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"We Call It Democracy, But It's Not"

Tyler Durden's picture




 

Via Paul Craig Roberts,

Poverty Report Contradicts GDP Claims

It is amazing how the government manages to continue selling Brooklyn Bridges to a gullible public. Americans buy wars they don’t need and economic recoveries that do not exist.

The best investment in America is a highly leveraged fund that invests only in large cap companies that are buying back their own stocks. Many of the firms repurchasing their stocks are borrowing in order to push up their stock prices, executive “performance bonuses,” and shareholders’ capital gains. The debt incurred will have to be serviced by future earnings. This is not a picture of capitalism that is driving the economy by investment.

Neither is consumer spending driving the economy. The US Census Bureau’s 2013 Income and Poverty Report concludes that in 2013 real median household income was 8 percent below the amount in 2007, the year prior to the 2008 recession and has declined to the level in 1994, two decades ago!

Even though real household income has not regained the pre-recession level and has declined to the level 20 years ago, the government and financial press claim that the economy has been in recovery since June 2009.

Neither is an increase in consumer debt driving the economy. The only growth in personal debt is in student loans.

Real retail sales (corrected with a non-rigged measure of inflation) remain at the level of the bottom of the recession in 2009. Macy’s , J.C. Penny’s, and Sears store closings are further evidence of the lack of retail sales growth, as is the fact that two of the three dollar store chains are in trouble. Walmart’s sales are declining.

The basis of auto sales hype is subprime loans and leases taken by those who cannot qualify for a loan to purchase.

Housing starts remain far below the pre-recession level, which is not surprising when available jobs are part-time with no benefits. Such jobs cannot support the formation of households and purchase of homes.

Where does the government’s second quarter 2014 real GDP growth rate of 4.6 percent come from? It comes from an understated inflation measure and jiggled numbers. It is not a correct figure. Nothing has occurred in the economy to turn it from a first quarter decline of more than 2 percent into a second quarter growth of 4.6 percent.

The 4.6 percent number is pulled out of a hat to set the stage for the November election.

It is extraordinary that economists and the financial media permit the government to get away with its false economic reporting. Of course Wall Street likes good news . . . but fake news that misleads investors and covers up economic policy mistakes?

Clearly, something is wrong with the government’s economic reporting. It is not possible to have real GDP growth when real median family incomes are declining and business investment consists of corporations buying back their own shares. Either the government’s GDP estimate is incorrect or the Census Bureau’s Income and Poverty report is incorrect. Apparently Washington doesn’t understand that if it is going to rig the numbers, it must rig all the numbers.

The rigged inflation measures create illusionary real GDP growth. They also block cost-of-living adjustments to Social Security pensions. Indeed, the main purpose of the rigged inflation measures is to get rid of “socialistic” Social Security by allowing inflation to gradually erode away the real values of “entitlements.” Republicans always want to cut “entitlements” that people have paid for over their working lifetime with the payroll tax. But Republicans never want to cut the payroll tax. They need the revenues in order to bail out the big banks and to pay for never-ending wars.

Washington has been conducting needless wars abroad for 93 percent of the 21st century at a cost of trillions of dollars. More trillions have been wasted bailing out banks that deregulation permitted to become “too big to fail.” During the past seven years, millions of Americans have lost their jobs and their homes, and food stamp rolls have reached record numbers. These hurting Americans have been ignored by policy-makers in Washington.

Clearly, government in America is focused on something different from a healthy economy and the well being of citizens. We call it democracy, but it’s not.

 

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Sun, 10/05/2014 - 12:22 | 5290858 LostandFound
LostandFound's picture

PCR has and continues to make accurate observations of the economic and geopolitical issues that plague our world. I actually think he knows more that what he is writing about but decides not to divulge it because the people arent ready to here whats behind the curtains.

Sun, 10/05/2014 - 12:25 | 5290868 DaddyO
DaddyO's picture

More likely, Denial! about what's behind the curtain.

I think many know but refuse to acknowledge out of a desparate attempt to go on like all is normal.

Normalcy bias anyone?

DaddyO

Sun, 10/05/2014 - 12:30 | 5290888 LawsofPhysics
LawsofPhysics's picture

Yes, the asians invented paper money and all of the oligarchs would like nothing better than a world were everyone works for chinese wages...

Looks like things are proceeding as planned to me.

Sun, 10/05/2014 - 12:34 | 5290904 Pool Shark
Pool Shark's picture

 

 

"We call it democracy, but it’s not."

 

No, we call it a "Representative Republic."

 


Sun, 10/05/2014 - 12:43 | 5290937 TeamDepends
TeamDepends's picture

Thank you.

Sun, 10/05/2014 - 12:53 | 5290959 Latina Lover
Latina Lover's picture

Yes, we have a representative republic, representing the .01%, and screwing the remaining 99.99%  Even the majority of the so called 1% will be robbed before the  Fed Reserve ponzi scheme finally fails.

Sun, 10/05/2014 - 13:01 | 5290983 Badabing
Badabing's picture

"Clearly, something is wrong with the government’s economic reporting"

 

 

Ya Think?

Sun, 10/05/2014 - 13:13 | 5290992 GeorgeWKush
GeorgeWKush's picture

Where are the Jews on that graph?

Sun, 10/05/2014 - 13:17 | 5291021 numapepi
numapepi's picture

Cuz everything is the Jew's fault... Right?

Sun, 10/05/2014 - 13:28 | 5291048 Anusocracy
Anusocracy's picture

Democracy: an organization of voluntary slaves.

Dictatorship: an organization of involuntary slaves.

The people under a democracy are the dumbest.

Sun, 10/05/2014 - 21:37 | 5292654 PT
PT's picture

Every four years you get to tell your leader that at least one of the decisions that he made was wrong.  No guarantee that the next guy will undo the bad decisions either.

Or perhaps the citizens need to take a more hands-on approach.  (Write down your demands and send the list to your representatives every day?  Guillotines?  Or every person becomes a politician?  Make of that one what you will.)

Sun, 10/05/2014 - 13:29 | 5291049 0b1knob
0b1knob's picture

Most educated people call it a "republic" but we don't have that any longer either.

Sun, 10/05/2014 - 13:32 | 5291058 44magnum
44magnum's picture

Only when it has to do with money$$$$$. Right?

Sun, 10/05/2014 - 13:36 | 5291079 GeorgeWKush
GeorgeWKush's picture

Just curious. One should assume that the Jews made up a considerable enough proportion of the population to enter such a graph taken in consideration the number of significant and well paid position they occupies. After all you dont see that many Hispanics or Asians leading the FED, Goldman Sachs or any of Americas biggest news corps, do you?

Sun, 10/05/2014 - 13:53 | 5291134 Anusocracy
Anusocracy's picture

Simple fact:

Centers of power attract those who desire control.

Sun, 10/05/2014 - 16:35 | 5291700 Creepy A. Cracker
Creepy A. Cracker's picture

Yes, the sad truth.  And those so desperate to control people's lives will stop at nothing, destroying their opposition with false lawsuits, loss of employment, etc, to get said  power.  Why many, if not most, who want to do the right thing but aren't interested in power don't run for office.

Sun, 10/05/2014 - 15:59 | 5291568 gimli
gimli's picture

Maybe what George is trying to say is that what the US government

is spouting just ain't kosher... otherwise we could take his comment

as being fairly prejudicial, and I'm sure he wouldn't want to be seen as

a bigot. There are already more than enough assholes to go around.

Sun, 10/05/2014 - 13:08 | 5290999 TeamDepends
TeamDepends's picture

No one is wrong here. We ARE a democracy now, as clearly the Mob rules. The Founders gave us a Constitutional Republic "if you can keep it". We could not.

Sun, 10/05/2014 - 18:25 | 5292005 livefreediefree
livefreediefree's picture

A sagacious comment, tho wrong. We had a republic, but, as we lost it, we sped thru the state of democracy at a hyper-lightspeed rate, and screeched to a halt in the state of the vast, unelected, unaccountable, and aristocratic bureaucracy.

Sun, 10/05/2014 - 13:02 | 5290988 Escrava Isaura
Escrava Isaura's picture

Mr. Roberts,

US is a Corporatocracy (corporations and banks run by the Power Elite) and that the President is the manager.

Corporatocracy = Weak national parties and strong political representation of individual districts, large U.S. military establishment, big corporate money financing election campaigns, and globalization tilting the balance away from workers. — Jeffrey Sachs

And these corporatocrats know that growth is over and they are playing for time through financialization of the economy.

Once financialization ends, (the elites start losing power), you will see Fascism.

Take it by force.

 

Sun, 10/05/2014 - 13:44 | 5291097 Anusocracy
Anusocracy's picture

"Take it by force."

Which is the M. O. for the animal world and man's world.

But not the human world.

Sun, 10/05/2014 - 14:43 | 5291192 Escrava Isaura
Escrava Isaura's picture

So then, ask yourself this question:

 

Where did the first 9/11 happen?

 

Hint: They used force?

 

9/11/1973: When Chile tried to nationalize their resources; they were killed.

 

http://en.wikipedia.org/wiki/1973_Chilean_coup_d%27%C3%A9tat

 

 

Sun, 10/05/2014 - 14:27 | 5291240 Raging Debate
Raging Debate's picture

Escrava - My observation is that after Fascism comes Communism. There were 38 czars in 2008 in the United States. Legislation like NDAA in fact our whole legal system is becoming remiscient of the Soviet Union where your guilty until proven innocent.

If you cant afford a decent lawyer, you get to build widgets for the growing prison industrial complex at less than a $1 an hour. That's a tad better than the Soviets I suppose theb breaking mineral rocks in Siberia. Police states are horrible for confidence so why have ZIRP and other monetary policies to juice confidence?

Median income backed to 1994 levels yet cost of everything has near doubled. No wonder people are impoverished.

Sun, 10/05/2014 - 15:32 | 5291460 Escrava Isaura
Escrava Isaura's picture

Raging Debate,

Communism and Bolshevism (Stalin, Trotsky) are the same. Top-down management. Policies lean Right.

Capitalism and Neo-Liberal (Corporations, Ivy Leagues), too, are the same. Top-down management. Policies lean Right, maximize profits.

Socialism (Marx, Bakunin) are bottom-up management; workers own their production (anarcho-syndicalist and/or libertarian socialist). Policies lean left; just society.

So, Bolshevism and American Neo-Liberal are basically manifestation of the same thing, Imperialism.

 

US does NOT have Czars. US has a government for sale, in charge.

Fascism comes after the power in charge loses their benefits, so they will have to take it by force, such as in high and higher taxes, confiscating, or by invading other nations (world wars).

Fascism starts by deprivation (Rusty Belt, Detroit ring a bell? And in Germany by killing the Jews); so the power in charge can save that capital for themselves.

 

Neo-Liberals are NOT liberal; or new.

Liberals are NOT socialists. They can’t, Period! Socialism is democracy, compromising’s. So, neither Russia nor US would have any of that.

Liberals are linked to welfare state. Conservatives are linked to Corporatocracy. Both steal from the same coin.

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.

Corporatocracy State: An economic and political system controlled by corporations or corporate interests, such as GE, Boeing, Military contractors, investment banks, and so on.

Socialist Nations: Workers through cooperatives own all industry. Socialist primary aim is to end the exploitation of men by men. Public services may be commonly or state owned, such as healthcare and education.

Fascist Nations: 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.

 

Sun, 10/05/2014 - 18:28 | 5292016 livefreediefree
livefreediefree's picture

If Socialism is workers owning all the means of production, and since socialists are economic illiterates, if socialists owned the means of production, production would very soonest grind to a hlat.

Sun, 10/05/2014 - 21:08 | 5292568 Escrava Isaura
Escrava Isaura's picture

They would not go to a halt because they would hire managers to run the business.

Then, they would vote on the choices presented, and the managers would execute.

 

Mon, 10/06/2014 - 00:28 | 5293224 livefreediefree
livefreediefree's picture

Good luck hiring competent managers who (1) Understand economics and (2) Would work under a socialist system.

Sun, 10/05/2014 - 19:07 | 5292116 TeethVillage88s
TeethVillage88s's picture

seems like you remember your definitions very well. And I think everyone benefits a little from your memory.

I have been accepting the fact that our definitions are all wrong.

I think you are saying the USA is not a Fascist State. You will disagree with my reasons, but we are not just a Fascist Country... we are a Military Republic, We have Social Programs which are huge and very expensive, we press our young people with nationalist ideas of the grandeur of military service and how our wars are all just and peaceful, our government is in a full marriage with corporations but not with labor as you would see in tripartism... and there are big benefits in addition to corporate welfare for those that can afford it: Lobbying, Insurance, Tax schemes, Trust Fund Benefits, Deferred Wages for Private Executives with chances to grow the deferred wages in investments for more than 20 years.... And control over the press if you are wealthy... control over the Court System if you are Wealthy... entry into exclusive Ivy League Schools and exclusive clubs or career paths for the wealthy.

Probably I am missing some things here... Like that the poor are the ones that suffer in war or that the Elite class don't lose sons and daughters in war... and that in attacking foreign countries the elites are rejecting the sovereignty of these sovereign nations... treating them as lower class.

There are plenty of signs of US Fascism... but we are complex with all of our mixing of methods.

Oh yeah I forgot to say: It seems all nations are fascist today.

I think this is true because Fascism is very successful and joins very well with Capitalism and the ideal & discipline needed for business & military.

I'm guessing that Fascism is a modern term from Italy & Spain in the 20th Century. But Rome and the Roman Empire was Fascist... I see them as Traders, Merchants, and pushing Christianity, Romes will, impressing citizens to become Soldiers for Rome, and being a Roman Empire that expands across the globe. Plus the Fasce on the US Mercury Dime is a symbol of Fascism which comes from Rome.

Sun, 10/05/2014 - 21:37 | 5292646 Escrava Isaura
Escrava Isaura's picture

TeethVillage88s,

You're making it too complicated. You need to free yourself of the prevailing assumptions, bogus data, and the blame game.

US is not Fascist nation, yet. It will turn to, once the elites start facing scarcities.

US military is not Fascist, yet, because it’s used abroad, not like in South America, that the military was used in Coup D’état, to overthrow elected governments.

 

Italy was the largest CIA operations, probably ever:

 http://www.globalresearch.ca/a-timeline-of-cia-atrocities/5348804

 

For Spain, check this out:

https://libcom.org/library/interview-noam-chomsky-spanish-revolution-jorell-mel%C3%A9ndez-badillo-2009

 

Mon, 10/06/2014 - 06:29 | 5293495 TeethVillage88s
TeethVillage88s's picture

Thanks good links.

Sun, 10/05/2014 - 16:55 | 5291777 RichardParker
RichardParker's picture

Expect the next train stop on this ride will be tyranny as per Plato's Regimes:

http://en.wikipedia.org/wiki/Plato%27s_five_regimes

Same as it ever was...

 

 

Sun, 10/05/2014 - 22:26 | 5292848 PT
PT's picture

Couldn't resist pointing out:

"An oligarchy will usually perform poorly in military campaigns because the rich men, who are few, will make a small army, and they are afraid to give weapons to the majority (the poor) due to fears of a revolution."

which is all good fun but bad timing because it diverts attention from the main point.
Everyone should just read the whole article.  Thanks RichardParker.

Sun, 10/05/2014 - 12:47 | 5290946 Zeta Reticuli
Zeta Reticuli's picture

we call it a "Representative Republic."

It's not. Hasn't been for decades.

Sun, 10/05/2014 - 13:29 | 5291051 Escrava Isaura
Escrava Isaura's picture

 

It hasn't been a Republic since the creation of the Senate by our “Founding Lawyers”, in 1789.

 

 

Sun, 10/05/2014 - 13:49 | 5291117 Anusocracy
Anusocracy's picture

Who cares?

It's still near absolute rule of the majority by a very tiny elite.

Eliteocracy is what government has been since its inception. Nothing has changed.

Sun, 10/05/2014 - 14:21 | 5291205 Escrava Isaura
Escrava Isaura's picture

Everyone should care.

 

Wonder why?

 

To stop blaming the wrong people.

To stop using over and over the same failed solutions.

And to name, describe our current situation, properly.

 

Sun, 10/05/2014 - 12:55 | 5290962 talisman
talisman's picture

a Plutocracy

Sun, 10/05/2014 - 13:36 | 5291074 44magnum
44magnum's picture

Organized Crimnal Cartel

Same as the MOB just on a larger scale.

Sun, 10/05/2014 - 14:41 | 5291293 Ward cleaver
Ward cleaver's picture

Not true. The Mob has
some honorable people.

Sun, 10/05/2014 - 16:56 | 5291779 RichardParker
RichardParker's picture

Kleptocracy?

Sun, 10/05/2014 - 12:43 | 5290935 techstrategy
techstrategy's picture

And yet if we simply expose the extraordinary fragility in their system,  we can end the games.   If everyone took 2-3% of their assets it in the firm of physical cash and converted another 2-3% in physical gold (especially if all raised by selling obvious bubbles life NFLX, TSLA where one can convert 1% FCF yield to phys cash and gold today), the abuse and manipulation would fail and price disinterested would take place.   It would unwind quite differently than most expect, though ZHers would mostly be correct. 

Sun, 10/05/2014 - 18:18 | 5291983 doctor10
doctor10's picture

Its an oligarchy-the oligarchs have named it "Democracy"

Sun, 10/05/2014 - 12:27 | 5290873 JetsettingWelfareMom
JetsettingWelfareMom's picture

I'm not sure what democracy has to do with the numbers in poverty and the GDP number...

Sun, 10/05/2014 - 12:28 | 5290879 deagle44
deagle44's picture

just more anti west pro russian rhetoric from zerohedge.  this is a propaganda site for russia.

Sun, 10/05/2014 - 12:33 | 5290902 kowalli
kowalli's picture

It's not a proRussian if someone are telling truth. ProRussian - is if someone tell that something in Russia is better than in USA.

example for you- you don't have democracy like in USA, Putin is a dictator.

Sun, 10/05/2014 - 12:34 | 5290905 Winston Churchill
Winston Churchill's picture

You must be flossing the back of your teeth ,with your head so

far up your arse. Or are you pretending yo're back in the womb ?

Sun, 10/05/2014 - 12:31 | 5290891 suteibu
suteibu's picture

The gradual generational recognition of the "new normal."  Those born in the Clinton years are unaware of any major loss of freedoms.  Those from the older generations have been bought off by phantom benefits.  Few have any real reason to complain.

Then there are those who realize we are all fucked and don't reckon it is worth it to make the sacrifice to try to change things.

Ergo, total inertia.

Sun, 10/05/2014 - 12:59 | 5290978 Arius
Arius's picture

thats why Spartakus is still remembered after so many centuries ... it was the real thing ....

and remember when people rebelled ....

they were slaves ....

even worse gladiators ....

chances of survival 50-50 ....

and again you have to fight another day ....

the chances of making it free ... near nil ... STILL ... people just take it ...

 

and you are gona tell me that some hongkongolese are risking it all because they want Young Ce and not Ce Young as their governor ... right on

 

interesting very interesting if you think about it ...

 

Sun, 10/05/2014 - 18:31 | 5292023 livefreediefree
livefreediefree's picture

Sorry, but we of the "older generation" know a fucking thing or ten quadrillion about what we've lost, and how impossible it will be to regain it because it's the younger generations who don't know a fuck from a get fucked.

Sun, 10/05/2014 - 18:32 | 5292026 livefreediefree
livefreediefree's picture

Disregard. Double post.

Sun, 10/05/2014 - 12:31 | 5290892 StupidEarthlings
StupidEarthlings's picture

I stopped reading when I got to the part about 'republicans wanting money for wars' .

Just doesnt add up. Maybe if this were written when bush was in the house.

Sun, 10/05/2014 - 13:08 | 5291003 LetThemEatRand
LetThemEatRand's picture

You know nothing of PCR if you think he's even remotely excusing the Blue Team.   

Sun, 10/05/2014 - 16:15 | 5291624 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ya he has been very clear about that. I don't necessarily agree with all of PCRs proposed solutions( a lot of them involve too much central planning, supposedly done 'the right way' when central planning by a select few is largely what has gotten us into this mess) but he does an excellent job of identifying the problems, and he has never given dems a pass on anything. I do agree its a little silly to specifically call out republicans for wanting war after what we have seen over the past 6 years from dems, but it's not unfair to say that politicians with an 'R' next to their name tend to favor military intervention more often.

Sun, 10/05/2014 - 12:32 | 5290900 Cautiously Pess...
Cautiously Pessimistic's picture

I know you're out there. I can feel you now. I know that you're afraid... you're afraid of us. You're afraid of change. I don't know the future. I didn't come here to tell you how this is going to end. I came here to tell you how it's going to begin. I'm going to hang up this phone, and then I'm going to show these people what you don't want them to see. I'm going to show them a world without you. A world without rules and controls, without borders or boundaries. A world where anything is possible. Where we go from there is a choice I leave to you.

Neo (circa 1999)

Sun, 10/05/2014 - 13:28 | 5291044 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

"What you know you can't explain, but you feel it. You've felt it your entire life, that there's something wrong with the world. You don't know what it is, but it's there, like a splinter in your mind, driving you mad."

 

-Morpheus

 

 

~Dipshitmiddleclasswhitekid

Sun, 10/05/2014 - 14:22 | 5291214 LostandFound
LostandFound's picture

'I'd like to share a revelation that I've had during my time here. It came to me when I tried to classify your species, and I realised that you're not actually mammals. Every mammal on this planet instinctively develops a natural equilibrium with the surrounding environment; but you humans do not. You move to an area and you multiply, and multiply, until every natural resource is consumed and the only way you can survive is to spread to another area. There is another organism on this planet that follows the same pattern. Do you know what it is? A virus. Human beings are a disease, a cancer on this planet'

 

-Agent Smith 


Sun, 10/05/2014 - 12:34 | 5290901 Pumpkin
Pumpkin's picture

The author is wrong, it is a democracy, and that is the problem.  We are guaranteed a republican form of government by the constitution for The United States of America.  A democracy is the winner rules, end of story.  In a republic, the winner rules government but always with the rights of the people protected from the government (and anyone else, via the courts).  We have a republican government, that is sold to us as a democracy, and the people are just too damn ignorant and lazy to know the difference.

Sun, 10/05/2014 - 12:37 | 5290915 suteibu
suteibu's picture

It is not even a democracy.  A democracy is grass roots.  In the US, the agenda begins from the top and followers are recruited and well financed to make it seem to be a grass roots movement.  Nothing is spontaneous.

Sun, 10/05/2014 - 12:38 | 5290916 kowalli
kowalli's picture

You should look at the charts- nothing is changing - so it's doesn't matter who are ruling-is it not strange that people want changes, elect politicians to do changes - and nothing happens? mb something wrong with democracy?

Sun, 10/05/2014 - 13:07 | 5291000 numapepi
numapepi's picture

The reason it doesn't matter which "party" is in charge because they are the same new class progressives who run them both.

Sun, 10/05/2014 - 13:14 | 5291013 LetThemEatRand
LetThemEatRand's picture

The people running the show are oligarchs.  They care about personal wealth and ultimately power (with great wealth comes power), and they are building a neo-feudal system complete with a control grid that watches the every move of the serfs.  What flavor their politics may be is completely irrelevant, as is this fascination of so many here with "progressives" and "conservatives."    

Sun, 10/05/2014 - 13:17 | 5291018 Pairadimes
Pairadimes's picture

Nominally, our form of government was intended to be a republic. The structure when originally created was intended to give most government authority to the states. This worked for a time, and was decidedly not a democracy, since there were many safeguards in the original structure to limit the power of a majority, and these were largely understood and respected for a time.

Today, the states have had their independence purchased from them by federal block grant programs for mandated benefits. No elected state government can afford to completely deny the federal government's financial influence any more. The era of the states as laboratories of liberty are long gone, and with it, most of the benefits of the republican structure.

Regardless of whether you see the U.S. as a republic or a democracy, it is currently neither, because it fails the test of true representation. The thing about democracy which has been feared by philosophers through the ages has come to pass here in the United States. In our government, it is not the majority who rule. They mistake the trinkets and platitudes sprinkled over them for influence. It is the individual they elect, in collaboration with the leviathan corporate conglomerate of government control and private wealth, that rule over everyone, to no one's benefit but their own.

Sun, 10/05/2014 - 18:35 | 5292037 livefreediefree
livefreediefree's picture

Yessss. Exactly. Like the EU, we have a democracy deficit -- and a republic deficit, and an individual liberty deficit, and a freedom deficit.

Sun, 10/05/2014 - 12:35 | 5290908 techstrategy
techstrategy's picture

Exactly.   Well said.   We are trying to support financial asset prices that have grown exponentially for 3 decades.   In trying to prevent cascading default, the G3 Central Banks gave flow to their TBTF owners to front run financial asset prices,  creating ZERO value,  but rather simply engaging in glorified theft via the Cantillion effect.   Further,  it has simply amplified the distortions (the capital market subsidy of growth at ANY cost has destroyed millions of retail jobs by subsidizing arguably predatory but certainly uneconomical pricing at AMZN.  This is accomplished mainly via synthetic profit streams that dwarf the company profits via option scalping... much more to come on that in time).

 

INVESTORS simply must assert themselves.  Sell all float scams.  Raise physical cash and buy physical gold, the combination of which provides a no expiration hedge to the real systemic risks.  Doing so can bring the system back into balance.   They aren't really in control anymore. 

Sun, 10/05/2014 - 12:38 | 5290919 Kaiser Sousa
Kaiser Sousa's picture

Dow 20,000....

Sun, 10/05/2014 - 12:58 | 5290975 Seasmoke
Seasmoke's picture

The fucking dems and repubs have hijacked the words REPUBLIC and DEMOCRACY !!!!!!!!!!!!!!!!!!!

Sun, 10/05/2014 - 13:01 | 5290980 alfred b.
alfred b.'s picture

 

      It's just that we're living tru the 'dictatorship' cycle of a democracy!   It's a common evolution of this system in which power which after being acquired by a one or more factions is in due course transferred back to the population either tru collapse, revolution and/or war....this change may occur either from within or outside forces, just as the US does to other countries but in this case who knows what the outcome will look like.

 

 

Sun, 10/05/2014 - 13:04 | 5290990 Jason T
Jason T's picture

You want to know the truth?

 

Time use Survey 

 

Americans' are fat and lazy 

Sun, 10/05/2014 - 13:21 | 5291027 Jason T
Jason T's picture

You got market work and non market work, then you got leisure.   Leisure is the things you can't pay someone else to do like go running, to to church, read a book, ect.   non market work is the stuff you can pay someone else to do for you ... loke cook a hamburger at Mcdonald's Vs doing it yourself.

What is stunning is given the lack of market work as it's been declining, non market work is declining just as much!  That's discretionary!  TV watching is at all time highs and sadly,  so is obesidy.

 

Sun, 10/05/2014 - 13:07 | 5290996 skbull44
skbull44's picture

As Charles Hugh-Smith argues in Survival +: "We must be alert to the...overwhelming need of the global Elites to reassure their restive, anxious populace that the structure of Elite dominance and wealth is robust, secure, and in the populace’s self-interest.

In actuality, the structure is not in the populace’s self interest, and it is increasingly insecure, brittle, and vulnerable to decay and/or disruption on numerous levels. Much of the vulnerability stems not from the Elite overreach but from the fact that we as a species have reached the carrying capacity of the planet in terms of a high-energy consumption dependency on cheap abundant petroleum for food, transport, water, ‘growth’, etc..

Nonetheless those who control the vast majority of assets, wealth, and tools of persuasion have the most to gain from a continuing belief in the system’s stability. Thus their defence of the system that serves their interests above all else will be fierce and unremitting."

 

http://olduvai.ca

Sun, 10/05/2014 - 13:12 | 5291010 Robert of Ottawa
Robert of Ottawa's picture

I agree government numbers are fixed for political purposes, and mostly by lieing about inflation. Wars unfortunately aren't by choice; it is one of the functions of government.

Sun, 10/05/2014 - 13:16 | 5291019 numapepi
numapepi's picture

"The US Census Bureau’s 2013 Income and Poverty Report concludes that in 2013 real median household income was 8 percent below the amount in 2007, the year prior to the 2008 recession and has declined to the level in 1994, two decades ago!"

 

Are these numbers adjusted for inflation? If not the picture is far worse.

 

BTW. The US is suoppsed to be a Republic not democracy... Democracy is one of Aristotle's wrong forms of government, his best form? A Republic, a blending of Monarchy, Aristocracy and Polity. Today we live in an Oligarchy, the wrong form of Aristocracy.

Sun, 10/05/2014 - 13:24 | 5291036 Direct Democracy
Direct Democracy's picture

A pure democracy is a Direct Democracy.   Representative democracy is a broken model because all that it accomplishes is the electing of self-serving liars.  Google direct democracy; one person, one vote, none of this current political bull shit.

 

Sun, 10/05/2014 - 15:32 | 5291045 Jacksons Ghost
Jacksons Ghost's picture

Read Thucydides...What you are advocating has been tried.  It did not end so well, ask Alcibides and Socrates.

 

"The study of history is a powerful antidote to contemporary arrogance. It is humbling to discover how many of our glib assumptions, which seem to us novel and plausible, have been tested before, not once but many times and in innumerable guises; and discovered to be, at great human cost, wholly false."- Paul Johnson Writer/Historian

Sun, 10/05/2014 - 19:47 | 5292278 Zeta Reticuli
Zeta Reticuli's picture

Direct democracies only work with perfect people-intelligent, educated, hard-working, able to defer gratification, able to put the needs of society above their own petty personal wants and needs.

See many of these lately?

Sun, 10/05/2014 - 13:26 | 5291041 Jacksons Ghost
Jacksons Ghost's picture

Croak the Fed and Central Banks in general and go back to real money. AKA Gold or Silver.  And everything else will take of itself.

Sun, 10/05/2014 - 13:45 | 5291101 Karaio
Karaio's picture

Democracy is the thing - Demo - the Devil. 

But, since it is established, relax and enjoy. 

Monitor the vote in Brazil, is interesting. 

Vote on electronic voting machines, many cities with finger sensor. 

You vote directly for President, Governor, Senator, Congressman, State Representative. 

This type of democracy does not exist in - cradle - of "Democracy". 

Here there is no "cocuns" of life! 

Kkkkkkkkkkkkkkkkkkkk!

Sun, 10/05/2014 - 13:56 | 5291137 Karaio
Karaio's picture

Brazil: 

200.4 million inhabitants. 

You know that every American president chose to 8 hours maximum.

Black, white, queer, dyke, landed immigrant, everyone is required to vote. 

Kkkkkkkkkkkkkkkkkk 

Unfortunately there are 32,000 Brazilians living in the USA. 

Most voted. 

In Europe there is half of that, a bit in China, Russia, Japan around 16,000 Brazilians living. 

We are not a "plague" in the world, the majority of Brazilians who went abroad have university level - unless whores, export women as Ukraine, believe me. 

Kkkkkkkkkkkkkkkkkkkkkkk

Sun, 10/05/2014 - 14:00 | 5291153 FredFlintstone
FredFlintstone's picture

Karairo, how far are you from Noiva do Cordeiro? Are those 300 single women actually beautiful and did they vote?

Sun, 10/05/2014 - 17:03 | 5291799 RichardParker
RichardParker's picture

Brazil birthplace of jetinho

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

 

Sun, 10/05/2014 - 13:50 | 5291119 q99x2
q99x2's picture

I'm done even ebola was a dude. I mean dud. Back to Poe and Shakespeare.

Sun, 10/05/2014 - 15:29 | 5291469 bid the soldier...
bid the soldiers shoot's picture

"Neither a borrower nor a lender be"

Sun, 10/05/2014 - 13:53 | 5291133 ToNYC
ToNYC's picture

Democracy doesn't mean much when voters don't think for themselves and buy the free growth news stories interrupted by catastrophes while their future is stolen by micro-managed distraction.

Sun, 10/05/2014 - 14:08 | 5291174 Karaio
Karaio's picture

@ First, there ... 

I'm not afraid of you, and yes, I have a grudge. 

My father was tortured by CIA agents in 1964. 

My father was an employee of PETROBRAS. 

You, asshole, need to know more about what your illustrious government does in the rest of the world. 

You need to know how many families were dissolved from bombs and torture. 

Mane! 

Study a little history. 

Write well in French and German, and Spanish too but I refuse to speak or learn English, just the basics. 

Likewise I am writing in Google translator, I hope you with half a brain entenaa me. 

Regards. 

Alexandre.

Sun, 10/05/2014 - 14:28 | 5291236 Jacksons Ghost
Jacksons Ghost's picture

"I hope you with half a brain entenaa me. "

 

ROFL!  I luv foreigners!

Sun, 10/05/2014 - 15:11 | 5291396 rejected
rejected's picture

The Republic officially died in 1913 with the 17th amendment when the state governments no longer participate in the General Government. Each sovereign state also had it's own army called the militia. It also was dismantled in the eary part of the 1900's.

The states no longer independent or "sovereign" with no militia and no say in congress are nothing but appendages of the General Government,,, every bit as dependent as most citizens are these days. To say otherwise is delusional.

The closest I can come to naming it is a Oligarch democracy in which the oligarchs choose the candidates which the people vote for. When the executive finally takes 'full' control and cancels elections it will then be a full fledged corporatocracy. (Fascism) 

 

 

 

Sun, 10/05/2014 - 15:11 | 5291405 FredFlintstone
FredFlintstone's picture

I thought it might have died in 1861.

Sun, 10/05/2014 - 15:58 | 5291556 rejected
rejected's picture

You are correct in that was the beginning of the demise. It was when the voluntary union of these States united,  became a forced union called The United States and the first signs of an out of control Executive. The Republic still "officially" functioned as the states were still somewhat independent, still had their militias and still had some sway in the General Government.

In 1903 they eliminated the militias and with it the Peoples control of Government, in 1913 they eliminated the states from having a say or veto in the General Government and they passed the Federal Reserve Charter along with an income tax amendment. The British oligarchs were back in the saddle again.

Many have justifiably questioned the 16th and 17th amendments but per usual, the media chocked it up to conspiracy theory. Logic dictates the states would not voluntarily give up their participation nor allow the indiscriminate taxing of their citizens.

One telltale sign of the difference in political times is that people then considered themselves citizens of the states they were from AND citizens of the United States. These days most consider themselves u.s citizens and simply residents in their domicile state.

Sun, 10/05/2014 - 17:06 | 5291805 RichardParker
RichardParker's picture

Ding Ding Ding Ding Ding!  We have a winner! 

+1000 Fred Flintstone

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

Sun, 10/05/2014 - 15:23 | 5291429 Stained Class
Stained Class's picture

Flatline wages wouldn't be a problem IF The Fed had just let things fall where they were headed. Like if debts were extinguished, there'd be more $$ to spend even though the weekly paycheck stayed the same. If Milk, Eggs, Butter, Peanut butter, mayonaise and kellogg's Frosted Flakes didn't double in price, the current wage would be OK. And if the people could all refinance, instead of only the chosen few, then there'd be more money to spend despite stagnant paychecks. 

Instead of having concern for wages, lets look at what the Fed's policies have done for the Working Man. Cue Jim Grant's latest piece here on ZH...

Sun, 10/05/2014 - 15:20 | 5291431 Stained Class
Stained Class's picture

OT Beer is really cheap, I got a 24 pack of Coors Light at Publix 2 weeks ago for $14.99  Inflation adjust that! Never mind, just drink it. 

How is $89 bbl oil going to affect the shale drillerz? badly? Is that why Russ2k is tanking?

Sun, 10/05/2014 - 15:28 | 5291457 nick howdy
nick howdy's picture

Our system is Fascism.

Sun, 10/05/2014 - 16:21 | 5291625 DaveA
DaveA's picture

"Clearly, government in America is focused on something different from a healthy economy and the well being of citizens."

That's because our government is a democracy, so it only needs to fool the voters for a few weeks leading up to election day. Much easier than actually solving our nation's problems, especially when the news media desperately wants the ruling party to win.

As a more long-term strategy, democracy taxes high-IQ voters while paying low-IQ voters to have more babies. This is proven to work -- never in its 50-year decline did the people of Detroit say, "gee, maybe we should try voting for the other party!"

Sun, 10/05/2014 - 16:43 | 5291730 MedicalQuack
MedicalQuack's picture

I totally agree...now the data scientists at Facebook are up to something new as well to see how many suckers they can get by creating Wellness communities.  It was not bad enough that their data scientists who got full of themselves had to upset the public with their so called scientific study but now are contemplating one more way to feed the bots

A bot on Facebook is worth about $100 and the human techno serf about one or two cents:) 

http://ducknetweb.blogspot.com/2014/10/facebook-talks-about-creating-chr...

It just doesn't quit with using intelligence with math models and algorithms against the unknowing public.  I do get tired of it and busted the White House on a blog post not too long ago using Junk Science on one of their bot sent emails, using numbers that nobody can predict.

http://ducknetweb.blogspot.com/2014/06/junk-science-appearing-everywhere...

Sadly too many are confusing virtual world values with the real world and the more government and corporations and banks keep this up, the wealthier they get and have a world of consumers that don't understand as the media has done it's role as well to keep people thinking "they gotta have all those stats" and it's like Linus on Peanuts with his blanket if you will.  People feel they need this blanket of stats and numbers anymore to feel value..and they don't.  It's very scary and huge problem.  Obama and Biden live way too virtual as well, when they did their selfie that cinched it for me.

http://ducknetweb.blogspot.fr/2014/03/virtual-worlds-real-world-we-have....

I try to do the best I can with keeping the Killer Algorithms page going (2 of which I found here and give credit for at the site on gold).  These are people smarter than me by all means and they deserve the credit for taking time to try and educate by all means.  For some reason or another the page gets flooded at times with hits from China too:) 

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

Sun, 10/05/2014 - 16:56 | 5291774 limacon
limacon's picture

What would George Washington do today ?

See http://andreswhy.blogspot.com/2012/03/george-washington.html

The same as then . Facing an Oligarchy , he successfully led a rebellion.

Sun, 10/05/2014 - 18:32 | 5291989 NuYawkFrankie
NuYawkFrankie's picture

What we have here is "A  Constantly Recycled Steaming Turd" form of Government

Sun, 10/05/2014 - 21:11 | 5292570 SocialismIsCancer
SocialismIsCancer's picture

The biggest myth of all is that "democracy", as in EVERY human gets to vote, no matter what kind of ignorant, stupid, idiot, failure, social parasite, or illegal invader they are, is some kind of ultimate good & best way to organize government. Look what proletariat "democracy" has done to America since the founding, heck just look at the last 3 pathetic scum who occupied the Whitehouse, and all the living garbage that perpetually occupies Congress, and look at the cesspool that democratic Europe has evolved into.

Monarchy & autocrats alternated between good & bad, but "democracy" of the proletariat is a sure path to entrenched mediocrity, stagnation, decline & ruin.

The ONLY way that "democracy" can ever work is if the ONLY people who are allowed to vote are the ones who have EARNED the privilege and have EARNED assets to lose, NOT those failures who want to steal other people's assets through "government".

Sun, 10/05/2014 - 21:11 | 5292576 FredFlintstone
FredFlintstone's picture

Like property owners and taxpayers...amen.

Tue, 10/07/2014 - 18:45 | 5301056 LooseLee
LooseLee's picture

All of the ultimate "gamers" of the system have assets. How is only allowing them to vote going to bring about a 'Just' system. I have these things, too, but why do others not? Figure that out and then you may be a bit closer to what needs to happen...

Sun, 10/05/2014 - 22:32 | 5292867 AdvancingTime
AdvancingTime's picture

When governments spy on their people and government propaganda programs intersect it is very dangerous and the potential of abuse is huge. This leads down a road towards less freedom and is paved with the bones of all those who have failed to be outraged by governments slowly removing their liberties This leaves all of us open to both blackmail or abuse by those in power for what they claim is a greater good as they determine just what that might be.

Never overestimate the sophistication and ability of our government to clarify exactly what is happening anywhere and at any time. The recent score of scandals plaguing Washington makes it clear that more fact-free confusion and speculation the fuel of propaganda-based reporting system is in no shortage. More on this subject in the article below.

 http://brucewilds.blogspot.com/2014/07/when-propaganda-and-surveillance....

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