Baltimore Riots

20150427_balt5Let me remind folks to expect more riots. Why? Laws are not being enforced at the top, especially in the financial sector. In a fascist system criminals get a pass if it is perceived that prosecuting them would be bad for the economy. Elitists benefit by extracting wealth and income out of everyone else. They are arrogant enough to assume no one notices their dishonesty.

People actually do notice even if they can’t put a finger precisely on the problem. Intuitively they know something is wrong even if they don’t know exactly what it is.

As long as folks are comfortable, dishonesty at the top is someone else’s problem. I will guarantee that blacks in Baltimore have more problems than being unfairly targeted by the police. When people get uncomfortable, they are prone to striking at government, and rioting.

There will be more riots even if issues between blacks and police are resolved. Trickle down economics is a cute term but it doesn’t have any real meaning. Trickle down crime is a very real thing because regular people take their cues from the people at the top. Crime is contagious.

Right now we are seeing civil unrest on the part of the seriously economically disadvantaged. In a fascist system the first lives to be destroyed are the ones at the bottom rung of the economic ladder. In just a little time the system starts to destroy the rung one step higher. Suffering starts at the bottom and then moves higher and higher until the economy is destroyed.

The issues between blacks and police goes all the way back to the civil war. Why are they picking 2015 to riot? I have already given you the answer to that question.

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Markets, Manias, and Weather

James, this is a quote often used today, and for good reason I think.

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”

The line is from a book first published in 1841 Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay (1814-1889).

 

In today’s world, when large numbers of people seem to accept that governments can control the weather with taxes and regulations, that decisions from the halls of power are superior to ordinary market-driven decisions of multitudes of individuals, and the major indices soar on abysmal data, one must wonder at the lack of any reasoning or logic. Perhaps Shakespeare was correct – there truly is nothing new under the sun, but the scale today is breathtaking.

The book is available on Amazon (and other sellers I’m sure).

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Pro Business Vs. Free Market

Grandmothers all across the country are busy promoting their own poverty

Grandmothers all across the country are busy promoting their own poverty.

 

In a free market system, Grandma works all her life and saves $100,000 for retirement. She earns 5% per year in interest or $5000.00 per year in terms of dollars. Eventually Grandma dies and leaves $1,000 to charity and $33,000 to each of her children.

In a pro business system (fascist) banks and other corporations do not need to borrow from Americans who have earned and saved money. Instead, the Federal Reserve creates an endless amount of free money to lone to businesses for less than the rate of inflation. So, Grandma receives $500 per year on her savings instead of $5000.00.

Corporations lobby Congress and get bills passed to force Grandma to pay extra for gasoline because of the ethanol requirement. Free money to businesses allows them to maintain high profit margins and that costs Grannie also.

In a fascist system, government is not merely used to cheat ordinary Americans. In this system money goes to the top just like cream. When the public is completely squeezed out by using government, businesses start cheating one another. When that source dries up a war is often started to temporarily stimulate demand. Anyone who thinks the industrialists in Germany had no influence over Hitler, has not studied history. The industrialists were just as culpable as the bad man himself. Most German corporations survived WWII as did Japanese corporations.

Oddly, Americans don’t mind being cheated. This is fine except, the entire country is being destroyed along with the wellbeing of grandparents, children and grandchildren.

 

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Fascism an Incurable Cancer

6a00d834516ae369e20176170ec3c8970c-800wiFascism has many definitions but in all cases there is pervasive cooperation between government and business. Following WWI Benito Mussolini of Italy used the term but most fascist countries fail to identify themselves as such.

So far Fascism has destroyed every country in which it has been tried. In democratic societies, Fascism develops without much awareness on the part of the public. Politicians and business leaders have compatible goals and aspirations. The news media feeds off of both. Formal agreements are not necessary because parties with compatible incentives find one another and work together naturally. Businesses compete for access to government in order to remove themselves from free market restraints. Often a business can have laws passed that literally capture customers or force people to buy products and services.

In early years a fascist setup demonstrates amazing economic growth and thus gets the respect of voters. Pro-business is deemed to be conservative and the public assumes, pro-business is part of capitalism. All the while, the economy is being destroyed. Income distribution is increasingly skewed to the top. The poor are scorned for being lazy.

So, why is fascism so bad for a country if the economy grows so fast? The competition among corporations to control government becomes deadly. Fascism robs the poor and middle class from the beginning but also forces smaller corporations out of business eventually. Resources are allocated less efficiently with every day that passes. In a free market economy what is produced is what people want to buy. When business controls government there is a natural incentive to extract money out of people rather than satisfy consumer preferences. All businesses become less and less efficient until the whole system implodes.

The initial successes of a fascist system stop suddenly. Think of an economy as if it was a jet plane. Fly a jet at maximum speed and its performance is amazing but it runs out of fuel very quickly. A fascist economy is like a jet plane flying at maximum speed with a pilot who does not plan on landing any time soon. His fate is known ahead of time. It works the same with pro-business government policies. Under Fascism, corporations unwittingly destroy their food supply.

Fascism is a cancer that grows in a society and so far it has not been successfully treated. It has destroyed every country in which it has been tried. Despite Americans’ high opinion of themselves, the United States has evolved into a fascist country. Chances are very good that this system will be terminal. There are no cases of reformed Fascist nations.

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The Best of The Best

2014-06-11t155415z1813105711gm1ea6b1uc101rtrmadp3usa-politics-clintonI make the case constantly the truth has no utility in politics. For one it turns off voters. Secondly, as soon as the truth is told, it is arbitraged into something more appealing. Suppose candidate A tells the truth. Candidate B will change it just a little so as to get an even better response than candidate A. Then it is no longer the truth. As the processes continues the truth is completely swept from the political arena.

Hilary Clinton is the most accomplished liar I have ever heard. One principle of a good lie telling this lady understands perfectly is understanding completely what the audience wants to hear. What registers as truth with voters? Tell them what they want to hear and it will register with them as the truth.

As her campaign continues, everything Clinton says will be of the the nature of what people want to hear. Some audiences will hear one thing and others will hear another. It will be deemed the truth by those listening because it is what they want to hear.

Another important aspect of lie telling is understanding how fast negative interpretations fade from the national conversation. By now the Benghazi incident has been forgotten by the rank and file. She is an absolute artist at burying these things. Anyone who lies this effectively should never be dismissed becauae in democracy the best liar always wins.

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Conservative = Liberal

liberalconservativeI have decided to stop using the word conservative to describe myself. What does it mean to be a conservative today? It means the person is just a small part of a multitude of idiots who serve as cannon fodder for the RNC, Fox News and conservative talk show hosts all over the country.

Conservative is a good enough term for folks who describe themselves as conservatives. They are apologists for the pro-business government policies that make it impossible for the United States to recover from any recession, depression or economic accident. They also completely trust the government to launch moral and successful military campaigns. Never is a war seen as wrong or even unnecessary. This is the same government they also trust to manage the economy provided it is all pro-business. Pro-business, of course is fascism. It is growing very rapidly and completely destroys any society it infects. Liberals are terrible but they have never supported anything this bad. Liberals only want something for nothing and that is not half as dangerous.

It is almost forgotten that when Castro came into power in Cuba, he replaced a Fascist regime, Economic opportunities for working people were completely destroyed. The regime under Batista worked closely with the Mob and the Cuban elite had nothing to complain about. Government supported large businesses and the rich loved Batista. This all helped usher Castro in and he finished the country off. What is happening today in the United States is the same as what was happening in Cuba prior to the Communist take over.

I don’t treat presidents as bad or good. They just do good or bad things based on their own best interest. I don’t know why Obama started normalizing relations with Cuba but this one good thing could outweigh all of the damage he has done in other areas. While the United States is dismantling its free market system, free market seeds are being planted 90 miles from Florida. This won’t hurt anybody.

Here is Hard Times Coming, Curbside Jimmy

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Possible Outcomes

ooSeveral weeks ago I made the observation that central banks are buying stocks outright in order to keep equity prices moving up. This replaces the older system of working with privateer firms for the same purpose. The change has occurred because, even getting advance information from the Fed, the program has turned unprofitable for the privateers. The Federal Reserve can no longer offer them risk free trading.

To keep prices moving higher, governments now must acquire and hold stocks. There are only two possible outcomes. Either so much selling comes in that they can’t absorb the supply and the market crashes sooner or they continue buying stocks until government owns enough stock to control what large corporations do. To do this they don’t need anywhere close to 50% of outstanding shares. In most cases 3% is all it takes. In the latter case, the market crashes later. There is a remote chance the public will, wake up and notice their income and wealth are being stolen. The economy has been destroyed and it is only a matter of time before the rank and file figure it out.

Make no mistake, fascism is a form of socialism although it is seldom discussed that way. Think of it as top down socialism. Fascism has been ushered in by the country’s conservative brethren. Only a level playing field is good for the country. Pro-business is not compatible with the fee market philosophy.

 

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Two Dumbest Political Strategies

shutterstock_33786634_1There are only three things citizens want from government.

1.) protection

2.) something for nothing

3,) to reap where one has not sewn

The proper role of government is to administer justice and this falls under protection. Government providing protection is taken for granted. Every now and then there is an initiative to bolster the military but not that often.

Virtually all who approach government seek something for nothing or want to reap where they haven’t sown. Special sales people, the best in the world are hired to seek something for nothing or to enable their clients to reap where they don’t sow.

So what are the dumb strategies? Certainly nothing the upper 1% is doing is dumb. We all know that getting something for nothing is not possible but it is possible to come real close. The upper 1% do come real close. Commandeering the Federal Reserve to run up stock prices at the expense of the rest of the country provides the rich with more income than the poor get from all of their programs put together.

The poor never ask for anything but they do get enough to keep them from rioting.

Rank and file party members are the ones with the dumb political strategies.

Everything the government does happens because of pressure from outside the formal political system. Both Republicans and Democrats hold onto the fantasies of getting something for nothing or reaping where they don’t sow. They expect to achieve these things by working within the system when they are completely powerless and have not representation in congress.

Both groups would be better off if they focused on stopping the rich from using government to exploit everyone else. It is in fact possible to come very close to getting something for nothing from government. It is also possible to make billions reaping where one doesn’t sow. But only the rich have the political power to control government from outside of the formal system.

 

 

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Quantitative Easing Has Not Failed!

5-New-Lies-That-The-Federal-Reserve-Is-Telling-The-American-People-300x225Today I read a number of comments by mainstream economists who are now saying quantitative easing has failed. There are two reasons for quantitative easing. There is the ostensible reason and the real reason. Quantitative easing for the ostensible reason has of course failed. There has never been a reason why it would have succeeded. Quantitative easing has never been based on a complete theory and it was never has been tested.

But the real reason for engaging is quantitative easing was to protect the assets and income of the investor class. Quantitative easing is only the tail end of the program. Early in the George W. Bush administration government began tampering with the financial markets. By summer of 2006 financial markets were clearly becoming distressed. Henry Paulsen was appointed as treasury secretary for the express purpose of building a consortium of financial players who would join the government in enhancing asset prices. Paulson’s efforts were monumental but the crisis of 2008 was unstoppable. TARP was initiated and quantitative easing has followed.

In 2008 the rich were taken off guard. This time when the market crashes, the big losers will be ordinary folks with IRAs. Ordinary folks have already lost the interest they would have earned in a free market setting. Now most will lose everything they have set aside for retirement.

Quantitative easing has been a tremendous success because its real purpose has been achieved completely. No one with a PHD from an Ivy league school really believes quantitative easing was anything other than a political initiative for protecting the investor class. Don’t expect any of them to admit that.

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Over Herding

sheepdogHuman beings have a strong herding instinct, certainly as strong as the instinct that guides, horses, cattle, sheep and many other animals. How do we know humans are herd animals? We watch them with our euphemism free clear vision. Humans herd other animals and they also herd one another.

The Internet has evolved into the greatest herding tool since the cattle prod. So how do humans herd each other? They use the same techniques they employ in herding less intelligent animals. A reward is offered and choices are narrowed. The human animal takes the reward and continues down the path of least resistance that they are offered. Sometimes fear is used to scare them down a preferred path. It is the same as is with other animals. Humans deny being herd animals but all one needs to do is watch them.

Like any other animal they can be over herded and that is what the Internet has done. A complete herding industry has evolved where behavior and opinions are managed. Google and facebook are completely funded by human herding. Each determines what you see and each profits by guiding people, limiting choices and and stimulating them.

Just like with the cattle drives of old, too much herding in too short of a time wears the animal down. Americans today are like a herd of dairy cows that has been over milked. Over herding destroys the utility of animals.

Internet advertisers are not getting results and they are becoming very aggressive. It is getting harder to get folks to click the mouse. People are saying to themselves. Nope, I am not falling for that again. News sites are losing readers because it is not worth the trouble given all of the badgering they encounter in the process. This kind of thing is normal where consumers have free choice, even when it is limited. Consumers are not behaving in the ways ad companies expected them to. It is turning out that the Internet is not a source of unlimited profits after all.

Here is Curbside Jimmy’s Euphemism-Mountain.mp3. It is all about the euphemisms of life.

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