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2019-04-15 07:00 by Karl Denninger
in Editorial , 264 references Ignore this thread
It's Time To Withdraw Into The Bush
[Comments enabled]

I've noted something that makes quite clear there will be no resolution politically or otherwise and the blame for it rests directly on the American people.

Simply put look at the response whenever there is a scam or fraud exposed in the economy or government.

  • Doctors and hospitals conspire to hide prices and forbid shopping. This is a felony under 100+ year old law.  It, along with other means of price-fixing, inflates the cost of medical care in the United States by as much as 500% on average, with many cases of inflating price by tens of thousands of percent.  Your reaction to this is to demand subsidized "insurance" that covers "pre-existing conditions"; that is, you insist on being able to commit fraud that is economically and legally identical to being able to buy fire insurance on your house after you intentionally set it on fire.

  • Amazon cross-subsidizes businesses and, for years, cheated on sales tax laws.  They still do with their so-called "marketplace."  In addition they are alleged to screw vendors directly by using the information said third-party vendors are obligated to let them have to discover who supplies said products, trying to take over any that are wildly successful.  This has put tens of thousands of small and mid-sized retailers and distributors out of business in the United States, and it has made possible an insane flow of counterfeit products, mostly from China.  Your reaction to this is to cheer even though your town is severely damaged and if it gets "jobs" out of it they are nearly all low-wage, slave-labor working condition positions that literally use up and discard humans by setting "working standards" that are well beyond what a human can perform at over a period of years or decades.

  • Netflix forced non-customers to pay for the network infrastructure that they required to deliver streaming video.  When the Internet industry started to push back against this as it was grossly raising their costs the firm went to Congress and got passed "Net Neutrality."  Your reaction to this was to demand the passage and maintenance of said "net neutrality" but only for your lovely Netflix so you can financially******your non-Netflix subscribing neighbor on a continual monthly basis; said principle of "neutrality" was not, of course, demanded for viewpoints you find distasteful (such as those people on Facebook and Twitter that have been censored.)  As a result internet access and cable prices have risen and continue to rise on a straight-up basis in the United States, with the average consumer now seeing bills of $85-$100/month -- despite so-called "technology improvement" which should produce lower prices.

  • It is now established that the FBI lied to a judge to both get and renew the warrant to spy on the Trump campaign.  That AG Barr brought this up and used the word "spy" drew outrage.  It is not a close call in this regard; it has been established through public information that the FISA warrant was procured through knowing false statements, with the most-serious being a declaration that the FBI had independent corroboration of the "dossier" when in fact they knew that the alleged "news story" that formed that was not independent at all but fed by the same person.  Further the FBI knew and did not disclose that the material was paid for by the DNC -- Hillary's campaign -- as "opposition research" during her run for President.  Fully half the nation not only doesn't care about this outrageously fraudulent behavior by the alleged chief federal law enforcement agency it cheers on this seriously felonious behavior -- including members of Congress -- and that half the nation in fact demands more of it to enforce their political views!

  • The GrandDaddy of all -- "negative" real interest rates.  We have them in the United States and have for 10 years now.  The US Government and Federal Reserve, at the government's bidding, have done exactly this for over 10 years.  The latest in this line of insanity is Trump's direct demand that The Fed engage in more QE and again drop rates for the explicit purpose of boosting the stock market.  Said "boost" would be nothing more than a direct transfer of wealth from the 99% of America to the top 1% - including the President personally, once he leaves office.  Rather than demand it stop and threaten to enforce that by whatever means are necessary, insisting that The Fed and Government in fact quit stealing from everyone you not only cheer it on and demand more of it you want some of the spoils for yourself through various 'debt forgiveness' programs, whether they be for student loans, below-market rates for mortgages or similar.

There are hundreds of additional examples that I have documented in more than 10,000 articles within this page over the last decade.  In each single instance if any individual person likes the outcome they don't care about the felony and fraud.  If it harms them instead of insisting that it stop the people demand to be able to cheat, steal and commit felonies of their own to "get theirs" in the name of "equality"!

Demanding "insurance" cover pre-existing conditions is felony-level fraud.  Buying fire insurance on the house you just lit on fire is a felony.  It's not a mistake, it's not "compassionate", it is a felony criminal offense.  Instead of demanding that all the fraud and felony in the health care system be stopped and those who are committing said offenses go straight to prison you instead demand to be able to commit a felony of your own so the other guy's felony doesn't ruin you!

Forcing someone to pay for a commercial service they do not want and attach zero value to -- not a government service that benefits all, but a commercial private service such as Netflix is exactly identical to someone sticking you up in the middle of the street and demanding you fork up a $20 so a furniture delivery company can put gas in its truck to deliver furniture to the random dude down the street!  That's a criminal act.  But rather than tell Hastings to go **** goats (which would have doubled, tripled or perhaps even increased the price of Netflix by more) the people of this nation instead demanded that the Obama administration ensconce said theft in law for a purely-commercial, not public good, service -- but only for that specific service.  The actual public good (protecting freedom of speech) was not only ignored the myriad violations of same by the beneficiaries of said "law" are in fact cheered by both ordinary Americans and lawmakers alike.

Lying to a federal judge to get a warrant is a serious criminal offense.  Doing so to interfere in a federal election arguably rises to the level of sedition, one of the most serious federal offenses there is.  Political dirty tricks are nothing new and salacious allegations made by one candidate toward another are part and parcel of politics -- and always have been.  For the Department of Justice to weaponize those dirty tricks on behalf of one candidate and commit felonies in the promotion of same, never mind one party of Congress continuing same beyond the point at which the fact that this occurred becomes public goes well beyond outrageous and into the realm of a raw declaration of invalidity of the government standing in its entirety.

Real negative interest rates (that is, below the rate of inflation) are theft; they cannot occur naturally since nobody will ever intentionally burn $100 bills for fun.  Intentional lending at a loss simply never happens; someone has to shove a gun in your face for that to occur, or they must defraud you.  The Fed and Government have forced this upon the public and every single person in the nation who behaved reasonably during the last 10 years and before, saving money and attempting to build wealth, had trillions stolen from them in total.  We now have a President who, unhappy with the amount of theft he personally and his friends have received by this, is publicly demanding even more be stolen from you.  That this garbage didn't lead to not only an immediate "**** YOU!" out of The Fed and an immediate revolt by the 99% of the population that, if Trump gets his way, will wind up being robbed through same is beyond outrageous -- it is literally nothing less than personal financial suicide on a national level by nearly everyone in the country.

All of this bullcrap and more has resulted in many areas of this nation where anything physical, such as a house, has lost 30% or more of its value in real terms over the last 20 years.  I can document multiple instances of this fact with hard data; the reason it has occurred is that the annual tax levy that gets applied to such physical and immovable things has doubled in those 20 years and since it's an annual levy on a discounted forward basis it permanently and irrevocably destroys the value of the underlying physical asset.  At the same time those who are committing the frauds see their intangible items of "wealth" soar in price -- stocks, to be specific.  Yet unless you're in the top 1% of the population in terms of wealth you cannot outrun the physical destruction of value with money in the markets as these policies make it impossible to reserve enough of your earnings to put into said instruments.  It's a simple function of arithmetic -- the Beelzebezos' of the world find this trivially easy to do as nearly all of their alleged "wealth" is in said intangibles and only a tiny percentage is in real, fixed physical assets while a huge percentage of the common person's assets are by necessity in things like their home, automobile, tools, furniture and clothing.

The means by which these people set up and promote these scams is not an accident nor is the outcome.

They know all of the above and do it anyway and you, the common person, cheer them on instead of demanding that the frauds and felonies lead to prison time backed by whatever is necessary to convince the organs of government that the only option they have if they wish to continue to be recognized as a valid Government is to enforce the damned law.

To be fair this isn't a uniquely American phenomena.

Venezuela followed this exact process including by its own citizens and has now basically collapsed despite having more natural resources in the form of oil than virtually anywhere on the planet.

Argentina has seen several collapses of its economy through the same process; they used to be a nation with one of the highest per-capita standards of living in the world; in 1913 they were 10th, reaching 80% of the US on a per-capita basis.

Today they manage just over 30%, an unbelievable history of destruction that has never been recovered from.

Rome fell though the same process giving rise to the infamous statement about bread and circuses.

The EU is headed down the toilet bowl for the same reason, admitting millions of uneducated, unskilled and uncivilized people who in the name of "diversity" go on to******and plunder without being punished while their "central bank" tries to prop it all up.

The United States is doing the same thing both through admitting a million similarly unskilled, uneducated and uncivilized people while the President and economic advisers along with The Fed continue to break the law -- yet the only political demands the people are raising along with the politicians are ways for the population to commit their own versions of fraud and felony so the existing ones can continue apace.

There is absolutely no reason for me to be hopeful about any change in this regard.  There are zero people in the United States doing anything about any of this.  Our government has declared openly over the last 20 years that it will not only protect those who commit fraud and felony on a grand scale, amounting to more than $3 trillion a year stolen from Americans in health care alone, hundreds of billions a year more through gaming the monetary system and now, to top it off, racking up more than $1.6 trillion in student loan debt that cannot be discharged in bankruptcy

In response instead of demanding all this crap stop and be reversed what the people of instead demand is that the government pass law and regulation facilitating attempts to steal enough to keep your own head above water while standing on the head of your neighbor and forcing him to the bottom.

Down this road -- and not far down it either -- lies fiscal collapse concurrent with a highly uncivil set of sad but trivially foreseeable set of events.

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