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The Rise Of The State

Tyler Durden's picture


The ever increasing un-invisible hand of intervention, manipulation, and disintermediation by central planning regimes around the world is an oft-quoted topic among our discussions. UBS's Global Macro Team published a thoughtful piece late last week on global political issues and the rise of the state.

From Paul Donovan of UBS Global Macro Team

The Rise Of The State

Governments are encroaching into more and more areas of the world economy. This is not just through political drama (as we have seen in the Euro area), nor even through the conventional mechanisms of foreign exchange intervention. Regulation (and regulatory uncertainty), sovereign wealth funds, bond market manipulation and default risks all play a role in financial markets, and all are intensely political in their nature.

There Is No Place Like Home

A more politically nuanced world raises an interesting unintended consequence for global financial markets. Directly, as a result of increased regulation, or indirectly, as a result of increased costs associated with assessing foreign political risk, investors may feel that the rise of the state will increase the home country bias of capital flows - exactly as leaders look for global burden sharing.

The Euro

The Euro continues to represent a mass of political risks, most of which are of course divorced from conventional political assessment. The Euro area is struggling with regulatory, default, and fiscal risk of course, but also with negotiations over the de facto surrender of sovereignty for the collective good of the monetary union. The problems here are changing so frequently it seems useless to speculate on specific outcomes. However one concern is that political and economic objectives are not necessarily coinciding.

Forthcoming elections

Even amidst the specific concerns of the Euro, the electoral calendar does contain some important dates. Spain goes to the polls in November, with polls indicating a new government is likely. New Zealand also has a general election, and Egypt is supposed to begin its process of transition to democracy – albeit slowly.

UBS - The Rise of the State


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Tue, 11/15/2011 - 03:09 | 1878400 Michael
Michael's picture

I just thank God for the complete and total worldwide economic collapse so governments won't have very much money to pay police state enforcers anymore.

Tue, 11/15/2011 - 03:17 | 1878404 Vic Vinegar
Vic Vinegar's picture

Not going to happen.  Rather tomorrow will bring:

  • Tyler and friends continue yeoman's work 
  • Graham Summers tells us it's all going to implode soon 
  • the government pays people to come on here and blame "the jews" 
  • Margaret Brennan doesn't get laid 
  • talk of a Eurozone crisis continues and yet nothing changes
Tue, 11/15/2011 - 03:51 | 1878422 Akrunner907
Akrunner907's picture

Margaret Brennan does look lonely. 

Tue, 11/15/2011 - 06:56 | 1878494 The Peak Oil Poet
The Peak Oil Poet's picture



she should hang out at the new American military base to be set up in Australia


it's funny how stupid Australians are - they are all being misled by debate on gay marriage and selling uranium to India while the Julia Gillard government in cahoots with the opposition turns Australia into a nuclear target


it's mind numbing how they get away with it



Tue, 11/15/2011 - 08:15 | 1878569 Oh regional Indian
Oh regional Indian's picture

Pops, it's happening everywehre. Everyone is focused on the right hand. India was similarly distracted by a huge anti-corruption movement over the past 2-3 months while huge scams and most importantly, NEW NUCLEAR PROJECTS were announced, huge scandals that were un-folding were distracted from.... it's a standard playbook.


Plus, all of us "Commonwealth"  nations don't know if our constitutions/judiciary are even valid. Someone from NZ did a huge expose on that recently.

All in all, it's not just the rise of the state, it's the rise of Communism/Fascism.

Fascinating. Fascism, Fascinate....hmmmmmmmmm.... interesting....



Mandlebrot Magic

Tue, 11/15/2011 - 08:17 | 1878572 i-dog
i-dog's picture

"turns Australia into a nuclear target"

So ... China is going to nuke Darwin because a few American troops are on rotation there? Wow ... your strategic analysis is amazing!

I'd be more concerned that the Australian Government will use the troops and their equipment to fight Australian domestic trrrrrrrsts!

Tue, 11/15/2011 - 08:26 | 1878591 Oh regional Indian
Oh regional Indian's picture

i-dog, actually there is Major American Military presence in Oz (don't have sources handy). Especially HAARP stations, Mil Intelligence kind of stuff. I'll post the link if I find it. But OZ is definitely being reigned into the Fold.


Tue, 11/15/2011 - 08:38 | 1878615 i-dog
i-dog's picture

Thanks, ORI. I've spent quite a lot of time in Australia and find it sad that they don't realise just how controlled they already are. The PM is as far left as they come and has broken almost as many promises as Obomber, yet the opposition leader and probable next PM is a freaking Jesuit! Lose-lose for the Aussies in their next election! (Identical situation to a choice between Obomber and Gingrich in the US).

Tue, 11/15/2011 - 08:40 | 1878626 Oh regional Indian
Oh regional Indian's picture

Hah! Aren't we lucky in India. We have a Vatican blessed puppet Italian as the most powerful woman in this country. 

And now her dynasty is taking hold. Nuts!

And them Jesuits... ......  ........trouble. Have you read the secret (not so secret obviously) Jesuit manual? Scary stuff.


Tue, 11/15/2011 - 08:51 | 1878660 i-dog
i-dog's picture

I've read some Jesuit stuff, but if you read one NWO manifesto you've read them all. They are all derived from (and sponsored by) the Jesuits ... Illuminati, higher-degree Masons, Mormons, Round Table, Trilateral, CFR, Bilderberg, John Birch, CNP ... the whole fucking lot were created by them as part of their ongoing hegelian dialectic exercises to meet the needs of the moment. It wouldn't surprise me if Hegel was trained by them, too! (note to self: must look into that).

Tue, 11/15/2011 - 08:54 | 1878666 Oh regional Indian
Oh regional Indian's picture

yep, the Vatican Attack Dogs...


Tue, 11/15/2011 - 09:11 | 1878697 i-dog
i-dog's picture

Partly. They started out in 1534 as the "Pope's militia" (allegedly), but they quickly became (if indeed they weren't right from the start) in opposition to orthodox catholicism and battled the Vatican hierarchy until they finally gained control of it from 1878. During those earlier centuries, they were expelled from around 83 countries due to their political machinations - and many of those expulsions were from catholic countries and were ordered by the pontiffs of the day!

Tue, 11/15/2011 - 08:06 | 1878554 Carlyle Groupie
Carlyle Groupie's picture

What government are you talking about?

You must comply Vic. Boycott Israel and The US government will target you.

Tue, 11/15/2011 - 03:32 | 1878407 DavidPierre
DavidPierre's picture


The Super Committee Farce is next.

Next Wednesday is the farce deadline for the Congressional "super committee" to come up with between $1.2-$1.5 Trillion of cuts that were promised back in August when the debt limit was raised. First off, this amount is basically a "ham sandwich" compared to what the real problem is.

This $1.5 Trillion is over 10 YEARS so it amounts to a mere $120-150 Billion per year.

To put this in perspective, we have already spent an additional $600 Billion+ in just over 3 months since the debt deal so the concept really is laughable. What is even more laughable will be when they they deadlock and cannot come up with any cuts!

Assuming that they do actually come up with a plan,... What will "normalized" interest rates do to these plans?

If interest rates were to rise to the lofty levels of say just 5%, how much is that on $20 Trillion (where we will be in less than 3 years) worth of debt? The calculator says...$1 Trillion per year...EVERY YEAR in interest alone! Heck, 5% on an additional $5 Trillion is $250 Billion which dwarfs these proposed fantasy cuts by this super committee.

The immediate problem is that this fiscal wrangling will bring the U.S. back into the financial spotlight, something they can ill afford.

Better to point fingers at European deadbeats so the world is distracted fom looking under our hood where the real problem is!

Complacency abounds everywhere ... face the fact of a 100% mathematically assured financial collapse that ends with new currencies being issued.

It is only a matter of time and "how many zero's" are added to Gold and Silver's prices when the current currencies go the way of the Dodo bird.

How anyone can miss this as it could not be more obvious. Governments far and wide including... especially the U.S. have debt levels (denominated in already fake and worthless pieces of paper) that are unsustainable and cannot be paid back even with interest rates at zero. Factor in "real" interest rates that are not negative and the top blows off this baby!

Were the U.S. to back just it's debt held by foreigners, Gold would need to be priced at nearly $20,000 per ounce. If it were priced to back the admitted and "on the books debt", that number is over $60,000, expand it to cover the "off books debt and obligations" and you arrive a tover $400,000 per ounce.

Of course this assumes that we have the Gold that we say we do, ...likely or unlikely?

Today's bond buyers are "investing" in entities that cannot be paid back in even the current worthless currencies.  They will be paid back in EVEN MORE worthless, if that's possible, paper!

It makes no sense. It is this very core belief, namely that "government bonds are the height of safety" that will be the undoing of the whole system.

The "lunatics"... those who believe in hard and real currency... will finally get to run the asylum in a fair and just manner where "settlement" is actually real and accomplished for trade and payment of wages and debts!

Tue, 11/15/2011 - 03:34 | 1878414 Michael
Michael's picture

Complacency abounds everywhere in the face of a 100% mathematically assured financial collapse that ends with new currencies being issued.

That is a fact Jack. Thank God for the 100% mathematical certainty. 

Under a gold standard, a loaf of bread can cost 10 cents.

Tue, 11/15/2011 - 03:55 | 1878424 Michael
Michael's picture


These two get along swell together.

Nancy Pelosi and Newt Gingrich Commercial on Climate Change

Tue, 11/15/2011 - 04:07 | 1878434 DavidPierre
DavidPierre's picture

That ad would have appealed to every ameriKlan if they had just brought Ronnie Reagan's corpse dancing in at the end.

Go to:


Tue, 11/15/2011 - 11:24 | 1879194 mtomato2
mtomato2's picture

Including me.  I liked Reagan.. Fuck you.

Tue, 11/15/2011 - 10:18 | 1878923 topshelfstuff
topshelfstuff's picture

""""""""It is only a matter of time and "how many zero's" are added to Gold and Silver's prices when the current currencies go the way of the Dodo bird."""""

I have posted about this several times, and firmly believe its Two Zero's to be added. This is the Only way to seriously address the US Debt. The Only way to make it possible to Pay and Erase that Debt. By adding Two Zero's the Current Debt is Payable at 1%, 1/100th, of its Current Dollar Valuation, with NEW US Dollars.

The US "Paper" would be made Payable in full, no default, just with New US Dollars.

At the same time the other Major Problems, like the Mortgage Fiasco Disaster, that must be dealt with, is also done away with.

A rough draft of how this would work, and of course it needs to be worked on, is the following:

A Bank Holiday [Closing] is called, perhaps for One Week. ALL CASH is called in, and those Dollars are Exchanged for NEW Dollars. The New Dollars will be 100 times the Face Value of the "Old"/Current Dollars. Bank account Balances would be adjusted. Its only the outstanding CASH that needs to be exchanged...after this date the current dollars would not be acceptable, so they have to be turned in.

Mortgage Debt would be kept Fixed, as-is, priced in Current Dollars, yet Payable with the New Dollars. There would also be a need to scrap all the problematic Mortgages, doing away with the multitude of questions re: The Note, who actually has the mortgage, Title, etc.....All that swept away and replaced with a Clear Clean Mortgage.

The other Item to address would be Student Loans. These also would be handled as the Mortgages. IOW, Student Loans would remain priced as-is and Payable with New Dollars. (these 2 items, at least)

Of course, a person's Pay, lets say for example a person making $800 a Week currently, would then get a Pay of $80,000...though of course the $3 loaf of read would then cost $300...all in all nothing really changes except the Currency.

Commodities would also see the Two Zero's added. An ounce of Silver at $3,500 New Dollars would be equally Valued to a person at $35 Today.

Consider that much of the world already has their Currency like this. The YEN a great example.

Tue, 11/15/2011 - 11:27 | 1879202 mtomato2
mtomato2's picture


Except student loans are the future indentured servitude to the Federal Government.

They'll NEVER relieve us of them.  Period.

Tue, 11/15/2011 - 08:14 | 1878564 disabledvet
disabledvet's picture

yeah, well--how exactly does "the rise of The State" correspond with "The Collapse of private Sovereign Credits" again? They're friggin' defaulting with the entire CONTINENT of Europe becoming a case study in the perils default. Those nations will NEVER recover. The fact of the matter is the CDS has destroyed pretty much the entirety of governments worldwide save for either the United States (which is too liquid to fail) and very small "city states" (Singapore, Hong Kong, Shanghai, etc) which simply don't have the capital demands which require the use of CDS contracts or probably more true and certainly most importantly "the economic intelligence" to deal with them in the first place.

Tue, 11/15/2011 - 10:32 | 1878979 rwe2late
rwe2late's picture

investors may feel that the rise of the state will increase the home country bias of capital flows - exactly as leaders look for global burden sharing.”

“Rise” of the state? How about demise of the state? How about the subordination of governments to the oligopoly of larger-than-most-states global enterprises and those who head those enterprises?

The author confuses the “regulations” designed to suppress local competitors with the deregulation (in fact or in practice) of uncontrolled trans-national corporations.

The author uncritically accepts the pretense that the “global sharing“ of the “burden” is to be done within nation states, but not by global enterprises. That pretense cleverly posits the mistaken notion that accepting the burdens of such sharing is the “patriotic” thing to do. Actually, of course, it is quite the opposite, as the wealth of each nation is to be diverted away and auctioned off.

How little different in concept is it from the heads of a large corporation demanding sacrifices from each department in order to maintain rigged company accounts and CEO profligacy?

The state “leaders” are Goldman Sachs et al insiders whose only intention is to insure that the burdens are not “shared” by their elite club. They will use their control of both international and national organizations to accomplish that purpose. The “bias” is not toward nations, not even to the national hub of empire, but for the network of power and wealth that now holds sway over both national governments and international organizations.

Tue, 11/15/2011 - 03:26 | 1878408 lolmao500
lolmao500's picture

Who is John Galt basically?

Tue, 11/15/2011 - 07:35 | 1878527 slowimplosion
slowimplosion's picture

John Jamie Dimon Galt?  John Lloyd Blankfein Galt?  John Angelo Mozilo Galt?


John Galt is a fictionaly character like Superman or Batman, the only difference being that some people actuallty believe he's real.

Tue, 11/15/2011 - 07:54 | 1878537 nmewn
nmewn's picture

"Who is John Galt basically?"

One of the highly productive 49% of any population who has grown weary of exerting 100% only to recieve 50% pay for his efforts as he supports the other 51% + himself.

Tue, 11/15/2011 - 08:17 | 1878576 disabledvet
disabledvet's picture

No. It's more like "Who is Jerry Sandusky and why is playing with the little boys again?"

Tue, 11/15/2011 - 09:28 | 1878720 Voluntary Exchange
Voluntary Exchange's picture

Those who choose human cooperation rather than fraud, theft, and initiation of force.  The most dangerous of the non-"human" class  seeks out "monopolies of force" as tools so that they might steal, lie, and kill with impunity. So .....



"Let's Make a Deal"



Political power is the path to destruction.  Sooner or later "humans" will figure that out and keep all their individual power and control over the "non-humans" by resorting to free markets to provide key security and justice services instread of giving some gang a monopoly of force and then hoping to find "justice" by forcing one group's views upon others by guns and through political power capture. 


"Democracy- The Joke's on You!" - By Larken Rose


Tue, 11/15/2011 - 03:28 | 1878409 Troy Ounce
Troy Ounce's picture



Hayek’s central thesis is that all forms of collectivism  lead logically and inevitably to tyranny. He further argued that the failure of central planning would be perceived by the public as an absence of sufficient power by the state to implement an otherwise good idea. Such a perception would lead the public to vote more power to the state, and would assist the rise to power of a “strong man” perceived to be capable of “getting the job done”. After these developments Hayek argued that a country would be ineluctably driven into outright totalitarianism. For Hayek “the road to serfdom” inadvertently set upon by central planning, with its dismantling of the free market system, ends in the destruction of all individual economic and personal freedom.

Tue, 11/15/2011 - 07:27 | 1878520 Sorynn
Sorynn's picture

May I quote this?


Tue, 11/15/2011 - 07:54 | 1878536 Troy Ounce
Troy Ounce's picture


By all is out there for all to see:

Tue, 11/15/2011 - 08:59 | 1878672 Carlyle Groupie
Carlyle Groupie's picture

We all travel “the road to serfdom”. There is a fork in the road where you must take action in order to get to high ground.

Recognize that PM's are preferred monetary units for commerce. If you are a business owner accept PM's as payment for goods and services. It's time to go-live with the transition.

Discredit jew confetti as the other path to the lowlands.

Tue, 11/15/2011 - 10:46 | 1879045 tarsubil
tarsubil's picture

This won't work while PMs are grossly undervalued.

Tue, 11/15/2011 - 03:37 | 1878417 caerus
caerus's picture

l'etat c'est moi

- louis xiv (and the rest of the bastards)

Tue, 11/15/2011 - 03:45 | 1878420 DavidPierre
DavidPierre's picture



Honnête argent!   La seule réponse!
Tue, 11/15/2011 - 04:01 | 1878426 Al Gorerhythm
Al Gorerhythm's picture

Dreaming you will find a safe haven country to reside in, that has fascist free government, run by honest politicians, is like choosing Cut-throat Island as home sweet home. There's nowhere (politically) to run.

Tue, 11/15/2011 - 04:02 | 1878431 caerus
caerus's picture

l'homme est libre au moment qu'il veut l'être.

Tue, 11/15/2011 - 04:23 | 1878443 DavidPierre
DavidPierre's picture
Le secret de la liberté est courage.
Tue, 11/15/2011 - 04:35 | 1878445 caerus
caerus's picture

ego illud adsentior davidpierre

Tue, 11/15/2011 - 05:39 | 1878465 DavidPierre
DavidPierre's picture

Gratias agimus tibi! I videtur? Mea latine est malus.

Tue, 11/15/2011 - 06:12 | 1878470 caerus
caerus's picture

better than most, my friend! you are a gentleman and a scholar! cheers!

Tue, 11/15/2011 - 08:43 | 1878635 WonderDawg
WonderDawg's picture

You're up early, Caerus, or maybe up late. I hope you had a great weekend celebrating a big win last week. Cheers to you, sir.

Tue, 11/15/2011 - 04:03 | 1878429 Seer
Seer's picture

So, it's not that corporations are controlling governments?  And in their doing they are effectively collectivizing?

As far as Hayek and "collectivism" goes, it IS a natural tendency to coalesce when energy is applied.  Heck, capitalism really comes down to INCREASING capital, which IS a collective action (concentration).

All said, centralized power is not a good thing.  And, BIG = FAIL!

I'd think that people would get more traction out of dropping the direct referencing of "State" and just go with "centralized power."

War is the Health of the State - Randolph Borne

War Is A Racket - Smedley Butler

I'll make this point for the umpteenth time- if you want property rights "protected" then you're asking for the power of the State.  Where this road leads is clear, we see this today- MASSIVE "ENFORCEMENT" powers.  I'm NOT arguing AGAINST property rights, I'm just (repeatedly) asking the tough question of how we can have them and NOT end up with a police state.

Tue, 11/15/2011 - 05:31 | 1878463 Snidley Whipsnae
Snidley Whipsnae's picture

Seer... "I'll make this point for the umpteenth time- if you want property rights "protected" then you're asking for the power of the State. Where this road leads is clear, we see this today- MASSIVE "ENFORCEMENT" powers. I'm NOT arguing AGAINST property rights, I'm just (repeatedly) asking the tough question of how we can have them and NOT end up with a police state."


Our founding fathers anticipated the growth of the US Gov and attempted to limit it with the catch all phrase 'all powers not specifically assigned to the Federal Gov are reserved for the individual states' (paraphrased).

Lincoln, whether purposely or not, took the very large first step down the road to turning the tables and making the individual states subservient to the Fed government. The US Civil War was in fact the first step toward US Imperialism, followed by the Spanish-American War in 1898, etc.

At the time of the US Civil War slaves were the largest single asset class in America. In effect Lincoln, by freeing the slaves, destroyed the single largest 'property right' in America by eliminating the single largest asset class in America. (BTW, I am not in favor of slavery and believe that slavery should have never existed in the US... or, anywhere). From the end of the Civll War through 'reconstruction' and until this day there has been no turning back, no giving back to states the 'powers reserved unto them' and there has only esisted a continuous build up of power within the Federal Government. Each new war brought new power and expansion to the Fed Gov.

This is a long winded way of saying 'there is no way to insure individual property rights UNLESS the US Constitution is strictly adhered to... and we both know that over time no piece of paper is strictly adhered to. Any soverign government held in check by a piece of paper will find a way, usually war, to circumvent it's restraints.

What are the alternatives? Anarchy, which is by definition rule by the strongest and devoid of property rights for any that are not well connected to the tyrant du jour.

Socialism, which is what e have now in the US for the joe six packs along with heavy dose of fascism for the Fed Gov and it's supporters, big biz and big finance (a symbiotic relationship).

Capitalism saw a spectular bust in the crash of 29 and the Great Depression. It is little noted in history texts today but FDR intorduced many socialist programs to prevent revolution, ousting of the Fed Gov and a turn to total communism, which had gained great traction among starving citizens in the US. The real reason that deflation is so feared among US pols and the Fed Reserve is that deflation is accompanied by the possibility of popular uprisings and revolutions. Isn't this why the Fed and Federal Gov print fiat in hopes of preventing deflation?

The founding fathers included a clause in the constitution that said if the citizens become fed up with a gevernment that has become tyrannical that the citizens have a right to call a constitutional convention and, basically, modify the constitution and oust the burdensome government. Of course, this is impossible today just as it was impossible in the time of Lincoln, LBJ, et al.

The US Gov, over time, has eroded almost all that was set down in the constitution.  Over time the republic morphs into an empire. We see it in Roman history, we see it in the US today. All empires have an 'expire by' date. But, will what follows offer property rights for the common man? I cannot answer your question.

Tue, 11/15/2011 - 06:10 | 1878467 i-dog
i-dog's picture

"if you want property rights "protected" then you're asking for the power of the State"

Why does a failure of imagination always revert to "we must have a state"?!

Every individual, even a 2-yr-old, knows what is theirs. Every community knows what is theirs, who owns what, and where the boundaries to individual properties and the community as a whole lie. The only purpose of a "state" in this regard is to maintain a register - which could easily be provided by interoperating entrepreneurs. And, in this age of instant communication, full peer reviewed information can be easily accessed over the intertoobs by each individual.

As for enforcement: communities are well able to police transgressors through mediation, respected representatives and privately funded and competing security agencies (which ensures that no single agency becomes 'too big to control'). An armed community is also far more peaceful than one that depends on the arrival of an outside armed "force" to settle a dispute.

Your problem only arises because you are trying to find a one-size-fits-all (ie. collectivist) solution for over 300 million people scattered throughout tens of thousands of individual communities. For centuries, all these problems were solved at the 'parish' and 'county' levels, long before the central state was born. There are still many examples operating in remote communities, such as islands, rural backwaters and more "primitive" societies (as if modern American society isn't even more primitive)!

Problems only arise when there IS a central, corrupt state that IS too remote and 'too big to control'!!

Tue, 11/15/2011 - 06:19 | 1878472 Snidley Whipsnae
Snidley Whipsnae's picture

"For centuries, all these problems were solved at the 'parish' and 'county' levels, long before the central state was born."


Not exactly... Your 'solution' does not recognize the greed of the 'rentier class'... a part of human nature... From 'Tin Horns and Calico"...

"Howard Zinn's short history of the Anti-Renter movement against the patroonship system, created in the 1660s when the Dutch ruled New York. The rich had vast land holdings and the tenants paid taxes and rents. The movement grew to 10,000 men and was finally put down by a cavalry unit of 3,000 who came up from New York City.

In 1839, around the time of the Dorr Rebellion in Rhode Island, when a deputy arrived in the farming area of in the Hudson Valley near Albany, New York, with writs demanding the rent, farmers suddenly appeared, assembled by the blowing of tin horns. They seized his writs and burned them.

That December, a sheriff and a mounted posse of 500 rode into the farm country, hut found themselves in the midst of shrieking tin horns, 1,800 farmers blocking their path, 600 more blocking their rear, all mounted, armed with pitchforks and clubs. The sheriff and his posse turned hack, the rear guard parting to let them through.

This was the start of the Anti-Renter movement, described by Henry Christman in Tin Horns and Calico. It was a protest against the patroonship system, which went back to the l600s when the Dutch ruled New York, a system where (as Christman describes it) “a few families, intricately intermarried, controlled the destinies of three hundred thousand people and ruled in almost kingly splendour near two million acres of land.”

The tenants paid taxes and rents. The largest manor was owned by the Rensselaer family, which ruled over about 80,000 tenants and had accumulated a fortune of $41 million. The landowner, as one sympathiser of the tenants put it, could “swill his wine, loll on his cushions, fill his life with society, food, and culture, and ride his barouche and five saddle horses along the beautiful river valley and up to the back- drop of the mountain.”

By the summer of 1839, the tenants were holding their first mass meeting. The economic crisis of 1837 had filled the area with unemployed seeking land, on top of the layoffs accompanying the completion of the Erie Canal, after the first wave of railroad building ended. That summer the tenants resolved: “We will take up the ball of the Revolution where our fathers stopped it and roll it to the final consummation of freedom and independence of the masses.”

Certain men in the farm country became leaders and organisers: Smith Boughton, a country doctor on horseback; Ainge Devyr, a revolutionary Irishman. Devyr had seen monopoly of land and industry bring misery to the slumdwellers of London, Liverpool, and Glasgow, had agitated for change, had been arrested for sedition, and fled to America. He was invited to address a Fourth of July rally of farmers in Rensselaerville, where he warned his listeners: “If you permit unprincipled and ambitious men to monopolise the soil, they will become masters of the country in the certain order of cause and effect…"

Thousands of farmers in Rensselaer country were organised into Anti-Rent associations to prevent the landlords from evicting. They agreed on calico Indian costumes, symbol of the Boston Tea Party and recalling original ownership of the soil. The tin horn represented an Indian call to arms. Soon 10,000 men were trained and ready.

Organising went on in county after county, in dozens of towns along the Hudson. Handbills appeared:... "

Remainder can be read here...

Tue, 11/15/2011 - 06:28 | 1878476 i-dog
i-dog's picture

What is your point to pasting this book? That 10,000 men can easily be mobilised to defeat a takeover by a small number of rentiers?!

Tue, 11/15/2011 - 06:54 | 1878492 Snidley Whipsnae
Snidley Whipsnae's picture

No, the point is that a rentier class will always arise and that your simple but elegant solution of anarchy will only aid and abet the aims of the rentier class. If you read Howards Zinn's history you will find that at the outset of revolution in the Hudson Valley the rentier class had no 'middle government structure'; ie, no large sheriffs departments with permanent deputies and therefore, no permanent law enforcement agency for the farmer/renters to fear.

Once one of the rentier class rode out to collect rent and was shot dead by farmers all of that changed immediately. The rentier class saw no reason why they should be shot when they could hire flunkys to enforce their laws.

So the first structure of bureaucrats was formed as sheriffs, deputies, clerks of court, construction of larger jails, county records office expansions, etc.

The rentier class had built an insulating layer of bureaucrats between themselves and the renter/farmers. Huge governments of today are a mere extension of this trend. Bureaucrats always strive to enlarge their little office into an entire building of underlings.

...and, the mobilisation of 10,000 men did not defeat a small number of rentiers, the mobilisation defeated the small renters/farmers... at least, it taught them that they had to use the ballot box or risk a trip to the gallows.

The problem lies in limiting government and the solution is not anarchy which leads to many but different problems as we face today. If anarchy really worked in large, complex societies why is it not in use today in large, complex societies?


Tue, 11/15/2011 - 09:11 | 1878676 CH1
CH1's picture

We have this new thing called communication, see? and it allows all those scattered pawns to communicate and know about the nasty things being done.

The state protects property rights all right - its own!

No, we do NOT need them.

Tue, 11/15/2011 - 11:28 | 1879210 Snidley Whipsnae
Snidley Whipsnae's picture


"We have this new thing called communication, see? and it allows all those scattered pawns to communicate and know about the nasty things being done."


...and, who owns 'this new thing called communications'? Do you own/control it? Or, does the state own/control it?

You will be allowed to use 'this new thing called communication' until it becomes obvious to the state that it is a threat to their power... then the state will shut it down.

Tue, 11/15/2011 - 07:15 | 1878497 Optimusprime
Optimusprime's picture

Unworthy reponse, Snoopie.  Well below your usual standard.  His point was clearly stated, and it was in reponse to your reminder that local community standards and solutions are what is needed (this, incidentally, is the stance of the Daily Bell, which calls for a return to tribal and common law absent so-called "universal jurisdiction").


He said, "Not exactly... Your 'solution' does not recognize the greed of the 'rentier class'... a part of human nature... From 'Tin Horns and Calico'..."


Well said.  This is an important debate, IMHO, and needs to be advanced, not cut short.


The issue was summarized decades ago by Albert J Nock, who remarked to the effect that any "government" strong enough to enforce property rights is strong enough to infringe them.  Seems like the world in which we live.

Tue, 11/15/2011 - 04:16 | 1878440 Coldfire
Coldfire's picture

The ongoing collapse of the fraudtional reserve banking system is the single best hope towards a return to individual rights. In the meantime expect hell and high water as the state grasps desperately at straws to keep its debtline flowing. I expect the last gasp of the current power elite to take the form of hyperinflation, which is simply terminal stage stealing from each and everyone on the fiat plantation to the extent of their productivity. Don't be a victim. Get gold and get guns.

Tue, 11/15/2011 - 04:34 | 1878444 meltonk
meltonk's picture

ice post. The info presented here was the best I could discover all day long, and I have been searching hard on the Web. I think you ought to put this up on a large social bookmarking site, you will find that it spreads like wildfire. leather jackets

Tue, 11/15/2011 - 05:14 | 1878456 HankPaulson
HankPaulson's picture

Either the "free" market includes fraud, theft, etc, or it gets regulated.

Tue, 11/15/2011 - 09:01 | 1878683 CH1
CH1's picture

The free market is simply what exists when no one is forced to do anything.

Sadly, there are always a few idiots who make things hard, but "regulation" doesn't solve that. How many ten thousands of regulations exist now? Has it eliminated crooks?

Tue, 11/15/2011 - 05:29 | 1878462 r00t61
r00t61's picture

This doesn't have much to do with the article per se, but I was hoping that you guys could give me some quick answers.

What is to stop the ECB from continuing to buy the sovereign debt of the PIIGS, using newly-created electronic Euros?  Just like the Fed and its Treasury purchase/QE programs?  While simultanesouly pursing ZIRP and allowing the Euro-TBTFs to recapitalize?  Why are they going down the seemingly more diffcult route of getting Germany to backstop the debt instead? 

I mean, the ECB can't care what goes on its balance sheet, can it?  It can print some Euros whenever it wants.  The Fed bought hundreds of billions of dollars worth of garbage mortgage securities.  And though we've had some Tea Parties and OWS, the current US kick-the-can/save-the-TBTF plan of QE and stealth inflation seems to be working okay.  Much better than the anger created when TARP was passed, and I'd imagine there'd be similar anger in Germany if it really does end up having to finance the bailouts of the PIIGS.

Tue, 11/15/2011 - 05:32 | 1878464 writingsonthewall
writingsonthewall's picture



Today you see the death of Democracy in Zuccuti park.

What is Democracy 'worth' - if it has to be imposed at the end of a police baton?


I am very disappointed America - the world looks up to you as a beacon of democracy - and it's being destroyed by the allowance of the Fascist state to emerge un-abashed

Tue, 11/15/2011 - 05:57 | 1878469 DavidPierre
DavidPierre's picture

RT's take on eviction since there is no honest reporting by the ameriKlan media:

Tue, 11/15/2011 - 13:47 | 1879594 Totentänzerlied
Totentänzerlied's picture

Democracy is never more or less than nascent totalitarianism. The only qeustions are: how long until it matures and does it veer socialist-left (communism) or socialist-right (fascism). The answers unfold, little-by-little, each and every day.


Junk away - as we all know, democracy tolerates no apostasy.

Tue, 11/15/2011 - 06:04 | 1878471 Henry Chinaski
Henry Chinaski's picture

The government bubble will pop and then it gets interesting.

Tue, 11/15/2011 - 09:02 | 1878687 CH1
CH1's picture

Yes. That's why we need to start building new systems NOW.

Tue, 11/15/2011 - 06:23 | 1878473 e-recep
e-recep's picture

After every economic collapse, conservatism and even fascism follows. People in despair will give their full support to the most credible leader. And they will turn a blind eye to all atrocities. When hunger strikes, democracy means little to the masses.

Tue, 11/15/2011 - 07:11 | 1878505 Dr. Engali
Dr. Engali's picture

Liberalism is fascism by nature. Liberalism wants to control everything through government. It's what we are currently living. Conservatism seeks to limit the power of government not increase it.

Tue, 11/15/2011 - 07:45 | 1878530 Global Hunter
Global Hunter's picture

Libertarianism comes from Liberal ideology of the late 1800s

Tue, 11/15/2011 - 08:37 | 1878616 Dr. Engali
Dr. Engali's picture

I don't care where it came from. I am well aware of that. I care what it has been morphed into. And today's liberals want to control everything.

Tue, 11/15/2011 - 08:45 | 1878643 Global Hunter
Global Hunter's picture

Sorry to hear that you should care about the true meaning of words, basic Orwell stuff really.  

Tue, 11/15/2011 - 10:40 | 1878736 Dr. Engali
Dr. Engali's picture

What is Orwellian is the fact that Libs such as yourself want to pretend that you are the libs old. When the truth is the libs of today wish to give more power to the state. How does it feel pretending to live the life of a lie ?

Tue, 11/15/2011 - 07:11 | 1878502 doomandbloom
doomandbloom's picture

its NOT a rise of state...its the rise of corporations and banks...that want us to blame the state.

As the state falls, corporations & banks will become our defacto rulers...

dont get into the trap of blaming the state...

Tue, 11/15/2011 - 07:56 | 1878538 e-recep
e-recep's picture

Yes. Througout the history the usurers were expelled from the country by the state. They are not the same thing. Today, the state of USA is a captive of the usurers. But that may change in time.

Tue, 11/15/2011 - 08:01 | 1878545 TuesdayBen
TuesdayBen's picture

Is that you, Bawney?

Tue, 11/15/2011 - 08:06 | 1878555 the tower
the tower's picture

... states are more and more ruled by banks, you are 100% right. Look at Greece and Italy, without elections the heads of state are being replaced by bankers...


Whoever is still blaming "big government" should open his eyes... 





Tue, 11/15/2011 - 09:05 | 1878692 CH1
CH1's picture

its the rise of corporations and banks...that want us to blame the state.

It's one big incestuous clan, my friend. The corps couldn't buy influence if the state wasn't selling. They ALL need to be abandoned.

Tue, 11/15/2011 - 07:52 | 1878532 morrison_s54
morrison_s54's picture

A good quick short or buy puts.

TSTC - the Most Dangerous Chinese Reverse Merger

Morrison Security Research has initiated coverage on Telestone
Technologies (Nasdaq: TSTC) with a strong sell rating and an estimated value of <$1.00.

Among all Chinese reverse mergers, Telestone probably is the darkest and most dangerour one. We have been shocked by its bold operations uncovered by our due diligence. We believe that a halt of the stock listing by the SEC is inevitable due to many disturbing red flags in the company:

Announced A Large Contract That Does Not Exist

A Possible Another Secondary Offering Is Coming

Outright Lie About Its Astonishingly Long Days of Sales Outstanding (DSO) In A SEC Filling

Uses Shareholder’s Money To Fund A US Business Entity Solely Owned By The CEO

VP of Finance, Mr. Richard Wu, Resigned After Just 3 Months On The Job Following Resignations Of Three CFO's In The Last Three Years

The full report is at:

Tue, 11/15/2011 - 07:53 | 1878533 tliberty
tliberty's picture

Another good post.

One of the things I try and make clear to people is that it is in the nature iof the State to grow. One of the chief criticisms I have had with the Ron Paul movement is the notion that the State can be shrunk. As if to say that government will suddenly one day become a humble, magnanimous organization.

The State can't do anything but become invasive. Think of it as a cancer.

Tue, 11/15/2011 - 08:30 | 1878598 Snidley Whipsnae
Snidley Whipsnae's picture

“Bureaucracy is undoubtedly the weapon and sign of a despotic government, inasmuch as it gives whatever government it serves, despotic power.”

“Limitation is essential to authority. A government is legitimate only if it is effectively limited.”

“Every doctrine to become popular, must be made superficial, exaggerated, untrue. We must always distinguish the real essence from the conveyance, especially in political economy.”

all quotes from Lord Acton, 1834 - 1902

Tue, 11/15/2011 - 07:57 | 1878541 tim73
tim73's picture

How that "just let the markets be free" worked for you, 2008 crisis ring a bell? Now you are bitching about governments wanting more control because banksters fucked up everything?!

Tue, 11/15/2011 - 08:00 | 1878544 Global Hunter
Global Hunter's picture

How the fuck were markets free in 2008? NO need to answer they weren't, I really hope that 73 isn't the year you were born in because that's the sort of comment I'd expect from a 16 year old.

Tue, 11/15/2011 - 08:21 | 1878581 tim73
tim73's picture

Typical free market fanatic, "No, it was not free ENOUGH!". Just like the other extreme end fanatics, "No, it was not communistic enough!". Investment banks almost collapsed the whole system in 2008, thanks to leveraging up to the deep space and colluding with credit ratings agency, "Yeah, this is all fine although it might smell awful! But it is all AAA, baby!"

You just do not get it, free market players will always kill the free market itself by one or two of them eventually becoming monopoly or duopoly. It is very instable system without democratic supervision.

Tue, 11/15/2011 - 08:32 | 1878594 Global Hunter
Global Hunter's picture

Centalized control and planning equals large contracts paid for with tax payers money (how large corporations grow usually) and bailouts.  You can't regulate human nature people are greedy by nature.  I prefer small scale criminals that create localized problems than global ones.  

How did the investment banks get so big?  Tax payers money

Did all the existing regulations help us in 2008?  Are the current rules been used to prosecute the real criminals?  Nope and nope.

You have a lot of learning to do, you're very naive but keep reading you may just begin to understand human nature and history a little better one day.


Tue, 11/15/2011 - 08:37 | 1878618 tim73
tim73's picture

It was the repeal of Glass–Steagall Act in 1999 that started the bubble for real in securities. Before that the Act worked just fine, the separation of commercial and investment banks. After 1999, those two banking worlds become so interwined that out of control investment bank side speculation almost collapsed the system in 2008. They literally started speculating with O-P-M (deposits) for real.

Tue, 11/15/2011 - 13:55 | 1879613 Totentänzerlied
Totentänzerlied's picture

Aha! So the regulators, good-and-honest folk all, weren't regulatory enough! Or was it the regulations, they weren't strong enough! Or maybe it was just that dang 'ol government - darn thing wasn't governmental enough!

If only we'd had more laws! More regulators! More enforcement! It's a crying shame.

And remind me, who's the fanatic?

Tue, 11/15/2011 - 08:43 | 1878634 nmewn
nmewn's picture

It was not a free market that backed the "collateral" of the GSE' was the state.

And as for "democracy"...I don't recall voting to risk the value of the medium of exchange for someones elses fun & profit or to make society at large feel better about themselves...if only for one particular moment in time.

Tue, 11/15/2011 - 08:47 | 1878648 Global Hunter
Global Hunter's picture

Tim you may want to go back and read about the closing of the gold window in 1971, the creation of the Federal Reserve in 1913 and then the American Civil War, that should get you started.  Glass-Steagal is but a small pimple in the grand scheme of things (I admit its repeal is a particularly sore and pussy pimple but a pimple nonetheless).

Tue, 11/15/2011 - 07:57 | 1878542 lunaticfringe
lunaticfringe's picture

Excellent point by tliberty. With one major flaw. Eventually that cancer kills the host body and thus the cancer dies along with it.

Tue, 11/15/2011 - 08:01 | 1878546 the tower
the tower's picture

... and the governments are run by the banks... Goldman Sachs is putting their "managers" as heads of state in Europe, one country after the other, USA is next... UBS is just jealous they weren't as smart as Goldman.... 


Seriously, who believes ANY reports written by ANY bank, corporation or government...


There is only one reality, we are ruled by BIG MONEY. Period.


Tue, 11/15/2011 - 09:09 | 1878699 CH1
CH1's picture

we are ruled by BIG MONEY. Period.

That's why it's time to start using our own money. Silver, gold, digital cash. It's all here. We only have to get serious about it.

Or, we can wait and get serious "someday".... and stay in bondage.

Tue, 11/15/2011 - 08:03 | 1878548 RoadKill
RoadKill's picture

Thats because the Sheeple like OWS - those that are proud of being in the 99% (really the bottom 50% or worse); those that would rather camp out in a turburculosis infested camp in winter, smoking pot, playing naked hacky sack and singing In drum circles then work to become the 1% - they think government is the solution. Much like the French thought you could decrease unemployment by making it illegal for the ambitious to work more then 30 hours a week. They think the government is the solution. Equality through tearing down everyone to the same level of shit.

I just hope that once the 99% have voted themselves into the indentured servitude of central planning, they will leave us a single island where the ambitious and entrepreneurial can live under their own system. Say Australia.

But I don't have much hope. Back in the 10th grade (I'm 35 now) my teacher brought in a socialist speaker to educate us about Karl Marx. I eneded up debating him for 30 min on why socialism had never succeeded IRL. His answer was that unordered for socialism to succeed 109% of the people I'n 100% of the world had to be forced to accept it. A single capitalist left unpersicuted would bring the system down.

Well F you commies. If you are going to force us into your corrupt system of central planning, just know I'm not going to hide out in the woods sitting on a stack of gold like some of the people on this board, I'm gunning for a top spot I'n the KGB

Tue, 11/15/2011 - 08:06 | 1878553 Frankie Cokeupt...
Frankie Cokeupthenozza's picture

I don't understand a fucking word in this article. Based upon an article by a bank, UBS, bemoaning gov't intrusion after the banks fucked up and got bailed out using my money. Bullshit!


Frankie Cokeupthenozza

Tue, 11/15/2011 - 08:26 | 1878589 tim73
tim73's picture

It is even worse than that. It is like a gambler losing it all in casino but then casino agrees to reload the gambler but now requires he to obey the house rules. Then the gambler start bitching, "WHAT!? You mean I cannot use my own sleeve aces or collude with my buddies at the table?! This is UNFAIR!"

Tue, 11/15/2011 - 08:33 | 1878604 Global Hunter
Global Hunter's picture

Ummm no using your analogy the gambler owns the casino.

Tue, 11/15/2011 - 09:26 | 1878724 Shizzmoney
Shizzmoney's picture

I just thank God for the complete and total worldwide economic collapse so governments won't have very much money to pay police state enforcers anymore.

Seriously, what is going to happen towards our "elite" leaders once the dollar burns to sand?  When even the banks can't pay these guys anymore.  Half of the reason why people are trying to be in the military/police is because they need jobs, and those jobs are still somewhat in demand and pay well (although even New Academies at police center nationwide have slown down as govt spending is cut).

Are the police going to follow orders are ardently as they do now, FOR FREE, especially if a citizens' militia forms and starts to shoot back? 

I know once shit hits the fan, my dad (BPD) ain't dealing with the mess these assholes created and ain't going down with the ship; we are going up North to VT with our guns+gold.

Tue, 11/15/2011 - 09:34 | 1878741 Chump
Chump's picture


Tue, 11/15/2011 - 09:34 | 1878744 Chump
Chump's picture

"If you want a picture of the future, imagine a boot stamping on a human face -- forever."

Tue, 11/15/2011 - 09:37 | 1878749 El Viejo
El Viejo's picture

Luke 19:13 KJV

"Occupy till I come."


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