Posts Tagged ‘expedient politics’

Voter betrayal (Ireland)

March 7, 2011

If this is the case, I expect the Irish will, rightly, pull a Tunisia

http://www.independent.ie/national-news/elections/voter-betrayal-fglabour-to-ditch-pledges-on-economy-2567686.html

The Fine Gael/Labour coalition Government is to implement in detail the outgoing Government’s four-year austerity plan as approved by the EU-IMF, the Sunday Independent can reveal.

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When government becomes the largest actor in the economy

November 16, 2010

Most people have difficulty believing how the monetary system is a driver of human action. As a more extreme example of this reality, most people find it difficult to see how, for example, the choice of monetary system has an impact on the climate.

We are talking here of the monetary “system” as opposed to the money you carry around in your wallet. It is the system that is in question here. As I never tire to reiterate, even most professionals in the banking and finance industry are unable to name what type of monetary system we are currently on.

The reality is though, that in the current political context where governments have imposed on society the current system, all social and economic dynamics are dictated by this unilateral and arbitrary choice.

Our debt based fiat monetary system requires that the quantity of money must be increased at an accelerating rate. The reason this is so, is cunningly simple. If you task a third party to do something, the third party must be somehow paid for the task. So that if you task a private bank to create the currency of a nation, then the livelihood of said bank consists in creating currency and, unsurprisingly, that’s what they will do.

Expanding the monetary base faster than the pace of the economy brings you inflation.

But just like all dynamics devised and implemented by man, inflation is a dynamic that conforms to the law of diminishing marginal utility. This means that you always require more money to achieve the same result. This also means that as monetary policy loses traction over time, government must gradually but necessarily intervene at ever greater degrees directly in the economy to compensate the loss of monetary traction.

In a debt based fiat monetary system, as government gradually becomes the largest actor in the economy, increased government clout eventually and necessarily becomes government interference and intrusion as the state progressively becomes more fascist in nature.

Proof of this inevitable dynamic is found everywhere but specifically in government employment numbers:

http://www.usatoday.com/news/nation/2010-11-10-1Afedpay10_ST_N.htm?csp=hf

The number of federal workers earning $150,000 or more a year has soared tenfold in the past five years and doubled since President Obama took office, a USA TODAY analysis finds.

Here is an earlier piece of research that never made it into the main stream press:

http://www.financialsensearchive.com/Market/pretti/2009/1030.html

As of now, unfortunately for the US economy as a whole, government employees outnumber US manufacturing sector employees literally just shy of two to one.

If you understand the importance of this trend, you must also understand what the implications are and, let me tell you, they aren’t good. You probably grasp the economic implications of expanded government because you realize that more government employees means more taxes on the private economy. How else is government going to pay its employees? But what probably escapes you is the threat to your life and your personal freedoms that necessarily goes with expanded government due to the concomitant need to justify its existence.

Do you remember this Washington Post piece about the myriad secret security agencies?

http://projects.washingtonpost.com/top-secret-america/articles/

The top-secret world the government created in response to the terrorist attacks of Sept. 11, 2001, has become so large, so unwieldy and so secretive that no one knows how much money it costs, how many people it employs, how many programs exist within it or exactly how many agencies do the same work. These are some of the findings of a two-year investigation by The Washington Post that discovered what amounts to an alternative geography of the United States, a Top Secret America hidden from public view and lacking in thorough oversight.

Lacking in thorough oversight!

This is how today in the “free” West, we are hell bent on applying police-sate rules upon our open society and why our Boy-Scouts are undergoing military training, or why we are intent on groping passengers if not take their naked picture in the name of security. A “security” that is nothing of the sort in practical terms. And that is why we are hell bent on building straw-men arguments of evil doers outside our borders whom presumably threaten our way of life… as if our own politicians hadn’t already.

No sooner have I posted the above and I hear rumors that the TSA is proposing US$10000.oo for people refusing to be groped and cavity searched at airports.

You people must realize that we are now living in an environment where we are all presumed guilty till proven innocent. If any of you can remember, this was one of the fundamental reasons that people emigrated to the USA at the turn of the last century; whatever happened to being innocent till proven guilty.

http://www.shtfplan.com/headline-news/showdown-tsa-threatens-10000-fine-and-civil-court-if-man-who-refused-scan-and-groping-left-security-area_11152010

Revolution in the West now moving into the ralm of the probable?

August 26, 2010

… and it is not me saying so…

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7964328/Fresh-flight-to-Swiss-franc-as-Europes-bond-strains-return.html

Excerpts with comments (emphasis added):

No country in the developed world apart form Japan has ever seen 10-year yields drop below 1pc. Rates remained significantly higher during the two great depressions of the 1870s and the 1930s.

The above just highlights the unprecedented nature of this crisis as well as the unprecedented nature of government futile, if not populist and criminal, intervention that punishes the many to reward the few.

Morgan Stanley said investors are taking a risk buying sovereign bonds at this level, arguing that debt-to-GDP ratios in the developed world greatly understate the true liabilities and aging costs that threat public finances. “It’s not whether governments will default, but how, and vis-a-vis whom,” said Arnaud Mares in a client report.

And for the piece de resistance:

Mr Mares said most Western states are in “deep negative equity” and cannot hope to pay their debts. Bondholders have so far been “fully sheltered from loss” through the crisis but this is politically untenable. The rest of society will not suffer austerity for ever to pay the coupons.

The next phase of the crisis will see revenge by all those who have already taken a big hit, or expect to do so: whether under water on their mortgages, unemployed, dependent on health support, or state employees. Democracy will have its way.

Next stop: a world war. Just because it does pay to riot –

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100007444/it-pays-to-riot-in-europe/

The great unwashed cannot be asked to understand how and why a state can be and is out of money. The great unwashed that live in the West are oblivious to the fact that the one single dynamic that shapes their lives has been imposed unilaterally by government; that is the monetary system. The great unwashed cannot fathom how the social promises that government made over the past century are but a necessary byproduct of the monetary system. The great unwashed certainly cannot understand that a fiat monetary system is limited mathematically. Heck! Professionals in the banking and finance industry don’t understand that either so why should anyone else.

This is as close to the End Times as we’ll ever get folks.