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Will The Failure Of Central Banking Lead To Global Bloodshed: The French Revolution Case Study

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Submitted by Michael Lebowitz of 720 Global

Shorting the Federal Reserve - Part Deux

The sequence of events leading up the French Revolution are likely unfamiliar to most. Yet money printing and a debauched French currency played no small part in those events. As a sequel to “Shorting the Federal Reserve”, 720 Global aims to provide an historical example of excessive money printing which lead to financial crisis, and ultimately the revolution of a major sovereign nation. More than a history lesson, this article effectively illustrates the road on which the U.S. and many other nations currently travel. The story relayed in this article is not a forecast for what may happen but a simple reminder of what has repeatedly happened in the past.

As you read, notice the story lines the French politicians used to persuade the opposition and justify money printing. Note the similarities to the rationales used by central bankers and neo?Keynesians today. Then, as now, it is promoted as a cure for economic ills with manageable consequences and where failure to generate a sustainable recovery are thought to be a failure of not having acted boldly enough.

Our gratitude to the late Andrew D. White, on whose work we relied heavily. The exquisite account of France circa the 1780?1790’s was well documented in his paper entitled “Fiat Money Inflation in France” published in?1896. Any unattributed quotes were taken from his paper.

Before The Presses Rolled

During the 1700’s France accumulated significant debts under the reigns of King Louis XV and King Louis XVI. The combination of wars, significant financial support of America in the Revolutionary War, and lavish government spending were key drivers of the deficit. Through the latter part of the century, numerous financial reforms were enacted to stem the problem, but none were successful. On a few occasions, politicians supporting fiscal austerity resigned or were fired because belt tightening was not popular and the King certainly didn’t want a revolution on his hands. For example, in 1776 newly anointed Finance Minister Jacques Necker believed France was much better off by taking large loans from other countries instead of increasing taxes as his recently fired predecessor argued. Necker was ultimately replaced 7 years later when it was discovered France had heavy debt loads, unsustainable deficits, and no means to pay it back.

By the late 1780’s, the gravity of France’s fiscal deficit was becoming severe. Widespread concerns helped the General Assembly introduce spending cuts and tax increases. They were somewhat effective but the deficit was very slow to decrease. The problem, however, was the citizens were tired of the economic stagnation that resulted from belt tightening. The medicine of austerity was working but the leaders didn’t have the patience to rule over a stagnant economy for much longer. The following quote from White sums up the situation well:

“Statesmanlike measures, careful watching and wise management would, doubtless, have ere long led to a return of confidence, a reappearance of money and a resumption of business; but these involved patience and self?denial, and, thus far in human history, these are the rarest products of political wisdom. Few nations have ever been able to exercise these virtues; and France was not then one of these few”.

By 1789, commoners, politicians and royalty alike continuously voiced their impatience with the weak economy. This led to the notion that printing money could revive the economy. The idea gained popularity and was widely discussed in public meetings, informal clubs and even the National Assembly. In early 1790, detailed discussions within the Assembly on money printing became more frequent. Within a few short months, chatter and rumor of printing money snowballed into a plan. The quickly evolving proposal was to confiscate church land, which represented more than a quarter of France’s acreage to “back” newly printed Assignats (the word assignat is derived from the Latin word assignatum – something appointed or assigned).

This was a stark departure from the silver and gold backed Livre, the currency of France at the time. Assembly debate was lively, with strong opinions on both sides of the issue. Those against it understood that printing fiat money failed miserably many times in the past. In fact, the John Law/Mississippi bubble crisis of 1720 was caused by an over issue of paper money. That crisis caused, in White’s words, “the most frightful catastrophe France had then experienced”. History was on the side of those opposed to the new plan.

Those in favor looked beyond history and believed this time would be different. They believed the amount of money printed could be controlled and ultimately pulled back if necessary. It was also argued new money would encourage people to spend and economic activity would surely pick up. Another popular argument was France would benefit by selling the confiscated lands to its people and these funds would help pay off its debts. In addition, land ownership by the masses strengthened French patriotism.

The debate was won by those in favor of printing. As we have seen many times before and after this event, hope and greed won out over logic, common sense and most importantly, history. Per White?But the current toward paper money had become irresistible. It was constantly urged, and with a great show of force, that if any nation could safely issue it, France was now that nation; that she was fully warned by her severe experience under John Law; that she was now a constitutional government, controlled by an enlightened, patriotic people,??not, as in the days of the former issues of paper money, an absolute monarchy controlled by politicians and adventurers; that she was able to secure every livre of her paper money by a virtual mortgage on a landed domain vastly greater in value than the entire issue; that, with men like Bailly, Mirabeau and Necker at her head, she could not commit the financial mistakes and crimes from which France had suffered under John Law, the Regent Duke of Orleans and Cardinal Dubois”. This time was different in their collective minds!

April 1790

The final decree was passed and 400 million Assignats, backed by confiscated church property, were issued. The notes were quickly put into circulation and “engraved in the best style of the art”, as shown below.

As one might suspect the church decried the action, but the large majority of French were in favor. The press and assemblymen extolled the virtues of this new money. They spoke and wrote of future prosperity and an end to the economic oppression. They thought they found a cure for their economic ills.

Upon the issuance of the new money, economic activity picked up almost immediately. As expected, the money allowed for a portion of the national debt to be paid off as well. Confidence and trade expanded. The summer of 1790 proved to be an economic boom time for France.

Fall 1790

The good times were limited. By October, economic activity was back in decline and with it came a renewed call for more money printing. Per White? “The old remedy immediately and naturally recurred to the minds of men. Throughout the country began a cry for another issue of paper”. The deliberations regarding money printing were rekindled with many of the same arguments on both sides of the debate re?hashed. A new argument for those in favor of printing was simply that the original 400 million Assignats was not enough.

While those favoring money printing acknowledged the dangers of their actions, they were also dismissive about them at the same time. These Assemblymen believed if a little medicine appeared to work with no side effects why not take more. Debate this time around was easier for the pro?printing consortium. Of note was a well?respected elder statesman of the Assembly and national hero named Gabriel Riqueti, Comte de Mirabeau (Mirabeau). During the first round of debates, Mirabeau was strongly against the issuance of the new currency. In fact he said the following: “A nursery of tyranny, corruption and delusion; a veritable debauch of authority in delirium” in regards to paper money. He even called the issuance of money “a loan to an armed robber”.

While Mirabeau clearly understood the effects of printing money, he was now swayed by the arguments of a stronger economy. He also appreciated the benefits of making a large class of landholders for the first time. Mirabeau reversed his opinion and joined the ranks of those believing France could control the inflationary side effects. He now argued for one more issue of Assignats. As a precautionary measure he insisted that as soon as paper became abundant, self?governing laws of economics would ensure the money was retired. Mirabeau went as far  as recommending the new amount of printed money should be enough to pay down the entire debt of France ? 2,400 million!

The naysayers warned of the ills of the proposed second printing. Of note was Necker. If you recall he was partially responsible for the debt buildup that led to France’s problems. Necker “predicted terrible evils” and offered other means to accomplish economic growth. His opinions were not popular and Necker was “spurned as a man of the past” by the Assembly and ultimately left France forever. A powerful pamphlet, written by Du Pont de Nemours was popular amongst the nays and was read to the Assembly. It declared that doubling the money supply would “simply increase prices, disturb values, alarm capital, diminish legitimate enterprise, and so decreases the demand for both products and for labor. The only persons to be helped by it are the rich who have large debts to pay”.

The arguments of Neckar and Du Pont de Nemours fell on deaf ears. Those in favor rebutted with comments that printing more money was “the only means to insure happiness, glory and liberty to the French nation”. They took the prior debate a step further and now theorized that the gold and silver Livres would be undesirable as Assignats would be the only currency people demanded.

On the 29th of September 1790, a bill authorizing the issuance of 800 million Assignats was passed. The bill also decreed that when Assignats were paid back to the government for land they should be burned. This added measure was thought of as a way to ensure the newly printed money was not inflationary.

White commented: “France was now fully committed to a policy of inflation; and, if there had been any question of this before, all doubts were removed” he went on discussing how “exceedingly difficult it is stopping a nation once in the full tide of a depreciating currency”.

It turns out the money returned to the government wasn’t burned but was re?issued in smaller denominations. Within a short period 160 million was paid to the government for lands and was reissued “under the pleas of necessity”.

June 1791

Nine months after the second issue of 800 million Assignats, and another cycle of good economic activity followed by bad, pressure grew for more money printing. With little fanfare or debate, a new issue of 600 million was issued. With it, once again came “solemn pledges to keep down the amount in circulation”.

This experience, like the previous two, was followed by a brief period of optimism that quickly faded. With each successive printing came currency depreciation and higher prices. Despite the beliefs of those in favor of printing, hoarding of gold and silver backed coins was occurring. The French people were watching their paper money lose value and becoming more interested in preserving their wealth. The coins were in limited supply while paper money was being printed with increasing frequency. In their minds, gold and silver offered the stability that  paper money was rapidly losing.

“Still another troublesome fact began to now appear. Though paper money had increased in amount, prosperity had steadily diminished. In spite of all the paper issues, commercial activity grew more and more spasmodic. Enterprise was chilled and business became more and more  stagnant”.

With each new issue came increased trade and a stronger economy. The problem was the activity wasn’t based on anything but new money. As such, it had very little staying power and the positive benefits quickly eroded. Businesses were handcuffed. They found it hard to make any decisions in fear the currency would continue to drop in value. Prices continued to rise. Speculation and hoarding were becoming the primary drivers of the economy. “Commerce was dead; betting took its place”. With higher prices, employees were laid off as merchants struggled to cover increasing costs.

The only ones truly benefiting were manufacturers producing goods for foreign countries and the stock brokers. The rapidly declining value of their currency attracted orders from other countries that were now able to purchase French goods very cheaply. Those businesses and consumers that relied on goods from outside the country were battered by higher prices. With the increased money supply and economic uncertainty the “ordinary motives for savings and care diminished”. Speculation increased significantly. While some stock investors in the urban regions were exploiting the condition, the onus fell on the working man. Inflation, weakening currency and lack of jobs was damaging to a large majority of Frenchmen.

The economic conditions also brought on more crime and increased instances of bribery of government officials. Conditions were described by White as “the decay of a true sense of national pride”.

December 1791

A new issue of 300 million more Assignats was ordered to be printed. With that decree it was also ordered that a previous limit on the total amount to be printed be repudiated. By this point it was estimated the value of their currency was cut in half and inflation was rampant.

April?July 1792

Another 600 million Assignats were printed. The presses rolled on and after a few more printings it was estimated a total of 3,500 million Assignats now existed. The issuances continued through 1792 and 1793.

“The consequences of these over issues now began to be more painfully evident to the people at large. Articles of common consumption became enormously dear and prices were constantly rising. Orators in the Legislative Assembly, clubs, local meetings and elsewhere now endeavored to enlighten people by assigning every reason for this depreciation save the true one. They declaimed against the corruption of the ministry, the want of patriotism among the Moderates, the intrigues of the emigrant nobles, the hard?heartedness of the rich, the monopolizing  spirit of the merchants, the perversity of the shopkeepers, ???each and all of these as causes of the difficulty”.

French Revolution

Throughout 1792 and 1793 there were instances of mobs demanding basic necessities such as bread, sugar and coffee. Peaceful demonstrations turned violent and plundering of the local shops was commonplace. The French Revolution was born.

Money printing was not the sole cause of the revolution, but it certainly helped light the fuse. In all fairness, the French people were demanding the same liberties they helped America fight for. The idea of a Monarchy was fading and those supporting democratic principles were leading the charge. In hindsight, money printing was a last ditch effort to create prosperity and keep the Revolution at bay. Poverty and despair spread through France. Malnutrition and hunger due to lost employment and inflation fed the Revolution. In 1792 a republic was proclaimed and in the following year King Louis XVI was sent to the guillotines. 

Conclusion

The story retold in this article echoes that of other nations before and after it. The language, promises, and ultimately the excuses used by the politicians are a familiar refrain. There is nothing new with money printing or “quantitative easing” as modern day central bankers call it. Despite the passing of over 200 years and substantial development in the world, plus ça change (the more that changes, the more it is the same thing).

As stressed in part 1 of this series “Shorting the Federal Reserve”, gold has a long history serving as a tool of wealth preservation. After numerous financial crises caused by the debasement of currencies have modern day economists and central bankers finally figured out how to print money with no consequences? Despite our wishes to the contrary, every action still has an equal and opposite reaction (consequence). The investment pundits who see nothing wrong with the actions of the world central banks regard holding gold as ridiculous. We consider an allocation to gold as a matter of prudence given what we have seen and expect to see from central bankers desperate to maintain status quo.

Hopefully after reading this and “Shorting the Federal Reserve” you will understand a little protection may go a long way in what may not be as clear cut an economic future as some would lead us to believe.

 

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Sat, 10/03/2015 - 19:33 | 6626601 blindman
blindman's picture

mercenaries one and all?

Sat, 10/03/2015 - 19:33 | 6626603 cnmcdee
cnmcdee's picture

The phase of the moon leads the DJIA about three days with about 93% accuracy.  Get the Free Software and find out for yourself and stop loosing money. Free Source Code Included. 

Will import any standard EODDATA dataset.

https://sourceforge.net/projects/stock-moon-phase-charter/

Sat, 10/03/2015 - 19:37 | 6626613 blindman
blindman's picture

what, could you say it again?
i mussed a missed somethin'.

Sat, 10/03/2015 - 19:38 | 6626619 jeff montanye
jeff montanye's picture

that's wy your loosing money

Sat, 10/03/2015 - 19:40 | 6626623 blindman
blindman's picture

i can't lose what i never had,
can i?

Sat, 10/03/2015 - 20:05 | 6626693 negative rates
negative rates's picture

The call for paper money was based on 2 principles, the king lost control of his hord of PM's, and the land france owned in the US could be used as collateral to print the money. It passed, but once Napoleon could not locate it the call for war broke out, the louisana purchase was signed and the war was begun in earnest, putting the US in deep debt and ravaging Europe in the process. Food was so scarce in Europe that ordinary American farmers and consumers could no longer afford their own crops, the US debt was nearly paid down by 1832, but hungry politicians eager to spend money forced it back up again until the US civil war tipped the scales in the favor of debt to this day.

This won't change in your life times but could soon change, says the riddler.

Sat, 10/03/2015 - 20:42 | 6626792 max2205
max2205's picture

It was a Baggett shortage....  

Sat, 10/03/2015 - 20:46 | 6626802 The Pope
The Pope's picture

 "Get the Free Software and find out for yourself and stop loosing money"

 

Get a free dictionary and find out for yourself how to spell "losing" in the proper context.

 

 

Sat, 10/03/2015 - 21:14 | 6626871 BurningFuld
BurningFuld's picture

You got a loose tongue boy. OR

You got a loose tongue boy?

Sat, 10/03/2015 - 21:36 | 6626928 Stuck on Zero
Stuck on Zero's picture

The question is ... when the banks fail and revolution overtakes Europe will Syria and North Africa take millions of refugees from the North?

Sat, 10/03/2015 - 22:31 | 6627033 TeamDepends
TeamDepends's picture

Inspector Clouseau: There is a time to laugh and there is a time not to laugh, and this is not one of them.

Sun, 10/04/2015 - 02:46 | 6627384 SafelyGraze
SafelyGraze's picture

Shorting the Federal Reserve.

let's drill down into that idea with wiki-pee.

https://en.wikipedia.org/wiki/Short_(finance)

the federal reserve note (a.k.a. "dollar") is a financial instrument

who is it that "sells" trillions of these instruments and then repurchases them (spoiler: treasurys) later

that is, who is the biggest short-seller of "dollars"

 

Sun, 10/04/2015 - 03:08 | 6627391 YuShun
YuShun's picture

Bastille Day was the 14th of July 1789, before the first Assignats.
What followed the Assignats in 1793-94 was the Reign of Terror.

Sun, 10/04/2015 - 07:10 | 6627584 The Pope
The Pope's picture

Anyone that does not endeavor to study the correlations between The French Revolution, The Rothschild rise to secret power based on control of all important money supply & creation, the American Civil War, the Russian Revolution, WWI, WWII, & the Balfour Agreement basically has zero understanding whatsoever of the last 250 years of history.

Sun, 10/04/2015 - 09:36 | 6627829 tarsubil
tarsubil's picture

In the Tale of Two Cities, it is written that "[the king printed]." What was the author referring to?

Sun, 10/04/2015 - 05:31 | 6627491 hansg
hansg's picture

Of course not. We're white, and we will forever pay for that privilege and all the associated guilt that comes with it.

 

 

Sun, 10/04/2015 - 02:02 | 6627347 All Risk No Reward
All Risk No Reward's picture

Debt-Money Monopolist central banking is a fantastic success!

Anyone who thinks differently is clueless as to a central bank's central purpose - and their effective deception is part of their success!

The Debt-Money Monopolists are more powerful than ever. Their corporate banking fronts are TBTF&Jail and they use government to pick off their competition.

The society the Debt-Money Monopolists rule over is weaker and more in debt than ever.

In short, the power differential between the controllers of the central banks and ordinary people is GREATER THAN EVER BEFORE.

And it will get worse because the central banks are so successful.

Oh, and they protect their corporate sponsors from the consequences of laundering up to $376 billion in drug money. Oh, and there was no asset seizure of the planes leased to deliver the drugs to America on the way to schools and other places.

How a big US bank laundered billions from Mexico's murderous drug gangs
http://www.theguardian.com/world/2011/apr/03/us-bank-mexico-drug-gangs

Banks Financing Mexico Drug Gangs Admitted in Wells Fargo Deal
http://www.bloomberg.com/news/articles/2010-06-29/banks-financing-mexico...

Matrix - Is a control
https://www.youtube.com/watch?v=Czb3JG5YyTU

They Live - Preacher Speech 720 HD
https://www.youtube.com/watch?v=gWx7Jc7lNLc

"Pretend inferiority"
~Sun Tzu, Art of War

Sun, 10/04/2015 - 13:04 | 6628421 Unknown User
Unknown User's picture

Unfortunately articles like this one only support the banksters by trying to discredit government fiat money.  For example, in this article it clearly stated that they used the money to repay debt instead of paying for infrastructure projects which is the only way to fuel the economy. All articles that support fractional reserve gold money support fractional reserve. (Full reserve gold money is impossible.) Whoever says that gold is money, is supporting banksters.

PS. Government fiat is supported by work for which it was issued and represents infrastructure, etc.

Sun, 10/04/2015 - 22:23 | 6629798 All Risk No Reward
All Risk No Reward's picture

Hi UU,

If it were only so easy.

I don't believe any system will work when the general public is immonetarate (suffering monetary illiteracy) and apathetic.

I know Bill Still and Ellen Brown tout the easiness of "government money," but they are naive.

Angels don't run government, devils in angel suits that fool Muppets run government.

When they can lie with impunity, do you think they'd really spend debt-free money on the Muppets who don't know, or even care, to hold them accountable for stealing it all?

That';s why I try and help people to understand the underlying system and the consequences of the underlying system.

Most don't care.

There is NO SOLUTION under those circumstances, monetary or otherwise.  That's my conclusion.

"If we are to guard against ignorance and remain free, it is the responsibility of every American to be informed."
~Thomas Jefferson

Most people work harder to stay misinformed than they do to become informed.

Sun, 10/04/2015 - 18:46 | 6629239 83_vf_1100_c
83_vf_1100_c's picture

  He's losing money because, like us, he is not a member of the club. In a rigged market almost any sysstem will fail equally so in effect his is as good as any other.

Sat, 10/03/2015 - 19:59 | 6626672 ZH Snob
ZH Snob's picture

I wouldn't take part in the killing of anyone.  it is against my Christian beliefs.

Neither would I cry a tear if they finally reap what they sow.

Sat, 10/03/2015 - 20:30 | 6626759 SWRichmond
SWRichmond's picture

We have gone far enough off the rails that i am willing to say "I prefer my revolutions French".

Sun, 10/04/2015 - 02:10 | 6627355 Pickleton
Pickleton's picture

You prefer your revolution where it ends up killing women and children in the streets for whatever reason and then the mass starvation?  Please elaborate

Sun, 10/04/2015 - 09:51 | 6627856 SWRichmond
SWRichmond's picture

I prefer my revolutions where the leadership castes are aggressively and ruthlessly targeted for extermination by every other group, including other would-be leadership castes.  I will observe with a great amount of Glee while the  uberwealthy and their sociopathic minions called politicians are wiped out in a frenzy of self-induced paranoia.

This is the only solution which I see remains as an alternative to lifelong slavery for me and my descendants, which is unacceptable.

Sun, 10/04/2015 - 02:42 | 6627381 August
August's picture

They have made themselves too big to fail, and too big to jail, so they'll just have to be killed.

But not until after a fair, and brief, trial.

Sun, 10/04/2015 - 05:38 | 6627497 HowdyDoody
HowdyDoody's picture

Since they like lies and made-up fantasies, we could go all Alice In Wonderland on them - verdict first, trial later.

 

Sun, 10/04/2015 - 07:49 | 6627642 Boxed Merlot
Boxed Merlot's picture

...against my Christian beliefs...

It's not the killing that's unlike the Christ, it's the hatred of another.  Consider the ideal, even while on the cross He expressed the sentiment for His Father to "forgive them" for they're acting in ignorance.

Like you, I'm nowhere close to the ideal, but the fact remains, the vast majority of us are ignorant of the true forces at work not only in the world, but more importantly within ourselves.  We kid ourselves when we say we will only beleive in something we understand, as if we actually understand something as basic as why the sun rises in the east, yet who will deny believing that's where it will be in the morning?

As for murdering, yes, murder is wrong and should be punished.  It's the role of the state to do so and as a Christian myself, I'll defer that function to the state, though I'll exercise what right I'm entrusted with to sway what direction I believe is appropriate on whatever personal level I'm competent to render a just verdict on given what facts are coherently presented.

Our legislatures and executive officer's administration have failed to bring before the judiciary the criminal activities of their supporters in a way that shows little regard for the rule of law for seemingly several decades now, and it feels as though when the pent up need to cleanse the system finally occurs, the removal of the scab may exceed what's actually necessary.  TBTF is utter nonsense.

We will survive.

 

jmo.

Sun, 10/04/2015 - 10:26 | 6627774 Nobodys Safe
Nobodys Safe's picture

As for murdering, yes, murder is wrong and should be punished.  It's the role of the state to do so and as a Christian myself, I'll defer that function to the state, A BIG FUCK YOU!!!!

This is why this country and others are so fucked up with your dimwitted wacko Christian beliefs where you think only the state should murder. What if the state is wrong? That's perfectly okay with you because the state did it and you take zero responsibility for the state murdering millions, again A BIG FUCK YOU!!!

It's the role of the state to do so and as a Christian myself, I'll defer that function to the state: You're not even human when you make such an idiotic statement LOOK AT THE WORDS you FUCKING coward!!!!

FYI boxed wine is NASTY

Tue, 10/06/2015 - 15:07 | 6635803 Boxed Merlot
Boxed Merlot's picture

murder is wrong and should be punished.  It's the role of the state to do so...

 

One problem with written communication is ambiguities can occur.  If you think I meant that the state has the right to murder, then I can fully appreciate your reaction to such a monstrous suggestion.  If on the other hand, you could see through your rage for a moment and realize I meant it is the state's role to punish the act of murder, (as opposed to an individual or as a "religious" duty, i.e. the "church"), you will see I am in complete agreement with your sentiment.  In fact, had it done so, we would not be facing the fury of those who have suffered the abuse of our leadership.

Your rage in fact is a real encouragement to me in that it tells me "christian" attributes of justice are still very much alive.  But just in case you have additional venom to spew, let me further state there is a world of difference between the terms "murder" and "kill".  I would hope the difference is obvious, but our language again has been co-opted to view these terms as synonymous when they are definitely not.

Thanks again.

As for boxed wine, you're correct.  I've never tried to present myself or my opinions as anything more than cheap wine.  At least you know what to expect hangover wise.

 

jmo.


Sat, 10/03/2015 - 20:13 | 6626710 ajax
ajax's picture

 

 

Oh for chrissakes Puhleeeeeze!!!

JUST HOW MANY FUCKING TIMES IS IT NECESSARY TO INFORM YOU ASSHOLES THAT EUROPE HAs NOTHING TO TEACH THE USA ON BILKING IT'S "CITIZENS"?

BIG DIFFERENCE IS THAT ESPECIALLY FRANCE HELD UP IT'S END OF THE AGREEMENT - TO THIS DAY.

USA HAS THE MOST EXPENSIVE SHITTY HEALTH SYSTEM, ABSOLUTELY NO MODERN MASS TRANSPORT SYSTEM, NO TRANSCONTINENTAL TRAIN SYSTEM AND ON AND ON. YOU WANT TO TALK ABOUT THE EDUCATION SYSTEM? YOU WANT TO TALK ABOUT THE HIGHER EDUCATION SYSTEM? NO OF COURSE NOT BECAUSE ALL OF EUROPE HAS GOT YOU BEAT THERE AS WELL.

"A Nation of Deadbeats:An Uncommon History of America's Financial Disasters":

https://vimeo.com/62187967

Go ahead and vote The Donald. He couldn't care less whether you live or die unless of course you spill the beans on his massive debts and gaming the system.

 

Sat, 10/03/2015 - 20:19 | 6626732 negative rates
negative rates's picture

We are a melting pot of failures, we take the bad behaviors of some country's and leave the good behavoirs of other country's behind, why? The greed for money, control,and power.

Sat, 10/03/2015 - 21:53 | 6626983 StychoKiller
StychoKiller's picture

What is this Socialist-Progressive hard-on for long-distance trains?  Air travel is much more safe (per passenger miles traveled).

Sat, 10/03/2015 - 22:41 | 6627088 RopeADope
RopeADope's picture

Trains are incredibly energy efficient.

Unless, you run a high speed train from armpit of California to armpit of California in which case you are grotesquely inefficient.

Sun, 10/04/2015 - 15:11 | 6628783 TheReplacement
TheReplacement's picture

Having done both I can tell you that trains are much more pleasant than airplanes.  Efficiency is a big plus too. 

Sun, 10/04/2015 - 02:17 | 6627364 Pickleton
Pickleton's picture

All completely controlled by liberalism (aka, put all that stuff in bed with govt).  So at what point do you figure out it's your belief system that's killing them?  Guess what!  You're a cretin.

Sun, 10/04/2015 - 08:58 | 6627750 doctor10
doctor10's picture

Wrong premise from the git go.

The attempts to extend central banking beyond its well demarcated boundaries and limits(essentially 20th century technology) is what will lead to bloodshed.

Those running the show are the persistence of a 19th-20th century cartel mindset. They are proving themselves incapable of adapting and transforming into the expectations and demands of the 21st century. Their mindset-that of hierarchical control structures-has long since past them by. The debt those structures created is a testament to their obsolescence.

That kind of thinking -which liberated man from the agricultural world-is a liability in the way of men benefiting from the information age.

"Information wants to be free" -Hackers, 1984

https://medium.com/backchannel/the-definitive-story-of-information-wants...

Sun, 10/04/2015 - 13:35 | 6628523 daveO
daveO's picture

Leading to bloodshed? It's already happening. The MSM refuses to report on the welfare-raised hood rats that kill whites(the modern day slave). The system is eating itself. End the FED, end the cartel(slave masters).

Sat, 10/03/2015 - 19:33 | 6626602 CaptainAmerika
CaptainAmerika's picture

bloodshed???? where?

Sat, 10/03/2015 - 19:46 | 6626642 blindman
blindman's picture

everywhere, but mostly in your mind.
that is the tactic of terrorism practiced
by nearly everyone in the media, the government
and the markets. it is special and combative,
attention grabbing and lustfully persuasive.
no strategy required, like heroin or some other
opiate, addictive. follow, follow, follow
the fear of loss of nothing. the majic of money less
money systems, strawberry fields forever.

Sat, 10/03/2015 - 19:35 | 6626610 God
God's picture

GOD says: real Americans should not let the nice jewish people leave your country until all have been tried and convicted.

Start freezing assets NOW!

Sat, 10/03/2015 - 20:11 | 6626709 Usurious
Usurious's picture
The Rothschild Hotel // Tel Aviv's Finest www.the-rothschild-hotel.com/

The Rothschild Hotel pays homage to Baron Edmond de Rothschild and his pioneering activities in The Land of Israel. It is this unique concept, alongside with ...

96 Rothschild Boulevard, ?? ???? ???, 65224, Israel
+972 3-957-8888
Sat, 10/03/2015 - 20:46 | 6626803 e_goldstein
e_goldstein's picture

Isn't about time you started smiting?

Sun, 10/04/2015 - 02:15 | 6627361 Pickleton
Pickleton's picture

Apparently there's a god wannabe that's a complete Nazi buffoon.

Sun, 10/04/2015 - 05:45 | 6627505 HowdyDoody
HowdyDoody's picture

Guess who controls the US Office of Foreign Asset Control - the financial intelligence arm of the Treasury the looks out for financial dealing with terrorists?

A clue comes from:

i) supply humanitarian aid to Palestinian children left homeless in Gaza - placed on the financial hitlist.

ii) supply ISIS with hardware, make and distribute their propaganda, allow them to sell oil they loot, provide them with 'aid and succour' - schtum.

 

 

Sat, 10/03/2015 - 19:37 | 6626615 jeff montanye
jeff montanye's picture

to repeat myself, the most revolutionary act i can imagine is the revelation of 9-11 as an inside job.

Sun, 10/04/2015 - 08:19 | 6627688 ASACJon
ASACJon's picture

Shhh those upstanding Mossad agents caught filming and celebrating the demolition of the Twin Towers have gone through a lot.

Us goy are not supposed know about the deep state connection of the Zionist-Saudi-DC alliance. Shut up and listen to the fine media services like Viacom and Disney and leave your money to the banking establishments.

Otherwise, it might get awful messy around here: I may have to accuse you of being a Nazi, anti-Semite, and even someone who does not think Cate Jenner is an amazingly sexy woman!

Sat, 10/03/2015 - 19:39 | 6626622 Dead Canary
Dead Canary's picture

Todays quote from Barry the evil.

Obama: I’m Not Losing To Putin In Syria

Translation: "I'm getting my black ass kicked"

Sat, 10/03/2015 - 19:57 | 6626665 logicalman
logicalman's picture

More important.

Joe Syrian and his wife and kids are doing all the suffering.

These other fucks are causing the suffering then standing arond discussing how they can improve things.

Government is the problem.

 

Sun, 10/04/2015 - 17:31 | 6628762 Radical Marijuana
Radical Marijuana's picture

The problem is that civilization necessarily operates according to the principles and methods of organized crime, because the death controls must be central to everything else, and those were most socially successful when done through the best deceits and treacheries.

Governments emerge as the biggest forms of organized crime, controlled by the best organized gangs of criminals. However, governments are NOT "the problem." Rather, governments are expedient sets of solutions to THE PROBLEM, which is that human systems must necessarily have some death control systems as central to everything else, whose most extreme forms are the murder systems, which are most socially successful when done through the maximum possible deceits and treacheries.

Governments were made by the history of warfare, and are fundamentally military organizations, which were due to the application of the methods of organized crime on larger and larger scales. The same methods of organized crime were applied through the political processes, in order to enable the best organized gangs of criminals (currently the international banksters) to capture control over the powers of governments.

The repeating story is that money is measurement backed by murder, because the debt controls are backed by the death controls. Over and over again, the excessive successfulness of the applications of the methods of organized crime drives countries to develop runaway criminal insanities. The waves of that can be seen in French history, as well as everywhere else. Those systems have now become globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs, which is trilliions of times more criminally insane than anything which previously existed in human history.

Superficial denunciations that "government is the problem" are sterile dead ends.  Similarly so with respect to anyone who blames whichever ruling classes, which are labeled in whatever ways, that developed expedient sets of solutions to chronic political problems, which benefited them. The history of governments was that history.

The deeper problems are the degree to which the ways that people think are based upon the biggest bullies' bullshit, which deliberately inverted and perverted the perception of everything, to create the Wonderland Matrix Bizarro Worlds that we are currently living within. That way of perceiving what "the problem" is generates bogus "solutions" which are absurdly backwards, because those are based upon false fundamental dichotomies, and the related impossible ideals, which always backfire badly in the real world, causing the opposite to actually happen.

There are intense paradoxes, or sets of consistent contradictions, that natural selection pressures drove the development of artificial selection systems to become most socially successful through the history of backing up deceits with destruction, which morphed to become the political economy based upon governments enforcing frauds by privately controlled banks. Since backing up lies with violence never stops those lies from still being false, the society which is successfully dominated in each short to medium term increment by those increasingly sophisticated systems of legalized lies, backed by legalized violence, therefore become more psychotically insane, since that the excessive successfulness of enforcing frauds, which still never stop those frauds from being false, become further and further removed from relatively objective realities. However, at the same time, those who were socially successful by operating inside of those established systems are therefore selected to become the best available professional liars and immaculate hypocrites, who therefore are less and less able to comprehend how and why they have become criminally insane.

Human beings and civilization should be understood through unitary mechanisms, based upon them being entropic pumps of environmental energy flows. Therefore, human beings and civilization ought to be understood as operating within natural selection pressures. However, doing that require series of intellectual scientific revolutions, and profound paradigm shifts in the ways that we perceive political problems.

There must necessarily exist human death control systems, and there do. However, the history of those becoming most socially successful when done in the most deceitful and treacherous ways has created a civilization which has a core of organized crime, surrounded by layers of controlled opposition groups, both of which stay within the same frame of reference of deceits regarding the death controls.

It is from within that frame of reference that people tend to promote the superficial view that "government is the problem." Actually, that there must exist some death control systems, and that those are necessarily central to everything else, IS THE PROBLEM. Furthermore, therefore, the only genuinely realistic resolutions to the real problems would have to be better death control systems, which would require radical paradigms shifts in the ways that people perceived those death control systems.

Human beings and civilization would have to understand themselves better in order to do that, which would require better understanding how those operate as general energy systems. However, intense paradoxes have become runaways now that almost everyone is being taught the biggest bullies' bullshit world views, which deliberately ignore and misunderstand the laws of nature in the most absurdly backward ways possible.

Governments are NECESSARILY the biggest forms of organized crime, controlled by the best organized gangs of criminals. However, they are NOT "the problem." Rather, they were the development of expedient sets of solutions to chronic political problems which were inherent to the nature of life. Better solutions would require better understanding of the problems, which could enable operating better death control systems, which is the only way that there could be better governments. "No government" is an impossible ideal, which would require that there be no organized crime, and no death controls.

Sun, 10/04/2015 - 18:19 | 6629194 LooseLee
LooseLee's picture

The highest form of government is self-government by a self-aware agent...All good things spring from this foundation...

Sun, 10/04/2015 - 19:06 | 6629290 Radical Marijuana
Radical Marijuana's picture

I agree with that, as an ideal. However, in the real world there has been a deliberate war on the consciousness of those who are ruled over by their rulers, which war against consciousness has been waged for thousands of years.

The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. -- Lord Acton

http://www.acton.org/research/lord-acton-quote-archive

The danger is not that a particular class is unfit to govern. Every class is unfit to govern.

The people versus the banks is likely going to end up manifesting through the apocryphal quote attributed to Jay Gould:

I can hire one half of the working class to kill the other half.

The degree of the successfulness of the divide and conquer strategies tends to predict that violence will mostly end up becoming more psychotic insanities. There are an infinitesimally small number of people who could meaningfully act through "self-government by a self-aware agent."

There are enormous numbers of political puppets and muppets, who can be controlled and manipulated. Generally speaking, as my other reply to Jack Burton below discussed, the chance of "self-government by a self-aware agent" becoming politically significant appears to be  NIL.

Indeed, from a purely theoretical perspective, there is nobody who is actually able to DO "self-government by a self-aware agent." Instead, everyone is an entropic pump of environmental energy flows. Hence, that ideal could only be approached asymptotically, by someone who became relatively more enlightened, i.e., that they ARE the environment. However, such transcendental poetry perspectives do not provide anything practical to be done within the realm of real politics, where there is nothing but the dynamic equilibria between different systems of organized lies operating robberies, whose history has tended to select for the most psychotic of those to become the most dominate.

Sun, 10/04/2015 - 05:49 | 6627509 HowdyDoody
HowdyDoody's picture

Even better, the useless pile of shit aka Merkel has stated words to the effect that:

"Russia may have a part to play in dealing with ISIS in Syria"

Geez, where do these intellectiual and moral giants appear from?

Sat, 10/03/2015 - 19:55 | 6626658 Jack Burton
Jack Burton's picture

Public Education and Main Stream Media have worked miracles in the last 30 years, transforming the mass of the population into mindless consumers devoid of soul and culture. The hollow shells of consumers seeking more consumption while turning their off spring over to Public Schools, and their minds over to Corporate media. The two take together strips away most revolutionary potential. We are now looking at people 3 or 4 generations removed from real education and real vibrant diverse media in hundreds of forms. Nope, today's people have been turned into zombies with not even a hint of reality, or history, or their former culture. People once had a culture, today they have MTV and FOX. Multi cultural and Multi Ethnic religion has stripped away all sense of people's humanity. Leaving them onlu consumption and the dream of a McMansion for the lucky still employed by Government.

The war machine and American glory in battle still drives the media in it's endless drum beat of American exceptionalism. No matter how empty an American life is, they can always relate to being earth's exceptional nationality. Looking down on all others.

Revolution is unlikely. The few really poor are on drugs. The rest are brainwashed.

We are not anywhere near revolt. Not when McDonalds has Big Macs and Fries, and MTV has " Cat Fish".

Sat, 10/03/2015 - 20:15 | 6626721 Yen Cross
Yen Cross's picture

 WTF?

"Revolution is unlikely. The few really poor are on drugs. The rest are brainwashed."

 Jack respectfully, you need to change your proverbial diaper.

 I understand the spirit of your post, but you have an antagonistic way of presenting it.

 I'll give you examples upon request.

 ex; Revolution is unlikely. The few really poor are on drugs. The rest are brainwashed.  Really Jack?

Sun, 10/04/2015 - 09:25 | 6627804 Nobodys Safe
Nobodys Safe's picture

I think Jack summed it up quite perfectly IMHO. All one has to do is open ones eyes to see how things really are.

Sun, 10/04/2015 - 13:53 | 6628555 daveO
daveO's picture

9 down to 5 up votes, counting mine. People truly believe in their great Uncle Sam. We're just a few 'glitches' away from revolutionary convulsions. See these;

http://townhall.com/tipsheet/christinerousselle/2013/10/13/computer-glit...

http://boston.cbslocal.com/2013/10/12/computer-upgrade-blamed-for-nation...

The last line of this MSM(Chosenite) CBS article,

"The federal EBT website was unavailable due to the government shutdown."


The devils were sending an extortionary meassage. 'Stop government and we release the hood rats from hell.'

 

 

Sun, 10/04/2015 - 19:11 | 6629230 Radical Marijuana
Radical Marijuana's picture

The American people are the victims of the best scientific brainwashing that money could buy, especially after the public money supply itself was captured by those who then most wanted to make sure that brainwashing was done in the most effective ways possible, for generation after generation. Americans are living inside an oxymoronic scientific dictatorship, which is as deliberately unscientific about itself as it can possibly be.

As this classic bit from George Carlin has stated:

http://www.youtube.com/watch?v=rsL6mKxtOlQ

George Carlin "The American Dream"

 

The various tax-exempt FOUNDATIONS created by the banksters' buddies have been deliberately engaged in driving American culture to become what it has become, due to the ways that the Central Banking was based on the triumphs of the methods of organized crime applied through the political processes, so that governments would ENFORCE FRAUDS by privately controlled banks. That is the central social fact regarding central banks. The vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS have become metaphorically like society going beyond the event horizon of social black hole, or like a parasites killing their host, or like metastasizing cancers developing to the point where society has become terminally sick and insane.

The banksters always knew that they were running pyramid schemes which would eventually collapse into chaos. The only ways that they have actually prepared for that were to use inside job, false flag, terror attacks, in order to start more genocidal wars, along with prepare to impose democidal martial law. Moreover, the deeper levels of those problems are WAY WORSE, because that "money" made out of nothing as debts was used to "pay" for strip-mining the planet's natural resources. The final consequences of running the current political economy based upon fundamentally fraudulent financial accounting systems are almost impossible to fully imagine. But nevertheless, there is no doubt that the banksters have been working upon advancing their agenda for centuries:

http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm

Silent Weapons for Quiet Wars

Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...) the economy has been transformed into a guided missile on target.

The metaphorical isomorphism of economics and electronics makes general systems sense. The most labile component controls the system. The most labile human components are the most dishonest and violent people. WE ARE BEING CONTROLLED BY THOSE WHO WERE THE BEST AT BEING DISHONEST, AND BACKING THAT UP WITH VIOLENCE.

HOWEVER, THERE CAN NOT BE NO CONTROLS INSTEAD! (As I explained in my other reply here to logicalman.) The REAL systems are ALWAYS organized lies, operating organized robberies. Militarism was the self-driving supreme ideology. Militarism made War King, which then morphed to make Fraud King. The money system was backed by murder. It was always a combined money/murder system, and it must necessarily be. Therefore, the ONLY future solutions are different death controls, to sustain different debt controls.

THE PROBLEM IS THAT DECEITS TRIUMPHED, AND THEREFORE, DESTRUCTION CAN RUN AMOK! The established "elites" were the best at lying about what they were actually doing, and they built the system that we are living in NOW! Almost all of their controlled opposition are various reactionary revolutionaries, who want to go backwards to various old-fashioned impossible ideals, as their bogus "solutions."

I.e., the opposition somewhat reveals that there actually is a murder system, behind the money system, but then asserts that there should not be any. I.e., somewhat reveals that the reality is based on fraud and robbery, but then says the solution is that there should not be any, and that we should stop that which exists and is operating NOW. However, I repeat, the ONLY real solutions to these runaway debt problems have to face the facts that civilization is operating according to the principles and methods of organize crime. There are no real solutions which can change that. The ONLY good solutions are radically different death controls, in radically different murder systems, which then can sustain different debt controls, in a different money system.

What we ARE going to get is a changing of gears, in one way or another, sooner or later, to DIFFERENT DEATH CONTROLS, like the outbreak of world war, and the use of weapons of mass destruction. The most probably possible future survival of the human experiment requires that we adapt through that, and develop a better human ecology on the other side, IF we survive through that ...

The established systems are based on presuming endless exponential growth, funded by endlessly more credit and debts. However, there must necessarily be some limits somewhere, and those must, by definition, be death controls. However, so far, almost all the public discussions about this take place within the biggest bullies' bullshit impossible ideals, and, by and large, the opposition stays within that too!

There are no real solutions which can exist other than changing BOTH the combined money/murder systems. However, there is an almost infinitely deep tunnel of deceits through militarism, and from there through the monetary system, and that is the primary problem, which makes realistic solutions almost infinitely difficult to implement. Therefore, I believe, we ARE on the way to world war, and that IS the way the established systems evolved to cope with their own contradictions.

The Federal Reserve Board, and central banks in general, were unadmitted and unrecognized transfers of the sovereign power to rob, backed by murder, to private banksters. That worked because the vast majority of people more and more acted like brain dead sheeple, who adapted to survive inside that social situation for generation after generation. Most of the people who propose bogus solutions say that we should all be better sheeple. However, I say that the only real solutions are for us to become better wolves.

The profound paradox is that the established systems were based on the triumph of past deceits, and public discussion of better murder systems is practically impossible. Therefore, it looks like we are going to blunder through the madness of world war, and whether we survive on the other side is unknown. But nevertheless, IF we do survive, then adapting to electronic and atomic powers, many orders of magnitude greater than anything before in human history, is going to be necessary. That means that our currently established global electronic fiat money frauds, backed by atomic bombs, have to be better understood and thereby better done.

Of course, I do not foresee that actually happening. I can not readily imagine the central banks doing their job better, to better balance the rates at which their fiat money is created out of nothing, and destroyed back to nothing. Their whole system is a runaway triumph of frauds, which fundamentally refuse to admit or recognize that their debt controls were based on death controls. Our money system could only work better if we simultaneously made our murder system work better.

Militarism continues to be the single most important ideology, that we can not ignore! That successful militarism was based on deceit makes doing that almost impossible to understand. Therefore, we have hyper-complicated rates of the creation and destruction of fiat money, from nothing and to nothing, which deliberately are NOT related to real world, except to the degree to which lies can be backed by violence. There ARE integrated systems of legalized lies, backed by legalized violence, being run by the best available professional hypocrites, which actually were based on the sovereign powers to rob and kill, having been transferred to privately owned central banks, through the historical process of the triumphs of organized crime.

DEBT SLAVERY, BACKED BY WARS BASED ON DECEITS, DRIVING DEBT INSANITIES, TO PROVOKE DEATH INSANITIES, (WHILE THE ONLY BETTER RESOLUTIONS WOULD HAVE TO BE THE DEVELOPMENT OF BETTER DEATH CONTROLS.)

However, given the degree to which the vast majority of "We the People" have been reduced to "Zombie Sheeple," there appears to be no other reasonably grounded expectations than that the exponential strip-mining of the planet's natural resources will continue, until it cannot, at which point the total of the human population and activities, which was based on being able to strip-mine a fresh planet, will have overshot spectacularly, leaving nothing else which is politically possible than the miserable mass murders of the majority of the human population. 

The vast majority of the American People have ALREADY become Sheeple, that are being fleeced to exhaustion, while they are being set up to be slaughtered.  The underlying issues are based upon the ways that the industrial revolutions enabled the strip-mining of the planet's natural resources, and there will likely not be any real changes until those real problems become overwhelming, by which time it will be way too late to be able to cope with those problems then.

Superficial notions regarding "revolutions" to change the ruling classes are RIDICULOUS, within the context of the problems that there have developed electronic frauds, backed by atomic bombs. The only "revolutions" which would make sense would have to be based upon intellectual scientific revolutions, which applied profound paradigm shifts to political science, in order to change the combined money/murder systems, by changing the death control systems that backed up the debt control systems. However, given that the vast majority of "We the People" have become "Zombie Sheeple," while there is almost nothing but controlled opposition groups, dominated by reactionary revolutionaries, whose bogus "solutions" tend to be to recommend going backwards, to so old-fashioned religions and/or ideologies, there are no reasonable grounds to expect anything else than that the limits to being able to exponentially increase the strip-mining of the planet's natural resources will cause runaway death insanities ... after which, it may become possible to develop different death control systems. 

ABSOLUTELY, OF COURSE: "The Failure Of Central Banking Lead To Global Bloodshed!"  However, those death insanities will be many orders of magnitude worse than any previous situations, like the French Revolution. The existing debt insanities are already many orders of magnitude worse than anything else which ever happened before in human history. Proportionately speaking, the Grand Canyon Chasms between progress in physical science versus no progress in political science are getting bigger and BIGGER. 

Relatively speaking, the vast majority of people are way more incompetent political idiots now than they ever were before in human history. Therefore, in my view, Jack Burton's comment above was correct, but understated how serious the situation really is. The chances of civilization transforming through greater use of information and higher consciousness, in order to develop better integrated human, industrial and natural ecologies, are practically NIL ...

Everything based upon rational evidence and logical arguments indicates that the currently established systems whereby governments ENFORCE FRAUDS by privately controlled banks will continue operate through their vicious spirals of POLITICAL FUNDING, in ways which will continue to be based upon civilization deliberately ignoring and misunderstanding the laws of nature in the most absurdly backward ways. Civilization is already stuck in deepening ruts of the excessive successfulness of organized crime driving runaway criminal insanities, to the degree that there are no good grounds to doubt that will result in continuing to operate political economy based upon strip-mining the planet, while the human species thereby high-grades itself to hell.

THOSE PROBLEMS ARE:

POLITICAL FUNDING,

ENFORCING FRAUDS!

Anyone proposing any realistic resolutions to those problems should demonstrate how anything that they propose could actually be implemented through the currently established systems of POLITICAL FUNDING ... The international banksters are already collectively a group of trillionaire mass murderers, while nobody else is in their league. Moreover, they have also perfected their techniques of controlling the opposition, especially through controlling how that opposition thinks.

The general public are not willing and able to change the ways that they think, while there are no effective ways to communicate with them about that. Moreover, that is especially the case because of the degree that almost the only publicly significant opposition tends to be dominated by reactionary revolutionaries, whose bullshit "solutions" are to go backwards. The overwhelming vast majority of people are incapable of going forward, because that would take going through series of intellectual scientific revolutions, which would then apply to political science. Instead, the triumphs of the scientific dictatorship brainwashing them to believe in the banksters' bullshit have made sure that the vast majority of people can not and do not want to understand the currently established systems of electronic frauds, backed by atomic bombs.

Sat, 10/03/2015 - 21:19 | 6626675 TheObsoleteMan
TheObsoleteMan's picture

I know how this is going to play out, the same way it always does when a leviathan falls: Someone is to blame. Who will be the scapegoat? The list has already been drawn up. If you are on the list, expect to be dragged off the street, or out of your home at around 3am, hauled before a court, and charged with treason. If your lucky, you'll be sent to a "re-education center" {gulag}. If you aren't so lucky, well. You get the picture. The centralized model will never go away, if anything, it will ratchet up. We will get a brand new central bank. Except I doubt it will be located within the borders of the old USA, and I doubt the members of said bank will even be citizens. Once the US Gubmint defaults on it's bonds, our lenders will take us over, LITERALLY. The entire country has been pledged as collateral against these bonds, and once they go tits up, the collateral will be foreclosed on. That, is the NWO made personal.

Sun, 10/04/2015 - 13:36 | 6628525 Honus
Honus's picture

"The centralized model will never go away, if anything, it will ratchet up."

Whether that is true is, I think, a fundamental question of these times. But in this context it seems to be a matter of force, i.e., of governments (as opposed to simply a form of organization for commercial and other benign enterprises). So in the end, the question of centralization is about the conflict between political power and freedom, i.e., individual liberty.

While the direction in which that conflict is resolved is likely a long-term problem, I am not willing to subscribe to the claim that centralization of money and political power will "never" go away (though its allure among manipulative leeches and psychopaths will probably always remain).

Sun, 10/04/2015 - 19:18 | 6629315 Radical Marijuana
Radical Marijuana's picture

A centralized power depends upon some centralized energy sources.

The mad self-destruction of technologically based civilization may get rid of centralized powers in quite horrible ways. But nevertheless, I agree that as long as there are some centralized energy sources which sufficiently benefit those who could control them, then there would be some centralized power developed to continue to do that.

Sat, 10/03/2015 - 20:04 | 6626685 RopeADope
RopeADope's picture

The French neglected their Main Street economy to such a degree that when temporary climate changes occurred which caused agricultural production to collapse the people went around and beheaded the ones that had neglected national policy for ages.

Sound familiar?

In the end irresponsible monetary policy always serves up a main course of cold steel as the people cannot eat fiat.

Sat, 10/03/2015 - 21:55 | 6626990 StychoKiller
StychoKiller's picture

Meh, they also did not eat the headless corpses!

Sat, 10/03/2015 - 20:19 | 6626701 Grandad Grumps
Grandad Grumps's picture

My questions are:

1. Who did France owe the money to when the economy was stagnated by debt? Was it private bankers who practiced fractional reserve banking?

2. What did the French monarchy spend the money on? Was it a military and parasitic elitist luxury?

... and therein may lie the real issue. Parasitic elitism, militarism and private banking, the three economic drains and banes of human existence. Hitler tried to fix these three by killing private bankers (excluding those NY and London bankers who he was dependent on), stealing from the rich and making the military a profit center by looting nearby countries ... and it almost worked. He just was stopped before he took over the world. Not saying it was a good or right thing to do, only that it almost worked.

Mind you, Marxism fixes none of that. Marxism is a lie.

Sat, 10/03/2015 - 20:11 | 6626705 Arbysauce
Arbysauce's picture

White's paper mentions one of the primary arguments for assignats was they would be redeemable for land confiscated from the church and land left behind by fled nobility. So the revolution preceded this inflationary episode. It ended with the rise of Napoleon who said he "would pay in cash or not at all."

Sat, 10/03/2015 - 20:14 | 6626716 PoasterToaster
PoasterToaster's picture

The idea that a government may indenture the people with debt is a thing of the past.

Sat, 10/03/2015 - 20:21 | 6626739 blindman
blindman's picture

however, the idea that a government may
enforce and indenture a person, on various
grounds or pretexts, on behalf of a corporation
is a thing of the present, that is the problem.

Sat, 10/03/2015 - 20:56 | 6626823 Charming Anarchist
Charming Anarchist's picture

Your Facebook account will mean more than your passport.

Sat, 10/03/2015 - 20:58 | 6626831 RopeADope
RopeADope's picture

Ya about that Facebook credit scoring...

Someone turn the Twilight Zone off please.

Sat, 10/03/2015 - 20:22 | 6626726 Yen Cross
Yen Cross's picture

 Heads on pikes. luv it

 Have a look at this Tyler.

 Notice the symmetry? Ring any bells?

 I adore Zero Hedge, because I don't have to get political.

Sat, 10/03/2015 - 20:20 | 6626736 GreatUncle
GreatUncle's picture

The article outlines the method it does not however consider the minds of those who would deface their own currency.

No economy is self sustaining in the modern world hence the move to fiat where you can print growth. This action like the implementation of Keynes where you borrow but only ever pay the interest on the debt is again to try to hide the fact the economy never added up for so long just becoming worse as each era started.

ONCE THAT POINT IS UNDERSTOOD.

How do you stay at the top of the human pile pretending to be gods. Any idea suggested is to support this position and not the position of the poorest at the bottom, they can be sacrificed as SHEEP!

THAT POINT UNDERSTOOD YOU CAN RATIONALISE THE FOLLOWING.

Those that make economic policy do so to maintain their position and convince the masses it is for their benefit when it is quite obviously not. Democracy is a fraud to appease a population in this process whereby you elect somebody supposed to represent you but they do the exact opposite of what is good for you.

PAYBACK IS THE REVOLT WHEN IT HAPPENS.

The points then missed by all, why we end up the same every time is the mindset of those who make the rules to benefit themselves is the same GREED and the every increasing efficiency of a system that no longer adds up once we start mass production of everything. Soon to get a whole lot worse through robotics on a grand scale.

Mr Central Banker, your greed did not destroy the economic mechanism you just used it for your own benefit and many realise this. What will destroy the system eventually is the advancing technology because if you cannot earn then you cannot consume and with nothing only war prevails to survive.

CAN'T WAIT TO SEE THE LAST HUMAN BEING WORKING UPON WHICH ALL CONSUMPTION AND FRAUDULENT DERIVATIVES WILL BE BASED BEST HOPE HE DOESN'T DIE ACCIDENTALLY.

Sat, 10/03/2015 - 20:56 | 6626824 negative rates
negative rates's picture

Riddle me this, so what if he(or she) did?

Sat, 10/03/2015 - 20:28 | 6626755 blindman
blindman's picture

Putin Tells Everyone Exactly Who Created ISIS
https://www.youtube.com/watch?v=OQuceU3x2Ww
.
relinked ...

Sat, 10/03/2015 - 20:34 | 6626768 lasvegaspersona
lasvegaspersona's picture

There is an even better message in White's book.

After the failure of the assignat they tried a second paper currency, the Mandat. It failed too in short order.

The moral is this...when a new currency comes out, give it some time as it too may fail. Germany had the reichsmark followed by the Rentenmark. It too failed. 

When the dollar fails expect a new dollar but be careful putting all your eggs into that basket 'til you see how it is managed.

Sat, 10/03/2015 - 21:16 | 6626876 GRDguy
GRDguy's picture

Published 1889 "The Great Red Dragon: Foreign Money Power in the United States."

Published 1896 "Fiat Money Inflation in France”

http://www.anonymousartofrevolution.com/2012/12/those-who-dont-study-his...

What else is there to say!?

Sat, 10/03/2015 - 21:26 | 6626901 skank
skank's picture

Only peons bleed...

(Blade Runner) Little people
https://www.youtube.com/watch?v=9lru1Qxc1l8

Sat, 10/03/2015 - 21:36 | 6626931 Jack's Raging B...
Jack's Raging Bile Duct's picture

This is why DHS exists, and the NSA has gone full Statsi. The Jacobin style purge is coming. Nobody will weep for you Mr. Spook. Nobody will weep for your family as your house burns. Nobody will weep for you as you sway from the gas station. Nobody will weep, because everybody will be participating. I would warn you to be afraid, but you already are. Choose wisely.

Sat, 10/03/2015 - 21:39 | 6626936 ersatz007
ersatz007's picture

Not to be a prick but it's plus ca change, plus c'est la meme chose. The more things change, the more they stay the same. Rush used it in a lyric

Sat, 10/03/2015 - 21:55 | 6626986 spanish inquisition
spanish inquisition's picture

War is not from the failure of Central Banking , it is the goal of Central Banking.

Sat, 10/03/2015 - 22:07 | 6627015 paint it red ca...
paint it red call it hell's picture

This is nothing to loose your heads over....

Sat, 10/03/2015 - 22:14 | 6627027 Joebloinvestor
Joebloinvestor's picture

Wishful thinking.

I do think a few should be flogged at the very least.

Sat, 10/03/2015 - 22:26 | 6627053 Alpacanio
Alpacanio's picture

Toss'em in the meat grinder!

 

Sat, 10/03/2015 - 22:48 | 6627095 tarabel
tarabel's picture

 

 

One of the most detested of royal taxes was the one that required the peasantry to spend a certain number of hours per month laboring on the king's roads that bordered their lands.

For free, of course.

Sat, 10/03/2015 - 23:17 | 6627159 New_Meat
New_Meat's picture

Paul Krugman approves this message, especially the part about "not enough is going into printing"

- Ned

Sun, 10/04/2015 - 00:20 | 6627235 U4 eee aaa
U4 eee aaa's picture

The difference between then and now is then, there was no chance to rise above your 'class' and station. Thus the 'peasants' felt trapped and hopeless. Thus they had no vested interest in buying into the system.

Nowadays, the common man is brainwashed into the belief that he can get into the .01% just like his 'peers', thus they have the incentive to go along to get along. They are wrong IMO. You can't get into that club unless you have friends in high places

as long as the common man continues to buy in to the false narrative, he will continue to accept his chains willingly

Sun, 10/04/2015 - 00:46 | 6627264 Hubbs
Hubbs's picture

Interesting insight. Just like the kids (and their parents) who think they will become pro basketball superstars.

Sun, 10/04/2015 - 00:48 | 6627267 o r c k
o r c k's picture

You have got to be kidding !!  Is this history actually 'known" to the "experts" at the Central Bank ?? You mean it is really one of the most basic tenants of their profession ?? No wonder that yellen thing was choking on its own words!!  And again, you're NOT kidding ??

Sun, 10/04/2015 - 03:52 | 6627432 Batman11
Batman11's picture

The underlying cause is excessive debt, money printing is offered as a solution.

The human race has been unable to manage debt successfully for the last 5,000 years since the first civilizations.

Today, we have a debt based monetary system where all new money can only created by debt at banks (asking for trouble).

Today, debt is the bankers product and prudent lending would ensure debt did not get out of control.

Can today's bankers lend prudently?

“What is wrong with lending more money into the Chinese stock market?” Chinese banker recently

“What is wrong with lending more money into real estate?” Chinese banker last year

"What is wrong with lending more money to Greece?" European banker pre-2010

"What is wrong with a NINA (no income no asset) mortgage?" US banker pre-2008

“What is wrong with lending more money into real estate?” US banker pre-2008

"What is wrong with lending more money into real estate?" Irish banker pre-2008

"What is wrong with lending more money into real estate?" Spanish banker pre-2008

"What is wrong with lending more money into real estate?" Japanese banker pre-1989

"What is wrong with lending more money into real estate?" UK banker pre-1989

“What is wrong with lending more money into the US stock market?” US banker pre-1929

No

We needed to teach bankers the lost art of prudent lending and the importance of fundamentals, eg. ratio of mortgage size to income; ratio of national debt to GDP and age old metrics for valuing companies based on performance.

Too late now.

Visit the positive money web-site for a sensible alternative for a species that cannot manage debt sensibly. 

 

 

Sun, 10/04/2015 - 04:43 | 6627461 Lea
Lea's picture

"France was now that nation; that she was fully warned by her severe experience under John Law; that she was now a constitutional government, controlled by an enlightened, patriotic people"

France was nothing of the kind. She was still ruled by the king and nobles, and the revolution was already under way. The king hoped to get the people back on his side by calling the Estates general, an obsolete institutional means of consulting each Estate of society.

The people from the third Estate (the commoners) discovered the Estates general were a sham. The king didn't mean to listen to them, even though they were the majority.
https://chnm.gmu.edu/revolution/chap6a.html
That was the last straw and triggered the Revolution.
http://bastille-day.com/history/estates-general-1789

The king had nothing to do with the Assignats, that were voted by the General Assembly created by the Third Estate on its own after the beginning of the Revolution.
http://bastille-day.com/history/estates-general-1789

The first French constitutional government was launched well after the Revolution and subsequent Bonapartist rule, when the Bourbon kings were restored in 1814.
http://www.biography.com/people/louis-xviii-21341443#restoration-and-lat...

So all in all, fiat money didn't trigger the Revolution. It followed it.

"As one might suspect the church decried the action"

Not at all. The Church was more than happy, as the new structure allowed the priests to have a fixed income whereas before, plenty of countryside priests barely ate. In fact, it was a bishop who suggested nationalizing the Church possessions.

Forget that piece, it's worse than Wikipedia. Do your own research.

Sun, 10/04/2015 - 04:51 | 6627466 trader1
trader1's picture

it is a fitting analogue, considering that French special interests financed, trained, and supported American freedom fighters in their proxy war against the British Crown.

and lest we not forget that one of the origins for the 1789 revolution was the damoclitic sword of debt the French ruling class accumulated from the American independence adventure.  

we reap what we sow, or? 

14+ years and 3 trillion in short-long term liabilities later, we do not seem to hold any Washington-Franklin-Jefferson freedom fighter cards.  

just sayin'.

Sun, 10/04/2015 - 06:15 | 6627529 Gracy101
Gracy101's picture

Bankers won't like this

THATGUYBLOKE.COM

 

Sun, 10/04/2015 - 06:15 | 6627530 Batman11
Batman11's picture

Central Bank policies have been a success.

Jamie Dimon and Lloyd Blankfein are both now billionaires.

What more do you want?

 

Sun, 10/04/2015 - 06:19 | 6627534 Batman11
Batman11's picture

In 1929, Wall Street crashed and the wealthy lost money.

The wealthy elites who had lost money imposed stringent regulations on bankers.

In 2008, Wall Street crashed, but the wealthy are still making money.

The wealthy elites who are still making money have not imposed stringent regulations on bankers.

Who says Central Bank policies haven’t worked?

Certainly not the bankers.

 

Sun, 10/04/2015 - 23:06 | 6629871 squid
squid's picture

Its because they prevented the loss of money that Glass-Steagle never returned.

Americans will NOT smarten up until they endure pain like they did in the thrities.

That has not happened yet.

 

Squid

Sun, 10/04/2015 - 07:44 | 6627631 Sudden Debt
Sudden Debt's picture

Actually, what led to the french revolution is that all farmes grew wheat and corn and because of a volcano that erupted, crops failled everywhere and no money could buy enough food anymore.

If they would have had a wider diet, and grew potatoes for example, the french revolution wouldn't be a fact anymore.

The french revolution was caused by hunger. 

Nobody had savings so the currency didn't matter for the french and those who had money and had the most problems with the devaluations where the first to lose their neck.

 

Sun, 10/04/2015 - 11:48 | 6627654 Wow72
Wow72's picture

We need to keep an eye on our food supply.  Everyone wonders why there are so many shark attacks, its because the sharks are having a hard time finding food.  If they could find food easily they wouldn’t attack such big targets.  Our Oceans have already been attacked and are currently being attacked.  The Ocean supports feeding aprox. 1 billion people, I believe.  Fukushima was a fucking disaster for the pacific.  Sharks are some of the last in the food chain to go.  Mass die off’s don’t just happen.  They happen for a reason, do a google search for mass die off’s, its fucking unreal scary.  Keep in the back of your mind that the ultimate plan is to starve us.  Also notice all the supermarkets that have shut down due to "consolidation" Lots of them in the past few years.  From what Ive seen, I take it pretty seriously.  An egg laying chicken could become worth an oz of gold. Think about it.  The chicken in this situation is considered precious as is the gold. They are trying to make it seem like its naturally happening, but its not.  This is my opinion anyway.

They just found 60,000 dead antelope in 4 days  http://www.cbsnews.com/news/60000-antelope-died-in-4-days-and-no-one-kno... This could be a weapon of mass destruction test, the weight of these animals is similar.  It would be highly unlikely disease could have this impact.  Disease usually isnt so perfect.   Do you think they would tell us if it was?  They sound shocked and say "We have no idea" as time drifts past.  A month or so ago there was a chicken coup in NY that someone turned off the fans/AC and all the chickens died.  Pay attention to these events.  Food and Water.  Also notice the contamination of our water. 

Im not joking at all when I say people should pay attention to this.  Its happening very slowly and subtlety.  The way people get their food today is very different than during the last depression.  If the day comes its going to be a fucking disaster.  Jade Helm planted military all over this country.  Things are adding up pretty quick.  Historically its not out of the realm at all.  How ironic it would be to starve a bunch of fat Americans?  Its just starting to look a bit crazy out there.

Check this out: https://www.google.com/search?q=mass+animal+die+offs&biw=1627&bih=953&so...

Dont go swimming in the Ocean with a cut because the fishys are hungry.

Sun, 10/04/2015 - 11:49 | 6628208 Sudden Debt
Sudden Debt's picture

I just googled it as you said and if you start digging it's horrible to say the least!

80% of all fish are gone? FUCK ME! And that's just from the last 20 years alone! At this rate they say it's over in a decade from now!

Then there's the drought and the amount of farmland that is eroded on a daily basis! Man, if you add that to the increase of the population, there's also a deathcross building up.

No wonder you see so many websites promoting bugs as food!

That's just F. scary if you read to much of all of this.

And the droughts, I can't remember when we had a good rain this year or for the last few rains even. 

For a while when I go walking the dog, I already noticed that 3 lakes that I pass and my dog normally swimed in is dry or with just a few muddy spots.

My garden's top layer is dust and sand. Everything is still very green but that's because I have underground watering system and if I shut it down for a week, the plants start to hang.

It's weird to say the least

Sun, 10/04/2015 - 16:20 | 6628943 Wow72
Wow72's picture

Thanks.  Its not all conspiracy B.S.   "It's weird to say the least" It is.  Its amazing when you have it in the back of your mind how much you will notice.  There are things each day/week that are happening.  The idea that somehow this will all remain orderly is kind of crazy, eventually something has to give.  The idea that this is all somehow "Natural" and has nothing to do with US is the height of insanity.  It also very well could be a new kind of silent warfare.

Sun, 10/04/2015 - 16:41 | 6628416 Wow72
Wow72's picture

Im not saying the world is coming to end, Im saying this is what im noticing, I maybe wrong on some of it, but overall its pretty fucking wild. If you dont agree or vote it down, just say why.  Please. 

 

This give a little more info on the antelope and they say its a bacteria so it maybe natural? http://www.techtimes.com/articles/82274/20150905/mass-die-off-of-saiga-c... If it is natural there is a ton of this going on.  Bacteria can be weaponized and this was a seemingly normal bacteria.

This is a 2013 google map of mass extinction events https://www.google.com/maps/d/viewer?mid=zkyG3w_e9ris.kZXuhwFuocYo&hl=en_US pretty crazy even if every one of these events are "natural".  Doesnt seem very healthy or natural at all.  I think it would be easy these days to make it look "natural".

All this being said, I really dont think they tell us the truth.

Notice this site is called Whispers? Whispers? psst.  https://www.nwhc.usgs.gov/whispers   Its an event reporting site. They call it Whispers? Cant imagine why?  When I was checking it out I felt like whispering.  We should take this more seriously.  The title of this gov site gives me cause for concern. Their Motto: "Whisper - We wouldnt want to alarm anyone." thats a joke. No lets not stop to see if there is a major problem, lets sweep it under the rug.  You really cant make this shit up. 

Sun, 10/04/2015 - 07:59 | 6627655 Cloud9.5
Cloud9.5's picture

The circus ends three days after the bread runs out.

Sun, 10/04/2015 - 08:28 | 6627704 Better Failling
Better Failling's picture

Interesting reminder about how centralised decision making can wreak havoc in a society.
One thing though.
Eventually people will figure out that the value of gold is psychological rather than real so holding on to it during an economic crises will not make much sense once this happens.

Sun, 10/04/2015 - 08:54 | 6627745 Arbysauce
Arbysauce's picture

Money as a technology is extremely valuable (useful). Gold's real value is its suitability as money. It's scarce, divisible, durable, etc. I would say psychology only enters into the equation when choosing between gold and some other money that has similar characteristics.

Sun, 10/04/2015 - 10:29 | 6627763 Wow72
Wow72's picture

The reason it will work and always has is because its simple, reliable and you don’t have to take anyone’s promise.  Its the most simple reliable form of trade and has been for over 5000yrs, Ill take that track record.  When society breaks down humans always default back in crisis because they can trust gold, its a simple and reliable store of value, unlike governments.  It is hard evidence of work performed, it is money.  The dollar isn’t money, its a promise that its money, which is different.  A promise doesn’t make it money.  The dollar is only as good as its promise.  Would you accept a promise from the US gov right now?  What about after everything collapses and you know all they were doing was lying?  The dollar will become worth even less than the worthless instrument they have turned it into.  The long-term value trend will remain intact, which is down.  Any paper currency in my opinion is flawed.  Plato says man has no use for paper currency and its pretty clear lately to me why he says that, because we are simply humans and cant handle it.  Gold is over 1000/oz because the dollar has so little value, you need many more of them to purchase real work. Even if you lose dollar value in gold it will still hold its value better than the dollar in the end.  They are trying to make gold seem worthless while they buy it up.  Whenever I say gold I mean gold/silver.  I love silver.  This is my opinion.

Gold = Truth

Silver = Healing

Whenever everything collapses it collapses down and just replace gold with gold/silver.  This is the truth: https://en.wikipedia.org/wiki/John_Exter

Sun, 10/04/2015 - 10:06 | 6627916 Stevious
Stevious's picture

To understand the origins of money debasement (and what is happening today) I heartily recommend Max Shapiro's book "The Penniless Billionaires"

Though largely about hyperinflationary events there is a wonderful chapter on money expansion in the US from the mid-sixties to 1980.  It's well documented and follows the money, and illustratels a sort of soft corruption whereby wealth is transferred to the elite.

You can find one via inter-library loan, though odly most have been long stolen from libraries.  I suspect someone does not want the masses reading this book thus its demise and a lack of reprinting.

It can be had on half.com for as low as $10 but in scary times (like today) it rises to its current $28-50.  During the Lehman crash the cheapest it could be had was about $100.

It's a fun read too.

Sun, 10/04/2015 - 10:15 | 6627939 yellowsub
yellowsub's picture

Call it a cycle, not really history.  No one learns from history to avoid the same mistakes...

Sun, 10/04/2015 - 16:38 | 6628705 jzcjca00
jzcjca00's picture

Few people realize that the transistor was invented in 1925.  Imagine where we might be today if the world had not largely ignored it for over 20 years.  It turned out to be arguably the most important invention of the last century, enabling computers, spaceflight, cell phones, the internet, etc.  Why are we like that?

Perhaps the greatest invention of this century will turn out to be Bitcoin, which can stop governments from causing economic ruin by inflating their currencies.  Seven years after its invention, bitcoin is much more widely known and used than the transistor seven years after its invention, but not as widely as this disruptive technology deserves.

Gold was a great form of money when most transactions were face-to-face, but it is not great choice today.  It's poor portability makes it a poor choice for Internet transactions, and with several new technologies threatening to vastly inflate the supply of gold, it's no longer a good choice as a backing for fiat.

Bitcoin is the money of the internet, existing first and foremost in digital form.  It's the money of freedom, since you don't need third parties like central banks and governments to use it.  It's the money of global economic stability, since governments cannot print more.

Money is the magic ingredient that makes civilization possible, and Bitcoin is a better form of money.  It's time for a complete separation of currency and state!

Mon, 10/05/2015 - 06:01 | 6630228 Faeriedust
Faeriedust's picture

Wow.  Writer COMPLETELY  IGNORES the extremely important political events taking place at the same time as these monetary gyrations.  It is clear that the Assignat currency was shaky, but NO MORE SO than the government itself.  1789 was the year that the Bastille was stormed and the King was taken into civil custody.  It's hardly surprising that a fiat currency issued by a government widely seen as temporary, illegitimate, and likely to disintegrate did not engender the trust necessary to support what was fundamentally a promissory note.  Bonds issued by companies that are in the process of bankruptcy are similarly hampered.

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