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Dylan Grice: "There Is A Widespread Perception That Something Is Very Wrong"

Tyler Durden's picture




 

Dylan Grice lets loose with his latest piece "The Language Of Inflation":

We’ve recently come to the conclusion that there seems to be a widespread misunderstanding of what "capital" is. We happened to stumble across a fabulous book called Talent is Overrated (no sarcastic emails on why we were so attracted to such a title, please) written by the well-regarded Forbes journalist Geoff Colvin. To be clear upfront, is an excellent book which we learned a lot from. But consider the following extract (our emphasis):

 

For roughly five hundred years—from the explosion of commerce and wealth that accompanied the Renaissance until the late twentieth century— the scarce resource in business was financial capital. If you had it, you had the means to create more wealth, and if you didn’t, you didn’t. That world is now gone. Today, in a change that is historically quite sudden, financial capital is abundant. The scarce resource is no longer money...

 

“Financial capital” indeed. We found it striking that Mr. Colvin, a distinguished journalist of a distinguished business magazine should use the  concepts of capital and credit completely interchangeably. Yet this is a fundamental error of thought. Capital is not money. One is scarce, the other is in infinite. And we might not have thought anything of this sloppy language had we not been talking to an economist a few days earlier who feared for the future of euro. The situation remained grave, he said, and there was surely no alternative than for the ECB eventually to “print more capital”…

 

What he meant, we think, was printing more money. But it’s not what he said. He had confused money with capital as Mr. Colvin did in his book.

 

Like the Zuni tribes struggling to deal with the difference between yellow and orange without sufficient linguistic precision, we face the same problem in our financial system. As stock markets blink green on more QE supposedly making us all more wealthy, the developed world is saving less than it has at any time since WWII. And as central banks are conjuring up ever more liquidity, more thoughtful observers scratch their heads over the lack of collateral in the system. Of course, the problem is solvency, not liquidity. Capital comes from savings, and the policy of cheap credit with its inflation of time preference has encouraged spending, not saving. Scarce capital is growing ever scarcer.

 

One day, the price of capital will reflect its underlying scarcity, because one day it must. But in the meantime we think very carefully about the capital requirements of the businesses we own, growing increasingly wary of those which depend on artificially cheap “financial capital” for their survival. We note in passing that physical gold bullion is the oldest and purest capital there is…

 

What is the moral of this story for the steward of capital? Success in the long run requires that thought and action be fully independent from the false ideas of the herd. Yet today’s language of inflation embeds so many of these false ideas that the full rottenness of what passes for financial thinking today is obscured. One increasingly reads of capital stewards complaining that things seem more difficult today. We think it’s because they are. We are also increasingly mindful of conversations with friends, family and colleagues that reveal a widespread perception that  something is very wrong, though people can’t quite put their finger on what it is. As we have just argued, we think the answer is that the inflation of credit has driven an inflation of asset prices, which has driven an inflation of future expectations, which has driven an inflation of time preference… and that while the consequences of these various inflations are profound, the new language of ininflation which it has spawned is shallow. Therefore, not only is there insufficient capital to ensure future prosperity and insufficient realism to deal with the future this implies, there is insufficient linguistic precision for most people to articulate the problem let alone understand it. And when language itself becomes so grotesquely distorted, how does one go about substituting the customers’ unattainable hopes and expectations of never-ending growth with the need for principled and honest action?

Read the full note by Dylan Grice, no longer at SocGen but at Edelweiss Holdings, below:

 

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Mon, 11/04/2013 - 11:26 | 4119330 LawsofPhysics
LawsofPhysics's picture

Damn your "lying eyes" Dylan!!!

Mon, 11/04/2013 - 11:31 | 4119338 camaro68ss
camaro68ss's picture

Spreading damming lies! I’m reporting you to the minister of truth. Off to a FEMA camp for you where you will be reeducated.

Mon, 11/04/2013 - 11:52 | 4119377 Stackers
Stackers's picture

Capital is not money. One is scarce, the other is in infinite.

 

Better way to say that is "Money is not currency or credit. One is scare, the other is infinite"

Mon, 11/04/2013 - 12:18 | 4119434 spine001
spine001's picture

The correlation between the weekly (end Wed) values of the S&P500 and the total balance sheet of the Federal Reserve went from -0.66 to +0.93 for the periods pre and post QE, starting in January 2007, when I first have accurate balance sheet data.

If anybody says anything even close to: "the market increase has not been caused by the FED QE", they are lying their butts off.

Correlation is not causation, but when a change in behaviour creates a clear change in correlation, like changing the slope sign!!!! and magnitude with a p value of less than 0.0000001. The proof of lack of causation is on the other side of the table. Meaning that those who say it is not the cause, must prove it, and not the reverse! If anybody interested in the data sources or the math, send me a personal request and I will mail the spreadsheet with the links to the data sources (more than what we get in ZH).

Edit: Note:
I didn't delve into the meaning of the causal association between the FED balance sheet and the changes in the stock market, but it is clear from the historical graph that when the FED balance sheet stops growing the market subsequently crashes. So, the point is, if the FED balance sheet is not going to keep on growing at the same rate, meaning QE is an extraordinary policy, an exception, then the market is in a huge and clear bubble, if the FED balance sheet is here to stay and its growth rate is maintained and/or increased (read hyperinflation at the end of the tunnel, with deflation on the way), then the market will continue on its current trajectory, but there is NO evidence in the data that even suggests there is an intermediate stability point.

Mon, 11/04/2013 - 13:10 | 4119598 Shocker
Shocker's picture

Something is very wrong for sure.

Layoff / Closing List - http://www.dailyjobcuts.com

.

Mon, 11/04/2013 - 14:45 | 4119820 Race Car Driver
Race Car Driver's picture

> Something is very wrong for sure.

Every month, the packages at the grocery store shrink in size and the price goes up.

This trend should reverse soon. I mean, how much smaller and more expensive can things get before folks start to notice?

 

Mon, 11/04/2013 - 12:22 | 4119443 kurzdump
kurzdump's picture

Money is whatever the government forces us to pay the taxes with. Everything else is either irrelevant nature or (real/virtual) property / legal claim / human workforce that can be traded for money.

Today we pay taxes with green paper or the computer generated equivalents of those slips of paper.

If the government forces us to pay taxes with shit, then shit will be money.

Mon, 11/04/2013 - 13:31 | 4119641 redpill
redpill's picture

I'd slightly disagree.  What you are calling money is actually currency.  Money is any third-party form of exchange broadly recognized as having value.  That may apply to currency, and it may not.

Mon, 11/04/2013 - 14:13 | 4119749 alangreedspank
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In before his retort: "typical neo-liberal thinking!"

Mon, 11/04/2013 - 14:24 | 4119772 chumbawamba
chumbawamba's picture

Money is the source of energy; currency conducts its flow.

I am Chumbawamba.

Mon, 11/04/2013 - 14:42 | 4119810 dontgoforit
dontgoforit's picture

Rhetoric.  Just remember that however you define, currency, money, credit or whatever else, microwaves cook from the inside out and we are getting nuked.

Mon, 11/04/2013 - 15:45 | 4120014 graspAU
graspAU's picture

“The value of goods are expressed in money, while the value of money is expressed in goods. Money and goods are clearly not the same things, but are exactly opposite things. Goods are wealth which you have, while money is a claim on wealth which you do not have. Goods are an asset; Money is a debt. If goods are wealth; money is clearly not wealth, it is negative wealth, maybe even anti-wealth.”
– Quigley, Tragedy and Hope, pg. 44

Mon, 11/04/2013 - 15:57 | 4120050 bagehot99
bagehot99's picture

Isn't capital more like collateral? An asset? Something with real value?

Printed or electronically-created dollar bills are just sheets of paper. We're passing them around and treating them as though they have real value, but in reality they have much less value every day. Some would argue they have zero value. I might too.

It's going to be tough once this reality bites. 

Mon, 11/04/2013 - 11:30 | 4119331 Trimmed Hedge
Trimmed Hedge's picture

tl;dr

Cliff Notes?

Mon, 11/04/2013 - 11:52 | 4119379 Stackers
Stackers's picture

People no longer understand or confuse the difference between - money (what they are are calling capital), currency, and credit.

Mon, 11/04/2013 - 12:24 | 4119425 Running On Bing...
Running On Bingo Fuel's picture

Same. Buy gold, sell equities, buy bitcoin, love israel. Whatever, too many mixed messaged.

Over.

Mon, 11/04/2013 - 11:30 | 4119332 y3maxx
y3maxx's picture

Once and for all, Gerald Celente Calls Out TPTB. Lets hope no harm comes to this fine Spokesperson on American Political Corruption. Go get'em Gerald... https://www.youtube.com/watch?v=aEroBD7fE78&list=PLB1A898E94A412326

Mon, 11/04/2013 - 11:31 | 4119334 Seize Mars
Seize Mars's picture

Dylan Grice is hot. HOTtt!!!!

Mon, 11/04/2013 - 12:29 | 4119483 Herd Redirectio...
Herd Redirection Committee's picture

Are we thinking of the same Ginger?

Mon, 11/04/2013 - 11:33 | 4119341 Bearwagon
Bearwagon's picture

Yeah! Of course this is right. But we can ignore it. And not only that, we are even able to ignore the real consequences for some time longer. My supply lines still hold, i am just about to open another bottle of beer, there's gas and oil to warm my ass, and water for the grog. Fear not. All is well. Still ...

Mon, 11/04/2013 - 11:34 | 4119346 hoist the bs flag
hoist the bs flag's picture

Test...

Mon, 11/04/2013 - 11:50 | 4119374 Trimmed Hedge
Trimmed Hedge's picture

Do never test..

Mon, 11/04/2013 - 11:58 | 4119386 GetZeeGold
GetZeeGold's picture

 

 

In case you're wondering...red is bad.

 

So when does the ACA pep rally start?

Mon, 11/04/2013 - 12:04 | 4119420 Dr. Engali
Dr. Engali's picture

Welcome to fight club. The 8th rule of fight club is: If this is your first night at FIGHT CLUB, you HAVE to fight.....bitch!

Mon, 11/04/2013 - 12:07 | 4119431 Parisnights
Parisnights's picture

Cliffhanger

Mon, 11/04/2013 - 11:33 | 4119347 Dr. Engali
Dr. Engali's picture

A wide spreadperception that something is very wrong? Could it be the fact that debt is not money? Or could it be the fact that infinite growth on an finite planet is not a good plan for success? How about the growing police state that threatens what little freedoms we have left? These are just the tip of the iceburg. Yes Dylan, something is very wrong.

Mon, 11/04/2013 - 11:44 | 4119365 kito
kito's picture

doc, im IMing you. 

Mon, 11/04/2013 - 11:46 | 4119366 GeorgeHayduke
GeorgeHayduke's picture

You're right on the money Dr.

My only question is why has it taken so long for people to just now start perceiving that something is wrong. I perceived that something was wrong in the early 1990's while studying earth sciences, economic and complex systems in my undergrad college days and concluding back then that endless economic growth was a myth. That myth has been exposed and they now use financial accounting tricks to keep the mathematically challenged (a large segment of the population) from perceiving that reality.

Your comment about the growing police state is right on the money too. The perplexing part of that reality is how much the general public praises and worships the police/military these days. Sure, they have a crappy, tough job but it's not the only crappy, tough job. Also, it's one of those jobs where the leaders/owners create situations that again and again emphasize the "need" for an ever growing military/police force.

Mon, 11/04/2013 - 11:58 | 4119398 Dr. Engali
Dr. Engali's picture

The thing that amazes me is how easily the isheeple on both sides of the political spectrum readily accepts the police state. It's become obvious that the majority of people just don't want to think or take care of themselves.

Mon, 11/04/2013 - 12:03 | 4119416 LetThemEatRand
LetThemEatRand's picture

It's disgusting.  I'd say 80% of the American population has no fundamental problem with it even as they wave flags and talk about freedom.  

Mon, 11/04/2013 - 12:22 | 4119467 Induced Coma
Induced Coma's picture

I have a genuine interest in understanding how people on social assistance see themselves and their personal accountability and responsibility. Has anyone seen honest, unbiased interviews or documentaries on this kind of thing? 

 

IC

Mon, 11/04/2013 - 12:27 | 4119480 LetThemEatRand
LetThemEatRand's picture

Here's one:  http://www.youtube.com/watch?v=o64Fz-KW1Dk

In all seriousness, though, I don't think you can generalize.  A large percentage on assistance are just moochers who see it as an entitlement.  How large?  I don't think anyone really knows.  The ones who are moochers tend to stand out more than the people who really need the help. 

Mon, 11/04/2013 - 13:27 | 4119622 TwoHoot
TwoHoot's picture

Assuming you are serious, I can tell you how they see themselves from personal observation.

There ae two views depending on the individual:

1) The "social assistance" is a legitimate paycheck for being poor or "disabled". They even call the day the money comes "payday" just like they actually had a job. They actually work at being pitiful and brag about their advancment in the strange world of being poor and disabled. The attitude is almost like it is dirty work but somebody has to do it.

As a humorous aside, one of this class was complaining to me that his disability (drug addiction) did not pay enough to live. I suggested he gouge out his eyes with a spoon since blindness paid a lot better. He seriously considered it as a possible way to "get a raise" but thought the spoon deal might be too painful and permanent. He started researching ways to induce temporary blindness to get signed up but never followed through. He still lives in Sect 8 housing, has a SS Electric Chariot to get around town, has "home health" service to clean his apartment, do his laundry and cook for him at no cost. All he does is smoke dope and watch TV or Netflix.

2) They are giving away money and I'd be a fool not to take it. This class is pretty sharp and ambitious in that they know how to game the system, work off the books and qualify for every possible source of income available. They are definitely not lazy or stupid. Their trick is to lie to the government about everything which they see as a fair response to the fact that the government lies to them about everything. They may have stable homes in fact but divorce or never marry so they can claim hardship as single parents. Their attitude is if the government is stupid enough to offer it, they are smart enough to take it. Their basic living is paid for by the government and they accumulate capital and property on the side. They dress well, live in nice homes and drive expensive cars.

There is actually a third class that is simply stupid and consistently makes bad life decisions. The usually just fall into the "social assistance" system throught the court or health care system since they keep turning up at the jail and the ER. They wind up on "welfare" because nobody knows what to do with them. They can't just live in jail or the hospital and it takes a really hard heart to just watch them starve on the street. Even with social assistance, they usually get ripped off by the street predators and go back to jail or the ER. I'd say they amount to less than 2% of the "social assistance".

How do I know? I am retired and do a lot of volunteer work.

Mon, 11/04/2013 - 13:50 | 4119680 Induced Coma
Induced Coma's picture

I am serious, and would like to understand the "view of the world" from the perspective of a "taker". Now, its not as if I dont think there are legitimate cases where social assistance is warranted, but of those that might be gaming/taking a paycheck/etc - I'd like to know how they think they would move forward if the dole stopped. Would they just lay in their bed and wait for the end to come? Are they going to try and quickly retool themselves into self-sustaining farmers? Are they going to "take it to the streets"? Surely even the most dim-witted understand that if the government ain't paying, violence in the streets isn't likely to pay off.

 

Or is it strange of me to think that people "plan" for these kinds of life changes...

 

IC

Mon, 11/04/2013 - 13:57 | 4119704 El Vaquero
El Vaquero's picture

Desperate people tend to not be rational.  Even intelligent people will do some terribly stupid things when they are irrational.  Those who are not planning for these kinds of changes, or at least considering the possibility that they will occur, are going to become desperate when the changes come. 

Mon, 11/04/2013 - 14:07 | 4119733 TwoHoot
TwoHoot's picture

My GUESS is that group 1) would relish the opportunity to become even more pitiful. It is the way they make a living. For the most part, I think they will do nothing and starve to death. They sure won't take to the streets are stay focused long enough to grow a crop.

My GUESS is that group 2) will adapt very quickly to any changing situation. They will "take to the streets" or become "subsistance farmers" or run a black market or sell protection or steal what they want in a heartbeat depending on what they see as their best self interest at the time.

The most dim-witted won't even know the dole has stopped. They will just keep going to jail and the ER where someone will take care of them - a little bit, sometimes, maybe.

All just my opinion based on observation.

Mon, 11/04/2013 - 14:49 | 4119831 dontgoforit
dontgoforit's picture

Group 2 sounds like the typical politician.

Mon, 11/04/2013 - 14:23 | 4119763 GeorgeHayduke
GeorgeHayduke's picture

Just remember, to the owners of this world you are a useless eater. Maybe they sit and seriously try to understand your world view. Likely they don't as they don't care what any of the useless eaters think about.

Maybe your own perspective is skewed by the fact that you are so immersed in the system you cannot comprehend anything but the system and the way it should operate.

First off in any society there are people who are legitimately disabled or unable to work. I realize that the more dog-eat-dog free market types who view everyone and everything from a profit perspective see these folks as a burden on productivity and should live in squalor or be supported only by their families, charity, ect... However, even though greed is the sole emotional focus of so many economically minded folks, not everyone sees the world that way so those other human emotions kick in and people offer to help those in need.

From my observations over the years this system is set up create a certain number of unemployed, unemployable and throw away people. They are part of the outcome of a system based on winner takes all, screw everyone else. They have to be the examples for the herd to be afraid of becoming.

In a system of essentially all-encompassing private property there is no escape for the dropouts. Why do you think the US government had to kill off all of the native Americans? They couldn't have people living outside the system in a self supportive manner that provided an outlet for people who got tired of chasing their carrot on a stick.

Expand your research and understanding on the topic. Your head is stuck in one mode of thinking without much thought or consideration as to the system itself, alternatives to it, etc. Or, just keep questioning again and again and getting the same non-answers.

 

Mon, 11/04/2013 - 14:47 | 4119824 Induced Coma
Induced Coma's picture

Appreciate the comments. My thirst for knowledge and perspective on this topic is actually moreso to understand how to predict how the crowds will behave when the time comes.  Also, how to motivate them to change their focus/agression if it serves to do so.  I personally like the idea of establishing a cohesive community where trade/barter of useful things is the normal economy, but everyone has their own personal responsibility for their survival.  No one is "owed" or feels a "right" to assistance from anyone else.

 

Unfortunately the idea of self reliance and responsibility is lost on most people it seems.

 

IC

Mon, 11/04/2013 - 15:16 | 4119919 Herd Redirectio...
Herd Redirection Committee's picture

You are completely ignoring the corporate 'takers'.  The MIC, the 'defense' industry, Big Pharma, Big Ag, wtf does the Dept of Energy do?  The Dept of Education? 

People complain about how much SS costs, when we should be freaking out that SS is set up as a ponzi!  As a scam!  Of course people feel entitled to SS, they paid into it their entire working life (the majority, that is).  But that money was SPENT as soon as it was remitted.  That was the real crime, not 'how much SS costs'.

Mon, 11/04/2013 - 16:25 | 4120143 Induced Coma
Induced Coma's picture

Not really ignoring them in this context, per say - but definitely not addressing.  These are all real issues.  But at the local level, when shit hits the fan, I'm concerned with how to deal with the most prevalent threats. All the groups you mention will probably put up a good fight going down with the titanic, but they are (in my opinion) a minority threat compared to the population at large.  Many of whom (whether they are on social assistance or not) are going to be up shit creek without a paddle.  How will this group proceed when their world paradigm comes crashing down.  How does anyone react when all the things they hold as truths are destroyed? Denial, Anger, Fear, etc... add those into the crowd (mob) mentality and you have a dangerous mix.

Of course, none of this is news to the clued in crowd on the 0hedge.

What I'm trying to understand is how to manage this threat. Can you appeal to a sense of personal responsibility to this group? Probably not, as a poster above said - these will not be rational people. Will this group be self-destroying after some time? If you could "hole-up" for 6 weeks and come out, how many would be left?

 

IC

Mon, 11/04/2013 - 23:07 | 4121301 FredFlintstone
FredFlintstone's picture

I tend to think that the folks who are on the lower end of the socioeconomic scale will be less effected than the middle and upper middle classes. I have read that the people hardest hit from an emotional standpoint in places like Greece are middle aged men who have had some success in life. Once they lose what they have worked so hard for, they become lost.

Regards,

Fred

 

Tue, 11/05/2013 - 01:02 | 4121741 kareninca
kareninca's picture

If things get bad enough, there will be vanishingly little difference between the situation of former benefits receivers, and people who are presently highly functional.  THAT is scary.

Yes, you can plan on defending yourself against some moron who has decided to be a professional state-supported drug addict, but are you going to be able to defend yourself agasint the attorney/engineer/plumber next door?

People who presently are highly functional and high earning, are successful often because they are aggressive and selfish (for good or ill) and will get what they need.  A lot of them are pretty much psycholpaths, on a small scale.  Worry about what they will do; don't just assume that because they follow nicey-nicey social norms now, that it will suit them to do so if times get tough.

Mon, 11/04/2013 - 16:09 | 4120083 aerojet
aerojet's picture

I think group #2 was explained quite well already.  There are people who will game any system and try to get more out of it than they have to put into it.  A free market system (LOL) can sustain a certain amount of free-riders.  The system fails when it gets too many.

Mon, 11/04/2013 - 21:02 | 4120862 TwoHoot
TwoHoot's picture

" ...if the government ain't paying, violence in the streets isn't likely to pay off."

Mugging pays well but carries some risk of getting shot or beaten. Plus, jail time is long if you get caught. Breaking into cars and shoplifitng are safer and just as profitable with short suspended sentences for even repeat offenders. The second group knows that.

My plans if things go terribly wrong (SHTF), is to stay home and be watchful (defensive) for about a month. By then, the dangerous 2nd group should be starved or gone to greener pastures or relocated by the National Guard and police.

The second group doesn't plan, they react. If the first reaction doesn't work, then they will try something else immediately. Violence in the streets and looting stores would seem like a good plan to them. Stores closed? No money? No problem. Plus it might be a hell-raising good time with plenty of free booze and sex afterward.

Mon, 11/04/2013 - 15:22 | 4119941 Greater Fool Theory
Greater Fool Theory's picture

You suggested he gouge out his eyes and he considered it.  Wow.

I have heard stories of beggars in Thailand being controlled by organized criminals who cut off limbs of the beggars to make them more pitiable.  Hey, maybe some forward-thinking US thugs could make a business out of this idea.  Cut off one of your limbs for a share of your public assistance loot.  

Sigh.

Mon, 11/04/2013 - 23:08 | 4121313 FredFlintstone
FredFlintstone's picture

Slumdog millionaire style?

Mon, 11/04/2013 - 19:13 | 4120596 Notarocketscientist
Notarocketscientist's picture

You forgot to mention the 4th category - these are the bankers - they understand that the taxpayer is there to pay their multi-million dollar bonuses. 

They have learned that the way to do business is to take other peoples' money - bet HUGE on risky plays - when it all goes right they enrich themselves - when it all goes wrong they call up one of their boys in gov't (e.g. Hank Paulson) and tell him they need to be bailed out (to make sure they continue to get mega bonuses)

The government - which they own through campaign contributions - quickly responds with bail outs + hundreds of billions of new money at ZIRP - which they then take and 'invest' in more hugely risky plays ....  etc etc etc...

If I were some punk with a sprained ankle - and I saw this shit - I'd fucking well be milking this cow too - why the fuck should I be supporting these welfare banker cocksuckers?  Fuck them - I want my piece of the action too.

It starts at the top my friend

 

 

Mon, 11/04/2013 - 13:18 | 4119618 emersonreturn
emersonreturn's picture

watched the first two versions of The Prisoner last night.  i was a kid when it first aired and sensed its brilliance but couldn't fully digest its accurate vision...the sheeple cheering waving their umbrellas, exactly so.    

Mon, 11/04/2013 - 13:56 | 4119703 Dave Thomas
Dave Thomas's picture

Be seeing you!

Mon, 11/04/2013 - 21:07 | 4120883 StychoKiller
StychoKiller's picture

"I am NOT a number, I'm a free man!"

Mon, 11/04/2013 - 21:09 | 4120887 StychoKiller
StychoKiller's picture

Watch "The Hammer and the Anvil" episode.

Mon, 11/04/2013 - 14:46 | 4119808 Reptil
Reptil's picture

I'm on another continent but if this is any indication of what's the level of perception of the general public, I'd get out of Dodge, pronto.
https://www.youtube.com/watch?v=l02E4cj4Vvo

Not that the "general public" here (Netherlands) is showing signs of supreme intelligence either.
They're easily distracted by meaningless (but to them meaningful) cultural issues. Will they wake up before the NWO curtain finally opens?
It does seem to me that The Powers That Be are in a hurry. For some reason they're taking a lot of chances.

Million Mask March tomorrow ("anonymous" event). Could be interesting if only to fathom the action of the police state.

Mon, 11/04/2013 - 21:09 | 4120888 StychoKiller
StychoKiller's picture

"Always remember the fifth of November!"

Tue, 11/05/2013 - 00:03 | 4121562 jerry_theking_lawler
jerry_theking_lawler's picture

It is disgusting....I talk to people until I am blue to the face about the erosion of our freedoms.....most say, "I don't break the law, I don't care if they spy on me...." etc, etc.

 

I try to tell them that eventually the system will create laws that you will have to break to live (ie, breathing, expelling CO2, so on and so forth)....then they will 'punish' you....if they choose (because the .gov already picks and chooses which laws to follow).

we deserve everything we get.

Mon, 11/04/2013 - 13:46 | 4119669 RSloane
RSloane's picture

Its not only accepting, Doc, its embracing becoming a part of it.

Mon, 11/04/2013 - 13:59 | 4119709 kralizec
kralizec's picture

It is just so much easier to just take free shit and when the man says "cower and piss your pants in-place" during the latest state emergency du juor you just do what you're told...

I H8 lazy useless cowards!

Mon, 11/04/2013 - 12:43 | 4119484 El Vaquero
El Vaquero's picture

I started waking up to the growing police state in the mid '90s.  It was slow, but it started with a simple question:  "If we live in a free country, how come I am not allowed to wreck my mind and body with drugs?"  Most of my family was freaked out not at what I was telling them 10 years ago that we were in the midst of government abuse that was growing, but rather that I could believe that such a thing was possible.  It was not possible in their minds.  It could never happen here.  They've since watched the abuses mount, as I had been telling them they would, and they don't think I'm so crazy now. 

Mon, 11/04/2013 - 13:27 | 4119630 emersonreturn
emersonreturn's picture

El V...if it was a free nation people would be able to exit the planet freely, easily, whenever they chose.  why does the nation prevent people when it cannot afford to keep them alive?  why does the nation insist future generations shall have to pay to support a person who doesn't want to be here either through welfare or healthcare rather than simply allowing the individual to leave rather than be a burden: smoking, eating, drinking, drugging themselves into a stupor and ultimately oblivion.  it makes no sense.  imo allow those who truly want to leave to leave as easily and as cheaply as possible.  then begin to deal with those who want to eat, drink, drug themselves without actually dying but at the expense of the nation's children.  

Mon, 11/04/2013 - 21:11 | 4120891 StychoKiller
StychoKiller's picture

"Power and Control!"

Mon, 11/04/2013 - 12:59 | 4119575 1100-TACTICAL-12
1100-TACTICAL-12's picture

The cops job is no crappier or tougher than the guy who cleans out the shithouses in august the day after payday..

Mon, 11/04/2013 - 13:48 | 4119679 yofish
yofish's picture

Here's why: I percieved something was 'very wrong' and 'I couldn't put my finger on it' in 1972. I did all sorts of stupid (and not so stupid) shit to keep from getting crushed by the falling sky, except, it never really happened. It is no different today. Had I not married and had children I'd be a penurious old man living in the same falling down log cabin guarding my little pot plantation. Yes, things are fucked up - so what? Most who post here are children waiting for the day they can goad someone else to be slain in the REVOLUTION. 

Mon, 11/04/2013 - 12:09 | 4119439 the grateful un...
the grateful unemployed's picture

a guy gets angry at TSA, buys guns and ammo and drives from New Jersey to LA to commit mayhem in the airport. if the bastards are watching us every minute, they would need to watch some of us every second to get it right. hell even the assholes in jail have drugs and weapons. i agree the (corporate) police state is watching us, because your right to buy and own just about anything will be soon be a decision made by them. the health care death panels will be what they have always been, a panel of insurance adjusters. and food is starvation insurance (SNAP benefits reduced by 6%) now its up to the corporate retailers to decide what you eat and what you wear and where you live, by setting (fixing) prices (ostensibly a function of a free economy, since there are no more wages, government workers get stipends) government is stepping back, and corporations will step in. them and us

Mon, 11/04/2013 - 12:22 | 4119470 Dr. Engali
Dr. Engali's picture

I would add to your statment that the guy from Jersey who was "angry at the TSA" is just a ruse to get us one step closer to armed brown shirts roaming every check point and event in the country.

Mon, 11/04/2013 - 12:30 | 4119494 Herd Redirectio...
Herd Redirection Committee's picture

It also means that now when you 'rage' against the TSA, on the net or elsewhere, they are 'justified' in adding you to a list.

Mon, 11/04/2013 - 12:47 | 4119541 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Bingo.

Mon, 11/04/2013 - 13:49 | 4119675 RSloane
RSloane's picture

They have willing accomplices - "If you see something, say something, unless your name is Snowden."

Mon, 11/04/2013 - 14:54 | 4119847 Yardfarmer
Mon, 11/04/2013 - 16:23 | 4120131 aerojet
aerojet's picture

Why drive all the way to LA?  Why not open up at La Guardia?

Mon, 11/04/2013 - 12:43 | 4119535 doctor10
doctor10's picture

the "problem" is the oligarchy; any society that morphs into an oligarchy runs out of ideas because they run out of minds.

the oligarchs all wind up talking to themselves as the world goes crazy from their hubris

Mon, 11/04/2013 - 13:37 | 4119648 Herd Redirectio...
Herd Redirection Committee's picture

Yep, they have to stay in the Ivory Tower, for their own protection, but it makes them so removed from the real world that they spell their own ruin.  It was completely normal for princes in medieval times to travel among the commoners, incognito.  Usually outside one's  'kingdom'.  But it was viewed as an essential practice.  To manipulate, or lead, the masses, you have to understand them. 

Inside the ivory tower, the sycophants are the ones who are heard, and get promoted, and once your inner circle is full of trustworthy yesmen... Well...

Mon, 11/04/2013 - 13:44 | 4119664 putaipan
putaipan's picture

another perspective (hedges).... same "something's wrong" - http://www.popularresistance.org/our-invisible-revolution/

Mon, 11/04/2013 - 11:42 | 4119359 adr
adr's picture

Cipher: I know this stock market isn't real, that the Fed is just programming it to go up every day and make me feel richer, but you know what I've learned? Ignorance is bliss.

- Cut to Cipher pushing the enter button to commit a buy of 10k Twitter shares.

Mon, 11/04/2013 - 11:46 | 4119368 unwashedmass
unwashedmass's picture

and while all this is going on, 

and the media tells us things are okay and getting better....

people are going hungry, 

jobs are disappearing, 

the economy (actual) is at a dead stop, 

businesses are going under...

main street is dying....

and inflation of anything worth having is raging. 

but, nothing to see here, nothing is wrong, the stock market is going to the moon!

 

Mon, 11/04/2013 - 12:59 | 4119573 pods
pods's picture

I keep tabs on the news briefs on my local news rag (WRAL) to see how things are.

They have small snippets on non senstational crime there.  Lots of stickups, B&E, fraud, etc.

When things get bad, people who are not used to balancing their budgets on their own abilities start to do so on yours.

And things are starting to get very bad.

pods

Mon, 11/04/2013 - 13:38 | 4119652 Herd Redirectio...
Herd Redirection Committee's picture

Movin' to the country, gonna eat a lot of peaches...

Mon, 11/04/2013 - 11:52 | 4119369 I Write Code
I Write Code's picture

"Print Moar Capitals!"

LOL

Grice is onto something. OTOH he's wrong about Colvin.  There really is no shortage of money or capital out there for businesses, maybe much of it comes via credit but the bottom line is, you can wave a magic wand and have a couple of billion dollars fall on your head and you can spend that on bricks and mortar or whatever you think you need, and the money comes from many sources, so many you can abstract the matter away, and that was not the case throughout the history of western civilization.  It's depressing how much money is out there when I can't lay my own hands on more of it, ... but that's the facts, Jack.

So what is wrong?  Too many people in my boat, afloat on an ocean of money we can't touch.  Somehow all the jobs have gone to China, all the money is owned by obscure and shadowy figures, or banksters and Kardashians which is even worse, and our regulatory organs have been taken over by fools and charlatans, which seems to hurt us, and yet this ocean of money continues to roll, and we're all getting seasick from it.

Yeah, and I'd add one more thing.  I don't know that anything *is* wrong, but I'm pretty sure we're not in Kansas any more, and all that stuff in my Econ 1 textbook is mostly garbage now.  Things Have Changed.  There's something happening here and we don't know what it is, do we, Misters Jones?  We're waiting for the new textbook.  We may not like what it turns out to say, but it would have to be some kind of comfort to at least know wtf is going on.

Mon, 11/04/2013 - 12:00 | 4119401 the grateful un...
the grateful unemployed's picture

there is plenty of everything which is nothing like the first depression and which makes you wonder why they build their policies on that model. the most obvious untruth in those old textbooks is the supply demand curve. the more of something there is the more it is worth. if you can't buy something then it has no value. if everyone was using NatGas in their car, the price would double, (and the experts would explain it by using supply models when we all know there is plenty, that's why the price is higher than it was when no one could use it)

Mon, 11/04/2013 - 12:36 | 4119497 Emergency Ward
Emergency Ward's picture

It was Lightnin' Hopkins who commented, "if you got a dollar, and that dollar won't spend, then what good is that dollar? -- it's better to have a friend then that dollar."

Mon, 11/04/2013 - 12:39 | 4119518 forwardho
forwardho's picture

Amen to that brother.

If you are not part of a tight community, You are alone.

Mon, 11/04/2013 - 12:49 | 4119544 the grateful un...
the grateful unemployed's picture

free wheeling franklin sez, times of dope will get you through times of no money, better than money will get you through times when there is no dope

Mon, 11/04/2013 - 16:14 | 4120077 Renfield
Renfield's picture

Grateful Un, gave you a rare downvote and wanted to explain why since I get what you're saying and on one level it's right.

But there actually isn't 'plenty of everything' and aside from fiat 'price', the scarcity of things of REAL value, makes those things worth more (in real terms). It's only fiat that makes things confusing. In fiat terms only, things are 'worth more' if there is plenty, so if your prices are set by fiat rather than value (which these days they are), then yes the more supply you have the more the price rises. But this is not true if you consider, not just fiat price, but value and availability.

Food is not, in fact, plentiful today. It is priced artificially low in fiat considering how many mouths are open for feeding, but try getting REAL, GOOD food in most urban neighbourhoods. Food of real value is relatively scarce, and even though it's still priced 'low' in fiat, it's becoming quite expensive for most people (whose fiat wages are petite, since their labour is also priced very low) and I don't think anyone foresees that trend slowing down.

Energy is not, in fact, plentiful today, and again, is 'priced' lower than availability supports. Same with PMs, same with high-end art or housing or collectibles, same with anything whose value isn't solely a function of fiat price.

The only things that are 'plentiful' - cheaply-made houses, consumer garbage, stocks, corporate art, junk 'food' - these are indeed high-priced in fiat, and without much intrinsic value. Their 'value' is nearly all a function of fiat. Those are the items that are plentiful supply and with rising prices, but from a value and availability perspective, you get almost nothing these days for the fiat your labour is priced at. (Labour, by the way, is also valuable, scarce (REAL labour), and far underpriced in fiat.)

There is plenty of junk for sale, at high fiat prices, and plenty of fiat out there chasing such junk. But when I look for value, it is scarce, and the price when I do find it is generally beyond what my labour is priced at, so I tend not to be able to afford real goods, since they are both scarce and high-priced. I think of it as Company Town. In the Company Town, even the housing is corporate-provided, and everything is overpriced considering that your labour is spent buying low-value items (that are plentiful and high-priced) since items of real value tend to be unavailable. But this is ONLY because the denizens of Company Town are limited to Company Fiat.

Don't know if this is unclear or you agree but I wanted to write it down b/c I don't usually downvote you but I think this distinction is important.

Mon, 11/04/2013 - 11:46 | 4119370 the grateful un...
the grateful unemployed's picture

the confusion arises because Fed isn't printing money (although that's part of their charter) they create new collateral (bank reserves to match the colalteral wiped out in the financial crisis) in a real economic collapse those holding impaired debt would have their assets bought out by those with capital (real wealth and collateral, cattle, land, and gold - 1800s) in the first great depression this allowed a massive transfer of land from private (farms) to corporate interests. should the same process occur once more, we would all be in the .001%, or 1/100 of our current share of the wealth. private collateral (savings and home equity) is being destroyed, while corporations build cash (which is not capital) to be fair this has prevented them from owning us completely, now they only own paper shares of nothing really because corporate cash holdings are not capital. their asset value is based on cash, which is leveraged phantom collateral, which is not even real cash but notional electronic. poof and its gone.

the fed is using hundred year old models (depression 30's) to guide a rapidly evolving economy, they are bound to fail without some new vision. government is responsible for seeing that consumers keep consuming, when that ships sails then we collapse (or collapse more quickly than we are) the old linearlly expanding economy is finis, the economy and world pop will start shrinking, and the next fed chief needs to assign DEFLATION targets, to guide this thing down for a soft landing. we're shrinking no 2 ways about it, and you can't keep changing the Dow like the sign telling you what the price of gasoline is, in front of a gas station, when no one drives a car anymore. Dow 20k who cares? the real wealth is again land cattle and gold.

Mon, 11/04/2013 - 11:49 | 4119373 therevolutionwas
therevolutionwas's picture

Well, yeah, we know that. THEY don't.  The language is corrupt, and it makes a fine curtain few people try looking behind.

Red pill, blue pill, and all that.

 

Mon, 11/04/2013 - 12:39 | 4119511 Peter Pan
Peter Pan's picture

We live in a time where words and their meaning have been corrupted so as to enable lies to achieve status. Over time definitions are twisted and their is a resultant lowering of human standards and aspirations.

From an eonomic point of view the average man no longer understands the difference between money (gold and silver) and currency (fiat). The results of that ignorance are now manifest.

The abundant production of currency without intrinsic backing (i,e. With nothing more than the full faith and backing of governments) is sheer malarky and an insult especialy so because it is matched by a dollar for dollar increase in debt.

One therefore comes to the conclusion that currency is not printed for the primary purpose of liquidity/capital but for the propogation of debt and enslavement.

Mon, 11/04/2013 - 16:26 | 4120128 Renfield
Renfield's picture

<<One therefore comes to the conclusion that currency is not printed for the primary purpose of liquidity/capital but for the propogation of debt and enslavement.>>

Every dollar printed is a debt coupon.

"This note is backed by the full faith and credit of..." - that's debt.

"Government currency is supported by the promise of future taxation from future labour..." - that's debt.

Every dollar is a government IOU. Printing more money to pay off debt is irrational beyond belief in this system, because one is simply issuing more IOUs to roll over previous debts, but neither the old nor the new debts are actually paid. When the government runs out of "faith and credit" - and they always do - then all those debts become null and void.

Accepting government debt as payment for anything, with governments as indebted as they are today, is stupidity squared. As more and more people notice this - that as payment for debts, they are accepting only more IOUs - then the mode of payment gradually changes. It is amazing how clarifying, and natural - and inevitable - this realisation is.

I wonder what will happen to the 'unemployment rate' as more people realise that they are exchanging their REAL time and labour for nothing but IOUs that buy noticeably less food each year, and whose counterparty is a notoriously insolvent government and a bunch of criminal banks. That our fiat currencies are corrupt beyond redemption is not very well known yet, but now it is publicly known. Keeping that knowledge away from the public is the only way government fiat can work. Truth spreads slowly at first, but its spread is also exponential.

Mon, 11/04/2013 - 11:54 | 4119388 Trimmed Hedge
Trimmed Hedge's picture

Where is that sound coming from??

Mon, 11/04/2013 - 12:07 | 4119433 Seasmoke
Seasmoke's picture

The toilet bowl ?

 

Mon, 11/04/2013 - 12:37 | 4119509 forwardho
forwardho's picture

It is the sound of one hand clapping, Do find the sound as pleasing as the masses around you do?

Mon, 11/04/2013 - 11:54 | 4119389 Reaper
Reaper's picture

New words are easily created and defined. The problem is old words are redefined and the prior conclusions are then still deemed valid for all included by the new definitions. This is what creates the unease in the minds of the rational. Black is White, War is peace,Printed money is capital, are redefinitions by fiats of a government. All delusions and illusions end badly.

Mon, 11/04/2013 - 11:57 | 4119392 silentboom
silentboom's picture

Capital, das kapital, inflation, tomatoe, tomato, it's all greek to me.

Mon, 11/04/2013 - 12:10 | 4119447 Running On Bing...
Running On Bingo Fuel's picture

Doubt it or you'd be like: lamb, lamb, couscous, yogurt, feta, lamb, gyros.... On And On with your bankrupt rituals.

Over.

Mon, 11/04/2013 - 12:01 | 4119408 moneybots
moneybots's picture

"...a widespread perception that  something is very wrong."

 

It isn't a perception.  Something IS very wrong.  Like with the depth of NSA spying was, it is being hidden from us, through more financial fraud by the powers that be.

Mon, 11/04/2013 - 12:36 | 4119507 Herd Redirectio...
Herd Redirection Committee's picture

I 'love' how these articles still have to start with the "is it just me or..."

The MSM have created an illusion, and we have to justify to each other why we don't believe it?  By now it should be common knowledge that everything on TV or in newspapers or on the radio is either a lie, or it is disinformation, i.e. 98% truth, 2% complete BS.  But most sadly never catch on, or even question it.

Mon, 11/04/2013 - 16:28 | 4120150 Renfield
Renfield's picture

Hunger has a way of waking people up.

Of course, waking up hungry tends to make people cranky, and cranky people sometimes don't blame the right people.

But hunger has a way of moving perception from illusion to reality, fast. I'm betting on an increased SNAP program next year.

Then again, I don't watch TV....

Mon, 11/04/2013 - 12:06 | 4119426 Cursive
Cursive's picture

I agree with him that the English language, as it is commonly used today, offers little value for the proper communication of information.  And if you don't believe me, I suggest that you go on a twerking spree with a bunch of MILF's.

Mon, 11/04/2013 - 12:10 | 4119446 carbonmutant
carbonmutant's picture

The majority of Americans have been convinced theat it's okay for the people they elect to steal from them...

Mon, 11/04/2013 - 13:41 | 4119656 Kirk2NCC1701
Kirk2NCC1701's picture

Well, what do you expect when you got grads from Goebbel's School of Journalism, sports & entertainment from the Ministry of Culture providing entertaining and dulling programs 24/7/365 to desensitized masses?

Masses, who operate on the Normalcy Bias and attack each other under the effects of a collective Stockholm Syndrome.

And the real kicker of the latter is that it's build into the very fabric of Culture, via its Religion... Given that the TRUE purpose of ORGANIZED religion is to sanction multi-generational theft (Aristocracy) and that the poor must not kill the rich.

TPTB effectively use the Luciferian commandment of "Do what thou will", whereas the Christian "sheep" are out of their "flocking" mind with passive acceptance of victimization (Turn the other cheek) that is layered on top of a dream/delusion of a better life or after-life in the distant future. IMO they are every bit as delusional as the Jihadists who believe the BS about having a bunch of "virgins" in the next life. Such people, who are "Sheeple" by choice, truly deserve everything they get from Luciferians (operating on Darwinism -- survival of the craftiest, strongest and fittest). It's a real shame/tragedy that they also drag down all too many young and innocent 'souls' with their dogma of Sheepdom.

You CAN choose to be someone other than a sheep or wolf. But if you do, you must first stop following those who pose as "shepherds". Otherwise you truly ARE a sheep, who is merely smarter than most.

Mon, 11/04/2013 - 16:30 | 4120156 I Write Code
I Write Code's picture

As Rousseau said, "The will of the people CANNOT be mistaken!"

Mon, 11/04/2013 - 12:12 | 4119450 Inthemix96
Inthemix96's picture

Oh people are finally waking up and realising something is wrong, I see it nigh on every day.

With this years annual raping by the power companies here finally in, in just two years we here have seen on average a 35% jump, just on power consumption.  Food banks have exploded by 40-60% in some areas and most of the folk using them are low paid workers.  A litre of deisel here at my local station is £1.49.99, one and a half quid for a LITRE of the stuff.  Value added tax, VAT is 20% on nearly every item we buy.  Wages are stagnating or falling.

Yes, people are waking up to the fact we are royally fucked on this cold damp island.  And while the cost of living is crippling the bloke on the street, our right 'Hounorable Gentlemen' are about to receive a £10,000 a year pay increase, while the queen and her band of merry peodophilic inbred, shit fucks of a family get another £5 million a year increase.

The natives here are not 'Best Pleased', to say the least.  When this does kick, direct your anger folk, to those that richly deserve it.  But yes, people are more aware that something is very seriously wrong, and from what folk tell me breaking point cant be far off.

Mon, 11/04/2013 - 12:38 | 4119520 Herd Redirectio...
Herd Redirection Committee's picture

Thats why Divide and Conquer is so important.

When shit hits the fan, do you want the former middle class storming Wall St, and Washington DC, or do you want them to burn down Miguel's house.   And of course there is John Smith down the street that has been hoarding for years.  Everyone knows about it, and everyone 'knows' hoarding caused this crisis (of high prices, scarcity).

I bet they will blame collapse on hoarders and illegals.  Why not. 

Mon, 11/04/2013 - 12:50 | 4119545 Bryan
Bryan's picture

I wouldn't blame the rich for being rich though.  Remember, they are just poor people who figured out how to work the system in their favor (even if it was 100 or 1000 years ago).  IMO, the problem is human greed and fear, and there's no changing that.  We are doomed to go through these dumb cycles of poverty and excess forever until something changes in the human personality, and I don't see that happening any time soon.

Mon, 11/04/2013 - 12:52 | 4119551 Herd Redirectio...
Herd Redirection Committee's picture

No, they are immoral sociopaths, and crime pays.  Thats why.  Any normal person couldn't live with themselves, doing what the WEALTHIEST on the planet have done through their life.

Mon, 11/04/2013 - 15:37 | 4119986 Disenchanted
Disenchanted's picture

 

 

Crime when it succeeds is called virtue. ~ Seneca

Mon, 11/04/2013 - 12:55 | 4119560 shovelhead
shovelhead's picture

Time to go Cromwell and arrest the Parliament ?

Mon, 11/04/2013 - 13:09 | 4119596 Debt Slave
Debt Slave's picture

One look at Londonistan ought to be enough for anyone to realize that something is very wrong.

Mon, 11/04/2013 - 13:44 | 4119661 emersonreturn
emersonreturn's picture

inthemix96

 

in your island's past when the sheeple began to grumble it was assumed the sheeple needed something to take their minds off the worrisome fact they might be hungry and sent them off to war.  soon, before the sheeple take to the streets a war shall be found to divert them.

Mon, 11/04/2013 - 17:56 | 4120428 Inthemix96
Inthemix96's picture

emersonreturn,

Thanks for the reply.  Not this time my friend.  Folk here are fast waking up to being fucked over.

I would rather put a stake through the heart of a politician than my fellow man whos done fuck all wrong.

Bear that in mind.

Mon, 11/04/2013 - 13:55 | 4119696 Abaco
Abaco's picture

+many for "peodophilic inbred shit fucks!"

Mon, 11/04/2013 - 13:00 | 4119451 Trampy
Trampy's picture

Simple.  Right now before our eyes is the Capitalist Crisis that was predicted by Karl Marx in the 1800s.

Marx is probably the most brilliant economist in Western literature yet he's relegated to even more of a ghetto of academia than the so-called Austrian school.

As to the economic "schools" he likened economists to theologians in having the similar conceit that they and only they were in possession of the knowledge of god, and that they alone would be going to heaven for seeing the true light.

Marx said so many right-on things about the current situation that's it's uncanny, yet you don't hear much about it.  Why is that?  Of course Kapital is a dense read, but you can learn a lot about Marxian theory by reading John Kenneth Galbraith, who didn't fit neatly into any cubbyhole, maybe because he was able to think for himself, and a very good thinker he sure was. 

Marx predicted that monopoly capital would grow ever larger more powerful in its control of markets and that government, instead of checking its growing powers, would let it grow unabated in power until all wealth was concentrated in hands of very few.  And the reason government in his view would let it happen is because government is, and always was, a tool of the bourgeoisie.

Marx also popularized in modern times the question, "what's their benefit?" or Cui Bono, in being skeptical of new political movements or any others who questioned the staus quo.

See J.K. Galbraith 1958, The Affluent Society, Chapter VI, "The Marxian Pall.  

Does any of this sound familiar?  Is Marx ever credited as predicting what no other economist of his day or earlier (or future!) was able to do?  Hayek at al. couldn't imagine that the entire "system" could come to an end.  Initially I believed that owning PMs would be some kind of protection against the inevitable.   And then I started regretting no stockpiling guns and ammo.  But neither of them will do an individual any good whatsoever.  So you're high on just a more "advanced" form of Hopium than the common Hopium if you think PMs and guns would help you in any long-term way.  But Hopium that is, nonetheless.

What is the Marxian end game?  The state will "wither away" as irrelevant after the proletariat wake up to their oppression with violent anger.  Yes, heads will roll and there will be blood in the streets, but it'll probably be decades of that before the state withers away as the rich and powerful have their money and power taken away from them by Mao tze Dong's only true source of power: the barrel of a gun.

Are they coming for your guns or are they coming for your silver and gold?  It doesn't matter a whit! 

FDR made it illegal to hoard gold and then silver.  If you're stacking 100-ouncers or even 10-ouncers, you'd be risking prison for even trying to find a buyer to sell them to.

And then there are the people stockpiling guns  and ammo.  Well, it's already a felony to sell those in violation of federal law.  With all the EOs like 13603   http://www.whitehouse.gov/the-press-office/2012/07/06/executive-order-assignment-national-security-and-emergency-preparedness- where he's announced his presidential power to control the entire economy (just to "fight" CIA/Al-Qa'Ida, BTW), doncha think he could bypass Congress (and the Supremes) by invoking his supreme powers as commander in chief during time of (civil) war and delegate to DHS, DoJ,and DoD (per emergency conditions of domestic war) ... the joint authority to rid private owners  of their guns and ammo? 

There are probaly only a literal hands and fingers of laws that don't have a "national security exemption" stuck at the end of them, where either the President or a cabinet secretary can waive application of almost every federal statute for reasons of national security.  Most of the practicing attorneys I've met have no idea that this is the case, but Congress does a damn good job of always sticking it in there, though it'd be interesting to know if they did the same with the Unaffordable Healthcare Act as it really should be "styled." 

Presidential rule by decree through EOs would be for wartime emergency and therefore what realistic chances would there be of the Roberts Court granting cert. until maybe decades afterward if they still existed by then for any damage suits brought by descendents of the victims ... like with victims of the Nazis who spend decades trying to get reparations for what the Nazis stole from their forebears?

Individual resistance is futile in the face of seak-and-peak warrants to bug our homes and SWAT teams to come and take us away, haha ... so all we can do is make our peace with the hopelessness of the reality and act accordingly. 

Mon, 11/04/2013 - 13:03 | 4119583 shovelhead
shovelhead's picture

They could outlaw air but I hardly think that people will stop breathing.

Any law that can't be enforced is no law at all.

Fuck em.

Mon, 11/04/2013 - 13:13 | 4119609 Buckaroo Banzai
Buckaroo Banzai's picture

Marx was a nihilist. If you are a nihilist, it is easy to predict the future when that future (our present) actually gets taken over by nihilists.

Why, it's almost like Marx wrote a script, and then some sick, evil people got ahold of that script and and spent the last century implementing it.

 

 

Mon, 11/04/2013 - 13:25 | 4119625 Ghordius
Ghordius's picture

why do you see Marx as a nihilist? his vision of the far future was one where capital would do all the work and people would just go after their vocations. this of course after a successful marxist revolution, passing through stages of socialism, communism and then "Eden on Earth"

meanwhile something like a quarter of ZH's residents are more properly described as nihilist, for example there are plenty of political nihilists, here

Mon, 11/04/2013 - 15:01 | 4119684 putaipan
putaipan's picture

will someone PLEASE ressucitate henry george? ... marx called his line of thinking "capatalisms' last chance of breath"

Mon, 11/04/2013 - 14:55 | 4119857 SDShack
SDShack's picture

That's all well and good in theory... but from a practical matter, the Marx plan has never been implemented, nor will it ever be implemented because TPTB are sociopaths. The reality of Marx was that Stalin used the theory for his own gain, leap frogged over any capitalistic reform and evolution to socialism, and went straight to Stalin's view of Communism... which in reality was nothing but Fascism... a one party govt that controls all means of production. It's been moving this way in the US post Great Depression. The reason? TPTB are sociopaths and therefore by definition unable to implement the theory. They have gamed the system so that only sociopaths win.

Mon, 11/04/2013 - 19:09 | 4120588 Ghordius
Ghordius's picture

+1 I remember discussions where Marxists would at this point repeat: "Russia was the wrong country to start with!"

Mon, 11/04/2013 - 20:38 | 4120784 SDShack
SDShack's picture

That's where the Marxists are wrong. The truth is there is NO country on Earth where Marxism can start and be successful. All countries eventually devolve to be run by sociopaths as a result of inevitable power vacuums that develop from some crisis... economic, health, food, energy, whatever. Sociopaths take over and then game the system to entrench their power. Marxists are just idealists that will never realize their utopia anywhere on Earth because they don't understand how human societies really work.

Mon, 11/04/2013 - 17:05 | 4120257 aerojet
aerojet's picture

I don't think Marx was any kind of hero.  People have taken his ideas and used them to murder millions upon millions of other people in the vain hope of implementing his perfect world.  Marx is a mental virus that takes over rational thought and replaces it with a toxic dogma.

Mon, 11/04/2013 - 12:20 | 4119463 falak pema
falak pema's picture

Not Amongst the Oligarchs, the 1%.

London RE prices booming as their sons move in from all over the world, especially Russia and ex USSR oil repubs.

We will now see these poles of ultra wealth grow around the world : London, Paris, Berlin, Monaco, Dubai, Singapore, HK etc. Tax havens and financial hubs and cultural sub hubs. The WS culture is cut and pasted.

2014 banner year for stocks. Good places like Pompei to await for the poor to get poorer as the welfare state disappears in first world. Neo feudal empire.

NSA and TBTF make sure law and order prevail for the benefit of 1%. The socialisation of debt and taxation stays on the cards for the 99%. Real economic growth a debt and fiat perpetual virtual machine a game of cards and false statistics.

Amazing how 0.01% control the pyramid of the world by initiating regional wars to create fear, by managed democracy and by puppet prestitution of MSM media bread and circuses. 

Inverted Totalitarian Oligarchy.

 

Mon, 11/04/2013 - 12:30 | 4119490 Running On Bing...
Running On Bingo Fuel's picture

London. WGAS about this sphincter shit hole. FUCK YOU! You brit fuckers. Real Americans still want to see you vaporized by a Black Comet.

Fuck your Queen and King, prince and princess!!

Go kick you little soccer ball you bit fagots!

Over.

Mon, 11/04/2013 - 12:31 | 4119473 Arbysauce
Arbysauce's picture

Not only money but language is being debased to nothing. These are society's nervous system and they are being destroyed. That's what is wrong. Honesty is becoming scarce. All short term game, win the next election, cash out, sell out, spin it. A headlong rush to a destination unknown.

Mon, 11/04/2013 - 12:48 | 4119542 the grateful un...
the grateful unemployed's picture

mcluhan said that if left to scientists the language could be reduced to one word. if you study the literature of the middle ages you see many terms and fine distinctions between them to define what we now refer to some one thing, lets say psychology, of which the applied version has moved from the use of analysis, freud and jung, to aversion therapy and psychomeds.

Mon, 11/04/2013 - 12:31 | 4119495 moneybots
moneybots's picture

"the fed is using hundred year old models (depression 30's) to guide a rapidly evolving economy, they are bound to fail without some new vision."

 

The FED's vision is the 1920's. Keep creating new bubbles, to replace burst bubbles.

 

Models simply don't work.  They appear to work, during the UP phase of a cycle.  Greenspan was touted as The Maestro, during the UP phase of the cycle.  The DOWN phase of the cycle exposed the truth of corporate and mortgage fraud.

There is no FED model that is going to change the laws of math.

A rapidly evolving economy is rather irrelavent.  1+1 = 2 regardless whether the economy is rapidly evolving or not.  Debt was not wealth in the 1920's and it is not wealth now, nor will it be if the FED changes its model.

Someone once said, why do bankers invent new ways to lose money, when the old ways worked so well.  Models don't work.

 

 

Mon, 11/04/2013 - 12:39 | 4119522 Alex Kintner
Alex Kintner's picture

"Greenspan was touted as The Maestro"

I know. It says so in Greenspan's new book.

When he was on the Daily Show, he acted like he had set things up for a Financial Nirvana. But alas, everyone else f*@ked it all up and we got the 2008 financial collapse. :-)

Mon, 11/04/2013 - 15:06 | 4119888 SDShack
SDShack's picture

Absolutely correct about Fed model working only in an up cycle, and not in the down cycle. What is so ironic is that these so called geniuses are all Economics majors, and economics teaches that all ledgers must balance out. So your 1+1=2 is correct, but it really is something more like 1+2-2+1=2. The +2 -2 being the boom/bust cycle. Funny how the geniuses ALWAYS forget their basic economics on that point. They seem to think a negative number doesn't exist. Hell, even Keynes understood that. 

Mon, 11/04/2013 - 15:44 | 4120008 WOAR
WOAR's picture

Debt is wealth when it is being spent as credit. However, the contraction that comes afterward, when that debt needs to be paid off, is the inevitable problem with seeing the world that way. This is why economic predictions are always correct on the UP side, and wrong on the DOWN side.

Mon, 11/04/2013 - 12:32 | 4119496 Alex Kintner
Alex Kintner's picture

There's nothing wrong that a Storming of the Bastille wouldn't fix. And a few heads on pikes.

Mon, 11/04/2013 - 12:44 | 4119533 Herd Redirectio...
Herd Redirection Committee's picture

Whats funny is, in medieval times, crossbows were forbidden inside towns (and hence, cities).  Because a crossbow meant a commoner unskilled in combat could kill a nobleman!  And that was NOT on.  And what do you see in Washington DC and Manhattan these days?

Mon, 11/04/2013 - 12:59 | 4119571 XAU XAG
XAU XAG's picture

@Herd Redirectio...

 

I see in Washington DC and Manhattan...........No Nobleman

 

or did you mean crooks?

Mon, 11/04/2013 - 12:41 | 4119501 XAU XAG
XAU XAG's picture

widespread perception that  something is very wrong

 

 

What is wrong is succesive governments keep promising everything under the sun and keep slapping it on the credit card and taxes.

 

And taxes paying the interest on  the credit card.

 

If it were you or I we would have been bust long time ago

Mon, 11/04/2013 - 12:33 | 4119502 TORNasunder
TORNasunder's picture

As the narrative unravels and the manipulation becomes more difficult, if not impossible, to conceal (mortgage fraud, PM price(s), irrational markets, cooked gov't data to name but a few) the truth is harder and harder to hide. The cracks grow wider and wider, and even those who practice, 'hear no evil, see no evil, speak no evil', can no longer ignore reality kicking them in the crotch.

Mon, 11/04/2013 - 12:34 | 4119503 MrVincent
MrVincent's picture

Of course there is something wrong. If eveything was ok we would not be coming to sites like Zero Hedge looking to try and make sense of things. We certainly will not get proper information from the mainstream media.

If the media was really looking out for us they would have people like Peter Schiff on every night in prime time news.

 

 

Mon, 11/04/2013 - 12:40 | 4119523 XAU XAG
XAU XAG's picture

Yes MrVincent

 

The Con game is alive and well

 

The con fidance game is alive and well while feed us with bread and circus

Mon, 11/04/2013 - 13:41 | 4119654 MrButtoMcFarty
MrButtoMcFarty's picture

Less bread.....More circus!

Mon, 11/04/2013 - 12:39 | 4119516 squid427
squid427's picture

@Running On Bing

can you tell me the best way to purchase bitcoin?

Mon, 11/04/2013 - 13:05 | 4119556 Running On Bing...
Running On Bingo Fuel's picture

Maybe here:
http://www.cafepress.com/zerohedge

If your into it bro.

Woops my bad, upon further examination, Zero does not accept bitcoins. Sorry bro.

Over.

Mon, 11/04/2013 - 12:39 | 4119519 tradewithdave
tradewithdave's picture

There is no more time value of money or quantity theory of money (at least according to Woodford's Chicago Plan)... only distance to "the threshold."  The question is how is that distance measured; time or inches?  Neither.  I would suggest we prepare to see it measured in ounces. 

Mon, 11/04/2013 - 13:14 | 4119566 Ghordius
Ghordius's picture

language of inflation? what about price stability? oh, I forgot, that word has been taken out of NewSpeak. too dangerously near... deflation

Mon, 11/04/2013 - 13:17 | 4119619 shovelhead
shovelhead's picture

Maintaining price stability consists of bankrupt banks buying bankrupt countries bonds to keep the prices low so they can continue to buy ad infinitum.

It's important to keep the price of worthlessness low.

A slight variation of 'the American Plan'.

Mon, 11/04/2013 - 13:32 | 4119638 Ghordius
Ghordius's picture

you are not being serious, are you? it's simple: while the whole question of who owes who what goes on, the economy has to chug along. and the best way to have that diesel motor going on is price stability. 'cause of the old problem of economic calculation. the same thing that is difficult under a socialist regime

Mon, 11/04/2013 - 16:25 | 4120141 shovelhead
shovelhead's picture

Half kidding.

Since the article deals with the disconnect of language describing liquidity vs capital, I relate it to the ridiculous situation with EU banks where they pump liquidity into banks because there IS NO capital, ie. nothing of value, so the banks can buy bonds that are backed by nothing of value thus creating the illusion of price stability.

Real goods that people need will have increasing prices as that liquidity leaks incrementally into the economy

Goods that people want but cannot afford will do the opposite.

Prices are still dropping on half finished condos in Spain.

Mon, 11/04/2013 - 13:03 | 4119586 squid427
squid427's picture

copy that. thanks for the reply

Mon, 11/04/2013 - 13:04 | 4119589 lasvegaspersona
lasvegaspersona's picture

As I roll into my 67th year I have to say NEVER have I seen the people of the USA more troubled by their government.

Not VietNam, not Nixon, not Clinton (pick a scandal) and not the wars in the Mid East, none of these events compare to the tension and distrust I hear people expressing about the actions coming out of Washington.

People don't riot anymore. I'm not sure how this anger and sense of betrayal will manifest itself but it must. 

At the very least the government no longer has the support of the people and in any emergency the people probably will not listen to the advice of the governing....even if it might be for the best....and this loss is huge.

After Pearl Harbor men enlisted by the millions. I cannot imagine an event that could cause that kind of response today.

Mon, 11/04/2013 - 13:18 | 4119624 Jethro
Jethro's picture

As a culture, we are far more selfish now. We have entire generations that have never done without, and have no concept of a future with a diminishing standard of living. They will be in shock when confronted with this reality, and I expect violent, emotional, undirected backlash. The world will become a more dangerous place. It's not what I want for my daughters, but I'm raising them to expect this outcome.

Mon, 11/04/2013 - 14:07 | 4119730 shovelhead
shovelhead's picture

Different circumstances produce different results.

The early 60's had small numbers of people who took to the streets to ban the bomb after the Cuban missile crisis while a number of people took to the civil rights movement simultaneously which increased media coverage that was generally sympathetic to these causes. Add in the Vietnam War protesters and draft card burnings which were not treated as well by the media until the Tet Offensive which spiked body counts to US troops.

These were highly focused groups with a message that the average citizen could sympathize with even if they couldn't fully agree with the message of some of the more extreme members of protests were adopting.

OWS never had a clear message and focus that the average citizen could get behind. The media, while sympathetic, muddied the waters by treating the bailouts as unfortunate but necessary to 'save' the world. OWS dissipated their energy on failing to focus on the real problem which was the Govt.'s collusion with Wall St. and the FED's actions that lead up to the 2008 collapse.

None of the bubbles and subsequent asset stripping could have occurred without Govt. actions or inaction.The OWS's theme should have been Occupy the Capitol where the Wall St. criminals got all their assistance by the crooks who are supposed to be answerable to the people for their actions.

Once that message gets focused and people start to understand that it's far beyond a case of 'times are tough' and thing get worse that a critical mass point will be reached and we'll see grey haired Tea party types join forces with young unemployed and students saddled with debt.

We just ain't there quite yet.

 

Mon, 11/04/2013 - 14:55 | 4119854 El Vaquero
El Vaquero's picture

I was born after the Vietnam era so I cannot relate to your experiences with that, but I do have to say, no shit!  I don't think most people really understand what is going on, but there are a lot of people who do understand tyranny on simple terms.  It's easy to understand that police routinely shooting unarmed "suspects" and suffering no consequences is tyranny.  There are more than enough videos and news stories of police doing terrible things to people that people are starting to lose trust in them.  It's easy to get pissed off at sniveling bureaucrats who enforce pointless rules because they are rules.  I think that we'll also see people finally realize that things aren't actually getting better, despite what the BS peddlers in DC have been saying for the past 5 years. 

 

And like yourself, I also cannot see a reaction like we saw after Pearl Harbor.  We can look at the public's reaction to the proposed bombing Syria to see that.

Mon, 11/04/2013 - 13:04 | 4119590 Professorlocknload
Professorlocknload's picture

Nothing as mundane as perfection. Something must always be wrong.

Mon, 11/04/2013 - 13:05 | 4119593 lynnybee
lynnybee's picture

of course there's something very wrong; SOMETHING VERY WRONG STARTED on DECEMBER 23, 1913 !

Mon, 11/04/2013 - 13:11 | 4119599 Fezter
Fezter's picture

Groucho: You know that contract contains a sanity clause.....

Chico: You no canna fool me....There's no such thing as a Sanity Clause.....

Mon, 11/04/2013 - 13:12 | 4119607 Alpha Monkey
Alpha Monkey's picture

I'm of the opinion that the language has been intentionally skewed to prevent critical thinking about the nature of our financial and economic systems.  Further, it can be used to justify certain actions that enrich a few and impoverish many.

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