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Guest Post: Why Monetizing Debt Could End In Revolutions
Much has been made of the decision by the Japanese government to inject another $700 billion into their ailing economy. While some may see this as an earnest attempt to save Japan from further stagnation and deflation, even some of the mainstream media (e.g. Bloomberg) are questioning the wisdom of this reckless act.
Over the last few decades, since the crash of 1989, Japan has injected billions into its banks and stock-market to help its economy but all of it has been a miserable failure. America has, via the Federal Reserve, increased its national debt to formerly unthinkable numbers with almost no effect on its ailing economy. Most of Europe has huge public debt as a result of bank bailouts, but still suffers from stagnating or shrinking economies.
In fact, any privately owned central bank that has undertaken monetization policies (creating more public debt) has failed to improve their nation’s economy and merely created a transfer of wealth from the general public to corporate hands.
Of course, government owned banks such as in China and Russia are and do take somewhat different actions given that they are owned by the public (state owned) and not private individuals or corporate entities. Therein lies the crux of the matter – private ownership means private interests, therefore the needs of the country and the populace are of no concern at all.
All that the Fed, BoJ (Bank of Japan), the Bank of England etc. have been concerned with is the preservation of private banks and the continued propping up of stock markets. None of these institutions really care about the real-world economy, real-world inflation or the ability of individuals to maintain their lives in a prolonged period of economic contraction.
While monetizing is all great news for the banks and stock-markets it is terrible news for any people that do not receive well over average earnings – this is because monetizing debt (printing money) causes inflation. As with everything else connected with the economy, governments cook the books on inflation to the extent that the CPI is a total fantasy designed to give falsely low inflation rates.
Even the most foolish of people can see that month by month food, fuel, utilities, clothing and just about everything is going up in price. Part of this is due to factors such as environmental/weather disasters and conflict that can affect production and therefore prices. However, the continual currency wars – a race to the bottom to expand and devalue the US dollar, Euro, Pound, Yen etc is the fundamental cause of runaway inflation that is affecting most households.
When you couple high real inflation with stagnation or reduction in wages over the years since the 2008 crash then real-world buying power of most individuals is drastically reduced. This doesn’t just make people depressed, it makes them angry – hardworking people do not expect or deserve to be thrust into poverty.
Governments press blindly on, printing money, propping up the financial sector and saddling their voters with more and more debt that must be paid for in taxes. They know that the public is unhappy, but they are more interested in placating their corporate partners than listening to a public that is increasingly poor, increasingly angry and increasingly close to open revolt.
Stimulus has failed to produce any ‘green shoots’ simply because it has been directed to where it is of no benefit (except to the already rich) and not at where it desperately needs to go. Throwing good money after bad is not going to change anything unless it is redirected to the bottom and middle earners who are the lifeblood of any consumer society.
Quoting Raul Ilargi Meyer’s recent article: ‘Any stimulus must be directed at the bottom, or it must of necessity fail… it’s very simply that an economy cannot function without its poorer 90% of citizens spending.’
If this is true, which I believe it is, then more monetizing debt can only lead these ailing economies into further ruination and further beggaring of the masses. If this continues then the bulk of the population will become poor enough and angry enough to demand change on their own terms.
This will begin with mass protest and if it is ignored or suppressed then continued attempts to retain the status quo will lead to insurrections and possibly violent revolutions. One can only hope that governments will act soon in the interest of the people for once instead of lining the pockets of corporations and those that own them.
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"Why Monetizing Debt Could End In Revolutions"
Why Monetizing Debt Very Definately Ends In Revolutions
there, fixed it for ya
Hmm, but you misspelled a word
I know someone who actually PRONOUNCES it that way, 'Definaytly'!
DavidC
When rules are made to benefit only one tribe, it ends up in revolutions.
and it is happening since Moses.
what is that insinuation about gov owned central banks of russia and china vs. capitalist countries central banks ... he wants us to become commies now ???
well ... i dont think that will be an happy ending either ... they got plenty of inflation, malaria, ebola and all that capitalist or communist
so, according to this author, the key to fixing all this is giving money to the bottom 90% rather than the wealthy? why the hell is this even on ZH? That sounds like something paul krugman would say. Asking to govt to solve a problem it created is counterproductive since that how we got here in the first place. Creating moar debt to help an economy thats lagging due to all the debt is not going to work
What the author really failed to spell out is how we got here.
Exporting jobs to Asia, Mexico, and anywhere else they could find cheap labor.
The importing of millions of cheap laborers whether from India, Mexico or wherever they could find someone willing to work for substandard wages displacing US workers and holding wages down while corporate fat cats collect millions in salaries and bonuses.
Crushed between first world real estate prices (and debt) and third world labour prices.
Real estate prices should be justified by the ability of the land to make a profit. When those buying / renting the land have to compete against the third world for wages, ability to pay adjusts. Land prices should also adjust but they do not. Too much commerce invested in phoney valuations claiming solvency. Plus you can always import money to make up for the shortfall at home.
I am not sure he says we should redistribute it but that the natural consequence of our current policies benefits the elites. For an economy to be vibrant and growing the larger population must be able to prosper.
I believe that is what happens in a free and unmanaged economy.
A friend of mine calls it economic cock blocking.
Krugman has never advocated for any % below 99.99. I think you've got him mixed up with Robert Reich. Krugman is the intellectual lapdog of the oligarchs.
Let's boil this "Any stimulus must be directed at the bottom, or it must of necessity fail… " down just a little. It's not really stimulus that needs to be directed to the bottom. It's resources and real things. That's what the money would be used for if they had it. Food, clothes, cars, houses, etc. So just maybe the disconnect is not in the monetary realm at all. Maybe the real disconnect is in resources and real things.
I see this same mistake made in so many economic analyses. But I do see more people getting it right now. Take Tullet and Prebon, Martenson, Tverberg, Heinberg, Prins, Horowitz, etc for instance.
How about NO stimulus from government. Bottom up stimulus? Try letting deflation take its course.
The reason the FED RES does not want to do this is because well....YOU would end up owning the assets instead of the notes they want you to hold.
the FED is just trying to help ... but there is so much they can do ... if it was a magic solution it would have been done long time ago.
the thing is america has run its course and there are more people in the wagon, than pulling the wagon ... people dont want to see it ...
so the blame goes around and around and around ... the FED, Obama, latinos are easy targets ... cant lose really ...
Yes latinos are just a scapegoat especially since they come here in the millions willing to accept wages that undercut American workers.
How many more latinos can we allow into the bloated welfare boat before the whole thing capsizes under its own weight?
How many more workers can we continue to import to displace native workers.
Since you haven't been displaced by an illegal immigrant or an immigrant on a H1-B visa I guess this doesn't affect you.
They say illegal immigrants come here looking for a better life. But is this mass migration of humanity good for the people already here?
Does importing millions more workers per year help the nearly 90 million displaced workers already out of work?
i would suggest a book from Thomas Friedman titled "That used to be us" ... that in title is China ...
he also, conveys a powerful idea to the young graduates ... they are competing globally now ... no more closer border where you can protect your jobs ... you have to compete against the world ... the capital flying reflects it ... the world has changed not anymore that security that used to be ...sorry, am i affected or not doesnt change a thing ...
Young grads competing globally now - against those who have a cheaper cost base. Take your first-world living standards and debt levels and compete against third world living standards and debt levels? Something tells me that the first world grads are priced out of the market.
Third world living standards here we come and at every point the market will be cheering, "There is no better way!"
I think that I see a suggestion for a "trickle up" policy. All stimulus is reserved for jobs for the poor and middle class.
I, for one, think we should give it a go.
I would love to piss on a Bankster....
I am getting tired of getting pissed on.
send each of us a debit card we have to spend (not usable for savings/ira, etc) of $40,000 per household (100 mil households @ 40K= 4 tril)
or send us a debit card = to our annual income reported in 2013 (that will be near 4 tril, i think)
and then lets have a party
Again this money will be a debt and China is sick of being peed on, already.
No stimulus == Deflation
Now THAT would be a bottom up stimulus.
In the current crony capitalistic/marxist system it comes down to this:
Low Interest Rates = Deflation
High Interest Rates = Inflation
We will not see Inflation until interest rates rise.
"Why Monetizing Debt Very Definately Ends In Revolutions"
And Global War. When the leading economic Powers loose control they will take us to War. Do not forget the esculating tensions between China and Japan and the USA with Russia,the middle east, half of Asia, and North Africa.
"If there will be any Revolution in the 21st century soon, it will be done by those who became statistical figures of poverty, unemployment, inequality and social exclusion by this brutal system. People with no hopes and dreams, no better future to seek, no class consciousness. People who have nothing to lose. It will be bad, chaotic, unpredictable and rather doubtful that someone could call it 'Revolution'."
http://failedevolution.blogspot.gr/2014/11/revolution-evolution-or-revol...
Sounds good to me, lets get this motherfucker started
Set it off!
It will be those who became impoverished, unemployed, less equal and socially excluded by this brutal system, but did not become statistical figures. Spot the trend since 2010:
http://research.stlouisfed.org/fred2/graph/fredgraph.png?g=RZE
Part of the problem is that the unemployed poor socially excluded bastards are being told that they're just fine. They're not unemployed because they're no longer part of the labor force, but they're sure as hell out of work. "You're fucked right now, but if you can figure out how to feed yourself and grow your own food, we won't come and take your property" woudl be a much kinder message than the bullshit we are hearing today.
The CB policies in most of the world are very bad but Japan has no real natural resourses of their own and has to buy nearly all their raw materials. Now they are inflating the Yen to the point of insolvency. When they go down there will be a general collapse. I see the other CB's trying to prop Japan up which will make the collapse worse.
Yessir, they're going to try to sustain the unsustainable as long as they can. That's going to make the height of the drop that much greater. All of this because some greedy oligarch cunts want to make a buck or a billion and cannot fathom the idea that it won't last. We could be on the path to a different life that isn't so bad, but no, we have to push on ahead with globalization. Fucking cunts.
And "they will be the first up against the wall when the revolution comes." The Hitchhiker's Guide to the Galaxy.
You can only hope. I think it's just as likely that you'd see some bank tellers that don't know shit about shit when it comes to how the banking industry actually works getting dragged out of their cubicles and beaten/shot/tarred'n feathered/etc... When shit goes sideways, I think a lot of people are going to be looking at what is right in front of them, not where the real problems lie. If it comes to that, sure, burn the branches down, but leave the poor tellers alone. They're just as in the dark as most of the rest of the population.
Well when things come unglued the me first crowd will notice the people in their castles and decide to 'liberate' their wealth by any means necessary which is what the people in the castles trained them to do. "Hoist on their own petard" comes to mind.
“Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats.” ? H.L. Mencken, Prejudices: First Series.
The temptation seems widespread on ZH. What are we, errr, you, all waiting for?
I think they'll go for what is easy and right in front of their face. Jewelry shops, doritos trucks, all those evil small businesses who are all conspiring to raise prices so that EBT doesn't buy jack shit, and all those evil rich 1% doctors and engineers who started all this </sarc>. These are people the puppetmasters have trained the mob to attack. Keep the upper middle class good and scared so they support a more vigorous police state. Keep them fighting a rearguard action while the real crimminals escape with the last of the loot. Get the people to blame each other so that rewriting history will be easier. Even if the mob could understand such subtleties, they probably wouldn't care. "Me, me, me, free shit, whatever I can get away with!" The puppetmasters have trained them well.
The truly evil 0.01% are well guarded and well hidden. The mob won't get them. Disgruntled special forces will, with a little intel from disgruntled servants. Now if we get Total Chaos, guards and cops will melt away, all city/suburban mansions will become big fat targets and the mob will at least be able to loot what wouldn't fit in the learjet.
no more banksters wrote: “became statistical figures of poverty, unemployment, inequality and social exclusion by this brutal system.”
Which year, of this brutal system, are you talking about?
1609–10, 1783, 1787, 1846, 1861, 1896, 1900 election, 1944, 1949, 1959-61, 1971, 1986, 1988, 1994, 2003, 2008, 2009, 2010….
Which year?
In this system, you are only free when you have nothing left to lose.
True.
“you only lose what you cling to”
no more banksters, is such an optimistic name, while you already appear to know that the spiral of enforcing frauds will result in crazy collapses into chaos and mass murderers, which do NOT deserve being called "Revolution."
Only an intellectual scientific revolution could understand how and why our society is dominated by systems of enforced frauds enough to perhaps transform that to become something better. However, it currently looks like the vast majority of mainstream morons, who believed the biggest bullies' bullshit, as the banksters more and more betrayed them, will NOT go through sufficient changes in the ways that they think.
The deeper problems are that human energy systems NECESSARILY manifest through the principles and methods of organized crime. Any so-called "revolution" would mostly be the old systems driving themselves through mad self-destruction, which would not result in anything better as long as the majority of people continued to believe in the same bullshit social stories afterwards, as they were tricked to believe in before.
Remember, everyone welcomes the overthrow. It's Thermidore that kills you! The counterrevolution is when the communists show up and kill you.
It happened it the French revolution for sure. It happened in the Russian revolution. They are just waiting for this.
In fact just about the only revolution that worked was the American one.
For a while anyways....it just took the socialist forces 200 years or so years to get their party rolling...now they are winning.
Yep, but this time their gullible foot soldiers are the "Occupy Wall St." crowd and other of the same basic type......
Don't think that those gullible "pacifists" won't crack some skulls if they're given a bit of authority.
(One major difference between myself and them is that I actually know how to use my rifles.)
Oh yeah, there is nothing more dangerous than a pacifist who can justify a murder but they'll have to compete with the street gangs that think killing whitey is a recreational activity.
Today is 3 Frimaire CCXXIII in the French Republican calender
Awesome. Beware Thermidore!
Much discussion of revolutions.
Be very very careful as more than likely you will be fighting a battle few others are willing to fight and those you think you are fighting for, will end up fighting along side your enemy.
I have seen this first hand and I tell you there is no reason to publicly make your feelings, thoughts or plans public. Insighting or joining a mob will only put a target square on your back. If you wish to fight, fight alone. An army of 1 million each fighting alone and dispersed throughout a large land mass amongst millions of people will be far more insideous and indefensible than massing together as cattle do before their slaughter.
I will always be a lone TimberWolf.
I'm on my own side.
Good quip, El Vaquero!
So far, I have never been able to find any "side" that I would want to join.
The Virtues of a Disorganized Resistance
Stephen DeVoy
Break Your Chains
American opposition movements have always focused on the notion of organization. It has always been their goal to organize the people. Their hope has been to wield the collective power of the disaffected, downtrodden, and exploited as a single unit against the concentrated power of the ruling class. While their hope has been noble, their methods have been foolish. Organized resistance has many drawbacks. These drawbacks have seldom been discussed by the opposition. We believe that the only effective resistance is a completely disorganized, decentralized, and leaderless opposition.
While, on the face of it, this claim may impress you as absurd. Of course it seems absurd! It is counterintuitive. Never the less, it is the ONLY method of resistance that will work within American society. We will explain why organized resistance has never worked in the United States. In addition, we will promulgate a new formula for effective resistance.
Why has organized resistance failed in the United States?
There are many reasons for the failure of organized resistance.
There are many reasons for the failure of organized resistance. The two primary causes of failure are intimately connected to the culture of the United States and the political system laid down by our nation's founding fathers.
The Cultural Cause
Americans, culturally, are anarchists. Few Americans realize this. Most Americans have a false understanding of the term "anarchism." However, upon examining the beliefs of your average American, you will find that most Americans: do not trust leaders, do not trust government, wish to be left alone, value their privacy, think of themselves as independent from society, do not believe that there is a systemic solution to their problems, believe that others should be free to do what they choose, provided they do so in private and do not harm others
despite the political culture, most Americans choose not to participate in it.
While it is undeniable that political culture in the United States often speaks to the opposite of the above list, it is also undeniable that most Americans register as neither Democrat or Republican and most Americans do not vote. Thus, despite the political culture, most Americans choose not to participate in it. This is not only due to their belief that the American political system is hopeless, but also is due to the cultural clash between the wider culture and the political culture.
Any attempt to organize large numbers of Americans into a single political movement will fail. Any attempt to create an organization led by a strong group of leaders will fail. Americans reject submersion into the collective. In a sense, Americans are anti-collectivists.
The Political Cause
American political culture is not ideological. Politicians attempt to draw ideological distinctions between the two major parties, but these distinctions are a matter of splitting hairs. The only significant difference between the two political parties is the degree of compassion represented by the rhetoric of the two parties. Compassion is not a political concept. Compassion is an attitude. Thus, the two parties differ, primarily, in attitude and not ideology.
American political parties are, for all intents and purposes, organized crime units.
Despite this, there remain two political parties. One is prompted to ask "why?" If each party is basically the same, with respect to ideology, why do they not merge into one party? The answer to this question is best found in viewing each political party according to its true nature. American political parties are, for all intents and purposes, organized crime units. American political parties have more in common with the Mafia than they have with their counterparts in more democratic societies. Like Mafia, each political party competes for control of territory in order to maximize the benefit to their business constituency. Like Mafia, the political parties attempt to mold the system to maintain their positions and access to resources. Like Mafia, the political parties force the average citizen to pay "protection" under the threat of violence (taxes). Like Mafia each political party uses the "protection" money collected for its own advantage.
By defining our political system in terms of the "majority" and the "opposition," our Constitution enshrines this two mafia system into law. Each Mafia passes laws to exclude new comers from the game while focusing the rest of its energy in destroying the other Mafia.
Thus, any resistance movement that chooses to become an organization is in competition with these Mafiosi. The deck is stacked and the power of the state, wielded by these organized crime units known as the Democratic and Republican parties, will waste the time and resources of any newcomer. A newcomer can only succeed by rejecting the political system, draining its resources, and undermining the rule of the state.
How is disorganized resistance superior?
In American society dissidents are systematically slandered, libeled, harassed, and villainized.
In some societies, dissidents become heroes. In American society dissidents are systematically slandered, libeled, harassed, and villainized. If they become successful, they are murdered (e.g. Martin Luther King, Malcolm X). In the American experience, movements that look to leaders are decapitated. Leaders are a liability, not an asset. Organizations can be (and are) infiltrated. Organizations can be taxed. Organizations have legal responsibility. Organizations have membership lists and lists are wonderful tools for the oppressor. Organizations take on a life of their own. They struggle to exist and their continued existence takes priority over their mission. Organizations attract opportunists, power mongers, and attention seekers. Organizations tend to exploit their rank and file for the benefit of their inner circle. Disorganizations share none of these defects.
Bureaucracy cannot comprehend disorganization. Disorganization is invisible. The asymmetry of the relationship between organization and disorganization favors disorganization. Organization depends upon planning. Planning requires predictability. Disorganization cannot be predicted. This leaves organization at a disadvantage.
Organization requires a supply chain. Supply chains can be disrupted. Disorganization depends only upon the resources of its members. Supply chains that do not exist cannot be eliminated.
Disorganized movements rely upon swarming.
Disorganized movements rely upon swarming. Swarms are difficult to defend against. If you cut a swarm in half, you have two swarms. If you eliminate one of the resulting swarms, you still have a swarm. Disorganization breeds. Organization grows. The many and dispersed are a more difficult target than the large and concentrated.
Organizations takes their steps by design. If the design is flawed, the organization fails. Disorganization relies not upon design but upon evolution. The motivating notions of disorganization are memes. Memes evolve and memes compete. This process improves the motivating notions of disorganization. This process produces multiple courses of action. While some may fail, others are likely to succeed. Taken as a whole, disorganization is more likely to succeed.
a movement based on disorganization will continue to survive, evolve, and expand without cost.
The important thing to remember is that it is easier to destroy than to create that which is designed. Thus, the cost to those who lose the manifestation of their design outweighs by leaps and bounds the cost it takes to destroy it. That which evolves is cheap and when an effort is created to destroy the evolved entity, it merely mutates and evolves again, adjusting to the new conditions. As a process that fosters evolution, a movement based on disorganization will continue to survive, evolve, and expand without cost. The resource constraints placed upon the designed (e.g. government and corporate) and those absent from the evolved (a decentralized and disorganized opposition movement), favor the later.
The limits of disorganization
We do not propose a complete absence of organization. Instead we propose a disorganization of units. Units can be as small as a single individual, or as complex as cell of individuals working together. Cells may be internally organized, but they should not be statically organized cell to cell. The movement should have no commander. It should have no central committee or governing body. No global plans should be made. The modus operandi of each unit should be to think globally and act locally. Ideas, strategies, and tactics should float freely and compete as memes within the medium of the collective conscious.
Conclusions
We need to construct a disorganized movement. You need not apply to join. In fact, it might be better if you did not contact anyone except those with whom you wish to form a unit. Your ideas, strategies, tactics, and lessons learned should be spread anonymously or by word of mouth. When you act, should you decide to act in resistance, attribute your actions to "the Resistance." The growing din of disorganized disruption will be felt as an earthquake. There will be trembles. There will be pre-shocks. The tension will mount and, in time, there will be an earthquake. When that earthquake strikes, the organized edifice of the oppressor will fall like a house of cards.
Please excuse the long post.
You have got to be fucking joking.
" most Americans: do not trust leaders, do not trust government, wish to be left alone, value their privacy, think of themselves as independent from society, do not believe that there is a systemic solution to their problems, believe that others should be free to do what they choose, provided they do so in private and do not harm others"
200 years ago, possibly. Now: not so much.
How about: most Americans: do trust leaders, do trust government, do not wish to be left alone, do not value their privacy, do not think of themselves as independent from society, do believe that there is a systemic solution to their problems, do not believe that others should be free to do what they choose, provided they do so in private and do not harm others.
lets start with their wives, they are lonely and promiscuous like their husbands
Yeah, throw a book of poetry at 'em. That'll rock the world.
I believe this opinion, which was shared verbatim on no fewer than 2 ZH topics today, represents that of a Fedcoat shill, actively psyopping those who are contemplating action.
Organized action must occur to set things right, or at least comfortably different.
'They' train together, in teams of no fewer than 2, and frequently 6 or more. They train specifically to neutralize threats from 1 or 2 individuals.
You need allies for effective neutralization, including establishing a second axis of fire/assault, plus bringing to bear heavier weaponry or sniper fire.
No Green Beret ever mounted an effective counter-insurgency acting alone. You've got to get in the field and recruit/train allies.
Make no mistake, we are living in the post rule-of-law America.
Edward Snowden proved what one person can do. You do things your way, I will do it my way.
Central Banks monetizing debt is theft of the population, no different than onerous taxes and a lack of food.
The nobility of France learned this lesson with their heads. King George kept his but lost the colonies.
The new nobility hasn't learned their lesson yet; let us hope and pray they pay with their heads.
"hardworking people do not expect or deserve to be thrust into poverty."
Luke, dear chap, are you still residing in your parent's basement? Clearly you haven't been out in the REAL world, otherwise you'd KNOW that 2/3 of the world's population (that's over 4 1/2 BILLION people) lives on $3/day or less. There's something like 750 MILLION folks in India living on about $0.50/day. (I have a pretty good idea on what most of the world's people live like- my wife is from the Philippines [been there not as a tourist].)
The very term "poverty" is aimed at shaming people into action in order to bolster the System (work harder so you can spend more so that kleptocrats can skim more).
Tensions, wars, signs of resource shortages. Unless people identify the REAL source of our "ills" there is ZERO chance of making any meaningful correction: I never propose any "solutions" because nothing is final; plus, I have no desire to be a dictator (I'm a "guider," a muse- don't ask others to do what I myself would not do).
+100.
Poverty is not being able to have a second car in the 'civilised' world,
while destitution is the norm for most of mankind.
Soon to be more.
No Winston, poverty in Europe is the need for all cars on deck to chase scarce money.
People with savings do not need cars.
I don't,t mean to insult seer but most probably the reason why he has a Asian wife is because he cannot afford a domestic one.
Yes guys need to understand that the cause of current lack of purchasing power is the sheer scale of bank scarcity engines.
A look at the most extreme banking colonies of Europe will make this very clear but this is happening in all western countries and is a result of the extraction of local purchasing power by now global rather then previously national banking monopolies.
Net migration into Spain was 2.25 million in 2010
A look at the most extreme banking colonies of Europe will make this very clear but this is happening in all western countries and is a result of the extraction of local purchasing power by now global rather then previously national banking monopolies.
Net migration into Spain was 2.25 million in 2010
This as the population was about to roll over into decline , these strange demographic figures have never happened in recorded world history and it is my guess that these dynamics are much like the Saxon and angle invasion of the Britons after the fall of rome.
"hardworking people do not expect or deserve to be thrust into poverty."
And nobody expects the Spanish Inquisition, but that's kind of like exactly what I got. Hence, my Buddy Fucked handle.
1. Inflation hasn't been that bad. When velocity of money picks up - if ever - then you'll have an inflation tsunami, but until that uncertain day, there's little risk for that, sadly. We're spreading our problems to the rest of the world through the dollar.
2. We all know that helicopter money has to arrive to the bottom 90% to actually have any effect on the economy. And that's what's coming: even with Republicans running the place, the US will inevitably become more Europe-like (while the EU will become a bit more American). Globalization is forcing anyone to converge. High-fliying fat cats know that Marx might have been right, so now "we have to get closer to socialism to avoid socialism".
Or all of those FRNs held by foreign hands could come flooding back. That would seriously fuck our shit up.
It wouldn't be hard to mop up the liquidity. The hard part would be to ship real goods out if that's what the FRNs came back in exchange for.
You are correct, SBP. However, I think we have the unusual convergence of two very powerful forces. We have the pro-inflationary forces of government stimulus money versus government ability to wreck economies. So, the addition of money to a situtation of falling incomes where monetary policy cannot stimulate demand are currently cancelling out.
If velocity picks up then all bets are off.
Listen Zero's.
When the Revolutions start are any of you American dooods going to goPro it with your ultracool drones then Youtube us all so we can hat tip ya on The Hedge?
Why don't you come over and hold the camera for us?
Yes, especially when it comes your way, there will be a GoPro video of the camera being stuffed up your ass
Monetizing the debt only causes more debt. This slows growth and causes defaults not growth as Government debt must be repaid via new borrowing.
You can devalue as Japan is doing but that makes that debt absolutely huge and at some point unserviceable. The irony that commodity prices are collapsing (including gold) has to be taken seriously. That says to me the ability to repay is being called into question as simply "printing steel" is no longer sufficient.
Who's in charge of pricing you ask? The answer is no one.
These Ignoramoses want the last pound of fleash--and that will be their downfall. Greed, just like speed, kills. Milestones
Speed does not kill. Abrupt and violent stopping kills. Same for printing.
Iterpet it how you will: Second law of therodynamics: Double the weight of an object will double its impact; double the velocity of an object you quadriple the impact.
Conclusion: don't get in the way of fist traveling twice as as fast as yours does unless you are more than twice the size of your opponent. Milestones
I boxed as an amature
Regarding revolutions: historically, the ones who go on riot are the ones who have nothing to lose. Until even the poorest Americans have something to lose, they won't start any revolution.
Actually sbp that is an incorrect statement, when people are backed into a corner, they figure they have nothing to lose
We were placed in just such a position when the British occupied us, and we said, listen up fuck tards, we gonna fuck yo shit up mutherfucker..
Is very instructive to read biographies of revolutinary ficures, McCulloch does a greatjob, see John Adams, etc.
Do you really think there wouldn't be a revolt/insurrection within minutes after it is announced that all SNAP benefits have been canceled....all EBT cards are now voided.......Ophones have been disconnected.......the Internet has been closed?
Tens of millions of scared, hungry, cold, homeless, and ignorant imbeciles will be a formidible force.
We don't have to wait for the FED to collapse the dollar to the point where a loaf of bread costs $100, if there is any available at all,...... all it will take is one EMP attack from our peace-loving Iranian mullahs, or ISIS, or North Korea, or Pakiston,..or China, or Russia, or.....
Starve The Beast!!
Could?
It already has. What the fuck do you think has been kicking off revolution in the middle east?
March 10th 2008 @ 11:00am Bear Stearns time marks the official end
of the American empire because the central banksters let the investment houses decide their fate in the long run. No improvements have been evidenced in the global economy because the central banks took the opposite tack to moral hazard and bailed out corporations that should have been allowed to swiftly move into chaper 11 bankruptcy just like Lehman Bros. did exactly six months later. The wave of bankruptcies that should have manifested back in 2008 are now going to manifest whether the oligarchs like it or not. Moreover, when the $1.4 Quadrillion derivatives universe implodes due to a downturned economy immersed in a full blown depression, there will be no way out for the classless kleptocrats or the poverty striken masses. Chaos will eventually ensue and the entire world will become unsafe for all including the 1%. Without the masses, the classless kleptocrats cease to function entirely and their assets will be divided amongst the survivors.
NOTE: Mathematics do not lie like politicians and writers do.
Hey they got to live the REALLY good life for an extra 7 years....So they got THAT going for them.
Let's get this party started.
Not just banks but entities like GM should have gone under. Ford then buys the factories for 20 cents on the dollar and prospers. Costs are restructered, supply aligns with demand and the better products win.
All, that gets aborted by government intervention.
Seriously? You think the American sheeple drugged on food stamps, meth and television are going to revolt? They could march these assholes off to the gas chambers and none of them would raise a peep. Is there a more worthless people on the planet? They deserve the gas chambers. Fuck the USSA.
You lead an insular life. You need to get out more....out of the city.....out of the office....meet real people.
Starve The Beast!
Where? Out into the boondocks where I live? Most of the white trash are hooked on meth, don't work for a living and survive on food stamps and welfare. That is most of the population where I live in the rural midwest. You could fucking kill all these people and not miss one of them. This is what AmeriKKKa is reduced to - a fucking spineless bunch of losers who care about nothing other than security and having enough drugs.
I live in the shadows of the BoA building in the Queen City with a clear view to the north & westerly exposed windows. Not sure which Banksters hold those, but I'm sure my .338 will do just fine when the time comes. Sad state of affairs that something so simple (banking) has gotten so out of hand with the greed & corruption.
i wouldn't say such things if i were you !!
His comments just made him a target of SWAT by criterion they use for
response calls when police are called into any sort of problem where there may be a gun owner. Clearly, social media is obviously an area that all police departments need to monitor IMHO. Such a bold comment
that indicates intent is not very wise at all which leads me to think it may be a fishing attempt by law enforcement on Z/H. Who in their right mind would make such a comment is beyond moi.
bring it on!
In Europe a national government could direct a national central bank to print Euros
Just give me a week to get my kids in Asia....I hiding quite well out here. Building an escape hatch for my family.
Living on an out Island has it's hardsips but fresh fish,rum and willing women make it paradise.........
The simple life is always better...
Just in the same way the Fed is chasing the "wealth effect" by pumping stock markets to make "feel" rich and thus let down their inhibitions and be good consumers to drive the economy, there is a equally powerful effect on debt, poverty and political disenfranchisement.
It only has to be scientific for the handful of 'let'em eat cake' privileged elites than run the Fed, and the country into the ground.
If you are taught that you NEED a FICO, and you NEED a credit card to establish credit and that debt IS money and that you NEED a car loan, student loans a mortgage and otherwise live above your means and pay a percentage of your monthly income to pay interest to banks and other sharks and devils and then you lose your income, job/career prospects have your savings eroded by inflation and any passive income destroyed by interest rate theft you are not going to just be sad you are going to stop paying your bills, stop reaching out to take little risks, pull in your prospects to avoid more uncertainty and in time small things like not paying your car insurance or registration lead to a impounding, expensive taxes leveled by the police, a general resentment for "the system" which escalates in time.
You kick the little guy long enough and they roll over, yet they roll over to stop paying taxes, obeying laws and in time seek out the very assholes that put their families in limbo.
The debt effect. Just as powerful as the wealth Effect.
The race is still on under Basel III. It will be curious to see how Japan's Helicopter Cards work and if/when the other developed nations ponder the same fate.
Overall though things are unlikely to change. The best recent example is UC recent approval to raise tuition 5% year for the next 5 years - in addition to higher other fees. They are not doing this for "the students." They are doing it exclusively to shore up baby boomer underfunded retirement.
The baby boomers will leave the system kicking and screaming to get theirs at all cots. Pension funds across all government divisions are the most important item to fund; not services, not efficiency, not discounts, only more taxes, higher fees onto the huddled masses. That is the canary in the US coalmine.
"One cannot separate violence from the state conceived as an apparatus of class domination: from the standpoint of the oppressed, the very existence of a state is a violent fact (in the same sense in which Robespierre claimed there was no need to prove that the king had committed any crime, since the very existence of the king was a crime in itself, an offense against the freedom of the people). In this sense, every act of violence against the state on the part of the oppressed is ultimately “defensive.” Not to concede this point is, nolens volens, the “normalize” the state and accept that its own acts of violence are merely contingent excesses to be dealt with through democratic reforms. This is why the standard liberal motto - that violence is never legitimate, even though it may sometimes be necessary to resort to it - is insufficient. From a radical emancipatory perspective, this formula should be reversed: for the oppressed, violence is always legitimate (since their very status is the result of the violence they are exposed to), but never necessary (it will always be a matter of strategy whether or not to use violence against the enemy)."
— Slavoj Zizek, The Jacobin Spirit
Finally an author who admits the obvious, that it's not concern about the economy it's the banks and stock market. However, revolt is unlikely. How far have the Greeks gotten challenging the empire even though their economy is a lot worse than that of the USA?
The Greeks are not armed like Americans.
Americans are fucking pussies. Yeah they have a lot of guns but they are afraid to use them. We ought to see bankers and government officals being gunned down every day but how often does it happen? Never.
BernankeHasHemo - Have you studied history? Rome and America are very similar. A couple dozen rebels would kill a district leader. In response, 10,000 people would be crucified. Certainly, the supporters of those rebels couldn't have been in the hundreds. That means 9,000 innocents+ died and the empire rolled on.
Paul converted to Christianity which basically says "check out" when faced by empire. This worked for the Russians and others historically. Paul had Ceasar himself curious and invited Paul to the palace. I am certain Paul saved lives by influencing Ceasar. Later in Rome Constantine converted to Christianity. While there likely political motivations of Ceasar and Constantine such as unnatainable methods of tax collection, one methods works and the other invites wholesale slaughter of the population which the mindless masses will either ignore or advocate for in the name of 'security'.
Now as an individual I have spoken of an alternative which is to sell rich folk and leaders services which allow you to influence them and redistribute the wealth to yourself in the process. This isn't as easy as checking out but possible with enough research into history, cycles and sales tactics.
In any event if your going to cause pain with violence to awaken rulers you damn well had best consider who really runs this world and be prepared to die along with them. The methods I suggested take longer but are better. For when growth fails as it must even for the market manipulators and governments, this causes them pain and redirection of efforts. Pain indeed may be the main evolutionary catalyst but there are roads that are more beneficial in the long run.
Situarions vary. When Hungarians withdrew agricultural production, Stalin starved millions in a country that only had twenty million at the time. In that kind of circumstance, violence may be the last resort but again, I would choose my target wisely. As I told you earlier I certainly would not be broadcasting my intentions publically if I had such plans (I don't).
Great stuff Luke. Precisely on target. There is 1 and only 1 semi stable path out of this mess. Liquidate float scams and buy gold.
There are some people that should not be messed with. Its just not a good idea.
The hard working stand up folks. The ones with real integrity. The ones that dont lie every time they open thier mouths.
Note to all central bankers and thier scum sucking friends. You aint that smart. This thing you been planing is not gonna work out for you.
Remember that line. The ends justify the means? Yeppers two can play that game. Every honest person has given it plenty of thought. We tried reason with you with the TP. We tried pleading at OWS. You tricked and cheated us at every turn. Spying,blackmailing,thieving,rigging elections even murder. We did not make the rules to this game.
Keep laughing. Enjoy it while you can. All those good qualities we have that you have been taking advantage of? Ya pal those are not weaknesses they are a power you should not have messed with. The day we decide to put our petty differences aside you will all pay a terrible price.
Picking off our honest leaders by any means. Thats been very effective. Yea we know. The thing is we dont need to be lead because we always knew what was right. We dont need to be told what to do. We know. Karl knows this. We dont need or want to force it.
Good things happen because they should.
"While monetizing is all great news for the banks and stock-markets it is terrible news for any people that do not receive well over average earnings – this is because monetizing debt (printing money) causes inflation."
Inflation causes deflation. Kondratieff Winter is the deflationary season of the Kondratieff cycle.
Central banks have been printing with abandon. I have been reading that the global debt bubble has increased from 70 trillion to over 100 trillion, since 2008. Now i read that the global debt bubble is 156 trillion.
Debt has to be created to create money. The FED can't monetize its way out of debt.
It seems some people on this site think revolution would be a good idea. They might consider some sobering facts. If there is a serious onset of rioting and mayhem the police will retreat to government buildings to protect the status quo or go home to protect their families leaving everyone unprotected. One may think that it is easy to protect ones self in such a situation but 24 vigilance and the firepower to stave off armed looters is hard to come by. The resultant form of order is not at all guarantted to be better than the current situation and will probably be less fair more oppressive and more amenable to entrenched economic interests (ie banks and corporations). Maybe we should try electing some honest non communist populists to office first.
Thats not how the game is played. Wake up!
Too late for that. A few honest populists would be immediately swallowed up. If their price can't be met (and everyone has a price; most can be had cheaply), they will have an accident (see Paul Wellstone).
It's not a matter of wanting one or thinking that one would be a good idea. It is a bad idea, in fact. It's not just about rioters and looters either. That shit would settle down in a hurry, because in a WORL situation, their asses would get shot. Think about the JIT food distribution system and oil imports, and how important oil is to that JIT food distribution system. You really think that the petrodollar system would survive under a full blown revolution? The problem is that, as the federal government becomes more bloated and intrusive, it becomes more unsustainable while trying to still get bigger. That makes it dangerous. Washington DC is going to become a lot less relevant to a lot of us, and it doesn't like that one bit. TBTFs are going to become a lot less relevant too. Globalization is an experiment that is going to end, and those running things right now will do what they can to keep on running things. At some point, they could very well become more dangerous than a revolution. At that point, we have a choice between a bad idea and a worse idea. To put it another way, a revolution may become necessary, but it will never be desirable.
I'd rather just have a straight up and sudden last hurrah! in this economic collapse that we are experiencing, but only time will tell. One could lead to the other.
You think I need a cop to protect me? I got enough firearms to arm both sides of an African civil war and I am not afraid to use them.
"private ownership means private interests, therefore the needs of the country and the populace are of no concern at all."
We all have private interests.
Balancing the budget and paying down the debt is a need of the country, yet cut one dime of spending and the populace will be squeeling the moment that cut negatively affects them.
I keep hearing the comment, "why would you vote against your own self interest?" So just who is it that thinks about the needs of the country?
It is mathematically impossible to pay the debt under a fiat debtmoney system. There is never enough money created to pay the debt and the usury.......Think about it.
Those Babylonian bastards that created the system have always known that. They are evil Chosenites and fully intend to impoverish all the goyim.
If you don't believe that you are part of the problem.
Starve The Beast
Don't answer that we all know the answer - snouts in the trough!
In the case of USA and UK paying off the debt is impossible, it will have to be written off. Even so the FED masquerades as a public body, as if it acts on behalf of the USA, we all know that the reverse is true. Private companies have no loyalty to the public or the needs of any country - that's no surprise, so why were they ever involved in public/gov finance?
In the case of USA and UK paying off the debt is impossible, it will have to be written off. Even so the FED masquerades as a public body, as if it acts on behalf of the USA, we all know that the reverse is true. Private companies have no loyalty to the public or the needs of any country - that's no surprise, so why were they ever involved in public/gov finance?
Monetizing debt doesn't have to end in revolution. The military could easily follow the path of least resistence, the path that leads to vast resources of wealth, by arresting Loyd Blankfein, Jamie Dimon, the FED and their treasonous politicians in Washington D.C. Then the defense contractors could bring up an open source software democracy that is based in the constitution and convert the wealth of the imprisoned oligarchs into a publically owned crypto-currency based economy. The US has more resources than it needs to get along quite fine. It all depends on if the military wants to serve pedophile bankers and destroy their own families and relatives, or fight for the United States of America.
We need a military takeover. They should execute Congress, the executive branch and the supreme court for treason. This would be a national day of liberation.
Yahbut the bottom third are living on government largesse already which can be scaled up with inflation. The top third are doing OK-ish. It's the middle third that are getting thrashed. And maybe half of them are already government employees and so protected that way.
So it's really just the 15% still working in private industry, in "middle-class" jobs, that are being destroyed. Is that enough to fuel a revolution? Nah. They're all conditioned to think it's their own fault. And they can always fall into the bottom third and get by on welfare and disability - or government jobs!
One of the ironies of the government/law/bank system is that the only way the government defines treason is as an act against the government. Terrorism is similarly interpreted by our legal system as an act against the government.
For all of the claims that politicians make about being servants of the people, the greatest balance of evidence suggest that while they claim to be servants of the people, they are nothing of the sort. They serve themselves and those who give them money. Even the police have no obligation to serve and protect the people. They serve the government and protect property.
In today's environment there can be no treason and terrorism against the people because the people are not part of the government. So when police steal from the people through civil forfeiture, when they shoot the family dog, when servants of the government, such as Corzine steal from people, when corporations move jobs overseas, when banks steal from the treasury, when the government forces people to give up their lives in war, these things that would be considered harmful to the people and the country, possibly treason or terrorism but turn our not to be crimes at all in the eyes of the government.
One the government and those who give money to the government matter to the government. The people who the government governs do not matter to the government.
If we are going to so desperately cling to Capitalism as if we can do no better, two things need to happen. We have to shrink government and we need to have a glass ceiling over the size of corporations. In other words, stop allowing monopolies and oligopolies, perhaps even corporations at all. A true free market would never suffer them anyway. If we did that, things would cost less and it would also help the environment because planned obsolescence would soon be a thing of the past. When companies actually compete for the consumer dollar, they cater to the customer. What we have now is pure fascism where we are forced to purchase products whether we like it or not. So why should corporations improve when they do not have to compete?
The only thing we have to do to bring this thing down is stop paying. Stop paying taxes, debts, everything. Then we find out if our military serves us or fascism, they can not jail us all.
“Those who make peaceful revolution impossible, will make violent revolution inevitable.”
You do not understand capitalism and you empower the exact thing that causes the current situation, namely a power central government.
Think of capitalism as voluntary exchange where force and favoritism do not exist.
Then the revolutions become economic and not civil.
Defunding the government will not centralize it, it will take it down. Yes, they will try to use force, but how long will people that are not getting paid fight against their own families?
"The only thing we have to do to bring this thing down is stop paying. Stop paying taxes, debts, everything."
Now theres a wonderful fucking plan only a few problems .. you can't stop paying unless you are willing to stop everything that means convincing every swinging dick and flapping twat in the country to do nothing but sit in thier houses.... and big bro will just wait it out let the rubes starve themselves ... you money loving tards only see all of this thru a one way tunnel ( no offense really I see where you are comming from I really do) You have been conditioned just like everyone else that "wealth equates to happiness" Money and the love of money is a control point just like religion and its big cousin statism. The whole deal is about CONTROL. Those assholes we all love to hate ya know those .001% ers they want the whole ball of wax (or shit as it now has become) nothing more and definately nothing less. Think of the financial world as a less violent form of suppression...cause if and when it falls (by thier choosing that is) they will just roll out with a "heavier hand" and crush us even further into slavery... alas this "the love of money is the root of all evil" never have more potent words been spoken unless ofcourse you substitute the word "control" for "evil" . then it all makes complete sense hmmmmm
------------> Forward into the fucking void
Money loving? If it was up to me, I would have a resource based economy. But I am not sure how to do that w/o resorting to centralization. There has to be a way to do that.
"you can't stop paying unless you are willing to stop everything"
We can break up into small communities that support themselves or defer to state government where we can more easily have a voice. We do not need big government. To protect ourselves we simply form trained state militias that can fight together if we are threatened.
"If it was up to me, I would have a resource based economy. But I am not sure how to do that w/o resorting to centralization. There has to be a way to do that."
Kind of a long read, but here's an example of how a resource based economy once served the people well for no one knows how many thousands of years ... but was then debauched by some greedy bastards, just like always.
http://www.hartford-hwp.com/archives/41/037.html
Ridding the world of greedy bastards won't be as easy as setting up a resource based economy would be. You can't have both.
Interesting read, thanks.
There can be no central bank and no private bank can be allowed to issue fiat.
+1
Revolution... yes, it's called a governmental bankruptcy of the people... at least, that's what history calls it. electanewcongress.com
you lost me with " could " in the title.
Japan is entering uncharted territory and that is not necessarily a good thing. For months the major world currencies have traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently several currencies have made multi-year highs or lows depending on the match-up .
John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable.
The moment the Japaneses stock market fails to rise enough to offset inflation and realizes even a weaker yen will not help we will see a tsunami of money fleeing Japan. This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/10/fed-concerned-that-stong-dollar.h...
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered ... I believe that banking institutions are more dangerous to our liberties than standing armies ... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. -Thomas Jefferson
The brightest kids in the class have already packed up and moved to Belize, Panama or some similar distant but Yankee-friendly country - with their gold and silver bullion. Those folks will be the last ones standing. And they will no doubt be laughing and slapping each other on the back for having the foresight to get the fuck out before it was too late.
Girly men who flee the republic don't slap each other on the back. They hug and kiss.
So you're a real man? What are YOU doing except talking big on the internet? I took some action and left this bankrupt country.
Progressive policy always ends up with the death of millions.
Big Government=Big Death
Look it up
http://www.hawaii.edu/powerkills/MURDER.HTM
Grimaldus
“private ownership means private interests, therefore the needs of the country and the populace are of no concern at all.”
You’re missing a very fundamental fact: bureaucratic institutions (some people call them governments) are ALWAYS dominated by private interests (whether known as merchants, nobility, money lenders, priests – all allied with useful-idiot class); and they are ALWAYS employed by those private interests to perpetrate genocides and general plunders; and to destroy as many victims and witnesses as possible; and, thus, to avoid accountability for the evil they do. These are monotonous verdicts of history documented for at least 5,000 years.
To abolish governments is to strip away the mask concealing real perpetrators of evil; and they would then be held accountable by natural/common-law procedures.
But don’t hold your breath; for, Americans have the power to make them accountable, and refuse to use that power.
There are three main reasons for this failure: one is that Americans 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 (it also un-does the damage done by medication and indoctrination); 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).
This is the goal! Just ask Peter Drier, who was one of Obama's campaign advisers. He stated at the Socialist Scholars Conferences that their real goal is "fiscal collapse" (his term, not mind) so that they can bring a Bolshevik Revolution to the shores of America.
Calamity is certainty! Plan and prepare accordingly!
Burn, baby, burn.
All revolutions have been bankers revolutions and not the splendid idea of freedom it was that have put them in place, more the freedom to rob the most. More what you can pick up with some horsemen diligent to handle a sword.
The idea to plunder had been revolutionized.
Is there more to achieve by a new system is the question if underlying this moto to our history in searching for what could be the next one.
The systems to castigate the system in place by rifle, bible and a right lawyer don't look very promising.