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From Elastic Economics To Elastic Money: The True "Economic" Underpinnings Of The Status Quo

Tyler Durden's picture




 

Wonder why the premise of a Gross Domestic Product is bunk? Wonder why politicians care first, foremost and only about bailing out banks, with little thought put to actually saving that core driver which according to economic canon is responsible for 70% of GDP? Wonder why the status quo is more threatened by a gold, or any kind of standard, that limits the potential of infinite dilution of nominal concepts? The Privateer's Bill Buckler expains, in three short paragraphs, the great lies that are Elastic Economics and Elastic Money, and why everything else is noise.

From The Privateer

Elastic Economics?:

 

It is routinely stated in the US that the bulk of all economic activity is provided by what is called “consumption”. For at least two decades, the claim is made that consumption is the most important driver of economic “growth” and contributes anything between 65 and 75 percent of that “growth”. Nobody has ever bothered to explain how a nation which consumes more than it produces can be enjoying economic “growth”. There is, of course, a very good reason for that. It cannot be explained. As any individual knows, the road to the poorhouse is paved with consumption in excess of production. It cannot and never has been otherwise, no matter how “elastic” economic concepts have become.

 

There is only one essential sector left as far as those tasked with “running” the economy is concerned. This is the financial sector - specifically the banking sector and the financial assets markets. The rest of the economy, especially the dwindling part of it that actually produces goods, has been utterly sidelined.  When it comes to regulating production, anything goes. The elasticity shown here is all but infinite with no principles whatsoever involved in the avalanche of rules, regulations and restrictions routinely churned out by government to “protect” the consumer. But when it comes to the major facilitator of this government control, the financial sector, there is only one rule which has no “give” in it at all. That rule is that the financial sector will be propped up no matter how stretched out of shape the “real” economy becomes in the process. The reason is clear when we look at the ultimate in “elasticity”. 

 

Elastic Money!:

 

This is and always has been the object of the exercise. Every advance in “the art of the possible” in both politics and economics has been underpinned by it. According to the “theory”, money is the one economic good which CAN be created out of thin air. Indeed, the “money managers” go further than this. They claim that money MUST be created out of thin air if they are to go on “running” the economy. Here they are right. A market economy works by means of voluntary trade and for this, an unchanging medium of exchange is vital. A command economy is justified on the premise that those being commanded are getting something for nothing. That requires a money stretched to fit what they deem “possible”.

 

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Sun, 04/01/2012 - 10:13 | 2307506 Careless Whisper
Careless Whisper's picture

The Careless Whisper Sunday NY Times Update And Threadjacking

NYTimes Reports GoldmanSachs Rushed To Sell Stake In Online Underage Prostitution Company When Reporter Started Asking Questions

http://www.nytimes.com/2012/04/01/opinion/sunday/kristof-financers-and-sex-trafficking.html?_r=2&hp

GM's OnStar Lets You Track Your Spouse

http://wheels.blogs.nytimes.com/2012/03/29/in-soho-onstar-stages-a-show-for-helicopter-parents/?ref=automobiles

 Groupon Discloses "Material Weakness" In Financial Controls

http://dealbook.nytimes.com/2012/03/30/restating-earnings-groupon-discloses-accounting-issues/

 

 

Sun, 04/01/2012 - 10:53 | 2307545 Cursive
Cursive's picture

@Careless Whisper

I love your news filter.  You really need to be a regular contributor to avoid the threadjacking.

Sun, 04/01/2012 - 11:03 | 2307556 Careless Whisper
Careless Whisper's picture

Thanks for the compliment. The threadjacking part isn't meant to disrespect the author of the post. I think of it as grafitti art.

Sun, 04/01/2012 - 12:40 | 2307587 economics9698
economics9698's picture

The reason for fiat and central banks is simple.  It allows a selected group of elites to counterfeit money and outbid the peasants for any production that is desired by the federal government and Wall Street elites.  War machines, corruption, wealth beyond the average peasants’ wildest imagination.  It is a system of indentured servitude for those not connected to the counterfeited cash.

A gold standard and individual banks issuing their own currency forces the federal government and Wall Street to live within their means without the assistance of counterfeited cash.  It means that these people have to produce goods and services that society wants.  It means that they have to balance their books or go bankrupt, see 1907 Knickerbocker financial melt down.

Lincoln fought a civil war for corporate welfare and the privilege of the elites to counterfeited money and he won.  McKinley was assassinated because he believed in hard money. 

When the fiat collapses remember these elites, who they are, show them no mercy.  Let them hang…slowly from the nearest tree.  

 

Sun, 04/01/2012 - 13:27 | 2307789 masterinchancery
masterinchancery's picture

+1000%

Sun, 04/01/2012 - 14:51 | 2307925 WmMcK
WmMcK's picture

McKinley was assassinated because he believed in hard money.

Yes, but they did put me on the $500 bill (and Kennedy on the '64 half dollar)

Sun, 04/01/2012 - 16:02 | 2308037 lemonobrien
lemonobrien's picture

dead presidents, strange fruit.

Sun, 04/01/2012 - 11:30 | 2307591 Gully Foyle
Gully Foyle's picture

Careless Whisper

I've been looking at Ford trucks. They have tracking software as part of some work package.

Makes me wonder if it only applies to trucks abd not anything running software in a Ford.

A couple of years ago it made the news you could track the wifes or kids cell. Something like $12 and supply the cell number.

There are also a number of apps that allow you to use your tablet or phone to spy on people.

Then again SCIFI authors for years have been proclaiming that technology brings about the death of privacy. I was troubled by a recent CSI episode that tried to state that public knowledge shames people into being better citizens. Even here the up and down votes act as a means of social control. The herd likes what you say you are popular, they don't you are expected to be shamed into following the herd.

Although that approach doesn't work with those who just don't give a shit, feel no guilt, or a don't wish to be part of the masses.

It's a strange fucking world where the children will call you a troll for posting shit, no matter how coreect, they disagree with.

The tech driven generations deserve every mistreatment they get. They decided that popularity is more important than truth. That being manipulated is more important than being a free thinker. That the illusion is more important than concrete reality.

http://theeconomiccollapseblog.com/archives/everything-is-going-to-be-al...

Everything Is Going To Be Alright?

Below, I have compiled a list of things that I have entitled "Everything Is Going To Be Alright?"

It is composed in the form of a song, but it really isn't meant to be sung.  It is probably actually more of an economic horror poem than it is a song.  What I have tried to do is to point out the absurdity of what we are all being told by our politicians and by the media.  Hopefully you will enjoy reading it as much as I enjoyed writing it....

-----

Yahoo is going to be laying off thousands of workers starting next work.

Don't worry about a thing - Barack Obama says everything is going to be alright.

Best Buy has just announced plans to close 50 stores.

Don't worry about a thing - JPMorgan Chase CEO Jamie Dimon says everything is going to be alright.

The mayor of Los Angeles has announced that the city will be laying off "a large number of employees".

Don't worry about a thing - Barack Obama says everything is going to be alright.

Baltimore is so broke that it has decided to look into selling off some of the most famous historical landmarks in the city.

Don't worry about a thing - the mainstream media says everything is going to be alright.

The city of Costa Mesa, California is so broke that is has decided to sell off its police helicopters.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The city of Trenton, New Jersey is so broke that it has decided to indefinitely postpone buying more toilet paper for city buildings.

Don't worry about a thing - Joe Biden says everything is going to be alright.

The capital city of Pennsylvania is so broke that it has decided to start skipping debt payments.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The state of Nevada has a 12.3 percent unemployment rate.

Don't worry about a thing - the pretty people on television say everything is going to be alright.

Total student loan debt in America has now passed the 1 trillion dollar mark, and about 270 billion dollars of those loans are at least 30 days delinquent.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The savings rate in the United States has fallen back to pre-financial crisis levels.

Don't worry about a thing - Harry Reid says everything is going to be alright.

Home prices in the United States hit a 10 year low in the month of January.  They are now down 34.4 percent from the peak in 2006.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The average price of a gallon of gasoline in the United States is rapidly approaching the $4.00 mark.

Don't worry about a thing - Anderson Cooper says everything is going to be alright.

Median household income in the United States is down 7.8 percent since December 2007 after adjusting for inflation.

Don't worry about a thing - Barack Obama says everything is going to be alright.

When Barack Obama first took office, the number of "long-term unemployed workers" in the United States was approximately 2.6 million.  Today, that number is sitting at 5.6 million.

Don't worry about a thing - Nancy Pelosi says everything is going to be alright.

The BRICS countries (Brazil, Russia, India, China and South Africa) are publicly declaring that it is time to move away from the U.S. dollar as the primary reserve currency of the world.

Don't worry about a thing - Barack Obama says everything is going to be alright.

One out of every five Americans will be 65 or older by 2030 and nobody has any idea where all the money is going to come from to pay them the benefits that they have been promised.

Don't worry about a thing - Rachel Maddow says everything is going to be alright.

More Americans are dependent on the government right now than at any other time in all of U.S. history.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The number of Americans on food stamps has increased by 14 million since Barack Obama became president and is sitting at an all-time record high.

Don't worry about a thing - Hillary Clinton says everything is going to be alright.

The U.S. government will add more to the national debt in 2012 than it did from the time that George Washington became president to the time that Ronald Reagan became president.

Don't worry about a thing - Barack Obama says everything is going to be alright.

The U.S. national debt is currently increasing by about 150 million dollars every single hour.

Don't worry about a thing - Federal Reserve Chairman Ben Bernanke says everything is going to be alright.

The Federal Reserve bought approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011.  This is a Ponzi scheme that will completely collapse at some point.

Don't worry about a thing - Barack Obama says everything is going to be alright.

Sun, 04/01/2012 - 12:06 | 2307630 Kayman
Kayman's picture

Gully, if everyone agrees with everything you write, then you've got nothing to say.

Thanks

Sun, 04/01/2012 - 13:53 | 2307834 RafterManFMJ
RafterManFMJ's picture

As soon as this becomes an option for new cars, I'm buying one. 

http://www.youtube.com/watch?v=ZIGzpi9lCck

flip a switch and ... gone.  'Course you'll need an app to find your car should you leave it engaged.

Sun, 04/01/2012 - 19:27 | 2308275 Neo1
Neo1's picture

A Banksters worst nightmare, forced to Return to Real Money.

The real reason you pay an income tax, is for the privilege of using a private currency.

Also known As A:  Federal Reserve Note

Demand from your bank or brokerage, lawful money and the tax goes away, with a tax exemption on lawful money, all of your money is yours.

http://www.21silver.com/?show=merrill&read=federal_reserve_act_remedy

http://stormthunder.com/federal-reserve-act/

Tax Exemption: http://stormthunder.com/federal-reserve-act/#ixzz1pOYzDgEm

 Web search these three different phrases:

Redeemed in Lawful Money  or

Redeemed in Lawful Money Pursuant to Title 12 USC §411  or

deposited for credit on account or exchanged for

non-negotiable federal reserve notes of face value  

Sun, 04/01/2012 - 10:55 | 2307549 Silver Bug
Silver Bug's picture

The status quo is scared to death of gold, because it would force some sane disipline on them.

 

http://silverliberationarmy.blogspot.ca/

Sun, 04/01/2012 - 11:22 | 2307577 Shocker
Shocker's picture

From the article above

"There is only one essential sector left as far as those tasked with “running” the economy is concerned. This is the financial sector - specifically the banking sector and the financial assets markets. The rest of the economy, especially the dwindling part of it that actually produces goods, has been utterly sidelined."

 

So spot on, the main core of the economy - Production, even the retail sector has been all but gutted. With propping up the bank idustry while letting the other sectors fall, may be great short-term but will create problems for many years to come.

http://www.dailyjobcuts.com

Sun, 04/01/2012 - 11:24 | 2307581 Bindar Dundat
Bindar Dundat's picture

BRICS, Greenbacks and GOLD

 

The end is near....

Sun, 04/01/2012 - 11:26 | 2307582 Bindar Dundat
Bindar Dundat's picture

Well in a few years for sure :-)

Sun, 04/01/2012 - 11:13 | 2307565 AlaricBalth
AlaricBalth's picture

Just another example of Goldman Sachs doing Gods work. (sarc)

Sun, 04/01/2012 - 10:05 | 2307508 Colombian Gringo
Colombian Gringo's picture

End the Fed!

Sun, 04/01/2012 - 11:06 | 2307560 DavidC
DavidC's picture

Colombian Gringo,
The way things are going it will end itself. It is already leveraged up at over 50 to 1, all it will take is for the market to demand higher rates (and it will come) and the Fed is toast.

China, Russia, India et al. must be sat in their armchairs LAUGHING at what the Fed (and the ECB) is doing, all they have to do is WAIT.

DavidC

Sun, 04/01/2012 - 11:20 | 2307574 Cursive
Cursive's picture

@DavidC

I'm now at the stage where I'm trying to understand the events that would flow from any scenario.  How do you envision that scenario playing out?  What comes after the Fed implodes?  I'm thinking that if the money is no good, that would imply martial law...unless maybe the UST steps in and converts us to real fiat money (chartalism).

Sun, 04/01/2012 - 12:08 | 2307631 zerotohero
zerotohero's picture

Cursive I too am at th..is stage - lots of "what if" scenarios and how do I best prepare for it.

Sun, 04/01/2012 - 12:17 | 2307646 francis_sawyer
francis_sawyer's picture

What "happens" is that you wish you'd have bought an extra hundred pound bag of rice...

Sun, 04/01/2012 - 12:53 | 2307732 Arnold Ziffel
Arnold Ziffel's picture

I hope not Fuki rice, or rice from central Cali.

ZH (I think George Washington) posted a thorough article here the other day that showed the Fuki plume and the LA area coated with 300% times the normal radiation level.

 

Mon, 04/02/2012 - 02:00 | 2308959 Western
Western's picture

Wow.

 

Well my post weathered a tornado induced internet outage so I can post this; what the fuck is wrong with you people, junking posts related to radiation on the west cost. It exists, and it's here.

 

These psyop wolfpacks are disturbingly active, but at least I can confirm what the media is blacking out.

Sun, 04/01/2012 - 10:10 | 2307513 alexwest
alexwest's picture

why do people try to make things appear more complex then they really are..
#
Nobody has ever bothered to explain how a nation which consumes more than it produces can be enjoying economic “growth”. There is, of course, a very good reason for that. It cannot be explained
##

what's the problem ?

yes USA consumes more than produces, difference is being IMPORTED..
WHERE DID MONEY CAME FROM to fund purchases ?

partly savings , where did rest of money come from? BIGGEST PART OF EXPORT IS american money : debt/ mbs/ raw currency /etc

well , another source of money is FED.. its been biggest source of money.
where did FED get the money? nowhere.. it creates from thin air..

proof of hypothesis - look at overall USA debt, fed gov DEBT, Fed balance sheet ..

WHAT IS IT SO HARD TO UNDERSTAND?

alx

Sun, 04/01/2012 - 10:23 | 2307523 I am Jobe
I am Jobe's picture

Are u asking alOgical question ? If so, you are not too far off. Nothing short of stupidity of sheeples consuming to nth degree.

Sun, 04/01/2012 - 11:10 | 2307561 GenX Investor
GenX Investor's picture

I think we are missing an important point of what money is? It isn't anything other than a store of value or a promise. If you create more promise or dilute the value of that store, you are not creating anything out of thin air, but rather you are stealing from the aggregate as we know they are deliberately trying to do in order to write down debt not directly but inadvertently. It is governments oldest slight of hand. Who owns the debt, well mainly banks, and they are backed by those same assets. So this is all a process to protect stock prices of banks while simultaneously not needing to impair their assets (loans are assets to banks). We also know that debt is both an asset and a liability or Dr and Cr on someone's balance sheet. So someone is being harmed in the magic "thin air" concept? No free lunch! No free lunch! No free lunch! Make banks write down their balance sheets. The FED is deathly afraid of debt deflation, which is exactly what they are fighting, nothing more nothing less.

Sun, 04/01/2012 - 11:23 | 2307579 Kayman
Kayman's picture

Precisely.

And this is why the money multiplier has dropped so much in the past five years. Bernanke has shored up the rotten loans on the Banksters balance sheets. Printing electronic money to fix the past not the future.

Unfortunately for the self-appointed "expert" on the Great Depression, the Quantum of Debt matters as much as the Quality. We are stuck for decades of underperformance because Bernanke saved his pals, not the economy.

Money should be the stable connection of the present to the future. Bernanke has created more uncertainty.  

Sun, 04/01/2012 - 12:24 | 2307668 riley martini
riley martini's picture

 GX Money is labor , money has no value without labor . The only exchange of money is for labor . Devaluing money devalues labor .

Sun, 04/01/2012 - 13:35 | 2307811 masterinchancery
masterinchancery's picture

Fiat money isn't a store of value, in any long term sense, because it always declines toward, and eventually reaches, 0. So the US population is a little cleverer than we think when they spend their fiat rapidly, though it doesn't do them much good to spend it on useless toys and transitory consumption.

Sun, 04/01/2012 - 10:10 | 2307514 Getting Old Sucks
Getting Old Sucks's picture

Yup, we sell dollars but you can't buy much here.  God help us when the carry trade is in the buying country's own money.  We don't have very much to sell.  Perhaps then we'll start to make things again.

Sun, 04/01/2012 - 11:12 | 2307563 Kayman
Kayman's picture

"an unchanging medium of exchange is vital."

Bernanke is paddling as fast as his short little legs will let him; to keep up the appearance of stability. But the rot has set in.  A nation that manufactures nothing cannot maintain a tradable currency. Death by a thousand cuts.

Sun, 04/01/2012 - 10:12 | 2307515 efiniti
efiniti's picture

But how can we survive without the Booooomss??

Sun, 04/01/2012 - 10:19 | 2307518 Total Collapse
Total Collapse's picture

Chart of Gold price vs debt ceiling:

http://goldsilver.com/re/common/images/images/Debt_vs_DollarLoss.png

 

 

The issue of whether or not to buy gold or silver now, is the issue of whether or not you believe politicians will be able to cut the 1.3 trillion dollars in deficit down to zero, which would be the only way to stop the U.S. debt's inexorable rise. 

To me, it appears that with more wars prompting new printing, and expanded healthcare programs prompting new printing, on top of the $1+ trillion in more spending than is taken in annually, the hope of reducing debt is merely that, hope.

Weren't we just sold a ton of hope?  I suggest shorting hope and going long physical precious metals.

 

 

Sun, 04/01/2012 - 10:22 | 2307522 Getting Old Sucks
Getting Old Sucks's picture

Yes, but when our gold is all that's left, I just know they're gonna take it from us one way or another.

Sun, 04/01/2012 - 10:30 | 2307527 Careless Whisper
Careless Whisper's picture

@TotalCollapse

Thanks for the link. By the looks of that chart, if the correlation is true, then gold should be about $2400/ounce, sans manipulation.

Sun, 04/01/2012 - 10:35 | 2307530 A82EBA
A82EBA's picture

Cast your gold into bullets and hide inside your special last stand 'clip of last resort'

Sun, 04/01/2012 - 14:44 | 2307913 WmMcK
WmMcK's picture

Thanks, printing to show anyone who can still read a graph.

Sun, 04/01/2012 - 19:55 | 2308306 smiler03
smiler03's picture

Print the chart including the price from 1980, much more revealing.... as ever it has conveniently been omitted.

Just a reminder, somebody who paid $850 per ounce in 1980 had to wait 27 years for the price of gold to reach the same price again.

Junk away.

Sun, 04/01/2012 - 20:11 | 2308317 akak
akak's picture

Fuck you and your disingenuous, cherry-picking, hopelessly stale and specious argument against gold, junior Nadler.

What about all those (who are almost infinitely greater in number) who did NOT buy gold at its all-time price peak in early 1980, but who bought gold say, a year or two earlier, or a year or two later, or at almost ANY other time than late January of 1980?  Quite a different story in THOSE cases, isn't it?

Oh, and remind me how those who bought stocks in September of 1929 had to wait almost FORTY YEARS for their investments (those which did not go bankrupt) to get back to the same level in real terms?  Or those who bought Japanese stocks or real estate in 1989, who are still over 80% underwater on their investments over 20 years later?  Two can play your same cherry-picked, anecdotal data game, dipshit.

What is that God-awful stench I detect?  Oh yeah, I recognize it now: roasted troll.

By trying to use such a ridiculous, anecdotal, intellectually dishonest argument, you would have instantly earned a permament "Ignore" status from me here, if only ZH would allow us that option.

Damn but I hate you anti-gold trolls every time you trot out that discredited canard.

Sun, 04/01/2012 - 21:02 | 2308455 Jena
Jena's picture

If we can ever get you to come out of your shell and say how you really feel sometime akak... but for now, I guess we can put you down on the pro-gold side.

 

Nice chart, Total Collapse.  I think it's pretty safe to bet that we're not going to get any leaders in Washington that will bring financial sanity any time soon.  Therefore, gold remains a prudent hedge.

Sun, 04/01/2012 - 21:23 | 2308519 akak
akak's picture

LOL Jena! 

I was perhaps a bit more diplomatic in my early online days, but after having had to read and discredit the exact same tired, nonsensical anti-gold nonsense from insincere, dishonest, pro-status-quo trolls for the 14,000th time, one tends to becomes a bit snappy.

I'm really a very nice guy in person!

Sun, 04/01/2012 - 21:35 | 2308553 Jena
Jena's picture

We'll have the last laugh later on.  I have no worries about my stack even when the prices fluctuate.  I saw my parents invest in gold both pre-1980 and later on, and that is seeing them through their retirement.

I'm sure you're a very nice guy in person, as you are here.

Sun, 04/01/2012 - 21:45 | 2308581 akak
akak's picture

We'll have the last laugh later on.

Indeed --- although it will probably not be a time for much laughing in general, to be honest.

Your comment about your parents' PM holdings is very apropos as well.  Thanks.

Sun, 04/01/2012 - 10:22 | 2307520 I am Jobe
I am Jobe's picture

Buy More Smart Phones dip shit sheeples.

Sun, 04/01/2012 - 10:24 | 2307524 alexwest
alexwest's picture

#the $1+ trillion in more spending than is taken in annually,

sorry pal, reality is even worse then official figures..
annual intake is around 1.6/7 yrln$, outlays are closing up to 4 trln$

you do the math

alx

Sun, 04/01/2012 - 10:31 | 2307528 trip kitchen
trip kitchen's picture

If you can't put something in a container and ship it to another country, how can it really add to GDP?  Anything else is just sovereign housekeeping.  You building my roads and me cleaning your teeth is just keeping the place tidy until it gets auctioned off.

Sun, 04/01/2012 - 10:39 | 2307534 A82EBA
A82EBA's picture

That's good..we need to get back to USA first instead of USCorporation first

Sun, 04/01/2012 - 19:57 | 2308311 smiler03
smiler03's picture

"If you can't put something in a container and ship it to another country, how can it really add to GDP? "

Ask Apple. How much cash do they have in the bank?

Sun, 04/01/2012 - 19:06 | 2308249 UP Forester
UP Forester's picture

They are shipping containers to other countries.  The only problem is, that the containers are filled with the scrap steel that used to be factories actually creating the stuff we used to ship to those countries.

I know that just here in the UP, three paper mills in the last 8 years have closed, and at least one of them have been scrapped out.  Take a look at Google maps, or whatever, and tell me we've run out of trees.

Now, the biggest items getting shipped out are skidders, forwarders and feller-bunchers.  Two years ago, the banks even stopped re-poing logging equipment, because they were losing too much, with no one left to buy.

I guess tourism will still be here, with all the staycations and stuff all the unemployed will take....

Sun, 04/01/2012 - 10:37 | 2307532 PsYcK
PsYcK's picture
South Carolina's Office of the State Treasurer spells out the manipulation of gold and silver prices. This report identifies the criminal institutions involved and the specific South Carolina statues they violate.

http://www.treasurer.sc.gov/Pages/treasurerstransparencycenter.aspx

http://www.treasurer.sc.gov/Documents/Proviso%2089%20145.pdf

Sun, 04/01/2012 - 12:28 | 2307675 chubbar
chubbar's picture

What's interesting (or funny/sad, depending upon how you look at it) is that whomever wrote this report comes to the correct conclusion with regard to institutions using fractional reserve accounting and in essence naked shorting gold by issuing more paper than gold backing it. Then the very first statement is about how they can't afford to invest in bullion because of storage costs. There just isn't anyway to fix stupid.

Sun, 04/01/2012 - 10:37 | 2307533 Monedas
Monedas's picture

Ponzi money is neck blood for the bureaucrat vampires that enslave the world....from Hillary to your neighbor, the Librarian, retired young at $70K per anus !  Quit fussing with the banks....it's the bureaucrats !  Bank employees can get fired like the rest of us !  Monedas  2012  A million government bums is worse than a bank !

Sun, 04/01/2012 - 11:18 | 2307569 Jumbotron
Jumbotron's picture

TO MONEDAS

YOU ARE FLAT OUT WRONG !

You are correct in your view that bureaucrats are a major problem.  However, they are only parasites in a system that was built on the excess store of capital and the need to manage it and, increasingly so, to produce it out of thin air. 

Before there were agencies to hire and house these bureaucrats, there was the lone leader...the dictator,,, the despot,.,, the king.  Could have been a the strong man of a Neandertal Clan.....could have been a Sumerian or Akkadian despot.  The currency for the Neandertal could have been a stash of wood for fire....or some sort of food stock preserved with precious spices....for the Sumerian or Akkadian....it could have been precious oils and resins....dates.....gold and jewels.

THERE ALWAYS CAME TIME THAT THE STORE OF VALUE BECAME TOO GREAT TO MANAGE BY THE LEADER AND SOMEONE ELSE WAS PICKED TO DO SO TO FREE UP THE LEADER TO LEAD AND PRESERVE THE CLAN OFTEN BY GOING OUT AND COLLECTING MORE CACHES OF VALUE EITHER BY NEW EXPLORATION AND/OR CONQUEST.  THE FARTHER THESE EXPLOITS THE MORE IMPORTANT THE PROTECTOR OF THE STOREHOUSES OF VALUE BECAME.  THESE EARLY TREASURERS.....THESE BANKERS SOON BECAME AS IMPORTANT OR MORE IMPORTANT THAN THE LEADER.

So with that... answer this question.....who really leads America....any of our so called Presidents at any given time.....or whoever sits in the seat of power at the Federal Reserve?  Who is unelectable, unaccountable, is alway deferred to by the acting President at the time......

That person is a Banker.  A PRIVATE BANKER.  WHO CONTROLS THE FLOW AND CREATION OF ALL MONIES, BOTH FOREIGN AND DOMESTIC IN AND OUT OF THIS COUNTRY FOR THE BENEFIT OF THE OTHER BANKS BOTH FOREIGN AND DOMESTIC....BECAUSE AFTER ALL THIS FLOW IS THE LIFE BLODD OF THE WORLD AND IT IS PART OF DOING "GOD'S BUSINESS" ON PLANET EARTH.  IF THAT FLOW WERE TO STOP.....WHERE DO YOU THINK THE BUREAUCRATS WILL GET THEIR MONEY.....HOW WILL THEY CONTROL IT.....AND MORE IMPORTANTLY HOW WILL THEY KEEP THEIR JOB ONCE THEY ARE TRULY SEEN AS THE USELESS PARASITE THEY ARE.

IT ALL BEGINS....AND ALL ENDS....WITH THE BANKERS.

PERIOD

Sun, 04/01/2012 - 11:27 | 2307586 Monedas
Monedas's picture

You are "flat earth" flat wrong !  "How many divisions does the Pope have ?"....Joe Stalin !  How many ICBM's do the banks have ?  The banks are just tools of TPTB....like the military, the IRS !  It's a close incestuous relationship....but the politicians run the show !  It's like a huge Congressional Banking Scandal !  Monedas   2012   When a pimp and his whore are rolling on the floor, sometimes the whore get's on top for a moment, but the pimp always prevails !  

Sun, 04/01/2012 - 12:06 | 2307629 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

It's a close incestuous relationship....but the politicians run the show !

Sure they do. Just like copper runs General Electric, and lumber runs the construction industry.

 

Sun, 04/01/2012 - 17:42 | 2308142 akak
akak's picture

And just like roadside shitting, public spitting, quasi-slave-labor sweatshops and Tibetan blobbing-up run Chinese citizenism.

Oh, wait, that is actually the case.

Sun, 04/01/2012 - 19:29 | 2308271 Jumbotron
Jumbotron's picture

You are "flat earth" flat wrong !  "How many divisions does the Pope have ?"....Joe Stalin !  How many ICBM's do the banks have ?  The banks are just tools of TPTB..

Jeez you are as stupid as you are naive.

Where did all that money come from to buy those ICBM's?  Taxes of course.

Where did the taxes come from?  Working Taxpayers.

Where did the taxpayer get his money from?  From the taxpayers employer's clients and/or customers or directly from the client or customer itself.

Where did the money come from to fund the business that taxpayer's employer gets or the taxpayer directly gets to fund such business?  From a bank loan.

Where did the bank get the money to make that loan?  From other people's deposits.

Where did the other people get the money to put into the bank as a deposit?  Reread every thing above down to this last point.

Where do the banks go to get money when there are not enough deposits to make big enough loans to grease the global econimic engine?  The Central Banks of the World.  Who print it out of thin air backed only by a government's promise to repay, which they never will, which means the Central Banks must make more fake digital bits which gets translated into the real analog world as a stack of fiat currency.

Which is why your useless bitching about government is stupid and pointless.  Democrat, Republican, or Libertarian...even Ron Fucking Paul...would not make a difference.

The Banker will always abide.

Sun, 04/01/2012 - 10:54 | 2307546 Monedas
Monedas's picture

In Las Vegas, not known as a house fire Mecca or for cats trapped by cactus, there are 200 Fire Dept Officers who make over $200K per year per anus ! In San Diego, bureaucrats cash out their retirement plans for more than $1 million then rehire without cleaning out their desks !  The corruption is everywhere and is the best kept secret with Zero MSM curiosity !  Diane Sawyer and 60 Minutes won't touch it !   Monedas  2012   Capitol visitors aren't allowed near the sumptuous Capitol dining facility ! You have to be a guest of a member !

Sun, 04/01/2012 - 11:20 | 2307575 Confused
Confused's picture

I'm supposed to get fired up over "Fire Dept Officers" making over $200K? Sure, its outrageous, but me thinks its nothing compared to the amount of finance guys (and I use the term loosely) that make more, and do even less (less as it relates to benefitting society at large). 

 

Stay focused. Even if you are a bank employee. Doesn't mean you are part of the problem. Unless you are. 

Sun, 04/01/2012 - 11:30 | 2307594 Kayman
Kayman's picture

You two are missing the point.

Bankers, Politicians, and Government employees are all Parasites, living large off the earnings of the private, productive sector. As the private, productive sector continues to shrink, the fight over the warm blood becomes intense.

Tell me how many $200,000 per year firemen can be hired in a town where a new GE refrigerator factory is paying $15/hour ?

Sun, 04/01/2012 - 12:09 | 2307635 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Tell me how many $200,000 per year firemen can be hired in a town where a new GE refrigerator factory is paying $15/hour ?

Not nearly as many as they could hire if GE wasn't a tax exempt entity.

 

Mon, 04/02/2012 - 11:54 | 2309756 Jumbotron
Jumbotron's picture

Who printed up that 200,000 dollars for these firemen.

Where do the 15 dollars per hour come from that GE has lying about to give to employees?

Did GE print it when they needed a loan to start their business or to make capital improvements or to leverage buyout?

Did the city print up the money needed build the firehouse, to buy the fire engines, to pay outrageous wages to these small group of firemen?

No one has the power to print, distribute, store, loan, excellerate, decellerate the flow of money but the banks.

Sun, 04/01/2012 - 12:57 | 2307740 Arnold Ziffel
Arnold Ziffel's picture

Peanuts compared to the Illinois State Pesnion Plan:

 

http://dailybail.com/home/make-this-story-go-viral-you-thought-californi...

Sun, 04/01/2012 - 10:57 | 2307550 Cursive
Cursive's picture

Money is a commodity.  Currently, we allow that commodity to be regulated by a bunch of bankers.  This would be like asking R. Kelly to run a daycare.  Fox guarding the hen house....

Sun, 04/01/2012 - 11:04 | 2307559 Monedas
Monedas's picture

Compare, line for line, the compensation package of a bank teller with that of a clerk at your local Dept of Motor Vehicles....including vacation, retirement, sick leave, holidays, etc., apples for apples....!  Compare a UPS Post Master's benefit package with a Fed Ex pilot's !  Take an extended Alabama "welfare clan" and add up all their beneifits....including free cellular phones and utilities !  Get real !    Monedas  2012   It's simply unsustainable !

Sun, 04/01/2012 - 11:23 | 2307578 Confused
Confused's picture

You haven't really been reading articles here have you?

 

No one here believes bank tellers are part of the problem. 

Sun, 04/01/2012 - 20:07 | 2308327 smiler03
smiler03's picture

You really are the confused one and not reading properly.

He is comparing private sector employees with public sector employees (as examples).

Sun, 04/01/2012 - 11:13 | 2307566 Laura S.
Laura S.'s picture

I think there has been a plenty of documentaries about this topic. Money is an illusion. It has nothing to do with the productivity of the nation.
The main problem is that the financial institutions posses the resources to buy themselves the best lawyers and lobbyists to control politics. This happens in US, Canada and in European Union too.
We always observe the same pattern - the banking sector seeks any kind of advantage in the legislative. When it produces a crisis, it seeks help (bailout) from the executive. And when somebody accuses them, it uses it´s resources to fight and win in the judicature.
Why there are no condemned bankers in US? Why Canadian household debt rises to incredible levels without any government regulation (More Regulation in the Mortgage Market), or why EU seeks austerity instead of productivity?
Everything points to monopoly of money, of banks and of financial institutions. They create money out of thin air and they use it to control. It is easy and it works.

Sun, 04/01/2012 - 11:41 | 2307588 GeneMarchbanks
GeneMarchbanks's picture

'Why there are no condemned bankers in US?'

There are several reasons but perhaps the biggest is that bankers are the US, at least, they are the anointed ones. There are no laws for them.

'Everything points to monopoly of money, of banks and of financial institutions.'

Again, yes. Monopolised, has been and will stay because... uhm... a nation with people that 'control' their money is socialism i.e bad.

Sun, 04/01/2012 - 15:31 | 2307997 Monedas
Monedas's picture

Banks are in bed with da gov and are complete gov bitchez....especially those at the top....rank and file bank worker's are much poorer than their gov counterparts in pay and bennies and perks !  Think of a plastic pail of baby eels at a Taiwan fish hatchery....writhing around together....that represents gov officials and banker elites !  Monedas  2012  A Painter Of Political Prose Cartoons

Sun, 04/01/2012 - 11:46 | 2307606 Kayman
Kayman's picture

"It has nothing to do with the productivity of the nation."

Beg to differ. It has everything to do with productivity and production of a nation, especially, vis-a-vis, other nations. And to the extent that production equals power, especially military power, then your currency becomes more valuable relative to other countries.

Look up the agreed exchange rate in France, when the Nazis took over.  Hitler quietly plundered France as German soldiers exchanged Marks for Francs at the "agreed" rate, bought French products and sent them home to Germany; effectively stripping France.

Money, and the printers, are parasites. They cannot stand alone.

 

 

Sun, 04/01/2012 - 11:14 | 2307568 ISEEIT
ISEEIT's picture

PLEASE take a few minutes and consider the knowledge available in the link below?

And hey Tyler, it would make for a great 'grey zone' headline (or whateveh you might call it, 'Truth porn'?).

Please read.

http://mises.org/daily/5955/The-Seven-Rules-of-Bureaucracy

This is the 'grand unified theory' of farcism.

Truly explains nearly, if not all of what most ails western culture.

Nancy Pelosi explained.

Sun, 04/01/2012 - 11:30 | 2307593 rwe2late
rwe2late's picture

The article is too shallow. Among the objections.

1) Not only do the notions of “consumption” and “production” need scrutiny, but taking the measure merely in terms of “monetary balance”is flawed

2) A “nation” may have an excess of “consumption” on its balance sheet if it is the hub of an empire extracting wealth from other nations (by such means as reserve currency, military conquest, “business-friendly” arrangements with satellite governments).

3) What is considered “production” in a “capitalist” economy often is merely “profiting” by gaining a monopoly (or “free hand”) over resources and then causing destruction and misery to others. Profiting by destroying fisheries, stripping away forests, conducting warfare, running a prison industry, poisoning waters, marketing harmful foodstuffs, or feed lot/ factory farming animals are just a few examples. What is considered capitalist “production” is also a road to ruin.

Sun, 04/01/2012 - 11:38 | 2307602 Monedas
Monedas's picture

All government expenditures, including every dime in compensation, should be on line and available to the public !  Public servants are a protected class !  Take your FOIA and go nosing around any government entity and see how far you get !  They give militay secrets (Loral) and uranium fuel rods to our sworn enemies....but they protect their compensation data as Top Secret !   Monedas  2012 Comedy Jihad Dirty Little Secrets 

Sun, 04/01/2012 - 11:49 | 2307608 rwe2late
rwe2late's picture

 Pay grades of civil servants are public, as are the totals spent. The pay of individuals within a  pay grade is typically what is confidential.

Of much greater significance are the "black box" spending of the Pentagon and CIA, and the "confidential" records of private corporations under government contract.

Sun, 04/01/2012 - 12:22 | 2307636 Monedas
Monedas's picture

And shouldn't be confidential !  Imagine hiring an employee and not knowing what you are paying them ? Public servant's individual compensation should be public record....if you don't like the scrutiny....take a job in the private sector !  Public compensation is public information !  Public pay grades are only the tip of the ice berg !  Actual dollars and donuts cash on the barrel head data is obfuscated, hidden and encoded !  Let's talk petty cash, per diems, travel allowances, compensating days off, over time.....it's a maze of coverups and lies !  The best kept secrets of the people's government !  Monedas  2012   "Every Dime should be On Line !"....Monedas - Sage/Jester  PS  It's all a "black box" from market manipulation to welfare hand outs !

Sun, 04/01/2012 - 11:58 | 2307620 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

They give militay secrets (Loral) and uranium fuel rods to our sworn enemies.

Our sworn enemies? Even though I'm an American, I don't believe that I have any sworn enemies. Perhaps you meant to say your sworn enemies or their sworn enemies?

 

Sun, 04/01/2012 - 12:14 | 2307642 Monedas
Monedas's picture

Go try to tip toe across the 38th parallel DMZ on May Day with a bouquet of tulips for Kim ?   Monedas   2012   Comedy Jihad Flower Fest

Sun, 04/01/2012 - 12:22 | 2307664 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Go try to tip toe across the 38th parallel DMZ on May Day with a bouquet of tulips for Kim ?

Why would I want to do that?

If you want to invade North Korea, then go do it. Nobody is stopping you.

 

Sun, 04/01/2012 - 12:36 | 2307695 Monedas
Monedas's picture

I don't want to invade them ?  I do know you can't appease them !  MAD is the ONLY thing they understand....and they don't like it....they just get it if is made painfully obvious at every moment !   Monedas  2012  The next time you are a victim of a home invasion robbery/murder....may your last thought be: "Monedas was right about the Norkoms !" !

Sun, 04/01/2012 - 13:56 | 2307841 kekekekekekeke
kekekekekekeke's picture

you're my favorite Monedas

Sun, 04/01/2012 - 11:58 | 2307610 Monedas
Monedas's picture

I propose a Zero Hedge class project !  Let us select randomly 10 public servants !  We protect their anonymity and thoroughly investigate every dime of compensation and benefit they receive !  It would be easier to infiltrate Whoopi Goldberg into the KGB !  Monedas  2012  Quit defending the rats who ate throught the hull of the ship !

Sun, 04/01/2012 - 12:43 | 2307714 rwe2late
rwe2late's picture

 I don't know who put a poker up your ass about public servants.

All of them are "rats"? Hardly.

Whatever the higher up (politically connected) public officials are guilty of, the librarians, garbage collectors, park rangers, classroom teachers, records clerks etc are not ripping off the public.

Both your pronounced hatred and your proffered depiction are overdone.

Knowing the exact pay of each motor vehicle clerk gains nothing beyond already knowing the pay grade of motor vehicle clerks.

As I stated above, the serious and disturbing aspect of government secrecy is not about the exact pay of each individual civil servant. Claiming that it is a priority, and recruiting for a ZH investigation of it only serves to divert attention away from actual significant issues.

Sun, 04/01/2012 - 13:09 | 2307759 Monedas
Monedas's picture

I'm not a hater....I'm a lover of freedom !  I'm a lover of transparency in every detail of our public expenditures !  Private citizens should have more privacy than public servants....sadly, the system is 180 degrees out of phase !   Monedas  2012  Quit circling the wagons....I just want transparency !

Sun, 04/01/2012 - 11:55 | 2307614 Salah
Salah's picture

Gary Johnson, Iron-Man Triathlete, high-tech services entrepreneur, and former 2-term governor of New Mexico, now ex-GOP running for President on the Libertarian ticket will be Stephen Colbert's guest on Monday, April 2nd.

http://www.garyjohnson2012.com/front

Sun, 04/01/2012 - 12:20 | 2307654 francis_sawyer
francis_sawyer's picture

Ron Paul did an interview on "Face the Nation" today... The script was basically set up in a way that they spent most of the interview trying to ask him if he would support a "Mitt Romney" ticket in 10,000 different ways...

Utter bullshit...

Sun, 04/01/2012 - 12:27 | 2307673 Monedas
Monedas's picture

Rush posed the possibility that Romney offered the "Joe Biteme" honorary VP nod to Ron Paul's son ?  Blood is thicker than Libertarian principles ?  Monedas  2012   Comedy Jihad Soul Search

Sun, 04/01/2012 - 12:31 | 2307686 slewie the pi-rat
slewie the pi-rat's picture

this is better than elastic sex, BiCheZ!

according to slewienomics, sex is always and everywhere an elastic phenonomenon

Sun, 04/01/2012 - 12:31 | 2307687 Dr. Crime
Dr. Crime's picture

What is up with the dis to the firefighters? Ten years ago they got laid whenever they walked into a bar and now you want to play cheap with these men who put their lives on the line everyday for you! The heros of 9/11? Ahhh, I get it. It was easy back then when you were shitting your pants and more importantly, government money was funded from a magical account. Remember ten years ago? Two wars ago? When people wanted to hire security guards for every playground in America? When your flying safety was worth any amount of money? When anyone who said "umm that might cost us some monies" was a terrorist. Remember. So because you woke up and found that the tooth fairy is not real and the money to pay for protection and safety does come out of your pocket...now you are angry? How much can you complain about government officials? They are the same as everyone else. If people tell you that you are a hero then you will want hero pay. There is a balance and its called rationality. Try to not react out of fear and try to not demonize others to make yourself feel better. 

Sun, 04/01/2012 - 13:30 | 2307727 Monedas
Monedas's picture

How many lifetime welfare wards have been rescued from their mattress fires to become lifetime intensive care wards of the state ?  Our heroes ?  Fire department kitchens rival the Congressional dining facility in fat asses served !  Monedas  2012  Michelle....slim down the government employees and welfare wards....first !  Michelle ? How about a Jaqueline Kennedy style tour of the Congressional dining facility at lunch time ? Open the doors to all government dining facilities to SNAP recipients with their EBT cards ?

Sun, 04/01/2012 - 17:53 | 2308151 akak
akak's picture

I have nothing but contempt for this growing statist near-worship of public servants as "heroes".

Performing one's JOB --- a job for which one is paid handsomely, by the way --- has NOTHING to do with being a supposed "hero".  This degradation of the word "hero", and of the language itself, positively sickens me.

Is my garbage man a "hero" for coming around to pick up the trash on a -30 degree early morning?

Sun, 04/01/2012 - 12:43 | 2307712 Monedas
Monedas's picture

An average kitty rescue cost the tax payers $37,000 !  Monedas  2012  Sometimes I make shit up....you decide !

Sun, 04/01/2012 - 13:59 | 2307846 kekekekekekeke
kekekekekekeke's picture

lol <3

Sun, 04/01/2012 - 13:31 | 2307801 JW n FL
JW n FL's picture

 

 

Institutional Corruption (PENN State, I know Right! How Ironic! LULZ!!)

http://vimeo.com/39492883

Sun, 04/01/2012 - 13:32 | 2307806 JW n FL
JW n FL's picture

 

 

and here's and OLDIE BUT A GOODIE!! http://www.youtube.com/watch?v=3aKj6uJ5Mt4

Sun, 04/01/2012 - 14:20 | 2307857 Monedas
Monedas's picture

The biggest funder of the government is itself !  First is Ponzi neck blood....then taxes and fees and....then political campaign money !  $17 Trillion in borrowed funds dwarfs campaign spending !     Did Mossad know about 911 and planned to piggy back blowing up the GW bridge in the confusion  and blame it on Al Quaeda ? What was the normal complement of Jews at the twin towers ? How many were at work when the planes struck ?  I've never seen a real breakdown of those numbers !

Sun, 04/01/2012 - 15:04 | 2307929 Monedas
Monedas's picture

It would be difficult for Mossad to inform the twin tower Jews to not report for work on 911 !  Hello, Jew, this is Mossad....don't report to work today !  I would like to think they would have informed me if I had worked there....after all, I'm Monedas  2012  Unofficial Spokeshole For The Jewish People

Sun, 04/01/2012 - 15:45 | 2308016 adr
adr's picture

So I was pretty much spot on when I said the real GDP of America is around $4-5 trilion. The other $10 trillion is made up leveraged hypothecated garbage created by the banks that isn't real. It was created so those who wish not to work can make something from nothing. The lowest welfare case is equal to the top 1% in everything but net worth.

Sun, 04/01/2012 - 17:14 | 2308114 Clowns on Acid
Clowns on Acid's picture

Indeed they need elastic money (supply) to be able to maintain facsist control. When there becomes too much elastic money, they will force plastic money (w/ inserted chip) on citizens.

The only feasible way forward now...is a a depression (low probability), inflation leading to hyperinflation (high probability) and then subsequently a forced "gold standard" where, in order to cover all the fiat in circulation, must be revalued to ....intially $5,000/ oz...then Gov't confiscation....then a reval to $10,000/oz ...as fiat continues to grow. Of course this scenario assumes there is no major East / West war.

Did I leave anything out?

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