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Page added on July 19, 2015
It All Falls Apart
Happy families are all alike; every unhappy family is unhappy in its own way.
— Leo Tolstoy, ‘Anna Karenina’
It is hard to keep up with events.
The current, non-Varoufakis Greek government has surrendered to German austerity demands. How this turns out is anyone’s guess … except for the big picture. At the beginning of the day, Greece and the rest of Europe were broke. At the end of the day, regardless of policy or direction, Europa and Greece will still be broke.
Figure 1: US total credit market liabilities compared to US GDP, chart by @FRED. At the foundation of the crisis in Europe is a false narrative; that countries- or firms can retire their debts by way of labor. Those who do not do so are lazy or thieves. This US chart indicates that economic activity (GDP) by itself cannot retire the debts that are taken on to subsidize it. Maturing debts- plus accrued interest are rolled over into larger loans, debts are diluted over time — inflation — but never repaid.
Greece and the European Union are unhappy families right now but their misery is common. Greeks cannot repay … neither can the Spanish, Irish or Italians. Argentines cannot pay, neither can Puerto Ricans … or Chinese manufacturers. Energy companies whether in Canada, Australia, North Dakota or Brazil cannot pay, neither can citizens/governments/firms in Venezuela, Egypt, Ukraine, etc. All are broke, their pockets are turned out; unhappiness — along with total debt — expands exponentially.
The problem really isn’t so much a credit shortage but energy- and resource crisis coupled with political denial. Energy crisis does not take the form of physical shortages; there are no gas lines, coupon rationing or odd-even days. Instead, oil is depleted and credit breaks down at the margins … Since 1973, world governments have erected every sort of fuel price hedge, all of them make use of credit in some form or other to allocate fuel. What is underway the credit allocation taken to its logical conclusion, where for increasing numbers there is no more credit: ‘Conservation by Other MeansTM
The shortage of fuel => higher prices due to supply and demand => greater need for loans as the use of the fuel is non-remunerative => the combined cost of fuel + credit becomes breaking => insolvent customers can no longer borrow or repay => as credit unravels the fuel bid declines. Within this dynamic, the two larger themes are energy deflation and dollar preference:
– Energy deflation; which occurs when the real price of fuel — its price relative to other goods and services — remains unaffordable even as the nominal price declines.
– Currency preference; takes hold when one currency such as the dollar becomes a proxy for fuel rather than a proxy for commerce: both credit and foreign exchange are discounted against preferred currency, which is hoarded.
During energy deflation, fuel price declines become self-reinforcing: lower prices lead to shortages that adversely affect end users who are unable buy … this leads to even lower prices and more shortages in a vicious cycle. At the same time, the absence of solvent customers offers the appearance of a fuel supply glut. When one currency becomes dominant, fuel becomes scarce due to lack of investment. The price then falls to reflect actual return on use of fuel rather than false returns offered by way of credit — which vanishes. Because the actual return on fuel use is small- or negative, the ultimate fuel price is very low.
As with debt-deflation, the energy scarcity premium is levied against the economy as a whole, it can take any form including decreased employment or solvency, diminished reserve holdings and tax revenues, etc. Keep in mind, when fuel becomes unavailable due to its unaffordability it tends to remain so indefinitely. Fuel shortages do not make the oil users wealthier- or more credit worthy, the driller does not become wealthier by way of reduced output, either.
In order to promote commerce, currency is continually depreciated … as an outgrowth of policy- credit expansion. Because money is continually worth less, the incentive exists for citizens to spend it rather than hold it. Money becomes a proxy for commerce which is always worth more than money is by itself.
Trend price declines in fuel markets indicate currency appreciation; at some point the money as a proxy for fuel is worth more than anything that can be done with the fuel. As a component of energy deflation, currency preference is self-amplifying as commerce is starved of funds and worth less over time compared to holding (a particular kind of) money … which is always good for that last, emergency tankful of gas.
Leadership refuses to discuss energy and the ongoing consequences of wasting energy for lifestyle purposes. It isn’t just Europe: differences between the euro, yen, sterling, yuan and dollar currencies are minuscule. Euro debts are no different from the debts of the others, European waste is no different from the waste of others. There is nothing special about the euro other than a defective, failure-prone managing regime. Debt and waste ultimately condemns all currencies as all of them represent the elusive promises of a (low-cost) fill-up at the pump …
Energy deflation and currency preference are headwinds being faced by Greece and the other countries in the eurozone. But that’s not all. European lenders and their clients along with conniving politicians have erected a conduit scheme that is right now breaking down under the weight of its own costs.
Figure 2: The euro is a conduit scheme whereby contributors and the promoters/final recipients work together to take advantage of the conduits — the persons in the middle who are the promoters’ unwitting victims.
Conduit schemes are similar to Ponzis in that recipients gain unearned funds from others by guile and misrepresentation. Whereas Ponzis involve the transfer of savings/’investment funds’, conduits are debt transfer machines. Loans flow from contributors (banks) to recipients/beneficiaries who are often investors or clients of the same banks. The conduits are ordinary citizens who are offered vague abstractions with negligible- or negative worth that nevertheless are part of the ongoing progress sales’ pitch. The conduits are on the hook for the ongoing cost of the borrowed funds; fees, interest costs and repayment of principal: it’s his debt, someone else’s benefit.
Conduit schemes are highly leveraged. Because they are criminal enterprises there is little relationship- and much less concern regarding the ballooning cost of the funds lent to the schemes’ beneficiaries … or the conduits’ ability to meet these costs. As such, the scheme falls apart when conduits are unable to service the beneficiaries’ debts.
Conduit schemes have certain characteristics:
– Conduits are coercive, gate-keeping regimes unlike Ponzis which require voluntary participation. Whether the participant borrows from the contributor or not, the costs to access the scheme’s services are set by the scheme itself, the conduit has no ‘bargaining power’.
– The benefit promised to the conduit is an abstraction: a ‘common good’ such as ‘European Unity’ … or a bailout. The abstract goods are unrelated to the actual funds-transfer.
– The transfer from the contributor to the recipient is always money, in staggeringly large amounts.
– The contributors are always entities with large capacity to generate funds; finance. The recipients are manufacturers, banking system creditors and tycoons.
– Both lender-contributors and recipients are aware of the scheme at hand and both actively promote it: falsely to the conduit (and the public), accurately to each other.
– The recipients who are part of the scam have no investment ‘method’, they simply accept the free money offered in the conduit’s name.
– The hapless conduit is incapable of acting in any interest other than those of the contributor/recipient. Taking on loans and accompanying repayment obligations are conditions of using the system in question! The process is self-limiting: those unwilling or unable to act in the scam promoter’s interest exclude themselves. The recipients gain enormous amounts of money, what the conduits receive has no worth outside of what they brought to the scam in the first place. Like the rest of the world’s industrial economy, the product of the eurozone is waste.
Greece has been rendered insolvent by the euro-scheme’s cost and its fantasy product. Every other EU country faces the same consequences because the relationship between sovereigns-and-scheme is no different from Greece. When enough conduits become insolvent, the euro regime will fall apart. Bailouts fail because they only add to the conduits’ burden.
Best thing to do is to walk away from the scheme and its false promises, to start thinking and acting independently. If enough people escape the outcome is the same as insolvency, the conduit racket unravels. Every ‘investment’ scheme requires a constant flow of new funds/credit; conduit schemes require gullible recruits willing to accept the scheme’s carrying costs. The euro racket insists its product has value … the Europeans can see the absence of value for themselves and come to their own conclusions.
Exiting the euro or introducing alternative currency.
– Because exit by any conduit would require beneficiaries to retire and service their own debts, almost every form of coercion is brought to bear to enforce the scheme. Coercion vs Greece takes the form of a ‘bankers’ strike’ depriving Greece of liquidity. Without swift, sensible action the Greek, and European economies will entirely collapse.
– The introduction of an alternative or parallel currency (unit of account) would bypass the conduit by allowing for internal Greek commerce. Information on an alternative and particulars can be found in papers by Trond Andresen – Robert W. Parenteau as well as Alan Harvey.
Alexis Tsipras; “Greece does not have the required currency reserves to support a return to the drachma.” That is, Greece cannot borrow, under any debt-money regime the country would still require external credit as it cannot provide for itself. Meanwhile, the minutes tick by, the Greek financial position deteriorates as banks remain closed and the government continues to miss interest payments.
On Greece issuing greenback euros.
Figure 3: Chart by Deutsche Bank/Zero Hedge with addendum by Steve Ludlum (2015). Note outcomes in Greece and euro area. Original chart does not show introduction of Greek fiat ‘Greenback’ euros.
– In a fiat scheme, the Greek government would issue funds denominated in euros to repay debts to Greek businesses and banks as well as individuals. This ‘money’ would have no liability attached, it is not debt-money, it would not be loaned into existence. A notable example of sovereign issue money is US Demand Notes introduced during the Civil War during the Lincoln administration by Edmund Dick Taylor. The notes were necessary because big Philadelphia- and New York banks would not lend the the government at reasonable rates.
– The current government in Greece has played into the hands of forces intent on consuming it as if Greece was itself a form of capital. Greece has become pathetic: even as it defaults it begs for more loans. Greece needs to do for itself rather than beg. The Greek government can do so by issuing non-liability fiat euros — Greenbacks — and use them to retire euro denominated obligations on a fixed schedule.
– Payments would be made electronically, out of ‘thin air’, the same way loans are made by banks … out of thin air. Payments would be made both inside- and outside the country.
– Issuance of drachmas or any parallel currency would still require Greek repayment of €320+ billion of euro-denominated debts in a state where Greece could not hope to borrow. Greenbacks would offer means for repayment … possibly even across Europe. Whereas repudiation and insolvency will break down the euro conduit scheme; issuance of electronic greenbacks would render the scheme irrelevant. Euros are fungible: Cyprus notwithstanding, each euro is the same as all others. Fiat issuance by a government is the same as fiat issuance by a private sector bank, however, there is no liability to the government issue. The government can issue without digging itself deeper into the debt hole.
– Loans made to Greece are simply issued by banks as credits on a spreadsheet. This ‘bank money’ does not exist until a loan is made. The gain from lending is the requirement on the part of the borrower to repay with money that is more costly to him than the loan is to the lender. Bank money costs the lender almost nothing to create as it requires only keyboard entries. The borrower must repay with circulating money; he cannot create repayment on his keyboard but must beg, steal or more likely borrow repayment- or have it borrowed by others in his name (bailout). Whereas interest cost tends to be a small fixed percentage of the principal payable over time, the expense of circulating money is determined by its availability in the marketplace, by supply and demand. When circulating money is scarce the real worth of repayment can be much greater than the nominal balance due, yet this is invariably when the demand to repay is fiercest, as during a margin call. If the loan is secured and the borrower cannot repay, he must surrender collateral along with other rights. These are always worth more than a keyboard entry.
The point of greenback euros is to give the government the ability to make keyboard repayments, to pay lenders ‘in kind’.
– Money created by lending is extinguished when the loan is repaid. What makes up the supply of circulating money is unpaid debts. Ironically, these are funds that are out of circulation, largely overseas or hoarded. When the sovereign issues fiat to retire debts, the borrowers’ liability is extinguished. There is no net increase in the amount of funds in circulation, which can only occur if funds are repatriated or dis-hoarded which would only take place if there is demand for them that the sovereign could not satisfy.
– By creating ‘greenback’ euros, the Greek government can recapitalize its banks directly, rather than by bailing in depositors. Over time, the flow of liquidity would temper the shortage of funds outside of Greece. A Greek repayment agency would act as ‘lender of last resort’ in place of- or alongside the (worthless) ECB.
– Issuing greenback euros would re-balance the relationship between banks and sovereigns. Creditors have gained power at the expense of sovereigns and the citizens. Greenback euros would represent power to render irrelevant the private creditors and their schemes.
– Location, location, location: Greece will always be a part of Europe. Greek exports and tourism will bring in euros and other hard currencies. Foreign exchange can be leveraged or merged with greenback issue. What would keep fiat issue local is inefficiencies of Greek transfer mechanism. Fiat euros would be more effective if issued by Italy or another, larger European country.
– The euro is the official currency of Greece, it has the same natural right to issue as does a private — crooked — bank in Frankfurt.
– External lenders would not be able to hold countries hostage by withholding funds, should they do so, the government would issue in the banks’ place.
– Whereas drachmas or a parallel currency would allow Greece to leverage its euro purchasing power by way of foreign exchange, fiat greenback euros would render such leverage unnecessary. More on this later …
– Article 124 of the Lisbon Treaty does not specifically prohibit greenback euros. The Greek government would have to repeal the (pro-banking) 1927 Statute of the Bank of Greece which prohibits the government from issuing ‘money’ of any kind.
Any fiat regime would require stringent energy conservation as the external flows of borrowed euros to purchase fuel are what bankrupted the Continent in the first place.
It’s the economy energy, stupid!
– The current bailout proposal does not address any of the eurozone structural defects particularly its fuel waste and diminishing purchasing power.
– Spain, Portugal, Ireland and Italy are in the same situation as Greece. What befalls Greece will befall them. They are conduits, their debts cannot be retired, the waste of fuel-capital for lifestyle purposes provides no means to do so.
– The foregoing countries’ debts are currently assets to German firms, the benefits of the European conduit. When the debts are unpaid these assets become instant liabilities, when that occurs Germany must exit the euro or follow the others into destitution.
– Austerity is a permanent condition arising from the ongoing annihilation of irreplaceable capital. Managers need to address the resource issue directly rather than pretending it does not exist. The euro conduit scheme turns out to be a ‘blunt instrument with which to ration capital. Ironically, so also is a breakdown of the scheme! Adjustments to interest rates or bailouts will never return Europe to the ‘good old days’ of American suburban-style waste. Modernity advertises itself as a provider of abundance and prosperity, in our onrushing ‘Age of Less’ modernity becomes increasingly a harsh form of rationing and social control. What is poorly understood is the inevitability of this process.
What ties energy deflation, conduit schemes and currency preference together is credit/loans and debt. The banks have a death grip on us and our life-support system. The mechanism of funds’ dilution as debt repayment is incentive to strip-mine our entire capital base. The credit regime is falling apart under the weight of its own costs, not just in Europe. Government issue money ends a monopoly over a vital private good so that it becomes a public good, in this way the power of the banks to run our affairs is reduced. As a necessary component of this effort, the establishment must hold the financiers accountable for their crimes and negligence. The present conditions and schemes cannot be endured any longer. If the establishment refuses to act the citizens will take matters into their own hands, there will be revolutions.
Outmoded sovereignty- and policy fantasies must be thrown into the trash. The time for posturing is past, nobody is in a separate boat, there is not one labeled for Germans or Italians or ‘others only’. Like it or not every European country is a part of the world, each must carry its own burden of responsibility, which some countries such as Germany currently refuses to do.
Germany — and the rest of the world — must do with its auto tycoons what Germany has done with its nuclear variety and put them out of business. No country or economist acknowledges the ongoing drain of European credit overseas in an endless stream for petroleum energy to run the Continent’s toys. Running out is running out: as the EU runs out of credit, it runs out of petroleum at the same time … once energy deflation takes hold … it is permanent.
Voluntary conservation by way of policy is ‘friendlier’ than the alternative. Left to the status quo in Europe is nationalism and war.
Conservation by other means = Syria.
26 Comments on "It All Falls Apart"
penury on Sun, 19th Jul 2015 9:23 am
I am afraid the short edition is “we are all” hosed.
Davy on Sun, 19th Jul 2015 9:49 am
Debt is a draw on the future. That does not work with a growing population with a shrinking resource base. Debt is a means by which legalized theft can occur. Suckers are born everyday. Debt is a wholesome way to gamble. How many Chinese dirt poor farms thought they were on the road to prosperity by a system that promoted participation as good for the nation.
Debt is not bad in and of itself. Debt has a good side when employed properly and modestly. We are the civilization we are today because of debt. When the bad side of human nature get involved that is when we see the bad side of debt. In an age of limits and complexity debt becomes a vehicle for the worst of humanity to manifest.
peakyeast on Sun, 19th Jul 2015 10:02 am
Among my greatest fears are that we will solve the energy problem… Thus really enabling us to destroy all other higher lifeforms for good and rendering the planet at least partly inhabitable.
With great power follows great responsibility – and great wisdom is needed. Humanity has neither on a level higher than the personal.
joe on Sun, 19th Jul 2015 10:14 am
There is simply no way that the banksters will allow the euro to split in any way. The real bit of trickery is to educate the next two or three generations with the ideas of ‘europeaness’ the Euro was supposed to be a major factor in getting this started. They want a common language and a common heritage. It took 150 years of nationalism to undo 1000 years of ‘christendom’, the old common heritage. European elites don’t know what they want, except that they want money, culture and history comes second to that. Religion is but a tool in their hand. Napoleon Bonaparte once wrote ‘If France was a Jewish state, I would restore the Temple of Solomon’. When Europe becomes mainly Islamic then watch out Jerusalem, a new Crusade will be arriving. If we don’t learn from history, we are doomed to repeat it.
joe on Sun, 19th Jul 2015 10:19 am
Btw the banksters see debt as the answer, not the cause of their problems. As long as they grow gdp then they can roll old debts into new ones and skim the interest as profit. As we reach the limits of growth, the Marxist view of Capitalism becomes more relevant. As long as we have a few more Chinas and a few more Saudis then growth will get us out of trouble, if not….
Davy on Sun, 19th Jul 2015 10:29 am
Joe, banksters are thieves I agree but you are putting too much into their control of the game. A game of life which is far above anyone’s control being self organizing and irreversible. They are just as vulnerable and naked as the rest of us and then some. Their billions are an illusion and reflection of a system that is nothing more than an abstraction of our natural system. Conspiracies are so blasé because they are never clever enough.
joe on Sun, 19th Jul 2015 10:44 am
Sure they are vulnerable, but their egos don’t support that. In the end they own the guys who own the cops and armies. It’s that simple. When they can’t control them then they are in trouble just like every other empire in history, but right now, they seem strong. The reason we go along with this is because most of us get enough resources and peace to live our lives. That’s the crux of the social contract.
Northwest Resident on Sun, 19th Jul 2015 10:59 am
Davy — You have to admit, though, that “somebody” is doing a damn good job of monitoring and manipulating the world’s major stock markets. I realize this is a conspiracy theory, but it sure seems to me that there is a high level of coordination on the central bank and stock market level. The banksters and the plunge protection hit squads don’t control everything, that’s true, but for now at least they do seem to control a lot. Not that they can maintain that control for much longer, but I’m sure they know that and are taking actions based on that knowledge. Yeah, big conspiracy theory, but the level and degree of market manipulation just seems too purposeful to be random every-man-for-himself, especially when we see the constant barrage of propaganda from all directions all playing pretty much off the same sheet of music. If there isn’t centralized control behind all that we see going on, to a greater or lesser extent, then I’ll eat my hat!
Rodster on Sun, 19th Jul 2015 11:49 am
It will ALL fall apart faster now that TPTB including climate scientist are admitting to Geoengineering and a fallback plan to combat global warming. That will have HUGE consequences for the planet and humanity.
Davy on Sun, 19th Jul 2015 11:59 am
NR, why does market manipulation have to be a conspiracy? It is the last ditch effort to keep this whole rocket ship we call modern BAU from flying apart. It is a failure of traditional politics, economics, and social fabric. It is failure at all levels because it is overshhoot in the age of limits.
This is the reason Joe is misguided with anger. Joe come on, what is the alternative? Do you really think you can eliminate the banksters and destroy the empires and still keep things rolling happily along? Good luck with that Joe. As much as you hate these evil ones there are no alternatives. This system is irreversibly and will fail with “any” significant and major change.
We are an ecosystem that has been extended far beyond its equilibrium. Joe, 100 years ago I would agree. You and I could be at the French Revolution and we could see revolutionary change. No more my friend. We are primed for collpase. How soon do you want it that is the only question.
BC on Sun, 19th Jul 2015 12:42 pm
Davy, NWR, and all, it’s not a “conspiracy” per se but the way the system now works.
I have more than 25 years of experience in economic and financial markets research, strategic investment advisory, risk analysis and management, investment, and trading domestically and abroad. I can personally attest to the following situation.
The US equity market is being “managed” by the largest US, UK, European, and Asian TBTE banks with the assistance of no-cost reserves from the Fed (that they own) via their offshore shadow banking pass-through entities in the Caribbean banking centers, Channel Islands, Hong Kong, and Singapore, primarily.
Using what might be described as “unilateral netting” of derivatives (there is no longer as much bilateral or multilateral netting of counterparty positions as once was the norm, as they are now essentially one entity impossibly levered), they lever equity index futures 50-80:1 at this point (vs. 25-30:1 in 2006-08 before the debt-deflationary collapse) via Treasury holdings and using high-frequency trading increasingly overnight before the NY open to front run and thus “guide” the market based on the news.
The objective is to keep the equity market rising with the 200-day moving average indefinitely (or until they decide for whatever reason to pull the plug as they did in 2008 and 2001) so as to permit increasing corporate and public debt to GDP and thus prevent a debt-deflationary contraction like the 1930s.
IOW, equity and corporate debt/asset bubbles are now a kind of unspoken substitute (dubious “wealth effect”) for Keynesian fiscal policy stimulus due to the excessive public debt to GDP constraining deficit spending.
The Fed’s job is to promote the process via liquidity and cheerleading the equity market and economy by so-called “forward guidance” with the objective of discouraging a deflationary mindset from taking hold among firms and households, as occurred in the 1930s and in Japan since the late 1990s.
This situation is largely unknown among the mass public, and for obvious reasons. Matt Taibbi got VERY CLOSE to the story a few years ago but was “instructed” to back off or face the consequences. He has a spouse (low profile for good reasons) and a lot to lose personally and professionally were he to doggedly pursue the facts and expose the process and principal players.
The resulting situation today is a kind of militarist-imperialist, rentier-socialist corporate-statism. We have central bankster central planning and running political cover for the TBTE banks’ license to steal with inpunity and in perpetuity.
A global bear market and recession would likely severely harm, if not risk destroying, the credibility and legitimacy of the Fed, the bankster oligarchs, and the rentier elite top 0.001-1% (and the gov’t that they own). As such, they will do anything and everything to prevent a bear market and a reported recession; that is, unless they deem it necessary to pull the plug and profit from same only to justify more bailouts, Fed printing, and further consolidation of their power in a time of crisis.
That I have personal knowledge of the situation means that there are many thousands to tens of thousands who also know, and who know much more than I do, and they are not talking and likely never will.
It’s not so much a conspiracy but self-preservation, will to power, and the prerogative of ultimate power and desire for control.
Davy on Sun, 19th Jul 2015 1:43 pm
BC, very interesting and enlightening. I will throw some cold water on the amount of power they “global ruling elite” have. They are networked but much is beyond any network. They can message markets, economic policy and political policy but their control is limited and probably short lived. They have used most of their ammunition up. At some point no amount of networked firepower can steer their ship. This is a sinking ship the issue is when: I do appreciate your personal insight BC.
apneaman on Sun, 19th Jul 2015 3:00 pm
A Cynical Theory of Power and Organizational Dynamics
http://howtosavetheworld.ca/2015/07/16/a-cynical-guide-to-power-and-organizational-dynamics/
Northwest Resident on Sun, 19th Jul 2015 4:54 pm
BC, like Davy said, very interesting and enlightening. I do not doubt any of what you said, and your assertions all ring true with what I see and learn from the many sources of financial news and analysis that I consume. That central banker “central planning”, combined with the hidden nature of what they do and their efforts to not only keep it under wraps but to generate so much “noise” and misdirection through the MSM and political megaphones that the vast majority of people remain oblivious to what they’re up to, is what I would call a “conspiracy”. Their motives are to profit, in secret, at others’ expense, through tricks and skullduggery of all kinds — any maybe in a roundabout way to keep this severely dysfunctional version of civilization, of which they have become the masters and the primary beneficiaries, going to the bitter end — you know, so the little people don’t suffer (hahahaha). If it isn’t a conspiracy, then it is for damn sure at least a scam in which they are all intricately involved!
BC on Sun, 19th Jul 2015 6:09 pm
Davy, yes, I take your point about the futility of managing a sinking ship, if you will, but I have no doubt that they know this and have all manner of contingencies and tricks up their sleeves to shift the costs of collapse to everyone else.
And, speaking of tricks and scams, NWR, fiat debt-money and fractional reserve banking are indeed part of a colossal scam perpetrated on humanity for decades.
In fact, repeating myself, total annual net flows to the financial sector and its owners are now equal to total US annual GDP output, meaning that all value-added output is pledged to, and thus claimed by, the top 0.001-1% owners of the claims in perpetuity.
Put another way, “our money” is not really “our money” (or any debt-money “asset” denominated in fiat digital debt-money dollar claims) but that of the top 0.001-1% who have the mathematical and legal claim on the imputed compounding interest accruing on “our money” in perpetuity. We merely borrow the debt-money at compounding interest at an effective infinite term and circulate what remains after taxes and debt service (“rentier taxes”) for subsistence; that is, if we’re lucky.
So, yes, the system is a MASSIVE scam perpetrated right in front of our collective eyes wide shut.
BC on Sun, 19th Jul 2015 6:11 pm
apneaman, thanks. The cynical guide to power and (hierarchical) organizational power is quite apt, even brilliant.
Makati1 on Sun, 19th Jul 2015 7:42 pm
The end game is TOTAL control by the banksters/elite. That requires the leveling of EVERYONE, not just a few 3rd world countries. Currently that crusade is being run by the Empire of Chaos, but it too must be brought down to allow a one world government openly run by the elite.
If you haven’t noticed, there is a war on the financial level that is escalating into other areas. TPTB see the end coming as their energy/money supply contracts and climate change brings new challenges that they cannot control. They want to own it all before that happens.
It is my concern that they will panic at the end and start a shooting world war as a last resort. We all know, deep down, that they will use nukes. They have already stated that openly. Insanity does not think rationally. If they believe they and theirs can survive, they will do it. Meanwhile, the sheeple lay back and allow it all to happen because they don’t want to see the truth and have been brainwashed and dumbed down to the level of sheep.
“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda – 1928″
freak on Sun, 19th Jul 2015 7:54 pm
Very few things in our world are exactly what they seem. That which is painted as righteous is often evil. If you are only willing to look only at the immediate surface of a thing you will never understand the content of the thing. I am continually astonished at the refusal of many otherwise intelligent people to consider the evidence or even the possibility that there is in reality no fundamental political or philosophical conflict between any of the power brokers whether from the East or West. The truth is they are all working toward the same goal and ultimately benefit from an engineered and theatrical display of international brinksmanship.
Rodster on Sun, 19th Jul 2015 8:42 pm
“The end game is TOTAL control by the banksters/elite. That requires the leveling of EVERYONE, not just a few 3rd world countries. Currently that crusade is being run by the Empire of Chaos, but it too must be brought down to allow a one world government openly run by the elite.”
That is the end game and everyone is in on it from West to East.
BC on Sun, 19th Jul 2015 8:51 pm
Agreed about the end game, gents, and I suspect the outcome prescribed by the rentier elites for most of us is utterly unspeakable on this forum or anywhere.
“Disaster capitalism” and “Empire of Chaos” (Ordo Ab Chao) is the normative zeitgeist of the Anglo-American and European rentier elite and their end game planned for the rest of us human apes on a finite spherical planet, i.e., “Spaceship Earth”.
apneaman on Sun, 19th Jul 2015 8:54 pm
Sunday, July 19, 2015
Stranded Expectations
“Greece is retracing its steps back through the ascent of Western Civilization”
“Today Greece is the European Union’s current favorite whipping boy – the example to be made in order to keep all the other Ponzi’d patsies in line. It is no small irony that despite street protest bringing a new, defiant Syriza (“from the roots”) government to Athens and a resounding No! Icelandic-style referendum placing Greece in technical default, the realities of needing a cash drip to keep pensioners breathing and buses running have given the upper hand to German, French and British banksters.
The irony is compounded when one glances at the score sheet for total debt to GDP, with China at 250%, Germany 302%, Greece 353%, USA 370%, Britain 546%, Japan 646% and Ireland at an enchanted 1,000%.”
http://peaksurfer.blogspot.ca/2015/07/stranded-expectations.html
Makati1 on Sun, 19th Jul 2015 8:55 pm
freak and Rodster, at least you have stepped back from the trees and see the forest. The media today want the sheeple to only look at individual trees and not the whole forest. It is easier to confuse/control you that way.
The big picture is more and more obvious as time goes on, but you have to take time to think about how all of the parts work together. Some here do, but most do not. They are more interested in their particular ‘tree fetish’.
BC on Sun, 19th Jul 2015 9:05 pm
Empire, balls to the wall, a new world comin’, decadence, pain, pandemic, stampede . . .
I think that describes our collective plight rather well, unfortunately (or not?).
“Everybody’s on probation,
Close to the end of the line,
Subject to cancellation,
Livin’ on borrowed time.”
https://www.youtube.com/watch?v=629ZUKF9zPc
https://www.youtube.com/watch?v=B_3TlrZLpQ0
https://www.youtube.com/watch?v=req-oDf2ZRc
https://www.youtube.com/watch?v=FMUf2qmSzvE
https://www.youtube.com/watch?v=ZJxS1Bpnkl4
https://www.youtube.com/watch?v=qbUXHTWZ9vk
https://www.youtube.com/watch?v=pLtwWsLgaz8
https://www.youtube.com/watch?v=f25QGybVmao
https://www.youtube.com/watch?v=7VVnJ61TrTU
BC on Sun, 19th Jul 2015 9:49 pm
Makati1, no doubt you are aware that the Anglo-American and European owners of the Rockefeller-Rothschild int’l banking syndicate long ago decided as part of “The Plan” (Transatlantic and Transpacific Federation, ex China, and Fortress Europa) that human ape mass die-off will occur by no later than the 2030s-40s, leaving the Elysium-like “Chosen” as remnant beneficiaries of “Heaven on Earth”.
Jealous, fearful, violent, genocidal tribal desert sky gods still determine the fate of human apes on our finite, spherical, warm, wet planet orbiting an insignificant star far, far away from the center of the known universe (multi-verses).
Where are our extraterrestrial brother and sister saviors from the Rings of Uranus when we really need them?!
Are human apes a virus or cancer to our species?
Is it not evolutionarily suggestive that the likely remnant species has by now created, i.e., developed, an immunity to the toxic effects of the majority of us 7 billion human ape pathogenic cells?
If so, Nature needs the vast majority of us as nothing more (or less) than fertilizer for the successor life, whichever form(s) it take(s).
Enlightened elites worthy of such merit from us and their remnant peers and successor generations would thus devise an efficient, relatively painless exit for the vast majority of us human apes.
Makati1 on Sun, 19th Jul 2015 10:50 pm
BC, I’m quite aware of the plan. Have been for a long time. Just as trillions of small fish and sea creatures dies to make oil, and trillions of plants and trees died to make coal, we are probably destined to support some new species in the next few million years.
A six foot roach? Two ton rats? Look at the species conditioned for survival today and you will see that homo sapiens is NOT one of them. The common house cat is better at survival than we are. WE are weak monkeys, nothing more.
With another 5-7 billion years before the sun goes nova, there will likely be many different ecosystems evolve. Wish I could see it all, but…
Boat on Sun, 19th Jul 2015 10:56 pm
Thanks for making the process relatively painless. Will the extraterrestrial have extra arms for faster and more efficiently administering poison during the blood letting process for getting pills intended to keep our fat asses from dying from diabetes?