Exposing The Narrative Of Debt, Fear, And Insecurity

Tyler Durden's picture

Via Golem XIV blog,

On March 4 1933 FDR in his inaugural address to the American people said,

“…the only thing we have to fear is…fear itself….”

And it’s true. It is fear more than anything else that prevents people from turning away from what has failed them and stays their hand from picking up the tools which would allow them to build what would work better.  And precisely because it is true, every politician, banker, judge and general has realised that if they wished to stop change from weakening their grip on power and wealth, then what they need above all else is …more fear.

As FDR went on to say, it is

“…nameless, unreasoning, unjustified terror which paralyzes….”

So if you want to control a people and contain their desire to replace the system which benefits you, with one that benefits them, then you need to feed them fear and the more of it and the more slippery and inscrutable it seems to them, the better.

A looming, shadowy foreign power lurking just beyond the borders is always good.  Russia, China, Communists in general, or if they are too far away, then any kind of socialist will do at a pinch.  In 1983 Margaret Thatcher famously branded British miners and their union as  ‘The enemy within.”  Terrorists are a wonderful new fear.  They are everywhere, much like Red’s used to be under every bed.

All these are good and have been used, still are used, to good effect. But there is a new fear, one closer to the fear FDR was talking about. And the currency of that fear is Debt.  Here is a very short history, in just a few sentences, of how debt became the currency of fear.

In the era of Clinton in the US and Blair/Brown in the UK there was a sea change in the ‘left’. I think Clinton, Blair and Brown had all decided that the traditional left dream of redistributing wealth from the richest to the less well off, was no longer politically viable. Reagan and Thatcher, they felt, really had shifted the political ground.  What to do? The answer, I think, was fed to them precisely by those whose wealth the left had traditionally been trying to ‘redistribute’. Why try to prise wealth from us, the wealthy, they whispered,  when instead we wealthy people will be delighted to give the poor debt instead? Instead of being at war with the wealthy and the managers of our wealth, why not work with us? Leave wealth with those who ‘have earned it’ they would say. Leave it with those who know how to manage it, how to make it grow and give a healthy return. Instead, give the poor debt.  Or to paraphrase the obvious, “Let them eat debt.”

And so Clinton and Blair and Brown re-launched the left, or murdered it, depending on your point of view, with their new idea. Leave wealth with the wealthy and give the poor debt.  Free the financial world from silly FDR-era restraints and irksome, stupid regulations and allow a rising tide of debt to float all boats.

And so long as  you could convince others, and believe yourself, as that arch fool Brown declared, that he had left behind boom and bust, then all was good. The rich were no longer assailed for being rich nor asked to give any of it up, to those less well off. In fact the new politics needed their wealth and was in fact tailor made for them to become much more wealthy. The poor would be given debt as a substitute for wealth. They would feel wealthier, and would indeed have more to spend. And as long as house prices grew faster than their debt payments, and the stock market made every GDP figure larger and more endlessly fabulous than the last, then the debt machine would churn on and on.  Debt was sugar without the calories. You could gorge without getting fat. What could go wrong? House prices were never going to go down again! Remember that?

And then it popped and fear bloomed.  And a lesson, I think, was learned .

People knew that in the good times Debt kept poor people quiet. Like any drug it could take away the fears and worries of being poor. For as long as their high lasted they would feel better, happier and politically calmer.  Debt drugged the poor into happy passivity. Why should they listen to those who argued for the old, hard, political struggles, when the politics of debt was so seductive and easy? People encouraged you to have debt. They fell over themselves to give you as much as you wanted. More in fact. Much more.  More than you needed. More than you could every really pay back. But who cared? This was true for the poor but also for the entire system of banks and traders and funds that made the system work.

The political lesson learned, was that when the bad times came, far from being useless or harmful, debt worked new wonders.  In the bad times debt created fear. Fear of losing your house, your job, your future.  Debt, in the last ten years has created a powerful, pervasive, global narrative of nameless fear.  Debt is a fear that is everywhere. Not just over there, a weapon pointing at you from afar, but right here at home. It could reach in to your house and take it from you. And there was no one who would prevent it. It was not a foreign invader but a new force of nature. This was the new narrative. It was just the way things were and are. You can yell about austerity but debt does’t care. You are in debt and your whole nation is in debt. And debt is a faceless, unknowable, uncontrollable, supranational, almost supernatural force which you cannot tame or defeat. So proclaimed the new debt-backed narrative of fear and insecurity.

The political lesson is that in the good times, use debt to drug and pacify. In the bad, use it to create fear and insecurity.

The same debt that floated their boats can be used to drown them. And it might just be that the fear and insecurity of the bad times can be maintained for longer than the drugged euphoria of the good times.  All you need to make it last and last and last some more,.. is more debt.

It’s simple, if you need more fear, create more debt.

Raise that debt ceiling. Expand your lending criteria. Embrace sub-prime. They are not your enemies! They are you allies. Through them you create the debt that creates the fear that creates the supine acceptance of the system that has enslaved them.

It’s perfect.


But not quite.

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Five Star's picture

US household debt is actually decreasing relative to GDP. There is an awful lot of debt growth, no doubt, and in nominal terms household debt is rising. But the real growth is mostly on the corporate and government side of the equation.



YUNOSELL's picture

Well there is great reason to fear when everyone is led to believe that all Walnut shells have a gold coin under then and we each own one, but when we find out that not only is there only one gold coin under one of the walnut shells, and by expert sleight-of-hand it will always be moved to a position where you guess wrong and the big banks actually own it

BennyBoy's picture


Debt is the new boogeyman?

I thought it was NK this week.

JSBach1's picture

At what point does the debt ceiling become invisible to the human eye -- even with a telescope at hand? Or was it an illusion of a ceiling to begin with?

Creepy_Azz_Crackaah's picture

Debt sure worked well for me when I wanted it.

Fritz's picture

The debt was created while pulling an immense amount of demand forward.
Demand mean reversion will make the debt/GDP ratio it's bitch.

Consuelo's picture



What is scary about all that demand (and years of it) being pulled forward, is how much population growth can be directly attributed and laid right at the hands of said, and what will become of that 'excess' when the $propeller seizes.  

ET's picture

Look at the warning signs of a new monetary order emerging.

Physical Gold and Silver are proving once again what sound money is.

Durable, fungible, desired and scarce. Time is running out to prepare. The crypto casino is about to end as the gamblers cash in their chips. The crypto money will pour into Hard Assets.

AntiMatter's picture


"Paying ones "debt" is a personal moral issue'"




ShamanX's picture

Except when it is backed by the government. Then they will come after you if you don't pay.

Catullus's picture

Meh. That's a big tent on the left. The people who cared about civil liberties, anti-establishment types, anti-war, conservationists (not that lunatic environmentalist nonsense) weren't bought off with low interest loans. They were triangulated into giving support to crony leftists because they won't dare cross the aisle. And why should they? The neocons have been filthy savages.

You're left with welfare or warfare parties.

Winston Churchill's picture

Really ?

You believe that crap you're spouting ?

Theres no daylight between the two.

Consuelo's picture



The only thing we have to fear is...   A corrupt administration which goaded the Japanese into attack, Mr. Roosevelt...?

Anteater's picture

No, that would be the Jekyll Islanders, who set up the Fed

then goaded America into the WW1 slaughter house for

the war profits of the Rothschilds under Woodrow Wilson.



And now, exactly 100 years later, they own Trump too.

BennyBoy's picture


Like Lincoln gooded the southerners to attack fort sumpter.

Consuelo's picture



"I worked night and day for twelve years to prevent the war, but I could not. The North was mad and blind, would not let us govern ourselves, and so the war came."

SunRise's picture

Goodness - The North sounds like the U.S. Administration's attitude toward Russia!

tripletail's picture

With the middle class nearly extinct and more than half of the available labor force unemployed, the author's clever debt game will not likely last much longer before the people turn on the those responsible for their debt-driven demise.

FreedomWriter's picture

When people only spend their spare cash to service debt (usually bank loans, insurance companies and tax authorities) the only spare cash available is what flows from the printing press. The people servicing debt won't see much of that.

As a result, the financial markets can not finance companies that might actually produce growth and new jobs. Much easier to borrow at 0 % and earn 2% on speculation.

Prepare to be assimilated. Resistance is futile.

vladiki's picture

Nothing to fear but fear itself ... terrific rhetoric but mostly BS. Fear is a normal rational emotion; like 'pain', unpleasant but protective and to be heeded. Beware of politicians telling you to not be fearful. They probably have you pre-tagged as collateral damage.

JailBanksters's picture

The Fear is not enough people are buying money that doesn't exist to empower the Jews.

The Unsecurity is, the Jews no longer empower the Debt Slaves.


slipreedip's picture

It used to be that religion was the oppiate of the masses. Now of course it's debt. 

They both offer salvation and a better world.

They both call for child like levels of faith.

They both require you to suspend logical thought.

They both end up taking far more than they actually offer.

Escapeclaws's picture

Since when does this little article pass muster on ZH? ZH has more advertising than any other site I visit. Now there are these tiny little articles that get a few sporadic comments. Most of the articles have "jerk your chain" titles.

What is going on here? (ZH is a good source of news that doesn't print elswhere.)