Archive for July, 2010


I think I see a pattern in Keynesian economics.

Hans Hermann Hoppe does too.

Categories: Predictions

The last days of New York

Rocky Vega at Daily Reckoning summarizes Zero Hedge’s analysis of the financial position of the U.S. and finds it’s worse – much worse – than the final days of Rome, when the barbarians were actaully greeted by Romans as freedom fighters against an oppressive Emporer as the heathens broke down the gates.

A combination of crushing taxes against the farmer, currency debasement and a parasitical bureaucracy crushed the Roman spirit.  In the Weimar Republic the German citizenry started derisively referring to their debased currency as “jew confetti” – an early harbinger of the rise of the Nazi party.

What will we call the U.S. dollar when New York falls?

“Just another worthless paper currency issued by an inherently insolvent central bank.”

Categories: Predictions

Parasites populate until the pyramid perishes

I am continually amazed when people laugh at ‘conspiracy theories’ regarding Freemasonry, Illuminati and international Satanic socialist plans for a New World Order.  Of course these conspiracies are all true.

How do I know this?  Well, I don’t even need to know the details.  I know the dynamics of monopoly government, of banking and the life cycle of locust and mice plagues, so I already know all these ‘conspiracies’ are true.

Let me explain, taking this step-by-step.

First, we all know governments survive by collecting coercive taxes.  We also know this is theft. 

We also know that fractional reserve banking is economic parasitism. 

When banking is supported by a central bank, collusion between government and banks is inevitable.  In the words of Jorg Guido Hulsmann, the collusion is embedded in the very ‘rules of the game’.  

Now, if you accept that government and banking are fundamentally unnecessary, parasitic, illegitimate organisations, they have exactly the same dynamics as any criminal organisation – a need for absolute secrecy and loyalty, a belief that the members are ‘different’ or ‘special’ compared to the plebs, regular celebrations of their specialness, tests of courage and loyalty, a culture rife with hierarchy and intimidation, and an enforcement of the rules with fear, violence and intimidation.  In other words, a culture of rule-bound, mindless robots.

All criminal organisations – the Mafia, the Hell’s Angels, Gypsies, Freemasonry, International Socialism – all have the same superstitions, the same ‘conspiracies’, the same dynamics.  There is no difference because they are all parasitic organisations that steal, that take more than they give, that are self-consciously sociopathic, parasitic organisations.  Their members all have a common trait – they have all given up wanting to play by ‘universal’ rules, they have all given up winning ‘fair’, they have all accepted that stealing is the best way – the only way – they can survive and thrive.

I was amazed when a girlfriend who had gone out with a Rebels member said that the Rebels had many strict rules and you couldn’t be a member until you were 21.  And of course, you had to be a man.  And of course you had to either kill someone or rob someone or beat someone up before you could be  a member.  And of course you had to wear the right gear and get the right tattoos and get the right bike and say the right things and have the right chick and drink the right beer and ride the right way and………  well there were as many rules in the Rebels as there were in the local Freemason Lodge.  They were remarkably interchangeable.  Almost identical.

These ‘outlaws’ are amongst the most ‘conformist’, ‘orthodox’, ‘rule-bound’ ‘rigid’, ‘conventional’, ‘predictable’ groups on the planet.  Does anyone not know what they’re going to get when they go to a Rebels nightclub or a meeting of Freemasons?  Of course they do.  There are no surprises with these groups.  You’ll never get a member of the Rebels reciting Shakespeare and you’ll never get a Freemason meditating on Buddhist principles of selflessness.

There’s also a common problem with these organisations: they need to live near a compliant productive society in order to survive.  You never hear of a criminal organisation existing on a small Pacific Island with a few hundred neighbours.  The reason is obvious – with such a small population if you tried to have a large segment of the population engaged in criminal activities you would quickly end up with the population of Easter Island.  Zero.

Now, if you study the life cycle of parasites, you find an interesting dynamic.  They initially flourish in relatively ‘clean’ parasite-free environments.  Then the ‘clean’ environment gradually succumbs to the growth in parasites and gets overrun.  Then the parasites find there is no more virgin territory to conquer.  They panic – they have become so populous there is no fresh flesh to consume.  Then, out of desperation, they resort to cannibalism.  Then the population collapses, because the parasitic population, by definition, is not self-sustaining.

Exactly the same dynamic happens within human societies.  Initially, the Mafia flourishes in the alleys of Sicily.  Then they become so numerous the returns on their criminal activities suddenly diminish – everyone on the island is either a drug trafficker who needs to be paid or a drug addict who can’t find the money to pay the dealers.  Then the Mafia has to search for fresh flesh.

Similarly, bankers have eaten the West.  They need fresh flesh.  They know they can’t survive on their own.  They need a productive society to feed off.  The opportunities for the cancer to keep growing are diminishing simply because so much of the human population is already infected.

Let me explain the last point.  Your are in Sicily.  You’re a young man.  You want to do the right thing.  But you see around you only three kinds of men: Rich drug trafficking Mafia members, or drug addicts or pathetic old men afraid for their lives, cowering in fear.  The best women go with the Mafia members – they know where their best security lies.  What do you do?

Well, you either try to leave or you become a Mafia member yourself. 

Similarly you are in New York.  You see the ‘successful’ people appear to be bankers and lawyers.  Criminals and those paid by the criminals to stay out of jail.  Everyone else is either in debt or bankrupt or unemployed or on a government paycheck, afraid of the bankers and lawyers.

What do you do?

Do you see how Evil ‘bifurcates’ society?  You have to make a subtle but nevertheless essential, life-changing decision.  Do I succumb to Evil and accept it, or do I fight an impossible fight and die for my principles – or do I run away and simply leave?

Women can generally stay and succumb. 

Good men generally try to run.

The rest are eaten or become cannibals.

It’s as simple – and as obvious – as that.

Categories: Predictions

The case for a “\” shaped Depression

MISH again nails it with his prediction of an “L”-shaped recession, which is now going mainstream with the likes of “respectable” (but ohhh so slow) Nouriel Roubini joining the bandwagon.

I’ve been predicting this for yearsAnd years.

The only difference is that I’ve been predicting a “\” shaped depression, not an “L” shaped recession.  Things will not stabilise.  They will continue to get worse, until the debt is written off.  And that won’t happen until anarchy reigns.  The sooner the better in my view…

Categories: Predictions

Gold and Silver coming back to compete with worthless fiat paper

You heard it here first.

Gold is real money.  The market will win out.  Eventually.

Categories: Predictions

MISH opts for continued deflation. And so do I.

MISH continues to argue that credit plays the dominant role in determining prices.  As credit growth collapses because tapped out, bankrupt, unemployed consumers can’t borrow, deflation must necessarily be on the cards, because as credit growth stalls, the ‘true’ money supply shrinks, people’s personal sheets shrivel up too and so they have less to borrow – and spend.  No matter what the govt does short of Weimar Republic-style hyperinflationary handouts, it cannot replace the gigantic hurricane of private debt growth that occurred over the last 30 years.  It’s over.  Simple as that.

By the way, it was amusing to see his habit of producing random typos hasn’t stopped, despite his attempt to spell-check.  According to MISH, ‘stick prices’ are heading down this year, due to deflationary pressures.  For those of you who want to buy ‘sticks’, I’d hold off for a few months…

Categories: Predictions 2010


Paul Krugman never fails to disappoint.  Yet again, right on cue, he screams again for the government to spend, spend, spend and the Fed to do SOMETHING to stoke inflation.   That ‘something’ isn’t defined.  That’s understandable, given interest rates are already artificially set at (virtually) zero for raped and exhausted savers, gold is above US$1,200 and trillions of dollars in generation-destroying debt have been pointlessly wasted on toxic heroin stimulus packages, all to absolutely ZERO effect.

Let’s check out Krugmaniac’s latest insane rant and break it down (the maniac is in normal font, I’m italicised in square brackets):

Today, Mr. Bernanke is the Fed’s chairman — and his 2002 speech reads like famous last words. We aren’t literally suffering deflation (yet). But inflation is far below the Fed’s preferred rate of 1.7 to 2 percent, and trending steadily lower; it’s a good bet that by some measures we’ll be seeing deflation by sometime next year. Meanwhile, we already have painfully slow growth, very high joblessness, and intractable financial problems. [Are we supposed to think these are connected?  These couldn’t be the direct effect of years of insanely loose monetary policy, could they?]  And what is the Fed’s response? It’s debating — with ponderous slowness — whether maybe, possibly, it should consider trying to do something about the situation, one of these days. [They took interest rates to zero, gave trillions to the banks, swapped every conceivable piece of toxic paper trash for treasuries, poured trillions into the completely rigged international currency swap ‘market’, arbitrarily decided to save AIG and Bear Stearns but killed Lehman Brothers, corruptly tried and succeeded in influencing financial reform legislation, got one of its own – shady shyster Geithner – to do its bidding within Treasury, and doubled (doubled!) the monetary base in a couple of months, which has never been done in modern history by any major economy.  That’s not fecklessness.  That’s MADNESS.  Especially if, after all those trillions spent, you end up exactly where you started.  Krugman, you are not just an economic illiterate.  You need a straightjacket, before you do humanity any more damage.]

The Fed’s fecklessness  [madness, more like it]  is, to be sure, not unique  [true, they’ve been lots of public officials who went insane with power.  Pol Pot.  Mao.  Mao’s crazy wife.  Nearly every Emperor and King in human history.  Most leaders of the 20th century.  In fact, it’s difficult to recount a leader who didn’t go mad.  The only thing that saved us from these madmen in the good old days was that, without modern mass-killing technology, these power-crazed psychos couldn’t kill most of the population out of sheer spite.  They could only take out those close to them, in the major capital cities.  Now, sadly, that’s no longer any protection from people like Krugman]. It has been astonishing and infuriating,  [you can say that again] as the economic crisis has unfolded, to watch America’s political class defining normalcy down [No, what was infuriating was seeing the Wall Street sex party go on for such an obscenely long time – almost two decades – unprecedented in modern times, and all caused by the Fed’s insane artificially low interest rate policy. END THE FED.]. As recently as two years ago, anyone predicting the current state of affairs (not only is unemployment disastrously high, but most forecasts say that it will stay very high for years) would have been dismissed as a crazy alarmist [‘Crazy’ Austrians 1, rest of the econ profession 0]. Now that the nightmare has become reality, however [surprise, surprise] — and yes, it is a nightmare for millions of Americans [the ‘nightmare’ for millions of Americans was made on Wall Street with counterfeiting wealth transfers over the last 30 years, you jerk] — Washington seems to feel absolutely no sense of urgency. [What was TARP? A summer picnic?  Wasn’t Paulson putting a ‘big bazooka’ to Congress’s head and threatening to shoot?  Didn’t the whole corrupt Bush Adminstration issue repeated threats that if this trillion dollar TARP bailout package didn’t pass in its stinking entirety the whole incestuous corrupt banking system would collapse, taking clueless middle America with it?  Were they just joking?]

Are hopes being destroyed, small businesses being driven into bankruptcy, lives being blighted? Never mind, let’s talk about the evils of budget deficits.  [A couple of trillion, actually.  Unprecedented in human history.  Completely unsustainable.  Never mind.]  Still, one might have hoped that the Fed would be different. For one thing, the Fed, unlike the Obama administration, retains considerable freedom of action. [You’d better believe it!  It runs the government.  Has since 1913.  You could call that ‘independence’ – in a way.  Or complete, absolute, unfettered Satanic corruption.] It doesn’t need 60 votes in the Senate [you can say that again]; the outer limits of its policies aren’t determined by the views of senators from Nebraska and Maine [you can say that again… oh…. and I agree with Krugman’s implicit statement – democracy doesn’t work]. Beyond that, the Fed was supposed to be intellectually prepared for this situation [True, but it screwed up.  Badly.  And that’s despite all the economists and complex equation-driven models and ‘clever’ Nobel Prize winning advisors.  Ever wonder why they screwed up so badly, Krugmaniac?  Ever thought that, perhaps, it’s the institution of central banking itself?  Never mind].  Mr. Bernanke has thought long and hard about how to avoid a Japanese-style economic trap, and the Fed’s researchers have been obsessed for years with the same question [Yes, but that only proves they are incompetent idiots and should resign, not that these idiots should ‘do’ anything more than they already have done to destroy the economy further]. But here we are, visibly sliding toward deflation — and the Fed is standing pat [Huh? I wouldn’t call counterfeiting in the trillions and bailing out every corrupt sleazy shyster-banker between 1st Avenue and 5th Avenue ‘standing pat’]. What should it be doing? [Shooting itself in the head, that’s what it should be doing] Conventional monetary policy, in which the Fed drives down short-term interest rates by buying short-term U.S. government debt, has reached its limit [Duh, it’s called the Keynesian Endpoint, idiot.  Any Austrian knows that.  Mises talked about this in 1913If anything we’ve regressed…] those short-term rates are already near zero, and can’t go significantly lower [What do you do now, sucker?]. (Investors won’t buy bonds that yield negative interest, since they can always hoard cash instead) [F*cking genius.  You need a Nobel Prize to work out that if you rob people, they won’t like it].  But the message of Mr. Bernanke’s 2002 speech was that there are other things the Fed can do. It can buy longer-term government debt [QE 2 Infinity. It can buy private sector debt [a.k.a BAILOUT CITY HERE WE COME.  I WANT MY OWN PERSONAL BAILOUT TOO!  How the Hell would the Fed decide who to bailout?  On what criteria?  This is MADNESS]. It can try to move expectations by announcing that it will keep short-term rates low for a long time [Isn’t it already signalling that? Do you see interest rates going up anytime soon?  Does anyone?]. It can raise its long-run inflation target [QE 2 Infinity], to help convince the private sector that borrowing is a good idea and hoarding cash a mistake [Krugman meet GonoHe made hoarding cash a mistake too – by destroying the currency and forcing peasants back to barter.  That’s economic ‘science’ – forcing people back to barter?]. Nobody knows how well any one of these actions would work [No, but they know they’ll all fail]. The point, however, is that there are things the Fed could and should be doing, but isn’t. Why not? [Because it’s not that politically suicidal and doesn’t want to go down the exact path of Zimbabwe, you insane cliff-diving-without-a-parachute Keynesian zealot] After all, Fed officials, like most observers, have a fairly grim view of the economy’s prospects. Not grim enough, in my view: Fed presidents, who make forecasts every time the committee that sets interest rates meets, aren’t taking the trend toward deflation sufficiently seriously [No, but Gono and Rudolf von Havenstein did.  Look what ‘taking deflation seriously’ did for them]. Nonetheless, even their projections show high unemployment and below-target inflation persisting at least through late 2012. So why not try to do something about it? [Krugman meet Gono]  The closest thing I’ve seen to an explanation is a recent speech by Kevin Warsh of the Fed’s Board of Governors, in which he declared that doing what Mr. Bernanke recommended back in 2002 risked undermining the Fed’s “institutional credibility.” But how, exactly, does it serve the Fed’s credibility when it fails to confront high unemployment, while consistently missing its own inflation targets? [Krugman meet Rudolf von Havenstein]  How credible is the Bank of Japan after presiding over 15 years of deflation? [Well, after following Keynesian prescriptions on how to ‘cure’ a recession with even more debt and deficit spending, the Bank of Japan has zero credibility on economic management and is the butt of many jokes – but that’s proof positive that Keynesian deficit spending is MADNESS, not that we should follow Japan into the Keynesian abyss.  Idiot.]  Whatever is going on, the Fed needs to rethink its priorities, fast. Mr. Bernanke’s “it” isn’t a hypothetical possibility, it’s on the verge of happening. And the Fed should be doing all it can to stop it. [Krugman, you are nuts.  Why not add a few zeros to all the Federal Reserve notes and threaten to add $1,000,000 to everyone’s bank account?  That would certainly increase everyone’s inflation expectations.   I wonder what that would do to the price of gold?]

We are freaking doomed with idiots like this in charge of our public policy.  How this idiot got a quasi-Nobel Prize is beyond me.  How we can possibly be saved from catastrophe when quasi-socialist charlatans have taken control of public policy is beyond me.  How anyone can draw any conclusion from the present mess other than the most blindingly obvious one – that years of government profligacy and debt have caused the present crisis – and instead advocate more of the same toxic ‘medicine’ is beyond me.  Keep bleeding the patient, Krugman.  Perhaps you like the taste of blood.

Categories: Predictions