Rotten To The Core

Tyler Durden's picture

Submitted by Robert Gore via Straight Line Logic blog,

Coercion is inseparable from corruption. When a group coerces with impunity, it steals from, lies to, defrauds, and enslaves the subjugated. The dominant group invariably develops a morally comforting ideology of its superiority and the subjugated’s inferiority. Such relationships are the essence of corruption.

Every square inch on the planet is subject to the jurisdiction of one or more coercive regimes, with their attendant corruption and fraud. Trillions of dollars, euros, pounds, and yen, et al., are extracted from the productive and diverted to governments, who buy political support. Trillions more are borrowed. Central banks issue fiat debt units backed only by laws mandating their acceptance and extract funding for governments via the hidden tax of debt depreciation and the hidden theft of debt monetization and interest rate suppression. Regulation allows governments to reward cronies and extort and terrorize the unfavored. Perpetual wars benefit militaries and those who supply the armaments, with part of their profits recycled to those championing war. This is pervasive, legal corruption. One can only guess at the extent of sub rosa criminality, which may dwarf it.

Last week’s Brexit vote, in particular financial markets’ reaction, underscore the corruption and fraud, and the inevitability of its failure. Brexit is a victory for Britain’s honest producers; those who work in districts far removed from The City, London’s financial precinct. They will be freed from onerous European Union mismanagement, bureaucracy, regulations, and taxes that have contributed to Europe’s economic stagnation, dearth of innovation, and persistently high unemployment, especially among its youth. The European Central Bank’s debt monetization and negative interest rates, while obscuring the sorry state of the European economy, have only made it sorrier. Chronic debt issuance has left many European governments, and their banks, which own much of that debt, one economic or financial crisis away from insolvency.

British voters chose to free themselves from the EU albatross, although they will still be plagued by numerous home-grown albatrosses. The pound, euro, equity markets, and oil plunged, while perceived safe havens gold, the dollar, yen, and US Treasury debt rose. (The yen is not really a safe haven, but much of the world’s “carry” trades—borrowing to fund nominally higher yielding, but risky speculations—are funded at low Japanese interest rates. When those highly leveraged trades go south, margin calls create a demand for yen to repay the underlying loans.) There were telling details amidst the carnage. Continental equity markets, particularly those of Spain and Italy and their banks, suffered far larger percentage drops than the British stock market. The British, were they to remain in the EU, would be expected to help support the Europe’s southern tier.

When the high and mighty sing the same tune—Great Britain needs the EU more than the EU needs the British—the opposite is assuredly true. The British economy has outperformed most of Europe’s sluggards. Trying to get a fix on large banks is always a crap shoot—their financial statements are usually next to useless—but it appears that British banks and their regulators took more steps to address the problems exposed by the last financial crisis than their continental counterparts and may better withstand the coming stresses. Then again, British banks were hit just as hard as continental ones in the two days after the vote.

Never underestimate the petulance of humiliated Eurocrats, or other poobahs for that matter. What terrifies the Eurocrats is the virtual certainty that the British economy will outperform Europe’s after the Brexit. They may cut off their constituents’ noses to spite their own faces, erecting trade barriers against British goods and services, for which Europe’s consumers will pay the price. However, trade barriers are a two-way street. Britain is an important export market, especially for the de facto leader of the EU, Germany, so cooler heads may prevail, a hope expressed by Nigel Farage in a remarkable speech to the European Parliament.

Can anything be more corrupt than the desire to gratuitously harm another to preserve one’s power? Such corruption is the rotten core of the global economic and financial system. Its pilots are determined to fly it into a mountain, but will fight to the death any attempt to wrest away the controls. The financial markets’ reaction to Brexit has been appropriate, but anyone expecting asset prices to take one-way rides down or up in the directions they were pushed by Brexit will be disappointed.

Global finance and global statism are Siamese twins joined at the brain, a fact made abundantly clear during the last financial crisis. Heavily indebted governments depend on the machinations of central banks and the acquiescence of markets to perpetuate their economic misrule. Governments, in turn, coddle and succor their indispensable allies. Too big to fail, bail outs, and deposit insurance are their backstops for the inherent risks of fractional reserve banking, turning it into a heads-we-win, tails-the-taxpayers-lose proposition. Central banks provide emergency fiat liquidity on preferential terms—financial market “puts”; promote cartelization, and serve the constituent banks they were meant to regulate, acting as the banks’ agents within governments.

Brexit is a shot across the bow, but it is only a shot across the bow. Financial asset prices will continue to be supported or suppressed as the powers see fit. There is not one price in the entire firmament of markets and finance that is not pegged to continuing regimes of corruption and fraud. To transact based on such prices is a bet that a rigged game will stay rigged.

The belief that it will is understandable, but a house of cards must fall. Political winds—Brexit and what’s sure to follow—may blow this one over; it may collapse due to its structural deficiencies, or, most likely, some combination of the two will render it rubble. The important point is that rotten-to-the-core economies and finances, resting on foundations of coercion, corruption, and fraud, have to be rendered rubble before freer, more honest, and more durable structures can be erected.

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samizdat's picture

You didn't buy the dip?

OldPhart's picture


I'm on the ass end of my vacation.  I'm in Seattle, across from the Abu Bakr Islamic Culteral Center of Washington.  I'm in the Knight's Inn (a fairly decent, three room kitchenette, with a jacuzzi tub.

I'm across the street from the Abu Bakr Cultural Center of Washington. All of a sudden it's Muslem Midnight Mass. They're gathered by the hundreds in this itty-bitty place. Kinda creeps me out. Map shows two locations, I'm at the Knight's Inn currently. Something is up tonight.
OldPhart's picture

Nervous Nellies are scrambling.  Cops just pulled in hot.

Troy Ounce's picture


Come on. What's the worst that can happen? 

They throw you off a what?

Muh Raf's picture

Wow, some of you guys have been exposed to so much of the anti-Islaam propaganda that you clearly have started to believe it and have become paranoid - exactly the mental state which they are attempting to achieve in the mindless masses. It's very reminiscent of of Ralph the vigilante in the classic 1970s carton "Wait till your father gets home": since Abu Bakr was the first Sunni Khalif there can be little doubt that this is a Sunni mosque. Since it is now the last 10 days of the lunar month of Ramadhaan they will no doubt be attending their congregational Taraawih prayers with vigour.

BigJim's picture

Please! All discussions concerning Muslims here must be conducted in a fact-free zone; how else are we to arrive at genuinely independent conclusions?

Sky flyer's picture

Fry up some bacon oldphart. That should scare them off.

Squid Viscous's picture

may I suggest you change out of your super tight jean shorts and extra small wife beater tee shirt with gay pride button, stat !

D Nyle's picture

Show them the bottom of your shoe, that always gets them going (Hint =ultimate insult)

OldPhart's picture


Nothing happened, except a few old broads bummed a few cigarettes off of me.

No idea what was so important to them, but 'The Gathering' was disconcerting.

Sandmann's picture

England needs a huge reduction in Bank Liabilities loaded onto GDP especially when the Assets are in Offshore tax havens. The heroin trip since 2008 needs to go cold turkey and start the long climb back to rationality.

Getting to grips with real business and bringing living standards into alignment with trade balance is essential.

Importing Romanian gypsies to be "self-employed" thieves and Somali welfare junkies when the Netherlands cracks down in their fraud is not helpful. Keeping millions on welfare because Thatcher hid the Unemployed on Disability Benefit giving the UK more Registered Disabled than anywhere in Europe and the highest Illegitimacy rate is not the way to build a vibrant society.

Hard Choices. As Stalin said "He who does not work, does not eat"

GUS100CORRINA's picture



mvsjcl's picture

But the church was so good at exposing the nest of child-molesting vipers in its midst! They probably don't want to loose their tax-free status. (Psssst! Let me whisper something into your ear: They work for the Status Quo. Sure, the world has moved away from their version, Status Quo 1.0, to "newer and better" Status Quo 2.0, but it's the same old fleece the masses racket they've always been in.)

. . . _ _ _ . . .'s picture

"When a group coerces with impunity, it steals from, lies to, defrauds, and enslaves the subjugated."


"He who owns the house you live in, the car you drive in, and who assures you a salary for your subsistence, is, in fact, appropriating your freedom or, at least, a part thereof. However, liberty is indivisible." -Mouammar KADHAFI

zhandax's picture

"Brexit is a victory for Britain’s honest producers; those who work in districts far removed from The City, London’s financial precinct."

All four of them?

Just to pry  the London financiers away from the continent is a win for the English.            

Kina's picture

And the head of that roting... Jean claud Juncker Quisling

Tigg47's picture

"You wanna do business in my hood? You have to pay and take in limitless migrants"

That is how the EU-Mafia works. Will not last long, I am telling ya.

Sid James's picture

Come on America, take the red pill and free yourself from the slavery of self-interested politicians.

Become the worlds first true democracy with referendums for every major policy decision. Shake off the shackles of the deadbeat, dishonest shysters and take control.

NoIdea's picture

"Can anything be more corrupt than the desire to gratuitously harm another to preserve one’s power?"

A good description of US foreign policy for the last 50 years


mvsjcl's picture

And domestic policy for the last 30 years.

amanfromMars's picture

Now that all the earlier carefully prepared, business as usual, political scripts for supposed representatives of the people have been rendered null and void, is everyone running around in hysterical confusion and panic, trying manically to find an original narrative which leads everyone forwards in a visionary direction.


However, what is so evidently lacking in those little closed circles of remote influence, is working imagination and new ideas taking full advantage of the chaos of markets and spin which have lost mass command and control.


That indicates there is no viable proactive and HyperRadioProActive leadership from the media hosted charade that has ugly actors in roles of politicians. But then such has been the case for some considerable time now, and the cumulative result is now much easier for all to see.


One can expect much mischief to be afoot taking full advantage of the opportunities available and stupidity which abounds.


A little something irregular and unconventional shared earlier elsewhere, and intelligently designed to virtually autonomously energise and relatively anonymously direct deep and dark webbed facing forces facing analogue enemies in terminal, catastrophically vulnerable, exploitable decline in a whole new world of absolutely fabulous opportunity? Yes, of course, it is, and of course there is so much more you have yet to be advised of.


Things aint like they used to be, are they? And what way would you like them to be, if you have anything truly worthy of future inclusion and global presentation ...... virtual reality production, for that is, if not the name of the Great Game today, the major part of it with IT Masters in Remote Real Command and Virtual Control with Global Operating Devices?!. 

bunnyswanson's picture

Money is moving in the other direction.  Out of UK in form of loan of the predatory nature.  Thanks to Hollywood collaborators > The world is a stage.  The elimination of white christians and middle class is the goal, and anyone who happens to get in the way.  Money in the hands of peasants leads to trouble.  USA was created after a STAMP tax.  A tax on every sheet of paper.  If a crown's stamp was not on a sheet of paper in your possession, tax evasion charges were filed.  Oppression of information, censorship of the sordid sort, and taxation without representation aka slavery.

zippy_uk's picture

Liquidation in capital markets / capitalism = punishment for failure and reward for the better run winners. This is where GROWTH comes from.

Someone explain that to all these SJW types (use the baseball bat methods as it is the most efficient).

Batman11's picture

Francis Fukuyama in 1992 said it was “the end of history” and Capitalism had been the only successful economic system to stand the test of time.

Even then work was well under way to turn it upside down.

40 years ago most economists and almost everyone else believed the economy was demand driven and the system naturally trickled up.

Now most economists and almost everyone else believes the economy is supply driven and the system naturally trickles down.

Economics has been turned upside down in the last 40 years.

In the 1960s and 1970s we had some of the lowest levels of inequality in history.

The new upside-down economics is driving inequality.

The new-upside down economics isn’t new at all, its neoclassical economics that led us into the Wall Street Crash of 1929 and led to massive inequality in the 1920s.

It has been tried and tested and found wanting, but it has been rolled out globally again.

It has done exactly the same as it did last time. It has led to another Wall Street Crash in 2008 and 1920s levels of inequality.

Neoclassical economics believes its raw capitalism naturally tends to stable equilibriums where in reality it polarises and falls over due to lack of demand.

The IMF have already noted the lack of global aggregate demand and solutions like helicopter money are being put forward to keep the show on the road.

Keynes had experience of the failure of this economics first time round and realised it needed redistribution through taxation.

Unfortunately, it was used to design the Euro and has polarised the Euro-zone, the rich nations got richer and the poorer nations got poorer as it has no mechanisms to recycle the surplus from the richer nations to the poorer nations to maintain demand.

The US works by recycling the surplus from richer states to poorer states.

The Euro was designed with an economics that was tried and tested and found wanting, it is paying the price along with the rest of the world with this economics that polarises economies until they eventually collapse due to lack of demand.

To add to these problems we have papered over all the cracks with credit so nothing shows up until the situation has got really, really bad (about now).


Grandad Grumps's picture

The system is rotten because it is built upon Satan's will. If you do not believe he really exists, then you just have not been paying attention. Satan claims to be the savior of mankind, who rescued us from captivity in the Garden of Eden and who now wants to rescue us from captivity on earth. He promises that he will make us gods (or at least make his "chosen" gods). He is the father of lies. He uses evil to accomplish his goals. One cannot accomplish good with evil ... and yes, we have free will and with that free will we can choose to follow Satan or follow God ... maybe neither ... I do not know ... but, not both.

We are perfect in our imperfection. I "think" that we have a power that Satan does not possess and that he envies. We do have free will, the ultimate creation of God. It is my belief that Satan does not have free will. He can only do what he is programmed to do and must abide by the rules of his programming. He is programmed to lie, seduce and corrupt... and to oppose God. But he powerful as well. He has powers that we do not have.

The war is afoot. Satan believes he is ready, therefore heaven must be approaching.


Pumpkin's picture

I "think" that we have a power that Satan does not possess and that he envies.


What he envies is the fact God affords man a glipse of separation without making it a permanent decision.  Satan and the angels that followed him, by making the choice with full knowledge, cannot undo their fate.  They hate mankind with a passion, and by doing so serves man and God.  IMO.