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Our "Spoiled Brat" Economy
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
By insuring spoiled brats/vested interests never face the consequences of their actions and choices, we guarantee failure of the entire system.
Spoiled brats do not take kindly to being called out as spoiled brats. Since economies are aggregates of individuals, we can anticipate howls of outraged denial at our economy being identified as spoiled rotten.
The two essential characteristics of spoiled brats are 1) a complete disregard for the burdens of those paying the bills and 2) a childishly self-absorbed sense of overweening entitlement. Spoiled brats have no sense of fiscal discipline. Indeed, it is their defining characteristic. They want what they want, and they want it now, regardless of the cost to others or the system as a whole.
In America's Spoiled Brat Economy, no vested interest is ever allowed to fail. Lost billions gambling with borrowed money? Just throw a K Street temper tantrum and threaten to close all the ATMs when you go broke, and voila, Mommy and Daddy (the federal government and Federal Reserve) come rushing with trillions of dollars to make all the bad things like well-deserved bankruptcy go away.
That tens of millions of savers must be robbed of hundreds of billions of dollars in lost interest to rebuild your banks' profits and balance sheets--the sacrifices of others are of no concern to spoiled brats.
What does not allowed to fail bring to mind? How about coddled children who are crippled by helicopter parents who do their homework for them and schools that give everybody passing grades and gold stars?
A system that doesn't allow individuals and enterprises to fail is a system that is simply taking another path to failure. Students who are given gold stars and 9th place ribbons (Meet the Fockers) cannot possibly establish a real sense of accomplishment or learn how to make a realistic assessment of their deficiencies or strengths. They are crippled by all the "help" enablers press on them.
The same is true of spoiled-brat economies. Enterprises that are never allowed to fail (for example, too big to fail banks, bankrupt cities, counties and states, defense contractors who produce failed weapons systems, healthcare organizations that cheat the government and patients, etc. etc. etc.) become deadwood that saps the vitality of the economy, dragging down the few productive sectors.
The "help" lavished on vested interests include sweetheart contracts, direct subsidies, tax credits, lines of credit, zero interest rates and a vast range of other subsidies. The entire point of the vast lobbying machine that funnels federal and Federal Reserve largesse to vested interests is about staving off the very failure that keeps economies from imploding (creative destruction).
The Yellowstone Analogy and The Crisis of Neoliberal Capitalism (May 18, 2009)
Innovation, Risk and the Forest Fire Analogy (July 2, 2010)
By insuring spoiled brats/vested interests never face the consequences of their actions, choices and self-absorbed greed, we guarantee failure of the entire system. So by all means, keep passing out subsidies to too big to fail banks and 9th-place ribbons, and give the brats whatever they want as soon as they start wailing, regardless of the cost to the system itself.
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Charles just described the whole anti-austerity movement.
Anti-austerity is the same as pro-theft.
How so?
Anti-austerity is pro-deficit spending (inflation) and pro-taxation, both of which are nothing more than schemes to transfer wealth from the haves to the have-nots, theft, usually in exchange for votes and at the point of a gun.
Anti-Austerity is pro-big-government and the protests are almost entirely populated by astro-turf government workers.
I am a Libertarian, and I am for maximum freedom and minimum government, which means I am not reliant on the government as a child is to a parent, and not willing to give up my liberty for perceived security. I will not support laws and governemnt that are meant for nothing other than to legitimize plunder.
Deficit spending is the worst of all. You are borrowing money against the future work of those not yet born and Not yet old enough to participate in the decision making process. Borrowing money the your children and grandchildren will be expected to pay back (or pay interest in for their entire lives) is the pinnacle of spoiled best behavior. Give me mine now and fuck everyone else.
http://www.computerworld.com/article/2942718/it-careers/a-california-bac...
Any time a company is prohibited to fire a worker it'll refuse to hire him in first place. France is a perfect example. The socialist government there passed a series of labor protection laws. As a backlash, every concerned business trimmed fat well in advance and now refuses to hire at all.
At first I thought it said "Soiled Brat", same difference I suppose, the bankers are pretty full of it.
If you have a protected group and it is hard to fire an individual from that group when they don't preform most people avoid hiring people from that protected group out of fear they will never be able to get rid of them once they are hired. This completely sucks for the members of that protected group that would be great workers as they aren't hired because of that fear. Affirmative action doesn't help the people it is supposed to, it hurts them. But I guess that was the Dems motive from the start wasn't it?
Looks at the bright side; you'll have lots moar Paki and Indian restaurants in yoru area.
Nice half-truth.
It's only about IT workers at utilities.
Welcome to the United States of Detroit... http://twistedsifter.com/2012/07/abandoned-houses-in-detroit-pictures/
Which year had the correct number of dollars?
Any year before the legal tender became Bank Notes, and was actually a dollar as originally defined by Federal Law.
The US money supply increased dramatically between 1789 and 1913. You're pro-inflation.
What a fallacious leap! You must work for the Fed. Pathetic, really.
The US money supply increased dramatically between 1789 and 1913 because 1) the real economy of the USA was growing, and 2) the bankers and politicians chose to ignore the founding principles and the Coinage Act.
1781–1836: The Bank of North America; the First, and Second, Bank of the United States
1837–1862: "Free Banking" Era
1863–1913: National Banks
1907-1913: Creation of the Federal Reserve System
Truly a Den of Vipers.
Growing the real economy does not necessarily require or cause a growth in money supply. #1 is flat wrong.
If you're upset, you should be more careful when you say "any year", since the money supply has been different every year of the republic. So, I ask again, which year had the correct number of dollars?
If you haven't already, read Frederic Bastiat's The Law. Very powerful. You will slice and dice the socialists (the anti-austerity-ites) like never before.
To be just by libertarian standards, The Law requires that society's property distribution already be just. If the property distribution isn't just, then refusing redistribution is, itself, an injustice. Put another way, if I steal a million dollars, I can't say, "It's my property! Free markets, man!"
Of course, 19th century France, like 21st century America, did not have a just property distribution. Proudhon demolished The Law by pointing out the blatantly obvious fact that the French elite did nothing just or productive to acquire their property. They stole it. Bastiat's Lockean defense applied to a utopian non-existent country, but not any we actually live in.
That's the problem with all Utopians. Actually, with all philosophers I know of, other than maybe Epictetus.
Marx was actually a fantastic economist, just a horseshit political philosopher. Because he was Utopian in his ideas of human nature.
You can't start with a system founded and developed on force and fraud, and then insist everyone on the short end of the stick has to be moral all of a sudden.
About rewarding bad behaviour;
That whas the whole premise of the Re-booted star trek franchise. Kirk lies, cheats, breaks laws and regulations then gets rewarded with command of a Starship as a result of his bad behaviour.
Bad Boys need a spanking regardless if they are Starfleet cadets, CEO's of Major Corporations or Banks. Let them learn to associate bad behaviour with pain.
Speaking of rewarding, that Orion Slave Girl that Kirk was fucking...wow!
DSK approved, I am sure.
I think it describes the supply siders system of beliefs as well. We would not be in this mess if it wasn't for Reagan. Yes, Reagan, the king of deficit spending and tax cuts.
ehh, I disagree, it was the trade deals of Bush Sr, and Clinton that killed our industry.
Disagree all you want but under Reagan the national debt went from 32% of GDP when he took office to 52% of GDP by the time he left. A 40% increase. The fact is, under Carter and Clinton were the only times debt to GDP weren't increased since the Nixon administration.
Without failure, you cannot have success.....
SARC, just be a member of the .01%. Now back to the mines with you, peons.
It's a phantom economy. Or, if you prefer, a Potemkin economy:
Every statistic about the US economy is now a lie as David Stockman looks at 5.5% unemployment:
At the present time, there are 210 million adult Americans between the ages of 16 and 68—to take a plausible measure of the potential work force. That amounts to 420 billion potential labor hours, if we accept the convention that all adults are at least theoretically capable of holding a full-time job (2,000 hours/year) and pulling their share of society’s need for production and work effort.
By contrast, during 2014 only 240 billion hours were actually supplied to the US economy, according to the BLS estimates. Technically, therefore, there were 180 billion unemployed labor hours, meaning that the real unemployment rate was 42.9%, not 5.5%!
Yes, we have to allow for non-working wives, students, the disabled, early retirees and coupon clippers. We also have drifters, grifters, welfare cheats, bums and people between jobs, enrolled in training programs, on sabbaticals and much else.
http://davidstockmanscontracorner.com/the-warren-buffett-economy-why-its...
Inflation in the land of the free is not so phantom though - Chapwood Index shows real inflation in US.In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
I pray that more people will come to understand the correlation between your inflation comment, my anti-austerity is pro-theft comment, and this article.
There will be austerity one way or the other but austerity as a conditon of borrowing money to pay debt service is pain with no gain, no future. Lenders need to take responsibility for their actions and they need to take big haircuts or deal with default. Who are the biggest spoiled brats? TBTF banks.
Charles, I have always been a fan of your thoughts. I have deleted all my linked in connections since childhood,,, coz now I can't figure out who is who and what is their level of addiction to food. which means I had to delete you too. which means ... am left alone in my battle ... can you believe ... it has now become just my battle. how selfish of me.
http://just-a-thought-from-thinair.blogspot.com/
The answer to that is easy.
Deny the little bastards and they will burn down the house while you sleep.
You need to lock em up for everyones safety. It's that simple.
Hey Shovelhead, I gave you a reply .. go check ... go along with your dog ... that is the only way you will remain sane. Please don't abuse your dog for your mistakes .. coz he can't tell anyone what you might be doing to him.
http://www.zerohedge.com/news/2015-07-01/goldman-ecb-will-have-go-big
Try writing a blog in your native language. Your English isn't up to the task.
Not that you would make anymore sense in your own language, but theres a chance you might sound a bit less loony.
Glad to help. Good luck.
Do not underestimate people's ability to understand broken english. I never fix my grammar and that is by intention. I won't spoil your fun by telling that intention. But, thanks for giving me another honest reply. I will try to improve becasue there is a tenth person waiting ... If I can't even stop your barking what else will I ever be able to do. I can take all your abuses... but do not try doing that to another person ... because if that person cries for help, I will have to answer. I will teach you a lesson in English. I am not worried about your abuses.... I have to endure it all.
I am now more worried about your dog. Does your dog knonw your real identity? so do you go by shovelhead. Do you humiliate him all the time by telling how exactly how smarter you are than him... in your broken english?
you're mean
Sounds like Greece. Give us money so we can pay back money we've already taken. And we've done nothing to improve our situation and we aren't going to do anthing. And we'll be back for more money.
Compound interest is a bitch, ain't it. Eventually, unpayable debt becomes obviously unpayable. By that time, the actual amount of principal has long since been paid back anyway; just classified as interest.
I'd love to know who the counterparties were on the package of off-the-balance-sheet derivates Goldman Sachs set up so the Greeks could fraudulently get into the Euro. That's who's getting bailed out. Not the actual Greeks. But the actual Greeks sure do get to pay for it, don't they.
I'd love an "investment" where if I win, I win, and if I lose, I still get paid back at the cost of somebody else's impoverishment. Where do I sign up?
D. trumps our man!
U.S. markets are collapsing in coincidental sympathy for the Greek situation... not because of it.
http://www.globaldeflationnews.com/
Amazing, the number of people who've commented here, thinking that this article is in defense of big government, TBTF, etc. The level of reading comprehension should be much higher for a site like this. He's saying that the banksters should have been allowed to implode, and I agree. It would have been cheaper - and far more virtuous - to have increased FDIC to a half mil per depositor in 2007, made the public whole and let the banksters get in the soup lines.
Hank Paulson, George Bush, Dick Cheney, Barack Obama and Tim Geithner all need to be hanged for treason, for their role in allowing the bankster locusts to dvour the whole of the public's wealth. Hang Blankfein and Rubin along side 'em, just for good measure.
The author implies that there is some difference between his “spoiled brats” and the U.S. Federal Government that bails them out. The author says that “if only our benevolent U.S. Federal Government would stop bailing out the “spoiled brats”, then we could emerge into the sunny uplands of the centrally planned utopia that all we progressives envision.”
Of course the author is a progressive. Of course the author thinks the U.S. Federal Government is the pathway to utopia, if only it could accrete more power to itself and destroy more of Americans’ ancient liberties. Who else but a progressive would whinge on about “neoliberal capitalism”.
The Ruling Class, whose inner circle occupies the highest levels of the U.S. Federal Government, uses its power to make sure that the damage done by their bad decision-making is inflicted solely on ordinary Americans and that fellow members of the Ruling Class are protected.
The purpose of the U.S. Federal Government is to protect its fellow members of the Ruling Class. Chuck-Hugh says “the U.S. Federal Government should not bail out its fellow members of the Ruling Class”?
Absurd.
That is like saying a dog should not lick itself.
I have been following this author selflessly for a long time... He does not mean few of the things that you pointed out. But it would be nice that he could defend his points in person... some times when you know a person, you are willling to ignore few mistakes here and there (faith helps), but you are arguing against some central ideas that I know, from his earlier writing, are not true.
FTFA: "The entire point of the vast lobbying machine that funnels federal and Federal Reserve largesse to vested interests is about staving off the very failure that keeps economies from imploding (creative destruction)."
No 'progressive' applauds the creative destruction of true capitalism.
He's saying the exact opposite of what you've interpreted him to be saying.
I feel ya, Chuck.
Go ahead and let that 2000 lb. facepalm rip.
When bad behaviour is more richly rewarded then good behaviour, it shouldn't be a surprise that we get bad results. Civil law should be about contracts. I don't see when I agreed to cover bankers loses when they make bad loans. Also don't see selling those loans on to others as anything but fraud.
If by spoiled brats, you mean parasitic psychopaths, then I agree.
Ya see, the spoiled brats (call them what you will ... elitists will do) get together and conspire to rig everything for their benefit at the expense of all others.
Exactly.
This analysis is not that helpful. Children may be spoiled, but when adults have zero empathy for the postions they place others in, and are obsessively self-absorbed, those are two symptoms of psychopathy (along with delusions of grandeur, risky and irresponsible behaviour, promiscuity, inability to tolerate opposing opinions/views, pathological lying, explosive rage attacks when confronted.....sound familiar?)
The "Brats" are "Spoiling" themselves, because we allowed enough power to concentrate in one place that they COULD spoil themselves by capturing the power center.
Amazingly, there are still widespread mainstream calls to centralize even more power.
I suppose some idiots think that by concentrating power, it becomes easier to control. And of course, it does. Just not for MOST OF US.
Centralization always favors the numerical minority.
The numerical majority always had the power, but had (and have) no consensus on its proper use.
Our "leaders" have intentionally led us down the rosy path to ruin. The goal is to make the common people dependent, so we will "need" them all the more.
The propaganda of the Elites is incredibly powerful. The "Spoiled Brats" are obviously those who have rigged the economy, and subsumed Government to backstop the Elite's losses. There is no risk to the "TBTF's" because they know no matter what they do, they have control of the government purse to reimuburse themselves. Actually, they have negative risk; the more they lose, the more they compensate themselves.
Yet the Elites have managed to pull on America's Calvinistic moralist Protestant leash and convince us all that the wealthy are wealthy due to their inherent virtue, and the poor are poor due to their lack of that same virtue. People are fundamentally bad and need to be supervised, commanded and punished by the virtuous Strong. And Americans fall for it and eat it up every time, while the Elites rob them again.
Look at Ronald Reagan. He could have balanced the budget and eliminated the Federal Debt like he said he was going to, if that's what he had really wanted to do. Dr. Paul Craig Roberts actually fell for it and believed that's what Reagan wanted to do, and Roberts did his damndest to help. Soon enough, Roberts discovered Reagan had no intention of doing that, whatsoever. Actually, Roberts blames Bush and Regan, and continues to hold Reagan blameless, for whatever reason. Roberts was forced out, and Reagan proceeded to balloon the deficit and the Federal Debt to previously unheard-of levels, shoveling money at the "Spoiled Brats," while taking that money from the working and lowest classes, either by straight confiscation (the shift of taxes off of ownership onto wage income and everyday living), or by reducing benefits for the destitute. As a result, we fell into a depressionary cycle we haven't gotten out of and never will. Yet Reagan is held up (by the Spoiled Brats) as some kind of icon of Rugged Self-Sufficiency.
Now look at Barack Obama. He's the gay Kenyan Muslim Socialist Communist Fascist who is destroying America. Well, the last two anyway. Remember when he came into office? Remember the "Porkulus" package? About $780 million in "stimulus." "Keynesian," right? Wrong. Since late 2008, America has spent between $10 Trillion and $16 Trillion bailing out the Finance system. Depends on how you count, but direct bailouts, ZIRP, HARP, TARP, etc; all transfusing public money (imaginary when creaed, but the debt is very, very real) through the veins of the corpse of Finance. Because the "Spoiled Brats" knew they had rigged the game and could do whatever they wanted, and not only not lose money, but be richly rewarded the more they lost. And after all that spending, the economy is still languishing and we have to resort to flagrantly fraudulent statistics to pretend we aren't circling the drain in an accelerating gyre.
Had Obama not been a tool of the Elite "Spoiled Brats," he would have taken that (let's just say) $12 Trillion, and sent a check for $40,000 to every man, woman and child in America lawfully. What would I have done with the $160,000 my family of 4 would have gotten? I would have paid off my mortgage, and saved the rest to pay for my kids' college, and anything left over, put into IRA/Roth whatever savings. In other words, I would have run it through the Finance Sector. That money would have cancelled out the Private debt bubble which is the actual problem in America (Public debt is just a political football, and is only about 20% Private debt).
And that's why Obama didn't do that. It would have worked. It would have fixed the banks, the legitimate way, by allowing the orderly cancellation of huge piles of unpayable debt. But it would have helped everyone, and only helped the "Spoiled Brats" indirectly. They wouldn't have that. They needed to be bailed out immediately, and to maintain as many Americans as possible in debt servitude, so the "Spoiled Brats" could keep milking us, and have another go at a massive pump-and-dump bubbble.
Same thing for ACA. Obama could have put everyone on Medicare, not that that's some utopia. But what he did instead was keep the very part of our medical finance system that doesn't work; private insurance, which is on the verge of pricing its product beyond the ability of its customers to pay; and then guarantee to use Federal money to make sure the private insurance companies get paid and never have to face market realities that their product costs more than people can pay. The "Spoiled Brats" get bailed out again.
No "Keynesian," and certainly no "Leftist," would divert the public purse through the Finance sector to bail out the losses of private Elites, at public cost. Never, not one, no way, no how. That is Fascist to the core; not Leftist, Keynesian, or whatever you want to call it.
Of all the gall and diisgusting irony, people consider the poor to be the "Spoiled Brats" because we spend $100 Billion or so per year on Welfare programs. Shit, we spend $1 Trillion per year on the War Machine. We've spent about $2 Trillion per year for the past 7 years bailing out the "Spoiled Brats" who killed our Finance sector. And we're going to puff up and get moralistic about poor people getting a few crumbs? There's the insanity of moralistic Protestantism for you. Bitch about a penny while your dollars are taken from you.
The good news is, it all has to collapse. When you do the math, a system based on abstract money lent at interest, using debt as money, has to expand forever or it implodes. People say Capitalism creates wealth. What it really creates is debt at interest. Eventually that interest becomes more than is mathematically payable. When that happens, debt has to be written off. It's messy, and the Elite "Spoiled Brats" have to lose some of the fake notional money they thought they could count on. When they rig the system so they never have to "lose" that pretend money, as they are doing now, the collapse is only forestalled. Our system used to collapse about every 20 - 30 years, until FDR set up safeguards. That got us about 65 years without collapse, but the "Spolied Brats" hated the constraints on their potential wealth, so they removed them all once they had gotten enough power in government. Now they are free to take incredible risks, knowing the Federal government will bail them out no matter what.
They think they've removed risk. No; they've actually multiplied it, exponentially. They'll never lose small amounts of money. When people stop cooperating with the system, they'll lose all their money. And when that happens, like spoiled brats, they'll kick and scream. They'll call everyone else greedy for not paying their pennies so the brats can have mega-dollars. They'll say it's not "F-A-A-A-A-I-R-R-R-R!!" They worked so hard to be born to rich parents, that means they are so virtuous, and all the dirty unwashed who weren't born rich are obviously morally inferior, so they should all spend their whole lives paying interest on the money that was spent to bail out the Spoiled Brats the last time!!
And a lot of us will fall for it. Eventually though, it will become so absurd one day nobody will show up, and that will be the end of that. And not a moment too soon.
Aside from the fact that you seem to equate fiat banksterism with actual capitalism, I agree completely.
Savers and taxpayers are the only ones who have paid the price of unsustainable debt so far. The problem is, it hasn't been enough to feed the debt beast. So yes, the law should be followed and there should be defaults on bonds at the very least, but they don't want to upset the financial markets because then the mask comes off and people see the reality of the economic crisis. So, the rule of law gets trampled upon and the taxpayer keeps getting the bill. He doesn't complain because the bill hasn't been presented for payment outside of Greece for now.
"The two essential characteristics of spoiled brats are 1) a complete disregard for the burdens of those paying the bills and 2) a childishly self-absorbed sense of overweening entitlement. Spoiled brats have no sense of fiscal discipline. Indeed, it is their defining characteristic. They want what they want, and they want it now, regardless of the cost to others or the system as a whole."
That's racist. And don't tell me you aren't talking about Obama. You described him to a T.
Yeah, they're polite NOW, but wait 3 days.....
they'll burn that sucker to the ground...
Speaking of "spoiled brats"!
-----
##### THREE WAYS TO LIVE #####
#1: save == spend less than you earn.
#2: even == live paycheck to paycheck.
#3: debt == borrow, spend, party-time!
#1: When you save, you have fewer goodies to enjoy now, in the short term, but you accumulate savings so you can live better tomorrow than today, or goof off tomorrow and continue to live similar to today. Plus, you have the option to buy seriously wonderful but expensive items (like maybe an airplane), or better yet, start a business and become financially independent of employers (but not customers).
#2: When you avoid debt but don't save (live paycheck to paycheck), you enjoy as many goodies as you can today and everyday without going into debt. But you're on the edge financially, and any speedbump encountered (like getting laid off) can be difficult to manage. You will never have the option to buy seriously wonderful but expensive items, because you have no savings (bummer) and refuse to borrow (good for you). And you will find it difficult (but not impossible) to start your own business and become financially independent of employers (but not customers).
#3: When you both earn, borrow and spend, you enjoy more goodies every day than you earned. As a consequence, your debt will grow larger and larger as long as you continue this lifestyle. You can hurdle any speedbump with ease... by getting deeper and deeper into debt. Life seems easy, because the answer to every desire and every obstacle is the same... more debt. You can buy all sorts of really wonderful and expensive items. In fact, debt is so easy, you can buy all sorts of expensive stuff that isn't really very wonderful [for very long], because debt is so easy.
-----
But wait! I left something out, didn't I? Like... what about "the long run"?
#1: In the long run, you have substantial savings. You can start to spend savings to live a better life in the future than you lived in the past. You can buy astonishingly cool things. You can buy vacation/investment property in exotic tropical paradises. You can start your own business. You can retire early. And every single day of your life you can enjoy the psychological calm, peace and quiet that only financially secure folks can know.
#2: In the long run, you have no savings. But you also have no debt. So you can keep working and enjoy the same standard of living you have enjoyed your entire working career. You'll have to accept that you can never own anything that is "extremely cool but very expensive", but that's okay, because you are used to the standard of living you have. Just hope you don't encounter any serious financial speedbumps though, because you have no savings to help you over them, and thus they will hurt (materially damage your standard of living for an extended time).
#3: In the long run, you have a huge debt burden. Plus, you've finally reached your "credit limit", so you can't continue to live beyond your means (income) any longer. BUT WAIT... the situation is far worse than that! Not only is your standard of living dramatically cut back by the end of borrowing, a huge percentage of your income is consumed paying off those debts! Oops! But even worse, you must pay interest on those debts too!
And so, the debt-freak gets clobbered by a "triple whammy".
A: no more borrowing (spending money reduced).
B: must pay off principle (spending money reduced).
C: must pay off interest on principle (spending money reduced).
And so...
STANDARD OF LIVING MUST NECESSARILY COLLAPSE DRASTICALLY
But... but... but... humans are creatures of habit. And so, debtors are thoroughly accustomed to their artificially high standard of living they have enjoyed for decades.
AND THEY DON'T WANT THE PARTY TO END.
AND THEY DON'T WANT TO PAY THE BILL.
And so, they scream bloody murder, pretend THEY are being abused, and claim THEY should not suffer the consequences of THEIR OWN ACTIONS.
And so, here we are today.
Over the past 30~50 years banksters have jiggered the system (disconnected currency from restraint AKA gold-backing) in order to massively indebt everyone they could con into their plan to create worldwide mass debt servitude.
And so, all at once, all at roughly the same time in history...
BILLIONS OF DEBTORS REACHED THE END OF THE LINE.
-----
#1: Savers have been living frugally, well below their means (income). Worse, the easy availability of fiat, fake, fraud, fiction, fantasy, fractional-reserve debt has created massive price-bubbles in the most necessary and expensive good they need to buy, namely "home". So savers have had to be even more frugal than normal to save after suffering artificially high prices for homes (and certain other goods) caused by hoards of debtors.
#3: Debtors are now desperate to avoid the consequences of their actions. Debtors never were responsible people... as evidenced by their willingness to be irresponsible and take the "easy out" provided by "easy debt".
-----
And so, what does everyone think will happen now?
If it was only individual debtors who were egregiously irresponsible, perhaps we'd have the economic collapse that is entirely natural and appropriate in these circumstances. Prices would fall --- most dramatically in areas where price-bubbles were previously created. Savers would swoop in and buy up the nice homes they've been waiting half a lifetime to buy, but could not afford previously (previously occupied by debtors living far above their means).
... BUT ...
Individual debtors are quite obviously NOT the only irresponsible parties who got themselves egregiously deep into debt. So did predators-DBA-governments.
This makes a HUGE difference in what happens next.
-----
What happens next?
Virtually all the debtors, both private and public, have proven themselves wildly irresponsible. They also have no interest or willingness to suffer the consequences of decades of their irresponsible behavior.
And so...
All these private and public debtors shall descend like swarms of locusts to STEAL ALL SAVINGS from those folks who were prudent, frugal savers the past several decades.
Savers can count on this as much as you can count on water being wet at room temperature and pressure.
-----
What to do?
!!!!! GET OUT NOW !!!!!
Remove ALL your savings from banks, brokerages, financial vehicles... EVERYONE. Then convert your savings into some form of physical wealth that CANNOT BE STOLEN. For practical purposes, this means "physical precious metals that you thoroughly and carefully hide and secure yourself"... trusting NOBODY WHATSOEVER (including relatives). This could mean "unreported debt-free real-estate in well chosen foreign locales".
Most important of all... get your own butt out of dodge! !!! FAST !!!
Clear out everything... everything you own, as well as your own self. Leave ZERO financial connections with any corporation inside the fictitious nation that claims you as "citizen" == "slave".
-----
The locusts are coming. Little time remains.
All the above was easy to foresee, and was foreseen by millions of savers (who think about these issues, which is what motivates them to live prudent and frugal).
What many savers did not foresee is how insanely out of whack this problem would get before the absurdity collapsed. And many of them also did not imagine how utterly, totally and completely unrestrained by laws, rules, ethics, morals, justice and basic honesty and good behavior the predators-DBA-government would get. But that is NOW COMPLETELY CLEAR. Which is why every prudent saver MUST pick up their marbles and get them far outside of dodge (their home "nation").
The way things are shaping up recently...
2015 == the year the SHTF