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A Few Extremists

A Few Extremists

Why the fanatical few count more than the peaceful majority

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USA today

USA today

Political correctness is communist propaganda writ small

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I love deflation

I love deflation

I love deflation. I just bought a tablet. It’s 1/3 of the price of my last one. Yet in the name of preventing deflation our economic system’s being destroyed.

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A nation of wimps

A nation of wimps

Overprotective parenting, or governing makes their beneficiaries weak and fragile.

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Boston left lies

Boston left lies

The Boston bombing, Orwell, global warming, inflation, guns and media bias are all connected. It’s time to see the truth and face the future in freedom.

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Money, Finance & Parasitoids

Money, Finance & Parasitoids

To know where we are going and how people and markets are likely to behave it is necessary to know where they have come from

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Incapable of Reforming Itself

Incapable of Reforming Itself

They cannot effectively address the situation without impairing and implicating a broad swath of the power structure, including themselves.

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Exploiting productive people

Exploiting productive people

Feudalism exploits peasants. We now exploit capitalists, skilled workers, risk takers and the thrifty. History rhymes.

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Inside Job

Inside Job

Inside Job provides the framework to view MF Global, LIBOR fixing and mortgage fraud.

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Despotism or Tyranny?

Despotism or Tyranny?

The West is on a highway to hell. Only by restoring integrity can we change direction.

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Free speech

Free speech

We will not have free speech if we do not defeat corporate and ideological vested interests. Without free speech we will lose all our other rights.

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Trust and leadership

Trust and leadership

Global regulations like Basel of necessity create global systemic risks which inevitably manifest themselves in global catastrophes.

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How to Undermine a Nation

How to Undermine a Nation

Our institutions and their product have been captured. They are undermining our way of life and destroying our future.

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Cultural corruption in finance

Cultural corruption in finance

A culture of corruption pervades finance and is entrenching crony capitalism in the USA. Markets are increasingly rigged. This needs to change – now.

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Variable intelligence

Variable intelligence

Politically correct policies are making us stupid. Empowering philosophies do the opposite. Do you want to be stupid?

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Central banks killing capitalism

Central banks killing capitalism

Central bank induced sticky prices are dragging out and deepening the downturn. They risk turning a great recession into the Greatest Depression.

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Default or experience austerity then default

Default or experience austerity then default

Greek total debt/GDP was less than the G7 median. Governments must explain the bezzle to maintain legitimacy and survive the tough times ahead.

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Carbon capture

Carbon capture

Poland vetoes EU plans to reduce greenhouse gas emissions. Proof Australia has failed to communicated its position.

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Persecution Of Conservatives In Norway

Persecution Of Conservatives In Norway

Legal intimidation and persecution are being used to stop people questioning left wing policies

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Criminalizing critical thinking

Criminalizing critical thinking

The Left is desperate to control news sources so it can hide and shift the blame for the increasingly obvious detrimental effects of their policies.

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Solar flares

Solar flares

Solar flares and other factors from beyond the earth affect our weather, volcanoes and earthquakes.

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Moves to control the internet

Moves to control the internet

Attacks on the internet & free speech are attacks on your right to know and influence. Defend your cultural rights.

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Investing in disruptive technology and culture

Investing in disruptive technology and culture

Disruptive technologies rely on enabling technologies. Disruptive cultural developments do so as well.

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Internet Censorship

Internet Censorship

Stop the UN and vested interests from removing your rights. Our cultural capital is at stake

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History Rhymes

History Rhymes

Bastiat explained what is happening in our world today.

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Killing cultural capital

Killing cultural capital

Trust and cultural capital are being destroyed by rampant corruption and fraud.

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Good-Bye to All That

Good-Bye to All That

Private embezzlement and the welfare state are forms of larceny with a time parameter.

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EU and Spain

EU and Spain

It is time for the EU to take its place in history …. books.

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Global anti carbon tax coalition

Global anti carbon tax coalition

Global coalition threatens trade war to stop EU carbon tax.

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Rule of law no more

Rule of law no more

Our way of life enriches us, save it.

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Who bears the cost of money printing?

Who bears the cost of money printing?

The Bernanke put will go the way of Goebbels great lie.

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Greek bailout

Greek bailout

Iceland thrives while Greece declines. Is bailing out householders or bondholders better?

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Massive Market Manipulation

Massive Market Manipulation

Massive fraud and market manipulation across the globe bodes ill for our future.

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Global fiscal corruption?

Global fiscal corruption?

Did Government launder USD 15 trillion? Is this evidence of a rogue US agency or a threat?

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Drug legalisation

Drug legalisation

School kids being entrapped and Obama U turn on medical marijuana.

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Parenting police

Parenting police

The State regulating parenting. It worked so well with banks.

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Citigroup still hiding fraud

Citigroup still hiding fraud

Banks still engaging in mortgage fraud.

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ACTA , Australia and too many laws

ACTA , Australia and too many laws

There are too many laws, regulations and treaties. They now threaten rather than protect us.

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International treaties and ACTA

International treaties and ACTA

Overriding democracy with treaties such as ACTA undermines the legitimacy of our system.

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Mortgage settlement gangster capitalism

Mortgage settlement gangster capitalism

The mortgage settlement is abhorrent.

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A more mercantile world

A more mercantile world

There are multiple grounds for believing the “new normal” will be a more mercantile world.

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Chinese poet on trial after using Skype

Chinese poet on trial after using Skype

Free speech can be undermined by quiet carriages on trains as well as arresting Skyping poets.

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FDA transparency

FDA transparency

FDA demonstrates the tendency for government bodies to morph and change into something reprehensible.

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Negative shipping rates

Negative shipping rates

Shipping rates at 25 year lows suggest falling commodity prices and a global economic downturn. Not a good time for investors to be forced into riskier assets to generate income.

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Anti-Counterfeiting Trade Agreement replacing SOPA and PIPA

Anti-Counterfeiting Trade Agreement replacing SOPA and PIPA

The old media are using the UN to effectively impose SOPA and PIPA. It’s not too late to stop them.

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New Ice Age

New Ice Age

There’s a 92% chance solar changes will make the world colder, possibly inducing a new little ice age.

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Understanding reality

Understanding reality

Our food, fuel and power bills shoot up while our incomes stagnate

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Krishnamurti and Freedom

Krishnamurti and Freedom

In 1929 Krishnamurti set an example to government and dissolved his organization.

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Barbarian Financiers

Barbarian Financiers

Barbarians through the gates, prices falling, economies falling, civilisations falling.

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Global Contextual Framework

Global Contextual Framework

A framework for understanding much of what is happening in the world today

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Superannuation, Pensions

Superannuation, Pensions

Lobbyists and financiers gain from super increases, the rest of us lose.

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Crony Capitalism

Crony Capitalism

Bailouts, covered bonds and government RMBS purchases.

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Raise interest rates

Raise interest rates

In 2010 advanced countries Debt/GDP averaged 314% (Greece 262%).

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Unexpected consequences

Unexpected consequences

What the Tea Party and OWS reveal is that the tectonic plates of US political life are ripe for realignment

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Greece and Sovereign Defaults

Greece and Sovereign Defaults

Chart porn on Greece and Sovereign Defaults

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Our future?

Our future?

There are no good options, only least bad ones – situation normal!

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Volcanoes next

Volcanoes next

Correlations between solar activity, volcanic eruptions and earthquakes are worrying.

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Technological transformation

Technological transformation

3D printing could enable Western government’s to meet their promises to their citizens.

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Market mayhem coming up

Market mayhem coming up

The risk of the whole ponzi scheme crashing sooner rather than later is going way up, rapidly.

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We have seen the Future

We have seen the Future

Our financial markets changed from being a component of a system that enriches the masses to the benefit of the many to one which impoverishes them to the benefit of the few.

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Global coldening

Global coldening

Falling sea levels, snow and ice in subtropical areas. Not predicted, and indicative of global coldening rather than warming.

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J’accuse

J’accuse

The Left always accuses you of their worst sins – inciting violence, racism, fascism, injustice.

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Government workers overpaid?

Government workers overpaid?

Government workers earning more than private ones can not be justified by differences in qualifications.

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Blind Justice

Blind Justice

Judges are undermining equality before the law. They should do their job, not ease their conscience.

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State of denial

State of denial

There is too much debt. Developed countries can not meet their past and future commitments.

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A Dalton Minimum

A Dalton Minimum

What happens if the world gets colder? Sunspots and the Dalton Minimum suggests it will.

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Climate of corruption

Climate of corruption

The climate of corruption is destroying Western Civilisation.

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Jury nullification

Jury nullification

It is the role of juries not activist judges to judge the law itself and vote according to conscience.

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Vested interests co-opt Australia

Vested interests co-opt Australia

Australian financial vested interests ensure they can gorge on taxpayer bailouts.

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Fraud will impoverish us all

Fraud will impoverish us all

Fraud was integral to to MBS. Trillions were spent on bailouts. Honesty and trust are being lost. Without them we will be poor.

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Technology for Tyranny and Liberty

Technology for Tyranny and Liberty

We are witnessing an equalizing of technological power between the state, vested interests and the people.

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Wikileaks bank fraud

Wikileaks bank fraud

Assault on Wikileaks protects fraudulent financiers, undermines society and threatens a global police state.

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US not printing money

US not printing money

Fed is not money printing. It is printing money. What is money anyway?

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No losses by government decree

No losses by government decree

Central bankers know we are in a hole, but keep digging madly anyway. It’s easier than confronting the truth and starting to climb.

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Perverted perspectives

Perverted perspectives

The Left has corrupted the prism through which the right views the world

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Why the Left lie

Why the Left lie

By lying about the past the Left distort policy in the present and cause misery tomorrow.

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Sovereign default

Sovereign default

Countries are desperate for other countries to not default. But they will default. The consequences will be dire.

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UN strike against Freedom

UN strike against Freedom

The UN is stufed with the lackeys of despots and tyrants.

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Ireland bailout

Ireland bailout

Where’s the money coming from? Why will it come, where will it go?

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Obama’s TSA war crimes

Obama’s TSA war crimes

Obama’s rapidly becoming responsible for more sexual assaults than anyone else in history.

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Lefty subjectivity

Lefty subjectivity

The lefty post-modernist, post truth, post Christian, post American world explained.

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TSA 2

TSA 2

The TSA are aiding and abetting the enemy.

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Islamists and the Left

Islamists and the Left

It is the left that undermines the West, which makes the Islamists a true threat.

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TSA scanners

TSA scanners

You will have neither safety nor liberty unless you demand your freedom back.

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Robosigner Validation Act

Robosigner Validation Act

Claimed attempt to override the Presidential veto of the robosigner validation act, HR 3808

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Real estate woes

Real estate woes

Chinese bought 20% of Sydney houses over $1m. If they sell or stop buying, prices will plummet.

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Truth and the Justice System

Truth and the Justice System

The judicial system is arcane and overly sensitive to the calibre of the barrister and prosecution.

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Inflation and stock prices

Inflation and stock prices

How does inflation influences stock market prices? What is going to happen to the economy?

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Destroying Cultural Capital

Destroying Cultural Capital

Cultural intangibles such as the rule of law, property rights, trust and market prices are being destroyed.

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The Left are Scum

The Left are Scum

It is our altruistic motives that turn the world into a charnel house.

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Law Enforcers, Not Peace Keepers

Law Enforcers, Not Peace Keepers

Referring to the UK police as the paramilitary wing of the Guardian might be amusing, but it encapsulates an underlying truth.

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History repeats

History repeats

The Great Depression kindled political and social revolutions, Communism and Fascism. It plunged the world into World War 2

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Stock markets, they win we lose

Stock markets, they win we lose

70% of stock market trades are held for an average of 11 seconds.

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Lessons from Zimbabwe

Lessons from Zimbabwe

Socialism links Mugabe and Gillard’s attitude to mining and farming.

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Evidence for premonitions

Evidence for premonitions

Experiments suggests people have psychic abilities.

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Cry

Cry

Being happy is no longer an acceptable goal. Now you have to be constantly concerned about your health

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Charity

Charity

Not trying to get the government to help is proof positive that you don’t care about the issue.

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Reasons why life will get better

Reasons why life will get better

Productivity is increasing and so will quality of life.

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Why Keynesians and Krugman are Wrong

Why Keynesians and Krugman are Wrong

If total spending necessarily equals total income the USA could not be in cumulative debt equivalent to 375 percent of GDP.

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Misery

Misery

Public health campaigns are instilling the fear of death into our children.

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Tomorrow

Tomorrow

The more immediate and worse an activists vision, the better their chance funding.

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Victims

Victims

No longer can we expect the product of ten years education to be able to read, write and count.

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Sex and Taxes

Sex and Taxes

Everyone has as much right to know how to fornicate as read. Poor readers get access to subsidized lessons and so should poor fornicators.

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Al Qaeda agrees with Bush

Al Qaeda agrees with Bush

Al Qaeda agrees with Bush’s “They hate our freedoms” propose “Jihad against the West” as only realistic solution.

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Reform the Judicial System

Reform the Judicial System

The judicial system is failing. As it’s the bedrock upon which our society is based, this failure is highly damaging.

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Economics 101

Economics 101

Government has no incentive to take into account costs it causes others for which it does not have to pay.

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Public Health

Public Health

Public health activists have crossed the boundary between public and private health. Between helping and hurting people.

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The community comes before the individual

The community comes before the individual

The left wear their hearts on their sleeves because they are up to their necks in the blood of the innocent.

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Externalities

Externalities

Peoples looks produce externalities and government ought to make people take this into account.

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Originals

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Newest Post

A Few Extremists

A Few Extremists

Why the fanatical few count more than the peaceful majority

USA today

Political correctness is communist propaganda writ small

I love deflation

I love deflation. I just bought a tablet. It's 1/3 of the price of my last one. Yet in the name of preventing deflation our economic system's being destroyed.

A nation of wimps

Overprotective parenting, or governing makes their beneficiaries weak and fragile.

Boston left lies

The Boston bombing, Orwell, global warming, inflation, guns and media bias are all connected. It's time to see the truth and face the future in freedom.

Money, Finance & Parasitoids

To know where we are going and how people and markets are likely to behave it is necessary to know where they have come from

Incapable of Reforming Itself

They cannot effectively address the situation without impairing and implicating a broad swath of the power structure, including themselves.

Exploiting productive people

Feudalism exploits peasants. We now exploit capitalists, skilled workers, risk takers and the thrifty. History rhymes.

Inside Job

Inside Job provides the framework to view MF Global, LIBOR fixing and mortgage fraud.

Despotism or Tyranny?

The West is on a highway to hell. Only by restoring integrity can we change direction.

Free speech

We will not have free speech if we do not defeat corporate and ideological vested interests. Without free speech we will lose all our other rights.

Trust and leadership

Global regulations like Basel of necessity create global systemic risks which inevitably manifest themselves in global catastrophes.

How to Undermine a Nation

Our institutions and their product have been captured. They are undermining our way of life and destroying our future.

Cultural corruption in finance

A culture of corruption pervades finance and is entrenching crony capitalism in the USA. Markets are increasingly rigged. This needs to change - now.

Variable intelligence

Politically correct policies are making us stupid. Empowering philosophies do the opposite. Do you want to be stupid?

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Snippits

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Newest Post

Splendid links 3

Splendid links 3

Excellent links on NSA surveillance, wiretaps, banks, market manipulation, culture and corruption.

Year of Revolutions

History will repeat. A global 1848 year of revolutions. But with revolution and repression aided by technology.

Life Enhancing Values

Capitalism works because it accepts people as they are “warts and all” and creates a system in which people improve their wellbeing through improving that of others, rather than at their expense

Financial Cycles

The BIS acknowledges the merits of classical economics - financial cycles, disequilibrium etc.

Marc Faber explains our economic situation

Marc Faber providing a free, must-watch (and listen) 50 minute lecture on the world and economics

Ghosts of econs past, present and future

Ghosts of economists past, present and yet to come (again) sing along in the spirit of Christmas

Economic roller coaster to hell

It's not a road to hell, but a roller coaster

Economic Depression

The Fed has destroyed the money market. It has destroyed the capital markets... You can't have capitalism if the capital markets are dead

Splendid Links 2

Interesting links, mainly on market manipulation - finance, gold, silver and the media.

China – More signs of a slowdown

Multiple signs of economic problems in China.

LIBOR manipulation

LIBOR may have been manipulated. The ramifications are extensive.

MF Global undermining US financial system

MF Global threatens the credibility of the US Financial system

Splendid links

A selection of excellent links

How To Get Anything Through TSA Scanners

Video showing how easy it is to get anything through the body scanners.

TSA: Pump your breasts first

TSA force nursing mum to pump breasts in toilet.

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Simpsons on the fiscal cliff

Simpsons on the fiscal cliff

Mr Burns tries to explain the fiscal cliff

Financial crisis

Euro and USA situation explained

Ghosts of econs past, present and future

Ghosts of economists past, present and yet to come (again) sing along in the spirit of Christmas

Politicians view of the stock market

Politicians view of the stock market

Ireland forced to take EU bailout

Animated cartoon of the Ireland bailout

14 Ways an Economist Says I Love You

14 ways economists say "I love you".

Selected stupidities

A selection of daft news reports

Military exercise or Top Gun movie footage?

China may have broadcast scenes from the movie Top Gun as footage from a military exercises

Zombies

The left will happily worship Mohammed as their strong man font of all wisdom a la Stalin, Mao, Kim Jung-il.

Bank of America maths

Bankers waste more money, but who cares? They will just get another bailout.

Wikileaks keeps on publishing

Wikileaks keeps on publishing despite arrest animated cartoon on youtube.

Bright bomber

Fleeing arsonist runs into lamppost

Global warming activist snowed in

Global warming activist snowed in on way to Cancun to say how hot it is

A way with words

Someone has a way with words, but the media won't let you know.

NYC subway flasher

NYC subway flasher caught.

Splendid links 3

NSA surveillance, wiretapping and its impact on culture and country

“The tyranny of a prince in an oligarchy is not so dangerous to the public welfare as the apathy of the citizens in a democracy” Montesquieu

  • Change
      • Remember way back when Janet Napolitano and DHS listed conservatives, pro-lifers, ex vets, Christians as potential terrorists. Did that enable NSA to target and scrutinize the phone and computer data of people associated with those groups? Is a great question, inspired by a great post:

Obama represents the counterculture of the 1960s. The part that hated the culture and the institutions of the country. They are the ones who spit on Viet Nam vets as they came home, and chanted “Ho, Ho, Ho Chi Min, the Viet Cong are going to win” as they rioted for a communist victory in Viet Nam.

They didn’t like America. And they went on a long march through the institutions they own today: academia, the media, the press, the “permanent” government.

Pushing back, the rest of the country became more reflexively more pro-country. But that is changing thanks to the Obama administration. Now that the hard core cadres of the Left have captured the Presidency, the patriotism of the Country Class may be turning…. love is reciprocated with hate, there is a reaction…..

My admiration for law enforcement, for the military, for teachers, for trust in the basic justice of the government is disappearing. I may soon end up as part of the NEW American counterculture. After all, if the country under Obama represent the dominant culture, then those of us who were once patriots will now become what they once were.

On Reality, America and the world today

“When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.” Frederic Bastiat

 
A Few Extremists

The Milligan psychological experiment is the one in which ordinary people were willing to torture to death someone on instructions form an authoritative scientific figure. But recent commentary claims many participants knew it was faked. Accounting for this reduces the proportion of people willing to torture someone to death to about a third.  While this is a reduction, there still appears to be a significant minority willing to kill people for the greater good.

The results overshadowed the ethical standards. It appeared that sixty-five percent of people would torture someone to death, if pressured to do so. The results made their way into both psychology and cocktail party conversation. But were they correct? At least one woman doesn’t think so. Gina Perry, for her book, Behind the Shock Machine, traced as many participants in the Milgram experiment as she could, and re-examined the notes of the experiment. Milgram claimed that seventy-five percent of the participants believed in the reality of the experiment, but Perry puts the number at about half. The change makes a big difference in the results. The people who didn’t buy that they were actually shocking people were far more willing to increase the intensity of the shocks. They wanted to know how far the experimenters would go in the ruse, while the experimenters were wondering the same thing about them. Those that believed that they were shocking people were much more likely to keep the shocks down low. While Perry still thinks about a third of the people would crank up the shocks even if they believed, that’s a big drop in overall percentage.

That the majority of participants in the experiment were not willing to murder for the greater good is not as protective of society as it might appear. The reason why is clear in this op ed by Paul E. Marek:

I used to know a man whose family were German aristocracy prior to World War II. They owned a number of large industries and estates. I asked him how many German people were true Nazis, and the answer he gave has stuck with me and guided my attitude toward fanaticism ever since.“Very few people were true Nazis,” he said, “but many enjoyed the return of German pride, and many more were too busy to care. I was one of those who just thought the Nazis were a bunch of fools. So, the majority just sat back and let it all happen. Then, before we knew it, they owned us, and we had lost control, and the end of the world had come. My family lost everything. I ended up in a concentration camp and the Allies destroyed my factories.”

We are told again and again by experts and talking heads that Islam is the religion of peace, and that the vast majority of Muslims just want to live in peace. Although this unquantified assertion may be true, it is entirely irrelevant. It is meaningless fluff, meant to make us feel better, and meant to somehow diminish the specter of fanatics rampaging across the globe in the name of Islam.

The fact is that the fanatics rule Islam at this moment in history. It is the fanatics who march. It is the fanatics who wage any one of 50 shooting wars world wide. It is the fanatics who systematically slaughter Christian or tribal groups throughout Africa and are gradually taking over the entire continent in an Islamic wave. It is the fanatics who bomb, behea

The fanatics rule Islam at this moment in history.

d, murder, or execute honor killings. It is the fanatics who take over mosque after mosque. It is the fanatics who zealously spread the stoning and hanging of rape victims and homosexuals. The hard, quantifiable fact is that the “peaceful majority” is the “silent majority,” and it is cowed and extraneous.

Communist Russia was comprised of Russians who just wanted to live in peace, yet the Russian Communists were responsible for the murder of about 20 million people. The peaceful majority were irrelevant. China’s huge population was peaceful as well, but Chinese Communists managed to kill a staggering 70 million people. The average Japanese individual prior to World War II was not a war-mongering sadist. Yet, Japan murdered and slaughtered its way across Southeast Asia in an orgy of killing that included the systematic murder of 12 million Chinese civilians – most killed by sword, shovel and bayonet. And who can forget Rwanda, which collapsed into butchery? Could it not be said that the majority of Rwandans were “peace loving”?

History lessons are often incredibly simple and blunt; yet, for all our powers of reason, we often miss the most basic and uncomplicated of points. Peace-loving Muslims have been made irrelevant by the fanatics. Peace-loving Muslims have been made irrelevant by their silence. Peace-loving Muslims will become our enemy if they don’t speak up, because, like my friend from Germany, they will awaken one day and find that the fanatics own them, and the end of their world will have begun.

Peace-loving Germans, Japanese, Chinese, Russians, Rwandans, Bosnians, Afghanis, Iraqis, Palestinians, Somalis, Nigerians, Algerians and many others, have died because the peaceful majority did not speak up until it was too late. As for us, watching it all unfold, we must pay attention to the only group that counts: the fanatics who threaten our way of life.

Erik Hoffer’s The True Believer: Thoughts On The Nature Of Mass Movements outlines the reasons why people to join extremist groups. In tough economic times, the number may increase. Tough economic times, such as those which are or will be experienced in much of the West, will undermine the legitimacy of existing institutions. The erosion of our cultural capital makes society less resistant to toxic ideologies and their resulting behaviors.

Corporate and other psychos form a component of any society. In the West in normal times their influence is constrained or even made to benefit society. If the path for power hungry maniacs to get power and wealth is through giving people what they want for less than they are willing to pay for it, we all benefit. But when they get wealthy through manipulating government regulations to stop competition, and expropriating the wealth of others through executive fiat then we all suffer. Much of the green energy “revolution” has simply been extortion and a transfer of wealth from the poor to the wealthy. Ditto with the post 2007 bailouts around the world. These measures make us poorer

Measures  which make us poorer reduce our standard of living. The reduction can be delayed through increasing debt. But given the debt is created to fund consumption or inappropriate investment, a drop in living standards is inevitable. It is simply a question of when and who experiences it, not whether there will be any such reduction.

Graphic courtesy of Orphans of Liberty

 
Year of Revolutions

The progressives have done an excellent job of overthrowing traditional conservative values. Of course, there have been some unexpected consequences:

The fact that it is no longer socially unacceptable to be a lying, cheating conman, as long as you are successful at it. Greed is good, and so the achievement of wealth by any means available, as long as you beat the system and don’t get indicted, is the epitome of human achievement and worth.

Truly our modern way of life is not sustainable. Not because of environmental degradation, but cultural ones. They have created a system that can not perpetuate itself through time. Something that can not continue forever will not. But betting on when reason will reassert itself is betting on a Black or Grey Swan event. It will be a source of regular consistent losses, until the extreme event comes in. Hence comments such as this from Jesse:

I have lost quite a bit of money underestimating the willingness of frightened men in positions of power to engage in financial shenanigans, outright fraud, and seemingly irrational support for the rationally unsustainable. And I hope never to forget that lesson. Fiat is a powerful drug.

But there will be no sustained recovery until the financial system is reformed, and so we will continue on in a state of fragility, as so eloquently expounded upon by Taleb.

C.A. Fits explains just how bad things are in this video.

There are many trying to maintain the lie, seeking to obscure rather than reveal reality. They may be misguided, or acting from baser motives:

“A credibility trap is a condition wherein the financial, political and informational functions of a society have been compromised by corruption and fraud, so that the leadership cannot effectively reform, or even honestly address, the problems of that system without impairing and implicating, at least incidentally, a broad swath of the power structure, including themselves.

The status quo tolerates the corruption and the fraud because they have profited at least indirectly from it, and would like to continue to do so. Even the impulse to reform within the power structure is susceptible to various forms of soft blackmail and coercion by the system that maintains and rewards.

And so a failed policy and its support system become self-sustaining, long after it is seen by objective observers to have failed. In its failure it is counterproductive, and an impediment to recovery in the real economy. Admitting failure is not an option for the thought leaders who receive their power from that system.

The continuity of the structural hierarchy must therefore be maintained at all costs, even to the point of becoming a painfully obvious hypocrisy…..

As Jesse goes on to point out. The problem is not restricted to the Anglo-sphere:

Their success has been propelled by the dominance of Anglo-American financialization, and the rise of oligarchies in Russia, China, Latin America, and India. Countervailing power has been co-opted and subsumed. Any opposition has become marginalized and isolated.

When reality reasserts itself it will do so globally. The correction will leave many people bewildered. Their old certainties crumbling along with the values of their fiat money.

The resulting reversion to the norm can have the impact of a thunderclap. So government becomes complicit in the control fraud which it abets, perhaps for certain policy ends, so that finally only those without conscience can abide it. And that is the genesis of the credibility trap, and the ascent of the careerists, and white collar sociopaths.

“All the truth of my position came flashing on me; and its disappointments, dangers, disgraces, consequences of all kinds, rushed in in such a multitude that I was borne down by them and had to struggle for every breath I drew.” Charles Dickens

History will repeat. It will be another 1848 year of revolutions, but at a global level. Revolution and repression will be aided and abetted by technology. We can but hope it will be the best of times along with being the worst:

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way” Charles Dickens

Graphic courtesy of Jesse