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Now Begins The Greatest Heist Since Bernanke Bailed Out Wall Street In September 2008
Submitted by David Stockman via Contra Corner blog,
Well, he finally launched “whatever it takes” and that marks an inflection point. Mario Draghi has just proved that the servile apparatchiks who run the world’s major central banks will stop at nothing to appease the truculent gamblers they have unleashed in the casino. And that means there will eventually be a monumental crash landing because the bubble beneficiaries are now commanding the bubble makers.
There is not one rational reason why the ECB should be purchasing $1.24 trillion of existing sovereign bonds and other debt securities during the next 18 months. Forget all the ritual incantation emanating from the central bankers about fighting deflation and stimulating growth. The ECB has launched into a massive bond buying campaign for the sole purpose of redeeming Mario Draghi’s utterly foolish promise to make speculators stupendously rich by the simple act of buying now (and on huge repo leverage, too) what he guaranteed the ECB would be buying latter.
So today’s program amounts to a giant bailout in the form of a big fat central bank “bid” designed to prop up prices in the immense parking lot of French, Italian, Spanish, Portuguese etc. debt that has been accumulated by hedge funds, prop traders and other rank speculators since mid-2012. Never before have so few—-perhaps several thousand banks and funds—-been pleasured with so many hundreds of billions of ill-gotten gain. Robin Hood is spinning madly in his grave.
The claim that euro zone economies are sputtering owing to “low-flation” is just plain ridiculous. For the first time in decades, consumers have been blessed with approximate price stability on a year/year basis, and this fortunate outbreak of honest money is mainly due to the global collapse of oil prices—not some insidious domestic disease called “deflation”. Besides, there is not an iota of proof that real production and wealth increases faster at a 2% CPI inflation rate compared to 1% or 0%.
Nevertheless, Draghi had no problem gumming the following absolute gibberish in announcing that his big monetary bazooka would be soon firing at will on the hapless citizens of the E-19.
Today’s monetary policy decision on additional asset purchases was taken…..(because) the prevailing degree of monetary accommodation was insufficient to adequately address heightened risks of too prolonged a period of low inflation.
This assertion is blatantly contradicted by the facts. Outside of the commodities and industrial materials complex, where prices are being weakened by the rapid cooling of China’s construction madness, it is still”creeping inflation as usual” in the EU-19 economies. There is flat out no emergency that could possibly justify an ECB action which will result in the creation out of thin air of what amounts to fraudulent credit equal to nearly 10% of euro zone GDP in less than two years.
And folks, it is fraudulent credit——really dangerous, toxic stuff. The $1.2 trillion of debt securities to be purchased by the ECB (and its constituent national central banks) in the secondary market originally financed that amount of labor, material and capital consumption. Can you actually pay such massive sums to vendors of real goods and services with central bank manufactured digital credits and still pretend that the economy is functioning on the level? If so, why not manufacture $5 trillion or even $15 trillion of ECB credit and buy up the entire euro bond market?
In short, Draghi is presiding over a gargantuan fraud and can’t be so stupid as not to recognize it. Indeed, the dictionary definition of a “charlatan” could not more aptly describe his current gambit:
“….a person falsely claiming to have a special knowledge or skill; a fraud”.
A few weeks ago, I called out the lame case on which Draghi’s “low-flation” humbuggery is based. Nothing has changed since then—so it is self-evident that the ECB’s new bond buying binge is designed to relieve financial speculators of hot merchandize, not long suffering euro zone citizens of the stone cold economies that their overlords in Brussels and the national capitals have confected.
Well, of course the CPI has momentarily weakened. Crude oil has experienced a monumental plunge of more than 50% since mid-2014. That has temporarily dragged down the euro zone’s reported CPI and the math isn’t all that complex. During the last 12 months, euro zone energy prices have fallen by 6.3%, and everything else is still 0.6% higher than a year ago.
So what’s the emergency? This is the very same CPI blip that occurred when oil collapsed in the second half of 2008. As is evident below, that episode did not generate some cascading plunge into economic darkness. In fact, the Eurozone CPI was back running above 2.5% in no time.
The truth of the matter is that the EU-19 is in clover because it’s consumers get a big break; and, on the other side of the economic equation, it produces almost no oil. Europe’s production is mainly in the UK and Norway and they have their own currencies. Accordingly, the ECB should be putting its printing presses on an extended sabbatical and declaring victory on the achievement of its “price stability” objective.
Indeed, the notion that the hairline puncture of the zero inflation line shown above is a precursor of a deflationary calamity amounts to economic voodoo. There has been no structural change whatsoever in the Eurozone economy since 2008 when the last oil-driven CPI drop occurred, and therefore no empirical basis for the notion that wages and prices are about to descend into an accelerating downward spiral. If anything Brussels’s dirigisme regime has made prices and wages even more “rigid” and “sticky” owing to it’s avalanche of new regulations, subsidies and other economic interventions.
The plain fact is that the euro zone like the rest of the DM has an inflationary bias that is embedded in six decades of history during which the euro and its predecessor currencies lost purchasing power month-in-and-month-out. So households are finally getting what will undoubtedly be a short respite from the inflation tax, but that is the extent of it. There is not one rational reason to believe that the relentless upward march of the price level shown below will not presently resume its well-worn path.
The euro zone deflation story is pure cock and bull, and that proposition doesn’t take much investigation to document. First and foremost, there is no sign of a wage collapse, yet how do you get a deflationary spiral if wages continue to rise?
As shown below, owing to heavy unionization and protectionist labor laws, euro zone wage rates have been on a long-running one-way escalator, and show no sign of “deflation”. Total compensation per worker is up 1.3% during the last twelve months—-an identical rate to the 1.3% recorded during the year before that, and not much below the 1.7% annual rate of gain that has been recorded since mid-2010.
If you take purely euro zone produced items the story is the same. In the case of total services, the December LTM price change is 1.25%—-a figure that has been visited twice before this century without untoward effects.
In the specific case of housing services and rentals, the LTM inflation rate is not much under 2%—-a level which has prevailed for the past several years.
Likewise, the inflation rate for euro zone produced recreation and personal services shows no signs of plunging into the abyss. It’s LTM rate of increase is about 1.5%, and is in the general zone that has prevailed for most of this century.
The same is true of transport services. The index is still rising at a 1.5% rate, and while below the 2.5% trend of the last decade or so, the larger point is self-evident. Isn’t it a good thing for productivity and growth that the euro zone’s inflation rate for transport of people and goods is abating slightly? Where’s the fire?
In short, the euro zone’s momentary spat of year-over-year price stability is almost entirely owing to the global decline of commodities since the China bubble driven peaks of 2012; and also the lagged effect of the Euro’s strength prior to mid-2014.
In the case of non-food commodities including energy, for example, the producer price index is down about 25% from it 2011/12 peak. Since the euro zone imports a heavy share of its energy and industrial commodities, isn’t this decline a welcome development?
And there’s more. Commodity prices are still double their pre-2005 level. In other words, the giant global commodity bubble generated by the runaway credit boom in China, the BRICs and their EM satellites has finally started to cool, and this relief is now washing through the euro zone price indices. Rather than an existential crisis, the cooling of euro zone inflation is mainly a welcome surcease from the utterly aberrational credit bubble that was foisted on the global economy by central banks over the past decade.
Even in the case of food commodities, the sharp decline since 2012 is a menace only to the French farmers, at worst. How can it be said that a 20% reduction in food costs is harming the living standard of 350 million euro zone consumers or is a causing the macro-economy’s chronic underperformance?
Finally, where prices are falling outside of imports, commodities and the processed industrial goods which embody them, this result has nothing to do with short-term monetary policy. The price index for euro zone communications services, for example, is negative 2.5% on an LTM basis—–but that is nothing new. Owing to the communications technology revolution and a modest degree of deregulation, prices in this sector have been falling for the better part of two decades, and its been a boon for economic growth and consumer welfare, too.
In short, the euro zone deflation scare has nothing to do with empirical reality or common sense economics. Instead, it is pure propaganda emanating from the policy apparatchiks in Frankfurt and Brussels, and aped and amplified by the casino’s stock peddlers who claim to be “economists” and “strategists”.
It goes without saying, of course, that the evidence for Draghi’s QE that you can’t find in the inflation curves is screamingly apparent in the bond price curves. They have gone damn near parabolic in the 30 months since Draghi’s “whatever it takes” ukase. The windfall profits which have accrued to riders on the Draghi curve are flat out obscene.
This morning all euro zone sovereign debt is trading at absurdly low yields. Even as Draghi foams at the mouth about the ECB’s determination to get inflation back close to its arbitrary 2% target, the Italian 10-year bond is trading at 1.56%, the Spanish 10-year at 1.42% and the French bond at the nearly insane level of 0.70%. Or as one wag recently noted, European debt yields has not traded this low since the black plague leveled the people and their sovereigns, alike.
Now self-evidently, the speculators who have ridden the Italian bond down from 7% don’t see any contradiction between Draghi’s pledge of 2% inflation come hell or high water and today’s nominal yield of 1.56%. They don’t care, they don’t discount, and they most certainly do not engage in “price discovery”. Instead, they hover with their finger on the “sell” button ready to unload at any moment their vastly over-priced stash on the stupid apparatchiks who run the ECB.
Exactly, the same can be said for the Spanish and French curves below. The fast money traders, of course, do not recognize that Spain’s public debt ratios continue to soar despite the phony “austerity” claimed by the crooks who run its government, and the insurgent anti-austerity political party and Catalonian succession movement that are likely to make it ungovernable in the near future. They just don’t care because there is a patsy in Frankfort ready to relieve their downside risk.
But the most absurd case of price discovery destruction fostered by Draghi’s foolish promise, and now action, is the French 10-year bond yield. French socialism and dirigisme have finally strangled its private economy and sent capital and its best enterprenurial talent scrambling for foreign shores, thereby leaving its bloated public sector—- now at 57% of GDP—-high and dry.
Yes, the above juxtaposition makes all the sense in the world. It is entirely reasonable that a state drifting toward insolvency and/or ruinous taxation should be able to borrow 10-year money at 0.70%. That is, when the fix is in, the central bank printing press is open to buy, the apparatchiks are terrified and one of history’s greatest monetary charlatans is in charge——the speculators have nothing to do but harvest their haul.
So now begins the greatest heist since Bernanke bailed out Wall Street in September 2008.
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Meh, it's all just monopoly money.
The bankers have all the deeds and triple hotels on every property. You're just spinning around the board at their whim adding on to the mythical debt because for some stupid reason they think it's still fun.
Hopefully you're the wheelbarrow.
Don't worry, Bond gets Draghi in the end with the help of Pussy Galore. But it doesn't end well for Pussy.
I'm just glad they never made a Bond film that combined Octopussy and Goldfinger. That would have become messy.
Ahhh Goldpussy, the best of all worlds.
I bet the ladies would love Octofinger as well.
The shocker times 8
The author of this article is incredibly stupid. No one cares how much money they print. The problem is that all the freshly printed paper is going to the top of the pyramid. None of the authors here on ZH ever address that. The Parasites have control of the People's money printing press. Cops never arrest the REAL criminals. If they did, we the people would take OUR money printing press back, and place all the freshly printed paper at the bottom of the pyramid where it belongs. Idiots.
but, but, a trickle whilst the crumble, til it a come tumbling down...
but meanwhile the drums of war, beat ever louder...
edit-ah, scrolling down, r.m. has once again said the unpleasant truth.
death fucking systems-which is would call survival of the fitist, just like living in the woods. eat or be eaten, ha...
basic system of life/death/cycle.
keep it simple youall iq 120 plusers.
you thoughts will NEVER get traction unless pandered to dummies,ha...
Pin meet overinflated balloon...
Except that in Monopoly it's possible for the Bank to go broke; not so in what some imagine is "real life".
The bank doesn't go broke. The rules clearly stipulate that fresh pieces of paper with numbers written on them can be used as substitutes when the Monopoly "money" runs out.
Bankers learn money creation at an early age.
But I thought everything was awesome?
It is, depending on your significant digit in the 1%.
at least with monopoly money
you get 500 $ bills
and don't have to clog up your wallet
with all those pesky hundreds
Anecdotal observation from flyover country:
Was at Advance Auto parts scoring some Mobil 1 on sale and waiting to check out. Place is busy with people buying parts. First cashier says "I can't believe how many 'Hundreds' people have given me today, as he explained to the his 5th customer of the day who was trying to pay with a hundred for his stuff. The man walked because they couldnt' make change.
At that, two more people walked out. I guess they were going to pay with hundreds too. The other cashier then said "I've had 3 today".
What was ironic about it was that the guys behind the counter didn't understand that the monopoly money is rapidly devaluing. Hell 5 qts of mobil 1 and a filter were "on sale" for $39, regular $56. It wasn't that long ago that the same oil change would have run you $25.
Inflation in things we need, deflation in things (other than oil) that don't matter to the plebes.
What a country.
qe won't drive up the cost of anything but hookers and blow
"Nobody move or the nigger gets it!"
https://www.youtube.com/watch?v=Z_JOGmXpe5I
Never in the history of mankind have so few been enabled to ruin the future of so many.
Yes, boohoo!
To restate it:
Never before in the history of mankind have richer, older, people been able to destroy the lives of younger, poorer, people to the degree that is developing now ...
As typical on Zero Hedge, the article above by David Stockman is correct enough on its own level, but still superficial when regarded from the greater overall perspective that our political economy is based on strip-mining the world's natural resources as fast as possible, thereby high-grading future generations to hell! Everything was "developed" in ways which turned natural resources in garbage and pollution as fast as possible ...
I REPEAT the basic BIG PICTURE perspective about QE, which tends to not be perceived by guys like David Stockman, because he is looking too much at the groves of trees to see the forest as a whole:
QE programs are vastly more frauds pumped into fundamentally fraudulent financial accounting systems which do not work in ways which are way more profound than the kinds of ways that guys like David Stockman discuss. The basic trends are driving BOTH irreconcilable social polarization, AND irreparable destruction of the natural world, in ways whereby future generations will have to "pay" for what previous generations have already done, which probably will NOT be possible for them to ever do ...
The ONLY thing which could theoretically work is more radical truth about the ways that money is measurement backed by murder. However, the established systems are based on a long history of successful death controls based on the maximum possible deceits becoming the foundation for financial systems based on government enforced frauds. It is NOT possible to stop measurement from existing. It is NOT possible to stop murder from existing. Therefore, it is NOT possible to stop money being the oxygen of political fires, or the mother's milk of politics. That has enabled the best organized gangs of criminals to capture control over the powers of governments, thereby transforming governments into the biggest form of organized crime, through a monetary system which has become like a totally metastasized cancer, or a parasite which is killing its host.
We now live in a Bizarro Mirror World, where everything appears proportionately backwards, or a Wonderland Matrix, where everything appears absurd. "Money" is made out of nothing as debts, by privately controlled banks, while that fraud is enforced by governments, primarily through demanding payment of taxes in that fiat, faith-based "money." The more one learns about that, the worse it gets!!! That situation could not be more backwards and absurd, EXCEPT that it can readily be understood as the result of the prolonged, persistent, application of the methods of organized crime to the political processes.
http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm
Silent Weapons for Quiet Wars
… Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. … In this structure, credit, presented as a pure element called “currency,” has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. … if balanced in no other way, will be balanced by the negation of population (war, genocide)… They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor … War is therefore the balancing of the system by killing the true creditors (the public …)
The ONLY theoretically sufficient solutions must be based on understanding the real problems, that money is necessarily measurement backed by murder. Therefore, the ONLY way to change the monetary system is to change the murder system that backs that up. However, since the debt controls depend upon the death controls, the situation in which the existing debt slavery systems have generated numbers which have become debt insanities (where the banksters' "solutions" are to make MOAR "MONEY" OUT OF NOTHING, thereby creating even BIGGER DEBT INSANITIES), most probable outcomes are for that to be finally resolved by provoking death insanities.
The basic FACTS are that human beings and civilizations manifest as general energy systems engaged in entropic pumping, which are necessarily systems of organized lies, operating robberies, which follow the principles and methods of organized crime. However, human history has selected for that to have the most social success when done through the maximum possible deceits and frauds. Therefore, the established systems are that the biggest gangsters, the international banksters, control governments, as the biggest form of organized crime.
Since it is practically impossible for anyone within the established systems, including their controlled opposition groups, to understand human beings and their civilizations in genuinely more scientific ways, because that would require facing the FACTS that there are fundamentally fraudulent financial accounting systems controlling civilization, the actual "solutions" promoted by the banksters are more FRAUDS, which continue to be ENFORCED by governments.
Since the history of civilization has been based on being able to back up lies with violence, which became the established systems of legalized lies, backed by legalized violence, that history has resulted in the biggest bullies' bullshit being built into the basic structure of the dominate natural languages, as well as into the dominate philosophy of science. Hence, it is NOT possible to exaggerate the degree to which our civilization operates on the basis of the maximum possible deceits and frauds.
The ONLY connection between human laws and natural laws is the ability to back up lies with violence. Although human beings and civilizations DO operate according to the laws of nature, as general energy systems, the ways that we understand the concept of entropy are totally backwards, as the most abstract way that we generally are understanding everything backwards, because of the degree to which the biggest bullies' bullshit dominates the languages that we use, and therefore, the basic ways that we think. Therefore, not only are the established systems proportionately backwards and absurd (and so, their "solutions" make their problems overall become worse, faster), but also, the controlled opposition to those established systems stays within the same bullshit frame of reference, when proposing their various kinds of bogus "solutions" based on going backward to their favourite old-fashioned religions or ideologies.
In FACT, we are headed towards the runaway debt insanities provoking death insanities. Therefore, the only genuinely realistic resolutions of those runaway political problems are to, perhaps, survive those death insanities ??? We might be able to steer those death insanities into becoming better death control systems, backing up better debt controls. ... however, I would not count on that actually happening ... While it is theoretically possible that human beings could understand themselves and their civilization better, so that they could resolve their chronic political problems better, the real world of politics is so totally dominated by bullshit that it would take a prodigious series of political miracles for that to happen, while defaulting to business as usual will automatically drive the existing debt slavery systems to become even worse debt insanities, which have no other realistic resolutions than through death insanity situations.
That is why I must agree with your statement, boohoo: "Never in the history of mankind have so few been enabled to ruin the future of so many." Indeed, one of the plausible possible final consequences of human civilization behaving in such criminally insane ways are the extinction of the human species itself!
Worth repeating from your comment:
<<As typical on Zero Hedge, the article above by David Stockman is correct enough on its own level, but still superficial when regarded from the greater overall perspective that our political economy is based on strip-mining the world's natural resources as fast as possible, thereby high-grading future generations to hell! Everything was "developed" in ways which turned natural resources in garbage and pollution as fast as possible ...>>
I regret that I have but one green arrow to give for my reading.
Yo, Radical Marijuana, the strip-mining analogy is good, but if we look at the Casino Capitalists as parasites occupying a host until it is used
to a point of generational death we would be closer to the truth. And the metrology of death point was weird, but the more I think about your thesis generally, I am inclined to agree that systemic/endemic servo-mechanistic empirically derrived decision making [ie; Decision Theory]
leads to those types of outcomes. Hell, the spike in Bankster deaths of late is empirically very odd indeed and has not occured in our lifetime
previous to this. Empirically, this idea you have looks fruitful, so, work on it a bit more on the side of empiricism, and theory of Cybernetics, or Information Theory, so that you can come up with more universals of behaviour that can be applied in other countries
other than the USA. When I read your stuff, I am always thinking it is a direct shot at the USA more than other countries. There is a certain anger displayed at the system that I, and others, tend to agree with more than you are likely aware. In brief, I may not respond much, or upvote, but I always give your writing a read.
some good points, RM. cheers
Maybe in the discussion of wealth gathering, one should examine the "old school" maxims. Just as one doesn't "design" one's eyes, hair color, stature, or other heritable traits--"endowments from God", neither does one gather within the garden of good and evil in ignorance to the creator's laws. Remember too, that you, man, exist in a select space, a tiny spectrum, from which you draw only inference in the presented experience of life i.e. ears designed to 20-20K Hz, eyes to only the small spectrum of radiation, etc. To do so (act in ignorance even willfully), there is allowance for a "season to enjoy the evil fruits of advantage", but ultimately judgement will render unto man what he sows. Neither jot nor tittle can be bargained away except through ultimate repentence. Hence a messiah. The balance sheet of heaven recommends that he who endeavours most to serve all, even the least of men, in the establishment of happiness may look forward to enhanced blessings in this world and what comes after. Conversely, those who seek to establish systems which bind men down, which prey upon their weaknesses, which take gain out of fraud, untruth, gameplaying will too have their enhanced rewards. Blessings and curses upon the shades of men according to their thoughts, intents, and actions. Higher position upon the "pyramid", enhanced gain or loss in greater time. Promotion or Demotion at the all-seeing judgemental eye of the Creator. So all men should diligently seek the knowlege of the law, and seek to conduct themselves thereby. Otherwise the small gains and enjoyments of a few decades cannot save from the curses to come. Look at your fellow man and yourself in every aspect. This is the looking glass. It reveals to you a heavenly law.
I am the Lord thy God
Thou shalt have no other gods before me
Thou shalt not make unto thee any graven image
Thou shalt not take the name of the Lord thy God in vain
Remember the sabbath day, to keep it holy
Honour thy father and thy mother
Thou shalt not kill
Thou shalt not commit adultery
Thou shalt not steal
Thou shalt not bear false witness against thy neighbour
Thou shalt not covet (in any form)
Establish justice, enlarge the freedoms, cultivate the higher ideals, encourage sacrifice for the betterment, diminish yourselves as you seek to increase the public weal, crush the conspiracies against truth, goodness, high morality.
Yet we live in a pollution. Like the slums of Haiti, Nigeria, Kalcutta and more are we to superior beings who despise the uncleanliness and graft of this generation.
Not really. There are relatively for more people now.
The tribal alphas of our ancestors averaged about 2% fatalities waging war on neighboring tribes each year.
That would be 6+ million dead Americans each year in warfare.
Anusocracy, the same as we have deferred our debt controls, we have deferred our death controls.
Civilization was able to develop (extract by various forms of strip-mining) vast stocks of abundant natural resources, due to advances in technology, that enabled the industrial revolution. Having the energy equivalent of thousands upon thousands of energy slaves (due to harnessing inanimate energy sources) was the apparent source of the relative decrease in warfare doing sufficient death controls to keep the population in overall balance.
We have created a situation whereby "money" made out of nothing as debts has "paid" for strip-mining the planet's natural resources. While we were able to do that, the economic pie grew and grew, and so, there were more and bigger pieces to share. (Although, of course, the rich got way bigger pieces, while the poor got only slightly bigger pieces.) The same as "paying" to strip mine the planet's natural resources with "money" made out of nothing as debts deferred "payment" of those debts onto future generations, those social pyramid systems deferred their death controls onto future generations.
Therefore, Anusocracy, while your point is correct (& has been made by many others) that, relatively speaking, there is less violence now than was proportionately standard in the past, that is because we are going way out of balance, deferring our death controls onto future generations, the same as we are deferring our debt controls onto future generations. Just like they will not be able to repay those debts within the established systems, because the debt slavery systems have generated numbers which are debt insanities, so too are we headed towards corresponding death insanity situations to develop in the foreseeable future.
Our ancient ancestors developed systems of death controls that kept them in relative balance, given their levels of technology and corresponding levels of natural resources. Ancient warfare had its own culture, which evolved within its own real environmental ecology. Our technological civilization has done nothing like that yet, because it is all NEW ... We now have globalized systems of electronic monkey money frauds, backed by the threat of force from apes with atomic bombs, while the first generation that was born into that situation is still alive today. The MAD Money As Debt systems, backed by MAD Mutual Assured Destruction systems, have deferred those debts and those deaths onto future generations. Meanwhile the basic factors in those pressure cookers have continued to build at an exponential rate.
After life exists, there are chronic political problems which come as a package deal, due to the inherent nature of life. Natural selection pressures have always existed, and therefore, there have always been death control systems. Human artificial selection systems developed through ancient warfare, to become the current post-modernized forms of warfare. If one has a realistic view towards the issues of human, industrial, and natural ecologies, then one must focus on the death controls as the central features. Because human beings have both cultural, as well as biological evolutionary processes, there are combined money/murder systems, since the debt controls are backed by the death controls.
As long as the current systems of being able to make "money" out of nothing as debts to "pay" for strip-mining the planet's natural resources can continue, then we continue to be able, through those systems, to defer both the debt controls, and the death controls, onto future generations. At the present time, the most probable outcomes of having done that are that the runaway debt insanities are going to provoke corresponding runaway death insanities, in the foreseeable future.
We built our entire political economy upon systems of enforced frauds, which enabled attitudes of evil deliberate ignorance towards what we were actually doing in the real world, since the social world was dominated by lies backed by violence, which required the majority of people believe in bullshit, and therefore, not think critically about the bullshit that they believed in. Since that bullshit was backed by bullies, our civilization became totally based upon sophisticated systems of legalized lies, backed by legalized violence, which enabled that entire civilization to behave in criminally insane ways, that automatically got worse at an exponentially accelerating rate.
While there is no doubt that the statistics indicate that the world became, overall, a relatively more peaceful place, that was only accomplished by deferring the balancing of those affairs onto future generations to have to deal with. The established systems are all based on the presumption that endless exponential growth is possible. Indeed, it relatively was possible, after the industrial revolution enabled strip-mining the Earth's natural resources in ways which were never possible previously. However, eventually we will have to go through some transitions to develop some new forms of human, industrial, and natural ecologies.
While those are theoretically possible, it is practically impossible for that to actually happen in any other ways that for the established systems to go through psychotic breakdowns and collapses into crazy chaos, due to the degree that the already established and entrenched social pyramid systems are based on being able to back up lies with violence, and so, the vast majority of science and technology has actually been applied to become better at backing up dishonesty with violence, i.e., globalized systems of MAD Money As Debt, backed by MAD Mutual Assured Destruction.
In that context, David Stockman is a typical example of someone who is relatively critical of some of the superficial features of the established systems, such as the excessive creation of "money" out of nothing as debts by the central banks in recent years, which is headed towards being done even more so in the foreseeable future. However, somebody like Stockman has practically no respect for the environmental ecology as a whole, because his kind of economics is almost totally centered around human beings, in the traditional ways that is able to operate with attitudes of maximum evil deliberate ignorance towards the basic laws of nature beyond human control. (I.e., nobody has to "pay" for the air they breathe, and therefore, nobody has to respect the plants that make that air, etc. ...)
Since what is under human control are systems of lies backed by violence, which sorts of enforced frauds superficially appear to violate the basic laws of nature, by making "money" out of nothing as debts, which can disappear back to nothing, when those debts disappear, the background facts within those combined money/murder systems are deliberately ignored, as much as possible, since the overall ways that those debt controls are actually backed up by the death controls are NOT allowed to be discussed in the public spaces.
The school systems and mass media promote the biggest bullies' bullshit world view, and therefore, deliberately ignore the SOURCE of the public "money" supply as much as possible. Guys like David Stockman are just barely beginning to notice that there is something going profoundly wrong with the established systems, but they continue to have relatively superficial views about that, as demonstrated by how they focus on more recent events, such as quantitative easing by central banks, which gets only analyzed from still WITHIN the human-centered perception of economics, which overall deliberately ignores its environmental ecology as much as possible.
IF one pays attention to human ecologies, then its death controls are the central features. However, the history of warfare developed the actual death controls to be done through the maximum possible deceits. That then became the foundation for the enforced frauds that are the basis of our political economy. Of course, NONE of that gets rationally discussed within the public spaces, since all the most important facts are deliberately ignored by those established systems as much as possible.
Hence, the overall trajectory we are on are that the debt controls were deferred onto future generations, along with the death controls. Future generations are supposed to be able to repay those debts, which requires that the economy can continue to grow at an exponential rate perpetually. The utterly irrational insanity of that presumption has allowed the established systems of debt slavery to generate numbers which have become debt insanities, while the more recent waves of quantitative easing by central banks has merely been more icing and cherries on top of that cake which has already been baked.
While there is no doubt that the industrial revolution has enabled more exponential growth of the overall human population and total human activities, the most reasonable expectations are that is headed towards the tragedy of overshooting what might have been sustainable quite severely, after which there will be catastrophic collapses in to chaos, manifesting as death insanities, through every possible way, such as much more genocidal wars, along with democidal martial law.
The ONLY theoretical way that we could navigate that transformation better is to develop better death controls, to back up better debt controls. However, from a practical political point of view, that currently looks like it is totally impossible. The established systems, including their controlled opposition groups, are totally based on bullshit, to degree that make any relatively more sane death controls almost impossible to rationally debate and develop. Therefore, America, and the whole world, continues to rush through exponential growth of its population, in ways which appear to be overshoot in a nutshell headed towards death insanities.
For several decades I have been thinking about that, and attempting to do something about it. However, I am now completely convinced that our society is too terminally sick and insane to be able to prevent the runaway debt insanities from provoking runaway death insanities. Those generations who were able to enjoy spending the "money" made out of nothing as debts have deferred the payment for that onto future generations. However, at the present time it is impossible to imagine any plausible ways that those future generations could continue endless exponential growth in order to be able to cope with that. Rather, the most probable future is that there will be series of severe social storms blow through, during which the established systems will go through psychotic breakdowns and collapses into crazy chaos.
The established systems are based on being able to enforce frauds, in ways which got away with deliberately ignoring some of the most basic laws of nature, as much as possible, for as long as possible. To rebalance the degree to which there have developed debt insanities (which are still automatically getting worse with every increment of the banksters' QE etc.,) will most probably be done through drastic eruptions of death insanities in the foreseeable future.
The ONLY genuinely possible alternatives must still be better death controls. However, at present, there is no way to imagine such political progress actually being achieved. Rather, the paths we are on now are for the established systems of enforced frauds to continue to double down, over and over, as much as they can, for as long as they can ... until they MADLY cause their own self-destruction ...
If anything, our ancestors surrendered survival controls.
Please write 30 words about your def of death controls.
Real death controls are anything that says "no," and backs that up. Death controls stop something from happening. True birth controls are anything that says "yes," and backs that up, to enable something to happen.
(Most of what we call "birth controls" are actually death controls.)
Human death controls are components of artificial selection systems, which exist inside the context of natural selection systems. Since there are two different levels of information, through two different media, the DNA and the neural networks, in which there are both genes and memes, which interact in hyper-complicated feedback loops, both real death controls and true birth controls operate on at least those two different levels, as biological births, lives, and deaths, as well as cultural births, lives, and deaths.
P.S.
I agree with you that most people act so much like incompetent political idiots that their failure to participate effectively within the established political systems means that they have "surrendered survival controls" to those relatively small minorities that have captured control over the political processes, and thereby mostly privatized public powers. For example, "We the People" should control the public money supply. However, in fact, privately controlled banks dominate the public "money" supply.
Systems in which QE exists are LEGALIZED COUNTERFEITING of the public "money" supply by privately controlled banks. Since that "money" controls access to resources, like food, fuel, etc., which in turn control people's abilities to live, and to look after their children, the main ways that death controls are actually applied at the present time are through the monetary and taxation systems.
The power of governments to tax, and to kill those who resist being taxed, is primarily serving the interests of private banks, because the powers of governments to tax are primarily what makes the fiat "money" made out of nothing as debts by privately controlled banks become worth something that everyone else must respect.
(International banksters can be described as collectively being a group of trillionaire mass murderers.)
The most obvious death controls, namely the ability of the police and armed forces to kill people, and take things, are primarily applied to back up the public "money" system as government enforced banker fraud. Therefore, everywhere "money" flows from that source is doing debt controls, backed by death controls. Hence, in the sphere of economics, true birth controls are to provide some sort of credits to get businesses going, and keep them going, while real death controls are everything that stop businesses from being able to operate.
You venting, or working your literary craft for a novel or your own blogsite?
noben, for the last dozen years, I have run my own Canadian registered political party. After discussing politics face to face with tens of thousands of different people, as well as 2 court cases against the government regarding the laws that control the funding of political parties, my conclusion is that there is NOTHING worthwhile doing. I merely amuse myself articulating my thoughts in Zero Hedge comments. However, there is no practical point to doing that, nor attempting to do anything else. We are STUCK inside of a criminally insane civilization, automatically getting worse, faster. There is no way to prevent that, as well as actually no ways to fully prepare for that either.
After several decades of becoming as educated as I could be, the ONLY conclusion that is consistent with the facts is that the more one learns, the worse it gets. One of the aspects of that situation is that there is no practical point to discuss those facts, because the established systems of legalized lies, backed by legalized violence, are NOT going to change, except by getting MUCH MORE DISHONEST AND VIOLENT.
As far as I can tell, there is no point to learn about anything, because the only thing that follows from doing that is one is forced to recognize how bad things really are, to the degree that there was no point to have bothered to learn about that to begin with. In that context, I merely pass time articulating summaries of my conclusions as comments that reading Zero Hedge articles provoked me to think about ... However, over and over again, I also think that is obviously a waste of time for me to have done ... But still, there is nothing else that I can think of doing which would not also end up being a waste of time too ...
I LIKE to learn how things work, and writing is a tool that helps thinking. However, I REPEAT, my final conclusions are that the real world is so totally dominated by lies backed by violence, that any efforts to approach more rational evidence or logical arguments are practically pointless ... What IS going to happen are Bigger Lies, backed by More Violence, automatically getting worse, faster ... which systems will continue to deliberately ignore any more rational evidence or logical arguments, EXCEPT to the degree that those may assist with becoming even MORE DISHONEST, and backing that up with even MORE VIOLENCE ...
Black and White
I think people, prudent high"networth" investors see the writing on the wall. I certainly do/
I agree some wealth is concentrated. Overall, wealth shouldn't be penalized. If anything, tort reform, and get rid of useless lawyers.
Bring back free enterprise, and limit insurance companies. Give the newly Incorporated visiters a chance at the Amerikan Dream.
How can these people possibly afford milk, if Obama is charging them for un-needed healthcare?
I went to the Austin Goulsby Skool of economics.
Cops refuse to do anything with the homeless. Imagine your world 5 years from now. Shit everywhere, wear boots shopping.
Gold Bitchez....I pick up pennies
High net theft individuals.
High "net worth" is anything between $2m ~ Lloyd Blankfein. I have a family to take care of.
Think before you comment. I'm on your side.
"Think before you comment. I'm on your side. "
No offence, Yen; but, I will chose who is and who is not on my side.
At least you opened your mind to the possibilities?
All manner of mobsters and criminals, charlatans and frauds, pimps and whores, mercenaries and hitmen, etc. have family to take care of.
Maybe YOU should think before YOU speak once in a while...
Yeah: MY mind is pretty seriously open.
"Listen, think, respond."- Captain Johnson
Excellent advice.
Ultra High Net Worth > $20m
A $mil is chump change .
Who has owned a manufacturing business, or car dealership? If you even think about running a " legitimate" business, in those areas, you'ld better be "weel heeled".
Downvote all you want. This is what regulations, Payrolls, Insurance, Compliance COSTS are!
I forgot to mention licensing costs.
"A $mil is chump change .
Who has owned a manufacturing business, or car dealership? If you even think about running a " legitimate" business, in those areas, you'ld better be "weel heeled".
Downvote all you want. This is what regulations, Payrolls, Insurance, Compliance COSTS are!
I forgot to mention licensing costs. "
Those regulations and compliance costs are often used to keep the less well heeled from getting into the game and nipping at your heels.
Established businesses love those regulations when they bar competition from even getting it's shit together and opening up shop.
+1000 to YC, RS & booboo
It may not be too long before you will be able to turn around 360 degrees and see nothing but trainwrecks all around you as far as the eye can see. If you were able to see over them, you'd see the conductors (central bankers) scrambling away from the wreckage just as fast as they can.
the Dodd-Frank Act which is ready to steal your bank deposits just like the 2009 Banking Act in Britain, classing deposits as the banks not the savers until they withdraw them. Thus both the Federal Deposit Insurance Corporation and the Financial Services Compensation Scheme are null and voided
But what about all the hedge funds that bought Greek Bonds? Oh yeah, they'll make tons of money on Portuguese, French, Italian, etc bonds.
God I wish a meteorite would have hit Davos. Imagine waking up to a world with all those fuckers dead.
No serious questions from the financial media or elected representatives. We are doomed
too bad the filthy saud went instead of this piece of garbage.
they say they go in 3's
hopefully the beared bastard and the twat yellen are up next
Soros is an evil guy, he's what, like 100 years old?
They must be keeping him alive with baby blood and stem cells.
"Here's your latest anti-age injection, George."
"Thanks, Franz. You have carried on well with Dr Mengele's work as his grandson. Too bad you had to change your family name."
policy of the CB's has failed, like zombies they still keep on walking. Ghordius will explain how this is not like QE and Tarp, no it's in the EU so it must be strait forward and honest.
BTFD: the European tour......
It's too late to fix this collossal clusterfuck in any manor, other than a massive war: The FRN may not be the first to collapse but when it does, & it will it's then, onto another system, normally in history the "system" that wins causes more pain to the populace by several fold than the preceeding monetary system. So buckle up we're going for a ride.
I'm pretty much expatriated. I listen to stories, and think about signing those final documents.
I want to have a family, but I also know, SIGTHTF soon.
have the family. start this summer. imagine how things looked in 1940. or 1930 https://www.youtube.com/watch?v=4rvetP_Kcgk&list=FLbxyCizMndI5D1xfClXNTq...
Yes, but get a woman first.
<<It's too late to fix this collossal clusterfuck in any manor, other than a...>>
...refusal to support it. FIFY.
Don't vote. Eschew taxes. Turn off the fucking MSM and never listen to their propaganda. Refuse to hire anyone with a resume stained with their credentials. Rubbish and undermine them at every opportunity no matter how small.
Fuck woar. Leave the woar whores to MIC, MSM, and the banks.
Um we're past the point of no return, all CB's are printing massively they don't need you or me any more, time for some folks to die....the majority of the populace is sound fucking asleep.
Pray tell, how in the hell is a war going to help or solve a friggin thing??? At the end of any war who is going to be aqround or able to pay reparations.
As many have said before; We wll be back to stones and clubs made from some humans body. Milestones
Everyone says war, but in this age, will that work?
I think the War will be a staged or real (or both) cyberattack on the banksters.
Whoops! It's goooone!
There is only one problem in Europe, every insurance company and govt pension plan has promised an 8% return and that is well and truly out of reach. Could be the Greek fandango was just to push up yields, then the scramble was on to buy in all the discounted paper. Now the insurance companies and pension plans unload the bad stuff onto the ECB.
The coming bond market collapse.(2016)
Michael Pento
https://www.youtube.com/watch?v=o3_-xHV4fgo
I agree with everything Mr Stockman wrote. Bernanke started easing in '09 and the US markets are still within spitting distance of All Time Highs. I must presume Draghi will also get a 5 year run of markets grinding higher and higher. Why not, recent history is on my side. Prove me wrong.
Germany has GOT to be pissed.
The prudent Germans, that is. Not the CIA plants (cough, cough MERKEL).
No, the Germans finally got seduced. It came down to, either QE or invade Poland.
It boils down to this:
Now wait just a sec-ond, wtf does that even mean? NIRP is so bad it pulls down existing longer bonds to negative??? And so, if the ECB goes out and buys bonds, do they buy the ones with positive yield or negative yield? What is the POINT in such an environment?
I can't help but think it will simply migrate more money faster to the US.
I should have known taxpayers would be on the hook for a PR firm.
Greatest heist, ha ha.
Greatest Heist since Wall Street Bail Out == small potatoes
The biggest heist has been from the creation of the Fed for the last 100 years.
David Stockman
And what noun or adjectives have you looked up in your dictionary to describe Alan Greenspan?
He was responsible for putting Bernanke on the Board of Governors in 2002 and making him Chairman in 2006.
And if he had threatened to hold his breath in 1999, Congress wouldn't have repealed Glass-Steagall.
Just water under the bridge, my friend. Or is it?
this shit is getting real..
i don't know what is worse...that central banking demagogic crack addicts think they are doing the right thing or that any sane person/voter could possibly believe that they ever did?
imagine starting from a blank slate and saying...oh i know..the only reason that an economy exists is because i can print money, so i better make myself look relevant by inventing a system that pays me for neing here and pritning bank notes..now the weather turns down, nothing to do with me..ever... but since that doesn't work...all i have to do to stop it raining is for me to pprint more
king canute once tried to prove that he was mortal by asking the tide to stop...by sitting in a chair at low tide and issuing the relevant command "go back tide!"
the tide of course said "fuck you" and swamped him.
it's not enough to let a court jester to be in charge for a short time because everyone knows that a court jester has no substance and it's just a joke...now is the time for all good men and true to say...central bank agents of monetary econimics are a bunch of parasitic court jesters and there are too many of you...
my sense of humour is exhausted because there are simply too many dumb blonde jokes being told over and over and over and over again..i like blondes ..and i don't like court jesters that insist that it's always someone else's fault..so they could get paid regardless of outcome or risk or ...the pull of gravity
write to your politicians and ask them the question...why should a central bank like the Fed think it can control the future.... and why should the banking sector it supports receive tax paywers money rather than my family?
QE by every private person creating money after his need on computer would have been a far better option. It had eliminated all borrowing cost and with it put the entire financing/ banking sector out from its misery.
The rich only ones who have any money to buy up the stocks that go up under QE...in both Japan and US, stocks doubled....now in Europe too...it is just so unfair.
When the rich become this entrenched, the only way to level the playing field is Madame Guillotine...or a 90% estate tax on the top 1%
What is the difference between bankers rigging markets and Central bankers rigging markets?
Bankers get fined.
Yes, pennies on every dollar they made, and everybody else pays for it.
MR Jones, First National International has made 1 billion dollars on these shady deals. As Judge, my ruling is your firm pays a 10 million-dollar fine! That should discourage you! Anything to say, Plaintiff?
Yes, your honor, may we adjourn for the weekly poker game?
Why, yes, counselor. I think it's my week to buy the drinks.
Adjourned!
Fully agreed, QE is nothing but a bail-out of the big banks and their derivatives that would fail otherwise. This just delays the inevitable end a bit longer, buying a few more months, possibly years, so nothing new under the sun. If you like paper and fiat, rejoyce while it lasts. Good luck to all.
Now that I agree with 1000000000000000000000000000000%
Europe is still on the Marshall Plan - until WWIII
Unfortunately, markets and businessmen always have to be controlled with regulation.
We tried to de-regulate banking and trust bankers.
They rigged every market going.
Free markets will not exist in isolation.
Business men will form cartels to maximise profits.
The most famous case being the light bulb, they all got together to ensure that no one produced a light bulb that lasted too long.
Profits come first.
The manipulation in the economies of the world today is beyond comprehension. So many things are now so skewed that I have trouble decipering which way is up. But I do take this tact, and I suspect we all should do the same. The world governments are busy either aquiring or repatriating their gold. Which is very understandable in times of economic uncertanty. We are in such a time, and I for one will follow the leads of those governments and put physical gold and silver in my safe.
Yes, as interesting as it is the CBs and spokesmen have derided PMs, yet as you mention, Repatriation is the game of the day.
A lot of trouble for a barbarous relic.
The store of Au and Ag in the vaults is the only way to reach a base line of what ground zero is with so much manipulation.
You could back with land, as Germany did interwar, or back with oil, but PMs are in their own class, perfect as fungible substitutes for labor/value.
The gist I read here is PMs are leveraged about 100 times in paper- a lot of folks are going to be disappointed trying to get the fizz when the panic hits.
I have been acquiring tangible real assets since 2010, and long before, but only in coin collecting.
Owning Title and PMs in your hand is becoming the way to go!
It would be very interesting to see the names of the people whom is going to have these toxic bonds purchased from.
I bet there would be interesting links to politicians friends i wager
Heist - a yiddish word meaning it's time for yids to get rich.
The thing is that the thinking way to come to results is not the best acredited tool of which we are equipped in order to solve problems. You should know of the main difference in the process called to think.
In short, where from your thought, was it won on the analyzing or produced on the synthesized track.
Analyzing in the meaning of resolving means to let existing disturbances, the frequencies of them, quell in your mind and in the progress a solution maybe show up, often allied with a feeling of relief. Finally, I got it.
You just are the fishermen in this mode.
It's the way to find out about things, how they do and how they don't work or, resolve.
Quite opposite of this is the synthezing mode to think, that also finally prove its reality on the same oral stage, composed of words too. Looking as the same but isn't.
Synthezing imaginery - you put, clue and fix things together in mind and manure them to the output forseen, not of what has come in your mind exactly, but what you will wring out of it.
In the first way you stay in tune, let's say with the nature of all procedings, in the "everything is in the flow". The other turn allows you to lift off here. Often freedom of thinking miscalled.
Along the first way to come to conclusions, the idea to rob people for instance resounds in the analyzing way always badly.
The enforced, coerced way to put things together but is able to produce another product here. Opposing vehemently the manure aspect. As well the origin of beeing enforced. The assumption this must clue together is not pointless.
Bouncing on the time span till a fraudulent, backed on a synthesized, fabricated thinking resolving maneuver-that then must get also coerced as it had to be coerced in the thinking mode-is rejected by the nature of how things do and can resolve.
It looks obvious that the beaten way of come to thoughts must end up getting hostile against the former proceding because it's the always appropriate challenge to it.
It's a (male) men's world and they all appreciate the thinking generally as a greater deal than just moving to and fro in the box what it is, arranged by taking credit at topless, sacred geometry from those coercive character you surely will have token note in the futil approach to dedected the more behind it.
The art of synthesized thinking is praised as our way to heaven. About the fraud in it we are getting teached at the moment in our history hop the moste brute by the not to corrupt parts, enabling our way to exist against it's reason.
One point to make, it is supply and demand that dictates the price of labour as it does the price of goods. So unless the unions have a complete monopoly then they did not affect the price of labour at all here. They might caper around like medicine men as they go to meetings and make their demands, but the same price is given whether they had been there or not, just as it rains whether the medicine man capers around or not.
The EU is already misallocating a vast amount of capital, now they are funneling ever more into what can only be described as state central planning, just as the Soviets discovered, we shall find that whatever is brought with it will likely not be needed. So the return on investment will be less than the original money put in, carrying on with that has only one end result as the USSR found out.