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On The Failure Of Inflation Targeting, The Hubris Of Central Planning, The "Lost Pilot" Effect, And Economist Idiocy

Tyler Durden's picture




 

As an ever greater portion of the world succumbs to authoritarian control (whether it is of military disposition, or as we first showed, a small room of economists defining the monetary fate of the future as central banks now hold nearly a third of world GDP within their balance sheets) we can't help but be amazed as the population simply sits idly by on the sidelines as the modern financial system repeats every single mistake of the past century, only this time with stakes so high not even Mars could bail out the world. Unfortunately, with the world having operated under patently false economic models spread by hacks whose only credibility is being endorsed by the same system that created these models over the past century, the only temporary solution to all financial problem is to "try harder." Sadly, the final outcome is well known - a global systematic reset, in which the foundation of all modern democracies - the myth of the welfare state (which at last check, was about $200 trillion underfunded on an NPV basis globally and is thus the most insolvent of all going concern entities in existence) is vaporized (there's that word again) leading to global conflict, misery and war. Sadly that is the price we will end up paying for over a century of flawed economic models, of "borrowing from the future", of ever more encroaching central planning, and of an economic paradigm so flawed that as Bill Buckler puts it, "Keynes’ response to those who questioned the “longer-term” consequences of his advocacy of credit-creation as a basis for money was - “In the long run, we are all dead”. It is difficult to overemphasise the venal arrogance of this remark or the destructiveness of its legacy." Alas, the last thing the central planning "fools" (more on that shortly) will admit is their erroneous hubris, which in the years to come will claims millions of lives. In the meantime, we can merely comfort ourselves with ever more insightful analyses into the heart of the broken system under which we all labor, such as this one by SocGen's Dylan Grice, whose latest letter on Popular Delusions is a call for "honest fools" - "Frequently, when we make mistakes we try to correct them not by changing the flawed thinking which led to the mistake in the first place, but by reapplying the same flawed thinking with even more determination. Behavioural psychologists call it the “lost pilot” effect, after the lost pilot who tried to reassure his passenger: “I have no idea where we’re going, but we’re making good time!” Policy makers on both sides of the Atlantic are treating today’s malaise with the same flaky thinking which created it in the first place. How can that work?" Simple answer: it can't.

Grice explains why "Trying harder" is the only recourse of a status quo gripped in a confirmation bias so tense that even merely glancing outside the window at the Marriner Eccles building could be sufficient grounds for the whole house of cards to come tumbling down:

[This week I want to think about] the incorrect application of faulty models. In essence, that's all those studies on confirmation bias are really about. Subjects applied a faulty model - a mental algorithm saying "accept only supporting evidence" - which resulted in a biased assessment of the evidence. "Trying harder" didn't work because the problem was the faulty model, not the lack of effort, and applying that faulty model with more determination just caused an even bigger error. Psychologists have a name for this. They call it the "lost pilot effect" after the lost pilot trying to reassure his passengers by saying "I have no idea where we're going, but we're making good time!"

 

Flawed thinking got us into this mess. But rather than change that flawed thinking, our policy makers are applying it with even more rigour: we have more debt for insolvent borrowers, more financial engineering, more complicated banking regulations, more blaming speculators for everything, more monetary experimentation by central banks. Our policy makers have absolutely no idea what they're doing, but they're giving it a go!

"Lost pilot effect" exhibit A - Inflation Targeting, which failed miserably in the past, and will fail miserably again.

The latest from the Fed provides a wonderful example. Undeterred by the latest calamitous failure of CPI targeting regimes (a brief history of which will be presented below), it has announced an explicit 2% inflation target. But why? Would an explicit target have made any difference to the last crisis? Will it prevent the next one? And where did this 2% come from? We don't know. But we suspect that past uninformed capital market tinkering has failed to control the uncontrollable, and we're pretty sure these ones will too.

 

In fact, if such tinkering has in the past been the primary causes of crises, then why won't this latest attempt - the 2% inflation target - be the cause of the next one? There are certainly precedents. Targeting stable "prices" isn't a new idea. The first experiment was actually conducted in the US in the 1920s, apparently successfully. Indeed, so stable were consumer prices that the authorities assumed there was no inflationary threat. And, this brilliant new idea, that stable consumer prices were both a necessary and sufficient condition for economic stability, proved so appealing that the NY Fed adopted it as a policy objective. On January 11th 1925, then-governor Benjamin Strong wrote to a friend:

 

That it was my belief, and I thought it was shared by all others in the Federal Reserve System, that our whole policy in the future, as in the past, would be directed towards the stability of prices so far as it was possible for us to influence prices.”

 

During the 1927 Stabilization hearings before the Committee on Banking and Currency on a Bill to amend the Federal Reserve Act to provide for the "stabilization of the price level for commodities in general", the governor was asked if the Fed could stabilize prices more than it had done in the past. Strong replied “I personally think that the administration of the Federal Reserve System since the reaction of 1921 has been just as nearly directed as reasonable human wisdom could direct it toward that very object.”

 

Like a driver focused on the speedometer rather than the speed, oblivious to the risk that the speedometer might be faulty, they kept their foot on the gas until they crashed. So focused were they on the stability of the CPI (first chart below), and so convinced that it was the be all and end all of inflation, they missed what was going on in the credit markets (second chart below).

Oddly enough, nobody discussed "inflation targeting" as one of the potential causes leading to the Great Depression. Why? Simple. Because it would confirm that the status quo's very basic definition of inflation is fatally wrong; it also means that the entire premise of "economy" is a joke as it is impossible to rely on any of the most "sacred" indicators in existence, and all the so-called economists are literally pilots, flying blind. Grice on just this possibility:

We know that episode didn't end too well. Yet to this day, on the long list of explanations for what put the "Great" into the 1930s Great Depression, the prior credit bubble which was allowed to develop - and was possibly even caused by the monetary authorities'  undue attention to an arbitrary variable (consumer prices) - and the false sense of security the stability of that variable created, is barely a footnote. Amid the mountains of literature on the "lessons from the 1930s" there doesn't seem to be much on the danger posed to an economy of allowing a committee of economists to tamper with the natural functioning of the market for capital by letting them decide what interest rates should be.

Why would there be? It would be a confirmation by the same status quo it is based on a completely flawed premise. Yet the blind reliance on CPI did not prevent the Japanese bubble of the late '80s, when the Nikkey quadrupled in 5 years, yet Y/Y CPI was under 3% the entire time. Same thing with the Nasdaq bubble:

We've experienced the same thing with the tech bubble of the late 90s and the real estate bubble we're still recovering from (see charts below). On each occasion, the monetary authorities were blinded to the runaway inflation in the markets for equities (first chart below) and real estate (second chart below) by stable CPI inflation.

Inflation targeting, it seems, has a history of fostering asset bubbles because the notion that a stable CPI equates to a robust economy contains numerous false premises.

And here we reach the two main errata in all of modern economics.

The first is that inflation is measurable. Einstein once had the words “not everything which can be measured counts, and not everything which counts can be measured” on the desk in his office at Princeton. And although the world might be simpler if it wasn't so, I believe "inflation" happens to be one of the things which counts but can't be measured. The fact is that once money is created you don't know where it ends up. Maybe it will end up in the consumer goods market, maybe it won't. Or maybe it will be multiplied via the financial system into new credit which will inflate asset prices instead. Even then, we don't know which assets.

 

But suppose we did know where money would end up, how would you weight the assets together into one index? Should stock prices be included in the CPI? If so, what should the weight be? And if you're going to add stocks, why not add corporate bonds too? And what should their weight be? And if you're going to add bonds, why not add house prices, etc., etc.? Isn't it obvious that the rich concept of - inflation - is unobservable? So who said that proxying it with a narrow sub-category - consumer prices - was a good idea?

Why Ben Bernanke of course, that's who.

The second is the premise that consumer prices themselves should be as 'stable' as possible. But is that correct? Isn't the natural tendency of our species to do more with less, to lower the cost of a given good or service, to "increase productivity"? In other words, isn't "deflation" a part of the human condition? Jeff Bezos, the CEO of Amazon famously said there were two types of company in the world, those that work to charge more and those that like to charge less. His company, he said, would belong to the second group.

 

Shouldn't someone warn him of the folly of pursuing deflation? Of the untold havoc he's set to unleash by trying to undercut Apples iPad? And how about those guys at Walmart? Surely they deserve a stern ticking off oblivious, it seems, to the downright irresponsibility of their "Everyday Low Prices" strategy? Maybe all the clever economists and Ivy League Nobel Prize winners should make going to Arkansas to explain to the Waltons that they're playing with fire a matter of urgency?

Some more on the self-deception of hubris:

Or maybe the clever economists aren't so clever. Maybe they have it all wrong. Maybe deflation is most painful when there is an excess of debt, and so maybe they shouldn't be encouraging excessive debt accumulation in the first place, by distorting the interest rate market in the pursuit of aims whose consequences they don't fully understand?

 

This brings us to a third false premise, that there is some "optimal" rate of consumer price inflation. Judging by the targets of most central banks which have them, that rate is around 2%. But why is it 2%? Why not 3%, or 4%, or 6.78384%? What's so magical about 2%? Where did that number come from?

Grice on exposing faux experts (virtually all of them) using the methodology of one Richard Feynman:

One of my favourite people of the 20th century is Richard Feynman, the Nobel Prize winning physicist who, among other things, pioneered the study of quantum electrodynamics. In a fantastic documentary about him for BBC's Horizon show called "The Pleasure of Finding Things Out" he said something I found moving and profound. He was talking about the "experts" he saw on TV and how although he didn't have any expertise in the area they claimed to have expertise in, he felt quite sure that they didn't know what they were talking about. He said this:

 

"There are myths and pseudo-science all over the place. I might be quite wrong, maybe they do know all this ... but I don't think I'm wrong, you see I have the advantage of having found out how difficult it is to really know something. How careful you have to be about checking the experiments, how easy it is to make mistakes and fool yourself. I know what it means to know something. And therefore, I see how they get their information and I can't believe that they know it. They haven't done the work necessary, they haven't done the checks necessary, they haven't taken the care necessary. I have a great suspicion that they don't know and that they're intimidating people."

 

So if I apply Feynman's test and ask myself how hard most economists worked for their knowledge, I can't help thinking they haven't worked hard for it at all. I don't think they've worked hard to know what inflation is, or whether it can or should be targeted. I think they've just assumed it, and anyone can do that. As Feynman warned, they've fallen into the trap of fooling themselves. They've assumed that inflation can be proxied by the CPI because it's easier to do that, they've assumed that 2% is somehow the right rate for it, and they've assumed they're capable of setting interest rates at the 'appropriate' level.

And the biggest blasphemy of all: everything economists have been taught, and have taught, was wrong from the very beginning.

But what if those assumptions are wrong? What if, for example, the 'natural' rate of consumer price inflation was 0% and so by trying to keep it at the unnaturally high rate of 2% they've had to artificially goose up the rest of the economy by setting interest rates at an inappropriately low level? And what if, like force-feeding steroids to a horse because you assume it should be running faster, in doing so you kill it, distorting the credit system so grotesquely as to crash the rest of the economy?

 

They've assumed that wouldn't be a problem, and they assumed that if there was one they'd be able to fix it (Ben Bernanke supposedly promised Milton Friedman that there would never be another great depression because the "lessons" had been learned from the 1930s). But, assuming you know how the animal behaves isn't the correct way to go about attaining knowledge about how the animal actually behaves. So they don't attain knowledge about how the animal behaves. So the animal keeps mauling them.

 

But they keep doing it. Now a 2% CPI inflation target is going to make all the difference. And I find it a very strange thing. I just don't understand why they're so sure they know all this stuff despite all the evidence to the contrary. I feel like McCarthy in One Flew Over the Cuckoo’s Nest: “That’s right Mr. Martini, there is an Easter Bunny.”

Finally, we get to the bottom line: economists, and all those others who are "in charge" really are just a bunch of idiots, or, as Grice puts it far more politely, fools.

Mr. Feynman said something else which I like. He said:

 

“Ordinary fools are all right; you can talk to them, and try to help them out. But pompous fools - guys who are fools and are covering it all over and impressing people as to how wonderful they are with all this hocus pocus – that I cannot stand! An ordinary fool isn't a faker; an honest fool is all right. But a dishonest fool is terrible!”

 

I think he's right. Dishonest fools are terrible. It's a shame they're in charge.

Yet we keep on giving them Ivy League tenure, and voting them into power...

It's is probably a bigger shame that the general public continues to refuse to call them out for their endless barrage of lies. Because the time has come to unmask the emperor as not only being naked, but being full of, well, shit.

 

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Sun, 02/05/2012 - 12:00 | 2128518 Azannoth
Azannoth's picture

“In the long run, we are all dead”. - so Keynes in his infinite wisdom foresaw where all those following his economic theories will end up :)

Sun, 02/05/2012 - 12:21 | 2128551 trav7777
trav7777's picture

everyone will end up there no matter whose theories they follow.

I don't know what is wrong with these chimps that think that all of this Fedshit means anything when it is just a symptom of the attempt to perpetuate geometric growth.

Sun, 02/05/2012 - 12:43 | 2128579 Popo
Popo's picture

What's this nonsense about the financial system repeating "every single mistake"  of the last century?   These aren't mistakes at all.  If one were to take an impartial view of the last century, one can't help but note that the financial sector rose to global dominance.   "Mistakes"?  No.

Calling these events "accidents" or "mistakes" is to give the resolute march towards absolute imperial domination the moral neutrality of human error.  This is a battle.  And the constitutional republic and the associated laws which protect the rights of individuals are  being annihilated by a small group who are close to achieving victory.  

Their victory is our subjugation, and their prize is generational dominance.  (Both of which, one must note -- have already been acheived for the most part.   What happens next is really just the tortured aftermath).

There have been no "mistakes" made by the financial elite.

By "mistakes", do you mean the process of first inflating the value of assets to historically fraudulent levels (which made "them" rich on a historic scale), and then the fleecing of *everyone else* rather than see asset values collapse (which kept them rich, in generational terms)?   Oh yeah, that mistake.

If that sounds like a "mistake" to anyone,  you've got a very creative imagination.   That's kind of like "accidentally" fucking the prom queen.

The only "mistake" they can possibly make at this point will be to push too hard.  Because history is *extremely* clear about what happens to elites who play their hands too far.  

...Here's to hoping for that mistake...  

Sun, 02/05/2012 - 13:05 | 2128638 economics1996
economics1996's picture

Bravo.  This guy understands economics.

Sun, 02/05/2012 - 13:13 | 2128686 economics1996
economics1996's picture

The whole Keynesian crap taught in text books is propaganda that hides the elites theft from the peasants.  Nothing more than a mind fuck the elites play on the village idiots in public education.

Sun, 02/05/2012 - 13:24 | 2128717 falak pema
falak pema's picture

profound words that should make the Kardashian sisters wet with relief. Now all is clear. Mind and matter.

Sun, 02/05/2012 - 13:54 | 2128843 Manthong
Manthong's picture

In this case, I hope the prom queen has a guillotine in her snatch.

Sun, 02/05/2012 - 14:12 | 2128897 whstlblwr
whstlblwr's picture

People do care. Go to RP rally.

Sorry, this is long post. With questions about voter fraud in Nevada, and the main fucked up media telling us RP got third with only %70 votes counted. Here is clip from last nights rally in Minnesota. First time I see him make points clearly. Anyone who sees this clip will want to vote for RP. Maybe you have to buy sick and tired friends a good scotch for them to watch.

http://www.youtube.com/watch?v=enhAGVi7QJA&feature=related

It is not easy to take away power from status quo. RP voters need to stay behind to watch vote counts in every precinct.

“Precinct results should be posted at each polling site. In addition, during poll closing the public has a right to be in the polling place watching and videotaping what goes on.

Here is a four-minute video showing exactly what to do:
http://www.youtube.com/watch?v=I3_xFb1sWKU

And here is comment from the DailyPaul Forum. “We need to become those who make the rules”

“With our numbers growing we need to listen what Ron Paul said 4 years ago in MN. He said, "If I became president it wouldn't matter; if i'm the only one. If you want to change government you have to become government. If we would all just work together we could take over the GOP in one to two election cycles".

The Neocons took over the GOP in 2000 there is no reason we couldn't take over the GOP in 2012 election cycle. Since 2000 I have taken over two districts and when I took over the first district I made a small change. When officers were being elected for each of the 30 districts a nomination committee of 5 would be elected, no one ever showed up for that election. Then those 5 people would choose who would be on the ballot and only put one name forward for each elected officer such as chairman, 1st vice and so on. Sure you could run from the floor but it is hard to win an election if your name is not on the ballot. So when 9 of us took over a district that represents over 125,000 voters we changed that. If anyone wanted to run and was qualified to run, they were on the ballot. Then I took it state wide and changed it for the whole state.

The bottom line is, if we don't like the GOP's unfair rules, then we need to become those who make the rules. It is easier then you might think. Sure we have to organize and work hard, but in a primary state like AZ we only have to get about 30 people in each of our 30 legislative districts to take over the whole thing. I know each Ron Paul supporter out there can recruit 5-10 each that would become a PC even if that person is not involved in politics.

I fear most of the Ron Paul supporters will do the same thing they did last time. "we didn't win, they didn't play fair, I'm taking my marbles and going home." Then they register as Libertarian, independent, etc. Like it or not the two major parties control just about everything. We wouldn't be talking about he Federal Reserve among other things if Ron Paul was in the Libertarian party. Why? Because he would have never been invited to the debates......Period! It is much easier to take over the GOP than it is to fight against them. I know many of you are thinking "Well, I'm not going to be a Republican, they are lying, cheating, no good for nothing scum!" That may be true right now, what if we could clone Ron Paul and have him in every precinct committeeman, state committeeman, district chair, county chair, state chair and national chair.......what would the GOP look like then? I think that we would have a Constitutional platform, with fair rules for everyone. Sounds like a pretty good place to be!. We are those Ron Paul clones, we care about the rule of law and the Constitution!!

I want us to organize each of our states to take as many of the voting seats as possible as precinct committeeman and what ever the caucus states voting body is. The Republican party is only a vehicle for us to take back our Country.

For Freedom,
David Fitzgerald
Former Candidate for AZ State House.
Won On Election Night, but lost by 36 votes
(out of over 36,000 votes) 10 days later.
The only AZ State Candidate Ever to
be endorsed by Ron Paul
www.DavidFitzgerald2010.com

double post

Sun, 02/05/2012 - 16:12 | 2129163 JW n FL
JW n FL's picture

 

 

other

WO9520816

 

- LEWAN MATS: 'Cold fusion may provide one megawatt in Athens' INTERNET CITATION, [Online] 02 February 2011, XP003027505 Retrieved from the Internet:

 

- See also references of WO 2009125444A1

 

https://register.epo.org/espacenet/application;jsessionid=C0EFC1CB4CE2FFB48F70B8E6F5F79D83.RegisterPlus_prod_1?number=EP08873805&tab=main

 

http://peswiki.com/index.php/News:Rossi_Cold_Fusion

 

Successful Test of 1 MegaWatt Cold Fusion E-CAT w Q&A by Sterling Allan - Oct 28 2011 - Part 3 of 5

http://www.youtube.com/watch?v=p1W3Vm1HUO8&feature=endscreen&NR=1

 

Sun, 02/05/2012 - 16:29 | 2129193 JW n FL
JW n FL's picture

 

 

Repo markets are a potential channel for liquidity risks, given their systemic importance, inherent leverage, and short tenor. For individual financial institutions that rely on repos as a source of leverage, loss of access to repo financing can both directly undermine funding liquidity and create negative market perceptions about the institution’s financial condition. Repo market disruptions, manifested in increased haircuts, aversion towards certain forms of assets as collateral, or elevated concerns about counterparty risk, can pose broader risks to asset pricing and the functioning of the financial system.

 

As illustrated in a hypothetical example (see “Repo Haircut Increases: Forced Selling?” chart), increases in haircuts can compel forced selling of the underlying repo collateral. In this example, a corporate bond portfolio requiring a 5% haircut for repo financing would enable an institution to take on a $1,050 exposure backed by $50 in equity, equivalent to leverage of 21 to 1.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659953

 

Sun, 02/05/2012 - 16:34 | 2129207 steve from virginia
steve from virginia's picture

 

HEY TD!

Great article, I presume it is from Dylan Grice, do ya think you could put up the link?

 

???

 

Thanka You!

Sun, 02/05/2012 - 21:44 | 2129657 flacon
flacon's picture

After Popo's response, there is nothing left to say. The article and Popo's response nail every coffin shut for good. 

Sun, 02/05/2012 - 22:09 | 2129690 Cookie
Cookie's picture

Strange....I read Popo's response and it had 120 up votes. I voted up, and on my screen his total reverted to zero. Chairsatan at work???

Sun, 02/05/2012 - 18:40 | 2129432 disabledvet
disabledvet's picture

Good point. Just speculating here but if a new set of risk assets takes hold in the form of nat gas and cloud computing then providing pricing power can be maintained all that's needed is material growth to take hold and this becomes yet another dog that doesn't bark.

Sun, 02/05/2012 - 14:09 | 2128900 francis_sawyer
francis_sawyer's picture

You'll get nothing & LIKE IT!

http://www.youtube.com/watch?v=0f6l1QljpMo

Sun, 02/05/2012 - 16:09 | 2129153 TruthInSunshine
TruthInSunshine's picture

I regretfully interrupt The Greatest Blunders & Bloopers of Fractional Reserve Central Banksters Comedy Special (which could fill a few quadrillion hours of airtime) to re-break some apparently breaking news (whether Panetta is bluffing in some coordinated fashion, who knows):

 

Just a bluff? Fears grow of Israeli attack on Iran

The Associated Press‎ - 51 minutes ago


"High-level foreign dignitaries, including the U.N. chief and the head of the American military, have stopped in Israel in recent weeks, urging leaders to give the diplomatic process more time to work. But U.S. Defense Secretary Leon Panetta has reportedly concluded that an Israeli attack on Iran is likely in the coming months."

Sun, 02/05/2012 - 19:01 | 2129462 moroots
moroots's picture

The hubris is on full display here as well.

The Keynsians are control freaks.  As are the lunatics in the State, Justice, and Defense Departments.  They must be the ones to write history.  It would be innappropriate in their eyes to not be the catalyst behind an unlimited amount of warfare and conflict.

They are enemies of self-determination and soverignty.  Pre-emptive wars, economic sanctions, nation building - these are their tools of the trade.

When the shit finally hits the fan because of the policies they and they alone implemented, they tell us "See, I told you so".  Making a prediction like "an Israeli attack on Iran is likely in the coming months" is setting in motion a deliberate self-fulfilling prophecy.  It also explicitly rejects any hope of compromise or of a peaceful solution, because let's face it, these people are all about winning and thus writing the textbooks in which they'll depict themselves as legends.

In early U.S. history, we remember many of the Founders as very intelligent yet very humble men.  The Founders were not control freaks who wanted to dictate to the American people how to live or what to produce.  Similarly, they were against foreign interventionism because America has no right to impose its will by force.

What we have now is two plus centuries of allowing our elected leaders to become more arrogant and more narcissistic, culminating in easily the most narcissistic administration in American history.  Where has any sense of humility gone?  Where is the empathy?

Sun, 02/05/2012 - 16:18 | 2129175 Goldilocks
Goldilocks's picture

...let’s party!!!

Fast Times At Ridgemont High (1982)
http://www.youtube.com/watch?v=0HcRGxvjvTE (0:46)

Sun, 02/05/2012 - 15:24 | 2129062 constitutionalist
constitutionalist's picture

and thats why i dropped out of college and have done better than my peers

 

Sun, 02/05/2012 - 13:27 | 2128725 Oh regional Indian
Oh regional Indian's picture

Thirding Popo's excellent piece above. Of course there have been no mis-takes.

That is what makes the rabbit hole dive into "conspiracy" topics so refreshing and liberating and difficult. Because you can un-ravel this thread past NY/DC and Hitler and London (city of) and Venice and Rome and..... it just keeps going.

Someone put up an eye-popping documnetary on Switzerland on you-tube (it's in two part and crazy).  Some of the very believable/provable theories are down-right bone-chilling. AS an aside, it's a gun-lovers paradise (most armed and practiced populace in the world of arms anywhere in the world).

So yes, no mistakes, only the appearence thereof and bloody long time-lines and data that we can only wish to lay eyes on.

ori

There is one such rabbit hole dive in the link below. Popped my eyes open! The HSBC story, the Hong Kong Story, How China was assimilated, money trails, drug running, Bronfams, Kennedys...... crazy tale/names...

/2011/10/18/more-ows/

Sun, 02/05/2012 - 13:48 | 2128823 AnAnonymous
AnAnonymous's picture

Made me laugh.

Quite a delusional appraisal.

This US citizen comment is based on a fabled past

here:

_______________________________________________________
And the constitutional republic and the associated laws which protect the rights of individuals are being annihilated by a small group who are close to achieving victory.

Their victory is our subjugation, and their prize is generational dominance. (Both of which, one must note -- have already been acheived for the most part. What happens next is really just the tortured aftermath).

_________________________________________________________

The constitutional republic and the associated laws of the US never protected the rights of individuals.

They have favoured groups.

Today, there is a shortage of Indians and Negroes to fuel the Ponzi so the Ponzi has to feed off other types ofpeople who thought they would be immune accross the course of Time from being eaten alive.

That is all. There is no elite vs base in US citizenism as the two have worked hand in hand.

Today is the story of guys who thought they were going to touch the skies climbing on other human beings, and are now forced to realize that because of shortage of human beings to act as ladder material, they are now used as material for the ladder so that other US citizens keep living the'American' dream.

There has been an erosion of nothing since the beginning of the US of A republic. This republic is on the same course as ever.

This US citizen post is once again an echo of US citizen cheap propaganda.

Sun, 02/05/2012 - 13:58 | 2128855 falak pema
falak pema's picture

you really sound like old style china under chairman Mao; when the chinese communist party used your rhetoric to say: "this is the 359 formal warning to capitalists to change their ways..."

We now know who changed their ways, don't we? 

Sun, 02/05/2012 - 17:13 | 2129284 AnAnonymous
AnAnonymous's picture

Woooo... Impressive.

US citizens and their cheap propaganda.

So the Communists in China wanted US citizens to change their ways? Good for them.

Because, as for me, it is been quite a while since I concluded that US citizens nature is eternal and therefore can not be changed.

If it could be changed, I would shrink away from any kind of deterministic prediction of the future.

Ah, yes, so apparently, US citizen nature could not be eternal and only diamonds are forever (that and the four horsemen)

US world order.

Sun, 02/05/2012 - 18:01 | 2129360 akak
akak's picture

It is the eternal nature of the foul, constantly spitting, rabbit-breeding, nose-picking, side-of-the-road-shitting Chinese citizen to deny his Chinese citizenism, and to eternally blob up. 

Blobbing up is inherent to Chinese citizenism, which is inherent to running dog Chinese imperialism, which is inherent to Chinese citizenism.

Tibet, Taiwan, the environment: all victims of imperialist and self-destructive Chinese citizenism.

Sun, 02/05/2012 - 17:56 | 2129350 akak
akak's picture

The Chinese citizen troll makes me laugh once again!

It is the eternal nature of the Chinese citizen to deny the existence of Chinese citizenism.

Just ask the genocided Tibetans --- they know all about Chinese citizenism.

Just ask the constantly threatened, freedom-loving inhabitants of the independent republic of Taiwan--- they know all about Chinese citizenism, and its running dog imperialist policies.

Just ask the ruined and toxic natural environment of Chinese --- it knows all about Chinese citizens blobbing up.

Just look at the foul and filthy Chinese citizens themselves --- they are always spitting and picking their noses and shitting on the sides of the road, like the rabbit-breeding animals that they are.

On the contrary, it is Chinese citizenism that is the curse of the world.

We must all work diligently to end the scourge and crime of Chinese citizenism.

Sun, 02/05/2012 - 18:03 | 2129364 AnAnonymous
AnAnonymous's picture

A troll, maybe, but a troll dealing in reality.

It would be somehow nice if being a Chinese meant being able to deal with the reality at hand. 1,3 billion people immune to US citizenism.

But China is like any other place in the world, there are material for US citizenism proponents.
There is nothing like Chinese Citizenism.

Chinese are adopting more and more US citizenism, though.

How can US citizens expect anything from their propaganda?

So China operates in Tibet and Taiwan and that should be considered a threat for the world?

Laughable.

Sun, 02/05/2012 - 18:10 | 2129373 akak
akak's picture

You once again demonstrate your clueless and disingenuous propaganda, which is inherent to your nature as a spitting, nose-picking, side-of-the-road shitting Chinese citizen practicing his Chinese citizenism.

When one finds a turd on the side of the road, one can be assured that a Chinese citizen passed that way --- or an imperialist running dog, which is same thing.  Such is the eternal nature of the Chinese citizen.

Your Chinese citizenism blobbing up will not succeed.

Mon, 02/06/2012 - 00:12 | 2129841 trav7777
trav7777's picture

you're criticizing the chinese for behavior which would be considered civilized for africans?

Mon, 02/06/2012 - 01:46 | 2129910 akak
akak's picture

My criticism is specifically of Chinese citizenism, which is the eternal duplicitous nature of the Chinese citizen.

Mon, 02/06/2012 - 04:14 | 2129978 Al Gorerhythm
Al Gorerhythm's picture

Practical or expiditious pehaps. Civilized? I don't believe they think that.

Mon, 02/06/2012 - 06:32 | 2130023 Poor Grogman
Poor Grogman's picture

WTF kind of LSD are you on dude?

Sun, 02/05/2012 - 13:25 | 2128659 Stack Trace
Stack Trace's picture

Thank you. Would plus this more if I could. People should be marching in the streets right now. Tomorrow they won't be able to afford their pitch-forks and rope.

Sun, 02/05/2012 - 13:30 | 2128738 Kayman
Kayman's picture

So true.  The pin-striped mobsters make their money on the vig. Rising or falling, so long as the mark is still in the game, the criminals and their apologists gain and you lose.

CPI= Constant Propaganda Index. Within the churning caldron of prices we have a weighted average ?  So what.

Sun, 02/05/2012 - 13:36 | 2128778 economics1996
economics1996's picture

The CPI is complete propaganda designed to justify the elite’s actions in inflating the money supply.  It also rips off the old fart savers.

Sun, 02/05/2012 - 15:18 | 2129050 Island_Dweller
Island_Dweller's picture

Yeah, but the old fart savers are currently getting social securiy benefits which my generation won't, so who's getting screwed?  I'd say we all are.  In fact, the more you believe in the ponzi, the greater you'll be hurt.

Sun, 02/05/2012 - 13:45 | 2128817 Joaquin Menendez
Joaquin Menendez's picture

You are missing a minor point.  By creating an unsustainable economic system, we created an unsustainable society; this was the mistake.   For example, the false assumptions behind the economic system can supply enough capital to the energy industry enough to sustain the supply forever is false.  There are actually two false underlying assumptions, false assumption one is that the financial industry can sustain energy development IN A RELIABLE WAY even though the requirement for capital is non-linear as we dig deeper for less resources.  False assumption 2 is that given enough capital, scientific and engineering innovation will overcome any constraints to exploiting energy IN A RELIABLE WAY; even if it means voiding the second law of thermodynamics.  Yet, in practice the current financial regime has supplied energy in an unsustainable way allowing populations around the world to grow to the point that when the energy is ultimately interrupted there has to be a massive die-off; it only takes a few weeks to kill billions of people this way.  Capitalism is a reactive way of dealing with the world.  It cannot deal with the downstream effects of what is happening now so it creates climate change and can do nothing to stop it, it creates an unsustainable populaton and cannot stop it, it cannot even sustain itself as every ponzi scheme comes to a bad end.  The people who created this mess will become known as the greatest criminals in history, whose greed meant the deaths of billions of people.

Sun, 02/05/2012 - 13:56 | 2128852 AnAnonymous
AnAnonymous's picture

It cannot deal with the downstream effects of what is happening now so it creates climate change and can do nothing to stop it, it creates an unsustainable populaton and cannot stop it, it cannot even sustain itself as every ponzi scheme comes to a bad end.

///////////////////////////////////////////
The very idea that mankind will overcome its environment is indeed brought by UScitizenism.

This is how US citizens have justified the massive theft they have committed on various people over the world.

The conclusion is bogus, though.

US citizen economics looks for profits. All those created situations are and will be highly profitable.

In this regard, US citizenism will keep sustaining itself.

The only stop known to US citizenism is depletion of resources.

The only stop is when the resources will be so low that well, it will collapse.

Way, way from current days.

Indeed, US citizenism is marked with a deep culture of death.

Sun, 02/05/2012 - 14:18 | 2128930 blindfaith
blindfaith's picture

 

 

It is now against the law to teach global warming "theroy"  in Utah and South Dakota.  Five more states to follow: Texas, Louisana, South Carolina, Mississippi, Alabama.

We will do everything possible to wish this away.

Sun, 02/05/2012 - 14:51 | 2128995 ISEEIT
ISEEIT's picture

S.T.F.U.

You dumb ass monkey piece of shit.

It's not "us citism" you god forsaken assfuck.

It's global, dear shithead.

 

Sun, 02/05/2012 - 17:15 | 2129291 AnAnonymous
AnAnonymous's picture

Indeed it is global. US citizenism is prevailing everywhere.

So yes, it is global.

The current state of the world is the result of the set of beliefs propagated on 1776,July, 4th and that has conquered the world since.

Sun, 02/05/2012 - 19:07 | 2129369 akak
akak's picture

Once again we see the desperate and evil Chinese citizen spreading his ruinous Chinese citizenism.

The essence of Chinese citizenism is to invade, exploit, ruin, destroy and blob up.

Stop practicing your Chinese citizenism here --- we are all sick of your blobbing up.

It is the eternal nature of the Chinese citizen to invade, destroy and blob up, as you do in this forum, as you spread your corrosive and running dog imperialism of Chinese citizenism.

As Chairman Maose once said: "All idiocy flows from the barrel of Chinese citizenism".

Sun, 02/05/2012 - 18:55 | 2129450 GernB
GernB's picture

Yes, the desire to be free is compelling. I'm sorry the path of humankind towards greater freedom disturbs you.

Sun, 02/05/2012 - 15:31 | 2129074 Joaquin Menendez
Joaquin Menendez's picture

The U.S. is just one more step along the way in a vicious cycle that has existed for at least 3000 years.  The only difference is that the consequences now are much greater than in the past.  While, we as individuals can talk about this subject is a reasonably intelligent way, humanity taken as a whole has the collective intelligence of brewer's yeast.

Sun, 02/05/2012 - 16:00 | 2129142 francis_sawyer
francis_sawyer's picture

you give "humanity" too much credit...

at least brewers yeast shits alcohol...

Sun, 02/05/2012 - 17:18 | 2129294 AnAnonymous
AnAnonymous's picture

What vicious cycle?

Once again, the very idea that human beings can overcome their environment is courtesy of US citizenism.

You remember that US citizens have to force other people to accept that part of the creed, right?

Useless to depict it as a humanity issue, it is a specific issue brought by US citizens.

The amazonian jungle dweller did not buy it and still do not buy it.

Sun, 02/05/2012 - 20:01 | 2129381 akak
akak's picture

The one true threat to the world is rabbit-breeding, nose-picking, side-of-the-road shitting Chinese citizenism, and the virulent and contagious virus of Chinse citizenism that they spread.

It is the nature of Chinese citizenism to spread, invade, destroy and blob up.

The world is dying because of Chinese citizens blobbing up.

Such is the eternal nature of nose-picking Chinese citizenism and blobbing up.

Sun, 02/05/2012 - 22:05 | 2129592 Joaquin Menendez
Joaquin Menendez's picture

The U.S. is no different than Athens, Rome, Hapsburgs, Xerxes Persia, Caliphate, Mongol hordes, Spanish Empires, Aztec Empires, Egypt, China, and on and on.  The history of the Philippines goes something like this.  Chinese fleet of 500+ ships lands and takes over large chunks of the Philippines.  Spanish fleet destroys Chinese fleet and takes over large parts of the Philippines.  United States fleet destroys Spanish fleet and takes over the Philippines,  Japanese fleet destroys U.S. fleet at Pearl Harbor and takes over Philippines,  U.S. Fleet destroys Japanese fleet and takes back the Philippines.  Finally, Philippines gets independence for a few years but you know that China is building a fleet ...  

Sun, 02/05/2012 - 14:13 | 2128910 blindfaith
blindfaith's picture

 

 

THEY already WRITE the HISTORY !!!! and Re-write it everyday as they see fit to reflect their own glory.  They will write that they did everything they could to save the world.

All the warnings over the centruies fall on blind eyes, now we have the opportunity to have all the books on digital, instantly edited, and the hard copies will be burned as a matter of convience.

The cows and sheep still believe they can still make it a new world...and they will if they are the sons and daughters of the Plutocracy.

Sun, 02/05/2012 - 14:43 | 2128981 Chump
Chump's picture

One of your best posts.

Sun, 02/05/2012 - 15:33 | 2129080 Stuck on Zero
Stuck on Zero's picture

Great statement Popo.  I would add that the real target of the Fed is not inflation. The real target is the middle class.

Sun, 02/05/2012 - 15:54 | 2129126 disabledvet
disabledvet's picture

nice retort. i would say "dispersing a million man American Army across the entirety of the Middle East" is a blunder of historic proportions. To the extent "TPTB" are "getting that prom Queen" it would be in following Barak Obama's....plan for "withdrawal". Having said that a good argument can be made that a withdrawal "while downsizing the military" has the potential for causing a greater ramp up in committments as it is being done from a position of weakness not strength i think is a good argument against the methodology thus leading to an undermining of the withdrawal mission itself. It's just an argument of course...one of many potential ones that i am certain have been made right inside the White House itself. Indeed the biggest problem may very well be the fact that an "Arab Spring" could be construed as an invitation towards more involvement...not less. With CNN banging the war drums for a Syrian intervention (something i think this Administration can do btw given their amazingly open relationship with the Arab League) "anything goes" here. Throw in Israel vs Iran...Pakistan's crumbling state, a collapse of the EU, etc...etc...

Sun, 02/05/2012 - 17:13 | 2129286 Kayman
Kayman's picture

i would say "dispersing a million man American Army across the entirety of the Middle East" is a blunder of historic proportions.

For our financial and political criminals, the blunder will be bringing them home.

Sun, 02/05/2012 - 19:14 | 2129483 Atomizer
Atomizer's picture

 

 

RE: Popo

Nicely said, one minor edit.

You: By "mistakes", do you mean the process of first inflating the value of assets to historically fraudulent levels.

Me: By "mistakes", do you mean the process of first inflating the value of counterfeit assets to historically fraudulent levels.

Keep up the awareness. It will begin to sink in shortly.

Sun, 02/05/2012 - 20:01 | 2129537 oldman
oldman's picture

"That's kind of like "accidentally" fucking the prom queen."

Wow!!! I accidently fucked the prom queen when we drank too much rum.

Been away for two months, so I'm happy to see that the mindlessness here continues

Ciao  om

Sun, 02/05/2012 - 20:59 | 2129595 mendigo
mendigo's picture

good point

I am suspicious of the motives of someone who uses this many words to explain this situation.

This is about who has the money and the power.

Who cares about Keynes or Austrian models - its all BS used to distract ftom the reality. One can only hope the situation gets much worse very quickly - the only way out.

Mon, 02/06/2012 - 16:42 | 2131708 RockyRacoon
RockyRacoon's picture

Bravo, popo.   There isn't much more to be said on the "goals" of economists, the tools of the elite.

Sun, 02/05/2012 - 12:42 | 2128604 Eally Ucked
Eally Ucked's picture

They're not stupid and they understand what you talk about but the MOST IMPORTANT is to survive their tenure and have everything under control in their personal life after that who cares?The rest ........

Sun, 02/05/2012 - 14:27 | 2128947 tmosley
tmosley's picture

Dr. Trav confuses cause and effect, and would kill the patient with his prescription, ie sterilize 97% of the human race, excluding himself, of course.  Also, oddly enough, excluding the "geniuses" at the Fed and among the government offices who caused this problem.

But hey, it's not their fault, there was nothing they could do!  It's all caused by peak oil and black people!  Submit to authority, because they are dong the best they can.  Just do your part and focus all that hate that should be going to the Fed and the government onto people that look different.  Yeah, that's the ticket!

Sun, 02/05/2012 - 17:14 | 2129287 trav7777
trav7777's picture

YOU JUST WORSHIP BALE

Sun, 02/05/2012 - 18:50 | 2129444 tmosley
tmosley's picture

Yes, that is the extent of your intellectual ability, expressed in a single post.

Sun, 02/05/2012 - 21:15 | 2129611 lemonobrien
lemonobrien's picture

when the shit hit fan, i betcha you two cuddle up together.

Mon, 02/06/2012 - 00:16 | 2129842 trav7777
trav7777's picture

the problem, cliff, is that people like you are basically yeast.

Sure, I would LOVE to dream about the high tech world of self-restraint and efficiency and all of this shit, but the problem is that people like you would just multiply and destroy it.

Sun, 02/05/2012 - 13:05 | 2128664 Urban Roman
Urban Roman's picture

Economics is a cargo cult. They've got the wooden earphones with bamboo antennas, cleared a little patch of jungle, and theyr'e just waiting for the giant silver bird to come in with chocolate and goodies for everybody.

I'm looking forward with fear and loathing to that cult being disbanded.

Sun, 02/05/2012 - 13:37 | 2128780 economics1996
economics1996's picture

"I'm looking forward with fear and loathing to that cult being disbanded."  

And replaced with Austrian economists.

Sun, 02/05/2012 - 18:35 | 2129427 fonestar
fonestar's picture

"In the long run, we are all right dead".... that's right Keynes but what you forget is that your avarice and arrogance have deprived the unborn of life itself! 

I tend to think that even if we accept their wholly mythical 2% inflationary targets (with 5% being a traditional watermark for interest rates) things should tend naturally towards slow deflation.  Yet we have veered far from this even and are now just passengers trapped on a bus, where the maniacal driver is willing to kill us all, along with the unborn, to gratify his broken theorems.

Plight of the ZH'er... to be a beacon to the world wide web, or rather an "honest fool" breaking things down for "useful idiots".

Sun, 02/05/2012 - 19:56 | 2129535 Ponzi Unit
Ponzi Unit's picture

See site motto.

Sun, 02/05/2012 - 20:32 | 2129565 thatgringo
thatgringo's picture

We are finally approaching the aforementioned destination.  A house built near a fault line may survive a single earthquake- but that's no reason to think it will not be destroyed in the next!

Sun, 02/05/2012 - 12:01 | 2128519 ISEEIT
ISEEIT's picture

I sincerely and deeply appreciate you guys sharing the truth.

Fact is, and this is the part that hurts...

People just don't care.

Apathy and "i'm gunnu get mine now" is what rules the day. Honesty is broken and we exist in a fake world that unfortunately will break only because to few are willing to 'man up' and take a hit.

I'm likely not even watching the superbowl today.

I'll probably watch fightclub again.

It's been awhile.

Sun, 02/05/2012 - 12:22 | 2128555 trav7777
trav7777's picture

a ghettoed out culture with ghetto values.

Sun, 02/05/2012 - 12:46 | 2128611 Eally Ucked
Eally Ucked's picture

So you'll have beer and fries tonight? Or maybe switch off your TV, or wreck it, if you're violent? What is it? 

Sun, 02/05/2012 - 13:38 | 2128789 economics1996
economics1996's picture

I plan on dropping a couple of hits of THC from 1974.

Sun, 02/05/2012 - 13:51 | 2128828 TruthInSunshine
TruthInSunshine's picture

Paul Krugman tweeted that he plans on watching the Superbowl tonight, but also plans on throwing his 60" HDTV out the window and onto the hood of his neighbor's car as soon as the game ends, and hopes everyone will follow his lead, which will stimulate HDTV sales, the window manufacturing sector, and auto body shop businesses.

Say what you will, but it's less expensive (in deficit terms, since we're borrowing $1.43 of every dollar spent now) than Krugman's other stimulus recommendation, to wit, the 202 trillion USD Let's Get Ready To Rumble Regardless As to Whether The Soon-To-Arrive Hostile Invaders Hail From Mars or Uranus proposed defense appropriation legislation.

Sun, 02/05/2012 - 12:24 | 2128562 whstlblwr
whstlblwr's picture

People do care. Go to RP rally.

Sorry, this is long post. With questions about voter fraud in Nevada, and the main fucked up media telling us RP got third with only %70 votes counted. Here is clip from last nights rally in Minnesota. First time I see him make points clearly. Anyone who sees this clip will want to vote for RP. Maybe you have to buy sick and tired friends a good scotch for them to watch.

http://www.youtube.com/watch?v=enhAGVi7QJA&feature=related

It is not easy to take away power from status quo. RP voters need to stay behind to watch vote counts in every precinct.

“Precinct results should be posted at each polling site. In addition, during poll closing the public has a right to be in the polling place watching and videotaping what goes on.

Here is a four-minute video showing exactly what to do:
http://www.youtube.com/watch?v=I3_xFb1sWKU

And here is comment from the DailyPaul Forum. “We need to become those who make the rules”

“With our numbers growing we need to listen what Ron Paul said 4 years ago in MN. He said, "If I became president it wouldn't matter; if i'm the only one. If you want to change government you have to become government. If we would all just work together we could take over the GOP in one to two election cycles".

The Neocons took over the GOP in 2000 there is no reason we couldn't take over the GOP in 2012 election cycle. Since 2000 I have taken over two districts and when I took over the first district I made a small change. When officers were being elected for each of the 30 districts a nomination committee of 5 would be elected, no one ever showed up for that election. Then those 5 people would choose who would be on the ballot and only put one name forward for each elected officer such as chairman, 1st vice and so on. Sure you could run from the floor but it is hard to win an election if your name is not on the ballot. So when 9 of us took over a district that represents over 125,000 voters we changed that. If anyone wanted to run and was qualified to run, they were on the ballot. Then I took it state wide and changed it for the whole state.

The bottom line is, if we don't like the GOP's unfair rules, then we need to become those who make the rules. It is easier then you might think. Sure we have to organize and work hard, but in a primary state like AZ we only have to get about 30 people in each of our 30 legislative districts to take over the whole thing. I know each Ron Paul supporter out there can recruit 5-10 each that would become a PC even if that person is not involved in politics.

I fear most of the Ron Paul supporters will do the same thing they did last time. "we didn't win, they didn't play fair, I'm taking my marbles and going home." Then they register as Libertarian, independent, etc. Like it or not the two major parties control just about everything. We wouldn't be talking about he Federal Reserve among other things if Ron Paul was in the Libertarian party. Why? Because he would have never been invited to the debates......Period! It is much easier to take over the GOP than it is to fight against them. I know many of you are thinking "Well, I'm not going to be a Republican, they are lying, cheating, no good for nothing scum!" That may be true right now, what if we could clone Ron Paul and have him in every precinct committeeman, state committeeman, district chair, county chair, state chair and national chair.......what would the GOP look like then? I think that we would have a Constitutional platform, with fair rules for everyone. Sounds like a pretty good place to be!. We are those Ron Paul clones, we care about the rule of law and the Constitution!!

I want us to organize each of our states to take as many of the voting seats as possible as precinct committeeman and what ever the caucus states voting body is. The Republican party is only a vehicle for us to take back our Country.

For Freedom,
David Fitzgerald
Former Candidate for AZ State House.
Won On Election Night, but lost by 36 votes
(out of over 36,000 votes) 10 days later.
The only AZ State Candidate Ever to
be endorsed by Ron Paul
www.DavidFitzgerald2010.com

Sun, 02/05/2012 - 12:43 | 2128593 bob_dabolina
bob_dabolina's picture

If I know Trav from reading his comments, he was referring to multiculturalism, and the more we embrace massive waves of immigrants from Haiti, Zimbabwe, Ethiopia etc, the more this country will resemble those places ie;, the ghetto - it's values and culture

Ever been to be parts of California that have only Mexican flags waving around? It's because they said "fuck it" it to our culture and imported theirs. Go to East LA if you don't know what I'm talking about. One of this biggest shit holes in California.

Sun, 02/05/2012 - 13:10 | 2128679 economics1996
economics1996's picture

Miami.

Sun, 02/05/2012 - 13:17 | 2128695 economics1996
economics1996's picture

Orlando.  Third world moving in.  With the Yids in control we will never have a country again until we revolt, dissolve the USA, and for a new country with borders, language, and culture as the goal of the new nation.  Also it would be a good idea to have free banking and 11% GDP cap on federal government spending.  Our chance will come around 2015 to 2018 when the hyperinflation hits.

Sun, 02/05/2012 - 13:29 | 2128740 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's funny that someone who admits the profession of economics is liars poker can then put a date on hyperinflation.  So it will be when the Debt is $30 trillion?  $45?  We are already over 100% debt/gdp, Japan has higher debt/gdp than Zimbabwe, Europe is about to default (which would lead to a hyperinflation of the euro) or print $10 trillion (which will come from the Fed).

2015, I keep hearing that time frame, like it couldn't happen now.  And it might not!  But the money and the banking of said money would nee to be leveraged up high and wide to keep the S from HTF.  How do they leverage?  With gold.  Gold would need to be maxed on leverage to keep the debt/gdp in an arc that isn't parabolic.

We are looking at $3300 overnight or bust once the next round of printing hits.  The next round is set for next month, not 2015.  And if gold goes to $3300 it will mind fuck the shit out of everybody, and then a gold bubble will start.  Panic buying out of fiat and into gold will start, it will destroy the fiat, and raise gold through the roof.

2012 bitchez

Sun, 02/05/2012 - 13:52 | 2128834 economics1996
economics1996's picture

My prediction is based more on entitlements going permanently in the red and history, Germany, 1918-25.  People underestimate inflation in the first years if the inflation explosion.  Maybe this time with increased awareness it will be different.

Is it scientific?  Economics is never 100%.  We certainly have severe inflation NOW.  The inflation is conservatively 8.6%.  Hyperinflation, this year?  Election year?  If it happens Obama is gone and the revolution is on. 

I would suspect that the politicians and Federal Reserve would prefer to continue the job loss to fight inflation and the continuation of the propaganda, at least until the election is over. 

We lost 1.2 million workers and the seasonal adjustment showed the unemployment rate dropping.  Pretty slick trick and the 1.2 million workers will not be bidding up prices in the foreseeable future.  I see no reason for the tactics to be switched, as long as the inflationist can confuse capital users with false profit signals.  The bastards know how to play the game.

Sun, 02/05/2012 - 14:14 | 2128914 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

But once again, I believe you are giving to much credence to those who are running the Fiat Ponzi.  Or at least maybe you are not considering all of their motices.  You could be right, by the way, but here are some other scearios to consider:

Why not let this election year spiral out of control?  It will create chaos and ferver a nice new round of fear.  The liberals will be shamed, and the GOP, war hungry as they are, can fight back.  Does the establishment care who wins between Obama and Romney?  They just want to further their control.

As far as the Fed is concerned they have done their job.  They ate away 98% of the dollars purchasing power, they have stolen the wealth of 99.9% of the world, and considering that oil production will fall between now and 2015, maybe they want to get the show on the road.  As far as them knowing what they are doing, we already established that economics is total BS, and like all things, reality will have the last laugh.

They can only hope to contain the mess, and once that string is lose, they will step back and watch it unravel from their acres in Bolivia and Montana.  These fuckers don't control the universe, and at this point there is a Whiteness of Black Swans decending.  So my point is, yes, by best estabates the Fiat Ponzi will be rotting by 2015, but why not sooner?  If you were these bastards, wouldn't you cut your chord before the SHTF?  I would.

Sun, 02/05/2012 - 15:16 | 2129035 economics1996
economics1996's picture

 

You may be right, there are so many independent variables that no central planner can account for.

As for economist please do not lump Austrian with Keynesians or monetarist.  Austrian economics is what exposes the Keynesians and central planners.   If you want some good books to read on Austrian economic theory let me know.

History is on your side, and your prediction.  Typically when the money supply is inflated, 1925-29, 1716-1720, 1833-37, you have three to five years before it all comes undone.  So we are in year 3 and 3 months.  That would make your prediction before the 2012 election spot on the historic time line.

I just choose 2015-18 based on benefit payouts, nothing more, and the Germany experiance.

If I was to bet $$$ I would say 2012-13, keeping with the historical time frame.  History does repeat.

Gold $3,300?  Fuck I need to run up the credit card.

Sun, 02/05/2012 - 15:52 | 2129121 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When I chastise "economics" I am directly aiming at Keynes. 

I have read, and enjoy, Mises.

Sun, 02/05/2012 - 17:17 | 2129292 GCT
GCT's picture

Whistleblower people for the most part are fat and happy and will not do a thing to imperil their status in life.  They believe the lie as do you.  We are going to be offered the media backed politicians that promise you the moon and deliver shit to the population.  As long as TV and ipads are affordable nothing will hapen, period.  I have been to both the Tea Party amd the OWS parties.  Both basically are tired of the corruption.  However the Tea Parrty was focusing on governement corruption while the OWS blames the banks.  The politicians own the laws, courts and can screw anyone anytime they like.  RP is not going to make it as he is not the chosen one.

I really really hate to make this prediction but Obama will get re-elected.  The Republican party is just another version of the Democrat party and both are corrupt.  Nothing matters to most people as long as they get their handouts from the government.  We are basically greedy and want the wealth of others to support us.  Look around you or better yet go discuss this outside your circle of friends.  Most are clueless.  At work all they discuss is reality TV and how to afford the next toy or complain they are not making enough to buy the next toy.  It boggles my fucking mind they do not see what is happening to them.

The political class backed by the banksters are succeeding in dividing this country and laughing at all of us as we point fingers at each other and go "oh-oh" it is your fault.  Guess what it is all of our fault we put the assholes in office.  You really want an eye opening experience hhit the projects in any city.  Funny how they love the Dems yet the Dems were against all major legislation to promote almost everything in the past.

Enough ranting for now

 

Sun, 02/05/2012 - 18:14 | 2129382 economics1996
economics1996's picture

Three aircraft carriers in the Persian Gulf?  The elites will throw us into war if they have to if that is required to maintain power

Sun, 02/05/2012 - 17:28 | 2129295 cranky-old-geezer
cranky-old-geezer's picture

 

 

we will never have a country again until we revolt, dissolve the USA, and for a new country with borders, language, and culture as the goal of the new nation.

Our chance will come around 2015 to 2018 when the hyperinflation hits.

Yep, always putting off that revolution saying "It's not quite time yet."

Bullshit. 

It was time for it in '71 when Nixon closed the gold window and turned our currency into worthless paper. 

It was time for it in '01 when the government carried off its biggest false-flag attack on American soil killing 3,000 people, then passed the Patriot Act into law. 

It was time for it last year when congress enacted laws suspending habeas corpus allowing American citizens to be imprisoned without trial.

That was the last remnant of liberty in America, and now it's gone.

But still no revolution.

It'll happen when hyperinflation hits?

Bullshit again. 

Germany didn't revolt during Wiemar hyperinflation.  Argentina and Zimbabwe didn't revolt during their hyperinflation.

NOBODY has revolted during hyperinflation.

Let's face the facts.  The will be no revolution in America at any time in the future.

If it hasn't happened by now, it won't happen at all.

Sun, 02/05/2012 - 21:04 | 2129600 oldman
oldman's picture

SAY IT, BROTHER!!!!!!

"Bullshit again.

The will be no revolution in America at any time in the future.

If it hasn't happened by now, it won't happen at all."

 

You've got these dudes well-pegged     

thanks   om

Sun, 02/05/2012 - 13:39 | 2128781 Randall Cabot
Randall Cabot's picture

The Culture of Critique by Kevin MacDonald. The entire book is linked here: http://www.prometheism.net/library/CultureOfCritique.pdf

Read the chapters on immigration and you will be an expert on the origins and implementation of "Multiculturism" in America and other European countries.

Sun, 02/05/2012 - 21:26 | 2129631 Cathartes Aura
Cathartes Aura's picture

erm,

Ever been to be parts of California that have only Mexican flags waving around? It's because they said "fuck it" it to our culture and imported theirs.

Los Angeles.  San Francisco. San Diego. hell, all the "San"s - sound "amrkn" to you??  news flash gringo: their ancestors were there FIRST.

California has a varied "history" and "white" was/is just the latest flavour - it no doubt won't be the last. . .

http://en.wikipedia.org/wiki/California#History

Sun, 02/05/2012 - 12:43 | 2128606 Non Passaran
Non Passaran's picture

Great comment, thanks!

Sun, 02/05/2012 - 12:27 | 2128565 Caviar Emptor
Caviar Emptor's picture

18th century (including US revolutionary war for independence): was about trying to ensure that tomorrow's world will be a better place than today's. 

Our time now: is about trying ensure that today's world is a better place than tomorrow's. 

Economic and political policies fall in with the thinking

 

Sun, 02/05/2012 - 12:53 | 2128629 AnAnonymous
AnAnonymous's picture

18th century (including US revolutionary war for independence): was about trying to ensure that tomorrow's world will be a better place than today's.

//////////////////////////////////////////////

Amusing. No.

Actually, these guys started it all.

The 'flawed' economics concepts do not trace back to the 20th century as the article falsely claims.

They traced back to the rise of US citizenism.

There are only formal differences between the causes that led to the great depression, following the nineteenth century of colonial expansion and the current flavour of expansion.

The US 19th century was hinged around the belief that there would also be more Indian land to sponsor the 'freedom' project held dear by US citizens.

When the manna source dried up, meaning no more Indian lands, this Ponzi matured into two WW and other events like Communism taking over in China and Russia etc.

Abundance was brought by previous orders to the US citizen order.

The quest to abridge the age of abundance is the legacy of US citizenism to the world.

Sun, 02/05/2012 - 13:42 | 2128804 Caviar Emptor
Caviar Emptor's picture

When people say "let's not carry debt" and "let's put our lives at risk to build for tomorrow" that's a different attitude than "tomorrow will take care of itself. Let's live for today. Run that plastic, baby!" 

Sun, 02/05/2012 - 13:59 | 2128861 AnAnonymous
AnAnonymous's picture

US citizens have from day one kicked the can.

Way before plastic was invented, I think, since US citizenism rose on 1776, July, 4th.

Sun, 02/05/2012 - 15:54 | 2129129 Hulk
Hulk's picture

Kadir beneath Mo Moteh.Shaka, when the walls fell.Temba, his arms wide.Mirab, his sails unfurled.Sokath - his eyes uncovered. Kailash, when it rises.The river Temarc - in winter.Rai and Jiri at Lungha. Kiazi's children - their faces wet. Zinda - his face black, his eyes red. Chenza at court - the court of silence.Uzani - his army with fist open. His army with fist closed. 

Sun, 02/05/2012 - 18:18 | 2129394 akak
akak's picture

AnonymousAsshole on ZeroHedge. AnonymousAsshole, his sphincter spread wide.  AnonymousAsshole, shitting on every thread.  Chinese citizenism, obvious to all.

Sun, 02/05/2012 - 20:30 | 2129563 Hulk
Hulk's picture

Thanks for the laugh akak...

Sun, 02/05/2012 - 18:29 | 2129416 GernB
GernB's picture

Evidence please

Sun, 02/05/2012 - 12:04 | 2128525 americanspirit
americanspirit's picture

A wise man once said "You can fool some all of the people some of the time, and some of the people all of the time, but you can't fool all of the people all of the time" , which sounds good, but he was apparently wrong. Hence, "It's is probably a bigger shame that the general public continues to refuse to call them out for their endless barrage of lies." Party on!

Sun, 02/05/2012 - 13:00 | 2128649 AnAnonymous
AnAnonymous's picture

No. The current situation does not allow to draw that conclusion.

The article is casual US citizen cheap propaganda, as usual.

Sheeple is a term of denial.

The article does not want to admit that US citizens know and agree with what is going.

The current situation is typical to US citizenism:winners and losers, with winners turning a blind eye to losers.

Winners are not sheeple. They know what is going on and they benefit from it.

US of A citizens rushing to the military recruitment bureaus are not misinformed, are not sheeple. They are well informed and know what to expect and what the rewards are.

No sheeple.

US citizens are duplicitous. One good test would be to ask how many of US of A citizens posting regularly on this site kickstarted their life thanks to the military.

US citizens do not disagree with tyranny, they disagree with being tyranized. They favour inequality.

As long as they are on the tyrants'side, so far, so good. It is only whenthey slip towards the tyranized's side they start to question US citizenism.

Duplicity.

Sun, 02/05/2012 - 14:10 | 2128899 LetThemEatRand
LetThemEatRand's picture

So true.  Another example is all of the no government/no taxation crowd who themselves attended public school, use public roads, drive around in Hummers (developed for the military) while proclaiming the need to "drill baby drill" even as we spend trillions in public money keeping the oil and gas flowing, etc.  As soon as they hit a certain level of self-sufficiency, they demand that society stop taking from them and that everyone fend for themselves.   They watch Russia flex its muscles over its oil wealth and then demand that we stop spending money on alternative energy.  So long as they believe they will be the tyrants, then to hell with regulation.  It all boils down to one thing:  me.  They didn't call it the "me generation" for nothing.

Sun, 02/05/2012 - 18:20 | 2129397 akak
akak's picture

Wow, we just got the Doublemint Gum of trolls here!

It's two, two, two extreme trolls in one!

Sun, 02/05/2012 - 19:15 | 2129488 moroots
moroots's picture

You are every commenter in the New York Times.

Again, the arrogance is ever-present: you assume that no schools, roads, Hummers, or oil and gas would be produced if not for the benevolence of government.

Or, alternatively, you suggest that because the government has provided some of these things, that a) the cost was worth it, and b) this benevolent legacy entitles them to avoid accountability for ripping of the taxpayer.

Altogether you also ignore the division between State and local governments, which have more legitimacy to perform those tasks you mention, and the Federal government, which through it's centuries of malevolence and power consolidation has usurped these roles from States and towns.  It's the Federal interference that is causing the decresae in the quality of these kinds of public assets and also the stiffling of individual community's rights to decide for themselves the role of their government.

Sun, 02/05/2012 - 19:15 | 2129489 GernB
GernB's picture

It is astonishing the frequency with which those who want to take the fruits of others labor claim the ones they are stealing from are the selfish ones.

Sun, 02/05/2012 - 19:22 | 2129494 akak
akak's picture

+1,000,000,000,000,000,000,000,000,000,000,000

 

Or, in other words, + (the federal debt in five years).

Sun, 02/05/2012 - 12:05 | 2128526 Jefferson
Jefferson's picture

The idea that the systematic destruction of the global financial and economic system is merely the unfortunate outcome of a group of bumbling fools is hopelessly naieve. The controlled demolition we are witnessing at all levels of society including the financial, political, religious, cultural and education systems is disgusting yet malevolently brilliant. 

Sun, 02/05/2012 - 12:41 | 2128601 Waffen
Waffen's picture

Agreed. If they were just Bumblers they would get some things right by chance. Then all one need look is at what some of the elite said. George soros told us in 2008 that china would replace us and that we must have a managed decline of the dollar. This is exactly what we are seeing. This is no result of fools but rather a result of a plan.

This is a planned event and we will know this is true when after this disaster the solution offered will be global government, when what we need is more localization.

Sun, 02/05/2012 - 13:05 | 2128662 Jefferson
Jefferson's picture

It was not my intention to doubt that, the Doctrines of the Illuminati, and principles of Jacobinism had not spread in the United States. On the contrary, no one is more truly satisfied of this fact than I am.

George Washington
Mount Vernon, October 24, 1798

http://etext.virginia.edu/etcbin/toccer-new2?id=WasFi36.xml&images=image...

Sun, 02/05/2012 - 13:31 | 2128749 VelvetHog
VelvetHog's picture

"Agreed. If they were just Bumblers they would get some things right by chance."

 

I would argue that from "their" point of view they have gotten almost everything perfectly right.  Bumblers?

Sun, 02/05/2012 - 13:02 | 2128655 AnAnonymous
AnAnonymous's picture

The controlled demolition we are witnessing at all levels of society including the financial, political, religious, cultural and education systems is disgusting yet malevolently brilliant.

//////////////////////////////////////////////////

No. Brilliant? How?

What is going on is the natural course of US citizenism.

US citizens have no option here, they will keep acting the line of US citizenism, and US citizenism drives them where it is now and where it will be tomorrow.

They are on a train, one track.

Nothing brilliant in that. Nothing engineered. Simply US citizenism following its own course.

Sun, 02/05/2012 - 13:58 | 2128856 Randall Cabot
Randall Cabot's picture

Ron Paul isn't an option?

Sun, 02/05/2012 - 14:02 | 2128877 AnAnonymous
AnAnonymous's picture

The negro in the oval office shows every day one man cannot change US citizenism from within.

Paul would achieve nothing.

The story that somehow an elite would be raping the base in the US of A is hollow.

The elite in US citizenims governs with the consent of the the governed.

The elite and the base in US citizenism work hand in hand.

Pushing a top who has totally different road map from the base yields nothing because in the end, power in US citizenism derives from the consent of the governed.

Sun, 02/05/2012 - 18:22 | 2129403 akak
akak's picture

It is the eternal nature of Chinese citizenism to shit on the side of the road, with utterly no shame.

Just as it is your eternal nature as a Chinese citizen to shit on every thread in this forum.

Such is the nature of dishonest, destructive, running dog Chinese citizenism.

Sun, 02/05/2012 - 12:05 | 2128527 rsnoble
rsnoble's picture

Here's a good article that goes into some depth about what the bastard elites are up to:

http://www.thedailybell.com/3578/Staff-Report-David-Icke-on

Sun, 02/05/2012 - 14:05 | 2128873 Randall Cabot
Randall Cabot's picture

Icke is right about the real world machinations but he loses most people with that vibrational and supernatural reptilian stuff.

Sun, 02/05/2012 - 19:51 | 2129530 Kipper und Wipp...
Kipper und Wipperzeit's picture

I think it's metaphor, but last I checked, dude avidly insists it's real.

Sun, 02/05/2012 - 22:28 | 2129711 Cathartes Aura
Cathartes Aura's picture

sometimes people need a polarised viewpoint to ween themselves off "belief" systems - although I'm not well versed in Icke's storyline, perhaps he attracts people who are coming off the "good/god" vs. "bad/devil" way of thinking - you know, the "devil" is usually illustrated as some form of "animal" - goat, snake, etc. mish mash - so it's not such a leap for minds accustomed to "devils" to see "reptilians" as evil-doers. . .

once one grows out of the need to "demonise" then the actual plot is more interesting than what the "villain" appears to be.

of course, Icke's got his "brand" to think of - and how many folks use his name to describe "the reptilians"?  win.

Sun, 02/05/2012 - 12:06 | 2128528 Zola
Zola's picture

The problem is when they print and make the CPI flat when it should be declining , they are actually robbing the people of the world who would be benefitting from lower prices ( in the 1920s lower price brought because of productivity gains and economic growth). In a way it is really hard to make people understand what could have been instead of what is...

Sun, 02/05/2012 - 12:43 | 2128607 Rodolfito
Rodolfito's picture

An important insight, well said. .. 'what could have been instead of what is..'. When thought of in this way, the 'what is' is shown in its true colours.

Sun, 02/05/2012 - 13:08 | 2128672 Saro
Saro's picture

Came here to post exactly this, so upvote for you.  Inflation is completely unmeasurable, and attempts to do so by simply cataloguing prices is dishonest.

Sun, 02/05/2012 - 12:15 | 2128545 GeneMarchbanks
GeneMarchbanks's picture

This whole comparison-to-physics thing needs to stop before the analogies get to be so absurd that only a schizo can decipher. Jesus, if we ever needed a simple Kantian 'honest road' application it is now. Physics was an attempt to create a structure of the world without consciousness and it peaked some time after the whole Copenhagen interpretation and died with the EPR paradox.

Economics is a social science that deals with people, nations distribution of goods and many general concepts that cannot be calculated. I know Grice, like others, wants to lend credence to his articles by alluding to perceived intellectual giants but it does no good. It ends up only deepening the confusion and makes for intellectual masturbation. Meaningless drivel.

At some point you realize that a fiat monetary system, as the name suggests, works on faith which means any 'calculation' or 'projection' is not only wishful thinking but downright ludicrous. Faith is dwindling big time, the issue is with an experiment gone bad and complete meltdown in the ethics department. Grice has no answers...

Sun, 02/05/2012 - 12:22 | 2128557 Tyler Durden
Tyler Durden's picture

Speaking of meaningless drivel, how do Feynman's observations on the definition of knowledge, on epistemology, or on self professed expertise have anything to do with EPR?

Sun, 02/05/2012 - 12:38 | 2128595 ViewfromUnderth...
ViewfromUndertheBridge's picture

Oh the irony...Feynman on knowing and your misquoting (ie, out of context and thereby reversing his meaning) of Keynes' most famous utterance.

Sun, 02/05/2012 - 12:55 | 2128635 Tyler Durden
Tyler Durden's picture

that's odd - and we thought the most famous utterance was “By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”

Sun, 02/05/2012 - 13:00 | 2128653 ViewfromUnderth...
ViewfromUndertheBridge's picture

It's at No. 2 with a bullet! Yours is in the footnotes...

http://en.wikiquote.org/wiki/John_Maynard_Keynes

Sun, 02/05/2012 - 16:13 | 2129168 disabledvet
disabledvet's picture

and it's modern application: "why do it secretly when you can do it in broad daylight?" Obviously there's been a big "kerfuffle" over the Fed's new policy of being open about it's projections and thinking...i happen to think it's pure brilliance since it costs them nothing do so...and binds them even less. If The Bernank can..."create certainty"...by espousing predictions and then lo and behold have all the rest of us see it be true...that is the very definition of creating confidence...and as such "others will follow him." (as of course they have: Britain has been QE'ing for some time, Europe is simply doing it by another name). Of course no one will believe in recovery until growth returns con gusto and employment and incomes pick up to a level that at least rivals what happened in the 1980's. And we have a long way to go for that...something the Fed Chairman has acknowledged i might add...and stated as a policy goal too....Sorry! I'd like to complain. I used to be The Berank's biggest critics--but at some point you have to look at his view of the data versus yours and mine and realize "he's factually spot on." I know i've been completely wrong on my haughty and arrogant view towards what interest rates would do. if i had been working on Wall Street at the time clearly i would now be out of a job. the question therefor is brutally simple now: "can growth be achieved?" the fact that interest rates spreads have been compressed is NOT the fault of the Fed...that's the fault of the Banksters and their unwillingness to lend to anybody (by and large) other than the Government. Once could argue post Fukushima and "Crisis Euro" that our government..."winning"...for lack of a better term...is generating enough animal spirits to return growth to the US economy. We shall see. I still see "debt bombs" all over the place waiting to go off.

Mon, 02/06/2012 - 02:46 | 2129935 cranky-old-geezer
cranky-old-geezer's picture

 

 

  • Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
    • Chapter VI, pg.235-236

So there it is.  Keynes was opposed to the kind of rampant currency printing we see today.

No, what Bernanke has done since '08 cannot be justified under Keynesianism.  

It's rampant uncontrolled currency printing, the very thing Lenin said would loot the citizens of all their wealth.

It's the same thing the Founders said.

It's the same thing many here have said, including me.  Bank bailouts and government borrowing needs are mere cover stories for looting the people, silently, secretly.

 

Sun, 02/05/2012 - 13:04 | 2128661 GeneMarchbanks
GeneMarchbanks's picture

Feynman was a physicist first and anything he wrote on epistemology should be considered an outgrowth from that. He supposedly was interested in biology. No social observations are to be found amongst his writing at least in an economic context.

Grice could easily use Popper, Hume or even Kant if he wishes to refer his deep understanding to an epistemologist but chooses Feynman to somehow pretend we are... what? he's working on an atom bomb? My point remains. He'll continue complaining about the perpetual ponzi while staying nice and cozy in the banking class at SocGen.

So do you want to talk about the 'God particle' or what? When do these fine hyper-specialists come out and simply admit there are things that cannot be grasped by the mind instead writing nonsense? That's where the EPR paradox comes in.

 

Sun, 02/05/2012 - 13:29 | 2128736 Blindweb
Blindweb's picture

Feynman knows the basic fact of being an intelligent person.  The map is not the terrain.  The map can never be the terrain.  You don't need to know about a EPR paradox or Heisenburg to know the limits of physics or science.  Lao Tzu figured this stuff out thousands of years ago. 

Popper, Hume or even Kant...Discover your true nature as it exists and then maybe I'll take you seriously as a philosopher.  At least Descarte got that far.  (He conscously knew Cogito ergo sum was an assumption)

 

 

 

Sun, 02/05/2012 - 14:03 | 2128882 GeneMarchbanks
GeneMarchbanks's picture

I mentioned philosophers that deal with social science and epistemology specifically. Grice is reaching into the realm of physics as an example that is beyond the category of econo-politics. Aligning yourself next to  other (accepted) scientists to lend credence to your ideas is the work of intellectual midgets and bums. Every monkey likes to quote Einstein but it means nothing. Feynman contributed to the A-bomb, hardly something to aspire to as a physicist or person. Science is an affair of bureaucrats and it's time to simply say so and move on.

Zen is metaphysics not physics and Lao Tzu hasn't anything to do this and neither does Descartes.

Finally, a good reading of not only classical mechanics and its theory is important in understanding what can and cannot be said about the physical world around us, so it is necessary to have a grasp on a subject. The nonsense of modern garbage such as Schrodinger's Cat and 'God particle' is fantasy stuff not science. Makes for great half-hour PBS specials and that's about it.

 

Sun, 02/05/2012 - 17:29 | 2129314 trav7777
trav7777's picture

uh, yes you DO.

ANYONE can babble bullshit and like a stuck clock be right sometimes.  Either you know physics and math or you do not.

I'm still wondering wtf the relevance of EPR is to this topic at hand.  EPR is empirically resolved

Sun, 02/05/2012 - 13:36 | 2128774 Blindweb
Blindweb's picture

Feynman, 'The name of a thing is not the thing named'  This is the really insightful quote from that show.  Knowing that gives you real insight into knowledge.  No matter how far you look into something you can never know it.  As far as I can tell, all of you, including Dice,  missed it. 

Sun, 02/05/2012 - 12:34 | 2128587 Caviar Emptor
Caviar Emptor's picture

It's at root just a battle over the whole metrosexual thing. 

Sun, 02/05/2012 - 12:59 | 2128643 Cognitive Dissonance
Cognitive Dissonance's picture

As a self confessed metrosexual (keep your hands off my hair spray buddy) all I can say is that I resemble that. :>)

Sun, 02/05/2012 - 13:19 | 2128700 falak pema
falak pema's picture

what pleases metrosexuals about that label is that it has sexual attached to love of metropolis. Sex and the city...New Yorkers can feel comfortable with it, but  the guys from Montana probably want to scratch their cojones when they hear that term, or ride their horses into OK Corral and gun down all metrofools in well heeled boots. What a crazy world this is; half Taliban, half Justin Timberlake. Lets hope they open Kabul Kitchen soon once the Montanan cowboys leave, with George C and Brad P as managers and the Kardashian sisters as sexy servers. It'll do more for metrosexual harmony with Talibans than growing poppy for the MIC. 

Sun, 02/05/2012 - 13:51 | 2128788 Caviar Emptor
Caviar Emptor's picture

What a crazy world this is; half Taliban, half Justin Timberlake.

Lol. That's the conflict in a nutshell. And it cuts across cultures, national borders etc..

You can say Red vs Blue, you can say Saskatchewan vs Vancouver it's all a reflection of the same. A battle epic for the soul of today's man. Everything else just follows. Who will the man of tomorrow be? If you ask yourself that question in Yemen, the answer might jsut as easily be Justin Timberlake as Prince al Walid bin Talal. The dichotomy is the same in Russia as it is in China with their own versions

Sun, 02/05/2012 - 17:39 | 2129330 trav7777
trav7777's picture

metrosexual men want to be women.

The largess of real men has allowed this urge to propagate.  In more savage times, the metro men had much lower offspring survival rates

Sun, 02/05/2012 - 13:46 | 2128814 RichardP
RichardP's picture

As a self confessed metrosexual ...

Didn't you say you live in the woods?  How can you be a metrosexual if you don't live in a metropolitan area? ;-)

Sun, 02/05/2012 - 13:52 | 2128838 Caviar Emptor
Caviar Emptor's picture

Why not? Metrosexual, like yuppie before, will transcend geography

Sun, 02/05/2012 - 14:18 | 2128933 francis_sawyer
francis_sawyer's picture

Guys talk about, what? "Hairtinting"?

http://www.youtube.com/watch?v=tE_0cHeZcQ0&feature=related

Sun, 02/05/2012 - 16:36 | 2129210 Goldilocks
Goldilocks's picture

1800 Tequila - Kickback Commercial
http://www.youtube.com/watch?v=9BdM5RE6nz0 (0:15)

Sun, 02/05/2012 - 16:18 | 2128792 TruthInSunshine
TruthInSunshine's picture

GeneMarchBanks said:

"This whole comparison-to-physics thing needs to stop before the analogies get to be so absurd that only a schizo can decipher."

 

If The Bernank would call me back, maybe I could convince him of the futility of pushing on a string, though.

 

Bernanke seems real thick, despite his really high SAT score and Ivy League pedigree, because he keeps insisting (at least as judged by his statements and actions) that monetary policy (and ostensibly the bizarre kind of monetary policy he's unleashed on the world) can:

a)  Create sustainable, high wage jobs;

b)  Save financial institutions that are too numerous in number and obsolete in their business models from damnation (via the robbing taxpayers, savers and stealing what ordinarily would be private sector consumption to prop up zombies model);

c)  Increase sustained, aggregrate demand for goods & services.

 

But then again, maybe it's wrong of me to assume it's possible that The Bernank is actually trying to pull off options a) and b) above [and I must say that the longer The Bernank runs Operation Squeeze Play, the less his odds are of pulling off even option c), as well].

Sun, 02/05/2012 - 17:40 | 2129333 trav7777
trav7777's picture

I have had issues with other people who studied economics but who are otherwise highly intelligent.

Sun, 02/05/2012 - 17:42 | 2129335 TruthInSunshine
TruthInSunshine's picture

You & me both.

Sun, 02/05/2012 - 12:56 | 2128546 TruthInSunshine
TruthInSunshine's picture

The Bernank's supporters (and supporters of fractional reserve banking, generally) will show up in droves in the comments section any minute now, in order to express their opinion that Bernanke & central economic, monetary & fiscal planning is an overwhelming success, and that if one excludes 1913 through 2008, that the timeframe of 2009 through present, as indicated exclusively by the move in U.S. equity indexes (a reflation of nominal index averages to 1999 levels, and only at a cost of some 5.3 trillion USD in money printing, and another 12 trillion USD in backstopping - implicitly or expressly - TBTF financial entities), strongly supports their opinion.

 

In other news, and in a shout out to Barry 'Green Shoots' Ritholtz, because some may understand how I am like a pit bull on matters I believe are propaganda, and it's either an asset of my personality or its bane, but here's a late discovery I found regarding the BLS U3 NFP Report on Friday (prepare yourselves accordingly - we're dealing with a BLS economist in the following):

 

"There was not a big increase in discouraged workers," economist Betsey Stevenson (Betsey Stevenson, the chief economist at the Department of Labor, who works directly under the Secretary of Labor*) commented on Twitter. "What happened was Census found a bunch of old people we had assumed died." [The Wall Street Journal, 2/3/12]

http://blogs.wsj.com/economics/2012/02/03/whats-behind-the-unemployment-...

Okay, so Betsey Stevenson (Betsey Stevenson, the chief economist at the Department of Labor, who works directly under the Secretary of Labor*), is essentially saying a predominant majority of the people the 2010 Census 'discovered' were "old people [they] had [previously] assumed died."

It's HILARIOUS in a sad way. And it's convenient, too, if their goal were to use statistics to minimize the reported rate of U3 ("Nawww, never, Ritholtz would doubt claim...never, ever...").

You see, it's a "bunch of old people" that they discovered, who are presumably too old to be counted for purposes of measuring the unemployment rate anyways.

That group of 'newly discovered people' did not include many "working aged, but unemployed people." No. /sarc

So it's all good.

LULZ.

 

*U.S. Department of Labor: Biography of Chief Economist Betsey Stevenson

Sun, 02/05/2012 - 12:16 | 2128547 drbill
drbill's picture

Keynes was no idiot. I often wonder if he knew that his General Theory was nothing more than "permission" for governments/central bankers to print money. Either way, if Keynes didn't exist, it would have been necessary to "invent" him. What better way to justify your actions than by having an "expert" back you up?

Sun, 02/05/2012 - 12:42 | 2128605 TruthInSunshine
TruthInSunshine's picture

drbill said:

 

Keynes was no idiot. I often wonder if he knew that his General Theory was nothing more than "permission" for governments/central bankers to print money. Either way, if Keynes didn't exist, it would have been necessary to "invent" him. What better way to justify your actions than by having an "expert" back you up?

I agree that Keynes was no idiot (he was brilliant, although he'd be the first to admit that arithmetic & utilizing methods to quantify 'things' were not his strong points - which modern economics depends so heavily upon), but that his ideas have been so bastardized by those invoking his name that he'd sue them for slander/libel if he were to awake from the grave tomorrow; and here's a mere sample of a profound truth he laid bare by J Keynes:

 

“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.”

 

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.

 

J.M. Keynes on inflation in The Economic Consequences of the Peace (p. 235-6)

Sun, 02/05/2012 - 12:49 | 2128620 ViewfromUnderth...
ViewfromUndertheBridge's picture

Thank you. Keynes' quote "Ïn the long run we are all dead" was in fact a rebuttal of the view that inflation would dissipate in the long run...but so few have actually read Keynes that it is always misquoted, sorry to see this particular Tyler doing it too.

Sun, 02/05/2012 - 13:10 | 2128678 Sandmann
Sandmann's picture

He was commenting on The Pigou Effect known later as The Real Balance Effect discussed by Harry G Johnson. There are some people like Alan Greenspan who think the Economy is self-correcting and that all will come right in the end. Keynes merely observed that this might take two or three generations.

Now it is clear that people commenting on these threads are quite prepared to live in crashed out zones like Flint, Michigan or Detroit, Michigan for 60 or 100 years as natures forces work their way through the system, but not everyone is so patient and might turn to Father Coughlin or Huey Long instead - or even Josef Stalin who had quite a following in the USA in the 1930s and lots of Americans going to the USSR for work.

Keynes was simply observing that Italy was Fascist, Germany had Nazism, Russia had Communism, Hungary had Fascism as did Poland and Spain.......and it was a question of whether Britain went Fascist too......he thought there was a way to avoid that, but fortunately the country found it could only implement his ideas by going to war for 6 years and bankrupting the country leaving the USSR as the most powerful country in Europe instead of Germany.

The reason the US had a good life between 1945 and 1973 was NOT Keynes - it was "Guns and Butter" - Cold War weapons programs which made Texas and California prosperous and sent lots of GI's kids to College. It made the Good Life possible until someonde decided to spend money in Vietnam and Harlem and Watts without raising taxes to pay for it. Blaming Keynes is easy when blaming Kennedy and johnson would be more appropriate - they did not tax enough !

 

Sun, 02/05/2012 - 13:33 | 2128762 AnAnonymous
AnAnonymous's picture

Now it is clear that people commenting on these threads are quite prepared to live in crashed out zones like Flint, Michigan or Detroit, Michigan for 60 or 100 years as natures forces work their way through the system,

///////////////////////////////////////////////////////

Made me laugh. Such cheap propaganda.

Smithian economics leads to transfer between zone B and zone A.

So if your dream land, when A trades uranium from B in exchange for the uranium waste from A to B, the system will self correct as natural forces take over?

Made me laugh. US citizenism leads to incredibly cheap propaganda.

Sun, 02/05/2012 - 14:28 | 2128948 Sandmann
Sandmann's picture

You should rename yourself  Incoherent rather than AnAnonymous. Your posting is incomprehensible

Sun, 02/05/2012 - 17:23 | 2129305 AnAnonymous
AnAnonymous's picture

I have learned long ago to leave incoherence to US citizens.

World masters at it.

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