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Bureaucrats, Keynes, credit... Taxes&fines... fire or ice
Socialism is the firewall between non-producers and Darwinian pressures. The average bureaucrat who is employed by the State knows very well that he is of no particular use to the productive sector. An economy that is focused on profit-making has little use for State bureaucrats. When John Keynes came along with an operating system that was hugely benevolent to the bureaucrats, they all jumped on-board.
"2. The dominant economic theory for the past 80 years is Keynesianism, i.e. the notion that the state and central bank must aggressively manage private-sector consumption (demand) and lending via centrally planned and funded fiscal and monetary stimulus during downturns (recessions/depressions). "
"The greatest single invention of all time in the Keynesian universe is credit, because credit enables people to borrow from their future earnings to consume more in the present. Credit thus expands aggregate demand for more goods and services, which is the whole purpose of existence in this world-view: buy more stuff."
"In the Keynesian universe, this self-reinforcing contraction of imprudent credit and widespread losses of speculative wealth are Bad Things. Very Bad Things. Important, Powerful People tend to own issuers of credit (banks), and losses are not something they signed up for.
If all the Little People stop borrowing more money, the Powerful Owners of the credit-issuing machines (banks) can no longer reap enormous profits from issuing more credit, and that is a Very Bad Thing."
"The Keynesian answer is simple: the government should borrow and spend lots of money to replace all the money that the private sector is no longer borrowing and spending"
Of Two Minds - The Keynesian Cult Has Failed: "Emergency" Stimulus Is Now Permanent
Millions of bureaucrats worldwide lament the advent of the computer that promises to erase what little justification previously existed for their jobs. They implement V.A.T. taxes and carbon taxes and every other tax they can dream up. They pass a million new laws so that they can impose a million new fines. They salivate like a dog at the prospect of the new taxes generated by the legalization of marijuana. They use asset seizure to steal more than all the burglars.
Like the highwayman of old, they pull you over and demand to see your cash. If you have any, it MUST be the proceeds of criminal activity. No matter that most of the people they shake down like this have less than $200. There is no tax or fine that embarrass them.
Democrats Have Found A Way To Directly Tax "White Privilege" And They Are About To Implement It In Seattle
The socialists and communists have had plenty of economic crashes to their credit. It looks like the technocrats and bureaucrats must be given credit for the next crash.
What form will it take? The reserve-currency status allowed us to inflate like crazy over the years.
" The Federal Reserve was designed to create an endless spiral of government debt, and since the day it was created the U.S. national debt has gotten more than 5000 times larger and the value of the U.S. dollar has declined by about 98 percent."
Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s
There are endless claims of coming hyperinflation. Keep in mind that we have had long-running inflation. GOV can print but, can it actually inject more fresh money into the economy? It easily injected lots of liquidity into the upper loop. if it did the same to the lower loop, we would all stop working.
The Automatic Earth and many other writers are celling for enormous deflation. Smith writes about the 2 possibilities.
oftwominds-Charles Hugh Smith: Does the World End in Fire or Ice? Thoughts on Japan and the Inflation/Deflation Debate
Armstrong said that hyperinflation is for peripheral economies, not central economies. Everything runs on credit. Paper money is only 4/10s of a percent the entire money supply. What happens to credit when confidence disappears? If nobody advances credit, what happens to spending?
I believe that TAE is correct in calling for a total deflationary collapse. Armstrong said that we would have both inflation and deflation.
It will most likely appear as a rise in prices of necessities and a drop in prices of non-necessities.
They key is China and our trade deficit.
The Chinese are long-term planners,,, as opposed to the West. They let their shadow-banking system run wild knowing that it would blow up. They will fine-tune the meltdown depending on what the West does. They have avoided ALL mention of gold because they don't want the price to rise until they have all of it.
While the West is totally absorbed with protecting it's pedophiles, rackets, and criminals, China is busy building the new Silk Road.
Yep, 20 years of laundering mob money for dirty banks.
It took a long time but, once wind and solar got a foothold, carbon energy is fast declining.
Socialism is the firewall between non-producers and Darwinian pressures. The average bureaucrat who is employed by the State knows very well that he is of no particular use to the productive sector. An economy that is focused on profit-making has little use for State bureaucrats. When John Keynes came along with an operating system that was hugely benevolent to the bureaucrats, they all jumped on-board.
"2. The dominant economic theory for the past 80 years is Keynesianism, i.e. the notion that the state and central bank must aggressively manage private-sector consumption (demand) and lending via centrally planned and funded fiscal and monetary stimulus during downturns (recessions/depressions). "
"The greatest single invention of all time in the Keynesian universe is credit, because credit enables people to borrow from their future earnings to consume more in the present. Credit thus expands aggregate demand for more goods and services, which is the whole purpose of existence in this world-view: buy more stuff."
"In the Keynesian universe, this self-reinforcing contraction of imprudent credit and widespread losses of speculative wealth are Bad Things. Very Bad Things. Important, Powerful People tend to own issuers of credit (banks), and losses are not something they signed up for.
If all the Little People stop borrowing more money, the Powerful Owners of the credit-issuing machines (banks) can no longer reap enormous profits from issuing more credit, and that is a Very Bad Thing."
"The Keynesian answer is simple: the government should borrow and spend lots of money to replace all the money that the private sector is no longer borrowing and spending"
Of Two Minds - The Keynesian Cult Has Failed: "Emergency" Stimulus Is Now Permanent
Millions of bureaucrats worldwide lament the advent of the computer that promises to erase what little justification previously existed for their jobs. They implement V.A.T. taxes and carbon taxes and every other tax they can dream up. They pass a million new laws so that they can impose a million new fines. They salivate like a dog at the prospect of the new taxes generated by the legalization of marijuana. They use asset seizure to steal more than all the burglars.
Like the highwayman of old, they pull you over and demand to see your cash. If you have any, it MUST be the proceeds of criminal activity. No matter that most of the people they shake down like this have less than $200. There is no tax or fine that embarrass them.
Democrats Have Found A Way To Directly Tax "White Privilege" And They Are About To Implement It In Seattle
The socialists and communists have had plenty of economic crashes to their credit. It looks like the technocrats and bureaucrats must be given credit for the next crash.
What form will it take? The reserve-currency status allowed us to inflate like crazy over the years.
" The Federal Reserve was designed to create an endless spiral of government debt, and since the day it was created the U.S. national debt has gotten more than 5000 times larger and the value of the U.S. dollar has declined by about 98 percent."
Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s
There are endless claims of coming hyperinflation. Keep in mind that we have had long-running inflation. GOV can print but, can it actually inject more fresh money into the economy? It easily injected lots of liquidity into the upper loop. if it did the same to the lower loop, we would all stop working.
The Automatic Earth and many other writers are celling for enormous deflation. Smith writes about the 2 possibilities.
oftwominds-Charles Hugh Smith: Does the World End in Fire or Ice? Thoughts on Japan and the Inflation/Deflation Debate
Armstrong said that hyperinflation is for peripheral economies, not central economies. Everything runs on credit. Paper money is only 4/10s of a percent the entire money supply. What happens to credit when confidence disappears? If nobody advances credit, what happens to spending?
I believe that TAE is correct in calling for a total deflationary collapse. Armstrong said that we would have both inflation and deflation.
It will most likely appear as a rise in prices of necessities and a drop in prices of non-necessities.
They key is China and our trade deficit.
The Chinese are long-term planners,,, as opposed to the West. They let their shadow-banking system run wild knowing that it would blow up. They will fine-tune the meltdown depending on what the West does. They have avoided ALL mention of gold because they don't want the price to rise until they have all of it.
While the West is totally absorbed with protecting it's pedophiles, rackets, and criminals, China is busy building the new Silk Road.
Yep, 20 years of laundering mob money for dirty banks.
It took a long time but, once wind and solar got a foothold, carbon energy is fast declining.
The article talks about completely doing away with the current financial system. If there are backdoors into every system,,,, and even the NSA got hacked, what makes these people think TOR and the blockchain are safe? GOV is expected to eventually grab all the private retirement funds. They certainly aren't going to leave crypto currenices alone.
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