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"Globalization Is Turning In On Itself And It Is Each Man For Himself"

Tyler Durden's picture




 

From Raoul Pal, author of the Global Macro Investor and creator Of RealVisionTV

At The Margin

A few things are also appearing on my radar screen – future visions if you like – that I want to share with you. These are not conclusive, but rather a stream of unfiltered thoughts, which will develop over time.

I virtually never use geopolitics to assess asset markets. I have learned the hard way over time that it is the way to the poor house. Economies run financial markets, not wars.

But I do note that at the margin, the world’s geopolitics is changing. Gone are the fluffy days of Putin shaking hands with George Bush agreeing to keep the world supplied with oil, gone are the days of China helping US firms make profits using their cheap labour, gone are open-for-business days of Europe, gone is the Japanese military neutrality, gone are the Saudis as an unshakeable ally, gone is Israel also a steadfast ally, etc.

What is happening is something deeply concerning. Globalisation is turning in on itself and it is each man for himself.

This was always going to be the outcome of an imbalanced, debt-drowning world. Everyone wants a cheap currency and since that doesn’t work then everyone wants to find some way to get the upper hand on their own terms.

I have had recent conversations with a long-term strategy group within the Pentagon about economic threats to the US and the risk of global collapse, and the potential for it to turn into a military outcome. It seems that the Department of Defence’s deep thinkers are mulling over the kinds of issues we all are – is the inevitable outcome a military one?

They don’t know either but they give it a probability and thus need to understand it and plan for it.

My issue has been for a long time that the true threat to the world is not the Muslim nations we so like to beat as a scapegoat (gotta have an enemy, right?) but China.

The Pentagon’s think-tank also agrees.

If China has an economic collapse, which again is a high probability event, then what are the odds of massive civil unrest? And would a military conflict put the people back on the side of the government (i.e. how the Nazis came to power)?

I agree. I think this is the risk somewhere down the road.

I also, along with this defence strategy group, think that there is a risk that the Western powers meddling in the time of bad economic crisis will form strong alliances between let’s say Russia and China.

In direct opposition to the government, many people inside the Pentagon are saying, “Please don’t fuck with Russia, they are not threatening us militarily but securing their own borders, we cannot control the outcomes, and most of them are bad, probably not militarily but economically, and economic instability causes outcomes we can’t forecast – even seizing the assets of powerful Russians has unintended consequences”.

Here, here. The law of unintended circumstances is a bitch.

Everyone is also looking carefully at the risk of Catalonia now having a referendum that is deemed to be unconstitutional, and then trying to enforce it in the streets.

Europe is trying to hold itself together yet the member states themselves are in danger of splitting up. How does that manifest itself? What are the risks? We just don’t know.

I think the trend of each nation for itself, a move away from globalisation either in terms of global trade, or in terms of global finance and a move towards military build-ups, is well under way. I don’t know how far it will go but I do know that I am uncomfortable with it, and that it poses some considerable risk to the stable economic system that so many have enjoyed since the late 1980s.

* * *

For some further observations on the role of globalization and what its unwind would mean..

... Gordon T. Long's take on the "Globalization Trap" is a worthwhile read.

 

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Sun, 11/02/2014 - 17:04 | 5404661 ekm1
ekm1's picture

Oh. So, Zerohedge is adopting my theories?

Sun, 11/02/2014 - 17:14 | 5404678 FredFlintstone
FredFlintstone's picture

Perhaps!

Sun, 11/02/2014 - 17:19 | 5404689 Gringo Viejo
Gringo Viejo's picture

"You thought you was playin' me, when I was playin' you."

........Sweet Dick Willie

Sun, 11/02/2014 - 18:17 | 5404718 DoChenRollingBearing
DoChenRollingBearing's picture

This has always been a world of looking out for No. 1.

Yet, the world DOES look more unstable each week.

Hmm, what to do...  Why, do what WE do at the Central Bank of DoChenRollingBearing!  Buy hard assets, preferably round coins made of metals like gold, platinum and silver.  Or even lead bullion.  Highly-engineered products made of 52100 steel count as hard assets as well.

Sun, 11/02/2014 - 18:44 | 5404896 Tall Tom
Tall Tom's picture

Hmmm...Chart II is most demonstrative of Shakespeare...

 

Oh what a tangled web we weave when we doeth practice to deceive...

Sun, 11/02/2014 - 19:11 | 5404967 NoDecaf
NoDecaf's picture

"Please don't fuck with Russia"

- an American, and inhabitant of planet Earth.

Sun, 11/02/2014 - 19:54 | 5405068 cornedmutton
cornedmutton's picture

You only think I guessed wrong! That's what's so funny! I switched glasses when your back was turned! Ha ha! You fool! You fell victim to one of the classic blunders - The most famous of which is "never get involved in a land war in Asia" - but only slightly less well-known is this: "Never go in against a Sicilian when death is on the line"! Ha ha ha ha ha ha ha! Ha ha ha ha ha ha ha! Ha ha ha...

Mon, 11/03/2014 - 00:03 | 5405722 TheReplacement
TheReplacement's picture

Inconceivable.

Sun, 11/02/2014 - 22:23 | 5405472 RaceToTheBottom
RaceToTheBottom's picture

Figure II is a Nice summary!!!

Mon, 11/03/2014 - 08:31 | 5406184 DanDaley
DanDaley's picture

Oh what a tangled web we weave

When first we practice to deceive. - Sir Walter Scott (Marmion, 1808)

 

You are right on the cluster-fingie aspects of the thing, however.

Sun, 11/02/2014 - 22:27 | 5405488 Tompooz
Tompooz's picture

Owning a pied a terre in a nice country where the government has limited resources is the additional policy that the Central Bank of Tompooz has always recommended. Yes, I think Peru qualifies.

Sun, 11/02/2014 - 22:47 | 5405569 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

You could definitely do worse.  

But, Peru's government gets stricter by the day.  A year or so ago we had their equivalent of the IRS over to look at the books.  They popped Ameru for an $1800 fine.  What did Ameru do wrong?  Nothing.  They just wanted the money.  "Cualquier pretexto"...

ALL of our invoices and receipts go by email direct to their taxation authorities.  All of it.  More advanced in that sense than our IRS.

Mon, 11/03/2014 - 05:30 | 5406052 conscious being
conscious being's picture

Reminds me of the Mexican dream house. One day somebody high up shows up and says "Oh, you made a mistake. You thought this was your house, but, it's my house. Hahahahaha." Nice sea view.

Sun, 11/02/2014 - 17:30 | 5404713 barre-de-rire
barre-de-rire's picture

and some discoverded the way humanity always worked.

Sun, 11/02/2014 - 17:38 | 5404728 ekm1
ekm1's picture

precisely, thank you

 

I'm simply applying historical conclusions to current events.

 

Sun, 11/02/2014 - 18:23 | 5404842 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

The "G-Zero" world articulated by Ian Bremmer appears to be gradually becoming a reality.

Sun, 11/02/2014 - 17:41 | 5404733 August
August's picture

Everyone wants to live by manipulating symbols, or sharing their opinion.

Few want to produce.  Can't say I blame them.

Sun, 11/02/2014 - 18:27 | 5404860 TeamDepends
TeamDepends's picture

That's a shame, as we love to produce.  From the businesses we owned, came the smiles of satisfied customers; or simply reaping fruits from the garden and sharing them.  If there is darkness in the world, it is epitomized by people who want something for nothing.

Sun, 11/02/2014 - 18:33 | 5404874 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Nice comment

Sun, 11/02/2014 - 19:54 | 5405069 ekm1
ekm1's picture

brilliant

Mon, 11/03/2014 - 08:37 | 5406194 DanDaley
DanDaley's picture

Yes, or by the people who know better what to do with your money than you do.

 

Remember what Billary said: Businesses do not create jobs. (Corrollary and subtext: Only gov creates jobs.)

Mon, 11/03/2014 - 10:13 | 5406427 jarana
jarana's picture

Excelente.

Sun, 11/02/2014 - 17:57 | 5404767 booboo
booboo's picture

"MY theories"????

Sun, 11/02/2014 - 18:00 | 5404774 Kirk2NCC1701
Kirk2NCC1701's picture

Do your "theories"** include the "Knowledge Based Society" that the chart 2 shows?  ;-)

And why bother with putting in Capital, Resources, Energy and Time into a Knowledge Creation Society (in the West), when you can simply apply "Knowledge Transfer" (Plagiarism and Theft) in the East?  I sincerely doubt that there is much Knowledge Creation happening in China, India, Pakistan, Israel, KSA, Korea, Taiwan, etc. that is flowing easily or at all TO the West. 

[sigh] I swear that the "78%" of 'Merica truly are the Dumb-ass Useful Fools/Tools: Turn the other (facial or butt) cheek, and... BOHICA.

 

** When is a Hunch, Hypothesis, Law, Model, Postulate, Principle, Rule or Theorem a Theory?  Everybody has a "Theory", even when it isn't -- in strict scientific terms.  Unless we're talking about the false/pretend "sciences" of Social Studies, Politics, Economics or Religion of course -- where "Theory" is the ONLY descriptor being used.  /sarc

Sun, 11/02/2014 - 19:39 | 5405028 Tall Tom
Tall Tom's picture

Aren't hypothesis and postulation the same action?

 

Aren't Newton's Laws actually theories? Are not Bernoulli's Laws of Fluid Dynamics a descriptive theory?

 

Isn't Archmedes Principle a theory which is backed by untold enumerations of observation?

 

Do not we create models that are tested with observation when we hypothesize?

 

(Now I know that the contraction "Don't" is most frequently used but the previous statement is still grammatically correct, grammar cops...)

 

But you are correct that hunches are not theories. Of course both postulations and hypothesis are, likewise, not theroies.

 

And neither is the Keynesian Theory of Economics a theory but it is merely a plan. Obviously plans are not theories.

 

(The people whom coined that word for it just gave it the title of "Theory" to make it sound "Scientific" and easier to sell that socialistic package of garbage to the easily duped man of the early Twentieth Century. Now it would be a theory if people actually behaved according to that plan, naturally, which they DO NOT.)

 

Yes I agree Kirk. Most just throw out that word, theory, when they are absolutely clueless to that which it means.

 

And just one errant observation...trashes a theory. It either has to be modeled a little differently to include the data set (a Band-AidTM fix), or absolutely trashed. Theories are rather weak in that regard. It is somewhat like the Theory of Evolution...but we will not get into that. ;-) 

Mon, 11/03/2014 - 05:44 | 5406061 conscious being
conscious being's picture

Kirk-meister, consider this. The world we know to our senses is an illusion. Western science came to this conclusion about 100 years ago. Guys sitting on the Indus, Vedics, Aryans, intuited this maybe 10,000 years ago.  SteppenWolf is a great book. He's always walking thru doors nobody else sees. Projection is real. Look at the 2-slit experiment. Don't limit your conteplations to the realm w/i the blinders.

Mon, 11/03/2014 - 09:42 | 5406316 Raging Debate
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Conscious Being - Upvoted you for deep thinking and encouraging it. As for me I got beyond the "illusionary" thinking. The light in two slot experiment tells me that both states are real, simultaneously but in different form, different times (velocities) and different spacial dimensions.

Always good to keep head in the clouds but feet on the ground.

Sun, 11/02/2014 - 17:08 | 5404666 TheSecondLaw
TheSecondLaw's picture

Great graphics

Sun, 11/02/2014 - 17:15 | 5404673 Theta_Burn
Theta_Burn's picture

WTF.. it was alway every man for himself..

It's just that now the great satan is bankrupt, and the repositioning is happening for the next phase which will be called survival of the fittest..

 

Its a brave new "got resources"? world...

Sun, 11/02/2014 - 17:14 | 5404675 FreeShitter
FreeShitter's picture

It has always has been each man for himself unless you are a free shit army recruit.

Sun, 11/02/2014 - 17:43 | 5404730 LetThemEatRand
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Just the other day, I was driving on the publicly funded interstate system on my way to a public airport after a business meeting.  I got lost, so I consulted my GPS that relies on NASA satellites.  Just as I looked up, I saw a terrible accident and had to swerve to avoid some firemen who were pulling a guy out of his vehicle.  I then turned on some Limbaugh and man, he had the best rant about the free shit army.  But even better was his next rant about how Obama is threatening the country by not increasing military spending enough in these dangerous times.

Sun, 11/02/2014 - 17:48 | 5404752 nmewn
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"Just as I looked up, I saw a terrible accident and had to swerve to avoid some firemen who were pulling a guy out of his vehicle."

Figures, they can't even teleport firemen to the scene of a crash and keep them out of non-blocked lanes.

Sun, 11/02/2014 - 18:19 | 5404832 Seasmoke
Seasmoke's picture

Fuck That Just Buy a Rand Map !!!!!!!!!!!!........

 

(thanks for the softball pitch)

Sun, 11/02/2014 - 18:21 | 5404840 LetThemEatRand
LetThemEatRand's picture

I did buy a Rand map, but some guy ate it!

Sun, 11/02/2014 - 18:49 | 5404921 Tall Tom
Tall Tom's picture

What in the hell are you doing driving and NOT paying attention to the road conditions?!?

 

You looked up? From what? You are fucking distracted by what? A God Damned Radio Broadcast by a lunatic?

 

I wonder whom is more of a fucking lunatic...That God Damned Drug Addict Rush Limbaugh? Or you, driving while not looking at where you are going...

 

(Or maybe it is me for driving on the same road as all you crazy Rush Limbaugh listening fucking lunatics?)

Sun, 11/02/2014 - 17:14 | 5404676 Rememberweimar
Rememberweimar's picture

Was there a point to this article?

Sun, 11/02/2014 - 18:09 | 5404799 Ignatius
Ignatius's picture

Yes.  ekm1 is a genius, just ask him.

Mon, 11/03/2014 - 05:44 | 5406060 LULZBank
LULZBank's picture

The trick is to tell people what they want to hear and you will have dozens of followers.

It does has to be true and can be as meaningless.

Sun, 11/02/2014 - 17:24 | 5404700 McCormick No. 9
McCormick No. 9's picture

Please. Enough fake Ebola nuuz.

Sun, 11/02/2014 - 18:05 | 5404791 Rememberweimar
Sun, 11/02/2014 - 17:22 | 5404694 Hohum
Hohum's picture

Globalization will fade because humans are getting less and less net energy out of their activities.  In that light, financialization steps in -- for a while.

Sun, 11/02/2014 - 18:16 | 5404823 Seer
Seer's picture

+1,000,000

Everyone has to make it in to some gawd-awfully complicated reason when in fact it IS just as simple as this.  Deception and human hubris tend to cloud our minds from understanding this...

Sun, 11/02/2014 - 17:30 | 5404703 MATA HAIRY
MATA HAIRY's picture

you have it backwards. Globalization is simply an EFFECT --not the CAUSE--of the divide et impera tactic used by the corporations and elite.

 

How did the elite/corporations divide and rule america and the West so that they could IMPLEMENT globalization?

 

First, structure of the nation and government. The elite/corporations first used divide et impera when they created the USA from the several states. They increased factions with voting districts so that voter unity was decreased. Less unified means the people are less able to hold their politicians accountable.  They increased factions within districts by enlarging the districts. Larger districts means more factions means less unity. That is why our founding plutocrats discared the Articles of Confederation and illegally installed the current federal constitution.

 

Then they created multiculturalism so as to increase heterogeneity among the populace. A more "diverse" populace is more divided.

 

So, increase the size of the nation and increase racial, cultural and national diversity. That increases the number of factions inside districts, which means less unity among voters, which means the people have less control and the corporations have more control.

 

THAT increased control over the government means the corporations and plutocrats can implement globalization and mass immigration.

Mass immigration increases factionalization further, thus creating a positive feedback loop. Globalization decreases wealth, giving the corporations more power.

Positive feedback again.

Well, there is more to it than just that, but you get the gist.

 

 

And so it goes...

 

Sun, 11/02/2014 - 17:33 | 5404716 barre-de-rire
barre-de-rire's picture

global will fade just because of one thing : costs.

 

at some points, make stuff homeland just as expensive as chinese world factory. when this day comes,  prey to be already dead to not see what happen.

Sun, 11/02/2014 - 17:40 | 5404731 Monty Burns
Monty Burns's picture

That's correct and goes to show that the capitalist elite and the Cultural Marxists have circled only to meet up. Add in the systematic destruction of fundamental institutions like family, religion, traditional education etc.

Sun, 11/02/2014 - 18:17 | 5404825 MATA HAIRY
MATA HAIRY's picture

actually the capitalist elite SELECTED cultural marxism for survival among the many ideologies out there. Capital funded cultural marxism and helped it to the top of the ideology pyramid because cultural marxism helps keep corporate profits high and send them higher.

 

How?

Cultural marxism increases the supply of labor, thus depressing wages and increasing the number of consumers, thus increasing corporate revenues.

 

Cultural marxism also weakens voter unity, making it harder for the voters to control the gov't and making it easier for the corporations to control the gov't.

 

Cultural marxism is an economic tool used against Labor by Capital. Cultural marxism was funded by Capital to do just that.

See the books CULTURAL COLD WAR and FOUNDATIONS AND PUBLIC POLICY: THE MASK OF PLURALISM.

 

 

Sun, 11/02/2014 - 18:23 | 5404845 Seer
Seer's picture

NO ideology changes the equation.

http://www.newworldeconomics.com/archives/2014/092814_files/TheFateofEmp...

Humans have now progressed to the point in which the growth meme can no longer continue.  Having "fundamental institutions" while still maintaining the quest for perpetual growth does NOT change the equation- the same outcome is inevitable.  One can reflect back on another time, but that time did not see the global consumptive levels that we have attained.

Systems only hold together for as long as there are the necessary resources to support their basis.

Sun, 11/02/2014 - 17:35 | 5404719 McCormick No. 9
McCormick No. 9's picture

Debt based money creation works fine below a certain debt-to-production capacity ratio. Don't ask me what that ratio is, I'm not an economist. But intuitively, I am pretty damn sure we passed it a long time ago. We are deep in the region of diminishing returns. The only entties with a capacity for more debt are governments. That capacity is based on a societal debt tolerance, ie, how much collective pain are we willing to suffer? (People will suffer a lot more if everyone around them is suffering as well, ie London Blitz, etc)

But I think we are starting to approach a limit there as well. Shit to hit! Soon!

Sun, 11/02/2014 - 18:26 | 5404858 Seer
Seer's picture

"Debt based money creation works fine below a certain debt-to-production capacity ratio."

Not without growth.  Somewhere along the line we forgot to ask ourselves what would happen to our systems if growth ended.

We'll soon learn the true value of resources...

Sun, 11/02/2014 - 17:42 | 5404740 STG5IVE
STG5IVE's picture

BUY A HOUSE!

Sun, 11/02/2014 - 17:46 | 5404747 Gusher
Gusher's picture

If America is in decline because of "Globalization", did America play a part in our downfall?  When Kohlar plumbing moved thousands of jobs to Mexico because the EPA essentially outlawed their Wisconsin foundries, whose fault was that?  When we can't open copper and gold mines in N. MN because of the tree huggers ( in and out of the legislature), and hence we must buy our metals from overseas mines, whose fault is that?  Same with oil drilling on federal land - its not going up.  Is New York exploiting their huge shale gas deposits or instead expanding their welfare state?  And how is coal doing? And coal fired elec generation? Timber any better? I doubt it as I see train loads of Canadian timber pass thru my town. So this globalization thing was caused by who?  Partly the idiots in Washington who seem to think thery were elected to harrass our once great industries!!!

Sun, 11/02/2014 - 18:32 | 5404875 Seer
Seer's picture

Just think, we could have the Kholer plant still here producing shit for the Chinese housing bubbles!  And free would be the pollution, just like China has the privilege of.

The POINT is that nearly everything is a dying industry.

"Timber any better? I doubt it as I see train loads of Canadian timber pass thru my town."

I think that you should just cut it all down as quick as you can so that we can build more ghost buildings that people cannot afford.

Idiots are those who cannot comprehend that this is finite planet.  "Washington" is serving TPTB, they are NOT idiots: the wealth is flowing to the wealthy, just as it always has; because you're now figuring this out doesn't mean that it magically just started happening (or happened with NAFTA etc.*).

* 1971 was the Rubicon year.  USD went full fiat.  US oil production peaked.  Trade relations with China opened up.

Mon, 11/03/2014 - 02:33 | 5405947 Gusher
Gusher's picture

If Seer was as smart as he/she/it thinks he she it is, we would all be better off by reading it's rambles.  When will Seer see the light?  I'm betting not too soon as conspriracy crap attracts he/she/it.

Sun, 11/02/2014 - 21:49 | 5405391 usednabused
usednabused's picture

Well now Gusher, who stands to benefit from any mining up around lake vermillion and north? Maybe a few jobs but not at high wages by any means. Mainly the owners of the mining company I'd guess. And would they sell production for any less than the so called world pricing? Fuck no they wouldn't. And meanwhile they fuck up the only wilderness in the state.

And as far as your whining about the timber industry goes, I'm sure you remember about 15 years back when Potlatch and Blandin, and all the big players were paying good prices for popple stumpage. About $90 or so. All of a sudden they all got together and said "whoa". Boom, prices went to $25 overnight. All the counties around backed their sales down to the new pricing to 'save' the loggers. That basically shut down logging on private lands so the state jumps up and triples the amount they sell each year thereafter. Again to 'save' the industry. lol. And what they don't tell you is that meanwhie the taxpayers pay more, my own property taxes have tripled in that time frame, and the forests are cut all to hell. Drive around the woods once and see if you think its sustainable at all. How is it that usage goes up while prices to the users  can come down? Fascism is how, pure and simple. And its alive and well in MN too.

Just saying, open your eyes and consider all the angles, not just what big business tells you to.

Mon, 11/03/2014 - 02:42 | 5405956 Gusher
Gusher's picture

Hi Neighbor. just a freindly hi since we are both residing in Minnesota. So it is not surprising that the average Minnesotan, (the land of ten thousand taxes)  would diss "the man", the man who owns the "means of production"...etc...lol...too funny.  Look pal, if the price of stumpage has crashed, maybe that is because we have had 5 OS Board plants close and several paper mills close and or downsize.  Is our woods sustainable?  UUmmm, since all the plant closing I mentioned,  in this glorious Obama economic recovery, I would say those woods are becoming OVERGROWN. Wake up for God sakes. Northern Eastern MN is in a depression!

Mon, 11/03/2014 - 10:37 | 5406520 usednabused
usednabused's picture

Yup, Hi. from West of you a couple hours. I know about the plant closings, but the fact is there is more stumpage cut now than ever. SO like I asked you, what other industry gets a cheaper price when they use more resources? And I realize that its a depression in NE MN, Hell it is here in NW MN too. But only for the ordinary people who have any assets or are self employed, or are on a W2 near or slightly above the poverty level. Meanwhile those with the 'means of production' as you called them have never had it so good. They are producing paper returns like never before. And the Free Shit Army, freeloaders, and all gov't employees have also never had it quite so good. So maybe you had better wake up to reality too. Before it runns you over. Enjoy the nice fall weather before the shit hits!

Sun, 11/02/2014 - 17:48 | 5404754 justmy2cents
justmy2cents's picture

Good article. During the Ukraine mess when west turned against Russia I found a surprising voice of reason in Tony Blair he warned it was a mistake and said we need to stay allies for lots of reasons including combating global terrorism. For once I agree with Tony blair.

Sun, 11/02/2014 - 19:51 | 5405064 Bollixed
Bollixed's picture

"for lots of reasons including combating global terrorism"

WAKE

THE

FUCK

UP!

Sun, 11/02/2014 - 18:00 | 5404777 Clesthenes
Clesthenes's picture

“Globalisation is turning in on itself and it is each man for himself.”

We are not quite there yet; yes, we are heading to that condition.

A review of recent history should have warned us.  During the great inflation in eastern Europe after WW one, the only thing that kept affected countries from total chaos was a horde of foreigners who came in with hard cash to buy assets for pennies on the dollar.  Thru-out it all German governments continued to function because of the flood of foreign carpetbaggers.

What happened there will soon happen in the near future, but on a global scale.  What else should we expect when the world’s reserve currency (the dollar) is built on a house of cards?  As a reserve currency, it serves as the foundation for most of the major currencies (yen, Swiss franc, English pound, Euro, yuan, it is a long list).  Thus, when the dollar goes, all those houses of cards built on top of it will also go. And, it will be unlike eastern Europe: there will be no one to come in and pick of the pieces.  That’s when it will be “each man for himself.”  Why?    With destroyed currencies world-wide, there will be nothing to pay bureaucrats, they’ll just walk away from their offices.

What should we do in the meantime?  We can’t stop the destruction – but we can take measures to save ourselves.  I suggest historically-proven measures: those employed by American Founders.

But there is a major problem: Americans have the power to redress any grievance that could be named – and thus, exercise sovereignty; but they REFUSE to use that power. There are three main reasons for this failure: one is that they have no knowledge of such power; the second, they’ve been herded into a kind of impotent stupor by medication and indoctrination; the third, that they aid, benefit or were complicit in such evil.

There’s a remedy for all three of these failures: 1) learn, and use, the law and procedures of redress (full article); 2) follow a health regimen that has REDUCED – not slowed – my biological age 50 years; and, 3) see number one.

This health regimen has given me the coordination, health and physical condition of a professional athlete around the age of 20; I’m 70 years of age (for validation, video and webpage – each leads to the other).

Sun, 11/02/2014 - 18:03 | 5404779 Duc888
Duc888's picture

 

 

I have no problem with this.  I can produce.  I am a survivor.  The shit bags who move fantasy digits from one ponzi account to another and make their living off the skim will not be so fortunate.

 

Bring it on.

 

Sun, 11/02/2014 - 18:03 | 5404780 Dre4dwolf
Dre4dwolf's picture

Globalization is the least efficient economic model you can create.

O/C it will fail.

 

The only question is, how many people will starve to death before it does?

Sun, 11/02/2014 - 18:35 | 5404881 Seer
Seer's picture

Sadly, that's it in a nutshell.

Overshoot.

I'd have to figure that the Green Revolution will end up being noted as the worst human program/goal/decision EVER.  Going to be hard for lots of folks to revert to some sort of native crops after their soils have been (de)conditioned for global market crops.

Sun, 11/02/2014 - 21:57 | 5405417 Village-idiot
Village-idiot's picture

Not to forget the "Monsanto Laws" that are being passed (a la Colombia)

Sun, 11/02/2014 - 18:05 | 5404786 CHX
CHX's picture

The gold is going east, so the east will be ok IMHO. It's the U$$A that is sinking, despite the currently somewhat stronger dollar. China has the U$$A by the balls with it's dollar holdings and soon all the U$ gold. Anyway, time will tell where and when chaos hits and for how long. We're all just guessing, really. So many things could go wrong... the list of known problems is already too long, in addition to the real unknowns that are also out there lurking...

Sun, 11/02/2014 - 18:05 | 5404793 polo007
polo007's picture

According to Barron's Online:

http://online.barrons.com/articles/barrons-up-down-wall-street-tokyo-thr...

What markets didn’t know and didn’t expect was that Japanese officials would move so dramatically to try to spur that nation’s flagging recovery. Specifically, the BOJ upped its goal for the expansion of its monetary base, to 80 trillion yen ($720 billion) from ¥60 trillion to ¥70 trillion, a move the central bank’s governor, Haruhiko Kuroda, said is aimed at ending Japan’s “deflationary mind-set.” As a result of the plan to print more yen, the Japanese currency weakened to nearly 112 to the dollar from just under 108.

Meanwhile, Japan’s $1.1 trillion pension fund said it would shift its portfolio strongly toward equities—allocating 25% each to domestic and foreign stocks, up from 12% each—while trimming domestic bonds to 35% from 60%. In gambling terms, this is going all in on Abenomics, as the stimulus plan is called, after Shinzo Abe, Japan’s prime minister.

This is truly a dazzling example of 21st century government finance. The government runs a deficit covered by IOUs, or bond borrowings. The central bank buys those bonds to fund the budget shortfall and also purchases bonds sold by the pension plan, all with reserves it creates out of thin air. The pension fund uses the newly printed yen it receives from the BOJ for its bonds to buy claims against the future earnings of private industry—that is, common stocks.

Those are the financial impacts. In the real world, the effect is to make Japanese exports cheaper and to export deflation to Japan’s trade partners.

Sun, 11/02/2014 - 18:12 | 5404812 MATA HAIRY
MATA HAIRY's picture

I actually like what just happened. I am heavy in cash, ready to retire within 2 to 3 years with a pension. I want to buy a house on a VA loan.  Japan will indeed export deflation. This will keep interest rates down and also will keep home prices low--low inflation means low prices. All these new apartment buildings coming on the rental market will also keep housing prices down.

 

I am staying out of stock and other assets until the market crashes, which I think will be about 2016 fall --when a populist democrat will look to be the favorite to take the white house (warren or Bernie Sanders). That will scare the market, just like obama did in 2008 fall.

 

 

Sun, 11/02/2014 - 18:16 | 5404826 FredFlintstone
FredFlintstone's picture

Is there an advantage to taking out a loan to buy a house especially so close to retirement?

Sun, 11/02/2014 - 18:21 | 5404835 MATA HAIRY
MATA HAIRY's picture

the pension will pay for the mortgage, and social security will kick in 2 years after that to pay for everything else. I have free medical care as a vet.

 

I am a cryonicist and I want my cash available in case my insurance policy has problems in the future. Gotta freeze that brain if you want a chance at immortality!

 

 

Sun, 11/02/2014 - 18:22 | 5404843 FredFlintstone
FredFlintstone's picture

Makes sense :)

Sun, 11/02/2014 - 19:26 | 5404864 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

MATA HAIRY

+ 1

Hmm, interesting scenario.  I agree that Japan is exporting deflation, and that's OK with me as well, at least for now...

I have thought as well that if I have the money and can time a stock market crash correctly (hard to do that), that I would like to buy US industrial assets on the cheap too.

Sun, 11/02/2014 - 21:29 | 5405338 Seer
Seer's picture

In the end we'll all either have to put it all IN or let it collapse (which it will anyway).

Perhaps one day in reflection it'll occur that margins only existed because of growth.  Man, economies of scale in reverse are going to be a bitch!

If you have any paper get on with trading it for something meaningful: you can see some desperate folks trying to unload their toys on Craigslist; it ain't paper, but it's not worth much more.

Sun, 11/02/2014 - 18:15 | 5404802 delacroix
delacroix's picture

it's still early, we haven't seen any of the ethnic specific biopathogens yet.

Sun, 11/02/2014 - 18:14 | 5404819 MollyHacker
MollyHacker's picture

Asian markets would fare far better in the deflation spiral by demanding the gold convertibility and revaluation of the world monitary indices.

Sun, 11/02/2014 - 18:14 | 5404821 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Globalization is defunct and nations are turning against nations, shoring their borders, and organizing for the war to end all wars, and superpowers,

en masse. Go ahead, motherfuckers, push the red button to the left that says 'NUKES', I dare ya.

 

<nudge nudge wink wink know what I mean>

 

NOTE: If the American Government thought that their entire economic system was about to implode they would undoubtedly opt for a strategic plan to reduce risk associated with possible collapse. If they were sure of collapse just like everyone on Z/H is, they would opt for weaponized Ebola to reduce numbers and control mobility through Infection Control legislation. And we all know this has already occured

legislatively across all US states and in CANADA. Convergence in terms of empirical evidence suggests that the Government of the United States of America is not taking a tack of consensus with regard to the entire world. The USA has gone rouge in terms of taking a unilateral stance with regard to world affairs and forcing their will upon nations that are unwilling to be abused financially by good old American Neo-Liberal largesse in the form of Corporatism and Fascism. Enough with the Fascism allright allready, America. If you carry around pictures of Chairman Mao you won't be making it with anyone anyhow, Uncle Sam.

 

Sun, 11/02/2014 - 21:31 | 5405342 Seer
Seer's picture

I don't believe that TPTB feel they've properly addressed the risk to them from a nuclear war, in which case sabres will be rattled, but in in the end TPTB will accept being able to continue to rule over the locals (who will be looking for ANY scraps).

Sun, 11/02/2014 - 18:21 | 5404837 q99x2
q99x2's picture

Buy Gold bitchez.

Sun, 11/02/2014 - 18:30 | 5404867 DoChenRollingBearing
DoChenRollingBearing's picture

Yes!  Join the 1%! *

 

 

* Only about 1% - 2% of Americans own any non-jewelry physical gold.

Sun, 11/02/2014 - 18:31 | 5404873 FredFlintstone
FredFlintstone's picture

Or you can become gay

Sun, 11/02/2014 - 19:12 | 5404958 Tall Tom
Tall Tom's picture

It is wise to diversify your personal inventory of Gold.

 

Since Gold Jewelry was not confiscated in the last great confiscation back in 1933, and was legal to own, buy, sell, and trade, then a substantial amount of both your Gold and Silver holdings needs to be in the form of Jewelry.

 

Ideally you shall have it in 21K to 24K Jewelry but even 10K to 18K makes a nice cache of scrap.

 

Although Gold Bullion is much easier to trade and barter, and much more liquid in today's economy, a cache of scrap ensures that if the Government attempts a seizure of bullion, it is much less likely they will bother with Gold and Silver jewelry as they did not in the past...

 

I will agree that it is prohibitively expensive to buy brand new jewelry out of the stores because the premiums are exorbinant. But one can buy scrap right off of Craigslist.

 

I would not use eBay as I want to physically examine any "Karat Gold" item which I purchase and test it with acids to make certain that I am not paying an exorbinant price for brass.

 

It is easy to test and it can be done.

Sun, 11/02/2014 - 19:18 | 5404979 FredFlintstone
FredFlintstone's picture

Are you a Pawn Star?

Sun, 11/02/2014 - 19:44 | 5405046 Tall Tom
Tall Tom's picture

No. But I stayed in a Holiday Inn last night.

Sun, 11/02/2014 - 19:24 | 5404983 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Tall Tom

Great comment.  Yes, diversification within gold is a good idea once you have beyond, say, 5 oz.  Different coins (they did NOT confiscate numismatic gold coins for example), different forms of gold, different locations (go ahead and give some to your responsible children if you have them), where you have it stashed.

I am thinking of buying the acid testing kits for measuring the amount of gold in scrap.

Can buy platinum and/or silver too.

+ 1  


Sun, 11/02/2014 - 20:09 | 5405082 Tall Tom
Tall Tom's picture

Many years ago I started my stacking venture with purchasing the Karat Gold Jewelry first....

 

That is how I would suggest that beginners do it. Just do not pay a lot for it and you will not get hurt.

 

Sell to Coin Stores as they typically pay the most for small lots. Take the profits and turn it into Gold.

 

For those with ready cash, and a current stack of bullion, I would suggest hitting up the Pawn Shops and the Coin Stores and buy up thier Scrap Gold for a small premium over melt. They will be pleased at getting that premium.

 

If I were your financial shoes, DoChenRollingBearing, that is what I would do.

 

 

 

Sun, 11/02/2014 - 20:54 | 5405220 DoChenRollingBearing
DoChenRollingBearing's picture

I just saw a new product the other day by the same guys who make "The Fisch" balances for weighing gold coins.  It is called "The Ringer", you place your Eagle, K-Rand between the jaws, and allow the striking hammer to hit the coin.  Gold (both 22 kt Eagles as well as 34 kt coins) will "ring" (higher pitch than you might think) whereas tungsten just makes a dull thus-click sound.

Listen to the audio and see the video:

http://thefisch.com/

I am very interested in buying one and checking all of my Eagles....

Sun, 11/02/2014 - 18:53 | 5404923 Jack Burton
Jack Burton's picture

" a move towards military build-ups, is well under way." Inside political and academic circles in Russia's power structure, many are going public with the belief that they have been targeted by the USA and it's NATO allies. The signs of pressure, like NATO expansion even when relations between Russia and the west were very good, have been growing. The Georgian assault on South Ossetia  during the opening ceremony of the Summer Olympics made an impression on Russia. Especially the air strikes and artillery that killed a number of UN sanctioned Russian peace keepers inside South Ossetia. Followed by an assault on the civilian population as if ethnic cleansing was the goal of the night time attack. In any case, the result of that surpise war at a time when NATO was heavily active in Georgia, and at a time negotiations were ongoing to solve it peacefully, led Russia to believe that western negotiaters were lulling them to sleep while NATO military men planned and set loose the surpise attack.

The whole story in Ukraine, of a coup against a legally elected government, with western money and NGO's leading the coup from the front, also made Russia wonder of this was all a NATO land grab to take all Ukraine terriroty into NATO overnight by a political coup. This time Russia was well ready, and jumped to beat NATO to Crimea, and also led to Russian support for the Donbas people's who refused to accept a Kiev coup agianst the leader they have put into office at the ballot box.

Right now, popular Russian leaders, not only Putin, as saying that they believe that war has been declared against Russia, and that it is proxy and economic now, but is determined to go all in, and push NATO and Russia into open battle. A war in which the USA will sit back and watch Europe destroyed in economic and military battles. A double win for the USA, and a near return to the 1950's. America with the only intact economy, ready to smash China and walk into Western Russia with NATO.

It is not IF I am right. It is that Russia perceives this war to be real. That is what makes it dangerous. Much of Russia openly talks about a war being thurst upon them, and their need to get and be ready for an open NATO challange. Most likley surrounding a false flag in Ukraine or the Balitics. Washington needs to be carefull what it wishes for, because the war it wants so badly, may not go as planned.

Sun, 11/02/2014 - 20:26 | 5405154 Monty Burns
Monty Burns's picture

All perfectly true.

What I don't get is why our European 'leaders' are going along with this self-destructive program. Are they utterly stupid, venal beyond all comprehension or do the globalists have the dirt on them?  I certainly believe that Merkel is compromised up to her iron drawers.

Sun, 11/02/2014 - 21:34 | 5405349 Seer
Seer's picture

Europe's fucked.  Simple enough.  No resources.

I made this point years ago here, specifically noting that Germany was NOT the economic powerhouse and invincible as everyone was claiming (fast forward to today to find out that my call was dead-on).

Folks in Europe are going to find things interesting.  I worry about the farmers there...

Mon, 11/03/2014 - 08:31 | 5406183 websitefound
websitefound's picture

Always enjoy your posts Jack Burton - well thought out and researched :-)

 

Thought this might be a good time to remind everyone how this plays out in my own slightly sarcastic view.

France will be one of the first countries fall (it always is)

Italy has already surrended

Germans will be on the losing side (no matter which one they pick)

England will be bombed to the point of losing but no-one will complete the final invasion

Switzerland will make a fortune by sitting on sidelines

U.S will start the war covertly and then join at the end once it knows who will win

China will start war with Japan but lose due to their equipment being a victim of cheaply made chinese crap

Someone will invade Russia in winter.....again and with predictable outcomes. (pick the shortest leader)

The final winner and new world economic and military power will not be the U.S or China but the dark horse - North Korea

 

Sun, 11/02/2014 - 18:54 | 5404933 zippy_uk
zippy_uk's picture

So after bilking the general publics money (well paid jobs, savings, assets, small business), the politicians are getting a kicking from electorate's.

 

GLOBALISATION IS OFF

 

To soon be followed by these peditory debts - about time you wrote these off..

Sun, 11/02/2014 - 18:54 | 5404936 kchrisc
kchrisc's picture

Two Zionist elites, one centered on using the control, manipulation, and power of the CIA, and another centered on using the control, manipulation, and power of the Pentagon.

Its the CIA center of power against the Pentagon center of power. The CIA is winning, they even have their manchurian candidate in the White Puppet-House.

Ultimately, we, the American people, are just the cannon and bomb fodder caught in between.

An American, not US subject.

Sun, 11/02/2014 - 20:36 | 5405179 Tall Tom
Tall Tom's picture

If you ever tire of being used as Cannon or Bomb fodder...

 

Then you can buy Nitric Acid, Sulfuric Acid and Glycerin and do some productive work.

 

I would not ever suggest that you mix them together without an ice bath because it will be a blast.

 

But you really cannot have too much.

 

Make sure that you have also purchased Hydrochloric Acid and have some Aqua Regia mixed up with some Gold, or Gold Filled, already in solution. That is the reason for owning that Nitric Acid and Hydrochloric Acid after all...

 

Sulfuric Acid is used for Lead Sulfide Wet Batteries as an electrolyte and can be purchased at your local Auto Parts Store.

 

You do own a car, right? It has a battery, right?

 

Nitric Acid can be purchased at your local Jewelry Supply.

 

And Hydrochloric Acid can be purchased, as Muriatic Acid, at your local Swimming Pool Supply chain.

 

And Glycerin is not only used as a enema for constipation but can be used in baking confectionaries. It is available across the counter at your local pharmacy.

 

All of this can be purchased with cash and there is absolutely no paper trail.

 

And I would not ever suggest that you do anything which is violent or illegal.

 

There are legitimate reasons for owning everything which I wrote about.

 

Refine Gold and make it legitimate.

 

Sun, 11/02/2014 - 20:58 | 5405242 Bemused Observer
Bemused Observer's picture

Tall Tom, refiners tend to be an exclusive crowd, a bit jealous with their secrets...:-)

Also, the idea of most of these folks playing around with nitric acid and the chemical reactions involved makes me a bit queasy...

I've long thought of giving it a try, but I'd gather first the knowledge, then the proper equipment (ALL of the proper equipment), then follow the general outline of something like the Hoke book, to get a feel for the processes first. Some of the reactions you can get with the process can generate poison gas, and that shit can mess you up if you spill any of it. Definitely not something to try casually, though some sources make it sound so easy.

Mon, 11/03/2014 - 04:41 | 5406014 Tall Tom
Tall Tom's picture

When you basify your Aqua Regia with Sodium Bisulfite it does stench like Rotten Eggs as SO2 gas is generated. (Do that outdoors) 

 

You do want an ice bath while basifying.

 

SO2 will be toxic if concentrated, but if you are well ventillated, as in the outdoors, it should be no more than a nuissance. It is less dangerous as inhaling someone else's flatuence. (Fart)

 

But once that solution has a pH of 7 it is water as all of the free Hydrogen ions have been neutralized and all of the Gold has preciptated out..

 

Check your pH with Litmus Paper.

 

So you have Flour Gold precipitate in water.  What is the danger in that?

 

Just make sure that you do not have any ferrous metals in that initial solution as it will cause a boil over. Use a magnet first to remove those before adding acid to the scrap (which is safer as nothing splashes).

 

Save the salts from the initial Aqua Regia baths as they contain Silver Salts from which the Silver can later be extracted.

 

Wear gloves...and protective goggles and clothing. Keep an abundant supply of water available to flush yourself in case of an accidental spill.

 

That is just common sense crap.

Mon, 11/03/2014 - 11:55 | 5406833 Bemused Observer
Bemused Observer's picture

I only say this because I've read some pretty scary posts on several refining sites...Evidently there is a lot of interest in gold recovery. But not so much interest in learning about it first...
You've got people who basically post, "Help! I just threw my wife's jewelry into a jar of acid. Now how do I get the gold?"
Or, "I don't have a Bunsen burner, can I just heat it in the microwave?"

*facepalm*

Most folks should just gather the material, and sell it to a refiner. Skip that whole 'getting-the-gold-out-myself' thing...

Mon, 11/03/2014 - 12:09 | 5406881 Bemused Observer
Bemused Observer's picture

And btw, someone who scoured those sites could probably make a killing by contacting all those 'home refiners' who ended up with a container of 'mystery acid' with all their gold in solution...they've tried everything, but it just won't 'drop'...

Sun, 11/02/2014 - 18:58 | 5404945 californiagirl
californiagirl's picture

For the NWO, Agenda 21, population-reduction, globalist pipe dream to suceed, the world has to keep getting uglier and uglier so that more and more people are willing to give up their rights and freedoms in exchange for peace and safety and the increasing government control that comes along with it.  After decades of successful puplic-school indoctrination and increased dependence on Big Brother dole-outs, the majority of the American sheeple will easily give in. As Soros and other NWO puppet masters have stated, the Western middle classes are the largest obstacle to implementation. Much progress has been made in recent years towards eroding this obstacle. As much as I am not a fan of the NWO, Agenda 21, Codex Alumentarius, America 2050, etc., just about Everything I see happening today seems to fit the plan. The world is turning into one, huge, giant version of a Soros Color war.

Sun, 11/02/2014 - 20:12 | 5405120 10mm
10mm's picture

George Soros=Vampire Blood. Only last for so long. Just like Henry and the rest.

Sun, 11/02/2014 - 20:20 | 5405138 Monty Burns
Monty Burns's picture

Soros, Kissinger et all have lasted long enough already and sadly show no signs of joining Lucifer just yet.  THat's what a diet of children's blood does for you.

Sun, 11/02/2014 - 21:14 | 5405297 Village-idiot
Village-idiot's picture

Personally, I don't believe today's middle class will stop them. I believe that organized Christianity is the thorn in their side. It was Christianity in Europe and elsewhere that stopped Hitler and Japan. That was the "trial-run" and the Elite learned a lot from that little excercise. They learned that Christianity's influence had to be curtailed if they wanted to succeed. That's why there's the world-wide attack on Christianity in N.America and Western Europe by means of a "quiet or soft revolution" by Sappho, muslims and other religions. I'm sorry to say that it appears to be working.

Of course, if you've read the book you know how the story ends, and it's not too good for the forces of Lucifer.

Mon, 11/03/2014 - 04:43 | 5406015 cornflakesdisease
cornflakesdisease's picture

Any good links for reading on this subject?  I agree.

Sun, 11/02/2014 - 19:15 | 5404975 ZeroPoint
ZeroPoint's picture

Nowhere to run to baby...nowhere to hide.....

Sun, 11/02/2014 - 19:19 | 5404980 smacker
smacker's picture

"My issue has been for a long time that the true threat to the world is not the Muslim nations we so like to beat as a scapegoat (gotta have an enemy, right?) but China."

Mr Raoul Pal has got it wrong.

I suggest it is not that China is the greatest "threat to the world" as he thinks, but that it's being set up as such by Washington and its obedient allies. After all, we live in Western democracies (ROTFL) and our criminal leaders have to rustle up a reason before they start a war, even if the reason is totally fallacious as in Vietnam, Iraq, Libya, Syria etc etc.

Is Pal not aware that as far back as the days of GW Bush, Neocons in Washington were openly saying that by 2020-2025, the USG would have to confront China to retain itself as the global supreme power. I personally saw one of them interviewed by the BBC saying that.

It's been suspected by some people for quite a time that current Washington policy is to somehow neutralise Putin & Russia to clear the path to China, to avoid the risks of taking on both of them together.

Of course, China and Russia are well aware of this and will no doubt be planning for the eventual confrontation to end all.

 

Mon, 11/03/2014 - 04:39 | 5406012 cornflakesdisease
cornflakesdisease's picture

The folks at Dollar, Inc also work at China, Inc.  China and the US aren't enemies, their allies at the very top.

Mon, 11/03/2014 - 04:59 | 5406028 smacker
smacker's picture

Thanks, that's a very interesting perspective.

It's exactly in line with what Edward Griffin said a while back: When the big dictators go to war, it's not because they have opposite ideologies or different political aims, it's simply about "who" will be top dog.

Mon, 11/03/2014 - 10:15 | 5406449 Raging Debate
Raging Debate's picture

Cornflakesdisease - You are 100% correct. The USA politicos shifted wealth and military secrets to China. They are personally vested and China is a huge hedge against Russia ever really acting up again in our lifetimes at least. China is the new reserve currency, blessed and facilitated by Western power brokers.

The "we need to contain China" memo is for public consumption. Part of reserve currency job is global policeman so expect China to ratchet defense spending much higher. Long Chinese defense companies. Meanwhile, like Britain as reserve currency before it, watch as the USA cuts its defense budget.

The buggest geopolitical risk is Russia feeling encircled and deciding to push the big red button. So yeah, I agree with the "don't fuck with Russia" memo.

Sun, 11/02/2014 - 20:43 | 5405202 AdvancingTime
AdvancingTime's picture

I contend the primary reason that inflation has not raised its ugly head to become a major economic issue is because we as  a society are pouring such a large  percentage of our wealth into intangible products or goods. This includes currencies. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.

The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.

 It is important to remember that debts can go unpaid and promises be left unfilled. If this happens where does it  leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years.  More in the article below.

http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....

Sun, 11/02/2014 - 20:54 | 5405226 Kina
Kina's picture

Globalisation of the employment market was always going to equalise wages between poverty countries and advanced companies. The destruction of the middle class inevitable.

 

There will be two classes in the end. With near billiono labor pool globally to compete and get a job wages must fall and meet somewhere between poverty and middle-class. This is what has been happening, hidden by the growth of personal debt. But now the game is up.

 

Multinationals and govt elite heaven.

Sun, 11/02/2014 - 21:41 | 5405373 TeethVillage88s
TeethVillage88s's picture

Only works if energy is cheap, shipping is cheap.

Maybe the fall in gasoline prices helps a little.

But since they have printed so much Fiat and so many different kinds of fiat... Energy & Shipping looks cheap.

Mon, 11/03/2014 - 07:28 | 5406112 smacker
smacker's picture

Quite so. And once they have levelled down global society and wages, they will be ready to implement the next phase of their one-world socialist utopia: to allow unfettered immigration/migration/movement of people between countries, which will act as a built-in regulator of wages to keep them at the lowest tolerable levels.

And if the EU is anything to go by, we won't even be called "countries" any longer, it'll be "regions" or "states".

Sun, 11/02/2014 - 21:12 | 5405285 notallangreenspan
notallangreenspan's picture

Stable economic system?? In what crack smoking world? 

Sun, 11/02/2014 - 21:33 | 5405346 TradingTroll
TradingTroll's picture

He meant  that the period in the 1980s was like the first few months with a new credit card before you max it out to its limit

Sun, 11/02/2014 - 22:05 | 5405439 I Write Code
I Write Code's picture

Well but why, what is the new theory that explains this, replacing the classic "comparative advantage"? Or are all these spiderwebby diagrams supposed to be a new theory?

Just maybe it is more complicated than just globalism (though I'm among the first to scream about the 10,000,000 jobs shipped from the US to China being the structural cause of everything bad).  There is automation.  There are banksters.  There are Obama, Pelosi, and Reid, not to mention Romney and Boehner.  If we had ten virtuous men perhaps the Lord would not smite us so.

Maybe the problem is we're so fucking fat and rich, we just can't handle the truth.  We could fire about half the people who still have jobs and with a better distribution system everyone would eat better and have more stuff.  Scifi writers have been yapping about a future like that for fifty years.  And you know how you move towards such a world?  Central bank printing.

Sun, 11/02/2014 - 22:27 | 5405486 joego1
joego1's picture

It's possible to get even with globalization in a minor way. I like to buy, for example, 10 solidstate relays with free shipping from hong kong for like $10 bucks or something like that. It's crazy to think that anyone could be doing anything but dumping products at that price. It's just a matter of time before the insanity of whats going on gets overtaken by gravity.

Sun, 11/02/2014 - 23:25 | 5405643 Radical Marijuana
Radical Marijuana's picture

Another grossly optimistic article, like most of those featured to be republished on Zero Hedge. Nobody really has a clue what happens to a criminally insane civilization totally dominated by enforced frauds, and the related attitudes of evil deliberate ignorance, after those are amplified to astronomical magnitudes by progress in basic science and technology, which end up primarily being employed to become better at backing up lies with violence.

It is practically impossible to objectively assess how extremely out of touch with reality our current kind of civilization has become, since almost all of its social successes are based on the abilities to back up legalized lies with legalized violence ... in ways which enable that kind of short-term success to continue to deliberately ignore anything that does not matter within that short-term set of priorities. However, my best estimates of the real situation (beyond the ability of the social and political systems to continue to operate on the basis of being able to continue to enforce frauds) is that the longer term consequences of operating a criminally insane civilization are that it must go through psychotic breakdowns and collapses into chaos, that are far worse than anything that ever happened before in known human history.

The "globalization" that was achieved was globalized electronic fiat money frauds, backed up by the force of the threat of weapons of mass destruction. In that context, it is pathetic to think that individuals will be able to cope with the consequences of that runaway social insanity. The scale upon which those consequences will play through makes the survival of individuals too irrelevant to really matter. While I agree that the established systems are going to drive themselves to their own mad self-destruction, I do not agree that there will still be any possible return to previous levels of self-interest, that only used to be possible because they were relevant units of survival, that did not have to concern themselves with things social polarization greater than ever before, and, more importantly, destruction of the natural world orders of magnitude worse than anything previously, all of which are happening on a globalized scale. Previous bad times for human beings are relatively trivial compared to the globalized bad times that human beings are causing to happen to themselves in the foreseeable future.

Since the established social systems were based upon the dominant members of one generation being able to be sufficiently dishonest and violent to force through what they wanted, regardless of whatever would be the real consequences to other people, and future generations, the future is going to be produced by the triumphs of those kinds of enforced frauds driving conditions towards psychotic breakdowns beyond human control. Indeed, since what is under human control is almost completely controlled by lies backed by violence, while nothing else outside of that matters, or can prevent that from happening, the only ways that the current globalized systems of enforced frauds can be transformed is by factors beyond their control.

When we get to the point that the cumulative consequences of those enforced frauds go out of human control, those consequences will result in the surviving individuals being pathetically inadequate to respond to that situation then. It would have been better if the established systems of legalized lies backed by legalized violence had been able to allow saner transformations in previous times. However, that was never politically possible then, and it is still practically impossible now. Therefore, the future for the human species will be determined by the consequences of their runaway criminally insane civilization driving conditions out of human control, because nothing within human control is able to prevent the established social systems based on enforced frauds from continuing to be socially successful, due to their ability to continue to enforce their frauds, by backing up legalized lies with legalized violence, despite that doing so drives civilization as a whole to behave in worse and worse criminally insane ways.

Mon, 11/03/2014 - 00:37 | 5405794 robnume
robnume's picture

Time to cue up George Romero's "Night of the Living Dead."

Mon, 11/03/2014 - 01:50 | 5405904 dag
dag's picture

Russia knows that war is coming.

China knows that war is coming.

Every evening, the Chinese news and talk shows analyze US and Japanese military weapons and strategy.

The latest news reports and videos of fighting in Syria, Iraq, Ukraine are supported by in-depth analysis.

Americans, with their idiot President, are oblivious and unprepared to the chaos that is brewing.

 

 

Mon, 11/03/2014 - 02:17 | 5405931 fibonacci's claus
fibonacci&#039;s claus's picture

that headline would be nice if it were true. 

more like "globalization is smoking cigars and having brandy at the bar", "as uncle sam struts around the ballroom in his tux", "as average americans don waitress uniforms and serve them up their own personal blood-sweat-tears, served in a jewel incrusted pimp cup"

fix it

Mon, 11/03/2014 - 05:40 | 5406045 tumblemore
tumblemore's picture

It was inevitable if you think of it in terms of supply and demand. 30-ish years ago most of the demand and most of the supply (by value) were both in the West and so it balanced. Then the banking mafia betrayed their fellow citizens and offshored the supply part of the equation to China. This made them personally very rich because they could produce the goods much more cheaply while selling them at the same price but obviously it's impossible in the long term to sustain a system where all the supply is in one place and all the demand is somewhere else. It has only been possible over the last 30-ish years of globalization through borrowing.

 

And who did the West borrow from to sustain their unsupported demand - the banking mafia.

 

Globalization was yet another banking mafia scam.

 

Mon, 11/03/2014 - 05:41 | 5406057 Batman11
Batman11's picture

Why look so far?

The West has been on the brink of collpase once.

This was nothing to do with Russia and the Cold War or Muslims or any other external factor.

It was the wizards of Wall Street building a financial house of cards on the shaky foundations of sub-prime.

When this house of cards collpased, the Western financial system nearly collapsed and the West with it.

 

The enemy is within and they have been using QE to build more financial card houses.

 

Mon, 11/03/2014 - 05:43 | 5406059 Batman11
Batman11's picture

Global recessions 1930s/now follow Wall Street Crashes 1929/2008.

Global war follows global recessions 1940s/?.

 

Mon, 11/03/2014 - 08:29 | 5406182 Pumpkin
Pumpkin's picture

As far as I can tell, the billionaires run in packs.

Mon, 11/03/2014 - 09:25 | 5406283 Raging Debate
Raging Debate's picture

Got to keep comments short now and will be posting less of them.

1) Evolution is cyclical, patterns of centralization and decentralization running in 40 years cycles each.

2) Those with power and guns also have better understanding of these cycles and will hedge at your expense as decentralization approaches.

3) As men become more ruthless, there slowly emerges more need for solutions and individuals that can be trusted and are bright can provide them and make out well.

4) Your best hedge in life is staying healthy, be moderate of habits and exercise. Hedge against robberies by expecting them during the transition from centralization and decentralization. Teach men to fish over handing them fish but don't let a man starve during the process.

5) Love your neighbor as yourself, from alliances for ideas and group protection and problem solve at the local community level.

6) Try and stay optimistic about the future, learn new things based on your interests helps.

7) Have three months food, water and sanitation like bleach and the means to defend it physically. Hard assets as hedges are nice but income producing ones are better. Both together are the wisest if possible.

8) Men externalize problems more as decentralization happens. If you have to choose externalizing your problems or internalizing, choose the latter but strive for personal balance through moderation of habits.

God bless you all of people of all nations.

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