they have a bunch of guns and bullets.

They will push this to the edge, then go full fascist - wrapped in the flag - with a confuzzled miasma of slogans and euphemistic catch-phrases to whip the sheeple into participating.

It will be a battle between those who understand the inverse relationship between responsibility and freedom, and those who believe in the benevolence of soul-less grinding bureaucracies and parasitic corporatocracies.

Fri, 05/31/2013 - 16:28 | 3615037 dontgoforit
dontgoforit's picture

It'll be ok; have another Duvel on me

Fri, 05/31/2013 - 13:30 | 3614103 Dareconomics
Dareconomics's picture

The question (as usual) is how long will the collapse take.  Empty empires have a habit of hangin on much longer than anyone can foresee.  It took the Ottomans and Romans 300 years to fall.  The Habsburgs held on for 100 years after Napoleon beat them up and dissolved the Holy Roman Empire.  

 

http://dareconomics.wordpress.com/2013/05/31/around-the-globe-05-31-2013/

Fri, 05/31/2013 - 13:38 | 3614151 AurorusBorealus
AurorusBorealus's picture

The end is close now.  The next significant disruption in the real economy (the production of food and trade goods... another sustained drought, for example) will end the financial paper covering the collosal transfer of wealth from the peasantry to the nobility.

What comes next... well... Napoleon or Hitler and war... I hope for Napoleon, but Hitler is more likely in our democratic times.

Fri, 05/31/2013 - 13:33 | 3614108 AurorusBorealus
AurorusBorealus's picture

This article is dead on correct, and echos what I have said all along.  QE is not about stimulating the economy, the "wealth effect," boosting the housing market, bailing out banks, or any other mumbo jumbo cooked up by Bernanke´s cadre of Ph.Dummies.  It is the latest chicanery in an attempt to finance a government that went broke 40 years ago.  Greenspan and Bernanke are the modern equivalents of Cardinal Richeliou and Jean-Baptiste Colbert, the 2 men responsible for maintaining the finances of ancien regime France, by hook or by crook, through many years of war, the excesses of nobility, and the expansion of an enormous bureaucratic police state.

History does not repeat itself, but it often rhymes.  Interesting that in our times, the great project of the enlightenment has resurfaced as well... the Encyclopédie... i.e. Wikipedia.

Fri, 05/31/2013 - 13:45 | 3614185 cougar_w
cougar_w's picture

Insightful.

Does it support your thesis at all knowing that I used Wikipedia to look up Cardinal Richelieu and the reign of Louis XIII?

Fri, 05/31/2013 - 13:56 | 3614242 AurorusBorealus
AurorusBorealus's picture

Lol.  Yes it supports my thesis.  I was calling Greenspan Richeliou 14 years ago in graduate school at the University of Chicago.  It was the history department though, and everybody was too interested in deconstructing gender to pay any mind to what I was saying.

Fri, 05/31/2013 - 14:18 | 3614368 cougar_w
cougar_w's picture

Don't worry about it, they'll still be deconstructing gender 14 years further on -- except they'll be sitting around a campfire wrapped in thread-bare blankets eating from skewers of squirrel meat.

Fri, 05/31/2013 - 14:22 | 3614387 ebworthen
ebworthen's picture

Alexandre Dumas did a great job illustrating your point in "The Three Musketeers", "The Vicomte of Bragelonne: Ten Years Later", and "Twenty Years After" (the Musketeer Trilogy).

Fri, 05/31/2013 - 17:47 | 3615288 jimmytorpedo
jimmytorpedo's picture

I hope I never have to deconstruct gender.

Eeewww

Fri, 05/31/2013 - 13:39 | 3614155 Cacete de Ouro
Cacete de Ouro's picture

Brilliant description of government. This is what the US Founding Fathers warned about. Its all around plain to see now. But hiding in plain site, most do not see. Its as if they are intoxicated by a mist which has come down and settled over the populace, or maybe the masses just live in perpetual banality or are just dollards.

Government is a monster parasite which will eat up all before it and kill when cornered. This is why checks and balances were important. Unfortunately Government has a underlying addiction to dismantle checks and balances, and has increasingly done so.

I always see politicians as the sad assholes who were invariably on college committees, who got a kick out of thinking they were important. If elected one year they would do anything to continue to be elected the following year, aiming to consolidate their positions. Its sickening behaviour, but maybe this is human behaviour, self seeking, corrupt and greedy.

Or maybe the human race is just not yet enlightened? But will it ever be? Any evolution would take generations on a worldwide scale..

Fri, 05/31/2013 - 13:41 | 3614167 Turin Turambar
Turin Turambar's picture

The debt problem is simple.  Default.

Fri, 05/31/2013 - 13:44 | 3614183 Madcow
Madcow's picture

100% of market participants believe that hyper-deflation (a "sudden stop"*) is not possible under a debt=money system.

Thats how you know its going to happen.

 

*

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/100747...

Fri, 05/31/2013 - 14:45 | 3614238 cougar_w
cougar_w's picture

The more they refuse to defuse the situation, the more likely we will have a sudden stop. Do note the asymmetry here, it is critically important.

I could write a great deal about why they might want it to happen as a sudden stop, but I won't. Suffice it to say a very few players will make out exceedingly well, and that right there seals the deal for the rest of us.

EDIT:

I could write a great deal and actually have written rather a lot. It's not really 100% on topic, but it is Friday so --- fiction!

http://madscienceunlimited.com/fiction/uncomfortableWithTheTruth.html

Breaking the world. They will do it for the profit, but Fortran does it on general principles and hang the profits.

And she's just such a sexy breaker of things, you find you just have to encourage her.

Fri, 05/31/2013 - 14:04 | 3614285 JR
JR's picture

“This is like crooks trying to figure out where they can go hide. It’s a mafia,” she said. “These culprits that have grabbed all this economic power have succeeded in infiltrating both sides of the issue…”

You would think some Central Bank insider would, looking in the mirror, decide to come out of the shadows and blow the whistle on this Leviathan tyranny.

Well, now, one has…World Bank ex-Senior Council Attorney Karen Hudes. While beginning to reveal questionable inner workings at the World Bank she was fired and now helps lead an international effort to uncover how a world network of central banks is led by a small group of private bankers now controlling resources, media and politicians, all over the globe.

Did Hudes’ story unfold in the Washington Post, or on CBS? No, it’s in one of the publications apparently still dancing outside of cartel control, The New American. Here are a few graphs from the piece:

World Bank Insider Blows Whistle on Corruption, Federal Reserve | The New American | May 22, 1013 | Alex Newman (excerpt): 

Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”

According to the peer-reviewed paper, which presented the first global investigation of ownership architecture in the international economy, transnational corporations form a “giant bow-tie structure.” A large portion of control, meanwhile, “flows to a small tightly-knit core of financial institutions.” The researchers described the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers. Of course, the implications are enormous for citizens as well.

Hudes, an attorney who spent some two decades working in the World Bank’s legal department, has observed the machinations of the network up close. “I realized we were now dealing with something known as state capture, which is where the institutions of government are co-opted by the group that’s corrupt,” she told The New American in a phone interview. “The pillars of the U.S. government — some of them — are dysfunctional because of state capture; this is a big story, this is a big cover up.”

At the heart of the network, Hudes said, are 147 financial institutions and central banks — especially the Federal Reserve, which was created by Congress but is owned by essentially a cartel of private banks. “This is a story about how the international financial system was secretly gamed, mostly by central banks — they’re the ones we are talking about,” she explained. “The central bankers have been gaming the system. I would say that this is a power grab.”

The Fed in particular is at the very center of the network and the coverup, Hudes continued, citing a policy and oversight body that includes top government and Fed officials. Central bankers have also been manipulating gold prices, she added, echoing widespread concerns that The New American has documented extensively. Indeed, even the inaccurate World Bank financial statements that Hudes has been trying to expose are linked to the U.S. central bank, she said. 

“The group that we’re talking about from the Zurich study — that’s the Federal Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes explained. “So the Federal Reserve secretly dominated the world economy using secret, interlocking corporate directorates, and terrorizing anybody who managed to figure out that they were having any kind of role, and putting people in very important positions so that they could get a free pass.” ….

The shadowy but immensely powerful Bank for International Settlements serves as “the club of these private central bankers,” Hudes continued ...

Alex Newman, a foreign correspondent for The New American, is currently based in Europe. He can be reached at anewman@thenewamerican.com.

http://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve

Fri, 05/31/2013 - 14:52 | 3614561 GVB
GVB's picture

Think about this.

Without internet all of us would still be wondering what's going on. This is different than the '30 great depression. It's about fractional reserve banking. And central banks doing al they can to preserve the current system. Now everyone knows exactly what's going on, thanks to internet. Just wait. Internet is huge factor in this mess. No person would have obtained this knowledge without internet. It reveals just about...everything!?

Fri, 05/31/2013 - 14:09 | 3614306 q99x2
q99x2's picture

I used to run a pet services business with my ex-wife. I always was good at recognizing things. That dump, the photo of the pooh...anyone want to bet me that it didn't from 110 pound pure bred brown lab?

I know my shit dude.

Fri, 05/31/2013 - 14:18 | 3614371 my wag
my wag's picture

the sun comes out tomorrow....at least that what Annie seyz

 

The 'war on debt' will be won with a 'New Economic Perspective'. Call it 'naked capitalism' or

'monetary sovereignty'. Me, I'll call it 'Modern Monetary Theory' or MMT for short.

 

We shall overcome.

Fri, 05/31/2013 - 14:19 | 3614376 orangegeek
orangegeek's picture

Von Mises - Customer centric.

 

Keynes - Government centric.

 

Krugman - shithead.

Fri, 05/31/2013 - 14:25 | 3614408 zrussell
zrussell's picture

The sheeeeeple will gladly surrender their 401K/IRAs (turned into Treasury-based annuities) to keep the lights on at the White House.

Fri, 05/31/2013 - 14:58 | 3614596 AnAnonymous
AnAnonymous's picture

There is not enough money to meet the levels of military spending, social spending, entitlements, debt service and other commitments.
_____________________________________

'Americans' run a business of extorting the weak, farming the poor.

Guns as a means of coercion matter a lot when you are in that type of business and usually, you make it so that the funding of the means of extortion and farming is provided by the extorted and the farmed.

The only obligations an extorter/farmer know is to extract enough from the farmed/extorted to fund the scheme.

Another propaganda article as regularly provided by 'americans' since debt of their state apparatus does not reflect the capability to extract from the extorted/farmed.

Fri, 05/31/2013 - 15:38 | 3614775 akak
akak's picture

Djee, is your rabid and kneejerk anti-American projectionizing now bleeding over into the Chinese working hours?

Make me laugh.

Welcome to the AnAnalMouse world.

It's a hypocritical world, you'll see.

Fri, 05/31/2013 - 16:27 | 3615029 TheFourthStooge-ing
TheFourthStooge-ing's picture

No kidding...

Burdening a Chinese citizenism citizen's conscience?  Would be a premiere.

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