The New Economy

Something that has been brought to the surface by the recent economic shutdown is that classical economics seems to have run out of answers. More precisely, we are seeing things today that classical and neoclassical economics said were not possible, at least not in the long term. All over the West, but particularly in the United States, we are seeing contradictions for which there are no explanations. It’s as if we have crossed into a new world that operates by different economic rules.

The best example of this is the debt carried by governments. For a long time, it was assumed that debt levels approaching GDP were unsustainable. In war time or a national crisis, a nation could run up huge debts, but must immediately address those debts after the crisis had passed. This meant austerity or inflation. Today, Japan has debt over 200% of GDP. Greece is at 170% and Italy at 130%. The United States was at 110% before the recent economic calamity.

Those who cling to the old economics keep predicting that sovereign debt will be the downfall of the West, but that’s like predicting rain in Arizona. Eventually, the prediction comes true, but when is what matters. As the John Maynard Keynes famously said, “In the long run we’re all dead.” Maybe there is some point where these debt levels have to be addressed, but everyone used to know this was not possible. Within living memory, trillion-dollar Federal deficits were said to be impossible.

All around the modern economy we see things that should not be happening. America has seen 50 million people file for unemployment. The streets are empty during work days in most cities. It has been an article of faith that wide-scale unemployment would lead to unrest. Instead of marches by unemployed workers, we have riots by the delinquent children of the ruling class. They are not demanding jobs. Instead, the jobless are watching the shenanigans on television.

Similarly, the stock markets are doing the opposite of what economics has said should happen on the cusp of a long depression. Apple became the world’s first trillion-dollar public company on Thursday, as a rise in its share price pushed it past the previously unthinkable valuation. This is a company that makes luxury goods financed on retail debt. Their core market is now unemployed. How is it possible for a “Good Time Charlie” business to boom in a depression?

There may be ways to explain these and other phenomena within the old rules of economics, but those patches to the old theory just create new contradictions that have to be addressed with new patches. It may simply be that the West, having moved past scarcity, has entered into a new world of economics. Just as quantum physics takes over for classical physics at the atomic level, the new economics takes over for the old economics at the post-scarcity barrier.

An example brought up in this brilliant discussion (Video and MP3) on modern finance is the elevation of transaction-creation over capital formation. A company like Tesla has a ridiculously high valuation, despite its many problems, because it creates lots of transactions and creates potential transactions. Everything from government credits to complex financial instruments are spun off by the activity of the firm. As a result, it creates lots of downstream financial activity.

Compared to an old school car maker, Tesla makes little sense. The old school car maker was focused on building cars, which meant they focused on all of the processes to building a car, like supply chains and managing factories. As a result, they had massive balance sheets. The real value of the company was the massive array of assets it owned to build and sell cars. Tesla, in contrast, has a tiny balance sheet, as it is focused on generating economic activity.

The elevation of the transaction over capital formation is one of the unremarked aspects of the new economy. Wealth is now generated by either creating new ways to move information around the system or maintaining a gate through which information must flow to some other part of the system. In the new economy, information can be knowledge about some future transaction or the store of old information in a wealth containment vehicle, like money, assets, credit and so forth.

In the new economics, the demand for genuine innovation, the overcoming of scarcity in some way, is in low demand. Instead, the economy is dominated by middlemen who benefit from each transaction. Therefore, the innovator is one who comes up with a new way to accelerate the movement of information in the system, thus increasing the number of transactions. Facebook is worth billions not because it has a great product or service. Its value is in its ability to generate transactions.

Another aspect of the new economics that seems to contradict the old rules is the rise of credit as an asset. All over the global financial system credit sits on the books of banks, hedge funds and companies as an asset. The asset is taken at face value and often the nature of it is unknown. This was obvious in the mortgage crisis when debt holders had no idea what was in those mortgage pools. Credit is now just another store of information in the financial system.

In fact, certain types of debt are the preferred store of information. The financial system has an unquenchable thirst for US treasuries. Federal debt is now over 26 trillion, a number thought unimaginable just a few decades ago. When you add in unfunded Social Security and Medicare liability, the debt is multiples of that total. Despite this staggering debt load, United States treasuries remain the preferred collateral in the financial system. They are better than actual money.

An irony of this new post-scarcity economic order is that it seems to be evolving toward something closer to the old palace economies of the Bronze Age. All over the economy we see a great consolidation. Amazon is close to half the retail economy now. Five big banks control more than 90% of the financial system. The tech oligarchs are close to having a monopoly on the public square. In their respected spheres, everything flows into them and is distributed out as they see fit.

We have quickly moved from a situation where these new economic models were too fragile to regulate to a situation where they are too big to regulate. In fact, the phrase “too big to fail” is now just an accepted truth of the current age. Like the palace economies, these institutions are not here to serve society. American society now exists to serve these new institutions. As a result, these institutions are actively shaping our behavior to create transactions that serve their needs.

Whether or not this is sustainable is unknown. People who want to the think it cannot go on will find reasons to believe that. The answer though lies in whether this model can last in a world of informational symmetry. As automation takes over the economic system, will there be a way to create more transactions. After all, the robots will reach a point where they know the market value of all items before the market is set. No robot will be able to fool the other robots.

That is another aspect of the new economy that goes unexamined. It is just assumed that automation will idle the human assets the ruling class does not like. In realty, it will be the information class that suffers the most. In a world where financial transactions are conducted among algorithms on the block-chain, what is the need for guys working the phones in a brokerage? How would trades even happen if both sides know the future price of the item being traded?

As with anything new, there are more unknown things than known things. The new field of quantum economics is an effort to take methods and ideas from quantum physics to model economic activity. It starts from the observation that something like the efficient market theory contradicts the assumption that humans are rational and will attempt to maximize their utility. People know the odds, but they keep going to the casino anyway, buying sports cars and following new trends.

There’s also the possibility that reality has simply gone on holiday and will return to put all of this back in order. Some unknown crisis will reveal the massive cracks in the foundation of the current economic model. Everyone will suddenly snap out of the fog of plenty and rush for the exits. After all, the Bronze Age economic model was unable to hold up under the pressure of the Sea People. The current economic model may simply collapse under the weight of a billion Africans.

Media Update: The guys at Myth of the 20th Century had me on as a guest to talk about various things related to economics. I appreciate them having me on. They do a lot of interesting stuff, so I hope everyone will check out their material. Like so many, they have been condemned to the valley of the damned. That means no YouTube of Twitter, but you can download the latest episode here. They also have a Bitchute channel and a D-Tube channel.

Note: The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is like a tea, but it has a milder flavor. It’s hot here in Lagos, so I’ve been drinking it cold. It is a great summer beverage.


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307 Comments
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MemeWarVet
MemeWarVet
1 month ago

Back in March, we all thought we were headed towards a new Great Depression. It didn’t happen.

Kudos to Z for having the intellectual honesty to address the reasons why, rather than kicking and screaming that it’s forever right around the corner, Peter Schiff-style.

Basil Ransom
Basil Ransom
Reply to  MemeWarVet
1 month ago

The joke about Schiff is that he’s predicted “12 of the past 4 recessions…”. All things the same, Schiff and the Austrians are correct that the creation of credit by fiat leads to the situation at hand. The banks have the ability to “manage” the economy strictly through the extension of credit. However, they HAVE to lend at this point otherwise the negative interest rates prevail like they do in Europe. I’m inclined to the Peter Schiff pessimism. Something breaks. Where and what I have no idea but the powers that be are running this thing on spit and duct… Read more »

tarstarkas
tarstarkas
Reply to  Basil Ransom
1 month ago

Everyone sings the praises of the bankers on the way up. I don’t think timing is that important in the grand scheme of things in the event of a collapse. But gold and silver will not protect you. That is my difference with Schiff. He has already left the US, at least on a part time basis and can always run to Israel. We have nowhere to run. The vast majority of Americans have no real savings to protect. They have a job and a house. Mass unemployment will devalue their house and lack of a job will be their… Read more »

JR Wirth
JR Wirth
Reply to  tarstarkas
1 month ago

This isn’t the first time in history that this has happened. The French Revolution had its assignats. Precious metals and farm land are always the best protections for what’s coming. And owning your dwelling outright. What makes the US unique is just how long it has gone without a currency crisis. There’s no generational memory for how to protect yourself.

tarstarkas
tarstarkas
Reply to  JR Wirth
1 month ago

I don’t think there is a good past analogy. America is a far different place than revolutionary France. If anything, Tsarist Russia and Stalin are better examples. The ethnic problems of the Early Soviet Union are pretty ignored today. From the mass starvation of the Ukrainians to the ethnic transfers Stalin did to quell the locals in various places are much closer to the US. How are a bunch of Samalians going to affect Minnesota post collapse? Or the presence of generic Africans in every major city in the US? Various Mestizo groups?

Lineman
Lineman
Reply to  tarstarkas
1 month ago

The best thing you can do has already been stated here 100 times over tars… I don’t know how many times it has to be said before it sinks in… Build fucking Community and if you can’t do that where you are at move to somewhere you can…We can talk and talk about it until the cows come home but if your not moving in that direction then your pretty much accepting your defeat without even trying…Also for some people that might mean leaving the country but for me and mine we are doing it here in the Bitterroot Valley… Read more »

SidVic
SidVic
Member
Reply to  Lineman
1 month ago

Lineman, you should set up a survivalist timeshare company. Aquire some land with gravity fed water. Throw up a barn with cattle. build cheap functional cabins. sell time shares for summer vacations and a clause for permanent settlement should the shit hit the fan. Don’t know how one would exclude vibrant diversity. but if you might not have to actively if you advertised on sites like this one. Bitterroot Christian settlement. It would be sorta like a insurance policy for people living in the death traps to bug out to went the balloon goes up. Build enough meat on the… Read more »

Last edited 1 month ago by SidVic
Reply to  SidVic
1 month ago

The Vibrants don’t like the mountains. Whites are mountain people.

Lineman
Lineman
Reply to  SidVic
1 month ago

Shhhh don’t tell anyone…

Ivan
Ivan
Reply to  Lineman
1 month ago

WTF you’ve already done so multiple times in the past week. (Told anyone). Most people I know in MT would prefer you keep your trap shut.

Exile
Exile
Reply to  Ivan
1 month ago

I’ve had that talk about other states in the NW – we want more based Whites for neighbors. It’s not as if MT is a secret.

You can have Us for neighbors or you can have Them. The more of Us that live there, the less welcoming it is for Them and the fewer jobs, homes etc… for Them to live in rather than Us.

Lineman
Lineman
Reply to  Exile
1 month ago

They don’t get that Brother and then they bitch when the Commie moves in next door but since they didn’t do shit except hide out instead of inviting our guys to come be neighbors they get surrounded and have to pick up and move again…Tried to tell those kind people but their just to stubborn or stupid to get it…

Ivan
Ivan
Reply to  Lineman
1 month ago

Your reference to “they” speaks volumes.

Get a clue, everyone is not your brother.

Ivan
Ivan
Reply to  Exile
1 month ago

Most of them regardless political persuasion want to turn it into the shit hole they came from.

They build their mcmansion or hobby ranch and drive up taxes.

Yes, “they” do get “it”. “They” have been here before you considered it.
You referring to “they” speaks volumes, lineman.

Mikep
Mikep
Reply to  JR Wirth
1 month ago

Avoiding debt would seem to be good advice. As for gold, there is a world of difference between owning gold and owning paper purporting to give ownership, as many people will no doubt discover before too long. Even physical possession is no grantee against a government which decides that it’s need to own precious metals is the greater.

SidVic
SidVic
Member
Reply to  Mikep
1 month ago

disagree, this may the time to borrow and buy hard assets. asset that can be lost in a nearby lake.

MemeWarVet
MemeWarVet
Reply to  thezman
1 month ago

The lack of hyperinflation over the last four months is going to make Universal Basic Income all the more popular.

diconez
diconez
Reply to  MemeWarVet
1 month ago

yep. it will happen. the hamsters will be fed. just enough though, so they spin. it’s simple, the debt apocalypse never comes, because the doofuses keep working 60 hour weeks and refinancing their debts forever, to get Daddy a sugarbaby and a Mustang and transdaughter PreP and a Tesla. since we are officially all palace economies, we have to measure by the first most important asset of these: the slaves that keep it going. examples: Russia has oil and serfs and vodka factories, China has bees, India classy butterflies and worthless ants, Mexico coke-roaches; America has its hamsters, usually the… Read more »

Last edited 1 month ago by diconez
abprosper
abprosper
Reply to  MemeWarVet
1 month ago

UBI was inevitable anyway. Automation has eliminated so many kinds of jobs and categories of jobs as the render the economy highly unstable. Hell even the job killers are unstable, things like Expedia which contributing to killing most trip planning jobs (that used to be a decent jobs BTW) have lost 90% of business. Its going to get worse when the office has people working from home and not be called to go back. Ignoring the horrid social costs and work/life issues, the economic spill over effects will be profound. All those shops that serviced the office along with the… Read more »

Judge Smails
Judge Smails
Reply to  thezman
1 month ago

Nothing but good times ahead. With the Biden/Harris administration it will be a squirrel, rat, pigeon, family pet, miscellaneous road kill in every pot.

usNthem
usNthem
Reply to  Judge Smails
1 month ago

Skink would approve

Jack Boniface
Jack Boniface
Member
Reply to  thezman
1 month ago

The implosion already is beginning. State and local govt. pension funds soon will start blowing, like Puerto Rico, leading to dozens of bankruptcies, first in Blue States, then Red (see link). Unemployment will remain above 10% for 4 years. When a Dem wins in 2024 (not this year), everything will crash even faster. After that, who knows.
https://www.wsj.com/articles/the-state-pension-crisis-goes-beyond-the-big-blue-states-11590791639

Screwtape
Screwtape
Reply to  Jack Boniface
1 month ago

If GM (a pension that happens to build cars) is too big to fail, why not public pensions? Muni bonds and state pensions can be rolled into fed’s infinity balance sheet or some other public loss private profit Blackrock sidecar. Not that there wont be some cram-down where beneficiaries get a shit sammy. But half a shit sammy is better than nothing they will inform them. I am sure the process would involve a million billion transactions over some protracted timeline to keep the advisors and banks and certain underlying assets picked as winners long enough to send another generation… Read more »

Exile
Exile
Reply to  Screwtape
1 month ago

When CalPERS blows up the explosion will be visible from space. Illinois will go first. Fed bailouts for these states are 101% guaranteed.

JR Wirth
JR Wirth
Reply to  Exile
1 month ago

This is absolutely true and sad. And Senators from places like WY will sit there with thumbs up asses. The small list of fiscally responsible states will become even smaller. The whole point of a Senate is to either stop something like that or give your state something in return.

Lineman
Lineman
Reply to  Exile
1 month ago

On Calpers it’s a fiasco for sure talking to a guy that works for them but is trying to get out he says he has to not only pay in for his pension but he pays a separate portion in for the retirees that’s how bad it is…So not only do they need his portion to pay the retirees they also need him to pay an extra portion because his regular isn’t cutting it…If they were a private sector they would be in jail for a Ponzi Scheme writ large…

JR Wirth
JR Wirth
Reply to  Lineman
1 month ago

They have a 7% guaranteed return. I don’t think that’s changed. In a market with zero % interest rates. They have to make more aggressive moves every year, and the Chinaman in charge is routing a lot to Chinese ponzi schemes.

diconez
diconez
Reply to  Screwtape
1 month ago

the blue haired and other monkeys are already are on medicare, getting free emergency treatment at private hospitals, where do you think the infinity balance sheet comes from? it’s the lower middle segment that has no coverage, the famed donut hole left by the destruction of unions and their health plans. cover these more, and the bottom rung less, and charge the rent-owners at the top more instead of the producers in the upper middle. otherwise i agree, it’s what the fascists did a century ago, roll the public debts into some instrument that could be paid for by whoever… Read more »

Last edited 1 month ago by diconez
ExNativeSon
ExNativeSon
Reply to  Jack Boniface
1 month ago

As a retired college professor and “proud” recipient of CalSTRS pension money you need to understand that CalSTRS, while about 64% funded at the moment, has a plan. We gots a plan, OK. The plan is that the state and the districts will make everything right by 2046. Got it. We are going to make a killing in the stock market while also being SJWs about who we invest in. The stock market cannot tank, the federal government will bail out the fund, and whats left of the stupid middle class will fill in the gaps with tax increases. You… Read more »

Jack Dobson
Jack Dobson
Reply to  Jack Boniface
1 month ago

Pensions will be allowed to go under before gibs, particularly EBT, but they will be bailed out up until that trade-off has to happen. One major driver of the Left’s furious power grabs is in fact the pending implosion of pension systems.

JR Wirth
JR Wirth
Reply to  thezman
1 month ago

A large percentage of American workers actually got a raise from the unemployment benefits. They bought i phones and paid some credit card bills.

MemeWarVet
MemeWarVet
Reply to  JR Wirth
1 month ago

I think I mentioned a few weeks ago that the local pizza chain couldn’t get drivers (who make $20+ per hour) because of the $600 per week.

Surprise! They $600 went away and they’ve got drivers again.

Vizzini
Vizzini
Reply to  MemeWarVet
1 month ago

Yup. I’ve had trouble getting ranch workers all summer. Then, the last week of July before the benefits run out, they started showing up again.

Exile
Exile
Reply to  MemeWarVet
1 month ago

Those damned lazy proles. Don’t working people suck?

Is this really the look you’re going for here, Meme?

MemeWarVet
MemeWarVet
Reply to  Exile
1 month ago

I don’t think it was particularly fair to working people that the unemployed were making more money for doing nothing, no…

Lineman
Lineman
Reply to  MemeWarVet
1 month ago

That’s what they want though meme to drive a wedge in between us even further…Am I pissed about it sure I’m out busting my ass and didn’t get anything from the government but let’s be pissed at the government who allowed women in the workplace, hordes of aliens, and got in bed with corporations which drove down wages where the average guy can’t make a decent living even if he bust his ass…The only way we win is to get back to the basics and work up from there with a collapse mixed in along the way…

Range Front Fault
Range Front Fault
Reply to  Lineman
1 month ago

Lineman…so this is Divide and Conquer…us against us?

Lineman
Lineman
Reply to  Range Front Fault
1 month ago

Yes so we have to be smarter than them and be mad at the real culprits…

abprosper
abprosper
Reply to  MemeWarVet
1 month ago

Maybe its unfair to pay such low wages to working people that an extra 1200 a month seems like a good deal.

Chester White
Reply to  abprosper
1 month ago

It’s $600 per week, on top of the state benefit. For most places that’s 50K per year. Gourmet poverty and new iPhones (viz Apple stock)

abprosper
abprosper
Reply to  Chester White
1 month ago

$600 per unemployment check which is $1200 a month at least here in California.
That amount puts many workers roughly where they would have been if wages as percent GDP had kept pace with GDP growth and weren’t arbitraged down.

Compsci
Compsci
Reply to  MemeWarVet
1 month ago

At the wife’s business, employees asked to be laid off or fireD in order to get the Fed $600 extra and the $240 State unemployment.

Reply to  Compsci
1 month ago

Rather shortsighted of them, don’t you think?

abprosper
abprosper
Reply to  Ostei Kozelskii
1 month ago

Not really. Its not like they’ll get in come otherwise and the odds are very good that unemployment will end up morphing into UBI or if the economy picks up they ca be hired back. If you want conscientious workers focused on the long term it costs money regardless of skill level. This does mean that a lot of business models need to change which won’t be easy. Getting say many slaughter houses and meat packers to do the minimum for safety requires a huge armed federal bureaucracy and many of them would rather shut down and starve people than… Read more »

Mikep
Mikep
Reply to  MemeWarVet
1 month ago

You need to get used to this as it’s unfortunately your future. For example I have a work colleague who’s father is trying to build a house in Mexico. A strange pastime for a retired British civil servant perhaps, but he has recently taken ownership of a Mexican woman and needed somewhere to keep her. Anyway, he decided to combat the notorious Mexican work ethic by paying an extremely generous bonus to his workers after they had finally completed some task or other in the hope that he would see some improvement in their punctuality as a result. Sadly he… Read more »

diconez
diconez
Reply to  Mikep
1 month ago

the Church and the nobles fed us for longer, it’s what we know. and like you say, at least we don’t smell of curry nor cover our nice women up.

although at least back then we were more decent, and y’all could keep us at bay. since the freemasons took over, not so much.

abprosper
abprosper
Reply to  Mikep
1 month ago

The thing about the Protestant work ethic is that it is only suitable when enough gains go to the man doing the work. No one in Mexico is going to get ahead nor will a moderate pittance of a bonus improve the life of an 90IQ Mestizo in any meaningful long term way so why bother?
Given the situation in Mexico and to a lesser degree in the US its outright cuckholdry to work hard for the man when you aren’t forced too.

Exile
Exile
Reply to  abprosper
1 month ago

This is a big part of the dilemma. The Prot work ethic is a moral gloss to a sucker’s bargain unless the worker has meaningful work – a family & home to support and/or work that really provides a sense of accomplishment and purpose, not just a McJob.

Our economy does a shitty job of that largely because of scale and wealth concentration issues, as well as a consumer aesthetic that prefers cheap mass produced goods instead of artisanal craftsmanship and quality.

abprosper
abprosper
Reply to  Exile
1 month ago

The problem is that an artisanal economy can’t protect itself against a mass production one. Just ask the Southrons how that went.

Ben the Layabout
Ben the Layabout
Reply to  Mikep
1 month ago

Clearly Mexicans do honest work at least sometimes, or else they wouldn’t be in demand in the USA. I’m not sure how current this is, but here’s an anecdote from a Rand book if I recall. An American corporation had a small plant in Mexico. A visiting executive figured out how he could double the productivity of the line. As the employees were paid piece rate not hourly, their wages would double. The old Mexican boss smiled, shook his head, and voiced doubt it’d work. No matter, the changes were made and put into operation at the next month’s start.… Read more »

Mikep
Mikep
Reply to  Ben the Layabout
1 month ago

Those Mexican workers may not necessarily shine on IQ tests, but they’re clearly not stupid. When making the window and door openings for this same house they are careful to make them all uniquely different sizes, thereby guaranteeing work for their neighbour the carpenter. No mass produced plastic Chinese windows are gonna be putting him out of work.

abprosper
abprosper
Reply to  Mikep
1 month ago

American “Capital” is more addicted to cheap labor than Anthony Kiedis was to smack. Cheap labor however is anti civilization especially when combined with anti family policies.

White Alyssum
White Alyssum
Reply to  MemeWarVet
1 month ago

An indictment of American wages, suppressed for decades from mass immigration. Like an extra $600 a week is living high on the hog. How far America has fallen. Meanwhile, our politicians and friends engorge themselves with millions of our tax dollars.

Last edited 1 month ago by White Alyssum
Ben the Layabout
Ben the Layabout
Reply to  White Alyssum
1 month ago

I just googled and got (slightly) updated: in real terms, wages peaked in 1974. What suprised me is that, the graph claims, they matched that peak just over a year ago, March 2019. Given 2020’s dramas, I think we can assume it’s dropped since. 🙁

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  JR Wirth
1 month ago

For perspective, I was paid $20/hour to operate an air hammer in refractories circa 1985 before I snagged a micro-programming job, yes I know VAX, for $20/hour as an engin student at Michigan. It’s 2020 and people are enjoying $600/week?! Eff me. I was poor so long and then I wasn’t. Who can live off $600/week on their own let alone support a family? The negroes control more than that per household.

Vizzini
Vizzini
Reply to  Zum Deutschen Eck
1 month ago

It’s +$600/week over and above the unemployment they would normally be getting.

There are lots of people out there working for $10-$15 per hour, so normal unemployment +$600/week is a huge raise.

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  Vizzini
1 month ago

I did not know. So, double-dipping. Pay off those credit cards until next time, Bob ….

diconez
diconez
Reply to  Zum Deutschen Eck
1 month ago

that’s another perverse incentive. they don’t reward you for not needing credit, they reward you for needing it and working your ass off to pay it. in short, you have to bend the knee to the patrons. at least back in the day the Church and the nobles let you and your community stay in your land and eat from it, and keep your saints and weapons and fair women from foreigners and nature. now you have to beg different patrons – patron bank, patron government, patron retailer, patron entertainment, patron tech.

Ben the Layabout
Ben the Layabout
Reply to  diconez
1 month ago

Are you patronizing me? 🙂

abprosper
abprosper
Reply to  Vizzini
1 month ago

The US is guaranteed a catabolic collapse because of wage arbitrage. Wages must come up to an immigration ban and family stability imposed but the people with power cannot and will not allow it So baring a war or radical forced change over the long term, collapse is certain. Society has become more and more costly to operate and the things that are required to mitigate that, increasing wages and decreasing social costs are impossible so the system will fall. In the short term, mass money printing and handouts can hold the line a bit but if we don’t fix… Read more »

Ben the Layabout
Ben the Layabout
Reply to  Vizzini
1 month ago

Also usually when you’re living in Mom’s basement and all utilities are paid, rent is cheap to non-existent 🙂

abprosper
abprosper
Reply to  Ben the Layabout
1 month ago

So long as you pay into the household fund, its fine. If you are bothering with nookie. go rent a motel room. We assume that its a good idea to split families. Its not. Extended families are in every way better than nuclear families. We push nuclear families mainly to pump consumption and because its the smallest, weakest, stable configuration. A large extended family has littl eneed for the state and if big enough and mean enough can even protect itself to a high degree. What it doesn’t do is consume as much which a growth based, Mammon loving economy… Read more »

Compsci
Compsci
Reply to  Zum Deutschen Eck
1 month ago

The average salary in this berg is about $20-22k. That $400+ a week or so. You add $600 on top of State unemployment of $240 and you’re sitting pretty. Since those type of jobs are pretty much at the bottom end, you can pick one of them up anytime, anywhere.

Phoenix
Phoenix
Reply to  Zum Deutschen Eck
1 month ago

Cool story.

abprosper
abprosper
Reply to  JR Wirth
1 month ago

And saved. More money has been saved at this point than I think ever, before.
The big money boys at the Fed were talking about stopping people from saving that transfer payments but its pointless as most of the people who needed them spent them and those that didn’t who got say a stimulus, could just pay bills with that and save the earnings.
High savings also suppress inflation and while yield is low to zero, so is price inflation.
Covid and the stupid appears to have killed consumerism , no idea what comes next. Hopefully not ideology and war.

Chester White
Reply to  abprosper
1 month ago

If you want to make people spend the money, send them a debit card that expires in 30 days.

abprosper
abprosper
Reply to  Chester White
1 month ago

Won’t work. The supply chains can’t handle the shock. Also bills still need to be paid and having people go without electricity or homeless won’t fix the velocity of money, quite the contrary. Lastly, people who still have an income can just shift earned funds to bills and debt reduction anyway. They are the issue, not the suddenly poor. As far as long term fix, if you want efficiency in your economy, go to a basic income of 1200-2400 a month for everyone for good. If you are able or willing to regulate or capable of long term planning which… Read more »

BigSteve44
Reply to  thezman
1 month ago

At least we have Zman helping to lead the way in the thinking behind what’s going on. Advice for short-term and long-term financial investment, etc.? Short-and-long-term preparations?

Compsci
Compsci
Reply to  BigSteve44
1 month ago

The only thing Z-man has taught me is that I don’t know “jack” about economics.

Mikep
Mikep
Reply to  Compsci
1 month ago

Don’t know “jack” about economics! That’s almost as much as our leading experts in the field.

Ben the Layabout
Ben the Layabout
Reply to  BigSteve44
1 month ago

Based on first-hand field research in just the past few months, I heartily suggest you avoid shorting the markets, at least with leveraged inverse funds 😀

Sandmich
Reply to  BigSteve44
1 month ago

I’m thinking, seriously, of a long term dollar short by taking out a 30 year loan on a big piece of rural property/farm land. I figure worst case scenario I have to sell out to for whatever the dollar is (not) worth at the time.

Exile
Exile
Reply to  thezman
1 month ago

The other 6 trillion vanished into the pockets of austerity and moral hazard shills like Kudlow, Mnuchin & Laffer who are lashing the proles about “no more free lunch, get back to work, bums.”

Never forget the 6 trillion.

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  Exile
1 month ago

This post made my day. “Never forget the 6 trillion!” Thank you kind sir.

diconez
diconez
Reply to  Exile
1 month ago

yes, we knew the rich had to get their free lunch first, several courses of course.

there’s legit too many bums too though, which doesn’t help, they are only given lunches when needed. and of course there’s the willing cogs in the middle.

Dinothedoxie
Dinothedoxie
Reply to  thezman
1 month ago

A little noted aspect of the dems latest Covid relief bill is a $1trillion dollar bailout package for state and local governments.

usNthem
usNthem
Reply to  Dinothedoxie
1 month ago

That’s probably one of the reasons Trump is “threatening” to veto it. Another one of his tough guy threats to do this, that or the other.

diconez
diconez
Reply to  Dinothedoxie
1 month ago

if only it actually bailed them out.

Member
Reply to  thezman
1 month ago

This is also my take on things. No evictions + government handouts for basic expenses means that there’s a feeling that nothing has changed. Officially there’s 30% or so unemployment but until the money stops it won’t matter that much.

abprosper
abprosper
Reply to  pozymandias
1 month ago

That’s over in 2 days and in a few weeks mass evictions start.
Hope you have lots of ammo and food things might go hot.

miforest
Member
Reply to  thezman
1 month ago

i think every branch of government from a town in maine to the federal gov are operating at a defecit state right now. they are buying stuff they will not be able to pay for when the bill come in. I think they are counting on the dems printing them all masses of money when they take power after the election . this may or may not be what happens. I really don’t think they understood the economics of the shutdown they did. they businesses they runout of existence because they were owned by republicans took a lot of other… Read more »

Ivan
Ivan
Reply to  thezman
1 month ago

The shit already hit the fan. Soon it will fly about the room.

JR Wirth
JR Wirth
Reply to  MemeWarVet
1 month ago

That argument is like watching the first five minutes of a two hour murder mystery movie and proclaiming that no one got murdered. March was four months ago. This is a long haul. Peter Schiff is like a broken clock. It is right twice a day, and it’s half past 11. What Schiff does know is that you can’t get or have something from nothing. A sacrifice must be made for everything. Consumption must somehow come from production.

MemeWarVet
MemeWarVet
Reply to  JR Wirth
1 month ago

Four months is plenty of time for warning signs to set in.

Where’s the inflation? Why are tourist zones still packed?

Life isn’t all that much different than February, except everyone wears a mask and the professional class works from home now.

There’s plenty of evidence that in a credit-based economy, the classical rules no longer apply.

JR Wirth
JR Wirth
Reply to  MemeWarVet
1 month ago

Our economy is debt-consumption based. The Fed jumped in $6 Trillion. That better create some activity at Applebees carryout. Have you seen the mortgage Forbearance level? I’m reminded of football players with broken bones from the 70s that were just shot up with painkillers and given a slap on the ass to go back out onto the field.

MemeWarVet
MemeWarVet
Reply to  JR Wirth
1 month ago

And what’s to say that “money printer goes brrrrr” can’t last forever?

I’m well aware of the classical arguments as to why it can’t, and until March I was fully on-board with them.

But now?

JR Wirth
JR Wirth
Reply to  MemeWarVet
1 month ago

I’m going to go with the laws of nature. That there’s no free lunch. God likes macabre irony. We’re in the short era between the laws of nature being violated, and the consequences to be paid. In this time, everyone either questions their sanity or begins believing in the lie.

usNthem
usNthem
Reply to  JR Wirth
1 month ago

It’s getting to the point that the only thing you wonder about is why you didn’t buy Apple, tesla, zoom, Amazon etc., four months ago…

Toasty
Reply to  usNthem
1 month ago

The stock market is the first sign of inflation. Ten years from now, Tesla will be selling their cars for 10 million fiat buck each.

2 thousand fiat bucks a share for Tesla is a bargain.

Going forward people will still loose thier shirts on the stock market, but it will look different.

The guy who makes a %200 annualized return will maintain his wealth, while the investor with a mere %100 return will see the real value of his wealth severely reduced. He also gets to pay taxes on that “return”

diconez
diconez
Reply to  Toasty
1 month ago

why would Tesla be successful? otherwise i agree. the bottom and middle will simply disengage more from the top, even if eased into it with ubi and free credit and netflix and chill culture. it’s not noticeable now because the distance is so big, and the top knows how to keep the others busy. it’s like knowing the sun is incredibly much larger than what is seen in the sky, but distance and the atmosphere and the warmth make it palatable. eventually many will have their wealth severely reduced, but the drones will simply be over them, and they will… Read more »

Last edited 1 month ago by diconez
Educated.redneck
Educated.redneck
Reply to  usNthem
1 month ago

Lol, sucka. Some of us did. Got a new-to-me pickup and deer rifle, too.
Investing tip: assume everything in the news is the opposite of reality, and the banksters will never allow anything that actually hurts them.

abprosper
abprosper
Reply to  JR Wirth
1 month ago

Paraphrasing Keynes here The economy can stay irrational longer than you can stay alive,

Ben the Layabout
Ben the Layabout
Reply to  JR Wirth
1 month ago

Heinlein is a master of sarcastic humor. In his The Moon is a Harsh Mistress he posits a world where the Moon is colonized, and it is needed to grow food for Earth, sent there by electromagnetically launched containers. This is scarely economical by any conceivable use of energy. Yet after the Moon rebels, it’s official motto is TANSTAAFL (“There ain’t so such thing as a free lunch.”)

Sandmich
Reply to  JR Wirth
1 month ago

I recall during the DotCom boom, NPR’s MarketWhatever show had a story about how companies with negative profits are the new normal, the line being that no one would have shorted the rail companies back in the early 1800s.

abprosper
abprosper
Reply to  MemeWarVet
1 month ago

It can go on for a very long time so long as the velocity of money is kept low. Discussing the complexities of demand would require a blog of my own, not that I am an economist but as far as I can figure consumerism has collapsed. This means between debt and lack of ways to spend money or invest in money isn’t moving which means in anything that isn’t high demand . inflation will be low. Food is excluded here as there is a global food crisis as is ammo for obvious reasons but its very possible money printing… Read more »

MemeWarVet
MemeWarVet
Reply to  abprosper
1 month ago

That all makes sense. Probably the most coherent explanation I’ve heard for the past four months thus far.

abprosper
abprosper
Reply to  MemeWarVet
1 month ago

Thanks for the high praise.

abprosper
abprosper
Reply to  JR Wirth
1 month ago

In this case the field no longer exists and there is no reason to support the NFL anyway.

Ben the Layabout
Ben the Layabout
Reply to  JR Wirth
1 month ago

Yes and no. True in the sense of phsyical goods or services of course. However, once you invent a debt based accounting system, anything is possible 😀 Right now, we are the privileged class in a seemingly magic land where we can charge and charge on our credit card, and we haven’t had to make any payments yet. This works great until nobody accepts the credit card… Oh yeah, when that happens, the repayment of the accumulated debt becomes rather unlikely 🙁

Compsci
Compsci
Reply to  MemeWarVet
1 month ago

Not sure paying people to stay home and not work is avoiding a recession—just papering it over.

MemeWarVet
MemeWarVet
Reply to  Compsci
1 month ago

I don’t disagree- but I’ve found myself asking “what evidence is there that this can’t go on forever in a post-scarcity economy?”

I don’t have definitive proof that it can’t.

SidVic
SidVic
Member
Reply to  MemeWarVet
1 month ago

Yeah, i promised myself to study the economy after 2008 so that i wouldn’t be such dumb money. My money is dumber than ever. That mike burry said the play is land with gravity fed water source back in 2011. That sounded ominous.

diconez
diconez
Reply to  MemeWarVet
1 month ago

i think eventually the moral and mental, and even physical, degeneracy created by this lack of scarcity, will break the dam somewhere. materially everyone has a lot, but people are weary or bored, only living the moment, and therefore prone to ignore evil to try to keep sane. still, many somehow feel “something ain’t right”. when the productive works at the Amazon warehouse 12-16 hour days, while the monkey collects checks and rapes outside at night, and it happens in the same neighborhood everywhere in America, maybe something will change. until then, we are on a slow drip.

abprosper
abprosper
Reply to  Compsci
1 month ago

We are already in a depression with 35% GDP decline.
Problem is there is zero demand for labor that pays well, requires moderate skills and can support a family in an urban society.
Demand for low skill, modest pay jobs is declining too. Kiosks and Apps reduce employment in food service
Given the labor surplus even without immigration, wages are easy to arbitrage down,
Ultimately to prevent favella nation and or race war now we have to paper it over as there is no way to raise wages or to lower prices to meet wages.

DFCtomm
Member
Reply to  MemeWarVet
1 month ago

You think this is over? It hasn’t even begun yet. It’s all being held above our heads by the power of faith….and yet they attack the foundation of that faith at every turn.

van helsing
van helsing
1 month ago

sea people = phoenicians

Karl McHungus
Karl McHungus
Reply to  van helsing
1 month ago

says you. wouldn’t the locals, who were neighbors of the phoenicians, called them by their name?

TomA
TomA
1 month ago

History is pretty good predictor of the fate of economic bubbles. The only thing novel about our current bubble is it’s enormity. Ask a Venezuelan about life in a post bubble-collapse world. And we are a bifurcated people now. When the going gets tough, the productive will roll up their sleeves and go to work, and the other half will whine and bitch and riot for government gravy. And there will be jackboots to quell the unrest and enslave the dwindling productive class. And it all will be done for the “Greater Good.”

tarstarkas
tarstarkas
Reply to  TomA
1 month ago

Cops are hired and judged by their ability to follow orders. They will do as they are told. They will stand by and watch vibrancy riot and crush whites who even try to fight back.
The conservatives who the military and cops are on their side are total fools.

TomA
TomA
Reply to  tarstarkas
1 month ago

Yes, reality is reality, and it’s best to accept reality as it is and deal with it rather than bemoan it’s downside. All tyrannies require an enforcement corps, and most of the jackboots are simply ordinary Joe’s doing a job. Accept that reality and work around it. The path to victory over tyranny does not involve fighting the peons on the bottom of the social pyramid, be they jackboots or deranged rioters. Focus your efforts where is matters most.

Reply to  tarstarkas
1 month ago

The only way the Hutus could come close to “crushing” whites is if the cops are actively on their side. That won’t happen. Once it all goes down, we will smoke the Negros like a cheap panatella.

skeptic16
skeptic16
Member
Reply to  Ostei Kozelskii
1 month ago

I don’t think negroes have ever won a battle or war unless they have overwhelming numbers and outside help. The exception is Isandlwana where they only had a 5:1 superiority. Even the civil rights war was really won by jewish lawyers.

Nunnya Bidnez, jr
Nunnya Bidnez, jr
Reply to  TomA
1 month ago

“When the going gets tough, the productive will roll up their sleeves and go to work”

Up until they decide not to.
When the productive decide to only produce for their own needs, without producing surpluses to sell into the market, that’s when TSHTF.

Lineman
Lineman
Reply to  Nunnya Bidnez, jr
1 month ago

Exactly which is why I push for Communities so hard that way you keep working but its for your own people and you can succeed where others are failing…

usNthem
usNthem
1 month ago

We are truly living in strange times where nothing makes sense anymore – at least those tried and true things we always took for granted. And the coronatard fear/uncertainty keeps churning along, retarding any semblance of returning to some kind of normalcy. I guess tens of millions of people out of work, a stunted economy, 401ks going to the moon for no apparent reason, or collecting one’s ubi fro uncle sugar IS the new norm.

Whitney
Member
Reply to  usNthem
1 month ago

I saw what looked like an affluent 60ish white guy pumping gas, no mask, then he got into his car and put a mask on and drove off. There was no one else in his car. I don’t even know what to do with these people they are so crazy and it just seems to be getting crazier. I think this is one of the paradoxes. The more safety we demand the less safe everything becomes

Epaminondas
Member
Reply to  Whitney
1 month ago

I’ve seen them on hiking trails in wilderness areas. They see me coming, then hurriedly put on masks. Sometimes I see them just huffing and puffing along wearing a mask…miles from the nearest road. Wrap your head around that.

Whitney
Member
Reply to  Epaminondas
1 month ago

I am so tired of being treated like a disease vector. When I’m walking down the street I refuse to cotton to this nonsense but almost always people than walk in the street so they can stay the requisite 6 feet away from me because, you know, I’m a disease vector

Lineman
Lineman
Reply to  Whitney
1 month ago

All part of the plan sister to make us more atomized and distrustful of one another…It’s easier to get people to turn on one another when they hate or fear each other…

JR Wirth
JR Wirth
Reply to  Epaminondas
1 month ago

My neighborhood has joggers with masks. I hope they blow out their heart valves.

Compsci
Compsci
Reply to  JR Wirth
1 month ago

I hope by the word, “joggers” you mean the traditional White people exercising. If you had feral Blacks running through your neighborhood… 😉

Ben the Layabout
Ben the Layabout
Reply to  Compsci
1 month ago

Uh, what is the correct term for a Melanic Hominid® member of the track and field team, if he’s out running through town? They are tops in certain track events. We must give them their due. 🙂

Kgun
Reply to  Epaminondas
1 month ago

At the marina I see couples
wearing masks on their boats
as they motor or sail out into the bay.
Absolutely jaw dropping stupid.
They are 100’ from other people.
Its a minority but every time I see it
I wonder what kind of personality
does that? If it wasn’t so dangerous
to interact with crazy I would enjoy asking them. As others have noted the best thing about the masks is I can identify crazy
from a hundred feet away now.

Ganderson
Ganderson
Reply to  Whitney
1 month ago

My son wondered aloud to a guy in his car wearing a mask “ do you wear a condom when you jack off?”

Masks have just been made mandatory in the downtown area of my NE latte/college town. Nuts, just plain nuts.

Ben the Layabout
Ben the Layabout
Reply to  Ganderson
1 month ago

It just occurred to me today: A year ago it was unacceptable and proably illegal in some cases to enter a store with your face masked. Today failing to be so, can get you cited or arrested or refused service. What a difference a bat virus (with optional stopover in a laboratory) and a year makes…

Last edited 1 month ago by Ben the Layabout
Whitney
Member
Reply to  Ben the Layabout
1 month ago

Year! It started in March. And we still have five months to go of this year and half the country seems to be demonically possessed

Range Front Fault
Range Front Fault
Reply to  Ganderson
1 month ago

Way visual! I love this ZBlog!

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  Whitney
1 month ago

I was masked today. I went to the outdoor farmers market, which has lanes separating everybody by tapes, at 645am by habit because in former times the restaurants would all call for the best items at 7. It was sparsely populated but except for me they were all old hags. I purchased my desired items as the hags would pull up to me and scream “where is your mask!!!” and I would ignore them. I bought my final item with a faggot screaming in my ear, “you need to leave sir!!” At which point I told him, quite honestly, that… Read more »

The Wild Geese Howard
The Wild Geese Howard
Reply to  Zum Deutschen Eck
1 month ago

I agree about the masks.

However, the Karens and fags will eventually summon the badge gang and you will have a real issue on your hands.

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  The Wild Geese Howard
1 month ago

I have get-outta-jail-free cards in my wallet. My state and municipality are utterly corrupt and I provide professional services to this person and that person. Shy of murder, I won’t get arrested.

If only I could manage to procure a Karen/No Fags card … wishing ….

The Wild Geese Howard
The Wild Geese Howard
Reply to  Zum Deutschen Eck
1 month ago

I have get-outta-jail-free cards in my wallet.

I’m glad for you. The vast majority of us, myself included, don’t have that type of option available.

So, for now, for me it’s grey man theory.

SidVic
SidVic
Member
Reply to  Zum Deutschen Eck
1 month ago

well that’s what i call building community. Now start making freinds with the farmers and you are covered.

Last edited 1 month ago by SidVic
Whitney
Member
Reply to  The Wild Geese Howard
1 month ago

in the last week, a boomer white woman maced two people outside for not wearing a mask, a boomer white woman in a Walmart told a woman and her toddlers that she hoped they would all die because the toddler’s weren’t wearing a mask, and a guy shot into a hotel because people weren’t social distancing

3g4me
3g4me
Reply to  Whitney
1 month ago

Just wait until the goggles are mandatory, too. Full hazmat suits aren’t far off.

Range Front Fault
Range Front Fault
Reply to  Whitney
1 month ago

Holy shit! Girlfriend, get your butt moved and gone. Went to the post office yesterday in small town amerika, just me and 2 plygs (FLDS polygamists in their big hair and long dresses. Rather have plygs as neighbors than obsequious stupid Fs). You laugh! But the 3 of us didn’t mask up. 8 people came in behind all masked up looking furtive and scared. My height lengthened, my shoulders straight and tall, have learned to stare with an 8 on the Ricter Scale look. When forced, I do wear a mask…under my nose. So far not messing with The Range.… Read more »

Paintersforms
Paintersforms
Reply to  Zum Deutschen Eck
1 month ago

https://youtu.be/MpmRWGRM1RQ

Couldn’t resist 🙂

Ben the Layabout
Ben the Layabout
Reply to  Whitney
1 month ago

In the scene you describe, his mistake was putting on a mask in his car with I assume hands that had just touched the gas pump (without being sanitized.) While transmission by air is far more likely than by contact, what that customer did probably exposed him to a random sample of a few dozen people’s hand germs. Not wise. If I’ve read the scene correctly, it is a good example of crazy. Not , as you might think, because wearing a mask is foolish. But you just described someone who is pretending to take the precautions but doing it… Read more »

skeptic16
skeptic16
Member
Reply to  Ben the Layabout
1 month ago

I think contact is a far more likely transmission route than airborne.

Reply to  Whitney
1 month ago

Good point. Those safety maniacs don’t seem too concerned about the danger presented by Burn, Loot, Murder and ANTIFAG.

diconez
diconez
Reply to  usNthem
1 month ago

uncle sugar will be the norm from now on. will be nice for some productive people who do need the gibs, but most will just give it back to the machine, which is always ever efficient and ruthless in sterilizing its inefficient members, by ever more robotized standards, until all cogs are worn, then it breaks down. also, if robots replace brokers, why wouldn’t they replace union negotiators, or any bartering for that matter. whoever controlled these automated blockchains and algorithms would control tender, and in effect the means of production. not to mention, crypto itself is controlled by access… Read more »

sentry
sentry
1 month ago

So the new economy is not about production any longer, it’s about middle men, people who do tranzactions, moving capital from one hand to another.
It makes sense if we view current US economy as a cog of the entire global economy that mostly focuses on moving capital based on its jewish ideology. Basically as long as China & other asian countries produce goods & accept dollar as transaction currency in foreign exchange markets, US economy won’t fall, despite massive unemployment.
In conclusion USA might have massive unempoyment, but China does not, thus US economy will keep going.

Last edited 1 month ago by sentry
The Wild Geese Howard
The Wild Geese Howard
Reply to  sentry
1 month ago

This is why we should not worry too much about the dollar because it is used for over 86% of international transaction settlements. No other currency is even close at this time.

China’s main issue is ensuring the Three Gorges dam does not collapse under record summer flooding.

DFCtomm
Member
Reply to  The Wild Geese Howard
1 month ago

No you should worry. What is China forced to do when we print massive amounts of money? That inflation goes somewhere. The currency peg ensures those nations that use a peg eat the inflation. We are financing our modern economy with the slave labor of the third world, in a sense.

Ben the Layabout
Ben the Layabout
Reply to  DFCtomm
1 month ago

If/when it all breaks down, let us assume that the US Dollar, or at least the Federal debt, quickly becomes worthless. On the one hand, this will of course be a slap in the face of major trading partners who hold the bulk of our debt. On the other hand, it’ll be payback to the USA in the sense that we had greatly benefitted these countries over a long period with such things as exporting much of our industry and jobs to them (China and others), providing essentially free military umbrella for much of the world (Europe, Japan, etc.). Karma… Read more »

diconez
diconez
Reply to  The Wild Geese Howard
1 month ago

that’s also another reason they want to keep the slaves consuming, the dollar is propped up by it as globalist currency. meanwhile the Chinese can afford to pay their peasants in yuan crumbs and also work them a lot more to death and depression because of their materialist-imperial commie ways, yet at least give them sweeter compensation in public services (for the time being) and ethno-cultural pride (ditto). the US prices its peasants out with the expensive dollar, so they must be made to work and consume for their atomized selves while community and culture breaks down due to lack… Read more »

Last edited 1 month ago by diconez
skeptic16
skeptic16
Member
Reply to  The Wild Geese Howard
1 month ago

We avoid much of the consequences of money creation because the dollars are quickly exported. But what happens if overseas transactions slow significantly and the dollars are stuck in the US like a backed up toilet?

Sandmich
Reply to  sentry
1 month ago

The “grift” as they say. Many companies are outsourcing their AP to credit card companies, the credit card company bags 2% of the charges and return 1% to the company. In a ZIRP environment that’s highway robbery.

Epaminondas
Member
1 month ago

I’m reminded of those words to the song in Disney’s “Dumbo”:

“Well, I have seen most everything
When I’ve seen an elephant fly!”

https://www.youtube.com/watch?v=_v2exWrsGOc

Apex Predator
Apex Predator
1 month ago

And in other awesome news, after that little protracted downtime the other nights. Voting is now working again!
Some of the peanut gallery will whine about this, but for those of us who need a tool to parse 400+ comments it is the best one we have. Vote away! 🙂

Nikolai Vladivostok
Reply to  Apex Predator
1 month ago

Upvote.

Karl McHungus
Karl McHungus
1 month ago

There is a huge struggle going on world wide, between at least two factions. assets are being sacrificed for no real purpose in a panic. that is the other bizarre phenomena to the one zman is discussing. e.g. the sports leagues are being explicitly politicized even though that is catastrophic to their survival. it is this opaque struggle that is causing the distortion effects you talk about; it is putting tons of energy into the current system, and burning it off at the same time — a transient equilibrium.

Mis(ter)Anthrope
Reply to  Karl McHungus
1 month ago

I would love to see the sports leagues fail. But, since so many of the teams are owned by rich jews, I don’t see it happening. I’m pretty sure they will be bailed out by the government.

Of course I’m a pessimist by nature.

Compsci
Compsci
Reply to  Mis(ter)Anthrope
1 month ago

Not sure the ownership may much care. For years it seems that purchasing a “team” has been less a well thought out business decision than an egotistic acquirement of folk who have made their bones elsewhere.

diconez
diconez
Reply to  Compsci
1 month ago

spectator games and sports was always a plaything of the rich, and drug of the poor.

the old victorian ideal is gone, like the victorians.

Last edited 1 month ago by diconez
DFCtomm
Member
Reply to  Karl McHungus
1 month ago

yes for the first time ever the establishment is openly messing with the bread and circuses. That is what disturbs me most about this. That signals a change in the attitude of the establishment and how they intend to deal with the public.

Last edited 1 month ago by DFCtomm
Yves Vannes
Yves Vannes
Member
1 month ago

Quantum economics also stresses the importance of financial transactions and in particular the role of money as an active force in the economy, for example in the way that it entangles debtors and creditors through loans…and service providers that are making the most of money’s virtual side…  from The Evolution of Money by Orrell & Chulupaty. So virtual money funding virtual promises yields a virtual pot of gold at the end of the rainbow…if and only if we never get to the end of the rainbow? It only exists if we never get there? If we get there it won’t… Read more »

JR Wirth
JR Wirth
Reply to  Yves Vannes
1 month ago

The central banks are the prime buyers now. They’re even buying junk bond index funds. Unload anything you want onto them. The Swiss National Bank owns boatloads of Tesla stock. And that’s the Swiss. I pity the fool who has bonds or an annuity as a pension.

Exile
Exile
Reply to  Yves Vannes
1 month ago

Soros’ version of quantum economics was reflexivity, same bullshit, different wrapper.

It works until it doesn’t and while it does I want Our Guys squeezing that lemon until the Jews run down Uncle Shmuely’s leg.

The limit to psychology-and-finance-based economics is fear. The Zucky Trillions Casino will crater only if and when something spooks the suckers – particularly at the Han Hub of the world market. A dam in China, China vs. Taiwan. Or even resurgent WuFlu.

Until then, hopium floats. But so does shit.

White Alyssum
White Alyssum
Reply to  Exile
1 month ago
DFCtomm
Member
Reply to  Yves Vannes
1 month ago

Would bond buyers be willing to continue purchasing bonds to maintain a system that has begun to rattle apart and may never give them a return? They must or the system will fail. Their very financial survival depends on them continuing to believe. How is faith destroyed in the system? You have to devalue the checks that the average person gets whether it be from work or the government. That’s why people are content to sit home and……..wait to see what happens. They are getting paid and don’t have to work, so it’s not a bad deal for them, but… Read more »

diconez
diconez
Reply to  Yves Vannes
1 month ago

the horse owner is also the owner of the venue, and has total power to bar competition on either end, or simply he is part of a racket. so even though his gambling operation is worthless, he now just raises ticket venue on those semi-rich who can’t own horses (stock) or venues (bonds) ever, while giving out free caviar at the exit. most people will only afford watching on tv with potato chips, as they won’t be allowed to have wages to gamble away.

Last edited 1 month ago by diconez
tarstarkas
tarstarkas
1 month ago

I listened to that podcast. Over the course of 2 hours, I think you had less than 10 minutes total air time. I really don’t know why some shows do this. You have a guest so people can hear from that guest, not to listen to the hosts.

usNthem
usNthem
Reply to  tarstarkas
1 month ago

Those guys seemed intelligent enough, but I also didn’t really want hear them drone on.

skeptic16
skeptic16
Member
Reply to  tarstarkas
1 month ago

This is a major reason why I won’t listen to most podcasts. Plus the ummms and uhhhs.

tarstarkas
tarstarkas
1 month ago

BMW is trying to copy Tesla in the worst possible sense. While Tesla wants to charge you a monthly fee for certain additional software related features, BMW actually wants to start charging a monthly subscription to use the features built into the car! One might assume a seat comes as part of the purchase price of a car, but BMW recons it can charge a monthly subscription for the heated seats functionality.
https://www.forbes.com/sites/alistaircharlton/2020/07/02/bmw-wants-to-charge-you-a-subscription-for-your-heated-seats/#4628b3403c64

Compsci
Compsci
Reply to  tarstarkas
1 month ago

You are touching on a point I’ve been making for years wrt that computer on wheels called a car. Who owns the software required to make the car operational? Even more important, why can car manufacturers refuse to modify the software to allow third party equipment modifications/additions? All this hardware-software interface appears to me to be a restraint of trade case waiting to be filed.

The Wild Geese Howard
The Wild Geese Howard
Reply to  Compsci
1 month ago

This has been going on for years.

Go read about Midwestern farmers battling John Deere for the, “right of repair,” on their expensive farm equipment.

Ben the Layabout
Ben the Layabout
Reply to  Compsci
1 month ago

I can think of many reasons. The biggest one for the manufacturers is liability issues. Software failures can be fatal. Examples can be found of, at least, passenger plane crashes killing large numbers, that were blamed on a software failure. Almost as big is the re-liablity issue. Sure, the user can in theory tweak the code because it’s “his property,” but adding 20 LB boost on the turbo full time is not good for the engine, but it is damned impressive the teenaged boy man until the engine melts 😀 Probably this can vary, but usually the actual owner can… Read more »

Last edited 1 month ago by Ben the Layabout
tarstarkas
tarstarkas
Reply to  Ben the Layabout
1 month ago

But this has always been true even before the days of chipping and then reprogramming. Not only that, but there are usually disclaimers in the warranty that using the car for purposes not intended such as off road, drag racing or even using the car as a source of energy will void the warranty. At one point in the 60s Chrysler was selling hemi packages that came with a simple 30 day warranty that covered little more than if the engine was bad right off the bat.

diconez
diconez
Reply to  tarstarkas
1 month ago

ah, the subscription model ball and chain.

at least in the old days there were less institutions to pay tithes to.

JR Wirth
JR Wirth
1 month ago

I believe the last paragraph touches on the end-game for this. I think we’re in the end-game now, which will take six or seven years to play out. I have some points: 1) Tesla is a fraudulent company on par with WorldCom and Enron, and exceeding them both by far in brazenness. The CEO literally tweeted a few weeks ago that the SEC stands for suck Elon’s C..k. 2) The willful blindness by the big accounting firms and ratings agencies is worse than in 2008, after they promised to clean up their acts. Instead of crediting warrantee reserves like every… Read more »

The Wild Geese Howard
The Wild Geese Howard
Reply to  JR Wirth
1 month ago

Then you have people like me who would never buy a Tesla yet make good money trading options on their stock.

JR Wirth
JR Wirth
Reply to  The Wild Geese Howard
1 month ago

It’s definitely a trading vehicle, that’s for sure. But it’s an incredibly dangerous one. Boatloads of calls being bought just before announcements, etc. When you see the fifth and sixth ace come out of the deck, you have to pause and reevaluate.

The Wild Geese Howard
The Wild Geese Howard
Reply to  JR Wirth
1 month ago

I am certainly kicking myself for not buying puts at the open yesterday. I could have easily grifted a year’s pay out of TSLA.

Ben the Layabout
Ben the Layabout
Reply to  JR Wirth
1 month ago

I did part of TDAmeritrade’s online options course, so I know the basics. I’ve toyed with the play money account they give you. What surprised me is how expensive options are. Now, I know they have certain “legitimate” uses like to hedge. I was interested in them for gambling speculation. The most damning datum didn’t come from the house brokerage (Imagine that!): that about 90% of options expire worthless. Why? The only possible answer is because the people who write options are very smart. They know that most of them won’t be exercised. Of course it’s all subjective, and the… Read more »

Last edited 1 month ago by Ben the Layabout
The Wild Geese Howard
The Wild Geese Howard
Reply to  Ben the Layabout
1 month ago

I generally sell options because time (theta) decay works in the option seller’s favor.

Buying options is a totally different animal. On Tesla, I would only buy options to speculate in a day trade if the indicators I use were telling me that it is a good idea to buy ATM puts on Tesla that day.

Otherwise, buying and holding options on Tesla is largely a fool’s errand because all your premium (the money you paid) gets eaten up by the incredibly high theta (time) decay on Tesla options.

Exile
Exile
Reply to  JR Wirth
1 month ago

Tesla has reached “too big to fail” status even though 2/3 of what Elon says and does is vaporware. More “quantum weirdness.”

The Wild Geese Howard
The Wild Geese Howard
Reply to  Exile
1 month ago

Amen.

There are too many market makers like Vanguard, Fidelity, and Schwab holding Tesla for it to collapse short to medium term. I’m also convinced the Fed is in on Tesla via proxy through Blackrock.

tarstarkas
tarstarkas
Reply to  JR Wirth
1 month ago

All this cheap credit allows people to buy a Tesla as well. The $35k is mostly fake from what I can gather. What I really don’t understand is why so many people are enamored by electric vehicles. Turning the fleet electric faces major obstacles. One many don’t seem to think of is how this would work in America’s old cities. There are huge swaths of my city where nobody has a garage. There is no assigned parking either, nor fixed defined parking spots. Installing outdoor charging stations with either a credit card reader or a plug related identification system is… Read more »

The Wild Geese Howard
The Wild Geese Howard
Reply to  tarstarkas
1 month ago

Prog loons simply don’t know and don’t care about the realities of the infrastructure required to convert the entire vehicle fleet to electricity.

Ben the Layabout
Ben the Layabout
Reply to  The Wild Geese Howard
1 month ago

Electric is sexy and on the surface is “clean.” Liberals love that. And, admittedly, it reduces local pollution. But until we have fusion available, the (literally) dirty secret is that the electric car, on average, is effectively “burning” 63% fossil fuels (natural gas, slightly less coal and hardly any oil), 20% nuclear with all its baggage, and
[a round of applause for the “greens” please…]
17% renewables.

Lineman
Lineman
Reply to  Ben the Layabout
1 month ago

Quit reading the news for your info…

JR Wirth
JR Wirth
Reply to  tarstarkas
1 month ago

The physics aren’t even there for 18 wheelers to work. Your Amazon package would cost $500 in shipping. A large, conceited swath of the population is conditioned to believe (much like the mask people with fake ass COVID) that their consumer choice of buying an electric car will literally change the temperature of the earth. And Atheists mock Noah’s Ark? Intelligence is not critical thinking. Anyone who scores high on a critical thinking test would not own an electric vehicle. The electric grid is also incapable of handling that even if they caught on to any degree. I was at… Read more »

Lineman
Lineman
Reply to  JR Wirth
1 month ago

Yea for sure on the grid not being able to handle it they are stretched thin and overloaded the way it is right now…

SidVic
SidVic
Member
Reply to  Lineman
1 month ago

a electric backhoe is an impossibility. For serious mining, the ground and pound, you need the density of petrol.

tarstarkas
tarstarkas
Reply to  SidVic
1 month ago

From what I know, electric large scale mining has been a thing for a long time. It’s just not battery operated. I’ve seen pictures where they have large wheeled machinery connected like trolley line connectors to overhead wires.

I guess it is highly dictated by the needs of the site. Presumably this is a lot cheaper than diesel where it is possible.

Paintersforms
Paintersforms
Reply to  tarstarkas
1 month ago

Coal is king as long as you can transmit the power.

Member
Reply to  tarstarkas
1 month ago

This is one case where our American use of imperial units can hurt us. American cars are rated in horsepower while in other countries they use the metric unit, kilowatts. Think about how your basic economy sedan might have 130 hp. That’s 100 kw. 100,000 watts! 100 hair dryers going at once. Just plug in 100 hair dryers at home and turn them all on and see what happens. If your main breaker is 100 amps your whole house is able to provide about 1/10 of the power your little Honda (or your 100 hair dryers) uses. Behold the magic… Read more »

diconez
diconez
Reply to  pozymandias
1 month ago

and even then, the sissy Europeans only have less cars because they have less space and less gas. also, they were decent enough to keep railroads and unions… for a while at least.

Ben the Layabout
Ben the Layabout
Reply to  diconez
1 month ago

But they have an excellent public transit system. And they’d damned well better, given the taxes they pay!!! Transit makes more sense in the much denser population typical of much of Europe. And this system worked very well, as a drunken solider in Germany for two years can attest 😀

tarstarkas
tarstarkas
Reply to  Ben the Layabout
1 month ago

America used to have great public transportation. But now they are just a gibs program because they are dangerous because of vibrants. Most of these European cities didn’t have vibrants taking over the PT system and destroying it just by their presence. Just like the “inner city” has been destroyed. In my city these are all of the neighborhoods surrounding the central business districts and also the colleges. Temple University is right in the middle of one these ghettos. The kids can’t walk around at night because of the realities of living in the ghetto and that’s even with a… Read more »

Ben the Layabout
Ben the Layabout
Reply to  pozymandias
1 month ago

The USA resisted the rest of the world when they wanted to try and push that Metric stuff on us. You gotta watch out for those socialists. You give them a centimeter and they take a kilometer 😀

Ben the Layabout
Ben the Layabout
Reply to  JR Wirth
1 month ago

Dude! You could have had your own newsletter business pre-Internet. Nowadays, maybe too much competition.

gwood
gwood
1 month ago

So the Gods of the Copybook Headings have left? Feels like we’re living in a Dunsany story.

Allen
Allen
1 month ago

It’s about faith. If people believe in it they’ll accept anything as a means of transaction. Of course a heretic that comes along and points out the holes in the dogma will not be looked upon kindly.

How long can faith last? A long time.

The Wild Geese Howard
The Wild Geese Howard
Reply to  Allen
1 month ago

How long can faith last? A long time.

And this is one of the reasons the dollar is still the cleanest dirty shirt among currencies.

Alzaebo
Alzaebo
Reply to  The Wild Geese Howard
1 month ago

Goldman/Spengler: “The leper with the most fingers.” Heh.

Ben the Layabout
Ben the Layabout
Reply to  The Wild Geese Howard
1 month ago

Spray it with deordorant and it’s good for another day’s wear 🙂

diconez
diconez
Reply to  Allen
1 month ago

the Chinese will certainly think twice about accepting dollars when the joggers invading the Macy’s at Central Park become recurrent, and when a green-soyfied ultravaccinated West under mask and lockdown every few months (this twice as strong pneumonia for 0.3% of people isn’t going away) buys less of the oil. after all, the sheikhs also trade in dollars. if they leave and as Eurasia gets taken over by the One Commie Belt or whatever, then it’s back to selling dollars to the Western Hemisphere… … except the castizos are less dominant, and the now majority mestizos not as docile or… Read more »

Last edited 1 month ago by diconez
Ben the Layabout
Ben the Layabout
Reply to  Allen
1 month ago

One of my favorite songs about faith (or its downside) is Bruce Springsteen’s “Reason to Believe”:
https://www.youtube.com/watch?v=H49obsV6oZ0
“Nebraska” is one of his darker albums, recalling a Depression or early 1980s recession atmosphere. The album was recorded on “home studio” Tascam cassette recorder, lending an authentic “down home” vibe to the songs. This must have been intentional, since by the mid-80s Springsteen had made a little money and probably could have hired better equipment 😀
“Still at the end of every hard-earned day, people find some reason to believe.”

Last edited 1 month ago by Ben the Layabout
Zum Deutschen Eck
Zum Deutschen Eck
1 month ago

There’s only one way out from underneath this time. WAR. We need to blame some other party for our stupidity and arrogance, and then we need to kill them. Make the rubble bounce. Lose our own critics in fireballs and pointless rushes at the enemy. So the (((usual suspects))) can deflect attention where it belongs.

Karl McHungus
Karl McHungus
Reply to  Zum Deutschen Eck
1 month ago

let me introduce you to a big fat dumb patsy — the PRC.

Zum Deutschen Eck
Zum Deutschen Eck
Reply to  Karl McHungus
1 month ago

Those would be the folks behind General Tso’s Chicken, right? I have heard of them. Aircraft carriers make great reefs.

diconez
diconez
Reply to  Zum Deutschen Eck
1 month ago

yeah, just let them keep aborting their girls, and making the living ones work, cramming the excess men into tiny apartments. eventually they will suffer under the same sins.

Member
Reply to  Zum Deutschen Eck
1 month ago

This is what I think the political class will try to use as last resort to keep the various balls in the air for a while longer. I don’t think it will fly though and will trigger the dissolution of the US if nothing has before that. A lot of people in Red States will clearly see this as a neocon Hail Mary to save Ziomerica and that’s when the secessions will begin. Since most of the military personnel and bases are in those states the US may not even be able to mobilize forces for the Great Patriotic War… Read more »

diconez
diconez
Reply to  pozymandias
1 month ago

yep. i’ve been thinking a big hope for American whites would be the potential Freekorp reserve in veterans from Iraq and Afghanistan. though then again, some of them are patriotically liberal or ziocon, no doubt in diverse units.

skeptic16
skeptic16
Member
Reply to  pozymandias
1 month ago

Nah, we’ll break out the flags, yellow ribbons, “Support the Troops” bumperstickers and someone will do a cover of Lee Greenwood’s “God Bless the USA”.

exfarmkid
exfarmkid
1 month ago

Z – Note that human nature is still the same as when King David killed Uriah the Hittite to cover up the adulterous affair that King David had with Bathsheeba. And remember that “there is a lot of ruin in a nation”. This could go on for years. Or it might not.
How the system corrects is unknowable. The only thing I am sure of is that it will correct.

FrenchRoyalist
FrenchRoyalist
1 month ago

Dear Zman.

Yesterday, I was horrified, because I couldn’t access to your site.

I pray/beg you, to create an alternate blog onion.

I think you dislike him, but you and Anglin are the only voices of reason in this ocean of madness (even if I don’t share Anglin’s views about Islamic way of considering women, nor his views about little nations neighboring Russia)

(I am also ashamed to have been a reader of Counter Current. AOC is more forgivable to say bullshits than “doctor” G. Johnson.)

MemeWarVet
MemeWarVet
Reply to  FrenchRoyalist
1 month ago

I second the need for an Onion site.

I’m a little down on Anglin at the moment, as he’s gone full Schiff on the economic stuff. He threw a crybaby meltdown when one of the posters on his message board mildly and respectfully challenged him on it a couple of days ago.

Counter Currents serves its purpose. I click it daily but don’t necessarily read it daily.

FrenchRoyalist
FrenchRoyalist
Reply to  MemeWarVet
1 month ago

CC still have interesting papers, I will not deny it.

But, for me, the great divide is covidhysterical vs flubros

Consequently, GJ should be more despised than any leftist.

(I don’t remember to have read than any member of CC crew wrote something against Johnson’s hysteria)

diconez
diconez
Reply to  FrenchRoyalist
1 month ago

their paganism makes them more fearful than they should be, and trusting in labcoat liars as well.

they do make some points other times though.

Last edited 1 month ago by diconez
diconez
diconez
Reply to  MemeWarVet
1 month ago

CC makes some good points on occasion, on others it gets too pagan enamored with itself.

Frip
Member
Reply to  diconez
1 month ago

Say pagan a third time.

MemeWarVet
MemeWarVet
Reply to  diconez
1 month ago

Agreed, Homo Johnson loves that LARPy nonsense

Frip
Member
Reply to  FrenchRoyalist
1 month ago

French Royalist, are you female?

Exile
Exile
1 month ago

One of the distinguishing features of a scientific theory is its ability to make reliable predictions – Economics is the most dismal science in this respect. Quantum economics may be like quantum physics in the sense that no one really understands it, but Planck’s black box theory yields very consistent and reliable results. Quantum economics is more black bag than black box, as it should be considering its experimental results. Hyper-concentration of wealth with the other 99.9% losing ground. The complete de-coupling of fundamentals from stock performance and valuation. The overt integration of the managerial private sector with the managerial… Read more »

Last edited 1 month ago by Exile
The Wild Geese Howard
The Wild Geese Howard
Reply to  Exile
1 month ago

Cash out while you still can – at least enough for a soft landing back in the Desert of the Real.

Better yet, learn how the grift operates, extract money from it, then use that money to purchase real, tangible assets like food, gold, ammo, or even land.

DFCtomm
Member
Reply to  The Wild Geese Howard
1 month ago

Winners win and losers lose. It doesn’t matter much what the game is.

diconez
diconez
Reply to  Exile
1 month ago

in the end economics is the treatment of money by people, and people are just people. fallen sinners, balding monkeys, anything but omnirational beings. they can reason spending on themselves anything and cutting the power off someone they don’t like based on whatever. because reason is a lie, for some more than others specially, but divorced from prime mover’s absolute transcendent truth it can be twisted into anything. which is why economic systems keep changing and theories collapsing, as the material world that money deals with, and the people that deal with money, change. back in Austrian School times, it… Read more »

Last edited 1 month ago by diconez
Ben the Layabout
Ben the Layabout
Reply to  diconez
1 month ago

We repeat, people come to believe what they need to believe when they need to believe it”
— Bonner & Wiggins Empire of Debt: The Rise of an Epic Financial Crisis (2011)

Range Front Fault
Range Front Fault
1 month ago

Stunning article! Big brain outside of the box thinking, Z. I bound and gagged Basic Husband as he muttered “Laura… Laura… Laura,” turned up his hearing aids and read him your missive. The seeds did not land in husband’s brain; in my brain they did. Hmm…quantum economics. “The elevation of the transaction over capital formation is one of the unremarked aspects of the new economy. Wealth is now generated by either creating new ways to move information around the system or maintaining a gate through which information must flow to some other part of the system.” Now I see and… Read more »

Last edited 1 month ago by Range Front Fault
Eloi
Eloi
1 month ago

First, I agree – no one at our level knows what is going on. However, it is quite clear, exactly as pointed out, that the effect of the creation of the transaction, capital economy funnels (nearly) all the newly created wealth towards our overlords. I have an interest in economics, and the way I think of the debt is that all the newly created money is exactly that – money. The big boys at top orient their businesses to capturing as much of that newly created money in order to increase their ownership of the total available money pool. And,… Read more »

diconez
diconez
Reply to  Eloi
1 month ago

i’d argue it’s healthier to have many global currencies based on region.

but yes agree on everything else. it’s a soft takeover.

Official Bologna Tester
Official Bologna Tester
1 month ago

Z Man said: ” Similarly, the stock markets are doing the opposite of what economics has said should happen on the cusp of a long depression. Apple became the world’s first trillion-dollar public company on Thursday, as a rise in its share price pushed it past the previously unthinkable valuation…” I’m not an economist, but I know fraud when I see it. We’re finally seeing the truth about the stock market. It’s only partially connected to the actual economy. The rest is the largest ongoing criminal conspiracy in history. But the people aren’t screaming for their blood. How is it… Read more »

Last edited 1 month ago by Official Bologna Tester
DFCtomm
Member
Reply to  Official Bologna Tester
1 month ago

It kind of has to be this way. With 401s the government hooked it’s wagon to the market, so either the market was going to control their fate or they were going to control the fate of the market.

Last edited 1 month ago by DFCtomm
diconez
diconez
Reply to  DFCtomm
1 month ago

wouldn’t it be easier just to have one national pension fund, and the employer and employee contribute what they can and move on, instead of such a convoluted middleman riddled mess as the 401s. one good thing about caesarisms is that they can destroy such waste. except when said caesarism is based on that waste…

DFCtomm
Member
Reply to  diconez
1 month ago

You have to remember that 401Ks were the answer to a real problem. A shrinking population is incapable of supporting a welfare state. The libertarians who came up with the scheme didn’t envision this, of course. 401Ks were suppose to be exposed to market risks. You took your chances but nobody was on the hook for your expensive pension, but nobody could take it away from you if you got lucky. However, in retrospect it should have been obvious what would happen.

Last edited 1 month ago by DFCtomm
Ben the Layabout
Ben the Layabout
Reply to  DFCtomm
1 month ago

Here’s an interesting podcast. Mike Green makes an entertaining, maybe even solid, case that, among other things, Index funds risk collapsing the market. What once began as a very sensible idea (an index fund to passively invest and have super low expenses), has, in a few decades, come to be a lot (50%? More?) of the stock market. Green claims that if say, Vanguard ever has to sell more than a tiny bit of its gargantuan holdings, it could seize the entire market because there are not enough counter-parties that could act as buyers, in his argument the price of… Read more »

diconez
diconez
Reply to  Official Bologna Tester
1 month ago

part of it is that most people have been soma’d to sleep by (((them))). gentiles are just cattle in their own little atomized worlds. when revolts happened historically, it was either massive hunger, or a massive bloody crime against the people. the blacks certainly lie a lot about their dead criminals at the hands of police, among other things, but they are certainly effective at garnering sympathy using their spilled blood. the Russian Revolution could only happen after the massacre of the martyrs, and not before. in fact, Christianity could take hold and somewhat harmoniously unite white people, and eventually… Read more »

Official Bologna Tester
Official Bologna Tester
Reply to  diconez
1 month ago

diconez said: “A breaking point situation will need to come and slap the sense out of people.” Exactly, how many more slaps do you want? Half the freaking planet is under house arrest. The main street economy is headed for armageddon. Every stinking day, somewhere in America there’s mass demonstration. Meanwhile, joeblow can’t go to church or get a haircut. And last but not least, that little CDC stink bug fauci tells us the other day, that the communist virus will most likely never go away. Oh yah. Now we all need to ware plastic eye shields as well as… Read more »

Last edited 1 month ago by Official Bologna Tester
Ben the Layabout
Ben the Layabout
Reply to  Official Bologna Tester
1 month ago

I am wondering about the face shield thing too. Again, allowing for new disease, developing situation and all that, but I have my suspicions. Most reports say that the virus is mostly transmitted by small exhaled droplets, possibly by smaller particles, but nearly all transmission is by air. So a face shield or eye protection is not going to offer any protection except against a “direct hit” such as being sneezed at. Similar for the plexiglas panels and dividers now seen at restaurants and such. These will help but to me at least, only with “projectile” sitautions 🙂 So yeah,… Read more »

Official Bologna Tester
Official Bologna Tester
Reply to  Ben the Layabout
1 month ago

Ben the Layabout said: “Looked at another way, the paranoid could say this is just another step in the conditioning, to see how much the sheep will accept.”

If your not paranoid yet, then your not paying close attention.

comment image

Last edited 1 month ago by Official Bologna Tester
Dinothedoxie
Dinothedoxie
1 month ago

All of the paradoxes you mention are explained by a couple of things.

First. National deficit spending is now backdoor money creation. So every scenario based on the idea that the money must or even should be repaid is obsolete.

Second. The threat of financing government via seigniorage has always been inflation. Which is not a factor yet because of the inherent deflationary pressure of industrialization and globalization.

So where does the new money go if it’s not bidding up labor and consumables? Chasing assets of go is why we see preposterous valuations for stocks and real estate.

Last edited 1 month ago by Dinothedoxie
Ben the Layabout
Ben the Layabout
Reply to  Dinothedoxie
1 month ago

Yes, I have seen the same argument for gold and (I guess) other valuables. I have no great investing advice, nor a lot of assets. But within reason, this seems a great time to stock up to the max on real world goods that you will actually use. To steal somebody else’s idea, right now I am “long” on 4 cases of Underwood Deviled Ham 😀

Thorsted
Thorsted
1 month ago

In the conversation, you mention a optimistic book saying that war was an impossibility due trade and communication prior to 1.WW. It likely is “The Great illusion” by Norman Angell.
https://en.wikipedia.org/wiki/The_Great_Illusion

Mikep
Mikep
1 month ago

I am old enough to remember when TV economists had economic models, literally. They consisted of coloured liquids flowing through various pipes and valves and into compartments labelled employment, inflation, savings etc. All complete bollocks of course. In fact the older I get the more I am persuaded that not only is economics no science, but simply a collection of ad hoc justifications cooked up by apologists for whatever elites are currently benefiting from the status quo. It’s interesting that you mention Tesla and it’s apparent ability to defy the “laws” of commerce. Tesla and electric vehicles more generally seem… Read more »

Official Bologna Tester
Official Bologna Tester
Reply to  Mikep
1 month ago

Mikep said: “All rather disturbing in my view.”

Hahaha! Rather indeed. 😀

sentry
sentry
Reply to  Mikep
1 month ago

“economics is no science, ad hoc justifications cooked up by apologists for whatever elites are benefiting”
It’s jewish scam, it’s made to be convoluted on purpose so that people won’t get to see the strings the jews are pulling.

Last edited 1 month ago by sentry
diconez
diconez
Reply to  sentry
1 month ago

and the secular bourgeois. the whole democratic and capitalistic scam of the enlightenment, and its willing sparring the Marxists. all friends of the Jews. all wanted to take out the Church, the royals, the nobles, the natural rights of the villages and cities and commoners. of course, thanks for overcoming scarcity, it took many dead in the factories and industrial wars fought with industrial guns. true, by the 90s it seemed peace and prosperity finally cometh to the materialists globalists, but this just gave wings to the increasingly degenerate, miscegenated, decultured, atomized, all-consuming rabble that took advantage of the softened… Read more »

Ben the Layabout
Ben the Layabout
Reply to  Mikep
1 month ago

Tesla (the man) was a fascinating figure. You can read his bio, probably on Wiki. Early radio and electrical pioneer. Created a small earthquake. Could transmit electricity wirelessly over large distances. Basically invented AC electricity. A man named Westinghouse made Tesla very wealthy as a result. Nonetheless, Telsa died in obscure poverty. [Insert optional “He was working on a interdimensional space-time portal at the time of his death. US government confiscated all his notes.” which may or may not be true, but adds spice to story.] At least he has a physical unit named in his honor. I post all… Read more »

Bilejones
Member
1 month ago

Stock prices are denominated in dollars.
What you are seeing is the depreciation of the doller, not the appreciation of stocks.
Go look at the indices of Iran and Venezuela to see what the upcoming dollar collapse looks like.

diconez
diconez
Reply to  Bilejones
1 month ago

indeed. it’s just that the US has more leeway. for a while though. who knows. i went through a currency collapse once, it wasn’t pretty, and see similarities too. ironically the country came off better with the dollar… until who knows when too, it has tons of debt it can’t deflate so something will have to pop the bubble eventually. some peoples are better at paying back debts than others, at the heart of it.

sentry
sentry
1 month ago

I just realized z-man article perfectly reflects Soros philosophy
comment image

Last edited 1 month ago by sentry
BadThinker
BadThinker
Reply to  sentry
1 month ago

Ooh, there’s some fun to be had with these quotes over pretty pictures.

https://imgur.com/a/X7EiW6R

1UnknownSubject
1UnknownSubject
1 month ago

It’s different this time – famous last words as the last ‘greater fool’ bought in. It may take a while but there are ripple effects that are hard to predict. Maybe some of it is papered over right now with stimulus checks – but you cannot have 50m unemployed without an impact. Not paying rent, taxes, suppliers, businesses shuttering forever, etc. It is lurking below the surface and will emerge eventually.

DFCtomm
Member
1 month ago

The answer is there and it’s not a new one. Why does anybody exchange goods and services for pieces of paper, or even shiny rocks? The answer is the same as it’s been since there has been money. You accept those bits of shiny rock because of faith. This, however, is the Billy Graham economy, or maybe the Jim Jones economy would be closer to the truth. They are drunk with this new power and intend to push it to the point of failure….maybe just to find out where exactly that point is.

Official Bologna Tester
Official Bologna Tester
Reply to  DFCtomm
1 month ago

Civilization always was and always will be a fool’s errand. There’s just too many things working against it for anyone to keep together in one piece for very long. And if the old second coming thing doesn’t pan out, then we’re simply stuck with each other. And honestly, I can’t think of anything more depressing than that.

Ben the Layabout
Ben the Layabout
Reply to  Official Bologna Tester
1 month ago

Some one said civilization is a conspiracy against Nature. True enough, in the sense that mankind must labor by the sweat of his brow and all that shit 🙂 “Nature gives nothing away.”

Ben the Layabout
Ben the Layabout
Reply to  DFCtomm
1 month ago

Yes, it all comes down to the willingness of the other to exchange with you. And this is equally as true for supposedly valuable things like gold. Yes, it’s true that it takes 1,10, whatever tons of ore to make just one ounce of gold, but it’s still just a piece of metal. If no one would accept it in trade for a good or service, it would not be of much use beyond decoration, dental filling, etc. I admit it it kind of useless, but the Kruggerands do make nice coasters 😀

3g4me
3g4me
1 month ago

Well, after reading all of this I am more confused than ever. There’s a reason I took only the minimum required econ classes in grad school. My husband’s pissed he sold AMD stock at a previous benchmark of $60 and then it went up to $77. It’s all a crap shoot. If we had the $ to hunker down, we’d be hunkering down, not gambling.

abprosper
abprosper
1 month ago

The US is in a Depression right now , bread lines well foo bank lines and all. Our press simply doesn’t cover anything. Its been easy to paper over though with wealth redistribution and EBT and all that stuff. Frankly the reason no one is protesting on a huge scale , beyond virus fears is why bother? American jobs suck and between unemployment, regulations and the bonus money, many unemployed people were doing just fine and now have to time to live. Worse do to shit wages large swathes of the population made near as much on the bonus ($1200… Read more »

Mark Stoval
Mark Stoval
1 month ago

A plea for help. Not completely off topic. I intend to try to teach kids informal logic and “how to think” next year as the Dioceses wants to give us more time in English and Math this year to make up for the situation in last trimester of last year. (distance learning) I want to use a book called “The Fallacy Detective” which will help them learn the errors in logic. (straw man, red herring, and so on) But I also want to use “Economics in One Lesson” by Henry Hazlitt. The book is loosely Austrian and so covers Praxeology… Read more »

Yves Vannes
Yves Vannes
Member
Reply to  Mark Stoval
1 month ago

For the age you’re teaching “The Fallacy Detective” is an excellent choice. A field I am very familiar with.

Hazlitt may be a bit dry for that age.
Asked someone in the field and he suggested this:

Economix: How our economy works
and this:
If you need something a bit simpler there’s a 2 vol. Cartoon Guide to Economics

Mark Stoval
Mark Stoval
Reply to  Yves Vannes
1 month ago

Thanks for the feedback. I will get both books and give them a read.

I really do appreciate the help.

JR Wirth
JR Wirth
Reply to  Mark Stoval
1 month ago
Mark Stoval
Mark Stoval
Reply to  JR Wirth
1 month ago

I’ll give “The Richest Man in Babylon” a read.

“The Road to Serfdom” would be great to sneak in if I was the SS teacher, but might be hard to justify for math class. However, it remains one of my all time favorites.

Thanks for your ideas and help.

BadThinker
BadThinker
Reply to  JR Wirth
1 month ago

I prefer “The Mercy of Allah” by H. Belloc. Captures how the capitalists actually operate.

Frip
Member
Reply to  Mark Stoval
1 month ago

Hazlitt’s Econ in 1 Lesson for junior high kids? This must be some kind of special high IQ school. Otherwise, to quote John McEnroe. “You CANNOT be serious.”

Mark Stoval
Mark Stoval
Reply to  Frip
1 month ago

I do think we can use some of it. The broken window fallacy can be understood by anyone with an open mind. Some of it is too much for the age group — I have to judge that part. Just the first page where he tells us that the following spawns new fallacies every day: the persistent tendency of men to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long run effects of that policy will be not only on that special group but… Read more »

Paintersforms
Paintersforms
Reply to  Mark Stoval
1 month ago

Gorgias.

You’d have to unpack the language but the ideas are simple enough.

Last edited 1 month ago by Paintersforms
Mark Stoval
Mark Stoval
Reply to  Paintersforms
1 month ago

Yes, I agree. I am hoping that many will have some protection from propaganda and sloppy thinking.

Thanks.