Mike Krieger Explains Why It's The Leadership, Stupid

Tyler Durden's picture

From Mike Krieger of KAM Lp

It's The Leadership Stupid

It’s the first time we have power with people that don’t have courage.  The people on top have power without courage.  You cannot find any other society like it.  Take the knights.  The knights were people who of course, their trade was risking their lives.  In theory, The President of the United States was supposed to be first in battle.  Not someone pushing a button.  The only way you can have a safe society is by moving these types of people (that risk nothing personally and take all the upside) out of their positions.  Making them more accountable.

- Nassim Taleb (in this fantastic interview )

From our perspective, this is a critical idea. As we have said for several years, we do not see Iran as close to having a nuclear weapon. They may be close to being able to test a crude nuclear device under controlled circumstances (and we don't know this either), but the development of a deliverable nuclear weapon poses major challenges for Iran.

Moreover, while the Iranians may aspire to a deterrent via a viable nuclear weapons capability, we do not believe the Iranians see nuclear weapons as militarily useful. A few such weapons could devastate Israel, but Iran would be annihilated in retaliation. While the Iranians talk aggressively, historically they have acted cautiously. For Iran, nuclear weapons are far more valuable as a notional threat and bargaining chip than as something to be deployed. Indeed, the ideal situation is not quite having a weapon, and therefore not forcing anyone to act against them, but seeming close enough to be taken seriously. They certainly have achieved that.

- Stratfor  “Considering a U.S.-Iranian Deal,” January 24th, 2012

I’ve Always Loved History

I’ve always loved history.  Even all the way back to grade school I remember it being my favorite subject.  Very early on I noticed certain patterns in history and I wondered why they occurred.  When I was first exposed to European history, I recall being absolutely floored by how certain countries could become so rich and powerful and then subsequently collapse so stunningly and rapidly.  The one that really boggled my mind was Spain - the homeland of my maternal grandfather who I never met.  Here was a country that conquered and viciously looted essentially all South America other than Brazil (thanks to the pope being magnanimous enough to grant that part of the world to Portugal in the Treaty of Tordesillas), Mexico, Central America and parts of the United States.  The gold and especially silver that was taken back to Spain was the stuff of legend, yet almost at the same time they had defeated the native peoples overseas their kingdom at home was crumbling.  Not to bore anyone with too much history, but by the mid 1500s the Spanish had essentially conquered the Aztecs (Mexico) and the Incas (Peru).  At the time, the Aztec capital, Tenochtitlan was estimated to be larger than any city in Europe.  Despite these tremendous “successes” and the riches that came with them, the battle of Rocroi in Northern France in 1643 less than one hundred years later marked the end of Spanish dominance in Europe.  What is so fascinating to me is that while the conquistadors were out raping and pillaging halfway around the world the domestic economy was experiencing economic crisis.  There were episodes of major currency debasements in the homeland as the crown was forced to fight wars on their borders as well as fund the excursions abroad.  It is important to note that the collapse came pretty quickly as it was only in 1627 when things were still looking pretty good for the empire that The Count-Duke Olivares famously stated: “God is Spanish and fights for our nation these days.”  Does this story sound familiar?

It’s the Leadership Stupid

The reason I put the Taleb quote at the top is because it is such a phenomenal interview and I request that every one reading this takes the time to listen to it this weekend even though it is very long.  In the part just prior to the quote I used he talks about how society is now separated into three categories.  The category that he has the most disdain for are those with “no skin in the game.”  These are the self-proclaimed “elite” of the Western world today.  This group is varied but generally consists of politicians, Wall Street executives, the CEOs of large state-connected and protected multi-national corporations and mainstream media “journalists” or as Gerald Celente likes to call them “presstitutes.”  As Taleb notes, these “elites” have no honor or courage.  They are groveling little manipulator parasites.  They have created a world in which they are able to reap all of the upside and have no downside.  When things go against them they just bail themselves out on the back of the rest of society. 

Then of course there is the group with “skin in the game.”  This group consists of the unconnected wealthy, the middle classes and the poor.  This is why class warfare is such an absurd thing.  OWS is not about class warfare.  It is about the battle between those with skin in the game versus the “elite” that rig the game and call it capitalism so they can later demonize it and consolidate power further.  It is about the 99.9% of humanity against the technocrat and crony capitalist alliance.  It is free humanity against a fascist system that is not capitalism or free market in any way shape or form.  Yes, I think OWS needs to make this message more clear, but it’s not about money.  It is about excessive power.  Yes money in large amounts does equal power but it is the system itself that is the cancer.  If we didn’t have a money system where money is counterfeit and can be created at will with a computer keystroke by the Ben Bernank payoffs and system rigging would be considerably more difficult for these clowns (although of course it would still happen).  

Taleb then describes the final group.  Those that “don’t have upside.” These people are there to “take the downside of others.”  The best example of this class is the military of course.  They risk it all for themselves and their family for essentially no reward except the satisfaction that they are doing good.  Here is where I think things get interesting.  What happens when the military realizes they aren’t fighting for the good of their nation?  What happens when they realize the wars they are risking their lives for are merely to help those with “all the upside and no downside,” ie the elite to consolidate power for themselves?  What happens when the military realizes their sacrifice is undermining the very Constitution they swore to uphold?  I will tell you what happens.  They support Ron Paul; which is exactly what has happened.   

The Iran “Card” and the Idiocy of Western Leadership  

If I was the leader of Russia or China right now I would be salivating and on the floor laughing.  I would be in utter disbelief of how corrupt and immoral and insane and incredibly stupid the technocratic/Wall Street leadership of the Western world is.  I mean they don’t even have to do anything.  All they have to do is sit back and watch us blow our societies up with our actions.  It’s truly remarkable. 

Let’s start with Iran.  Please go back to the top and reread the quote from the Stratfor piece.  Stratfor, for those who aren’t aware is one of the most respected geopolitical/intelligence research organizations of the planet.  So this isn’t just me spouting.  Isn’t it interesting how this organization makes it clear in no uncertain terms that Iran is nowhere near a nuclear weapon, yet all the presstitutes on television don’t ever even ask this question.  It is always posed as “well we know they are close so should we attack or not.”  This is how propaganda operates.  It doesn’t even allow you to start with an honest question, rather it starts off with a lie.  If you start off on a question of war with a assumption that is a patent lie how do you think things are going to turn out?  This is the exact same spectacle that we saw in the run up to the war in Iraq and their “weapons of mass destruction” that of course never existed.

All of this just supports my view that Iran is about two things.  First, Iran is not safely a glorified member of the “elite” Western puppet states in the Middle East.  This is a huge problem considering their considerable oil production and the threat that they could choose to not sell that oil in dollars.  Secondly, TPTB understand that the “natives” back home are getting restless and they know that historically speaking nothing works better in a crisis than a big war to get the population to be submissive and do as told.  The interesting thing here is that the U.S. citizenry does not want another war and neither does the rank and file military.  TPTB know this.  As a result, I think all of us need to be on the lookout for an attempted false flag attack that will be blamed on Iran.  This could be a “cyber-attack” (that would be convenient since they could then use it to also censor the web), or otherwise, but in the end this is something to be very cognizant of.  If you are following what is going on you realize that Iran has absolutely ZERO incentive to launch any attack on the U.S.  This would guarantee a response and regime change.  They are not that stupid.

The other interesting thing about the Iran situation is how completely incompetent and idiotic Western leadership actually is.  I am the farthest person from someone that wants to keep the status quo in place, but if I was one of these Western “elites” I can tell you one thing; I wouldn’t be making any of the foolish moves they are making.  The biggest blunder I have seen as of late is the U.S. and Europeans launching a new round of sanctions against Iran, specifically targeting their banking system.  The great irony in all of this is that this action is merely accelerating a move away from the dollar as the currency of choice for many in the region.  The only thing I have seen since these new sanction have been put in place are many more currency swaps between China and other countries.  Most notably recently with Japan and the UAE.  Even South Korea the other day mentioned buying Chinese debt and further diversifying reserves.  Then of course there are deals to sell Iranian oil to India using both rupees and gold.  In a world of tight resources and centrally planned economies whose leaders need to keep their sheep fed, warm and on the highways, Iran’s oil will be sold.  It’s actually comedic to see Europe taking the “offense” by saying they won’t accept Iranian oil.  Europe of all places?  Give me a break.  Yeah, threaten one of the biggest oil exporters in the world as you plunge into a sea of poverty, social chaos and bankruptcy.  Do everything in your power to throw them into the open arms of Russia and China.  You wonder how an empire can decline so fast?  It’s the Leadership Stupid.  History will remember the current crop of leaders in the Western world as the biggest collective or corrupt fools ever assembled on planet earth.

Ron Paul in Denver  

This Tuesday I had the pleasure to attend Ron Paul’s rally in Denver.  I had never been to a political rally before in my life and it was an awesome experience.  Contrary to Joe Scarborough whose anonymous source claims such rallies are filled with anti-Semites I went with another Jew and all I saw were intelligent, open minded, informed citizens coming together for the only principled candidate for the Presidency.  It took place in a large hotel ballroom and was standing room only.  About half an hour before it was to start I went across the hall to the shop to buy a bottle of water and the woman working behind the counter marveled to me about the amount of people attending saying she had “never seen anything like it.”  She also said she was closing her doors at noon to go herself.  Whether or not Ron Paul wins the office is actually besides the point.  He has already won.  As Victor Hugo said “no army can defeat an idea whose time has come.”  Well the time is now and the idea is liberty.

The Dave Janda Radio Show     

This past Sunday I had the pleasure to be on Dave Janda’s “Operation Freedom” radio show, which is broadcast on WAAM Talk 1600 Radio out of Ann Arbor Michigan.  Dave is a phenomenal guy and vigilant fighter for liberty.  He takes time out of his busy schedule as an Orthopedic Surgeon to do this show every Sunday.  Previous guests have included, Bill Murphy, Jim Rickards, Jim Rogers, Gerald Celente, John Perkins, James Turk and many others.  Here is the link to my segment.  I hope you enjoy.   http://www.davejanda.com/audio/MichaelKreiger012912.mp3

Peace and wisdom,

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LynRobison's picture

From what I can see, the decline of the western monetary system is not happening by accident. It is being orchestrated by the power elite who want to lord over the western world (and as much of the rest of the world as they can). Step 1, they get everyone deeply in debt denominated in fiat currency. Step 2, they buy all of that debt. Step 3, they destroy the value of fiat currencies, thus destroying everyone's ability to pay their debts. Step 4, they seize all the assets that were used as collateral for that debt. Step 5, they launch a new global currency, which people can earn only if they go to work for certain large corporations that are owned/controlled by the power elite. At that point they will own all of the assets, all of the means of production, all of the currency, and everyone's ability to pay their obligations or make a living. Goodbye freedom and liberty. Hello feudalism. 


Buy silver, buy guns, get out of debt, move someplace safe and out of the way.

i-dog's picture

That is exactly the plan ... and it has been going swimmingly for them since at least the Clinton administration, or earlier!

"Assets" (ie. debts owed by the peasants) on bank balance sheets are now at astronomical levels ... without them having outlaid a single cent to "buy" those debts.

While everyone has been watching the magician's left hand (the politicians and pundits), the magician has been using his right hand (the banks) to stuff his pockets with IOUs from the entire brain-dead audience!!!

It will be interesting to see the result when every "NoDoc" mortgagor...and "federal student loan" university graduate...and "kash for klunkers" new-car owner...and "buy now, pay later" iCrap owner...is presented with a "pay up in full right now, in accordance with Clause xyz, or give us the collateral and make appropriate arrangements with your local FEMA workkamp to work off the shortfall" demand!

greyghost's picture

oh you mean like the great repossession....oh my mistake the great depression

Gene Parmesan's picture

The government is the problem, and the problem isn't going to be solved anytime soon because of just how far out of control generations of voters have let things get.

LawsofPhysics's picture

I'd say it is a bit more complicated than that.  Stupid people in government and dependent upon government is the problem.  But I agree, end ALL government operations and start over.  No military, no regulators, no laws of any kind (as if fraud was being prosecuted anyway), no investment in education, medicine or technology.

The moral hazard can never be reversed at this point.  Crash the whole system and let's find out who's labor is really worth a shit.  Fucking bring it.  Compensation (in numerous forms) will still find its way to useful folks.  Right on Gene!

Gene Parmesan's picture

Sorry - I edited the post late, and would further edit it if I could.

Our current trajectory is clear enough. The only variable that I see is how much the people will be willing to put up with. Most people are too useless/stupid to take care of themselves at this point, so they'll be happy to hand over the keys to their lives to whomever is keeping the lights on and their bellies fat. What the rest will do as we all circle the drain remains to be seen.

LowProfile's picture

What the rest will do as we all circle the drain remains to be seen.

Gee, I dunno.  (LowProfile shrugs, sells most of his shit, leaves country)

i-dog's picture

Very smart moves (including the "low profile" part).

blindfaith's picture



Things can last a very very long time 'as is'.  That change we all look for may not happen in our lifetime.

i-dog's picture

I don't think those who are very deliberately engineering this collapse are working to your timescale! Expect a major 'showing of hands' later this year.

BTW, very appropriate choice of pseudonym. Well done.

UnderDeGun's picture

And the BFG with the spinning cylinder with five loaded and one empty chambers MAY not go off when its put to your head and the trigger is pulled. (Come to think if it i think those odds are extremely favorable conpared to the "barrel" we are all staring down right now)

Azannoth's picture

Yes crash the system and let Evolution sort the rest out

Gene Parmesan's picture

It sounds a hell of a lot better than the inevitable alternative.

CIABS's picture

the federal government will do whatever it can to hold itself together, but the current crisis is the end of a very long historical cycle, and one of the outcomes eventually will be the USA becoming ungovernable.  we're already at a point at which the federal government's purpose is to hold the country together, marshall its resources (including especially the people's labor) so that the elites can continue to play geopolitics.  they do that because it's fun for them but more importantly because it keeps them in power domestically and prevents other countries from toppling them.

when the USA becomes ungovernable, american society should relocalize.  we ought to be able to avoid warring against each other, but we can worry about that when the time comes.  it's already obvious that the USA as a country is too big and unwieldy to serve the interests of its citizens.

GeezerGeek's picture

If we could get back to the original concepts embodied in the Constitution we'd be well on the way to recovery. The USA is not too big to govern, it just needs the various levels of government act as they should. Calls for total collapse may sound exciting, but few would enjoy living through such an event. Indeed, in today's interconnected world few would live through it at all.

I'd rather see the central government go back to what it was designed to do, and one of those things was to protect us from the outside world. I believe in a strong defensive military, not an offensive one. Those who want to abolish the military ignore the fact that the rest of the world won't do that but will, in fact, take advantage of our doing so. For more ideas, see Article 1 Section 8, and be careful to distinguish between goals and allowable methods.

The problem, of course, is the people currently in clarge. TPTB, in short. I can't offer any solutions that wouldn't get me 'disappeared'. Sorry.

Things that go bump's picture

I don't see a strong military, all trained and equiped, waiting around for something to defend against.  If you are going to buy such an expensive toy you are going to use it. 

AldousHuxley's picture

militaryindustrial complex is receiving government subsidies after aerospace industry topped out decades ago.

how ever, military arguement is only politically feasible way to fund basic R&D.....most scientific breakthroughs were from military necessity.

ie. internet --> facebook


stupid citizens -> political support for bullshit celebrity worship, so you have to tell them they will die if they don't use taxes for military R&D instead of entertainment.


wars = depreciation of military technology so that they can ask for more tax to fund "innovation"


funny how the world works.

falun bong's picture

JFK was faced with the same situation and he looked for a way to fund R&D but without killing people. He decided it should be a space race. Worked great, employed lots of people, and everything we use today resulted from the technology.

Maybe another try, stop funding new ways to kill people and start funding new ways to feed and transport them. Duh...

UnderDeGun's picture

I call "bullshit". Stop taking our money to "fund" anything other than those things specified and DIRECTLY NAMED in in United States Constitution. Period.

T-roll's picture

People are the problem, not government.  One can set up the most seemingly perfect government and economic system and within a few generations that system would become corrupt because of people.  We complain about big government but it's We the People who vote for these clowns.  It's people who do nothing but bitch on the internet about how terrible gov't is but won't organize to do anything about it.  People suck!


Gene Parmesan's picture

Yeah, I get it, but when things like this get spread out over multiple generations is easy enough to understand how so many were so willing to turn a blind eye. Only when things get appreciably worse - when they feel it in their own pockets and when they see no light at the end of the tunnel - do they get fired up enough to start focusing on the problem. I think that's where we are now. The system is broken, but the individual governments have nobody to blame for their own actions but themselves, hard and fast systemic rules and regulations aside.  

People do suck.

T-roll's picture

Very true.  It's easy to become complacent when you have a job, a roof over your head and food is plentiful.  Is see the youth of the world leading the coming revolution as they have been affected the most by this economic downturn and have the least to lose. 

UnderDeGun's picture

Then you'll see them all "disposed of" after the fact. For that which will fill the vacuum afterwards will have no use for ignorant children.

UnderDeGun's picture

Every human being alive sucks. We started life that way. In nature, the lazy, stupid, sick and injured are prey to those who are stronger, faster, and quicker thinking. Not to mention more well armed. The only way that doesnt happen is when there are "societies" or "groups" that provide protection to those less capable. And those associations can only be maintained continuously by either instinct (animals) or a unifying belief system in something greater than themselves (humans). Throughout history the records of secular accomplishment in this arena are woefully small compared to faith based accomplishments. When it all goes to hell, i can guaranfuckingtee you - it wont be atheists or progressive assholes pulling it back together. It will be the people who maintain their faith in a power greater than sucky old "man".

Raging Debate's picture

Gene, humans are not very proactive. Those that are and rattle power have obstacles. But the latter group won't stop.

I'll take us as a species, the good outweighs the bad. I agree that pain is a huge evolutionary factor. People are awake, many just don't know what to do about it and will wait for emerging leaders to step up. That too is happening, obstacle phase and I should joke obstacle maze.

DVDBeaver's picture

Government is only the problem in that they are owned. Governments don't rule the world - Goldman Sachs does.

jwoop66's picture

As it is, they are  the same.   If the federal govt were smaller as it should be, Goldman's influence over them wouldn't matter.   Government is the problem.

DVDBeaver's picture

Government is only the problem in that they are owned. Governments don't rule the world - Goldman Sachs does.

Bam_Man's picture

The current system breeds corruption and criminality.

And it all starts with the dishonest nature of the money itself. Fortunately, more and more people are beginning to wake up to these facts.

Mr Lennon Hendrix's picture

 I see in fight club the strongest and
                 smartest men who have ever lived --
                 an entire generation pumping gas and
                 waiting tables; or they're slaves
                 with white collars.

                  Advertisements have them chasing cars
                 and clothes, working jobs they hate
                 so they can buy shit they don't need.
                 We are the middle children of
                 history, with no purpose or place.
                 We have no great war, or great
                 depression.  The great war is a
                 spiritual war.  The great depression
                 is our lives.  We were raised by
                 television to believe that we'd be
                 millionaires and movie gods and rock
                 stars -- but we won't.  And we're
                 learning that fact.  And we're very,
                 very pissed-off.

 We are the quiet young men who listen
                 until it's time to decide.

blindfaith's picture


"The great war is a
            spiritual war."

congradulations on seeing the light, and therein lies the rub.


Treeplanter's picture

Corruption and criminality has destroyed a system that worked very well.  The bi-partisan permanent poliitical class has to be removed before we can recover and restore rule of law and honest money. We need sudden and relentless reform.

T-roll's picture

The problem is that we don't pillage enough.  We were in Iraq, why aren't we in control of their oil fields?  What about Libya?  We should take over Canada and their oil sands.  We can solve all of our energy problems by putting boots on the ground and putting our over-inflated military budget to good use.  Think of all the jobs this would create.

Mr Lennon Hendrix's picture

I find it amusing that people still think that the dollar is threatened by oil States selling the oil for a different currencie when the said States could easily diversify out of dollars promptly after the sale.

Ignatius's picture


The dollar's primary value is its usage demand.

Mr Lennon Hendrix's picture

Right.  So if someone sells oil, receives dollars, and trades dollars for euros, then they diversified out of dollars and dollars would have lost its demand.  You would think that Saddam, Gaddafi, etc would realize they have no need to trumpet to the world they are selling oil for euros/gold, they would simply and quietly continue selling oil in dollars, and then trade the dollars for euros/gold.

blindfaith's picture



the name of the currency does not matter, belief in its value does matter.

The value of a currency is an illusion, money is an illusion.  When that trust is exhausted, no one will take your currency in trade....period.

flattrader's picture

Don't bother.

He just doesn't get it...that they're still using dollars as the key currency medium of the transaction even if they convert/diversify to gold, euros, sea shells, what have you after the fact....Sheesh...

Mr Lennon Hendrix's picture

Do you know why the dollar has strengthened?  Because it has been sold out and is now housed on balance sheets with no volacity.  And this is what I said above.

People are diversifying out of dollars, after they have used the dollar as the medium for trade.  Look, as far as international trade goes, China, Russia, Japan, India, Iran, and others, are no longer trading oil in dollars.  Ok, but my point is that Saddam could have bypassed this mechinism by selling his dollars for euros, and thus the logic of the rumor that we went to war because he wanted euros for oil would have been squashed.

Look, it isn't an island economy.  You can trade oil for dollars and then dollars for euros.  Sure Saddam would have saved a fraction if he had traded oil for euros, bypassing the dollars, but if that is THE REASON the US went to war, don't you think he would have not done it?

flattrader's picture

>>>but if that is THE REASON the US went to war, don't you think he would have not done it?<<<

He had a "strong-man" mentality. In his mind, he could "thumb his nose" at the US.

After Gulf War I, we gave him back his helicopter gunships so he could brutally put down the rebellion Daddy Bush directly called for from the Iraqi people.

Saddam thought he had little to fear with his step away from the petro-dollar.  He thought wrong.  Bad risk assessment on his part.

blindfaith's picture



I don't mean to be condesending, but you have jumped the gun badly here.

narapoiddyslexia's picture

Don't the buyers still have to come up with dollars? Isn't that the key attribute of the petrodollar system?


edit: there is lots of latency on my stupid ISP. This was lagged 5 minutes!

falun bong's picture

Homeland Security had to have a look at the message and be sure they could match the sender with his GPS coordinates. Black helicopters arriving in 3,2,1...


The PROBLEM is the stupid American electorate! Why, look what they did just this week in FL.

RP 7% ? ? ?

LawsofPhysics's picture

Lots of scared old folks in florida as well as immigrants looking for healthcare and as many handouts as they can get before it all goes boom.  These folks are fleeing from shitholes like cuba, hell, to them ANY free public education is better than NONE. 

centerline's picture

RP scares the old folks down here.  They think the TV tells them the truth, and the RP is unelectable.  I have heard this said like a kneejerk reaction.  Ask them to assert said position and you get nothing.  There is no logic to be found.  Just emotion and the continued hope that the next guy will give them what was promised.  The last of the believers.  The rest of us have become cynics.  And rightfully so.  The younger generations are even worse off.  Forget cynics, they are beyond cynacism at this point.

GeezerGeek's picture

Some of us "old folks in Florida" are more pissed than scared. I just want to get back what was extracted from my 50 years of wage earnings. I'd also like my freedom back.

As for the "folks fleeing from shitholes like Cuba", those I know that came here circa 1960 came for freedom, not free public education. Based on what I read, our public education system isn't all that great anyway, at least not nowadays. Now we get many immigrants fleeing Chavez - again, it's freedom, not freebies. Your mini-rant is at odds with my experiences from 40 years living in S. Florida. (And no, I don't live in chad-obsessed Palm Beach County.)

xela2200's picture

I live in Miami, and I can tell you that the mass exodus of Cubans came in the 80's. Most of them have been assimilated and have kids. Many drive expensive cars, flashy jewelry, and their kids are as much of a brat as any American kid.

I go to my usual Cuban coffee window (it is a Miami thing) where people gather to drink coffee, pastries and talk crap which is a our favorite past time down here. Last week people were talking about Gingrich and Romney. Really it sounded like choosing Coke or Pepsi. No mention of RP. The older people talk a lot about medicare. There is real concern about how it keeps on going up. Also, the drop of the homes coupled with currencies. Remember, many could go back to their countries and try to live off their pensions. However, that is quickly disappearing as an option. Most currencies in Latin America are going through the roof. China is buying everything so thing are getting more expensive even for locals.

Outside of the major cities, Florida is the garbage can of the south, so a lot of patriotic rhetoric will do the trick. No gun control since we really like our guns. No need for any real issues.