When capital flees conditions it does not like, it will find a conduit, often with the support of govt and their cronies – at least if the money is flowing in. While broke govt’s will impose liberty-killing laws (capital controls) if people try to take their money out of the country, if money is coming into a country, the govt assists or looks the other way – when money is from Illicit Financial Flows (IFFs).
Just as many citizens do not fully appreciate the NSA data gathering of all of their PERSONAL information (believing they have nothing to hide), they also may not understand the full cost of our govt permitting their bankster donors from laundering money for drug cartels or funneling money from Oligarchs around the world into US real estate.
The consequences of the NSA’s unconstitutional data gathering, sold as fighting terrorism versus the true reason of finding and confiscating money for govt, is that capital will ultimately flee the intrusively-corrupt and selective law enforcement by govt in favor of safer jurisdictions – even if that means going underground or under mattresses.
The consequence of felonious financial flows into the US is that it artificially inflates asset prices, and when combined with the normal flight of capital from troubled regions around the world, it extends normal business cycles into devastating bubbles. While it may temporarily increase the paper wealth of those invested in the assets, it makes real estate/rents unaffordable for the majority and misallocates capital into paper assets with no intrinsic benefits.
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As Twisted recently discussed, there is an inseparable and unquestionable relationship between the rule of law, confidence, and the economy. When the rule of law gives way to govt fraud and corruption, public confidence collapses, along with the economy. The rule of law has already collapsed, although many don’t realize it, because the media keeps wanting you to believe that the problem is out-of-control “thugs”, instead of out of control govt spending and fraud. Like one Baltimore protester said, “it’s unacceptable to burn down your city, but it’s also unacceptable to break a kids neck” (and shoot unarmed citizens, and plant evidence, and lie about forensic data, and confiscate assets with no evidence, and fraudulently ticket people, etc).
In his typically insightful manner, Armstrong reviews how the Rule of Law has collapsed, and asks the pivotal question of our time – “Are we capable as a society of taking that one small step for humankind and learn from history just once?
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The latest Billary controversy detailed in Schweitzers’s book, Clinton Cash, has stirred emotions from many concerned citizens, yet all miss the point that really matters. Passionate points can be made about the “Clinton Blur” of donations to the Clinton Foundation, absorbent fees for speeches by Bill, and coincidental business deals like Uranium One, which has resulted in Russia owning at least a quarter of US uranium sources. Uniformed and/or connected supporters of the Clinton’s argue that this is a right-wing conspiracy, while others insist that it doesn’t matter because Hillary will simply deny any involvement – including deleting her own emails and facilitating the gun running to rebels (ISIS) by Ambassador Stevens in Benghazi, and that politics as usual will continue unabated. The point that most miss is the relationship between the erosion of confidence in govt and the vibrancy of the economy.
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If the US could produce a leader like Nigel Farage for 2016, he or she would win in a landslide. Farage speaks truth to power, and his speeches in front of the EU bureaucrats are legendary, as is the latest that addresses the EU’s desire to fund a standing army to combat Russia – who strangely does not want more NATO encroachment on to its boarders (especially when NATO specifically promised it would not).
Farage is the leader of the UK’s Independence Party (UKIP), which has risen from nothing to 15% of the electorate, relegating the Liberals and Greens to virtual extinction, and more than rocking the boats of the Conservatives and Labor Party’s.
Twisted wrote about Farage last May after UKIP won their first election, being the first 3rd-party to win an election in British history. The trend against govt largess is certainly afoot. A strong 3rd-Party surge is also coming to the US by 2016. If we had a charismatic leader like Farage, with real world experience, Obama may not have won in 2012, but I guess the pain level and intellectual curiosity was still insufficient.
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The latest incident of an unarmed man being gunned down by police in SC is causing the average citizen to question what the hell is going on, and make statements like, “this does not seem normal”. It’s not, and these incidents have happened far more frequently than people are aware (even if cameras can’t capture all the abuses). It’s gotten so bad, I would not be surprised if people start using the police as their personal hit man. After all, all one has to do is call the police and tell them they have a gun. A few examples of recent murders by police can be seen here, here, and here.
If one monitors what’s been going on around the world and starts connecting the dots, the fog will lift. Govt’s from France to Australia are broke and are shaking down their citizens, instead of reforming. When one looks behind the curtain of govt fraud and corruption, it is easy to understand the source of the civil unrest and separatist movements around the world. The common thread is govt fraud, corruption and insolvency. The worldwide trend of police militarizing against their citizens is increasing as govt’s become increasingly broke, which forces desperate acts by govt to confiscate other people’s money, which causes an increasing number of people to become victims and say this is BS.
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The Ice Age 2050’s: Certainty video takes into account the latest data gathered from the ice core drilling projects in Greenland and Antarctica, which started in 1990, and the Ulysses satellite that orbited the sun three times, also launched in 1990, and ended 2009. This new data, virtually unreported in the mainstream media, shows (along with articles found here and here) that it’s the coming ice age and falling ocean levels that we need to prepare for, not melting ice caps that will flood our coastlines. The global warming propagandist will have their work cut out for them trying to garner support from anyone living north of Florida. However, it will not thwart govt’s taxing schemes. I fully expect broke govt’s to start taxing ice. After all, the world knows the over-consuming Americans use way more than their fair share of ice.
Whether it will be the earth’s polarity that flips or the suns, weather volatility will continue to increase, which might explain the two feet of snow reported in Columbia a couple of days ago.
Finally, our biggest Redwoods tell us that man is not more powerful than nature, nor should we meddle with it.
The Feds want the police called on anyone withdrawing $5,000 from their bank account. Banks already report to the IRS on deposits or withdrawals of $3,000 or more, and businesses that deposit cash are being charged a fee – just to deposit cash.
Western (broke) countries are desperate for cash, and it doesn’t take a rocket science to know who they are coming after – anyone with money. Does anyone see the irony in the fact that on one hand they lower interest rates to near zero (punishing savers, pension funds, etc.) to stimulate the economy, and then on the other hand they raise taxes and confiscate the money that’s suppose to stimulate?!? Of course, nothing with govt makes sense, except their desire to protect their own jobs, perks, and power.
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Before getting to an example of real investigative journalism about the incestuous relationship between the Govt and Google, I want to recommend a couple of outstanding reads from Armstrong that will lay the historical foundation as to why and how the current corporatocracy will collapse the world economy. The paranoid and psychotic actions of a govt, whose leaders fear the loss of their job, perks, and power, is nothing new because the passions of man have never changed. However, understanding how it happened before is what makes history interesting.
Whether you do or do not understand why Centrally-Planned Societies Always Fail , an understanding of what propels the world economy is mandatory to comprehend its demise, as well as weathering the coming storm. This historically informative piece by Armstrong is well worth your time, as is this one that unveils the paradox of inflation and deflation, which explains why gold and other commodities have declined in the face of continuous QE (money/debt creation). These are longish reads, so treat them like chapters of a book, which Armstrong is trying to get out – but why not get a head start.
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The fundamentally false premise that society is better off by taxing the wealthy and corporations defies logic and common sense. Everyone should understand that govt (and large corporations for that matter) are significantly less efficient and more corrupt than small businesses. Most should also understand that business creation and growth requires capital, either borrowed or saved. If govt confiscates and mis-allocates capital or scares it away, there goes the capital needed to create and grow jobs. This fact has been proven throughout history, and we are seeing it played out again now. So, why are so many ignorant to what is so obvious?
The “arrogance of officialdom” explains the actions of those in power. What explains the willingness of people to prefer serfdom over freedom? I suppose it’s related to why the Brits (and many others for that matter) idolize and worship a royal family that had such a long history of oppression. It was recently reported that by 2016 the richest 1% will own 50% of the world’s wealth. Forgetting for the moment that much of this wealth will be vaporized when the bond bubble pops between 2016-2020, the misinformation that’s sold as fact is that govt’s are working to fix the problem (a point made at the end of the video). The fact is it is govt that is the big enabler of the 1% (to which govt leaders belong), because they pass laws that give economic advantage to those with political influence.
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While the mainstream media will not do their job of holding govt accountable, many in the alternative media understand the source of our problems and the consequences that are headed our way over the next few years. However, there is one misunderstanding that many who like to label corporations as the villain’s have – that govt does not suffer from the same human frailties as corporations (even though both employ humans).
The sin that business-haters say is the root cause of our economic and social demise is that corporations throw their money around to get what they want. Does anyone see the naiveté of this assertion? Corporations and people will put their hand out even when the chances of getting what they want are low. When the chances are high, not only will they ask, but they will do a lot more work to get what they want (like write a Bill themselves), since the return justifies the investment.
Just as a prudent banker must deny some borrowers, politicians must resist the urge to line their pockets at the expense of the country. Since human nature makes this a risky bet, our Founding Fathers designed a system of checks and balances, that is still dependent on limited govt (since govt has no competition or free market to constrain abuses or eliminate poor performers).
In a good article about the coming crash, the author highlights the ongoing growth of unregulated, Over-the-Counter (OTC) derivatives as the ticking time bomb that will blow up the world. While I have no doubt that derivatives will play a leading role in the financial collapse, it is not derivatives that must be eliminated – it is the career politician. Derivatives have been around since the dawn of trade. It is excessive debt, driven by political promises that are mathematically impossible to meet, and excessive leverage (imprudently granted by politicians) that will be to blame for the economic Armageddon that’s headed our way.
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