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Guest Post: The Banker Tax

Tyler Durden's picture


Submitted by Tim McCormick. Tim trades bonds in Texas

The Banker Tax

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Henry Ford

Is it ok with you if we starve poor people to bail out Citibank again? Will you stand by and do nothing while seniors struggle to afford heating oil just to keep Bank of America solvent? The fundamental structure of our monetary system creates a multifaceted regressive tax. Only when we come to view this complex confiscation of wealth as a tax, will we be able to summon the political force to defeat it.

Nobody likes to pay taxes, but some taxes are more treacherous than others. An open and simple tax can be opposed because it is vulnerable to "sound-bite politics". The worst taxes are hidden by the complexity of their indirectness. Hidden regressive taxes imposed without the representation of the payer are most unjust. We are now paying a banker tax or subsidy. It is hidden, it is regressive and we have little political control over it.

This banker tax is the hidden consequence of the many policies we employ to support an uneconomic level of credit. First, central banks try to manage our economies by fixing the price of credit and by printing money through quantitative easing. Second, this banker tax is made larger by the misguided policy of our governments subsidizing credit by bailing out private banks. Third is all of our tax policies creating an above market level of leverage. And fourth is all the various government agencies created to promote an extra-normal amount of credit.

Credit is just another resource for the production of goods or services. There is nothing magic about it. It is most efficiently allocated by the supply and demand pricing mechanism of a free market. We don't fix the price of equity capital, labor or raw materials because we know price fixing allocates resources inefficiently. Fixing a price to low creates shortages, and fixing a price to high creates a glut. Having a central bank impose an artificial price and quantity of credit is not in the public interest. It is only in the interest of undisciplined governments and their banking cohorts. The core of this hoax is our accepting the notion that the price and quantity of money must be managed by someone wiser than market forces.

This hidden banker tax is manifested in many ways. One of the worst ways we pay the tax is in a regressive form of inflation. Governments like the hidden tax of inflation because it softens the discipline of having to balance the books. Central bankers like inflation too. It creates the appearance of a false prosperity and allows them to prop up the collateral supporting the private banking system. When Bernanke says he wants to target a 2% inflation rate he is truly saying he wants to confiscate nearly 25% of your cash every decade. But as everyone  experiences their own unique inflation, it is the poor who suffer most.

When a central banker says he is trying to help make credit available, run the other way. Every benefit has a cost. There is no free lunch. We have been tricked into believing monetary policy is operated in the interest of the people. The reflationary propping up of these assets only serves bankers and overleveraged investors. Reflationism does nothing for the average guy. Inflation strikes first at the cost of food and energy. The billions of people world wide who spend a large proportion of their income on food and energy are literally starved and frozen to  death to support this global elite cabal.

When Bernanke argues that it is not in the Fed's mandate to consider global living standards it is a devious, oppressive lie. The Fed cannot righteously argue it has no global responsibility while abusing its power as issuer of the world reserve currency. When we export inflation, we export misery and death. When the world hates us, they are justified. While well meaning, caring liberal thought is captured and neutralized by ineffectual government programs, we live in denial of our systemic oppression.

 The effectiveness of reflationism on leveraged assets is diminished by their status as excess capacity. Centrally planned monetary policy is at best a blunt instrument, and in truth it is entirely counterproductive. And when a central banker uses the bugaboo of avoiding deflation as a threat, we should discredit this sham as a denial of our right to affordable living.

Central banks will argue they are managing credit to achieve maximum employment. To argue that fixing the price of money serves a full employment mandate is lunacy. Employment follows an optimal allocation of resources. Credit is just another resource. The market allocates resources to their most productive use. An economy driven by these efficient productive enterprises is one that employs the most people.

Contrary to a belief that easy money promotes growth, zero interest rate policy, quantitative easing and government sponsored credit promotion schemes are insidious regressive taxes. Zero interest rate policy is a hidden tax on savers and retirees. Millions of people worldwide are trying to live on fixedincomes, they are paying a tremendous bank bailout tax when they receive an artificially low investment rate. These savers are also forced to take on abnormal risk. Is it a fair policy to force risk averse savers into inappropriate risk as an economic tool? Why should this economic group bear the burden of the credit promoters?

Because reflationary affects occur disproportionately, the nature of central bank reflation is also regressive. Central bankers worldwide are spinning their wheels as fast as they can to prop up their bank master's assets. As these over-leveraged excess capacity assets are less responsive to reflationary efforts than scarce and essential food and energy, the resulting inflation is an immoral regressive tax. We must help people understand this outrage. Central bankers are starving the poor to perpetuate a tyrannical system! We don't elect Fed Governors, why do we let them impose this tax?

A regressive tax is a tax that takes from the poor and gives to the rich. It is the kind of situation that justifiably leads to revolution. Our present monetary system is a devious regressive tax. Our complex monetary system has devolved from a system of fair rules and rewards into a system rife with the hidden taxes of crony capitalism. It will be very difficult to change because the political mechanism of representation best used to correct injustice has been usurped by corporate interests. The super-PAC is the instrument of tyranny.

Campaign finance reform is our only hope of avoiding violent revolution. The most devastating usurpation of all is the near century long stealth corruption of our monetary system.

Because our political system is corrupted by corporate lobbyists, it leaves the people with few choices. Those who do not wish for a violent revolution are left with the one alternative of taking control of their own money. Money can be anything two parties in a transaction choose it to be. Precious metals is one good choice. Converting ones savings from Federal Reserve Notes into precious metals is not some kooky survivalist ploy. It is empowering a person to vote against the immoral monetary system. Hoarding food is not a kooky survivalist ploy, it is hedging against an immoral banker tax. We all have the moral obligation not to pay the banker tax. Refuse to deposit your funds into a money center bank. Support efforts to end the Federal Reserve System.


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Sun, 01/29/2012 - 23:10 | 2108492 illyia
illyia's picture


Sun, 01/29/2012 - 23:16 | 2108497 ACP
ACP's picture

Nah, 150% is more appropriate for people who take from society, as opposed to produce something for society.

And 700 lashes for Bernanke, who is a lying scumbag piece of garbage.

Sun, 01/29/2012 - 23:53 | 2108569 Oh regional Indian
Oh regional Indian's picture

A well written article, but as always, hacking away at branches or even leaves of the larger issue.

This as an example...


Campaign finance reform is our only hope of avoiding violent revolution. The most devastating usurpation of all is the near century long stealth corruption of our monetary system.

Really? Campaign finance reform? It's even going to happen? These no-solutions are useless to even discuss. No time now but to dig for the roots.



Mon, 01/30/2012 - 00:08 | 2108596 Vic Vinegar
Vic Vinegar's picture

You are exactly right OrI.  It was a well-written piece that had a terrible sentence which you called out.

Campaign finance reform?  Really?  Violent revolution?  Really?

Which will come first?  I say neither...LOL!

To be fair Tim trades bonds in Texas, so he's probably like a lot of us, vacillating between expecting the system to crash and hoping that it can be reformed from within.

Mon, 01/30/2012 - 01:05 | 2108644 Oh regional Indian
Oh regional Indian's picture

I think we can put this down to Sunday, Slow Day post from the H.

Cognitive dissonance ensues when Fight/Flight are both blocked off eh Vic? I think we are watching a world go into terminal cognitive disonance.


Mon, 01/30/2012 - 04:49 | 2108876 tired1
tired1's picture
A quick lesson on banking...

Sun, 01/29/2012 - 23:50 | 2108563 bullnutz
bullnutz's picture

The wicked witch of JP Morgue is gone!  Blythe Masters leaving for Deutsche Bank.



Sun, 01/29/2012 - 23:53 | 2108565 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Time to put on the slippers

Mon, 01/30/2012 - 00:23 | 2108615 Tyler Durden
Tyler Durden's picture

100% incorrect. Read below.

Mon, 01/30/2012 - 04:39 | 2108865 BlackVoid
BlackVoid's picture

That is not exactly "gone". She just moved to another arm of the squid.

Sun, 01/29/2012 - 23:11 | 2108493 Seize Mars
Seize Mars's picture

Amen, brother

Sun, 01/29/2012 - 23:12 | 2108496 Likstane
Likstane's picture

Wouldn't the bankers go out of busines if people stopped borrowing money? Why does anyone expect to make interest on a loan?  Park your money in AG and AU and pay off your loans.  Banks die.

Sun, 01/29/2012 - 23:34 | 2108525 adr
adr's picture

Banks used to need people to park money with them and take loans to be paid back with interest to stay in business. With the advent of the superbanks, they no longer need people. BAC, Citi, and the others get more money in 0% interest loans from the Fed than they ever got from common citizens. You and your money doesn't matter anymore, only fresh printed fiat. They don't even need to loan to you anymore becuase it's better to take the fresh loaned Fed notes and buy government debt that pays 3%. The bank can always pay back the loan by selling the bond and keep the profit for itself. Just imagine the wonderful game if you culd play with your friends. Eventually the size of the loan dosn't matter, only maximising your profit. he more you borrow the more you make. The more you borrow the more the government protecting your back can spend to do so. To the parties involved there is no way to lose. As long as everyone is playing the game, it all seems fine. Until a player eventually wants out.

Mon, 01/30/2012 - 03:50 | 2108849 Likstane
Likstane's picture

No loans=Citi, BAC die.  See below


Mon, 01/30/2012 - 00:10 | 2108601 The Monkey
The Monkey's picture

Nope. The banks can simply borrow short (from the Fed) and lend long (to the treasury). They profit from the spread. The way the Fed has things set-up, the banks can forever live without private sector lending.

In return, we get transaction fees.

Sun, 01/29/2012 - 23:13 | 2108498 JPM Hater001
JPM Hater001's picture

My daughters got 2 oz of silver from my mother-in-law this year.  I was so proud of her.  I took the checks from my mom and dad and convereted them into silver to my daughters protest.

Today I explained that they bought into silver at 30 and now its 34.  "but we gave you $100..."

"Yes, and now its worth $112.  You still want your fiat?"


"Good, now shut up and watch War Horse."

Sun, 01/29/2012 - 23:40 | 2108536 ihedgemyhedges
ihedgemyhedges's picture

How old are your daughters?  We have gold and silver too.

Sincerely, Dominique Strauss Kahn, Bill Clinton and Newt Ginrgich..............

Mon, 01/30/2012 - 01:05 | 2108677 JPM Hater001
JPM Hater001's picture

My daughters are 9 and 11.  Yes, War Horse is nasty in the WWI battle...I will not shy them from the truth-bad people did bad things.  War is ugly.  Avoid War.

Vote Ron Paul

PS...My 9 year old sent Ron Paul a letter...he sent a nice letter back and a constitution...

I'm so proud of her.

Sun, 01/29/2012 - 23:19 | 2108502 Kaiser Sousa
Kaiser Sousa's picture

ok, now im getting very encouraged by seeing this mindset put in writing...

i've been tellin ya'll mother fuckers for the longest...stop playin the bitch ass bankers game...

resisitance is not futile if undertakin in the right forms...this is the first step...dumping their worthless shit  paper for "REAL MONEY"...

the next step is busting caps n their monkey ass to let'em know....IT AIN'T HAPPENIN NO MORE!!!!!!!!



Sun, 01/29/2012 - 23:34 | 2108526 Likstane
Likstane's picture

I'm with you Kizer, why even play the game?  Anybody with a loan(including a house) has no right to complain about inflation, rigged markets, politicians, or the rest of the bullshit.  Cut off the bankers feedbag and they have nothing to work with.  The inflation game is gone and the the only way to finance government is to pay higher taxes directly.  There is a level of taxation the general populace will quit paying and start hanging the government theives.  I say the the sooner the better.  As far as busting caps goes, I would rather see these banker/politician/lawyer scum work for the people they have been ripping off.  If they don't pay, then bust caps.

Sun, 01/29/2012 - 23:48 | 2108555 Kaiser Sousa
Kaiser Sousa's picture

fair enough...but man, they gotta pay.....


Sun, 01/29/2012 - 23:54 | 2108571 zerotohero
zerotohero's picture

oooh gansta talk on ZH - what next.

Sun, 01/29/2012 - 23:18 | 2108503 prains
prains's picture

Campaign finance reform is our only hope of avoiding violent revolution. 


i thought you guys already did a campaign finance reform

Sun, 01/29/2012 - 23:41 | 2108538 rehypothecator
rehypothecator's picture

Campaign finance reform attempts to fix a symptom, not the problem. If corporate interests find it worth their while to spend hundreds of millions of dollars on campaigns, the solution isn't to (1) give the government even more power by (2) restricting some aspect of campaign financing, it is to remove the government interference in the markets that leads corporations to conclude it is worth so much money to try to influence. If government merely protected life, liberty, and property, then there would be no value in trying to get "their guy" elected, because "their guy" wouldn't be in a position to give special favors, enact captured regulations, or harm the competition, because those actions have nothing to do with protecting life, liberty, and property. In any case, every regulation has unintended consequences, and the outcome of the much-vaunted campaign finance reform is the formation of super-PACs, which are arguably worse than what came before them. There is no reason to think that *real* campaign finance reform won't create even worse monsters.

Sun, 01/29/2012 - 23:20 | 2108504 non_anon
non_anon's picture

ha ha, Sunday night, feeling no pain!

Sun, 01/29/2012 - 23:20 | 2108505 UP4Liberty
UP4Liberty's picture

Here's a great article from about one year ago..."Stiff The Fed".

Sun, 01/29/2012 - 23:20 | 2108506 Dermasolarapate...
Dermasolarapaterraphatrima's picture
Using inflation to erode the US public debt

Joshua Aizenman   Nancy P. Marion
18 December 2009

Sun, 01/29/2012 - 23:21 | 2108509 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

DXY up.  EUR/USD up.  JPY/USD up.  WTF? 

Fiat power?

Sun, 01/29/2012 - 23:43 | 2108542 slewie the pi-rat
slewie the pi-rat's picture

post-davos re-entry retro failure

Sun, 01/29/2012 - 23:51 | 2108564 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

That must be like when the Davos crowd tries to get laid without paying for sex.

Mon, 01/30/2012 - 00:12 | 2108605 AgShaman
AgShaman's picture

The parasite Bankers in Davos are too crusty and old to get laid without paying for it.

These shiksas would've gained entrance to the festivus for being rather "freakish"....but they haven't gotten past being poor...and a slavery byproduct of the bankstas.

When they meet a rich hedge fund manager or investment banker that buys them a "boob job"....then everything'll be alright.

Mon, 01/30/2012 - 00:29 | 2108630 slewie the pi-rat
slewie the pi-rat's picture

well, any port in a storm!

Mon, 01/30/2012 - 01:29 | 2108710 SilverIsKing
SilverIsKing's picture

So say the seamen!

Sun, 01/29/2012 - 23:25 | 2108514 adr
adr's picture

Central controls of any kind create inequality scewed to concentrating wealth and power in a few controlling hands. Central control of price through a uniform commodity exchange has proven to inflate the cost of raw materials far beyond what common demand should dictate. The stock market is the greatest force of central control and should be dismantled. Think about what would happen if we pushed for nat gas powered cars. Before the cars ever came to market, the price of natural gas would skyrocket as speculators would bid up contracts to get in on the coming "supply crunch". They would bet supply contraints would force the price higher, even if there is abundant supply. The seculators would kill the market for the car before it even launced, and send millions of people into poverty as home heating bills would go higher than most average mortgage bills. That did happen a few years ago. Then as the bets don't pan out, the mass exodus from the contracts causes a price collapse kiling real business. Again happening now. Instead of letting competition set a price, we let a central beurocracy do it for us. Maybe I could produce gas for less and wish to make a smaller profit in order to gain more customers. That used to happen. Now the compeition is destroyed to prevent harm to the big bloated players.

Mon, 01/30/2012 - 00:03 | 2108583 xela2200
xela2200's picture

The problem with your hypothesis is in the believe that government can "push" a technology or "invest" in it. The speculators are not to blame. Rather, it is the arrogance of a few in power who feel they know better. The market should determine what route to take. As oil becomes more expensive, entrepreneur risk their capital and that of their investors to produce whatever technology fits better. It is done gradually and speculators don't pile on that commodity since doing so would stop the business and negate the effort.

Imagine if 100 years ago government would have decided that electric cars should be used instead of the internal engine that finally won not only over electric but even over the steam engine. We are still trying to develop a battery for the electric car.

On your second thesis, government interference does have an effect on people. That always seems to be the problem. Your scenario of increased gas price is mild in comparison to, for instance, the famine cause by Mao which killed about 6 million. Again, I wouldn't blame speculators for an increase in the price of gas. I do feel the commodity markets are rigged with hypothication and few other bs tactics. How can it be that an owner and a lessee of gold can both hold tittle? By leasing multiple times you have an increase in the "supply" of gold? It is that kind of games that are skewing the markets. I can't hardly wait to see what happens when PAGE opens spot price set by single ownership.

Sun, 01/29/2012 - 23:28 | 2108516 Rubbish
Rubbish's picture

Gold/Silver are great. Land with water, trees and game is better.

Sun, 01/29/2012 - 23:45 | 2108548 slewie the pi-rat
slewie the pi-rat's picture

what time's the game start?

Mon, 01/30/2012 - 00:03 | 2108592 Rubbish
Rubbish's picture

At 62...Need to hang on 5 more years

Mon, 01/30/2012 - 00:32 | 2108637 slewie the pi-rat
slewie the pi-rat's picture

well, i hope you like mooseburgers and potatoes!

you have catfish;  we have catfood;  the homeless can have the cats

5 year plan, BiCheZ!

Sun, 01/29/2012 - 23:29 | 2108519 AC_Doctor
AC_Doctor's picture

I will gladly pay a noose tax to take care of the banker tax...

Sun, 01/29/2012 - 23:34 | 2108524 Gidas19
Gidas19's picture

Bullet tax

Sun, 01/29/2012 - 23:40 | 2108532 xela2200
xela2200's picture

"A regressive tax is a tax that takes from the poor and gives to the rich. It is the kind of situation that justifiably leads to revolution."

Does a regressive tax takes from the poor and give to the rich? No, it affects more the poor when it is charged. A flat tax or a sales tax is regressive, but I don't see it as unfair. In fact, I would argue that flat tax is fair and a sales tax encourages savings and investment. At the end, these "regressive" taxes provide incentive to produce more and wealth building. Why would it justify revolution? We have a convoluted tax system that taxes us as soon as the income is earned on an incremental percentage basis. The US has had this tax systems for a hundred years. Wealth has been destroyed and for the first time in my life revolution seems possible. We even need computers to figure out these taxes in a "fair" basis.

Sun, 01/29/2012 - 23:42 | 2108539 Kassandra
Kassandra's picture

I prefer to call it stocking the pantry..not hoarding food. In the 70's my Mom (a child of the Depression) had a basement storage area that we nicknamed "The Apocalypse Pantry". Between that and the freezer, we figured she could feed the entire neighborhood for five years. Learned a lot from her.

Mon, 01/30/2012 - 00:05 | 2108580 Kali
Kali's picture

Precisely.  In my childhood (60's), all houses had at least a pantry.  It was SOP to have extra on hand.  Most people could go at least a couple of weeks with what was just in the pantry.  Many people still had "storage rooms" in the basement if they had a house, or, sometimes root cellars. Some people could go for years.  I am crusty enough to remember a lot of men had smokehouses too.   People cooked from scratch and didn't eat out as much.  It was a big deal to go out to eat, a special treat,  you got dressed up and everything.  We weren't poor, that's just the way it was. No "convenience food" either.  I remember when TV dinners first came out.  That was a "treat" too. 

Mon, 01/30/2012 - 00:12 | 2108604 Caviar Emptor
Caviar Emptor's picture

Yup. Back when it was 'waste not, want not'. Waste became cool in the 80s. Like greed. 

Sun, 01/29/2012 - 23:43 | 2108544 SilverDoctors
SilverDoctors's picture

Speaking of Banksters....Blythe Masters is out as head of commodities at JP Morgan as of Monday.

Sun, 01/29/2012 - 23:57 | 2108575 Kaiser Sousa
Kaiser Sousa's picture

we should give her a ride from her office on her last day...

in a mother fuckin Hearst....that bitch!!!!

Mon, 01/30/2012 - 00:23 | 2108616 Calmyourself
Calmyourself's picture

Wrap her in a newspaper.. Doesn't seem very Kaiser Sousa like..  Unless you light it on fire, ahh gotcha.

Mon, 01/30/2012 - 00:02 | 2108591 Kali
Kali's picture

rats fleeing the ship!

Mon, 01/30/2012 - 00:22 | 2108600 slewie the pi-rat
slewie the pi-rat's picture

she ran a breast cancer campaign last fall while the crimex was about to crumble round her

blythe this, blythe that, she's the gal to put in charge

so, that's that

new commodity head:  wasn't here, then; ...i hear she works for the redCross now, but not positive;...yes! i know about the nite she got gang-banged @ zeroHedge!  not sure where they put the records;  try dick cheney's bunker, maybe...

Mon, 01/30/2012 - 00:22 | 2108614 Tyler Durden
Tyler Durden's picture

Wrong. Masters is merely replacing DB's Faissola as head of the GFMA:

From the FT:

Blythe Masters, the JPMorgan commodities boss who becomes the GFMA’s chairman, said it was a logical next step following the evolution of regional trade bodies.


The GFMA encompasses the Securities Industry and Financial Markets Association in the US, the Association of Financial Markets in Europe, and Asifma, their Asian sister organisation.


“In the past, there were fragmented trade associations reflecting particular regional issues, or issues in certain asset classes or within sub-parts of firms,” said Ms Masters.


“But now the regulatory agenda in particular is more global.”


Ms Masters, who shot to fame as her derivatives expertise at JPMorgan put her at the heart of the first wave of the global financial crisis, is a higher profile appointment than her opposite number at Deutsche Bank, Michele Faissola, whom she replaces, although Mr Faissola is now tipped as a potential successor to Anshu Jain as head of Deutsche’s investment bank.

Mon, 01/30/2012 - 00:27 | 2108624 slewie the pi-rat
slewie the pi-rat's picture


she's so hot @ theMorgue!  damn! what a woman!

Sun, 01/29/2012 - 23:44 | 2108547 Dorky
Dorky's picture

End one central bank, replace it with a new central bank and repeat the whole process again.

Sun, 01/29/2012 - 23:46 | 2108551 JR
JR's picture

How long must we, the people, remain sacrificial animals before we “support efforts to end the Federal Reserve System”?  This is a gold mine of nuggets, T.M. Thank you.

… And when a central banker uses the bugaboo of avoiding deflation as a threat, we should discredit this sham as a denial of our right to affordable living.

… Contrary to a belief that easy money promotes growth, zero interest rate policy, quantitative easing and government sponsored credit promotion schemes are insidious regressive taxes. Zero interest rate policy is a hidden tax on savers and retirees. Millions of people worldwide are trying to live on fixed incomes, they are paying a tremendous bank bailout tax when they receive an artificially low investment rate. These savers are also forced to take on abnormal risk. Is it a fair policy to force risk adverse savers into inappropriate risk as an economic tool? Why should this economic group bear the burden of the credit promoters?

… Reflationism does nothing for the average guy. Inflation strikes first at the cost of food and energy. The billions of people worldwide who spend a large proportion of their income on food and energy are literally starved and frozen to death to support this global elite cabal.

...  Because our political system is corrupted by corporate lobbyists, it leaves the people with few choices. Those who do not wish for a violent revolution are left with the one alternative of taking control of their own money.

"When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed.”
-- Ayn Rand
(1905-1982) Author
Source: Atlas Shrugged, Francisco's "Money Speech"

Mon, 01/30/2012 - 00:19 | 2108613 TimmyM
TimmyM's picture

Thanks JR, I always look for your posts.

Mon, 01/30/2012 - 03:42 | 2108843 JOYFUL
JOYFUL's picture

The words you quote are those of an authoritarian cult leader every bit as dangerous and manipulative as an L Ron Hubbard. They are as misplaced on ZH as anything Nouriel or Krugman might posit from the depths of the ZOG-controlled hive mind, as the below will illustrate concisely:

"Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to become the means by which men deal with one another, then men become tools of other men. Blood, whips, guns—or dollars. Take your choice—there is no other." Ayn Rand Atlas Shrugged

It's long overdue to deconstruct this Alisa Zinov'yevna Rosenbaum, a. k. a. Ayn Rand, the Russian transplant tasked with dismembering the American imagination.  Murray Rothbard did a pretty good job of it here - ...darest one summons the courage to see another iconic figure of the dissimulationists shatter and fall!

Mon, 01/30/2012 - 05:15 | 2108885 OldPhart
OldPhart's picture

When your money is independent of other men, of other government, and is totally dependent upon the real free market, then a free market purchase has an actual free market value.  Money, at that point, represents the actual value an individual places on a good offered for exchange.

At present, money represents expectations; and false expectations, at best, of what a good is worth.  One could buy a home for $100k today witht the expectation that it will be worth $100k next year, but the reality is that the home will be worth $50k next year.

Tossing out the paradigm of FED money, the $100k that would have invested in a home today, instead invested in $100/k of gold/silver would have a substatial real, as well as nominal, increase in value. 

The FED dollar is dead, all that remains is a funeral with everyone eventually kicking dust over Washington. 

We're so fucked monetarily that we already feel ass-raped even though the crime hasn't been announced.  Our reserve currency status is fuckin' GONE. Our Petrodollar status is GONE.  Our national economy is a world-wide pollack joke.  (How many american dolars equals a gallon of oil?  Infinity, unless they park a couple of aircraft carriers off your coast.)

This shit is serious for all of you American readers.  It's doubly serious for all those non-american readers who have any hint of oil in their natural resouces according the the CIA Factbook.

Our government WILL fucking bomb your asses and we have absolutely no say in it. 

Nor will you.

I can only hope that those that are bombed recognize that we, as a people, are nowhere as evil as the government imposed on us...because pay-back will be a shit-living-hell.  We don't want to see Iran implicated in a false-flag attack on some moth-balled ship.  But we will, and everyone, will pay for it.

Our governments have become independent entities operating on their own agendas.  Real, natual people of the world have to realized this fact and unite against all government as they exist in the current world.

I believe that the US had a supreme dictate:  That all people are created in their Gods' image, with the right to life, liberty and the pursuit of happiness.  More importantly:  That whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it, and institute new government, laying in powers in such form as to them shall seem most likely to enhance their saftey and happiness*.

*from memory, Declaration of Indepence

Mon, 01/30/2012 - 08:35 | 2109027 Waterfallsparkles
Waterfallsparkles's picture

The difference between Real Estate and Gold and Silver is that you can live in a House or Rent it and get an income.  You can also use the land to feed yourself with a garden or farming.  If your land has woods you can cut the trees to heat your Home.

Gold and Silver is a good hedge againist inflation but the only return you can get from it is the appreciation in value.  It will provide no return on your principal, like with Real Estate which can provide shelter or an income from renting.

Real Estate is also limited, you cannot make any more land.

I understand why people Hoard Gold and Silver.  It is because it is relatively easy to aquire and hold.  Where Real Estate requires a great deal of Money to aquire.

Mon, 01/30/2012 - 13:03 | 2109387 AE911Truth
AE911Truth's picture

"it is the right of the people to alter or abolish it, and institute new government"

Since we the people are the sovereign of our country, it is our duty and obligation to alter or abolish unfit governance. It is truly up to us. As for how . . .

Standing in a crowd in the dead of winter holding an “End Government Corruption” or "End the Fed" sign is not going to work. OWS, listen up.

The heart of the problem is large corporate interests, including the Federal Reserve System, which have corrupted our governments and stolen our wealth.

Here is a way to end the Fed’s theft of our wealth and corruption of our government. Everybody everywhere, stop saving Dollars (or any paper currency) to the greatest extent possible.

Convert your savings to physical Silver and Gold. This will eliminate the Fed’s ability to steal your wealth and force government to reduce spending on the Military Industrial Complex, and reduce their corrupting influence.

Secondly, to the extent corporate interests influence government to your detriment, use your economic power as a customer to reign in unwanted corporate influence. Do not buy products from corporations which act against your interests.

These actions will prevent corporations including the Federal Reserve from corrupting our governments and from stealing our wealth, as they have done globally for near 100 years.

The creation out of thin air of money as debt with interest owed is a method of theft. You can end this theft by holding your savings in Gold.

Please study FOFOA at

Mon, 01/30/2012 - 09:25 | 2109035 falak pema
falak pema's picture

Ayn Rand is a mythical figure for the American idealistic right, with a Freudian twist to her. We all would love to seduce the unseducable icon. Aphrodite is too easy, too obvious; Pallas Athena remains a more arid hill to climb; for that reason excites the idealist. Vestal Virgins are always the "ones that got away", not enticing sirens like Aphrodite's daughters.

I think Atlas shrugged and its over simplistic and biaised diatribe against ALL statist intervention and outright worship of the green back; something that must irritate by its obfuscation a spirtualist like yourself who hates the merchants of the Temple; do not show the way to mankind's salvation; if such a thing is worth defining and defending. 

As a lover of ethics, of adventure, of irrepressible urge to endeavour, I adhere to defending secular man's destiny and spritual man's intuitivity like Don Quichote did. 

Mon, 01/30/2012 - 14:47 | 2110355 JOYFUL
JOYFUL's picture

Ah, Falak Bey! Good to see us once again going into the lines to tip lances!

Were I the "spiritualist" such as you impute me to be(an honest enough mistake, I grant yu...yet mistake no less!) I might find greater things to take issue with than the  diatribe against ALL statist intervention and outright worship of the green back: for instance, the imposition of a personalised [im]morality of selfishness and greed over top of the state's usurpation of the natural role of the individual as succourant of one's fellow man!...the impulse to charity not only removed, but mocked and villified by the satanic voices of the moneychangers!


since I occupy that comfortable ground which accedes to the best of both the secular and spiritual dimensions, I can only smile benevolently in appreciation of your pertinent witticisms bout the lure of the unobtainable objectivist, and join you in irrepressible good humour in appreciation of our common iconic figure, El Quijote Bueno.

Mon, 01/30/2012 - 10:55 | 2109484 Non Passaran
Non Passaran's picture

Can you furnish a proof that people were forced into this cult? Or was participation voluntary? It seems the Fed doesn't offer the choice. I hope they become a cult.

By the way, on the page you linked there are Amazon ads for Rand's books. Rockwell apparently doesn't miss any opportunity to earn an honest buck I see.

Mon, 01/30/2012 - 14:26 | 2110298 JOYFUL
JOYFUL's picture

err, would you be speakin to me?  I don't know, nor care to take any responsibility for what you see when you open a link, but having just checked, I once again see an article written by Rothbard, with a fairly incisive dissection of a deceased author's self-deceptions...minus any book ads...I guess we all do indeed see what we wish to see!?!?

As for the rest of your rhetorical imputations, who said what about whatever?  Maybe I'll should just recycle the utube clip of Roland Kirk&band doing "volunteered slavery" live in Italy. It might be better for all of us>!>/// ¿que te pensas?

Sun, 01/29/2012 - 23:48 | 2108556 Old Poor Richard
Old Poor Richard's picture

Ron Paul gets it! 

Obviously Willard Mittens and Barack Obama get it too--that's why they're Goldman's Siamese Twin candidates, joined at the wallet. 

I'll bet it's this kind of rant here that is infuriating the establishment, the way he gets to say these things on national television with no one talking over him, interrupting him or contradicting him.

Starting at 8:22 in the following:

But I do want to address this subject about taxing the rich. That is not a solution. But I understand and really empathize with the people who talk about the 99 percent and the 1 percent.

Because there's a characteristic about what happens when you destroy a currency. There is a transfer of wealth from the middle class to the wealthy. And this has been going on for 40 years. So the middle class is shrinking. They are getting poorer and they're losing their jobs and they're losing their houses. But Wall Street isn't getting poorer. And they are the ones who are getting the bailout.

So we have to address the bailout and the system that favors a certain group over another group. If you don't have sound money and if you have a welfare state, no matter whether the welfare state is designed to help the poor, you know, the welfare system helps the wealthy.

And there has been this transfer of wealth. So, if we could stop all of these transfers to the wealthy class, but the solution isn't to tax the wealthy. If you give an honest product and customers buy that product, you deserve to keep that money and earn that money. But there's a big difference between those who earn money and those who rip us off through the government and the monetary system.


--Congressman Ron Paul, 1/26/2012 GOP Debate



Mon, 01/30/2012 - 00:24 | 2108618 CynicLaureate
CynicLaureate's picture

I love Ron Paul.

He'd make a great president.

But I'd love a lot of things I'll never have.


I am afraid that there are already more people who depend on the government than there are people who earn money honestly.


Mon, 01/30/2012 - 16:36 | 2110741 Turgid_Member
Turgid_Member's picture

I am afraid that there are already more people who depend on the government than there are people who earn money honestly.

You most accurately described a typical government worker
with the exception of a few clerks in the 'recorder of deeds'
and some grunts in waterworks and sewerworks departments.
Everyone else's work consists of creating or shuffling around
some kind of paper of absolute zero value at best and way
below zero, being the norm.

Mon, 01/30/2012 - 00:01 | 2108586 csmith
csmith's picture

This is genius. He lays it all out in simple terms. Brilliant.

Mon, 01/30/2012 - 00:02 | 2108589 zerotohero
zerotohero's picture

Sundays ya gotta love em - if we on ZH have let's say an average of 50 to 20 years to LIVE - what are we living for? Our children and their children? This game that we play daily ie. watching the markets, Europe, Asia etc. is somewhat shallow and per se a hobby in the scheme of things. I think we could all take a note from ORI and spend a little bit of our time in "deeper waters" for a more reflective time on what matters because when then end is nigh it would be good to be at peace.


Just sayin' BITCHEZ

Mon, 01/30/2012 - 01:09 | 2108684 Rubbish
Rubbish's picture

These sites are actually quite valuable because the secret is to not follow the pack to survive or succeed. It's called being ahead of the curve not by days but a decade. Like registering independent 40 yrs. ago when it was out, hoarding gold/silver @ 300/3 when equities were blasting off, deleveraging in the early 2000's and getting self sufficient now or at least preparing for it. Thinking outside the box may be a cliche....but

A tree takes a long time to bear fruit from planting, peace can come in an instant.

Mon, 01/30/2012 - 00:14 | 2108595 Caviar Emptor
Caviar Emptor's picture


(Reuters) - China will make Shanghai the global centre of yuan trading, clearing and pricing by 2015, according to a specific state plan laying out the city's future as an international financial centre.

The detailed plan, published jointly by the country's economic planning agency and the Shanghai government, shows the scale of China's ambition in creating its own version of New York, London or Hong Kong



Dawning of "The Sino-sphere". Anglosphere is sooo 2008

Mon, 01/30/2012 - 07:38 | 2108975 falak pema
falak pema's picture

Eye on the ball, pax americana morphs from Atlanto-centric to Pacifico-centric. Writing on the wall. More and more.

But China will never accept US hegemony, further down the road Chindia and Brazil will show the world : they are not US surrogates, they were never conquered like Europe and Japan and to a certain extent the ex-USSR zone. 

Now we know why it is important for USA to have all those bases around Afghanistan : Oil policing and Russian ex-ally schooling go hand in hand... and Afghanistan also is future bonanza land for its mining wealth...Its all about RM, and seen from DC the theme stays "pity there are so many sheeple out there, difficult to exercise manifest destiny against them as we did against Geronimo."

Well thats what being an empire is, until it burns...

Mon, 01/30/2012 - 00:17 | 2108599 akak
akak's picture

The other banker tax that the vast majority of people are probably unaware that they pay, and that the average sheep indirectly makes ALL of us pay, is the 2 or 3% skim that the TBTF banks collect on EVERY credit card purchase.  I wonder how many people, even here, think about how they are feeding the monster banks by casually and continuously using credit cards for every damned little purchase (or even for the larger ones).  Each time you whip out the plastic, you are saying to Citi and Bank of America and Wells Fargo and all the other behemoth banks: "Here it is, come steal from me!".


Mon, 01/30/2012 - 12:14 | 2109755 GlobalCtzn
GlobalCtzn's picture

Spot on Akak!

I could not agree more, both as a consumer and as a retail merchant. I spent half of 2010 and half of 2011 liquidating my retail furniture, art, home decor business. The hand-written (on cardboard) sign on my checkout counter read "Cash, Check, or GOLD, please....thanks."

Never cost me a sizable sale. Some customers would ask me "why", and I would reply something along the lines of "I am unwilling to contribute any part of my business to benefitting the criminal banks". It led to both blank stares and also some very interesting conversations.

Mon, 01/30/2012 - 00:13 | 2108606 Let The Wurlitz...
Let The Wurlitzer Play's picture

The only campaign finance reform that will work is term limits for congress.  Good look trying to get the congressional idiots to agree with that.  In simple terms were F@#ked.


Mon, 01/30/2012 - 00:24 | 2108620 xela2200
xela2200's picture

Give the president a single 6 year term without possibility for re-election.

Mon, 01/30/2012 - 11:01 | 2109500 Non Passaran
Non Passaran's picture

They have approximately that in France. And they have Sarko.

Tue, 01/31/2012 - 01:53 | 2111972 xela2200
xela2200's picture

Sarko 6 years or Bush for 8 --> tough choice.

The point is that these people spend the first term worrying about re-election, so really we are getting the last four.

Mon, 01/30/2012 - 00:23 | 2108617 Caviar Emptor
Caviar Emptor's picture

WSJ: Female Support Slips for Gingrich-

Somehow, this headline didn't come out right.....

Mon, 01/30/2012 - 00:28 | 2108627 akak
akak's picture

And just when Newt finally got those huge moobs of his under control.

Mon, 01/30/2012 - 00:30 | 2108628 CynicLaureate
CynicLaureate's picture

Gingrich in a slip?  That's worse than Tip O'Neill in a dress! (From

Mon, 01/30/2012 - 00:29 | 2108631 ebworthen
ebworthen's picture


Mon, 01/30/2012 - 00:51 | 2108664 KickIce
KickIce's picture

Might as well include a union tax on autos and education as well.  Both have been rewarded for inefficiencies and for that we pay out the wazoo.

Mon, 01/30/2012 - 01:07 | 2108679 Georgesblog
Georgesblog's picture

It comes up, over and over again. We have government of the Corporations, by the Attorneys and for the Banks. It isn't just looking that way. That's what those 1.5 million + statutes in U. S. Code say.

Mon, 01/30/2012 - 01:07 | 2108680 q99x2
q99x2's picture

'Campaign finance reform is our only hope'

Try telling that to the guy at your local FEMA rendition center.

Mon, 01/30/2012 - 01:28 | 2108708 RoadKill
RoadKill's picture

This site is losing it's reputation for thoughtful financial analytics and becoming more of a conspiratorialist hack website.

Their are a number of bankers, hedge fund managers and independent investors that come here for the analysis and alternative news. Personally I've done quite well being on the opposite side of the trade from people that listen only to the MSM, in part do the info on this site.

But I'm getting sick of the hate filled opinion pieces. I was an Ibanker for 6 years, a hedge fund analyst for 6 years and am now trading and investing for myself. While I agree with ALL opposition to ALL bailouts, I also think people need to give up on this conspiratorialst bankster BS. Their are hundreds of thousands of people employed worldwide in financial services. Net / Net they have worked VERY hard to help the world create immense amounts of wealth.

Bailouts suck. But why not pressure politicians to cut the sector loose from the government tit rather then disparage as Satans spawn the 99% that never needed, asked for or wanted a bailout?

And encouraging people to simply opt out of the system does them no favors. If you take control of your own finances, spend less then you make and invest it skillfully and thoughtfully, you can be one of the 1% rather then in a drum circle complaining about us!!!

Mon, 01/30/2012 - 01:55 | 2108748 Vic Vinegar
Vic Vinegar's picture

You were an i-banker?  I had you pegged for an English professor based on your comment.  My bad.

Anyhow, why do you comment if you don't like what's written here?

Mon, 01/30/2012 - 02:08 | 2108757 TimmyM
TimmyM's picture

The system is unsustainable. It will fail you too.
And tell me it's not depressing to try and trade fixed prices.

Mon, 01/30/2012 - 02:13 | 2108771 akak
akak's picture

I thought it was fairly clear that when the vast majority of us here on ZeroHedge, and elsewhere, rightly condemn the grossly sociopathic class of banksters, we are NOT talking about the manager of the local branch bank, or the loan officer at some neighborhood credit union.  I cannot speak for others, of course, but when I speak about "the banksters", I am implicitly thinking of people like Bernanke, Dimon, Trichet, Blankstein, and that ilk, most certainly NOT about people such as yourself, Roadkill.

Mon, 01/30/2012 - 05:27 | 2108896 Cast Iron Skillet
Cast Iron Skillet's picture

aye, aye, akak!

Mon, 01/30/2012 - 07:58 | 2108992 Ghordius
Ghordius's picture

aye, aye, too, akak! three "tribes" of bankers:

1) global magnificent banker doing God's work, like Blankfein and Blythe, in their holy cartel of multinational bankcorps

2) wealth managers, retail bankers, operations, FX, and, and, and... (best kept in small banks, though)

3) the handmaidens of the sovereign interests, i.e. the central bankers (in some cases handmaidens of the bankcorps)


I am somewhat supportive of 3) because I see them as the ants cleaning up after the politicians, instead of the originators of the mess. I still can't imagine a central banker applying the evil voodoo if the politicians would not have messed up first. Though Mr. Greenspan is a bit of an outlier here...

Mon, 01/30/2012 - 09:37 | 2109204 Let The Wurlitz...
Let The Wurlitzer Play's picture

I disgree with three.  In my opinion Bernanke is doing what is necessary to save his job.  If Obama doesn't get re-elected he is unemployed.  He is a psychopath just like the rest of them and wants his power.  If he was truly honest he would stop what I call "political class wellfare" and make congress fix the problems instead of masking the symptoms and in turn making the situation worse.


Mon, 01/30/2012 - 07:42 | 2108980 falak pema
falak pema's picture

ethics is such a bitch, it knows no nation state construct and no preferred race, nor forever land of the brave...humility is often a good teacher of how to survive when hubris takes a nose dive. No use getting bitter stay lucid and sober.

Mon, 01/30/2012 - 09:37 | 2109203 Archduke
Archduke's picture

+1. I've also worked capital markets for the last 12 years and I have faith

in the market economy.  But you have to agree that fraud, corruption, bailouts,

and lack of enforcement are detrimental to efficiency and to society at large.


most of the analysts, quants, it developers, and accountants are just normal

middle class people doing their job.  but if nobody prosecutes the bad apples

and there is no redress, we're heading to moral hazard and systemic looting.


I think, at minimum, OWS demands prosecution for the frauds committed.

let's start with MF global and those with its stolen monies (GS, JPM).


I also think trading  will do just fine despite a tax, and it may actually improve

things, especially as an insurance angainst blowups in the OTC markets.

We accept FDIC insurance payed by our taxes and bank savings do just fine.

So why not an OTC transaction tax?  it will also reduce naked shorts, HFT...




Mon, 01/30/2012 - 01:58 | 2108718 BlackholeDivestment
BlackholeDivestment's picture

...can anyone here justify any gains from theft?

...can any banker or politician deny the system is robbing itself? 

N O, NO! 

2012, In the criminal case of:  We The People   VS   Government(s) & The Vampire Squid(s) 


                                      THERE IS NO POSSIBLITY FOR COURT






                                  ORDER WILL BE RESTORED TO THE MARKET FIRST 


                                         THE STATES WILL GOVERN THEMSELVES



                                          THERE WILL BE A COMMERCE TAX ONLY 

                                                        ...have a nice day. 


P.S. Failute to comply; RIGHT NOW, in an orderly and peaceful fashion, will resullt in mass destruction and death you will not be able to stop ...because, ...wait for it    ....wait for it are the creator of the murder suicide, yuh dumb evil bastard(s). 

Lol. Surpise!




Mon, 01/30/2012 - 02:08 | 2108769 vincent
vincent's picture

It's a small minority who want to bash all bankers.

We'll settle for destroying the 3 institutions who control two thirds of the system... Deal?

Mon, 01/30/2012 - 02:35 | 2108803 MayerRothschild
MayerRothschild's picture

First Chavez demands his gold back and now...

he might nationalize a few banks

Mon, 01/30/2012 - 08:30 | 2109020 DanDaley
DanDaley's picture

"Hoarding food is not a kooky survivalist ploy..."

It's not hoarding if it (food, silver, gold, etc.) is available to everyone, it's storing or saving, but pretty soon it won't be available...none of it.

Mon, 01/30/2012 - 09:33 | 2109188 gookempucky
gookempucky's picture

If the Tyler Durden would allow me to plug Ron Paul Action Group

3619 Broadway 2nd floor Kansas City 7-9pm every monday night

If not at least I tried.

Its time to take our country back !!!!


Mon, 01/30/2012 - 09:36 | 2109194 RiverRoad
RiverRoad's picture

With PMs and short term tax exempts who needs bankers?????  Screw the Fed.

Mon, 01/30/2012 - 10:45 | 2109424 Hedgetard55
Hedgetard55's picture

"Is it a fair policy to force risk averse savers into inappropriate risk as an economic tool?"


     It is immoral, it is criminal, and ultimately destructive. Bernanke is a criminal who deserves to spend the rest of his natural life in jail, then an eternity in Hell (if there were such a place).

Mon, 01/30/2012 - 19:13 | 2111204 blindman
blindman's picture
David Lindley - Brother John
and the darkest hour
is before the dawn.
for john

Do NOT follow this link or you will be banned from the site!