Rantings on Markets, Economics and Business Strategy

Obama Scandals, Financial Markets & 2013 Debt Default/Monetization Update

noreply@blogger.com (TimingLogic) — Sat, 25 May 2013 21:17:00 +0000

I want to make some remarks about something I have written about quite a few times over the years. That is, that 2013 is the year that I believe the U.S. could either default on or monetize some of its debt. Well, 2013 is here so it’s time for an update. Now, there is going to be some sidebar discussions about coterminous and tightly coupled issues and a few reasonably short rantings in this post but they are somewhat necessary given the intent of this post.

I suspect the recent scandals of the Obama administration are tied directly into the White House. Whether politicians can conjure up plausible deniability as was the case under Iran Contra or not, no one knows right now. But midlevel bureaucrats or government workers don’t generally use public resources to target American citizens for political purposes or have a reason to lie about the incompetent Benghazi mess and issue conjured up political fatwas as cover-up or having ardent Obama political supporters use the Department of Justice’s resources to illegally tap cell phones of journalists who are critical of potential White House crimes and substantial incompetence. The mainstream media’s political bias in one direction or another to support its respective political “team” or defeat the other “team” is simply more of the endless insanity of political theater. These are real scandals that involve potentially very serious crimes.

This type of behavior is typical of a day in the life of a politician. Pass legislation or sign unconstitutional presidential orders, obviously with special interests in mind, that f**ks up the economy or other people’s lives. Then when the shit hits the fan due to the unintended consequences of that legislation, pass new legislation in an attempt to fix the mess created by politicians in the first place. Then when that shit hits the fan due to the unintended consequences of passing legislation to fix the original unintended consequences, pass more legislation with even more unintended consequences ………… and on and on and on. Eventually, you get to the point where we have over one million pages of codified legalese code that makes lawmakers and the legal community rich because no one can breathe with hiring an attorney. At that point the system is so f**ked up, the only way to fix anything is to hit reset and wipe the slate clean. Of course, hitting reset isn’t done by choice but when this massive corruption and political megalomania causes the system to implode. (This is also how central bankers work in their illuminated mindset.) That is really how our economy and society have become such a clusterf**k. Politicians are almost always some of the least capable people in society with the most obtuse megalomania. They are the first to tell us how they are going to “fix” our lives that they f**ked up in the first place. I think it’s highly plausible the Republican-controlled House will eventually bring articles of impeachment against Obama before his second term ends. Who knows if he will actually be impeached. Of course, the reality is the Republican-controlled House should be impeached too. Well, and the Senate and the corporate Supreme Court.

The great irony in these recent debacles is that the most impeachable offenses by politicians are ignored because both parties are complicit in substantial impeachable corruption, treason, high crimes & misdemeanors, war crimes, bribery, financial fraud, crimes against humanity, crimes against the American people, incompetence (which is an impeachable offense) etc. Impeaching Democrats over these acts would also involve impeaching the far right wing of the fascist Democrat-Republican Party, the Republicans themselves and vice versa. So, instead the Omerta culture of secrecy and corruption that defines politics, in order to cover both party’s asses for the real crimes, keeps most horrendous impeachable offenses from actually being investigated. And who knows what we don’t know? As I have said numerous times on here, the political corruption is almost certainly far, far worse than anyone could ever imagine. And I, for one, can imagine a lot. I can imagine the CIA might be involved in much of these scandals given how Obama has granted the CIA unprecedented powers in his unconstitutional shadow wars and black operations. And anyone who questions these policies, such as Tea Party activists, could become their targets. Of course, as all politicians can’t wait to tell us, Jesus of Nazareth and his pacifist teachings guide them in their policies of debt slavery, war, murder, spying and mayhem. I don’t trust anything any politician ever says any more than I would trust Ted Bundy or John Wayne Gacy. I’ll give some the benefit of the doubt if I can corroborate reality. Obama isn’t one I give the benefit of the doubt.

For many years now, I have pointed to three future dates that I am watching regarding the back end of this storm. Those are 2013, 2016 and 2022. Well, 2013 is now here. In my prior posts on a 2013 debt crisis, I have noted that default(likely selective foreign holdings) would be a willful act of belligerence.

So, why this post right now? Well, two major developments have happened recently as it pertains to potential monetization or default. And regardless of the message for public consumption, if this would ever come to pass, there almost certainly would be nontransparent political strategy involved.

The first development is that the House Republicans passed a bill prioritizing debts in anticipation of a possible debt default. To my knowledge, this is the first time in U.S. history something like this has ever happened. And this prioritization ties in directly with my remarks leading up to 2013 that our debt default could be focused on foreign holders including China. Prioritization is pointing to that distinct possibility. Obviously this would be a premeditated act of belligerence. Loot China, extort massive profits, devastate their environment, manipulate commodity prices used to create the China bubble and extort massive profits, then default on their U.S. debt. What comes after that? Tariffs on Chinese goods. Look, for many years I’ve essentially said a trade war or even outright war is highly possible between the U.S. and China and I’ve posted some very lengthy and detailed analyses of how this will likely unfold. We already see it today in Iran and Africa where China and the U.S. are involved in attempted to outdo each other to control natural resources and potential future consumers for capital markets, the control of oil, the control over the currency used for global trade, etc. China’s communist dictatorship is wildly corrupt and evil. Those who mock the U.S. and somehow view China as some docile giant are truly fools. This is a nation that has murdered 70 million of its citizens, has death vans that are sent around the nation to murder people inside of vans made for this purpose and uses the force of the state for genocide of untold tens or maybe even hundreds of millions of unwanted children. Then there is the fact that China has literally stolen untold numbers of military technology secrets from the U.S. and Europe as well as untold technology from American companies. That we have a Bill Clinton and Al Gore created and Wall Street endorsed “free” trade agreement with this nation is effing ludicrous. It’s much more than ludicrous. It’s as Cicero noted in my last post.

The second development is that global markets had the largest intraday reversal since 2012 on Wednesday. And while Bernanke was testifying at that time, IRS officials were also testifying. And the buzz in the trader community is that it was the IRS 5th amendment plea that caused the market to reverse. The reason this testimony was so important in financial markets is that these scandals are starting to look serious enough that there is a growing concern a debt compromise or austerity measures will not be met this year. In other words, there is starting to be conscious recognition that a debt default might actually happen. The U.S. has never officially defaulted on its debt and a conscious recognition it actually might do so is no small development. (Some people have cited U.S. actions in the past that were never official defaults. One is the devaluation of the dollar during the Great Depression. Another is the breaking of the gold standard under Nixon. Another a mischaracterization of currency issued to fund the Civil War. The U.S. has never officially defaulted although these examples could certainly be considered unofficial defaults of some degree. It’s really a matter of ideology or beliefs as how these events are characterized. )

None of this means a 2013 debt crisis is going to happen. But we certainly are getting closer to the precipice than we have ever been. Is that a coincidence that I have been noting for years 2013 is the year I believe this event could come to pass and now in 2013 we are seeing the first signs of such an event? Ha! As I have noted before, the U.S. never has to default because all of its debt is domestic. ie, It is denominated in dollars and that means all they need to do is print money to cover debts. People hoot and howl when they read that U.S. debt is domestic but that’s because they have no idea what they are talking about. That China has purchased dollar debt means what? It’s U.S. domestic debt. It’s not denominated in yuan or IMF SDRs or other foreign currencies. It’s denominated in domestic currencies. We owe it to ourselves regardless of any hooting and howling by fanatics.

China is the country holding the bag in its Nash Equilibrium with the U.S. as noted many times on here. When that equilibrium is broken, and it will, there will be consequences on both sides but the fundamental issue is that China will almost certainly eventually be denied foreign capital, technology and investment that has been solely responsible for its bubble. And to top it off, its dollar holdings could become worthless. Nothing new on here but just a reminder for newer readers.

So as noted on here many times, all that needs to happen to monetize debt is the Treasury issue $16 trillion in new debt, have the Federal Reserve step into the market and buy all of it, issue a credit to the Treasury’s Federal Reserve account, and move the decimal places on the computer screen a dozen places to the right. Voilà. The money exists in the Treasury account to pay U.S. debt bond holders. Or build bridges, roads, high speed rails, pay off student loans, fund Social Security or whatever. (None of this should be controlled by politicians but instead by transparent democracy. ie, We The People.) If you wanted, you could let debt come to maturity rather than pay it all off at once and do this in stages over decades if inflation is a concern. But there are better policy-driven methods to insure inflation doesn’t become an issue. Now, you can’t do this without limits and regulations or you’ll burn the currency. And debt should probably always remain a method of funding for certain projects. But this is basic math and managing it could be accomplished by a deft 6th grader. There really is no limit to how this can be accomplished. An act of Congress would likely be necessary to do this in one fell swoop as there are artificial limitations to the size of the Fed’s balance sheet, but then the government is so completely out of control and unbound by constitutional powers that reality doesn’t even exist anymore. So who knows what the hell might happen.

In a world where politics, the state and institutions of the ego have become so universally and completely fanaticized, there are plenty of nutjobs, monetary illiterates and uninformed ideologues out there who continue to believe the U.S. should default. Frankly, were our debt foreign, I would support a default. As I have noted with Greece and elsewhere, they should default on their foreign debts. Many supposed “conservatives” have repeatedly said we should default because we are broke. Well, we may have limits to the amount of debt we can manage, and we passed that long ago, but we certainly are not broke. Contrary to the lies and propaganda created by political megalomaniacs, Wall Street criminals and corporate psychopaths, wealth is not determined by little pieces of colored paper or lack thereof and how much of it these kooks allow into our economy. Or by any particular illusory financial or monetary system. Wealth is created by the monetization of science and invention and its associated productivity so that we don’t have to lead an existence defined by work or suffering. Now, if you want to toil your life away to endlessly consume for our corporate masters, then that’s your ego’s prerogative but I would prefer a much more quality-driven life. By the way, all we do is use colored pieces of paper to encourage this. We could use juju beans or cans of beer or rocks or simply do away with money. Money is an irrelevant factor to human progress. In fact, I could make a very strong argument it stifles human invention and science.

Calling for default is either a severe ignorance or a desire to use violence to bring this system down and inflict unnecessary pain in the process. I dare say a little bit of schadenfreude. I want to see this system replaced but I have no desire to use violence and terror to do it. Even if the people who created this misery are criminals. We need to see the restoration of the rule of law and human decency not more lawlessness psychotic behavior as is embraced by the corporate state today. So even though the U.S. has monetized its debt in the past, actually quite a few times in the 20th century, we don’t really know how insane politicians will get. Default is possible even if it is completely ludicrous and unnecessary. One has to remember that politicians generally aren’t the sharpest tools in the shed and are prone to substantial violence; our world is made endlessly violent through politicians.

Regardless of when, the U.S. will eventually be forced to monetize its debts if this global system isn’t changed. If and when this happens, people in the U.S. and elsewhere will see that debt is nothing more than a myth perpetuated by class that wishes to enslave humanity for their own megalomania. We could see people refudiate (I’m channeling Sarah Palin) debt on a national or even global scale if the state monetizes its debts. (or defaults) ie, If a wildly corrupt government, and most people understand it is corrupt on some level, doesn’t have to pay its debts to the banking criminals, why do I have to remain a debt slave? Having the whole world witness this act of government monetization could be the driver for the beginning of the end of debt slavery and this evil financial and monetary system. It could awaken the conscious mind to a greater truth for people who have a limited understanding of what is going on. If the government can wipe away its debts with the stroke of pen, then why can’t it do the same for me? That will be a glorious day for humanity and freedom.

Bogus Schemes And And Politically-Created Fraud From America’s Longest Depression Foretell Of A Greater Truth That Lies Ahead

noreply@blogger.com (TimingLogic) — Thu, 23 May 2013 14:26:00 +0000

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague." – Cicero Marcus Tullius 106-43 BC

Given the heightened exuberance of financial markets and the perceptions of a return to prosperity created by the illusion of a dying monetary system, this is a good place to repost a Courier & Ives print I have put up here a few times in the past. Along with it is some text below from one of its prior posts.

Every single financial activity that is glorified today was recognized as a Ponzi scheme 135 years ago. (As shown in the 135 year old graphic below.) By the way, that includes the state’s infatuation with gambling, taxes on finance and finance industry lobbyists funds as a source of political revenue. It’s actually quite amazing and frightening to view this print because 135 years ago the U.S. was in the midst of the longest protracted depression in our history. A depression created by elitists, banksters, the finance industry and politicians. What have elites and politicians learned in the last 135 years? What have we as a society learned about sustainability and economic democracy? The answer is clearly nothing.

Click on the graphic for a larger view

These cycles of endless misery and injustice of private, for-profit capitalism are repeated time and again. When private entities control our banking and corporations (and as a result, substantially influence and create our social values) and our money, this is what the end result will always be – Ponzi schemes, bubbles, fraud, legalized theft, tyranny, poverty, misery, slavery and economic injustice. As noted in two of the bubbles in the print above, that includes public office and public policy that is used by politicians and political gangs who rig the system for private, for-profit capital gangs to loot, gamble, pillage and steal from the good people of this nation and the good people around the world. Who create a world of impoverishment. Poor people are most often poor because they have been impoverished by others. People aren’t born poor. They are made to be poor. By beating people down and controlling them rather than empowering and exalting human expression and human decency. Poverty in a world of abundance that exists today is a barometer of the level of control exerted by the state and the level of corruption that exists in society.

Public office and public policy are clearly bubbles today as well. (And as a result, the lobbying bubble, the lawyer bubble, the law school bubble, etc that created the political and policy - legal red tape, endless mounds of legal code, useless rules, overregulation, rigging the economic & political game, etc that are indeed bubbles themselves.)

As noted on here many times, whenever the best jobs in any economy are government or banking jobs, doom of the system is imminent. Neither produce or make anything. Neither are productive resources in our economy that translate into sustainable wealth or technological advances that benefit humanity. The reality is both only exist by preying on the productive assets and people of our society. They are parasites who attach themselves to the productive assets in society and suck them dry.

Ayn Rand may have been dubious in her glorification of class-based, predatory corporate capitalism but she was surely right about the looters, moochers and parasites that use class and political authority to enslave people. She should know as she lived through the communist takeover that became the Godless Soviet Union. Just like we are living through the corporate takeover of what has become the Godless corporate state. Private, for-profit bankers and politicians serve no purpose to a democracy or a free people other than mooching, looting and parasitically attaching themselves to productive assets and people. Public capital markets, public banking and public money owned by democracy and public servants serve a purpose of empowering democracy, human development and economic freedom. We have none of that today.

The global economy peaked just about the time this Courier & Ives print was released. And, it peaked for decades to come. Globalization peaked in 2008 and that peak could very well be forever. Yes I realize forever is a long time. But most trade under a global capitalist system is meaningless and useless to a free society. It’s part of the overproduced make-work required to keep private, for-profit capital in power. It serves our masters who tell us what we need or want rather than what a free society needs or wants. And if capitalism is failing permanently, so too will the false paradigm of exploitative, predatory, environmentally-destructive global trade we see today. We could see a future reality where global trade literally collapses to some very small percentage of what exists today. Forever. And, even so, that trade could look very different than today. I’ll talk about that some time in a future post but it certainly is not a future prosperity most people have ever even considered.

In case you have trouble reading the “bubbles” above in the Courier & Ives print, I have included them below. All of the schemes are exactly the same as today. Nothing ever changes when it comes to financial and political fraud and corruption. The only thing that has changed is the amount of leverage granted through financial “innovation” and financial “engineering”. More pointedly the extent of the corruption or con that is perpetrated on society and its victims has achieved unprecedented leverage and scope.

Gold Mine Bubble - Bogus Schemes - Gambling - Speculation - Lottery - A Big Bonanza - Fancy Stocks - Railroad Bubble - The Capital System - Jockeying - Capital Prize $100,000 - Pools - Gift Enterprises - Public Office - Puts And Calls - Rings - Betting - Policy - A Lucky Hit - Something For Nothing - Grand Prize $100,000 - Inflation - Games Of Chance - Rag Money (Paper currency)

The Pope Calls Free Market Capitalism The Cult Of Mammon Responsible For Global Suffering

noreply@blogger.com (TimingLogic) — Mon, 20 May 2013 14:33:00 +0000

“The Pope loves everyone, rich and poor alike, but the Pope has the duty, in Christ’s name, to remind the rich to help the poor, to respect them, to promote them.”

Another editorial on the Pope’s speech titled The Pope and Godless capitalism. I like this editorial because I have often characterized the corporate state as Godless, which it clearly is.

And lastly "The capitalist morality is a rejection of God.

I have decided to interrupt my posting schedule to put this up. I often wonder what level of human decency exists in the Vatican but apparently it is still able to rise to the level of a public lashing of corporate capitalist criminals and the criminal politicians who rig the system for them.

One of the Pope’s recent statements in his excoriation of the “cult of money” is that “money should serve rather than rule”. The only way that is ever going to happen is with democratic, public banking and democratic, public money that has an intent of serving democracy and human development. This is the moral crisis of our time as written on here literally hundreds of times over the years. And that means capitalism or private, for-profit capital must go. Human development, economic freedom and democracy will never be served by class-based, private, profit-driven interests. There is no precedence for it and there never will.

This speech is very important. There are over one billion Catholics in the world and most Catholics view the Pope as the Holy Father or moral leader. Whether he is or not is irrelevant. Beliefs create reality. And dare I say, it’s not too much of a stretch to state that most people on this earth view their spirituality as a higher authority than corporate capitalism or the corporate state. The Pope’s statement really isn’t something new. I have heard countless religious and spiritual leaders, priests, ministers, rabbis, monks, etc talk about the injustices and human suffering caused by corporate control and private capital. ie, Corporate capitalism. Prior Popes have rebuked capitalism and Marxism but never to this degree. At least not that I am aware of. But then never has the evil of private, for-profit capital been so viscerally exposed and never has their control over the world been so universal.

Really what this comes down to is the cult of money as noted by the Pope. Without money most corporations simply would not exist. Most companies don’t serve society or human development. They are vacuum cleaners that exist to do nothing more than suck up money. Without money most major injustices in the world would not exist. And organized criminal syndicates would likely disappear. Let’s be honest. Many corporations today are nothing more than organized crime syndicates. Whether that is a company that exists to patent food or a genome or a Wall Street firm that gambles with other people’s money or a fast food restaurant that pays nonliving wages and serves up toxins for profit.

I have had friends and readers laugh off my remark that someday money will disappear. Forever. They can’t see that world existing. Just because you can’t “see” it doesn’t mean it will never come to pass. History is full of changes and inventions that no one could see coming. This entire crisis is based on that dynamic. In fact, that is history. Most people’s minds become their prisons as they live in a fear-driven (control) reality created by the ego or manufactured self. And that prison steal’s the mind’s ability to create and dream. The day that money disappears will happen. It’s just a matter of when. And it will likely happen not because of virtuous choice but because of necessity or crisis. Do you need money to build a car or house or grow food? The only reason we need money is to create a system of class and control. A system of exploitation, violence and predation.

Rich and poor alike? The rich respect poor people? Are you kidding me? Even though the Pope and Vatican’s statement is rather pointed, there remains a vein of political correctness in their statements that veils truth. I would guess that is to protect the income stream from rich Vatican donors. Remember, the Vatican too serves mammon whether that is money, real estate holdings, investments, hierarchical power and control over other people, etc. Every hierarchical institution of the ego or of man serves a primary intent of control rather than discovery and truth.

The rich have seldom ever respected, protected or promoted the poor. Or more broadly, it’s really about respecting, protecting and promoting those whom the ego believes is of a lesser class. If they did, there would be no poor. I can think of a few examples. Eunice Kennedy Shriver started the Special Olympics. By the way, donating some part of a fortune is not really selfless nor is it about respect. That is, unless it’s done anonymously. Otherwise, getting your name on a new hospital wing is always about the donor receiving ego-stroking. How many people give away their fortunes anonymously to help impoverished people? And even when those cases exist, how much of it is simply ameliorating the ego’s guilt for having so much excess in a world where so many have so little? Is this selflessness that comes from the mind’s higher power? It is truly love, respect and concern for our fellow man?

The modern world of science and its associated productivity is a world of abundance and there is enough for everyone. Scarcity or lack of supply that exists today is a control-based myth perpetuated by class and illegitimate authority. When it comes to food, shelter and healthcare or the basic necessities of life, there is ample abundance. The patriarchal capitalist system that has existed for half a millenium doesn’t just not respect poor people, but its endless overt and covert violence preys on and exploits poor people. This class-based system of control could never exist without that predation and exploitation. Private capital sucks the excess work or intellectual capital, or as they like to call it, surplus value from those it exploits for monetary gain. That is only how class ever exists. And austerity today is the attempt by the world’s class-based capitalists and the class-based politicians who selfishly do their will, to steal literally every ounce of dignity and humanity that impoverished people have left in order to save their class rank and wealth.

Certainly all people are worthy but many are disconnected from their higher power or their humanity and thus are capable of tremendous ego-driven rationalizations and its endless evil. As John Dalberg-Acton wrote, many people of class believe they are more worthy than others – “great men are almost always bad men”. Once you understand how becoming “great” in a class-based society involves somehow taking from someone else or compromising your own humanity, then it’s not too hard to appreciate that money, class and power are the root of all evil and that great men are indeed almost always bad men. Or, at least most supposedly great men suffer from greater delusions of narcissism, psychotic behavior, greed, covetousness, exploitation, predation, violence, victimization, etc. In other words, the endless evils of the ego.

Actually if we are talking in “Christ’s name” as the Vatican remarks above, then one should consider what Jesus of Nazareth said as it pertains to topics that overlap with poverty, class and capitalism. That is, to release oneself from the evils and suffering of attachment to money, fame, worldly possessions, class and the ego-driven identity we derive by being part of the social system that exalts these ego-driven values. For the only way to achieve a higher level of enlightenment or divine connection to the universe is through releasing the ills of the ego. There is a reason that the documented teachings of Jesus of Nazareth were almost always from the countryside. Well, except when he went into the temple to confront those that had turned a sacred site into a free market capitalist moneychanger enterprise. There is some indication his sect of Judaism rejected society for all of its ego-driven evils and suffering and instead chose to live completely outside of society and its worldly influences. Social values are transient and generally determined by the values of class and title. Human values are timeless and are derived by our own divinity or higher power that exists inside all people. Even if we are disconnected from it. That is, mercy, respect, kindness, acceptance, compassion, equality, dignity, etc.

One cannot serve God or our higher power or selflessness or our own divinity and mammon as private, for-profit capital always has and always will through exploitation, predation and victimization. A world today driven by the exaltation of money certainly is evil. It is no coincidence we see truly unprecedented evil on every continent and nearly every country around the world today as global, deregulated, private for-profit capital terrorizes untold numbers of humanity, the natural world and our planet.

Any time anyone tells you that basic human needs and basic human dignity cannot be met for all people because there is not enough money available, as is the case today, even though the technology (productivity), food, shelter or healthcare facilities are available to meet those needs, that is nothing but ego-motive and its manifestation of evil. At least that is evil as defined by the Sermon on the Mount - the moral teachings of Jesus of Nazareth.

Regardless of what or whom you belief Jesus of Nazareth was, he certainly was not a card-carrying member of class-based, profit-driven, free market capitalism. And apparently he died owning nothing nor having any money. I do believe that was a conscious decision from what I understand. Neither was Guatam Buddha nor any of history’s great divine, enlightened or spiritual beings card-carrying members of capitalism or its exploitative and predatory class-based values.

We know where Jesus of Nazareth probably would be if he were living in capitalist America today. He’d be living down at that local homeless shelter because he rejected all worldly possessions, consumerism and money. He wouldn’t be dining with the moneychangers on Wall Street or the criminals in Washington who wage endless war or do the moneychanger’s evil. In fact, good class-based capitalists would surely have him arrested if he happened to veer a little too far into their gated communities and rebuked them for their idolatry of mammon. And if he got too uppity and his message became too popular, thus threatening their power, class and authority, they would certainly destroy his reputation with lies and deceit or even murder him as has happened so often whenever someone threatens this system. Just like the ego-driven elites and the status quo did 2000 years ago.

I find it hilarious that power and the state has always exploited people of Jewish faith as those who killed Jesus of Nazareth. It’s the same type of exploitation we see of different “classes” of minorities in the U.S. be they black, red, yellow or white or the common trait of often being denied a living wage and human dignity and thus are unable to consume all of capitalism’s make-work. So, to the corporate state they are part of the disposable society I have written about. This mythology regarding Jewish people serves power’s purpose of dividing and controlling people by creating boogeymen and diverting responsibility. Of keeping people beaten down to maintain class and wealth as happened when the state adopted Jesus’ teachings for purposes of control. It’s such textbook behavior for predators.

The reality is all Semites loved Jesus of Nazareth during his life because he gave those who were exploited power through realizing and accepting their own divinity. It was the class-based status quo who killed him. Because it served their purpose of maintaining class, wealth, authority and control over society and humanity. It was the religious, state and business leaders of the day that his message of equality, kindness, mercy, freedom and detachment threatened. But what really chapped their ass was that Jesus of Nazareth taught people that the greatest power in the universe resides inside of each person and the world around us. That message sucks for those who wish to maintain class and control. Because the only way class and control can be maintained is if the masses outsource their own divinity or power to those who wish to exploit and victimize them. Once people realize they have the power within themselves to be free and worthy, class and authority can no longer exist. Only law based on natural rights. That’s what really threatens our masters. Because without emotional bondage placed there by those who wish to control us, the human mind is free, divine and all-powerful. True freedom exists within the mind. That’s why they killed Martin Luther King. It’s the reason tanks mowed down thousands in Tiananmen Square. The same would certainly happen to Jesus of Nazareth were he alive today. Or anyone else whose truth gained or threatened to gain a large audience against those who exalt the cult of money, control, class and power over discovery, truth, decency, freedom and human values. Just as they did 2000 years ago.

Class-based, private, for-profit corporate capitalism appeals to humanity’s most unevolved, unaware, unmindful, unenlightened, unspiritual part of our psyche. That is, the ego. Which, by the way, is why the most unevolved, unaware, unmindful, unenlightened and unspiritual people rise to levels of authority within the class-based system of control that has defined our world pretty much since the beginning of time. It’s also why modern capitalist society is dying. Because being driven by the exaltation of our unevolved psyche or the ego over our own divinity, it truly is Godless.

The time has come to rid ourselves from the class-based control of private capital over democracy. It is time for economic freedom, public capital and public money.

What we witness today is truly a battle between good and evil. Will we continue to live in a world driven by the unevolved ego? Or as our perceptions of reality are destroyed will we evolve to a world based on our higher power or the evolved human psyche? ie, The Age of Aquarius? The answer is B. But first we have some unfinished business. More on that in late June or July.

Stupid Is The New Black–Tesla Stock Worth More Than Fiat

noreply@blogger.com (TimingLogic) — Fri, 17 May 2013 15:35:00 +0000

The only reason someone starts an auto company is because of passion or stupidity or both. Sometimes that combination actually can be a winning one for obvious reasons. That is, if you are passionate enough, you can often create solutions to large obstacles. If one contracts much of the component engineering and/or production to the massive excess capacity of auto suppliers, it certainly is possible to start an automotive company comparatively cheaply. ie, The excess infrastructure, engineering, production and design capacity exists and that can allow for a reasonably low-cost startup when using a prudent sourcing, engineering and design strategy. In fact, Tesla probably could not even exist were the economies of scale and excess capacity within the auto supplier and auto industry not to already exist. It uses a former GM facility and its stamping equipment to build its cars and in a bout of corporate cooperation, Toyota formed a joint venture with Tesla to share battery packs with its RAV4 in addition to much of the other supplier-provided componentry it uses. But battery advances are happening so quickly Tesla almost certainly will have to change its strategy. And, at what cost to a startup in a very capital intensive business? Future manufacturing and production innovations may make the success of smaller auto firms a reality but today building a sustainable boutique auto firm is challenging at best. Tesla relies heavily on the existing overcapacity in the auto industry just as Fisker did.

I certainly have no desire to minimize the accomplishments of Tesla Motors. In a financialized world where temporary perceptions of wealth are created through pushing paper, they actually make something of value. And they seem to have gotten a lot right. That said, I suppose anyone with a guaranteed government loan and a few dozen laid-off automotive designers and engineers in the Detroit area could probably start a car company. But this is a very tough business and that is the reason why more people aren’t starting auto companies. There are large barriers to entry and as noted in many posts over the years the capital requirements to sustainably engineer, design, build, maintain and service a single automobile model are very substantial. The cost to actually build a sustainable auto company are even more obscene. Any single leap in technology could leave a startup with limited capital lagging competitors or worse. And without deep pockets, it’s hard to catch back up. Tesla is essentially a single model auto experiment that has yet to prove its sustainability. Personally, I wouldn’t classify it as a legitimate auto company. Yet. They haven’t even begun to tackle the endless red tape and legalese of dealership franchise laws. And that’s just the beginning.

Over the last five years Tesla’s cash flow has never been positive and it has deteriorated 500% in that period of time. Now some of this may be explainable as they ramp up production but then again, taking ten years to ramp up production isn’t going to lead to success. Additionally, Tesla benefits from government subsidies for electric vehicles or it would be an even tougher road to profitability. And although Tesla reported a minor profit this past quarter, it is bleeding cash at a very rapid clip. In other words, Tesla already needs to raise more capital. So, just a few days ago the company announced it was going to issue more stock and debt. And its founder was going to purchase $100 million in shares at this price. Even though that means stock and value dilution, the shares exploded higher. Ahem. Obviously, the rationale for a higher stock price would be that Tesla needs more cash so its business must be good? Ha! The reality is there is no rationale other than financial manipulation. Tesla is lucky that credit is extremely loose right now thanks to the money-pumping Fed that is recreating more future crises. If the economy turns south again, Tesla’s cash flow problem won’t be easily solved as a company with a cash flow problem isn’t likely to be able to easily tap credit markets, if at all.

“The stock (Tesla) is trading like it’s 1999 and we’re in the Internet bubble again,” said Maryann Keller, principal at consulting firm Maryann Keller & Associates in Stamford, Connecticut. “It has nothing to do with Tesla’s fundamentals. It has to do with pie-in-the-sky aspirations that don’t reflect the realities of the auto industry.” -- Maryann Keller, auto analyst

It has been half a dozen years since Maryann’s name has come across this blog but she’s the real deal. I used to write extensively about the auto industry and my knowledge of its operations is competent. Maryann is the only auto analyst I trust. Let me also addend Maryann’s remarks. Tesla’s stock price is really more of a reflection of too much leveraged money chasing too few financial assets rather than pie-in-the-sky aspirations although one could proffer that they are on in the same. Aspirations matter not if there is no speculative money bubble to ram Tesla’s stock to the moon. One of my long-time theses on here is oil is headed for a price collapse as the reality of this cycle reveals itself. The fundamentals behind that thesis are starting to line up quite nicely yet no one believes this is possible because propaganda has conditioned people to believe we have run out of carbon-based energy sources. If that happens, electric cars are likely to head the way of the Dodo bird without some very substantial propping up by government. I suspect government will have its own problems that will be too distracting to worry about electric car subsidies. Then there is the small problem of the largest money bubble the world has ever seen and that it has no reflection of true wealth. As central banks torch their currencies, the future for expensive cars may not be a very compelling one. These factors may mean the limited resources of Tesla could very well lead to its demise given it is exclusively an electric car company without the intellectual capital, operations, money or lines of credit needed to adjust. ie, Their $90,000 electric car may serve nicely as a dual purpose boat anchor.

Wall Street is now valuing Tesla Motors at a higher worth than Fiat. Tesla has produced 10,000 cars in ten years. Its current electric car with a price tag upwards of $90,000 has received great reviews. I have no doubt it is a great car for the price of a home in many markets. But let’s get real. Fiat makes 20,000 cars a day. Literally. (Well over 4 million a year) That includes the brands of Ferrari, Alfa Romeo and Maserati. (drool) The new Alfa 4C may be the most beautiful car ever made and its going to be $35,000 less than a Tesla when it hits showrooms in a month. Plus it will be powered by an internal combustion engine which I consider to be a plus when it comes to sustainability. At least given current technology and developing macro factors. Bigger surely is not better when comparing Fiat to Tesla. And as noted on here many times, this cycle will likely see the demise or substantial shrinking of many large corporations. That might even include Fiat. But critical mass is very important in a highly capital-intensive business. Fiat has that critical mass. It’s intellectual, design, engineering and production capital are staggering comparatively. That Tesla is worth more than Fiat is absolutely ludicrous Wall Street bubblenomics. That Tesla’s owner has agreed to buy another $100 million of stock at this price shows how this current generation really has no idea what the future holds for them. They have lived in a money bubble for so long that most have no idea what reality looks like.

Tesla’s stock price is simply another reflection of the endless distortion of financial assets that defines our criminal financial and monetary system. Endless speculation has driven Tesla to a level that is absolutely ludicrous while the city of Detroit, as just one counter example, has greater than 50% unemployment. ie, The United States’ citizens of Detroit are denied access to society’s capital needed to become productive, inventive, creative and self-sufficient contributors to democracy while private, for-profit capitalist financial predators steal our democracy’s money to manipulate Tesla’s stock for their own outrageous fraud and paper profits. Who wins and who loses?

What did the United States’ citizens of Detroit do to deserve their enslavement to poverty and injustice? Absolutely nothing. Victimization is inherent to class-based, private for-profit capital. So Tesla’s management, the investor class, hedge funds and investment bankers become richer for doing absolutely nothing productive while tens of millions of American citizens rot. All the while democracy loses its economic vibrancy that would be gained by empowering the citizens of Detroit and elsewhere. For now. These endless frauds and schemes are just perceptions of wealth and just like every other financial bubble and every other false perception of reality, eventually the illusion disappears and reality reveals itself.

This is the same type of financial fraud that defined the Internet bubble and almost everything in our economy since the Reagan administration-created S&L crisis. In fact, we have a current generation of uber wealthy who have all been benefactors of the massive fraud that defines private, for-profit capital and its deregulation. Untold numbers of companies came public in the 1990s with no real business model and no earnings whatsoever. Untold hundreds of thousands of people defrauded society by going public and looting the treasury with the help of Wall Street during the deregulated Clinton era. Just as untold numbers have defrauded society since with ever-more financial schemes and bubbles. Many of these people are considered our corporate and social leaders today because money talks when democracy is for sale. The corporate state wrongly considers class-based wealth as a barometer of intelligence and so those who have the money make the rules and that means the rules are going to reinforce their continued accumulation of society’s resources. It’s everywhere.

Seemingly nonfinancial firms are just as complicit. Even firms like Google that are benefiting from the massive ad bubble. Their IPO price and subsequent revenue and earnings are all driven by a larger dynamic of financial fraud created by the money bubble. Were these not bubblenomic times, Google’s IPO price, ad revenue and profit may be 10-20% of what it is today. Google itself may be completely unaware of this dynamic and running its firm by the rules but it still contributes to economic aberrations and manipulation by assigning paper wealth to people that isn’t actually real. As noted on here countless times, that too will pass when the corporate ad bubble pops and/or the dollar loses its reserve currency status. (Although Google, like every other deregulated capitalist firm large enough to manipulate governments rigs the rules and cheats democracy whenever it can get away with it. Just another example of what has been written on here time and again. Corporate tax receipts are at the lowest levels since at least the 1950s. They are probably the lowest in history but I don’t have data going back that far.)

These dynamics are representative of our financial and corporate capitalist system’s endless crimes of treason and crimes against humanity.

No assets on Wall Street are valued at any level of reality. We haven’t seen stocks priced at fair value in decades. Which is one reason why my long-time downside target for the S&P is and remains at 200-450 or its 1990-1995 price levels. It’s all one big Ponzi scheme in the biggest financial bubble the world has ever seen.

We need a public banking and financial system whose primary intent is to serve democracy and human development and not financial looters, corporate masters, crony networks, criminals and predators.

Global Capitalism Running Off The Rails - Timely Remarks About Corporate Earnings, Financial Assets And The Global Economy

noreply@blogger.com (TimingLogic) — Mon, 13 May 2013 13:59:00 +0000

I want to start this post off by reminding readers of remarks made by Treasury Secretary Hank Paulson back in 2007 before the collapse. I remember Paulson giving a TV interview where he waxed poetic about unprecedented strength of the global economy and unprecedented global prosperity. When it comes right down to it, Hank was truly an ignoramus as are most politicians and corporate bureaucrats. Contrarily, I had been writing that the world was experiencing the biggest bubble in history, the world would shudder and shake when this cycle ended and that all of the wealth created under globalization could very well disappear. It certainly wasn’t because I was some genius but that I had my eyes open to the reality of what people like Paulson created. By the way, that was an incredibly lonely position at the time. Again today we see a similar type of optimism within the establishment bureaucracy as the perception of a post-crash asset recovery unfold. (We are seeing extreme levels of speculation in equity futures & derivatives markets as I type this. The looters are showing nearly unprecedented levels of arrogance and risk-taking in their actions regardless of any blow about this being a “hated” rally. I’m still comfortable with a projected peak in equities in the middle or second half of this year.) But how the world has changed from that pre-2008 perception of global prosperity under which Goldman Sachs was telling us it was doing God’s work. Now, while we see the perceptions of recovery in the assets controlled by corporations and elites, we now also see unprecedented poverty and strife as the world burns at the hands of politicians, private for-profit bankers and corporate capitalists. Yet what I see in my experiences is that most people who are doing extremely well under this system have closed their mind to what is going on around them. The ego can and does rationalize anything, especially when it comes to its its belief systems involving attachment.

Unlike 2008, today countries around the world are experiencing structural economic crises that cannot and will not be fixed under global capitalism. Yet hot money fresh coming from Europe in lieu of the Cyprus confiscation, hot money rolling out of falling commodities, central banks seeking higher returns, hedge funds & global banks and the endless leveraged manipulation of the carry trade are fueling artificial demand and the associated speculative rise in global asset prices. Mind you, all of this is occurring without an antecedent rise in wealth. As the always brilliant-less Alan Greenspan has been quoted, rising asset prices creates the confidence of wealth needed for people to go out and spend. Of course, reality is that only true social wealth creates sustainable, rising demand for assets. Simply more of the illusions created by the renter class that owns all of the assets. We have now seen over 300 stimulative central banking and policy-driven programs around the world meant to bail out the small number of people who control the world’s assets while allowing widespread misery and poverty to flourish.

I now appreciate how much I underestimated the mind-boggling corruption that defines class-based corporate capitalism and the captured global political class of thugs that does its will. I certainly never believed politicians, bankers or corporate bureaucrats were virtuous but the entire world is clearly run by an unprecedented global class of criminals whose common shared interest is in serving class-based private, for-profit corporate capital(ism) at the expense of human dignity, human rights, economic freedom and democracy.

Asset prices have seen large rises recently and U.S. equity prices, as one example, are now the second most expensive in the top 30 world’s exchanges and the most expensive in the developed world on an expected future earnings basis. As I noted on here many times before the 2008 collapse, on a fundamental basis the U.S. equity market was many times more expensive than the market in 1929. You know, before it fell 90+%. Corporate fundamentals have deteriorated significantly since and financial assets, including equities, are now even more overvalued. Eventually, the illusion of financial markets/assets and the reality of the underlying economy will recouple. That is, true wealth is not a function of highly-levered, fraudulently-manipulated financially-engineered asset prices that provides perceptions of wealth and control for a small number of renter-class royalty.

I want to remind readers that I have noted on here that some day the stock market in our nation will disappear. Forever. That it is not necessary to a functioning democratic, merit-based economy. Frankly, it has become a detriment to a functioning economy as noted on here through many dysfunctional dynamics. One must consider that this cycle could be that some day. So while many talk of investment haircuts or market corrections, there is a much greater reality that exists. Haircuts and financial asset declines could be 100% and permanent on many, if not all, markets. If you understand my posts stating that we are likely living through the end times of capitalism, just as we recently lived through the end times of communism, then you must appreciate that capitalism’s funding and financial mechanisms will ultimately disappear as well. This is not a prediction but a serious possibility that no one is considering. It will happen some day. The only question is when. (My long-time downside target on the S&P remains 200-450 if capitalism makes it through this. As time goes by it has become ever-more apparent to me that it likely won’t.)

Let me also remark of those who are now calling this the start of a new bull market. As noted on here before, we cannot be at the start of a new bull market because the companies, markets and technologies don’t yet exist for that to happen. And the existing corporate structure of control, political bribery and market-rigging ensures that will never happening under this current reign of corporate terror. We must see new ideas, new innovations, new economic opportunities, new markets and massive new employment opportunities from these innovations and opportunities for a new bull market to appear. Otherwise, this is nothing more than the existing debt-based illusion of capitalism’s overconsumption, overproduction, money printing and financial fraud that serves only illusions to keep the current capitalist class-based power structure in place. Are we about to see a new bull market in PCs, genetically-modified foods, healthcare that serves little to no benefit to society, military spending, portable phones, financial speculation, overconsuming more overproduced, toxic junk from China and the overproduction of antidepressants and liquor to numb society into surviving another bout of this psychotic corporate-state-controlled world? And is this going to create tens of millions of high-paying, wealth-creating new jobs in the U.S.? Or more marketing, advertising, political consulting, lobbying and finance jobs? Need I even answer that?

That is, at this very moment corporate balance sheets across the board are deteriorating at a rate not seen at any time in the last twelve years. Yes, that's right. Worse than anything experienced under George Bush. This ties in very nicely with my game theory post that corporations are headed for a massive hard landing and that many major corporate names will very likely disappear in coming years. - My July 18th, 2012 post titled “Buffett Breaks His Cardinal Rule And Invests In IBM”

Two months after I posted the above remarks Thomson Reuters announce the largest downward earnings revisions since in the last eleven years. It was the first quarter that the S&P 500’s cumulative revenue growth turned negative since the 2008 crash. S&P 500 revenue contraction is an unheard of dynamic. Well, it was until 2008. Now we have seen it twice since as results this quarter have also been horrible for many multinationals. Again, today the S&P’s cumulative revenue growth is being reported as negative as financial assets and equity markets make all-time highs.

To give some indication of how disconnected financial markets currently are from reality, let’s look at some very disconcerting and deteriorating economic highlights from around the world in 2013. These highlights are starting to confirm large disturbances in the global capitalist overproduction (and resultant required overconsumption) bubble that appears to be starting to pop.

Copper demand, as noted on here many times as a proxy for the global economy, has collapsed in China. Demand in China is 35% sequentially on a monthly basis, an unheard of decline. The price of copper has been declining for years and was down 34% from its peak as inventory has exploded for the first time since the housing bubble peak. In the last week or so, prices have moderately recovered on a reflex rally. China’s most recent trade results are completely bogus and people are starting to understand how deregulated capital and hot money is severely manipulating China’s Ponzi trade numbers. The Chinese ministry of propaganda, caught with its pants down, has finally acknowledged this. As I noted leading up to the collapse of its stock market bubble in 2008, the communists had lost complete control of their economy and their money. Soon thereafter we saw a massive collapse in their equity markets and their overproduction bubble as tens of thousands of factories were shuttered. The same dynamic is building today as the communist central planners have again lost complete control. Remember, deregulated capital(ism), aka free market capitalism, is the precursor for all capitalist-created economic disasters and it is the key component to the U.S.-China free trade or looting agreement. (Remember, as noted on here at the peak of copper’s bubble back in 2008, copper costs 7 cents a pound to mine. It was selling for $5 a pound at the time. Copper and all commodities are being manipulated by Wall Street as I have written on here ad nauseam. Copper will almost certainly fall 80-90% still from these prices.)
Excess crude oil supply imbalances are now the greatest in recorded history. In other words, the world is now awash with the greatest excess supply of crude oil in history. Even more than when crude was $10 a barrel in 1998. (A long term thesis on here is that crude is likely going back to somewhere around $10-20 a barrel.) And gasoline demand in the U.S. is falling at the fastest pace since the 2008 collapse. As noted on here ad nauseam, peak oil like anthropogenic global warming is a myth. And Wall Street manipulating petroleum prices is a foundational element of hoodwinking people into this propaganda just as similar junk science-propaganda is behind human-caused climate warming. This has been a consistent thesis on here for the last eight years and now many people are finally starting to understand how true this really is.
Semiconductor companies are seeing bookings for new equipment often fall precipitously, margins implode, large amounts of business deferred and may be ready to revert back to the dominant trend of the last few years of falling revenues for the entire industry. (As noted on here many times over the years, I hate technology stocks. Most companies are last year’s dead wood.)
Caterpillar’s earnings were down 50% and revenues are down dramatically. Asian demand for heavy constructing and mining equipment is down a whopping 25%. So much for those distorted China trade numbers showing a massive increase in exports. Massive collapse in demand for construction and mining equipment and associated commodities is impacting the entire commodities and cyclical/industrial business complex.
Most recent data on exports of U.S. corn are down the most ever recorded at –54%. So much for Monsanto dominating the world. Is this a trend and a sign of rejection of GMO food and food slavery by corporate America? It’s too early to tell. But I have written on here that we could most certainly see starvation around the world as this system unwinds. Of course, this could simply be production arbitrage or corporations shifting production of GMO corn to South America where costs are much cheaper.
Vladimir Putin just remarked of an “alarming” economic slowdown in Russia.
Greece and Spain have just reported record unemployment and Italy just formed a government that cannot govern while Germany’s economy continues to slip with every euro nation’s production contracting.
Commodities across the board peaked two years ago and have been falling ever since. For that reason, it should be surprise to anyone gold aka anti-democratic money of which the majority is controlled by criminal central bankers, copper or anything else is falling.
The Chicago Business Barometer just reported the lowest reading in the last three and one half years.
Taiwan, Japan, South Korea and Singapore are all seeing industrial production shrink and factory orders fell to a seven month low in the U.S.
IBM’s server revenue imploded 17% and the CEO blamed it on salespeople not moving fast enough. That’s clearly wishful thinking. The same dynamic is being reported at other companies including the night-of-the-living-dead zombie, Dell. (Remember, last June I wrote that IBM was putting in a major top. Maybe its last top. Forever. This past quarter IBM missed earnings for the first time in eight years and reported its single-day largest share price drop in a decade. It’s just the beginning. It’s going to get much worse for business technology, software and consulting related corporations. Most of these companies are dead wood that have been pulling proverbial rabbits out of their hats for a long time. Rabbits that really create little to no quantifiable return on investment or productivity enhancements for clients and almost no value to society but that allow their profit schemes to stay afloat. These companies have transformed into bureaucracies that serve little purpose other than enriching their executives and a place for its countless workers to collect a paycheck. Just like the massive, state-backed Soviet corporations.)
IT outsourcing and business process outsourcing, BPO, contracts have collapsed and are down over 30% globally in this last quarter, a staggering drop. (Again, I wrote years ago that the BPO, IT outsourcing, Indian outsourcing/software bubble story was peaking and we were likely to see a major shift against this business. Not only are we seeing revenues collapse, but Congress is now considering legislation that could start putting nails in this business model’s coffin and in India’s software, BPO and outsourcing bubble.)

These are simply examples. While there are many financial-related and service-related companies still doing well, these companies rely substantially on corporate cash and usury for their profits. They are benefiting from the central bank reflation bubble. Additionally, these businesses consume wealth and capital rather than create it. They take money and wealth out of the economy and out of our pockets. They either consume or destroy wealth and jobs. They are that loud sucking sound that is simply part of the renter class that enslaves democracy to private, for-profit capital. Most of these are companies and jobs our society would be better off not having. Then our wealth could be spent on more productive outcomes that benefit our citizen’s and community’s quality of life.

The above highlights are not small perturbations in the global economy. These are growing crises and large shifts that are a result of huge drops in overproduction (and resultant overconsumption) and associated capitalist business demand. As is often cited with military bureaucrats for their closed-mindedness and ignorance, the Federal Reserve and other central banks are still fighting the last war. ie, Their concern about providing bank liquidity to ensure there is no repeat of 2008 is the war they are still waging. It is the last war and not the current war that should be waged to stave off future crises. As discussed on here ad nauseam, 2008 was not a banking or financial crisis as incompetent bureaucrats in politics, economics, Wall Street, central banks and university professors in the economics, business and financial community have told us. It was a crisis of capitalism. And now we are starting to see exactly that with global capitalist production and global demand beginning to recouple with the initial signs of large declines. What, pray tell, are central banks going to do to stop the fall of capitalism and its endless overproduced make-work? Buy copper and then dump it back in mines? Then mine it again and dump it again? Or buy computer equipment and then scrap it? Then buy some more and scrap some more? Or buy more real estate and bulldoze the massive oversupply of commercial and residential development? That’s essentially what has been happening for the last 30 years. That is, corporate capitalism’s endless make-work. And bankers are once gain lowering borrowing standards to re-ignite even more demand for make-work. What’s next? Maybe they’ll bring George Bush out of retirement to tell Americans to go out and spend their welfare check to buy more overproduced make-work. Or a house or a car or more junk made in Chinese sweatshops as he did after 9-11.

So, if we take into account last September’s earnings were a result of horrible 2012 3Q results, we haven’t really seen any growth in almost a year. As noted on here ad nauseam, a service economy cannot grow. Period. A fact lost on everyone in politics, finance and economics who keep seeking these growth-at-all-cost policies needed to inflate away their massive debt bubble. In fact, a service-based economy is why we have this debt bubble and horrendous wage growth in the first place. (I’ll show you mathematically why a service economy cannot grow at some point. And how it is tied to slave wages.)

Most of the perceived economic growth in the last 30 years is mythical. It was based almost exclusively on excessive money printing and the resultant accumulation of our massive debt bubble to keep this system from dying. Remember, I have harped on here countless times that U.S. economic activity peaked around 1980. That’s an important date I will continue to point to until I come back with a very substantial post on why it is so important. And it is important in ways you will never read anywhere else.

That we have seen hundreds of monetary stimulus actions around the globe since the 2008 collapse is simply confirmation of thirty years of failed global economic policies are now careening out of control. It’s preposterous to blame this on George Bush as so many liberal idiots do. Not that Bush did anything but continue the same failed economic policies of Reagan and Clinton. The ever-increasing speed and size of these required stimulus policies that must be employed to keep capitalism’s wheels from running off of the rails shows how incredible unstable global capitalism is. I’ve called this part of the “quickening” before. It’s exactly what one would expect of a complex system that has passed the tipping point. ie, Greater and greater instability requiring more and more force or stabilization (stimulus) efforts unfolding at a faster and faster pace. For conspiracy theorists who believe events in the world today were planned by global elites, you have to be kidding me. No one can plan and control anything with trillions of moving parts. Instead, these are simply reactionary measures by the status quo in an attempt to maintain their control over the global production and finance system, and as a result, over us. They are simply forcing austerity onto the rest of us in order to try to maintain what must inevitably end. That is, their class-based overproduction and overconsumption Ponzi scheme. They too will be joining the rest of the world and experiencing a collapse in perceived wealth, status and success. Just like 1929 when the vast majority of the elites, bankers and capitalists living large and enjoying the overproduction and overconsumption of the Roaring 20’s ended up destitute. Again, another long-time thesis on here.

With more than 300 stimulative polices announced around the world since the 2008 collapse we still see global unemployment is rising as are economic disturbances. That includes in the U.S. where the employment ratio and other real-world measurements continues to point to a massive structural crisis regardless of the pablum puke Obama, dimwitted Democrats, political propagandists, the mainstream media and corporate bureaucrats feed us. And global production peaked back in 2008. That means the majority of jobs created since are low-wage, benefit-less slave labor jobs created in the mythical service economy. Essentially what this tells us is that no amount of money has had any effect in saving the global economy. All it has done is recreate bubbles, not the least of which are financial assets and real estate. They’ve thrown unprecedented resources at this system and it’s once again failing at an alarming rate. Just as I have said it would countless times. This is not a crisis that can be fixed by the Federal Reserve; the elites, corporations, politicians and other benefactors of this scheme can’t be saved by the public-private fascist partnership, the Federal Reserve, that has allowed them to continually loot the public treasury.

Dow Jones Industrials & German DAX (in green)

Australian dollar/Japanese Yen & German Dax (in green)

Let’s once again look at an update of charts shown on here before. The Australian dollar/Japanese Yen carry trade along with the German DAX and Dow Jones Industrials equity indices. The correlation is 100%. You don’t need a PhD to understand why all assets are correlated down to minute-to-minute actions in financial markets and headed higher. For now. It’s not because the economy is doing well. It’s unprecedented leverage taken from the carry trade and flooded into already levered financial derivatives, futures and assets along with the unprecedented spending of the people’s money to save the corporations and elites that owns all of the world’s assets. Period. In other words, it’s incredibly leveraged, artificially-manufactured financial engineering meant to bail out the most leveraged bubble of all. That is, that 1% of the population controls the other 99% by defeating democracy, creating economic slavery and indebting us to a system of usury and graft. The leverage in this “financial engineering” is unknown to anyone but most certainly more than one hundred to one and in some cases possibly even more than one thousand to one by the time the wages are paid at that Chinese iPhone sweatshop.

The reflation trade is only meant to bail out trickle down economics. To bail out those who have stolen all of the world’s assets and wealth so that they can maintain their perceptions of control and wealth. That is, class-based, private, for-profit capital(ism). These are the only people (and corporations) who really own all of the assets being reflated by massive leverage, money printing and central banks. That includes gold, by the way that is almost completely controlled by central banks and global elites. There is no true wealth behind any of these monetary and economic stimulus actions or in the rising price of financial assets. It’s just an illusion created by manipulation and looting. By artificial levered demand. A massive concerted Ponzi scheme meant to save global private, for-profit capitalism and private, for-profit banking and our elite masters. A Ponzi scheme that terrorizes billions who have to stay alive in this hell. A hell created in the minds of megalomaniacs, psychopaths and predators who have enslaved us to its madness. This illusion will certainly pass as all illusions do.

This latest quarter’s results are pointing to very large disturbances once again building in an uncontrollable and inherently unstable complex system. It’s all working out exactly as I have been writing it would for the last eight years… albeit slower than I expected. But then I never could have predicted hundreds of stimulus actions by the bankers and capitalists using the people’s money and the associated increased taxes/fees/costs/usury/austerity to save themselves while having not a care in the world as the rest of humanity deals with the death, misery and suffering of its wake.

The world power structure of the state and its invention of class-based economic looting and slavery - private for-profit corporate capitalism - that runs roughshod over human rights and freedom is and always has been truly evil beyond words. Since democracy’s attempted regulation of capitalism has been completely gutted starting with Reagan and substantially more so under Clinton/Gore, who literally burned capitalism’s regulatory structure to the ground, we now stand witness to its most glorious manifestation of pure evil in its complete deregulation. It is perfectly predatory, exploitive and violent. It is perfectly psychotic as are the people who defend it.

This current environment is much worse than anything leading up to 2008 and it is worsening. Just as I said it would be. And it’s across the globe just as I said it would be. When I first wrote the end game for the global economy would involve most crises being outside of the U.S., that was a very, very lonely position. The 2008 Wall Street crisis then made it even more lonely because that was perceived as a U.S.-only financial crisis. Can you remember how peaceful and prosperous the world seemed just a handful of years ago? How the world has changed. It is literally on fire. And so have the perceptions changed for almost everyone from peace and prosperity to utter madness and chaos. Just as quickly as perceptions changed from the pre-2008 crash to one of awareness at the world’s crises and misery, the current crises and misery could be constructively ameliorated were virtue, truth, public service and selflessness to replace psychotic politicians, bankers and corporate executives in the determination of humanity’s way forward.

As has been uniquely written on here ad nauseam since the 2008 crash, globalization and global finance are dead. 2008 was the final nail in the coffin. We are simply witnessing capitalism’s last, best attempt at saving itself rather than serving, protecting and defending the populations it is supposed to be serving.

Change you can believe in.

Cycle Of Volatility Update - Nine Magnitude 6 And Above Earthquakes In The Last Week

noreply@blogger.com (TimingLogic) — Sun, 21 Apr 2013 14:26:00 +0000

One in Vanuata, two in Papau New Guinea, three in Russia/Japan, one in Japan, one China and one in Iran/Pakistan. Two were reported as 7+ and a third was initially reported at 7 but the final rating seems to be between 6.6 and 6.9. This is the highest concentration of magnitude 6+ earthquakes I can remember seeing.

Again, regular postings to resume in May or June.

The Bank Of The South, U.S. Dollar Hegemony, Waning Corporate Empire, Capitalism’s Tipping Point And Venezuela’s Upcoming Election

noreply@blogger.com (TimingLogic) — Tue, 09 Apr 2013 13:59:00 +0000

This is a very long post and may be my last for a while. I’ll be back. Probably May or early June at the latest. If the title topics are of interest, the most pressing analysis of what is really happening today is near the end. This is a pulling together of countless posts over the years and an expansion of many topic discussed on here. I generally don’t provide such level of detail about certain topics because of the endemic plagiarism and pilfering on the internet but today I’m sharing an unfiltered stream of conscious post. Frankly, I decided to do this after reading David Stockman’s recent NYT editorial glorifying the good ole days of capitalism. This is truly hilarious and completely unhinged from reality. Although I appreciate and respect Stockman for his unvarnished honesty and share his outrage at how morally-bankrupt the corporate state is. They have certainly abrogated their moral authority and thus have forfeited their moral right to serve the people.

I doubt you will read anything similar to much of the later analysis below. Especially many of the points made with regards to what I suspect is the coming demise of “free market” corporate capitalism’s reign of terror. That is, unless I am subconsciously channeling someone else in my analysis. I surely can’t be the only person who understands some of the dynamics that are endemic to capitalism that are pushing it to the brink of self-destruction but those within the current system, both bulls and bears, both supporters and detractors, are often very biased in their perceptions of reality. Many people are limited by what others tell them is real. Too many let others define their reality by outsourcing their thinking. Reading what confirms our beliefs and surrounding ourselves with like-minded people instills roteness, conformity and ideology into our perceptions of truth. And it does so unknowingly without the mindfulness of our own ego-motive. This obviously imprisons our perceptions to fit within an ego-defined control structure or false belief system. Ego-motive is nearly all consuming within people who have benefited from this system unless they have somehow experienced some crisis of conscience that allows them to awaken to greater truths.

The below analysis of corporate capitalism and its likely collapse, similar to communism and the Soviet-bloc structure, is unique and it is based on factual contradictions inherent within its structure. Capitalism is essentially a finite-state machine that is used as a control system. Capitalism is in a finite state today that is very, very dangerous. There is no way out of the current state without the use of force. If you don’t understand the concept of a state machine, think in terms of playing chess, which is essentially a finite state machine. Your opponent has just checked you. Being chess is based on control, your next moves are limited to a finite number of states. Any of those moves could very well determine checkmate. Game over. If checkmate happens, we are likely to have global monetary crises as well as the end to capitalism. Not a dollar crisis. A global crisis. Something I have been writing is imminent for the last seven years as the dollar trade settlement system is overdue to freeze up, collapse, disappear, etc.

I hope this post gives many readers a greater perception of the extent of the false reality that exists in the world today. A false reality created through political and economic control. Remember, control is but an illusion. It exists no where else but in your mind. And it is created only through false perceptions of reality One day all of us will awaken to a completely different reality. A return to truth will happen.

Let me make one more remark before continuing to the post. Below I use the term state quite frequently. State as in the artificial system of control or organized polity that enslaves people around the world today. Not to be confused with the finite-state machine remarks above. For new readers or even existing readers, as a reminder to my voluminous posts on the state, my definition of the “state” is that organized political bureaucracy which exists outside of self-rule or local-rule. It is a class-based bureaucracy that serves itself. It is that political bureaucracy which is hidden from the view of self-rule and citizen government. In places like North Korea, the state is nearly an all-consuming manifestation of the polity. There really is no appreciable self-rule or local rule in North Korea. A simple way to explain the differences between the state and self-rule is that the state derives and maintains its existence through force & violence and democracy derives its existence through the consent of the governed or self-rule and a rule of law based on natural rights. That is, nature-given or God-given rights that limit the lawless violence of the state and allow us to live as we would were the state nonexistent. ie, As nature intended. In today’s world, I would have to say the vast majority of the activities of organized polity around the world are highly statist. There is very little true self-rule or freedom or polity based on natural rights anywhere in the world today. What there is plenty of is force and violence that defines the state and gives it purpose.

“I spent thirty-three years and four months in active military service as a member of this country's most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups. This is typical with everyone in the military service.

I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.

During those years, I had, as the boys in the back room would say, a swell racket. Looking back on it, I feel that I could have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.” -- General Smedley Butler, 1933, Author of War is a Racket: The Profit Motive Behind Warfare

How wonderful it is to read Smedley Butler wax poetic about the good ole days of capitalism. If we could only return to those good ole days of a century ago when capitalist economic slavery was the norm. Or maybe two hundred years ago when the king’s corporate capitalism led to the Revolutionary War. Well, and when capitalism’s economic slavery was supplemented by outright human ownership, human trafficking and indentured servitude to serve our capitalist masters.

Let’s start with a follow-up to my post on the BRICs trade clearinghouse bank meant to replace the IMF and World Bank. In that post I remarked of Chavez’s death and that of eight other South American leaders since 2009. All caused by cancer. Let me say that I’m not a Chavez advocate or detractor. I have no dog in the hunt of vilifying or worshiping him. Regardless, I suspect he was much more virtuous than the CIA, the American military-industrial complex and most American politicians. Especially since he came out publicly against America’s policy of murder and war as a method of spreading freedom. I would also say that it’s apparent to me that Venezuela under Chavez was much more free than our nation currently is. And the fact that American politicians despised him so much is some level of proof to me of that reality. Regardless, the people of Venezuela should be allowed to decide their own democratic fate and elect whomever they wish. And that is what they did against the wishes of the United States corporate and political interests.

We are going to see an election in Venezuela to replace Chavez in less than a week. U.S. politicians have meddled in Venezuela continuously and there is some evidence the CIA tried both to kill Chavez and then overthrow his democratically-elected government some years ago. Do your own diligence but you’ll find substantial evidence of this effort that is consistent with past U.S. meddling in Central and South America as Smedley Butler notes above. And for the exact same reasons. That is, corporate power. Obviously, since we live in a country where the state is the source of endless secrecy, and self-rule is dead, we don’t really know exactly what is going on in Washington, or for that matter, any of our state capitals. But we do know there is enough circumstantial evidence to investigate U.S. meddling further. That is, if we had a functioning form of citizen government capable of doing so.

The U.S. appears again to be involved in attempting to manipulate this Venezuelan election. (By the way, international election organizations have participated in onsite election monitoring and have sanctified Venezuela’s elections as honest and valid; something that has never happened with U.S. political hypocrites who are constantly meddling with election laws, voting rights, election districting, etc.)

I bring this up because Venezuela’s election is very important for many reasons not well understood by most. America has essentially operated under the Monroe Doctrine for almost 200 years. Not exactly new news for most. That is, Central and South America are fair game for American intervention whenever we deem it appropriate as noted in General Butler’s comments above. That intervention has typically been on behalf of American corporations rather than any form of true justice or self-rule. That policy has led to constant meddling, murder, mayhem and puppet governments in Central and South America courtesy of U.S. politicians and its violent, covert corporate-capitalist-inspired operations. Some of this was certainly rationalized because of past European colonial, capitalist and then Soviet communist meddling. But, two wrongs don’t make a right. It was also the basis of Ronald Reagan’s arms for hostages crimes that apparently may have involved selling crack cocaine to African-American communities in America. Chavez’s election was a karmic response or blowback to that endless meddling that has created massive poverty and injustice while keeping entire nation’s beaten down by American debt enslavement and corporate capitalism. And, importantly, as it pertains to this post and this topic, Chavez championed The Bank of the South and maybe even more importantly, started selling Venezuela’s massive oil reserves to China in yuan thus threatening the lynchpin petrodollar and global U.S. corporate, military and financial hegemony.

The Bank of the South is an institution very similar to the BRICs effort that I wrote about a week or so ago. This bank, formalized in 2009, is meant to get the IMF and World Bank, U.S. institutions of corporate hegemony and debt enslavement, out of South America and to replace the dollar in South American trade with a common settlement currency system designed to encourage economic development rather than economic colonization and exploitation.

The IMF and World Bank have been used by U.S. politicians to enable American corporations to loot, manipulate and dominate South America for the past 65 years. But that policy really gained traction in the last thirty years since Reagan institutionalized neoliberalism or comparative financial advantage as an economic policy and used the dollar trade settlement system to enforce it. It just so happens that of the five of the founding seven member nations of the Bank of the South have seen leaders die of cancer since it was conceived a handful of years ago. Coincidence? We just don’t know. But given The Bank of the South would shut out U.S. corporations, the military-industrial complex, financial institutions and the hegemony of U.S. power, there certainly are very serious reasons to be suspicious.

My point is that with Venezuela championing these efforts at South American independence from U.S. corporate, military and political power, and its substantial threat to the petrodollar, it certainly made Chavez and his hand-picked successor candidate enemy-number-one for the U.S. corporate state. Just as Iraq, Iran and Libya that also announced plans to move away from dollar trade settlement. Without oil settlement in dollars, what else is left? The dollar reserve currency will fail without oil settlement; our nation has nothing anyone wants to buy with those dollars except real estate. Well, and a few other glorified, Soviet-style, state-backed industries. In a nation that has institutionalized a policy to murder its own citizens when deemed a threat to the state, is it really hard to imagine murder being a possibility when anyone’s actions, even if legitimate, threatens to bring down the American corporate empire and the military-industrial complex?

This upcoming Venezuelan election is worth watching. There is little time for the U.S. to destabilize the country before elections but I am quite certain they are trying their damnedest as I type this. Just as they have done in Libya, Iraq, Iran and anyone else who has ever threatened petrodollar hegemony or American corporate state interests. I guess all trade is free trade as long as it involves dollar and American corporate enslavement. That clearly includes within our nation’s borders as well as around the globe. You know, just like all trade was free trade in 1776 as long as it was backed by the British Empire’s private, for-profit bankers debt-based money and controlled by the British trading and land corporations. Corporate capitalism at its finest.

It is actually globalization and the dollars created through the current trade settlement system which is driving another U.S. real estate bubble as I type this. ie, Dollars accumulated by other nations through the dollar reserve currency status or global trade settlement are rushing back into the U.S. to buy the only tangible products we actually “make” that other nations and their elites can buy with their trade settlement dollars. That is, military weapons, genetically-modified foods, financial products & financial transactions (mergers & acquisitions, stocks, bonds, U.S. intellectual property, etc) and real estate; all reflating their respective bubbles. For now.

American bureaucrats in political and corporate positions have actually subverted our citizen’s property rights and, as payment for maintaining their global empire they are allowing noncitizens (foreign corporations and foreign elites) to buy American real estate, intellectual property, publicly-owned corporations, sold off public assets in distressed municipalities and states, etc. as a form of hush payment or legalized bribery to maintain their empire. This while millions of Americans are being shoved out of their homes and denied their own property, economic and democratic rights. Most of these foreign elites are benefactors of American corporate neoliberalism. They include thugs, mafioso, drug lords, dictators, communists and murderers to name a few. The Saudi elites are major buyers of U.S. real estate, foodstuffs, financial products and weapons as an example. Regardless, almost all foreign and domestic investors rushing back into American real estate have benefited from American neoliberal hegemony in some form or another. A capitalist system of economic slavery. Even if they have no idea they are, in fact, supporting it. Hegemony that suppresses global self-rule and freedom.

This is why China, Russia and Japan have acquired so much in dollar-denominated Treasury debt with their surplus trade-settlement accounts. Not that their statist economic policies are any more virtuous because they certainly are not. But there is literally almost nothing else for them to buy with the amount of dollars they have accumulated. What else are they to do with dollars other than burn them for fuel or buy real estate, weapons, foodstuff or American intellectual property, stocks, bonds and corporations to maintain their own mercantilist-statist schemes?

The fact that equities and real estate are once again pushing higher as the U.S. economy has record poverty aren’t bullish signs at all. They are proof points that the dollar trade-settlement system is failing - monetary velocity temporarily screams higher in these sectors due to an excess dollar glut of capitalism’s globalization while money is nearly nonexistent in the U.S. capital-creating and capital producing sectors that actually drive wealth creation for our nation. This is no coincidence. It is contrived by politicians and corporations. On that note, if you think the “newfangled” service economy creates wealth or even surplus value, you really are deluding yourself. It may create marginal but economically-undefinable value but there is little, if any surplus in doing each other’s laundry. That fact will expose itself in due time. Of this I am completely certain. The mythical service economy is nothing more than another scheme rigged by the dumbed-down political and corporate clowns who created this mess.

Isn’t it hilarious to listen to faux economics fanatics talk about the need to avert trade wars after the 2008 crisis? That it was these supposed trade wars that caused the Great Depression and we must not repeat history; a statement I have clearly remarked many times on here is nothing more than propagandized nonsense. Corporate capitalism is in itself a constant, covert system of violence. Capitalism is itself a never-ending trade war. Corporate capitalism, an invention of the state, is a constant source of violence, predation and exploitation. It is inherent in its structure. As an invention of the state that is enforced by the state, capitalism was a control system created by European feudal lords to loot the world. It is a nondemocratic, statist, class-based control system that was devised by elites to maintain their grip on economic and political power while exploiting the only method they had to accomplish this. That is off of the labor of the masses, be they slaves, indentured servants, born without class rank or corporate-controlled assets that we now call employees. And after their political monarchies fell, it was the only way they maintained their structure of class, title and wealth.

Europe is still enslaved to the same elites since the fall of aristocratic, feudal Europe less than a century ago primarily due to corporate capitalism. Who do you think is causing the austerity crises targeting the middle class and those without a voice aka the impoverished in Europe? The same aristocratic families and elites that were once part of the ruling class of feudal lords, private for-profit bankers and corporate capitalists. The same forces that started World War I for reasons of maintaining capitalist empire, power and class. There is almost complete social stratification in Europe. It is the same stratification that has existed for 500 years. It is a system of dead weight at the top where the wealth remains concentrated in the same aristocracy that has always existed. Corporate capitalism is a major source of this transgenerational aristocracy. Corporate capitalism, as it has always been practiced, (not as a democratic, merit-based economy needs to be) is not consistent with self-rule or freedom. We see that in the endless injustices created by capitalists in Europe today. The reality is corporate capitalism is the last vestige of European feudalism that remains with modern societies and it almost certainly in the process of dying just as another violent and repressive state-enforced control system, communism, did. Just as monarchies and birthright privilege did.

I have noted on here before that this control system can only continue with the use of greater and greater violence and force. You must appreciate how this dynamic is required to maintain any inherently unstable, complex finite-state-based system that continues to destabilize. We see this around the world with excessive, almost unbelievable use of force by the most outrageously outsized- military the world has ever seen. A military that serves a primary intent of enforcing a dollar-driven global control system rather than America’s defense or global democracy. We see similar force being applied to Europe, the founders of corporate capitalism, as it too spins out of control. This excessive force is necessary or the system would destabilize out of control. Without the use of force, we would have already seen the end of dollar hegemony and American corporate empire and a birthright-privilege-driven aristocratic Europe long time ago. That said, I wouldn’t be so certain that Russia, Venezuela, China or any external factor will destabilize this system. Some see this so clearly they believe a dollar collapse is inevitable. The U.S. control system is beyond historical precedence. It is massive in its power and has countless adherents, global elites and leaders, who have become rich off of this exploitative system. Rich at the expense of the vast majority who have suffered needlessly. You know, Adam Smith’s invisible hand of self-interest.

I seriously doubt any nation or nations can take this system down. The U.S. has knocked them off one by one whenever their threat became large enough. The only force large enough to potentially stop this system is corporate America’s colony, China. But doing so would come with grave consequences for the communist elites. Remember, while there have been countless people calling for a dollar collapse, the long term thesis on here written of countless times is the dollar is putting in a major bottom and likely to rise violently at some point. I said it before 2008, when it rose violently during the crash, and evidence based on fact (supply & demand) still supports this outcome. The dollar doesn’t need to collapse for this system to fail. It may be counterintuitive to many but it certainly is the most likely outcome given how this system is constructed. Remember, this system eventually will fail for no other reason than it requires greater and greater force, exploitation and predation applied not only to other nations but to the American people not because a prospective dollar collapse. To me, the most plausible outcome for this system is the Soviet or Roman Empire outcome of failure from within due to the endemic contradictions or instabilities of this control system.

Saving this system is impossible once the chain-reaction of destabilization has reached critical mass. The only question is when did or will that happen. There is ample evidence that happened under Reagan for many reasons. That includes the ideology that Reagan took mainstream that government deficits don’t matter. This was clearly forbidden in Bretton Woods because other nations recognized that excessive money creation by the state would lead to empire. Hence the limiting factor of gold backing agreed to in Bretton Woods. (The Triffin Dilemma is not a necessary function or outcome of this system as many have incorrectly remarked it is.) That said, the original Bretton Woods system was doomed to fail at some point because gold as a form of global trade settlement does not work under capitalism for many reasons. Given that capitalism is an invention of the state and relies on the force of the state to survive, and that private, for-profit capitalism is driven primarily by the need for greater and greater profit, a dynamic also driven by force, all that happens under a gold trade settlement system is that the game becomes which corporate state can acquire all of the world’s gold or all of the world’s profit. Now, can anyone tell me how this exploitation benefits your fellow man in other countries? Taking their profits for your nation’s self-interest? Is this self-rule or consistent with spreading self-rule? Well, gold trade settlement also permanently enslaves impoverished nations to its capitalist masters and creates exploitative and predatory capitalist mercantilist and colonialism policies. There are certainly other major flaws in this system as well. Gold is not democratic money as explained on here countless times. It is a control system of looters and lords.

The desire for the profit-motivated capitalist state to acquire all of the world’s gold is what led to the U.S.’s disproportionately enormous Great Depression collapse when it had successfully accumulated most of the world’s gold or its profits in 1929. This was nothing more than state-sponsored economic warfare. The policies that created this dynamic were exploitative, predatory and violent. This is endemic to private, for-profit corporate capitalism created and enforced by the state. If you are an ego-motivated capitalist, then you certainly have no problems with exploiting other nations or people. But, the intent of discovery and truth recognizes others around the the world were exploited and preyed upon in order to loot the world under this dynamic. Is the intent of garnering the majority of the world’s profits, and in the process exploiting its resources and peoples, really any different than bombing another nation into submission? Is it any different than American military interventionism on behalf of capitalism we see today or which Smedley Butler opined about a century ago? Clearly these corporate capitalist principles are not consistent with democracy, freedom, self-rule, humanism, human-centric philosophies or any of the world’s religions. Well, other than the religion of ego-motivated selfishness and immorality. It’s the same insanity that has created today’s mess.

Contrarily, you might consider that China’s state-driven trade policies today are the exact same policies that pushed the U.S. economy into a total collapse starting in 1929. China’s state-enforced, predatory, violent, mercantilist capitalist policies have looted the world of its gold (U.S. dollars in today’s capitalist trading system) and it will pay the consequences with its massive capitalist production overcapacity. Something no one seemingly understands as the dumbed-down economics, political and financial communities continue to wax poetic about China as they do about free market capitalism. Once again, debt is not the issue the world or any nation is facing. Don’t believe mainstream media, financial oligarchs or politically-contrived myths planted by the criminal class who enslaved us to this debt.

Reagan clearly abrogated the U.S.’s legal responsibility to the rest of the world by institutionalizing the policies that deficits didn’t matter. This clearly created both a military and corporate empire and broke the intent of the dollar-based global trade settlement agreement with violent, exploitative, predatory institutionalized economic policy. (Yes Nixon broke the gold peg for benefit of waging American wars but Reagan institutionalized it with formal economic policy and with the massive military spending needed to create and enforce corporate capitalist empire.)

The Reagan administration’s use of the IMF and World Bank as blunt objects of Reagan’s militant foreign policy was also an abrogation of that legal responsibility to Bretton Woods partners who agreed to use the dollar to settle international trade. This was the first truly institutionalized use of these systems as extensions of militant American economic warfare rather than being used as they were intended for global development and global good. This overt and intentional change created by Reagan’s policy enforced the dynamic of American-created neoliberal-economic/financial-comparative-advantage between nations that enslaved global production to declining wages and American empire. It also created the dynamic of debt & austerity used as a political tool to “loosen” up global assets in developing economies for American corporate theft. This enabled U.S. elites and corporations to loot the “developing” world. Like in Central and South America. Like Venezuela. Chavez clearly came to power as backlash to Reagan and Clinton’s neoliberal policies. (The Reagan administration also looted the Social Security Trust Fund and middle-class Americans to pay for tax breaks for corporations and elites. The Reagan administration was comprised of the greatest number of criminals in history as noted on here before. Is it really any surprise politicians renamed an airport in Washington D.C. as Ronald Reagan National Airport? He gave megalomaniacal American politicians unprecedented power and purpose by creating empire.)

Now it is just a mere formality as to when this control system fails. In other words, George Bush senior was right at the time to call Reagan’s economic policies voodoo or nonsensical. But he was right for the wrong reasons. ie, His remark that deficits did matter was defined by the support of a faulty, anti-democratic, private for-profit, debt-based monetary system. That said, we certainly don’t want the state to spend all of our money which simply enslaves us to a ruling class like the Soviet Union or the British Empire or as Reagan and all politicians have since.

The reality is U.S. capitalism was collapsing right alongside Soviet communism during Reagan’s reign of terror; something I have noted on here countless times. But it was papered over by money printing and global looting; a luxury the Soviets didn’t have. So much for the mythical political propaganda of Reagan’s legacy in defeating communism. Reagan’s faux legacy still continues today and was (neo)liberalized even further by Clinton, Bush and Obama. Reagan’s true legacy is the beginning of the end of deregulated capitalism. Capitalism that had to be deregulated by Reagan because that was the only way to save it. Yes, capitalism was already collapsing during Reagan’s time in office. As noted on here many times, America’s peak economic output happened around 1980, give or take a few years. More on this another time.

Again, the failure of this control system is all good news (long term) for the U.S. economy and democracy. That is, if the U.S. survives in its current form. It is clearly plausible that it may not. Our economy could recover rapidly with the right policies as I have noted countless times on here over the last eight years. When this system fails, it will suck to be you if you have been looting the U.S. public treasury – global elites benefiting from American-created neoliberalism, Chinese communists, Saudi Arabia, U.S. elites, the military-industrial complex, hyper-consumerism aka the mythical make-work “service” economy, American political parties, the investor class, Wall Street, industrial food corporations, the corporate healthcare system, multinational corporations, etc. I hope this will give you a greater appreciation for why so much force is being applied to maintain this system. Because with out it, the entire Ponzi Scheme of control will collapse. Not just in the U.S. either.

This is exactly how the Soviet Union failed. Exactly. And its state-propped up corporations - control systems - fell with it. The Cold War was never about freedom versus communism. It was the battle of “isms”. It was a war between corporate capitalism and communism as two state-enforced economic control systems. Our society is substantially similar to that of the Soviet Union in its structure. We have state-backed corporate and political bureaucracies that essentially control the people in this nation. We don’t produce what we want or need. We produce what the bureaucrats want us to produce. Sometimes they are corporate bureaucrats and sometimes they are state bureaucrats. Just like in Mother Russia. And we produce it in excess. Just like Mother Russia. There is no self-rule in this nation.

What corporate capitalist proponents fail to realize in our corporate capitalist system of control only exists through the force of the state just like state-propped up Soviet corporations. And that central planners exist in capitalist corporations just as they did in Mother Russia. In fact, central planning in corporate capitalism is necessary for its success. Without quota-driven overproduction created by corporate planners, profits disappear and so does capitalism. This isn’t some new development either. This is corporate capitalism in its full regalia.

In a truly free society with true economic freedom, can you imagine people volunteering to work as mindless drones collecting serfdom debts under the dull hum of fluorescent lights in their brown JP Morgan cubicle for the benefit of an authoritarian megalomaniac like Jamie Dimon? Or chained to a desk, essentially unable to move for twelve hours a day, staring at miniature parts through magnifying goggles to overproduce smartphones so you can have a shiny new toy every six months and do this for a slave wage of $2 a day? Or overproduce enough prescription drugs to turn our nation into a society of emotionless zombie workers fit for corporate state exploitation? Or purchase endless amounts of generally useless junk made through a nonliving wage after being fed a healthy dose of marketing propaganda in TV infomercials whose intent is to prey on your insecurities? And then be forced to the front lines to wage economic war on behalf of our corporate masters and do so for the lowest possible wage? Does anyone actually think people voluntarily participate in these and other forms of corporate slavery needed to keep this system going? Seriously? Ego-motivated delusions and rationalizations. Is this really different than the dull hum of a meaningless existence as practiced under Soviet control? The Soviets were all alcoholics. We are all drug addicts. Well, and work addicts, alcoholics, gambling addicts, shopping addicts, and on and on – outcomes of emotional dysregulation created in large part by an inhumane corporate capitalist social value system. The reasons for dysregulation in the Soviet Union and the United States are the same. Being forced into a Godless state-enforced system of control that steals their humanity. Corporate capitalism has only ever survived because the state forced people, like cattle, into this control system just like they forced people into other control systems like communism, socialism and every other “ism”.

“isms” and other institutions of control, or institutions of the ego, are created by weak people for the benefit of weak people. They are created so weak people can prey on and exploit others who are vulnerable through methods that wouldn’t exist without isms. They are also created so weak people can become powerful by making strong people weak. This is done by forcing people into a conscription system that allows weak people – those who will do anything to their fellow man to gain authority, power, status, class and control - to become powerful. While truly strong people will recognize how unjust such a system is and will have a harder time rationalizing selling their souls to the proverbial devil (the “ism” created by the ego for purposes of control) in order to gain such ego-motivated authority, power, status, class and control. Or a strong person will eventually rationalize the abandonment of his virtues to conform to this exploitative system. A truly strong person, one who recognizes theirs strength comes from their inner divinity and thus recognizes their love for all of humanity, understands that no person should ever be granted authority over another human being. And that no person should ever be conscripted into economic slavery or any control system based on force. The weak person almost always rises to the greatest levels of power in any “ism” or any bureaucracy and that dynamic weakens and destabilizes everyone else.

We need solutions that strengthen all of our citizen’s inherently divine or decent qualities including compassion, community, economic freedom and creativity so that all people have an opportunity to become who they were meant to become. And as part of that to be emotionally-responsible and where appropriate, physically-responsible for themselves. Only with responsibility comes the freedom of empowerment. Not to become who capitalism or any other forced “ism” tells them who they should become. We need an economic framework that protects vulnerability rather than exploits it. So that all people have an opportunity to walk the path leading to their own greater divinity and power. Then all people will be raised to a higher level of quality-driven existence through the expression of our divinity and our humanity.

Never in the history of humanity have we seen such a growing global mindfulness of how insane this corporate capitalist control system truly is. Even if just and honest people in the system are too afraid to admit it. Too afraid because they are forced to participate in the system to survive its endless violence.

The Soviets maintained empire by ensnaring a sphere of influence based on a control system that benefited a ruling class in its satellite or Soviet-bloc states just as neoliberalism has for those states in America’s sphere of influence be that Japan, Russia, China, emerging markets or elsewhere. Communist China, a wildly corrupt class-based (control based) “ism” with rampant poverty, has simply created a new class of elites that have benefited by submitting to the American corporate empire while hundreds of million of its citizens live in abject poverty.

As the Soviet empire started to destabilize, it was unable to purchase its quota of goods and services from its satellite nations, the Soviet-bloc, that kept these nation’s peoples employed (docile or controlled) and their corrupt elites beholden to their Soviet master. Over a period of years the Soviet Union was increasingly unable to buy its quota of goods from the Soviet-bloc and the working class in these nations started suffering greater and greater consequences. In other words, the Soviet Union’s empire was based on a dumbed-down, proletariat, quota-driven system of corporate overproduction just as corporate capitalism is. So, when overproduction was no longer sustainable because of this control system’s many inherent contradictions aka instabilities, the system became even more unjust, people more impoverished and the control system started its destabilizing descent. Soviet and bloc wages were suppressed even further so that more money could be diverted into maintaining empire. ie, More of the wealth of society could then be forcibly-diverted into guns rather than butter –> greater and greater control needed to maintain a control system from destabilizing. You know, just like the U.S. today. Much of this was first experienced at the edges of Soviet empire. Can you say Solidarnosc? And then Perestroika? Both growing signs of a control system’s inability to maintain stability. We see the same wage and impoverishment dynamic has been unfolding in America for decades. And just like in the Soviet Union this statist-driven austerity for poor bastards is sold by lawless elitist political criminals as a necessary sacrifice for our own good. Umm, that is the reason for our massive debts. Living wages are denied so that the wealth of society can be spent so the bureaucrats and central planners can expand and maintain corporate capitalism.

Our corporate capitalist system too is driven by that same dumbed-down, proletariat, quota-driven overproduction and its necessary propagandized glorification of work to serve our private, for-profit corporate capitalist masters. Capitalism too is driven on the artificial requirement for never-ending, quota-driven production increases to serve its artificial and unsustainable need for growth. This contrived system of control is need to serve the primary need of ever-increasing profit of private capital or capitalism. This control system maintains its power under the exact same dynamic as the Soviet and Soviet-bloc elites. That is, by enslaving a society to state-enforced, quota-driven conscription or corporate work. Corporate capitalism, just as the Soviet Union, too is proletariat in that glorifies work above all other human expression because doing so is necessary to maintain its control. Quite honestly, both the U.S. and the Soviet Union are/were enslaved to a system of make-work. This enslavement is not only physical but because it is propagandized and glorified by the corporate state, it is also psychological. ie, It is institutionalized.

The economic parallel today includes U.S. hyper-consumerism. This is both a function of capitalism and because it is concentrated in the U.S., it is a function of corporate capitalist empire enforced by the dollar. It would be the same were the yuan or the pound were the reserve currency. ie, The respective nation would have the same ability to over-consume. If the world’s reserve currency were a basket of currencies, it would still be the same. Capitalism would still require more nations to over-consume in order for it to survive. Over-consumption is an inherent flaw of capitalism given it is a discounting mechanism for future production as noted on here before. In other words, it is essentially the same Soviet quota-driven overproduction system requiring the purchasing goods from across our empire and sphere of influence to maintain control. But rather than the Soviet-bloc, for the U.S. it is China, Japan, emerging markets, etc. that are enslaved into the dollar-based global capitalist production system. And if it wasn’t the U.S., it would have to be someone else. Regardless, in order to keep overproducing we must keep shopping. You know, like George Bush told you to do right after 9/11. By the way, the pseudo-capitalist service sector is also reliant on this shop till you drop paradigm, a point clearly missed by the dumbed-down proponents of a post--productivity or even post-science economy. Now we are now witnessing the same Soviet-style overproduction collapse today around the world as Americans and others, denied their economic freedoms and living wages necessary to maintain empire and capitalism’s requirement for constant growth, we have increasingly exhausted our savings to keep this global overproduction Ponzi Scheme afloat.

When other nations in our sphere of influence can no longer rely on the U.S. to buy their endless supply of excess production and outright overproduction, the control system loses its fundamental influence or power and worse. Just as the Soviet system lost its influence over bloc nations for the exact same reasons. This is easily measurable today by the systemic crisis in global unemployment, underemployment and poverty in the capitalist system. This unemployment, underemployment and poverty is massive and unprecedented in scale. It is a far larger problem than the substantially smaller Soviet empire or communism’s forced, quota-driven production. This control system cannot and will not be restarted. Period. There is no recovery and never will be as I have uniquely written of incessantly over the years. Nor are we going to export our way to prosperity (more overproduction) as Obama wrote in the Wall Street Journal op-ed during his first term. Something I mocked as nonsensical blatherings of a bureaucrat at the time of its printing. Now some are starting to recognize something systemic is wrong and it is a global issue. This is what is wrong. Capitalism is dying. The horror of globalization, as it has been created by our corporate capitalist masters and their beholden political idiots, is dying.

Not surprisingly, many pundits are incorrectly focused only on the U.S. because it drives their confirmation bias. This narrow fixation or false perception of reality and its associated confirmation bias prevents their minds from seeing the true reality as it exists. This is a very key point and the most important to remember in this post –>> The U.S. is not failing. The control system of corporate capitalism is failing across the entire globe just as communism did. And that means America’s corporate capitalist empire, the corporate state and modern capitalist society are failing along with it. You read it here first. I have been writing exactly this for years.

Don’t let anyone tell you the issue in this nation or anywhere else is debt. Debt is an illusion created by corporate capitalism to enslave people to a system of overproduction. The issue of our day is that corporate capitalism itself is dying and the U.S. corporate capitalist empire and the financial slavery used to create it must also therefore die. That is why we see excessive use of force around the world today. The corporate capitalists are trying to save the system and it must exert greater and greater control as this complex control system continues to destabilize. Just as happened in the Soviet Union and Soviet-bloc states. Once again, this is corporate capitalism as it has always been practiced. It is only created and maintained by patriarchal state force and it is violent, repressive, exploitative and predatory. Those who wax poetic of the good ole days of capitalism are deluding themselves rather than opening their minds to discovery and truth.

So if you didn’t know, now you know why Japan has been experiencing deflation for 25 years yet hasn’t had a debt collapse. And why the rest of the world has joined Japan just as I wrote it would back before the 2008 collapse. Debt deflation is a myth perpetuated by a flawed post-facto analysis of the Great Depression by Irving Fisher. One that has been adopted by people who outsource their thinking. Debt is a dependent variable in the deflation equation as I have noted. And if you didn’t understand before, you also now know why the Federal Reserve cannot fix our economy by printing more money. Do we need to build more roads and bridges and could we with printed money? Sure we could. But Japan has been building & tearing down and building & tearing down bridges, roads and buildings for 25 years. They have turned it into a system of permanent make-work. Yet they haven’t solved any of their economic issues. And they never will under this global control system.

Do you know how to solve these dilemmas permanently and democratically? I have hinted and remarked of numerous structural changes over the years. No, it isn’t another “ism” or a dumbed-down state glorifying proletariat work. Gold-backed money? lol. That would crash this system quicker than anything else I could imagine. The answer doesn’t even involve money. The answer certainly isn’t more jobs either. That’s simply more nonsense trying to keep us enslaved to a dumbed-down control system of state-enforced corporate work. To give you one indication of how proletariat we have become as a corporate capitalist society, what invariably is one of the first things someone asks when they meet you? What do you do for work? More than anything else, corporate capitalist society defines us by our label of work. How rote and meaningless that we create a primary label for people in society based on what they do for work as opposed to uncovering the many layers of their inner beauty? When your identity is primarily perceived through work, who cares about anyone’s inner beauty? There is little social demand to even develop it. How often have you experienced that reality? Corporations and the corporate state don’t care about your inner beauty. Or your uniqueness. Or your emotional development. They care about your mindless conformity to a system of conscripted work. And boy do good corporate capitalists love to work. Just like Mother Russia.

I can tell you how capitalism has historically solved the issue of overproduction. Well once you understand this is a control system of violence and exploitation, it becomes obvious. War. Sometimes economic. Sometimes military. What better way to remove the world’s overproduction than to blow up your competition and then start all over again? Of course, sometimes we don’t even need to wait for overproduction. Just blowing up the competition for profits or to achieve greater profits or new markets can’t seemingly wait. Then there are the endless trade wars of capitalism. Do you know how many wars, both overt and covert, trade and military, the world has fought in the last 500-odd years because of capitalism? (Capitalism was practiced well before Adam Smith wrote The Wealth of Nations. He simply wrote the magnum opus for corporate state-based corporate looting.)

Are wars actually planned by capitalism? You know, like Soviet planners? Hmm. Some certainly are. Trade wars are created with intent. They are planned. This global capitalist system is a planned trade war. Our political and corporate masters conspired in secrecy to create it. Now capitalism may not plan all military wars but as Smedley Butler noted and we see today, they certainly conspire to create some wars. And, as noted on here before, World War I was created with intent by capitalism. War is simply another outcome to the state-enforced violence of capitalism. Competition for greater and greater profits and greater and greater resources needed for those profits and the greater and greater markets needed for corporate overproduction simply leads to the inevitable. As Randolph Bourne opined, war is the health of the state. That certainly applies to state-enforced capitalism’s economic warfare. Warfare that is always fought by the minions as both corporate slaves and in its military campaigns. Umm, that would be us. Bourne’s remarks more pointedly are simply that the state exists through violence and thus must maintain this violence for its own health or existence. Capitalism, war, empire… just different manifestations of state violence.

Do we need to make things society needs or even wants? Of course. Do we want to do this under the control over Soviet-style government bureaucrats? Hardly. I don’t want to drive a Trabant or buy a Soviet-built house. But we don’t need this violent overproduction and the artificial need (control) for endless corporate capitalist profits that unnecessarily rapes the natural world, preys upon the mass of people to maintain its control, subverts democracy for the benefit of the few, forces societies around the world into unnecessary, destructive emotional competition, economic slavery, conflict and violence, and socializes all of its losses while privatizing the gains for a very few. Not through the predatory, private, for-profit corporate capital mechanisms that define capitalism as it has always been practiced. We have turned the world into a garbage dump and an internment camp for most people. There certainly is a substantially more quality-driven existence than this.

Maybe now many can start to appreciate why I have remarked that money is nothing more than an institution of control and that some day we will see the concept of money disappear. Forever. There is endless money around the world for state-enforced overproduction required by capitalism but seemingly no money for billions of people around the world to acquire that overproduction of food, to cite just one example. Ditto with healthcare. Ditto with homes. In many regards, the process of money’s death has already begun. What are food stamps? One could consider them to be a form of specialized money. Or, they could be considered the start of a trend in a movement away from money. Why can’t everyone have a food voucher in this nation to receive their natural right to our nation’s food supply? Obviously with natural right stipulations of personal responsibility to community or a nation or whatever. This is simply one instance where money is showing appearances of dying. There are many. Is the trend of it temporary or a permanent trend? A world without money would be a far more quality-driven existence for humanity and true freedom. And by quality, I mean something along the lines of Robert Pirsig’s metaphysical view of quality. Not a new Ferrari or second mansion driven by the self’s fatally-flawed subject-object perceptions and its insatiable desire for amusement. Another post for some day in the future.

"My friends, each of you is a single cell in the great body of the State. And today, that great body has purged itself of parasites. We have triumphed over the unprincipled dissemination of facts. The thugs and wreckers have been cast out. And the poisonous weeds of disinformation have been consigned to the dustbin of history. Let each and every cell rejoice! For today we celebrate the first, glorious anniversary of the Information Purification Directive! We have created, for the first time in all history, a garden of pure ideology, where each worker may bloom secure from the pests of contradictory and confusing truths. Our Unification of Thought is a more powerful weapon than any fleet or army on Earth! We are one people. With one will. One resolve. One cause. Our enemies shall talk themselves to death. And we will bury them with their own confusion! We shall prevail!"

Institutions of the ego or of control always fail. Corporations, communism, the state, capitalism, rules, institutionalized science, rationality, university-conscripted corporate education and laws not based on natural rights…….. On and on and on. It’s just a matter of when. Some may question if this is just another hiccup for the systemic violence and inherent contradictions or instabilities of capitalism. Don’t bet on it. How do you plan to create jobs for the 50 million Americans on food stamps? Or reverse the fortunes of 150 million Americans who have just enough to barely make it? Now, take this dynamic global and it is in the billions. Remember, one of my long term theses is that we are in a cycle of volatility – one of the most accurate outcomes written about on here over the last eight years. There are esoteric factors not appreciated by mainstream or institutionalized perceptions of reality that are driving this crisis. These factors are are now. In this cycle. And if you open your eyes, you see it everywhere.

Just as when the Soviet’s control system unwound it created collapse all throughout its empire of Eastern Europe and elsewhere, so too will the entire corporate capitalist control system around the world likely experience the same fate. Does that mean a post-apocalyptic world of Mad Max? Well, if the capitalists have it their way, then yes war and violence is possible. Remember, the Soviet Union and Soviet-bloc really fell with little more than a peep. A system of inherent instabilities and contradictions that is perpetuated by statist ego and ego-force only exists through illusion. One day people woke up and the illusion had disappeared. Freedom is first a state of mind. Releasing our ego’s attachment to illusions that create and perpetuate our own suffering.

DARPA’s Involvement In Obama’s Brain Research Initiative

noreply@blogger.com (TimingLogic) — Sun, 07 Apr 2013 13:14:00 +0000

I’m highly dubious of the purity of Obama’s just announced brain research initiative. With DARPA (the defense department’s research agency) involved and with institutionalized secret government, I suspect this may have less than honorable intentions. Especially since both Republicans and Democrats are hailing the research. We certainly don’t have the transparency to know that but we do have a government that murders, tortures, manipulates, lies, etc. And, there is a log and major history of brain research by the military-industrial complex that is violent, exploitative, predatory, toxic, manipulative, dishonorable, violates medical ethics, violates democracy and is clearly illegal. There is a lot of public domain documentation and fact out there on this history. It’s not conspiracy theory.

Dr. Colin Ross, who I know is not a fringe element in society, has written a book on military experimentation on American civilians. (interview) Much of this research was performed on people without their knowing it. A lot was undertaken at North American universities by psychologists and psychiatrists. DARPA and the corporate state own our universities. And if professors want to publish or want to bring money into the universities or want to further their professional credentials, DARPA, the CIA, the military and corporations are the major funnels of money. This has led to a massive, institutionalized conflict of interest, massive junk science and even, in some regards, a predatory university system.

Obama’s Crony Bet On Fisker Headed For The Dung Heap

noreply@blogger.com (TimingLogic) — Fri, 05 Apr 2013 22:16:00 +0000

Well, what is there to say? Obama doesn’t have a clue what he is doing. Period. About anything. Well, I suppose he must be pretty good at basketball and golf because he spends so much time doing both. I’ve said all of these crony investments are going to fail and that’s working out quite nicely. Tesla’s next.

The arrogance of politicians to believe they can control our economy is beyond words. All they do is piss away other people’s money to feed their palpable egos.

Title link here.

European Sovereign Debt And The S&P 500

noreply@blogger.com (TimingLogic) — Fri, 05 Apr 2013 14:19:00 +0000

I have shown this graphic before. It is a composite of European sovereign debt in red overlaid on the S&P. The correlation is nearly perfect except since the start of 2013 when the S&P disconnected and pushed to new highs on the threat of new debt concerns in Europe. Without looking, I believe it was the first trading day of the new year and they actually gapped the S&P futures market upward. Something that never happens. So, I’m not sure who did this, but it was contrived. We never filled that gap. Trader talk that many people may not understand but I’m short on time so no explanations.

Let me end by saying many U.S. corporations and U.S. banks are headed for disaster if we have a full European sovereign debt crisis or a repudiation of European sovereign debt. That is a reason for this correlation. Maybe I shouldn’t use the term sovereign since Europe is enslaved to German fascism. Financial algorithms (that will ultimately fail) drive all of these financial market movements. Why the disconnect in 2013? A rush of dumb money? Central bank buying? Who knows.

Chris Hedges–The Treason Of The Intellectuals

noreply@blogger.com (TimingLogic) — Wed, 03 Apr 2013 14:07:00 +0000

I actually agree with most everything Hedges writes in this article. In fact, in some way, shape or form, this article’s premise has been a topic on this blog numerous times. That said, I certainly do not believe there has been any treason of intellectuals. True intellectuals, like Albert Einstein, as one who is recognizable to everyone, never sold out.

The very premise that liberal elites are intellectuals is preposterous in itself. The very concept of liberal and elite evokes concepts of class. Class is driven purely by ego-motive. Ego is driven exclusively by an intent to control and defeats the purity of discovery and truth. I generally chafe at any perspective of liberal or conservative or any ideological value because there are truths found in both governing values of conservatism and progressivism. But, beyond conservatism and progressivism there is an even greater truth derived by the consideration of a stateless world. A world where natural rights and true freedoms exist. In this greater truth, both conservatism and progressivism are irrelevant, meaningless cults of control.

By definition, an intellectual cannot be associated with any clique or class or dogma or bureaucracy or ideology or political party or political belief system or social stratification of any kind. His mind must be free and unencumbered by any form of stratification or any type of faux allegiance to anything or anyone. An intellectual uses mindfulness to become aware of his own faulty belief systems, subconscious and unconscious bias & dissonance, his own ego-motive’s intent of control and an awareness that rationalism and logic, while important, do not define all truths. So, while we must embrace rationalism and logic, their truths are, in fact limited. Frankly, a true intellectual cannot consider himself an intellectual, a meaningless social label, but only a seeker of the purity of discovery and truth. And, that includes the purity of discovery and truth that resides within our higher self as well as the world around us because if I don’t really know who I am, how can I actually appreciate my own ego’s rationalizations of my behavior and beliefs or how I perceive the world around me?

If you understand the limits to the self’s perceptions of reality, we can start to understand how literally dumbed-down our society has become. And how liberal elites were a major contributor to the dumbing-down of science, intellectualism, reason, human decency, human freedom and social values.

If we truly embrace the purity of discovery and truth, and actually understand what is going on today both economically and socially, (systems of control –> perceptions and illusions) we can appreciate how anthropogenic global warming, peak oil and the Palestinian issue, to name but three examples, are driven by liberal fanaticism and social cults. They take complex issues that involve many known and even more unknown, understood and even more not understood factors and inputs and turn them into simple-minded, dumbed-down ideologies and fanatical cults. Then when anyone challenges those fanatical beliefs, they aren’t met with the purity of discovery and truth but instead a ego-motivated fanatic intent to control.

I could make the same remarks about the breadth and depth of conservative fanaticism as well. It too is everywhere and equally destructive to true intellectualism. Liberal fanaticism, a false truth, can only exist with a counterweight of conservative fanaticism, an equally false truth. This is all driven by social stratification and the rise of politics, corporations and other institutions or bureaucracies of hierarchy as a form of near total control over our society. Control that subverts intellectualism, the purity of science, discovery, freedom (true freedom exists within the uncluttered mind) and truth. The institutions that have gained hierarchical control over society have led to overwhelming subversion of truth and a resultant dumbing-down of society. Any complex ecosystem in nature that experiences this temporary illusion of control always reverts to a prior stable state, enters a new stable state or collapses. That is why the corporate state is failing and its creation, modern capitalist society, is dying. Systems of control including politicians, the state and corporations aren’t going to save anything. They are simply making the ultimate destabilization far worse.

There certainly are many intellectuals in our nation. Untold millions who have an ability to share their ideas and gifts with humanity. But, their voices aren’t being heard. This dumbed-down system of control has drowned them out. And, as systems of control, that is exactly as intended.

A more appropriate title to Hedges’ article may be The Treason of Liberal Elites because they certainly aren’t intellectuals. They are driven by the manifested self and its intent of control.

Those who doggedly challenge the orthodoxy of belief, who question the reigning political passions, who refuse to sacrifice their integrity to serve the cult of power, are pushed to the margins. They are denounced by the very people who, years later, will often claim these moral battles as their own. It is only the outcasts and the rebels who keep truth and intellectual inquiry alive. They alone name the crimes of the state. They alone give a voice to the victims of oppression. They alone ask the difficult questions. Most important, they expose the powerful, along with their liberal apologists, for what they are.

Hedges remarks sound a lot like Thoreau’s Civil Disobedience. As well they should given the parallels to the times in which both were written are so similar.

Michael Hudson - Public Banking Is Needed To Stop Our Economic Destruction (Created By The King’s Private, For-Profit Banking Criminals And Politicians)

noreply@blogger.com (TimingLogic) — Mon, 01 Apr 2013 15:38:00 +0000

I thought this post fitting today because it is April Fool’s Day. And, because we have been fooled repeatedly for the last two hundred years by banking criminals. It’s time to end the truly unjust, antidemocratic, criminal foolery of private, for-profit banking forever. Private, for-profit banking is responsible for endless crimes against humanity and against democracy. It’s time for democratic, public banking.

I’ve linked to Michael before and am very fond of his honesty and his detailed understanding of reality. His understanding of reality clearly is driven by an intent of discovery and search for truth. I have only seen a few people across the world that can actually understand economics, money and banking as a functioning trio and can put this entire crisis together with the breadth and depth of knowledge needed to see clearly what the real issues and solutions are. He is also one of a dozen or so people I have run across that actually understands how public banking would literally change the world. Literally. Ellen Brown is another I have mentioned on here before. The changes afforded through public banking are more transformative than any single person could ever imagine. Literally. Because the changes would be so dramatic and so far reaching that our society and the world would look nothing like it ever has.

It’s impossible for any single mind to imagine all of the consequential changes of public banking. But simply everyone who wants to participate in a merit-based democratic system could own a house or apartment, could have enough food, could have economic opportunity, could be granted a decent education and could share in our society’s wealth to enough degree that no one would want for Maslow’s essential human needs. Then democracy could share all of this abundance with everyone around the world to empower them to do institute the same empowering, democratic ideals and systems in their nation. The entire community of life could then share the fruits of human ingenuity and freedom with our brothers and sisters everywhere. Why would we ever again see war when the power would be given to the people and not politicians? We could democratize economic opportunity and freedom across the entire world rather than colonizing and enslaving the world as private, for-profit banking, corporations and capitalism do today. Of course, they can only do so backed by the force of the state.

Most every perspective on this crisis or proposed solutions are flawed in some way because they most often discount the complexities and interconnections of how the system has actually evolved and what is needed to actually create a functioning democratic economy. Most people truly have no appreciation of how pervasive injustice and corruption is and always has been due to private, for-profit banking. Michael is at the top of that list of truly competent minds that I believe can understand and present understandings without any ego-motive or hidden agenda. Mind you, there is a lot of subconscious confirmation bias, dissonance and unresolved ego-motive out there that recommends solutions that are flawed, biased and even destructive.

All of the remarks about getting government out of banking or making money public while keeping banking private or doing away with fractional reserve banking or only loaning money a bank has or returning to a gold standard are so flawed I could blow a hole in them the size of Alaska. The answer is democratic public banking and democratic public money. Period. They cannot be separated. Money and banking are manifestations of the self or ego. Therefore, they are institutions of control. Liberalizing these institutions from private and state control are the only way to democratize and free them. Democratic banking and money are institutions of empowerment and freedom. Any other manifestation of these institutions are simply other attempts at control. Of course, the best answer is to do away with money altogether. Then there is only freedom and democracy. You know, like on Star Trek where money had become a relic that had been deemed unnecessary and thus was abandoned. lol

Public banking is not socialism either. It is the only form of democratic banking. The people making ludicrous self-interested or ego-motive driven markets either don’t even understand what socialism or capitalism are or they are fear-mongering or lying.

Public banking is the only form of democratic banking. Private, for-profit capital can never have the primary intent of serving democracy. There can be no structure for private, for-profit banking that does not include conflict of interest with democratization of our capital. Thus, this system always leads to parasitic enslavement and class struggle that simply is diametrically-opposed to democracy. It does not serve society or democracy by turning over our capital, credit, development or monetary rights to a private institution of taxation and servitude. Trying to save this system is trying to save a system that has always subverted democracy and always has involved public theft. It was the king’s private, for-profit banking, usury and attempted debt enslavement that was the primary driver for the Revolutionary War. Usury and debt enslavement that the parasitic elitists used to extort their power and wealth. And, of course, to extort their fair share needed to wage endless war and fund empire. Both of which always have a primary intent of looting, wealth, power and control. It wasn’t Bloomberg’s soda tax that sent people over the edge into armed conflict in 1776. (The tea tax) Our state-approved history books are deceptively and knowingly preposterous. Or as Howard Zinn said, “History is a Weapon.” and the state ensures that you know what to think rather than how to think in order to use that weapon.

I would disagree with Michael on one point he makes in this video. I think we would clearly come to agreement were this a roundtable discussion point. But it’s not a minor point and I want to bring it up because of how very important it is to understand a greater truth than is presented by the status quo. As a blanket statement, we don’t need economic growth, per se. We need productivity growth. Real science-based productivity growth. More on that later.

I think I have a unique perspective on public banking given my background, life’s experiences and understanding of capital and money. No one person has the corner on ideas. But it’s unique enough from that of others that sharing it would certainly foster others to think creatively and outside of our current perceptions of the way things have to be or should be. For years I‘ve noted I will put up my solution for a public banking system before I stop blogging. That’s probably not going to be anytime soon. My priority right now is encouraging people to think for themselves and think differently. But I would like to make a comment as it pertains to this post and remarks about nationalizing Wall Street noted in this interview with Hudson. Nationalizing Wall Street is a start but it is not the final answer. Instead it is a first step towards reforming our capital system. I don’t see a politically-driven, class-based world where politicians or private entities control banking and money but where an empowered, democratic (or constitutional republic) society are responsible for self-rule and their banking, money and government -

Every community, every neighborhood and every rural area not served by a reasonably close community should have representation by public banking.   Even if it is only a handful of employees in a rural office. Every person in this country should have their own local public banking facility to ensure the democratization and development of our economy and our citizens and to ensure all of our creativity and inventiveness is monetized. And that bank should have zero ties to politicians or elected officials or have its funding in any way controlled by politicians.   It’s charter should be to serve the community, human development and democracy. Not politicians, not a corporate state, not the endless bribery of political lobbyists and certainly not some Wall Street criminal who has absolutely no motive other than to serve himself aka Adam Smith’s invisible hand of ego-motive or self-interest.

A distributed banking system makes democratic capital development an integral part of our neighborhoods and our communities and focuses on community and human development. It can much more easily capture and monetize the knowledge and creativity of our citizens free from Wall Street debt slavery, corporate servitude and megalomaniac politicians in some far off land who don’t give a shit about what happens in your community or to the people in it.

A distributed, localized public banking and public capital markets system not controlled by politicians or Wall Street makes it substantially less corruptible and bribable. And, it helps ensure equality and democracy aka local self-rule rather than class-based private, for-profit capital that subverts economic freedom and human rights.   I laid out how this could easily be accomplished in a comment years ago before I shut off the comments section.   And I have noted on here many times, well before this crisis was so obvious that I believe we will take down Wall Street forever this cycle. And, that a distributed capital system is where we are likely headed at some point.

We are slaves because we allow ourselves to be slaves. We do that by outsourcing our power and thinking to people who want to enslave us. That is, politicians, elites and corporate bureaucrats. They offer us nothing. They make or create nothing. They are not our masters. They are takers, megalomaniacs, parasites and predators. And if we let them, they’ll take it all. We can only have a recovery if enough Americans take back their power and reject political authority in favor of self-rule or exercising our constitutional form of government.

Title link video interview with Michael here. By the way, I know I sound like a broken record but The Real News is simply the best news source I have come across. For such a small operation, it truly is astoundingly well done. There are no toady bureaucrats telling them what to do or chasing ratings with infotainment. They are a testimony to what is achievable by empowering our citizens and disempowering politicians, corporate bureaucrats, elites and all bureaucracy that only survive by living off the productive abilities of others. That one camera-facing journalist and a small staff can provide what is arguably the best news in America is a testimony to what can happen when we take back our power and grant it to our citizens rather than dumbed-down corporate bureaucrats and politicians.

Money Laundering Banks Still Get A Pass From The U.S.

noreply@blogger.com (TimingLogic) — Mon, 01 Apr 2013 15:16:00 +0000

When I used to to write about the massive money laundering by global banks, I’m sure many thought I was fringe. The global corruption of finance is incredible and well beyond what any one person most certainly knows. That includes major U.S. and European banks. The whistleblower on Madoff made what may have seemed like outrageous claims about money laundering in front of Congress but the deregulation of capital, championed by the U.S. has legitimized illegal crime syndicates. Now the criminals wear suits and the banks launder their money.

How far we have come. Now we have an MIT business school professor (and shill for the Peterson Institute founded by a former bankster who has personally spent half a billion dollars trying to bring down Social Security and Medicare. What self-respecting business school professor is not tied to the class of people who created this crisis? As noted on here many times, it was the MBA and finance programs at elite schools that sold this swill for hundreds of thousands of dollars to students willing to lap up the Kool-Aid) writing about it on Bloomberg. Wall Street and private, for-profit banking is a criminal racket.

More Attacks On American Corporate State Hegemony - BRIC Nations Plan New Bank To Bypass The Looters At The IMF And World Bank

noreply@blogger.com (TimingLogic) — Wed, 27 Mar 2013 16:50:00 +0000

We’ll see how this BRIC plan develops but this has the potential to be a huge sea change. Although I certainly don’t believe any political or state-driven development in this environment as necessarily having lasting value. ie, As an example, just because our king, Obama, makes decrees from on high without having any idea what he is doing, that doesn’t mean his edicts will ever come to pass. Ditto with China, Russia or anyone else. That said, pretty much the entire world is rebelling against this system of American hegemony. That includes most Americans.

The world’s reserve currency was determined by the barrel of a gun after World War II. Because the U.S. was the last man standing at the time, it essentially granted itself complete control over voting rights at the IMF and World Bank. These two institutions are used by Washington politicians and American corporations to loot the world as noted on here many times. (The Germans, French and British are also are a lesser part of this cabal. But these institutions are clearly controlled by the U.S. power. The criminal Cyprus confiscation, and it clearly was criminal, was driven by the IMF in concert with the ECB. That means the U.S. either endorsed this confiscation or turned a blind eye while European IMF members used the institution for their own political purposes.)

Most certainly this announcement by the BRICs to start a new global development bank is just the latest in what has always defined corporate capitalism; a continuous covert trade war and its endless victimization of innocent people around the world. This announcement is certainly meant to counteract the endless nondemocratic, smarmy back room deals made in the U.S. that involve global trade. That includes Obama’s very secretive, nondemocratic Trans Pacific Partnership corporate trade agreement. A completely nontransparent deal that seeks to isolate and exclude China with a corporate-controlled Asian trade zone with the U.S. This is the same type of smarmy, secret dealings of Bill Clinton and Al Gore that created corporation-inspired neoliberal trade agreements with China, Mexico and other nations. All of these agreements allow(ed) American corporations to loot with impunity. And, of course, the Clinton-Gore deals put the final nails into the coffin holding the American economy, democratic economic determinism and the American citizen.

We really don’t know what the motives are each nation in this latest agreement. But we do know their intent surely is not virtuous. They simply want some of that American pie for themselves. They want to control global capitalist trade for their own mercantilist, self-interested reasons. And banking has always been the way to enslave the world. But then the U.S. policy leading to this latest development in covert trade wars isn’t virtuous either. Regardless, this announcement is an uptick in violence against the peoples of the world. How can I say that? It’s simple. Almost every nation that needs an economic development loan from the IMF or the World Bank or this new organization created by the BRICs is corrupt anyway. They have either been corrupted by constant meddling by global powers like the U.S., Britain, Russia, China or whomever or they are run by family fiefdoms or warlords. The BRICs simply want to enslave other nations to serve their economic interests just as the U.S. does. And use their own bank to do so. Another example of a modern-day Treaty of Tordesillas; a more equitable way for powerful states to carve up the world for enslavement and share the spoils.

Every nation on earth has it within their own power to create their own capital without the need of becoming indebted or enslaved to global corporations or the external force of another state. The only reason why they don’t create their own capital is generally because of corruption, lawlessness and tyranny. Free people are industrious, creative and able to make their own economic opportunities and create their own capital without becoming slaves to bankers or global corporations. Umm... which is why the U.S. has 25% unemployment and government transfer payments are up over 800%, after inflation, in the last 30 years. We are not a free people. We are corporate slaves. Nor do we enjoy the fruits of our own democratic economic determinism. Countries may initially need development assistance – education, know-how or raw materials and the like - but in today’s world development assistance mostly comes in the form of guaranteed contracts that enable corporations or countries to loot. That is not development assistance.

Obviously another intent of the BRICS is that they wish to get out from under American economic and military hegemony granted through the concept of a reserve currency and its associated banking organizations - the U.S. dictates almost all economic terms to the world today. That is what allows the corporate state to loot with impunity. In other words, we lost 30-odd million jobs in this nation not because we were uncompetitive with some other nation but because our politicians sold out American citizens and our democracy for their own self-interested corruption. The World Bank lists the U.S. as the 4th easiest economy in which to do business, just below New Zealand, another global power. China is 91st, behind despots from Kuwait and right above global powerhouse Guatemala. The U.S. has no competitiveness issue. It has a political corruption issue.

I could write a book on the topic of how the world’s reserve currency is used to loot the world. But, then why should I? It has already been written. If you don’t understand this concept, I would suggest you consider a book that was relatively recently written titled “Confessions of an Economic Hitman”. The author explains how he was recruited out of college by an American government front corporation. And how this front company was used to enslave the world in dollar-denominated debt using the IMF and World Bank. Then use that debt or threats to reduce economic aid to bankrupt or extract austerity from those enslaved nations. Then force these countries to sell off choice resources – austerity - to American companies in return for debt forgiveness or better terms or increased aid or whatever. Of course, if you didn’t play by American rules, then you probably ended up on a hit list to be murdered or something similar. Sound familiar? It should. The corporate state is now pulling this on American citizens by terrorizing democratic institutions in our nation and Europe with austerity and similar threats. Plenty of money to bomb the world into submission or build more tanks or bail out banking criminals or spy on Americans. No money to feed, cloth and educate our children or provide a roof over the heads of Americans or provide us with healthcare or create living-wage jobs.

Speak of which, Hugo Chavez’s recent death - caused by cancer - reeks of possible foul play. He is now the 9th cancer death by South American presidents since 2009. All of them refused to comply with American-inspired neoliberal globalization “free market” (looting) policies. Whether these people were killed by the CIA or banksters or whomever, we have no idea. But the chances of them all randomly contracting cancer seems far too suspicious to exclude the possibility of murder by American corporate or government interests. Especially since there is now ample evidence our politicians engage in murder around the globe. Obviously, nine cancer deaths of these leaders could be a wild coincidence. But without transparency we simply can’t make any informed, reasoned conclusions about what is happening. There is certainly circumstantial evidence that deserves further investigation.

Frankly, while on the topic, what do Iraq, Libya and Iran have in common? Other than the U.S. either wants to or has bombed them into submission. They all wanted to dump the dollar and settle their country’s oil sales in either other currencies or gold. The fact that all three were and are targeted for regime change by the U.S. is likely no coincidence. If the petrodollar is no longer needed to buy oil, the dollar reserve currency status would almost certainly outright collapse or lose the vast majority of its power. And, with it, so would the U.S. corporate empire. Is that fact worthy of war by the corporate-political ruling class in the U.S. to maintain their control over the world? It certainly is plausible. At last for them. Not for the poor foot soldier sent off to their death fighting for such a cause. I have a much easier time believing this is the driver for our policy than waxing poetic about freedom that Obama and his corporate masters tell us. Waxing poetic about freedom while they wage war on the world. The world is full of evil despots. That our saintly and virtuous politicians pick on only those who threaten American corporate hegemony is not likely to be a coincidence. Again, without transparency, we cannot draw any substantial fact-based, reasoned conclusions. But there is circumstantial evidence that deserves further investigation.

It’s certainly not a fringe perspective that I have remarked over the years that when the veil of secrecy falls in our government that we could witness tribunals for war crimes, crimes against humanity, treason, etc in this nation.

"I cannot accept your canon that we are to judge Pope and King unlike other men with a favourable presumption that they did no wrong. If there is any presumption, it is the other way, against the holders of power, increasing as the power increases. Historic responsibility has to make up for the want of legal responsibility. Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority, still more when you superadd the tendency or certainty of corruption by full authority. There is no worse heresy than the fact that the office sanctifies the holder of it. " -- John Dalberg-Acton

Here is what we can say with a fair amount of evidence, fact and reason. All who seek power and dominion over their fellow man are driven by megalomania and evil. It’s not so much that power corrupts, although there is some truth in that statement, but that megalomania and evil seeks out power. That people who seek power are already evil megalomaniacs who only seek power to ameliorate their inner demons by controlling others. Great men are almost always bad men whether those are U.S. corporate-political leaders, religious leaders or thugs in Iraq or Iran or elsewhere. I see little difference between the likes of Hitler or Stalin and most politicians in any country. They are almost all capable of great atrocities as we are now witnessing. By the way, that Libya, as an example, wanted to accept gold rather than dollars was surely not driven by virtue but because gold is the money of looters and neofeudal lords. Gaddafi was a very bad man. It’s no surprise he was on the CIA’s payroll.

The author of Confessions of an Economic Hitman speaks of his book in this hour long Youtube video here. Or, you can buy the book for a few bucks at Amazon. Or here is a Wikipedia link summarizing the talking points here. Really, reading the book isn’t necessary if you understand how the system works. The United States has almost complete economic control granted by reserve currency status. Just like happened when the British Empire had the same total control when the British pound was the world’s reserve currency. And, they too used it to loot the world with impunity. And, it was called free market capitalism. This economic and global trading system is corrupt beyond words. And, it always has been. Always. Ever since the kings of Europe invented capitalism to loot the world. It’s just now that we see it so clearly with Americans and citizens in western democracies now being targeted by the private, for-profit capitalists. And with the internet allowing the democratization of information.

This new banking development between China, South Africa, India, Russia and Brazil ties in nicely with my long term thesis that we are going to see the current system of trade settlement end/fail this cycle. It is already overdue from a cyclical perspective. The ramifications for this change are incredible and well beyond a simple blog post - although many of my long term theses are, in fact, tied to this dynamic. The unwinding would be devastating to the status quo everywhere. It would speed modern capitalist society collapse around the globe and throw the system into complete chaos. It could lead to outright trade wars and possible even military wars unless democracy, citizen government and public capital replaces neoliberal capitalism, private for-profit capital and politicians. But, if we can make it through all of this, who will benefit the most? American democracy, American citizens and the American economy. The fall of empire will almost certainly restore our economic and democratic determinism. Bad news for China and other benefactors of globalization living on the American corporate dole.

Until then, the dollar remains the world’s safest currency. Why? Because we are free? lol Because our politicians are virtuous? lol Because we are a democracy? lol Because it is backed by a $1 trillion defense budget. The dollar’s value is derived through the force of the world’s reserve currency and the largest military the world has ever seen. A military whose primary intent is to guarantee the dollar’s enslavement and forced use.

Sort of makes you all warm and fuzzy this Easter holiday season, eh? What was that message again? Kindness, empathy, mercy, peace, equality, dignity……….

The cycle of volatility continues.

Cyprus Banking Crisis Resolution–A Great Depression Credit-Anstalt Banking Moment?

noreply@blogger.com (TimingLogic) — Mon, 25 Mar 2013 17:14:00 +0000

My last post was very explicit in its nature. A single, almost imperceptible perturbation can lead to incomparable devastation. There was a reason for that remark. And, that reason has now come to pass. That is, the seemingly imperceptible banking crisis of a very small nation, Cyprus, has led to the confiscation of the vast majority of its banking deposits to deal with the losses created by banking executives; a truly criminal act. Now, we can argue whether those deposits are drug money or Russian mafia money or whatever. That’s irrelevant to the bigger picture. As noted on here many times, all major international banks are money launderers in today’s deregulated financial system. What is relevant is that in a world of deregulated finance, the precedence has now been set to confiscate deposits to pay for banking crimes and malfeasance. These are the dynamics needed to create a bank run.

I just have to put this paragraph in here. Andrew Ross Sorkin wrote an completely useless op-ed in the New York Times that we shouldn’t worry about Cyprus. That it is insignificant. It is so small that it is imperceptible. You know, like that single neutron in my last post. Of course, Sorkin is a shill for the corporate state over at CNBC when he’s not writing about things he doesn’t understand for what has become an ever-more-useless newspaper. This is the type of dumbed-down nonsense that really defines the idiocy of the corporate state and its mainstream media. His op-ed about the insignificance of Cyprus is the type of nonsense that typically ends up defining major tipping points – the extreme arrogance and ignorance of people who have no idea what they are talking about. This Cyprus banking crisis may be the most significant event since the 2008 crash; the onset of this crisis.

Depositor’s assets in Cyprus are being confiscated to pay for the mistakes of the banking executives at their bank. This bank “bailout”, courtesy of depositor’s confiscated deposits, in Cyprus looks a lot like the Credit-Anstalt banking fiasco that tipped off an eventual continent-wide run on banks in Europe on the start of the Great Depression. Credit-Anstalt bank was very similar to the Cyprus banking crisis in that it too was an oversized bank in a comparatively small Austrian economy that was rife with mismanagement, huge bad business bets, massive bad loans and, of course, the precursor to all of this, massive management corruption covered up for years by equally crooked politicians. Without writing a book, the mismanagement of the Credit-Anstalt banking crisis eventually started a massive run across European banks and led to the back end of the crisis that we now know as the Great Depression.

The next six to twelve months in Europe will be very telling. Especially, if this form of criminal confiscation employed in Cyprus is used in future dealings with the criminogenic, politically-propped up, private for-profit banking rot in Europe as it appears the Euro banking thugs are intimating it will be. If countless propped up insolvent zombie banks across Europe require future bailouts and depositor’s money is confiscated to foot the bill, a European-wide run on these banks to remove deposits most certainly could ensue as happened eighty years ago. And that panic could easily spread worldwide as that small perturbation creates what could be an unstoppable chain reaction.

Regardless of how this plays out, it certainly will have unintended consequences and its potential significance cannot be overestimated.

Are We Near A Tipping Point? Cyprus Confiscation Still On Hold.

noreply@blogger.com (TimingLogic) — Sat, 23 Mar 2013 15:23:00 +0000

Anyone watching the financial industry has to be aware of what is going on in Europe but if you are busy raising your family or watching your favorite reality show or listening to political idiots tell you the economy has recovered, the EU has recently threatened to withhold a bailout for Cypress unless Cypress itself confiscates some large portion of its bank deposits. The confiscation metrics vary based on the latest proposed schemes.

I haven’t written of this recent event in Europe but that’s really because the entire system is cracking and there is just too much to write about. And because I have beaten Europe like a rented mule over the last eight years. Because of how complex systems work, the outcome of the crises we see around the globe today are essentially pre-ordained. Even if we saw a debt repudiation, that really solves nothing. In other words, there is nothing the status quo can do to stop it. Now, that certainly doesn’t mean the status quo aren’t trying their damndest.

The Eurozone, the Euro financial system and the Euro currency as structured are toast. Just as is globalization and global finance, inventions of U.S. hegemonic policies of force are also toast. It’s all just a matter of what the tipping points are to destabilize the system beyond recovery. Is it a natural disaster or a manmade disaster and when? Those who believe none of this will happen in our lifetime, a common response I hear, don’t appreciate how completely unstable this system is or the exogenous and esoteric factors of volatility driving it. Or, that when a complex system becomes this unstable, how much greater and greater force (ego-motive or control) must be applied to the system in attempt to maintain its integrity. Or how the entire global system is intertwined and the unstoppable chain reaction it can create. At some point, the system will lose its integrity and we are likely to see a Chernobyl-type event as the chain of events simply become uncontrollable.

What I find more interesting than the latest Cyprus storyline at Reuters is the graphic provided with the story. I never put Cyprus and the Golden Dawn Party together but I should have. For those who haven’t been following the nearly complete collapse in Greece, the Golden Dawn Party is a highly nationalistic, right-wing extremist party in Greece that has been growing substantially in its popularity. (I wrote we were headed into an environment of nationalism seven years ago when globalization was in its greatest bloom ever. And when the idiots who created it were on top of the world with giddiness at the horror they had created.) Unlike Grillo in Italy who has called his party the French Revolution without the guillotine, the Golden Dawn Party is the French Revolution with the guillotine.

I’m not predicting this but we could easily see EU military or police forces crossing borders in some attempt to maintain control before this cycle ends. Umm…. can you imagine if Mexican or Canadian troops were brought to the U.S. to help maintain order in a time of civil disobedience due to state-sponsored violence against American citizens? In many regards, unless this crisis ends quickly with a total collapse of the EU system, this crisis as horrendous as it has already been, may just be getting started. It all depends when and how the people of Europe decide to take back their freedoms.

I still get a fair amount of feedback from people who somehow still outsource their thinking to the likes of Barack Obama or Bill Clinton or others who helped create this horror show. And, therefore, they believe that I, and others, are overblowing this crisis. So, for those who have still have a lack of appreciation for what I and others are talking about, I’m going to provide some context for you to consider. The first atomic bomb dropped on Hiroshima had well known, horrific consequences. Yet, that event only took a second. That horrific devastation was started by one simple neutron splitting a single atom. The amount of energy of that first event was so insignificant, no one in the world would have ever noticed it. Yet before the chain reaction was complete, an entire way of life was lost. An entire society disappeared. Literally in the blink of an eye. Today, we have a global system of control that too can experience similar consequences with the effect of a single “neutron”. And, any number of neutrons exist to start the reaction. The simplest of events can have devastating consequences when a system is overly complex. Especially when it is overly complex for one reason; to achieve some level of artificial control. It’s not debt that people should be worrying about. Debt is an illusion. It’s global capitalism and global finance. And if you think someone smarter than you or some political idiot has your back, well, then you really are deluding yourself.

We could easily see the entire system fall like dominos. One failure leading to another in an unstoppable chain reaction because political idiots and their corporate masters have literally rigged everything. The system only maintains its inherent instability through force. Yet, the force required to maintain it is so great that maintaining it is impossible. As if I need to remind regular readers and those who any any sense of what is going on, this environment is far more fun than the Great Depression. It’s not even close.

Update: A Cypriot tells us that Cyprus should let the banks fail and create a public banking system. Bingo! A long term thesis on here is the world needs to do away with private banking and replace it with public banking systems. This understanding of private, for-profit capital being a criminal enterprise is growing around the world.

Superbugs Found In Industrially-Produced Meat

noreply@blogger.com (TimingLogic) — Fri, 22 Mar 2013 14:08:00 +0000

I received the italicized remarks below in an email yesterday from Environmental Working Group and wanted to share them. The statistics are so outrageous that I don’t know what is accurate without doing any diligence but some numbers show 70% of antibiotics sold in this nation go into animal feed. Do you know what you would look like if you were fed antibiotics every single day in your food? You’d be huge not to mention how sick you would probably be. Which, frankly is more than likely a major driver in America’s obesity and sickness epidemic –> overuse of antibiotics in both humans and the animals we eat. We still don’t know all of the unintended consequences of this type of junk science used in industrial meat production.

Did you know that studies show that organic meats have fewer superbugs - dangerous antibiotic-resistant bacteria? One reason - the animals were not fed unnecessary antibiotics.

This is one of the early findings in Environmental Working Group's upcoming research on meat and antibiotics. That raises the question: which animals are fed antibiotics and what does that mean for the food that ends up on our plates?

We launched this project because superbugs are on the rise and scientists are finding them in our meat.

We know you care about what is lurking in your food. You count on EWG for critical information about pesticides and genetically engineered foods. EWG wants to make sure you have the information you need to reduce your family's exposure to superbugs. But first, we need your help to finish our work.

Livestock producers are feeding healthy animals unnecessary antibiotics - and, as an unintended side-effect, breeding bacteria resistant to antibiotics. This practice undermines the effectiveness of lifesaving medications. (And who knows what other unintended consequences. There seems to be possible links, if not outright causational factors in many illnesses such as cancer that may be tied to overuse of antibiotics. My remark.)

Tests have found increasing numbers of antibiotic-resistant strains of common bacteria like salmonella and E. coli on popular meats like chicken, ground turkey and more.

We Are Not A Nation Of Laws But A Nation Of Men - NYPD Union Leaders Conspired With Management To Set Arrest And Summons Quotas

noreply@blogger.com (TimingLogic) — Fri, 22 Mar 2013 00:57:00 +0000

We certainly know this type of predatory and violent democracy-killing behavior happens all across the nation. To deny it exists is ridiculous. Kudos to The Nation, even though I am linking to Truth-Out for the story and Nation video.

This issue brings up a mainline issue with the way unions are organized today. Often union executives are in bed with management. Secret deals are cut that sell out workers but protect union management. It is systemic and pervasive as it always has been to varying degrees. This is exactly what has happened to the rank and file police officer in the NYPD. It is the rank and file exposing this corruption.

As noted on here many times, I am certainly for collective bargaining against predatory private, for-profit capital but let’s be clear. If we didn’t have private, for-profit capital(ism) but instead had democratic banking, a democratic monetary system and a resultant democratic economy, the need for collective bargaining would really become moot. We wouldn’t need to bargain with ourselves. The rights of all workers could be written into an economic constitution; a topic discussed on here over the years. We don’t negotiate our human rights on a daily basis. They are contained in a timeless written rule of law; the Constitution. Why do we have to negotiate our economic rights on a daily basis with predatory, private, for-profit capital? Economic determinism and economic rights are foundational human rights in any democracy. Why do I need to bargain for a living wage? Why do I need to bargain for worker safety rules? Why do I need to bargain for a limited work week? Why do I need to bargain for healthcare? Or, or, or. These are issues involving human rights and dignity. They should be guaranteed democratic rights. An economic constitution should guarantee our economic rights as does the Constitution guarantee our human rights. Smarmy back room deals between union leaders and management, like happening in the NYPD, would become moot.

Collective bargaining does not mean we deal with the Jamie Dimons of this world with Jimmy Hoffas. We trade one thug for another? Apparently Jimmy Hoffa isn’t dead. He is the head of the NYPD union.

“All who do evil hate the light and refuse to go near it for fear their sins will be exposed.”

It is absolutely hilarious and ridiculous that law enforcement organizations are self-regulated. The concept of “internal affairs”, or sweeping dirty laundry under the rug in secret proceedings, needs to be replaced by transparent, citizen-led oversight and investigatory abilities in all law enforcement organizations. Law enforcement exists to protect democracy’s citizens. Not to prey upon us. Ditto with the self-regulation of lawyers, district attorneys and the like that leads to endless and rampant lawyer abuses that never stop because abuses are dealt with by secret proceedings of bar associations rather than by democracy. None of this is any different than the free market bullshit of Wall Street self-regulation that has led to crisis after crisis.

Democracy cannot survive without transparency and public scrutiny – freedom of information as is being subverted by the NYPD. Democracy is dead. Only you can resurrect it.

Dr. Andrew Weil - Amerika’s Corrupt Healthcare System Will Collapse

noreply@blogger.com (TimingLogic) — Tue, 19 Mar 2013 17:44:00 +0000

I’m a big fan of Dr. Weil. He’s authentic. He’s smart. He appreciates esoteric factors affecting our existence. He’s outside of the system. And, he understands the mind-body, food and social connections to both mental and physical illness.

The collapse of this medical system has been a long term thesis on here. It’s hilarious to listen to people who cheer Obama for the passage of a massively corrupt health care system. Collapse of our health care system is going to happen. It’s just a matter of what the trigger is and what the collapse looks like. Will it be immediate and rapid or will it come in phases or will it simply erode or will it be a controlled phasing out or what? As someone with an appreciation for complex systems and the illusion of political-corporate control exerted to maintain a system that is inherently unstable, I would have to guess it will be a very rapid collapse as happened on Wall Street and in the Soviet Union. I doubt we will have to wait long. Maybe even under Obama’s watch as president. How ironic that would be.

As noted on here ad nauseam, this is not a debt crisis and this certainly is not a financial crisis. It is a crisis of institutions of the ego. That includes corporate capitalism, banking, education, industrial food production, money, globalization, the military-industrial complex, hijacked science, politics and on and on and on. This entire system, rigged by political idiots and our corporate masters, has become wildly unstable. And we are living through a cycle of volatility that will likely bring the entire system down to varying degrees. It didn’t need to be this way. But karma or Newton’s Third Law applied to human behavior, most certainly is a bitch.

The cycle of volatility continues in full force.

Title link here.

War Cycle Update And China’s Military Spending Rises Substantially Courtesy Of European And American Corporate Capitalism

noreply@blogger.com (TimingLogic) — Tue, 19 Mar 2013 00:19:00 +0000

Years ago I wrote that we are likely entering a war cycle and laid out a very detailed analysis of what I thought were going to be the likely drivers. Without rehashing everything, that driver was deregulated capitalism. Since then a few other well-respected people have also made the same remarks. Specifically, two that I have seen were Mark Faber and Charles Nenner. And, more importantly, since then we have seen the world literally catch fire with conflict. State-sponsored murder, war, terror and volatility are everywhere.

The seeds of war are returning to Europe as well courtesy of the fascist political, economic and monetary structure that has been forced down the throats of Europeans. Again. I’m certainly not the only person to recognize these dynamics. Although, as opposed to Mr. Juncker, I don’t believe it has anything to do with bureaucrats “lashing out”. That’s a little ridiculous. Instead, it is the system of control he and others have foisted upon the continent. People don’t want to be told how to lead their lives or if they are going to have a home to live in by unelected, elitist bureaucrats who wax poetic about an integrated socialist Europe that they control. It’s amazing how truly ignorant the EU’s unelected and illegitimate authorities are to the massive mess they have made. A mess Obama clearly supports in his statements regarding the EU. It’s no great irony the people of Europe were able to live in peace and harmony until elites figured out a new way to enslave the continent to their most recent megalomania.

People want out. They want an end to the massive corruption, violence, exploitation and misery of globalization, of the EU and of private for-profit capital’s looting that comes with this system. Unfortunately fear, hate and violence are the tools used by illegitimate authority to turn people against their fellow man and separate people to maintain control. We are surely in the midst of such violence today. It shows in the rising nationalism in Europe.

Nationalism is rising violently all across the European continent. The same kind of nationalism that murdered tens and tens of millions of people in two world wars. It is rising for the same reasons – elite, political and private for-profit capital’s inflicted misery. The roar of hatred, fear and bigotry for those who are perceived as different continues to rise throughout the world. This divisiveness created by class and elitism is certainly with intent as it always is. Anti-Semitism and anti-immigrant fervor are much higher in Europe than it is in the U.S. And, anti-immigration sentiment, in particular, is very high here. People have legitimate issues with illegal-immigration/undocumented-workers given the flood gates that have been opened so that private, for-profit capital can bust collective bargaining and suppress wages & benefits. My point is don’t believe European conflict is impossible. The seeds are being sewn today and they could easily sprout depending on how capable the status quo’s attempted control remains.

As usual, issues with undocumented workers aren’t created by immigrants who are simply fleeing corruption and lack of economic opportunity themselves. If the European and American states were seeding democracy around the globe instead of their reign of terror, we wouldn’t be witnessing these massive diasporas of displaced peoples around the world. These massive immigrant movements everywhere are caused by neoliberalism destroying freedoms and economic opportunity around the globe. A perfect example is the U.S. southern border with Mexico. The U.S. props up a corrupt Mexican government as a slave sweatshop where five families essentially own the entire nation and everyone else is a renter. If the U.S. would focus its relationship with Mexico on true democratic reforms rather than neoliberal comparative advantage offered to American corporations, the great and hard-working people of Mexico would be free to create their own economic opportunities at home. There would be no immigrant diaspora to the U.S. Ditto with similar dynamics in Europe. As an aside those policies are failing in the U.S. Neither branch of our corporate political party can survive their corporatist policies now that our nation has become a true melting pot. That’s a good thing. Well, unless they start overtly trying to rig elections. And with recent attempts at returning to Jim Crow voting laws, that’s exactly what elites and the political class are trying to do. Outright slavery and repression seems to be fascism’s end-state intent.

The main thrust I want to make with this post is that corporate capitalism, primarily in western democracies, has granted communist China the technology, money, legitimacy and power to become a new global threat to peace and stability. Even beyond the forces that threaten humanity today. Corporate capitalism has empowered the ego-motive of China’s highly nationalistic, corrupt system of control that seeks to perpetuate its own existence and extend its influence. Primarily U.S. and European corporate capitalism and statist policies have, through self-fulfilling prophecy, created their next Cold War enemy. An enemy that gives purpose and legitimacy to the military-industrial complex and the fascist corporate states of the west.

We see the early signs of this violence in the constant espionage and internet attacks pointed at U.S. military, government and corporate institutions by the Chinese communists. And, in the economic blame game and threats that have been rising for years between China and Japan, Europe & the U.S. European and U.S. politicians created this mess with China. They authored the trade agreements that have obliterated their own nation’s democracies in favor of private, for-profit capital. And, lastly of course, the massive increase in China’s military production and exports to fund corrupt states like Iran. While we aren’t being told about it, we most certainly are involved in the same acts of state violence directed at China. In other words, “War is the health of the state.”. And, with the Pentagon’s attempted shut down of the mess they created in the Middle East, they are now redeploying resources to Asia for the new threat. The threat their own arrogance and ego-motive unwittingly created to ameliorate their inner demons. The threat created by U.S. corporate capitalism and the corporate state’s policies. Even if by coincidence, preparing to defend the system from communist Chinese violence will require different weapons systems. And, that fact will be used in a rationalization to extend U.S. and European arms overproduction even further.

By the way, we can thank the politicians Bill Clinton and Al Gore for this dynamic. As noted before, they were the ones who deregulated the national borders of private, for-profit capital; a dynamic that helped lead to both previous world wars and has substantially created this crisis.

The only way I see that major global conflict will be averted in the next decade or so is if the people of the world rise up and peacefully sack corporate capitalism and the fascist political-military complexes that enforce it across the globe. And replace this illegitimate hierarchy or system of control with democratic economics and democracy.

Italy’s democratic movement is the first serious sign that may indeed happen. Grillo is the most dangerous man in the world right now. He recently remarked in a BBC interview that he wants to see the end of politics and political parties. And, instead see public service and citizen government. Notice how in this interview, he is pressed on what system will replace the existing political system. The status quo wants to know how they can control what comes next. That is obviously their greatest fear – loss of self-interested control. As Grillo notes, the Internet is a massive paradigm shift. It is what is allowing people to organize around the globe. As I wrote on here in past years, we don’t need to see organization in the streets. If the state shuts down our ability to organize, as has happened in the U.S., we can do so virtually on the Internet. That is why the state is so intent on controlling Internet freedoms.

What used to happen quietly in smarmy backroom deals just a few decades ago, now is pushed onto the entire world in five minutes. Transparency is the enemy of this system of control. The only way I can see this awakening being stopped is if the status quo can separate all of us as they have so successfully done since the beginning of time. That can only happen by shutting down the Internet. It’s no coincidence they did exactly that during the Egyptian revolution. Yet, doing so would cause uncontrollable chaos in the current system of control. Global corporate capitalism, global finance and extended supply chains would collapse.

Democracy is not about control. True democracy, or republican government, or constitutional republics or whatever exists in any particular nation, is about freedom. That includes economic freedom. In a true citizen government aka self-rule, there are no points of control. There are no politicians. There are vertical and horizontal checks to the state to ensure control is never achieved. That includes within any democratic economics as well.

Politics is an institution of control that serves no purpose in a democracy and there will be a day when it disappears. Forever. Is it in this cycle? Who knows? Probably not for some period of time but in the interim, I expect both political parties in our nation will collapse. Can you really imagine a post-political world that would exist in a democracy? Nary again another politician. What a glorious day.

China’s new swarms of war drones rise to challenge U.S. power.

China’s weapons exports rise 162%

Dystopian State Legislators Do Their Corporate Master’s Will By Making Food Transparency A Crime

noreply@blogger.com (TimingLogic) — Mon, 18 Mar 2013 02:18:00 +0000

The corporate state continues to tighten its grips on criminal secrecy.

“All who do evil hate the light and refuse to go near it for fear their sins will be exposed.”

How The Government Could Pay People To Eat Twinkies And Watch Cartoons While Saving Us $1 Trillion In The Process

noreply@blogger.com (TimingLogic) — Fri, 15 Mar 2013 16:06:00 +0000

Almost no large businesses today would exist without the force of the state. On some level I would say all of them fall far short of serving democracy in varying degrees. And in many ways that aren’t quite obvious, almost all major companies are looters of democracy that rely on the game being rigged in their favor by political idiots. There are a few exceptions but not many. One exception is not Lockheed Martin. This is one of the thousands upon thousands of security, military, consultancy, logistics and think tank organizations that comprises the military-industrial complex and police state that are literally sucking America dry for their own insatiable greed and power.

The Soviet States of Amerika or the United Soviet States of Amerika or maybe just Soviet Amerika and their central planners produce, overproduce and overproduce some more as it pertains to the military-industrial complex. We centrally-plan, procure and produce so many weapons of death, bombs, guns, systems for spying and on and on that we shrink wrap and mothball modern systems and create massive ghost cities with them. Then we build more ghost cities to house their overproduced parts depots. Then we produce some more. And then some more. Then we start all over again and produce some more.

As noted numerous times on here, the start of this nonsense was the 1947 National Security Act. It essentially created a full-time, for-profit war machine and institutionalized a political foreign policy of force through the creation of the Defense Department, the National Security Council and the CIA. The United States has been involved in endless conflict every since. By the way, for those who are still caught in this false left-right meme, this was the result of policy by a Democratic president who also started the Cold War and its endless costs to our society. And, it was two Republican presidents who sought to end the Cold War; Nixon and Reagan. Truman also is the only person to ever authorize the use of nuclear weapons. Not once but twice. And while Truman stated that we were not going to turn the U.S. into a right-wing totalitarian government to deal with a left-wing totalitarian threat, that is exactly what his policies did. We are fascist, right-wing totalitarian state whose corporate masters collude in secrecy with politicians and military leaders to centrally-plan our economic, social and political fate. There’s ample evidence Truman was an idiot. And we clearly know Truman was ignorant to history and ignorant to the deleterious effects of his ignorance. In other words, ignorance truly is bliss. Our founding fathers told us that the threats to our freedom would come from within but under the guise of a foreign enemy. In other words, in the video above Truman was ignorantly mouthing exactly what our founding fathers told us to fear. The Truman Doctrine and all of his incredibly incompetent management of this country send us down a path of a self-fulfilling prophecy that is now manifesting itself everywhere.

Anyway, there are many analyses that show we spend in excess of $1 trillion annually on this nonsense. Which is also far more than the rest of the world combined. Far and away this is the biggest corporate welfare system the world has ever seen. Far, far, far and away greater than anything in the Soviet Union. Well, of course, in many ways we are the Soviet Union. This extends well beyond the police state. It’s all of the corporate socialism created by corporate fascism. This is why our social and economic systems are collapsing.

So, ProPublica has an updated comedy of errors that is Lockheed Martin’s F-35 corporate welfare program. $1.5 trillion to develop and maintain this program for the next 55 years is a swag someone made at some point as to the cost of this program. Certainly, like all other estimates for corporate welfare that are always proven to be low-balled, this number is most likely double that amount. Or, thereabouts. Fingers in the wind provide as accurate of an assessment as the bean counters running this type of scam on the American people.

So, Lockheed tells us 133,000 Americans are involved in this program. I highly doubt that number as a little bit of propaganda. 133,000 people may touch this program at various points in time, a number I would still doubt, but they certainly aren’t going to be with the program for 55 years. But let’s stick with Lockheed’s new-math number.

We could pay all 133,000 of those people a salary of $50,000 annually for a period of 55 years. And, we could give them each a $5,000 voucher for corporate-state ObamaCare. In the process, we would cut our spending by 90% by cancelling this program. All of it. Now. Forever. Period. Finito. Now, they wouldn’t get cost of living increases but then if we cut this program and other corporate welfare, inflation might actually implode. So, cost of living increases might not be necessary.

And what could we pay all of these people to do? Well, we could pay them to sit at home, watch cartoons and eat Twinkies. And we’d still save 90%. Not only that, but it wouldn’t impact society one iota. That is, unless we were to experience World War III. And, I would put forth the hypothesis that the chances are much greater we wouldn’t have World War III if people were eating Twinkies and watching cartoons rather than overproducing weapons of death, murder and war. Funny how that works, eh?

Our country is run by f*cking idiots and looters.

Political parties (registered corporations that are fascist by their very nature of the intermingling of corporations and politics) need to go as many of our founding fathers believed. Freedom of association in public service allows a free exchange of unique, well-thought out ideas rather than regurgitated political party pablum puke. It also forces each politician to be personally responsible for his and her deeds and allows those with the most cogent ideas to rise to the top of the election process. Public servants are then required to prove their merit rather than be the hand-picked stooge by the national political party that then receives what are essentially unlimited funds and organizational resources to defeat meritorious candidates that cannot stand against the onslaught of party propaganda and party money.

Is The Ketogenic Diet A Cure For Cancer And Who Knows What Else?

noreply@blogger.com (TimingLogic) — Wed, 13 Mar 2013 02:11:00 +0000

I have followed substantially what is considered to be the paleo diet for most of my adult life. The paleo diet is a ketogenic diet. Although I eat substantially more raw and fermented foods than is probably associated with this type of diet. And I probably eat less muscle meat and more fat, organ meat and gelatinous animal parts than what most people on this type of routine eat. Well, and I cheat on the diet when I feel like it because I’m not neurotic. And, I’m probably not neurotic in large part because of my diet. Our bodies have trouble breaking down cellulose unlike many other animals such as ruminants. So, fermentation, which is essentially controlled rotting, helps to break down the cellulose in raw foods that locks up the nutrients and makes assimilation easier. And it has the side benefit of keeping our gut fauna healthy. In other words, raw has its place but is not in itself the end all as some believe. By the way, mildly cooking also helps break down cellulose found in plant matter but overcooking may destroy enzymes.

I toyed with vegetarianism when I was right out of school. But that didn’t last long. And for good reason. It’s extremely misguided and driven by ego-motive more than any science or basis in facts we understand about the human ecosystem. In fact, there is ample and generally uncontested knowledge that our brain was only able to develop so rapidly because humans ate copious amounts of meat and animal fat. Oftentimes our ancestors lived on little more than meat and animal fat. By the way, modern anthropology has studied this heavy animal diet and even today, meat-eating cultures are incredibly void of modern society’s endless health maladies. More on some other time.

It has been well established in the scientific research community for some time that at a large number of cancers are caused by or associated with different types of viruses. I wrote last year that I would post a follow up discussing this topic. I still plan to but who knows when.

Unfortunately, this link between viruses and cancer has been slow to make it into the mainstream media or into institutionalized medicine’s treatments. I doubt most doctors even are aware of this fact. I say that because doctors continue to use radiation treatment, as an example, which likely causes the cancer-causing viruses to mutate and become harder to kill. I say that because UCLA just published a research paper some months ago pointing to radiation making cancer resistant to treatment and we are starting to read everywhere where research scientists around the world are starting to understand radiation therapy simply makes the cancer harder to kill. A plausible cause of this is viral mutation. We clearly know certain wavelengths of energy cause cell mutation. In fact, as noted on here before, there is evidence this cellular mutation and pathogen mutation caused by high energy sources of the universe impacting life have played a role, maybe even a dominant one, in the evolution of life on earth.

Eventually, I suspect scientists will isolate a pathogen for all types of cancer and who knows what else. Possibly even addictions, schizophrenia, etc. as some research is now starting to point to some level of involvement. The amount of institutionalized medical “science” today that is based on complete nonsense is almost unbelievable. But Obama is forcing us into this system and its many contradictions and fallacies. Thus perpetuating much of the institutionalized ignorance of mainstream medicine.

Viruses need food to grow. As it relates to cancer, there is ample evidence that food is carbohydrates - sugar, wheat, grains, crackers, soda, bread, etc. that are so rampant in our industrial food culture. I suspect this extends well beyond cancer-associated viruses to that of other viruses such as the Epstein Barr virus, the various forms of the herpes virus, the HIV virus and on and on.

It's amazing how our belief systems regarding food, diet and health have been developed based on what is essentially medical establishment propaganda over the years to believe naturally-raised meat, butter, dairy and natural fats are bad for us. This propaganda is driven by junk science, self-interest, profit, greed, capitalist corporate control and on and on and on. That also includes a fanatical element of lunatics who believe eating meat is some sort of crime or sin. (There is ample evidence that corn oil, vegetable oil, canola oil, margarine, shortening, etc are probably not healthy fats. Neither are meats or dairy likely healthy when raised on grains or pumped full of antibiotics or hormones. I’m sand bagging my remarks here – probably? Do your own diligence.)

There have been numerous analyses that show industrial meat raised on a heavy antibiotic, hormone and genetically-modified grain diet changes the physical composition of animal tissue and the fat profile of dairy products/animal-tissue-fat from brain and heart sustaining omega-3 to brain and heart unhealthy (in high doses) omega-6 that is possibly linked to numerous illnesses including heart attacks, autoimmune diseases, artery blockage, etc. So, all meat or dairy may not be healthy. Although our body most certainly uses omega-6 fats as well. I suspect it’s a quantity and ratio issue rather than an absolute statement.

Only naturally-raised meat and dairy where animals are allowed to live and eat as nature intended them are guaranteed to be healthy in my estimation. My observations are that the industrial food monopoly is force-feeding animals the same sick diet that we are being force-fed. And through biomagnification, we run the risk of assimilating the sickened state of the foods we are eating.

As I have noted on here before, the institutionalized medical bureaucracy’s junk science and ignorance is heavily complicit in the systemic sickness pervasive to modern corporate state society. This junk science provides a positive feedback loop that ensures a constant demand for medical services as junk medical science makes us sicker and sicker. The institutionalized medical bureaucracy most certainly is not doing this as part of any conspiracy, it’s simply what happens whenever any form of science becomes institutionalized and then taught as fact in educational curriculum. Especially, when much of that science is based on profit motive. Education to these notions simply makes us stupid.

Sugar, wheat and carbohydrates that are so pervasive in the modern diet are plausibly the basis for inflammation that lowers our immune systems, makes us sick and plays a major role in autoimmune diseases. Or, substantially contributes to this issue. At least in the quantities and with the artificial ingredients that are being forced upon us by the industrial food monopoly. And, the chemicals/carbohydrates and methods of raising modern meat are probably lowering our immune system so that cancer and other autoimmune illnesses are able to invade the human ecosystem. There are ample real world examples and research that points us in this direction. Not always clear cut conclusions but a substantial amount of evidence to consider.

All of those decades the supposed experts told us meat and animal fat were bad for us may have made untold millions upon millions upon millions of people sick and created an epidemic of cancer, depression, heart disease, diabetes, autoimmune disorders, obesity, mental illness and untold other sickness in modern society. Given half of all Americans are obese or worse, and that we consume 90% of the world’s medications, that means the recommendations of modern medicine and the industrial food monopoly may be responsible for the sickness of half of our population and how many unnecessary serious illnesses around the world as the pathology of corporatized industrial food and corporatized junk medical science spreads beyond our borders.

Here is what we do know. Nature knows best. How do we know this? It has proven over billions of years what does and doesn’t work. Medical science often makes ludicrous conclusions based on distorted statistical studies that are neither controlled nor science. Those studies are often a few years or a decade and clearly are not accurate or properly controlled nor do they stand up to billions of years of data nature provides. Statistics is not science, by the way. What it is is the most misused basis for damned lies imaginable. In the right hands, statistics can provide useful data but it is almost never in the right hands. Especially when it comes to manipulated medical studies. Tons of exposure has been done on the manipulation of medical research using the absurdity of statistics.

The human mind and body have everything they need to cure and heal themselves of any illness when they are given the fuel and nutrients nature intended them to have. That is fresh, naturally-grown fruits, vegetables, meats, fats, etc. We simply know almost nothing of how the human ecosystem heals itself so instead we pump it full of toxic food, toxic chemicals, toxic antibiotics, toxic hormones, toxic pesticides & herbicides, toxic pills and toxic medical treatments that oftentimes make us sicker. That is why America is the sickest, most overweight, most medicated, most emotionally-unwell nation on earth. The medical and industrial food systems are failing right before our eyes. We see the evidence of their failures. It is us.

Here’s what we do know. Ketogenic diets have been associated with cancer cures and reducing tumor sizes, reducing seizures with epileptics, treating and even curing type 2 diabetes, treating and possibly even curing type 1 diabetes (autoimmune disorder), treating herpes and shingles to the point of reducing outbreaks to near zero, treating and even curing some forms of arthritis (autoimmune disorder) and who knows what else. Obviously, do your own diligence. Some degree of a ketogenic diet appears consistent with the body being able to defend itself from a multitude of pathogens and in the process contributes to keeping our human ecosystem more resilient.

You may be asking yourself how something so patently obvious could have been ignored by institutionalized mainstream medicine. How nothing more than a diet could possibly cure cancer and help regulate so many other common maladies. The answer is really not a complicated one. In a corporate capitalist society, the primary intent is self-interest or control. And that means truth and discovery are continuously subverted. It’s really no different than any of the other unbelievable truths of the corporate state that are so incredibly obvious.

One thing is for certain, until institutionalized medicine wakes up, I personally will not be listening to my doctor. That is, unless my doctor is also rejecting institutionalized medical junk science and the corporate state’s dietary recommendations.

Dr. Mercola’s recent article and video on cancer and ketogenic diets.

An excellent article and video a few months old that was authored by a cancer survivor and highlights substantiated research and many links to educational materials.

Beppe Grillo - Democratic Money Is Fiat Money And Debt Is Nothing More Than A Myth Used To Enslave And Impoverish Us To Elites And Criminals

noreply@blogger.com (TimingLogic) — Mon, 11 Mar 2013 16:59:00 +0000

A friend sent me this video this morning. I guess it has become highly popular on the web so I might as well be part of the crowd. Ha. I just watched it and would highly recommend it to everyone. It will awaken many minds to a greater truth. Grillo is the first person with a mainstream audience to deliver a message that is consistent with that which has been delivered on here ad nauseam over the last eight years. That is no coincidence. Truth is obvious and universal when one releases false perceptions of reality and the self-imposed lies we tell ourselves. Lies always put there by those wishing to control or instill fear in us.

Notice how Grillo’s message is diametrically-opposed to Ron Paul’s message. And as I noted on here numerous times, as much as I appreciated Paul’s honesty about Washington corruption, he didn’t know what he was talking about regarding banking, money and economics.

Paul’s message was that America was broke and that we should return to gold money and the free market. Frankly, that is bullshit. This is the free market. We are in it right now. This is what happened when Reagan and Clinton deregulated capital(ism). Free market, private, for-profit capitalist fundamentalism creates massive corruption and cronyism. History is replete with this greater truth. This system is finished. That’s for certain. But neither are we broke nor should we ever return to gold money or free market fundamentalism. Or listen to politicians who are generally nothing more than ignorant about democratic money, democratic banking or democratic economics. For all of his redeeming qualities, Paul was no exception.

I hear these histrionics every day. America is broke. Health care is going to eat us alive. We can’t afford Social Security. Blah, blah, blah. This system is screwed. And so are its institutions of control. It might be very painful getting from point A to point B. Maybe even devastating for many. But we certainly are not broke. Not even close. Those who define money and debt as the metrics used to define wealth are wildly ignorant. They have succumbed to the lies others tell them. This system of control is broke both morally and monetarily. But, that’s a very good thing. Because that means crisis is dead ahead. And that means shattered belief systems, their false perceptions of reality and the endless rationalizations that are produced as a result of those lies of the mind are just around the proverbial corner.

So, let’s summarize what Grillo said in his video that has also been discussed ad nauseam on here (Watch the video!) :

-Gold is the looter’s money and the money of elites. Its value is derived through scarcity and artificial control. And since you don’t have any of it, if you want it, you are going to have to work for whatever terms your masters define you should work to get a small piece of it. That keeps you always “hungry” to do the bidding and work of your masters. It also keeps you busy doing menial tasks that keep you ignorant, enslaved and oftentimes poor.

-Gold mining creates massive and often permanent ecological damage. The concept that we have to dig a hole in the ground to find our money, as Ron Paul and other gold worshippers believe, is absof*ckinglutely preposterous. By the way, in the world of fiat commodity money, gold has no value as currency. That means its only value is derived through industrial and consumer demand. If democracy wins this battle we are witnessing around the world today, gold will no longer be convertible as money. It will essentially be worthless as it should be.

-Money is owned by democracy and not private banks or a public-private partnership of unelected bureaucrats at a central bank. If money is owned by democracy, then why do private, for-profit banks lend it to us? Remember when all of those people in the financial community were hyperventilating that the FDIC was going to run out of funding for deposit insurance? Countless people in the financial community wrote these detailed analyses on how this could create a huge crisis. On here, I said you just print the money if banks fail and take depositor’s money. You print all of it. Not some artificial FDIC insurance limit. You protect democracy because it is our money.

-Democratic money is fiat commodity money. It is liberally and abundantly available to all of democracy and all of its citizens. Unlike gold, whose value is derived by force, scarcity and peonage, democratic money’s value is derived by distributing it freely to every citizen. In a free society, money is not wealth. It is simply a form of exchange that enables human expression, science, art, literature and other manifestations of our divinity that are the foundations for our society’s wealth. Grillo made a point here that is very important. When there is too much money, the government collects the excess and burns it. It’s commodity. It’s in itself useless paper that simply enables exchange and sharing of our true wealth.

-Central banks are public-private partnerships that use the state to loot democracy. And, that private, for-profit capital as the only source of investment has no place in democracy. Nor does the ability of private, for-profit capital to decide what our money is spent on have any merit. That not only means banks should have no say in what our government spends its money on but it should not be deciding what businesses or investments are made in our society. The massive debt we have today is because of two reasons. One, because capitalism has denied us a living wage and thus has enslaved us into debt peonage and two, because looters, including banks, have used the comingling of private, for-profit capital and central banks to loot and steal our democracy and enslave us.

-Grillo says if we owe debt to ourselves, then poof, I say all is forgotten and forgiven. That message has been consistent on here. Debt is nothing more than a myth. An illusion. A form of control. You buy your house and then your private, for-profit bank lends it back to you with 30 years worth of usury to enrich private interests? Now, there are people who don’t understand either debt or money who will tell you the U.S. owes money to China and Japan and other “foreign” entities. That is patently false as noted on here before. All U.S. debt is denominated in dollars. All U.S. debt is owed to ourselves. To American citizens. Every single nickel of it. Ditto with Japan whose entire debt is denominated in yen. All of their debt is owed to their own citizens. In the case of many other nations, such as Italy, who have given up their monetary sovereignty because of political and corporate capitalist corruption, they owe it to some illegitimate authority like Germany and they should default on it. That debt is looter’s debt. It was never used by democracy or used to enrich We The People. It was used to loot democracy in countless countries around the globe.

-We are witnessing a great awakening. A global enlightenment. Another long term thesis on here. That awakening will eventually lead to the collapse of the status quo when it reaches critical mass.

F*ck Off! The Age of Enlightenment continues.

Bumblebee Population Experiences “Scary” Decline

noreply@blogger.com (TimingLogic) — Sat, 09 Mar 2013 14:47:00 +0000

More disturbing news. Our perceptions are often that these issues are manmade. Electromagnetic pollution, millions of tons of farming chemicals that even show up in our rain, genetically-modified foods with unknown consequences and endless manmade toxic poisons are everywhere. There have been studies that link humanity to these and other issues but there is no definitive answer. What if none of these are the fundamental factors?

Have you ever wondered if the same forces causing honey bee colony collapse disorder and bumblebee declines are the same forces behind humanity’s collapsing societies? Are we as humans experiencing our own colony collapse disorder?