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Cockamamie Casino Capitalism

Bdelande's picture




 

 

 

Submitted by The DeathFlation Blog


The original intent and “raison d’etre” of our market based financial system was to facilitate capital formation in order to encourage investment and credit for enterprise expansion, through the establishment of efficient free market capital exchange frameworks, so as to advance productivity and facilitate trade in the underlying economy.


Regrettably, the capital markets of today have entirely degenerated, morphed into a sanctioned global gaming racket, whereby the market venues and electronic trading vehicles have disconnected, transmuted into capital investment in of themselves, with little or no relation to the real economy on the ground. Capital chasing the tail of advantageously positioned market capital is not the same thing as constructively invested working capital in actual human enterprise. One is speculative and self-seeking in nature, while the other is creative and generative in nature.


This financial free-for-all fracas drains substantial funding from substantive investments in tangible productive enterprise, creating gross misallocation of precious capital which is actually destructive to the underlying economic growth. The F.I.R.E. industry has become parasitical to the productive economy, and now serves primarily to extract value out of it, infrequently adding value to it.


Capital is best invested via local channels where the formation, operation and expertise in an enterprise is best understood. Today’s massive capital transfers of frenetically furious fast-money flows, extending from one overseas over-leveraged global banking Goliath to another, offers suspicious socio-economic merit and is often destabilizing in it of itself.


 

This synthesized, swiftly streaming, approach to capital formation has brought us the following disastrous abominations:


 

1) Gross misallocation of genuinely productive investment capital, stifling the crucial SME sector


2) Excessive market volatility which stymies business development and trade


3) Repeat massive asset bubble formation dislocations


4) Lethargic economic activity


5) Extreme income inequality


6) Facilitated fantastic fiscal deficit spending sprees


7) Encouraged off-shoring of the manufacturing base


8) Conceals real inflation


9) Decreases income & job growth


10) Eviscerates the very essence of money itself


The gambing Fed-house monetary authorities and their most favored TBTF Casino whales were so fearful of losing their mountain of comped chips, that it necessitated them to abandon the free market principles this country was founded and built upon, and synthetically manipulate the now completely capture Equity, Bond and Gold markets.

 

These self-serving parasitical derelicts drive the damaged demented markets exactly to where they desperately require them, in order to keep the roulette ball constantly and continuously in play. This classless new breed of casino captains has spent in the past seven years what the classy old school owners had collectively spent in the previous 100 years to do so, sure feels like they are most desperate and about to recklessly lose all the marbles.


 

Are they finally cashing in their worthless chips?

 



 

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Fri, 08/08/2014 - 21:27 | 5068539 bid the soldier...
bid the soldiers shoot's picture

Do I have the temerity to add facts and ideas to your otherwise brilliant and important work

Yes, sir, I believe I do.

What really caused the ruination of the system of capital formation? Nothing more complicated than the concept of  'diminishing returns.'

The American economy was a victim of it's own success.  A success resulting from the post-WWII economic boom.

There was more capital than was needed for formation.  

 So the system tried to purge some of the excess capital out of the syetem. In 1973 the economy had its worst recession since '29.  

The Recession of 73 - 75. was coincident with Hubbert's successful prediction of Peak Oil in America; the first Oil crisis in America; the end of the Bretton Woods system (the US's unilateral decision to end the convertibility of the dollar to gold.)

And last, but not least  --  I do hope you like this one -- the onset of tradable options at the CBOE.

An early derivative, a worthless tradable instrument, especially designed, like the lottery, to offer the bottom of the trading barrel a scheme to get rich.

A precursor of the CDS and the tranche. 

Cancers of Wall Street.


Fri, 08/08/2014 - 22:21 | 5068697 Bdelande
Bdelande's picture

"Right on target so direct"

 

Robert Zimmerman

Sat, 08/09/2014 - 02:43 | 5069153 bid the soldier...
bid the soldiers shoot's picture

in the jingle jangle morning, i think i'll be followin you

Sat, 08/09/2014 - 06:13 | 5069284 Bdelande
Bdelande's picture

It's not dark yet, but it's getting there...................

Sat, 08/09/2014 - 16:59 | 5070799 bid the soldier...
bid the soldiers shoot's picture

 

Hey, I could bring donuts.  

You still at the same location?

Fri, 08/08/2014 - 21:11 | 5068478 theyjustcantstop
theyjustcantstop's picture

i wish ameicas markets, and finacial system was a casino, i'd not walk-in, but if your an american living in america and have any assets, your going to be losers before it's over, whether your in the so called casino or not in the end.

the real casino is o'bama-care, where you get play with all your assets, plus you, and your families lives.

 

Fri, 08/08/2014 - 16:55 | 5067456 Sir Edge
Sir Edge's picture

My niece was arrested in early 2014 while storming the House of Parliament in London protesting FOR a Westminster Palace commission to get you Knighted as Economist of the Realm... they unfortunately let her go but she then made a beeline to the Ukraine to hand out bread in your name.

................ http://dbniche.com/BrunoMyLove.jpg

Our family is in an emabarrassed shambles over her.. if you could just disavow her through a notice in the Associated Press then Scottland Yard could finally catch her and we could have her dragged back to the USA naked and in chains to return to us as our beloved chambermaid... I mean return to us as our beloved niece.

thanks... Sir Edge

 

Fri, 08/08/2014 - 17:04 | 5067466 Bdelande
Bdelande's picture

Oh my...............

 

Tell her that if the Bible is right the world will explode................that should cheer her up, it usually does the trick for me.

Also, if you would, please ask her if she would be interested in joining us at the macro shop, we could use her international perspective and the obvious fire in her belly is something we highly value in our Summer interns.

http://deathflation.wordpress.com

Fri, 08/08/2014 - 17:04 | 5067489 Sir Edge
Sir Edge's picture

She just texted me...

.... "If Only I Can Die At the Feet of My Beloved Lord Bruno... Then Let The World Expode"

End Transmission...

 

 

Fri, 08/08/2014 - 17:09 | 5067499 Bdelande
Bdelande's picture

If she has other plans for the Summer, we undersatnd, but please tell her that she must stop by and bless our mess with a considerate comment.  It's the very least she can do, and we have matered the technology.

 

http://deathflation.wordpress.com/

Fri, 08/08/2014 - 21:14 | 5068495 TeethVillage88s
TeethVillage88s's picture

I read a novel by Paul Erdman called the Swiss Account. He is an American that Started a Swiss Bank, then got prosecuted for it. His notes indicate that Eleanor Lansing Dulles, Allen Dulles' Sister wrote a good piece on BIS.

https://en.wikipedia.org/wiki/Eleanor_Lansing_Dulles
The Bank for International Settlements at Work (NY: Macmillan Co., 1932)

There are those Pesky Catholic Church, Jesuits, Finance, & Spying Connections Again:

Eleanor Lansing Dulles was born on June 1, 1895, in Watertown, New York, the daughter of Allen Macy Dulles and Edith Foster. Her grandfather, John Watson Foster, served as United States Secretary of State under President Benjamin Harrison, for eight months. Her mother's sister married Robert Lansing, Secretary of State under President Woodrow Wilson. Her oldest brother, John Foster Dulles, was Secretary of State under President Dwight D. Eisenhower. Her brother Allen Dulles served as Director of the Central Intelligence Agency from 1953 to 1961. She had two sisters as well. Her nephew Avery Dulles was a cardinal of the Roman Catholic Church.

In 1958, she described the working environment at the State Department:[3] (Fired for some relation to Bay of Pigs)

In 1959 Dulles transferred from the German Desk to the Bureau of Intelligence and Research, where she became involved in a study of economic conditions in underdeveloped countries. As part of the study she traveled extensively in Africa, Latin America and South Asia.

John Foster Dulles' son: Their son Avery Dulles (1918–2008) converted to Roman Catholicism, entered the Jesuit order, and became the first American theologian to be appointed a Cardinal.

Fri, 08/08/2014 - 16:14 | 5067275 Sir Edge
Sir Edge's picture

Sir Lord Bruno de Landevoisin...

  Your valid vital and vivaciously voracious verdict of Bankster veniality is vibrantly refreshing.

 

 

Fri, 08/08/2014 - 16:31 | 5067367 Bdelande
Bdelande's picture

I still like yours better................the Frog raises the flag.

Fri, 08/08/2014 - 16:28 | 5067346 Bdelande
Bdelande's picture

Right bacc at ya sharpie.  The Savant added yet another C word to the intro:

 

Are the crafty casino courpiers finally cashing out their cronies' comped chips at the crokked capitlaism craps tables?

Fri, 08/08/2014 - 16:29 | 5067359 Bdelande
Bdelande's picture

Nice try French Fry...............10 Cs to 9 Vs the Idiot Savant for the win!...............

Fri, 08/08/2014 - 16:26 | 5067334 Bdelande
Bdelande's picture

Eggy!

 

Who's better than?

 

How's the niece, is she holding up?

 

Be sure to send her to Savant heaven staraight away:  http://deathflation.wordpress.com/

 

Fri, 08/08/2014 - 16:24 | 5067329 Radical Marijuana
Radical Marijuana's picture

Yeah, I enjoyed the alliterative poetry in that article too!

Fri, 08/08/2014 - 14:34 | 5066640 AdvancingTime
AdvancingTime's picture

America imports around five hundred billion dollars more from other countries every year than they export. This means we have a giant trade deficit, when we add this to our enormous government deficit it is easy to see that we are living far beyond our means. The Fed has been superbly entrepreneurial when it comes to Ponzi schemes or pseudo-economics hocus-pocus that has allowed the current situation to develop.

The Fed  must at some point begin to ponder a real exit strategy and end the massive and corrosive stimulus that the economy has come to expect. To make matters worse little has been done to address our structural problems and make America more competitive, this will massively thwart growth going forward. More on this subject in the article below.

 http://brucewilds.blogspot.com/2014/06/exit-strategy-from-qe-remains-elu...

Fri, 08/08/2014 - 14:40 | 5066690 Bdelande
Bdelande's picture

FWIW;

 

The AdvancingTime Blog has been added to The DeathFlation Blog roll

http://deathflation.wordpress.com/

 

 

Fri, 08/08/2014 - 14:26 | 5066570 disabledvet
disabledvet's picture

Hard to imagine deflation in the USA with the dollar still worthless and oil getting annihilated in price.

The only argument that can be made...and one I have made...is of a simple mid cycle correction/slowdown...not a full blown depression like they have raging in Europe right now.

We'll see how this all shakes out. Putin backing down says to me commodities are not where it's at for the time being.

Fri, 08/08/2014 - 14:35 | 5066644 Bdelande
Bdelande's picture

 

 

 

FYI; DeathFlation is neither deflation nor inflation

 

DeathFlation Defined:

Deathflation is an irreversible economic condition that inevitably arises as unlimited units of currency chase nonproductive wealth assets, in a grossly over-leveraged economy which has been artificially reflated in a desperate and misguided attempt by monetary authorities to synthetically engineer growth via extreme monetization, preventing the real economy on the ground from seeking the healthy normalization and natural balance of free market forces necessary for genuine productive economic growth.

Also known as; wishful thinking, and robbing Peter to pay Paul.

 

 

 

 

 

Fri, 08/08/2014 - 16:55 | 5067434 Radical Marijuana
Radical Marijuana's picture

The source of both the inflation and deflation phenomena is the basic ability of banksters to make "money" out of nothing as debts, which can disappear back to nothing. Inflation is too much "money" made out of nothing. Deflation is too little "money" made out of nothing, relative to the rates of the disappearance of that "money."

The enforced frauds which are the foundation of our current political economy tend to drive bubbles, which pop. However, the longer term trends go towards too much "money" being made out of nothing, rather than too much of that "money" disappearing back to nothing.

I assert that the debt controls depend upon the death controls, which is consistent with the overview definition of DEATHFLATION! The runaway trends towards the systems of debt slavery, generating numbers which become debt insanities, threaten to provoke death insanities: DEATHFLATION!

I repeat one of my favourite quotes about the bigger picture:

http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm

Silent Weapons for Quiet Wars

Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...) the economy has been transformed into a guided missile on target.

"Capitalism" and "free markets" were destroyed by DEATHFLATION, which was originally enabled by "capital," as "money," to be made out of nothing by private banks. The tiny groups of people who have the legal power to make the public "money" supply out of nothing as debts were thereby able to rig every market, more and more ... However, the paradoxical final effects of their successfully enforced frauds are that they gradually degenerate from acting as the top carnivores in the political economy to become more like parasites, which are killing their host.

DEATHFLATION is due to the underlying social facts that money is measurement backed by murder. Since the majority of "We the People" have gradually been reduced to Zombie Sheeple, they were being fleeced to exhaustion, while they were being set up to be slaughtered. In that context, we are only observing the beginning of the debt insanities provoking death insanities: DEATHFLATION VICIOUS SPIRALS!

Fri, 08/08/2014 - 17:19 | 5067552 LawsofPhysics
LawsofPhysics's picture

Allow me to simplify all that mental masterbation for you;  humanity isn't just another ponzi, it's the unsustainable ponzi.

Fri, 08/08/2014 - 17:33 | 5067601 Radical Marijuana
Radical Marijuana's picture

Yes,

LawsofPhysics:

"We" are the Biggest Bubble!

Fri, 08/08/2014 - 16:45 | 5067413 LawsofPhysics
LawsofPhysics's picture

What people also fail to understand is that as the dollar denominator approaches zero, "valuations" approach infinity until suddenly "it's gone".

Only one rule applies now, when fraud is the status quo, possession is the law.

Fri, 08/08/2014 - 20:24 | 5068306 bid the soldier...
bid the soldiers shoot's picture

as the dollar  denominator approaches zero, "valuations" approach infinity until suddenly "it's gone".

What force other than MANIFEST DESTINY HERSELF could have arranged the timing of our economy's currency going to zero, at the same time as our planet's life blood, crude oil, also going to zero.
The US military is getting ready to commandeer what's left for the war effort.
Eastasia, this time, no?
And soon gasoline ration books that look like credit cards.  So much more convienient than stamps.
And 'bond burning.'  Americans standing around while Treasury officials burn the documents by which we borrowed money (seriously starting during Reagan years), and now repudiated in flames 5 stories high.   But I digress.
Fri, 08/08/2014 - 11:39 | 5065477 Notsobadwlad
Notsobadwlad's picture

If there is a plan other than to send the US into complete and utter chaos and despair, it is not apparent to me. I think they want us desperate for help and to beg for comfortable servitude.

Fri, 08/08/2014 - 11:49 | 5065522 Bdelande
Fri, 08/08/2014 - 12:34 | 5065727 dontgoforit
dontgoforit's picture

However, we will not comply.

Fri, 08/08/2014 - 18:01 | 5067712 NoPension
NoPension's picture

Most will, to our chagrin.

Fri, 08/08/2014 - 20:53 | 5068421 TeethVillage88s
TeethVillage88s's picture

Repost in case someone reads it:

If Liberals Take all the Tools off the Table in terms of Capital Controls, Tariffs, Off Shore Tax havens, Capital Flight, Stagnant Capital, Economic Leakage, Tax Loopholes, Tax Policy, Fancy Pants Derivatives,... then maybe we need to Lynch the Economists, Bankers, and Politicians that put us here, kick out the Neoliberals

Simplify & Standardize:
- GAAP Accounting Rules
- Standardized Financial Instruments that a 13 year old could understand
- Individual Income Taxes
- Corporate Income Taxes

Just think all those "No Value Added" employees in Bookkeeping, Accounting, Taxes, Financial Planning, Tax Lobbying, tax Law, Finance Law... they could be free to add to our Great USA in a meaningful way that adds to GDP.

Fri, 08/08/2014 - 10:40 | 5065091 JRobby
JRobby's picture

Beeks: This is as far as we go. No more cockamamie cigar smoke. No more Swedish meatballs there, tootsie. And no more phony Irish whiskey. No more goddamn jerky beef! The party's over.

Fri, 08/08/2014 - 10:53 | 5065196 Bdelande
Bdelande's picture

:o)))))))))))))))))))))))))))

Fri, 08/08/2014 - 10:57 | 5065228 Truthseeker2
Truthseeker2's picture

 

The global money matrix, worldwide financial architecture and planetary economic landscape most closely resemble the proverbial House of Cards in the form of a Pyramid-Ponzi scheme superstructure built on quicksand.

Fri, 08/08/2014 - 10:48 | 5065160 BeetleBailey
BeetleBailey's picture

We are moving! We are moving!

https://www.youtube.com/watch?v=f8d3SqtPVlg

Fri, 08/08/2014 - 10:54 | 5065204 Bdelande
Bdelande's picture

:o))))))))))))))))))))))))))))

Fri, 08/08/2014 - 10:29 | 5065034 Bdelande
Bdelande's picture
DEATHFLATION DEFINITION:

Deathflation is an irreversible economic condition that inevitably arises as unlimited units of currency chase nonproductive wealth assets, in a grossly over-leveraged economy which has been artificially reflated in a desperate and misguided attempt by monetary authorities to synthetically engineer growth via extreme monetization, preventing the real economy on the ground from seeking the healthy normalization and natural balance of free market forces necessary for genuine productive economic growth.

Fri, 08/08/2014 - 14:51 | 5066746 TeethVillage88s
TeethVillage88s's picture

In an Ideal world, if a Reformer was US President & had Reformers in Congress to support him.

Couldn't we identify the Wealthy Fiat Horders, Big Shot Executives & Former Executives...

Then Convert their Currency Accounts in a New Currency Called the "Pacific Doddo - PDD"... with no actual cash or coins unless they mint them themselves. And we would set PDD to 20 to one US Dollar.

This would take a lot of the Excess US Dollars out of Circulation.

Fri, 08/08/2014 - 10:28 | 5065031 SillySalesmanQu...
SillySalesmanQuestion's picture

Well said Bruno. You sum up very neatlly and concisely what has been going on for the last seven years, that even a silly sales guy can understand it!

Fri, 08/08/2014 - 10:33 | 5065049 Bdelande
Bdelande's picture

It's hardly complicated my frind, they just do their umost to razzle and dazzle us with financial fluff and obfuscation, all to justify their degenerate market machinations.......

Fri, 08/08/2014 - 10:49 | 5065169 BeetleBailey
BeetleBailey's picture

Kudos Bruno!

Fri, 08/08/2014 - 09:59 | 5064898 Ghordius
Ghordius's picture

well done, Bruno. I could not agree more, particularly on "Gross misallocation of genuine productive investment stifling the crucial SME economy"

Fri, 08/08/2014 - 10:34 | 5065054 Bdelande
Bdelande's picture

The path our financial authorities have chosen for us is a disgrace.

There is NO plan, they are riding on the back of our world reserve currency, which was generated by those before us, who actually understood that the dollar was a sacred unit of measure, based off of actual blood sweat and tears, which is exactly what brought us the reserve currency status that was the envy of the world.  
 
No matter how you want to cut it, and razzle and dazzle us with financial wonderment, all they are doing is running the USD into the ground, like the degenerates that they truly are. That's there utterly ignoble pathetic plan, and guilty by association we all are....................

Fri, 08/08/2014 - 12:31 | 5065697 dontgoforit
dontgoforit's picture

And Jake Blues says to his GF:  "It was the weather!  My car broke down!  They forced me into it!  I didn't do it!  Aw, please, please don't kill me!"

Fri, 08/08/2014 - 10:36 | 5064959 Bdelande
Bdelande's picture

The path our financial authorities have chosen for us is an utter degenerate disgrace.

Fri, 08/08/2014 - 09:17 | 5064611 Metalredneck
Metalredneck's picture

I'm just teaching my kids survival skills. 

Fri, 08/08/2014 - 09:58 | 5064890 Bdelande
Bdelande's picture
Most likely a very good idea brother
Fri, 08/08/2014 - 09:16 | 5064607 Bdelande
Bdelande's picture

The F.I.R.E. Paper will ignite an inferno...............

Fri, 08/08/2014 - 09:03 | 5064499 SMC
SMC's picture

Of course they are cashing out, anyone who retains a modicum of critical thinking skills knows that fifty years of optics over substance is finally coming to an end.

Tomorrows happiness must be earned today. Invest in yourself.

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