Regret and Suffering

BALTIMORE – Victoribus spolia

So far, the most satisfying thing about the Trump win has been the howls and whines coming from the establishment. Each appointment – some good, some bad from our perspective – has brought forth such heavy lamentations.

 

Oh no! Alaric the Visigoth is here! Hide the women and children! And don’t forget the vestal virgins, if you can find any…

 

You’d think Washington had been invaded by Goths, now raping the vestal virgins (if there are any within the Beltway) on the White House lawns while the Capitol burns to the ground.

Trump is happening, of course. And the very people who made it happen are now in various stages of regret…  suffering… or hysteria. What a delight it is to see them in such pain!

All along I-95 – from the Holland Tunnel to Route 295 into the heart of D.C., at a distance of a football field between one and another – you see their fabled leaders, lieutenants, and water carriers crucified, with a small crowd gathered around each, weeping.

There is Hillary, of course. And Senator Elizabeth Warren (secretly happy to see HRC brought to grief). Then there’s Nobel Prize-winning economist and New York Times columnist Paul Krugman. If there is another 9/11 crisis with Trump in charge, he warns: “America as we know it will soon be gone.”

There are the Republican traitors, too – Colin Powell, Henry Paulson, Michael Chertoff – now hanging from their crosses. And there are the neo-con turncoats, too – Max Boot, Robert Kagan… Crucifixion is probably too good for them.

They are not only traitors to the Republican cause, whatever that may be, but warmongers, too, ready to switch allegiances just to keep the money flowing to their crony friends in the security industry. Now they all keen away – but what did they expect?

 

A random collection of establishment figures, shills, chicken hawks & frauds from the entire officially approved political spectrum. Whatever one thinks of Trump, the fact that he makes this seemingly diverse collection of welfare-warfare etatistes squirm in agony is deeply satisfying…

 

Had they not been lustily ripping off the working stiffs for decades? With their fake money and fake wars, they had transferred trillions of dollars from the Main Street economy into their own pockets. And then, after the grandest larceny in all of history, didn’t they lecture the poor victims on global warming, racism, and cisgender issues?

Had they not been so rapacious and sanctimonious, they might have their own egregious gal in the White House now! Instead, the country is run by a man they consider an outrageous jackass. Sniff… sniff… We feel so sorry for them.

 

“Great Disruptor”

But where does that leave us? It leaves us with the hero of 2016, too – the man who routed all those hopeless whiners. And it leaves us with the same swamp…  the same swamp critters pulling strings and hatching plans and the same fake wars – on the real economy, on terror, on poverty, and on drugs.

So far, the losers are crying – all the way to the bank. Donald Trump is a “great disruptor,” says the press. What exactly will he disrupt? If Mr. Trump is to “make America great again,” he must do more than make the insiders mad. He must make them pay.

We saw what destroyed the Soviet Union’s empire: win-lose deals. The nomenklatura, the insiders, the Communist Party hacks all made out well – for a time. Meanwhile, the average person suffered. His income fell in line with his liberty. Naturally, a lot of people didn’t like it.

Stalin had to use drastic measures to keep the losers in check. Between 1936 and 1937, his secret police, the NKVD, arrested 1.5 million people. They shot 600,000 – a rate of about 1,000 a day.

 

Unfortunately only this one grainy photograph (and variants thereof) of the event depicted above exists, but it captured a historic moment. It was taken in Moscow in 1934, at the 17th Congress of the Communist Party of the Soviet Union. Steelworkers from Tula had given Stalin a Mosin-Nagant rifle as a gift. He immediately began aiming it at assorted party colleagues attending the Congress, to much laughter, hooting and applause. If only they had known – he wasn’t joking, he was simply giving them a none too subtle hint as to what was coming next. Of the 1225 voting delegates at the Congress, less than half were still alive five years later – and as a rule, they didn’t die of old age. Of the 139 comrades voted into the party’s Central Committee on the day this picture was taken, less than one quarter died of natural causes. At least 98 of them were killed on Stalin’s direct orders. In short, 1934 was an exceptionally bad year for Communist apparatchiks in the Soviet Union to advance in their political career…

Photo via pikabu.ru

 

By 1953, there were 5 million people in Gulags, or “internal exile,” in Siberia. Whole groups were exterminated, including poets, writers, scientists, and 85% of the Russian Orthodox clergy.

Meanwhile, win-win deals – voluntary exchanges – were practically outlawed. And without them, the system became so pathetic and unproductive, even the elite gave up trying to get anything out of it.

 

Moneymen and Gunmen

Now we know why America’s middle class suffers, too – not on the same scale, but for the same basic reason. Too many win-lose deals were imposed on them by the Parasitocrats, the insiders – the same people who now loathe the president they so richly deserve.

Household income in the U.S. is now lower than it was at the end of the last century. In the year 2000, the typical household had an income of $58,574. Today, it is only $57,827.

So now we know what Mr. Trump must do: reduce the number of win-lose deals to make room for more win-win deals. It is that simple. But doing so isn’t simple. The swamp critters – the insiders and Parasitocrats who control and profit from government regulations and legislation – are behind the win-lose deals. They’ll fight to protect them.

 

Republican U.S. presidential candidate Donald Trump speaks during a campaign rally at the Treasure Island Hotel Casino in Las Vegas, Nevada June 18, 2016.Is swamp drainage achievable and will the man with the plan be up to it? It is usually best to keep one’s expectations modest – as long as the Donald keeps delivering in the entertainment department and doesn’t start any useless wars, we will be by and large content…

Photo credit: David Becker / Reuters

 

We’ve seen, too, that the deals fit into three main categories: entitlements, the military-industrial-security complex, and Wall Street. As for the first, the Republicans have promised to overhaul Obamacare. But the president has sent mixed messages.

He also pledged to not cut entitlements. And when asked how he would pay for them, he answered that he knows “where to get the money from” and “nobody else knows.”

More than likely, the new president will be unable or unwilling to make any substantial dent in spending on pensions, pills, or schools. There are simply too many crony swamp critters and zombie voters on the receiving end. Besides, they are not completely lose-lose programs. Overpriced and inefficient they may be. Still, ordinary people do get some real benefits from them.

That leaves the two biggies: the military-industrial-security complex and Wall Street. Thus do the clouds lift and the picture clarifies. Trump and his team must try to rein in the gunmen and the moneymen, or they are nothing but conmen.

 

Image captions by PT

 

The above article originally appeared as “This Is How the U.S. Empire Destroys Itselfat the Diary of a Rogue Economist, written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.

 


 

Emigrate While You Can... Learn More

 
 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke

   
 

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • India: The World’s Fastest Growing Large Economy?
    Popular Narrative India has been the world’s favorite country for the last three years. It is believed to have superseded China as the world’s fastest growing large economy. India is expected to grow at 7.5%. Compare that to the mere 6.3% growth that China has “fallen” to.   India's quarterly annualized GDP growth rate since 2008, according to MOSPI (statistics ministry) - click to enlarge.   The IMF, the World Bank, and the international media have celebrated...
  • Don’t Blame Trump When the World Ends
    Alien Economics There was, indeed, a time when clear thinking and lucid communication via the written word were held in high regard. As far as we can tell, this wonderful epoch concluded in 1936. Everything since has been tortured with varying degrees of gobbledygook.   One should probably not be overly surprised that the abominable statist rag Time Magazine is fulsomely praising Keynes' nigh unreadable tome. We too suspect that this book has actually lowered the planet-wide IQ –...
  • What is the Best Time to Buy Stocks?
      Chasing Entry Points Something similar to the following has probably happened to you at some point: you want to buy a stock on a certain day and in order to time your entry, you start watching how it trades. Alas, the price rises and rises, and your patience begins to wear thin. Shouldn't a correction set in soon and provide you with a more favorable buying opportunity?   Apple-Spotting – a five minute intraday chart showing the action in AAPL on February 1, 2017 - an...
  • Incrementum Advisory Board Meeting, Q1 2017 and Some Additional Reflections
      Looming Currency and Liquidity Problems The quarterly meeting of the Incrementum Advisory Board was held on January 11, approximately one month ago. A download link to a PDF document containing the full transcript including charts an be found at the end of this post. As always, a broad range of topics was discussed; although some time has passed since the meeting, all these issues remain relevant. Our comments below are taking developments that have taken place since then into...
  • Gold and Silver Divergence – Precious Metals Supply and Demand
      Gold and Silver Divergence – Precious Metals Supply and Demand Last week, the prices of the metals went up, with the gold price rising every day and the silver price stalling out after rising 42 cents on Tuesday. The gold-silver ratio went up a bit this week, an unusual occurrence when prices are rising. Everyone knows that the price of silver is supposed to outperform — the way Pavlov’s Dogs know that food comes after the bell. Speculators usually make it...
  • Trump and the Draining of the Swamp
      Swamp Critters BALTIMORE – The Dow is back above the 20,000-point mark. Federal debt, as officially tallied, is up to nearly $20 trillion. The two go together, egging each other on. The Dow is up 20 times since 1980. So is the U.S. national debt. Debt feeds the stock market and the swamp. What’s not up so much is real output, as measured by GDP. It’s up only 6.4 times over the same period. Debt and asset prices have been rising three times as fast as GDP for 36 years! Best...
  • Making America Great Again – How to Judge Policy
      A Simple Formula MIAMI – How do we know if new programs will make the economy better... or worse? Here’s a simple formula:   W = rv (w-w – w-l)   That is, wealth is equal to the real value of win-win exchanges minus the loss from win-lose exchanges. Yes, dear reader, it’s as simple as that. Like a whittler working on a piece of wood, we’ve shaved so much off, there is nothing left of it... except the essential heartwood.   When devising a win-win,...
  • When Trumponomics Meets Abenomics
      Thirty Year Retread What will President Trump and Japanese Prime Minister Shinzo Abe talk about when they meet later today? Will they gab about what fishing holes the big belly bass are biting at? Will they share insider secrets on what watering holes are serving up the stiffest drinks? [ed. note: when we edited this article for Acting Man, the meeting was already underway]   Japan's prime minister Shinzo Abe, a dyed-in-the-wool Keynesian and militarist, meets America's...
  • Gold Sector Update – What Stance is Appropriate?
      The Technical Picture - a Comparison of Antecedents We wanted to post an update to our late December post on the gold sector for some time now (see “Gold – Ready to Spring Another Surprise?” for the details). Perhaps it was a good thing that some time has passed, as the current juncture seems particularly interesting. We received quite a few mails from friends and readers recently, expressing concern about the inability of gold stocks to lead, or even confirm strength in gold of...
  • The Great Wailing
      Regret and Suffering BALTIMORE – Victoribus spolia... So far, the most satisfying thing about the Trump win has been the howls and whines coming from the establishment. Each appointment – some good, some bad from our perspective – has brought forth such heavy lamentations.   Oh no! Alaric the Visigoth is here! Hide the women and children! And don't forget the vestal virgins, if you can find any...   You’d think Washington had been invaded by Goths, now...
  • Receive a One Percent Gift When Buying or Selling a Home
      How to Save Money When Buying or Make More When Selling a Home In your professional capacity and perhaps also in your private life, you may be closely involved with financial and commodity markets. Trading in stocks, bonds or futures is part of your daily routine.  Occasionally you probably have to deal with real estate as well though – if you e.g. want to purchase an apartment or a house, or if own a home you wish to sell.   The people who took this photograph probably want to...
  • Silver Futures Market Assistance – Precious Metals Supply and Demand
      Silver Is Pushed Up Again This week, the prices of the metals moved up on Monday. Then the gold price went sideways for the rest of the week, but the silver price jumped on Friday.   Taking off for real or not? Photo credit: NASA   Is this the rocket ship to $50? Will Trump’s stimulus plan push up the price of silver? Or just push silver speculators to push up the price, at their own expense, again? This will again be a brief Report this week, as we are busy...

Austrian Theory and Investment

Support Acting Man

Own physical gold and silver outside a bank

Archive

j9TJzzN

350x200

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com