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The Madness Of Crowds And The Great Insanity

Tyler Durden's picture




 

Submitted by Ty Andros via TedBits,

Never in my 30+ year career as a market observer have I seen so many out on a limb which is about to be SAWED OFF. Those who live within the matrix are fully loaded for a recovery which is not and will not appear. Nominally the Main stream media can proclaim ECONOMIC recovery has arrived, point to the rising developed world stock markets, seemingly benign bond markets of all categories: sovereign, investment grade and Junk, Private equity, corporate buy backs and more have priced in “Happy Days are here again”. HFT, unrestrained leverage in a financially repressed world and Quantitative easing have done the rest in pushing financial assets to heights rarely, if ever, seen. Volatility is at all-time lows in most markets and investor confidence at superhuman levels. Like a boat where all the passengers are on one side of the boat and it is about to capsize, investors similarly have no fear.

 

 

“In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”

- Friedrich Nietzsche

The central banks have created moral hazard on a scale which is simply unbelievable and set a stage for a bonfire of the vanities seldom, if ever, seen in history. In fact, nothing I can see rivals it.

“Over a protracted period of good times, capitalist economies tend to move from a financial structure dominated by hedge finance units to a structure in which there is a large weight to units engaged in speculative and Ponzi finance. . . . The greater the weight of speculative and Ponzi finance, the smaller the overall margins of safety in the economy and the greater the fragility of the financial structure.”

- Hyman Minsky, 1992

Professional Investors who have spent a lifetime playing these contrarian opportunities offered by human behavior are being carried out on stretchers as historic market behaviors fail to materialize. So the financial imbalances and historic overvaluations just grow and grow and when they are resolved only God knows.   In my opinion, it isn’t materializing because many markets are manipulated, pure and simple, with and without the assistance of the central banks, government regulators and the bankster financial community. As long as the results and consequent headlines are politically correct there are no consequences to be feared, they will be allowed to continue. Politicians HATED markets because they used to expose them as the liars they are. NO MORE as they are now in the hands of megalomaniac’s and sociopaths who don’t know the difference between right and wrong.

“Sometimes the law defends plunder and participates in it. Sometimes the law even places the whole apparatus of judges, police, prisons and gendarmes at the service of the plunderers, and treats the victim, when he defends himself, as a criminal. But often the masses are plundered and do not even know it.”

- Frédéric Bastiat

The masses are being plundered on a scale which is inconceivable and unmatched in history; it is the source of the middle classes dying in the developed world. The developed world has become a well-disguised plantation of serfs and slaves. They are given nothing to store and save their labor in as the currency they hold are printed endlessly and have no reserves to back them and are redeemable in NOTHING, contrary to every sound currency in history. Modern day money is nothing less than a wealth confiscation scheme run by morally and fiscally bankrupt central banks and governments against their own citizens.

Is there any human activity where you are not taxed today in one way or another? Is there any major financial holding which people own free and clear of annual taxes or don’t have to share any gain with the masters in central governments? They are your partners in everything even though you performed the work to buy your assets. The government has given the working man nothing in exchange for sharing in the profits or appreciation. Government services such as roads, schools, sewers, police and courts are paid for out of taxes.

“None are more hopelessly enslaved than those who falsely believe they are free.”

- Johann Wolfgang von Goethe

As long as big government progressives, elites, the main stream media, and banksters can manipulate and control the reality for the vast majority of citizens they tell themselves they are doing a public good. Fredric Bastiat described this nexus well:

“Sometimes the law defends plunder and participates in it. Sometimes the law even places the whole apparatus of judges, police, prisons and gendarmes at the service of the plunderers, and treats the victim, when he defends himself, as a criminal. But often the masses are plundered and do not even know it.”

- Frédéric Bastiat

Throughout the developed world, progressive governments have created huge welfare states that have crippled the futures of the people under whom they were meant to place a safety net. Now, it is a permanent way of life for them and the rolls are exploding daily.

“See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay. If such a law is not abolished immediately it will spread, multiply and develop into a system.”

- French economist Frederic Bastiat (1801-1850)

This is the system in the developed world today and it will not be stopped except by Mother Nature and Darwin. These programs have now created a class of people who have no ability to rise and prosper in life: they have no skills, no ability to produce more than they consume, and do not know the source of their inability to do so. They are told their lack of success is someone else’s fault.   They are crippled intentionally to be victims of the elites who wish to prey on them and their ignorance. They have been provided a POTEMKIN FAKE education by public schools who FAIL to provide them the educations necessary to rise through adversity and in life. These FAKE educations have ONLY one goal as outlined by George Carlin:

“…But I’ll tell you what they don’t want. They DON’T want a population of citizens capable of critical thinking. They don’t want well-informed, well-educated people capable of critical thinking. They’re not interested in that, that doesn’t help them. That’s against their interests. That’s right. They don’t want people who are smart enough to sit around the kitchen table and figure out how badly they’re getting F#CKED by system that threw them overboard 30 f#ckin’ years ago. They don’t want that. You know what they want? They want OBEDIENT WORKERS. OBEDIENT WORKERS. People who are just smart enough to run the machines and do the paperwork, and just dumb enough to passably accept all these increasingly shittier jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime, and the vanishing pension that disappears the minute you go to collect it.”

- George Carlin

Is this not the world we live in today? These words were said over 15 years ago. The USEFUL idiots as Lenin called them have no ability to think, manufactured by public school monopolies (which I call indoctrination/brain washing centers) and told they have been born with the right to all of their basic needs provided by the government:

“It is not an endlessly expanding list of rights —the “right” to an education; the “right” to health care; the “right” to food and housing. That is not freedom. That is dependency. Those are not rights. Those are the rations of slavery – hay and a barn for human cattle.”

- Alexis de Tocqueville

They believe the impossible dream that they have the right to live their lives at the expense of others and will vote for the people that tell them this is so and use a government gun to make it happen. Most of society today does not know: where money comes from, what it is or isn’t in a historical or practical sense, how wealth is created, the virtues of capitalism and wealth creation, why it’s important to stay debt free and live within your means, why they should work hard and never give up, why save money, why it’s important to be self-reliant, what the constitution is and why it’s important to protect our freedom and future, nor economics of any sort but socialism and Keynesianism (central government control of all aspects of life also known as Marxism).  

In my estimation this means they are functually ILLITERATE to life’s basic requirements to grow and thrive as a human in society.  They couldn’t be less prepared to meet life’s challenges. The school systems are designed to create peasants and serfs to socialism. Not educated, self-reliant and independent citizens. Prior generations such as mine where taught all these things. We want it restored, and now are labeled extremists and terrorists for insisting on it. This teaching of socialism labeled democracy has led to very destructive behavior:

Democratic institutions awaken and foster a passion for equality which they can never entirely satisfy.  This complete equality eludes the grasp of the people at the very moment they think that they have grasped it… the people are excited in the pursuit of an advantage, which is more precious because it is not sufficiently near to be enjoyed.  Democratic institutions strongly tend to promote the feeling of envy.  A depraved taste for equality, which impels the weak attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom.

- Alexis de Tocqueville, 1825

This is the agenda of the voting public with the president and his minions in congress and the bureaucracy as his supporters. I have never seen an administration so dedicated to dividing people and attacking the private economy which is the basis of future prosperity. Progressives in Government espouse the gospel of Carl Marx even though they never say so explicitly:

“The whole gospel of Karl Marx can be summed up in a single sentence: Hate the man who is better off than you are. Never under any circumstances admit that his success may be due to his own efforts, to the productive contribution he has made to the whole community. Always attribute his success to the exploitation, the cheating, the more or less open robbery of others. Never under any circumstances admit that your own failure may be owing to your own weakness, or that the failure of anyone else may be due to his own defects, to his laziness, incompetence, improvidence or simple stupidity.”

- Henry Hazlitt on envy and Marxism

This is from where progressives derive their power as this is what the public is taught in public schools. They are a generation of unaccountable victims. Government does not create prosperity or wealth, it destroys prosperity and wealth… correction: it CONSUMES them.

Several weeks ago, I commented on the $30 trillion dollars ($30 million million dollars printed out of THIN air) of new debt which has been created since the nadir of the Global Financial Crisis in late 2008. This has created the greatest fire hose of HOT money zooming around the world in history. Too much money chasing too few opportunities is repressing yields and returns. Combine this with deliberate FINANCIAL REPRESSION by banksters and governments as they transfer the returns from prudent savers to themselves to fill in the insolvency their Reserveless banking systems created. Trillions of dollars of unpaid interest has flowed to insolvent governments and banks during this period and continues to do so as REAL inflation eats the money the public is paid in and stores its wealth in. While bankers and governments borrow money for nothing, false government inflation statistics hide the theft from the public (see www.shadowstats.com).

“You never want to let a serious crisis go to waste.”

- Rahm Emanuel, February 9, 2009

This debt has been disguised as GDP by the governments of the world while they used the crisis not to reform themselves but, instead, to implement new and innovative ways to loot and enslave the publics they claim to serve by increasing taxes, taking regulations to levels of suffocation of private enterprise (moving this demand to connected crony capitalists), removing freedoms and taking confiscation of private property to new extremes. An insidious process, and exactly opposite of the recipe for economic recovery. They have destroyed the human spirit of hope, hard work, and tenacity as they destroy the incentives to do so.

“When people who earn more than the average have their ‘surplus,’ or the greater part of it, seized from them in taxes, and when people who earn less than the average have the deficiency, or the greater part of it, turned over to them in hand?outs and doles, the production of all must sharply decline; for the energetic and able lose their incentive to produce more than the average and the slothful and unskilled lose their incentive to improve their condition.”

- Henry Hazlitt

In the process, creating a society of misery spread widely (definition of socialism): 

No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.”

- Adam Smith

Is this not the mood of the vast majority of the developed world? And they are giving up in record numbers, succumbing to the hopelessness in the world their elite masters have created for them.

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.”

- Carl Sagan

In closing, the greatest top in economic activity and leverage in human history has been in the making since 2000. When the leverage FAILS, the world’s developed economies will be thrust into the next leg of the cleansing process of deleveraging which began in 2000, made another top in 2008 and now this time.  The leverage is far greater now than it was at the 2000, and the 2007/2008 highs. The destruction of it will be equally bigger.  The world has slipped below the proverbial event horizon of a Black hole, slipping closer and closer to the final denouement of the insanity running amok today.

Then, we will have a time of great economic and social turmoil as what has gone before slides to its doom. Then, a great reformation will emerge just as it did in China after the cultural revolution failed in 1976 and then with Deng Xiaoping in 1989 when he said “to get rich is glorious” and he unleashed the human spirit in China and wealth creation exploded. Don’t you think similar epiphany’s lie in the future after the socialist welfare states of the world collapse? 

“Political ideas that have dominated the public mind for decades cannot be refuted through rational arguments, they must run their course in life and cannot collapse otherwise than in great catastrophe.”

- Ludwig Von Mises

This conclusion is firmly on the horizon; let’s call it the great INSANITY. I believe this version is the greatest in history and will be written about for centuries. Those that forget history are doomed to repeat it and this time is no different. However, there is always great opportunity with great danger as the greatest transfer of wealth from these that hold it in paper to those that don’t is underway and there is nothing that can stop it. The sociopaths and elites have no ability to turn the ship of states around as their policies have created the collapse. While this is a manmade disaster, it is most definitely the greatest opportunity in history for those that see it and adjust their behavior accordingly. Don’t ever forget, THEY WILL PRINT THE MONEY!

 

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Sat, 06/07/2014 - 20:38 | 4833425 TeamDepends
TeamDepends's picture

This is your bain on goupthink.

Sat, 06/07/2014 - 20:48 | 4833432 sunaJ
sunaJ's picture

Speaking of the letter "R," don't expect a revolution from the masses until it is all actually gone.  Then expect panic.  Then expect the wrong people to be blamed.  Rinse, Repeat.

 

  My favorite quote was Carl Sagan's:

 

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.”

 

Sat, 06/07/2014 - 21:07 | 4833469 jbvtme
jbvtme's picture

"Madness" is a lame excuse. Cowardice is more like it.

Sat, 06/07/2014 - 21:25 | 4833503 Publicus
Publicus's picture

Peer to peer currencies will free us all.

Sat, 06/07/2014 - 22:57 | 4833630 Mercuryquicksilver
Mercuryquicksilver's picture

Like a silver piece?

Sun, 06/08/2014 - 10:07 | 4834057 CH1
CH1's picture

Silver is great. Problem is, people who own it never use it. The stack it up and nearly worship it, but do not use it.

Cryptocurrencies get used. That's why the Bitcoin kids are changing things, but the stackers change nothing.

Sun, 06/08/2014 - 11:37 | 4834199 Fukushima Sam
Fukushima Sam's picture

Currency does not equal money.

Sun, 06/08/2014 - 11:53 | 4834239 The Internation...
The International Jew's picture

zerohedge pages are the only places where the same thing is repeated ad infinum.  You think they would think of somethig new to say...  Zerohedge I now see why you guys get prayed on.  the weak live here.  Still though love some of the pieces, some of the time.  remember when smart people came on this site?  I still do. kinda miss those times.  maybe i got smart idk.  love you  pce!

Sun, 06/08/2014 - 12:11 | 4834273 Vooter
Vooter's picture

"maybe i got smart idk."

It's "preyed," not "prayed."

Sun, 06/08/2014 - 12:07 | 4834264 Vooter
Vooter's picture

"Silver is great. Problem is, people who own it never use it. The stack it up and nearly worship it, but do not use it."

 

That sounds like YOUR problem, not theirs...

Sun, 06/08/2014 - 16:17 | 4834782 sleigher
sleigher's picture

They stack it for now.  There will be a day when it is used.  They use the worthless green paper right now because people accept it.  It would be silly to use the valuable stuff when people readily accept the worthless stuff.

Sun, 06/08/2014 - 10:23 | 4834079 DanDaley
DanDaley's picture

It's just that people hate to think for themselves or be alone, so they turn their autonomy over to a mass movement -religious or political usually. Eric Hoffer explains it very well in The True Believer: Thoughts on the Nature of Mass Movements.

Sun, 06/08/2014 - 13:50 | 4834499 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

One issue that arises from our current society is the elites are not grooming or training the next generation to take over the responsibilities of production. If everyone is addicted to free hand outs and is unable to perform societies basic functions, society will break down. Everyone will lose then. This is going to happen soon.

Sun, 06/08/2014 - 17:55 | 4835047 rosiescenario
rosiescenario's picture

The real problem is that 90% of the elites (that excludes those who made the big bucks by starting up a company) are just financial manipulators whose work contributes nothing but harm.

Mon, 06/09/2014 - 12:47 | 4837395 Mosin Nagant
Mosin Nagant's picture

Its not even cowardice. The populace "or proletariat" has never been the focus of western states or economies ( nor eastern ones either). They were never meant to be. Bemoaning the fate of the many is a simply a waste of time- good for artists and authors, "liberal" politicians and internet pundits. Whats the big deal? Why is anyone surprised? Where is this fictional "state of grace" that man once had and is now gone? Can Nirvana still be attained (after the"Cleansing" )? All has been said and done before-no schocker there-and yet the world goes on. Today is still better than yesterday for MOST. The game is set up to be won by the .001 %. Why? Who "sets" up the game, who controls it? No one in particular (sorry Bilderberger and Illuminati no disrepect to you intended!)  Its just that you have to be cruel, heartless, shady and corrupt to enter the .001%. No schocker there either  The past sucked worse for most. The future will too. And?  Ad libbing V.Clausewitz " Economic Collapse (and war) is after just an extension of Politics by other means...the only real change is that some of us are aware of it more than (most) others. 

Weak critiques of Marxism not withstanding most of the world is statist-be it so called Capitaist (which doesnt exist, besides Adam Smith was a Mercantlist anyway...) "Communist" (which has nothing to do with Hegelian Marxism) or Keynesian (which is neither Socialist nor Progressive, just a different take on monterism if you actually read it. What changes is who controls the money supply and how, state vs business/bank, its always about the money....) so why the alarm? Sheep are sheep and wolves are wolves and the world goes on ....nothing to see here move along thank you.....if your worried for yourself (and your family) stock up. If your worried for "mankind" its not your job and you cant change thjat group as a whole. If your into heralding the Second Coming...COOL! Later dudes

Sun, 06/08/2014 - 00:07 | 4833715 Seek_Truth
Seek_Truth's picture

You mean Carl "in Khazaria we Trust" Sagan?

You mean Ashkenazi Carl Sagan?

Who coulda knowed...lol.

Sun, 06/08/2014 - 00:51 | 4833758 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

You probably call the new show "Black Cosmos" don't you?  C'mon -- admit it.

Sun, 06/08/2014 - 02:06 | 4833816 Seek_Truth
Seek_Truth's picture

-minus one, "Carl Sagan" is a bought and paid for Ashkenazi idiot liar.

Sun, 06/08/2014 - 10:08 | 4834058 CH1
CH1's picture

Fuck off and leave.

Sun, 06/08/2014 - 04:32 | 4833856 Lost My Shorts
Lost My Shorts's picture

Speaking of group-think -- didn't I read this same article on ZH before?  About 46 times ... this month I mean; since the beginning of ZH it's too many to count.  Damn, that doom is slow in getting here.  The end is near !!! probably sort of.  How disappointing if it all ends not with a bang but a whimper.

Sun, 06/08/2014 - 09:53 | 4834035 g speed
g speed's picture

well you damn sure didn't read it in Time, Newsweek, et al.

Sun, 06/08/2014 - 11:32 | 4834190 ATM
ATM's picture

The end is coming. Whether or not it is near is a matter of opinion. That is its coming is a historical fact.

Sun, 06/08/2014 - 14:28 | 4834577 paulbain
paulbain's picture

 

 

 

 

 

TeamDepends wrote:

This is your bain on goupthink.

 

I resent that remark.

-- Paul D. Bain

PaulBain@PObox.com

 

 

 

 

Sat, 06/07/2014 - 20:48 | 4833431 Atomizer
Atomizer's picture

Hashtag.  theyweretosupposetofallforthisshit

Sat, 06/07/2014 - 20:44 | 4833436 disabledvet
disabledvet's picture

This really is the "who's who" but you're talking to an American here...SO WHERE'S THE PHUCKING NEWS BITCH?"

And of course the answer (h/t Twitter) is "one ounce of non existent gold causes Bank America to default on debt instrument 43275a/7c."

As we know from no less than JP Morgan/Chase "that cost 25 billion."

A better example than Bernie Madoff is "the other Bernie" (EBBERS.). That guy wasn't running a Ponzi scheme but simply moving the liabilities over to the asset column.

STOP WITH THE OVERTHINK!

CRIMINALS ARE STUPID!

Sat, 06/07/2014 - 21:39 | 4833525 Radical Marijuana
Radical Marijuana's picture

disabledvet, speaking of the "PHUCKING NEWS," I find this guy, Deek Jackson, to be too materialistic, but nevertheless, here is a link:

FKN Newz

Ill informed rumour – Comedy half truth

Sat, 06/07/2014 - 22:34 | 4833600 disabledvet
disabledvet's picture

"If it's funny it's probably true."

And that no joke...

Sun, 06/08/2014 - 01:31 | 4833787 Radical Marijuana
Radical Marijuana's picture

Yeah, like the images of "visual combat"

from willianbanzai7.

Funny because they are true, as well as

deeply disturbing because they are true.

E.g.:

http://www.zerohedge.com/contributed/2014-06-04/im-ok-youre-terrorist

I'M OK--You'Re a TeRRoRiST...

I thought some of Deek Jackson's earlier videos were very funny. However, after a while, it got too be too much of the same bad newz to still be able to laugh so much. Not really his fault, just the way that the world appears to actually be headed.

My personal favourite is this one:

https://www.youtube.com/watch?v=c7peMvnqwEo

The FKN Newz on DRUGS

He also did some more serious videos. like this:

https://www.youtube.com/watch?v=pKP9ru_G5vk

New History of Humanity - Astounding Scientific Discoveries
Sun, 06/08/2014 - 03:02 | 4833834 svayambhu108
svayambhu108's picture

FKN Newz, funny, subscribed

Sat, 06/07/2014 - 20:45 | 4833438 FieldingMellish
FieldingMellish's picture

OT - California Chrome did NOT win Belmont... therefore... no guaranteed 4+% GDP this year. Isn't economics wonderful?

Sat, 06/07/2014 - 21:18 | 4833450 Atomizer
Atomizer's picture

Shit, Yellen gave us Chrome Dome data leads.

Sat, 06/07/2014 - 22:35 | 4833603 disabledvet
disabledvet's picture

"Secrateriat wins by a mile" and other wonderful tales of the 70's.

Sun, 06/08/2014 - 10:10 | 4834062 CH1
CH1's picture

I never cared about horses - still don't - but Secretariat was amazing.

Sun, 06/08/2014 - 08:06 | 4833946 darteaus
darteaus's picture

Did it snow at the Belmont yesterday?

Sun, 06/08/2014 - 09:37 | 4834007 nmewn
nmewn's picture

lol...doesn't matter, if it snowed thats the reason it came in tied for fourth, if it didn't snow its still the reason it came in tied for fourth.

Naturally, the owner of California Chrome is complaining about the hot/cold/wet/dry/windy/calm longshot denialist Tonalist winning against the odds, even after California Chrome was allowed to skew the data...ahem, errr, ahhh...competition, in its favor (the breathe-right strips were allowed & peer reviewed) so obviously the Koch brothers are behind this!

Heh ;-)

Sun, 06/08/2014 - 13:14 | 4834406 MrButtoMcFarty
MrButtoMcFarty's picture

Nope....it was a gorgeous day to observe 120K+ drunken people cheer on the athletes....

Drunken frat boys with their shorts, jackets & bowties weaving through the 100 person long MacTruck line....

Drunken JAPs stumbling through the lawns and blankets, using their chubby arms wrapped in chiffon to balance as their FMPs stuck in the soft ground.

Weirdos with cellphones spending the day leering at the pretty young things stand in line at the portapot.

Sometimes a cigar really is just a big brown dick.

 

 

 

Sun, 06/08/2014 - 12:17 | 4834285 intric8
intric8's picture

Pegging economic predictions on a random mane trotting along in first place in a fucking horse race is a WAY better indicator than the consensus of 3000 economists and the fed res chair, i guarantee you that!

Sat, 06/07/2014 - 20:48 | 4833447 erg
erg's picture

The Great Mendacity.

Sun, 06/08/2014 - 10:07 | 4834043 what's that smell
what's that smell's picture

zhedge's favorite game: kick-the-welfare-queen.

to blame one head of the hydra when it's the hydra we should destroy is the SAME OLD TIRED GAME.

blame the powerless---wow, deepthink. randian madmen one and all.

from wikipedia: Even prior to her success with The Fountainhead, the novelist Ayn Rand was a friend of both Hazlitt and his wife, Frances, and it was Hazlitt who introduced Rand to Mises, bringing together the two figures who would become most associated with the defense of pure laissez-faire capitalism.[20] The two became admirers of Hazlitt and of one another.[21]

Economics in One Lesson (1946) has been called Hazlitt's "most enduring contribution,"[24] with a million copies sold and available in ten languages,[25] it is considered an "enduring classic" in conservativefree market and libertarian circles.[26] Ayn Rand called it a "magnificent job of theoretical exposition," while Congressman Ron Paul ranks it with the works of Frédéric Bastiat and F. A. Hayek.[27] Hayek himself praised the work, as did fellow Nobel Prize laureate Milton Friedman, who said that Hazlitt's description of the price system, for example, was "a true classic: timeless, correct, painlessly instructive."[5] In his book Basic EconomicsThomas Sowell also compliments Hazlitt, and Sowell's work has been cited as "following" in the "Bastiat-Hazlitt tradition" of economic exposition.[28] In 1996, Laissez Faire Books issued a 50th anniversary edition with an introduction by publisher and presidential candidate Steve Forbes.

Sat, 06/07/2014 - 20:55 | 4833454 Tinky
Tinky's picture

#whocouldaseenitcoming

Sat, 06/07/2014 - 21:09 | 4833472 mt paul
mt paul's picture

With neg interest rates

it won't be long now..

 

what about neg interest loans

 

Sun, 06/08/2014 - 01:27 | 4833783 Vincent Vega
Vincent Vega's picture

How 'bout negative taxes!?

Sat, 06/07/2014 - 21:07 | 4833474 Reaper
Reaper's picture

The great insanity is to trust in government, or leaders, or banks, or the used car salesman. The sheeple trust because they don't want the responsibility for their own thinking. Trust and believing is the basic human flaw.

I think, therefore, I'm my own master. I trust, therefore I'm their serf.

Sat, 06/07/2014 - 21:24 | 4833500 TeethVillage88s
TeethVillage88s's picture

yahhp

Sat, 06/07/2014 - 21:15 | 4833486 Woodyg
Woodyg's picture

It's not progressives stealing everything - it's the god damn fascists -
When has ANY progressive ever won an election?
Never.
These politicians are bought by the .01%ers who run the freaking place -
Insane oligarchs and fascists and their minions the kleptocrat who will sell out the country for a nice little payoff from the masters -

Sat, 06/07/2014 - 21:26 | 4833504 Atomizer
Atomizer's picture

Your just learning. Take your hate and convert into comedy. It really pisses them off.

/Winks

Sat, 06/07/2014 - 22:12 | 4833571 erg
erg's picture

Yes, above all else, the elite despise being laughed at...the subjects of ridicule. Really pisses them off. 

Sat, 06/07/2014 - 22:38 | 4833607 disabledvet
disabledvet's picture

Break balls...see if they really will take a swipe at you.

Sue the bastard.

That's how Bismark did it.

Well...the first part at least.

Sat, 06/07/2014 - 21:54 | 4833543 lasvegaspersona
lasvegaspersona's picture

Let Woody and Pete and Utah rest...they thought they were doing good.

Sat, 06/07/2014 - 22:37 | 4833602 MagicMoney
MagicMoney's picture

There is VERY LITTLE difference between a progressive and a fascist. They are mostly so identical, you could pass off a progressive as a fascist. The only difference being that fascist have dictatorships of one person, or single party and that probably isn't the difference either as progressives would love I am sure to have a complete monopoly over government, and rule.

Sun, 06/08/2014 - 07:33 | 4833926 dreadnaught
dreadnaught's picture

what a wanker.... Get a GED then peddle your opinions here-or an IQ >75

Sun, 06/08/2014 - 10:03 | 4834054 g speed
g speed's picture

come on Woodyg--its just gov't---you make it too complicated with all the lables--that's the problem with trying to think about fixing it--the language is too slippery to arrive at any conclusions----just know that it's force and its criminal and its evil and its anti life and it's the gov't--all of it and nothing but it--

Sat, 06/07/2014 - 21:22 | 4833497 phoolish
phoolish's picture

Everyday, the people of Weimar expected things to change too.  But things didn't change until most were destitute.

Sat, 06/07/2014 - 21:30 | 4833498 Radical Marijuana
Radical Marijuana's picture

Pretty good article ... 

However, still way too optimistic.

What it refers to as the Great Insanity I refer to as Peak Insanity, which is way worse than merely Great Insanity, because it results when the "money" made out of nothing as debts to finance strip-mining the planet's natural resources reaches some real limits of diminishing returns. At first glance, I would tend to agree with the view that: "This is the system in the developed world today and it will not be stopped except by Mother Nature and Darwin." However, that view typically tends to be grossly oversimplified in the ways that it regards the relationships between natural selection, and artificial selection.

Although I enjoyed rereading those classic quotes featured in that article, those are still operating out of the old-fashioned frames of reference of false fundamental dichotomies, and related impossible ideals. That is why the proposed sorts of possible "resets" indicated in that article tended towards reactionary revolution, and the standard nostalgic nonsense that we could somehow go through great troubles and turmoil, to then return to some sort of sanity again. LOL! Peak Insanities are about the established systems of legalized lies backed by legalized violence going through severe social storms and psychotic breakdowns. The debt slavery systems drive their numbers to become debt insanities, and then, since the debt controls depended upon the death controls, that will provoke death insanities.

This article does not sufficiently synthesize the view that money is necessarily measurement backed by murder, nor does it adequately respect the role that the production of destruction has in controlling production. Although I agreed with most of what it said, to the degree that it said that, I continue to regard such analyses as too shallow. The existence of globalized electronic frauds, backed by the force of atomic bombs, requires a much more profound series of paradigm shifts through intellectual scientific revolutions than hinted at in this article above.

Sat, 06/07/2014 - 22:46 | 4833620 disabledvet
disabledvet's picture

Not an expert but is it "breakdown" or "break"?

My understanding is "visualizing alternate realities and believing them to be true" can create some serious investor error.

Sometimes "fraud" is the least of your worries.

Imagine if the next Fed Head was like...Two Face or something. "I'll flip a coin to decide the decision."

Certainly solves the complexity...or even "convexity"...problem.

Sun, 06/08/2014 - 01:39 | 4833797 Radical Marijuana
Radical Marijuana's picture

The Federal Reserve Board would probably make overall better decisions if it just flipped a coin. As it is now, their decisions are perpetually rigged to favour the maximum insiders, so that they generated the situtions like: "Heads, I win. Tails, you lose."

The HEART of the current madness of crowds and the great insanity is NOT merely something as superficial as "moral hazard!" The center of the situation is the triumphant application of the methods of organized crime, in order to dominate the political processes, so that the banksters frauds are enforced by governments, and so, everyone else has to live inside of those systems of enforced frauds!

Therefore, America is a debt slavery society, which is automatically headed towards a debt insanity society. I do not know which is better English, psychotic breakdown or psychotic break, however, the MADness of Money As Debt inevitably drives us all in that direction!

Sat, 06/07/2014 - 21:25 | 4833502 TeraByte
TeraByte's picture

All so sad and true and crystallizes the enormity of the problem. When Mother Nature takes over the cure is merciless.

Sat, 06/07/2014 - 21:36 | 4833519 TeethVillage88s
TeethVillage88s's picture

"...Of all the potential targets for propaganda, children are the most vulnerable because they are the most unprepared for the critical reasoning and contextual comprehension required to determine whether a message is propaganda or not. Children's vulnerability to propaganda is rooted in developmental psychology. The attention children give their environment during development, due to the process of developing their understanding of the world, will cause them to absorb propaganda indiscriminately. Also, children are highly imitative: studies by Albert Bandura, Dorothea Ross and Sheila A. Ross in the 1960s indicated..."

https://en.wikipedia.org/wiki/Propaganda#Modern_propaganda

Study, it is a good idea for me as well as you.

In Nazi Germany, the education system was thoroughly co-opted to indoctrinate the German youth with anti-Semitic ideology. This was accomplished through the National Socialist Teachers League, of which 97% of all German teachers were members in 1937.

Mostly, we see subtle propaganda to remove US Values.

Sat, 06/07/2014 - 21:57 | 4833549 Radical Marijuana
Radical Marijuana's picture

Yes, TeethVillage88s, in the USA it was the "Money Trust's" "Foundations" that were able to direct the American schools to jump through the demanded hoops, in order to get their funding. Of course, it was also the case that the same pyramidion people deliberately engaged in campaigns to buy up control over the press, which has now become control over a handful of corporations that dominate something like 90% of the information that most people ever get.

Basically, the feedback roles of money and political power have become like an almost totally metastasized cancer. All of the ordinary people had their lives controlled by money, while those who controlled the money supply thereby controlled the people. It is practically impossible to imagine how the degree that the public "money" supply has become government enforced frauds by the banksters could be corrected, other than through the established systems going MAD ... after which, all bets are off regarding what the world would look like then.

The only thing I am sure of is that is IMPOSSIBLE for any genuine solutions to those problems to amount to going backwards to any old-fashioned religions or ideologies. However, at the same time, for enough human beings to go forwards, to appreciate a better philosophy of science, appropriate for a technologically based civilization, appears practically impossible, precisely because the rulings classes have been way too successful in dumbing-down the vast majority of the people (which has even become due to biological, not merely cultural, injuries.)

As this article stated: "The school systems are designed to create peasants and serfs ..." However, while its hopes for people relearning old-fashioned ideas as a response to that are improbable, my suggestions that we actually need intellectual scientific revolutions are, in that real context, practically impossible political miracles. However, one thing continues to be very probable, and that is conditions will likely get worse for the majority of people, and therefore, start forcing them to think more.

Sat, 06/07/2014 - 23:06 | 4833646 disabledvet
disabledvet's picture

I think the US public school system is quite good actually...certainly compared to Nazi Germany.

One of the startling facts about the people who executed on Plan Ost was how intelligent they all were (in addition to be highly motivated and hard working.) And of course the State Mission was obedience...directly to "their Fuhrer"...not just "round up the undesirables."

I don't think we're going to have an "Obama Division" anytime soon. That was not true in Nazi Germany.

Those Divisions fought to the last man and absolutely devastated Russian Army divisions ten times their size.

This is not meant as supporting this stuff...but Waffen SS divisions were probably the greatest war fighters in all of History.

The Allies only fought against them once in a formalized battle...at the Battle of the Bulge.

Incredibly long after the war was lost they still had time to launch one more massive offensive into Hungary...which was totally devastating I might add.

No military has been seen like that since...or probably before even.

"There was a science to it." And that science proved highly effective.

Sun, 06/08/2014 - 01:47 | 4833808 Radical Marijuana
Radical Marijuana's picture

Yeah, to make the brainwashing continue to be effective, the social pyramid system would have to destroy the current freedom of expression on the Internet. That is not to say that they are not trying ... However, I do not believe that they had enough imagination to fully comprehend the personal computer and Internet revolution. Sure, they have probably been controlling behind the scenes which companies actually became commercial successes in those domains, however, the basically astonishing way that anyone can learn about things, in radical ways that were never possible before for most people in human history, is ASTONISHING!

Therefore, I agree, that so far, America is not nearly as bad as NAZI Germany became ... After all, anyone who wants to, these days, can find lots of articulate warnings about the threats of going "From Freedom to Fascism," etc., which was not the kind of information available to most Germans in the 1930s. For instance, people like Alex Jones, or Jeff Rense, have millions and millions of people clicking on their Web sites!

It is always a package deal, with the best and the worst stuck together!

Sun, 06/08/2014 - 11:53 | 4834238 Uncle Remus
Uncle Remus's picture

The FSA IS the Obama Division.

 

DV, you're missing the big globalist picture. This time it's worse - they are not even trying the Nationalist route like Nazi Germany. The Globalist Trans-national passport-of-convenience-du jour ruling class could give a fuck.

 

Public schools aren't - they are indoctrination camps - period.

Sun, 06/08/2014 - 11:56 | 4834248 Vooter
Vooter's picture

"Those Divisions fought to the last man and absolutely devastated Russian Army divisions ten times their size."

LOL...and then they died. And all their hard work and courage meant...nothing. They killed and died for NOTHING. They killed and died so their masters could feed off their corpses and laugh. But you and so many other millions will never get that, will you? As Carl Sagan was quoted as saying in this very article: "One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken."

 

Sat, 06/07/2014 - 21:41 | 4833529 I Write Code
I Write Code's picture

From Ambrose Bierce's "The Devil's Dictionary":

GOVERNMENT, n. A modern Chronos who devours his own children. The priesthood are charged with the duty of preparing them for his tooth. 

Sat, 06/07/2014 - 21:48 | 4833539 max2205
max2205's picture

This is wishful thinking

Sat, 06/07/2014 - 21:51 | 4833542 Billy O'Naire
Billy O'Naire's picture

The Hedge Constitution in one article.

Terrific.

Sat, 06/07/2014 - 22:02 | 4833557 Goldilocks
Goldilocks's picture

FREDDIE MERCURY " THE GREAT PRETENDER" HQ - QUEEN
http://www.youtube.com/watch?v=1LyoQS0EvcE (3:34)

Sat, 06/07/2014 - 22:22 | 4833580 PeeramidIdeologies
PeeramidIdeologies's picture

The Bon Fire of the Vanities. I've had that book laying around for years now. Doubt I'm gonna read it.

Sat, 06/07/2014 - 22:24 | 4833584 Cabreado
Cabreado's picture

"let’s call it the great INSANITY"

That doesn't work very well.

Let's call it false leadership come to a head.

Let's call it ignorance, the great enabler.

Let's call it the endgame of Self-Absorption.

The attempt at solutions... let's direct attention to points of corruption and control.

"Insanity" insulates and deflects, and goes nowhere, but feeds the trajectory.

Sat, 06/07/2014 - 22:56 | 4833627 nwcruiser
nwcruiser's picture

Zombies do not know they are Zombies.

Sun, 06/08/2014 - 11:45 | 4834218 Uncle Remus
Uncle Remus's picture

"How can it not know what it is?"

Sat, 06/07/2014 - 23:33 | 4833673 kchrisc
kchrisc's picture

"Never in my 30+ year career as a market observer have I seen so many out on a limb which is about to be SAWED OFF."

The criminals of the FedRes and their pol and crat puppets are manning the saw.

 

"I'm manning the guillotine."

Sun, 06/08/2014 - 15:10 | 4834669 kurt
kurt's picture

I repair guillotines.

Mon, 06/09/2014 - 00:24 | 4836125 kchrisc
kchrisc's picture

Build one. That is where the real satisfaction is.

Mon, 06/09/2014 - 11:12 | 4837092 Ms. Erable
Ms. Erable's picture

I think using one on someone derserving of it would be more satisfying.

Sun, 06/08/2014 - 00:00 | 4833705 I Write Code
I Write Code's picture

You said:

Never in my 30+ year career as a market observer have I seen so many out on a limb which is about to be SAWED OFF.

Yeah but what you don't seem to realize is that after it is sawed off, it will rise into the heavens!

Sun, 06/08/2014 - 12:28 | 4834310 motorollin
motorollin's picture

10AM and 330PM levitation will surely do that. Bullish on branches!

Sun, 06/08/2014 - 00:11 | 4833717 Wild Theories
Wild Theories's picture

Crowds are not insane, that's just a misnomer because we humans still can't face the one obvious fact: we are animals and follow typical animal behaviour patterns.

 

A crowd of humans are no more stupid or 'crazy' than any large group of animals, of any species.

It's our self-conditioning insisting we are 'above animals' that makes everyone blind to this, including all those philosophers and so-called 'great minds' throughout time.

Even when the evidence is in your fucking face every fucking day, including your own fucking behaviour.

 

Treat men like intelligent beings and you'll get fucked in the face, and not in a nice way.

Treat men like smart monkeys and you'll live a wonderful life and enjoy every banana you eat.

Sun, 06/08/2014 - 01:50 | 4833810 Radical Marijuana
Radical Marijuana's picture

Tragic truth, Wild Theories.

I try to treat men like intelligent beings

... not many bananas for me!

Mon, 06/09/2014 - 02:23 | 4836270 Wild Theories
Wild Theories's picture

It's only tragic if you still hold on to the false hopes of "we can be better than this..."

 

I''ve become of totally happy and content little camper 24/7 without needing drugs or alcohol to get there.

I laugh at silly kids down the road tripping over on their bike tricks, I enjoy the birds chirping over my head and shrug at the poo they leave over the car, I don't get stressed out about my washing getting doused by a sudden storm just as I come home - it's all nature baby and I'm part of it!

I'll merrily stab someone in the back in the office if they were gonna do the same to me, even if not I'll just shrug and say a silent 'my bad' and move on, and I'll help little old ladies cross the road whenever and feel really good about it. 

Oh just today I returned a cane to an old geezer who left it behind in the supermarket, he thanked me, I felt good.

 

Just because I understand the finance and geopolitical stuff flowing across the world doesn't mean I stress about it, and I'm probably one of a minority who enjoys delving into all this and doesn't stress.

Life is good! :)

Sun, 06/08/2014 - 00:59 | 4833764 luckylongshot
luckylongshot's picture

That the system is about to fail is clear but that we will disappear into a black hole is not so clear. The situation of too much debt has occurred regularly throughout history dating back to the Pharoah who indebted Egypt building the great Pyramid. In every case in history the solution has been a massive debt write off and this is the obvious solution in this case.

The key is how this occurs. If Governments are smart they will use the law to do this and cancel all debt on the basis of lack of consideration. This is a valid approach as banks create money they lend out of thin air. As the private banks fail following this move states can nationalise them and guarantee the public deposits which they can create new currency to cover.

Released from the burden of debt economies would thrive and we would be back on the path to prosperity, but without banksters.

Sun, 06/08/2014 - 01:53 | 4833811 Radical Marijuana
Radical Marijuana's picture

Applying the doctrine of "odious debt" ought to be one of the necessary points of any sufficient monetary revolution!

Sun, 06/08/2014 - 02:03 | 4833815 russwinter
russwinter's picture

Mockingbird Media. Money Management Business Cover their Tracks:

http://winteractionables.com/?p=12236

 

 

Sun, 06/08/2014 - 02:42 | 4833832 Joebloinvestor
Joebloinvestor's picture

I am starting to wish they would publish every famous person counter quote to the quotes they use to forward their argument.

 

 

Sun, 06/08/2014 - 15:09 | 4834667 kurt
kurt's picture

I believe the opposite.

Sun, 06/08/2014 - 04:42 | 4833866 falak pema
falak pema's picture

So many aphorisms to say that the Oligarchs are right to exploit the deaf, dumb and blind and the people wrong to complain; as they don't know how to defend themselves. 

Not that I know what the solution is except balance and compromise at the collective level. 

Fat tails are always dangerous as they lead to despotism if allowed to grow.

Reverting to the mean is the rule in all constructs. 

Sun, 06/08/2014 - 05:39 | 4833883 atthelake
atthelake's picture

There are 7.5 Billion of us and a Million of them and we can't figure out how to stop this??????

Sun, 06/08/2014 - 08:13 | 4833949 Unstable Condition
Unstable Condition's picture

No, not when 7.4 billion of "us" are distracted with bread and circuses.

The "FSA" has expanded to critical mass.

Sun, 06/08/2014 - 08:08 | 4833947 Last of the Mid...
Last of the Middle Class's picture

crowds can be controlled. You tap into their individual fear and direct their anger where you want it to go. Fuzzy little polar bears have no ice, fracking gives everyone cancer, and racism is a crime punishable by complete and total loss of everything you own. If you can peer through the haze of government/media propaganda and are capable of critical thinking then you know next they'll be coming for you and your children through any and every type of data base that can be collected about your actions and thoughts. It may be time to keep your head down, play dumb, recite the mantra of the confused low information voter and quietly prepare.

Sun, 06/08/2014 - 08:58 | 4833979 Roll Tide
Roll Tide's picture

Do we at last have a working hypothesis for how the empty suit became the resident of 1600 Pennsylvania Ave?  I think so.  After the revolution guys like OB will be hunted down with dogs.  Soon.  Very soon.

Sun, 06/08/2014 - 11:40 | 4834202 Uncle Remus
Uncle Remus's picture

Wasting time and resources going after Pinocchio. Follow the strings...er money.

Sun, 06/08/2014 - 12:20 | 4834287 Vooter
Vooter's picture

"Do we at last have a working hypothesis for how the empty suit became the resident of 1600 Pennsylvania Ave?"

Being an empty suit is the NO. 1 QUALIFICATION for taking up residence at 1600 Pennsylvania Ave. What don't you get?

Sun, 06/08/2014 - 09:14 | 4833988 Umh
Umh's picture

It’s not an endlessly expanding list of rights — the “right” to education, the “right” to health care, the “right” to food and housing. That’s not freedom, that’s dependency. Those aren’t rights, those are the rations of slavery — hay and a barn for human cattle.   --- P.J. O'Rourke 1993

Sun, 06/08/2014 - 13:06 | 4834392 TheFulishBastid
TheFulishBastid's picture

Those pesky socialist always mucking about with my invisible-handed, completly rational markets!

Sun, 06/08/2014 - 14:21 | 4834553 TrustbutVerify
TrustbutVerify's picture

Not that I disagree with the general consensus here but...How many here have made efforts or have actually redirected their buying habits to USA goods?  Or goods from this hemisphere ...Canada?  

I love all this philosophical stuff but how about individual practicality and action.  We're really quick with our words, aren't we.  At some point its time to get real.   

Maybe if the man down the street thought he could make you something, or do something for you you might buy at a wage he thought he could feed his family he might also have the money to buy somethnig from you.  Redirect your spending habits.  I know its not easy. 

Sun, 06/08/2014 - 14:46 | 4834611 MedicalQuack
MedicalQuack's picture

More insanity here too with health insurance as United Healthcare is going round 2 with firing more Medicare advantage MDs with narrow networks, now expanded into 2 more states, MA and TN with firing more doctors.

http://ducknetweb.blogspot.com/2014/06/united-healthcare-round-two-with-...

What really odd is that they don't even know what they are doing here as a few months ago the company bid and won the bid in Maryland for a Medicare Advantage contract and found they had no doctors to see the patients as they had narrowed their network down to where there were none and County in Maryland had no choice but to rescind the contract..that's is insanity.

http://ducknetweb.blogspot.com/2014/01/howard-county-school-board-in-mar...

However at the same time the company no problem paying out a claim for $175,000 for the wife of a New York banker to have a hammer toe procedure that normally cost $15k maximum or less almost everywhere else in the country...there's some more insanity for you.

http://ducknetweb.blogspot.com/2014/03/17509880-to-fix-hammer-toe-billed...

It's the Killer Algorithms out there with people not being able to tell what is virtual and what is a real world value out there.  Videos from people smarter than me help explain. 

http://www.ducknet.net/attack-of-the-killer-algorithms/

Sun, 06/08/2014 - 16:14 | 4834776 MedicalQuack
MedicalQuack's picture

Healthcare insanity....

Here’s some tweets you might enjoy….in 2010 New York yanked MD's license and he’s been a surgeon at Miami VA…and of course according to Vitals and Healthgrades he’s never left or lost his license and you can still make an appointment to see him. 

This makes a mockery of the rediculous article a couple weeks ago in the Wall Street Journal saying doctors need to “fix” their online presences.  Vitals and Healthgrades really don’t care what’s out there as they are going to ad impression revenue, just click on the page and be exposed to or click on ads is what’s going on here with “data selling” as again as they just don’t care and want that ad revenue which is more important it appears than the MD doctor data they include.

Don't use these sites when looking for a doctor or real information from patients about them:)  There's plenty of dead doctors too on these sites that are still practicing on the web after life too:)  You can rate them too. 

MedicalQuack MD readers here be sure and fix your #clickbait at Vitals and Healthgrades:) Like you have time to help those sites w their ad revenue?

 

MedicalQuack My last tweet contains links to both Vitals and Healthgrades showing VA MD who lost license still practicing in New York:) #clickbait

 

MedicalQuack VA MD lost license in NY? Want to race me to Healthgrades & Vitals to rate him:) #flaweddata bit.ly/1kSBITU | bit.ly/1kSBOuQ

 

MedicalQuack Top Miami VA doctor lost medical license in NY Dr. Vincent DeGenmaro via Westport News bit.ly/1kSB4pF

Mon, 06/09/2014 - 03:57 | 4836326 cape_royds
cape_royds's picture

Marx is not about envy. Notice that the author has to quote Hazlitt, rather than Marx, even all texts of Marx are readily available online.

The proletarian does not "envy" the bourgeois.

The proletarian does not want to replace the bourgeois. Why would the people who create almost all value want to become like those who create almost none?

Understandably, the bourgeois has a hard time understanding why anybody wouldn't want to be him.

You can keep your violin-shaped swimming pool, little Ms. Bourgeois--it's all about balance. But the proletarians are going to keep the means of production.

Sat, 06/14/2014 - 09:19 | 4856310 theoilwelldoctor
theoilwelldoctor's picture

Whomever put this together did me a great favor.  Thanks.

Do NOT follow this link or you will be banned from the site!