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Central Planning and Crony Capitalism Have Bankrupted the Financial System
For over 30 years, sovereign nations, particularly in the West have been buying votes by offering social payments in the form of welfare, Medicare, social security, and the like.
The ridiculousness of this should not be lost on anyone. Politicians, in order to be elected, promise to allocate taxpayer funds on social programs that will benefit said taxpayers down the road (we’re simply talking about social spending, not infrastructure or other costs.
The concept that taxpayers might simply just keep the money to begin with never enters the equation. And because everyone believes that they are somehow spending someone else’s money, they play along.
When you believe that you are spending someone else’s money, it’s very easy to write a blank check, which is precisely what Western nations have been doing for years, promising everyone a safe and secure retirement without ever bothering to see where the money would come from.
When actual bills came due to fund this stuff, Governments quickly discovered that current tax revenues couldn’t cover it… so they issued sovereign debt to make up the difference.
And so the bond bubble was created.
The large banks, that have a monopoly on managing sovereign debt auctions, were only too happy to play along with this. The reasons are as follows:
1) They can use these alleged “risk-free” assets as collateral to backstop tens of trillions worth of derivatives trades. A $1 million investment in your typical US Treasury can backstop over $15 million worth of derivatives if not more. The profits from the derivatives markets remains a primary source of revenue for the banks.
2) Sovereign Governments are only too happy to bail out the big banks if the stuff ever hits the fan on the trades that are backstopped by the sovereign debt (see 2006 onwards). Since the banks are the ones holding the sovereign debt, they can always threaten to dump bonds, which would render the whole social welfare Ponzi bankrupt (see what happened in Europe when sovereign bonds collapsed in 2011-2012).
3) In a debt-based financial system such as the current one, sovereign bonds are the senior most assets in the system. Those who own these in bulk are at the top of the financial food chain in terms of financial, economic, and political clout.
Since it was rarely if ever a problem to issue sovereign debt, Governments kept promising future payments that they didn’t have until we reach today: the point at which most Western nations are sporting Debt to GDP ratios well north of 300% when you consider unfunded liabilities (the social spending programs mentioned earlier).
Now, cutting social spending is usually considered political suicide (after all, the voters put you in office in the first place based on you promising to pay them welfare payments down the road). So rather than default on the social contract made with voters, the political class will simply push to issue MORE debt to finance old debt that is coming due.
The US did precisely this in the fourth quarter of 2014, issuing over $1 trillion in new debt simply to pay back old debt that was coming due.
This is how the bond market becomes a bubble. Between 2000 and today, the global bond market has nearly TRIPLED in size. Today, it’s north of $100 trillion in size. And it’s backstopping over $555 trillion in derivatives trades.
There is literally no easy fix to any of this. The pain will be severe. And so everyone in charge of the important decisions (the political elite, the big banks, and the Central Banks) will push this as far as it can possibly go before taking the inevitable hit.
The fact that Central banks are now openly cutting interest rates to NEGATIVE should tell you how far along we are in terms of funding problems (at these rates, bond holders are PAYING the Government for the right to own bonds). From a baseball analogy we’re in the late 8th, possibly early 9th inning. When the game ends, the entire mess will collapse. And it will make 2008 look like a joke.
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'...we arein the late eigth or early ninthg innings...'
I think we will go deep into extra innings...
Two sides of the same coin. They enable and authorize each other
The ridiculousness of this should not be lost on anyone. Politicians, in order to be elected, promise to allocate taxpayer funds on social programs that will benefit said taxpayers down the road (we’re simply talking about social spending, not infrastructure or other costs."
No doubt about it.
But, there is much more to this story facing us, and it's not just the government who's the culprit either. Shortsighted western (especially American) corporations have greatly contributed to INCREASED popular need for social spending, AND SUBSTANTIALLY REDUCED the means by which society pays for it: taxes.
Taxes come from income, and given the myriad of loopholes in our tax code pleasing this constituency, or that lobby, the taxes collected never have a chance to match the spending, be it on social welfare programs, or bloated government agency and defense budgets.
No one wants to cut anything either.
So, on top of everything else, western middle class incomes have taken a beating vis a vis global outsourcing, and THAT has fatally damaged consumer spending and tax receipts. It is bad enough to bloat federal/state spending beyond tax dollars collected. It's another to ALSO destroy a citizen's MEANS to help fund it. High-paying jobs lost for the last 40+ years means substantial revenue lost too.
When you add in the diversionary and anesthetizing credit binge Americans were enticed into for the last 10 or so years, and couple that with our insatiable appetite for expensive foreign affairs enterprises all over the American hegemonic globe, it's easy to see just how badly we're in it.
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Someone said elites?
https://hipsterracist.wordpress.com/2014/09/27/the-nature-of-our-elites/
Yes, they do have Eyes Wide Shut style sex parties, but you don’t even have to be particularly elite to get invited to those – all you got to be is either a) good looking or b) rich. I know, I’ve attended more than one lol. Yes, hot women are paid to be there. Yes – oh yes – women are very “practical” and you have no idea how common a sort of “soft prostitution” really is – just read up on all of those “sugar daddy” dating services.
I remember one, I got a blowjob from this super hot light skinned Latina, probably 19 or so. She was sitting in front of me, but wouldn’t let me touch her pussy, so I was just sort of rubbing her amazingly, stunningly perfect tits, and stealing a little grope between her legs now and again, and she would sort of slap my hand away. Good god I cannot tell you how hot that was. There were probably 100 or so people there, all in one room. And wow, she sucked my dick like a pro too. Amazing. Sigh. I have to admit, I really, really, really enjoyed my previous life as a relatively good-looking, overpaid Little Eichmann in NYC. Another, in California, I had a threesome with two very nice looking white girls, neither could have been a day over 20 years old, one blonde, one black haired. I actually had a thing for getting a bj from two girls at once for a while.
The problem with that sort of sex is that it becomes very, very addicting, just like a drug. It’s a “super-normal stimulus.” There’s a Lincoln quote that goes something like, most men can handle adversity, but give a man power and he will reveal his true character. Think of it – 29 years old, good looking, more money than you know what to do with, and thousands of extremely attractive women from 18-30 moving in and out of Manhattan every day. Add on a serious case of PTSD and a common attitude among everyone that you’re living essentially the day before the End of the World, and there’s nothing to do but party.
And wow – did I ever party. I started this blog just so I could tell these stories psuedo-anonymously, and I pretend they are fiction because I figured no one would believe them anyway.
LOL – so there is this certain Jew politician – you would likely recognize his name. I met his daughter at a fundraiser and totally picked her up. She was pretty good looking and had a great rack. Jewish girls give the best head, I don’t know why that is, but they all seem to love it.
Basically, the rich guys have all sort of girlfriends that are pseudo-paid, and they will share these various girls with their friends. That’s how the parties seem to work. If you “own” a girl, you bring her and that’s sort of your ticket in.
Two sayings: “you can lose a lot of money chasing pussy but you’ll never lose pussy chasing money” and “power is an aphrodisiac.” I honestly did not realize how different my life has been from the average white man, mostly due to just random chance. I was born in Washington DC, the son of a military intelligence bureaucrat, a scientist. My buddy in school was the son of a very highly ranked CIA official. And our family socialized with a vast number of very high-IQ white men that all knew math and computers … and worked at the NSA!
I started “infiltrating” various leftist groups in college. I’ve hung out with the “official” anti-fa types (it’s populated by hard core Zionazis running everything, and usually mentally ill, one-step-away-from-homeless white druggies) EarthFirst! and various Marxist cults. I just had a system – I’d show up, spout some typical lefty rhetoric, and flirt with the girls. The left wing activist movement has provided me with free pussy since I was 22 – and don’t get me wrong, some of those girls are uber-hotties. My buddies and I gang banged a Greenpeace chick from Oregon once – she fucking loved it, trust me. I was fucking her mouth while my buddy was fucking her pussy while my other buddy was feeling her up. She came many, many times that night and was quite appreciative the next day.
*Sigh* – when I said I had sex with 50 women, I was just counting the “regular” girls – my girlfriends, dates, girls at bars, etc. If you count the “party girls” – um, it’s probably three times that. What can I say? I’m not suggesting the lifestyle to anyone else, I’m not saying it’s good for humanity or anything. I’m just saying, I’m a sex fanatic. I can’t help it, I’ve always been that way.
Women are freaking easy and they love sex – and women are way, way, way kinkier than men are. It’s not even close.
So, if you’ve never been a relatively good looking white man with a lot of money – you should try it some time. I highly recommend it.
I’m not even a particularly good racist, because I have had sex with women of every race. Yes, even a Negress, plenty of white/whiteish Mestizas, more than a few Asians (although I really never got the appeal, I’ve never really been into the “yellow fever” thing. There is simply no comparison to white women; white women are, by far, hands down, not even close, the hottest and most beautiful women.) And yes – oh yes – part of the enjoyment – part of the hotness – was that I was a White Man “conquering” all those other race’s women.
There was this one Mexican girl … I fucked her maybe fifty times over the course of six months. She was really tiny, totally shaved her pussy bald, and our routine was she would sit in my lap, I’d stick my face in her boobs, and she would just ride me like that. Eh, maybe 22 years old, I would guess.
I was pretty slutty in high school and college, but it seemed perfectly normal. But once I started making money, girls would just throw themselves at me. Some of them were just regular, normal looking girls, not models or anything. But I am fairly confident that many of them would be considered “9s” or “10s” by most of the white men (and women) that read this blog.
I guess the point is, men who have *power* – whatever that power entails, be it money, fame, or status – get pretty much whatever they want. From women, certainly, because women are turned on by power more than anything else. I actually suspect women would rather fuck an average looking but powerful man than a poor male model type. (But I’m not sure about that, any women who still read this blog can chime in if they want.)
Well, the point is, I have almost certainly bedded more women than anyone reading, so I really do consider myself an expert on this. And the funny thing is, while I am not bad looking, I’m really just an average white guy. I was making over $100,000 a year from the time I was 24 or so. I moved from city to city, chasing money, and I had skills that were very portable; essentially I was a “consultant” because I had learned some relatively obscure and esoteric computer stuff that companies would pay for. Also, I cleaned up in the computer business because I’m not at all “nerdy” or “geeky” or fit that stereotype, I’m actually quite sociable.
It didn’t help, though. 9/11 happened, and I knew that I wasn’t allowed to talk about it, so I didn’t. In many ways, it was because I was cowardly. I figured, it wouldn’t do me any good to become a 9/11 Truth activist and it would cost me my cushy job. But also, to a very serious and real degree, I was also in fear for my life. It was obvious that they blew up the buildings, so if these people would kill thousands of their own co-workers, doing something horrible to some random young white guy would be an afterthought.
So, you know, I kept my mouth shut and just enjoyed the free pussy. I figured it was all bullshit anyway. Certainly, I was – to say the least – very unimpressed with the average “conservative” white man – who during the Bush administration was essentially nothing but a whore for Israel anyway – including most of the White Christians. Jews *hate* White Christians and hold them in contempt, but White Christians just *LURVE* them some Jews, they line up to join the military to fight the Jew’s enemies.
And while you were fighting wars for Israel, and while you were paying your taxes and living next to ghetto blacks, I – and plenty of my Jewish equivalents – were fucking your daughters in hilariously degrading ways and making money from your taxes. You, eventually, bailed out our companies after we spent a decade exploiting you – and I cannot stress this enough – your daughters.
Don’t worry though, I’m paying for my sins. I had to flee the country because at the end of the day, I didn’t want to play ball with these people. I am essentially a political asylum seeker.
But if I were to die tomorrow, the story of one year of my life would be far, far more interesting that the story of your entire life. At the end of the day, that’s what it’s all about.
And yes – I do have a kid, apparently. If I do live long enough, I’m going to actually meet him someday. I’ll tell him the truth – he comes from a long line of, er, “adventurers.” My great-great-great-* grandfather was one of the original settlers of America, our family has been in America since the 1600s. We are not “immigrants” – we are conquerors, warriors, slavers, and settlers. We did not immigrate to America – we created America.
And I had to leave because another tribe conquered us, apparently.
Discuss..
Your crassness just barely overpowers your arrogance.
Crap!
Indict all 535 morons + Criminal-in-Charge for fraud, treason
Like those taking out loans and getting paid to do so at negative are less dangerous than high yield?
I would chalk it up to greed, theft and no enforcement of laws.
It's Painfully Obvious just How Fucked-Up and Broken Down the "Financial System" is when Paraplegics/Quadriplegics have Medicare Deny Approval of a New Wheelchair when the Nine Year Old Fucked-Up and Broken Down wheelchair is in Need of a Replacement!
The Croney Capitalism part is Painfully Obvious when They say, "But a Shiny, Brand New Electric Powered wheelchair IS Approved'.
Fuck Them! I shall be Forced to Pay Cash for a New Chair!
I'd better just get used to it...
I am ignorant, but I have seen free wheelchairs through craigs list free, in the past. You might be able to post a request. Best wishes.
Thank You for thinking of me but they aren't one size fits all. I broke my neck in a diving accident and searching the web is not realistic.
I use a manual wheelchair with a "Power-Assist" feature. Gotta drop $5,000 on a WC Dealer. It's really the only way to get the custom fit that I need. This at a time when it Really Hurts to unload some bullion!
You Have a Great Evening!
I have learned my lesson! I shall never again post personal info about myself. There are too many pathetic people with no real experiences in their own lives, jealous because even with my disability I finished college, worked, travelled three continents, and learned far more than they will ever learn in their entire lives. Hell, I've even been to Machu Picchu! I do not care what they think.
Viva Villa!
"....welfare, Medicare, social security, and the like".
By "the like" u probably mean the trillions that Hank Paulson, Tim Geithner, Ben Bernanke, J Yell, Jack Lew, and the ultimate stinky breathed, Alan Greenspan, handed over, no questions asked to the likes of AIG, Goldman Sucks, and the rest of the Socialists who demanded that they be made whole for their boneheaded bets on the Mortgage Backed Securities fraud they themselves perpetrated.
Right?
They are All Whores! No Socially Redeeming qualities Whatsoever, just Whores!
"...promising everyone a safe and secure retirement without ever bothering to see where the money would come from."
I think the author means: "...without ever bothering to see where the 'production of goods and services' would come from." We know where the money (not backed by produciton) will come from; The big printing press in the sky.
If Central Banks can arbitrarily reduce interest rates to make their books look good why can't we do it too? Fair is fair IMHO. And another thing, I want the same overnight lending rate too, and where is my bonus, God damn it?
Socialism for the rich, eh?
I would love to see these Socialist money whores act like real Capitalists for one trading day, frankly.
The Federal Reserve will eventually be discredited and dismantled. The Keynesian model is collapsing and the public will one day realize that the Emperor has no clothes. But not before it destroys the global economy...
http://www.globaldeflationnews.com/the-creature-from-jekyll-island-the-e...
Free doom for everyone.....
Central Planning and Crony Capitalism Have Bankrupted the Financial System
and the sun rises in the east and sets in the west. Are there any people that read financial blogs that don't know that?