Tag Archives: central banks

Liberation Is Unprofitable

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By Charles Hugh Smith

Source: Of Two Minds

12 examples of how liberation is not profitable and therefore it must be marginalized, outlawed, proscribed or ridiculed.

If we had to summarize the sickness of our economy and society, we could start by noting that liberation is unprofitable, and whatever is not profitable to vested interests is marginalized, outlawed, proscribed or ridiculed. Examples of this abound.

Liberation from digital communication servitude is not profitable. Don’t have a smart phone on 18 hours a day, every day? Loser! Luddite! Liberation from digital communication servitude is not profitable, therefore it is ridiculed.

Liberation from debt is not profitable. Only the wealthy can afford to buy a vehicle without debt, a home without debt or a university education without debt. For everyone else, liberation from debt is not an option, because debt is highly profitable to our financial Overlords and the politicos they buy/own.

This Is How Little It Cost Goldman To Bribe America’s Senators (Zero Hedge)

Liberation from political elites is not profitable. Dependence on the state for monthly payments binds the recipients to the political elites that control the money and payments, and to the financial elites who control the political elites.

Liberation from the staged, soap-opera political drama of elections is not profitable. Election advertising generates staggering profits for media companies, and the ceaseless nurturing of fear, resentment and indignation fuels acceptance of centralized power and control.

Vote all you want. The secret government won’t change.

Liberation from the consumerist mindset is not profitable. Aspirational purchases in the pursuit of appearances are the most profitable of all spending; re-use, repair and informal peer-to-peer sharing are all intrinsically unprofitable.

Narcissistic Consumerism and Self-Destruction (October 20, 2012)

Liberation from the tyranny of central banks is not profitable. Our entire financial system is built on the simple dynamic that everyone is forced to use money issued by the central bank (Federal Reserve) to its member banks and their financier cronies.

Money that is decentralized and not issued by central banks is not profitable.

Common-sense, minimal regulations are not profitable. Regulations feed government fiefdoms and the revolving-door spoils system between the state and private industry, and erect formidable barriers to new competitors. As a result, over-regulation is immensely profitable.

Regulation Run Amok—And How to Fight Back

The ability to think independently is not profitable. The control mechanisms that keep the various classes of serfs in permanent servitude all depend on a dumbed-down populace that has been stripped of the ability to think independently by propaganda, group-think, medications, the education industry and lifelong dependency on the state.

Anti-Intellectualism and the “Dumbing Down” of America

An economy/society without corruption is not profitable. Buying favors, cronyism and cartel control of pricing are the primary sources of corruption. Cartels and the auctioning of favors are highly profitable to politicos and the vested interests who control the tollways of finance, political influence and social mobility.

America’s Main Problem: Corruption

Degrowth is not profitable. Needing fewer, quality things that last for decades is not profitable. Reparing things for nearly-free is not profitable. Giving stuff away to others for free is not profitable. Making do with what you have is not profitable.

Degrowth, Anti-Consumerism and Peak Consumption (May 9, 2013)

A scarcity of stress and anxiety is not profitable. Stress, anxiety and financial insecurity are all highly profitable, as these drive profitably addictive behaviors such as going deep into debt, shopaholic binge buying, multiple anti-anxiety/anti-depression medications, costly therapy and various forms of self-medication.

The Silent Epidemic in a Broken, Deranged System: Stress (April 18, 2013)

Opting out is not profitable. Opting out of debt-serfdom and the burdens of being a tax donkey is not profitable to vested interests or the state. Adopting self-reliance and low-cost/low-impact living and opting out of the status quo culture of consumerism, debt and complicity with a parasitic, exploitive cartel-state Aristocracy/ Plutocracy/ Oligarchy/ Kleptocracy (take your pick–it’s still the same rapacious Elite whatever name you choose)–is not profitable.

Tune In, Turn On, Opt Out (May 17, 2013)

 

Why Has Classical Capitalism Devolved to Crony-Capitalism?

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By Charles Hugh Smith

Source: OfTwoMinds.com

Here is the quote that perfectly captures our era: “People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.” (John Kenneth Galbraith) The trick, of course, is to mask the unspoken second half of of that statement: everybody else gets destroyed along with the Elites when the system implodes.

Union pension funds: toast. Government employees’ pension funds: toast. 401Ks: toast. IRAs: toast. The echo-bubble in housing: toast. The Fed’s favorite PR cover to cloak the enrichment of their financier cronies, the wealth effect:toast.

The primary tool the Elites use to mask the risk of complete destruction is magical thinking–specifically, that “given enough time, the system will heal itself.”

That’s rich, considering that the Elites’ primary tool of avoiding destruction is crippling the market’s self-healing immune system: price discovery. Thanks to ceaseless interventions by central banks, the price discovery mechanism has been shattered: want to know the price of risk? It’s near-zero. Yield on sovereign bonds? Near-zero. And so on.

Prices have been so distorted (the ultimate goal of Central Planning everywhere, from China to the EU to Japan to the U.S.) that the illusion of stability is impossible without more intervention.

This leads to two self-liquidating dynamics: diminishing returns (every intervention yields less of the desired result) and the Darwinian selection of only those money managers who believe risk has been vanquished.

Everyone who pursues prudent risk management has either been fired or saw the writing on the wall and exited stage right. So the only people left at the gaming tables of the big institutional players are those individuals who are genetically incapable of responding appropriately to rising risk. Those who did have long been fired for “underperformance.”

So how did classical free-market capitalism become state-cartel crony-capitalism, a Ponzi scheme of epic proportions that is entirely dependent on ceaseless central bank perception management and interventions on a scale never before seen?

We can start with these six factors:

1. Those who control most of the wealth are willing to risk systemic collapse to retain their privileges and wealth. Due to humanity’s virtuosity with rationalization, those at the top always find ways to justify policies that maintain their dominance and downplay the distortions the policies generate. This as true in China as it is in the U.S.

2. Short-term thinking: if we fudge the numbers, lower interest rates, etc. today, we (politicians, policy-makers, money managers, etc.) will avoid being sacked tomorrow. The longer term consequences of these politically expedient policies are ignored.

3. Legitimate capital accumulation has become more difficult and risky than buying political favors. Global competition and the exhaustion of developed-world consumers has made it difficult to reap outsized profits from legitimate enterprise. In terms of return-on-investment (ROI), buying political favors is far lower risk and generates much higher returns than expanding production or risking investment in R&D.

4. The centralization of state/central bank power has increased the leverage of political contributions/lobbying. The greater the concentration of power, the more attractive it is to sociopaths and those seeking to buy state subsidies, sweetheart contracts, protection from competition, etc.

5. Any legitimate reform will require dismantling crony-capitalist/state-cartel arrangements. Since that would hurt those at the top of the wealth/power pyramid, reform is politically impossible.

6. Understood in this light, it’s clear that central bank monetary policy—zero-interest rates, asset purchases, cheap credit to banks and financiers, QE, etc.—is designed to paper over the structural problems that require real reform.

Japan is a case in point: the Powers That Be in Japan have put off real reforms of the Japanese economy and political system for 25 years, and they’ve enabled this avoidance by pursuing extremes of fiscal and monetary policy that have eroded the real economy and created long-term structural imbalances.

In this 24 minute video Gordon T. Long and Charles Hugh Smith discuss through the aid of 17 slides the rapid advancement of Crony Capitalism in America. The facts are undeniable, but why is it becoming so obvious and undeniable? Why is it accelerating without any apparent ‘checks and balances’? Where have the safeguards against this happening gone?

The Real Reasons for War

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Bev Conover, editor and publisher of Intrepid Report, just posted an important op-ed (in preparation for Obama’s war speech tomorrow) which dismantles the alleged moral arguments for war and provides a list of more likely reasons and the various groups who would benefit. Among the usual suspects:

  • Western Central Banks
  • Weapons Contractors
  • Energy Corporations
  • Geopolitical Allies Saudi Arabia and Israel
  • Powerful Elites

Via: Intrepid Report:

Then there is the matter of the red line, which Obama claimed, during last week’s visit to Sweden, “I didn’t set a red line. The world set a red line. The world set a red line when government’s representing 98 percent of the world’s populations said the use of chemical weapons is abhorrent.” But he said last year, “We have been very clear to the Assad regime, but also to other players on the ground, that a red line for us is we start seeing a whole bunch of chemical weapons moving around or being utilized, That would change my calculus. That would change my equation.” It’s hard keeping the lies straight, isn’t it?

Yes, the use of chemical weapons is abhorrent. The US should know as it’s used them eight times and, while not chemical weapons, used munitions coated with toxic depleted uranium Serbia, Iraq and Afghanistan, and dropped two nuclear bombs on Japan. (See 10 Chemical Weapons Attacks Washington Doesn’t Want You to Talk About)

So what are all the lies about the need for illegally attacking Syria, possibly setting the whole Middle East aflame or even starting World War III (or IV, depending on how you count) about? It’s about the elephants in the room they don’t want you to see.

Who are the elephants? One elephant is the Western banksters who profit from every war, regardless of whether it’s a win, lose or draw. The banksters make money from the loans they give to armament manufacturers and contractors who sell the necessary support supplies to the military. The banksters also have to make sure the US dollar stay as the world’s reserve currency.

– See more at: http://www.intrepidreport.com/archives/10770#sthash.4o6514Xe.dpuf

Then there is the matter of the red line, which Obama claimed, during last week’s visit to Sweden, “I didn’t set a red line. The world set a red line. The world set a red line when government’s representing 98 percent of the world’s populations said the use of chemical weapons is abhorrent.” But he said last year, “We have been very clear to the Assad regime, but also to other players on the ground, that a red line for us is we start seeing a whole bunch of chemical weapons moving around or being utilized, That would change my calculus. That would change my equation.” It’s hard keeping the lies straight, isn’t it?

Yes, the use of chemical weapons is abhorrent. The US should know as it’s used them eight times and, while not chemical weapons, used munitions coated with toxic depleted uranium Serbia, Iraq and Afghanistan, and dropped two nuclear bombs on Japan. (See 10 Chemical Weapons Attacks Washington Doesn’t Want You to Talk About)  So what are all the lies about the need for illegally attacking Syria, possibly setting the whole Middle East aflame or even starting World War III (or IV, depending on how you count) about? It’s about the elephants in the room they don’t want you to see.

Who are the elephants? One elephant is the Western banksters who profit from every war, regardless of whether it’s a win, lose or draw. The banksters make money from the loans they give to armament manufacturers and contractors who sell the necessary support supplies to the military. The banksters also have to make sure the US dollar stay as the world’s reserve currency.

Read the complete op-ed here: http://www.intrepidreport.com/archives/10770

If a U.S. attack on Syria is supposed to be a response for Assad gassing his own people on 8/21 as claimed, then why were U.S. and allied warships placed off the Syrian coast before that date? Michel Chossudovsky provides analysis and commentary on the pattern and timeline of weapons transports at Global Research:

If the chemical weapons attack is a justification for intervening, why was the order to launch an R2P “humanitarian” naval operation against Syria decided upon “Prior” to August 21? Was there advanced knowledge or intelligence regarding the timing and occurrence of the 21 August Chemical Weapons attack?
…With independent news reports providing firm evidence that the US sponsored Al Qaeda rebels (recruited and trained by Allied Special Forces) have chemical weapons in their possession, this delay does not favor the president’s political credibility.

Moreover, there is evidence that the US sponsored rebels used chemical weapons against civilians. (see image right)

In providing those chemical weapons to al Qaeda “rebels”, the US-NATO-Israel alliance is in violation of international law, not to mention their own anti-terrorist legislation.

Overtly supporting Al Qaeda has become the “New Normal”.

When the various pieces of evidence are put together, the picture which emerges is that of a covert “flag flag operation” carried out by the US sponsored “rebels” and special forces, intent upon blaming president Bashar Al Assad for killing his own people. As mentioned above, the naval deployment was decided upon ex ante, before the 21 August chemical Weapons attack.

This diabolical false flag attack which consists in killing civilians and blaming the Syrian government constitutes the justification for military intervention on “humanitarian grounds”.

Read the complete report here: http://www.globalresearch.ca/massive-naval-deployment-us-and-allied-warships-deployed-to-syrian-coastline-before-the-august-21-chemical-weapons-attack/5347766