CULTURE OF IGNORANCE – PART ONE

“Five percent of the people think;
ten percent of the people think they think;
and the other eighty-five percent would rather die than think.”

– Thomas Edison

The kabuki theater that passes for governance in Washington D.C. reveals the profound level of ignorance shrouding this Empire of Debt in its prolonged death throes. Ignorance of facts; ignorance of math; ignorance of history; ignorance of reality; and ignorance of how ignorant we’ve become as a nation, have set us up for an epic fall. It’s almost as if we relish wallowing in our ignorance like a fat lazy sow in a mud hole. The lords of the manor are able to retain their power, control and huge ill-gotten riches because the government educated serfs are too ignorant to recognize the self-evident contradictions in the propaganda they are inundated with by state controlled media on a daily basis.

 

“Any formal attack on ignorance is bound to fail because the masses are always ready to defend their most precious possession – their ignorance.” Hendrik Willem van Loon

The levels of ignorance are multi-dimensional and diverse, crossing all educational, income, and professional ranks. The stench of ignorance has settled like Chinese toxic smog over our country, as various constituents have chosen comforting ignorance over disconcerting knowledge. The highly educated members, who constitute the ruling class in this country, purposefully ignore facts and truth because the retention and enhancement of their wealth and power are dependent upon them not understanding what they clearly have the knowledge to understand. The underclass wallow in their ignorance as their life choices, absence of concern for marriage or parenting, lack of interest in educating themselves, and hiding behind the cross of victimhood and blaming others for their own failings. Everyone is born ignorant and the path to awareness and knowledge is found in reading books. Rich and poor alike are free to read and educate themselves. The government, union teachers, and a village are not necessary to attain knowledge. It requires hard work and clinging to your willful ignorance to remain stupid.

The youth of the country consume themselves in techno-narcissistic triviality, barely looking up from their iGadgets long enough to make eye contact with other human beings. The toxic combination of government delivered public education, dumbed down socially engineered curriculum, taught by uninspired intellectually average union controlled teachers, to distracted, unmotivated, latchkey kids, has produced a generation of young people ignorant about history, basic mathematical concepts, and the ability or interest to read and write. They have been taught to feel rather than think critically. They have been programmed to believe rather than question and explore. Slogans and memes have replaced knowledge and understanding. They have been lured into inescapable student loan debt serfdom by the very same government that is handing them a $200 trillion entitlement bill and an economy built upon low paying service jobs that don’t require a college education, because the most highly educated members of society realized that outsourcing the higher paying production jobs to slave labor factories in Asia was great for the bottom line, their stock options and bonus pools.

Instead of being outraged and lashing out against this injustice, the medicated, daycare reared youth passively lose themselves in the inconsequentiality and shallowness of social media, reality TV, and the internet, while living in their parents’ basement. They have chosen the ignorance inflicted upon their brains by thousands of hours spent twittering, texting, facebooking, seeking out adorable cat videos on the internet, viewing racist rap singer imbeciles rent out sports stadiums to propose to vacuous big breasted sluts on reality cable TV shows, and sitting zombie-like for days with a controller in hand blowing up cities, killing whores, and murdering policemen using their new PS4 on their 65 inch HDTV, rather than gaining a true understanding of the world by reading Steinbeck, Huxley, and Orwell. Technology has reduced our ability to think and increased our ignorance.

“During my eighty-seven years, I have witnessed a whole succession of technological revolutions. But none of them has done away with the need for character in the individual or the ability to think.” – Bernard M. Baruch

The youth have one thing going for them. They are still young and can awaken from their self-imposed stupor of ignorance. There are over 80 million millenials between the ages of 8 and 30 years old who need to start questioning the paradigm they are inheriting and critically examining the mendacious actions of their elders. The future of the country is in their hands, so I hope they put down those iGadgets and open their eyes before it is too late. We need many more patriots like Edward Snowden and far fewer twerking sluts like Miley Cyrus if we are to overcome the smog of apathy and ignorance blanketing our once sentient nation.

The ignorance of youth can be chalked up to inexperience, lack of wisdom, and immaturity. There is no excuse for the epic level of ignorance displayed by older generations over the last thirty years. Boomers and Generation X have charted the course of this ship of state for decades. Ship of fools is a more fitting description, as they have stimulated the entitlement mentality that has overwhelmed the fiscal resources of the country. Our welfare/warfare empire, built upon a Himalayan mountain of debt, enabled by a central bank owned by Wall Street, and perpetuated by swarms of corrupt bought off spineless politicians, is the ultimate testament to the seemingly limitless level of ignorance engulfing our civilization. The entitlement mindset permeates our culture from the richest to the poorest. Mega-corporations use their undue influence (bribes disguised as campaign contributions) to elect pliable candidates to office, hire lobbyists to write the laws and tax regulations governing their industries, and collude with the bankers and other titans of industry to harvest maximum profits from the increasingly barren fields of a formerly thriving land of milk and honey. By unleashing a torrent of unbridled greed, ransacking the countryside, and burning down the villages, the ruling class has planted the seeds of their own destruction.

When the underclass observes Wall Street bankers committing the crime of the century with no consequences for their actions, they learn a lesson. When billionaire banker/politicians like Jon Corzine can steal $1.2 billion directly from the accounts of farmers and ranchers and continue to live a life of luxury in one of his six mansions, they get the message. Wall Street bankers are allowed to commit fraud, reaping profits of $25 billion, and when they are caught red handed pay a $5 billion fine while admitting no guilt. No connected bankers have gone to jail for crashing the worldwide financial system, but teenage marijuana dealers are incarcerated for ten years in our corporate prison system. The message has been received loud and clear by the unwashed masses. Committing fraud and gaming the system is OK. Only suckers play by the rules anymore. A culture of lawlessness, greed, fraud, deceit, swindles and scams was fashioned by those in power. Reckless disregard for honesty, truthfulness, fair dealing, and treating others as you would like to be treated, has permeated the beliefs and behavior of our society.

The ever increasing number of people in the SNAP program along with abuses committed by retailers and recipients, the skyrocketing number of people faking their way into the SSDI program, billions of taxpayer dollars lost to Medicare fraud, billions more lost paying out earned income tax credit refunds based on non-existent children, public schools falsifying test scores, students cheating on SAT tests, credit card fraud on a grand scale, failure to report income and falsifying tax returns, and a myriad of other dodges and scams are just a reflection of a moral and cultural collapse. The dog eat dog mentality glorified by the media, with such despicable men as Dimon, Greenspan, Corzine, Clinton, Trump, Rubin, Bernanke and Bloomberg honored as pillars of society, has displaced honesty, compassion, humanity, shared sacrifice, and caring about our descendants. Self-interest, self-indulgence, and a narcissistic focus on what is in it for me today has led to an implosion of trust and an attitude of “who cares” about our fellow man, morality, right or wrong, and the fate of future generations. We ignored the warnings of our last President who displayed courageousness and truthfulness when speaking to the American people.

“As we peer into society’s future, we — you and I, and our government — must avoid the impulse to live only for today, plundering for our own ease and convenience the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.” Dwight D. Eisenhower

The Me Generation has devolved into the Me Culture. While the masses have been mesmerized by their iGadgets, zombified by the boob tube, programmed to consume by the Madison Avenue propaganda machines, enslaved in chains of debt by the Wall Street plantation owners, and convinced by their fascist government keepers that phantom terrorists are hiding behind every bush, they surrendered their freedoms, liberties and sense of self-responsibility. There will always be evil men seeking to control and manipulate the ignorant and oblivious. A citizenry armed with knowledge, critical thinking skills, and moral integrity would not passively submit to the will of a corporate fascist oligarchy. Well educated, well informed citizens, capable of critical thinking are dangerous to rich men of evil intent. Obedient, universally ignorant, distracted, fearful, morally depraved slaves are what the owners of this country want. As the light of knowledge flickers and dies, we sink into the darkness of ignorance.

 

“No people will tamely surrender their Liberties, nor can any be easily subdued, when knowledge is diffused and virtue is preserved. On the Contrary, when People are universally ignorant, and debauched in their Manners, they will sink under their own weight without the Aid of foreign Invaders.”Samuel Adams

Cult of Ignorance

“There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that “my ignorance is just as good as your knowledge.”Isaac Asimov

  

“While every group has certain economic interests identical with those of all groups, every group has also, as we shall see, interests antagonistic to those of all other groups. While certain public policies would in the long run benefit everybody, other policies would benefit one group only at the expense of all other groups. The group that would benefit by such policies, having such a direct interest in them, will argue for them plausibly and persistently. It will hire the best buyable minds to devote their whole time to presenting its case. And it will finally either convince the general public that its case is sound, or so befuddle it that clear thinking on the subject becomes next to impossible.

In addition to these endless pleadings of self-interest, there is a second main factor that spawns new economic fallacies every day. This is the persistent tendency of man to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups. It is the fallacy of overlooking secondary consequences.”Henry Hazlitt

America’s cult of ignorance, combined with the selfish interests of various constituencies, the character weakness of the people elected to office, a lack of understanding or interest in basic mathematical concepts, and inability to comprehend the long term and unintended consequences of every piece of legislation, have brought the country to the brink of fiscal disaster. But still, the vast majority of Americans, including the supposed intellectuals and economic “experts”, are basking in their ignorance, as the stock market reaches a new high, the local GM dealer just gave them a 7 year $40,000 auto loan at 0% on that brand new Cadillac Escalade, Bank of America still hasn’t foreclosed on their McMansion two years after making their last mortgage payment, and they just received three pre-approved credit card notices from Capital One, American Express and Citicorp. As long as Bennie has our back printing $1 trillion new greenbacks per year, nothing can possibly go wrong. Our best and brightest economic minds are always right:

“Stocks have reached what looks like a permanently high plateau.” – Irving Fisher, Professor of Economics, Yale University, 1929

“Many of the new financial products that have been created, with financial derivatives being the most notable, contribute economic value by unbundling risks and shifting them in a highly calibrated manner. Although these instruments cannot reduce the risk inherent in real assets, they can redistribute it in a way that induces more investment in real assets and, hence, engenders higher productivity and standards of living.” – Alan Greenspan – March 6, 2000

“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.” Ben Bernanke – July 2005

The profound level of ignorance displayed by economists, politicians, business leaders, media personalities, and the average American, regarding the mathematically unsustainable path of our fiscal ship is perplexing to me on so many levels. If the Federal government was a family, the budget ceiling debate would be put into the following terms. Our household earns $28,000 per year, but we spend $38,000 per year and add $10,000 to our credit card balance, which stands at the limit of $170,000. In addition, we owe our neighbors $2 million we don’t have because we promised to pay if they voted for us as Treasurer of our homeowners association. We celebrate our good fortune of getting approved for another credit card with a $30,000 limit by increasing our spending to $39,000 per year. Intellectuals scorn such simplistic analogies by glibly pointing out that the family has a crazy uncle with a printing press in the basement and can pay-off the debt with his freshly printed dollars. And this is where the deliberate and calculated ignorance by the highly educated Ivy Leaguers regarding long term and unintended consequences is revealed. They ignore, manipulate, cover-up and obscure the facts because their wealth, power and influence depend upon them doing so. But ignorance doesn’t change the facts.

“Facts do not cease to exist because they are ignored.” Aldous Huxley

Nothing exposes the ignorance of various factions within our society better than a debate about budgets, spending, and unfunded liabilities. This is where every party, group, special interest, and voting bloc ignore any and all facts that are contrary to their selfish interest. They only see what they want to see. The fallacies, errors, omissions and mistruths of their positions are inconsequential to people who only care about their short-term self-seeking interests. When I question the out of control spending on entitlements and our impossible to honor level of unfunded liabilities, those of a liberal persuasion lash out with accusations of hating the poor, starving children and throwing granny under the bus. Anyone suggesting we should slow our spending is branded a terrorist by the overwhelmingly liberal legacy media.

When I accuse Wall Street bankers of criminal fraud and ongoing manipulation of the financial markets, the CNBC loving apologists for these felons bellow about the market always being right. When I rail about the military industrial complex and our un-Constitutional invasions of other countries, the neo-cons come out in force blathering about the war on terror and imminent threats. When I point out the horrific results of our government run educational system and how mediocre union teachers are bankrupting our states and municipalities with their gold plated health and pension plans, I’m met with howls of outrage about the poor children. The common thread is that facts are ignored because each of their agendas requires ignorance on the part of their team’s fans.

The following chart of truth portrays an unsustainable path. Ignoring the facts will not change them. This isn’t a Republican problem or a Democrat problem. It’s an American problem.

 

“There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: “In the long run we are all dead.” And such shallow wisecracks pass as devastating epigrams and the ripest wisdom.” Henry Hazlitt

Henry Hazlitt may have written these words six decades ago, but they aptly describe Paul Krugman and the legions of Keynesian apostles whose bastardized interpretation of Keynes’ theory has led us to this fiscal cliff. How anyone can truly believe that borrowing to consume foreign produced goods versus saving and making job creating capital investments is a rational and sustainable economic policy is the height of ignorance. One look at this chart exposes the political party system as a sham. When it comes to the fiscal train wreck, set in motion thirty years ago, the ignorant media pundits peddle a narrative about politicians failing to compromise as the culprit in this derailment. Nothing could be further from the truth. Compromise is what has gotten us to this point. The Republicans compromised and allowed the Democrats to create a welfare state. The Democrats compromised and allowed the Republicans to create a warfare state. The Federal Reserve compromised their mandate of stable prices and preventing financial calamities by inflating away 95% of the dollar’s purchasing power in 100 years, while creating bubbles every five or so years, like clockwork. There are a myriad of facts related to the chart above that cannot be ignored:

  • It took 192 years for the country to accumulate $1 trillion in debt. It has taken us 30 years to accumulate the next $16 trillion of debt. We now add $1 trillion of debt per year.
  • If the Federal government was required to use GAAP accounting, the annual deficit would amount to $6.7 trillion per year.
  • The fiscal gap of unfunded future liabilities for Social Security, Medicare, Medicaid, and government pensions is $200 trillion.
  • Using realistic growth assumptions adds another $6 trillion of state and local government unfunded pension benefits to the equation.
  • The Federal government has increased their annual spending from $1.8 trillion during Bill Clinton’s last year in office to $3.8 trillion today, a 110% increase. The population has increased by 12% over that same time frame, and real GDP has advanced by 25% since 2000.
  • Defense spending has increased from $358 billion in 2000 to $831 billion today, despite the fact that no country on earth can challenge us militarily.
  • The average Baby Boomer will receive $300,000 more than they contributed to Social Security and Medicare over their lifetime. Over 10,000 Boomers per day will turn 65 for the next 17 years.
  • The Social Security lockbox is filled with IOUs. The funds collected from paychecks over the last 80 years were spent by Congress on wars of choice, bridges to nowhere, and thousands of other vote buying ventures.
  • A normalization of interest rates to long-term averages would double or triple the interest on the national debt and increase our annual deficits by at least 30%.
  • Obamacare and the unintended consequences of Obamacare will add tens of trillions to our national debt. The initial budget projections for Medicare and Medicaid showed only a modest financial impact on the financial situation of the country. How did that work out?
  • Entitlement spending in 2003 was $1.3 trillion. Entitlement spending in 2008 was $1.7 trillion. Entitlement spending in 2013 was $2.2 trillion. Entitlement spending in 2018 will be $2.8 trillion, as these programs are on automatic pilot.

When you consider the facts in a rational manner, without vitriolic denials, bitter accusations, acrimonious blame, and rejection of the entire premise, you come to the conclusion that we’ve passed the point of no return. Decades of bad choices, bad leadership, bad men in important positions, bad education, bad governance, and bad citizenship have led to bad times. But very few people, across all socio-economic classes, have any interest in understanding the facts or making the tough choices required to save future generations from a life of squalor. We willfully choose to ignore the facts.

“Most ignorance is vincible ignorance. We don’t know because we don’t want to know.” Aldous Huxley

Our degraded and ignorant society is incapable of comprehending their dire circumstances or acting for the common good of the country. We are a nation on the take. Greed really is good. Everyone needs to play the game. From the top floor corporate CEO suite to the decaying urban wastelands, we have chosen comforting ignorance to uncomfortable knowledge. Our warped form of democracy enriches the few at the top, while dispensing enough subsistence payments to the lower classes to keep them from revolting, while enslaving the middle class in debt and convincing them it’s really wealth. Mencken understood the pathetic impulses of the American populace decades before we reached our point of no return.

“Democracy is a pathetic belief in the collective wisdom of individual ignorance.” – H.L. Mencken

The only way a democracy can survive is if the population is knowledgeable, vigilant, skeptical, educated, individually responsible, self-reliant, moral, capable of critical thinking and willing to accept the consequences of their actions. A nation of takers, fakers and blamers will not last long. We’ve degenerated into a nation of knowledge hating book burners. Our culture of ignorance will lead to the destruction of our culture and the ignorant masses will wonder what happened.

 

“But you can’t make people listen. They have to come round in their own time, wondering what happened and why the world blew up around them. It can’t last.”Ray Bradbury – Fahrenheit 451

In Part Two of this examination about our culture of ignorance I’ll explore the roles of technology, family breakdown, government, and propaganda in creating the ignorance that is consuming our system like a mutant parasite. If you are seeking a happy ending, I suggest looking elsewhere.

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Kill Bill
Kill Bill
October 27, 2013 10:46 pm

They have chosen the ignorance inflicted upon their brains by thousands of hours spent twittering, texting, facebooking, seeking out adorable cat videos on the internet, viewing racist rap singer imbeciles rent out sports stadiums to propose to vacuous big breasted sluts on reality cable TV shows, and sitting zombie-like for days with a controller in hand blowing up cities, killing whores, and murdering policemen using their new PS4 on their 65 inch HDTV, rather than gaining a true understanding of the world by reading Steinbeck, Huxley, and Orwell. Technology has reduced our ability to think and increased our ignorance. -JQ

You pretty much nailed it there Jim.

I cannot recall how many times I have overheard, without intention, of people saying truly dumb things into their ‘smart’ phones.

big stu
big stu
October 27, 2013 11:09 pm

The ignorant masses deserve to get what they want. And get it good and hard.

Old Buck
Old Buck
October 27, 2013 11:11 pm

Nice to see a mighty fine post. thanks

Steve Hogan
Steve Hogan
October 27, 2013 11:54 pm

I tell friends and family to stock up on food and water to survive the coming collapse. Do they listen? Nope.

I tell them to stop frivolous purchases and use their FRNs to purchase gold and silver. Have they done so? Not yet.

I ask them to re-stock their first aid kits, get a bug-out bag for their house and car, and get a generator when the grid goes dark. Have they done so? They’ll wait until after the crisis hits.

Yes, Americans are ignorant and lazy. The signs are all there if they are willing to open their eyes. I’m pretty much done trying to convince them that they’re road kill if they don’t get off their collective ass and prepare for what awaits us.

Thunderbird
Thunderbird
October 28, 2013 12:02 am

Very well said Admin. Looking forward to reading part 2.

I sense we are near the end of our national government. We will go down like the Soviet Union; and break up like this super power did after their failure in Afghanistan. It is said Afghanistan is the deathbed of empires and the United States empire will be among its victims. I see our post union breaking up into regions. The ignorant may laugh at this notion now, but I am not writing this for the ignorant.

The United States Corporation is bankrupt financially, politically, and morally. It is infested with people infected with a disease of the mind called Bolshevism, that think they can convert this government into one of communism. But it is too late. The seeds of destruction in the current government are going to reveal a system so corrupted; that will have such a direct negative economic impact on the people, they are going to lose their taste for a central government for years to come.

It is said ignorance is bliss; but only until it isn’t. There will be no need for an armed revolution against this government because it’s fall will finish it. What will be the danger is the communists (progressive liberals) that will try to form a new central government in the ashes of the United States Government; that self destructed thanks to their handy work.

I think after the crash the local governments and prominent people in the communities will work closely together to get the economy moving in their areas. the first priorities will be food and a new local currency. Local codes and regulations will have to be set aside so people can start enterprises. Remember, when the national currency fails; the giant monopoly corporations and big box retails will fail with it. New enterprises will be starting from scratch. People have plenty of stuff including clothing to trade at the start. Meat will be in short supply at first but chickens can multiply fast and produce eggs. They live on bugs if not penned. Imagine chickens in the city. But hey, this is an emergency.

I still have faith in people to cooperate in emergencies in this nation. Yes, we have the free shit army; but they will be under martial law in their areas. They will be the ones most affected because they have been the least productive and will become the most desperate in their ignorance.

Adversity builds character. Exactly what the people need.

ohcrap
ohcrap
October 28, 2013 12:20 am
Reverse Engineer
Reverse Engineer
October 28, 2013 2:38 am

Well, the issue here is that the entire Industrial Economy was built on Debt Financing, and this economy made a small subclass of people rich beyond all measure. Far richer than any King or Pharoah or Emperor ever was.

To build this society, money was created by private interests and borrowed by Goobermints beholden to those interests to create an Industrial society of Planes, Trains and Automobiles. Long as there was cheap EZ to access energy in the ground the Debt Money could buy, the dream of Infinite Expansion could be maintained. Old debts endlessly rolled over in the expectation of still MORE coming down the pipe tomorrow.

More is not coming down the pipe, and the debts piled on debts of the last 200 years have come due, and nobody can pay them. To default on them means the End of Life as We Know It. Few people wish to give up the creature comforts of Electric Lights that flick on at the flip of a switch or give up the Car that gets them to work either. Even if they want to, the society infrastructure is not there to allow them to do so.

Geniuses from MIT, Harvard and Princeton are employed to keep this House of Cards floating another Year, another Month, another Day, another Hour, another Minute. I have to say, they have kept it floating a lot longer than I thought they would back in 2008, but the clock is winding down here now and Fraud will not keep it going forever. The Music will stop, and there will be Hell to Pay when it does.

I’ll post this one on the Diner tomorrow Jim. Now all we can do is chronicle it, and wait for the Sword of Damocles to drop down, and drop it will. I GUARANTEE IT.

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RE

Gayle
Gayle
October 28, 2013 2:40 am

The prevailing ignorance is partially due to public education as Admin asserts. However, it’s because of curricular factors as much as anything else. Teachers are not free to teach outside of the state- and district- prescribed curricula and may use only limited supplemental materials with the adopted textbooks.

I have wondered for a long time (now I understand) why seniors in high school aren’t required to take a year long course on skills that promote intelligent citizenship. They should study both the budgets and tax systems of their city, county, and state and learn how much money they will be paying the various levels of government over their lifetimes. They should have to create a workable budget, including adequate long-term and short-term savings for a family of four based on the average salary of their community. They should calculate the cost of raising an infant for two years, the costs of divorce, the costs of child support. They should be taught the advantages/disadvantages of home ownership vs. renting.

Another topic for this course would be national economic and monetary policies including a study of the history and practices of the Fedeal Reserve. The federal budget and deficits would be reviewed
as well as different forms of investing and the proper use of credit.

The third focus would be on how to form a successful family. Examination of research that reveals the factors creating stable marriages and secure children would be required. Personality and aptitude testing could be used to bolster understanding of compatibility and temperaments of self and others.

Of course TBTB wouldn’t care to have young people empowered with this kind of knowledge. Their interests are not served if people have even a basic grasp of the matters outlined above.

Llpoh
Llpoh
October 28, 2013 5:33 am

I do not know the best place to post this as I cannot keep up at the moment, but I simply must gloat.

Remember all the arguments where it was stated that companies pay an effective tax rate of 12 percent, and I called bullshit? Turns out, surprise fucking surprise, I was right. The study was based on one year – 2010 – which followed years of losses, which were carried forward. New studies totally debunk and ridicule that one.

Turns out that the corporate tax rate paid, on average, for years 2004 – 2010 is, wait for it – 35%.

The whole corps pay no tax thing turns out to be total bullshit. As I said it was.

Also turns out the US corp tax rate is the world’s highest. As I said it was. Also seems that of the 34 top economies in the world, only three have not reduced corp tax rates in the last 15 years – including the US.

Also seems that most economists agree with me – corp tax rates should be zero.

Capital is fleeing because of this bullshit. And the MSM is blowing smoke up everyone’s ass.

Llpoh
Llpoh
October 28, 2013 5:56 am

BTW Admin – nice doom article! Very nice.

But as Arnie said, I will be back to kick your ass over the corp tax stuff.

Interesting point also made – the studies showed that the corps not paying taxes, and there are some , were a result of political interference. Senators, etc., running interference for the GEs of the world and getting them special tax breaks. But overall, corps are indeed paying high tax rates. Just not all of them.

Lobbyists and donations can indeed pay off.

Reverse Engineer
Reverse Engineer
October 28, 2013 6:23 am

“Turns out that the corporate tax rate paid, on average, for years 2004 – 2010 is, wait for it – 35%.

The whole corps pay no tax thing turns out to be total bullshit. As I said it was.”-LLPOH

The actual taxation rate paid here by corporations no longer matters. The problem is deficiency of cheap energy to run the industrial paradigm and issue more debt. Even the Uber Rich cannot pay off the debt accumulated over the last 200 years of Industrialization. It is IRREDEEMABLE Debt.

YOU CANNOT MAKE SOMETHING FROM NOTHING.

RE

hardscrabble farmer
hardscrabble farmer
October 28, 2013 7:19 am

I wake up every morning before first light, make my coffee and sit down for my daily dose of Internet before heading out to do chores. The family, asleep upstairs, allows me the time to erode my ignorance- this morning it was soil studies of my county, series 1961, No. 22 followed by TBP.

I cannot express how grateful I am to see that I am not alone in my perceptions, that someone else can see the fundamental mathematics of this unsolvable equation and put it into words as succinctly and eloquently as you have, without fear- that part is integral. As Orwell said, telling the truth in a time of universal deceit is indeed a revolutionary act. I salute your sagacity.

Later this morning my oldest son will take an hour to review his latest assignment on Plato’s Republic (we home school) and I will have him read this post. After that we plant the last of the hardneck garlic, finish the gable end of the new hay barn and come in to wash up for supper, made from the fruits of our labor and lovingly prepared by my wife and daughter.

There is little that I can add to your post through my comments, but I do want you to know that there remain out here in the hinterlands of flyover country small pockets of light, where ignorance is like brush to be cut back regularly. Families that rely on their own efforts to keep alive and more than that, to thrive and to preserve some small part of what is traditional and wholesome. A part of me wants to make some type of anlogy- between my sitting in the darkened study while those around me sleep without a care in the world- to the bigger issues of a nation of people who sleep through their lives, but I am not much of a writer. And so, like Gatsby, we beat on, boats against the current, borne back ceaselessly into the past.

flash
flash
October 28, 2013 7:20 am

admin,there you go again..scaring the chillen’.
Might fine piece of prose ,there JQ.I think you’ve topped the charts with this one.It deserves to be spread far and wide.I’ll do my part.

+ 1000

Reverse Engineer
Reverse Engineer
October 28, 2013 7:32 am

” But very few people, across all socio-economic classes, have any interest in understanding the facts or making the tough choices required to save future generations from a life of squalor”-JQ

What is a “Life of Squalor”? Is it living in a Mud Hut or an Igloo?

Eventually the industrial lifestyle had to end, the energy resource it was based on was finite. Maybe with real good stewardship it could have lasted another 100 or 200 years, but no matter what it was going to run out eventually.

It is just unfortunate here that the experiment with Industrialization has now so poisoned the earth it may be impossible to return to simpler and more sustainable ways of living. One can still TRY to achieve that though.

SUN. Sustaining Universal Needs, Inc. Coming Soon to a Laptop Near You. 😉

RE

Nonanonymous
Nonanonymous
October 28, 2013 7:39 am

RE, there are sustainable sources of energy, and more efficient ways of using it.

Welcome to the 21st century. The sun will be back out in six months.

Reverse Engineer
Reverse Engineer
October 28, 2013 7:56 am

@NA

Of course there are. Just said sources do not provide the VOLUME of energy that millions of years of Fossilized Energy had to give up here, which we basically burned inside 200 years.

Pay as you Go energy collection is quite a bit less than what we are used to here in the Age of Oil. A Low Energy Footprint society is “squalor” in the minds of many people. You can do well with low energy systems based on just what is collectible, but you certainly cannot run Jet Planes and millions of SUVs parading around the interstate on it. Just won’t happen. Live with it.

RE

dc.sunsets
dc.sunsets
October 28, 2013 9:27 am

Doom, Doom, Doom.

I’ll give you doom. Bubonic plague. People so poor that they happily stripped the clothing off corpses because a set of clothes was something a typical person got maybe 3 times as an adult. A time when half of all babies born died before adulthood.

That’s doom.

People today wouldn’t know doom if it landed on their foot and broke a toe. They buy generators (or high-tech solar panels) to prepare for a post-industrial world. (WTF? Is TEOTWAWKI going to be like summer camp, “roughing it” for a few weeks with Walmart just a bus-ride away?)

People have always been ignorant. Few “get it” today, just as few “got it” in 1900, 1800, 1700, etc.

This is why it’s so fun to poke TBP’ers once in a while. Who among us is really part of Nock’s Remnant?

How do we know?

dc.sunsets
dc.sunsets
October 28, 2013 9:59 am

Admin, how did you find my photo?!

Damn you, National Geographic! DAMN YOU!!!!

I’m in the market for a decommissioned missile silo if anyone has one sitting around unused. One of the old ICBM types, with a really deep hole would be great, but preferably not one requiring 24/7 water pumps to keep it from turning into a cistern.

When can we get back to the goldbug channel? I need my fix of people who SELL gold to rubes chanting, “Hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, hyperinflation, ….

dc.sunsets
dc.sunsets
October 28, 2013 10:03 am

Admin, explaining “why he buys gold….”[imgcomment image[/img]

The Dude Abides
The Dude Abides
October 28, 2013 10:41 am

The source of all of our problems boils down to a rather simple phenomena that has been unfolding over the past 300 years or so. That is, we happened to stumble upon the concentration of millions of years worth of accumulated stored solar energy — an energy source that is some 3400 times more powerful than human labor. You can liken this to someone living on public assistance suddenly finding themselves the sole recipient of a $500 million Powerball prize.

And just like that hapless lottery winner, we had no idea of how to “budget” our winnings to not only benefit ourselves, but our future generations. Instead, we went on a legendary bender. We (literally) burned through those winnings because, hey, there was so much of it we could NEVER possibly run out.

Now, we find ourselves sitting in a mansion that has been completely and utterly trashed (like that guy in upstate NY whose second home was broken into by a bunch of high school kids), and realizing that a significant portion of our winnings have been squandered. But instead of realizing these limits and adjusting our behavior accordingly, we take what money we have left and spend it on a bunch of lottery tickets in the hope that we will once again hit the big jackpot, while simultaneously plugging up the toilets with rags, dumping trash in the hallways, spray-painting graffiti on the walls and shitting in the shower stalls of our once beautiful but now broken-down mansion.

While I’m definitely left shaking my head at the complete ignorance of our energy predicament among the general population, what really binds my britches is people who grasp the concept of living within your FINANCIAL means who remain completely, willfully ignorant about living within our ECOLOGICAL and THERMODYNAMIC limits. But regardless of whether we want to acknowledge it or not, like so many other things it’s going to come back to bite us in the collective ass.

d.c. sunsets — Want to know who Nock’s remnant is likely to be? I’d recommend checking out Dmitry Orlov’s series on “Communities that Abide”. I don’t think that too many TBP’s are going to qualify according to those criteria. Neither, likely, am I….

nameless
nameless
October 28, 2013 11:14 am

Great post as usual, Admin. But while it is true that the current level of ignorance by the majority of today’s situation with regard to economics and politics is unfortunate and perhaps unforgivable, it seems to me that it is EVEN MORE tragic that most of those WHO KNOW do nothing about it.

Why is there no movement to “right the ship”? Are we, those WHO KNOW (aided by the contributions of knowledge provided by this blog and many others like it), so outnumbered by the ignorant masses that we cannot “break on through” to the other side?

dc.sunsets
dc.sunsets
October 28, 2013 11:23 am

Admin, if I throw a ball into the air really, really hard and graph its rise, would that inform you that it will keep going up forever?

What if I did that on a planet where gravity was low enough that it could rise for 80+ years? Would that mean it would keep going forever?

I suppose the dollar’s decline (vs gold) could have reached escape velocity…It surely would have looked like it in 1980.

If you had plowed a painfully large chunk of hard-earned $ into gold in 1980 (or ’82, or ’85, or ’90, or ’93, or even ’97) and were still as bullish as you are re gold, I’d accept that (I might think you were nuttier than a squirrel turd, but I’d accept it).

You write like a stock bull who has only seen the upside of the hill. I love people who mistake happenstance and lucky timing with success.

Calamity
Calamity
October 28, 2013 11:24 am

While I agree with the part about young people tuning out there is a reason why. We got the message long ago that we are not needed except for votes. The only time anybody gives a shit about the youths in this country is either pandering for votes or spouting out “Do it for the children” rhetoric.

dc.sunsets
dc.sunsets
October 28, 2013 11:31 am

LMAO. I just went back and noticed you graphed ONLY the recent bull market in gold.

Who is short-sighted enough to miss that all these websites touting the value of gold ONLY show you 1999 forward?

Let’s see you graph the CPI-adjusted value of gold (per dollar) going back to 1971, or at least 1979.

Hint: ALL people who missed about 1995-2003 are STILL under water compared to putting their cash under the mattress. EVERYONE who bought gold the entire time is probably still under water compared to having just bought T-bills and rolled them over each quarter.

All the charts about the past history of the dollar are just that: The Past. They are no guarantee of the future, and in fact the more firmly people pound the table on the imminent and assured end of the dollar, the more likely it is that the trend is about to at least temporarily reverse.

Skinny
Skinny
October 28, 2013 11:48 am

Sorry I’m late posting this comment. I got distracted by the ad showing two girls with their racks in my face bragging about a banned video. By the time I got back to the article the debt limit was raised two more times.
As usual, Quinny posts an excellent article however there are some exceptions that need to be pointed out. I hear a lot about Kabuki Theatre but having never actually attended one I’m not sure I get the reference. The all knowing Wikipedia says that it is “known for stylization of its drama and for the elaborate make-up worn by some of its performers.” Kabuki is therefore sometimes translated as “the art of singing and dancing.” I don’t know about you but the idea of Harry Reid or John Boehner singing and dancing while wearing elaborate make-up is not something I’m in hurry to see. On the other hand, Ted Cruz decked out in Kabuki make-up would have made the filibuster much see TV for the millenial audience.
Quinny also derides the growth of our national debt saying it took 192 years to reach $1 trillion and only 30 more to get to $17 trillion. This is easily explained. Ask any rich person and he will tell you the first trillion is the hardest. Also now that the Fed buys well over 60% (a cool $85 billion a month) of all treasuries issued and has increased their holdings to over $2 trillion, or roughly twice what the Chinese own, what could possibly go wrong? Better yet is that the Fed is prohibited by law from buying securities directly from the Treasury and must therefore conduct its purchases on the “secondary market.” This all sounds dashing and dangerous but all it really means is that one branch of the government is buying another branch of the government while paying a boatload of fees and commissions for the privilege. I agree that Ben Bernanke hasn’t been the best Fed Chairman but now that Janet Yellen is poised to take the reins, I’m confident it will all work out just fine.
You also need to chill with quotes from the dead white guys. That’s so 18th Century. When John Adams quoted Cato or James Madison adopted the name Publicus, that was considered cool. Not anymore. Aldous Huxley? Bernard Baruch? (Is he named after college or is it the other way around?) You need to work in the prophetic stylings of a Kanye West or a Toni Morrison if you want to be considered relevant.
On a final note I remain compelled to watch the end of this drama, Kabuki or otherwise. America as we know it is finished but 300 million people don’t just vanish. Will it end peacefully with a gradual secession of states into regional statelets or will it end with flash riots and the storming of the Capitol? Maybe Quinny will tell us in Part 2.

Mary Malone
Mary Malone
October 28, 2013 11:49 am

Thanks for capturing the mood of the times. I think many more people are awake – they simply are keeping their POV to themselves. The fear of being tagged as a dissident – all data and communications captured by the NSA has really had an impact in my POV.

In my little world – I see how people are intimidated from even contacting me via email regarding questions on their mortgage docs. Since the Snowden NSA revelation – emails from homeowners have tanked.

When we are out and about in NJ and NYC, Mr. Malone and I try not to bring up politics or the doom. But invariably after a couple of drinks, other like-minded souls begin to reveal their fears, repulsion at the current state of affairs. Even in the Upper West Side of Manhattan.

So I do think there are many more of us out there – plotting, planning privately.

Of course, we are outnumbered in the Blue States, but pockets of resistance give me hope that all is not lost. Even in NY and NJ.

Stucky
Stucky
October 28, 2013 12:00 pm

“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” — Thomas Jefferson

One of your best articles ever, Jim. There are few, if any, I’ve enjoyed more.

Corey Booker, McDonalds, Kramer, Jeebus; — if Thomas Jefferson were alive today he would proclaim the imminent death of America.

Corey Booker. Yeah, I’m still bummed and disgusted that the people of NJ willfully and knowingly elected a massively corrupt liar. Booker represents everything wrong with American politics. Pelosi, Reed, Cruz, FaggotFrank, et al times 535 …. they will all be reelected. Ignorant fucking Americans! The U.S. will continue to have horrible political leaders in the foreseeable future …. chosen by low information dumb shit jackass voters. Ignorance never leads to happy endings. America will eventually shrivel towards insignificance due to widespread ignorance.

McDonalds. Yesterday morning we made the 10 mile trip along Route 28 to the Farmers Market. We passed four McDonalds. Each had a long line of cars. We bought a dozen organic cage-free eggs for $4.70 … roughly the cost of one MickyD’s shit breakfast. High cost, high calorie, nutritionally empty SHIT “food”. No amount of information will keep dumbfuk fatassed Americans away. Not even the revelation of “pink slime” disguised as meat. Not even the absolute fact that 50% of a Chicken McNugget contains non-muscle meat … beaks, veins, cartilage, and shit scientists couldn’t identify. Yet, Mcdonalds continues to rake in billions upon billions of dollars, thanks to the enormous ignorance of Americans who don’t give a flying fuck about their most important possession … their own bodies.

Kramer. A complete ass-clown who is wrong far more often than he is right. Americans are glued to their teevee, and Kramer represents that cultural hellhole. Honey Boo Boo. Duck Dynasty. Endless fake “reality” shows. None of them fail because, apparently, American love Stupid Shit. If the computer phrase “garbage in garbage out” is true, then it is no wonder why Americans are so goddamned stupid.

Jeebus. Every week millions upon millions of people pray to some invisible deity … thinking that deity actually gives a flying fuck about America … or, them. Churches rake in hundreds of billions of dollars in loot every year. Joe Sixpack prays that Mr. Invisible Man will somehow keep BOA from foreclosing on his house, and then throws in a $20 dollar bill to hopefully seal the deal. Pathetic delusions.

TPC
TPC
October 28, 2013 12:02 pm

@Mary Malone – “I think many more people are awake – they simply are keeping their POV to themselves.”

I think you hit the nail on the head. People do not like the blatant double standard between us and them (citizens and rich/connected). They do not like unending war. They do not like sky high education and healthcare costs. They do not like inflation.

They do not like our government. There is a vocal minority that truly has bought into the mainstream agenda, but your rank and file American hates this system down to their bones.

They all keep it to themselves because they are afraid they are alone in these thoughts, and that fear is by design. Anyone who challenges the system is quickly labeled (sexist/racist/homophobe etc) and then ostracized accordingly.

This fear has completely stopped all conversation in the middle of the political spectrum. It won’t be until the fear is removed that people actually speak up.

dc.sunsets
dc.sunsets
October 28, 2013 12:09 pm

Poke me some more, puhleeze. (grin)

I have no dog in this show. I just listened to this same line of hilarity in 1993 (from Mr. BuyGold himself, Doug Casey).

If I had discovered Casey (like Admin did, in a glory hole) in 2004 and jumped on the bandwagon, I too would think I was F-ing brilliant!

Children. They think they know it all.

bb
bb
October 28, 2013 12:11 pm

My people are destroyed for lack of knowledge,because you have rejected knowledge I wiil reject you…HOSEA 4;6…….Because you neglected all my counsel and did not want my reproof ‘ I will laugh at your calamity ‘ I will mock when your dread comes like a storm…PROVERBS 1;24….In other words …..ABANDON ALL HOPE YE WHO ENTER HERE …DANTE;S INFERNO.

bb
bb
October 28, 2013 12:18 pm

Oh , almost forgot. Nice article Jim.Be good if you could get it on the front page of NEW YORK TIMES AND WASHINGTON POST.

nameless
nameless
October 28, 2013 12:30 pm

@Skinny, who said: “all it really means is that one branch of the government is buying another branch of the government while paying a boatload of fees and commissions for the privilege.”

The Federal Reserve is not “one branch of government”!!! The Federal Reserve is a cartel of private banks. No more Federal than Federal Express, as you should know.

Last night on Fox John Stossel did an expose on the Federal Reserve. Nothing new for those of us who know about Jekyll Island but hopefully some viewers learned something if they watched.

http://www.foxbusiness.com/on-air/stossel/index.html

Skinny
Skinny
October 28, 2013 1:14 pm

Nameless is correct. I should have substituted “creature” for “branch.”

big stu
big stu
October 28, 2013 1:22 pm

People think I’m crazy because I: 1. bought gold and silver. 2.Bought weapons and ammo. 3. stored food ,water, and medical supplies 4. don’t watch popular t.v. or trust the government at any level. 5.don’t give a shit what others think. I still keep myself supplied. I still don’t care.

big stu
big stu
October 28, 2013 1:31 pm

Money changes value in relation to gold, not the other way around. A $20.00 gold piece today will buy about what it bought in 1900 (custon suit with two pairs of pants, for example) but 20 paper bucks from those days will barely buy you a semi-nice dinner at a sit-down. keep believing paper is as valuable as gold, if you wish. You are free to deny reality but you are not free of the effects of such denial. All fiat currencies collapse.

big stu
big stu
October 28, 2013 2:09 pm

Please read slowly and carefully: CORPORATIONS DO NOT PAY TAXES. CORPORATIONS HAVE NEVER PAID TAXES. CORPORATIONS NEVER WILL PAY TAXES. Corporations COLLECT taxes. Look at your gas receipt. Or any receipt. Notice the line that shows how much is going to taxes… the “corporate taxes” that YOU pay. The idea that corporations pay taxes is the greatest con job the public has ever willingly swallowed. The next time some buffoon sidles up to you and mutters about taxes and corporations paying “their fair share” or “giving back” you might enlighten the slugs as much as possible.

Spinalator
Spinalator
October 28, 2013 3:08 pm

Nice article!

dc.sunsets
dc.sunsets
October 28, 2013 3:10 pm

Mr. Alan Retiree, a former cop who then double-dipped by getting appointed to a state commission on equal rights for LGBT people, thought he was going to get $98,000 per year (plus full medical) in perpetuity due to his “service.”

His “pension” was, in fact, deferred compensation. “Work for us today for ‘X’ and later we’ll pay you ‘Y’ while you golf, play with the grandkids, and winter at your vacation home in the US Virgin Islands.”

He (or better, his public employee union officials) accepted this “bargain.” They figured that politicians would never let them down lest the “Rank” and file actively oppose them in the next popularity contest.

The money was NEVER going to be there, but everyone was optimistic so little things like “facts” never really mattered. Can-kicking is nothing new to this era.

Now maybe he gets $15k/year (16 cents on the dollar, as above).

Is he wheeling wheelbarrows full of cash to the store to buy a loaf of bread, or is he selling the vacation home, then the family silver plate, and then those Krugerrands he saved for a rainy day in order to pay the property tax bill on his primary residence?

For a world seemingly awash in dollars (due to incipient hyperinflation) it seems a whole lot of people are as short of cash as are Cypriots.

dc.sunsets
dc.sunsets
October 28, 2013 3:28 pm

“Kramer. A complete ass-clown who is wrong far more often than he is right.”

And in doing so laughs all the way to the bank.

Crime pays, especially the con artist type.

Is Kramer any worse than 99.9999% of academic economists, providing intellectual-sounding, content-free rationalizations for believing the illusions?

TPC
TPC
October 28, 2013 3:45 pm

I’ve always been taught that gold was not an investment, it was a vote of no-confidence in paper currency.

By the way, that quote goes all the way back to westerns I used to read as a little kid (no, I don’t remember the actual book. Probably a Louis Lamour).

SSS
SSS
October 28, 2013 5:01 pm

Welcome, hardscrabble farmer. Great comment on a great article, especially when you said, “The family, asleep upstairs, allows me the time to erode my ignorance – this morning it was soil studies of my county, series 1961, No. 22 followed by TBP.”

Ok, test time, kiddies. This one is right down hardscrabble’s alley.

Last Friday, the little woman and I went down to Tubac, Arizona, just north of the border with Mexico and site of the first Spanish presidio (fort) and settlement in Arizona (1752). Some settlers in Tubac would later migrate to the Pacific coast, head north, and founded some obscure city they called San Francisco.

Anyway, as we were touring the wonderful Tubac State Park, one of the docents took us into the first schoolhouse there and showed us some questions from a test given to 8th graders back in the 1880s and 1890s. Here’s the first question he showed us.

“A farmer has a wagon bed that is 2 feet deep, 6 feet wide, and 10 feet long. How many bushels of wheat can the wagon bed hold?”

I thought to myself, “Damn, you can’t solve that problem without KNOWING how many cubic feet are in a bushel. This actually requires that you MEMORIZE something.” Mind you, now, this is the type of math questions which were given to 8th graders in the late 19th Century.

Anyone want to take a crack at the answer? First correct answer wins a personal, guided midnight walking tour of the 30 Blocks of Squalor. Tour guide will be none other than Admin. You must supply your own personal firearm.

But here’s the point. Public education USED to be quite challenging and useful. It demanded that you study and learn not only difficult subjects such as Latin, which gave you insight into the root of 60% of English words and the Roman civilization at the same time, but it also gave you practical skills you could use your whole life. No more. Today, public education is both expensive and often worthless in providing students with lifetime skills. I don’t have a solution other than keep your children away from those schools whenever you can. Caveat emptor.

AWD
AWD
October 28, 2013 5:11 pm

Maybe somebody can explain to me how this kind of money printing doesn’t result in hyperinflation.

JPM Sees “Most Extreme Ever Excess Liquidity” Bubble After $3 Trillion “Created” In First 9 Months Of 2013

Submitted by Tyler Durden on 10/28/2013

To summarize:

In just the first 9 months of 2013, DM countries have injected $1 trillion in liquidity sourced exclusively by central banks; EMs have injected another $2 trillion driven by bank loan demand.

The total global M2 is over $66 trillion, growing at an annualized pace of over 6%.

The amount of excess liquidity, i.e. the infamous “liquidity bubble” in the global fungible system is “the most extreme ever in terms of its magnitude”

Stucky
Stucky
October 28, 2013 5:24 pm

SSS

96.42

WorkingClass
WorkingClass
October 28, 2013 5:25 pm

Empires and cultures begin, continue and decline. Decadence is everywhere you look in the US. As a Nation and as a society we are in for a hard landing. There is absolutely nothing we can do to prevent it. The young will survive the crash, inherit the rubble and rebuild. Although peace and prosperity seem within our grasp the human race is simply not capable of achieving them except for brief periods. Our species has some evolving to do.

SSS
SSS
October 28, 2013 5:38 pm

Stucky

I got 96.43, using a bushel equals 1.2444 cubic feet (to the ten-thousandth). Damn, what did you use? 1.24445602149? Only the Bureau of Labor Statistics uses that number. Heh.

Anyway, close enough for government work, you win. I’d pay good money to see that 6’8″ white Austrian body walking through the 30 Blocks at midnight. Send me a video.

Stucky
Stucky
October 28, 2013 7:26 pm

“SHOW YOUR WORK TO SUPPORT YOUR ANSWER” —– T4C

Q: “A farmer has a wagon bed that is 2 feet deep, 6 feet wide, and 10 feet long. How many bushels of wheat can the wagon bed hold?”

The formula for cubic feet = L x W X H, therefore;

2 x 6 x 10 = 120 cubic feet

GIVEN that there are 1.24445602149 cubic feet in 1 bushel, therefore;

120 cu ft / 1.24445602149 cu ft per bushel = 96.42767436348 bushels, therefore;

SSS is wrong with his bullshit 96.43 answer (clearly, an amateur)

archie
archie
October 28, 2013 7:39 pm

again, nice job admin. thank you. i’ve always thought culture, or the current lack of it, or the decline of, broadly considered, was much more important than politics, economics, education, etc., though of course all those arenas of life plus many more constitute a large chunk of what we would call “culture”. i am really talking about the every day ethos of america, if one can put a finger on it. however, i would point to the nefarious forces of radical feminism (and its disturbing, ahistorical goal of a “gender neutral” society, apparently on grotesque display at NPR), multiculturalism (a self-evident sham if there ever was one), and nihilism at the center of what is corroding anything we might have considered “normal” throughout human history, and what would count as culture affirming. (yes, i will add to the toxic chowder i just described economic globalism, but that’s a bit more than what i have in mind presently.) i am eagerly looking forward to part 2.

i have a few stories to share so as not to bore your readers. i think they shine a light, though perhaps dim, on what i just wrote.

a few weeks ago i was waiting at the barbershop, which where i live is just a shack along side the road, open two days a week. well, these two guys, the barber, whom i know, and his customer, were yucking it up about their teen and young adult years, the 50’s and early 60’s. after a few chuckles, the customer said, as he was getting out of the chair, with a touch of remorse, “we lived through the best of it.” on friday, i was talking with an old-timer who had just got out of the hospital for radiation treatment, the result of which was that he couldn’t taste food properly. the guy looks like he just fell off the stern of a lobster boat–hair disheveled, face like a dried peach–and all he could talk about was how expensive things are. he regaled me with stories of 10 cent coffee, 28 cent cigarettes, and sub 50 cent gas. what a ball he had in those days driving an oil truck. and lastly, today, i was chatting it up with my propane guy, in full dickies outfit, a real old school mainer, who came over to replace my tanks. he’s just about the nicest guy in the world. i don’t believe anything has ever upset this man. well, he mentioned that he couldn’t figure out oil prices and that if he could he’d be rich, but that that didn’t bother him as he made a decent living and ate three meals a day. after a while he mumbled something about a man’s handshake meaning something. i didn’t say much. i’d really like to digitally record these men for posterity. but i won’t.

(by the way, i think 100x more of these men, yes with rotting teeth and unpolished appearance, than i do any of our bejeweled masters in washington and nyc. they deserve the bottom of my boot and the disgust of humanity.)

Sensetti
Sensetti
October 28, 2013 7:44 pm

Great work Admin, thank you!

Reverse Engineer
Reverse Engineer
October 28, 2013 8:17 pm

“Maybe somebody can explain to me how this kind of money printing doesn’t result in hyperinflation.”-A-hole

It’s notional money sitting in Bank Reserves. It’s not moving through the economy. There is no real distribution mechanism for it, at the retail level banks are not loaning it out. 99% of the population still doesn’t have money to spend, their available credit is shrinking, wages continue to fall and more people are UE or “out of the labor force”. You can’t get a hyperinflation out of this, people simply do not HAVE dollars to fill wheelbarrows with.

The only folks with access to this vast swimming pool of liquidity are the TBTF Banks, and they keep pushing it into the market, propping up the prices there. Eventually, when they try to liquidate (all at once when some Black Swan comes in for a landing) there will be nobody buying. All that Notional Money goes up in smoke in a few nano-seconds of HFT Algos Gone Wild.

This money will never see the light of day in the real economy. The system will seize up before that can happen.

RE