This Time It Is Different

capitalism-vs-socialism

For years, I have warned that we will face our worst nightmare – the collapse of socialism. In the death throes of this abomination that even the Ten Commandments listed as a serious sin, equal to “thou shalt not kill”, government will become the ugly beast that will devour society to retain power. Of course, they will never see themselves that way, but they will justify in their minds that stripping us of our freedom, rights, privileges, and immunities, is necessary to maintain socialism for the good of the people.

Thatcher-Socialism

Marx-Changing World

We are running out of other peoples’ money, as Margaret Thatcher warned. Karl Marx, who sought to change society by sheer force, set all this in motion. What has taken place is really scary, for indeed they have altered society far more than anyone dares to ponder.

Why is this Sovereign Debt Crisis collapse different from 1931? When the governments of the world defaulted on their debts in 1931, there were no pension funds. Government has exempted itself from all prudent reason for you take the state operated pension funds, like Social Security in the USA, where 100% of the money is in government bonds. They may have no intention of defaulting, but very few government have ever paid off their debts in the end.

Then there are states who regulate pension funds requiring more than 80% to be in government bonds. A Sovereign Debt Default this time around will wipe out socialism, yet the bulk of the people are clueless not merely about the risk, but the ramifications. Younger generations do not save to support their parents for that was government’s job post-Great Depression. Socialism has altered thousands of years of family structure following the ranting of Karl Marx. This has been one giant lab experiment that ended badly in China and Russia and is coming to a local government near you.

So this time it is SUBSTANTIALLY DIFFERENT. Government is now on the hook, which is part of the reason why they are moving to eliminate cash to prevent bank runs and to force society to comply with their demands. This is why we have people like Gordon Brown, who sold Britain’s gold reserves in 1999 making the low, claiming now that eliminating cash will eliminate the boom and bust of the business cycle. Let’s face it, Gordon Brown has NEVER been right when it comes to politics, not even once, and he has been the worst manager of finance that Britain has ever known. He sold the low in gold and now he presumes he can fulfill Marxism by eliminating cash. He postulates ideas that are theory without any support whatsoever. We cannot afford more arrogant people like this in politics who believe they have a right to experiment with society.

This time it is very different. They have wiped out society placing the entire scheme of socialism as a terrible nightmare that will end badly, and they have ruined the social family structure disarming people that for thousands of years was our very means of self-sufficient survival. These clown have set the tone for wiping out the dreams they sold the elderly, all while hunting taxes and causing job creation to implode as the youth has been converted into the lost generation. All this with pretend good intentions. Can you imagine the damage to society if they had actually intended this mess? They have lied to themselves and to the people. We have to crash and burn – that part is inevitable. Only when the economy turns down will we then argue over solutions.

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DC Sunsets

Look, politics is simply organized crime.

Political organization of society has grown massively, from a few percents to essentially 100% now over the last 150 years.

The heyday of this was 1913 to the 1960’s, and (basis USA) in the mid-1960’s they ran out of Other People’s Money (the money people would WILLINGLY part with, as taxes) so starting in the 1970’s they turned to the CREDIT CARD.

This worked because people appeared to GET RICH by acting as both borrower and lender. Gov’t and Corp’s borrowed, but they borrowed from the same people who counted those IOU’s as wealth.

IOU’s as wealth is STUPID beyond a tiny amount. That amount is a Pacific-Ocean-sized pool now.

It’s like lending to your neighbor, who throws lavish parties to which you are invited (and you enjoy!)

You have the fun, and think you’re getting wealthier EVERY TIME HE BORROWS MORE and gives you more of his IOU’s.

Yet when the day of reckoning arrives, you discover he’s penniless. All of your wealth evaporates in the blink of an eye.

People who are OWED money think they’re wealthy. They’re going to get stiffed.

DC Sunsets

Marx advocated changing people by force. His system was repudiated decades ago.

It is the Fabian Socialists who won. They have quietly changed people by STEALTH, gradually. We now live in a world where political systems run EVERYTHING, regulate EVERYTHING, threaten EVERYONE, and are all rapidly approaching a brick wall at 100 mph.

Who is owed?

Everyone. Everyone was suckered into getting on board this Fabian Socialist, politically-organized mutual suicide train.

What we all rightly fear is that when the cupboard doors are opened and only three of the millions of cans of beans people expect are there, a total war of all against all (created by politics, which is mostly bloodless conflict) will turn from bloodless to blood-saturated.

Everyone has been promised the same 3 cans of beans. Can we imagine the chaos and riots over laying hands on what little is left?

DC Sunsets

Third time is the charm.

2000’s top bottomed in 2002, and then rallied to new all time highs.
2007’s top bottomed in 2009, and then rallied to new all time highs.

I think 2015’s top will hit a low in 2016/17, rally NOT to new highs, and then fall into 2020-2022 to levels not remotely imaginable now.

The cupboard is bare.

This will be revealed when accounting scandal after accounting scandal rocks Wall Street.
When bonds (IOU-money) start hemorrhaging value and junk bond funds implode due to insolvencies.
When municipal bonds become the death of capital as cities, counties and even states effectively go bankrupt due to impossible-to-meet pension obligations.
When banks see their capital evaporate, and even mark-to-fantasy can no longer disguise their insolvency.
When the FDIC is hit with a tsunami of bank failures so large that cash withdrawals are halted, foreign wire transfers outlawed and bank-to-bank payment systems constrained to just “paying utilities.”
When bank bail-ins are ordered because the bank simply doesn’t have the depositor’s money to return.
When pension accounts and retirement savings are effectively seized, not to “bail out” Uncle Sam but as a reflection that the value, the wealth, the MONEY simply doesn’t exist, the CUPBOARD IS BARE, remember?

People’s balance-sheet (AKA abstract) wealth is nothing but a house of cards. It is an empty cupboard, whose emptiness is unrecognized simply because the cupboard door is closed.

When that door opens, and people can finally see there’s nothing there, the panic will be over. The bottom will be in.

That’s when TRULY stupid government tricks will occur. The worst of FDR’s stupidity came after 1932’s deflationary low.

Fiatman60
Fiatman60

Gotta love it DC!! That’s why governments HATE a gold backed currency. If they try to hold endless parties, it drains away their gold reserves pretty quickly, so that everyone can see they are/will be bankrupt. FRN’s on the other hand allow them to hold parties until someone sees there are trillions of FRN’s out there that are worthless!! BTW when I’m talking about “parties” I refer to the “Free Army” crowd.

Westcoaster
Westcoaster

Economy melting down in 3….2…..1. Admin stated yesterday in a comment that we’re probably looking at 6 mos to a year. I believe him.

Rife
Rife

Crony capitalism is worse than socialism. And what are trillion dollar bank bailouts, billions to Israel and other countries that hate and use us, revolving doors between gov’t and industry………come on!

Constman54

Rife: Crony Capitalism=Socialism. There is no difference. It’s all about confiscating my/your $$$ and “distributing” it to the “needy”. The “needy” corporation or the “needy” person. All as defined by the Gov’t.

Chris Webb
Chris Webb

Rife – crony capitalism is basically fascism which is just a subset of socialism.

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