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BOOM EDITORIAL THIS WEEK
The delusion of control, driven by ego and hubris, sometimes develops towards extremes of human behaviour. John Maynard Keynes made this insightful comment in 1936.
“Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back”
Regular readers will know that BOOM is not a fan of any one economic theory or “school” of thought. BOOM tries to be relentlessly pragmatic.
This week’s theme is the extreme human behaviour that can occur when human hubris and ego decide that it can solve all manner of problems that beset a nation-state. History gives us many examples.
Today, we have the example of the so-called “World Economic Forum” which met in Davos last week. It pretends to be a global think tank. It assumes the mantle of authority. It sounds like a Government initiative when it’s s not. It promises all sorts of “solutions” to “problems”. In the spirit of propaganda, it offers slogans such as “The Great Reset”, and “You will own nothing and you will be happy”. It describes itself in glowing terms which some critics have described as lies:
- “The World Economic Forum is the International Organization for Public-Private Cooperation”,
- “It is independent, impartial, and not tied to any special interests”,
- “Moral and intellectual integrity is at the heart of everything it does”,“The institution carefully blends and balances the best of many kinds of organizations”.
Such grand statements seduce many participants to indulge themselves in discourse that is always pretending to advance “the Greater Good”. However, historical events can show us that the road to Hell is, indeed, paved with such good intentions.
CENTRAL CONTROL INEVITABLY LEADS TO TYRANNY. History can teach us many lessons. Those who do not learn from history are doomed to repeat it.
The Mental Deficiency Act of 1913 was an act of the Parliament of the United Kingdom that created provisions for the institutional management of people deemed to be “feeble-minded” and “moral defectives”. Its precursor was The Idiots Act of 1886 which made the legal distinction between “idiots” and “imbeciles”.
Winston Churchill spoke of the need to introduce compulsory labour camps for “mental defectives” in the House of Commons in February 1911. In May 1912, a Private Members’ Bill entitled the “Feeble-Minded Control Bill” was introduced in the House of Commons, which rejected sterilisation of the “feeble-minded” but provided for registration and segregation. Some parliamentarians were bitterly opposed to the Bill and called it the “Feeble-Minded Bill”.
The Mental Deficiency Act established the “Board of Control for Lunacy and Mental Deficiency” to oversee the implementation of provisions for the care and management of four classes of people,
- Idiots
- Imbeciles, “whose defectiveness does not amount to idiocy”
- Feeble-minded persons, “whose weakness does not amount to imbecility”, and
- Moral Imbeciles
This was the British Empire at the height of its colonialist power. Under the operation of the Mental Deficiency Act, 65,000 British people were placed in institutional settings. Thankfully, they were not sterilised or murdered and, surprisingly, the Act remained in effect until it was repealed by the Mental Health Act in 1959.
Do-gooders in the United States were watching closely. The Eugenics Record Office was founded in New York State in 1910 by Harry Laughlin (a teacher), Charles Davenport (a biologist interested in genetics), and Dr John Kellogg (a famous doctor). Its mission was to collect information on the ancestry of the American population, to produce propaganda in order to fuel the eugenics movement, and to promote the idea of race betterment; all for “the Greater Good”, of course.
It was funded by Andrew Carnegie’s ‘Carnegie Institute’, Mary Harriman, and the Rockefeller Foundation. Andrew Carnegie was reputedly the richest man in the world at the time as the founder of US Steel and Mary Harriman was reputedly the richest woman in the United States from a railroad dynasty. The Rockefeller Foundation was founded in 1906 by John D. Rockefeller Senior who was also regarded as the richest man in America.
The wealthy seem drawn to central planning for the future possibly because it satisfies their thirst for yet more power. As we all know, “power corrupts and absolute power corrupts absolutely”. But wealth can only get you a better standard of living which, in itself, is a temporary victory. After all, the wealthy can only eat three meals, sleep on one bed, and be idle for 24 hours a day.
Power, however, allows the wealthy to feel good about their thoughts and actions. It boosts their egos and also allows them to virtue signal their actions “for the greater good”. Sadly, virtue signalling has now become the major disease of prosperous, modern, advanced economies, afflicting many millions of people all over the planet, not just the wealthy.
During the 1920’s and early 1930’s, 26 States of America adopted similar laws to the UK Mental Deficiency Act. However, the US Laws went further and allowed sterilisation by the State. Harry Laughlin was especially interested in drafting such compulsory sterilisation legislation for the “unfit” in order to prevent them from reproducing. Such laws were adopted by 26 States and it is estimated that 70,000 “defectives” were sterilised compulsorily. Laughlin was rewarded for his efforts with a University Medal from admirers at the Nazi-controlled Heidelberg University in Germany in 1936.
The Law for the “Prevention of Genetically Diseased Offspring”, known as the “Sterilisation Law”, was a statute in Nazi Germany enacted on July 14, 1933, which allowed the compulsory sterilisation of any citizen who in the opinion of a “Genetic Health Court” (Erbgesundheitsgericht) suffered from a list of alleged genetic disorders, many of which were not, in fact, genetic.
The German law had a close resemblance to the American Model “Eugenical Sterilization Law” developed by Harry Laughlin. History reveals that the Nazis essentially copied what was already happening in the US and the UK. Canada, Denmark, and Switzerland also had similar laws.
Between 40,000 and 80,000 persons were sterilised in the first full year alone in Germany. By the end of the Nazi regime, over 200 “Genetic Health Courts” had been created, and under their rulings over 400,000 people were sterilised against their will. Along with the law, Adolf Hitler personally decriminalised the abortion of fetuses having “racial or hereditary defects”, while the abortion of healthy “pure” German, “Aryan” unborn remained strictly forbidden.
Just five years later, in 1938, the German Nazi Government moved further down the slippery slope from sterilisation to the murder of their children in the Aktion T4 Program. This was before the famous death camps were established. German doctors were authorised to select patients “deemed incurably sick” and then administer to them a “mercy death”. In October 1939, Adolf Hitler signed a “euthanasia note”, backdated to 1 September 1939, which authorised his physician Karl Brandt and Reichsleiter (National Leader) Philipp Bouhler to begin the killing.
The killings took place from September 1939 until the end of the war in 1945. It is estimated that a total of 275,000 to 300,000 people were killed in psychiatric hospitals in Germany and Austria, occupied Poland, and the Protectorate of Bohemia and Moravia (now the Czech Republic). German doctors were heavily involved in this killing program and many were staunch supporters of the Nazi government.
All this was done for “the greater good”, of course.
“PUBLIC HEALTH” PLANNERS – For those who do not know or who may have forgotten, central planning is always a feature of totalitarian, tyrannical communist, or fascist governments. Such organisations claim self-appointed power over others, usually by force and the threat of further, future violence. That power usually has no historical, consensual, or democratic root. It is a claim, pure and simple, of power for power’s sake.
The people who claim it are convinced of their right to do so and they almost always claim that “it’s for the greater good”. Righteousness knows no bounds when a sociopath, or a group of sociopaths, perceive an opportunity to achieve power over other, less aspirational fellow human beings.
A modern example of this can be found in the so-called “Public Health” arena. Over the last three years, the world has been plunged into bizarre, extreme social and pharmaceutical experimentation based upon the lie that a “horrible new virus” was causing millions to die “horrible” deaths. We now know that this was not true. But, in keeping with historical precedent, central “health” committees took many nations to the brink of madness.
Social experiments usually begin with relatively acceptable decisions. In Nazi Germany, for instance, they began by claiming a national interest in nature and self-sufficiency. Camping and walking in the great outdoors were encouraged along with an interest in farming and other agricultural pursuits. They called it “Blood and Soil”. However, this soon morphed into the claim for “Lebensraum” (more “living space”) for the German volk (folk). And that subsequently translated into a desire for more land (from other surrounding nations, of course). World War Two was the result in which 60 million people died. Who knows where the Cult of the Covidians will take us next?
BILLIONAIRES IN DAVOS
THE SLIPPERY SLOPE TOWARDS TYRANNY — “CLIMATE ACTIVISM LEADS TO POVERTY” – YOU ARE THE PROBLEM, NOT THE SOLUTION. The word “cabal” is generally defined as a group of people who are united in some close interest, usually to promote their private views in an ideology, a state, or another community, often by intrigue and usually without the knowledge of those who are outside their group. The term carries negative connotations of political purpose, conspiracy, and secrecy. It can also refer to a secret plot or a clique to secretly conspire. That is how Wikipedia defines it. Others define it in simpler terms as “a secret political clique or faction, a secret intrigue”.
In Davos, Switzerland, they call themselves the “World Economic Forum” (WEF). All last week, the unelected, self-appointed Davos cabal of central planners flew in their corporate and private jets to meet yet again with their leader, Klaus Schwab.
The name suggests legitimacy and expertise. It suggests representation. It claims global significance. And the word “forum” implies a vigorous debate. None of these attributes are applicable.
The WEF is a private meeting by invitation only organised by a private entity. The stated mission is, “improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agenda “. Wikipedia describes its intention as, “stating that the world is best managed by a self-selected coalition of multinational corporations, governments and civil society organizations (CSOs).” That sounds ominously close to the Italian dictator, Benito Mussolini’s, definition of Fascism as: “the merger of State and corporate power”.
Javier Milei, the new President of Argentina stated, “The West is in danger” and the danger comes from leaders who are “co-opted by a vision of the world that inexorably leads to socialism and thereby to poverty”. He also said that “climate activism leads to poverty”. “I am here to tell you that collectivist experiments are never the solutions to the problems that afflict the citizens of the world. Rather, they are the root cause” … “If you attack private property, the only possible fate is poverty” … “The State is not the solution. The State is the problem itself.”
Milei challenged socialism with which Argentina has experimented for almost 100 years by saying, “It should never be forgotten that socialism is always and everywhere an impoverishing phenomenon that has failed in all countries where it’s been tried out.” “It’s been a failure economically, socially, culturally, and it also murdered over 100 million human beings,” he said. Klaus Schwab would have been shocked. After all, he has promised a socialist (or fascist?) future in which “You will own nothing and be happy”.
Another invited speaker, Kevin Roberts, President of the US conservative think tank, The Heritage Foundation, spoke to the globalists on Thursday and he told them forthrightly “You are part of the problem, you are not the solution.”
He went on to say “I will be candid ….. every single person …. needs to compile a list of everything that’s ever been proposed at the WEF and object to all of them wholesale.”
He referred to the “power of the unelected bureaucrats” and he said “the elites subject everyday people to guilt trips over the “existential threat” of climate change, while they hypocritically fly around in private jets”.
BOOM does not like to make predictions. However, this is an exceptional turn of events. Thus, BOOM can confidently predict that neither Milei nor Roberts will be invited back to future WEF meetings. How dare they speak the Truth when lies are the common currency?
Kevin Roberts went on to say “The infamous hypocritical self-avowed Marxists, private-jet environmentalists, and genocide-adjacent humanitarians want to hear how they can “rebuild trust” with everyday Americans against whom they have weaponized their institutions.”
Surprisingly, these two speeches were reported in the mainstream media all over the world. So, perhaps the “Worm has finally turned?” It would appear that Davos is no longer a fashionable place to be seen or heard and Klaus Schwab may well have been transformed into a liability for any corporation or government. Run Rabbit Run … away from Davos and the WEF.
RUN RABBIT RUN
Run Rabbit Run was a popular song during World War 2. The songwriters changed the words to poke fun at the Germans. The song became “Run Adolf, Run Adolf, run, run, run…”.
Perhaps it should be re-released with new words “Run Rabbit, Run Rabbit, run, run, run … away from Klaus and his dreams of central control”.
CHINESE STOCKS ARE FALLING. The Chinese stock markets are a topic of discussion at present. The Shanghai Stock Exchange Composite Index has fallen by 24% over the last two years. The Hong Kong Hang Seng Stock Index has fallen by 50% over three years. These are significant falls. However, BOOM is looking for a turnaround in investor sentiment here.
So, if the upswing in external trade continues, then we should soon see a rebound in the Chinese economy and a subsequent rebound in stock prices. Low price-earnings ratios around 10 support this view. It is generally held that P/E Ratios below 10 are “bargain territory”.
Technically, there are no signs yet of a turnaround happening in the stock charts. However, BOOM is expecting a base to develop soon. Watch closely.
TESLA AND LONDON BUSES in London last week saw a double-decker electric bus burst into flames. Three fire engines and 15 men battled to subdue the blaze. The entire fleet of electric buses was taken off the road as a precaution after this event. That would mean a loss of over 1,000 buses, a sobering thought.
Tesla shares got hit again last week, falling by 3%. They have been in a downtrend for the last two years and that downtrend now seems recently confirmed. There is some buyer support around $190. However, if that level is broken then stronger falls may be coming.
Tesla is continuing to drop prices for their cars to raise sales numbers. However, this may be counterproductive. It may put prospective buyers off as they wait for further price falls. And competition is growing in the electric car sector, especially from German and Chinese manufacturers.
Tesla’s market capitalisation has now fallen below US$700bn. At the close of trade last week, it fell to $674bn. Its highest record highest market valuation ever was $1.23tn in November 2021.
BOOM’s QUANTITATIVE BOOSTING FOR THE PEOPLES MONEY EXPLAINED: https://boomfinanceandeconomics.wordpress.com/2019/12/15/boom-as-at-15th-december-2019/ AND BOOM’s Perfect Economy: https://boomfinanceandeconomics.wordpress.com/2020/01/18/boom-as-at-19th-january-2020/
COMING NEXT:
- Letter from South Africa – ‘Easy Living’ – Saturday, January 27, 2024
- The Financial Jigsaw Part 2 – Chapter 3 – ‘Propaganda’– Saturday February 3, 2024
In economics, things work until they don’t. Make your conclusions, and do your research. BOOM does not offer investment advice.
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BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY: LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans). https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy. Watch this short 15-minute video and see how Professor Richard Werner brilliantly explains how global banking systems really work.
In 2014, Richard Werner provided the first empirical evidence that banks create credit out of thin air. They do this whenever they issue a loan or, more specifically, purchase a promissory note. This is a walk-through of exactly how they do it.
Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.
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LOL! ” moral imbeciles”. We’re fucking lousy with those sons of bitches the world over!
Peter, I fear the bigger issue is going to be self reliance in all areas, which may include having to do things once done for us.
I do know how to do many things, I hope they are valuable tomorrow.
They will be my friend – but most are so focused on surviving at present; it is only when the food trucks stop that they will wake up – regrettably too late:https://austrianpeter.substack.com/p/the-financial-jigsaw-part-2-food?utm_source=post-email-title&publication_id=762792&post_id=82277588&isFreemail=false&utm_medium=email
AND – they run on diesel – forget Net ZERO – we are at a tipping point and the Elites know it so they are building bunkers LOL
Here’s some real advice: https://www.theorganicprepper.com/how-to-survive-world-war-3-prepping-for-an-off-shore-conflict/