What is the Deep State?

What is the Deep State?

The Deep State is network of politically powerful people and organizations who dictate policy to all of the major governments of the world.

From Wikipedia:  “The concept of a deep state suggests that there exists a coordinated effort by career government employees and others to influence state policy without regard for democratically elected leadership.”

Is the Deep State a conspiracy? Conspiracy is the wrong word. Governments naturally become infested with crime. The Deep State, regardless of how it is defined, functions as an organized crime organization. Odds are, there is no formal membership. Symbiotic relationships form over a number of years. Most likely the Deep State functions in a way that is similar to the way crime families of old used to cooperate with one another.

It is important to for Americans to know, that the Deep States owns the government of the United States of America. All legislation today supports the agenda of the Deep State organization. The well being of individual lawmakers, depends on how effective they are in accomplishing the goals of the Deep State. This is why, politicians take completely confounding  positions on issues when they are put on the spot. Voting contrary to the will of the Deep State, has severe consequences.

It is extremely important, to know that the Deep State itself as well as other cooperating wealthy persons are above the law. That is because they own the government. By virtue of owning the United States government, the Deep State also owns the FBI and the CIA. Why do employees of these agencies do and say such bizarre and unexpected things? There loyalty lies with the Deep State and not United State citizens.

The goals of the major media organizations are completely compatible with those of the deep state. The media is not actually biased, but just working in ways that bolster its bottom line.

Where does Donald Trump fit into this picture? For unknown reasons, Donald Trump is not part of the Deep State. A non affiliated president serves as a serious threat to them. The Deep state is a for profit organization. Their profit largely comes from managing the opinions and activities of the overall population. If Americans discover how much they are being fleeced, that will be a huge financial blow to the Deep State.

The emergency mode of efforts to get rid of Donald Trump are not based on political ideology but out of fear he might cause the break up of the Deep State or at least disrupt its business model which is based on exploiting ordinary members of the world’s population.

 

 

 

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The End of Capitalism

Central banks are buying massive amounts of stock.Does that spell the end of capitalism? In capitalism, the factors of production are privately owned. As central banks continue to buy up the world’s supply of stocks, governments control a greater and greater supply of the factors of production. But,since what they own now is such a small percent of total stock outstanding, why does it matter?

What is bought on a daily basis is adding up rapidly. Add what central banks own to what is owned by a handful of super wealthy individuals, who control government policy and capitalism will die.

What happens during the next economic downturn? Central bank will go on parabolic buy programs.

Popular dogma, declares that central banks are working tirelessly for the good of the economies of various countries. That is not actually the case. Central banks by virtue of political systems, work tirelessly to further enrich the most politically powerful members of the human race.

Mainstream economics treats all money the same but that is false. There is money which is backed by work. That is the kind of money ordinary citizens use when buying equities. Central banks and favored citizens buy stock with unearned money. Unearned money is available in unlimited amounts.

Unearned money is created under the auspice of stimulating economies but its purpose is actually to change the behavior of others who only have earned money to work with.

Yes, central banks buying stock directly or through surrogates will destroy capitalism. Capitalism is in fact being destroyed while we watch.

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Stock Market and Governments

How is it that the stock market goes up forever?  The fastest and most efficient way to create an endless flow of income and wealth is to buy the government and then give a directive to to operate an asset value enhancement initiative.  Declare that the program is in the public interest, create massive amounts of money out of thin air and then have the central bank push stock prices up.

But wait. Why only buy the U.S. government? Why not buy all of the others also? It takes massive amounts of money to buy the U.S. government. The smaller countries can be bought for a song and a dance relative to what is costs to buy the United States. Tell the world’s population that it is for their own good and that experts are in charge. There it is done.

Since we know why stock prices are rising while the world’s economies are collapsing, it becomes a piece of cake to understand why markets go up instead of down during times of global stress. Central banks simply buy enough stock to offset the negative sentiment.

The moral here is not to expect a decline ever on bad news. The public in all countries are unaware of economic danger more so than at any other time in history. The losses to the public are enormous but they are stealth in nature. As long as the public doesn’t mind, central banks will continue to move asset prices higher. If they have to, they will buy up all of the worldwide supply of equities.

Will this actually happen? It will happen, provided the public does not figure out how they are being fleeced. Complete destruction of all of the world’s economies will occur. This is no problem for the deep state. The deep state is interested only in personal gain. At whose expense is not even relevant. The world economy collapses, and they will not worry. They will have made so much money it will make little difference to them. They might be sad that this game is over. They will just start another one.

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World Leaders Kill

It takes a political personality to become a world leader. That is similar if not the same as sociopath.

Shortly after being elected, without flinching, Donald Trump launched a missile attack into Syria. Somebody died for sure. We don’t know who are how many. Most only guess as to why.

Vladimir Putin is said to have ordered the execution of a number of people deemed to be traitors to Russia.

Chances are that during evolution, certain personality types came into being as various tasks within groups of people needed to be performed. World leaders are likely a result of that process. The ability of an aggregation to survive called for a leader who could make life and death decisions without the handicap of a conscience  or feelings of remorse.

That being said, Vladimir Putin is one of the greatest communicators the world has ever known. His defusing of Megyn Kelly’s ridiculous questions in St. Petersburg was totally masterful. I know little about Russian intentions on the world stage so this is not an endorsement of Putin or anything Russian. It is not a condemnation either.

Putin does not flinch. He remains businesslike regardless of the silliness of the person who is interviewing him. That is to be commended.

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Healthcare From Now On

Americans have opted for mandatory health insurance and are treating it as universal healthcare. Do not expect an increase in the level or quality of actual healthcare in the country. As a patient you may have already noticed that the utility of a visit to your doctor has decreased and is continuing to decrease further with every passing day. This is because your doctor is dealing directly with your insurance company and only indirectly with you as a patient. Your doctor’s bottom line is determined by his relationship with your insurance carrier and not you. A doctors income is greatly enhanced by accommodating the goals of the insurance companies he works and hardly at all by accommodating you as a patient.

A doctor is not likely to diagnose a problem that is not profitable to treat. From now on, your treatment will be based more on equilibriums physicians and insurance companies establish with one another and less by what you need as a patient.

When free markets are abandoned, good will disappears along with them. Expect high costs and poor results until the inevitable happens. Patients will eventually find successful ways to deal with their health issues. Rigged markets always unravel and healthcare will unravel also. In the short run unsuspecting patients will be easy to exploit. Over time, alternatives to mass market medicine will emerge. Do I know what the alternatives will be? No, but I do know how markets function and that market influences never completely disappear when they are stifled.

Remember the days of the only phone company in town? The development of the mobile phone changed all of that. Something of that nature will happen in medicine. You can count on it.

For now though, expect conditions to go undiagnosed or mis diagnosed. Expect to pay a lot and get very little.

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The Bubble in Stupidity

In the comments section of an article I read, someone made the point that Americans are too stupid to know they are being fleeced. There is great concern over the bubble in stock prices and a second bubble in real estate. Neither of these bubbles could not have occurred if it were not for the unprecedented high level of stupidity that pervades the world’s population today.

In the United States, Federal Reserve Monetary policy is the most cited reason for the huge distortion in asset prices. If ordinary Americans had any idea of how much the asset enhancement initiative has and is costing them, they would have reined in government a long time ago. There is not enough space in one article to explain all of the thinking errors that have contributed to the poverty of Americans. I will go over a few.

The biggest error of course, is the notion that economic stimulus by government has any chance of benefiting everyone in the country. A close second is the idea that experts are competent and know the best thing to do. Close to that is the expectation that the public is being dealt with honestly.

The notion that deflation is bad and needs to be avoided is lethal with respect to the real incomes of citizens. Deflation is an important part of a free market system and occurs from time to time. At any given time one segment of the economy has an advantage over all others. This is always temporary. When the productivity of labor increases, prices come down. The real income of labor increases because earnings buy more. GDP can suffer a temporary setback but always recovers.

What Federal Reserve  quantitative easing has done is elevate profit margins of corporations artificially. Inflation is now being tauted as a good thing. It is not. If you want to know why your basic living expenses have increased so much, this is the reason. Quantitative easing is a political initiative and has never had a chance of improving the over all economy. There is not even a theory that says it will or could. It is only a way of bolstering the economic situation of the worlds most politically powerful citizens.

I have been writing constantly, for many months, that government intervention is destroying the economy and the final result will be a terrible crash.  The horrible situation the economy is entering into would not be possible without the near total stupidity of ordinary American who for years have been duped into promoting their own poverty.

It may be to late to avoid an economic disaster but individuals can still act in their on behalves and minimize further damage to themselves. As I have said many times, nature provides basically one incentive, self interest. The incentive to serve exists only in folk’s imaginations. Just knowing that people in government are there to take for themselves and only represent folks who make it worth their while, puts one at a great advantage in trying to survive the coming stress.

 

 

 

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Where do Despots Come From?

Adolph Hitler and Benito Mussolini

Adolph Hitler is always first to be mentioned as an example of a destructive despot. Hitler was highly theatrical and he killed many Americans can easily identify with. There have been many, some of whom killed far more than Hitler. These killers seem to pop up around the globe. So, how does one become one of these immoral killing machines? Getting in that position is really not all that easy.

Despots always come from the pool of world leaders or heads of state. Not everyone has what it takes to become a world leader. Leader of a nation is the most competitive occupation on the planet. It takes a person with highly unlikely and specialized personality characteristics.  The terms sociopath, psychopath and political personality are often used to describe the necessary characteristics needed to acquire such a high level of power.

The World’s Biggest Waste of Time

Any world leader has the potential to be a despot but only a few lead groups of people gullible and desperate enough to allow one to obtain such a high level of power. Each potential despot is also held in check by other world leaders and politicians vying for power.

At any given time all but a few world leaders would try to assume total power over as many others as possible. The question always is, what country has  citizens gullible and pliable enough to turn their lives and future over to a single leader?

In the United States today, we have a huge segment who are rebelling against the democratic process. For many their biggest expectation from government is to make sure others speak only kind words to them and refrain from describing them with unflattering terms.  Citizens in the United States get no meaningful information with respect to the activities of government. That is not by accident. If citizens actually knew what lawmakers were doing, they might vote them out of office.

Although real wages have been declining for many decades, poverty in the United States is still not that uncomfortable. But, the level of ignorance is about on par with citizens in most third world countries. Venezuela is an example of a country where citizens have recently voluntarily turned their lives over to an immoral government. They are now paying the price by way of starvation and other suffering.

Do not think just because the poor here are not suffering all that much that our citizens won’t volunteer for slavery. A large number are already doing so. Human beings as a species are instinctively driven to serve a master. Humans can override their basic instincts with intellect but acting on instinct is the path of least resistance. The brain is not a freedom seeking organ. The brain is focused on survival.

The danger to freedom loving citizens comes less from government and more from their brethren who opt for the promises of a leader. At this very moment, the world is full of leaders whom given the opportunity would take on the role of despot.

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The Trump Tax Plan

I specialize in debunking complex theories and explanations in a minute or less with just a sentence or two. First let me say that any change to the tax code benefits those with the balance of political power and hurts everyone else. Since most of the political power is possessed by a small fraction of citizens, any change in the tax code will harm all but a few citizens. Tax reductions that are not preceded by spending cuts are always a net loss to the country as a whole.

Has there been a reduction in spending? No, Trump is promising increases in spending. With that said, the whole plan is bunk and just another gift to the rich.

What attribute must any good system of taxation possess? A good system of taxation always keeps citizens aware of what government costs. Taxes should go up when government spends more and go down when it spends less. Does Trump’s plan do this? No it does just the opposite. It is a bad plan and a license  to spend without bounds.

If citizens are unaware of or confused about what government costs there is no way for citizens to rein in government for spending too much. That is actually the goal of the type of tax changes Trump is recommending.

Why am I against a 15% corporate income tax? Corporations are unique in that they can levy taxes on citizens just as government can. Citizens cannot force others to do things like buy gas with ethanol in it. Corporations have enough political power to dictate monetary policy to the Federal Reserve, keeping their profit margins high while lowering real wages. Ordinary citizens do not have these kinds of privileges. Take away the ability of corporations to use government as a tool and 0% is a reasonable tax for them to pay given that shareholders are already taxed on corporate profits as they are distributed. Given the enormous power corporations have over government policy, they are paying way too little as it is.

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Update on the Possibility of War

Earlier this month, I put out a notice that based on the various cross currents in play, there would be no war. At that time, I saw a better chance the rumblings would be used to draw short sellers into the stock market, to squeeze in order to help generate a huge rally. News would be the Catalyst. I worked out that way. I have made new fantasy free observations and need to make an update.

I am Forecasting no War  from April 10, 2017

Now chances are are that there actually will be war of some kind or some kind of devastating economic development, perhaps both. What has changed?

First understand that I have no meaningful information. You have none either. Congress and the rest of government do not disseminate information to the public. An ignorant population is no threat to those engaged in the power and money grab free for all.

Despite claims to the contrary, government’s most prominent and overriding function is to keep asset prices high and moving higher. The shock of even a normal stock market correction, not to mention a crash would throw the economy into a major tailspin. War may or may not be inevitable but it is very very likely. Strings of economic disappointments and major events are an absolute certainty. Timing on these things is hard. It is like trying to predict the exact date an obese person with a damaged heart is going to die. Exactly when is not knowable.

Certainly an event or a number of events are in the offing for the immediate future. Just because you have no information does not mean there is none. It means it is not desirable to have ordinary people know the ins and outs about what is really going on.

If asset prices are going to fall it is advantageous to the consortium which manipulates markets to have them drop from the highest possible level. After the decline begins no effort will be spared in trying to stabilize  prices and reverse the decline. Look first for central banks to control the rate of decline and then try to make a consolidation the first moment volume moderates. From a consolidation efforts will then be focused on slowly ratcheting prices higher, drawing in shorts to squeeze and finally attempting to rally the market back into an uptrend.

How do I know these things? I don’t know anymore than you do. I do understand the incentive of the folks involved and know what to expect from them.

Keep this in mind. Any stock market decline has the chance of snowballing. There is no guarantee the tools of manipulation will continue to work given a big enough issue. What I am describing is how the manipulators will try to deal with the downturn.

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The United States Economy is Doomed

Long sideways consolidations along with negative stories in the financial media are encouraged in order to draw in short sellers to squeeze in creating the next rally

A great number of poor and middle class have already noticed.  The easiest way to make the most money in the shortest period of time is to use money and power to buy the government. After that just make sure that the policies paid for are those which make keep you rich and make you richer. rich. The most prolific money gusher of all times is that of controlling central bank’s  policies so as to create an endless bull market in asset prices with money created out of thin air.

If you want to look at a bunch of charts and numbers and get a different explanation. find a Harvard trained economist. Any of them will do. Any of them can convince you that I am wrong and a nut case. Their credentials are impressive.  There are a number of reasons I don’t rely on statistics and numbers. The biggest reason is that numbers are useless in the present moment. Understand the incentives that create the numbers and it is easy enough to know what is going on and with more precision. Go to a Harvard trained economist to get bedazzled. Read my articles to find out how the future is most likely to unfold. I am completely fantasy free. Their work is heavily dependent on assumptions that are completely untrue.

How do I know the U.S. economy is doomed? Saving the status quo over and over again guarantees an allocation of resources that gets more and more inefficient with every passing moment. Show me you say. I am sorry, there are no numbers that show human beings acting on incentives they possess. No precise numbers are necessary. No charts are needed. The behavior is what counts.

Any good economic numbers are occurring as a result of rising asset prices. The rich spend a lot of their newly acquired treasure. Take that away and the economy collapses.

Here is the problem with funding an economy by delivering to the powerful a continuous stream of unearned wealth and income. Any positive incentives the rich have with respect to economics are changed. There is no reason to invest in plant and equipment if government is sponsoring an increase in value for everything you own without you having to lift a finger. Corporations become lately.

Central banks have no political incentives to back off of their asset enhancement initiatives. They won’t unless there is a breakdown in civil order and somehow they are force to quit by political will. Traders in the financial markets are still using old dogma which was developed to be used in a free market setting. All these techniques do is generate losses and confound the people who use them.

With central banks in charge of elevating asset prices, using unearned money; any international event, war, threat of war or strange election result is used to draw in short sellers who are subsequently squeezed out of positions to create a surprise rally. There is absolutely nothing in the news currently which will cause a market crash.

If necessary, central banks will buy up enough stock to have controlling interest in the world’s largest corporations. If that plays out, the corporations acquired will become fat, lazy and falter. They will be replaced privately with new emerging corporations which produce and earn. In such a case, economies world wide will take many years to reset. Poverty will increase and goodwill that has not already disappeared from consumer markets will be gone completely.

One thing that will be hard to ignore will be when Gross Domestic Product turns negative and stays that way. That alone will not put an end to Federal Reserve tyranny. What it will do is cause ordinary citizens to override their instinctive propensity to trust government. That is a rare occurrence but given enough stress, individuals can and will opt for individual thought. Herd behavior is the path of least resistance. Given enough pain and stress folks will break away from herding behavior.

Regardless of the exact path followed, the United States economy is being held together by driving asset prices into the stratosphere. The collapse will come when asset prices fall. If there is a way to prevent that from happening, the investor class will do everything under the sun to keep it from happening. Just know that it will collapse.

Central banks are buying stocks with both hands. They won’t stop until they have to. Don’t count on international events to make a difference. Be it war, a change in government somewhere or anything else, central banks will just buy more. Remember, you can only trade with money you have earned. Central banks have unlimited sums, restricted not by God or anyone. They will use that money as they always have to take what little you have and divert to others with political power.

 

 

 

 

 

Central banks are buying stocks with both hands. They won’t stop until they have to. Don’t count on international events to make a difference. Be it war, a change in government somewhere or anything else, central banks will just buy more. Remember, you can only trade with money you have earned. Central banks have unlimited sums, restricted not by God or anyone. They will use that money as they always have to take what little you have and divert to others with political power.

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