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Reality-Optional Economics: Cockamamie Stories Infecting the Body Politic

Tyler Durden's picture




 

Submitted by James H. Kunstler via Peak Prosperity,

The total tonnage of economic malarkey being shoveled over the American public these days would make the late Dr. Joseph Goebbels (Nazi Minister of “Public Enlightenment and Propaganda”) turn green in his grave with envy. It’s a staggering phenomenon because little about it is conspiratorial; rather, it’s the consensual expression of a public that wants desperately to believe things that are untrue, and an economic leadership equally credulous, unmanned, and avid to furnish the necessary narratives that might preserve their jobs and perqs.

By “economic leadership” I mean the consortium of business executives, government officials, academic economists, and media disseminators -- and even some bloggers and financial advisers. Some of the latter may be “talking their book,” since they may manage other people’s money and need those other people to believe in the soundness of markets, true or not. And some of the former may be motivated by the fear that even a little erosion of trust in the system could lead to a collapse of the system basted together by little more than blind faith in currencies and dubious “innovative” instruments. But most of these characters are mainly just flat-out delusional.

Recently, John Mauldin predicted (on a recent Financial Sense podcast) that “…pretty soon we’re gonna be energy independent… a net energy exporter in the next three, four years.” This meme has been all over the web and the mainstream media since about 2011, emitted by commentators who haven’t noticed either the steep production declines in shale oil and gas wells or the supernatural flows of junk-derived capital for a drilling frenzy that distracts observers from the financial incongruities of the entire shale energy model (in which the word “profit” is absent).

Anyway, a week after Mauldin’s prediction, the US Energy Information Agency (EIA) published a 96% knocked-down revised estimate of recoverable oil from the Monterey/Santos shale formation, going from about 15.4 billion barrels to about 600 million (or about 30 days of US supply). That 15.4 billion represented about 64% of the EIA’s total for all the nation’s shale oil reserves, so one might expect at least a shock to the system of junk financing.

On the gas side, you have the stark fact that the first three big shale gas “plays” of the shale era (the Barnett, the Haynesville, and the Fayetteville) are now in decline or flat, leaving the Marcellus and Eagle Ford. What makes anyone think that the steep decline rates in the early plays won’t lead to the same fate for these two plays? (Answer: wishful thinking.) The Monterey shale play was going to gin up 2.8 million new jobs and boost California’s tax haul by about $25 billion. As Jim Hansen, publisher of The Master Resource Report pointed out:

Probably the most important lesson from this is that many of the distinctions between resources, reserves, technically recoverable reserves and so on are lost on the mass media, the public and most importantly government leadership. Headline numbers like 15.4 billion barrels and 2.8 million jobs are what set the agenda. Reality is much more nuanced, complicated and sometimes grossly different.

Yet there remains a number of other prominent cheerleaders of the “shale miracle.” The magisterial George Friedman of the geopolitical website Stratfors.com, came on David McAlvaney’s weekly podcast touting the prospects of massive gas exports to Europe and Asia. Friedman characterized it as:

“…a technological revolution as dramatic as Silicon Valley was in introducing the microchip. All the assumptions about energy in the world have been turned on their heads. The United States is now a major producer. The problem is logistic. How do you get it from here to there.”

This is worse than a simplistic view of the situation. The shale gas industry has never been profitable at US prices seen since production ramped up bigtime around 2007. Currently it’s at $4.60/mmbtu, still well under an economically rational level, though it swooned near a miserable $2 just two years ago. So the export idea is that US can build out a massive new infrastructure of gas pipeline terminals to liquefy the gas and a fleet of expensive liquid gas tankers in order to ship gas to Europe and Asia, where demand has exploded, and the price is as high as $15/mmbtu. Okay, when and if the US has the ability to export all this gas (big if, considering the needed cap-ex), what happens to American customers who find themselves competing for this commodity with five billion Asians and Europeans? Do they just freeze in the dark?  Mr. Friedman apparently failed to notice the hemorrhaging of jobs and incomes among the disintegrating American middle class. I wonder if he thinks they can afford to run their furnaces at $15/mmbtu.           

Willful misunderstanding of the shale gas situation is just one of many examples of thought failure among the class of Americans who even pretend to think for a living. It cannot be due to a sheer lack of brain power (though who can say what the aggregate effect of food additives, off-gassing carpets, and other chemical insults might have had on recent American generations). We apparently just don’t like reality and seem to think we can turn it off, or switch to another channel or web address for a better buzz. This is surely true of the investing sector of the public, some of whom still read and occasionally experience activity that resembles thinking. But they switch the channel away from reality to Fox, Bloomberg, and CNBC for the excellent reason that their good fortune in rising rigged markets makes them feel immune from danger. The state and the central bank have declared unconditional ZIRP and QE, and the portfolios resound with the ka-ching of dividends and capital gains, so why worry… be happy!

It’s a tragic fact of history that sometimes societies lose their bearings. They make terrible choices and bad things happen. It doesn’t have to take the form of a conspiracy, but rather a consensus -- that is, a simple agreement between people in charge (and the public subject to their rule) about where that society will direct its priorities and make its investments. Proof of this was the behavior of national leaders and the public in the aftermath of the 2008 financial crash. The system was hugely burdened by the debris of loans gone bad, a lot of it packaged into fraudulent bonds. The biggest banks in the nation were implicated in the creation of these frauds and left holding a lot of their own bad paper when the music stopped. Clearing the debris would have restored structural integrity to the banking system. Prosecuting financial criminals in the executive suites of the banks would have disincentivized racketeering and control fraud.

American leadership allowed neither restructuring or prosecution. Banks (except for Lehman Brothers, the unloved “fall guy”) were not only prevented from failing, they were stuffed with taxpayer bailout money, plugged into a new Federal Reserve carry-trade racket (ZIRP), given a green light on unlimited accounting fraud (FASB 157), and allowed to continue their old rackets in new ways, e.g. the new bundled rental payment bonds, “covenant-lite” junk bonds,  and new iterations of shady collateralized loan obligations. And, of course, not one bank executive was prosecuted (not to say jailed) for criminal shenanigans that cost the US economy $22 trillion according to the US General Accounting Office.

The public went along with all this to the degree that few of their political representatives were turned out of office, nor was any effective political resistance mounted besides two movements that proved to be weak and ineffectual: Occupy Wall Street and the Tea Party. (David Brat, who unseated House Majority Leader Eric Cantor in the recent Virginia primary, tried and failed to get backing from the Tea Party.)  President Obama, who first campaigned on “hope and change” in the very moment when Wall Street blew itself up, and did absolutely nothing to change the racket-riddled banking system afterward, was rewarded with re-election in 2012. The obvious conclusion is that America, from top to bottom, didn’t want to restructure anything about our national life — and still doesn’t. It wants to stay stuck where it is in a very perilous moment of history, and it has enlisted a laundry list of fallacious beliefs to support its “do nothing” spirit.

Here’s a roundup of the other items from the roster of delusions currently making the rounds.

  • We’ve entered a “manufacturing renaissance.”
  • The “Central Corridor” of the USA, running from Texas to Minnesota, will soon turn into a dynamic industrial powerhouse.
  • A revolution in higher education is underway that will produce a generation of super geniuses.
  • The US financial markets will dominate the world indefinitely.
  • Accelerating advancements in technology will ring in a new golden age of comfort, leisure, and security.
  • The USA has unmatched exceptional entrepreneurial spirit.

In Part 2: On The Fast Track To Crisis, we explore why each of these notions is untrue. Subscribing to them will leave us at least disappointed and at most woefully unprepared for the circumstances in store for our country.

Click here to read Part 2 of this report. (Free executive summary. Enrollment required for full access)

 

 

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Wed, 07/09/2014 - 19:27 | 4941322 Gringo Viejo
Gringo Viejo's picture

Energy indepedence?
Maybe when the first air powered car rolls off the assembly line. Or maybe powered by hubris. God knows there's no shortage of that.

Wed, 07/09/2014 - 19:32 | 4941386 Cattender
Cattender's picture

Look People we are in the midst of a HUGE Economic Recovery right now. anything Else anyone says is nothing more than a Conspiracy theory!

Wed, 07/09/2014 - 19:51 | 4941412 DoChenRollingBearing
DoChenRollingBearing's picture

Kuntsler may very well be right, particularly his sharp observations on the decline of American culture.  And, there really is one huge cognitive dissonance out in our fair land...  

But let's look at all of the alternatives:

USA has *some* oil, gas and coal.  We are pretty well set-up with water.  And in general our natural resource situation is not bad.  Huge debts and a lot of clueless people.  Relatively free, .gov and banksters lie & steal.

Brazil has little oil, lots of water, lots of farmland.  Huge corruption.  Unattractive culture for investment,  Relatively free, but even more Socialist than USA.  .gov and banksters lie & steal.

Russia has LOTS of oil and many other resources.  Huge corruption, BAD demographics.  Kind-of free but very corrupt.  .gov is too stern against political opponents.  Banksters and oligarchs lie & steal.  Cold in the winter.

India has little oil, few resources, not much water but lots of people.  Huge corruption, Socialist ideas prediminate.  Inefficient.  Worst infrastructure of the lot.

China has lots of people, not much energy water, or other resources.  Corrupt Communist dictatorship.  Environmental catastrophes and bad demographics.  Huge corruption at all levels of governement and private sector, cronyism.  BIG debts.

Europe has little oil, and is not well endowed with other resources.  Corruption and Socialism on the rise, but Europeans are free (a big plus).  Weak military and dependent on Russia's good graces (yow...).  Demographic problems, Muslim immigrants.  Debt.

So, pick 'em...

Wed, 07/09/2014 - 19:55 | 4941446 DoChenRollingBearing
DoChenRollingBearing's picture

 

I forgot Japan...

Japan has lots of people on not much land.  Few resources, lots of debt.  They also have Fukushima.  Their culture encourages hard work (a big plus).  They do not much welcome outsiders (nets out to a negative IMO).

Wed, 07/09/2014 - 20:25 | 4941496 ZerOhead
ZerOhead's picture

USA > lots of coal and lots of farmland. Unfortunately also lots of idiots like Obama, Clintons, Bush etc etc...

 

NUMBER ONE IN GLOBAL COAL DEPOSITS (Not by a small amount either)

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

 

NUMBER ONE IN GLOBAL ARABLE FARMLAND

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

 

Also lots more potential farmland. Just add water and energy from coal to pump it and it makes it's own sauce.

Wed, 07/09/2014 - 21:00 | 4941643 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Well, yes and yes to your Number Ones.  I was trying to keep my comment relatively short, that means over-generalizing and/or leaving things out.

There are idiots like Obamas and Bushes everywhere.

(Although I did not like either Clinton, I would not call them idiots)

***

Kuntsler may be right about energy though ("we're all going to die!!!").  I have not studied the issue enough to rebut him on oil & gas.

Wed, 07/09/2014 - 21:24 | 4941704 Yellowhoard
Yellowhoard's picture

Bush, Obama and Clinton's aren't idiots.

They are systematically destroying America so we can be rolled into the new international order as the serfs that they believe we are.

Wed, 07/09/2014 - 21:37 | 4941745 DoChenRollingBearing
DoChenRollingBearing's picture

Since I do not know them personally, I will accept what you have to say.

+ 1  Smile.  :p

Wed, 07/09/2014 - 22:51 | 4942019 bunzbunzbunz
bunzbunzbunz's picture

The dollar is getting replaced by bitcoin. Get some free at http://freebitco.in/?r=25727

Thu, 07/10/2014 - 01:08 | 4942321 DoChenRollingBearing
DoChenRollingBearing's picture

I'll just buy mine, fair and square.

H/T and shout out to B.I. !!

Wed, 07/09/2014 - 22:44 | 4941995 ISEEIT
ISEEIT's picture

"Bush, Obama and Clinton's aren't idiots."

So you forgot a 'bush' but your point is actually somewhat valid. These sick fucks who have been 'governing' us are in on the plan.

'America' as in all of North America is a fat 'steal' for the criminal sociopaths posing as 'government'.

We all know this.

It's clearly true. We are being systematically raped by the exact same sorts of monstrous criminal gangs that have ALWAYS functioned as a parasite class pitted against humanity.

 

The criminal gang is GOVERNMENT.......

 

Blame the various sociopaths they sleep with all day long but the FACT is GOVERNMENT is the linchpin of all that infects us.

 

The 'progressive' left (Fucking statist tool morons) blame 'capitalism'...Shit, they blame ANYTHING other than Daddy who ALWAYS get's his but these poor little abused bitches simply refuse to acknowledge that the 'pimp' is why they cry themselves to sleep at night with a bloody ass and two black eyes.

Wed, 07/09/2014 - 20:07 | 4941453 ZerOhead
ZerOhead's picture

.

Wed, 07/09/2014 - 20:08 | 4941498 disabledvet
disabledvet's picture

ACCKK!

Actually Goebells had better data. Just Google "Baltic Germans."

Some of those families had been there for 800 years.

Sorry but...that shit never dies. The Capital will always be Berlin.

Wed, 07/09/2014 - 20:12 | 4941459 CCanuck
CCanuck's picture

Dochen I have to -1 for cog-diss.....no corruption in the US???.....fuck the United States leads the world in corruption at this point...everyone at everylevel is doing it....its whats for dinner in the NAU.

Wed, 07/09/2014 - 21:09 | 4941651 DoChenRollingBearing
DoChenRollingBearing's picture

As I mentioned just above, I had to over-generalize and leave items out to save space.  You are quite right about bankster corruption in the USA.  I DID mention that our .gov and banksters lie & steal, please look again.  (Nor is Canada free of that, when I was in Montreal I listened to their radio and learned something).

I would NOT argue that the USA leads the world in corruption though.  I have some limited experience with corruption in some foreign lands, and IMO it is worse in various other places.  "Been there, done that."

Wed, 07/09/2014 - 21:30 | 4941717 CCanuck
CCanuck's picture

I don't believe you were attempting to exclude, I just found it curious that you listed corruption for all but USA...kind of cog-disish was my point....I agree Canada is the worst for cog-dis corruption...

Just a side note....get used to NAU, no more Canada, USA, Mexico...they will only be applied to ceremonial patriotic celebrations used to make the masses feel good about where they "contribute from"

+1 Thanks for responding.

 

Wed, 07/09/2014 - 21:35 | 4941742 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 back at you.

Wed, 07/09/2014 - 20:00 | 4941471 BuddyEffed
BuddyEffed's picture

Just thought I'd get this in somewhere, so here.

Anybody see the news about a possible new canal to compete with the Panama Canal?

With the Baltic Dry Index showing a lot of weakness, what are the chances a new canal could be malinvestment?

Wed, 07/09/2014 - 20:20 | 4941537 disabledvet
disabledvet's picture

HUGE project. (Originally American. "The first tycoon" Cornelius Vanderbilt. There are very serious environmental considerations.

If taken into account...HUGELY expensive.

Thu, 07/10/2014 - 03:08 | 4942422 Zog the Bastiat
Zog the Bastiat's picture

Not any huger of a project than the Panama Canal was.

And it gives China a massive trading advantage over the US.

It'll happen.

Wed, 07/09/2014 - 20:52 | 4941473 Escrava Isaura
Escrava Isaura's picture

DoChenRollingBearing....

Paraguay!

Plenty of electricity, water, subtropical weather, Inland [isolated].

By the way, well done list.  And agree on Brazil. I was born there. And the Brazilian workers do have more power than US workers. Not that I need to remind you, everybody must vote in Brazil.

 

Wed, 07/09/2014 - 21:11 | 4941667 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://www.treasury.gov/resource-center/tax-policy/treaties/pages/fatca-...

Anyone who is not on that list for starters.

Paraguay is an option and oddly enough or maybe not Belize aka the home of CYNK Technologies the little engine with no assets that could have a market cap of over 3 billion.

Wed, 07/09/2014 - 21:43 | 4941765 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Escrava Isaura

I left out developing countries (other than the BRICs) because those would strictly be "Plan B" for us.  And a more fair comparison of the USA's plusses and minuses would be with the other LARGE countries.

Paraguay slipped under my radar until one of my blog readers brought it to my attention.  My wife and I honeymooned there in 1985, and it was a very slow place.  Apparently it is moving along rather nicely now.  My reader's family is thinking of moving there, and they have done their homework.

Peru is our Plan B.  Mi esposa es peruana, and our company is located there, so we have an "infrastructure" all set up for us if it comes to that.

Thu, 07/10/2014 - 09:05 | 4942808 Cathartes Aura
Cathartes Aura's picture

just parkin' these links here, as additional information. . .

Now where do Nazis and other war criminals go when they have destroyed much of civilization? How about Paraguay or Argentina? Heh. Well, guess what? The Bushes are buying up huge hunks of Paraguauy!

Cheney's Paraguay Caper Is Intended

The US Military Descends on Paraguay

just a regular home away from home, eh.

US - making the world just that little bit safer for war criminals, globally. . .

Thu, 07/10/2014 - 21:51 | 4945963 WillyGroper
WillyGroper's picture

CA, I recall reading a while back that the usmil was installing micro bases (pods/lotus') all over SA. 

Wed, 07/09/2014 - 21:49 | 4941790 TheFourthStooge-ing
TheFourthStooge-ing's picture

DCRB noted:

USA has *some* oil, gas and coal.  We are pretty well set-up with water.  And in general our natural resource situation is not bad.  Huge debts and a lot of clueless people.  Relatively free, .gov and banksters lie & steal.

and

Russia has LOTS of oil and many other resources.  Huge corruption, BAD demographics.  Kind-of free but very corrupt.  .gov is too stern against political opponents.  Banksters and oligarchs lie & steal.  Cold in the winter.

So basically they're not too different, aside from Russia having a lot more oil and gas and the US having a lot more coal and debt. That and Russia allowing political opponents actually to exist. And the US monitoring all citizen activity with a computerized SuperStasi. And the US MSM propaganda machine, with a smothering presence delivering 'both' sides of the 'important' issues with the synchronization of a precision lab instrument.

Yep, aside from those things, I'd have to agree with you that they're very similar.

In TFA, JHK noted:

It’s a tragic fact of history that sometimes societies lose their bearings.

When it comes to bearings, all I know is that Timken doesn't employ nearly as many people as they did forty years ago, and the people out in Canton probably consider that a tragic fact. For other matters regarding bearings, I must defer to the expertise of DCRB.

Wed, 07/09/2014 - 22:31 | 4941925 DoChenRollingBearing
DoChenRollingBearing's picture

Fourth, I will leave value-comparisons of Russia and the USA out of this comment (if I had actually had experience in/with Russia, then I would argue on...), and try to restrain myself to commenting on bearings & Timken.

Other than agreeing with you on the precision of our MSM propaganda machine, you are right (as is typical for you).  Seems they have read Bernays.

***

-- We do not buy Timken, they will not sell to us!  They have their four distributors in Peru, and that is that, all they want.

-- Timken has factories in Poland, France, China, Brazil, the UK, and probably other countries.  Timken is also (AFAIK) trying hard to automate their plants as much as possible (see S. Korean bearing plants).  As an aside, Timken buys some of their bearings from Koyo (Japan) and Iljin (S. Korea).  There are MANY factors in play re unemployed USWs at old Timken plants in Canton and elsewhere.

-- Timken will not sell to our PERUVIAN company, well then, we will dance with those who do (Korea, Japan and China).  Since Timken is so expensive, their market share in automotive aftermarket is very low, and since automotive is our niche, that may be just as well (smile)!

 

Wed, 07/09/2014 - 23:24 | 4942110 TheFourthStooge-ing
TheFourthStooge-ing's picture

I just knew I could count on your bearing expertise.

+1 for not losing your bearings.  ;)

Thu, 07/10/2014 - 01:04 | 4942309 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  

;)

I always am challenged when you call me out.  It helps me review my "ass-u-me"-ptions.  But, when I see ol' Shemp I always wonder "Oh, man, what the hell is he going to say to me now...?"

And you proved not only advanced argumentative skill but a fine sense of humor as half of the Fourth/akak Tag Team taking on Americanist AnAn, LOL...

Wed, 07/09/2014 - 19:15 | 4941327 Pumpkin
Pumpkin's picture
Cockamamie?

 

Horse shit, bull shit, full of shit, knee deep fucking shit... maybe, but most certainly not Cockamamie.

Wed, 07/09/2014 - 22:06 | 4941858 Greenskeeper_Carl
Greenskeeper_Carl's picture

I also love how he complains that despite not doing anything positive, Americans rewarded Obama with a second term in 2012. Thats pretty hysterical coming from knustler, who is a self professed two time Obama voter who helped get him that second term.

Wed, 07/09/2014 - 19:15 | 4941328 TeamDepends
TeamDepends's picture

Goebbels writes Barry's scripts from the grave.  After all, they were both socialists.

Wed, 07/09/2014 - 19:23 | 4941353 autofixer
autofixer's picture

And Goebbels learned propaganda from Bernays, an American.

Wed, 07/09/2014 - 19:30 | 4941373 TeamDepends
TeamDepends's picture

Yes, Bernays was a cocksucking insider.  None of that matters now.  Prepare for impact.

Wed, 07/09/2014 - 20:26 | 4941551 disabledvet
disabledvet's picture

Germany at least had a reason (or reasons.)

How is this to be explained to Vox Populii so soon after Vietnam?

Thu, 07/10/2014 - 04:32 | 4942448 Treason Season
Treason Season's picture

Technically Bernays was a US citizen but he was born and bred in Ashkenazi Vienna.

Wed, 07/09/2014 - 19:32 | 4941385 Escrava Isaura
Escrava Isaura's picture

TeamDepends... "both socialists."

[The "liberal media"] love to be denounced from the right, and the right loves to denounce them, because that makes them look like courageous defenders of freedom and independence while, in fact, they are imposing all of the presuppositions of the propaganda system -- Noam Chomsky

Wed, 07/09/2014 - 19:42 | 4941410 TeamDepends
TeamDepends's picture

So tired....  Somebody help us out here.  Okay, fine.  There's not a dime's worth of difference between socialism and fascism.  But what we have now is socialism/globalism.  Fascism depends on "nationalism", which they are stomping on with their boots....

Wed, 07/09/2014 - 19:55 | 4941448 knukles
knukles's picture

"Inside of every Vietanmese is an American trying to get out"

Wed, 07/09/2014 - 21:11 | 4941466 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

TeamDepends

I hear you.  In practical terms you are right.  For me, any .gov trying to tell me what to do ("for the good of...") is Socialist, Fascist, Communist, NAZI, you name it.

Wed, 07/09/2014 - 19:59 | 4941469 lakecity55
lakecity55's picture

So, National Globalism?

Wed, 07/09/2014 - 20:02 | 4941476 DoChenRollingBearing
DoChenRollingBearing's picture

Don't you be giving our Fearless Dear Leader any ideas now...

Wed, 07/09/2014 - 20:02 | 4941480 knukles
knukles's picture

Sure, NWO and all that crap

 

Earth, Earth, Earth
Earth, Earth, Earth

calling project blue beam, please display your image on the nearest sky, calling project blue beam

Wed, 07/09/2014 - 20:02 | 4941483 logicalman
logicalman's picture

Anarchism is the only way forward for humanity.

No 'leaders' no war

 

Wed, 07/09/2014 - 22:17 | 4941891 Greenskeeper_Carl
Greenskeeper_Carl's picture

Just started lew rockwells new book on the subject. Interesting read

Thu, 07/10/2014 - 09:08 | 4942815 Cathartes Aura
Cathartes Aura's picture

and true anarchy starts from within

each individual.

no need to wait for the group. . .

Wed, 07/09/2014 - 20:17 | 4941527 Escrava Isaura
Escrava Isaura's picture

TeamDepends.... Somebody help us out here

Guys, get this over your heads (and a dictionary):

Liberals are NOT socialists. They can’t, Period!

Liberals are linked to welfare state:

Welfare State: Concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens.

Socialist Nations: Workers through cooperatives own all industry. Public services may be commonly or state owned, such as healthcare and education.

Wed, 07/09/2014 - 20:24 | 4941546 Escrava Isaura
Escrava Isaura's picture

By the way:

Fascism: heavily on patriotism and national identity. It exalts nation and race above the individual and stands for severe economic and social regimentation, and forcible suppression of opposition.

Wed, 07/09/2014 - 20:30 | 4941564 TeamDepends
TeamDepends's picture

Um, yeah.  They are killing patriotism and replacing it with:  You like ISIS right, because if not we keeeeeeeeeellllll you!!!!!!!

 

 

 

 

 

 

 


Wed, 07/09/2014 - 20:31 | 4941567 disabledvet
disabledvet's picture

How are Americans being victimized?

We have all the oil we'll ever need. Coal prices have collapsed. We have Elon Musk and Tesla.

This looks like Wall Street are the terrorists now "and Gitmo is for Americans."

"Just sayin" of course. Sure doesn't look good if you're trying to spin this. "Vote for me and your death will be quick and painless"?

Wed, 07/09/2014 - 20:47 | 4941587 Escrava Isaura
Escrava Isaura's picture

Disable... We don't have all the oil that we need.

You are a very smart person, why you keep saying that we have something that is declining globally and, that the US has to import about 8 million barrels a day, it is beyond me.

By the way, prices collapse because of the US “Exorbitant Privilege” dollar as the global reserve currency (lots of liquidity, even at a loss. That the whole world kind of joined in and, it’s gonna end in horror].

Wed, 07/09/2014 - 19:47 | 4941423 kchrisc
kchrisc's picture

With respect, but you should look closer to Obama's background and his actual actions. Obamacare is also very enlightening.

Obama is a bankstser/corporate run stooge of the CIA--I.e. fascist.

Obama = W.^2

Wed, 07/09/2014 - 19:53 | 4941437 Vendetta
Vendetta's picture

till they became pure fascists.

Wed, 07/09/2014 - 20:40 | 4941582 disabledvet
disabledvet's picture

"Better Red than dead." Russia won World War II.

There does seem to be a bit of a rewrite going on of late. Never thought I'd see the left doing it though.

This all almost feels like an an episode of "Star Trek...THE NEXT GENERATION!" Only "gone bad."

Picard as...slaughtering Romulons..just because.

Reicher "giving the body count" McNamara style.

Sounds tough script wise here. Definitely not a "made for TV movie." PG? R? NC-17?

That could be The Enterprise moniker actually. "NC--17. The Bloodlust."

Thoughts on franchise diminishment here?

Wed, 07/09/2014 - 19:58 | 4941458 lakecity55
lakecity55's picture

"What are you reading so seriously, Sweet Cheeks?

This book called "My Struggle" Reggie. It's all about taking over the world by this German guy.

I never see you read anything but Muscle Boy and Basketball Today.

Well, this book has great ideas!

Wed, 07/09/2014 - 19:21 | 4941346 Shizzmoney
Shizzmoney's picture

When the truth is ignored, that's when things get messy

Wed, 07/09/2014 - 19:51 | 4941436 Vendetta
Vendetta's picture

started Sept 12, 2001

Wed, 07/09/2014 - 19:22 | 4941347 QE49er
QE49er's picture

 

 

QE is ending

Interest Rates are going up

The Border is Secure

There is no Bubble

The Economy has recovered

Don't Buy Gold

Vote for your D or R Scumbag

There is no Infation

 

Everyone Got That? Good.  Now shutup, pay your taxes & eat your GMO

Wed, 07/09/2014 - 19:24 | 4941360 autofixer
autofixer's picture

2 + 2 = 5, I've got it now.

Wed, 07/09/2014 - 19:36 | 4941396 ZerOhead
ZerOhead's picture

5 is not going to get us to where we need to be.

Better make it 7.

Wed, 07/09/2014 - 19:56 | 4941451 knukles
knukles's picture

Oh, OK.  We can print a couple more!

Wed, 07/09/2014 - 20:04 | 4941486 CCanuck
CCanuck's picture

So...2+2=7...did anyone count for inflaition..rounding up lets make it 10

2+2=10  Got it, thanks.

Wed, 07/09/2014 - 20:27 | 4941555 ZerOhead
ZerOhead's picture

Now just print it... repeat it... and it magically becomes fact...

Wed, 07/09/2014 - 20:35 | 4941570 CCanuck
CCanuck's picture

who says common core math dont work!

Kruggie Rules...USA..USA...USA

Wed, 07/09/2014 - 20:42 | 4941589 disabledvet
disabledvet's picture

Maybe it's

"Three...Two....One...and SEVEN!"

Wed, 07/09/2014 - 19:59 | 4941463 graneros
graneros's picture

May I have some high fructose corn syrup to go with that please?

Wed, 07/09/2014 - 20:04 | 4941488 logicalman
logicalman's picture

You forgot one........

The Government REALLY cares about you.

Wed, 07/09/2014 - 19:23 | 4941355 cougar_w
cougar_w's picture

I saw the the summary and thought "wait someone is writing in the style of Kustler???" and then ... there he was again.

The guy must never sleep.

Well played, Jim. FWIW, lately you and I have been on the same page, reads like. I was saying the same thing as the above a few comments back though not as long a format. Either we're both insane or the world is in for a serious shitstorm because I for one don't kid around, and I think you don't either. Michael Greer is winding up for a go next week, reads like, looking forward to that one.

Good times ahead. or at least, interesting times.

Wed, 07/09/2014 - 19:52 | 4941417 knukles
knukles's picture

Shit storms ahoy, Captain!
Arragh maties, man the shit storm pumps.
What should we call it, Captain?
Everything's Hunkie Dorry!
The Hunkie Dorry, Captain?
No seaman, the Everything's Hunkie Dorry, Arrragh.
Yes sir, the "Everything's Hunkie Dorry, Arragh."
No you fookin' scurvacious rat turd, there's no Arragh in the Everything's Hunkie Dorry, you fool.
So is the the in the Everything's Hunkie Dorry, Arrragh, sir?
Yea God's you fucking moron, by the Lashes of Poseidon's Cock I'll have your tongue, it's Everything's Hunkie Dorry, fool!
So there's no Arragh or the before or after the the, Captain?
No, fool.  None (a wee look askance from the side of the eye a la Charles Laughton)
What about Everything's, sir?  Is it apostrophied or not apostrophied?

And so we progressed through 30 years amidst the doldrums, short of water, fuel or amusement, for the case of the latter, with the passage of time even the most infirmed of the gunners was no longer able to grasp the idea of a 42 year old cabin boy, nor was he as cute as theretofore demanding he long ago be promoted to First Mate.

Talk about pedophilia and happy ships...

https://search.yahoo.com/search?p=youtube+the+good+ship+lollipop&ei=UTF-...

 

Wed, 07/09/2014 - 20:07 | 4941495 logicalman
logicalman's picture

You are obviously smoking something decent!

Keep doing it!

 

Thu, 07/10/2014 - 09:00 | 4941418 samsara
samsara's picture

Greer is the first thing I read Thursday mornings. Get a cup of coffee, sit down and read one of the best modern (Over looked) writers out there.

 And there it is.

Bright Were The Halls Then

 http://www.resilience.org/stories/2014-07-10/bright-were-the-halls-then

Wed, 07/09/2014 - 19:52 | 4941424 ZerOhead
ZerOhead's picture

It was a indeed well written and concise summary. One of his best I might add.

Damn shame the 95% who don't have a clue will never see it. And even if they did see it they wouldn't be able to extend their attention spans long enough to be able to read it. And even if they did read it they wouldn't be able to comprehend it. And even if they were able to comprehend it they still wouldn't be able to appreciate in any meaningful way how deeply fucked we all are.

Wed, 07/09/2014 - 20:45 | 4941598 disabledvet
disabledvet's picture

"Everyone secretly reads it. But no one admits it."

Reading...as a criminal activity.

Writing...EVEN WORSE!

"Next up...Shakespeare...the annotated edition."

Wed, 07/09/2014 - 19:27 | 4941367 Duc888
Duc888's picture

 

 

 

Pretty much it's all total bullshit formulated in a fashion to take your money.  Now, the joke is on you because you trade your time and heartbeats for fiat and bullshit.

 

 

Wed, 07/09/2014 - 20:26 | 4941549 blindman
blindman's picture

I Will Never Be Alone In This Land Alex McMurray Buffas 10 14 12
http://www.youtube.com/watch?v=RqJgFLYn_YE

Wed, 07/09/2014 - 19:30 | 4941374 i_call_you_my_base
i_call_you_my_base's picture

Humans are wired to be optimistic. Otherwise there would be no point. That's why risk / reward learning is so important and why taking away risk is so dangerous.

Wed, 07/09/2014 - 19:31 | 4941378 earleflorida
earleflorida's picture

Even Goebbels looked up to Bernays, `sauce...  ?   http://en.wikipedia.org/wiki/Edward_Bernays

Wed, 07/09/2014 - 20:55 | 4941630 Winston Churchill
Winston Churchill's picture

And Bernays's hero was Freud,to whom he was related I believe.

Wed, 07/09/2014 - 21:06 | 4941658 blindman
blindman's picture

not only related, nephew, but the ass hole who
made the name "Freud" a house hold name in amerika.
.
The Century of the Self
http://topdocumentaryfilms.com/the-century-of-the-self/
.
Century of Enslavement: The History of The Federal Reserve
https://www.youtube.com/watch?v=5IJeemTQ7Vk

Wed, 07/09/2014 - 19:35 | 4941394 joego1
joego1's picture

Frick frackin away....

Frick frackin away.....

The more you go a drillin the more your frick frackin away.....

Wed, 07/09/2014 - 19:54 | 4941404 Rainman
Rainman's picture

Sorry to be a buzzkill.... but you humans should already know you swim about in an ocean of lies. That is all.....now tell me you don't lie about your age to get the senior discount .

Wed, 07/09/2014 - 19:57 | 4941457 knukles
knukles's picture

I don't lie.  I mumble, drool and fart, put down too little money and they just wave me in.

Wed, 07/09/2014 - 20:48 | 4941609 disabledvet
disabledvet's picture

I prefer to ride the FZ to 160.

Man...sorry but, Japanese engineering is super addictive. "With even more to go from there." That Honda Blackbird was a bad ass machine.

"Two hundred on two wheels." Is that even legal to make?

Wed, 07/09/2014 - 19:42 | 4941414 Reaper
Reaper's picture

It's a common delusion of mankind that if you trust and believe everything will work out. Mommy and daddy earlier took care of you, whom you trusted. Now, your mommy/daddy replacement, aka government planners, will take care of you and all you have to do is believe.

Wed, 07/09/2014 - 21:21 | 4941700 Miffed Microbio...
Miffed Microbiologist's picture

Trust and belief is really not a normal state of mankind. It must be indoctrinated and reinforced. The brain hardwires naturally to negativity for survival and safety. What catches your attention, the salivating tiger or the beautiful rose next to him?

People are domesticated like animals. Society wishes pliancy and once achieved, it is very hard to undo. Fortunately, some of us were raised in families that promoted thinking and questioning, though none of us can fully escape being influenced by thousands of years of cultural conditioning.

Waking up and becoming uniquely yourself is tremendously hard to do. Sadly, it's just easier to hand over the reins to another authority figure.

Miffed;-)

Wed, 07/09/2014 - 19:54 | 4941440 Westcoastliberal
Westcoastliberal's picture

You're preachin' to the choir, Kunstler.  Anyone who doesn't already know this isn't going to bother to read it.  You're right, so what?

Wed, 07/09/2014 - 19:55 | 4941445 lakecity55
lakecity55's picture

Tylers, why so cheap? Can't you use a color photo of Dear Leader?

Wed, 07/09/2014 - 19:59 | 4941468 knukles
knukles's picture

A "color" photo
Now that's some sick shit, my friend.

Laughing Out Loud and trying to explain to Mrs K....

Wed, 07/09/2014 - 20:06 | 4941481 lakecity55
lakecity55's picture

Hey- you seem familiar!

I am LC55!

Hey! I'm Knux. Welcome to Camp 17!

Who's the CO?

We're lucky! It's one of the Tylers. There is an escape committee meeting tonight, come on over.

Thu, 07/10/2014 - 11:50 | 4943537 knukles
knukles's picture

LC55, now that's funny shit

Wed, 07/09/2014 - 19:56 | 4941447 Jack Burton
Jack Burton's picture

" little about it is conspiratorial; rather, it’s the consensual expression of a public that wants desperately to believe things that are untrue, and an economic leadership equally credulous, unmanned, and avid to furnish the necessary narratives that might preserve their jobs and perqs."

Well, maybe, BUT. American public opinion and world view is heavily shaped by media, and media is mainly corporate, and limited to a hanful of very powerful corporations with heavy investment in the military industrial complex and the huge financial sector, or FIRE economy. They do indeed conspire to present their view of American which best serves their interests. American's who think like the huge corprations want us to. And also, people think and view things via the Public Education they have been given, and many the Universoty education they picked up from profit seeking colleges. Again, they sell a point of view to benefit corporate America. Too many people accept what they masters of marketing sell as news and opinion. Ask a person on the street what they think the Feds QE and ZIRP policies have accomplished. Very few will say " A wholesale transfer of wealth to the 1% and the equity holders".

Wed, 07/09/2014 - 20:51 | 4941617 disabledvet
disabledvet's picture

This sounds like the "dicks, pussies and assholes" speech from "Team America, World Police!"

"You can thank us later!"

Wed, 07/09/2014 - 20:11 | 4941504 ebworthen
ebworthen's picture

There is an undercurrent of understanding amongst millions of Americans.

You'll never hear it in the MSM, or from "financial advisers" talking their book as well as politicians doing the same.

Talk to your relatives, friends, people at the store. 

Word of mouth is much more powerful than any media.

I talk to people about the FED, the bail-outs, the lack of jobs, the drive to get rid of currency - and any of them trying to raise a family get it, and know about it.

Some of the Millennials and A.O. (Always On) generations get it, but most are clueless; still on the dream train that a degree and the right politician will bring them the brass ring and the U.S. a new golden age.

Some of the older retirees get it, but most want to put out the flag and watch the evening news and believe it is 1955 and America hasn't been lost - simply because they don't want to believe it, they'd rather die with the fantasy than face the reality.

Wed, 07/09/2014 - 20:54 | 4941626 disabledvet
disabledvet's picture

I understand the money getting part...but the vote getting part still eludes me.

Vote for me and your children won't "__ __________."

Wed, 07/09/2014 - 20:35 | 4941572 The_Virginian
The_Virginian's picture

Not to be contrarian, but the United States is positioned well to dominate manufacturing in the 21st Century. China and India have human capital to offer extremely cheap labor. That's their edge. But the techies in the Bay area are about to make human labor pretty much irrelevant in the coming years. Labor costs will drop to nill in manufacturing. We already are seeing onshoring of jobs due to automation/robotics/AI. 

Now, insofar as manufacturing/consumption gets gangbanged in the inevitable reckoning for all the central banking/statist sins of the past....century? Our manufacturers will obviously get rocked, just like everyone else's. But as far as a share of global manufacturing? China's maxed out its slice, and its going to start getting smaller. That's going to come back here because we have the skills in AI and robotics. 

Wed, 07/09/2014 - 20:46 | 4941601 Joebloinvestor
Joebloinvestor's picture

You forgot this one:

The US dollar will always be the worlds reserve currency.

Wed, 07/09/2014 - 20:50 | 4941616 BringOnTheAsteroid
BringOnTheAsteroid's picture

Why is economics subject to the assertion of cockamamie and people deperately wanting to believe what is untrue yet our entire society is founded on the cockamamie of an invisible grey bearded sky man who talks inside peoples heads. 

Believing what is untrue (or which might be true but we have absolutely zero evidence of) seems to form the underpinning of the human mind. Believing the cockamamie of economists is one thing because it is ridiculously convoluted and complex but at leasted seated in the real world, so you can forgive people to some extent for believing it. 

The insidious thing about being indoctrinated in any form of belief whether Keynesian economics or astrology or the occult or theism is that the very process of brain washing cements structures within the neural network of the brain and because one of the brains primary functions is the model the external world, the subject of the indoctrination then becomes indistinguishable from external reality. More over, the emotions associated with the subject of the indoctrination become entrenched and entangled in the thought process and very fabric of the mind and this is why people feel an overwhelmingly powerful sense that it is real, that the subject of belief is coming from within them, from their own free will.

Most of us live in a gigantic illusion.

 

Wed, 07/09/2014 - 20:57 | 4941636 disabledvet
disabledvet's picture

" that guy who just died had a ton of money and he left it all to you!"

Easy to let it go to your head.

Right up there with Facebook.

Wed, 07/09/2014 - 21:56 | 4941814 BringOnTheAsteroid
BringOnTheAsteroid's picture

The boom in social media stocks will go down as the dumbest, most irrational period in market history. At least the housing boom was related to bricks and mortar. At least pets.com sold pet related stuff. At least the tulip boom had at it's heart some nice looking flowers. What is Twitter based on. 140 character maximum smart ass remarks. WOW. 

Thu, 07/10/2014 - 06:36 | 4942521 Tall Tom
Tall Tom's picture

The US Dollar is a Social Media. Just what is the valuation of the stockpile of that based upon?

 

I disagree. The boom created by the Fiat Currencies will go down as the most irrational period in all of Human History as there is relatively nothing (most is just electronic data bits) to back it up but more debt.

Thu, 07/10/2014 - 09:20 | 4942878 Cathartes Aura
Cathartes Aura's picture

so-shill me-duh is the new TV - completely captured minds out there selling themselves, living their lives in the full glare of Big Brother's watchful eye.

what captured the Boomer generation has been given the 2.0 upgrade, and has been eagerly consumed by the mind-trained consumers.

people who believe themselves to be smart 'n' rebellious whilst still using the banking systems, ingesting fake poisoned foods and consuming pharma to hide the effects, commuting to jawbs, paying taxes, global vacations, buying trinkets 'n' sex ware to celebrate their existences - and then yakking about the whole story online, to the entertainment delight of their Watchful Overlords.

rah rah humanity.

 

Wed, 07/09/2014 - 21:13 | 4941671 I Write Code
I Write Code's picture

The big myth is:

* This president should not be immediately removed from office, absurdly late though it may be, as if here were not incompetent, uncaring, delinquent, traitorous, and 99.44% likely unqualified to have ever been a candidate anyway.

Wed, 07/09/2014 - 21:18 | 4941690 SMC
SMC's picture

The "body politic" is having problems extracting it's fat ass from a Wal-Mart scooter.

Wed, 07/09/2014 - 22:23 | 4941743 blindman
blindman's picture

politics is not about governance. it is about
presenting an image to accomplish the goals of
a desperate and narcissistic elite preened on
stealing from the public's stupidity regarding
the concept of "sovereignty", god and associated
righteousness. systemic money stealing , by structural
and functional design and preeminence, like priestly
pedophilia for the pockets of the adults ... you go boy .....
.
so, as you may guess, Madonna should be the next
commander in chief, war time president, chief executive
of the world's last best hope and satanic party.
.
why not? do you have a hope that remains to be crushed?
.
step right up......
...everyone's a winner, bargains galore." t.w.
.
politics is not about governance.
step right up......
http://www.youtube.com/watch?v=Rdqh0GsXMII

Wed, 07/09/2014 - 22:33 | 4941950 besnook
besnook's picture

yes. the system has become a farce. the similarities to russia and germany suggest russia and germany(and britain and china) are a normal way for an empire to end and a new one to begin. the usa has killed millions of people in the last 11 years directly and indirectly, not to mention the the children killed in the 90s albright declared died for good reason. it looks like millions more are on the line imminently. tass news stories were reported for comedy relief in the 60s and 70s. now usa mainstream media is viewed the same way by the rest of the world. there are many other examples of the same .gov behavior across the world regardless of the form of .gov, regardless of ethnicity or religion or culture. this is hardwired human behavior. it is a failsafe self destruct command for human governance structures. it really doesn't matter why it happens because it cannot be avoided. people are the dumbest animals on earth. that is a better thesis. what i don't understand is why all these .govs insist on continuing the bs long after everyone knows it is bs.

 

look. the end is near. don't listen to anyone who says the transition will be peaceful. in the aftermath of the peaceful dissolution of the soviet union millions of people died in russia alone before supply lines were reestablished.

Wed, 07/09/2014 - 22:37 | 4941971 highwaytoserfdom
highwaytoserfdom's picture

COAL      COAL     COAL    oh wait    hockey stick  GOAL GOAL GOAL..         

 

 

Wed, 07/09/2014 - 22:42 | 4941992 Tulpa
Tulpa's picture

US manufacturing output is triple what it was in 1975.  And no, I'm not going to pay you to find out what your argument against US manufacturing is... what are you the Church of Scientology?

Thu, 07/10/2014 - 06:44 | 4942527 Wahooo
Wahooo's picture

Another buggy whip salesman saying "Cars suck."

Thu, 07/10/2014 - 07:55 | 4942663 sam site
sam site's picture

 

I like your observation "We apparently just don’t like reality and seem to think we can turn it off".  I'm seeing this attitude constantly when I attempt to show people evidence that our government is corrupt and unreliable.  It's as if there is a popular belief that if you ignore adverse evidence and maintain a blind allegiance and loyalty to the establishment, you will be rewarded and your loyalty will somehow create the favorable reality you seek. 

 You suggest as the cause of this thought failure, "who can say what the aggregate effect of food additives, off-gassing carpets, and other chemical insults might have had on recent American generations".  I believe Americans are chemically dumbed down and display an inability to think rationally, critically and clearly. 

I believe this is a deliberate poisoning agenda not just to sell patented poisons like GMO food, vaccines and fluoride, but if you follow the far bigger money like the Fed banking scams, you have to disable the health of the entire population in order to embezzle and deceive on such a massive scale.  The last thing you want are healthy, alert, energetic and courageous rebels in your face trying to jail you for theft and fraud.

Someday the public is going to understand the capturing affect of toxic injury.  Hitler's Jesuit financiers understood this when they had him add fluoride industrial waste poison to the drinking water in his concentration camps to better control and subjugate the prisoners.

See Fluoride's Deadly Secret

http://www.youtube.com/watch?v=fB3xcN_eoPo

 

 

Thu, 07/10/2014 - 09:23 | 4942874 kurt
kurt's picture

When I see "narratives that preserve our jobs and perks" I think, um, wait for it...

                       Bullshit!

Thu, 07/10/2014 - 09:20 | 4942879 gcjohns1971
gcjohns1971's picture

Much of what is said about Shale as an energy source is delusional.

Unfortunately there's a lot of that in this article.

The problem is that it is internally inconsistent.  On the one hand the context of 'energy insufficiency' in the article has a name - PEAK OIL.

PEAK OIL in economic terms is REDUCED SUPPLY.

So, there's this little thing called supply and demand.  When demand is high and rising (and for oil it is) but supply is falling (which it is) then prices have to rise.

At some price anything is profitable.  When that price is only marginally payable people develop better alternatives.  Necessity is the mother of invention.

So, the internal inconsistency is this:  Shale pays when oil is above about $90 per barrel.  The higher above that price, the more profitable.

But the author (Kunstler) wants to tell us simultaneously about shale unprofitability, AND about peak oil.

IF PEAK OIL EXISTS IT WILL EVENTUALLY MAKE SHALE PROFITABLE - or the 'supply and demand' story of price formation is false. 

It is that simple.

Oh... and there's another problem with the story.

The story calls Monterey/Santos, Barnett, Haynesville, and Fayetteville formations the 'big plays'.   This is like a city dweller calling their local park an 'expansive wilderness'.

Those plays are small game.  Trialsl. The real game is in the Green River Formation - the largest shale formation in the world.

http://webhosting.web.com/imagelib/sitebuilder/misc/show_image.html?link...

 

How easy is that shale to get to?  I don't know.  But I grew up there.   When camping we often burned rocks on the fire.

Thu, 07/10/2014 - 09:22 | 4942892 Marley
Marley's picture

And of course the Anarcho-Capitalist has all the answers.  "Keep moving into the building folks.  Don't pay attention to the big gas line!"

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