Guest Post: The Merger Of State And Commerce

Tyler Durden's picture

Submitted by Stephen Merrill, editor of the Alaska Freedom News. He served in the Navy Judge Advocate General’s Corps and as a Navy Reserve Intelligence Officer

The Merger of State and Commerce

The Leviathan’s Thumb

Many observers of the US economy have come to the realization there are now few truly free markets left within 21st Century Western capitalism. 

It seems all investments today are controlled to unfair advantage in some large way by the governments and financial firms operating the markets, especially the market in money itself.  The newly-invented powers of the central banks to buy anything, to fund any bailout, can reach into any area of the economy, either to grant large favors or to inflict great pain, typically with the cooperation of the too-big-to-jail banks that own the Federal Reserve and its policies.

The precious metals market is a good example of the Fed and its henchmen inflicting pain.  The Western paper gold market has been the long-used tool of Leviathan to bludgeon the world’s only true money.

In one of the Fed’s generous ways the second US housing bubble has been inflated from a river of counterfeit money and a wet-blanket of negative interest rates.  The QE Forever giveaway to the Fed’s banker friends through buying toxic mortgages at full price charges on.

A Swinging Pendulum

It is nothing at all new for a nation to defy the basic economic principle that allows for ever increasing wealth benefiting all layers of society.  In a word it is liberty. 

The underlying concepts of capitalism were best set out by British author Adam Smith.  Smith postulated it is the magic of the invisible hand of a free market that best distributes economic resources and best energizes the people and industry and innovation.   Smith’s signature work The Wealth of Nations was written well over two hundred years ago. 

The magic of Smith’s free market proved to be the model for the first sustained, rapid economic growth in global history, since at least the early Roman Empire.  It seems, whatever its academic merit in Ivy League halls, general economic liberty has clearly proven to be the best way to serve all society, given how humans themselves are created, as individuals each seeking a good life and secure family.

European medieval economics between the Romans and  the 18th Century Industrial Revolution showed how the vulture practices of monarchs and nobility eliminated even the hope for economic growth or of ever fostering a middle-class, while stifling innovation at every turn.  The private institutions empowered by law in that time were the lesser nobility and the Catholic Church.

With the Enlightenment period led by writers like Adam Smith, John Locke and Edmund Burke, the grip of elitism in commerce in Britain and France and beyond began to be replaced by private enterprise and capital quite completely.   Individual rewards for productivity and innovation and risk-taking became the driving force for economic decision-making, no longer centered on the whim of the lord or his knights as things have largely returned to in today’s fascist economy.   It was the belief in bottom-up capitalism in its rawest form. 

The Europeans had suddenly become a juggernaut of innovation and growth after many centuries of stagnation.  The United States later in the cycle became the signal success of free-market capitalism.

In the wake of this revolution in society, the 19th Century saw the fastest economic growth in human history, all fueled by economic liberty.  For the first time a large prosperous middle-class of workers came into existence in many countries, no longer just the rulers lording over the peasants. 

The same economic revolution is happening across most of Asia during our 20th and 21st Centuries.  Just one example, tiny city-state Singapore has proven once again the amazing achievements for all citizens from unbridled capitalism.  Singapore has risen from post-WWII devastation to the top of the world economic ladder without ever asking for or accepting foreign aid from any nation.  Singapore is the heir of Ancient Athens, the first free city, the founder of monetary silver.

Adam Smith’s Lassie Faire capitalism has become though the ancient, barbaric relic in our modern fiat money Western world economy, especially in America.  No living American has experienced an economic system that can be fairly described as general capitalism. 

The US has now what is called a “mixed economy” involving many “public-private partnerships” and “professional self-regulation” and “social programs”.  These are modern phrases that explain the slow return to feudal ways.

Monopolies of political power or of markets yield huge profits for the few over generations without much having to change a thing.  Monopoly power is a distant mirror of feudal nobility.  It operates in both the public and the private sector and so often in direct combination with each other.  Power not only corrupts: power wins, power stagnates, power destroys.

The Money-Changers Above the Law

Then there are the market traders in a fiat, debt-fueled world.

Whenever free markets can be conned, fixed or disrupted there is a lot of money to be made in the process. There always has been short-term gain for those insiders who manage to fleece the public by harming the secure, uninterrupted flow of goods and services and finance and information. 

Most economic transactions, at their base, rely on a large element of trust.  Deceit punishes trust to self-advantage.  Deceit harms the economic market itself, beyond the impact of the con-jobs in play.  A marketplace chocked with deceit is a fraud itself, the absence of the rule of law.  Only the law can fully deal with deceit in order to allow a free marketplace to even exist. 

The more hidden processes used by modern bankers and traders to obtain unearned wealth is little different in its societal effects than robbing a convenience store is, or robbing hundreds of thousands of convenience stores actually, given the numbers typically involved in white collar crime at the highest levels.

The counterfeiting of the private-public central banks, that strangles the middle class to further enrich the wealthy, is daily theft on the grandest scale.  Counterfeiting by central banks now affects almost every investment decision. 

In the end, it is little different than the peasants always giving a one-third share of their crops to the royal duke just because the King says so.

The Rule of the Cartels on Main Street

This collectivist syndrome in the United States is far from limited to the Congress-buying Wall Street cartel and the subject of finance.  The same general form of corruption permeates an increasing number of professions and businesses.  Even tattoo artists and legal process servers have earned their guild status by law in many states, hoping to, like others do, choke off low-price competition in their field.

The national health-care industry seems to have become almost a single cartel empowered by federal spending.  The Obamacare spending bonanza is designed to pay off every big healthcare interest in sight and the health-insurance industry to boot.

The provision of education in the United States has long been the fiefdom of rigged markets and systems. 

The socialism model rules primary and secondary education almost alone.  Even 40-years of abject failure in effectively educating students has failed to dent the nationwide taxpayer spending spree for this state-imposed monopoly rule in the most crucial work there is for society.  Alaskans today pay over $18,000 per student for K-12 education.  Test scores are well below those of students from some third-world countries.

A mix of public and private institutions rule US higher education as a single-minded oligarchy.  This cartel is primarily empowered by federal spending in the form of student loans.  The younger generations are saddled now with a trillion dollar in debt to repay college tuition and fees that no longer deliver a good job.

The lawyer guild has controlled its market for professional services in every state in the union for generations.  Market-fixing remains one of the central goals of bar association rules:  ditto for the physician guild.

Part private business organization, part government institution, part professional guild, part bank regulator, entirely self-interested, the creature from Jekyll Island, the Federal Reserve, has become the go to mechanism for replacing free markets with aristocratic privilege.  He who issues the money controls the nation the phrase goes.

The Unifying Force

But the ultimate overarching rigged system in the US is the effective monopoly by two private political cartels sharing the same basic agenda, the Democratic Party and the Republican Party.  As a consequence of these two faces of modern fascism, the nation and its liberty has been for sale for more than two generations now.

This welfare-warfare party, one bent on ever expanding centralized power, has owned the Congress and most of the Presidents going back to WWI and the founding of the Federal Reserve.  The success in keeping the “two-party system” in place has had far more to do with the special privileges granted by law to Democratic and Republican candidates than to any good reason for a lack of meaningful political competition.

What is the fundamental error of governance made in all of this modern injustice? 

It is the practice of the government surrendering open elections and free markets to officially anointed regulatory systems that then form an unchallengeable oligopoly within their bailiwick.  

In the case of public regulation rather than a guild system, the regulated industry invariably become the effective master of the industry regulators, like Democrats and Republicans have for instance in US politics.  Within any regulated business, the temptation of well-heeled collegiality from industry always wins over government regulators eventually or, more often, the people that appoint the regulators. 

With professional guilds in power its officials take over entirely for the government in controlling the business and its participants.  Professional guilds as a rule disconnect their own disciplinary code and market-rigging from the courts as much as possible, the place where everyone else is required to go for such matters.

Self-regulation for a profession invariably becomes mostly a program for less competition for guild members.  It freezes the present elite in their power and position, a never ending goal of humanity it seems.

In a wider sense, the officially anointed protector of the public safety, whether it is the state bureaucrat or a private guild official, over time becomes an enabler of reduced accountability for wrongdoing, a way to keep standards low for the industry or service by locking out competition and even the law, to the extent possible.

The US economy has regressed to feudal ways like these in such force that a variety of private guilds, cartels, unions and oligopolies exercise, officially or in practice, many of the powers of government itself, especially those powers assumed by but never granted by a constitution to the government.  It has all become a part of the “the law”.

The Revolution Looms Anew

Today’s economic model was best summed up by dictator Benito Mussolini in one short sentence: “Fascism … is the perfect merger of power between the corporations and the state”. 

But tyranny also has its life-cycle within the balance between the past and the future.  Once the past becomes far too much of a millstone for the future generations to carry any longer, governments fall and debt and servitude recede. 

Empires can fall largely without violence and allow a new, freer system to emerge, as most of the satellite states of the Soviet Union achieved.   Or the legacy of fallen empire becomes violent chaos followed by renewed oppression, like the French Revolution.

This bottom-up style revolution is happening to nations across our 21st Century.  The future lies in the balance.  The bell tolls for all Western nations, too.

So, in the United States, it seems, liberty will have its chance again before too long.

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SilverDOG's picture

Tell us something we do not know

Motorhead's picture

And he's an MI officer...I wonder if he's buds with Simon Black.

SafelyGraze's picture

and kindly stand the hell up when we play the anthem, dammit

unless you want to take one for the team

http://www.jstor.org/discover/10.2307/2146574?uid=2&uid=4&sid=2110345498...

 

jeff montanye's picture

many points are well-taken in the post above.  however, imo, it is both true and useful to note that government can help or hurt free markets and not just by not doing or doing evil.  the reforms of teddy roosevelt such as pure food and drug laws and anti-trust; good government-provided education (alaska notwithstanding) and basic research funding; consumer information requirements such as truth in labeling, lending and nutrition information; and the internet, which was government developed, are some.  the increasingly horrific direction taken by the federal government in the last few decades makes this harder to remember or imagine.

the single greatest government contribution that would benefit free markets now, and this is of the stop doing evil variety, is the reform of the campaign contribution laws.

p.s. that quotation from mussolini, while, imo, fairly accurately describing the fascism of today's world, is not actually his.  http://blog.skepticallibertarian.com/2013/02/07/fake-quote-files-mussoli...

"The problem with quotes from the internet is it is hard to verify their authenticity"-- Abraham Lincoln..

logicalman's picture

I'm not sure most of the mind-controlled sheople are ready for liberty and freedom.

Too many seem to be incapable of making decisions for themselves and need a 'leader' to do the job.

Doesn't bode well for the future, IMHO

NoDebt's picture

I think the change/fall of the system he (fairly correctly) describes is a lot further off than he might believe.  Centralized planning/fascism/Neo-feudalism is in it's ascendancy, not it's decline.  Look how long it lasted last time.

illyia's picture

I completely agree, NoDebt. We think it must fall over now because we can clearly see it tottering and weaving. We know it's insane and cannot last. But the PTB will use any and every excuse and/or reason to keep the ship of  fools afloat. If only for the obvious - and legit reason - that the alternative may be terribly messy and dangerous and is definitely unknown....

Uncertainty..... Oooo.... Scary....

The founders would be disgusted.

 

Dr. Destructo's picture

Pretty much.

In school we learned how to be subservient non-thinkers, and those that displayed any leadership traits were diagnosed with ADD and drugged into submission.

I personally don't look for any positions of leadership, but usually what happens is I just use my own initative to do my own thing and people end up following me. The sheeple lack initiative and they always want to get approval for any sort of action whatsoever.

Fuck approval -the people know what needs to be done, so why not get to it?

 

Urban Redneck's picture

I prefer "leaders" that look like this:

http://historylink101.com/ww2_color/WorldWarIIConcentrationCamp/PICT0618...

Or for the more politically correct and child friendly pictures of what the sheeple (allbethem commie sheeple) did to Mussolini:

http://www.custermen.com/ItalyWW2/ILDUCE/Mussolini.htm

Caviar Emptor's picture

Perhaps there was more economic freedom during the caveman period. No governments existed at that time, and the invisible hand of the free market was at work.

Keeping a society from braking up into competing gangs is the role of government.

Motorhead's picture

But what if governments are themselves competing gangs?

logicalman's picture

What do you mean 'what if'

akak's picture

There is no "if" in that statement of fact.

Anusocracy's picture

"Perhaps there was more economic freedom during the caveman period."

Not at all. The alpha-male took what he wanted, although occasionally he had to settle for what he could get. Same as we have currently with the 'alpha-male' called government. And there was no such thing as a free market, just as there isn't one now.

Might makes right is straight from the animal world. Virtually none of the so-called humans are actually human, like virtually none of the so-called Christians are actually Christian.

Peter Pan's picture

Big business and government is a mutually parasitic partnership with the only difference being that they do not feed off each other but off those parts of the system they do not own, much like the two lions and the lamb deciding on what to have for dinner.

In the end they both fail because there is nothing left for them to devour and they inevitably turn on each other unless the sheep spontaneously break into a stampede of either bank runs, civil disobedience or outright violence for which the support of police and army is helpful.

There is a growing consciousness due to the internet but even that could well be shutoff with some contrived reason gven.

It is always said that these cowards will seek refuge by initiating wars and that to me is the greatest fear.

swmnguy's picture

The only thing in this article I could dispute is the reference to "Socialism."  As the author actually points out in the rest of the article, nothing we see in the USA is "Socialism."  It is, however, Fascism.  The distinction is very important.  I know for some weird reason we in the US react more negatively to what we call "Socialism" than to Fascism, but that is due to our conditioning, not because Fascism is so much more preferable than Socialism.  But our welfare and education programs are not Socialist in the least.  They are fascist.

As for the rest of the piece, yeah, nothing we didn't already know.  But not bad weekend reading. 

We in the US have been lucky enough to keep our notion that government works and we have a voice for a lot longer than most people.  This has allowed the government/corporate nexus remarkable leeway.  As time goes on, however, and reality becomes more and more impossible to reconcile with our national cultural mythology, we'll become more like people in other countries who keep up on the official mythology, but live their lives knowing reality is something quite different, and when push comes to shove, they need to respond to actual reality and not the mythology.  Eventually if the stretch becomes to wide to straddle, one day just nobody shows up, like happened to the Soviet Union.  Or the government/corporate entity is only given the lip-service and tithing it requires, while the rest of us do what we have to do to get on in despite. 

Kirk2NCC1701's picture

It is not Fascism either.  In Fascism there is still a Middle Class.

It is FEUDALISM 2.0.  Where you have the Elite, their Military, the Sheriff (of Nottingham) do as they please, the Merchant Class, the Money Changers, and the Church who all have power and influence.  The MSM is the modern-day Church.  Then you have the Feudal Serfs, who are taxed at will (fiat), mistreated, tortured, killed. Are we not taxed at will -- via levels of taxes, fees, licenses, permits, tags, etc, etc?  Gee, that sounds familiar.

Wealth and power was passed from one generation to the next.  Today this happens via corporate shares and leveraged control.  People sit on multiple company 'Boards' like aristocrats.

The people who ruled Europe under Feudalism lasted a Thousand years -- a fuck of lot longer than dumb-ass Mussolini.  They formed formal and informal structures over the centuries, infiltrated and took over the Guilds and now run the Secret Societies that the Guilds morphed into.  Well, now, after being underground for 100 years, their descendants are back in full force.  Even the Bush clan considers itself to have aristocratic roots.  Then there is the 400 Club, the club of the 400 richest US families. 

Wealth is being "transferred" (stolen!) via worthless bits of fiat paper being created out of thin air (bonds, currency, stocks and derivatives), and swapped for REAL assets:  Commodities, Land, Factories, Minerals and Resources, etc.  The Middle Class is vanishing, the Elite are re-emerging.  And when they have enough of these REAL assets, they can and they WILL trash the currency and offer a new "solution" that will emerge out of the Crisis & Chaos:  feudal rule.  Because democracy is too messy and most people are too lazy and uninformed -- whereas they are not -- and the modern world needs solutions for which they are in the best position to come up with.  Officially these will be "temporary" measures.  That will be their 'story', and the Sheeple will eat it up, thanks to the modern churches of the MSM.  But we all know what happened to other "temporary" measures, like taxes for example.

It's FEUDALISM, baby. 2.0.

disabledvet's picture

you have to replace the Church with "the Media" and then you pretty much have it right.

the problem of course is that you didn't really have "Banking" back in the Middle Ages either...let alone the type of Banking we have today.

It's hard to call that system "feudalisitic" because the Banker really doesn't want a claim on your crops, your land, your car, etc...

What he wants is claims on Government...the bigger the better.
Got an entitlement plan with no way to pay for it?
No problem.

The flip side of this of course is a massive energy boom.
Those are liquidity providers and allows for the State to issue debt at very low rates of interest. "Fascism doesn't like this." This means very large public works projects can be built out that in theory can "pay for themselves" (Dams, highways, canals, airports, an electrical grid, pipelines, water authorities, you name it.)

Of course this requires an enormous amount of integrity in Government.
If everyone is just stealing then you lose the money period...and the largesse now becomes a liability...not an asset.

http://www.youtube.com/watch?v=0APF3SO9tqE

swmnguy's picture

Excellent post.  I agree.  Some days it looks more to me like Fascism, but the Feudal aspects gaining dominance in our society are undeniable.

KickIce's picture

It's feudalism if you tow the company line but will quickly turn to fascism if you don't.

 

BTW, excellent post kirk.

oldschool's picture

Good point, but feudalism 2.0 looks like fascist feudalism.

aphlaque_duck's picture

Looters go by various names, but the legal systems they cook up are only superficially different. All power is same: armed collectives claiming what they did not earn. The only acceptable use of force is the defense of individual rights.

ZeroFreedom's picture

Excellent article that sums up the issues with our economy and politics. Thought we fought a war to defeat fascisim but in the end they have won.

EconomicGenocide's picture

The world fought to defeat Nazism only now to be enslaved by Zionism!

lakecity55's picture

Zionists created commies and fascists, or Reds and NAZIs.

 

 

One Tribe to Rule them All
One Fiat to Bind Them

Mr Giggles's picture

Look on the bright side, which soverign is gona play.

Force works somada time.

Can the USSA win a war or do they just blow sh1t up.

johny2's picture

Article mentions French revolution financed by the banking families, who got central bank in return, 214 years ago. The Socialist party of the Russia held its congress in London and Brussels 110, ending with centralised power in Russia and later Soviet Union. The FED was created by the banking families in secrecy 101 years ago, getting USA under control.

Too many revolutions, and too little evolution.

Prisoners_dilemna's picture

I hope you continue to contribute to ZH!!

While your article may not be what we want... (Gold hits $60,000/oz,  lots of chart porn, Bummer slips during a selfie and has a wardrobe malfunction)

Your article is what we need... (another re-iteration of the concepts of Liberty and the evils of the state, for the benefit of newly awaken and old alike)

 

As far as I'm concerned only one topic (our creator the ineffible) is more worthy of our thoughts and attention than Liberty.

Excellent choice of topic and I look forward to reading more of your thoughts. Even if I'VE HEARD IT HUNDREDS OF TIMES, there are plenty of others who haven't.

The blessings of liberty must be shouted from the rooftops. I'm glad we have your voice as part of the choir!!

 

 

 

lakecity55's picture

"Give me Liberty and give me Gold."*

LC55

*At an unmanipulated 'price'

 

midtowng's picture

I really do wish Americans would learn the definitions of words like "socialism" and "fascism". If they did they would realize that the words are very different.

swmnguy's picture

In modern US usage, "Socialism" means either "A situation in which somebody I don't approve of got something good I don't think they deserve," or it's used as a non-specific expletive meaning vaguely, "Something in opposition to everything we consider good."

"Fascism," on the other hand, is something which doesn't exist anymore because we killed it when we singlehandedly defeated Germany and Japan in WWII.  The term is further meaningless to people currently about 60 years old because lazy, smelly dope-smelling 20 year-old hippies in the late 1960s and 1970s called "Fascist" everyone who wanted them to get haircuts, showers, decent clothes and a lifelong job.

So to blobbing-up Americanismists, "Socialist Fascism" is a perfectly logical description of...something we don't like because we feel that we're paying in more than we get out.  "Islamo-Fascism" means Muslims.  And a high-school football coach is still probably a Fascist.  At least we're on-target once in a while.

 

Kobe Beef's picture

Orwell nailed it decades ago: Oligarchical Collectivism. He was writing about the future. They have evolved more sophisticated approaches to achieve domination and are not bound by the ideologically orthodox political taxonomies of the past.

The Oligarchs will use elements of feudalism, fascism, or socialism as it suits their needs. Furthermore, they can use any of these labels to divide their enemies, or sidetrack them into hairsplitting disputes over semantics. They don't care about labels, only control.

“Now I will tell you the answer to my question. It is this. The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power, pure power. What pure power means you will understand presently. We are different from the oligarchies of the past in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just around the corner there lay a paradise where human beings would be free and equal. We are not like that. We know what no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power. Now you begin to understand me.”

--George Orwell, 1984

 

JR's picture

Absolutely great article.

The future of American business is being pushed out on a limb. And it will collapse because there’s no economic foundation to support it.

Why? A willing U.S. Congress, totally bought and paid for by the international printers and owners of the world reserve fiat currency, sold out America and her native-born people to a global kleptocracy.

As a result, America’s middle class will no longer have the money to buy, i.e., to consume the fruits of its labor. At the same time, her traitorous leaders have worked hand in glove with the globalists for amnesty for millions more poor, unskilled, welfare-taking, job-destroying, socialist-voting illegal immigrants to displace even more Americans and to lower even further their hard-won standard of living.

America’s leadership is pond scum.  

And all it took for Congress and the bankers on Wall to rake in their millions, billions and dollar-boggling bonuses was the destruction of the greatest economic miracle on earth – America. All it took for these traitors to operate was the gutting of America via legislation and subterfuge… They did it by designating the American nation the enemy and engaging privateers to outsource and thereby seize her wealth from the 1980s onward by corporate “downsizing,” “streamlining,” “hostile merging and takeovers,” "offshoring” and "globalization" that eliminated whole levels of middle and upper management, not to mention the well-paying manufacturing jobs that employed and built America. 

Now, the cold facts are in, the cold result that from the 1990s on, salaries in America have barely kept up with the cost of living and taxes, according to Fortune magazine, continuing downward even at this minute while the rich get richer via their money-control over America and the middle class gets poorer via economic treason.

It's ironic that on the eve of the 44th annual World Economic Forum in Davos where the world’s top financial autocrats and richest kleptocrats met to “reshape the world,” the key topic was to be the ever widening income gap between the rich and the poor.

Wrote Keith Johnson for AFP, “Although income inequality topped the list of WEF’s concerns at the beginning of the conference, enthusiasm slowly fizzled out as the days progressed” and “the gravity of those words seemed to fade into the background as lavish celebrations of greed and avarice took center stage.

“Once ‘the conference was in full swing, few people talked, and even fewer seemed to care, about inequality. Indeed, they appeared to be living it, loving it and laughing about it,’ wrote The Daily Beast journalist Christopher Dickey, who added: ‘The consensus among the rich guys I talked to (most of whom had left in their chauffeur-driven Audis and private jets on Friday), was that Davos this year was just the way it should be: a place to make more deals face to face with more people much faster than they could anywhere else—then spend a few hours on the slopes or taking in the esoteric offerings on the conference agenda, like Goldie Hawn talking about meditation. “I like to improve my mind,” one influential American CEO told me.’”

http://americanfreepress.net/?p=15423

A Lunatic's picture

Bullshit by any other name is still bullshit. And I've had about enough.....

TrustWho's picture

"In the wake of this revolution in society, the 19th Century saw the fastest economic growth in human history, all fueled by economic liberty." 

19th century also saw a jump in energy consumption per person with coal. Energy's correlation to GDP should never be discounted.

the grateful unemployed's picture

and you could say that one man's economic liberty is another man's economic policy aimed at subsidizing growth at the user level. policy tools are at the discretion of the government policy makers, always

Offthebeach's picture

Like fracking, the coal was always there, but whrn you are a lord, what's calling for the picturesque locals to get more wood for the master's manse.

Liberation from exploitative paternslism allowed more brain to mass solve countless pratical problems, which the physical labor class is better at. Thus mass, cheap coal came to heat the laborers home, freeing them from the hours of wood or peat gathering.

Complex problems need flexible masses solving countless problems and abandoning descovered solutions when a new better solution presents and proves itself.

Old solutions are only kept by mal investors who want the state to rescue their investment. Thus retarding progress. So we are today, much slower in casting off dead (GM) malinvestments.

Gromit's picture

The period of laissez faire capitalism was coupled with a franchise restricted to male propertied classes.

With every adult voting, we now have an effective alliance between the very rich and very poor, squeezing out the productive middle class.

What is the catalyst for change? 

Kobe Beef's picture

Steve Sailer calls it the High-Low Strategy. Kleptocracy Above, Lootarchy Below. The Middle Class trapped between the jaws of these predators and parasites.

At the individual level, presenting as small a target as possible, and engaging in noncompliance will work. At a larger level, the catalyst for change will be squad and platoon-based elements engaging and eliminating pressure points and high-value targets. Whether legal, non-violent, or energetic means are chosen, get your team together and identify a salient target. You are the catalyst.

the grateful unemployed's picture

all economies grow by producing things which aren't needed. the fasicist economy is slightly reactionary in that respect, growing military spending there is no need for whatsoever (a faux war against faux terrorists who our government funds in order to continue the illusion) the next cold war is them versus us. it hardly matters which ISM it is, the result is a status quo bureaucracy. and like all excess government spending, it crowds out private business.

ejmoosa's picture

"Even tattoo artists and legal process servers have earned their guild status by law in many states, hoping to, like others do, choke off low-price competition in their field."

 

That's the least of the problem.  What happens when you have a "guild"?  Those within it find that they have an ever shrinking range of functions and operations.  The Guild Managers/Law Makers begin restricting what is customary and acceptable.  Innovation becomes non-existent.

Our entire nation, once the proud leaders of innovation around the world, have been hemmed in by a never ending series of rules and regulations.  

Not only can you not bring the great discovery to market, you cannot attempt the experiments that lead you to the invention.

pupdog1's picture

If you've seen the inhabitants of Alaska, then you understand the school test scores.

Jack Burton's picture

I could not have said it better myself. I wish people, especially self proclaimed conservative free market advocates, and I am one, would accept that today's US economy is rigged, from top to bottom, the fix is in. I knew this for certain when the central bank, i.e. the Fed, conspired to lower interest rates to zero, even to effective negative. Savers, the foundation of capitalism and free markets, were destroyed and robbed of hundreds of billions of interest due on their deposited savings and other fixed vehicles. The conservative American is the worker who works and consumes less than they produce, they save the balance and allow their money to be used to fuel business and small business via loans to promote job creation and production. The principle is simple, YET, the Fed,owned by bankers, robbed the heart of a free nation, the workers and savers. The banks pocketed the hundreds in billions they were saved in interest payouts. This was all an attempt to force savers into the stock market where prices would thus be juiced upwards and asset holders would profit, and this is just what has happened. When is it government's business to force savers out of saving and into speculation. If you have been screwed by the Fed, raise your hand. Mine is up!

I suggest a close look at productivity, income growth and asset prices. If you look carefully you will see workers screwed to the wall, and speculators rewarded by the Fed and Government manipulation of interest rates. There is no market, their is only fascism that is designed for the 1% to profit. That this is a fact is something even the most foolish believer must know. I do not understand America's conservatives who supprt coporate power, the rigged markets and the war machine. What really is conservative about that? Obama, Bushs, Clinton have worked together as if in the same party to promote fiat, central bank power, war and corporate fascism. They have won, victory is theirs.

In a world of Fiat, Central Bank Power, Corporate Capture of Government and the War Mongers and War Profiteers running rampant, we little people are just plain fucked.

wolfen's picture

I prefer the term "harvested" to fucked. At least the latter can be pleasant.

Jack Burton's picture

I agree, I also like the word "harvested". Like Goldman Sachs harvests the fruits of Fiat Dollars.

lakecity55's picture

Haha, they have a Fiat farm, a la Zappa's Dental floss farm.

ThroxxOfVron's picture

It really IS a harvest.

Debt is cultivated in the spring.

Debt grows in the summer.

Debt matures in the autumn.

Debt is reaped in the ( K ) wonter.

The Debt Cycle of the Bankers is in fact merely a derivation/evolution of the classic and ancient agricultural script.

Modern Debt Cycles are very much engineered in a manner similar to the modern large-scale scientificly managed agricultural schemes.

The logic and intent of the proponenets of the Agriculturally Derivative Monetary Policy espoused by the FED was well understood and known when the FED was instituted:

 

http://en.wikipedia.org/wiki/Charles_August_Lindbergh

"

  • "This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President Woodrow Wilson signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."[6]
Also quoted as:
    • "This Act establishes the most gigantic trust on Earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized, the people may not know it immediately but the day of reckoning is only a few years removed.... The worst legislative crime of the ages is perpetrated by this banking bill."[citation needed]
  • "A radical is one who speaks the truth."[6]
  • "The Aldrich Plan is the Wall Street Plan. It means another panic, if necessary, to intimidate the people. Aldrich, paid by the government to represent the people, proposes a plan for the trusts instead." - The Aldrich Plan (History of central banking in the United States) was a forerunner to that which spawned the Federal Reserve.[citation needed]

  • "To cause high prices, all the Federal Reserve Board will do will be to lower the rediscount rate..., producing an expansion of credit and a rising stock market; then when ... business men are adjusted to these conditions, it can check ... prosperity in mid career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. They know in advance when to create panics to their advantage, They also know when to stop panic. Inflation and deflation work equally well for them when they control finance."[7]
  • "From now on, depressions will be scientifically created." -- Congressman Charles A. Lindbergh Sr. , 1913"

 

lakecity55's picture

Yes, a good optomistic article. When I get discouraged, I just remember Il Duce swinging by his feet in Florence.

I crave me some common moral sense and Adam Smith.

 

BTW, for radio hosts, Savage seems to be the most up-front. You will never hear Lush Limbaugh say anything about the FedRes.