No announcement yet.

Economic pressures

  • Filter
  • Time
  • Show
Clear All
new posts

  • The Failure of Socialism

    The prime failure of Socialism is human nature.
    "This hope [that egalitarian reward would lead to a higher level of motivation], one that spread far beyond Marx, has been shown by both history and human experience to be irrelevant. For better or worse, human beings do not rise to such heights. Generations of socialists and socially oriented leaders have learned this to their disappointment and more often to their sorrow. The basic fact is clear: the good society must accept men and women as they are.[26]"

    "It is the common error of Socialists to overlook the natural indolence of mankind; their tendency to be passive, to be the slaves of habit, to persist indefinitely in a course once chosen. Let them once attain any state of existence which they consider tolerable, and the danger to be apprehended is that they will thenceforth stagnate; will not exert themselves to improve, and by letting their faculties rust, will lose even the energy required to preserve them from deterioration. Competition may not be the best conceivable stimulus, but it is at present a necessary one, and no one can foresee the time when it will not be indispensable to progress.[23]"
    Criticisms of socialism - Wikipedia, the free encyclopedia

    Here is a good article on the colony of Jamestown. When all the laborers were indentured servants, the colonists dies off by the hundreds. When they were given their own land, they thrived.
    Private Property Saved Jamestown, And With It, America | Cato Institute

    OK, so human nature doesn't work well with socialism. NO PROBLEM, we just re-educate people. Mao, Pol Pot, Lenin and Stalin had re-education camps. The record of Pol Pot is about average. "Khmer Rouge leader Pol Pot to form a Communist peasant farming society"
    He hit a few bumps in his plan and had to kill about 1---3 million out of a population of 8 million.

    Obama's buddy and mentor, Bill Ayers had/has similar plans for America. He said that 50 million hard-core capitalists would need to go to re-education camps and about 25 million would need to be killed.
    Larry Grathwohl on Ayers' plan for American re-education camps and the need to kill millions - YouTube

    The economic parasites always find it necessary to re-educate the producers.... to "fix" their incorrect human nature. Apparently, the Borg finally figure it out.


    • Side note to the shutdown

      At one time, Texas was an independent republic. Texas passed legislation in 2009 to become an independent republic once again if the national GOV fails.
      Obama Ready To "Shutdown" 16 U.S. States - The Free Patriot
      FED GOV was formed by the states to do a few chores that weren't appropriate to the individual states. The states can leave if they want. The civil war was a bludgeon used to keep them from exercising that right.

      The founding fathers created a masterpiece in our constitution. They knew that democracy was mob-rule so, they formed a republic. That is the reason that senators were elected by the state legislature, NOT the people. Unfortunately, this was repealed by the 16th amendment.
      The founding fathers worked tirelessly to create a system that would have BALANCE in power. There was one area where they were not satisfied. They never did come up with a solution. If the supreme court was a federal entity, it would be expected to always "find" in favor of expanding federal power. That is where we find ourselves today.


      • The TPP

        While we have lots of "statists" pulling us towards socialism, we have corporatists pulling us towards Corporatism. Corporatism would have the corporations completely running the show, including GOV. Reportedly, the Trans Pacific Partnership is an agglomeration of corporate heads that would have FULL control.
        "The TPP is the brain child of the corporations. The TPP places all member nations directly under the control of the TPP instead of their respective national governments. Congress has been denied access to review any of the documents. "
        " The corporate controlled TPP has granted themselves the authority to exercise the governmental power of classifying documents and Congress is included in the exclusion. Do you understand that this means we are living in a corporate dictatorship?"
        "Further, a leaked chapter of the TPP speaks to the creation of a TPP Tribunal Council which will have the authority to force member nations to transform its laws, its civil procedures, its criminal procedures, even its electoral process, in order to abide by the TPP Tribunal dictates."
        We Are 90 Days Away from the Total Loss of US Sovereignty | Dave Hodges – The Common Sense Show

        Fascism is defined as a marriage between corporations and the State. Corporatism leaves the the State far below the corporation. We are moving into a total surveillance police state. The TPP will allow the corporate dictator to take full control of the police state.


        • The grand debt ceiling show

          Almost everybody thought that it would be the same old tired theatre. I wasn't so sure. Others aren't so sure. Keep in mind that; if yields on 10 year treasury notes hit 3.5%, there is expected to be a DISORDERLY exit from treasury notes.
          Agora Financial wrote this;
          "This week, the one month Treasury bill -- the short term debt that finances the U.S. day to day operations -- skyrocketed to 5 year highs.

          Soon after, Fidelity, the largest manager of money market mutual funds in the United States, dumped every cent of its treasury holdings that mature in October. As Fidelity slammed the panic button they released this statement:

          "We have to take precautionary measures"

          We recommend you do the same. If what we're forecasting comes to pass, it will seriously impact everything from the way you think about your finances to the safety you've come to expect in public places. And more. "

          Fidelity manages money market funds. They have exited post-haste. Agora sent the notice as an emergency notification. The movie "Rollover" was about a crash caused by a massive withdrawal of money market funds.
          Rollover 1981... world economic collapse - YouTube
          It has real footage from an interview with Rep. Paul Kanjorski talking about the huge withdrawals that almost crashed the system in real life.

          Between Oct. 15 and Nov. 18, U.S. GOV has to rollover $ 441 billion in debt.
          If it is not rolled over, GOV can not continue to operate. The debt ceiling was reached in [B]MAY.[B] Treasury Sec. Has been withholding payments to the federal retirement system to keep from over shooting the limit.
          It has recently been made clear that U.S. GOV will not default on it's debt. Bloomberg had an article where Goldman Sachs said the debt would be paid first. Federal salaries and pensions would be second in line. Might make a person nervous.

          If there is a disorderly exit from treasuries, it is possible that GOV will stiff federal retirees.
          There is a saying in finance; NEVER start a panic....... but, if you do, make sure that you are the first to the exit. If the actions of Fidelity start a panic, all bets are off.


          • automation and price deflation

            The natural tendency of markets is to cause price deflation. The PTB try to block anything that lowers prices. Energy costs are rising and many people are working on alternatives to traditional oil.
            Algal oil seems to be moving towards production. "An acre of soy, for instance, only gives up a pathetic 50 gallons of fuel on a good day. An acre of corn, what we use for ethanol now, yields only 250 gallons of fuel. Even sugar cane only yields 450 gallons of fuel per acre.

            Meanwhile, you can get up to 10,000 gallons of fuel from just one acre of algae."
            The Six Biggest JACKPOT EVENTS
            This article also mentions "spintronics" for computers.

            On the manufacturing front, it looks like 3D printing will bring great price deflation.
            3-D Printing Is Next Computing Revolution: Beltway Insider
            Nano manufacturing will build things that 3D printing can't.
            Viral Manufacturing: Building Nanomachines With Viruses - Popular Mechanics
            All of these will eventually cause price deflation.


            • Gold Standards

              The bankers promoted and caused the world wars. After WW II, it was decided that the world must be on a gold standard to limit the bankers,,, AND wars. In 1971, Nixon Abrogated this agreement. The U.S. House of Representatives originates ALL spending bills. They spent too much for wars and welfare. The wars and welfare have gotten way out of control and in excess.
              Many people in Business are calling for a return to a gold standard. Just to make it more confusing, there are several gold "standards". One "camp" claims that a gold standard would give us an inflexible system.
              Why conservatives spin fairytales about the gold standard | The Great Debate
              Forbes tells us just what the new gold standard will look like.
              Advance Look: What The New Gold Standard Will Look Like - Forbes

              The gold bugs claim that the FED is going to crash and bring back a gold standard.
              Fed To Prompt Currency Crash and Return to Gold Standard | Zero Hedge

              The trick is to have a gold-backed currency that IS flexible but, CAN'T be inflated by bankers to pay for wars. Antal Fekete, extending the work of earlier monetary investigators has come up with a good solution. He calls it "Gold Bills".
              This is a takeoff from a system called Real Bills Doctrine
              Real bills doctrine - Wikipedia, the free encyclopedia
              RBD is a system that almost eliminates banks. In a general sense, only producers, traders and workers are included.
              Fekete is brilliant. Here is a link to other articles.
              Professor Antal E. Fekete - Articles

              Fekete also writes about monetary metals as contrasted with precious metals. Rhodium went from $ 230 oz to $ 10,000 oz. in just a few years. Platinum is a precious metal but, not a monetary metal. Gold is a monetary metal mostly because of it's stock-to'flow numbers. Almost all the gold ever mined is available for trade. There is about 4500 tons a day traded. Commerce IS on the gold standard already. Commerce will eventually demand that GOV move to a gold standard.

              The Statists HATE gold and will fight it however they can.
              TedBits - Newsletter
              The central banks hate gold and will fight it however they can.
              Gold And Silver – Central Bank Death Dance, Part II. Good News/Bad News. | Edge Trader Plus


              • Confidence in American debt

                "And those debt ceiling increases are becoming more tenuous. The 2011 agreement lifted the ceiling until 2013. The first 2013 agreement suspended the ceiling for only three months. The latest agreement, if it holds, buys us only six weeks. "
                Is U.S. Political Bubble About to Burst? - Bloomberg
                This article points out that politicians are fighting and vacillating more and more. What economies really need is stability and predictability. The debt just gets bigger and bigger. This erodes confidence.
                The Life And Death Of A Massive Debt Bubble In Seven Charts | Zero Hedge


                • debt ceiling and the $ 1trillion coin

                  $ 1 trillion coin; "But it has to be made out of platinum. No other metal or substance, like a piece of pizza, will do. The reason is that the Treasury has the right, by an obscure law, to mint platinum coins, but only platinum coins. Otherwise, making money by making money is the Fed’s domain."
                  The Treasury Has Already Minted Two Trillion Dollar Coins - Forbes
                  Dick Eastman;
                  "Once this "harmless" "solution" to the "debt ceiling crisis" is resolved, guess what? Rothschild won't need Congress any more. The president alone will have the power to do all the transacting for financing wars and so on that people want. He has authority to mint the coins and deposit them in the Fed (no restricting on the Treasury making deposits in the Fed of legal money it holds) -- so Congress is obsolete."

                  Krugman loves it so, it must be bad.
                  Bloomberg likes it but, they speak with "forked tongue".
                  Economics Is Platinum: What the Trillion-Dollar Coin Teaches Us - Bloomberg
                  ABC seems to think that it is OK.
                  "Trillion Dollar Coins: The Ultimate Debt Ceiling End-Around?"
                  Trillion Dollar Coins: The Ultimate Debt Ceiling End-Around? - ABC News
                  Historically, a financial crash usually brings in a dictator. If you like obummer as pres, you should love him as dictator.
                  Paul Craig Roberts-Obama Could Govern as a Dictator | Greg Hunter’s USAWatchdog


                  • TAE and Fitts

                    Here is an article by Catherine Austin Fitts at the Daily Bell. It is astounding. I won't excerpt it.
                    The Daily Bell - Catherine Austin Fitts on Moral Investing and the Coming Equity 'Crash-Up'
                    Automatic Earth has an article where the IMF proposes a 10% super-tax on all household wealth in the Eurozone.
                    The IMF Proposes A 10% Supertax On All Eurozone Household Savings | Finance
                    "According to BCG, the amount of developed world debt between household, corporate and government that needs to be eliminated is just over $21 trillion. "
                    "That somewhere is tax of the middle and upper classes, which are in possession of $74 trillion in financial assets, which in turn will have to be taxed at a blended rate of 28.7%."
                    You need to put the 2 articles together. Fitts pulls a number out of the air of $ 40 trillion that was pulled out of developed countries to build up un-developed countries. This is a huge ball of debt that is floating over all of us. It threatens to crash down. $ 21 trillion will be extracted from savings to pay off this debt. Keep in mind that the super-tax is now only proposed for Europe. A similar tax in America would go a along way towards supporting the buildup of the developing world.

                    Those of you who bought gold with instruments will have some splaining to do. RE: "Fools Rush In" Not to worry about your gold. It will go up tremendously so you will be easily able to afford the windfall-profits-tax.


                    • Side note to the shutdown 2

                      Politicians buy votes by promising cradle-to-grave security. 10,000 people a day are signing up for SS for the next 19 years. GOV is finding it hard to come up with the money and is printing to make up the difference. GOV would like very much to reduce the debt overhang. There are propositions to strike a $ 1 trillion coin and give it to the FED to pay off some of the debt.
                      Ron Paul has suggested that we just tell the FED that we are cancelling $ 1.6 trillion,,,, thank you very much.
                      Ron Paul Proposed A Fed Masterstroke That Can End The Debt Ceiling Crisis At Once! - Seeking Alpha
                      The claim is made that "we owe it to ourselves". "WE" is the public and the FED is a PRIVATE institution. You can bet that the Rothschild bankers are a bit nervous about the huge debt that they are owed.
                      The preferred course of action for the"people" is to default on the debt. Since "we the people" just don't have the cash, the bankers plan to foreclose on our valuable property.
                      In Greece, they are taking infrastructure and islands. In Italy, they are taking monuments and castles.
                      U.S. GOV just doesn't have the cash flow to pay the bankers. The bankers have come out VERY clearly and told GOV to cut it's expenses,,, to free up some cash.
                      The Shutdown of the U.S. Government and “Debt Default”: A Dress Rehearsal for the Privatization of the Federal State System? | Global Research
                      Both the B.I.S. and the FED want GOV to cut way back on it's expenses. Prof. Kotlikoff said that unfunded GOV liabilities amount to $ 212 trillion. The current Sec of Treasury suspended payments to the GOV retirement system many months ago to keep from over running the debt ceiling.

                      ALL GOVs spend too much and ALL GOVs default. The preferred method is to grossly inflate the currency for a "soft" default. U.S. GOV hasn't been able to get the desired inflation. Credit is/has been shrinking FAST. Bank credit is referred to as "low powered money". Bank reserves, FED money and gold are referred to as "high powered money". As low powered money shrinks, the FED injects high powered money to replace it.
                      We would be in a disastrous deflation of the FED didn't do this. Deflation is a disaster because there just isn't enough currency to repay loans.
                      The FED did a recharge of financial institutions with high powered money.
                      The FED did not do a recharge of main street and households.

                      GOV wants currency inflation so that it can repay the FED with devalued currency.... Not to mention SS and medicare. The FED is printing about enough to keep inflation muted and deflation at bay. If the FED won't play ball, GOV would like to strike a $ trillion coin or just, cancel the debt to the FED.
                      This pits the rich European bankers against the American middle class. U.S. GOV could always cancel the charter of the FED and tell them to shove it. The charter comes up for renewal THIS December.
                      The FED owns the U.S. dollar and would probably like to preserve it. GOV seems to want unlimited printing.
                      The shutdown, debt ceiling, $ 1 trillion coin, proposed default, AND the expiration of the FED charter are all coming at the same time.

                      It appears that both sides are willing to take us right off a cliff.


                      • Bond market freeze

                        FED GOV finances it's spending through bond sales. Currently, the FED owns about 40% of these bonds. They printed up wet-ink money to buy them. All the fighting in the District of Corruption is making bond investors very nervous. Previous nervousness caused investors to move into short term paper. So, FED GOV has to rollover a LOT of paper.
                        $Trillions are coming due to be rolled over BUT;
                        "A recent Treasury Investment Capital (TIC) Report showed every single type of US$-based securities sold on a net basis, a rare occurrence. The big culprit Treasurys sold a record setting net $40.8 billion, the largest single month sale of USTBonds in history. The consolidated foreign sale in June 2013 was greater than either month when Lehman failed, September or October 2008."
                        Gold Resurrection from Financial Disaster
                        "In June and July, the Jackass indicated that the USFed would eventually be forced to buy up all the foreign dumping of USTreasury Bonds. It happened."

                        Now, the FED doesn't want to overprint the Federal reserve note because it belongs to them and has made them quite rich. At the same time, all these bonds are presented for redemption to the Primary Dealers ... the big banks. The big banks will obviously send them to the FED for cash. The FED has to print to save their brethren, the big banks, OR, not print and save the dollar. GOV will want the FED to save GOV.

                        Jamie Dimon says that a bond collapse is assured. "Q. How worried are you that one morning the bond market has moved against the United States?

                        A. It’s virtually assured, the question is when and how."
                        Jamie Dimon On The US Debt Endgame | Zero Hedge
                        In a bond market freeze, you will get to experience a REAL GOV shutdown.


                        • Country living

                          " Suburban poverty across the country grew 53% between 2000 and 2010, more than twice the rate of urban poverty, according to a recent report by the Brookings Institution. For the first time, more poor people live in the suburbs than in cities. "I think suburban poverty is here to stay," says Alan Berube, one of the authors. "It's not going to revert back to the cities."
                          Winter In America Gets Colder : Why We Choose Poverty | Finance

                          "According to a new report from the Daily Yonder (Rural Strategies' online news journal), the level of poverty in rural America has increased at a rate five times that of the poverty increase in metropolitan areas in the past five years."
                          Rural Poverty Rate Is Increasing | Rural Strategies

                          "Combine harvesters are one of the most economically important labor saving inventions, enabling a small fraction of the population to be engaged in agriculture"
                          Combine harvester - Wikipedia, the free encyclopedia

                          As more people leave rural America, there is a push to let huge areas return to grassland for buffalo,,, the Buffalo Commons.
                          The U.N. would like to see us squeezed in VERY tight.

                          Of the 250 poorest counties in America, 244 are rural.
                          Child Welfare League of America: Children's Voice Article: Article


                          • Control, socialism and misery

                            Charles Darwin showed that survival of the fittest is a natural result of competition. All systems are finite and competition for resources is a given.
                            Originally man competed on a mostly physical basis. As man slowly escaped from being a hunter-gatherer, mental abilities became of ever-increasing importance. Society depends on cooperation but, a small percentage of individuals developed and accentuated their abilities to prey on society. These sociopaths generally tried to rise to control situations because they had nothing productive to offer.

                            Power corrupts and attracts the already corrupted. The State attracts the corrupt and they work to maintain their position. Their mantra; The State is ALL IMPORTANT and therefore, must be ALL POWERFUL.
                            Quoting Hegel; "...the State 'has the supreme right against the individual, whose supreme duty is to be a member of the State... for the right of the world spirit is above all special privileges.'"
                            What is the Hegelian Dialectic?

                            The Statists claim that your highest calling/duty is to be a perfect cog in the machinery of the State. Mother Nature wants you to compete. Competition assumes that somebody is going to lose. Socialism would produce all cogs and no losers.
                            Bureaucrats and bankers shuffle around papers and, in general, don't produce anything positive. IT and AI can do a much better job of managing information. As the Industrial Revolution climbs it's way up the ability ladder, the parasites become more and more distanced from any actual productive work. They fight harder and harder for control as they are increasingly shown to be redundant.

                            "The right to life is the source of all rights—and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave." Ayn Rand
                            Property Rights —Ayn Rand Lexicon

                            Total control by the State is incompatible with private property. Hegel argued that individuals must not have ANY rights so that they could work smoothly in the machine of the STATE. The fulfilment of his dream is called communitarianism.
                            Communitarianism - Final Synthesis In Hegelian Dialectic

                            Herein lies the grand problem. America was founded on the premise that individual rights were granted by God and Nature and could never be limited by King or Government. This flies in the face of both socialism and monarchy.
                            The long-term solution is, of course, the destruction of America. Early America was an amazing success story. How could Marxism be touted as a success if private ownership and free-market capitalism were shown to be wildly successful when socialism was always shown to be a flop?

                            All wars are wars for bankers. Continuing war is a great way to bankrupt a country. How can a country (America) be considered to be successful if it goes bankrupt? Incessant wars for no particular reason are wonderfully destructive.
                            History of US debt is history of US wars - People's Daily Online

                            Most people are focused on the danger of bankruptcy to America. The bankers are just trying to make a buck. The private bankers have NO IDEA that they are expected to go bust and destroy America. The banking laws were changed specifically to allow the natural greed of bankers to crash the system.

                            You start by destroying the education system.
                            Charlotte Iserbyt: The Miseducation of America Part 1-Full - YouTube
                            Stupidity combined with democracy ensures that people will elect leaders who will promise the moon and bankrupt the country. That plan is working pretty well at the moment. Take unfettered greed, mix in stupidity and corruption and you get... bankruptcy. Good, effective plan.

                            Let all the stupid people demand and create the welfare state. That bankrupts GOV. GOV attacks private wealth and bankrupts the banks. As the banks go over the brink of the cliff, they grab and steal everything that they can.

                            "As the Ponzi schemes of the derivatives market began to fail and institutions such as Goldman Sachs were crumbling, this constituted placing this second tier of power on death’s ground. Institutions such as Goldman Sachs and to some degree, the central banks were having their very existence threatened. With a debt of at least $1 quadrillion dollars created by the derivatives, which is 16 times greater than the entire gross product of the planet, these institutions turned even more predatory than before in an attempt to stay one step ahead of the burning bridge. As a result, the American people are facing a pack of level two wounded and desperate animals designed to steal every financial asset that they can"

                            "There is one other consideration in that the second tier of financial power on this planet will eventually run out of assets to plunder and will begin to prey upon each other. This is the breeding ground of WWIII in which both goals of the BIS can be accomplished."
                            The Financial Pyramid of Power | Dave Hodges – The Common Sense Show

                            World banking, world socialism and world control are impossible if America continues to be a success story. The U.S. constitution provided the foundations of a New World Order founded on freedoms that directly clash with socialism and monarchy.
                            "So the Global Empire and the one-world government does not look like it's going to happen as planned – if WE THE PEOPLE of Earth get our way. And people CAN get their way to the degree they realize that central planning and managed economies are relics of the Old World Order. The New World Order – the real New World Order – was established in 1776 with the US Constitution.
                            The Daily Bell - James Jaeger on His Latest Film, MOLON LABE, and the Restoration of Militias

                            You can find any number of articles on the planned destruction of America.
                            You can find any number of articles on how and why it is being done.
                            You can find any number of articles on how GOV is planning to respond.
                            Only 3 of the original 63 articles of the original Magna Carta are still in force.
                            Various power groups are working hard at chipping away at the American constitution.

                            Hugo Salinas Price wrote about the possibility of a coming 500 years of darkness.
                            "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." - Winston Churchill

                            The outcome of the collapse will determine if our children live in misery or a bountiful world where technology is allowed to improve our lives.


                            • opinions on debt

                              James Howard Kunstler has been a doom-and-gloom prophet for a long time. He started out with peak oil. He gradually slid into peak CHEAP oil. Now, he's saying that expensive oil is taking all our money and is going to break us. He does have some interesting points.
                              Growth is Obsolete: James Howard Kunstler | Peak Prosperity
                              Gartner writes pretty well about machines taking jobs.
                              Gartner's dark vision for tech, jobs

                              A collection of smart, investors are warning that GOV generally starts wars to take our attention off bad economic situations.
                              Top Economic Advisers Forecast War and Unrest | Washington's Blog
                              Petras writes about the growing debt.
                              Empire Building, The Debt Ceiling
                              Down the road we go.


                              • charts and inflation

                                The gold-bugs push a lot of gloom and doom to sell a lot of gold. BUT, they have history and statistics on their side. They do a lot of charts to show development. Their claim is that interest rates will revert to the norm and this will crash the system.
                                My Blog

                                Here are a couple of charts that show recent developments.
                                My Blog
                                "“According to my work we will have an indication sometime in March of next year as to which road is going to be taken. Now, between October of this year and March of next year, I suspect the sh*t is going to hit the fan in a big way"
                                "This will be the key: A Federal Open Market Committee Meeting will take place in March of 2014. I don’t know what the hell they are going to do at that meeting with regards to QE, but at that point in time we will know whether we are headed for hyperinflation, or whether the stock averages will completely and utterly collapse."

                                Reportedly, GOV is preparing for collapse;
                                America Future - The Worst Economic Collapse Ever - Prepare 2014 - YouTube
                                Various people are warning of resulting violence.
                                Black mobs and the coming race war

                                The gold bugs claim that GOV won't print til forever because it would be hyper-inflationary. Some investors are claiming that GOV will eventually print $ 1 trillion a month. Dunno. GOV may be able to print enough to "save" itself but, that doesn't mean that it can save business in general.