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Lies You Will Hear As The Economic Collapse Progresses


It is undeniable; the final collapse triggers are upon us, triggers alternative economists have been warning about since the initial implosion of 2008. In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase. This might seem counter-intuitive to many. You would think that the more obvious the economic collapse becomes, the more alternative analysts will be vindicated and the more awake and aware the average person will be. Not necessarily…

In fact, the mainstream spin machine is going into high speed the more negative data is exposed and absorbed into the markets. If you know your history, then you know that this is a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare or take alternative measures while the system crumbles around their ears. At the onset of the Great Depression the same strategies were used. Consider if you’ve heard similar quotes to these in the mainstream news over the past couple months:

John Maynard Keynes in 1927: “We will not have any more crashes in our time.”


H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”


Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929: “Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”


W. McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”


Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.”

Here is the issue – as I have ALWAYS said, economic collapse is not a singular event, it is a process. The global economy has been in the process of collapse since 2008 and it never left that path. Those who were ignorant took government statistics at face value and the manipulated bull market as legitimate and refused to acknowledge the fundamentals. Now, with markets recently suffering one of the greatest freefalls since the 2008/2009 crash, they are witnessing the folly of their assumptions, but that does not mean they will accept them or apologize for them outright. If there is one lesson I have learned well during my time in the Liberty Movement, it is to never underestimate the power of normalcy bias.

There were plenty of “up days” in the markets during the Great Depression, and this kept the false dream of a quick recovery alive for a large percentage of the American population for many years. Expect numerous “stunning stock reversals” as the collapse of our era progresses, but always remember that it is the overall TREND that matters far more than any one positive or negative trading day (unless you open down 1000 points as we did on Monday), and even more important than the trends are the economic fundamentals.

The establishment has made every effort to hide the fundamentals from the public through far reaching misrepresentations of economic stats. However, the days of effective disinformation in terms of the financial system are coming to an end. As investors and the general public begin to absorb the reality that the global economy is indeed witnessing a vast crisis scenario and acknowledges real numbers over fraudulent numbers, the only recourse of central bankers and the governments they control is to convince the public that the crisis they are witnessing is not really a crisis. That is to say, the establishment will attempt to marginalize the collapse signals they can no longer hide as if such signals are of “minimal” importance.

Just as occurred during the onset of the Great Depression, the lies will be legion the closer we come to zero hour. Here are some of the lies you will likely hear as the collapse accelerates…

The Crisis Was Caused By Chinese Contagion

The hypocrisy inherent in this lie is truly astounding, to say the least, considering it is now being uttered by the same mainstream dirtbags who only months ago were claiming that China’s financial turmoil and stock market upset were inconsequential and would have “little to no effect” on Western markets.

I specifically recall these hilarious quotes from Barbara Rockefeller in July:

Something else that doesn’t matter much is the Chinese equity meltdown—again. China may be big and powerful, but it lacks a retail base and fund managers experienced in price variations, never mind a true rout…”


Doom-and-gloom types have been saying for a long time that we will get a stock market rout when the Fed finally does move to raise rates. But as we wrote last week, history doesn’t bear out the thesis, not that you can really count on history when the sample size is one or two data points…”

Yes, that is a bit embarrassing. One or two data points? There have been many central bank interventions in history. When has ANY central bank or any government ever used stimulus to manipulate markets through fiat infusion and zero interest fueled stock buybacks or given government the ability to monetize its own debt, and actually been successful in the endeavor? When has addicting markets to stimulus like a heroin dealer ever led to “recovery”? When has this kind of behavior ever NOT created massive fiscal bubbles, a steady degradation of the host society, or outright calamity?

Suddenly, according to the MSM, China’s economy does affect us. Not only that, but China is to blame for all the ills of the globally interdependent economic structure. And, the mere mention that the Fed might delay the end of near zero interest rates in September by a Federal Reserve stooge recently sent markets up 600 points after a week-long bloodbath; meaning, the potential for any interest rate increase no mater how small also has wider implications for markets.

The truth is, the crash in global stocks which will undoubtedly continue over the next several months despite any delays on ZIRP by the Fed is a product of universal decay in fiscal infrastructure. Nearly every single nation on this planet, every sovereign economy, has allowed central and international banks to poison every aspect of their respective systems with debt and manipulation. This is not a “contagion” problem, it is a systemic problem to every economy across the world.

China’s crash matters not because it is causing all other economies to crash. It matters because China is the largest importer/exporter in the world and it is a litmus test for the financial health of every other country. If China is failing, it means we are not consuming, and if we are not consuming, then we must be broke. China’s crash portends our own far worse economic conditions. THAT is why western markets have been crumbling along with China’s despite the assumptions of the mainstream.

China’s Rate Cuts Will Stop The Crash

No they won’t. China has cut rates five times since last November and this has done nothing to stem the tide of their market collapse. I’m not sure why anyone would think that a new rate cut would accomplish anything besides perhaps a brief respite from the continuing avalanche.

It’s Not A Crash, It’s Just The End Of A “Market Cycle”

This is the most ignorant non-explanation I think I have ever heard. There is no such thing as a “market cycle” when your markets are supported partially or fully by fiat manipulation. Our market is in no way a free market, thus, it cannot behave like a free market, and thus, it is a stunted market with no identifiable cycles.

Swings in markets of up to 5%-6% to the downside or upside (sometimes both in a single day) are not part of a normal cycle. They are a sign of cancerous volatility that comes from an economy on the brink of disaster.

The last few years have been seemingly endless market bliss in which any idiot day trader could not go wrong as long as he “bought the dip” while Fed monetary intervention stayed the course. This is also not normal, even in the so-called “new normal”. Yes, the current equities turmoil is an inevitable result of manipulated markets, false statistics, and misplaced hopes, but it is indeed a tangible crash in the making. It is in no way an example of a predictable and non-threatening “market cycle”, and the fact that mainstream talking heads and the people who parrot them had absolutely no clue it was coming is only further evidence of this.

The Fed Will Never Raise Rates

Don’t count on it. Public statements by globalist entities like the IMF on China, for example, have argued that their current crisis is merely part of the “new normal”; a future in which stagnant growth and reduced living standards is the way things are supposed to be. I expect the Fed will use the same exact argument to support the end of zero interest rates in the U.S., claiming that the decline of American wealth and living standards is a natural part of the new economic world order we are entering.

That’s right, mark my words, one day soon the Fed, the IMF, the BIS and others will attempt to convince the American people that the erosion of the economy and the loss of world reserve status is actually a “good thing”. They will claim that a strong dollar is the cause of all our economic pain and that a loss in value is necessary. In the meantime they will, of course, downplay the tragedies that will result as the shift toward dollar devaluation smashes down on the heads of the populace.

A rate hike may not occur in September. In fact, as I predicted in my last article, the Fed is already hinting at a delay in order to boost markets, or at least slow down the current carnage to a more manageable level. But, they WILL raise rates in the near term, likely before the end of this year after a few high tension meetings in which the financial world will sit anxiously waiting for the word on high. Why would they raise rates? Some people just don’t seem to grasp the fact that the job of the Federal Reserve is to destroy the American economic system, not protect it. Once you understand this dynamic then everything the central bank does makes perfect sense.

A rate increase will occur exactly because that is what is needed to further destabilize U.S. market psychology to make way for the “great economic reset” that the IMF and Christine Lagarde are so fond of promoting. Beyond this, many people seem to be forgetting that ZIRP is still operating, yet, volatility is trending negative anyway. Remember when everyone was ready to put on their ‘Dow 20,000’ hat, certain in the omnipotence of central bank stimulus and QE infinity? Yeah…clearly that was a pipe dream.

ZIRP has run it’s course. It is no longer feeding the markets as it once did and the fundamentals are too obvious to deny.

The globalists at the Bank for International Settlements in spring openly deemed the existence of low interest rate policies a potential trigger for crisis. Their statements correlate with the BIS tendency to “predict” terrible market events they helped to create while at the same time misrepresenting the reasons behind them.

The point is, ZIRP has done the job it was meant to do. There is no longer any reason for the Fed to leave it in place.

Get Ready For QE4

Again, don’t count on it. Or at the very least, don’t expect renewed QE to have any lasting effect on the market if it is initiated.

There is truly no point to the launch of a fourth QE program, but do expect that the Fed will plant the possibility in the media every once in a while to mislead investors. First, the Fed knows that it would be an open admission that the last three QE’s were an utter failure, and while their job is to dismantle the U.S. economy, I don’t think they are looking to take immediate blame for the whole mess. QE4 would be as much a disaster as the ECB’s last stimulus program was in Europe, not to mention the past several stimulus actions by the PBOC in China. I’ll say it one more time – fiat stimulus has a shelf life, and that shelf life is over for the entire globe. The days of artificially supported markets are nearly done and they are never coming back again.

I see little advantage for the Fed to bring QE4 into the picture. If the goal is to derail the dollar, that action is already well underway as the IMF carefully sets the stage for the Yuan to enter the SDR global currency basket next year, threatening the dollar’s world reserve status. China also continues to dump hundreds of billions in U.S. treasuries inevitably leading to a rush to a dump of treasuries by other nations. The dollar is a dead currency walking, and the Fed won’t even have to print Weimar Germany-style in order to kill it.

It’s Not As Bad As It Seems

Yes, it is exactly as bad as it seems if not worse. When the Dow can open 1000 points down on a Monday and China can lose all of its gains for 2015 in the span of a few weeks despite institutionalized stimulus measures lasting years, then something is very wrong. This is not a “hiccup”. This is not a correction which has already hit bottom. This is only the beginning of the end.

Stocks are not a predictive indicator. They do not follow positive or negative fundamentals. Stocks do not crash before or during the development of an ailing economy. Stocks crash after the economy has already gone comatose. Stocks crash when the system is no longer salvageable. Since 2008, nothing in the global financial structure has been salvaged and now the central banking edifice is either unable or unwilling (I believe both) to supply the tools to allow us even to pretend that it can be salvaged. We’re going to feel the hurt now, all while the establishment tells us the whole thing is in our heads.

90 Comments on "Lies You Will Hear As The Economic Collapse Progresses"

  1. BobInget on Fri, 28th Aug 2015 8:33 am 

    Click on

  2. Makati1 on Fri, 28th Aug 2015 8:49 am 

    So right! Lies are all we see from Western news these days. Panic is setting in as the Western world loses it’s place as the 1st world and slides into the 3rd world.

    Oops! Where is that 100 years of Natural gas?

    Rising oceans and all those beach cities with no money to save themselves. “Sewage spill caused by rain flows into Honolulu’s Waikiki Beach”

    This is going to kill humanity if war and famine doesn’t do it first. (US)

    The War of the Drones has begun.
    And this is only one city of current and future homeless to wander through the countryside like locusts.

    The US Constitution is Dead and buried with the Bill of Rights.

    With fires comes erosion and landslides and desert.
    There Aren’t Enough Firefighters to Stop America’s West From Burning ”

    Lies, Lies and more lies.

    And on and on…

  3. ennui2 on Fri, 28th Aug 2015 8:51 am 

    “the job of the Federal Reserve is to destroy the American economic system”


  4. Hello on Fri, 28th Aug 2015 8:54 am 

    How bad is it really?

    With stocked market shelves. 24/7 electricity. Open gas stations. Record air travel and enough spare coin to enjoy life at events and restaurants and trips and toys.

    How bad is it really ?

  5. paulo1 on Fri, 28th Aug 2015 8:55 am 

    Re statement: “At the onset of the Great Depression the same strategies were used.”

    Here is the conspiracy bullshit sniff. This statement indicates that there was an actual CONSPIRACY….get that? oooohhh. The powers in 29 actually got together and said…”let’s tell a story and….”

    Not too many got out other than the famous quote that goes something like’ “sell. If my taxi driver is telling me to buy more stocks it is time to get out”.

    The difference is that in ’29 people actually believed the hype as it was new and uncharted exuberance for common folk. If people in today’s world, with all the information that is available to them, are so stupid to believe that what goes up goes up forever then imho they deserve to lose their money to hypesters.

    Sure, in today’s market there are shysters keeping the ship bobbing while the smart money exited awhile ago. There are also people asking for church donations to increase people’s wealth, the donors themselves as in ‘give and you will receive’ BS.

    “A fool and his money”……

    Alt Market is a site all about conspiracies. Stock market losses are all about suckers and the over confident looking for an easy score. They are not the same thing. Somehow, everyone forgets the definition of ‘investment’.

    quote: “In finance, investment is buying or creating an asset with the expectation of capital appreciation, dividends (profit), interest earnings, rents, or some combination of these returns. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk. It is indispensable for project investors to identify and manage the risks related to the investment.”

    Somehow, my preps for what seems to be unfolding did not involve the stock market. Did yours?

  6. Pops on Fri, 28th Aug 2015 9:21 am 

    “If my taxi driver is telling me to buy more stocks it is time to get out”.”

    I decided the other day that the real culprit in economic collapse is taxi drivers.

  7. Outcast_Searcher on Fri, 28th Aug 2015 9:26 am 

    Another financial clown selling us on how smart they are. Sure. For ALL the self-appointed financial gurus selling financial news (via whatever media), a basic question needs to be answered. If they are any good, why aren’t they rich due to their wise investments instead of hawking advice or internet clicks?

    And of course, when the plot is conspiracy and the time is now and the outcome is doom, well isn’t that familiar on sites such as peak oil sites? As if following the almost-always-wrong zerohedge advice weren’t a way to destroy your finances.

    Politicians will say stupid things and lie. Prognosticators will say stupid things and make mistakes. Financial markets will have periods of intense volatility as perceptions rapidly change. If you want to invest in financial markets, that’s the cost of participation — you are being PAID to endure volatility. If you can’t deal with that, then you will have a tough time keeping up with inflation over the long run. Nothing wrong with that – just be aware of the consequences.

    If you want to know how the stock market works long term, giving Jack Bogle and Warren Buffett a read would be time well spent. Hint: they think in terms of decades instead of hours or days.

    Apparently clowns like this will always be able to sell hope and fear to enough people to make it worth their time. Too bad they can’t do something productive for a living.

  8. Pops on Fri, 28th Aug 2015 9:30 am 

    “Somehow, my preps for what seems to be unfolding did not involve the stock market. Did yours?”

    Seems to me that preppers are hedgers not bettors. I am anyway. I gladly pay the opportunity cost to sleep easy at night rather than dream of getting rich.

  9. ghung on Fri, 28th Aug 2015 9:36 am 

    Hello asks: “With stocked market shelves. 24/7 electricity. Open gas stations. Record air travel and enough spare coin to enjoy life at events and restaurants and trips and toys.

    How bad is it really ?”

    Yeah, Hello, $18 trillion in debt and $4.5 trillion in QE? There damn well better be a bit of “spare coin” to go around, for a while. Spare coin is what keeps the prols in their place.

    $61,288,000,000,000.00+ total US debt as of this morning. Party on, dude.

  10. Hello on Fri, 28th Aug 2015 10:29 am 

    Where is Planted-agent? I need to hear some obama bashing.

  11. joke on Fri, 28th Aug 2015 10:31 am 

    On China it’s obvious that they are going to let it’s currency float freely as it has promised the US it would, as part of entering all those lovely global institutions. Allot of these events are minipanics created by this adjustment, however that’s not why I am skeptical.
    It has to do with the fact Chinese growth is based on cheap interest rates etc.
    Demand is created by two ways, cheap goods and cheap debt, also low risk. We have the first part, but not the second because everyone knows that Atlas holds the world up, in the form of the government like some kind of Lord Business in the lego movie.
    Take them away and fear will move in. Basically we are caught in a snare whereby government will be both the main lender and debtor and spender.
    Why do you think Trump and Fioria want to be president? The can see the the government holds all the cards. It’s totally rigged.
    Selling back to the market will mean adding risk, and nobody wants that, they know there is nothing the FED can do in the next recession, it really would become a depression next time.

  12. efarmer on Fri, 28th Aug 2015 10:41 am 

    Wall Street is the diamond point atop a plaster of Paris pyramid. Wall Street does not want interest rates to rise so they did some dog training for the Fed this week. Without small and local banks able to make money lending to small and local folks, we stay a nation rigged for the top 1% to thrive, and everyone else to dive. The Investment Bankers bought Congress, they longed for the days before the Great Depression when they were largely unregulated and had carte blanche, they got it, and they then they gamed the system and robbed all the “little people” as “the big people” are prone to do by human nature when not otherwise impeded. Rather than bread at the circus, the masses feasted on cheap Chinese consumer goods on credit while they watched the Bull and the Bear dance in the center ring. Then the Lions were sent in to eat the audience.Those who were scared or bitten but not devoured were told that the “immigrants” were the ones wrecking the system, there may be truth in this, it could be those fictitious, corporate bastards from the Cayman Islands riding in on “the cloud” to rob packets of digital money as it shoots in and out of Manhattan Island.

  13. penury on Fri, 28th Aug 2015 11:53 am 

    There are a couple of differences with 1929 and now that were not mentioned. In 1929 there was no FED so the wealthy and the banks attempted to stem the drop but did not have the funds. Contrast with the past Mon, how much did the Fed Res inject into the market? I heard 13 billion dollars, probably wrong, but so what, The result is the same. If the Fed can never raise rates (and they cannot) and the market cannot correct because the printing press is always on, the only thing that the Stock Market represents anymore is the dreams of the Fed Chair that everything is rosy (for their stockholders).

  14. ghung on Fri, 28th Aug 2015 12:08 pm 

    penury said; “In 1929 there was no FED so the wealthy and the banks attempted to stem the drop but did not have the funds.”

    Uh, ?!… The Federal Reserve Act was passed in 1913. The first Fed banks opened the next year.

    “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” -Woodrow Wilson, a few years after signing the Act.

  15. Rodster on Fri, 28th Aug 2015 12:13 pm 

    “I care not what puppet is placed on the throne of England to rule the Empire, … The man that controls Britain’s money supply controls the British Empire. And I control the money supply.” Nathan Rothschild

    “Once a nation parts with the control of its currency and credit, it matters not who makes the nation’s laws. … Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.” — Mackenzie King, Canadian Prime Minister 1935-1948.

  16. apneaman on Fri, 28th Aug 2015 12:21 pm 

    “Humpty Dumpty sat on a wall,
    Humpty Dumpty had a great fall.
    All the king’s horses and all the king’s men…….fucked the queen”


  17. Boat on Fri, 28th Aug 2015 1:47 pm 

    You do realize the bond market for rolls over every day. Every day if you choose you can see the billions being invested trying to get that extra 4-6% in spite of the extra risk. That somehow some elite squad of world manipulators can hide facts from professionals that manage money in these billion dollar deals is just another fallacy the doomers thrive on.
    Many of these investors pay .08% for information to get the best bang for the buck with funds that have the most liquidity. Bond funds that make mistakes and don’t do as well as others in their judgement get the o’l darwinian flush and out of the market they go.
    I worry about all the doom posts as the market resets itself once again. To many living on fear sandwiches.

  18. penury on Fri, 28th Aug 2015 1:58 pm 

    Boat, are we discussing the Stock Market or the Bond market?

  19. ghung on Fri, 28th Aug 2015 2:19 pm 

    Boat fails to understand the casino culture that is our financial sector. As for his assertion that:

    “Bond funds that make mistakes and don’t do as well as others in their judgement get the o’l darwinian flush and out of the market they go.”


    A casino where certain players have win/win status. I doubt that would be you. Further, what do you think CDS and derivatives are for? (Hint: See win/win, above).

    As I stated above, it’s not “That somehow some elite squad of world manipulators can hide facts from professionals that manage money in these billion dollar deals…”, it’s a culture of greed founded on gambling with other people’s money, one in which “professionals that manage money” get their cut either way. Only the most blatantly fraudulent (i.e. Madoff) actually get punished.

    The point is that a massive amount of wealth is being skimmed off the top of our collective wealth, as trillions are conjured into existence, and as our society increasingly equates this with real production of real resources (real capital?) while some folks (would that be you?) accept that an economy such as this can be sustained indefinitely. History says otherwise. Please explain why you feel it’s different this time.

  20. apneaman on Fri, 28th Aug 2015 2:32 pm 

    A fairly reliable indicator that any system is nearing a tipping point is extreme swings.

    The Dow Jones Industrial Average did something it’s never done before

    “The Dow Jones Industrial Average just made history, highlighting the new level of turbulence stock investors face in whipsawing trading sessions. On Thursday, the blue-chip index ended with a gain or loss of at least 200 points for a sixth consecutive session–something the Dow has never done, according to Dow Jones data.”

  21. GregT on Fri, 28th Aug 2015 2:44 pm 

    “Boat fails to understand the casino culture that is our financial sector.”

    That is by no means the only thing that Boat fails to understand.

  22. BobInget on Fri, 28th Aug 2015 2:47 pm 

    Meanwhile, The number of war and climate refugees goes higher by the day.
    Most Americans seem more concerned with keeping this sort of unpleasantness away.

    I’m always harping on oil states, the article below is not that.

    The worst drought in almost a decade has decimated agriculture in southern Africa, leaving 1 in 10 people in the region at risk of going hungry.

    The drought contributed to massive crop failures, including in South Africa which ordinarily produces 40 percent of the region’s corn. The country had to import the crop earlier this year, after it faced the worst drought since 1992.

    The regional drought crisis has raised fears of renewed chaos in Zimbabwe, just as it was beginning to emerge from years of economic turmoil. The World Food Program warned this week that 1.5 million Zimbabweans will face food shortages after the production of staple crops like corn was slashed by around 50 percent.

    “What you will see is people buying less of everything else so that they can afford corn,” Zimbabwe-based economist John Robertson told Bloomberg News. “People will limit buying to corn and nothing else.”

    Zimbabwean officials said over 20,000 people have fled drought-hit regions for more fertile areas, sparking conflict and hurting the region’s ecosystem. The government warns that rainfall in Zimbabwe could decline by between 5 and 20 percent by 2050.(snip)

    I just got a note from a friend in Nicaragua.
    Drought there too.

  23. HARM on Fri, 28th Aug 2015 4:53 pm 

    There will be no more stock market crashes in America because the PEOPLE WHO MATTER do not tolerate losing money.

    Contrary to popular belief, the vast majority of Americans own virtually no stocks, outside of a tiny smattering of mutual funds in a teeny-tiny 401k or IRA. Which means the stock market is largely composed of PEOPLE WHO MATTER. These PWM control the government and Federal Reserve banking system, and don’t take kindly to big drops in their net worth. So it’s up to the PPT to maintain ZIRP and QE programs forever, if necessary.

  24. Louis on Fri, 28th Aug 2015 5:03 pm 

    “There was no Federal Reserve in 1929.”, as stated by a previous comment. You’ve GOT to be F’ing kidding me! The Fedral Reserve Act was written in 1910 and passes into law in 1913. Prior to that there was no Fed Reserve stamp on our currency and you could exchange your currency for an equal amount of gold. Unbelievable lack of knowledge!

  25. HARM on Fri, 28th Aug 2015 5:24 pm 


    Good catch. Actually, many economists of the time (see the JM Keyenes and Irving Fischer quotes in the article) believed that having a Federal Reserve System in place meant there could be no more market crashes. Boy, how wrong they were.

  26. BC on Fri, 28th Aug 2015 5:27 pm 

    “Contrary to popular belief, the vast majority of Americans own virtually no stocks, outside of a tiny smattering of mutual funds in a teeny-tiny 401k or IRA. Which means the stock market is largely composed of PEOPLE WHO MATTER. These PWM control the government and Federal Reserve banking system, and don’t take kindly to big drops in their net worth. So it’s up to the PPT to maintain ZIRP and QE programs forever, if necessary.”

    Print that on a Federal Reserve Note for posterity rather than a woman’s puss. 🙂

    In fact, 40-85% to 93% of all US financial wealth is owned by the top 1-10% to 20%, and 20-50% to 60% of all US income is received by the same socioeconomic strata.

    Moreover, the PPP per capita income of the bottom 60-80% of American individuals and households is at the level of the PPP per capita of the countries of eastern Europe, Mexico, Caribbean, South America, and South Africa.

    Granted, that’s about 65-75% higher than China and three times the income vs. the Philippines and West Africa, which is where the US was in the 1930s; but you get the point that Peak Oil, overshoot, mass immigration, “secular stagnation”, “The Great Leveling”, and Third World-like wealth and income inequality implies that the bottom 50-80% of Americans are headed back to a standard of material consumption per capita of the 1930s, and even the late 19th century.

    And the rentier Power Elite top 0.001% and Rockefeller-Rothschild bankster oligarchs knew this decades ago and do not lose a wink of sleep about it.

    The key point is to prepare for, and try to enjoy, or at least accept and acquiesce to the inevitable conditions of, the slide back to Olduvai.

    I suspect it will serve the purpose to become like a monastic, ascetic, Zen-like, permaculturalist warrior type. 🙂

  27. penury on Fri, 28th Aug 2015 5:36 pm 

    I apologise for the mis=info on the fed, however the Fed could not print money at that time because the dollar was backed by gold or Silver If you are old enough to remember the top used to say Silver Certificate not Federal Reserve Not. Thank Pres Nixon for the loss of the standard which prevented fiat currency at the time. Again I am sorry too many short cuts.

  28. Davy on Fri, 28th Aug 2015 6:13 pm 

    Why QE4 Is Inevitable

    Needless to say, this “reverse QE” as we call it (or “quantitative tightening” as Deutsche Bank calls it) has serious implications for Fed policy, for the timing of the elusive “liftoff”, and for the US economy more generally. Of course we began detailing the implications of China’s Treasury liquidation months ago and now, it’s become quite apparent that analyzing the consequences of China’s massive FX interventions is perhaps the most important consideration when attempting to determine the future course of global monetary policy.

    In other words, first according to Deutsche, and soon according to virtually all sellside strategists who are slowly but surely grasping the significance of what we have been warning for month on end, QE4 is inevitable. The only problem is that when the Fed pivots from “imminent rate hike” to QE4, it will loose the last shred of credibility it had left. The Fed is now completely trapped.

  29. BC on Fri, 28th Aug 2015 6:14 pm 

    kudos for penury, and a round for the lads on his tab. 🙂

  30. BC on Fri, 28th Aug 2015 6:18 pm 

    HARM: “Actually, many economists of the time (see the JM Keyenes and Irving Fischer quotes in the article) believed that having a Federal Reserve System in place meant there could be no more market crashes. Boy, how wrong they were.”

    And we’ve had even more debt to wages and GDP and the risk of increasing scale of GLOBAL crises BECAUSE our predecessors thought that.

    More debt. More bubbles. More financialization. More wealth and income inequality. Larger deficits/GDP. More QE.

    Hmmmm . . . ??? I wonder where this is going? Wait! Don’t go there!

  31. marmico on Fri, 28th Aug 2015 6:23 pm 

    Moreover, the PPP per capita income of the bottom 60-80% of American individuals and households is at the level of the PPP per capita of the countries of eastern Europe, Mexico, Caribbean, South America, and South Africa.

    Bull shit. Give me a “Freddy Fluff” chart for proof.

    The 80th percentile of U.S. household income is $90,000 per year.

    Take that to Slovenia, Ecuador and Jamaica you moron.

  32. BC on Fri, 28th Aug 2015 6:31 pm 

    penury, WRT to Tricky Dick and the gold standard, the Rockefeller-Rothschild int’l banking syndicate began the process to delink the US$ from gold in the early 1960s when US banks created Eurodollar deposits to create loans and deposits abroad and outside the regulatory reach of the Fed and US Treasury.

    Tricky Dick just followed the dictates of the int’l banking syndicate. He had no unilateral decision-making authority to do anything.

    In fact, from an historical perspective of a presidential legacy, his being the CEO of the Anglo-American corporate-state when the US had to de facto concede “military” defeat (but not “economic” defeat) and devalue the US$ (85-90% against CPI and gold by 1980-81) was not much less a humiliation than having to resign because of Watergate.

    Moreover, a point of trivia: Dubya and Obummer/Obomba presided as CEO of the Anglo-American empire’s devaluing of the US$ against CPI and gold of 75-80% from 9/11 to 2012-14.

    So, when gold bugs and US$ bears say that the US$ is going to crash, remind them that it already crashed 75-80% in real terms vs. gold. Now comes the deflationary fallout and scramble for cash/liquidity against the record debt that can’t be serviced from current and future wages, profits, and gov’t receipts after taxes and price effects.

  33. rickdri on Fri, 28th Aug 2015 8:25 pm 

    Excellent article! I would recommend this for everyone to read!

  34. Apneaman on Fri, 28th Aug 2015 8:30 pm 

    Ponzi World Is Ending. The Race To The Bottom Is Reaching The Bottom

  35. BC on Fri, 28th Aug 2015 8:36 pm 

    “The 80th percentile of U.S. household income is $90,000 per year.”

    marmico, brother, reread what was written, two, three, four, or more times, if required. It’s okay. The view from on high is often obscured by wispy clouds of self-satisfaction and otherworldly self-delusion.

    But, hey, you made it, so you have earned the right not to have to “know”. Congratulations! We morons salute you!

  36. marmico on Fri, 28th Aug 2015 8:46 pm 

    Read carefully moron. Stick to your Jekyll Island conspiracy theories. 100 years of bull shit. For $90,000 USD per year you could get your limp dick sucked 24/7/365 in Quito.

  37. Makati1 on Fri, 28th Aug 2015 8:50 pm 

    Why do so many doubt that there are plots and conspiracies in today’s world? After all, there IS still a big push to make a one world government, run by the super wealthy elite.* And how does one do that? By creating chaos and failing economies all over the world so the sheeple are open to anything that they think will save them, including a world dictator and fascist government.

    How many does it take to pull it off? Only a few dozen at the most. The key persons who control the world economy and the world’s largest military are all that are needed. How much damage has Soros or Kissinger caused in their lives? And do YOU know where the Rothschilds are today, the probable trillionaires? They were super rich when money was real and still are but they are invisible to you and I.

    Since the US controls the money system, for now, the Federal Reserve has huge powers over all foreign and domestic banks banks. One woman has control of that power. One President has control of the world’s largest military.

    Those world leaders not controlled by money and promise of power, can be controlled by blackmail, death threats against family, etc. And who is listening to everything we all do and say? The US Gestapo(NSA, etc). And who controls 99% of the Western news outlets? Six corporate executives.

    So, don’t tell me that a conspiracy cannot exist to do these things. They would not even fill a 747 jetliner. And, this ‘conspiracy’ is run out of London and Washington DC.

    *It isn’t coincidence that the countries that have been invaded since 2001 were the ones bucking that plan. And that the ones on the US shit list today are the ones that are left that are not under US control.

  38. Apneaman on Fri, 28th Aug 2015 8:54 pm 

    I’ve seen some of those 1929 quotes in an article I bookmarked for times like this….. and nony. It’s just full of the pre and post crash propaganda quotes.


    The talking heads will be rolled out on CNBC to assure the masses that all is well. The economy is strong. Corporate profits are awesome. The stock market will go higher. Op-eds will be written by Wall Street CEOs telling you it’s the best time to invest. Federal Reserve presidents will give speeches saying there are clear skies ahead. Obama will hold a press conference to tell you how many jobs he’s added and how low the budget deficit has gone.

    We couldn’t possibly be entering phase two of our Greater Depression after a temporary lull provided by the $8 trillion pumped into the veins of Wall Street by the Fed and Obama. Could we?

    1927-1933 Chart of Pompous Prognosticators

  39. Davy on Fri, 28th Aug 2015 9:09 pm 

    Sara Palin is interviewing Trump tonight on the OAN Network.

  40. Boat on Fri, 28th Aug 2015 9:17 pm 

    If any history is any guide the things you scoff at are true. While there are downturns the recoveries have always been stronger for most of the world.

    BTW a lot of that 8 trillion lowered the interest rate on loans. There has never been a better time to buy a new home. The available tech has never been better for heating and cooling systems. Windows are much improved.
    Materials for roofing can last 30-50 years. Most appliances are insanely more efficient compared to just a couple decades ago. All this leaves more cash in the pocket. Even lighting has vastly improved. You would call this corny. I call it progress and common sense. Human minds at their best.

  41. Speculawyer on Fri, 28th Aug 2015 9:18 pm 

    This place is still the doomer echo chamber.

  42. Davy on Fri, 28th Aug 2015 9:22 pm 

    Where you been Spec?

  43. Makati1 on Fri, 28th Aug 2015 9:31 pm 


    “The United States lags far behind other developed countries in terms of personal, civil and economic freedoms, according to a study released this month. Its neighbor to the north, for example, ranked 14 spots ahead of the so-called “Land of the Free.””

    This should be on the front page of every American newspaper and the leading item of News at Eleven. But it will never be seen in America except by a few who already know. lol

  44. Boat on Fri, 28th Aug 2015 9:47 pm 

    One thing we can be assured of is a one sided view of finance from you and other doomers on almost every topic.

    The bailout wasn’t a loan, but an investment on which taxpayers are now being compensated.

    After getting taken over by the U.S. government, mortgage-finance companies Fannie Mae and Freddie Mac took a bailout of about $187.5 billion. In return for that money, the government acquired a class of “senior preferred” stock that initially paid a 10% dividend.

    In 2012, the Treasury and Federal Housing Finance Agency, which controls Fannie and Freddie under a conservatorship, changed the terms of the agreement, sending nearly all of the companies’ profits to the government when they have earnings, but not requiring a payment when they have losses.

    To date, the companies have paid the government more than $228 billion, $40 billion more than they took in the bailout.

    If you want society to survive without more damage like austerity moves you also don’t like in Greece, sometimes you have to help the casino.

    If anything the US government/Fed should have dumped more money on the market to achieve low interest loans and more of the pain could have been adverted.
    All in all the US handled the crisis pretty well.

    Even though I still have a problem with 2 million legal immigrants per year when there is high unemployment. Cost the government more in unemployment and more workers lost their homes. This was unneeded pain.

  45. apneaman on Fri, 28th Aug 2015 10:20 pm 

    Boat, so you’re a socialist.

  46. ghung on Fri, 28th Aug 2015 10:27 pm 

    Boat: “One thing we can be assured of is a one sided view of finance from you and other doomers on almost every topic.”

    One sided? All sorts of views get expressed here, and at a national/global scale, we, ‘doomers’, are in an extreme minority. Why else would humans behave like they do? Not my fault so many are either clueless, too distracted, and/or too chicken shit to admit that they are complicit in the ruination of a planet. Everything else you bring up is purely symptomatic of humanity’s bad behavior; incidental to our devolution.

    Try to not get so caught up in the now of things. CLouds your view.

  47. Boat on Fri, 28th Aug 2015 10:35 pm 

    I reject labels, you can try to tuck me into some category for your own satisfaction. When the crash of 2007 happened I was pissed at the bailouts but as I read and time passed I changed my mind. In fact they should have been bigger. As a side note we could easily cut our military in 1/2 and still double the Chinese military. I don’t live in fear. For every billion spent you get twice the bang for the buck in construction jobs. We have a few infrastructure projects that would be wiser money spent.
    Socialist eh? I would say no more hip and knee replacement health’s costs from the government for people over 70. In fact I would like to see general medicine, generics, tests, broken bones and the like for $500 per year. Anything else would not be the governments responsibility. Between that and the military cuts we would be paying down the debt instead of adding to it.Simple.

  48. Boat on Fri, 28th Aug 2015 10:38 pm 

    I don’t remember for sure but the largest chunk of health care dollars comes in the last year of a life. Forget political corrects and let them folks die without massive intervention just to keep them alive in a hospital bed.

  49. apneaman on Fri, 28th Aug 2015 10:52 pm 

    It might be the last 6 months actually. That’s already changing is many places in spite of the pressure from the industry and what you call the PC’s – I call them the the positives. It was not all that long ago that dying with dignity as the call it was normal. This hang on to the bitter end is all propaganda for profit. The cancer industrial complex is one of the worst. More people are going to have less choice soon enough.

  50. Outcast_Searcher on Fri, 28th Aug 2015 11:36 pm 

    Boat said: “Forget political corrects and let them folks die without massive intervention just to keep them alive in a hospital bed.”

    Hear, hear. Or at LEAST, give folks choices about how they die, free from religious dogma like not allowing assisted suicide.

    There will be plenty of folks like me that if they have, say, advanced cancer would rather have the option of quietly being put to sleep when they decide the pain or sickness is too great to be worth it. The cost would be minimal, and the suffering would be greatly alleviated.

    Instead, people aren’t given choices for no good reason, and it causes GREAT unneeded expense and suffering.

    If medical rationing is still needed after people have choice, that could then be addressed, but the savings could be truly immense.

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