'Smoking Gun' From The Federal Reserve's Murder Of The Middle Class

Tyler Durden's picture

Submitted by Jim Quinn via The Burning Platform blog,

“Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.”

- Ben Bernanke


“The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving a trail of casualties in your wake.”Alan Greenspan

There you have it – the wisdom of two Ivy League educated economists who are primarily liable for the death of the American middle class. They now receive $250,000 per speaking engagement from the crooked financial parties their monetary policies benefited; write books to try and whitewash their legacies of failure, fraud, and hubris; and bask in the glow of the corporate mainstream media propaganda storyline of them saving the world from financial Armageddon. Never have two men done so much damage to so many people, so quickly, and are not in a prison cell or swinging from a lamppost. Their crimes make Madoff look like a two bit marijuana dealer.

The self-proclaimed Great Depression “expert” Ben Bernanke peddles pabulum about inflation being too low and posing dire risk to the economy, but is blasé that swelling the Federal Reserve balance sheet debt from $900 billion in 2008 to $4.4 trillion today with his digital printing press poses any systematic risk to the country and its citizens. Either his years in academia have blinded him to the reality of his actions upon the lives of real people living in the real world, or his real constituents have not been the American people, but the Wall Street bankers that pulled his puppet strings over the last eight years.

Now that he has passed the Control-P button to Yellen, he is reaping the rewards of bailing out Wall Street and further enriching them with QEfinity. Ben earned a whopping $200,000 per year as Federal Reserve chairman. He now rakes in $250,000 per speech from the very financial interests who benefited from his traitorous monetary machinations. I don’t think he will be invited to speak at any little league banquets by formerly middle class parents whose standard of living has been declining since the 1980s. Is it a requirement that every Federal Reserve chairperson lie, obfuscate, misinform, hide the truth, and do the exact opposite of what they say they will do?

“It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.” - Ben Bernanke – October 2007

Greenspan, Bernanke and Yellen have always been worried about deflation, while even the government suppressed CPI calculation reveals that inflation has risen by 108% since the day Greenspan assumed office in August 1987. The dollar has lost 52% of its purchasing power in the last 27 years of Fed induced bubbles and busts. And these scholarly academic bozos have been worried about deflation the entire time. Since Nixon closed the gold window in 1971 and unleashed the two headed inflation loving gargoyle of debt issuing bankers and feckless self-serving politicians upon the American people, the dollar has lost 83% of its purchasing power (even using the bastardized BLS figures).

Any critical thinking person with their eyes open knows the official inflation figures have been systematically understated since the 1980’s by at least 3% per year. Should the average American be more worried about deflation or inflation, based upon what has occurred during the 100 years of the Federal Reserve controlling our currency?

I’m sure Greenspan is content and proud, as he succeeded through his own endeavors in rewarding, encouraging and propagating excessive risk taking by the Wall Street cabal during his 19 year reign of error. He exited stage left as the biggest bubble in history, created by his excessively low interest rate policy, blew up and destroyed the 401ks and home values of the middle class. This was the second bubble under his monetary guidance to burst. The third bubble created by these Keynesian acolytes of easy money will burst in the near future, further impoverishing what remains of the middle class and hopefully igniting a long overdue revolution.

Greenspan’s pathetic excuse for a career has benefitted those who owned him, while leaving a trail of casualties that circles the globe. His inflationary dogma, Wall Street enriching doctrine and Keynesian motivated schemes have drained the savings and confiscated the wealth of the middle class through persistent and devastating inflation. And it was done by a man who knew exactly what he was doing.

“Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth… The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation” – Alan Greenspan – 1966

The abandonment of the gold standard in 1971 set in motion four decades of consumer debt accumulation on an epic scale, currency debauchment, and real wage stagnation. The consumer debt accumulation was a consequence of the American middle class being lured into debt by the Too Big To Trust Wall Street banks and their corporate media propaganda machine, as a fallacious response to stagnating real wages when their jobs were shipped to China by mega-corporations using wage arbitrage to boost quarterly profits, their stock prices, and executive bonuses.

The bottom four quintiles have made no progress over the last four decades on an inflation adjusted basis. The middle quintile, representing the middle class, has seen their real household income grow by less than 20% over the last 43 years. And this is using the understated CPI. In reality, even with two spouses working today versus one in 1971, real household income is lower today than it was in 1971.

Click to View

The more recent data, during the Greenspan/Bernanke inflationary era, is even more disconcerting and destructive. Real median household income has grown at an annualized rate of less than 0.5% over the last thirty years. During the bubblicious years from 2000 through 2014, while Wall Street used control fraud and virtually free money provided by the Fed to siphon off hundreds of billions of ill-gotten profits from the economy, the average middle class family saw their income drop and their debt load soar. This is crony capitalism success at its finest.

The oligarchs count on the fact math challenged, iGadget distracted, Facebook focused, public school educated morons will never understand the impact of inflation on their daily lives. The pliant co-conspirators in the dying legacy media regurgitate nominal government reported income figures which show median household income growing by 30% over the last fourteen years. In reality, the real median household income has FALLEN by 7% since 2000 and 7.5% since its 2008 peak. Again, using a true inflation figure would yield declines exceeding 15%.

Greenspan and Bernanke’s monetary policies loaded the gun; Wall Street bankers cocked the trigger with their no doc negative amortization mortgages, $0 down – 0% interest – 7 year subprime auto loans, introducing the home equity line ATM, and $20,000 lines on dozens of credit cards; the media mouthpieces parroted the stocks for the long run and home prices never fall bullshit storyline, encouraging Americans to pull the trigger; government apparatchiks and bought off politicians and their deficit expanding fiscal policies, pointed the gun; and the American people pulled the trigger by believing this nonsense, blowing their brains all over the fine Corinthian leather interior of their leased BMWs sitting in the driveway in front of their underwater McMansions.

Median household income in the United States peaked in 1999. The internet boom, housing boom and now QE boom have done nothing beneficial for middle class Americans. They have been left with lower real income, less home equity, no savings, and no hope for a better tomorrow. Most states saw their median household income peak over a decade ago, with more than half the states experiencing double digit declines and ten states experiencing declines of 19% or higher. It’s clear who has benefitted from the fiscal policies of spendthrift politicians and the spineless inhabitants of the Mariner Eccles Building in the squalid swamplands of Washington D.C. – the pond scum inhabiting that town. The median household income in D.C. stands at an all-time high. Winning!!!!


A former inhabitant of Washington D.C. spoke the truth about inflation and the men who benefit from it in the 1870’s. He was later assassinated.

“Who so ever controls the volume of money in any country is absolute master of all industry and commerce and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” James Garfield

The Federal Reserve, a private bank representing the interests of its Wall Street owners, has been in existence for 100 years. It has managed to diminish the purchasing power of the dollar by 95%, while causing depressions, enabling never ending warfare, allowing politicians to expand the welfare state to immense unsustainable proportions, and enriched its true constituents on Wall Street beyond the comprehension of average Americans. In 2002 Ben Bernanke made his famous helicopter speech where he promised to drop dollars from helicopters to fight off the ever dangerous deflation. After the Fed created 2008 worldwide financial collapse he fired up his helicopters, but dropped trillions of dollars on only one street in America – Wall Street. He dropped turkeys on Main Street, and we all know from Les Nesman what happens when you drop turkeys from helicopters.

Les Nesman: Oh, they’re crashing to the earth right in front of our eyes! One just went through the windshield of a parked car! This is terrible! Everyone’s running around pushing each other. Oh my goodness! Oh, the humanity! People are running about. The turkeys are hitting the ground like sacks of wet cement! Folks, I don’t know how much longer… The crowd is running for their lives.

Arthur Carlson: As God is my witness, I thought turkeys could fly.

The intellectual turkeys running this treacherous institution create a new and larger crisis with each successively desperate gambit to keep their Ponzi scheme alive. Even though Greenspan, Bernanke and Yellen are highly educated, they are incapable or unwilling to focus on the practical long-term implications of their short-term measures to keep this perverted financial scheme from imploding. Denigrating savings and capital investment, while urging debt financed spending on foreign produced trinkets and gadget passes for economic wisdom in the waning days of our empire. Courageous and truthful leaders are nowhere to be found as the country circles the drain. Farewell middle class. It was nice knowing you.

“There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: “In the long run we are all dead.” And such shallow wisecracks pass as devastating epigrams and the ripest wisdom.” – Henry Hazlitt – Economics in One Lesson

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DavidPierre's picture

Just more Bullshit ...charts...graphs and lots of meaningless words from Quinn.

When you going to give us your insights into 9/11 Smokey?

Once again you FAIL !!!

 The 9-11 Litmus Test

You are just another TOOL ... Hypocrite ... and a FOOL !

Greenspan... Bernanke ... Yellen... who gives a fuck what these idiots do or say... as it is just lots of smoke up you ass that distracts you and yours from the ZioNazi Truth of War AND Terrorism.

economics9698's picture

We passed the 150% of debt to GDP ratio in 1998.  The baby boomers peaks and are exiting stage left.  The 138 IQ crowd know this and have known it for decades.  With idiots like Reagan, Bush, and Obama bankruptcy, USSR bankruptcy, is a certainty.  Which means there is only one explanation for this, it’s an end game and one last fucking of the USA before it ceases to exist.

Import millions of third world types to create some cover, start a few wars, and exit in the dark of the night to the next host to live off of. 

We will find these bastards, hunt them down, and kill them for the next 100 years.  

localsavage's picture

Who is the next host?  they fucked it all up this time.

new game's picture

host is you! your heart is still pumping and you are not piss poor yet. plus we got some young blood to get to the front line...

economics9698's picture

The next host, they hope, would be China and Russia.  Yes the mother fuckers would sell out the USA in a New York minute if they thought they could fuck over 1.3 billion people for the next 100 years.  Parasites never change, they just change host.

TheBigComic's picture

I've tried to articulate finding and bringing these criminals to justice in the following video.



SAT 800's picture

The thought police are listening; be judicious in your language. I wish I was joking; I'm not.

Boris Alatovkrap's picture

When most of citizenry is pissing poor, middle class is very proliferate, everyone but elite sophisticate is poor, stuck in middle.

g'kar's picture

Deep shit man, really deep shit. Where you been?

SAT 800's picture

Yeah. Welcome to the new middle class; here's your worker's bread ration card. "But what about the people who can't work?" "-NEXT-"

Cathartes Aura's picture

*paging Rusty Shorts*

bring yer video links. . .

HardAssets's picture

"The oligarchs count on the fact math challenged, iGadget distracted, Facebook focused, public school educated morons will never understand the impact of inflation on their daily lives."


This one sentence in the article gets to the heart of the matter. The whole system is a fraud, a means to steal from & enslave most of the population by a few.

Most of U.S. history (for the last century, at minimum) can be explained by looking at this reality. The current police state and overseas wars can be explained by this reality.

They will try anything to keep the population of the world on the plantation.

hidingfromhelis's picture

I think this is simply a side benefit.  With elections being predetermined coronations, the press captive shills, and laws being arbitrarily enforced, the distraction of an already cowed populace isn't really necessary.

doctor10's picture

Not quite-the Federal Juduciary assassinated the Constitution over several decades. Their paymasters in DC wanted the power.

Rainman's picture

Oy ,,, Founding Chairsatan Greenspank hasn't grown any hair or told the truth since 1966.

Quote find : Nice

Haole's picture

Pretty cool to be living through something people are likely to be reading about with astonishment in a thousand years if humanity does in fact survive with enough freedom and "civilization" left to have access to recorded history in the first place...

References to old WKRP episodes doesn't credible journalism make.  I'll take a guy like Jon Rappoport over Quinn any day of the week.

LetThemEatRand's picture

Do you have any idea how long it will take to put this entire article onto stone tablets?  

Haole's picture

Dunno but I'm yanking my junk thinking about Bailey Quarters right now...

LetThemEatRand's picture

I remember watching this show as a kid thinking that Carlson was fat.  He would now be put in the "thin people" aisle at Walmart.

SAT 800's picture

That pointy scratching on clay tablets they did with a stick in Nineveh seems to have held up pretty well. Maybe it'll make a comeback.

MrPalladium's picture

We will go from Ideocracy to Planet of the Apes.

No one then will care what happened in the second dacade of the 21st Century.

Osmium's picture

"Take your stinking paws off me you damn dirty ape"

RaceToTheBottom's picture

So the WS Banksters are the Chimps and the WS Traders are the Gorillas. Then who are the Orangutans?

free_lunch's picture



“Lenin (the founder of the former communist Soviet Union) was certainly right.  There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.  The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”.


Many people do not realize that inflation is with us, and it is an extremely destructive hidden tax, especially on the poor of all nations of the world.  Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket.

Suppose, for example, the inflation rate is 3.5%.   If you have $30,000.00, in ten years it will only buy $20,550.00 worth of goods.  If the inflation rate is 5.5%, (which is closer to reality, as inflation is often underestimated by the government’s measurements), your $30,000.00 is worth only $16,650 in ten years.  This should be enough to scare anyone.  Let us explore what inflation is and why it is occurring:      http://www.drlwilson.com/Articles/INFLATON.htm


Marc de Mesel, inflation the hidden tax explained: http://www.youtube.com/watch?v=5Ctku9Nu54U

Ben Bernanke admits to Ron Paul that INFLATION IS A TAX: http://www.youtube.com/watch?v=D4yBrxmEOkY

The CPI is no longer a tool to accurately measure inflation, but an instrument of propaganda the government uses to hide accelerating inflation from the public and financial markets.
Inflation Propaganda Exposed: http://www.youtube.com/watch?v=pwI3Nya5L9g

Those who control the money supply, control everything. Documentary: http://www.youtube.com/watch?v=aNWuqHA13uQ



It's a game of survival, the only way to survive is to compete your neighbor, your friends, your family, the world. Because as the amount of money grows, so does the amount of losers imminent to the system of money creation. More money supply = tougher competition = more losers.(*)
This means that QE is not creating jobs, but destroying them, bringing job competition to the next level. (more competition = lower wages)

So people who have to actually WORK for a living are attacked at two fronts: the money earned loses buying power due to inflation, and their wages are under pressure due to job destruction effects of QE. Because of this, the economy get's worse, since workers are also consumers(if they earn enough to do so.). Stock markets have nothing to do with this, the only reason they go up is because that's where the fresh QE money is pumped in by the banks buying up everything worth owning, with prices being no restriction to them since they can print money for free.. So gues who will own it all in the end..?


(*) When the money supply grows, so does debt and it's worst feature: un-payable interests(the money is created as a loan at interest, but the amount of money necessary to pay interest is not created, since you only get the amount of principal when you take a loan. The system ensures there is always more debt than there is money. So debt can never be re-payed. This design flaw ensures unemployment is imminent. Because money is always scarce, in fact the more money there is, the more scarce it becomes (because the owed interest grows with it, but is not created).

This effect multiplies as the money supply multiplies..

Therefore, even if John has a leaking roof and Joe is capable of fixing it. John cannot hire Joe, because he needs the medium (money) to make the transaction. Therefore money directly effects employment, it does not matter how skilled and eager Joe is to work, he won't get the job because the law enforces them to use the medium that is always scarce by design. The only reason the economic transaction between John and Joe can't take place, is because the medium they need to act is beyond their reach: money. This is an example how the economy is restrained by the monetary system / policy. Not because lack of demand(John), not because Joe is lazy or not skilled enough.

So prepare yourself for job competition going to the next level. Be prepared to compete the food out of your neighbors mouth, so you can survive. And try to find means to fight inflation of the money you already earned.. (something that is made very hard to do, since the usual flight path, gold & silver, seem to have been cut off)

Don't be fooled thinking it will change, it won't because only very few seem to be capable of understanding what I am explaining(count the upvotes). And a lot of the ones that do understand, think it's not their problem since the system mainly eliminates at the bottom. what they are neglecting to see is that if the process keeps going, sooner or later they will be the bottom, since the ones beneath them are being eliminated as the mechanics of the system travel up..

Just try to stay ahead of competition by constantly improving your skills, never stop learning new skills. It's your only ticket to survival..

But hey, this is just my view based on plain logic reasoning... I am sure there are lots of high payed economists who can prove me wrong with  complicated economic vodoo.. (**)

(**) It's like a scientist proving that gravity does not exists by using very complicated formulas, everybody know gravity exists, therefore everybody knows the formulas are wrong, but most of us do not know enough about science formulas to point out where the formulas go wrong. When we argue with them they slam us with their BS formulas, because they know we can't level with them, even when it's obvious it is just that: BS..

And God knows there is a whole army of economists out there spewing out more and more BS formulas, creating more fog.. We even see them on ZH every now and then. So in a way, everybody who engages in this BS talk with complicated formulas is complicit, no matter which policy they are preaching. Discussing these formulas gives them scientific legitimacy. By nature everything is explainable in simple wordings that nearly anyone can understand, so whenever people go out of their way to make things extra complicated, chances are they are just covering something up.

FreeNewEnergy's picture

@free_lunch: extraordinarily erudite comment. My hat is off to you and everyone should read and re-read your post because it is true.

If I may humbly offer a few additions: Skills, yes, essential, but, as a way to defeat the inflation monster, let me suggest TOOLS, because they are essential to any skilled craft and will be hoarded and in short supply when the time comes that they are necessary.

My personal choices are gardening and carpentry tools. I buy at garage sales, on the cheap, beating retail badly, and generally get better tools than the Chinese shit sold at Home Depot or Harbor Freight.

Also, transportation devices, from bicycles to cars, trucks and vans, will always be essential. And, if you don't know how to service your vehicles yourself, find a good mechanic who will work for cash. I have a guy who comes to my house. He is indispensable and I always make sure to pay him more than his asking price, which is usually 1/2 of retail or less.

And, you're absolutely spot on about gold and silver. I've got some, but I'll gladly convert it into a nice piece of arable land or income-producing property when the condition presents itself. I'm of the camp that land and housing prices are still 50% higher than where they should be, as a general rule. Seriously, $200,000 for a home, plus $4-5K a year in taxes, on under $80k per year is financial suicide and many Americans are willfully committing to it, because the NAR says the guideline is 31% of GROSS INCOME qualifies for PITI, so they're saying one should be - at $80k/year - be willing to spend close to $25K per year on housing. Take another $25K out for income taxes and you have $30K left for food, clothes, cars, utilities etc. for a family of four. In other words, the tax man and your house have made you POOR.

In the old days (early 1970s) when I was selling RE, the norm was 25% of NET on housing. My, how times have changed.

free_lunch's picture

Taxes are one of the two main sources of power. Taxes pay for the system that is used to enforce you to pay them, so they will keep going up untill the point you can't keep up anymore. at which point you will lose everything you got and starve.. (*)

Since the system is a reality from which there is no escape, skills are the only way to slow down (not stop) the process of losing everything..

You can hope for political change, but that will be in vain, the system is worldwide and extremely powerful. Even(or especially?) the most effected defend it with their lives.(*)

(*) To make the job of defending tax easy, a small part of the taxes is used for handing out to the masses who depend on it for survival. They will defend the system, as it is, with their life (since that is what is at stake for them) The millitary and other government forces are also seduced to defend it, since their wages come from it(for many poor the millitary is the only escape from poverty). While the larger part is used for spreading and enforcing the system for the elite..

Once you understand all this, you will understand that you have to focus your energy on making sure you posess the skills that will get you one of the few jobs left.. Which implies keep learning, because the skills needed change constantly..

NoDebt's picture

"Is it a requirement that every Federal Reserve chairperson lie, obfuscate, misinform, hide the truth, and do the exact opposite of what they say they will do?"

Not just Fed chairmen.

Protokletos's picture

"Courageous and truthful leaders are nowhere to be found as the country circles the drain."

We are dictated by a group of pigs unable to stop squeeling--for they know that once their rhetoric and misdirection ceases, everyone will fully understand it was them who put this country in the tub in the first place.   

new game's picture

death of middle class is directly linked to "return to shareholders", crony captalism, and no action -corporate tax law, ignored and beholden to our elected reps, bought and paid in full by the very corporations that outsourced the middle class.

CrownedCoke's picture

Hell has a special place for these bastards, hopefully soon.

nmewn's picture

Crony-socialist, there is no fucking risk involved of them losing anything!

If people want to go through the pains to make the damned distinction, can we at least say what it really is?


new game's picture

my vote: deemed to be fascism

Reaper's picture

The sheeple were fooled by these masterminds competent only in deceit and theft. They slithered within the "holy" cloak of Fed chairman. The sheeple respected the office and ignored the vermin holding it.

Miggy's picture

This whole thing is breathtaking to behold.

fonzannoon's picture

This article loses me. The middle class were a bunch of poor saps, suckered into taking on tons of debt and living like fucking champions for decades, on credit, never understanding the conseuences. Then we are supposed to be mad at the oligarchs because they "count on the fact math challenged, iGadget distracted, Facebook focused, public school educated morons will never understand the impact of inflation on their daily lives."

Is it me or does this article do a better job of calling the middle class stupid fucking sheep who are overdue for an ass kicking than making a good case why the oligarchs should be hanging from lamp posts?

Miggy's picture

I agree in many cases but the middle class has been gutted not only to inflation but free trade to China and no border bringing in cheap, cheap labor. The policies from the hill have benefited the transnationals who have moved out leaving the high school graduate with a good work ethic still unable to make a wage to keep up with the inflation. Blue collar jobs have left the country on a massive scale, we all know that. Wages just have not kept pace.

Some may say "Well get training then and keep up". Easier said than done. Not everybody is cut-out to sit at a computer.

fonzannoon's picture

Fair point. But where in this article does it mention that? I agree with you that jobs leaving the country (and now flat out being replaced by machines) are a huge reason behind the gutting of the middle class. I just don't see it in here.

Miggy's picture

It doesn't but should if the argument is about the middle class. The system has been tweeked enough so many people need to use a credit card for out of the ordinary expenses such as new tires, etc. and that means paying interest to you know who. Any time I see a fine from a Wall Streeter my thinking always is they scewed the game too far one way and need a few bucks to keep things quiet.

NoDebt's picture

Most people see what they want to see and hear what they want to hear.  It's why societies keep making the same mistakes over and over despite the lessons of history.  As long as there are people involved, it will be fucked up.

yrad's picture

I have to agree with Fonz. My hands don't have enough fingers to point out the blame for the disgraceful situation this Republic is in and the article explaining each parties role in this disaster would take months to read. It does start with the Fed, but ends with the ignorant and apathetic.

Anusocracy's picture

The middle class is just the last field crop of true-believing dupes to be harvested by farmer Gubbermint.

They're wired to behave as they are behaving and they are wired to force everyone else to behave as they do.

That's why freedom is so rare in man's history.

gonetogalt's picture

I caught the last part of an interview with a Lynn Rothschild yesterday on CCTV (Red China's CNN), bios were 5th generation Rothschild and American, anyway, this tribeswoman was discussing the ruination of the western world in all aspects as driven by chasing quarterly performance.


After a few examples of short term vs long view decisions, she explained that businesses who took long term positions at the expense of quarterly performance were spanked in the markets and the underperforming execs would be sacked. She then pointed out that the metrics used by market analysts for the benefit of sovereign wealth handlers, pension fund managers, etc, are geared only to short term performance. OK, fair enough, we all know this.


The kicker for me was her following statement, to the effect that "we" are developing a "new set of criteria to provide guidance to fund managers that they may identify businesses whose policies are inline with long term, sustainable, etc, etc...) So, 'they' want tighter control of where the hot money will be directed, just a fresh set of regulations from a captured bureaucracy directing money to the proper pockets.


So the net draws tighter, as if our masters have anything less than total control already...


The arrogance just slapped me in the face.


The only way out of this prison is deliverance by a savior. My confidence is in Jesus.

Miggy's picture

Right on. 100 years happens to everybody.

Totentänzerlied's picture

Embrace the ambiguity. Both are simultaneously true.

Drug dealers need drug users, drug users need drug dealers. Pretty simple economic concept.

Yes, you can be mad at the "them" for dealing, and yes, you can also be mad at the "us" for using. Asking who acted first leads to a chicken and egg problem.

I don't know of any human civilization past or present which hasn't been built around the master-slave dichotomy... One can safely conclude, statistically, that there is sufficent reason for this fact, and, evidently, that our civilization is no exception. All sides are merely performing their historically determined roles.

The problem is not that people are maths challenged, distracted, undereducated, etc. etc. etc., the "problem" is that they are people, and as well-adapted members of human society, instinctively recognize and follow their (usually subordinate) roles. The rest is just coping strategies (apathy comes to mind) and essentially horizontal competition (conspicuous consumption).

PS: About the debt-servitude thing, new technology can rarely finance itself. That is, in history, with beneficial new technology, i.e. that which confers economic advantage, most customers are always too poor to purchase it outright in the early stages of its introduction into the market, but if that technology really does confer economic advantage, customers also cannot afford not to procure it, the introduction of new technology, in itself, suffices to create an economic deathtrap whereby the majority of producers are compelled to become debtors simply to remain profitable. This is the dark side of economic "substitution".

PPS: The same dynamic is usually at work with consumer goods - "keeping up with the Joneses" - which confer (or are believed to possibly confer) all manner of non-economic advantage.

RaceToTheBottom's picture

Please show me the "poor saps, suckered into taking on tons of debt and living like fucking champions for decades" that exist on WS?

You want consequences and then you blather about half of the equation.

This is not about calling middle class stupid, it is about the non equal application of consequences. Any one that blathers about half the equation is promoting that.

new game's picture

fonz - spot on. nobody put a gun to anybody and said sign dis sonabitch! people are just plain fucking dumb.

today fucking wiz bang for tomarrows servatude. average idiot can not link cause and effect.

plus they have no concept of 10,000 = xxxx hours of labor doing something that sucks dick...

NickVegas's picture

Can't see the forest for all the slave thinking here on the hedge. Where did the money to loan the "idiots" originate? How can you buy a house or car, if the price is set by central bank bubbles? If your wage does not keep up with the money printing, how can you afford a house or car without getting a loan. This nation has been enslaved by the central banks, and you want to blame the victim.

new game's picture

but i have no interest in fixing stupid, cause it can't be done. plus i kinda like it this way as the dolts make my life a whole lota nicer (by comparison), assuming we are all fightin g for the same nervona-not having to do something we don't want to do for money...

socalbeach's picture

Worthy of mention, JQ gets the math right (52% = 100*(1 - 1/2.08)).


"Greenspan, Bernanke and Yellen have always been worried about deflation, while even the government suppressed CPI calculation reveals that inflation has risen by 108% since the day Greenspan assumed office in August 1987. The dollar has lost 52% of its purchasing power in the last 27 years of Fed induced bubbles and busts..."