First, a word from Dr. Bernankenstein the high priest of the Dow Jones Industrial Average. Tomorrow he will render his decision as to how much and for how long additional monetary dopium will be printed out of thin air to further lubricate Wall Street - already the wealthiest country club on the planet. Markets worldwide wait with baited breath...
With respect to the Dow, clearly this will be a good test of market "resiliency" i.e. to artificially levitate something to a very high level with no underlying support and then drop it to see what happens. In the meantime, given that the Idiocracy is totally hypnotized by the Dow and oblivious to every other economic fact or warning sign, I decided to elucidate the morally and intellectually bankrupt "plan" by which the Idiocracy has decided to bring about its own self-destruction:
Money Printing: A Jedi Mind Trick for the Masses
I constantly hear all of the hyperinflationists complaining that there is no inflation in the economy. "I bought all of these fucking gold bars so where is the damn inflation !". They of course feared that monetization of debt would axiomatically bring about inflation, because at any other era in U.S. history (except the 1930s), it most certainly would have. However, instead of digging deeper into the root cause of this disconnect, they buy more gold bars and otherwise invent new inflation indicators. There's only one reason why Fed policy isn't causing inflation and it's because the real economy is dissolving with each passing day. Every day relentlessly, throughout this zombified economy there is less consumption and less investment. This should come as absolutely no surprise, that in an economy having accumulated debt for 30+ years, that the marginal propensity to borrow is going down, and that the excess money supply now stays in the banks and out of the real economy. Artificially injecting money into financial markets so that it trickles into the real economy via mega-yachts and mansions, is at best a proxy for a real economy. It's really just a Jedi Mind Trick to fool the masses, while the real economy dwindles with each passing day. Therefore what all of the get-rich-quick inflationists should really be focused on is what if anything will be left of the real economy by the time this bubble era comes to a crashing end. At that point it will be very apparent to everyone that there isn't too much money, there is no money. In the meantime, the Idiocracy will just continue to believe as it does now, that Bernankenstein is the Wizard of Oz and that in printing money out of thin air, we've really hit the jackpot i.e. the secret to effortless wealth...
What Deflation Looks Like In One Graph - the Velocity (circulation) of Money:
"We Are All Keynesians Now"
Another key assumption at this very juncture, held by the majority of economists, is that continued borrowing to stimulate the economy with "fiscal stimulus", will eventually fix the economy. Are Krugman & Co. really that oblivious to the fact that fiscal deficits have been accumulating throughout the developed world for the past 30 years and that average total debt has increased roughly 7 fold during that same time period? In other words, the playbook from the 1930s may not necessarily work in attempting to resuscitate a thirty year mass consumption borrowing spree. I'm just guessing. Back then, fiscal stimulus was used for a short period of time only after the majority of debt had been discharged in bankruptcy. So these Keynesian economists are self-deluded buffoons to believe that yet more borrowing will be anything but a total disaster, when debt levels are already at historically unprecedented levels. When George W. Bush launched two totally unaffordable wars and a tax cut for the ultra-wealthy and then declared "We are all Keynesians Now", then at that point all of the Keynesian economists should have had the honesty to say, "yeah, we're fucked"...
What Deflation Looks Like In One Graph - the Velocity (circulation) of Money:
"We Are All Keynesians Now"
Another key assumption at this very juncture, held by the majority of economists, is that continued borrowing to stimulate the economy with "fiscal stimulus", will eventually fix the economy. Are Krugman & Co. really that oblivious to the fact that fiscal deficits have been accumulating throughout the developed world for the past 30 years and that average total debt has increased roughly 7 fold during that same time period? In other words, the playbook from the 1930s may not necessarily work in attempting to resuscitate a thirty year mass consumption borrowing spree. I'm just guessing. Back then, fiscal stimulus was used for a short period of time only after the majority of debt had been discharged in bankruptcy. So these Keynesian economists are self-deluded buffoons to believe that yet more borrowing will be anything but a total disaster, when debt levels are already at historically unprecedented levels. When George W. Bush launched two totally unaffordable wars and a tax cut for the ultra-wealthy and then declared "We are all Keynesians Now", then at that point all of the Keynesian economists should have had the honesty to say, "yeah, we're fucked"...
Money That Can't Be Paid Back Is Commonly Referred To as "Stolen"
What happens when the overwhelming majority of corporate stooges are salesmen? Answer: Everything gets sold. Add in the fact that uncontrolled greed turned the world economy into an economic pyramid scheme, and taken together, then it's no surprise that everything that wasn't nailed down got sold - including the assets. One generation spent all of its own money, then took a look around and decided to borrow the kids and grandkids into fucking oblivion. And let's not fool ourselves and call it "debt". A debt is something that will get paid back. All this spending ever was is liquidation of unsecuritized assets - industries and jobs. None of it can ever be paid back. Future generations are fucked because the seed corn of the economy was sold along with everything else. And I have to laugh when the dumbfucks of the day complain about their "taxes". The U.S. government (and many others) borrows 20% of its annual budget which amounts to 100% of the annual defense budget. And well over 100% of the entire budget deficit is monetized with newly printed money! What a joke.
Bernankenstein's Rich and Fabulous
Another inherent assumption we live under is that we somehow need more billionaires. The number of billionaires has increased by 300 or 27% since 2009, so clearly they are the sole beneficiaries of Fed policy. I think at some point it behooves this dumbfucked society to ask itself whether or not 1500 people who already have twice as much money as the bottom 90% of humanity, still need more, even as the number of people on food stamps expands commensurately. But again, it's implicitly accepted, especially when you go on Yahoo and are constantly bombarded with stories about the rich and fabulous for the delight and amusement of the Idiocracy.
Disaster Capitalism
Meanwhile, the apologists for the status quo will have to explain how and why the current system turned into a zero sum game between billionaires and factory slaves when capitalism was supposed to be the great solution to global poverty. After several decades of these lies, the gap between haves and have nots has never been greater. The people at the bottom of this pyramid scam i.e. the wage slaves, now have absolutely zero upward mobility. Everything is being consumed while real investment has screeched to a halt. Innovation in this era pales in comparison to what it was 40 years ago, as everything including asset capital gets consumed. Apologists and billionaires have confused true investment in R&D, plant, assets and personnel, with the accumulation of existing paper assets in secondary markets to be socked away in offshore bank accounts and then tapped at will to buy yachts and mansions. And do we really believe that us and our children deserve to live in a world of mass consumption excess while other people across the planet work twice as hard to subsidize our way of life - via recurring trade deficits - while their children suffer in abject poverty? Who can defend such a fucked up situation. Is our right to over-consume on a massive scale more important than their right to survive, when in fact we borrow from them to propagate our phony way of life? Again, none of the borrowed money will ever be paid back, so it was in effect stolen. The implicit assumption has always been that as long as someone else's children are doing the dying then the status quo is just fine thanks.
Anyone who implicitly believes these above morally and intellectually bankrupt assumptions, deserves their inevitable fate when it all crashes down completely by "surprise". And don't get me started on these sanctimonious religious hypocrites. During the most pervasive age of greed and iniquity in the modern era, the religious types sat back and watched it all happen without protest. A complete and utter moral collapse eliminating all doubt that religion is just one more profit-making business venture...
What happens when the overwhelming majority of corporate stooges are salesmen? Answer: Everything gets sold. Add in the fact that uncontrolled greed turned the world economy into an economic pyramid scheme, and taken together, then it's no surprise that everything that wasn't nailed down got sold - including the assets. One generation spent all of its own money, then took a look around and decided to borrow the kids and grandkids into fucking oblivion. And let's not fool ourselves and call it "debt". A debt is something that will get paid back. All this spending ever was is liquidation of unsecuritized assets - industries and jobs. None of it can ever be paid back. Future generations are fucked because the seed corn of the economy was sold along with everything else. And I have to laugh when the dumbfucks of the day complain about their "taxes". The U.S. government (and many others) borrows 20% of its annual budget which amounts to 100% of the annual defense budget. And well over 100% of the entire budget deficit is monetized with newly printed money! What a joke.
Bernankenstein's Rich and Fabulous
Another inherent assumption we live under is that we somehow need more billionaires. The number of billionaires has increased by 300 or 27% since 2009, so clearly they are the sole beneficiaries of Fed policy. I think at some point it behooves this dumbfucked society to ask itself whether or not 1500 people who already have twice as much money as the bottom 90% of humanity, still need more, even as the number of people on food stamps expands commensurately. But again, it's implicitly accepted, especially when you go on Yahoo and are constantly bombarded with stories about the rich and fabulous for the delight and amusement of the Idiocracy.
Disaster Capitalism
Meanwhile, the apologists for the status quo will have to explain how and why the current system turned into a zero sum game between billionaires and factory slaves when capitalism was supposed to be the great solution to global poverty. After several decades of these lies, the gap between haves and have nots has never been greater. The people at the bottom of this pyramid scam i.e. the wage slaves, now have absolutely zero upward mobility. Everything is being consumed while real investment has screeched to a halt. Innovation in this era pales in comparison to what it was 40 years ago, as everything including asset capital gets consumed. Apologists and billionaires have confused true investment in R&D, plant, assets and personnel, with the accumulation of existing paper assets in secondary markets to be socked away in offshore bank accounts and then tapped at will to buy yachts and mansions. And do we really believe that us and our children deserve to live in a world of mass consumption excess while other people across the planet work twice as hard to subsidize our way of life - via recurring trade deficits - while their children suffer in abject poverty? Who can defend such a fucked up situation. Is our right to over-consume on a massive scale more important than their right to survive, when in fact we borrow from them to propagate our phony way of life? Again, none of the borrowed money will ever be paid back, so it was in effect stolen. The implicit assumption has always been that as long as someone else's children are doing the dying then the status quo is just fine thanks.
Anyone who implicitly believes these above morally and intellectually bankrupt assumptions, deserves their inevitable fate when it all crashes down completely by "surprise". And don't get me started on these sanctimonious religious hypocrites. During the most pervasive age of greed and iniquity in the modern era, the religious types sat back and watched it all happen without protest. A complete and utter moral collapse eliminating all doubt that religion is just one more profit-making business venture...
