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The American Dream Part 4 - The "Deep State" Is Now In Charge

Tyler Durden's picture




 

Submitted by Bill Bonner via Acting-Man blog,

The Most Important Change

But when he is disposed of foreign enemies by conquest or treaty, and there is nothing to fear from them, then he is always stirring up some war or other, in order that the people may require a leader.

– Plato on tyrants, The Republic

This is the last in our series on how America’s money, economy and government have changed since the collapse of the Bretton Woods agreement and the end of gold-backed money (Part 1, Part 2, and Part 3 here).

Today, we keep the focus on government… and what it has become. The period is hardly coincidental: On August 15, 1971, President Nixon hammered the last nail in the coffin of honest money.

It was not the only reason for the profound changes that followed. There was also the opening up of Communist China to capitalism, the fall of the Soviet Union and the rise of the Internet, to name just a few. But the new credit-based money system was the least obvious change… and probably the most important.

 

platon

Ancient Greek philosopher Plato

Caution: “Deep State” at Work

The credit-based dollar brought about a new economy. It changed the way people thought and the way their government operated. Now, deep pools of money determine which candidates are presented to voters.

And there is a new branch of government: the “Deep State.” It is not mentioned in the Constitution. And it operates above and beyond the visible process of democratic government.

Americans voted for Barack Obama in 2008 because they wanted a change from the Bush-era policies. But nothing changed. Why? Because the fix was in…

Candidate Obama was a critic of the war in Iraq; he promised to bring the Pentagon under control. But under President Obama, “security” spending in the US rose to its highest level since World War II. President Eisenhower warned us about this. He called it the “military-industrial” complex. This was the “Deep State” at work.

There are always some people in a society who are more ready than others to bully, steal and make jackasses of themselves. As 18th-century political philosopher William Godwin observed, if a government has any legitimate purpose at all it is to keep those people from doing harm to their neighbors. But over time, they infest government and its related industries.

Then instead of keeping these pests under control, government gives them authority… funding even a kind of ersatz respectability. Their predations, illusions and vanities become public policy.

 

eye-4

The all-seeing eye of the Deep State

Photo credit: Roberto A. Sanchez / Getty Images

Like a Manure Pile to a Herd of Pigs

Diary reader describes what happens next:

“Children can no longer sell lemonade. One cannot control his/her own puddle in their yard. Our communications (Internet and phones) are being monitored. Our police forces are no longer there to help us, but are militarized and react to every situation as if it were a deadly threat. Our government is now trying to control every aspect of our lives. The most recent of course is medical – but don’t get me started there.”

All major industries – education, health care, finance – attract these bullies and jackasses. But the Deep State calls to them like a manure pile to a herd of pigs. Soon, they are rooting and wallowing in the biggest heap of misspent resources in all of history.
Today, its agents bark at you to take off your belt in airports. Try to dig a pond in your backyard… or let your teenage boy work on the family farm… and they want to make a federal case of it.

They snoop and spy, looking for secrets they can hold over you. They tax. They regulate. And they control.

But it is they who are out of control … and unstoppable.

America’s Gulag Industry

According to US civil rights attorney Harvey Silverglate, the typical American commits three felonies a day in his own home without realizing it. Former Virginia senator Jim Webb describes the police state that results:

“We have 5% of the world’s population and 25% of the world’s known prison population. We have an incarceration rate that is five times as high as the average incarceration rate of the rest of the world. We have a system of mass incarceration.

 

There are only two possibilities here: Either we have the most evil people on Earth. Or we are doing something dramatically wrong in terms of how we approach the issue of criminal justice.”

What Webb doesn’t mention is that putting other people in jail pays – for some. America’s gulag industry makes money on every prisoner and lobbies for harsher minimum sentences.
It pays so well that, at home and abroad, the profiteers don’t merely “go abroad in search of monsters to slay,” as one of America’s founding fathers, John Adams, warned against. They create monsters.

Did you know that the FBI entices, ensnares and enables young men to plan acts of “terrorism”? Recently, FBI agents arrested three sad-sack men in Brooklyn and charged them with conspiring to travel to Syria to fight for ISIS.

None of the men could have done so without FBI help. They were broke. And one was unable to follow through because his mom had taken away his passport. These were the perfect terrorists – created, nurtured and funded by the FBI.

 

OECD incarceration rates

OECD incarceration rates per 100,000 citizens, by International Centre for Prison Studies

 

A Super Bowl with Mortal Stakes

Overseas, the situation is much the same. In the absence of real enemies, the Deep State has created phony ones. A Bonner & Partners subscriber explains:

“The US went to war in Afghanistan to kick out a batch of radical Islamist thugs. Now the whole Mideast is fighting a batch of much more radical Islamist thugs, who have the advantage of large quantities of US-supplied arms. The last that I heard the US was still providing arms to the Islamist thugs in Syria and complaining when these arms are used in Iraq.

 

Ron Paul recently wrote that none of the military adventures the US has been involved in in the last 25 years had done any good at all. I do not know why he didn´t extend it to 50 or 60 years.

 

There is no question about US military power but there are a lot of very serious questions about its choice of targets. On balance it seems clear that the US does more harm than good in its foreign affairs.”

After the dissolution of the Soviet Union in 1991, the Deep State faced its biggest threat: It no longer had a plausible enemy. Since then, it has brought the US jackboot down on a series of pseudo-enemies – all laughably inferior to the Pentagon.

But with all its firepower… all its superior military technology… and all its trillions of dollars in spending… did a single one of America’s wars since the end of the Cold War result in a clear or honorable victory?

Instead, one fumbled mess led to another. Enemies became angels; allies became devils. You’d think this would bring the American public to its senses. Maybe all this spending, blustering and bombing is not really paying off? Maybe it is creating more enemies than it defeats?

But that is just the point: For the plain people, a war is little more than a Super Bowl with mortal stakes. They holler and hoot for the Homeland team. They salute their heroes and hate the enemy, even when they’re not sure who the enemy is.

Those who do the thinking, on the other hand, have another agenda. They are just as happy with a defeat as a victory. Victory, and the peace that followed World War II, almost put them out of business. It is war, not peace, that pays. And war pays well.

The US “security” industry has about $1 trillion a year in spending power. You can buy a lot of votes with that kind of money. And you can build a lot of mansions in the Virginia suburbs.

The Deep State is now in charge. The fix is in.

American citizens ponder the weighty question which country to bomb/invade next

 

 

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Mon, 03/30/2015 - 17:38 | 5943535 LawsofPhysics
LawsofPhysics's picture

Perhaps, but in charge of what, exactly?

 

Mon, 03/30/2015 - 17:54 | 5943570 kaiserhoff
kaiserhoff's picture

The Deep State has lots of plates spinning.  I expect the sound of crashing china, any day now.

Mon, 03/30/2015 - 18:04 | 5943593 Creepy A. Cracker
Creepy A. Cracker's picture

"Candidate Obama was a critic of the war in Iraq; he promised..."

BWAAAAAAAAA!!!!!!   HHHAAAAAAA!!!!!!   HHAAAAA!!!!!   HHAAAAA!!! Haaaaa!!!!  haaaaaa!!!

Oh!... You believed something that Dear Leader Obama promised?  Yes, he is "fundamentally changing the U.S." into a third wold welfare state but other than that - Total liar.

Mon, 03/30/2015 - 18:08 | 5943610 roadhazard
roadhazard's picture

Just wait until Hitlery or BuchCo3 get the power. You will see why Obama got a peace prize I guarantee.

Mon, 03/30/2015 - 19:55 | 5943906 mkkby
mkkby's picture

This was horrible writing.  He introduces the term "deep state", but never defines it.  It turns into yet another laundry lists of complaints that we've heard 99 million times now.

Mon, 03/30/2015 - 20:17 | 5943958 Jack Burton
Jack Burton's picture

The Cliton Bitch is going to take orders from Israel. She is a Zionist, and her only concern is the growth of greater Israel and the transfer of US money and weapons to that state.

Mon, 03/30/2015 - 20:35 | 5944019 Remington IV
Remington IV's picture

" Hope and  . . . " ... oh , never mind

Mon, 03/30/2015 - 20:49 | 5944052 MASTER OF UNIVERSE
Tue, 03/31/2015 - 00:34 | 5944530 blowing winter
blowing winter's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Mon, 03/30/2015 - 17:38 | 5943536 unrulian
unrulian's picture

like a dog to a gut wagon

Mon, 03/30/2015 - 17:39 | 5943537 Usurious
Usurious's picture

I would argue that the Deep State has been in charge since November 1963

Mon, 03/30/2015 - 17:54 | 5943567 Ignatius
Ignatius's picture

They started with outright killing of Kennedy and now it's devolved into black-box "voting".

I now only vote when our owners give us a choice like legalizing weed or labeling GMOs.

 

Mon, 03/30/2015 - 17:56 | 5943574 El Vaquero
El Vaquero's picture

Before that.  It's depth started to rapidly increase around the time that the Fed was created.  FDR really increased it, then you had things like Operation Mockingbird in the 1950s.  A little known fact, the CIA and FBI didn't like each other back then, and J Edgar Hoover was a big time anti-communist.  So the CIA used Operation Mockingbird to go after McCarthy in order to undermine the whole movement as a means of keeping Hoover off of their backs.  The deep state was already in operation back then.

Mon, 03/30/2015 - 17:57 | 5943577 Ignatius
Ignatius's picture

He's speaking of 'the modern era', I think.

Murdering JFK was a real marker.

Mon, 03/30/2015 - 18:21 | 5943642 Billy Sol Estes
Billy Sol Estes's picture

Please read my book on who killed JFK^

Mon, 03/30/2015 - 18:04 | 5943594 will ling
will ling's picture

probably about right.

Mon, 03/30/2015 - 18:39 | 5943689 Macon Richardson
Macon Richardson's picture

A slight correction to what you say. Since the Kennedy murder was so immediately successful--execution, false trail, cover up--the deep state was already in control in November, 1963.

For anyone who was paying attention at that time, November, 1963 was when the Deep State came on stage and took a deep bow.

Twenty-three year old me was paying attention that month and it has made all the difference.

Mon, 03/30/2015 - 20:58 | 5944075 btdt
btdt's picture

on stage before '63. maybe no deep bows, but defintely on broadway already.

see general forerstal and general patton executions. mulitiple attempts on DeGaul

Mon, 03/30/2015 - 18:40 | 5943694 Consuelo
Consuelo's picture

I'll $see ya & $raise ya, Usurious:

April 9th, 1865.

Mon, 03/30/2015 - 20:19 | 5943963 Jack Burton
Jack Burton's picture

The DEEP STATE made it's first radical move to retain power in Nov. 1963. Since then the fear sown by that move has kept all the others pretty much in line.

Mon, 03/30/2015 - 21:49 | 5944215 samsara
samsara's picture

Yes but with a few booster shots along the way like Paul Wellstoned, etc

Mon, 03/30/2015 - 20:53 | 5944063 rubiconsolutions
rubiconsolutions's picture

"I would argue that the Deep State has been in charge since November 1963"

And I'd say it had its roots long before that, like when the tyrant Lincoln disemboweled the constitution.

Mon, 03/30/2015 - 17:39 | 5943538 TeamDepends
TeamDepends's picture

And they are going for the kill soon with Jade Helm- "Mastering the human domain".

Mon, 03/30/2015 - 17:45 | 5943553 ebworthen
ebworthen's picture

Hey, "Dancing with the Stars" is on tonight!

I hear you get college tuition paid if you sign up with the military!

Bombs away!  What did the Greeks know anyway!?  Plato? Is that some new kind of Gyro?

Mon, 03/30/2015 - 17:51 | 5943561 XqWretch
XqWretch's picture

It's a plate, full of gyros

Mon, 03/30/2015 - 17:48 | 5943558 Kaiser Sousa
Kaiser Sousa's picture

"here sheeple.....!"

                          "here sheeple.....!"

Mon, 03/30/2015 - 17:55 | 5943564 Chuck Knoblauch
Chuck Knoblauch's picture

Deep State = Shadow Government = COG

California = Israel

Texas = Iran

New Mexico = Iraq

Utah = Syria

Colorado = Turkey

Nevada = Lebanon

Arizona = Jordan

Mon, 03/30/2015 - 17:54 | 5943573 Pol Pot's Plant
Pol Pot's Plant's picture

The clip at the end is hilarious. They keep sticking the pin in Australia because it's labeled North Korea.

Mon, 03/30/2015 - 18:07 | 5943601 chunga
chunga's picture

It is funny. I had to do a double-take to make sure it was a spoof.

If it was real, the sad thing is it might be even funnier.

Mon, 03/30/2015 - 18:12 | 5943619 roadhazard
roadhazard's picture

They did a man on the street geography test at the U of Miami years ago but could as well be yesterday. Wanted them to point on the map of the US where Miami was. One guy said if he needed to know he'd look it up.

Mon, 03/30/2015 - 17:56 | 5943578 venturen
venturen's picture

can you show the incarceration rate of whites? I am not a racists...but the fact is that the black population of American for some reason believe they can act like they are still using African ethics. I know lots of great hard working very smart blacks. I also see a very large percent that...don't marry, don't get educated, commit crimes and die from outright stupidity. I don't know why....but the countries they compare against have almost no black populace. Add South Africa, Somalia, Nigeria, conga or other african country and you might see parallels! 

Mon, 03/30/2015 - 18:11 | 5943615 Kaiser Sousa
Kaiser Sousa's picture

great to c u r staying focused on the real important matters facing this bankrupt war mongering police state....

 

 

Mon, 03/30/2015 - 18:31 | 5943668 Seek_Truth
Seek_Truth's picture

Incarceration Rates in selected African Countries:

South Africa: 294 per 100,000 population

Somalia: 33 per 100,000 population

Nigeria: 33 per 100,000 population

Congo: 33 per 100,000 population

Next time, before posting a thought, you might want to do a little research before embarrassing yourself.

Oh, and "conga" isn't a country, it's a dance that originated in Cuba.

 

Mon, 03/30/2015 - 18:44 | 5943687 Kaiser Sousa
Kaiser Sousa's picture

ok...

now i see the connection to the US Shadow government theme in this post,,,

thanks.

Mon, 03/30/2015 - 23:04 | 5944392 venturen
venturen's picture

ever been to those countries mister smart guy.... You know what the murder rate in the South Africa is 31 per 100000? It is #11 for murders. USA is #111 with a murder rate 4.7. Ireland home of hot headed Irish and not many blacks is #180 with a rate of 1.2! The incareration rates are low in the countries you site as they don't have the money.  Most of the top rates of murder are black run countries in the Americas or Africa. My point is that using a stat that we arbitrary imprison people is absurd. Oh you got me on my misspelling of Congo, but who doesn't like a good conga....and yes I was lazy and didn't take time to research...I assume you have more time on your hands...good for you! We should be throwing a lot more people in prison...Jon Corzine, half of Wall Street, many in Washington....I like law and order! So that is my point...I don't think the greedy have a giant conspiracy....I think money does buy a lot of influence and yes there are senior money men pulling lots of strings....but they can go down like Dick Fuld in a heart beat!!

Mon, 03/30/2015 - 18:10 | 5943612 Pairadimes
Pairadimes's picture

Eisenhower pointed right at it in 1961. At that time it was primarily the relationship between the defense industry and government, as the end of sound money was still a decade away. But the pattern had been cut, and his warning fell on deaf ears.

Today, the deep state is many times the size and power it was then. The power of the military corporations has since been eclipsed by the banksters, who turned the end of Bretton Woods into the greatest fraud the world has ever seen, stealing trillions by purchasing silence from politicians for thousands.

Now that 70% of federal spending goes to entitlement programs, corporations from almost every major industry are now card-carrying members of the deep state, buying legislators of every stripe with their ever-growing pools of federal revenues, or the largess taken from hapless competitors with less effective lobbyists. The consequence of this change is that every part of the federal bureaucracy is now part of the deep state, colluding widely, and essentially without fear of the consequences of doing so.

The deep state of today is committed to maintaining the giant money machine the federal government has become. Using the manufactured threat of ISIS and terrorism in general, they continue to tighten their grip on our freedoms, borrow on our credit and build their public (and private) police forces against the day they inevitably take too much from the people. I hope that day is soon.

Mon, 03/30/2015 - 18:12 | 5943616 Lumberjack
Lumberjack's picture

And I would like to note that last place Iceland has bankers in jail...

Mon, 03/30/2015 - 18:43 | 5943702 cossack55
cossack55's picture

True. and Andorra now also.  It is not the number but the quality of the inmates.

Mon, 03/30/2015 - 18:14 | 5943624 dizzyfingers
dizzyfingers's picture

NSA shooting: 1 dead after 2 men dressed as women tried to crash gate outside Fort Meade

Mon, 03/30/2015 - 18:14 | 5943627 roadhazard
roadhazard's picture

Where are Russia and China on that chart besides not there.

Mon, 03/30/2015 - 20:41 | 5943722 Seek_Truth
Seek_Truth's picture

Here is an answer to your Google-challenged question:

http://www.nationmaster.com/country-info/stats/Crime/Prisoners/Per-capita

The good ol' USA- still #1 at incarceration and provoking and fighting wars on behalf of the elite!

Mon, 03/30/2015 - 22:00 | 5944241 seminal1
seminal1's picture

Authoritarian and totalitarian regimes like what exists in China don't bother with incarceration--they just permanently eliminate their undesirables! 

Mon, 03/30/2015 - 18:17 | 5943635 Peter Pan
Peter Pan's picture

There has always been a deep state in existence throughout all history and all nations. The degree to which it manifests itself is dependent upon the means available to the psychopaths and the degree of their psychopathic tendencies. By means I mean money, bureaucracy, technology etc)

Therefore we see two opposing camps. The psychopath who is willing to do anything to attain and maintain power and the volunteer who attempts to serve his fellow man in any capacity possible. And believe you me it takes a lot to get "volunteers" to rise up.

Mon, 03/30/2015 - 18:42 | 5943678 essence
essence's picture

Bill Bonner is a pussy.  "Deep State" my ass. That's just a euphemism for a behind the scenes cabal.  You know Bill, the same one that organized the founding of the Fed in 1913. Yes, they live!  Quit being afraid to openly admit it.

"Deep State" confers the connotation that it's just run amuck bureaucrats or seamy politicians on payola.

Get real or get lost.  There's an organized group at work here. It transcends generations. It apparently has an agenda beyond mere enrichment for its principals.   Again ... if you're too "Doug Casey" to admit the truth, then just go hide in your Argentinean backwoods moneypit.

 

Mon, 03/30/2015 - 18:42 | 5943700 Seek_Truth
Seek_Truth's picture

"To learn who rules over you, simply find out who you are not allowed to criticize." - Voltaire

Mon, 03/30/2015 - 18:58 | 5943757 22winmag
22winmag's picture

That sir, is a harsh indictment.

Mon, 03/30/2015 - 18:45 | 5943701 22winmag
22winmag's picture

Some folks got deep stated.

 

All these airplane crashes and disappearances are not coincidental. Besides the JFR Jr. crash in '99 (solved on live TV by the Pentagon in about 15 minutes??? Really?), I can think of about two dozen other crashes past and present that had political and financial benefits.

Mon, 03/30/2015 - 21:10 | 5944102 VWAndy
VWAndy's picture

Will Rogers. A great man. an good with a rope too!

Mon, 03/30/2015 - 21:45 | 5944200 samsara
samsara's picture

He was 'Wellstone'ed

Tue, 03/31/2015 - 16:12 | 5946443 Austrian Peter
Austrian Peter's picture

As documented by www.johnperkins.org

 

Mon, 03/30/2015 - 18:49 | 5943716 MEFOBILLS
MEFOBILLS's picture

Nixon went off of the Gold standard due to deficit spending on Vietnam war.  The dollars cycled overseas to pay for bases, and to demand resources of host countries.  This inflated those economies, and the dollars then found their way to a Western central bank.  From there the dollars would come back to America to buy Gold.  This then drained the Gold supply, which in turn undermined the base of American Credit money system.  Remember, in a fractional reserve credit system, private credit is issued on top of Gold in a 10:1 ratio.  Therefore, the draining of Gold has a magnifying leverage effect suppressing private credit loan formation. However, TBills were also held as bank reserves, so the loss of Gold in private banks was not too extreme to the private economy.

When Nixon went off Gold standard, he dared the America’s allies to buy American main-street goods.  The allies instead took their surplus dollars and bought T-Bills.  They refused to buy goods, because to buy goods meant one less car, or widget created in their local economy.  This then unbalanced the economy from general goods production as the path of returning dollars was spent mostly by government.

 Buying of  TBills meant that the returning dollars bought a debt instrument.  Said dollars then were spent by government, especially if government made new TBills to swap for the dollars. Often this spending went into military industrial complex, in what became a big loop.  This was the birth of the Washington Consensus economy; otherwise known as the TBill economy.

Gold is not the answer; it is part of the problem.  Other, better accounting means can be used to balance trade, such as Keynes bancor. 

“Aristotle, money exists not by nature, but by law.”  Gold is not lawful money; it can only be made lawful by a stamp  -  in effect making it a form of fiat.

 

There is some evidence that Nixon tried to modify Savings and Loans to issue Lincoln style Greenbacks.  This plan is suppressed by history. Watergate was an attempt to get the dirt on the FED, especially as  FED had records on the fourth floor.  Nixon is one of the first to go against up against Kabala money powers and not be murdered, he was defamed instead.  Private money powers go absolutely beserk when it comes to law based legal money.  They are silent on Gold, because it has been very good to them throughout history.  Tracing roots of Austrianism, we also find ancient money powers funding this movement as dialectic.   

Mon, 03/30/2015 - 19:13 | 5943799 Womb Service
Womb Service's picture

"This then drained the Gold supply, which in turn undermined the base of American Credit money system."

"Gold is not the answer; it is part of the problem."


Sounds like Bankster "credit-money" backed by coercive force is the issue.

A free market for money would solve 95% of the world's problems.

 

 

Mon, 03/30/2015 - 20:24 | 5943986 essence
essence's picture

MEFOBILLS --- You were doing well in your first paragraph. Then you ran off the rails.

"When Nixon went off Gold standard, he dared the America’s allies to buy American main-street goods.  The allies instead took their surplus dollars and bought T-Bills."

Not really.   The U.S. bought more than it sold. USD built up in those countries. The central banks had a choice of exchanging that surplus of USD for their own local currency in the FX market (that would have appreciated their own currency and meant the local exporters had a more difficult environment).  Instead those CBs bought Treasuries with the surplus USD (to garner interest that USD cash couldn't match) and keep their own local currency low in value compared to USD.

You were correct though in stating that foreign buying of Treasuries had the odd effect of not only goosing US gov financial  position (someone was buying its debt and that meant more $$$ available for politicians to pander with) ... in addition to ALSO being counted as a gain by those foreign countries (they then had Treasuries to hold and count as assets).    French economist Jacques Rueff was all over this double counting of assets aspect of unfairness way back when.

-----

I take serious issue with your statement "Gold is not the answer; it is part of the problem"

Do realize that most all of the previous Gold Standards were compromised from the get go. In fact, just categorically stating "Gold" is not the answer shows ignorance. Which Gold standard are you referring to?  The pre WW1 standard?  The post WW1 standard? The post WW2 (Brenton Woods) standard?  People ... you, martin armstrong, whoever, shoot their mouth off about Gold and Gold standards and don't follow through with a coherent critique about the individual failings of previous standards, their merits, faults, the all important political restrictions inherent in the initial drafting of that particular Gold Standard and why it subsequently failed (because of being hobbled initially due to cronyism constrains).  As always, the devil is in the details.

Gold may or may not have a place in a future financial system. It depends on factors probably being fought on a level beyond the everyday man.
One thing is for certain though,  China seems to think it has a place. And when the ascending 800 kilo gorilla thinks so, that's a force to be reckoned with.

 

 

Tue, 03/31/2015 - 16:10 | 5946440 Austrian Peter
Austrian Peter's picture

Well said, there is much more to this than we can possibly conjecture.  All I know is that PMs are real and fungible as a store of wealth as history tells us....nuff said for now

Mon, 03/30/2015 - 20:52 | 5944061 btdt
btdt's picture

really, you would be happier over on a fan site for ellen brown.

"...

Tracing roots of Austrianism, we also find ancient money powers funding this movement as dialectic.  

..."

really, do tell.

 

 

Mon, 03/30/2015 - 18:53 | 5943728 Consuelo
Consuelo's picture

"Americans voted for Barack Obama in 2008 because they wanted a change from the Bush-era policies."

WRONG.  (but he knows it...)

'Americans' voted for Barack Obama in 2008 because they had been effectively marketeered towards assuaging their guilt (real or perceived) and purging their 'inherent racism', by voting a (half) Black man for president.   It was nothing short of public relations Mastery how that whole thing was pulled off - not once, but TWICE.   Not to mention the employment numbers chicanery that came around during re-election time.   Total F'ing Farce, and the only reason we haven't gone full authoritarian retard is because a big ship has to take on a lot of water before it Sinks...

Mon, 03/30/2015 - 22:46 | 5944351 ersatz007
ersatz007's picture

Speak for yourself.

Mon, 03/30/2015 - 18:58 | 5943755 blindman
blindman's picture

relinkin' from manipulism ..
.
Caravan To Midnight - Episode 250 Patrick Wood: Technocracy Rising
https://www.youtube.com/watch?v=H7QlOTi86Nk&feature=youtu.be

Mon, 03/30/2015 - 19:22 | 5943822 MEFOBILLS
MEFOBILLS's picture

King Numa of Rome was a contemporary of Sparta’s Lycurgus.  Sparta in turn used iron disks called Peleanors.  They were dipped in vinegar to make them useless as commodity metal money.

The Peloponnese wars were in large part due to debts built up by Athens, who were being harvested by “International” silver money powers.  These silver money powers were Aramaic speaking Jews, who were identifiable because they looked different from Greeks.  Jews would sit on outdoor benches in Athens, and try to get Greeks into silver debts.  Greeks wanted silver debts in order to by foreign luxury good.  Usually it was men who wanted luxury goods for their wives.  Silver debts were generational, which meant that your children could be harvested into slavery during depressions for debts incurred by their parents.  These depressions were manufactured, as physical silver could not be mined in volume sufficient to keep up with multiplying clay ledger (abstract) money.  Intangible abstract clay ledger money would try to recall silver, and when it couldn’t - the population, especially farmers were enslaved.   Former Greek farmers died by the thousands in silver mines.  It is no accident Jesus was killed for silver debts.  It is also no accident he was killed soon after overturning money changers tables, and then whipping them.   Yes, whipping them – the only time Jesus got violent.  Money changers were taking usurious rents on their fellow Jews, by taking stamped legal Roman coins in uneven exchange for unstamped precious metal coins good for the temple.

Swapping in uneven exchange is usurious and part of banker magick, and only good law can restrain this impulse in man.  Jews in particular, use this rent mechanism to self-aggrandize their in-group at the expense of others, even though their religion warns them not to. 

Rome had law based money from the very beginning around 790BC.  Plutarch recounts this in his book “Parallel Lives.”

Lycurgus of Sparta made it illegal to use gold or silver as money.   This system worked for 3 ½ centuries.  Once Sparta started military campaigns of foreign conquest, they captured large amounts of gold and silver, and that was the beginning of Sparta’s end.

Rome learned from Sparta and used Bronze money, which was fiat based on law, and was not evidence of debt.  Nor was bronze confused as some sort of wealth intrinsic to some sort of magical metal properties.  Think of Bronze as paper of the time.  Bronze money was volume controlled and let Rome advance quickly.  Rome’s legal money system delivered people from slavery and gave jobs as people could now evenly trade their output without being harvested.  Division of labor increased due to law money, so the economy became efficient.

 

This legal Bronze money of Rome, meant they were monetarily isolated.   Rome continued to run up against the Oriental (middle eastern, especially Jewish) metal systems, and when Rome finally adopted precious metal, it was their undoing.

Tue, 03/31/2015 - 15:53 | 5946361 Austrian Peter
Austrian Peter's picture

Again a very interesting and informative history lesson, thank you for taking the time and effort to explain some points about money as legalised tender or currency.  There is no doubt that we need both gold as a store of wealth and a legal currency with which to trade.  As you say, when gold or PMs are used for trade then this is when the problems begin.

The issue of currency needs to be controlled as measured against the productive economy within a free market environment - this works.  History however tells us that all legalised money is held captive to the greed elements in any society when the rich and powerful owners of wealth (production) compromise the issue of currency and inflation is the result.  I can't go into detail here, but suffice to say that I have written a short pamphlet about all this which might be published at www.harrogateagenda.org.uk in due course.

 

 

Mon, 03/30/2015 - 19:42 | 5943873 JR
JR's picture

“Radical Islamic thugs”? Oh, for an honest man.

“The reality is that Israel is our biggest frenemy. …

“For years, the War Party has been accusing Tehran of running a secret nuclear weapons program, although no convincing evidence of this has ever been produced. The Israelis and their international assets – notably the MEK terrorist group – have done their best to doctor up convincing forgeries, albeit to no avail. They’ve run all kinds of interference in order to prevent the normalization of US-Iranian relations. Their goal: to ensure that Israel’s regional monopoly on nuclear weapons remains intact.” – Justin Raimondo, Antiwar.com

“The Sunday Times yesterday (March 29, 2015) reported that fears are intensifying of a new nuclear arms race in the Middle East. However, it failed to mention that to designate the Middle East including both Iran and Israel as a Nuclear Weapons Free Zone (NWFZ) – as already proposed by EU governments – would obviate this risk, at a stroke.

“Unfortunately, a resolution to this effect has fallen foul of the pro-Israel lobby and its U.S. veto in the United Nations, for the obvious reason that it would entail the State of Israel in declaring its secret nuclear arsenal – the only such nuclear stockpile in the world – estimated by American scientists to hold up to 400 warheads, enough to wipe out the whole Middle East.” – Anthony Bellchambers, Global Research

http://www.globalresearch.ca/as-deadline-approaches-urgent-imperative-is-for-both-israel-and-iran-to-subscribe-to-a-nuclear-

http://original.antiwar.com/justin/2014/11/23/israel-americas-biggest-frenemy/

http://original.antiwar.com/justin/2015/03/29/the-real-axis-of-evil/

http://original.antiwar.com/justin/2015/03/03/bibi-wants-war/

Mon, 03/30/2015 - 19:52 | 5943900 MEFOBILLS
MEFOBILLS's picture

Rome tried to unify the Italian Pennisula.  It took until 266 BC for Rome to unify it into a commonwealth – just in time to face Carthage’s growing power.

Carthage was an Oligarchy started in 9’th century BC, located where present day Tunisia is.  Carthage was Semites (speaking Canaanite Hebrew) who enslaved local north African’s to grow food and serve as slave labor.  Carthage also was predatory in that they would interdict local shipping in order to pirate their gold and silver.

Carthage never developed a manufacturing industry, but maintained a powerful Navy to enforce her trading relations.    Carthaginians made their profits as middlemen in finance. 

Rome’s law based money system was destroyed in the Punic Wars.    These wars put tremendous stress on Rome’s Republican Institutions. 

After the second Punic war, and Hannibal’s rampaging elephants, Rome could no longer insulate her currency from the ravages of silver.

Rome issued the silver Denarius in 214BC largely in response to Carthage’s money manipulations of Rome’s economy.   Rome’s legal money could be de-monetized when an enemy sacked a Roman town. This was done simply by re-issuing a new money coin.   When Rome went Silver, and then later Gold, they fell under the spell of the Orient and their master money manipulators.

It is no accident that Rome moved East toward what was Byzantium and is now Istanbul/ Constantinople.    The Bosphorous is a strategic point where silver would move east, and gold would move west.  Jewish led caravan routes had to cross the Bosphorous, so this choke point became necessary as Rome in its later years became confused by money and considered it metal, rather than a legal construct.  It cannot be overemphasized that the exchange rate between silver and gold was the chief mechanism enslaving mankind for thousands of years.  Also, consecrating metal in vaults deprived labor of money they needed for exchange.

These Caravan Jews are discovered in history as the Apiru (Hebrew), and always stayed on the outskirts of the great cities, plotting to tear said cities down and insert themselves as a parasite.  Roman’s had no idea of this money power group and what their real power was.  Racially, Aipiru were heavily Neanderthalic mixed with Cro-Magnon man.  Apiru metal money and their stories may well indeed spring from a mind genetically different than that of high trust Cro-Magnon’s.

 

The greatest depression, the dark ages, were largely over after the fourth crusades when the town was sacked and metal was released from vaults in Byzantium.   Fourth crusades also created a schism between Orthodox Christians and Catholic.

Tue, 03/31/2015 - 15:35 | 5946290 Austrian Peter
Austrian Peter's picture

Good history thank you and your thoughts on racial divisions are very interesting.  There is no doubt in my mind that some serious hidden agenda are abroad these days and soon it will be revealed as to who are the masters of money when the final collapse comes - 2008 was a taster.

Mon, 03/30/2015 - 20:34 | 5944012 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

The deep state would like the masses to think they are in control, but in actuality I am always in control. In brief, the Emperor has no briefs or boxers because the Emperor has no clothes as usual. Moreover, the deep state emanates out of the Council on Foreign Relations which was essentially rendered defunct in March of 2008. Notice all the military base closings since that date. Take a gander at the 28 successive business quarters of contraction and then take a look at all the BIG Box Ponzi schemes that are now unworkable in light of the trend towards the 'Unconsumerist'
Era of Quantitative Easing. Frankly, 'deep capture' by the 'deep state' is laughable in retrospect of Bear Stearns, Lehman, Chase, AIG, Fannie, Freddie, Sally, and twenty million other entities [banks] that were nationalized or bankrupted in the wake of 2008. One cannot spin reality when it bites one in the arse, America.

Mon, 03/30/2015 - 22:56 | 5944374 Fix It Again Timmy
Fix It Again Timmy's picture

The Deep State started with the OSS during WWII and has acted like a rabid dog ever since....America has never been what you had thought it was....

Mon, 03/30/2015 - 23:19 | 5944419 MEFOBILLS
MEFOBILLS's picture

To my detractors who love Gold:

I can only find two instances of Gold working in all of monetary history.

Venice prior to 1200.   They forced people when entering their domain to put Gold into their state bank.

State bank was originally forced into existence during threat of war, and the rich left their money as a permanent inheritance.  This ledger money passed without wear as ink and digits on ledgers.  Gold was transferred to the bank, where it became numbers.   From there it refuxed back out as payments to bank employees.

It then entered into the money supply and often left Venice.   Venice could always recall the Gold with their superior industry as they had a trade surplus.  Trade surplus in turn was enabled by their efficient canal system and cottage industry.

Another time was the Hanseatic League.  However when the Italians started issuing Credit (learned from the Jews and improved on), this credit would call in Gold, and Hansa were undermined. 

Money pays credit, but not vice versa, and this is why Credit Bankers end up owning the Gold Supply.

A Gold system could probably be designed to work, but why bother?  Money isn’t metal.  People are hypnotized by it because it is shiny and doesn’t rust.  They want something to hold onto that is stable and doesn’t move.  That isn’t how the universe works.  The universe is dynamic and in motion.

The history of Gold is bloody and it is depressionary.  This is the verdict of history, not my say so.  It hides at the first sign of stress.  It cannot flex to the S shape of a normal economy, especially during agricultural seasons.

After thousands of years of evidence, we see people still clinging to metal as money, is quite disturbing.  These dialectics, funded by usury out of banking, have a powerful hold on man’s mind.

Trace the roots of Austrianism - it is a dialectic.  The original funding came out of money power agents. 

 

The plain facts of the matter are that money has many attributes, and said attributes have to be controlled by law.  Any money system must have morality encoded in it.  

Tue, 03/31/2015 - 01:19 | 5944599 damicol
damicol's picture

You clearly have no idea how gold works  for those who do use it.

On my  birthday my father gave me a 1986 fresh minted 1 oz gold eagle, and said me that I should not only keep it but make it the first of  many, in fact  the more I accumulate the richer I will be because no one can take those away from you.

An ounce of gold was an once of gold yesterday, last week last year and last century, and it will still be one ounce  next week next year and next century.

The same applies to other PM's too

I run a business, and in running that business I consider all things, fiat and its rise or fall against gold, I measure all currencies  against gold and never the other way around.

Since I first started in business I geared  everything to the accumulation of gold, (actually platinum ans silver too too) and the way to do that is to first export all profits, easily accomplished by the simply setting up my own private outsourcing company offshore. A simple contract and SLA removes all profits and in fact a little more so a small loss is always present in the accounts.

The profits then get invested by way of a an agreement to manage and management contract with a third company also happily located in a tax haven.

And converted to physical gold. or other PM's

And as gold can be collateralized to any fiat on earth, it is a simple process to borrow fiat  to finance through  private loans from the tax haven company, the operations of my company and the outsourcing company.

Also to buy whatever I might need personally as a need for actual salary is obviated and a further tax saving.

The quantity of gold has grown at a compound rate of  just over 14% per quarter, since it was started with and at 8.9% in the last quarter when all accumulated cash is used to buy gold.

Using a maximum of 40% of the gold to collateralize fiat to fund operations,  and actually never once reaching a level as high as 30 % and consistently falling as gold quantity grows, it guarantees, without fail, that no matter what happens gold holdings  never ever reduce and can only ever increase.

The gold acts like a private bank, and a safety mechanism.

If a fiat rises too high as is the case with the $ now, the amount of $ available without exceeding the gold collateralization limit is reduced, and that means simply that I should reduce doing business in US $.

When a fiat falls against gold the opposite is true.

Either way way whether business grows or declines it is always done in a way it can never go negative or gold accumulation stops.

Of course it is easy for me now to set up the same system for friends and other business friends so they can do it, and make a good return on that too and increasing rapidly as more  SME's see the potential for them.

But your fiat is never guaranteed to grow, it can plunge like the worthless fiat trash voucher, the euro, or like a Zimbabwe $

the bankers will steal its value from you year in and year out and the only possible place you can put it is in a bankers bank to be further taxed and  degraded, whilst paying you a pittance.

i have no idea how much gold I will ultimately own, before I die, and I never need to cash it in for any fiat, as gold is so easily convertible.

It can certainly be said that fiat will never rise high enough that I could never borrow enough of that fiat to not live comfortably.

Same for my children, who will inherit the same availability of cash in any fiat and still have no inheritance taxes  to diminish the gold quantity.

You stick to your ponzi fiat, I will stick to  my PM.s

If you think about it carefully, you start to begin to have the faintest stirrings of understanding as to why central banks  still insist on buying gold, or at least the most enlightened ones.

You see, they understand what gold is too even as clowns like you profess to "know" the opposite.

 

 

 

 

 

 

Tue, 03/31/2015 - 04:30 | 5944723 Batman11
Batman11's picture

No one has told you about the US Government confiscating private gold in 1933.

 

Tue, 03/31/2015 - 10:04 | 5945173 damicol
damicol's picture

Oh yes I have.. Its why its not in the US as clear;y stated above.. Its off shore

Tue, 03/31/2015 - 15:27 | 5946247 Austrian Peter
Austrian Peter's picture

Congratulations, you are one of a very few I know who have any idea about money, gold and how to handle it.  I learned similar in S.Africa and my own business was run along similar lines.  Once one understands the banksters methods it is not difficult to work around them as you have demonstrated.

You must be a fan of Jim Sinclair?

 

Mon, 03/30/2015 - 23:30 | 5944437 MEFOBILLS
MEFOBILLS's picture

By the way, a sovereign money system if done right, will inject into the base of the population. Another way is into channels of production, especially the commons.  Improving the commons improves civilization.  What could that 12T of QE money done if it is was permanent floating money and injected into labor at the base of the population?  

 

From then on, the injected money as numbers floats in the money supply.  This action is similar to how Gold Bugs imagine Gold Behavior. Only Gold doesn't act like they think it does.

Once the money is released, Government can only recall it with taxes.  Since it came into being freely, without debt, that means a substantial portion of money supply is not draining into leger.  This money then acts as a permanent inheritance so people can trade their output fairly.

I know I say things that grate on some ears - sorry about that.  I'm not trying to make friends, just state a view that I think comports with all of monetary history.  If any economist has ideas that are contrary to actual history, then they should re-evaluate their thought paradigms.

 

 

Tue, 03/31/2015 - 09:21 | 5945063 Reaper
Reaper's picture

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