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Resolution #1: Let's Call Things What They Really Are In 2014

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

The Status Quo system is failing. Its collapse will be messy. Starting to call things what they really are is a necessary first step to working with this reality.

Longtime correspondent Harun I. has offered a refreshing resolution for 2014: let's start calling things what they actually are, rather than continue using officially sanctioned half-truths and misdirections. Language defines the context, meaning and agenda--in other words, everything. If we continue using Orwellian language, we get an Orwellian world of officially sanctioned deceptions passing as reality.

Here are Harun's suggestions should we accept the value of Calling Things What They Really Are. This may well be one of the most insightful explanations of our financial system you will ever read:

 


"Let’s start off the new year by resolving to call things exactly what they are with words a 5th grader would understand.
Bank Deposit: An unsecured personal loan. The bank can do whatever it wishes with the money. The money may not be returned (ironically, people pay for this “service”).

Fractional Reserve Banking (Lending): Leverage. A bank has only a fraction of what it owes to its depositors. In a 10% fractional reserve system, the bank is only required to have ten cents of every dollar in its vaults.

The IMF is suggesting a 10% default by European banks. In a 10% reserve system, this is a reversal. Effectively, one person is going to get their money back and nine others are not. This may reset the banking system but the economic consequences due to the loss of purchasing power at such a scale will be significant.

Bank Bailout: The bank has lost its depositors money and thence government forces the public to borrow money they have a) already earned, b) from the very banks that supposedly have no money, and c) do so at interest (which must be borrowed). Effectively it is a failure and therefore a default.

Bank Bail-in: Every dollar placed at a bank is a dollar it owes to someone (liability). When the bank has lost all or a portion of its depositors' money, it cannot return what it owes. Rather than forcing the people that are owed money by the bank to borrow money to put back in their accounts, the bank merely points out that it doesn’t have the money. This is a default.

Default = Default.

Money: Has no other purpose than to allow people to trade things they have worked to make or services they have performed. Holding on to it may allow one to trade for more or less of a particular good or service in the future. Money is a promise but not a guarantee that it will be exchangeable for something in the future. It is credit and debt.

Without a tangible good or service to trade money is worthless. If I have made a fine overcoat and you, with your skills in carpentry, have made an exquisite chair, we can trade these things directly. In this case money is worthless. It does not work the other way around. Goods and services do not become worthless in the absence of money. My coat will still have value even if I choose to wear it to keep warm. Your chair will have value even if you just choose to sit in it.

This is a critical distinction — and it has been completely lost on just about everyone. We have become completely divorced from the goods and services we make and provide and the money we use to trade these goods and services. At the core of this divorce is Fractional or zero Reserve Banking.

Let’s propose that you and I traded our goods and we deposited our goods in a bank. The bank immediately pledges my chair and your coat to ten other people. Some time later I engage in a redecoration of my home and want my chair. Winter comes and you want your coat. Immediately there is a problem. The bank owes our goods to ten other people. The only way for them to resolve this situation is to either get everyone to accept a fraction of the coat and chair, which of course isn’t very practical, reduce their liability by giving one person the chair and one person the coat and the other ten people get nothing (bail in), or get you and I to bail them out by producing eleven more chairs and coats (10 plus interest).

You see, if in the definitions of bailout and bail in we simply substitute the word money with the words goods and services, the situation loses its ambiguity. When we understand internally what money represents, then we understand what the term Bank backstops really mean. A bank can only be backstopped, bailed out or bailed in, by labor because that is the only thing that "money" represents.

If we understand the definition of money then when we discuss the Federal Reserve's leverage, e.g. 72 to 1, we immediately understand that for each unit of labor performed 72 are owed. If for each hour of labor 72 is owed, how is this ever make that up? The clever person would pipe up and say, I’ll just work for 72 hours straight. But for each of those 72 hours he has worked he now owes 72. When we understand this, we understand that it is an event horizon.

We then understand that every bit of QE (quantitative easing) is a pledge of labor someone must perform at some point in time and that the rate of performance required is impossible.

If we now understand money and leverage and are to propose debt forgiveness then we must embrace rather than bemoan austerity because austerity is the necessary result of 10 other people not getting a chair to sit in or a warm coat for the winter.

With these concepts firmly in tow we begin to see that all of this hand wringing over paying off the $17 trillion in debt is, at best, a fools errand. Yes, in public politicians try to sooth us by appearing concerned. But behind closed doors, the Fed, Treasury, the Congress and the Executive, are all trying to figure out how we are going to borrow more so that over the next doubling period (about 10 years) debt will expand to a necessary $34 trillion.

Some additional clarification may be needed to explain leverage and work. At 72 to 1 the other option is to create 72 units in the time it takes to make one. In other words, if it took you and I one month to create our goods, we must create 72 coats and chairs in that one month. Broken down into hours, if we worked at full capacity 8 hours per day to create one coat and chair, we must do enough work in that 8 hours to create 72 coats and chairs.

Ultimately, work is nothing more than an exchange of energy, and the equation for any exchange of energy is quantifiable and finite (the equation must always balance). If we measured labor output in calories instead of money, the deception disappears. People may not be willing to expend 10 calories for 1. We would also understand that 1 calorie cannot create 10.

These concepts (thermodynamics) are esoteric to the point a 5th grader would have trouble understanding. But what is easily understandable is that if we all did the same work everyday but got less food because of an increase of incoming workers, yes, we would all have food – and we would all soon become malnourished or starved.

How would people react if the Fed said that for every loaf of bread it takes out of the system 72 loafs of bread will disappear?

We must also understand that a lever transmits torque, it does not create more torque.

It is at this point of awareness that it becomes clear that to balance the equation, it is unavoidable that people are not going to get most or all of what they have been promised (austerity). It is at this point that the sober realization arises that we have to dramatically change our expectation of the future.

Credit: Allows trade of something for a promise. Regardless of whatever expectation that may exist, something has been traded or given for no service performed or product yet created. Simply, something has been traded for nothing.

Federal Reserve System: A group of secretly privately owned banks (which, logically were among those who lost all of their depositors money and most certainly compose the primary dealers), that control the global money supply by making more or less credit/money available. It is also supposed to regulate banks within its system.

Even if this system functioned as designed rather than what it has morphed into, it still reads: a subsidiary formed but not funded by member banks and sanctioned by government to lend money to corporations and member banks (to themselves) against strong collateral (which no other bank would touch). Meaning the assets they own are good, but nobody wants them (i.e. the assets are worthless). In essence, this gets those great and wonderful assets off corporation’s and member bank’s books at full value.

Today this subsidiary of the member banks (the banks that own the Fed), loans money to its parent banks to buy all sorts of debt (mostly government debt), then goes about removing that debt (asset) from its parent bank's balance sheet by buying it from them at full price, regardless of what it would have fetched in the market place.

At the most cursory glance, one begins to see how this farcically incestuous relationship would open the door to cronyism, political capture, monetary dominance, and serious abuses of public trust. Whether there is an awakening on the part of of the public is irrelevant. This system is failing. Its collapse will be messy.

There is no need to fret over debt or the monetary system, or the Feds economic and monetary “models”. There is no need to grouse about their manipulations. These things are destined to fail and are already doing so. What we will do in the aftermath of their complete failure, however, is probably of utmost importance."
 


Thank you, Harun, for an excellent start in Calling Things What They Really Are. Off the top of my head, here are two more:

Capitalism: in the U.S. and global economy, this is a cover-word for crony/State capitalism, in which the Central State (rather than the marketplace) chooses the winners and losers.

Growth: Heavily manipulated statistics that reflect the increasing dominance of crony/State capitalism, passed off as "growth" in the real, lived-in economy. Those crony cartels that are receiving the Federal Reserve's "free money" from quantitative easing (QE) are "growing," and everything that isn't receiving the Fed's "free money" is stagnating.

I am sure you can add your own list of "calling things what they really are."

 

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Wed, 01/15/2014 - 20:07 | 4335896 HedgeAccordingly
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SidewayZ with a upside skew with 1 quarter price fractures like clockwork http://hedge.ly/1cldY2g

Wed, 01/15/2014 - 20:11 | 4335912 qqqqtrader
qqqqtrader's picture

your what hurts?

Wed, 01/15/2014 - 20:15 | 4335924 DoChenRollingBearing
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It would be nice to get some truth telling around here.  From .fed and .gov.  I am noy holding my greath.

Even some QUIET truth would be nice...

Wed, 01/15/2014 - 20:18 | 4335940 CH1
CH1's picture

Government: Geo-stationary conquest.

Wed, 01/15/2014 - 20:44 | 4336043 SmackDaddy
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Previous article on catholic church proves this doesnt work in every situation.  For example, pederast (glad I had to look that up).  While technically correct, I prefer child butt fucking faggot.

Wed, 01/15/2014 - 22:51 | 4336532 NoDebt
NoDebt's picture

Now that we've studied the possible implications of all this truthiness.... how about we NOT call things what they are until after the next election?  

 

Sincerely,

Every single politician in DC

Wed, 01/15/2014 - 23:27 | 4336659 Greenskeeper_Carl
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And then after that election, how about we wait until after the next election, and then after that, how about we wait until....

Thu, 01/16/2014 - 08:24 | 4337299 Tall Tom
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Previous article on catholic church proves this doesnt work in every situation.  For example, pederast (glad I had to look that up).  While technically correct, I prefer child butt fucking faggot.

 

Isn't that just another name for "Central Banker" or "Politician"? Actually I don't prefer them at all. Personally I wish them death...a horrible death...preferably by crucifixtion...at halftime in the Super Bowl.

Wed, 01/15/2014 - 21:56 | 4336297 Keyser
Keyser's picture

Orwellian Doubletalk : Press secretary Jay Carney. 

Wed, 01/15/2014 - 22:32 | 4336441 Anusocracy
Anusocracy's picture

Voter: God's successful attempt at creating the perfect fool.

Wed, 01/15/2014 - 20:24 | 4335958 czardas
czardas's picture

I can possibly see a failure (I lean heavily toward a slow, controlled crumble over time - too many folks inside and outside the business too invested in the status quo).  I can also see the chorus, "THIS time we need more government oversight, more control, more rules and mandates and then everything will work fine."   The media will gladly spin this into a tale of "failed capitalism" and the result of not trusting in the benevolence of the State and its altruistic politicians who, of course, whose only concern is the "little guy". 

Wed, 01/15/2014 - 21:51 | 4336280 acetinker
acetinker's picture

You been here before, or are you just naturally intuitive?  It works fine until it doesn't.  Even then, it seems to levitate far longer than the pragmatists (like me) can comprehend.  Must be inertia, or sumpin'.

Wed, 01/15/2014 - 22:02 | 4336327 Keyser
Keyser's picture

I have the nagging feeling that the ax will fall swiftly, on a Friday afternoon. Not by some self inflicted wound, but via an outside source to push it over the cliff. With the sheer volume of US paper floating around the world, both in USD and Bonds, all it would take is one of our "allies" to dump them on the open market and the dominoes start falling. All while the numbnutz in DC have their thumbs up their collective asses. Once ALL of the gold travels from west to east, that giant swishing sound you hear will be the US economy flushing down the porcelain convenience. 

 

Wed, 01/15/2014 - 22:48 | 4336501 acetinker
acetinker's picture

Shades of Ross Perot.  Much appreciated.  The sky's been slowly falling on me and mine, though, and I've become tired of looking up.

Wed, 01/15/2014 - 22:47 | 4336517 acetinker
acetinker's picture

Shades of Ross Perot.  Much appreciated.  The sky's been slowly falling on me and mine, though, and I've become tired of looking up.

Wed, 01/15/2014 - 22:51 | 4336530 acetinker
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Why in the fuck are these comments showing up twice?  It's startin' to piss me off.

Thu, 01/16/2014 - 02:29 | 4337032 OldPhart
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Those show up twice when you double-click the 'save' button.  My nerves have me doing the same thing from time to time.

Thu, 01/16/2014 - 08:35 | 4337312 Tall Tom
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It is a side effect of the Psych Meds. Over time they give ya the tics.

Thu, 01/16/2014 - 01:36 | 4336967 swmnguy
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"czardas":  I tend to agree with you on the slow, controlled crumble outcome.  Predicting the timing is the tricky part.  We can all see the problem, the outcome, and its imminence. The wrench in the works is the abstraction.  If money is completely abstract, how can we say a thing which doesn't really exist has no value?  It's dividing by zero.  Since money is now whatever people believe it is, then who knows how long the charade can be maintained?  Until it can't any longer, of course.  But it's already gone on far longer than I ever expected.  No doubt it will continue to go on far longer than I think possible.  When it's all lies and fakery, how can one say, "That lie is one too many," and down it comes?  I don't think there will be any media spin of "failure" at all.  What's one more lie?  It'll be "brilliant success," not "failure."

Wed, 01/15/2014 - 23:08 | 4336570 Dr. Destructo
Dr. Destructo's picture

We call that "Insider Trading" on the outside. Though it's perfectly ethical for them to try and bullshit us out of our savings with fabricated numbers and overvalued garbage.

 

Wed, 01/15/2014 - 20:21 | 4335897 Say What Again
Say What Again's picture

The only place you'll hear unbiased news on TV is RT and Al Jazeera

http://www.zerohedge.com/news/2014-01-15/wednesday-humor-iran-has-incont...

Now that makes me as sad as the Gubner Christie

 

 

 

Speaking of Aljazeera, check this out...

Lack of trickle-down in West Virginia leaves poorest high and dry

http://america.aljazeera.com/articles/2014/1/15/income-inequalitycoalwes...

Gotta love the catchy headline.

Wed, 01/15/2014 - 20:25 | 4335966 czardas
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RT is to true journalism what Obama is to statesmanship. 

Wed, 01/15/2014 - 21:56 | 4336301 acetinker
acetinker's picture

Same could be said of any network.  Those things don't just pop up from organic demand.  Not anymore.

Wed, 01/15/2014 - 22:17 | 4336383 Keyser
Keyser's picture

Much like the neutered version of Al Jazeera in the US. 

Wed, 01/15/2014 - 20:53 | 4336077 ebworthen
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You mean Brian Williams on the NBC Nightly News isn't telling it like it is?

Next you'll tell me there is no Easter Bunny!

Wed, 01/15/2014 - 22:18 | 4336387 Keyser
Keyser's picture

Brian, much like Dear Leader, has a teleprompter. No need to think, they have someone else do that for them. 

Wed, 01/15/2014 - 20:12 | 4335915 dbTX
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But they said it would be different this time.

Wed, 01/15/2014 - 20:16 | 4335927 dick cheneys ghost
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CHS writes..........''I am sure you can add your own list of "calling things what they really are."

many people have been banned from ZH for 'calling things what they really are'..........just sayin

~~~~

Wed, 01/15/2014 - 21:43 | 4336250 Seize Mars
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~

Wed, 01/15/2014 - 22:19 | 4336394 Keyser
Keyser's picture

One doesn't pull on superman's cape without being banished to the nether regions of the ether. 

Wed, 01/15/2014 - 22:20 | 4336395 acetinker
acetinker's picture

Yeah, but another but-  If you insist on blaming a particular tribe for all the ills of the world, you are either intellectually lazy or simply hateful of a culture different from your own.

I found, for instance, francis_sawyer both entertaining and informative.  However, he suffered from the aforementioned hatefulness and intellectual laziness.  The dysfunction in leadership is simply too universal to be exclusively the fault of the joos.

I am well aware that there are a disproportionate of dual-citizenship individuals in positions of power in the western world, but what does that mean, really?  Is it the Jewish half, or the City/Vatican/DC half?

If I don't get banned for this view, ZH is still neutral.  If I do, you need to watch your ass, Dick.

Wed, 01/15/2014 - 23:36 | 4336687 Greenskeeper_Carl
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Unless he is just pissed off at this place about getting banned, why doesn't h just make up a gmail account and create another screen name. It took a long time of Jew bashing for them to actually ban him, after the rules about ethnic slurs he wa around a while. I admit the whole "Jews are responsible for every problem" could get a bit tiresome at times, but I did fond him pretty informative.

Wed, 01/15/2014 - 23:48 | 4336719 acetinker
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He didn't bash Jews.  He called them "cheesepopes".  Pretty sure ZH has the technology to identify IP addresses and cpu's.  Might not be as easy to reinvent yourself as you think.

Wed, 01/15/2014 - 20:20 | 4335948 Seasmoke
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Let's start with vigilante justice for Kelly Thomas. The cops must understand they need to put down their weapons and badges.

Wed, 01/15/2014 - 20:20 | 4335950 El Vaquero
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Bank Deposit: An unsecured personal loan. The bank can do whatever it wishes with the money. The money may not be returned (ironically, people pay for this “service”).

I really, really wish that people understood this and all of its implications.  But instead, we have sheep who think that banks are essential to life for some reason. 

Wed, 01/15/2014 - 20:26 | 4335967 logicalman
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When you put your 'money' in the bank, it becomes the property of the bank to do with it whatever it wishes, until you ask for it back.

It's only a matter of time, though, until they don't give it back even when you ask.

Wed, 01/15/2014 - 22:53 | 4336539 acetinker
acetinker's picture

b-cuz they don't have it?  Who knew?

Wed, 01/15/2014 - 20:32 | 4335989 dick cheneys ghost
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bingo.........banks are borrowers, not lenders....

and BTW,  banks should all have the same name, for instance 'Bank of Rothschild'...because they are all same thing, criminal organizations.....the sheeple have an ''illusion of choice'' when they drive down the street and see different banks and this is disgustingly wrong

Wed, 01/15/2014 - 20:33 | 4335998 El Vaquero
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And I might add: Fuck Bankers

Wed, 01/15/2014 - 23:44 | 4336708 Greenskeeper_Carl
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I have tried explaining that to people on several occasions. I get looked at like I am growing a third arm out of my forehead. Those that give it a thought point out that they have far less than the FDIC insured amount, to which I explain that the amount of money the FDIC has to do this is a tiny fraction of the amount of money that would be required to do so. Also, what would happen if 10% of the population decided they wanted their money back that they had on deposit, the whole system collapses. And then I get the "that could never happen here" line. To which I reply I bet the thought the same thing in Cyprus, which of course they have no clue bout either. Most people intentionally avoid knowing this kind of shit.

Thu, 01/16/2014 - 01:23 | 4336948 El Vaquero
El Vaquero's picture

Yeah, I sent out a copy of that Fed/FDIC/Other Co-Authors paper from last year that bluntly stated that there would be a bail-in in the US if there were another meltdown.  I broke some of it down, and explained the terms, including the gratuitous use of "unsecured creditor."  These are people who would have accused me of wearing tin-foil had the paper not had a .gov URL that they had to click on to get it.  There was no response.  I think that there is some willful ignorance with a lot of people who don't want to admit to themselves that the country that they used to love has gone to shit. 

Thu, 01/16/2014 - 03:46 | 4337105 Canoe Driver
Canoe Driver's picture

The use of "unsecured creditor" to describe a bank depositor is especially pernicious. The notion of a bank account has been that the obligation of the banker to depositor was higher than his obligation to general creditors. Otherwise, any creditor could seize the funds of a private depositor in a bank failure. Apparently, this was a horrifying prospect for TPTB, and so they trundle out the notion that the superiority of this obligation to depositors is abrogated when the general creditor is the government, supporting the bank in a bail-out. Effecively, this is an expansion of eminent domain. I suggest you all consider resisting it.

Wed, 01/15/2014 - 20:28 | 4335963 DOGGONE
DOGGONE's picture

Fellow Citizens: Your collective brainwashability is repulsive.
http://patrick.net/forum/?p=1236885

Wed, 01/15/2014 - 20:26 | 4335965 q99x2
q99x2's picture

I hereby officailly announce that the collapse is underway. In history, assuming that there is a history in the future (wait that's a mathematical formula...I'm not telling), anyway, the cave writings will state clearly that the collapse started in January 2014. The writings will also conclude that we were fotunate that Hillary Clinton, the Butcher of Benghazi, did not have a chance to be elected.

Wed, 01/15/2014 - 20:28 | 4335973 mobydick
mobydick's picture

It's called bending reality

Wed, 01/15/2014 - 20:29 | 4335980 WALLST8MY8BALL
WALLST8MY8BALL's picture

Credit Card - A bank created instrument to put you in debt.

Wed, 01/15/2014 - 20:43 | 4336040 GubbermintWorker
GubbermintWorker's picture

Not if you use it right. Pay off the balance every month and don't let the bastards charge you any fees. If merchants still want to eat the fees, let em. I g3et cash back on mine and use it to buy PM's.

Wed, 01/15/2014 - 21:05 | 4336120 GubbermintWorker
GubbermintWorker's picture

Okay, who ever down arrowed me, explain why. I'm starving the beast in my own way by not paying any CC fees or interest. It's up to the merchants to say fuck you. Some alreadhy do by giving a 3 o 4% discount for cash, and even more to starve the state sales tax beast.I can get up to a 10% discount from one of my local retailers by using cash. If they don't accept less for cash, I say "Charge it!"

Wed, 01/15/2014 - 22:28 | 4336422 Keyser
Keyser's picture

I also put everything and I mean everything on my CC's. I also pay them off every month. This nets me enough reward points for at least 2 round trip airline tickets annually anywhere in the country. Say what you will and down arrow me if you like, it's working the system.

 

Thu, 01/16/2014 - 01:28 | 4336956 swmnguy
swmnguy's picture

Doing that also gives you another 30 days to pay the bill, another party in the middle in case of fraud or other dispute, and the option to string out repayment (at a cost, perhaps steep) should TSHTF in your personal realm.

Thu, 01/16/2014 - 03:50 | 4337109 Canoe Driver
Canoe Driver's picture

Nothing wrong with it, Keyser, probably the only sane use for a credit card.

Thu, 01/16/2014 - 03:48 | 4337108 Canoe Driver
Canoe Driver's picture

down arrow for suggesting you get more than $0.44 per year in cash back.

Wed, 01/15/2014 - 20:53 | 4335994 sixsigma cygnus...
sixsigma cygnusatratus's picture

Constitution = Door mat for most politicians

Wed, 01/15/2014 - 20:36 | 4336008 Ban KKiller
Ban KKiller's picture

Wall Street Accounting = Any lie you need to prop up stock. 

Wed, 01/15/2014 - 20:40 | 4336025 CrashisOptimistic
CrashisOptimistic's picture

Bank Deleveraging = Borrower Default

Wed, 01/15/2014 - 20:41 | 4336030 CrashisOptimistic
CrashisOptimistic's picture

Earnings Growth = Decline in Shares Outstanding

Wed, 01/15/2014 - 20:41 | 4336033 starman
starman's picture

Happy New year,
The Federal government have announced today January 15th that the US economy is on track again!
Since January 1st 2014,
Macys closing 5 stores K Mart closed 6 Sears have closed 6 JC Penny 33
Targets 8 , HP "cutting costs" by 47 thousand employes, and Ford and GM will be cutting costs by 20%

Wed, 01/15/2014 - 20:42 | 4336034 CrashisOptimistic
CrashisOptimistic's picture

Shale Revolution = Liquid devoid of Diesel Fraction

Wed, 01/15/2014 - 20:45 | 4336042 CrashisOptimistic
CrashisOptimistic's picture

Recovery in New Single Family Home Sales = New SF Home Sales at 1960s levels with 50 million more people in the country

Wed, 01/15/2014 - 20:56 | 4336087 bunnyswanson
bunnyswanson's picture

http://www.forbes.com/sites/morganbrennan/2012/08/10/real-estate-tourism...

" Since the housing bust, foreign buyers have flooded the U.S. housing market, taking advantage of favorable exchange rates, weaker prices and, in some cases, record-low mortgage rates. Foreign nationals accounted for $82.5 billion, or 8.9%, of the $928 billion spent on U.S. residential real estate from April 2011 through March 2012, according a June survey from the National Association of Realtors. That was up 24% from $66.4 billion the previous year. More than 50% of sales over the past year occurred in just five states: Florida, California, Texas, Arizona and New York."

 

"Reasons for buying are vast and varied among the foreign buyers, as you'd expect, but it is agreed that universities are by far the biggest attraction to Chinese buyers. "For Chinese parents, the most important thing is education" says Cathy Zhao, a real estate broker in Maryland."

http://money.cnn.com/2013/07/08/real_estate/chinese-homebuyers/

Wed, 01/15/2014 - 21:07 | 4336125 CrashisOptimistic
CrashisOptimistic's picture

http://research.stlouisfed.org/fredgraph.png?g=7iv

 

How about in the future you actually do research rather than post bullshit?

Thu, 01/16/2014 - 05:52 | 4337189 mvsjcl
mvsjcl's picture

Forbs? Realtor.org? CNN? Are you shitting me?

Wed, 01/15/2014 - 20:48 | 4336061 ebworthen
ebworthen's picture

Federal Reserve = the biggest organized crime syndicate on the planet.

Wed, 01/15/2014 - 20:53 | 4336076 Ignatius
Ignatius's picture

Drone = Flying Killer Robot

Wed, 01/15/2014 - 20:57 | 4336093 Swarmee
Swarmee's picture

Here's my wish, stop calling me a fucking 'consumer' in all situations.
I am either a CITIZEN or a CUSTOMER depending on the topic of discussion.

A consumer is a mindless fuck which produces nothing of value and I resent that this term has taken over far and wide to refer to people in all situations.

Wed, 01/15/2014 - 21:22 | 4336182 Kreditanstalt
Kreditanstalt's picture

And a 'citizen' is a creation of some state, some government.  We are PEOPLE.

Wed, 01/15/2014 - 22:14 | 4336374 Swarmee
Swarmee's picture

Absolutely. But I would point out that a citizen is a special subset of people which connotes certain rights/obligations tied to the sovereign state of citizenship. So while it is true that all citizens are people, not all people are citizens of a particular country.

Thu, 01/16/2014 - 08:46 | 4337318 Tall Tom
Tall Tom's picture

A CONSUMER IS A DESTROYER. To consume means to destroy.

 

A Consumer Driven Economic Recovery is one that is driven to the DESTRUCTION of the Recovery. It is a very accurate term as the Government considers that you are destroyers of useable assets.

 

They are very careful about the adjectives which they use. It reveals the underlying attitude toward the citizens..

Thu, 01/16/2014 - 00:27 | 4336834 dexter_morgan
dexter_morgan's picture

NSA says you iz just a 'people', just like CONgress.

Wed, 01/15/2014 - 20:58 | 4336094 kchrisc
kchrisc's picture
Resolution #1: Let's Call Things What They Really Are In 2014

I'm all for that. Only need these few words:

Theft

Slavery

Murder

Fascism

Delusion

and my favorite, guillotine.

 

 

Wed, 01/15/2014 - 21:14 | 4336150 1stepcloser
1stepcloser's picture

Middle Class = Butthurt Zombie

Wed, 01/15/2014 - 21:21 | 4336170 Kreditanstalt
Kreditanstalt's picture

Mortgage interest deductibility, government employment, social security, medicare, medicaid, 999-week unemplyment 'insurance' and Bernanke's fake ZIRP interest rates = BAILOUTS.

"Serving in the military"?  =GOVERNMENT EMPLOYEE.

Wed, 01/15/2014 - 21:32 | 4336216 Bastiat
Bastiat's picture

 

Excellent! But you might have mentioned in this context:

"Today this subsidiary of the member banks (the banks that own the Fed), loans money to its parent banks to buy all sorts of debt (mostly government debt), then goes about removing that debt (asset) from its parent bank's balance sheet by buying it from them at full price, regardless of what it would have fetched in the market place."

that they buy those assets with money created out of thin air thus diluting the value of all USD held by anyone -- that's the real mind blower.

 

Wed, 01/15/2014 - 21:42 | 4336245 enloe creek
enloe creek's picture

the other day i traded 5 hrs of labor for a have a nice day and a driving lesson from an occifer of the raw

Wed, 01/15/2014 - 21:47 | 4336269 OC Sure
OC Sure's picture

Starting to call things what they really are is a necessary first step to working with this reality.

This is always the place to begin if one's purpose is to understand reality. The word 'this' is unnecessary. What other reality is there? From Aristotle's six treatise that integrate into his identification of Logic, his Categories is first as this is where and how we define our terms. Most importantly, these terms are not detached from reality since they are directly ascertained by our senses and then abstracted into our mind by words.

By not allowing our terms to be detached from reality then our analysis, interpretations, and topics discussed remain grounded. We are all then on the same page. By his means of logic, which all humans with senses and a conscious brain can immediately relate, he basically flipped the bird to Plato's mysticism; the nonsense of shadows within caves, no-things bringing things into being, illusions and delusions creating conclusions.

The status quo system is failing precisely because it has become so detached from reality. As the purchasing power of wage earners declines and they have to race faster just to fall behind slower they are forced with each paycheck to focus on the cold hard facts of reality as they determine their daily lives. When they see that it is the status quo that has run them over they get livid enough to flip their false authorities the bird and gain a better understanding of reality. Hopefully they will see that the status quo's aim is too have them misunderstand reality as their primary source of control. Defining the terms and giving specific examples of how the language is derived from the facts is intellectual ammunition to pass along to those who are confused in the caves of shadows. Your simple substitituion of goods and services for money speaks volumes.

"...there cannot be an intermediate between contradictories, but of one subject we must either affirm or deny any one predicate. This is clear in the first place, if we define what the true and the false are. To say of what is that it is not, or of what is not that it is, is false, while to say of what is that it is, and of what is not that it is not, is true:" -Aristotle

 

Wed, 01/15/2014 - 21:52 | 4336282 jballz
jballz's picture

 

 

Quantitaive Easing = Theft

Wed, 01/15/2014 - 22:37 | 4336467 lakecity55
lakecity55's picture

Barry=Puppet

Wed, 01/15/2014 - 22:01 | 4336319 ghostzapper
ghostzapper's picture

Job growth = statistical bullshit resulting from millions of people throwing in the towel yet gobbled up like free appetizers by whores and scam artists at venues like CNBCheerleaders

Wed, 01/15/2014 - 22:02 | 4336328 logicalman
logicalman's picture

Let's call things what they really are.................

FUCKED UP!

Wed, 01/15/2014 - 22:34 | 4336403 economessed
economessed's picture

I love this suggestion, and pledge to help others achieve clarity in their communication during 2014.  Some ideas to add to the emerging lexicon of truth:

College Education:  A faith-based concept driven by profit-seeking corporations who exchange a brand promise (i.e. college degree) and a lifestyle idea for "money".  The racket is based on the premise that colleges have a patent on knowledge, and unless a student succumbs to decades of debt servitude, (s)he will be relinquished to a life of utter fiscal and intellectual poverty.

Journalism:  A profession that employs friends of politicians and corporations to distribute their agendas to consumers (see earlier definitions). 

Professional Athlete:  An ambulatory repository for chemical compounds. 

Advertising:  A method of bringing awareness to your substantial personal inadequacies.

Home Owner:  An individual who faces the continual risk of losing his private property unless he pays the ongoing extortion fees levied by local governments.  These fees are collected by local governments in order to pay employees who seek new ways of increasing the fees on private property.

Political Parties:  A conceptual notion nourished by Journalists claiming there are divergent ideas over the current state of national affairs.

Organized religion:  Groups assembled to raise money for god, because everyone knows god needs more "money."

National Defense:  Any one of a bazillion reasons why the constitution must be destroyed, and your personal liberties must be sacrificed.

Patriot:  Any person who wears one of those little metallic American flag pins (made in China) on their lapel, or anyone who does anything for reasons of National Defense (that can not be disclosed to you for any reason by court order).

 

Thu, 01/16/2014 - 01:30 | 4336960 swmnguy
swmnguy's picture

For far too many, College Education = employee-paid employee training.

Wed, 01/15/2014 - 22:22 | 4336405 TheRideNeverEnds
TheRideNeverEnds's picture

This is all well and good but breaking above 2000 this year is a given.  The only question is will it happen in the first quarter or the second?  And I guess also will we close 2014 above 2500 or will we have to wait till 2015 for that party? 

Wed, 01/15/2014 - 23:21 | 4336640 Greenskeeper_Carl
Greenskeeper_Carl's picture

Theft- intentionally eroding the purchasing power of all people eac year, to the point where the dollar has lost 95% of its value.

Wed, 01/15/2014 - 23:35 | 4336681 22winmag
22winmag's picture

All time record gun sales = preparing to fend for yourself and yours.

Thu, 01/16/2014 - 00:36 | 4336853 Gamma735
Gamma735's picture

First, they fudge the truth.  Second, they distort the truth through language manipulation and when at last that no longer works, they criminalize the truth.   Who are they? Most would say the government, but those that know the truth realize it is the central banking cartel.

Thu, 01/16/2014 - 01:44 | 4336981 icanhasbailout
icanhasbailout's picture

The correct word for fractional reserve banking would be "counterfeiting". All FRB is, is a legal currency counterfeiting scheme.

Thu, 01/16/2014 - 03:01 | 4337068 OldPhart
OldPhart's picture

Bank: an institution that you loan money to, that can do whatever it wants with the money, only keeping 10% available from all the loans it received to fund expected minor payments, and under no obligation to return your money to you.

Thu, 01/16/2014 - 03:15 | 4337076 malek
malek's picture

A very good post.
If only Harun I. hadn't fallen into the energy fallacy trap:

work is nothing more than an exchange of energy

Completely correct if we're talking physical terms.
However many people (including Harun it seems) fail to take into account that the amount of physical work to produce 72 chairs is not fixed. It can be reduced by new ideas and inventions.
Therefore the laws of thermodynamics are only meaningful in few fields, such as transportation.

Thu, 01/16/2014 - 08:57 | 4337326 Tall Tom
Tall Tom's picture

Gold = Money

Recovery = Depression

Dollars = Currency

Inflation, Taxation = Theft

Bipartisan Agreement = You are Fucked.

Election = Selection

Terrorism = Blanket Excuse

Spending Cuts = Buget Increases

Debt = Destruction

Freedom = Tyranny

 

Mon, 01/27/2014 - 17:04 | 4372481 HVGE7
HVGE7's picture

Bernanke : Crook who left the ship before the storm

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