Guest Post: The Fed Can Only Fail

Tyler Durden's picture

Submitted by Chris Martenson of Peak Prosperity,

The basic predicament we are in is that the current crop of leaders in the halls of monetary and political power do not appear to understand the dimensions of our situation.

The mind-boggling part about all this is that it's not really all that hard to grasp.

Our collective predicament is simply this: Nothing can grow forever.

Sooner or later everything must cease growing or it will exhaust its environs and thereby destroy itself.  The Fed is busy doing everything in its considerable power to get credit (that is, debt) growing again so that we can get back to what they consider to be "normal."

But the problem is -- or the predicament I should more accurately say -- is that the recent past was not normal.  You've probably all seen this next chart.  It shows total debt in the U.S. as a percent of GDP:


Somewhere right around 1980, things really changed and debt began climbing far faster than GDP. And that, right there, is the long and the short of why any attempt to continue the behavior that got us to this point is certain to fail.

It is simply not possible to grow your debts faster than your income forever. However, that's been the practice since 1980; and every current politician and Federal Reserve official developed their opinions about 'how the world works' during the 33 year period between 1980 and 2013.

Put bluntly, they want to get us back on that same track and as soon as possible. The reason?  Because every major power center, be that in DC or Wall Street, tuned their thinking, systems and sense of entitlement during that period. And, frankly, a huge number of financial firms and political careers will melt away if/when that credit expansion finally stops.

And stop it will; that's just a mathematical certainty. It's now extremely doubtful that the Fed or DC will willingly cease the current Herculean efforts towards reviving this flawed practice of borrowing too much, too fast. So we have to expect that it will be some form of financial accident that finally breaks the stranglehold of failed thinking that infects current leadership.

The Math

As a thought experiment, let's explore the math a little bit to see where it leads us. After all, I did just say that a poor end to all this is a "mathematical certainty", so let's test that theory a bit. I think you'll find this both interesting and useful.

To begin, Total Credit Market Debt (TCMD) is a measure of all the various forms of debt in the U.S. That includes corporate, state, federal, and household borrowing.  So student loans are in there, as are auto loans, mortgages, municipal and federal debt. It's pretty much everything debt-related.

What it does not include, though, are any unfunded obligations, entitlements, or other types of liabilities. So the Social Security shortfalls are not in there, nor are the underfunded pensions at the state or corporate levels. TCMD is just debt, plain and simple.

As you can see in this next chart, since 1970 TCMD has been growing exponentially and almost perfectly, too (the R^2 is over 0.99 for you science types):

I've pointed out the tiny little wiggle that happened in 2008 - 2009 which apparently nearly brought down the entire global financial system.  That little deviation was practically too much all on its own. 

Now debts are climbing again, at a quite nice pace. That's mainly due to the Fed monetizing US federal debt just to keep things patched together.

As an aside, based on this chart, we'd expect the Fed not to end their QE efforts until and unless households and corporations once more engage in robust borrowing. The system apparently 'needs' this chart to keep growing exponentially or it risks collapse.

Okay, one could ask: Why can't credit just keep growing? 

Here's where things get a little wonky. But if you'll bear with me, you'll see why I'm nearly 100% certain that the future will not resemble the past.

Let's start in 1980 when credit growth really took off. This period also happens to be the happy time that the Fed is trying to (desperately) recreate.

Between 1980 and 2013 total credit grew by an astonishing 8% per year, compounded.  I say 'astonishing' because anything growing by 8% per year will fully double every 9 years.

So let's run the math experiment as ask what will happen if the Fed is successful and total credit grows for the next 30 years at exactly the same rate it did over the prior 30.  That's all. Nothing fancy, simply the same rate of growth that everybody got accustomed to while they were figuring out 'how the world works.'

What happens to the current $57 trillion in TCMD as it advance it by 8% per year for 30 years?  It mushrooms into a silly number: $573 trillion.  That is, an 8% growth paradigm gives us a tenfold increase in total credit in just thirty years:  

For perspective, the GDP of the entire globe was just $85 trillion in 2012.   Even if we advance global GDP by some hefty number, like 4% per year for the next 30 years, under an 8% growth regime U.S. credit would be twice as large as global GDP in 2043(!)

If that comparison didn't do it for you, then just ask yourself: What exactly would US corporation, households and government borrow more than $500 trillion for over the next 30 years? The total mortgage market is currently $10 trillion, so might the plan include developing an additional 50 more US residential real estate markets?

More seriously, can you think of anything that could support borrowing that much money? I can't.

So perhaps the situation moderates a bit and instead of growing at 8%, credit market debt grows at just half that rate. So what happens if credit just grows by 4% per year? 

That gets us to $185 trillion, or another $128 trillion higher than today -- a more than 3x increase:

Again, What might we borrow (only) $128 trillion for over the next 30 years? 

When I run these numbers I am entirely confident that the rate of growth in debt between 1980 and 2013 will not be recreated between 2013 and 2043. With just one caveat: I've been assuming dollars remain valuable. If dollars were to lose 90% or more of their value (say, perhaps due to our central bank creating too many of them?), then it's entirely possible to achieve any sorts of fantastical numbers one wishes to see.

Think it could never happen?

Conclusion (to Part I)

This is the critical takeaway from all the math above: for the Fed to achieve anything even close to the historical rate of credit growth, the dollar will have to lose a lot of value.  I truly believe this is the Fed's grand plan, if we may call it that, and it has nothing to do with what's best for the people of this land. Instead, it's entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding.

That is, the Fed is beholden to a broken system; not anything noble.

In Part II: The Near Future May See One of The Biggest Wealth Transfers In Human History, we dive fully into the logic why GDP growth is very unlikely to support the rate of credit expansion the Federal Reserve wants (more accurately: needs). And what will happen if it indeed doesn't? A lot of painful, awful things -- but central among them, a currency crisis.

Amidst the ensuing unpleasantness will be an awakening within today's hyper-financialized markets to the huge imbalance now existing between paper claims and ownership of real things. A massive wealth transfer from those with 'paper wealth' (stocks, bonds, dollars) to those owning tangible assets (the productive value of which can't easily be inflated away) will occur -- and quickly, too.

Suggesting the key objective for today's investor is answering: How do I make sure I'm on the right side of that wealth transfer?

Click here to access Part II of this report (free executive summary; enrollment required for full access).

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zorba THE GREEK's picture

Looking around at the jobs market and the increase in foodstamps in the last 5 years,

I would say the Fed has already failed.

markmotive's picture

Got your McJob?

Next up is the fiscal cliff.

Peter Schiff on how to spot the edge of the cliff:

Boris Alatovkrap's picture

Boris on spot edge of cliff... see two crazy lady drive blue 1966 Thunderbird convertible full throttle.

yogy999's picture


Thank you so much for bringing smiles on my face during these horrific time. You are as funny as MillionDollarBonus, (albeight in a different way):-) God Bless you my friend!!


You are always welcome at my home!!


SafelyGraze's picture

Gideon Gono for fed chair

flacon's picture

The more they print the less money there is. QED. Same problem happened in Germany. It dumbfounds the pH Dees but that's what happened. So they print even more and even less money is available. So they print even more and even less is available. So they print enough money until it is worth less than they printed it for, so the people burn money to keep themselves warm. But still there isn't enough... 


Keyens... destrying mankind one dollar at a time until mankind sacrifices itself at the altar of money and is terminated in an epic battle of man vs. money. 


Money wins when there is nobody left alive to use it, then money itself dies. Our goal is to keep at least one male and one female alive... 

AldousHuxley's picture

fed failed when gold prices skyrocket


meaning bunch of PhDs working long hours with the best tools available can't beat simple old bar of shiny metal.

Seer's picture

Their ONLY goal was to prolong the collapse.  While some may view this as being bad, I believe that it was the only thing that the System COULD do else it would have ceased to be The System (TPTB require the System to survive, in which case they're going to do all they can do to keep the game going for as long as they can- but, as Martenson has been pointing out for quite some time now, the game is going to run out).  I'm NOT endorsing any of it, just trying to rationalize why TPTB are doing what they are doing: I do NOT believe that they're wantingly "destroying" the system that has allowed them to ride high; our infrastructure is so HUGE that TPTB have no place to go to escape its fall.

Yeah, there are, like at any other point in time, carpet-baggers, opportunists (hell, I see such people here on ZH).  People do what people do...  But on the whole I believe that most of TPTB are trying to pilot the crashing plane (vs. bailing out and not telling the passengers).  If anyone is to survive I'd hope that the focus would be on the failures of the plane (seek out the engineers*) more than on the pilots, who might have done only a so-so job of crash landing it.

* Some people might believe the engineers to be the originators of the Fed, and while this is clearly PART of the system, it's not the begining of it's bad design.  I'm pretty sure that Martenson would agree here, that the growth paradigm existed way before the Fed was even a thought in anyone's brain.

The Fed is a symptom.  Kill the Fed and you still have the disease.

highly debtful's picture

A thoughtful and interesting post. Thank you for that.

spinone's picture

Excellent post.  I would add one further concept: The dollar is debt saturated.  Most of the people in the US can't or won't assume more debt.  They are already full up, or the last crisis destroyed their collateral.  In a debt based fractional reserve currency like the dollar, if people won't borrow more the currency is finished.  The debts have to be forgiven, but the debts are TPTB assets.  They want to stay rich and keep their assets, so they won't allow a jubilee.  So we are stuck at a point where the Gov has to go into debt to keep the dollar machine going, and the Fed has to purchase the Treas debt issued to keep interest rates low enough to be rolled over ad infinitum.  This is the endgame for the dollar, its just an issue of how long they can keep the monopoly game going once they own all the hotels and properties.

One alternate outcome I see is that the Fed monetizes all TPTB debts and becomes the bad bank, and they pass a jubilee and wind down the Fed (who better to be the patsy than Yellen?).  That way TPTB have assets other than debts, and the people are debt free to borrow again.  This would require a new (and probably less valuable) dollar.  It may be the currency crisis that Martenson is speaking of.

LetThemEatRand's picture

Fuck You BernYellen.

OpenThePodBayDoorHAL's picture

Abu BenBoobie


I can't remember where that's from but I think it was in a movie when I was growing up

americanreality's picture

Yep, Hardware Wars.  Augie Ben Doggie.  Great movie.

Running On Bingo Fuel's picture

MOAR Fiat! Feed ME FED!

NoDebt's picture

So..... buy stocks?  Hey, they're a claim on ownership, right?  Bonds/Debt is just a promise, not ownership.

Oh yeah, and that gold thing.

Frozen IcQb's picture

...and political power do not appear to understand the dimensions of our situation.


They know what's going on but don't give a fuck

NoDebt's picture

Agreed.  Even they couldn't be that blind.  They know.

Nick Jihad's picture

I don't think they know. Look at the stuff Krugman writes - more stimulus is the key to recovery says he, and if it doesn't work, that just means we didn't spend enough.  Look at the talking heads on PBS - "austerity didn't work in Europe, and it won't work here" is what they truly believe. And if you point out that we are following Japan's path, they just say "Japan is doing fine, isn't it?"  No windshield in sight.

Hedgetard55's picture

"This is the critical takeaway from all the math above: for the Fed to achieve anything even close to the historical rate of credit growth, the dollar will have to lose a lot of value.  I truly believe this is the Fed's grand plan, if we may call it that, and it has nothing to do with what's best for the people of this land. Instead, it's entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding."


     You're 4 years late and a trillion dollars short, asshole.

Seer's picture

Martenson has been writing about this for quite a while now (I believe that Crash Course has been out for at least four years now).  That he might be "new" to you, thus your "conclusion" that he's "late," does not make him "late," "asshole."

joego1's picture

I want to own a 100 trillion zimbabwe note. Ebay maybe?

are we there yet's picture

I bet a 1 zimbabwe note is harder to get now.

Zero Point's picture

Heh. Yeah, I might add a couple to my collection of Iraqi Dinar. lol.

I like the cool N's on that note though, it's like the guy that did the KISS logo, did Zimbabwes notes. And what's with the rocks? Representation of the brains of Zimbabwean CBers?

Schacht Mat's picture

The Fed's logic still confounds me.  When American dollar hegemony is lost, the American dollar will significantly devalue, and thus the value of T bills held abroad will similarily erode when redeemed back to foreign currencies, which means that dollar devaluation can diminish the value of monetary debt; however, this debt represents, roughly, only about 10% of the total national liability.  The remaining 90% represents social security and a myriad of medical support programs, which, although denominated in current dollars, actually represent a quantity and quality of service, which means that as the dollar devalues, the cost of these services will necessarily comensurately increase, when measured in these now devalued dollars (this increase will likely be a little less than 1:1, but at 200 trillion current dollars, that piece of the argument is merely a minor distraction).

This means that the vast majority of the nation's liability cannot be inflated away through monetary devaluation, which leads to only one conclusion - there is no moral solution to the problem (plenty of non moral ones - plague, nuclear aggression, outright theft of foreign national assets, etc) and thus, as this cannot continue much longer, it will not continue much longer.  And unfortunately, we, as a nation, are very poorly prepared, both physically and intellectually, for the reality (whether moral or immoral) that is to come. 

socalbeach's picture

Fed purchases of US Treasuries and MBS* effectively (if they aren't undone in the future) retires US debt since the majority of interest gets sent back to the Treasury, and the debt never has to be repaid.  Another way of looking at it is that $1 of Fed monetization acts as $0.9X of revenue to the Treasury.  In addition, Fed purchases of securities lowers interest rates over what they would have been otherwise, saving the Treasury interest expense.  We don't need price inflation for these benefits to be achieved.

Price inflation does help though if that results in higher receipts to the Treasury.  For example, increasing stock prices would increase capital gains taxes, as people sell their stocks.  Lower interest rates, a consequence of Fed bond buying, increases housing prices which also results in increasing revenue to the Treasury as flippers and others sell at a profit.

What about social security? Yes the government had higher expenses due to SS COLA increases of 1.7%.  With total SS expenditures of $800 b / year, that amounts to $13.6 b, or about 5 calendar days of QE.

(* How do Fed purchases of MBS retire US debt?  Because the MBS interest sent back to the Treasury can be used to pay the interest due on debt.)

Seer's picture

And meanwhile, back in the real world...

Production isn't happening.  More revenues aren't being generated.  The basis of the system, growth, is gone.  With growth gone the system DIES.

All that you refer to is virtual shufflings: hell, it's been virtual growth pretty much since 1971.  Such shufflings are meaningless when they have no real binding to the physical world: this is why fiat money is "problematic" (a BIG FAIL).

29.5 hours's picture



"Production isn't happening."

Seer, your point here and elsewhere on this topic seems to be that monetary policy, as destructive and wrong-headed as it may be, is not the key problem: that even if nation-states return to sane monetary regimes, we would still have the underlying problem that all assumptions regarding world economic health and stability depend on growth into perpetuity.

I think I agree--but this makes the situation seem even worse. All countries cannot export their way out of the crisis simultaneously. What is the alternative? Even China, ostensibly non-capitalist, depends entirely on the growth assumption for its own stability and prosperity. If even planned economies depend on growth into the infinite future, there does not appear to be a way out of this slow-motion train wreck.



socalbeach's picture

But revenue is increasing ...


Yes QE is a wealth distribution scheme, or shuffling as you call it, I never said it wasn't.  The goals of the Fed are to fund government and enrich the banks, in that they have been successful so far.  Federal gov't net interest expense over net revenue has been going down from at least 2006 through 2012.  Will update when 2013 figures are available.

ebworthen's picture

Default on the debt obligations.

A little history on previous defaults:

Especially read "The Liberty Bond Default of 1934".

It's been done before, it will be done again.

The Merovingian's picture

'More seriously, can you think of anything that could support borrowing that much money?'

Obamacare ...

Seer's picture

Underneath it all there's a more troubling current/projection, and that's our demographics.  Aging to be more specific.  I'm just going to state the fact: older populations are less "productive" and require more medical resources.  Obamacare or not, we would be facing this reality one way or another...

polo007's picture

According to Macquarie Research:

Banking on Unconventional Monetary Policy


- We analyse the implications of maintaining current unconventional monetary policy (UMP) mechanisms in the major developed economies for some time into 2014.


- Financial markets are now expecting the US Federal Reserve to maintain its current program of QE bond purchases until at least March 2014. At the same time, several other major central banks have recently signalled an intention to maintain highly accommodative monetary policy settings for the foreseeable future. Consequently, the medium-term outlook for global liquidity has shifted and should be seen as supporting the strengthening cyclical upturn in the developed economies.


- Recent actions and comments from the major central banks indicate that unconventional monetary policy (UMP) can be expected to remain a key feature of the global landscape well into 2014. This reflects a combination of factors, many of which have both domestic and global economic dimensions.

- Notwithstanding concerns in some quarters of financial markets that UMP is an unsustainable policy approach, central banks appear to assess the near-term risks of macroeconomic instability as being better managed through the protracted use of extraordinary policy measures.

- Moreover, the complicated nature of exit strategies for the major central banks, including the likelihood of further unsettling capital outflows from some emerging market economies, is leading to an acceptance that UMP will be sustained for longer than originally anticipated.

- We noted previously that the market consensus in respect to the US Fed’s commencement of a wind back in its quantitative easing (QE) asset purchase program has shifted into 2014. Indeed, market expectations have now aligned with our base case of Fed QE tapering commencing at the 18-19 March 2014 FOMC meeting – although the risks are still skewed to an even later date.

- Given the ‘general equilibrium’ spill-over effects of any shift in the stance of US monetary policy, it is not surprising that most of the other major central banks have acquiesced with the financial markets expectation for a protracted deployment of UMP.

- In our view, there are three key macro implications for global investment markets in the extended use of UMP, namely:

- ongoing elevation of investor risk appetite and a focus on ‘capital growth’ driven assets;

- near-term abatement of ‘capital account’ pressures in several key emerging market economies; and

- persistent concerns about competitive exchange rate devaluations and asset price bubbles.

DOGGONE's picture

"... the recent past was not normal."
Damn right.
Look at the first chart here:

Dre4dwolf's picture

See, last time debt got to be this high (as a % of gdp) we had a World War in which we sold goods to the rest of the world (the profits let us pay off our debts and let us become the worlds biggest creditor).


If we have another World War (one that we take no part in) and we let the rest of the world destroy themsevles, we can sit back and get rich again and pay off our debts with war goods.


BUT if we start the next WWar, and we are fighting in it, it will equate to a death sentance for the American economy as we waste resources we do not even have to fight a war.

Squid-puppets a-go-go's picture

problem widjer theory dude. This time around, the rest of the world makes shit for US. So by the time you got your manufacturing industry back up and running any war would be over. no profits for US this time around

29.5 hours's picture



Yes, some economists and historians see incredibly destructive world war as the ultimate Bastiat "broken window."  Eliminating a large proportion of the world's wealth thru war brings a situation (if the world survives) where growth again becomes a central fact that powers world stability. It worked once before, why not try it again, eh?

That end may seem repugnant to our current crop of leaders (scumbags all) but every time they kick the can down the road, we may be getting closer to it.



are we there yet's picture

Peter Shiff summary, my take.... he implies the reset may inflate 50 to 90 percent of fiat value away, and that the thing to watch is bond prices shooting up and the Fed unable to control it with buying their own treasuries. Investors may get ahead of the Fed and flee bonds and flood already overpriced equities, accelerating inflation, pushing up bond interest, starting a cascading feedback the Fed can not contain.

Dre4dwolf's picture

Lol I like how the Zim Dollars have a bootleg pyramid made out of stones.

Its like the cartoon version of illuminati money haha.

Singelguy's picture

Oh, is that what that is. I thought it was a big elephant turd.

q99x2's picture

The problem with the Zimbabwe buck was that they put what looks like a pile of pooh on it. 

We've got the George Wash and the Illuminati on our dollar.

In God We Trust for Chrissakes.

Radical Marijuana's picture

I enjoy Chris Martenson's insights, and have listened to many of his Podcasts. However, like almost all of us, he attempts to remain more optimistic about things than is actually reasonably possible to do, after an adequate effort to be more objective about the magnitude of the underlying problems!

The basics are that the Federal Reserve Board represents the standing ways that Neolithic Civilization has been running away with itself, since it began many thousands of years ago, with agriculture, and slavery. The development of the social pyramid systems, that we still live within, on down from Babylon to now, through all of its migrations, and conquest of almost the whole world, through its kinds of advances systems of organized lies, backed up with organized violence, IS the foundation for all our current problems. Not by coincidence, a lot of the ruling classes appear to believe in some of the most ancient religions (although they do not publicly admit that) and many of the members of the ruling classes subscribe to some sacred books, which, from a practical point of view, are merely historically developed books of rules for how to operate an organized crime gang (while, of course the professional liars doing that have a well-developed system of immaculate hypocrisy to explain and defend what they are doing.)

The Federal Reserve Board manifests the ways that the best organized criminals, the biggest gangsters, the international banksters, were able to systematically apply the methods of organized crime in order to take control over the government of the USA, so that they could legalize their lies, and legalize the violence necessary to back up those lies. Thus, the Federal Reserve Board is simply force backed fraud, which has been accelerating at an exponential rate, for a Century, with a nearly perfect exponential growth of total USA debts since 1971, when the last limitations of that fundamentally fraudulent financial accounting system were divorced from the laws of nature, and thus, enabled it to become what it is now, a global electronic fiat money fraud, backed by nothing except weapons of mass destruction, like atomic bombs.

The history of warfare enabled the War Kings to established the powers of sovereign states, which then were covertly taken over by the Fraud Kings, the central banksters, with the Federal Reserve Board being the biggest of that gang of Fraud Kings. The FED is the expression of some basic social facts. There is a combined money/murder system, because money is measurement backed by murder, and the debt controls depend on the death controls. The FED represents the ways that methods of organized crime could be persistently employed, such as through bribery and intimidation, as well as assassination, so that almost all successful and surviving politicians would end up being puppets for the banksters, (so that systematic implementation of legalized lies, backed by legalized violence, could be achieved.) Meanwhile, the majority of American "citizens" were systematically reduced to being incompetent political idiots, or muppets, that were brainwashed by the mass media, and school systems, which were also covertly taken over by the domination of their funding and control by the banksters ruling classes.

Therefore, the REALITY of American today is that enough Zombie Sheeple, who are manipulated muppets, can be fooled enough, enough of the time, in order to maintain a fake democracy, that is a false front for a runaway fascist plutocracy, building a fascist police state, wherein the greatest achievement of the organized criminals that took control over the USA government was the legalization of the established monetary system based on privatized fiat money, made out of nothing, as debts, which automatically must increase the total indebtedness, since that is the fundamental structure of that system, in which, IF there was no more debt, then there would be no more money.

That is the deeper reality regarding the Federal Reserve Board: it is totally based upon the government being a system of organized crime, covertly controlled by the best organized gang of criminals. As I started this comment, I REPEAT, that once one fully faces those social facts, and the history that created the currently entrenched and established social pyramid systems, we are almost infinitely screwed beyond the ability to image how BAD THAT IS! The whole world is controlled by HUGE LIES, backed up with LOTS OF VIOLENCE. The monetary and taxation systems are the main symbolic way that that dominated and controlled the lives of almost everybody, so that they are forced to live within the runaway DEBT ENGINE, which is operated the Federal Reserve Board in the USA, (while all the national debt engines are supervised by the Bank of International Settlements, which is the King of Kings of FRAUD.)

Not only do we operate within a fundamentally fraudulent financial accounting system, which violates common sense and the laws of nature, but which nevertheless was able to be backed up with coercion, with systematic reinforcements, in the form of patterns of social rewards and punishments, that almost everyone has been conditioned to believe in the biggest bullies' bullshit social stories, or, at least, required to accept, if not adopt them, due to the constant enforcement of legalized lies, with legalized violence. However, since that force can never make those frauds be anything else than fundamentally fraudulent, the entire society that operates itself through the established systems of HUGE LIES, necessarily becomes more and more INSANE.

The primary reasons why things are WAY WORSE than intelligent and well-informed people like Chris Martenson fully face is that they are not consistent enough to embrace that MONEY IS MEASUREMENT BACKED BY MURDER, AND IT CAN NOT BE ANYTHING ELSE. Therefore, they keep on hoping that the people who have been selected and trained to operate as the best professional liars, and immaculate hypocrites, within the well-established and entrenched social pyramids systems, BASED ON legalized lies, backed by legalized violence, are miraculously going to go through sufficiently profound paradigm shifts to suddenly recognize the utter insanity of the runaway fascist plutocracy juggernaut that they they are driving, in ways that are turning more and more people into its road kill, while that runaway debt engine machine itself is going to hit a wall, and then bounce off a cliff.

The ruling classes have been both genetically and culturally selected for many thousands of years to be able to maintain their kind of special deliberate ignorance, as were the people they ruled over. They are easily able to ignore any evidence or logical arguments which would lead them to any conclusions that they do not like. Meanwhile, their established systems ARE well-prepared to continue to employ legalized violence to back up their established legalized lies, and thereby, keep the entire society growing upon the basis of forced backed frauds, despite the fact that those frauds are FALSE, since they can still be backed up with force, and doing that for generation after generation created the well-established social habits, which enable the FED, et alia, to continue to function. Therefore, the entire social system automatically becomes increasingly insane, but there are NO practical solutions to those problems.

It is especially the case that there are no practical political solutions because almost nobody is willing and able to embrace the degree of paradigm shifts that they would have to go through, in order to understand just how far off track Neolithic Civilization has gone, after millennia of being able to build social systems based on lies, backed by violence, in the form of one state religion after another, with the current state religion being our faith-based monetary system, enforced by the taxation and legal tender laws, to become FINANCIAL FRAUD, BACKED BY FORCE, within which the FED is the leading player in the USA, as well as globally.

Generally speaking, the biggest bullies' bullshit social stories dominate every aspect of our world view, from our basic coordinate systems, to our chronology, and so on and so forth. We understand the science of steam engines BACKWARDS, the same as we understand the operation of the debt engines BACKWARDS. Again, that is WHY our real problems almost infinitely worse than people like Chris Martenson are able and willing to fully face. Since the debt controls are backed by the death controls, there are no other solutions to the debt slavery systems generating numbers which are so NUTS that they have become debt insanities, than those solutions to be found in changing the death control systems, which will probably become death control insanities, like more genocidal wars, along with democidal martial law. Furthermore, there are NO genuine solutions to these problems than to develop better death controls, operating better systems of organized crime, (which is what it would really mean to have any better government.)

Although it has always been the case, since Neolithic Civilization began, for several decades it has become painfully OBVIOUS that almost everything to do with the human population and activities were on exponential growth curves, which were overshooting towards collapsing into chaos. However, the established systems were based upon triumphant force backed frauds, which were adapted to continue to operate through deliberate ignorance. Therefore, nothing within those established systems is effectively able to fix its own runaway insanities. The basic human ecology/political economy is operated by the ruling classes, Vicious Wolves, employing Domesticated Dogs, to herd the masses of Zombie Sheeple, despite the controlled opposition of a few Black Sheep, who protest that, by bleating their morality that we should all be better sheep, which is the morality that the Zombie Sheeple were originally taught to bleat in the first place by the Vicious Wolves in sheep's clothing.

The ruling classes are more and more obviously promoting debt slavery, backed by wars based on deceits, which are spinning out of control towards extremely genocidal wars, along with democidal martial law. However, the ruling classes excel at denying that, while their controlled opposition promoted the same old false fundamental dichotomies, and related sets of impossible ideals, as somehow being the "solutions" despite the certainity that those impossible ideals will continue to make the opposite happen in the real world, as they always have before for Centuries and millennia. Therefore, NOT ONLY DO "the current crop of leaders in the halls of monetary and political power not appear to understand the dimensions of our situation" BUT ALSO, people like Chris Martenson, as well as most of the other reactionary revolutionaries whose writings get posted on Zero Hedge, DO NOT APPEAR TO EITHER!

Indeed, those who attempt to be much more serious about continuing to be consistent with their deeper discoveries with respect to the real social facts, and the real environmental problems, often end up left with nothing but, perhaps, a macabre sense of humor to laugh at the magnitude of the absurd evil which Neolithic Civilization has manifested. The FED is simply the runaway exponential growth of systems of legalized lies, backed by legalized violence, becoming more blatantly insane, but which therefore, is too terminally insane for society to be able to recover, since the only theoretical solutions would be more radical truth, which can not actually operate successfully, nor even barely survive, within the context where EVERYTHING that almost everybody thinks, and the very language that they use to think with, is the result of the historical triumphs of the biggest bullies' bullshit dominating civilization, from the depths of the philosophy of science, on up to the pinnacles of the superstructure of the established money/murder systems, which results in almost all of us thinking about everything BACKWARDS, in almost every possible way, as a reflection in the Bizarro Mirror World, that the FED is based on force backed fraud, through privatized public powers, by which means that parasite is killing its host, as those predators degenerate, since they were too successful in driving their prey to degenerate.

Any intelligent individual can look at the mathematics of the exponential growth of debt slavery, becoming numbers which are debt insanity, and know that there is a serious problem with that surreal triumph of mathemagical thinking! However, there are no practical solutions, since almost nobody can agree upon what those solutions should be, while the current ruling classes are not good any anything, except continuing to back up their dishonesty with violence, which drives us all on a tragic trajectory, for which I have no respite, other than to cultivate my macabre sense of humor, to be bemused by the awesome magnitude of the absurd evils which dominate human behaviors.

Kirk2NCC1701's picture

+1 for insight. Some constructive feedback: Needs trimming down for more conciseness and remove repetition.

Seer's picture

RM, I'd like to thank you for being here, I think that we need more people who can actually THINK (rather than sling arrows).

I believe that the "game" is set based on us swallowing the premise of perpetual growth.  It's this notion -THE BIGGEST LIE- that everything rests upon.  As Derrick Jensen advises: "ALWAYS question the premise."  The "trick" is to, as Jensen puts it, "blow the premise by you" such that you sign right up to what they want you to sign up for.

IMO violence resides in the quest for required resources.  No matter, humans HAVE to engage in violence on one level or another: kill a plant or animal for sustenance.  The question, however, is whether humans have to engage in violence between themselves, and if so, why.  The first part of this question is tough to answer; I figure that coming at it by first answering "why," as in "why would humans engage in violence against one another" as being an easier path for answering the first part.

Most certainly there are "defective" humans, ones like a Jeffery Dahmer, whom appear to violate the norms of nature, but on the whole humans are NOT pre-programmed for violence against ourselves (kind of hard to achieve 7+ billion of us if that were the case).

TPTB and their continued systems are the ones that require human sacrifices for themselves to survive.  This is pretty much as you state.  So...

The violence of humans on humans occurs as sacrifices to the "leaders" and "systems."  The "leaders" and "systems" BOTH require growth in order to survive.  If there is any single point or message which is hammered more than the need for "growth" I do not know of it.

I therefore believe that as long as we buy into the BIG LIE of perpetual growth we ensure that we have "leaders" and "systems" predicated on violence.  That is, I believe that it's the PREMISE of the need for perpetual growth that enables the "leaders" and "systems" to orchestrate violence and oppression.

Even IF there were no such recognized systems or leaders, if humans populations continued to grow it could only come to some point where there would be a struggle over resources.  It is for this reason that I believe that the issue of growth is more central to the "problem."  I believe that the tricksters spotted the loop-hole and have found a way to herd the sheep... the "instructions" were to: "go forth and multiply."  The premise that was blown by us was that we could do this forever.  And maybe this was always the "test;" clearly if not from some omnipotent being, then a test we have to manage for our own sake.  Religious texts and philosophical writings all talk about dealing with issues of morality; perhaps no greater morality question exists than that of when it can be viewed as being acceptable to take the life of another human being.  Our "leaders" and "systems" must come up with the reasons for us as we encounter ever-increasing needs for more and more resources.  If they (the "leaders" and "systems") can get us to kill then you can pretty much bet that the window is opened for morality to fly out of.

So, we've all managed to accept "42" as our "answer," though, as in that fictional work by Douglas Adams' Hitchhiker's Guide to the Galaxy has it, the QUESTION wasn't known.  Our quest has been "42."  The "leaders" and "systems" have all managed to tie us to this most idiodic of premises, without, of course, us asking "what is the question?"  So, as we run toward "42" we can be expected to do just about anything, with that "anything" best serving the "leaders" (operating under their "systems").  Would we, however, if not for such "leaders" and "systems," end up at this point anyway, like the Infinite Monkey Theorem suggests, come up with "42?"  Again, we're not questioning the premise, we're failing to ask the "question."

Radical Marijuana's picture

Thanks, Seer, although I would also agree with Kirk2NCC1701, that my writing could use better editing. (Hah! Whenever I try that, it usually ends up being worse, by getting longer, rather than shorter.)

My point is that death controls are central to human ecology. However, the real history of the murder systems manifested through warfare, where success depended upon deceit, backed by destruction. THERE MUST BE SOME SYSTEM OF HUMAN ECOLOGY. However, ours operates through militarism based upon the maximum possible deceits, which evolved over thousands of years to make and maintain a monetary system based upon the maximum possible frauds. Our real human ecology consists of matching bookends of the ruling classes, and the ruled, BOTH of whom operate within the same systems of huge lies. There IS, and MUST BE, some human murder systems, central to human ecology, and that sustains the monetary system central to political economy. However, due to the way that human energy systems actually operated, those most successful ones evolved to express the maximum possible lies about themselves, throughout almost everybody operating within those systems.

Of course, Seer, I agree with your statement that: "Religious texts and philosophical writings all talk about dealing with issues of morality; perhaps no greater morality question exists than that of when it can be viewed as being acceptable to take the life of another human being." THE PROBLEM is that nobody guards the guardians, but rather, it is never about who abstractly should, but rather who actually DOES. That is where the real history of warfare resulted in what the oldest book on the Art of War says, namely, success in war is based on deceits, and spies are the most important soldiers. That went on for thousands of years, to create sovereign states, which were controlled by those who continued to be the best at deceits, and operating covertly. That explains why the Federal Reserve Board exists, and how it truly operates.

That is why I say that the only genuine solutions MUST be better organized crime, operating better death controls, to sustain better debt controls, because no other set of solutions actually addresses the real nature of the problems. People who propose realizing impossible ideals (such as present in all the world's dominant religions and ideologies) are spouting bullshit, which actually always backfire. Zero Hedge articles are usually written by those kinds of classic reactionary revolutionaries, who analyze the problems well enough, but then propose "solutions" which are based upon false fundamental dichotomies, and their related impossible ideals.

OF COURSE, "no greater morality question exists than that of when it can be viewed as being acceptable to take the life of another human being." Since money is measurement backed by murder, the almost totally abject failure to answer the death control questions better means that the money questions run away into realms of insanely triumphant frauds, as demonstrated by the ways that the Federal Reserve Board actually operates.

SunRise's picture

RM:  I've just got to know - Did you inhale before and/or after this radical insight?

29.5 hours's picture



"reactionary revolutionaries whose writings get posted on Zero Hedge"

So, we are all going to die? We are not getting off this planet alive?

Anyone see any shred of optimism or solidarity with the human condition in that verbiage? I confess to failure.