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"Government Is Waging A Perpetual War Against Human Nature... They Can Never Win"

Tyler Durden's picture




 

Submitted by Martin Armstrong via Armstrong Economics blog,

The one war that never ends is how people constantly try to fight the trend. The ECB will buy bad government debt they created instead of doing what was necessary from the start – consolidate all state debt. That would have enabled the Euro to be a viable currency creating a reserve base that does not exist today. Instead, leaving each country with its own debt that was then reserve quality for the banking system was the greatest mistake in history. European banks are really in trouble. They do not mark-to-market sovereign debt. Government PRESUMES they are always the best.

Europe is a failure for they just will not reform Euroland. Instead, this is like a Chinese Water torture or an NSA Waterboarding vacation – a slow gradual and painful process. This Euro Crisis cannot be resolved in such a manner. Buying in sovereign debt is DEFLATIONARY for it is effectively retiring the debt that is worthless. It is bailing out banks, not inflating the economy, since the banks will not lend that money out again. The banks will crumble to dust for their reserves are worthless. This is a very interesting problem that nobody wants to discuss publicly for it is the biggest political manipulation in history gone really, really bad.

Burns Arthur

Government has NEVER accepted the economy or free markets. They assume they have the ability and the right to manipulate society. They have failed each and every time. They cannot just recognize the natural order of things driven by human nature (character). They constantly work against the business cycle and attempt to change what cannot be changed. Therein, they are engaging in a perpetual war they can never win.

ProstituteToken

 

AUG-DEMS

The Romans tried to outlaw prostitution by saying you could not pay them with a coin that bore the image of the emperor when all coins displayed the image of the emperor. Solution, they created private coinage. You cannot outlaw human nature. It never works. There will always be prostitutes as there will always be people who drink or do drugs. All you can do is regulate the trade for you will never eradicate human nature no matter what the subject might be. Government cannot win against the business cycle. All they ever do is aggravate the cycle and increase the velocity resulting in panics.

 

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Thu, 01/22/2015 - 17:36 | 5693808 NaiLib
NaiLib's picture

"Government has NEVER accepted the economy or free markets. They assume they have the ability and the right to manipulate society. They have failed each and every time. They cannot just recognize the natural order of things driven by human nature (character). They constantly work against the business cycle and attempt to change what cannot be changed. Therein, they are engaging in a perpetual war they can never win."

 

And: All they do in order to manipulate will, by default, worsen any outcome.

Thu, 01/22/2015 - 17:51 | 5693858 Goatboy
Goatboy's picture

"Human nature" exists as much as water has shape.

It is shaped by environment. Only difference being that it strives for bare biological survival. Everything else is learned and shaped by outside circumstances.

Thu, 01/22/2015 - 18:05 | 5693912 Dick Buttkiss
Dick Buttkiss's picture

Yeah, like you could have communicated that to . . . a goat.

Baaaaad post.

Thu, 01/22/2015 - 18:14 | 5693942 Anusocracy
Anusocracy's picture

Government can't work because it systematically undermines all actions that do work.

Thu, 01/22/2015 - 18:21 | 5693972 freewolf7
freewolf7's picture

Unfortunately, they are "winning", because there has been no consequence (for them), which reinforces the delusion that the can do this.
They think they can do this, because they have been able to so far.
We can become addicted to many things, including beliefs.

Fri, 01/23/2015 - 00:48 | 5695291 Anusocracy
Anusocracy's picture

By and large, technological progress has masked the supreme failure of government.

Thu, 01/22/2015 - 19:21 | 5694217 HardAssets
HardAssets's picture

Saying government doesn't work is like saying the Mafia doesn't work.

(At least the Mafia doesn't try to lie about what they're up to.)

Fri, 01/23/2015 - 00:48 | 5695295 Anusocracy
Anusocracy's picture

In the context of being a net positive force.

Thu, 01/22/2015 - 18:17 | 5693916 ZerOhead
ZerOhead's picture

< Prostitute Tokens (Bitchcoin)

< Bitcoin

Which currency is most likely to retain it's value...

Thu, 01/22/2015 - 18:46 | 5694085 Henry Chinaski
Henry Chinaski's picture

"Human nature" exists as much as water has shape."

Human nature behaves just like water: Seeks its own level. Cannot be compressed.

Thu, 01/22/2015 - 22:21 | 5694848 acetinker
acetinker's picture

I am willing to entertain your train of thought, at least for a moment, Goatboy.  Even here, I am in the minority.

We goats are instrumental in sheep control.  It's an awesome, but thankless task.  We have to be ever vigilant, but never over-reactive.

We know that the owners of the plantation care little for us and even less for the sheep- We also know that if the sheep stampede, they will destroy much that has been made over generations.

Better to try and calm the stupid fuckers than risk destruction, just now.  It's not that we're indifferent, even though we are.  It's that we  recognize that the sheep is his own worst enemy.  He must be protected from himself.

If this sounds familiar, it should.  It reads like an excerpt from The Protocols of Zion, I know.

Thing is: It's coming from the exact opposite direction.

This is something a Goatboy should understand.

Thu, 01/22/2015 - 17:54 | 5693876 TideFighter
TideFighter's picture

Ho Coin-Sure paves the way to mint an Obama coin, with him on his knees serving Reggie Love. It could be a two-cent coin, made from coal. 

Thu, 01/22/2015 - 17:58 | 5693893 Romney Wordsworth
Romney Wordsworth's picture

A 3 dollar bill is the more likely scenario

Thu, 01/22/2015 - 18:34 | 5694035 PirateOfBaltimore
PirateOfBaltimore's picture

Can it have some symbol of our 54 states on it?

Thu, 01/22/2015 - 18:08 | 5693923 astroloungers
astroloungers's picture

That coin is cool! The article was the sos that eveyone knows.......but that nookie nickel takes the pie.

Thu, 01/22/2015 - 19:27 | 5694233 HardAssets
HardAssets's picture

The Doin' Doggie Dime was the best part of the article

Thu, 01/22/2015 - 17:54 | 5693878 Groundhog Day
Groundhog Day's picture

the larger they blow the bubble the more they can take it's by design

Thu, 01/22/2015 - 17:53 | 5693879 Groundhog Day
Groundhog Day's picture

the larger they blow the bubble the more they can take it's by design

Thu, 01/22/2015 - 17:53 | 5693880 Groundhog Day
Groundhog Day's picture

the larger they blow the bubble the more they can take it's by design

Thu, 01/22/2015 - 18:00 | 5693899 Romney Wordsworth
Romney Wordsworth's picture

It's abundantly clear why you chose Groundhog Day as your username.

Thu, 01/22/2015 - 17:37 | 5693809 NaiLib
NaiLib's picture

"Government has NEVER accepted the economy or free markets. They assume they have the ability and the right to manipulate society. They have failed each and every time. They cannot just recognize the natural order of things driven by human nature (character). They constantly work against the business cycle and attempt to change what cannot be changed. Therein, they are engaging in a perpetual war they can never win."

 

And: All they do in order to manipulate will, by default, worsen any outcome.

Thu, 01/22/2015 - 19:44 | 5694308 amadeus39
amadeus39's picture

Who or what is the government? I thought we are the government or is it the world?

Thu, 01/22/2015 - 17:37 | 5693811 _ConanTheLibert...
_ConanTheLibertarian_'s picture

We are at peak government!

Thu, 01/22/2015 - 17:47 | 5693855 El Vaquero
El Vaquero's picture

It seems to be so, or at least we are approaching peak government.  I know that when this shitshow finally ends, all of those government workers are going to be lacking pensions and paychecks and DC will become a lot less relevant. 

Thu, 01/22/2015 - 18:04 | 5693913 Uchtdorf
Uchtdorf's picture

Here on ZH we are at peak duplicate posts.

Thu, 01/22/2015 - 23:01 | 5694971 TheRedScourge
TheRedScourge's picture

History tells us otherwise. See also Germany, 1920s.

Thu, 01/22/2015 - 17:46 | 5693856 Arrowflinger
Arrowflinger's picture

With politicians from the bottom of the barrel.

Thu, 01/22/2015 - 17:58 | 5693870 Zoomorph
Zoomorph's picture

I highly doubt that. Our current trend (over the past few milleniums) is the opposite: increasing concentration and centralization of power. And if we were to reverse that trend, we might also have to give up the technological and industrial innovativeness that's come along with it.

Maybe this government will fall, but another more powerful one should be along shortly after. :-)

Thu, 01/22/2015 - 18:09 | 5693925 tip e. canoe
tip e. canoe's picture

"And if we were to reverse that trend, we might also have to give up the technological and industrial innovativeness that's come along with it."

how so?

Thu, 01/22/2015 - 19:48 | 5694323 amadeus39
amadeus39's picture

Governments and wealthy patrons have frequently sponsored innovation. Take the A and H bombs for example

 

Fri, 01/23/2015 - 00:40 | 5694844 Zoomorph
Zoomorph's picture

Because advanced technologies serve to concentrate power and advancement of technology continually raises the amount of organization and structure required to hold everything together. Our world has become so complex that individuals can now only specialize as certain cogs in greater bodies or processes (or sit out on the sidelines). Expressed in other words, the level and concentration of power in the world has grown to such a degree that individuals are relatively impotent.

Eliminating the government is not a quick-and-easy solution. As long as we have cars, houses, computers, and other technology, industry, and a functioning society, we require some form of control forced upon us, even if it's not called "government". If we eliminate the concentrations of power, things will rapidly degenerate until structure finds its form. If we want to shrink the concentration of power, we have to simplify the world.

The best ideal for you guys might be to go back to the stone age. There was no oppressive government back then, no propaganda, no military or police. All you needed was a big stick with a rock on the end to defend yourself and your sphere of influence. The difficulty is in getting back there. You'd pretty much have to take control over the modern world yourself, first, and then systematically dismantle everything while maintaining enough order along the way that you nobody else is able to thwart your plan. Not an easy task, especially since once you get in power you'll most likely start to appreciate/enjoy it in a new way and change your mind about what you originally set out to do.

The other options for you are to sit on the sidelines and not participate in the modern world at all (go live in the bush, for example), or to take some degree of power for yourselves that you can be happy with. If the only thing you can be happy with is making the rules yourself, then you need to take enough power to do so (ie. take over the government yourself). Unfortunately, not everyone can be happy. Most of you guys are probably doomed to whine and complain about the government for the rest of your miserable lives.

Fri, 01/23/2015 - 01:08 | 5695327 tip e. canoe
tip e. canoe's picture

appreciate the sincerely detailed response, despite the multiple judgmental assumptions contained therein.   i prefer to comment only on your first phrase,

Because advanced technologies serve to concentrate power

really?   the printing press concentrated power?  the automobile?   the PC?   the internet?

seems like from a historical POV, for every technological breakthrough that consolidates power, there is an counterbalance that distributes it wider.

Fri, 01/23/2015 - 12:12 | 5696861 amadeus39
amadeus39's picture

Might want to re-think that. Perhaps the internet actually disperses power among those who use it. Kinda like divide and conquer strategy. Like ZH posts, so many opinions, so little power.

 

Thu, 01/22/2015 - 17:36 | 5693812 LawsofPhysics
LawsofPhysics's picture

So, more easy money for the bankers and financiers while all the unemployed engineers and craftsmen build guillotines...

I need to get some more popcorn...

Thu, 01/22/2015 - 17:43 | 5693832 El Vaquero
El Vaquero's picture

Don't you think we ought to have a plan b, LoP?  What if we have a guillotine shortage?  Shoudln't we be learning how to twist fibers into rope and make soap for lubrication?

Thu, 01/22/2015 - 18:07 | 5693917 Implied Violins
Implied Violins's picture

I'd rather make coins with very sharp edges. Stamp 'em with dripping heads of politicians.

Thu, 01/22/2015 - 18:28 | 5693934 ZerOhead
ZerOhead's picture

Never corner a vicious wild animal that has no way to escape. The same is true of financial elite bearing nuclear weapons.

Forget retribution... personally I just want them leave.

 

Thu, 01/22/2015 - 18:35 | 5694033 El Vaquero
El Vaquero's picture

If you have something that they can skim off of or steal, they will not leave. 

Thu, 01/22/2015 - 17:43 | 5693836 Yen Cross
Yen Cross's picture

I need some Rolaids®

Thu, 01/22/2015 - 18:14 | 5693941 ZerOhead
ZerOhead's picture

I'm stealing that ®...

Thu, 01/22/2015 - 17:38 | 5693820 Impoverished Ps...
Impoverished Psychologist's picture

Prostitute token - ancient bitcoin??

Thu, 01/22/2015 - 17:50 | 5693864 eyesofpelosi
eyesofpelosi's picture

Whore stamps?

Thu, 01/22/2015 - 17:59 | 5693896 BKbroiler
BKbroiler's picture

now there's an idea I can get behind.

Thu, 01/22/2015 - 18:02 | 5693904 Yen Cross
Yen Cross's picture

 BTC is wielding a whopping 232.60 $usd.  I have to admit, I'm impressed considering the recent $usd inflation.

Thu, 01/22/2015 - 18:09 | 5693924 Implied Violins
Implied Violins's picture

If they were silver, they might even have some anti-microbial properties!

Thu, 01/22/2015 - 18:22 | 5693975 astroloungers
astroloungers's picture

insert in slot

Thu, 01/22/2015 - 19:02 | 5694144 Urban Roman
Urban Roman's picture

Buttcoin.

Thu, 01/22/2015 - 17:38 | 5693821 falak pema
falak pema's picture

Empires must die in their own dust. A dust made of past glory, just look at the coliseum.

Thu, 01/22/2015 - 17:42 | 5693831 Zoomorph
Zoomorph's picture

Dear Martin,

What exactly is "human nature"? Is it something in our genetic code? Is it something exclusive to humans? After you define it, please prove that it cannot be outlawed, overcome, or eliminated. Until you've done this, you're merely ranting about a phantom concept for lack of a better understanding of what you're talking about.

Thu, 01/22/2015 - 17:53 | 5693872 MonetaryApostate
MonetaryApostate's picture

To trust blindly?  (And therefore ignorantly)

Thu, 01/22/2015 - 17:42 | 5693834 Chad_the_short_...
Chad_the_short_seller's picture

Sure looks like they're doing a pretty good job to me!! Anytime I try to talk to someone about what's really going on, they think I'm crazy. The TV, college, music and their parents and their iphone apps.

Thu, 01/22/2015 - 17:46 | 5693846 El Vaquero
El Vaquero's picture

They are going to think you are crazy right up until shit really starts breaking.  Then, they'll panic.  If you're in a position to calm them and get them to start looking out for themselves, great.  If not, fuck them, they had their chance.

Thu, 01/22/2015 - 18:15 | 5693952 Implied Violins
Implied Violins's picture

Yup. Everyone I tell about all that is coming down soon doesn't believe me either. Still, I keep hinting and will be there if they want the info. I have told them that I keep saying this stuff for a simple reason: when the SHTF, you better not be coming to me for handouts. Still doesn't garner a response, but I did my job. They've been warned...

Thu, 01/22/2015 - 17:43 | 5693835 blindman
blindman's picture

that is the point, never win but perpetuate
so the capacity to raid your own treasury never
dries up; i think you have got it.

Thu, 01/22/2015 - 17:45 | 5693844 kurzdump
kurzdump's picture

A hierarchical power structure based on a monetary system IS perpetual war. It does not matter if there is a government or not.

Thu, 01/22/2015 - 17:46 | 5693857 eyesofpelosi
eyesofpelosi's picture

Ho coins...I like that.

Thu, 01/22/2015 - 17:47 | 5693862 FrankieGoesToHo...
FrankieGoesToHollywood's picture

was the greatest mistake in history

 

I doubt that.

Thu, 01/22/2015 - 17:48 | 5693863 MonetaryApostate
MonetaryApostate's picture

I'm new to investing, was worndering if anyone can give me a tip as to where is the best place to open a trading account & where to find the best live charts?

Thu, 01/22/2015 - 17:54 | 5693884 FrankieGoesToHo...
FrankieGoesToHollywood's picture

The Mirage has a great comps program.

Thu, 01/22/2015 - 17:50 | 5693867 wendigo
wendigo's picture

"Instead, leaving each country with its own debt that was then reserve quality for the banking system was the greatest mistake in history."

A lot of things contend for the greatest mistake ever. Not killing off the plaefaces in the 15th century for example. 

Thu, 01/22/2015 - 17:51 | 5693873 FrankieGoesToHo...
FrankieGoesToHollywood's picture

That bartender who encouraged Hitler to go into politics has to potential to make the list.

Thu, 01/22/2015 - 17:51 | 5693874 silentsock
silentsock's picture

Virtually EVERYTHING government DOES goes against human nature.

That's why government generally doesn't work. Particularly Socialism, as it completely defies human nature, which is why it has always failed everywhere it has been tried.

(though they've lasted, I wouldn't consider NK and Cuba a success)

Thu, 01/22/2015 - 18:39 | 5694051 PirateOfBaltimore
PirateOfBaltimore's picture

I've made this same point repeatedly to friends. You can only buck human nature for so long before a reversion to the mean.

 

Government is looking very over-bought currently

Thu, 01/22/2015 - 20:55 | 5694563 Henry Chinaski
Henry Chinaski's picture

Gov't is the last bubble.

Thu, 01/22/2015 - 17:54 | 5693882 Dr. Richard Head
Dr. Richard Head's picture

Bitch better have my money!

Thu, 01/22/2015 - 17:58 | 5693892 BKbroiler
BKbroiler's picture

now I have to Ebay "prostitute tokens"

Thu, 01/22/2015 - 18:02 | 5693907 whoopsing
whoopsing's picture

Is that Kardashian ass on that coin ?

Thu, 01/22/2015 - 18:02 | 5693908 Romney Wordsworth
Romney Wordsworth's picture

I'll gladly pay you a Prostitute Token on Wednesday for a blowjob today!

Thu, 01/22/2015 - 18:05 | 5693911 Mayer Amschel R...
Mayer Amschel Rothschild's picture

Money changers survived.  Emperors did not. 

Thu, 01/22/2015 - 18:42 | 5694065 Romney Wordsworth
Romney Wordsworth's picture

& yet...

 

"On a long enough timeline the survival rate for everyone drops to zero"

 

The "MONEYCHANGERS" have apparently not received the memo yet. If they were as smart as they pretend to be, they'd see this. But GREED is their kryptonite.

Thu, 01/22/2015 - 18:22 | 5693930 Batman11
Batman11's picture

In the beginning their were absolute monarchs who made all the decisions and made all the laws.

Governments were a way of taking power away from the absolute monarch and spreading it out among the few initially and eventually the people.

If US Government disappeared today Wall Street would be in charge with no vote ever to remove them from office.

The way wealth is concentrating we will soon be back at an absolute monarch (where the story began).

 

Thu, 01/22/2015 - 18:12 | 5693932 MEFOBILLS
MEFOBILLS's picture

There is no such thing as a free market.  It is B.S.

There are three kinds of markets:  1) Elastic  2) Inelastic  3) Mixed

Elastic can have competition and thus hold down prices.  Consumers have a choice on what to buy.  Even so,  a rent seeking manufacturer might put melamine in baby formula in order to make some more profits.   Hence, even Elastic markets need regulation.

Inelastic markets have no ready competition, so it must be regulated or government owned.  Can we have two air-forces?  How about two sewer lines to each house, and may the lowest price win!  Again rentier and monopoly forces will try to own inelastic markets like ports or roads, and try to take perpetual rents.  Do you want to live in an Oligarchy?

Mixed markets are something like medical.  One set of proponents will claim medical is elastic, and another will claim inelastic.   In the meantime, because the waters are muddied, we get Obamacare.  In Japan their medical costs are 30% of the U.S. normed to our dollars.  That means our Medical system is taking 70% rents. 

Also, all money is fiat.  It is a function of the law.  Even metal by weight as money had force behind it, if you couldn’t pay creditors; you would often die or be put into slavery.  Witness the slavery of Greece and then Solon’s reforms.

Rentiers, particularly those in finance, host government and pervert law to aggrandize and move wealth toward them.  Monopoly forces love to popularize the idea “government bad” while simultaneously hosting it so as to bend it to their will. 

Federalism should be responsible to the political will of the people, and this type of government can thwart the will of rentiers/monopolists.  Federalism is Local power, not money and political power pyramided toward Washington.  Back scratching politicos in Washington get their money from private finance, and when they deficit spend their bonds are monetized by private finance.  OK.  Government does not issue money.

The real problem is rents and rent-seekers.  Government exists to improve the commons and create a breathing space so civilization can evolve. 

Our focus should be on rent seekers wherever they are, both in private supposedly “free markets” and also in government.

Once government money is issued, they have no control over it.  It spins in the money supply debt fee allowing economic freedom.   It can only be recalled with taxes, and taxes are an overt political maneuver.  Banker credit can have more drain or supply - depending on what they want, and through these cycles, they can induce inflation or depression.    Free market is B.S. and Banker Credit is not economic freedom, it is quite the opposite.  It is mind control slavery and propaganda to popularize the idea of free markets and market money.   There can only be low cost delivery of prices, which then gives man freedom.

Thu, 01/22/2015 - 18:50 | 5694107 Escrava Isaura
Escrava Isaura's picture

 

 

MEFOBILLS

You rock!

Great explanation.

Once at it (educating me) what do you make of the Russia Ruble devaluation? What’s going on there?

 

Thu, 01/22/2015 - 21:48 | 5694709 MEFOBILLS
MEFOBILLS's picture

Escrava,  Did you see all the down votes?  Even though it is obvious that markets are of three kinds, and it is a well known fact, many don't want to hear it.

Here is another unpleasant truth: 

Money should not exchange for money.  Money is an abstraction, which has many properties.  Path, volume, type, velocity amongst them.  But, to swap one abstraction with another is a logical no-no.  But, as you know our banker friends and money masters insist that they own the equal sign, and they determine what should swap for what.

A proper money system would have something like Keynes bancor.  In that system, if a good leaves a country, then a bancor moves in the opposite direction.  So, a bancor is a mechanism that accounts for goods movement.  The money itself stays within the nations boundaries, such that it can then be under lawful guidance.

If a country became mercantile, their extra bancors would be put in a reserve fund and then cycled back to other countries in trade deficit.

So, Ruble collapses and dollar hegemony, and the China Gambit, etc. etc. can all be seen within the context of full spectrum war, where the players are hiding behind the equal sign.  They have no intention of doing fair and equitable trade.

Russia and China were at the IMF trying to get SDR's going, and this would be a bancor like system.  The dollar would have become one more currency of the world, that would have been anchored by the basket.  Said basket would be things like cows, wheat, and other items that are NOT subject to whimsical manipulation.  SDR bancor like currency would then make trade more like barter.  The anchor currency, based on goods, would then expose any country doing games with their domestic money.

SDR's in their current incarnation are held in reserve channels of private banks, and they work as dollars.  So, I'm talking about a different kind of SDR, where its properties would have been changed.  The U.S. locked Russia and China out of IMF, and this yet another reason we are in the world situation today----it could have been averted.  But then our Washington consensus government is completely parasitized by money power special interests.

All international trade is really barter, and a system that marks the barter is what we need.

I'm not fully into the Ruble machinations, but I would guess the collapse is probably a bear raid, where the action of shorting it drives it down in a positive feedback.  (Yes, our money system has all kinds of postiive unwanted feedback, inherent to its design.) 

Thu, 01/22/2015 - 22:47 | 5694925 Mayer Amschel R...
Mayer Amschel Rothschild's picture

I enjoyed your posts and hearing different views.  Screw the uppity green arrows popularity contests.

 

Keynes, is another dirty oligarch and would certainly build in some kind a trap mechanism into a currency system.  It's well known that Cambrigde Apostles like him take & gobble more cocks than Richard Simmons and that tells me all I need to know about his judgement.

Thu, 01/22/2015 - 22:04 | 5694792 Matthew John
Matthew John's picture

The real problem is rents and rent-seekers?

What do you mean by that?

Do you believe in property rights?  If I purchase real property, and I seek tenants to pay rent, is that not one of the essential rights of property ownership?

Fri, 01/23/2015 - 00:27 | 5695234 MEFOBILLS
MEFOBILLS's picture

The real problem is rents and rent-seekers?

What do you mean by that?

 

Rents are a term normed out of our language.  Usually if we don't know something, it is purposefully hidden from our view.  It comes from rent-racking in England.  This was where landed class would charge industrial workers large "rents" to stay on their property.  

The French Physiocrats then morphed the term to mean rentier.  Rentier's are a group of people who want to take high profits.  These profits are costs above the real cost of production.  So, rents are anything were there are hidden costs, which are buried in high prices.

America is loaded with rents, and rentiers.  But, since we don't have language, we cannot talk about it as a concept.

Example:  An oil company moves crude from middle east on Panamanian flagged ships.  The input price of this crude is increased before it goes to gulf refineries.  The refinery is allowed to make only so much profit, just enough to cover their costs.   Profits are output price minus input crude price.  On the ledger in Panama, the real profits are made, because it is a flag of convenience country with no income tax.  Thefore the profits on ledger in panama are not taxed, and instead middle class American's take the hit.  The oil company makes hidden profits.

Apple takes its profits in Ireland.

People take high depreciation on buildings, yet the land value increases.  

Monopoly forces by definition are rents.

Lobbyists who change law to give their industry special privledge, and thus extra profits, are taking rents.

Usury on money itself is probably a 40% rent scheme, meaning the money itself takes for its right to exist.

Fri, 01/23/2015 - 10:20 | 5696307 Matthew John
Matthew John's picture

Lobbyists who change law to give their industry special privledge, and thus extra profits, are taking rents.

OK.

So what you are talking about is what is commonly referred to as "crony capitalism" or more accurately fascism.... because it's the opposite of a free market where government merely creates a level playing field for all participants.

Yes, you are right, we don't have a free market.

Thu, 01/22/2015 - 22:46 | 5694919 thebigunit
thebigunit's picture

Even so,  a rent seeking manufacturer might put melamine in baby formula in order to make some more profits.   Hence, even Elastic markets need regulation.

Maybe this is a quibble, or maybe this is a fundamental distinction, but it seems to me that melamine in baby formula does NOT recessarily require MARKET "regulation".

It is, potentially,  justification for "PRODUCT regulation."

I.e., if you want to call you're product "baby formula", it can't contain melamine.  But all willing sellers or "baby formula" as defined can sell it on an UNREGULATED market.

But, the problem could be addressed even without product regulation by just having a robust system of "product specification".

ACME Baby Formula company could offer a product that does not contain melamine, and offer it to the maket as a trademarked, melamine free product.

The only "regulation" needed is a robust tort system to punish cheaters who violate trademarks or lie about their products.

Tue, 01/27/2015 - 15:21 | 5712101 MeelionDollerBogus
MeelionDollerBogus's picture

"Also, all money is fiat.  It is a function of the law"

 

NO.

Money is solid atoms. A function of physics. All else is an IOU, and IOUs are never money.

Thu, 01/22/2015 - 18:13 | 5693935 FrankieGoesToHo...
FrankieGoesToHollywood's picture

The Romans tried to outlaw prostitution by saying you could not pay them with a coin that bore the image of the emperor when all coins displayed the image of the emperor.

 

I recommend a similar approach today.  No payment for prostitues using currency with a Presidents face on it!

Thu, 01/22/2015 - 18:20 | 5693968 wendigo
wendigo's picture

Leaving 10's and 100's? You might be on to something. 

Thu, 01/22/2015 - 18:13 | 5693938 PrayingMantis
PrayingMantis's picture

 

 

... >>> "Romans tried to outlaw prostitution by saying you could not pay them with a coin that bore the image of the emperor when all coins displayed the image of the emperor"

... thus, the real meaning of 'pros' and 'cons" ...

Thu, 01/22/2015 - 18:24 | 5693971 Batman11
Batman11's picture

Free markets?

I thought all markets were rigged.

Jamie Dimon must have taken his eye off the ball.

 

Human nature will ensure that the people running the markets always try to rig them for personal gain.

 

Thu, 01/22/2015 - 18:24 | 5693981 kchrisc
kchrisc's picture

And the bigger picture: A government is an instrument of theft, control, and division, used by Zionism against the people in the pursuit of plunder.

Other governments are instruments of theft, control, and division used by Zionism against a recalcitrant governmnet that is unable or unwilling to plunder as directed.

Recent examples: The Iraq war crime. The Ukrainian coup, civil war, and pludering. The takeover, and plundering, of Libya.

The banksters need to repay us.

Thu, 01/22/2015 - 18:27 | 5694000 Duc888
Duc888's picture

 

 

 

I'm gonna have to get me a Roman Prostitute Token.  That's a hell of a conversation piece.

Thu, 01/22/2015 - 18:40 | 5694066 BlackSwanOil
BlackSwanOil's picture

Human Nature comes from the heart of men.  Government thinks everybody is sin free by personal choice.  The media denies human nature.  The government denies human nature.  They seek to confuse the truth.  All men are sinners.  Building a perfect world goverment on the face that man gets better and better is serious confusion.  Those who refuse to listen to history is doomed to repeat it again and again.  Closed minds to the real problem is a real delusion.  Thanks for the post.

Thu, 01/22/2015 - 18:47 | 5694092 Victory_Garden
Victory_Garden's picture

Yes indeed, the song of the angelic is sad today as this insane woar mongering for the money-god and it's controller slaves goes on and on and on and nothing, not even the faithful to God can stop it all. The march towards moar woar seems to be the continuing media direction to distract folks from the bankster madness and the insanity of moar world domination via population elimination agendas.

Oh, the audacity of it all is stifling the sane brain. The stench of death approaches everyone’s doorstep if this beast is not stopped post haste pronto! If you have children you love, or youthful families you care for, you best get off the duff and get jiggity into the fight for their free future. Anything less than a full on frontal assault using all the possible peaceful means necessary, and pointed at the lies and disinformation, the evil banksters, and the horrid puppet politicians that at all levels control the gullible stupid nation, will result in losing them in the draft for this coming planned world woar.

No action taken now, is sentencing them all to death in Europe somewhere to fight the banksters woar for profits and destruction. Eventually, the chemicals, nukes, and biologicals will land at home where ever you are. Maybe even after the planned power outages, or bank hackings. There is no escape from a future woar. All will perish, even those who dig underground cities to hide in. If the vast majority here do nothing to stop what everybody knows is coming after another false flag event, then just kiss them children all goodbye right now because this evil is still hard at it to instigate and probagate moar terrorism for the reasons to perpetuate this insanity of moar woar for the bankster/politician profiteers.

There are many reports of active us army folks being deployed to europe in the coming months. This is a huge indicator of what is already planed to happen. A third world woar in which the west is being SET UP TO LOSE! The sad thing is, everybody knows this is potentially the end of all humanity, and no one seems to care. Europe is due to be French Fried first right after isreal, the highest bombing target priority after the first shots are fired. All inhabitants in the entire region, POOF! The bankster puppeteer families in France and London would be next.

What have you done to preserve your children's future and that of the free nation you live in today?

 

Gee Wally, what's on TV?

Thu, 01/22/2015 - 18:54 | 5694122 JohnnyBGood
JohnnyBGood's picture

Printing paper is no different from shaving the edges of gold and silver coins. Same ole S*%! different day.

Thu, 01/22/2015 - 18:56 | 5694127 JohnnyBGood
JohnnyBGood's picture

I predict the coin and gun people will unite to take over in a revolution from uneducated fools and useful idiot sheeple.

Thu, 01/22/2015 - 19:05 | 5694149 JohnnyBGood
JohnnyBGood's picture

Its pretty cool that someone like a Louis Farakhan and a Ron Paul totally agree on the destructiveness of the Federal Reserve. That gives humanity a hope that people from different sides of the political spectrum KNOW what the problem is. Therefore, problems CAN be solved when black and white UNITE.

Thu, 01/22/2015 - 19:07 | 5694159 JohnnyBGood
JohnnyBGood's picture

Deflation has begun in New England and will spread to Arizona.

Thu, 01/22/2015 - 19:20 | 5694207 JohnnyBGood
JohnnyBGood's picture

Boys and Girls lesson # 1 is that any paper dollar is not a real dollar and therefore unconstitutional. Now come up here and get your diploma.

Thu, 01/22/2015 - 19:34 | 5694265 Dekyus
Dekyus's picture

governments are muppets, banks rule

Thu, 01/22/2015 - 19:47 | 5694316 gregga777
gregga777's picture

Virtually everything that the US government now does is due to the Unconstitutional Federal Reserve Bank. The Constitution states that The Congress shall have the responsibility to "coin money" and to "establish thr value thereof". Elsewhere in Federal documentation of the time a dollar was defined as being equal to 371 and 4/16's grains (24.057 grams) of pure silver. Therefore coinage is the only Constitutional money legally authorized for commerce and any other purposes in the United States of America.

Under the Constitutionally legal monetary system envisioned by the founders the citizenry held the ultimate check on the size and power of the Federal government. If the Federal government began to expand, hence demanding more taxes, or began an unpopular war, the citizenry in mass could descend on the banks and withdraw their legal money from the banks thereby denying it from the government. Carried on long enough the Federal government would collapse.

Today, the Federal Reserve Bank, whose sole purpose for existence is to channel the wealth of the United States into the hands of its owners, the Too Big To Fail banks, will loan the US government all the funds it needs based on the scenario above. But, the FRB IS completely Unconstitutional and Federal Reserve Notes are totally illegal.

There is no provision in the Constitution that allows one of the three branches of the Federal government to transfer it's responsibility or responsibilities to another branch of government, to a non-governmental organization, or to simply abdicate it's responsibility or responsibilities. For instance, the Federal Reserve Bank is completely Unconstitutional. It's argued in Federal court that it is not even a part of the Federal government and therefore it is not accountable to Federal laws such as the Freedom Of Information Act.

Today Congress writes very little of what eventually is published as Federal Laws, Rules and Regulations. Often the bills are written by Corporate or other forms of special interest groups. When passed by Congress and signed into law by the LPOTUS—Lying-most President Of The United States—that bill is completely rewritten and expanded by one or more Executive branch agencies. The resulting Laws, Rules and Regulations are completely Unconstitutional and are completely illegal.

Any past (from a minimum year of 1900), present or future Bills that are not completely written by the House or Senate, from start to final passage, signed into law by the President, and incorporated 100% as written! without deletions or substitutions into Federal code is Unconstitutional, illegal and should be viewed as being null and void. A partial listing of the Unconstitutional, illegal and null and void laws, acts and programs are:

• Obamacare in its entirety;
• outright elimination of the FRB and FRS–member banks (ala President Andrew Jackson) and a permanent ban on any form of US central bank;
• a super-majority of the Federal Tax Code;
• most of the employees at the Internal Revenue Service;
• a super-majority of the Environmental Protection Agency;
• most of the employees at the Environmental Protection Agency;
• the same goes for the Departments of Education, Health and Human Services, Commerce, Homeland Security, and so forth;
• and so much more that it's simply not possible to list in a brief message.

Don't expect SCOTUS, a The Supreme Cowards—I mean Court—Of The United States from leading this charge. President Franklin D. Roosevelt neutered the SCOTUS when he tried to pack the court in the 1930's. Almost all they do today is to rule on the socially divisive issues that the One Ruling Party uses to keep us divided and to keep our attention off their transformation of the American Republic into the Amerikan Crony-Capitalistic Police State.

Thu, 01/22/2015 - 23:36 | 5694568 Jack Burton
Jack Burton's picture

"they are engaging in a perpetual war they can never win"

Of course not! Bloody fools, it isn't about winning it! It is about fighting that war, and all the government jobs at high pay that fighting it provides!

The pay, the power, the security, the retirement, the sticking of guns in people's faces! Jesus, government fights this war to give reason for power and employee. Name a government employee who does not think he/she is importantly fighting human nature!

War on drugs, perfect example. Watch the TV series "Breaking Bad" follow the DEA agent, the Brother In law. Look at his nice home, car and lot's of nice stuff, and how he jerks off in people's faces when he busts them. The power trip government gives him.

Fuck, THEY DON'T WANT TO WIN, THEY WANT TO FIGHT!

Thu, 01/22/2015 - 21:54 | 5694746 magnumpk
magnumpk's picture

"Buying sovereign debt is deflationary."  I like that insight.  Speaks volumes to why QE is and will always fail to meet its objectives.

Thu, 01/22/2015 - 21:53 | 5694748 Matthew John
Matthew John's picture

Where do I get one of those prostitute tokens?

Thu, 01/22/2015 - 22:09 | 5694807 Wild E Coyote
Wild E Coyote's picture

The Governments are made of Humans.
And Humans follow human nature.
Thus we in government seek maximum long term prosperity by creating programs that require increasing budgets, that we can assign to our trusted crony.
And when, other humans run out of cash to pay our increasing budget for programs, we give them printed money with decreasing value.
And when finally all business avenues are exhausted, we start wars in the hope of acquiring assets from others.
And when war profiteering is also exhausted we declare peace and start all over.
Who said we fighting human nature?
We simply are victims of our own human nature. Don't blame us.

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