The Care And Feeding Of A Financial Black Hole

Tyler Durden's picture

Submitted by Dmitry Orlov via Club Orlov blog,

A while ago I had the pleasure of hearing Sergey Glazyev—economist, politician, member of the Academy of Sciences, adviser to Pres. Putin—say something that very much confirmed my own thinking. He said that anyone who knows mathematics can see that the United States is on the verge of collapse because its debt has gone exponential. These aren't words that an American or a European politician can utter in public, and perhaps not even whisper to their significant other while lying in bed, because the American eavesdroppers might overhear them, and then the politician in question would get the Dominique Strauss-Kahn treatment (whose illustrious career ended when on a visit to the US he was falsely accused of rape and arrested). And so no European (never mind American) politician can state the obvious, no matter how obvious it is.

The Russians have that pretty well figured out by now. Yes, maintaining a dialogue and cordial directions with the Europeans is important. But it is well understood that the Europeans are just a bunch of American puppets with no will or decision-making authority of their own, so why not talk to the Americans directly? Alas, the Americans too are puppets. The American officials and politicians are definitely puppets, controlled by corporate lobbyists and shady oligarchs. But here's a shocker: these are also puppets—controlled by the simple imperatives of profitability and wealth preservation, respectively. In fact, it's puppets all the way down. And what's at the bottom is a giant, ever-expanding, financial black hole.

Do you like your black hole? If you aren't sure you like it, then let me ask you some other questions: Do you like the fact that your credit cards still work, or that you can still keep money in the bank and even get cash out of an ATM machine, or that you are either receiving or hope to eventually receive a pension? Do you like the fact that you can get useful things—food, gas, airline tickets—for mere pieces of paper with pictures of dead white men on them? Do you like the fact that you have internet access, that the lights are on, and that there is water on tap? Well, if you like these things, then you must also like the financial black hole, because that's what's making all of these things possible in spite of your country being bankrupt. Perhaps it's a love-hate relationship: you love being able to pretend that everything is still OK even though you know it isn't, and you wish to enjoy a bit more of the business-as-usual before it all goes to hell, be it for a few more days or another year or two; but you hate the fact that eventually the black hole will suck you in, after which point things will definitely... suck.

In the United States, so far the black hole has been sucking in individual families (although it does sometimes suck in entire cities, like Detroit, Michigan, or Bakersfield, California, or Camden, New Jersey). With the help of the fraudulent mortgage racket, it sucks in houses, and spits them out again encumbered with bad debt. With the help of the medical industry, it sucks in sick people and spits them out again, bankrupt. With the help of the higher education racket, it sucks in hopeful young people, and spits them out as graduates, with worthless degrees and saddled with mountainous student debt. With the help of the military-industrial complex, it sucks in just about anything and spits out corpses, invalids, environmental damage, terrorists and global instability. And so on.

But the black hole can also suck in entire countries. Right now it's busy trying to suck in Greece, but it's having a hard time with it, because Greece is, of all things, a democracy. This has the black hole's puppets in quite a state at the moment, and starting to clamor for “regime change” in Greece, so that Greece can be made to capitulate before the black hole gets hungry.

The way the black hole sucks in entire countries is as follows. If the black hole doesn't have enough to suck in for a period of time, it gets hungry and makes the financial markets go into free-fall. The financial instruments of countries that happen to be farther away from the black hole—out on the periphery—fall faster. In search of a “safe haven,” money floods out of these countries and into the “core” countries that are clustered tightly around the black hole—the US, Germany, Japan and a few others. The black hole gobbles up this money, but is then hungry for more. But since the periphery countries are now financially too weak to resist, they can easily be turned into black hole fodder. This is done by saddling the country with a foreign debt it can never repay, then forcing it to keep making payments against this debt by making it a condition for maintaining a financial lifeline—keeping the banks open, the ATMs stocked, the lights on and so on. To be able to make the payments, the country is forced to dismantle its society and economy through the imposition of austerity, to privatize everything in sight turning it into collateral for more loans, and to surrender its sovereignty to some transnational organizations, such as the IMF and the ECB, which are directly involved in the care and feeding of the black hole.

Who is in charge of all this? you might ask. If all there is is the black hole, the puppets charged with its care and feeding, and its hapless victims, then who is making the decisions? Well, it turns out that the black hole is sentient. But it is also very, very stupid. And the way is enforces its will is by destroying the minds of its puppets—by making them unable to understand certain things. However, stupidity is a double-edged sword, and in enforcing its will in this manner the black hole also thwarts its own purpose.

For example, some time ago the black hole happened upon a rather large item it wanted to suck in, but couldn't. The item is called Russian Federation. It controls a huge territory that is full of all sorts of natural resources the black hole would love to turn into loan collateral and suck in. The problem is that it is full of Russians, who are a difficult people for the black hole's puppets to deal with. They keep telling the puppets to please keep their toes on the other side of that red line over there, and if they don't then click goes the safety on their guns, precluding further discussion.


This situation calls for negotiation, but the black hole, which, as I mentioned, is very, very stupid, has just one negotiating tactic. It makes its demands, and then waits for the other side to capitulate. If that doesn't work, it applies pressure: imposes sanctions, attacks the currency, complicates financial transactions, arrests the country's foreign assets and so on—and waits for the other side to capitulate. And if that doesn't work either, then the country gets bombed to rubble by NATO or, if NATO doesn't want to come along, by the US alone. That generally works, but in the case of Russia it doesn't. But the black hole, if you recall, is very, very stupid, so it keeps trying anyway. As it does, the minds of its puppets get really warped, to a point where they don't understand what's going on at all.


For example, everybody knows by now that pressuring Russia doesn't work: according to Newton's Third Law, every action produces an equal and opposite reaction, and Russia is big enough that pushing it doesn't cause it to move at all—it just causes whoever is pushing it to hurt themselves. It's like trying to shift the Earth's orbit by jumping off a chair while keeping your knees locked—which is a good ploy if you are clamoring for medical attention. In fact, the Russians are rather grateful for the sanctions, because now they have a reason to finally get serious about investing in domestic economic development and self-sufficiency. But the puppets, having had their minds warped by the black hole, cannot see that, so they just keep pushing, wrecking their own economies in the process.


Since the sanctions don't work, it is time to exercise the military option. Doing so requires concocting a casus belli—a reason to go to war. The black hole does this by hallucinating: Russia invaded Crimea!—sure, a few hundred years ago, and has been there ever since, most recently based on an international agreement, but never mind! (Oh, and legally Crimea was never actually made part of the Ukraine because Nikita Khrushchev botched the paperwork when handing it over.) OK, never mind that, but then Russia invades the Ukraine!—on every day that has the letter “D” in it, but it's very sneaky and withdraws its troops before anybody can snap a single picture of them there. OK, never mind that either, but then Russia is poised to invade Estonia, Latvia and Lithuania, and maybe Poland too. Invade how? You mean like take a bus to the music festival in J?rmala? Consider it done, but the festival is already over and the invading music fans are back home. OK, never mind that either. But the puppets keep saying “Russian aggression!” over and over again. It's the brain damage caused by proximity to the black hole. Look at this poor guy, for instance. He keeps flapping his lower jaw, going “Russian aggression! Russian aggression!” while trying to self-soothe by fondling the rump of his imaginary pet cow. God help him.

Back to the real world: the poor puppets are unable to understand that there is no military option when it comes to Russia: it's a nuclear power with an excellent strategic deterrent, a well-defended territory, and no aggressive intentions against anyone. But the puppets, with their warped minds, cannot see that, and so they pile various kinds of obsolete military junk along Russia's borders, and are even threatening to bring into Europe the entirely obsolete Pershing medium-range nuclear missiles. They are obsolete because the Russians now have the S-300 system with which to shoot them all down. The military option just isn't going to work, but don't tell that to the puppets—they cannot absorb such information without sustaining further neurological damage.

Back to Greece: tiny Greece certainly isn't mighty Russia, but it nevertheless refused to capitulate to the demands of the black hole. It was asked to completely wreck its society and its economy as a condition for maintaining its financial lifelines from the IMF and the ECB. Most inconveniently for the black hole and its puppets, Greece is not some obscure “third world” country peopled by dark-skinned people you wouldn't want your daughter to marry, but a European nation that is the cradle of European civilization and democracy. Greece managed to elect a government that tried to negotiate in good faith, but the puppets don't negotiate—they demand, threaten and cause damage until they get their way—or until their heads explode.

This one will be interesting to watch. If the black hole does succeed in sucking in Greece, then which country is next? Will it be Italy, Spain or Portugal? And, as that process continues, at what point will enough people say that enough is enough? Because when they do, the black hole will shrivel up. It's not a real black hole that's made up of incredibly dense matter—so dense that its gravitational field traps even light. It's a fake black hole, made up of everyone's combined greed. It has greed at its core, and fear all around it, and it sustains itself by feeding on fear. If it can continue sucking in people, families and entire countries, it can keep the greed at its core alive, but if it can't, then the greed will also turn to fear, and it will shrivel up and die. And I hope that when it dies all of its brain-damaged puppets will snap out of it, realize how deluded they have been, and go find something useful to do—farm sheep, grow vegetables, dig for clams...

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Newsboy's picture

Ya don't have to do nothin special for a black hole.

Hell, you almost can't kill the things.

TeamDepends's picture

What if it only identifies as an NAACP black hole?

Captain Debtcrash's picture
Captain Debtcrash (not verified) serotonindumptruck Jun 30, 2015 9:22 PM

This post is entertaining, and much of what it says is accurate, but one thing we should not do is make Russia out to be some kind of protagonist.  Russia is not the “good guy”.  The American homogony has many flaws and is responsible for some pretty horrible things, but if that homogony was under the Soviets it would have been worse. 

There is a monetary shift coming, but China nor Russia will be a savior.  The hope should be that America finds its values not that they are knocked off the purch by China and the Russians, even if at first it would be nice to see some retribution. Frankly I think we’ll all be surprised at how the shift actually goes down.

chisler's picture

Well thats an opinion. Speak to a Russian and the opinion may be the opposite view. Frankly many are beginning to question your, and I assume its a "patriotic" opinion. People dont even believe the 911 accounts and there is much evidence is suggesting that the US is eating itself from within.

Buckaroo Banzai's picture

There's plenty of corruption inside Russia. But the USA has become like the USSR in that the entire governing system has embraced a mathematically-impossible financial paradigm that will lead inevitably to collapse. Putin, having seen a collapse first hand, at least knows not to fuck with the math.

pretty bird's picture

I just don't see a collapse.  You bitches be crazy.  Word to your mother.

DanDaley's picture

Homogony? Do you mean hegemony? Just asking.

Ralph Spoilsport's picture

Definition of HOMOGONY: a condition of having one kind of flowers with the androecium and gynoecium of uniform relative length —opposed to heterogony

Definition of HEGEMONY 1 : preponderant influence or authority over others : domination <battled for hegemony in Asia>

Captain Debtcrash's picture
Captain Debtcrash (not verified) Ralph Spoilsport Jul 1, 2015 5:15 AM

Tragic autocorrect.

marathonman's picture

In light of recent Supreme Court decision I thought it was an appropriate Freudian slip.

ThirteenthFloor's picture

Russia has managed to keep its identity and it's country, something the USA lost a long time ago. The US is the force that keeps the black hole alive...I dream of the day when the black hole's plug is unplugged....on that day man will feel somehow freer than he does today

new game's picture

lost to imigrants since viet nam, the 60's was the beginning of the curse, culminating with nixon. the fiat orgy began in full tilt spending and corporate influence. the course is set: crash ahead...

it is inevitable, it must happen, too many idiots, usefull idiots and the majority complete useless eaters making up the whole goddamn mess called human usa edifce of shitheaded dolts...

go out and look around and you shall see...

FXD's picture

Having spent tons of money on propaganda in the Internet, TV and press Russia has created an imaginary world in which it is somewhat morally superior to the "Rotten West". This is all smoke and mirrors as we will all witness when Russia finally runs out of money the next year.

datura's picture

I will tell you the difference, Russia is not a "good" guy, Russia is just a normal guy. While the USA is a crazy fanatical puppet guy feeding a black hole. Thats a big difference to me. No one says that Russia will (or even wants to) save the world, however, they are very determined to save their own skin, like all sane people would be, and you can bet that Russia will save Russia (like they always did during their terrible history). Thats enough for them. If the collapse of the world economy comes, even China will have bigger troubles than Russia, because Russia has been positioning itself to become more and more self-sufficient, prepared for anything - little state debt, even little corporate debt, boosting their own food production, many Russian people can still grow their own food and sew their own clothes. And they buy gold. (And for the very worst case build many huge nuclear tunnels). They are very tough and self-sufficent people. This is the only example that you should take from them. They dont want to impose any political or cultural issues or anything on anyone, trust me. They do not want to be any kind of example for anyone. They just want to be themselves and be left alone and they would be entirely happy with that. They are just a normal guy, who defends, what is his own and has the will and force to defend it. I wonder why so many people still dont get this? 

EddieLomax's picture

Too right, there is a lot wrong with the US, but the alternatives of Russia and China are just two more centrally planned states, it take a belief that government always knows best to believe they will prosper in the long run, and government knows best is socialism.

Those sort of regimes can only look good if we are doing something even worse.  Today Russia does look better in many ways then us, they don't have an ethnic problem with all the violence that produces, and they are not building up massive debts.  But they do have a political system that takes the resources and capital of the country and spends it on unproductive things far beyond the amount needed for security.

I hope the west gets a revolution to throw off the current fiscal insanity, and the cultural suicide of multiculturalism, that would make us again great nations.

garypaul's picture

My two cents:

I thought the article was an excellent analogy. The only part with which I would differ is that I think the 'black hole' is not imaginary or made of greed, but a very real foundation to our capitalist system. Since it is a conceptual system it doesn't have any particular puppet masters, just adherents. It is the most powerful human organization system created thus far, so of course it can and will sweep aside other cultures. But now that it is running out of 'fuel' there are huge problems ahead (the law of diminishing returns).

PS. I don't think Russia is being portrayed as a 'good guy', just that they are a target of the 'black hole'.

doctorZH's picture

The black hole is the inverse (the mirror image) of the white hole.  Out of time, they are the same thing.  The white hole spews matter into the material world (eating antimatter in the anti-universe); and the black hole spews anti-matter into the anti-universe (eating matter in the material world).  The white hole becomes the black hold and the black hole becomes the white hole.  This suggests the eternal nature of the process, a kind of cosmic hoour-glass.

The whie hole provides the matter to build the material universe; the black hole provices the anti-matter to build the anti-universe.  From our eathly perspective, the white hole lasts 18 years, transforming itself into the black hole which endures also for 18 years; then the black hole essentially turns upside down and inside out, transforming back into the white hole.  The inside of the white hole is the black hole; and the inside of the black hole is the white hole.  In j1983, the white hole effect began again on earth as the expansion (material expansion ) principle, expanding the world through 2001, at which time the white hole expired and became the black hole, the principle of death of deflation of the material world.  2019 is the projected time for the current black hole to transform again into the white hole, to re-create the material world.  (There are many other larger and smaller cycles beside this 36  year cycle as well, but this 36 year cycle is primary for the Earth.)


In Greek mythology, the white hole is represented by Jupiter-Zeus, the black hole by Saturn-Kronos.  Saturn is the father of Zeus, so the myth about the Father attempting to eat his son (the younger generation) and the Father's overthwor by the Son is emblematic of this process.


2019 is the 'end of the world' (armorgeddon) -- but it is also the beginning of the next world.  The world dies and is born at the same time.  The Old World dies and the New World is born.  Most times we do not even know that has happened.


The Old Testament describes the recreation of the world; the New Testament describes the destruction of the world; and the Book of Revelations is the place where all thee forces meet (father, Old Testament - Son, New Testament -- and Holy Spirit (the recently crucified Son prepareing for reincarnation) -- this is the idea of the trinity.

Oknowwhat's picture
Oknowwhat (not verified) Jun 30, 2015 8:22 PM

Scientist now think there is a black hole at the center of EVERY galaxy.  I am starting to understand that finance is no different.

disabledvet's picture

That energy still has to exit somewhere.

"Wall Street makes it simple: your ship now costs 13.5 billion of the money you print and if you want that ship you have to pay for that."

No problem with the clarity!

And guess what...if the money is no good then neither is the debt.

One look at the "Russian Example" (15% on a ruble) says to me "that's your black hole."

ebworthen's picture

"And what's at the bottom is a giant, ever-expanding, financial black hole."

Yes, summoning another Hell on Earth.

Hang the bankers!

disabledvet's picture

The. Bankers don't want war with Russia...

booboo's picture

"Do you like the fact that you have internet access, that the lights are on, and that there is water on tap? Well, if you like these things, then you must also like the financial black hole, because that's what's making all of these things possible in spite of your country being bankrupt."

Dmitry must like his black hole too, I mean that effort to crowd fund his sail boat engine had to be funded electronically with that U.S. Dollar unless Bostonians boat shops take fruit loops, essays and rubles in trade.

Other than that I enjoy his writings but the hate americaNS gets a bit much, look, we are for the most part like the russians, go to work, raise the kids, make love and eat, so lighten up Francis. We just have a hard time adjusting to Russia being the sensible one in this sordid affair afterall, killing 60+ million of it's own citizens in the last century does not make for fast reconciliations but than again, if you ask an american they probably wouldn't fucking know where russia was on a map anyways and would probably guess that Darth Vader or Godzilla was the biggest mass murderer so you get a pass on that one too.

Nobody For President's picture

I really can live just fine without internet access, my lights are on because I have 27 solar panels and a killer Outback system, an have been off the grid for 40 years, and my water is on tap because I just ran my water line today, cleaned out the spring box and drained the lines to get the silt out, and changed the filters (that I have a significant stock of.) You are stuck in a box of your own making.

Make a different box.

PS - It is really hard to get off the grid - I had a dozen friends tell me I was crazy to leave my 'good job' in the city and move to the country in 1970.

Now, the ones still alive, get it.

daveO's picture

It seems like they do. I thought they were going to get it going last July, but Europe didn't bite on the plane shoot down.  

Tall Tom's picture

The. Bankers don't want war with Russia...



The Bankers do not care if it happens. In fact they do want it as they BELIEVE that they will profit...even if it kills hundreds of millions if not billions.


Even World War II was not a just war and staged FOR PROFIT.


John Rockefeller PROVIDED OIL throughout the ENTIRE WAR to the NAZI WEHRMACHT. Ford Motors and General Motors used the slave labor at Dachau to manufacture armored vehicles for the WEHRMACHT throughout the ENTIRE WAR.


You ought to READ War is a Racket by Smedley Butler and understand that all WARS are ECONOMIC and staged so that BANKERS and INDUSTRIALISTS PROFIT.




Bullshit. Bankers want war, always.

blindman's picture

"it is only an abyss." a. dimele

windcatcher's picture

The fate of Greece is the fate of the USA and all other nations under the octopus of bankster criminal debt, fraud and chaos.

Criminal activity must be framed as criminal activity and therefore the solution has to be framed in how do we break the criminal stronghold and bring the criminals to Justice for their conspirator criminal activity and repudiating the criminal debt.

We should be examining how to prosecution the bankster fascist (merger of multinational corporate monopoly with government) criminal cabal and review professors Black, Chossudovsky, Hudson and Gavin Marshall research into the criminal cabal activities.

I am a 71 year old student that has been following the maneuvers of the American bankster fascist most of my life. The EU was designed, financed and implemented by the criminal banksters and their shadow government of the Council on Foreign Relations. The banksters CFR activities are well documented over the last 60 odd years in plotting Treason against the USA and implementing the fascist New World Order. Selling debt as wealth is their weapon.

Do gold bugs really believe that the criminal banksters are going to lose control of the gold market in the USA? Today, the currency is fiat but the BRICS gold backed currency of tomorrow will set a new gold standard. The bankster criminals stole all the USA gold when we went off the Gold Standard. The criminals loot, pillage, burn bridges and destroy as they move forward so that there is no way back. The bankster criminals via Emperor Obama decree will confiscate the gold in your teeth.

In my opinion, it will take a violent revolution to bring the criminals to Justice, until then, we are all victims.


WernerHeisenberg's picture

There is something inside the black hole controlling the puppets, an all seeing eye, rimmed with fire.  We shall not name it, but it has an operator's manual full of protocols.

chisler's picture

Well, I hope a few of the "well informed" ZH bloggers (who shall remain nameless) read your post. Some think they can alter the course of history and or predict the future by simply posting a patriotic opinion. To them they should understand that not everything they think is true. As Nassim Taleb will tell you the "black swan" flies by night and it lands upon those who doubted its very existence. 

new game's picture

the tap root is fiat money created and molded into debt servitude for its masters. that in one statement is the crux of the black hole. until that changes nothing changes. money pegged to a tangible asset that is displayable to the common man. verifiable and observable like a museum.

gold stacked and on public display. no secrecy. any forberance is verifiable. politicians become public servant again. laws are upheld via verification.

but then there is temptation, ha humans weakness - tuesdays burger...

epicurious's picture

There are black holes on both sides of that red line.

q99x2's picture

Let the banks implode. I ain't scared and I don't want the government to do a goddamned thing for me.

disabledvet's picture

Sales taxes, income taxes, excise taxes, property taxes...oh, yeah! Livin the Dream!

newworldorder's picture

Someone has to pay for the things that go -BANG.

Implied Violins's picture

All I know about black holes is that we are on the horizon of an event...

Mr. Frosty's picture

I see what you did there, nice word play.

red1chief's picture

It is ATM, not "ATM Machine".  How can you have an Automated Teller Machine Machine?

Bollixed's picture

I've got a hot water heater, does that count?

bonin006's picture

You wasted your money. No need to heat hot water.

tool's picture

Good to see you got something useful from the article. Your contribution to the discussion is appreciated.

JuliaS's picture

Newspeople like to say, “Police have responded to an emergency situation.” No they haven’t. They’ve responded to an emergency. We know it’s a situation. Everything is a situation.

- George Carlin

DanDaley's picture

Situation is one of the most overused words of the last 20 years. 


Now, everything is perfect. Would you like cream with your coffee? Perfect. Your dog just died? Perfect.

daveO's picture

Oh really? That's terrific!

NoPension's picture


Thats the one I can't stand.

When I hear a comment started with "fundamentally " , I want to punch something.

Hohum's picture

Debt is a bad thing.  However, no exponentially increasing debt, no industrial civilization.  The machines do not pay for themselves.  Ready to adapt?

Hohum's picture

To the junker (so far): You have faith, but what else do you have?

JuliaS's picture

By your logic, we'd not have any blood if it weren't for mosquitoes and leeches.

What bankers have done is they hijacked progress right at the turn of the century when oil was becoming the dominant energy source. As a result instead of letting producers of goods and providers of service enjoy unbelievable deflation and 100x rise in the purchasing power due to oil doing all the heavy lifting, they tricked everyone who's not yet been exposed to exponential productivity growth to accept the mandate of price stability. So, while everyone else stayed pretty much the same place they were back when horses pulled buggies around, a selected group of people in charge of money and credit became wealthier than all of the other people combined while doing no productive work whatsoever.

The banks pocketed all 100 years of industrial progress that managed to develop in spite of all of damaging interference from the financiers.