One Trader Loses It Over Draghi And Yellen's Lies

Tyler Durden's picture

Epsilon Theory's Ben Hunt is one of our favorite commentators and market analysts. He is a very rational, even-keeled and objective observer and trader of the capital markets, no matter how broken or centrally-planned they may be. Which is why we were disappointed to see that the two most recent appearances by the world's foremost central-planners, Draghi and Yellen, managed to incense him as much as they did.

From Ben Hunt of Salient Partners (pdf)

Funny How?

I was watching the Draghi press conference the other week, and I had to turn off the TV. I found myself getting so … angry … not just at what Draghi was saying, but also the live blog reaction and the live market reaction, that I decided I was better off stepping back from the actual event and trying to figure out why I was having such a powerfully negative emotional reaction to the entire charade. It’s not the charade itself. I mean, if I were outraged by every inauthentic display of central banker “communication policy” and the media lapdog response, I’d be in some sort of permanent apoplectic fit. In fact, neither the central bankers nor the media even pretend any more that extraordinary monetary policy has any sort of material impact on the real economy, which I suppose is actually progress on the authenticity scale in a perverse sort of way.
I travel a lot speaking to investors and allocators of all sizes and political persuasions. I also read a lot from a wide variety of sources, also of all sizes and political persuasions. What I’m seeing and hearing on every issue that concerns capital markets and economics is not only an accelerated polarization of policy views between the left and the right (greater “distance” between the views), but also – and more troubling – a polarization (and in many cases a non-modal distribution) of policy views within the left and the right. The kicker: I think that this polarization is almost entirely driven by monetary policy and the power/wealth inequalities it creates. Central bankers are not only planting the seeds of truly systemic instability, they are watering and tending and nurturing this particularly virulent strain of “green shoots” with their entirely intentional and entirely successful efforts to inflate financial asset prices and mandate reduced volatility in capital markets.

The fact is that maintaining massive debt and creating massive wealth – which is what central banks DO – is a political exercise, pure and simple. It’s nothing else. It’s not social science. It’s politics. Yellen and Draghi are the most powerful politicians in the world, and what makes me angry is their unwillingness to confront the essential nature of their actions, to call what they do by its real name. It makes me angry because the longer the High Church of Central Bankerdom denies and ignores the raw political impact of their actions, the more likely it is that we will have a structural political accident that will destroy every bit of the debt maintenance and wealth creation that the High Church has labored so hard to build. I think we’re getting very close to that sort of political accident.

I’m pretty sure that I agree with absolutely none of Thomas Piketty’s policy prescriptions. And the impact of his bugbear – tax policy – on wealth inequality is laughably minor compared to the impact of a triple in the S&P 500 market cap or central bank purchases of trillions of dollars of bonds. But if you don’t recognize that Piketty has a point when he says that today’s wealth inequality is both outrageous and poisonous, you’re just not paying attention. Increased wealth inequality always leads to increased political polarization, within and between countries, within and between political entities. That was true in the 1870s, that was true in the 1930s, and it’s true today.

What happens when you get greater political polarization? The center does not hold. You get Bizarro world. You get political outcomes that cannot be anticipated by econometric or median voter models. You get political outcomes that will be perceived as illegitimate by a meaningful number of citizens. You get the New York Times writing encouragingly that even with a more aggressive tax regime, the Federal government could still “allow” citizens to take home 50% of their income. Wait. What?

Here’s a fairly typical example of the polarization phenomenon I’m talking about, this from the Pew Research Center based on 1994 – 2014 data. Everything in this chart is significantly worse today, and the same chart could be drawn for every other country on earth (including one-party states like China). You could also draw a chart with exactly the same dynamic for Congress. Or FOMC voting member views on raising rates. Or financial advisor views on liquid alternatives. Seeing polarization is like seeing the homeless … once you start looking for it, you will see it everywhere.

It’s not just the distance between the median Democrat voter and the median Republican voter that concerns me, it’s the shape of the Democrat electorate and the shape of the Republican electorate. A consensus outcome, where a significant majority buys into a final decision, is more difficult when the median voters are farther apart, but by no means impossible. It’s the lack of a single modal “peak” near the median voter within each party that makes consensus so very, very difficult. Why? Because the human animal has designed any number of effective preference aggregation schemes (elections and markets, for example), but none of them work very well at all when preferences are all over the map, when there is no “peakedness” to the preference distribution. There is no voting scheme that can identify a consensus when there is no consensus to be had, and that’s true whether you’re talking about the Republican party or the American electorate at large or the FOMC or the Chinese Politburo. On the contrary, the only thing you are guaranteed to have in a “non-peaked” system is a majority of unhappy members with ANY single construction or faux presentation of consensus.

In practice, one of two things happen in this sort of non-peaked social system. Either a new political dimension is constructed such that a peaked distribution emerges and a consensus outcome can be supported (this usually takes the form of identifying a common enemy, like Commies or Billionaires, or of appealing to a higher power, like Allah or Science), or you get a political accident where fundamental rules of markets and government shift drastically. I’m not looking forward to either.

What does this mean for investors? It means that at some point in the next year or two, I think we are all going to have a Henry Hill “Goodfellas” moment, where we think that we understand the conversation going on around us, where we think that we’re engaged with our social system in the usual way … and then everything will go sideways in a split second, and we will suddenly and with extreme clarity realize that we don’t understand anything at all except that we’re sitting at a table with a maniac. Or if you want a more light-hearted metaphor, we will all have a George Costanza moment where we come to the realization that all of our instincts are wrong. Most of us, of course, have already endured more than a few of these George Costanza moments here in the Golden Age of the Central Banker. I think you ain’t seen nothing yet. It’s not the Minsky Moment I’m worried about, where some credit bubble internal to markets wreaks havoc as it pops. No, it’s the Sideways Moment that I’m worried about, where a political accident external to markets wreaks structural havoc on the entire market system.

Do I understand why Draghi is doing what he’s doing? Do I understand why the Fed is getting colder and colder feet about raising rates? Sure. They’re watching inflation expectations continue to collapse. Here’s the latest chart for the primary metric for US inflation expectations, 5-year forward rates, courtesy of the St. Louis Fed.


Inflation expectations are THE most important data point in the Fed and ECB models that drive monetary policy decision making. And those models, driven by this chart, say that you’re a fool if you raise rates now. Or if not a fool, then at the very least you’re taking on significant post-Fed career risk. Hard to see some big hedge fund shelling out the big bucks for another ex-Fed Chair if this is what makes everything go sideways.

What Draghi and Yellen are doing is exactly what happens when you abdicate social policy to models, when you pretend that you’re just a technocratic financial regulator, and I suppose that’s what makes me angriest of all. I can see where this is going politically. Everyone can see where this is going politically. And maybe we’re already too far gone to change the politically polarized course we’re on. But we have to try. We have to speak honestly about the political dimensions of extraordinarily accommodative monetary policy in its maintenance of massive debt and its creation of massive wealth. Because if we don’t speak, then others will speak for us. And we won’t like what they have to say.

* * *

Our advice to Ben, do what we do: instead of getting angry at the central planners who know the game is almost up, just laugh at them. It drives them nuts.

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max2205's picture

So much insanity 

illyia's picture

if I were outraged by every inauthentic display of central banker “communication policy” and the media lapdog response, I’d be in some sort of permanent apoplectic fit.

I remember outrage. Back during the turn of the last century - just before 9-11. Then I was willing to fight. But all those metaphors about the boiling frog turned out to be true. The heat is still rising, and what do I do? I roll over to get the other side.

Would not want to be cooked unevenly...

NoDebt's picture

"Everyone can see where this is going politically. And maybe we’re already too far gone to change the politically polarized course we’re on. But we have to try. "

No, sir.  It is the knowlege that it really was all over in 2008 and everything since has been nothing more than buying time that changed everything.  There is no reason to go anything but "all out" in your pursuits any more- political or otherwise.  The next downturn is the widowmaker and everyone knows it.  Get what you can while you can.  There is no longer any reason to hold anything back.  Be as extreme as you want- it makes no difference in the "long run" since there is no "long run" for the current system any more .


Four chan's picture

the worst thing to ever happen to a man, is the forced total reevaluation of his values. 

mrpxsytin's picture

I don't deny that. But there are so many layers of delusion protecting us from that forced evaluation. Many people will even cling to the delusion that it's better to die than give up their values. 

Majestic12's picture

"we’re sitting at a table with a maniac."

So, does that mean we get to smash Draghi and Yellen's heads in with bare hands?

I'm in!

Fukushima Fricassee's picture
Fukushima Fricassee (not verified) Four chan Oct 29, 2015 5:49 AM

Well fuck that, besides this is what the 2nd amendment is for.

Reichstag Fire Dept.'s picture

I can't believe I'm saying this but...VERY sage words, very sage! That's how fucking wrong things have gone with this is good advice.

BlindMonkey's picture

I have to applaud your pseudonym.  That is very, very clever.

Flankspeed60's picture

An honest introspection.

Lacking within ourselves the necessary narcisism and megalomania characteristic of the leadership needed, we keep hoping that someone else will ride in and inspire us to revolt. I have long since concluded that the 'fight' you refer to must be directed, not at changing Washington, but abandoning it altogether. Secession and reorganization of like-minded states is the only viable alternative, IMO.

That is a fight I can still  muster enthusiasm for!

Majestic12's picture

"Secession and reorganization"

Still within the confines of the "admiralty law" that will make any such effort meaningless.

Erase the magna carta, the legal system that binds us and then its done.

Flankspeed60's picture

Please refer me to the Article of our Constitution that forbids secession. Then, imagine our founders contemplating joining a union from which they are forbidden to withdraw, regardless of the tribute exacted or the tyranny of its governance. Can any intellectually honest scholar believe that document could have been ratified? Lastly, the subjects of a rogue and lawless government need not be bound by any prevailing 'admiralty law' which itself is held in contempt by that government. See 'Declaration Of Independence.'

lakecity55's picture

Hey, Henry Hill had a warning. Before Joe Pesci's character (Tommy DeVito) stomped Batts,  the  made guy to death, he shot the kid, Spider, in the leg. That told you he was a loose cannon, but to murder a made guy w/o permission was insane, and so was the character Joe played.

They were lucky Pesci was the only guy whacked for an unsanctioned murder.

The writer is correct: The Banksters are insane politicians, but they're Gangsters (Banksters)!

What society in its right mind would deny interest on savings, allow banksters to steal and be repaid from the public tax base?

It took me a while to figure out, but I finally realized all the PR about "Jade Helm" had nothing to do with war games, it was a cover to stash materiel all over the country in different spots, mothball it, and wait until you need it to suppress the civil revolt once the next TBTF "nuke" goes off.
Get a copy of "Ferfal's" book. We are headed for Argentina. It's a great primer.

Hopeless for Change's picture

"What society in its right mind would deny interest on savings, allow banksters to steal and be repaid from the public tax base?"

The Great Society, apparently!!!

And "we" not only let them steal, but become degenerate gamblers with an unlimited line of credit.

gimme-gimme-gimme's picture

Hopefully these traders start jumping off buildings soon.

junction's picture

Ben Hunt has tunnel vision, among other things.  The world's money supply has been looted, there are in excess of $2 quadrillion in derivatives out there in tranches, most no different than counterfeit money.  Obama is an NWO creation, a person with no verifiable history before the age 20 when he went to Columbia University.  The World Trade Center complex was destroyed by controlled demolition, its scrap metal shipped in sealed China Shipping trucks to Chinese recyclers so no tests for explosive residue could be done on the girders.  The plan now is to flood Europe and America with homicidal jihadists and criminals hiding among immigrants fleeing various hellholes in Africa, from Eritrea to Somalia to Mali.  None of these travellers have any skills, many will wind up in hospitals for the diseases they carry, most infectious, some incurable.

Anyone with any real money has a bolt hole prepared for impending destruction of Western civilization that is the result of having an NWO antichrist in charge of the USA.  You already see the decline of civilization, police forces filled with pedophile, drug dealing cops.  An American judiciary filled with Nazi type judges.  For science, you have climate change charlatans pushing carbon taxes and other drug company owned doctors pushing vaccines that disable and kill people, besides not working. 

And waiting in the wings is dope dealer Hillary Clinton, so angry at the makers of the movie "Mena" that she passed the word to try to bump off the movie's producer, Tom Cruise.  He somehow decided against getting on that air flight in Columbia, so only the pilot and a passenger were killed when the sabotaged plane crashed.  

This guy Hunt (Ben, not Ethan) is a real dimwit. 

Hobbleknee's picture

Bookmarked for the historical records.

Rearden-Steel's picture

The only way to win is not to play

lakecity55's picture

Start bartering!

My repair guy barters. He wants Ag, but we both collect it, so we trade other stuff. I did get 30% off an item at a gun show using Ag, however. The trade was worth it.

Aquarius's picture

Lies: Damn Lies and more Damn Lies. That is to say, Economic Theory in practice:

"People who lie to themselves, and believe their own lies, becomes unable to recognize the truth, either in themselves or in anyone else.  And they end up losing respect for themselves and for others. When they have no respect, they can no longer love. 

So they yield themselves up to their impulses, indulging in the lowest forms of pleasure, and behave in the end like a thing obsessed in satisfying their vices.

And it all comes from lying — to others and to yourself

."Fyodor Dostoevsky, The Brothers Karamazov

As regards the outrage that is felt when being confronted with lies and hyperbole as the authorities et al, would present on TV and elsewhere - it is a natural human reaction which leads to violence; it is the seatof revolution and it seems a natural safeguard against the insanities of the institutional Power Cults that would destroy the Planet, for want of a dime. A good source reference is Hannah Arendt - On Violence.

Ho hum

847328_3527's picture

Very very few politicans in DC represent the people anymore. Newt was right; DC is nearly 100% disconnected from America.

algol_dog's picture

Lets face it. We all instinctively know, that a rational "normal" person would never consider running for a high political office in the 21st century. You have to have some kind of pathology related to that need, which by its very nature implies an inherently unstable person. 

OldPhart's picture

I've seriously considered it.

But couldn't stand the thought of working with psycopaths on a daily basis.

So I sit on the sidelines and continue to work for a large, privately owned, operation,

lakecity55's picture

I remember from Andrew Jackson's biography how he hated Vichy. He beat one guy, got off, but hated the idiots he was serving with. Still, he had been asked by his fellows to stand for Congress. He got out of it as soon as he could.

That shows the character of a guy who would later take on the Power of Nelson Biddle and whack the private bank. Biddle retaliated by withdrawing the money supply, but Sharp Knife persevered and Biddle lost.

LetThemEatRand's picture

"Yellen and Draghi are the most powerful politicians in the world."

They are not politicians as they are not elected.  They are rulers.  Get that through your head, and everything else makes sense.

LetThemEatRand's picture

I would love to read this Jack (even though I'm a bit bleary eyed from the debate drinking game I invented) but I get an error message when I click on the link.  

EDIT:  I'll bet you were trying to correct the link when I replied.  That, or the Black Escalade came to visit.

Radical Marijuana's picture

Google gives 2 definitions for

the plural noun: politicians

The first involves elections.

However, the second says:

a person who acts in a manipulative and devious way, typically to gain advancement within an organization

That definition clearly applies to any central banker, who is necessarily a professional liar and immaculate hypocrite. They are skilled in maintaining attitudes of deliberate ignorance towards the basic social facts that their institutions are based upon governments ENFORCING FRAUDS by privately controlled banks, which are allowed to create the public "money" supply out of nothing as debts for everyone else, while "monetary policies" are the attempts to deviously manipulate the relative rates of the creation of that "money" out of nothing as debts, against the disappearance of that "money" back to nothing.

The comment above posted by Aquarius was apt:

People who lie to themselves, and believe their own lies, becomes unable to recognize the truth, either in themselves or in anyone else.

However, in my view that kind of superficially correct psychology does not look deeper at the evolutionary selection pressures which drive those who are professional hypocrites to have successful personal careers within institutions such as central banks.

"Democracy," and along with it the legitimacy of the "rule of law," both DIED when the banksters captured control over the public money supplies. After that supreme achievement of organized crime capturing control over the political processes was accomplished, through POLITICAL FUNDING ENFORCING FRAUDS, everything else has automatically gotten worse, faster ... with no end in sight to how bad that runaway debt slavery system, driving debt insanities, is going to get. Since money is measurement backed by murder, because the debt controls are backed by death controls, the runaway debt slavery, becoming debt insanities, is set to provoke death insanities.

At the same time, that the public "money" supplies have ALREADY been almost totally privatized, means that the majority of "citizens" are ALREADY acting like incompetent political idiots, or Zombie Sheeple. Since the vast majority of people were ALREADY being fleeced to exhaustion, there are no good grounds to doubt that they will eventually be slaughtered. There appears to me to be no reasonable basis to doubt that the vast majority of people almost everywhere would stop acting like incompetent political idiots, whose elected representatives have GIVEN AWAY THE POWER TO MAKE "MONEY" OUT OF NOTHING AS DEBTS TO PRIVATELY CONTROLLED BANKS.

That situation has ALREADY become runaway vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS, in ways that the vast majority of people do not understand because they have been successfully conditioned to not want to understand. Therefore, basic statements regarding what a democracy should do, which is first and foremost that the people should control the public money supply, have become almost totally inverted and perverted, since now tiny minorities of privately controlled banks control the public "money" supplies.

Statements made by famous North American leaders, such as previous American Presidents and Canadian Prime Ministers, would currently be mostly unintelligible to the majority of Americans and Canadians, (while, of course, the same is most true about most of the rest of world's population.)

For instance, such as from President Lincoln:

"The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of the government but it is the government's greatest creative opportunity. By adoption of the these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity."

Or from the longest serving Prime Minister of Canada, William Lyon Mackenzie King:

"Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile."

Creating the money supply, as a public utility, should be government's supreme prerogative, and greatest creative opportunity, and its most conspicuous and sacred responsibility. Instead, giving away the power to make money out of nothing to private banks was the most insane domestic policy that a government could ever adopt! However, it is easy to explain the history of how that actually happened. It was simply the history of the application of the methods of organized crime to take control over governments, in a runaway spiral of the success of fraud enabling those who did that to constantly be able to get away with even more frauds. That started more slowly and secretly. However, it was on an exponential growth curve, so that it now is becoming blatantly obvious to even mainstream morons that the banksters have become the new royalty, who are above the law, because they effectively control the political processes.

Pretty well every significant political project for Centuries has been the implementation of the international bankers agenda, which was outlined by historian Carroll Quigley as being:

powers of financial capitalism
had another far-reaching goal,
nothing less than to create a
world system of financial
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ...

However, I regard it as a mistaken label to refer to that as being "financial capitalism."  Rather, it is actually the triumph of organized crime, because being able to make the public "money" supply out of nothing as debts is NOT "capitalism." Rather making "money" out of nothing is actually NEGATIVE CAPITAL, which effectively destroys "capitalism."

Similarly, the basic and important social fact is that after "We the People" lose control over the public money supplies (while instead the public money supplies are being created out of nothing as debts, by privately controlled banks, in ways whereby those FRAUDS ARE ENFORCED by governments), means that "democracy" was already killed by those events, and along with that the "rule of law" became less and less effective, but rather, eventually the banksters became the new royalty, which were above the rule of law, due to the degree to which they had almost completely corrupted their political puppet politicians, who would be voted for by enough of the masses of muppets, in order to keep the vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS, automatically get worse, faster ...

The so-called "New World Order" is NOT New, but rather, merely the Old World Order continuing to develop, on the basis of backing up lies with violence, becoming more sophisticated and globally integrated systems of legalized lies, backed by legalized violence, which are less and less even bothering to pretend to properly legalize themselves anymore.

In my view, the only thing that happens when one learns about these things is that THE MORE ONE LEARNS, THE WORSE IT GETS! There are no feasible, nor plausible, ways that the basic political problems are going to be fixed in any better ways, due to the basic social facts that there ALREADY EXIST sociopolitical systems based upon ENFORCING FRAUDS, while those could only have developed to ALREADY EXIST in the ways that they do now because, for generation after generation, the vast majority of people more and more became incompetent political idiots, that acted like Zombie Sheeple.

The runaway triumphs of the applications of the principles and methods of organized crime to control civilization primarily manifested as the public "money" supplies becoming FRAUDS BY PRIVATELY CONTROLLED BANKS, WHICH WERE ENFORCED BY GOVERNMENTS. The excessive successfulness of the applications of the methods of organized crime through the political processes, (with the supreme achievement of that being the legalized counterfeiting of the public "money" supplies by privately controlled banks) has driven civilization as a whole to manifest runaway criminal insanities.


while the BIS is the King of Kings of Frauds.

As Carrol Quigley also stated:

That system was "to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements. ...The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. ... It must not be felt that the heads of the world's chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks."

People like Draghi and Yellen are currently the symbolic figureheads of the globalized systems of electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. NOBODY UNDERSTANDS THAT ANYMORE, INCLUDING THE CENTRAL BANKERS!

The triumphs based upon ENFORCED FRAUDS required that the vast majority of people develop attitudes that deliberately ignored the principle of the conservation of energy, as well as deliberately misunderstood the concept of entropy in the most absurdly backward ways. Inside that overall context, the superficial symptoms of the ways that "democracy" and the "rule of law" are ALREADY DEAD are superficially observed by some people, BUT, then they propose superficial "solutions," because they do not go through enough profound paradigm shifts in the ways that they perceive those political problems.

The problems are WAY WORSE than most articles and comments published on Zero Hedge ever tend to admit and address! That is especially the case because it appears to be politically impossible to resolve those deeper problems, since the established systems are that the FAKE DEMOCRACIES were already operated by the banksters' political puppets, who would be voted for by enough of masses of muppets, while there are no good reasons to expect that the majority of people in Europe, North America, or elsewhere, are going to stop acting like incompetent political idiots.

Indeed, the vast majority of people do not understand how the monetary and taxation systems really work, and moreover, have been conditioned to not want to understand. The school systems and mass media continue to massively LIE BY OMISSION, while that situation of generalized abysmal ignorance tends to therefore automatically get worse, faster, rather than is ameliorated in any significant ways.

While I agree with the overall gist of this article above, all of those developments are due to the basic ways that civilization necessarily operates according to the principles and methods of organized crime, because human beings and civilization necessarily operate as entropic pumps of environmental energy flows, in which context the death control systems are necessarily central to everything else, while history selected those death controls to become most socially successful by becoming the most deceitful, and upon that basis financial successfulness become based upon frauds, through the vicious spirals of reinvesting the profits from frauds in more frauds, through the funding of the political processes.

All human beings live as entropic pumps of energy environmental energy flows. As soon as we perceive human beings as separate from their environment, then they live as gangs of robbers. The only things that exist are the dynamic equilibria between different systems of organized lies operating robberies. There are combined money/murder systems, whereby the debt controls are backed by the death controls. Money is the most abstract form of private property, which was always based upon backing up claims with coercions, and so, money is measurement backed by murder.

Civilization developed through the history of warfare. Economics exists as a subset of warfare. That was how and why we ended up with political economy based on governments enforcing frauds by privately controlled banks. I REPEAT: Most people do not understand that because they have been conditioned to not want to understand that. They do not want to face the facts that the production of destruction of controls production. They want to believe that there are fundamental dichotomies between the productive people versus the predatory people. However, the actually existing situation is that there are no people who do not live as predators (and/or parasites, which is merely a question of scale and distribution of the predation.) That includes the investors, who do not want to understand what they are really doing when they are necessarily operating through fundamentally fraudulent financial accounting systems, due to the public "money" supplies being based upon governments ENFORCING FRAUDS by privately controlled banks.

Governments are the biggest forms of organized crime. Governments are actually military organizations, while warfare was organized crime taking place on larger and larger scales. The same basic principles and methods of organized crime were applied by the international banksters to capture control over the powers of governments, mostly through dominating all aspects of the funding of the political processes. Indeed, that social situation has been almost 99% already accomplished, as seen when one looks at the degree to which the so-called public "money" supplies have been privatized all around the world today. While everyone has some power to rob, and power to kill to back that robbery up, governments assembled and channeled those powers to rob and to kill, while then those powers were effectively privatized, by the international banksters, and the corporations that have grown up around those banksters capturing control over the public "money" supplies.

While the frequencies of appreciating those social facts is way higher in the Zero Hedge world than in the population more generally, most of those who begin to understand that governments are the biggest forms of organized crime, controlled by the best organized criminals, continue to promote bogus "solutions" based on the same old-fashioned bullshit, because they do not engage in deeper analysis.

As soon as life exists, then the death control systems direct the evolution of that life, and that also applies to human beings and civilization. Consistent contradictions have developed through the history of successful warfare and successful finance, since those were necessarily based upon organized crime, while those who were the biggest and the best at doing that were then able to present themselves publicly as being the opposite of what they really were.

The vast majority of people have ALREADY been almost totally brainwashed to believe in false fundamental dichotomies, and the related impossible ideals, so that enough of them can easily be fooled, enough of the time, by the best available professional hypocrites, such as politicians who are the banksters' puppets, getting elected by muppets. Similarly so for those who are selected to operate the various banking institutions. Moreover, there are almost no publicly significant opposition groups that do not also stay within that frame of reference of believing in false fundamental dichotomies, and therefore, offering bogus "solutions" based upon impossible ideals, that misunderstand their mechanisms in absurdly backward ways, and thus actually cause the opposite to happen in the real world.

It is NOT possible to have better genuine "democracy" unless enough people understood that, as "citizens," they were necessarily members of an organized crime gang, called their "country." Furthermore, it would not be possible to have any real "democracy" unless those people generally controlled the public money supplies. However, in order to do that, then those people would have to understand that money is measurement backed by murder, as the most abstract from of private property based upon backing up claims with coercions. (By and large, most investors want to continue to believe that economics is all about production, and that they were saving and investing in production. However, that is another delusion, because most investors are also lying to themselves about that.)

Everyone is stuck inside using the public money supplies which are about 99% based upon governments ENFORCING FRAUDS by privately controlled banks. Those established debt slavery systems have generated numbers which have become debt insanities, which are mathematically and physically impossible problems to solve within those systems. Instead, we are headed towards those runaway debt insanities provoking death insanities.

The basic problems underlying everything are that civilization is necessarily controlled by the methods of organized crime, in ways which have become excessively successful and extremely unbalanced, due to the vast majority of people becoming incompetent political idiots, who are mostly bullshit consumers, rather than competent citizens. Since there is only one energy, there is only one sociopolitical system, and that system matches the principles and methods of organized crime. I REPEAT: As soon as human beings perceived themselves as separated from their environment, and each other, then they necessarily had to live as robbers. All other labels and terms for various sociopolitical systems tend to be based on their bullshit false fundamental dichotomies, and related impossible ideals, rather than based upon understanding those sociopolitical systems as general energy systems, through unitary mechanisms, because it is all the same energy flowing through.

Firstly, the vast majority of people do NOT understand that the international bankers are the best organized gangs of criminals, which have almost totally captured control over almost all governments. Secondly, most the few who do recognize those social facts then continue to still want to promote bogus "solutions" based upon the same old-fashioned false fundamental dichotomies and related impossible ideals, because amongst the few people who do understand that governments have become the biggest forms of organized crime, controlled by the best organized gangs of criminals, there continues to NOT be any deeper understanding of how and why that necessarily happened.

Civilization is headed towards psychotic breakdowns, due to it being controlled by systems based on backing up lies with violence, that never stop those lies from still be being false, but which sociopolitical systems continue to appear to be successful, because they can continue to ENFORCE FRAUDS, despite that those frauds continue to be false. Overall, Neolithic Civilization's social pyramid systems, based on being able to back up lies with violence, are headed towards series of psychotic breakdowns, and crazy collapses into chaos, provoking severe social storms to blow through, because of the ways that financial successfulness based upon ENFORCING FRAUDS has driven the sociopolitical systems that developed to do that to become more and more psychotic, in the sense of becoming more and more detached from relatively objective physical, biological and social facts.

The European Union was made and maintained by professional liars and immaculate hypocrites, the same as in North American political systems, and everywhere else, more or less, following the same basic pattern of pyramid systems based upon backing up lies with violence. It is inside of those long-established and very deeply entrenched systems that people like Draghi and Yellen are currently symbolic public figureheads. However, the deeper reasons for how and why that necessarily happened are appreciated by practically nobody. Rather, by and large, the majority of people appear to continue to want to believe in the bullshit spouted by the professional hypocrites that run the established systems, while the only publicly significant opposition to those established systems are also mostly operated by similar professional hypocrites too!

To stop lying about monetary policies would require one stops lying about the ways that money is measurement backed by murder, as the most abstract form of private property being claims backed by coercions. In general, it would be theoretically possible to perceive and discuss political economy and human ecology in ways whereby their artificial selection systems were made to become more consistent with the general understanding of natural selection systems. However, the history of successful warfare based upon deceits, morphing to become successful finance based upon frauds, has resulted in all of the sociopolitical institutions being almost totally dominated by professional hypocrites, which makes any better resolutions of the problems become politically impossible.

In that context, Draghi and Yellen are fundamentally politicians, who are basically similar to other more obviously elected politicians, because they all serve the same systems of legalized lies, backed by legalized violence, which they get away with continuing to do in more and more unbalanced ways because those systems have been developing for thousands of years to become what they are now ... HOWEVER, SINCE THOSE SYSTEMS HAVE RELATIVELY RECENTLY BECOME GLOBALIZED ELECTRONIC FRAUDS, BACKED BY ATOMIC BOMBS, NOBODY CONTROLS THOSE ANYMORE, BECAUSE THAT HAS BECOME SOMETHING THAT NOBODY UNDERSTANDS!

bunnyswanson's picture

Condensed version:  The Bristish are coming (in a variety of covert ways).

RockySpears's picture


We have enough of our own problems without you lot being added to them.


Thanks for the thought though

Aquarius's picture

Excellent article @RM

I have been saying (to a non-existant audience) for a quite a while now, that the Bankers have become King

and their Word is Now Law.

The public Coronation was arranged by Paulsen and Bernanke, but of course, we know that it was secretly celebrated with the birth of the FedRes.

Intuition has signalled me some time back that the game is up and the end of the Feudal System or organized "government" (crime) is about over. I don't expect it to passover peacefully, but FYI, I forecast Q4 2015 as the public beginning. This to be followed by at least 8 years of Chaos (Hell upon Earth).

Capitalism has been captured for too long and the "unwashed" are becoming aware and are self-empowering themselves - albeit slowly; the evidence is glaring and Global. All this as the West dies in "extremis". The latter will not be pretty and many will die.

Good to see that you are still about - take care



Fod's picture

Actually, Bankers are the High Priests of the Economy, our new god. Unfortunately, due to commodity fetishism, the economy  is the new religion of the world and you always get priests with religions. 

Radical Marijuana's picture

I agree, Fod, the monetary system is our primary State Religion, as demonstrated by its faith-based money, which is otherwise backed by nothing (although covertly backed by murders, but through indirect ways, that can not be confidently counted upon.)

lakecity55's picture

O/T but still relevant: Russians smarter than Europeans:

lakecity55's picture

Thanks for using "legal." Eichmann "Legally" sent victims to the SS camps, but it was certainly not Moral Law (natural law).

And we are certainly not following moral law in the West.

Aquarius's picture


"Those who are able to see beyond the shadows and lies of their culture will never be understood, let alone believed, by the masses." -  Plato food for thought

blindman's picture

then, they become the masses.

Kprime's picture

am I still in the comment section???

ThirteenthFloor's picture

RM +1. Well summarized. As long as people deal with fiqure heads or front men, the cannot get to the root of the problem.

Watch Apocalypse Now as a journey of a man trying to find his ruler, not a war movie. "Son, who's in charge here ?"

Crocodile's picture

It is a lack of worldwide morality; no nation or world can function legitimately without THE fixed moral compass given to us for our good.  Let us start with do not lie; if everyone stopped lying, first to themselves, then to others that would solve a majority of all man's problems, but we can't help ourselves because we are liars by nature.

Radical Marijuana's picture

Yes, 13th, I too thought that Apocalypse Now was an excellent combination of the metaphorical and literal problems into the form of a movie! The appropriate metaphors found in the movie Apocalypse Now were also developed in this earlier article, that I also commented upon there:

Hollow Men, Hollow Markets, Hollow World

The crucial point in the movie Apocalypse Now was that took place during the time when the Viet Nam War then was the first "war" taking place after the MADness of Mutual Assured Destruction had developed, because, during the late 1960s, into the early 1970s, was when there were developed enough weapons of mass destruction that any war, fought to exhaustion, would almost totally destroy the whole of civilization everywhere. While the murder systems have become INSANE, simultaneously, those murder systems were backing up a monetary system which was also always INSANE, because it was the MADness of Money As Debt. During the previous several decades, those two MADness have grown and grown, to become globalized electronic frauds, backed up by weapons of mass destruction. Our problems are now trillions of times worse than ever before in human history. It is NOT possible to go back to having the superficial notions that "money" is a store of value, or all of the rest of the list of shallow ideas about what "money" should be. Instead, I REPEAT: MONEY IS MEASUREMENT BACKED BY MURDER. It is due to that basic fact that civilization operates through debt controls backed by death controls, where the debt slavery has generated numbers which have become debt insanities, which are on the verge of provoking death insanities.

Little By Little, We Went Insane

While I certainly agree that "Little By Little, We Went Insane," the kinds of solutions promoted by reactionary revolutionaries, who refuse to face the fact that sovereignty is based on the power to rob, are merely more of the same old-fashioned fundamental dichotomies, and related impossible ideals. There is NO way to have a sane and stable money system without a sane and stable murder system to back that up. However, comprehending such a concept would take a profound series of intellectual scientific revolutions, which were then applied through politics, and especially to monetarism, and militarism.

Governments are the biggest forms of organized crime, controlled by the best organized gangs of criminals, who, simply because they are the biggest and best organized, get to call themselves "governments" and "bankers." However, there are NO genuine solutions other than to MAYBE go through the processes of developing better organized crime. Human realities are always organized lies, operating robberies. Private property is always claims backed by coercions, while money, as the most abstract form of private property, is always measurement backed by murder. Our basic problems are due to progress in science and technologies, through the industrial revolution, developing at exponential rates to become globalized electronic financial frauds, backed up by the threat of the force of weapons of mass destruction. Meanwhile, those systems are operated by professional liars and immaculate hypocrites, whose degree of social success was dependent upon how good they were at being lying hypocrites.

Human civilizations are general energy systems which are operating according to the way energy works. However, within the human world that meant that society was controlled by the people who were the best at being dishonest, and backing that up with violence, so that civilization as a whole developed along the lines of least morality. Human laws were connected to natural laws by the ability of physical force to back up symbolic frauds. Thus, the currently established civilization has almost totally become systems of legalized lies, backed by legalized violence. For Sure: "Little By Little, We Went Insane" because the application of the methods of organized crime to the political processes enabled the banksters, as the Fraud Kings, to control the powers of states, that had previously been built by the War Kings. First and foremost, the power to tax and legal tender laws enforced the frauds of private banks making the public "money" supply out of nothing as debts, which debt slavery systems then automatically drove themselves to generate numbers which became debt insanities, which is the cusp of political events that we find ourselves upon today. However, most of the people do not understand that, and do not want to understand that, and therefore, continue to be act like political idiots, or Zombie Sheeple, while the few reactionary revolutionaries who do are like Black Sheeple, as illustrated by the authors published in the "Sovereign Man" blog, that promote the impossible goals of going backwards, towards the idealized, old-fashioned, notions of what "money" should be. Sorry folks, but money IS measurement backed by murder, which HAS become globalized electronic frauds, backed by the force of atomic bombs.

There are no genuine solutions outside of those apparently impossible problems, which were symbolically dramatized from the Viet Nam War onwards, without being better resolved, but only got MADder and MADder ... The chronic political problems that human beings face now are the same as always, only technologies have amplified those by trillions of times. "We" are going to be forced to operate death controls, to back up debt controls. The currently established systems were selected by historical pressures to become based on the maximum possible deceits and frauds. Since almost nobody is going to be able and willing to publicly admit that, we are most probably headed through some series of severe social storms, and the psychotic breakdowns of debt insanities provoking death insanities. However, there actually continues to be no other better genuine solutions than to develop better death controls, no matter how practically impossible that theory appears to be at the present time.

Meanwhile, the movie Apocalypse Now was a great dramatization of someone on the front lines of warfare, coming to terms with the development of weapons of mass destruction, in ways which therefore drove them to go insane, due to the inherent nature of those utterly insane problems, presented by the EXISTENCE of weapons of mass destruction, as MADNESS BACKING MADNESS.

gadzooks's picture

Wow@LetThemEatRand! Exellent Observation!

ThirteenthFloor's picture

Yellen and Draghi are front men for the rulers. Rulers never identify themselves to the masses.

Very few Americans knew or know today Morgan and Rockefeller and Harriman were made front men of the Rothschilds. How can you navigate a life while being blind ? You will eventually collide crash....and burn.

Government needs you to pay taxes's picture

Make that list and check it twice.  Prepare to deal hate to those who aren't nice.

Don Pancho's picture

Paul Eberhart wonders where the trader last saw it?

nakki's picture

I love the Henry Hill moment and while I agree with much of what is said, using fed expectations for inflation is part of the problem. Insurance, rents, cost of education (student loans ) real estate taxes, food and the stock market itself all point to inflation.