lewrockwell--2020-12-19--The End Is Coming Very Soon, and Few Americans Are Willing To Do Anything To Stop It

“ Governments don ’ t want a population capable of critical thinking , they want obedient workers , people just smart enough to run the machines and just dumb enough to passively accept their situation .
You have no choice .
You have owners .
They own you .
They own everything .
They own all the important land .
They own , and control the corporations .
They ’ ve long since bought , and paid for the Senate , the Congress , the state houses , the city halls , they got the judges in their back pockets @ @ @ @ @ @ @ companies , so they control just about all of the news and information you get to hear.
” Is this country facing the end of times ?
Are the people in this country oblivious to any reality or truth , or are they simply consumed by ignorance , passivity , cowardice , and mediocrity ?
Will this onslaught of tyranny by the controlling class and the politicians continue unabated , or will enough wake up in time to stand against the total decimation of their lives , their property , their freedom , @ @ @ @ @ @ @ motivate the masses to voluntarily accept their own servitude , a servitude that can only lead to their imminent demise ?
Even the most simplistic life forms on this planet possess the basic instinct of self defense , so why is it that the supposed most intelligent of all living beings can be controlled and brutalized to the point of extinction , without lifting a finger to protect their own interests ?
Today in America , the people are drowning in a pool of their own blood , while their chosen masters are @ @ @ @ @ @ @ Sequins Ga ... Buy New $ 45.94 There is very little time left to change this course we are on today , as this plot toward the great reset of the world is close at hand .
In the past when liberty has been threatened , some fought back and won , but most sat back and waited , hoping others would come to their rescue , and save them from themselves .
Every time threats have come and gone , there was less freedom and much more control .
Each and every @ @ @ @ @ @ @ that remained long after any so-called ‘ return to normal ’ was expected .
‘ Normal ’ has been forever changing , meaning every new normal resulted in less freedom and more authoritarian measures .
That is until today , as now we face an end to any freedom , and a life of submission and enslavement .
Unless and until the current ruling oligarchy is eliminated or weakened to the point of impotence , and by whatever means necessary , the tyranny will run its course until it has total control or @ @ @ @ @ @ @ weight .
Throughout history , kingdoms , states , and nations have come and gone .
Empires reign , but always eventually fall .
After societal failure , a better system may be in place temporarily , as happened here in this country after the ousting of British rule , but due to power , greed , and weak and complacent populations , the collapse of societies has always been inevitable .
This one is no different .
The real question is how long will it last ?
Considering the ‘ assumed ’ @ @ @ @ @ @ @ for a little over 240 years .
Historically speaking , this is a very short time indeed , but the march toward a totalitarian end is near .
We are now on the brink of that precipice , with one foot already dangling over the cliff .
There will be no return to ‘ normal ’ or any notion of freedom , unless a complete dismantling of this very flawed governing system is forthcoming .
That can only happen if a majority of the people not only desire it , but also are @ @ @ @ @ @ @ to regain their own independence .
At this stage , our probable downfall will not be due to the few evil oligarchs that are perpetrating this fraud called a ‘ virus pandemic , ’ it will be due to a complete abandonment of self-responsibility by the people themselves .
This truth has to be acknowledged before any relief is possible .
So long as blame is spread wide in order to appease the feeble psyche of the pitiful masses , and no accountability for one ’ s own life and existence is accepted @ @ @ @ @ @ @ .
We now live in a society that has lost its ability to function without rule .
The herd is forever looking to find a master instead of looking to self .
So long as this attitude is present in the majority , individual sovereignty will not prevail , and a population of order-takers and rule-followers will be the result .
That can not lead to freedom , but only to complete subjugation of the American people .
Five hundred years ago , Étienne de La Boétie wrote “ The Politics of Obedience @ @ @ @ @ @ @ The people of this country have voluntarily given up their freedom , and in the process have become obedient serfs .
In this passage below , he summed up the essence of voluntary slavery through obedient behavior .
“ It amazes us to hear accounts of the valor that liberty arouses in the hearts of those who defend it ; but who could believe reports of what goes on every day among the inhabitants of some countries , who could really believe that one man alone may mistreat a hundred thousand and deprive @ @ @ @ @ @ @ credit such a report if he merely heard it , without being present to witness the event ?
And if this condition occurred only in distant lands and were reported to us , which one among us would not assume the tale to be imagined or invented , and not really true ?
Obviously there is no need of fighting to overcome this single tyrant , for he is automatically defeated if the country refuses consent to its own enslavement : it is not necessary to deprive him of anything , but simply @ @ @ @ @ @ @ no need that the country make an effort to do anything for itself provided it does nothing against itself .
It is therefore the inhabitants themselves who permit , or , rather , bring about , their own subjection , since by ceasing to submit they would put an end to their servitude.
” Happy New Year Headban ... Buy New $ 10.00 ( $ 10.00 / Count ) How many times have Americans criticized those in other lands for allowing tyrants to rule over them without rising up to protect their own @ @ @ @ @ @ @ in this country condemned totalitarian monsters across the world , and called for them to be removed or killed ?
How many times have Americans cheered for aggressive war against other nations because they lived under brutal regimes ?
How many times have Americans bragged about being exceptional , and falsely declared that they are freest people on earth ?
How many times has this American population allowed that same tyranny and brutality here at home and done nothing ?
I can tell you , most all in this country are voluntarily allowing @ @ @ @ @ @ @ absolutely nothing to stop it .
Civil disobedience and mass dissent would be enough to quell this onslaught of government lies , carnage , murder , and liberty destruction , but while you condemn others , you sit idle and watch your own freedom taken away without ever lifting a finger to stop it .
Shame on all of you who refuse to disobey , and refuse to defend your own freedom !
The Best of Gary D. Barnett

“Governments don’t want a population capable of critical thinking, they want obedient workers, people just smart enough to run the machines and just dumb enough to passively accept their situation. You have no choice. You have owners. They own you. They own everything. They own all the important land. They own, and control the corporations. They’ve long since bought, and paid for the Senate, the Congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear.”
~ George Carlin
Is this country facing the end of times? Are the people in this country oblivious to any reality or truth, or are they simply consumed by ignorance, passivity, cowardice, and mediocrity? Will this onslaught of tyranny by the controlling class and the politicians continue unabated, or will enough wake up in time to stand against the total decimation of their lives, their property, their freedom, and their land? What could possibly motivate the masses to voluntarily accept their own servitude, a servitude that can only lead to their imminent demise? Even the most simplistic life forms on this planet possess the basic instinct of self defense, so why is it that the supposed most intelligent of all living beings can be controlled and brutalized to the point of extinction, without lifting a finger to protect their own interests? Today in America, the people are drowning in a pool of their own blood, while their chosen masters are feasting on the remains. Women 1920s Sequins Ga... Buy New $45.94 (as of 08:12 UTC - Details)
There is very little time left to change this course we are on today, as this plot toward the great reset of the world is close at hand. In the past when liberty has been threatened, some fought back and won, but most sat back and waited, hoping others would come to their rescue, and save them from themselves. Every time threats have come and gone, there was less freedom and much more control. Each and every tyrannical event brought an assault against liberty that remained long after any so-called ‘return to normal’ was expected. ‘Normal’ has been forever changing, meaning every new normal resulted in less freedom and more authoritarian measures. That is until today, as now we face an end to any freedom, and a life of submission and enslavement. Unless and until the current ruling oligarchy is eliminated or weakened to the point of impotence, and by whatever means necessary, the tyranny will run its course until it has total control or the entire system collapses under its own weight.
Throughout history, kingdoms, states, and nations have come and gone. Empires reign, but always eventually fall. After societal failure, a better system may be in place temporarily, as happened here in this country after the ousting of British rule, but due to power, greed, and weak and complacent populations, the collapse of societies has always been inevitable. This one is no different. The real question is how long will it last? Considering the ‘assumed’ founding, this nation has only existed for a little over 240 years. Historically speaking, this is a very short time indeed, but the march toward a totalitarian end is near. We are now on the brink of that precipice, with one foot already dangling over the cliff. There will be no return to ‘normal’ or any notion of freedom, unless a complete dismantling of this very flawed governing system is forthcoming. That can only happen if a majority of the people not only desire it, but also are willing to take any and all risk to regain their own independence.
At this stage, our probable downfall will not be due to the few evil oligarchs that are perpetrating this fraud called a ‘virus pandemic,’ it will be due to a complete abandonment of self-responsibility by the people themselves. This truth has to be acknowledged before any relief is possible. So long as blame is spread wide in order to appease the feeble psyche of the pitiful masses, and no accountability for one’s own life and existence is accepted, then no resolution will be attainable. We now live in a society that has lost its ability to function without rule. The herd is forever looking to find a master instead of looking to self. So long as this attitude is present in the majority, individual sovereignty will not prevail, and a population of order-takers and rule-followers will be the result. That cannot lead to freedom, but only to complete subjugation of the American people. Five hundred years ago, Étienne de La Boétie wrote “The Politics of Obedience and The Discourse of Voluntary Servitude.” The people of this country have voluntarily given up their freedom, and in the process have become obedient serfs. In this passage below, he summed up the essence of voluntary slavery through obedient behavior.
“It amazes us to hear accounts of the valor that liberty arouses in the hearts of those who defend it; but who could believe reports of what goes on every day among the inhabitants of some countries, who could really believe that one man alone may mistreat a hundred thousand and deprive them of their liberty? Who would credit such a report if he merely heard it, without being present to witness the event? And if this condition occurred only in distant lands and were reported to us, which one among us would not assume the tale to be imagined or invented, and not really true? Obviously there is no need of fighting to overcome this single tyrant, for he is automatically defeated if the country refuses consent to its own enslavement: it is not necessary to deprive him of anything, but simply to give him nothing; there is no need that the country make an effort to do anything for itself provided it does nothing against itself. It is therefore the inhabitants themselves who permit, or, rather, bring about, their own subjection, since by ceasing to submit they would put an end to their servitude.” Happy New Year Headban... Buy New $10.00 ($10.00 / Count) (as of 08:12 UTC - Details)
How many times have Americans criticized those in other lands for allowing tyrants to rule over them without rising up to protect their own liberty? How many times have those in this country condemned totalitarian monsters across the world, and called for them to be removed or killed? How many times have Americans cheered for aggressive war against other nations because they lived under brutal regimes? How many times have Americans bragged about being exceptional, and falsely declared that they are freest people on earth? How many times has this American population allowed that same tyranny and brutality here at home and done nothing?
I can tell you, most all in this country are voluntarily allowing this takeover today, and are doing absolutely nothing to stop it. Civil disobedience and mass dissent would be enough to quell this onslaught of government lies, carnage, murder, and liberty destruction, but while you condemn others, you sit idle and watch your own freedom taken away without ever lifting a finger to stop it. Shame on all of you who refuse to disobey, and refuse to defend your own freedom!
The Best of Gary D. Barnett


lewrockwell--2020-12-19--How the State Spreads Mass Hysteria

How the State Spreads Mass Hysteria

The history of mass hysteria , or mass sociogenic illness is fascinating .
Cases of mass hysteria have been documented since the Middle Ages .
Let me just mention a few of the more recent cases .
When a radio play by Orson Welles , War of the Worlds , was broadcasted in 1938 shortly after the suspension of the Munich agreement , the play allegedly caused panic among listeners , who thought that they were under attack by Martians .
Another intriguing case is an episode of a Portuguese TV show called Strawberries with Sugar .
In the episode @ @ @ @ @ @ @ life-threatening virus .
After the show , more than three hundred students reported similar symptoms as the ones experienced by the TV show characters such as rashes and difficulty breathing .
Some schools even closed .
The Portuguese National Institute for Medical Emergency concluded that the virus did not exist in reality and that the symptoms were caused by mass hysteria .
Romwe Women ’ s La ... Buy New $ 28.99 Similarly , on Emirates flight 203 in September 2018 , dozens of passengers started to believe they were sick after observing @ @ @ @ @ @ @ a consequence of the panic , the whole flight was quarantined .
In the end only a few passengers had a common cold or the seasonal flu .
It is well known that there exist nocebo effects , which are the opposite of placebo effects .
Due the placebo effect , a person recovers from an illness because she expects to do so .
When we suffer a nocebo effect , on the other hand , we get ill just because we expect to become ill .
In a self-fulfilling prophecy , the @ @ @ @ @ @ @ and fear exacerbate this process .
Mass hysteria can cause people to have symptoms .
Moreover , hysteria , be it collective or not , makes people behave in ways that prudent persons not affected by the hysteria would likely consider absurd .
It is open for empirical research to investigate if and to what extent the world has been suffering from mass hysteria during the covid-19 epidemic .
We all have seen people hoarding toilet paper , wearing masks while driving alone in cars , or have heard stories of people virtually @ @ @ @ @ @ @ We also know people who are scared by the virus even though their own risk of death is minuscule .
While investigating the possibility of a corona mass hysteria is certainly interesting , I would like to focus here on a more fundamental question ; namely , the extent to which the existence of the state can exacerbate mass hysteria .
Certainly , there can be cases of mass hysteria in a free society , due to the negativity bias of the human brain .
We focus on negative news and suffer psychological @ @ @ @ @ @ @ in control .
This may happen also in a free society when negative news prevail .
Yet in a free society there exist certain self-corrective mechanisms and limits that make it more difficult for mass hysteria to spiral out of control .
As a corrective mechanism , there exist well-known strategies to reduce fear and anxiety .
In a free society people are free to make use of these strategies .
One can release tension from one ’ s body through sports and exercises .
Moreover , it is essential to find distractions @ @ @ @ @ @ @ In a free society these distractions abound .
It is true that hysteria can lead people to inflict enormous harm on themselves and others .
Yet in a free society there exists an essential limit to the havoc caused by mass hysteria , and this limit is private property rights .
In a free society mass hysteria can not lead to a massive violation of private property rights by the state , simply because the state does not exist .
Moreover , while anyone in a health hysteria may voluntarily close his business @ @ @ @ @ @ @ at home , in a free society no one can force others who do not succumb to the hysteria to close their businesses , wear masks , or quarantine .
A small minority who continue to live their normal lives and are free to do so can be a wake-up call to those who succumbed to the mass hysteria , especially the borderline cases .
Imagine that a small group of people continues to go shopping , to work , to breath freely , to meet with friends and family , and that @ @ @ @ @ @ @ then follow their example and the group of hysterics shrinks .
Verdusa Women ’ s ... Buy New $ 25.99 While the destruction inflicted by mass hysteria is limited by private property rights in a free society , such limits do not exist when there is a state .
Indeed , a well-organized group that has succumbed to mass hysteria may get control of the state apparatus and impose measures on the rest of the population and inflict untold harm .
The possibility of mass hysteria is an important reason why the institution @ @ @ @ @ @ @ Moreover , while in a free society there are mechanisms that reduce mass panics , mass hysteria can be exacerbated by the state for several reasons : First , the state can and , as in the case of the covid-19 epidemic , does prohibit and diminish those activities that reduce fear and anxiety , such as sports and diversion .
The state actually fosters social isolation , contributing to anxiety and psychological strain , ingredients that spur mass hysteria .
Second , the state takes a centralized approach to dealing with the @ @ @ @ @ @ @ case the perceived threat of a virus .
The state imposes its solution , and in consequence there is no or very reduced experimentation to solve the problem .
People who have not succumbed to the hysteria and oppose the state ’ s approach are suppressed .
They can not demonstrate alternative ways to confront the “ crisis , ” because these alternative ways are prohibited by the state .
As a consequence , groupthink increases and the hysteria feeds itself , as no alternatives are shown to people .
Third , in @ @ @ @ @ @ @ politicized .
News outlets and social media platforms have close relationships with the state .
Media outlets may be directly owned by the state , as are public TV channels , they may need state licenses to operate , they may look for the goodwill of state agencies , or may simply be staffed with people who were educated in state schools .
These news agencies and social media platforms engage in massive negative news campaigns , intentionally scare people , and suppress alternative information .
If people listen to , watch , @ @ @ @ @ @ @ day , their psychological stress and anxiety increases .
Mass hysteria sponsored by a biased media sector may run out of control .
Fourth , negative news from an authoritative source is especially harmful for psychological health and produces anxiety .
If there exists in society an institution of total power such as the state that intervenes in the lives of people from birth to death , the announcements of its representatives acquire weight .
Many people attach great authority to these representatives and to the warnings of state institutions .
So , @ @ @ @ @ @ @ speaks in the name of the state and tells the people to worry and wear masks , it becomes easier for mass hysteria to develop than would be the case in a decentralized society .
Romwe Women ’ s Se ... Buy New $ 21.99 Fifth , the state sometimes actively wants to instill fear in the population , thereby contributing to the making of mass hysteria .
In fact , during the first months of the corona epidemic , an internal paper of the German Department of the Interior was leaked to @ @ @ @ @ @ @ the experts recommend that the German government instill fear in the German population .
The paper recommends increasing fear with three communication measures .
First , the authorities should emphasize the breathing problems of covid-19 patients , because the human beings have a primordial fear of death by suffocation , which can easily trigger panic .
Second , fear should also be instilled in children .
Children could get infected easily when meeting with other children .
They should be told that when they in turn infect their parents and grandparents these could @ @ @ @ @ @ @ This measure intends to invoke feelings of guilt .
Third , authorities should mention the possibility of unknown long-term irreversible damage after a corona infection and the possibility of the sudden deaths of people who were infected .
All these measures were intended to increase fear in the population .
Fear , at the end , is the foundation of every government´s power .
As H.L .
Mencken put it : To sum up : mass hysteria is possible in a free society , but there are self-correcting mechanisms .
The harm such @ @ @ @ @ @ @ enforcement of private property rights .
The state amplifies and exacerbates mass panics , causing tremendous havoc .
What are local , limited , and isolated outbreaks of mass hysteria in a free society the state can convert into a global mass hysteria .
Unfortunately , there is no limit to the damage mass hysteria can do to life and liberty if it takes hold of the government , as the state does not respect private property .
The unscrupulous violation of basic liberties during the corona epidemic is a case in point @ @ @ @ @ @ @ another reason why the state is such a dangerous institution to have .
In a famous case a man tried to suicide himself .
He thought he was swallowing twenty-nine capsules of an experimental drug .
However , they were in reality placebos .
But he was thinking he would be killing himself .
He arrived at the hospital with extreme low blood pressure and other serios symptoms .
When the doctor of the medical trial arrived and told him that he had taken just placebos , the man recovered within fifteen minutes @ @ @ @ @ @ @ to deaths that otherwise would not have occurred .
Keep in mind that the psychological strain on and the anxiety suffered by the population during the lockdowns was tremendous .
The Drop Women ’ s ... Buy New $ 39.90 For the psychology of masses and their irrationality see the classical work of Gustave Le Bon .
A related point regards the consequences that come with a population that stopped believing in God and started to believe in the state instead .
When people turn away from religion and stop believing in a @ @ @ @ @ @ @ fear death more .
A strong fear of death is another factor contributing to panics , disorders , and mass hysteria .
As Erik von Kuehnelt-Leddihn has put it : “ It is difficult to fear death if one is very pious .
It is difficult not to worship health if one fears death .
It is difficult to enforce general health without large scale state intervention and it is equally difficult to imagine increased state intervention without a loss of liberties.
” The Menace of the Herd or Procrustes at Large ( @ @ @ @ @ @ @ , 1943 ) , pp .
38–39 .
Note : The views expressed on Mises.org are not necessarily those of the Mises Institute .

The history of mass hysteria, or mass sociogenic illness is fascinating. Cases of mass hysteria have been documented since the Middle Ages. Let me just mention a few of the more recent cases.
When a radio play by Orson Welles, War of the Worlds, was broadcasted in 1938 shortly after the suspension of the Munich agreement, the play allegedly caused panic among listeners, who thought that they were under attack by Martians.
Another intriguing case is an episode of a Portuguese TV show called Strawberries with Sugar. In the episode, the characters were infected by a life-threatening virus. After the show, more than three hundred students reported similar symptoms as the ones experienced by the TV show characters such as rashes and difficulty breathing. Some schools even closed. The Portuguese National Institute for Medical Emergency concluded that the virus did not exist in reality and that the symptoms were caused by mass hysteria. Romwe Women’s La... Buy New $28.99 (as of 08:13 UTC - Details)
Similarly, on Emirates flight 203 in September 2018, dozens of passengers started to believe they were sick after observing other passengers with flu-like symptoms. As a consequence of the panic, the whole flight was quarantined. In the end only a few passengers had a common cold or the seasonal flu.
It is well known that there exist nocebo effects, which are the opposite of placebo effects. Due the placebo effect, a person recovers from an illness because she expects to do so. When we suffer a nocebo effect, on the other hand, we get ill just because we expect to become ill. In a self-fulfilling prophecy, the expectation can cause the symptoms. Anxiety and fear exacerbate this process.
Mass hysteria can cause people to have symptoms. Moreover, hysteria, be it collective or not, makes people behave in ways that prudent persons not affected by the hysteria would likely consider absurd. It is open for empirical research to investigate if and to what extent the world has been suffering from mass hysteria during the covid-19 epidemic. We all have seen people hoarding toilet paper, wearing masks while driving alone in cars, or have heard stories of people virtually not leaving their houses for months. We also know people who are scared by the virus even though their own risk of death is minuscule.
While investigating the possibility of a corona mass hysteria is certainly interesting, I would like to focus here on a more fundamental question; namely, the extent to which the existence of the state can exacerbate mass hysteria. Certainly, there can be cases of mass hysteria in a free society, due to the negativity bias of the human brain. We focus on negative news and suffer psychological stress when we think we are not in control. This may happen also in a free society when negative news prevail. Yet in a free society there exist certain self-corrective mechanisms and limits that make it more difficult for mass hysteria to spiral out of control.
As a corrective mechanism, there exist well-known strategies to reduce fear and anxiety. In a free society people are free to make use of these strategies. One can release tension from one’s body through sports and exercises. Moreover, it is essential to find distractions from the negative news and socialize. In a free society these distractions abound.
It is true that hysteria can lead people to inflict enormous harm on themselves and others. Yet in a free society there exists an essential limit to the havoc caused by mass hysteria, and this limit is private property rights. In a free society mass hysteria cannot lead to a massive violation of private property rights by the state, simply because the state does not exist.
Moreover, while anyone in a health hysteria may voluntarily close his business, wear a mask, or stay at home, in a free society no one can force others who do not succumb to the hysteria to close their businesses, wear masks, or quarantine. A small minority who continue to live their normal lives and are free to do so can be a wake-up call to those who succumbed to the mass hysteria, especially the borderline cases. Imagine that a small group of people continues to go shopping, to work, to breath freely, to meet with friends and family, and that they do not die. Others may then follow their example and the group of hysterics shrinks. Verdusa Women’s ... Buy New $25.99 (as of 08:13 UTC - Details)
While the destruction inflicted by mass hysteria is limited by private property rights in a free society, such limits do not exist when there is a state. Indeed, a well-organized group that has succumbed to mass hysteria may get control of the state apparatus and impose measures on the rest of the population and inflict untold harm. The possibility of mass hysteria is an important reason why the institution of the state is so dangerous.
Moreover, while in a free society there are mechanisms that reduce mass panics, mass hysteria can be exacerbated by the state for several reasons:
First, the state can and, as in the case of the covid-19 epidemic, does prohibit and diminish those activities that reduce fear and anxiety, such as sports and diversion. The state actually fosters social isolation, contributing to anxiety and psychological strain, ingredients that spur mass hysteria.
Second, the state takes a centralized approach to dealing with the source of the hysteria, in our case the perceived threat of a virus. The state imposes its solution, and in consequence there is no or very reduced experimentation to solve the problem. People who have not succumbed to the hysteria and oppose the state’s approach are suppressed. They cannot demonstrate alternative ways to confront the “crisis,” because these alternative ways are prohibited by the state. As a consequence, groupthink increases and the hysteria feeds itself, as no alternatives are shown to people.
Third, in a state, the media is often politicized. News outlets and social media platforms have close relationships with the state. Media outlets may be directly owned by the state, as are public TV channels, they may need state licenses to operate, they may look for the goodwill of state agencies, or may simply be staffed with people who were educated in state schools. These news agencies and social media platforms engage in massive negative news campaigns, intentionally scare people, and suppress alternative information. If people listen to, watch, or read negative and one-sided stories all day, their psychological stress and anxiety increases. Mass hysteria sponsored by a biased media sector may run out of control.
Fourth, negative news from an authoritative source is especially harmful for psychological health and produces anxiety. If there exists in society an institution of total power such as the state that intervenes in the lives of people from birth to death, the announcements of its representatives acquire weight. Many people attach great authority to these representatives and to the warnings of state institutions. So, when a doctor such as Anthony Fauci speaks in the name of the state and tells the people to worry and wear masks, it becomes easier for mass hysteria to develop than would be the case in a decentralized society. Romwe Women’s Se... Buy New $21.99 (as of 08:13 UTC - Details)
Fifth, the state sometimes actively wants to instill fear in the population, thereby contributing to the making of mass hysteria. In fact, during the first months of the corona epidemic, an internal paper of the German Department of the Interior was leaked to the public. In the paper, the experts recommend that the German government instill fear in the German population. The paper recommends increasing fear with three communication measures. First, the authorities should emphasize the breathing problems of covid-19 patients, because the human beings have a primordial fear of death by suffocation, which can easily trigger panic. Second, fear should also be instilled in children. Children could get infected easily when meeting with other children. They should be told that when they in turn infect their parents and grandparents these could suffer a distressful death at home. This measure intends to invoke feelings of guilt. Third, authorities should mention the possibility of unknown long-term irreversible damage after a corona infection and the possibility of the sudden deaths of people who were infected. All these measures were intended to increase fear in the population. Fear, at the end, is the foundation of every government´s power. As H.L. Mencken put it:
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.
To sum up: mass hysteria is possible in a free society, but there are self-correcting mechanisms. The harm such hysteria may inflict is limited by the enforcement of private property rights. The state amplifies and exacerbates mass panics, causing tremendous havoc. What are local, limited, and isolated outbreaks of mass hysteria in a free society the state can convert into a global mass hysteria. Unfortunately, there is no limit to the damage mass hysteria can do to life and liberty if it takes hold of the government, as the state does not respect private property. The unscrupulous violation of basic liberties during the corona epidemic is a case in point. The possibility of mass hysteria is another reason why the state is such a dangerous institution to have.
—
In a famous case a man tried to suicide himself. He thought he was swallowing twenty-nine capsules of an experimental drug. However, they were in reality placebos. But he was thinking he would be killing himself. He arrived at the hospital with extreme low blood pressure and other serios symptoms. When the doctor of the medical trial arrived and told him that he had taken just placebos, the man recovered within fifteen minutes.
During the Spanish flu panic contributed to deaths that otherwise would not have occurred.
Keep in mind that the psychological strain on and the anxiety suffered by the population during the lockdowns was tremendous. The Drop Women’s... Buy New $39.90 (as of 08:13 UTC - Details)
For the psychology of masses and their irrationality see the classical work of Gustave Le Bon.
A related point regards the consequences that come with a population that stopped believing in God and started to believe in the state instead. When people turn away from religion and stop believing in a life after death, they start to fear death more. A strong fear of death is another factor contributing to panics, disorders, and mass hysteria. As Erik von Kuehnelt-Leddihn has put it: “It is difficult to fear death if one is very pious. It is difficult not to worship health if one fears death. It is difficult to enforce general health without large scale state intervention and it is equally difficult to imagine increased state intervention without a loss of liberties.” The Menace of the Herd or Procrustes at Large (Milkwaukee, WI: Bruce Publishing Company, 1943), pp. 38–39.
Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.


lewrockwell--2020-12-19--Unhinged… And Then Some!

Unhinged… And Then Some!

Jerome Powell puts you in mind of the boy who killed both of his parents and then threw himself on the mercy of the court on the grounds that he was an orphan !
That ’ s what JayPo essentially did in his presser yesterday while trying to explain that the most hideous equity market bubble in history is actually not that at all : “ If you look at P/Es they ’ re historically high , but in a world where the risk-free rate is going to be low for a sustained period , the equity premium , which @ @ @ @ @ @ @ taking equity risk , would be what you ’ d look at , ” Powell said .
“ Admittedly P/Es are high but that ’ s maybe not as relevant in a world where we think the 10-year Treasury is going to be lower than it ’ s been historically from a return perspective , ” Powell said .
SheIn Women ’ s Se ... Buy New $ 32.99 Right .
The Fed has essentially murdered the bond yield .
So relatively speaking , grossly inflated stocks are a bargain compared to dead-in-the-water @ @ @ @ @ @ @ to prove all this based on the so-called “ Fed model ” : The S & P 500 ’ s earnings yield – profit relative to share price – is 2.5 percentage points higher than the yield on 10-year Treasury notes .
The comparison , loosely labeled the Fed model , sits well above what the spread was before the burst of the internet bubble , when bonds yielded more than equities by that measure .
Then again , the “ earnings yield ” is not exactly cash you can take to the @ @ @ @ @ @ @ meager as it might be at present .
The former is just a computational hope that today ’ s vastly inflated stock prices relative to earnings stay inflated indefinitely , world without end .
Stocks still looks appealing when compared to bond yields More fundamentally , where is it written in the annals of sound finance that the purpose of owing bonds is to lose money forever and ever ?
For want of doubt , here ’ s the 10-year bond yield that has been suffocated by the Fed ’ s massive bond @ @ @ @ @ @ @ which the Fed relentlessly strives to promote at 2.00 % per annum , there is no real yield left at all .
KANGKANG Baby Girl Fir ... Buy New $ 24.99 So what Powell is apparently saying is that since bonds are for suckers , please have some 40X PE stocks instead .
As is evident from the chart , prior to the year 2000 there tended to be 200-400 basis points of daylight between the inflation rate as measured by the Y/Y change in the 16 % trimmed mean CPI ( blue @ @ @ @ @ @ @ yield ( black line ) .
But after the dotcom crash , money-printing got serious and , as JM Keynes himself might have said , the real yield got euthanized .
As of the most recent reading ( October 2020 ) , in fact , the 10-year UST yield at 0.88 % was fully 134 basis points lower than the Y/Y inflation rate at 2.22 % .
At the rate , of course , the purchasing power of your principal would essentially vanish after a few decades .
In truth , even a @ @ @ @ @ @ @ that the current bond yield is a false and dangerous benchmark for the valuation of equities .
The fact that JayPo has taken to citing it with alacrity is just another sign that today ’ s money-printing central bankers have become completely unhinged .
Euthanasia of the Real Bond Yield : 10-Year UST vs. Inflation , 1994-2020 Indeed , the sheer gall of justifying sky-high stock prices based on absurdly low bond yields is underscored by the chart below .
Thanks to more than $ 30 trillion of central bank balance sheet expansion @ @ @ @ @ @ @ bond market is completely broken , as attested to by the now all-time record of $ 18 trillion of global bonds trading at negative nominal yields .
For crying out loud , bonds should never trade at negative nominal yields ; it amounts to financial masochism – paying someone to lock-up your own money for an extended period .
The only theoretical exception might be in a financial environment of deep and long-lasting deflation .
But in the world as we have known it , where ’ s the deflation ?
Indeed , @ @ @ @ @ @ @ in August 1971 and ripped the dollar from its last anchor to real money ( gold ) , the general price level has risen by 540 % .
Yet these cats at the Fed do not even notice that the global bond market is completely kaput and is priced for an alternate deflationary universe that is the opposite of the real world tracked below .
Even in the most recent period , yields on US treasury paper are stupidly low compared to the current 2.22 % Y/Y inflation rate .
Not a single @ @ @ @ @ @ @ close to being near or above the inflation rate .
Thus , at the end of last week : InsNova Winter A-Line ... Buy New $ 25.99 Yet it is the above lineup of ridiculously underwater real yields that JayPo avers are proof that there is no stock market bubble .
About the only consolation for that kind of tommyrot is that central bankers around the world have apparently embraced the same notion : Namely , that the purpose of the bond market is to separate you from your wealth over time .
@ @ @ @ @ @ @ the fiscal basket case nations sport below inflation yields , and decidedly so .
As if to underscore the absurdity of Europe ’ s ECB-suffocated bond market , the yield on the 10-year Spanish bond at the end of last week was , well , 0.00 % – even as German , French and Portuguese nominal yields traded at negative levels : But rather than notice that he had accomplished JM Keynes ’ fondest wish and had indeed euthanized the bond-owning rentiers , JayPo was on a total different track yesterday : He @ @ @ @ @ @ @ inflation .
“ It is not going to be easy to have inflation move up , and it ’ s going to take some time.
” The above is simply ritual incantation .
There has never , ever been in recent times any danger of sustained deflation , as if that were a problem , which 40 years of robust deflationary prosperity between 1870 and 1910 long ago disproved in spades .
ANATA Flower Girls Wed ... Buy New $ 24.99 So the only intelligible reason for more inflation than the 2.10 % @ @ @ @ @ @ @ mean CPI over the last 20-years is that the Fed considers inflation to be a proxy for real GDP growth .
That ’ s the hoary Phillips Curve notion , as also discredited 40-50 years ago , but what ’ s the point anyway ?
Why not simply keep your eye on real GDP and be done with it ?
In fact , why not forget about inflation targeting altogether , when you can ’ t measure it accurately or influence it directly , anyway ; and , instead , keep your eye @ @ @ @ @ @ @ from the Eccles Building meeting room ?
That is , the absurdly negative real bond yields , which are a direct result of massive monetization , and the preposterous stock market PE multiples , which are being driven by nothing more profound than TINA ( FMBM ) : There Is No Alternative ( to a Fed-Murdered Bond Market ) .
As to the those nosebleed PEs , we are not talking just about the sheer insanity of Tesla at 1300X LTM earnings or Amazon at 95X .
The latest estimates hot off the @ @ @ @ @ @ @ the broad market represented by the S & P 500 and its $ 30 trillion of market cap are $ 93.29 per share for the year ending December 2020 ; and a gain of , well , +54 % to $ 143.98 per share for the year ending in December 2021 .
Rounding to the nearest whole integer , those guesstimates ( which are never , ever low ) amount to 40X and 26X , respectively .
So if JayPo wants to ruminate about the dangers ahead , perhaps he should forget about @ @ @ @ @ @ @ inflation rate and focus on the massive stock market bubble starring him right in the face .
Even more to the point , if these fools in the Eccles Building could just shed their inflation targeting myopia for a brief while , they might also note some of the manifold ill-effects that have resulted from their maniacal money-printing handiwork .
For instance , notwithstanding more than 50 million new unemployment claims and the lockdown-driven calamity across the ranks of millions of small businesses , the 0.001 % who sit atop the giant private @ @ @ @ @ @ @ die for .
That is , thanks to the Fed ’ s crushing of rates on investment grade government and corporate debt , yield parched money managers have made a bee-line for that tad of something slightly more than nothing offered by junk bonds .
So far this year ( thru November ) junk bond issuance has reached nearly $ 400 billion , up by more than 50 % from the like period of 2019 .
But a big share of the proceeds have gone into record amounts of leveraged recaps .
Private @ @ @ @ @ @ @ further encumber their already debt-laden portfolio companies with even more debt for the purpose of paying themselves a rich harvest of cash dividends .
The amount of issued debt tied to such payouts grew to more than $ 29 billion this year , up more than 25 % from 2019 , according to S & P Global Market Intelligence .
By comparison , during the last recession , in 2008-09 , such activity nearly dried up .
MANER Women ’ s Se ... Buy New $ 37.99 Nor is that the half of @ @ @ @ @ @ @ US dollar corporate debt , 2020 is turning out to be an all-time barn burner .
According to the latest estimates – • Investment grade issuance will be up by 53 % to an all-time record of $ 2.02 trillion ; • High yield issuance will rise by nearly 30 % to $ 556 billion .
Yet there is no doubt as to where the overwhelming share of proceeds have ended up .
To wit , they have been cycled right back to Wall Street to fund financial engineering projects including stock buybacks @ @ @ @ @ @ @ to the former , the chart below says it all .
Since 2009 , nearly $ 15 trillion of new money has been cycled into the stock market , but virtually 100 % of that has come from corporations themselves , which either borrowed new money or drew down cash assets to repurchase their own stocks .
And yet the geniuses in the Eccles Building repeated again yesterday that they will continue to commit $ 120 billion per month of what amounts to financial fraud until the so-called full employment economy – which @ @ @ @ @ @ @ engineering – is finally attained .
Rarely have even brain-addled house-cats so foolishly chased their own tails .
Then there is the matter of runaway financialization .
As a case in point , household net worth as measured by the Fed ’ s flow-of-funds accounts jumped to a record $ 123.5 trillion in Q3 .
At 584 % of GDP it now towers over previous cycle peaks 493 % during Q1 2007 , 447 % during Q1 2000 and well less than 350 % of GDP prior to 1987 .
Yet has JayPo @ @ @ @ @ @ @ the value of financial assets have become so drastically decoupled from main street GDP ?
Or whether Fed-fostered ultra-low bond yields and nosebleed stock valuations have anything to do with it – to say nothing as to whether such unprecedented disconnects are stable and sustainable .
Cilucu Flower Girls Dr ... Buy New $ 9.99 He has not .
Nor has he apparently ever wondered about the recent Deloitte study , revealing that during its 15 years of existence , the U.S. shale industry managed to write off a staggering $ 450 billion @ @ @ @ @ @ @ billion in net negative cash flow .
Further , the sector has recorded more than 190 bankruptcies since 2010 , the highest by any sector in the United States .
That is to say , might it be that radical financial repression is the mother ’ s milk of malinvestment ?
And that one reason the trend rate of economic growth keeps falling despite the Fed ’ s endless bouts of “ stimulus ” is that capital is being drastically and systematically mispriced , mis-allocated and wasted ?
In that vein there is @ @ @ @ @ @ @ – when real bond yields were still economically rational – there were no such thing as exchange trade funds ( ETFs ) .
That ’ s because in an honest free market they wouldn ’ t even exist .
If genuine investors and stock pickers wanted balanced exposure to an industry versus a single company , the fact is they could compose their own composites at virtually no expense given today ’ s low cost research , data analysis and trading tools .
As it is , the only real purpose of ETFs @ @ @ @ @ @ @ robo-traders .
Not surprisingly , therefore , exchange traded funds attracted record inflows of $ 121 billion in November , a jump of 14.5 % on the previous record month .
That huge monthly haul brought net global inflows in the first 11 months of this year to $ 659 billion , 15.4 % more than the $ 571 billion gathered over the same period in 2019 .
Indeed , the chart below is the smoking gun .
In broad strokes , traditional stock picking mutual funds at least resemble “ investors ” @ @ @ @ @ @ @ domain of traders and speculators .
Yet when capital markets become dominated by speculation per the flow of funds depicted below , the actual efficiency and growth capacity of the main street economy is progressively eroded and impaired .
Needless to say , given the mayhem and malinvestment the central banks have unleashed on Wall Street , it is not surprising that the financially uneducated politicians of Washington might have become unhinged as well .
But as the Congress inches toward another $ 900 billion Everything Bailout on top of the $ 3.5 @ @ @ @ @ @ @ nation ’ s coast-to-coast soup lines , there has been a development in recent days that tell you all you need to know .
It seems that fire-breathing right-wing Senator Josh Hawley of Missouri has teamed up with honest-to-goodness socialist Bernie Sanders to muscle through another round of helicopter checks to 85 % of US households .
At the rumored $ 600 per person , that will add another $ 150 billion to the $ 300 billion distributed in the April go-round .
But here ’ s the thing .
That comes on @ @ @ @ @ @ @ of $ 850 billion of PPP checks to millions of small businesses for the alleged purpose of job retention , and a total of $ 500 billion for Federal unemployment benefits on top of the $ 600 billion being pumped out by the regular state UI programs .
So just in those three programs we are likely to end up with about $ 2.4 trillion of aid for victims of the government ordered Covid-Lockdowns and economic disruptions .
Then again , between February and November , we calculate that total lost wage and @ @ @ @ @ @ @ US work force came in at about $ 300 billion .
That ’ s right .
Since the Fed is monetizing all the new debt issuance , the politicians in the fiscal departments of the free lunch brigade have seen fit to dispense 8X more compensation payments than actual losses .
As we said , unhinged……and then some !
The Best of David Stockman

Jerome Powell puts you in mind of the boy who killed both of his parents and then threw himself on the mercy of the court on the grounds that he was an orphan!
That’s what JayPo essentially did in his presser yesterday while trying to explain that the most hideous equity market bubble in history is actually not that at all:
“If you look at P/Es they’re historically high, but in a world where the risk-free rate is going to be low for a sustained period, the equity premium, which is really the reward you get for taking equity risk, would be what you’d look at,” Powell said.
“Admittedly P/Es are high but that’s maybe not as relevant in a world where we think the 10-year Treasury is going to be lower than it’s been historically from a return perspective,” Powell said.
SheIn Women’s Se... Buy New $32.99 (as of 08:14 UTC - Details) Right. The Fed has essentially murdered the bond yield. So relatively speaking, grossly inflated stocks are a bargain compared to dead-in-the-water bonds.
Bloomberg even has a chart to prove all this based on the so-called “Fed model”:
The S&P 500’s earnings yield – profit relative to share price – is 2.5 percentage points higher than the yield on 10-year Treasury notes. The comparison, loosely labeled the Fed model, sits well above what the spread was before the burst of the internet bubble, when bonds yielded more than equities by that measure.
Then again, the “earnings yield” is not exactly cash you can take to the bank, unlike a bond coupon as meager as it might be at present. The former is just a computational hope that today’s vastly inflated stock prices relative to earnings stay inflated indefinitely, world without end.
Stocks still looks appealing when compared to bond yields
More fundamentally, where is it written in the annals of sound finance that the purpose of owing bonds is to lose money forever and ever?
For want of doubt, here’s the 10-year bond yield that has been suffocated by the Fed’s massive bond buying spree. Relative to inflation, which the Fed relentlessly strives to promote at 2.00% per annum, there is no real yield left at all. KANGKANG Baby Girl Fir... Buy New $24.99 (as of 08:14 UTC - Details)
So what Powell is apparently saying is that since bonds are for suckers, please have some 40X PE stocks instead.
As is evident from the chart, prior to the year 2000 there tended to be 200-400 basis points of daylight between the inflation rate as measured by the Y/Y change in the 16% trimmed mean CPI (blue line) and the 10-year UST note yield (black line). But after the dotcom crash, money-printing got serious and, as JM Keynes himself might have said, the real yield got euthanized.
As of the most recent reading (October 2020), in fact, the 10-year UST yield at 0.88% was fully 134 basis points lower than the Y/Y inflation rate at 2.22%. At the rate, of course, the purchasing power of your principal would essentially vanish after a few decades.
In truth, even a blithering idiot should be able to see that the current bond yield is a false and dangerous benchmark for the valuation of equities. The fact that JayPo has taken to citing it with alacrity is just another sign that today’s money-printing central bankers have become completely unhinged.
Euthanasia of the Real Bond Yield: 10-Year UST vs. Inflation, 1994-2020
Indeed, the sheer gall of justifying sky-high stock prices based on absurdly low bond yields is underscored by the chart below.
Thanks to more than $30 trillion of central bank balance sheet expansion since the year 2000, the global bond market is completely broken, as attested to by the now all-time record of $18 trillion of global bonds trading at negative nominal yields.
For crying out loud, bonds should never trade at negative nominal yields; it amounts to financial masochism – paying someone to lock-up your own money for an extended period. The only theoretical exception might be in a financial environment of deep and long-lasting deflation.
But in the world as we have known it, where’s the deflation?
Indeed, ever since Nixon crossed the monetary Rubicon in August 1971 and ripped the dollar from its last anchor to real money (gold), the general price level has risen by 540%. Yet these cats at the Fed do not even notice that the global bond market is completely kaput and is priced for an alternate deflationary universe that is the opposite of the real world tracked below.
Even in the most recent period, yields on US treasury paper are stupidly low compared to the current 2.22% Y/Y inflation rate. Not a single point on the treasury yield curve is close to being near or above the inflation rate. Thus, at the end of last week: InsNova Winter A-Line ... Buy New $25.99 (as of 08:14 UTC - Details)
Three-month Treasury bill rates ended at 0.0625%.
Two-year government yields declined three bps to 0.12%:
Five-year T-note yields fell five BPS to 0.37%:
Ten-year Treasury yields dropped seven BPS to 0.90%;
Long bond yields sank 11 BPS to 1.63%;
Benchmark Fannie Mae MBS yields fell six BPS to 1.35%.
Yet it is the above lineup of ridiculously underwater real yields that JayPo avers are proof that there is no stock market bubble. About the only consolation for that kind of tommyrot is that central bankers around the world have apparently embraced the same notion: Namely, that the purpose of the bond market is to separate you from your wealth over time.
In Europe, in fact, even the fiscal basket case nations sport below inflation yields, and decidedly so. As if to underscore the absurdity of Europe’s ECB-suffocated bond market, the yield on the 10-year Spanish bond at the end of last week was, well, 0.00% – even as German, French and Portuguese nominal yields traded at negative levels:
Greek 10-year yields declined three BPS to 0.60%;
Ten-year Portuguese yields sank eight BPS to negative 0.04%;
Italian 10-year yields fell seven BPS to 0.59%;
Spain’s 10-year yields dropped eight BPS to 0.00% ;
; German bund yields sank nine BPS to negative 0.64%;
French yields fell seven BPS to negative 0.38%;
U.K. 10-year gilt yields sank 18 BPS to 0.17%;
Rise in general price level since August 1971:
But rather than notice that he had accomplished JM Keynes’ fondest wish and had indeed euthanized the bond-owning rentiers, JayPo was on a total different track yesterday: He actually saw fit to bray for moooaar inflation.
“It is not going to be easy to have inflation move up, and it’s going to take some time.”
The above is simply ritual incantation. There has never, ever been in recent times any danger of sustained deflation, as if that were a problem, which 40 years of robust deflationary prosperity between 1870 and 1910 long ago disproved in spades. ANATA Flower Girls Wed... Buy New $24.99 (as of 08:14 UTC - Details)
So the only intelligible reason for more inflation than the 2.10% compound increase in the 16% trimmed mean CPI over the last 20-years is that the Fed considers inflation to be a proxy for real GDP growth. That’s the hoary Phillips Curve notion, as also discredited 40-50 years ago, but what’s the point anyway?
Why not simply keep your eye on real GDP and be done with it?
In fact, why not forget about inflation targeting altogether, when you can’t measure it accurately or influence it directly, anyway; and, instead, keep your eye on the financial variables you can influence from the Eccles Building meeting room?
That is, the absurdly negative real bond yields, which are a direct result of massive monetization, and the preposterous stock market PE multiples, which are being driven by nothing more profound than TINA (FMBM): There Is No Alternative (to a Fed-Murdered Bond Market).
As to the those nosebleed PEs, we are not talking just about the sheer insanity of Tesla at 1300X LTM earnings or Amazon at 95X. The latest estimates hot off the presses from the Wall Street sell-side for the broad market represented by the S&P 500 and its $30 trillion of market cap are $93.29 per share for the year ending December 2020; and a gain of, well, +54% to $143.98 per share for the year ending in December 2021.
Rounding to the nearest whole integer, those guesstimates (which are never, ever low) amount to 40X and 26X, respectively. So if JayPo wants to ruminate about the dangers ahead, perhaps he should forget about a few irrelevant decimal points on the inflation rate and focus on the massive stock market bubble starring him right in the face.
Even more to the point, if these fools in the Eccles Building could just shed their inflation targeting myopia for a brief while, they might also note some of the manifold ill-effects that have resulted from their maniacal money-printing handiwork.
For instance, notwithstanding more than 50 million new unemployment claims and the lockdown-driven calamity across the ranks of millions of small businesses, the 0.001% who sit atop the giant private equity funds are having a year to die for.
That is, thanks to the Fed’s crushing of rates on investment grade government and corporate debt, yield parched money managers have made a bee-line for that tad of something slightly more than nothing offered by junk bonds. So far this year (thru November) junk bond issuance has reached nearly $400 billion, up by more than 50% from the like period of 2019.
But a big share of the proceeds have gone into record amounts of leveraged recaps. Private equity shops have taking the opportunity to further encumber their already debt-laden portfolio companies with even more debt for the purpose of paying themselves a rich harvest of cash dividends.
The amount of issued debt tied to such payouts grew to more than $29 billion this year, up more than 25% from 2019, according to S&P Global Market Intelligence. By comparison, during the last recession, in 2008-09, such activity nearly dried up. MANER Women’s Se... Buy New $37.99 (as of 08:14 UTC - Details)
Nor is that the half of it. If you look at total US dollar corporate debt, 2020 is turning out to be an all-time barn burner. According to the latest estimates –
Investment grade issuance will be up by 53% to an all-time record of $2.02 trillion ;
; High yield issuance will rise by nearly 30% to $556 billion.
Yet there is no doubt as to where the overwhelming share of proceeds have ended up. To wit, they have been cycled right back to Wall Street to fund financial engineering projects including stock buybacks and M&A deals.
As to the former, the chart below says it all. Since 2009, nearly $15 trillion of new money has been cycled into the stock market, but virtually 100% of that has come from corporations themselves, which either borrowed new money or drew down cash assets to repurchase their own stocks.
And yet the geniuses in the Eccles Building repeated again yesterday that they will continue to commit $120 billion per month of what amounts to financial fraud until the so-called full employment economy – which is actually being stymied by Fed-fostered financial engineering – is finally attained.
Rarely have even brain-addled house-cats so foolishly chased their own tails.
Then there is the matter of runaway financialization. As a case in point, household net worth as measured by the Fed’s flow-of-funds accounts jumped to a record $123.5 trillion in Q3. At 584% of GDP it now towers over previous cycle peaks 493% during Q1 2007, 447% during Q1 2000 and well less than 350% of GDP prior to 1987.
Yet has JayPo ever deigned to inquire as to why the value of financial assets have become so drastically decoupled from main street GDP? Or whether Fed-fostered ultra-low bond yields and nosebleed stock valuations have anything to do with it – to say nothing as to whether such unprecedented disconnects are stable and sustainable. Cilucu Flower Girls Dr... Buy New $9.99 (as of 08:14 UTC - Details)
He has not. Nor has he apparently ever wondered about the recent Deloitte study, revealing that during its 15 years of existence, the U.S. shale industry managed to write off a staggering $450 billion in invested capital while generating $300 billion in net negative cash flow. Further, the sector has recorded more than 190 bankruptcies since 2010, the highest by any sector in the United States.
That is to say, might it be that radical financial repression is the mother’s milk of malinvestment? And that one reason the trend rate of economic growth keeps falling despite the Fed’s endless bouts of “stimulus” is that capital is being drastically and systematically mispriced, mis-allocated and wasted?
In that vein there is the fact that back in the 1990s – when real bond yields were still economically rational – there were no such thing as exchange trade funds (ETFs). That’s because in an honest free market they wouldn’t even exist.
If genuine investors and stock pickers wanted balanced exposure to an industry versus a single company, the fact is they could compose their own composites at virtually no expense given today’s low cost research, data analysis and trading tools. As it is, the only real purpose of ETFs is to facilitate speculation by home-gamers and robo-traders.
Not surprisingly, therefore, exchange traded funds attracted record inflows of $121 billion in November, a jump of 14.5% on the previous record month. That huge monthly haul brought net global inflows in the first 11 months of this year to $659 billion, 15.4% more than the $571 billion gathered over the same period in 2019.
Indeed, the chart below is the smoking gun. In broad strokes, traditional stock picking mutual funds at least resemble “investors”, while ETFs are almost entirely the domain of traders and speculators. Yet when capital markets become dominated by speculation per the flow of funds depicted below, the actual efficiency and growth capacity of the main street economy is progressively eroded and impaired.
Needless to say, given the mayhem and malinvestment the central banks have unleashed on Wall Street, it is not surprising that the financially uneducated politicians of Washington might have become unhinged as well.
But as the Congress inches toward another $900 billion Everything Bailout on top of the $3.5 trillion it has already heaved at the nation’s coast-to-coast soup lines, there has been a development in recent days that tell you all you need to know.
It seems that fire-breathing right-wing Senator Josh Hawley of Missouri has teamed up with honest-to-goodness socialist Bernie Sanders to muscle through another round of helicopter checks to 85% of US households. At the rumored $600 per person, that will add another $150 billion to the $300 billion distributed in the April go-round.
But here’s the thing. That comes on top of what will be a total of $850 billion of PPP checks to millions of small businesses for the alleged purpose of job retention, and a total of $500 billion for Federal unemployment benefits on top of the $600 billion being pumped out by the regular state UI programs.
So just in those three programs we are likely to end up with about $2.4 trillion of aid for victims of the government ordered Covid-Lockdowns and economic disruptions.
Then again, between February and November, we calculate that total lost wage and salary income of the entire 160 million US work force came in at about $300 billion.
That’s right. Since the Fed is monetizing all the new debt issuance, the politicians in the fiscal departments of the free lunch brigade have seen fit to dispense 8X more compensation payments than actual losses.
As we said, unhinged……and then some!
PEAK TRUMP, IMPENDING CRISES, ESSENTIAL INFO & ACTION
Reprinted with permission from David Stockman’s Contra Corner.
The Best of David Stockman


lewrockwell--2020-12-19--A ‘Case’ You Probably Didn’t Read About

A ‘Case’ You Probably Didn’t Read About

A friend in Georgia called to let me know a junior high school student who attends the same school as her 13-year-old son tried to kill herself the other day .
She was found hanging from a cord she ’ d wound over the shower head in her parents ’ home .
She was despondent over being denied her life – and so decided to take it .
The good news is she was discovered in time and is still alive .
The bad news is there are many such “ cases ” – including the premature deaths-by-neglect of elderly @ @ @ @ @ @ @ ‘ Rona but lost the will to live – and stopped eating or just faded away from depressive ennui resulting from being “ locked down ” in nursing homes for the past six-plus-months , by decree of the Gesundheitsfuhrers .
Romwe Women ’ s Se ... Buy New $ 28.99 Mammals need the warmth and companionship of other mammals .
Take that away – “ lock them down ” - and you sentence them to a slow but certain death , beginning with their spirit and ending with the mortification of their bodies @ @ @ @ @ @ @ , a temporary and necessary sacrifice .
It is an outrageous , criminal assault on the physical and psychological well-being of hundreds of millions of people ( in this country alone ) in the name of a fatuous hyper-precautionary Sickness Cult that regards a slight risk of a bad cold to most as finger-wagging justification – and you ’ d better not object to any of it .
It has worked – so far – because most people are kind and generous and no one wants to be accused of harming other people @ @ @ @ @ @ @ But it begins to wear thin , as the enjoining and finger-wagging waxes even as the evidence mounts that the damage being done is sickeningly disproportionate to the threat asserted .
Noctflos Burgundy Long ... Buy New $ 35.99 It is reasonable to alert people who come to eat at a restaurant that certain dishes may contain peanuts so that those who have allergies to peanuts can avoid those dishes .
It is ridiculous to insist that all restaurants establish Peanut Free Zones for the sake of those with peanut allergies .
It @ @ @ @ @ @ @ gym has been open for the past four months and almost no one wears the Holy Rag as the gym is a secular joint ; people come there to exercise , not perform religious rituals .
Notwithstanding this heresy , no one is sick .
Probably in no small measure because they are exercising – and breathing freely – both tending to improve one ’ s health .
But gyms around the country are “ locked down ” – denying more people than the number of people who ’ ve allegedly died of @ @ @ @ @ @ @ with it , but actually because of old age compounded by poor health ) access to the means by which to maintain and improve their physical as well as psychological health .
The Best of Eric Peters

A friend in Georgia called to let me know a junior high school student who attends the same school as her 13-year-old son tried to kill herself the other day. She was found hanging from a cord she’d wound over the shower head in her parents’ home. She was despondent over being denied her life – and so decided to take it.
The good news is she was discovered in time and is still alive.
The bad news is there are many such “cases” – including the premature deaths-by-neglect of elderly people who haven’t got the ‘Rona but lost the will to live – and stopped eating or just faded away from depressive ennui resulting from being “locked down” in nursing homes for the past six-plus-months, by decree of the Gesundheitsfuhrers.
Romwe Women’s Se... Buy New $28.99 (as of 08:17 UTC - Details) Mammals need the warmth and companionship of other mammals. Take that away – “lock them down”- and you sentence them to a slow but certain death, beginning with their spirit and ending with the mortification of their bodies.
This is not a minor inconvenience, a temporary and necessary sacrifice. It is an outrageous, criminal assault on the physical and psychological well-being of hundreds of millions of people (in this country alone) in the name of a fatuous hyper-precautionary Sickness Cult that regards a slight risk of a bad cold to most as finger-wagging justification – and you’d better not object to any of it.
It has worked – so far – because most people are kind and generous and no one wants to be accused of harming other people, let alone actually harming them. But it begins to wear thin, as the enjoining and finger-wagging waxes even as the evidence mounts that the damage being done is sickeningly disproportionate to the threat asserted.
Questioning is beginning.
Noctflos Burgundy Long... Buy New $35.99 (as of 08:17 UTC - Details) It is reasonable to alert people who come to eat at a restaurant that certain dishes may contain peanuts so that those who have allergies to peanuts can avoid those dishes. It is ridiculous to insist that all restaurants establish Peanut Free Zones for the sake of those with peanut allergies.
It is tyrannical to decree it.
My gym has been open for the past four months and almost no one wears the Holy Rag as the gym is a secular joint; people come there to exercise, not perform religious rituals. Notwithstanding this heresy, no one is sick. Probably in no small measure because they are exercising – and breathing freely – both tending to improve one’s health.
But gyms around the country are “locked down” – denying more people than the number of people who’ve allegedly died of the ‘Rona (as opposed to with it, but actually because of old age compounded by poor health) access to the means by which to maintain and improve their physical as well as psychological health.
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The Best of Eric Peters


lewrockwell--2020-12-19--The Disappearing Retirement Fund

The Disappearing Retirement Fund

As a general principle , I ’ ve always tended to avoid entrusting others with my money .
I ’ ve avoided funds , as they are often based upon investments that are peaking or close to peaking .
I ’ ve avoided pension funds , as they ’ re often structured in a similar manner .
And whenever by law I ’ ve been required to be invested in such funds , they ’ ve rarely been successful over the long term .
In the end , I would invariably have made more money by pursuing those investments that @ @ @ @ @ @ @ were unpopular ( and therefore underpriced ) .
As dubious as I tend to be of conventional investment schemes ( and those who broker them ) , I am doubly dubious of any government-run scheme .
Governments , historically , have proved to be poor money managers , and politicians tend to place more value on big promises that garner votes than on delivering on those promises .
kenoce Womens Dresses ... Buy New $ 27.99 And so , I ’ m predictably biased as to the likelihood of any form of fund @ @ @ @ @ @ @ .
Even if it ’ s structured well , which it may well not be , governments , if they have the power to do so , will tap into the fund , draining it of the intended recipient ’ s contributions , leaving the fund exposed , should a crisis occur .
And , periodically , crises do occur .
Presently , the First World is facing an economic crisis of unprecedented proportions .
As someone who advises on internationalisation ( the practice of spreading one ’ s self both physically and @ @ @ @ @ @ @ avoid being victimised by any one jurisdiction ) , I ’ m regularly asked what the optimum level of diversification might be for an individual in a given situation .
Whilst many of these individuals can unquestionably benefit from such diversification , there are quite a large number of people who are in the age sixty-and-over category who state that they ’ re hoping to get by solely on their Social Security and their pension .
( If the investor is an American citizen , this often means a 401 ( k ) @ @ @ @ @ @ @ individuals , I ’ m afraid it ’ s difficult to provide encouraging advice , as their retirement is rooted in what I consider to be dead-end investments that will diminish drastically , or disappear , long before the individual reaches his own demise .
The Social Security fund of virtually every country that has one is woefully underfunded .
Typically , these funds have relied on the next generation ’ s contributions to pay for the benefits to those presently retired or retiring .
PrettyGuide Women Sexy ... Buy New $ 23.19 @ @ @ @ @ @ @ when Social Security was introduced , was that the population would always increase .
During the baby-boomer years , benefits were ramped up dramatically , as there were so many younger workers per retiree .
But now , that relationship has reversed .
The baby-boom generation lasted for 18 years , so each year , for 18 years , the ratio of working people will diminish against those who have retired .
Ergo , each year , those working will need to be taxed more heavily if the system is to continue .
@ @ @ @ @ @ @ reach the tipping point and the concept itself is no longer viable .
After that point , benefits will be reduced and , possibly , eliminated altogether .
When retirees first hear this , their reaction is usually , “ But that ’ s not fair .
I paid in , all my life .
They can ’ t do this to me.
” Unfortunately , it is not a question of “ fair ” .
It ’ s a question of arithmetic .
The promised benefits will decline .
As a result @ @ @ @ @ @ @ Security to sustain them in their retirement will find themselves short .
Similarly , pensions are at risk .
Most pensions are invested , to a greater or lesser degree , in the stock market .
Most funds pride themselves on being “ diversified ” , by which they mean that they are invested in a variety of stocks .
Unfortunately , when a stock market crashes , good stocks often head south along with failing stocks , as brokers seek to save their skin by unloading portfolios .
( This does not @ @ @ @ @ @ @ not experience a recovery in time , but few will ride out a crash unaffected . )
At present , the stock market is being propped up artificially and is overdue for a crash .
Although it would be impossible to predict a date , a crash , if it occurs , would have a major and permanent effect on a pension scheme .
InsNova Plus Size Dark ... Buy New $ 28.99 As if these threats to planned retirement were not enough , there ’ s a further threat .
As previously @ @ @ @ @ @ @ the ropes , and historically , when governments find themselves on the verge of insolvency , they invariably react the same way : go back to the cash cow for a final milking .
Each of the jurisdictions that is in trouble at present , has , in its playbook , the same collection of milking techniques .
One of those will have a major impact on pensions : the requirement that pension plans must contain a percentage of government Treasuries .
Political leaders have already announced that there ’ s uncertainty in @ @ @ @ @ @ @ at risk .
Therefore , whatever else happens to their plans , it ’ s essential that a portion of them be guaranteed against failure .
Therefore , legislation will be created to ensure that a percentage be in Treasuries , which are “ guaranteed ” .
Sounds good .
And people will be grateful .
Unfortunately , the body that is providing the guarantee is the same body that has created the economic crisis .
And if the government is insolvent , the “ guarantee ” will become just one more empty @ @ @ @ @ @ @ that employers have a duty to protect workers invested in their 401 ( k ) plans from mutual funds that perform poorly or are too expensive .
By passing this ruling , the US government has the power to seize private pension funds “ to protect pensioners ” .
It also has the authority to dictate how funds may be invested .
The way is now paved for the requirement that 401 ( k ) s be invested heavily in US Treasuries .
( Some are already voluntarily invested , as much as @ @ @ @ @ @ @ those who hope to fund their retirements primarily with Social Security and 401 ( k ) s , may well find themselves virtually without retirement income .
The question is whether this means “ Game Over ” for millions of Americans ( and since similar developments are taking place in many other countries in the world , millions more in the EU , Canada , etc . )
TRENDINAO Women Dress ... Buy New $ 8.68 And , yes , it does mean “ Game Over ” for many , unless they choose @ @ @ @ @ @ @ to collapse like an old mine shaft , trapping its occupants .
Still , there remains a brief window of opportunity , and that opportunity is to pay the penalty for exiting the system and internationalising whatever level of wealth can be salvaged .
Ideally , this means physically moving to a jurisdiction where such conditions do not exist , but a more limited escape may be created by removing as much money as possible from the retirement fund , moving it to a less risky jurisdiction and converting it to those forms @ @ @ @ @ @ @ to be targeted by rapacious governments and corrupt banks .
Accepting the realization that the piggy bank will be less full is a painful one but is far less painful than to face the day when the piggy bank is all but empty .

As a general principle, I’ve always tended to avoid entrusting others with my money. I’ve avoided funds, as they are often based upon investments that are peaking or close to peaking. I’ve avoided pension funds, as they’re often structured in a similar manner.
And whenever by law I’ve been required to be invested in such funds, they’ve rarely been successful over the long term. In the end, I would invariably have made more money by pursuing those investments that had great promise but at the time were unpopular (and therefore underpriced).
As dubious as I tend to be of conventional investment schemes (and those who broker them), I am doubly dubious of any government-run scheme. Governments, historically, have proved to be poor money managers, and politicians tend to place more value on big promises that garner votes than on delivering on those promises. kenoce Womens Dresses ... Buy New $27.99 (as of 08:17 UTC - Details)
And so, I’m predictably biased as to the likelihood of any form of fund that any government may be involved in. Even if it’s structured well, which it may well not be, governments, if they have the power to do so, will tap into the fund, draining it of the intended recipient’s contributions, leaving the fund exposed, should a crisis occur.
And, periodically, crises do occur. Presently, the First World is facing an economic crisis of unprecedented proportions.
As someone who advises on internationalisation (the practice of spreading one’s self both physically and economically over several jurisdictions in order to avoid being victimised by any one jurisdiction), I’m regularly asked what the optimum level of diversification might be for an individual in a given situation.
Whilst many of these individuals can unquestionably benefit from such diversification, there are quite a large number of people who are in the age sixty-and-over category who state that they’re hoping to get by solely on their Social Security and their pension. (If the investor is an American citizen, this often means a 401(k) or similar fund.)
For these individuals, I’m afraid it’s difficult to provide encouraging advice, as their retirement is rooted in what I consider to be dead-end investments that will diminish drastically, or disappear, long before the individual reaches his own demise.
Social Security
The Social Security fund of virtually every country that has one is woefully underfunded. Typically, these funds have relied on the next generation’s contributions to pay for the benefits to those presently retired or retiring.
PrettyGuide Women Sexy... Buy New $23.19 (as of 08:17 UTC - Details) Unfortunately, the original premise, back when Social Security was introduced, was that the population would always increase. During the baby-boomer years, benefits were ramped up dramatically, as there were so many younger workers per retiree.
But now, that relationship has reversed. The baby-boom generation lasted for 18 years, so each year, for 18 years, the ratio of working people will diminish against those who have retired.
Ergo, each year, those working will need to be taxed more heavily if the system is to continue. Unfortunately, at some point, we reach the tipping point and the concept itself is no longer viable. After that point, benefits will be reduced and, possibly, eliminated altogether.
When retirees first hear this, their reaction is usually, “But that’s not fair. I paid in, all my life. They can’t do this to me.” Unfortunately, it is not a question of “fair”. It’s a question of arithmetic. The promised benefits will decline. As a result, those who are counting on Social Security to sustain them in their retirement will find themselves short.
Pension
Similarly, pensions are at risk. Most pensions are invested, to a greater or lesser degree, in the stock market. Most funds pride themselves on being “diversified”, by which they mean that they are invested in a variety of stocks.
Unfortunately, when a stock market crashes, good stocks often head south along with failing stocks, as brokers seek to save their skin by unloading portfolios. (This does not mean that some potentially solid stocks will not experience a recovery in time, but few will ride out a crash unaffected.)
At present, the stock market is being propped up artificially and is overdue for a crash. Although it would be impossible to predict a date, a crash, if it occurs, would have a major and permanent effect on a pension scheme.
But, wait… there’s more.
InsNova Plus Size Dark... Buy New $28.99 (as of 08:17 UTC - Details) As if these threats to planned retirement were not enough, there’s a further threat. As previously stated, many governments are financially on the ropes, and historically, when governments find themselves on the verge of insolvency, they invariably react the same way: go back to the cash cow for a final milking. Each of the jurisdictions that is in trouble at present, has, in its playbook, the same collection of milking techniques.
One of those will have a major impact on pensions: the requirement that pension plans must contain a percentage of government Treasuries.
Political leaders have already announced that there’s uncertainty in the economic system and pensioners may be at risk. Therefore, whatever else happens to their plans, it’s essential that a portion of them be guaranteed against failure. Therefore, legislation will be created to ensure that a percentage be in Treasuries, which are “guaranteed”.
Sounds good. And people will be grateful. Unfortunately, the body that is providing the guarantee is the same body that has created the economic crisis. And if the government is insolvent, the “guarantee” will become just one more empty promise.
The US Supreme Court ruled that employers have a duty to protect workers invested in their 401(k) plans from mutual funds that perform poorly or are too expensive. By passing this ruling, the US government has the power to seize private pension funds “to protect pensioners”. It also has the authority to dictate how funds may be invested.
The way is now paved for the requirement that 401(k)s be invested heavily in US Treasuries. (Some are already voluntarily invested, as much as 80%.)
Game Over
And so, those who hope to fund their retirements primarily with Social Security and 401(k)s, may well find themselves virtually without retirement income.
The question is whether this means “Game Over” for millions of Americans (and since similar developments are taking place in many other countries in the world, millions more in the EU, Canada, etc.) TRENDINAO Women Dress ... Buy New $8.68 (as of 08:17 UTC - Details)
And, yes, it does mean “Game Over” for many, unless they choose to exit a system that is set to collapse like an old mine shaft, trapping its occupants.
Still, there remains a brief window of opportunity, and that opportunity is to pay the penalty for exiting the system and internationalising whatever level of wealth can be salvaged.
Ideally, this means physically moving to a jurisdiction where such conditions do not exist, but a more limited escape may be created by removing as much money as possible from the retirement fund, moving it to a less risky jurisdiction and converting it to those forms of wealth storage that are least likely to be targeted by rapacious governments and corrupt banks.
Accepting the realization that the piggy bank will be less full is a painful one but is far less painful than to face the day when the piggy bank is all but empty.
Reprinted with permission from International Man.


lewrockwell--2020-12-19--Hungary Passes Constitutional Amendment Protecting Child’s Right To Identify as its Birth Gender

Hungary has passed a constitutional amendment affirming the right of children to identify with their birth gender and defining marriage as between a man and a woman .
The amendment was passed by a vote margin of 134-45 and “ now protects a child ’ s right to identify with their gender at birth and an upbringing based on Hungary ’ s constitutional identity and Christian culture.
” The legislation was passed in the name of protecting children from mental or biological intervention by other parties that violates their right to self-identity in line with their gender at birth .
@ @ @ @ @ @ @ $ 24.99 The amendment also re-asserts the definition of marriage as “ based on marriage and the parent-child relation .
The mother is a woman , the father a man.
” “ Hungarian law already recognized marriage as a stable union between one man and one woman , but Tuesday ’ s amendment stipulates that only people in such a union are allowed to adopt children .
Single people can only adopt children with special permission from the minister in charge of family affairs , ” reports Breitbart .
Given that it stands @ @ @ @ @ @ @ identity politics that has come to dominate other western countries , the amendment elicited fury from a plethora of ‘ woke ’ activists .
“ This is a dark day for Hungary ’ s LGBTQ community and a dark day for human rights , ” said David Vig , director of Amnesty Hungary , labeling the amendment “ homophobic ” and “ transphobic .
”

Hungary has passed a constitutional amendment affirming the right of children to identify with their birth gender and defining marriage as between a man and a woman.
The amendment was passed by a vote margin of 134-45 and “now protects a child’s right to identify with their gender at birth and an upbringing based on Hungary’s constitutional identity and Christian culture.”
The legislation was passed in the name of protecting children from mental or biological intervention by other parties that violates their right to self-identity in line with their gender at birth.
ANATA Little Girl Sequ... Buy New $24.99 (as of 08:18 UTC - Details) The amendment also re-asserts the definition of marriage as “based on marriage and the parent-child relation. The mother is a woman, the father a man.”
“Hungarian law already recognized marriage as a stable union between one man and one woman, but Tuesday’s amendment stipulates that only people in such a union are allowed to adopt children. Single people can only adopt children with special permission from the minister in charge of family affairs,” reports Breitbart.
Given that it stands out boldly from the current insanity of identity politics that has come to dominate other western countries, the amendment elicited fury from a plethora of ‘woke’ activists.
“This is a dark day for Hungary’s LGBTQ community and a dark day for human rights,” said David Vig, director of Amnesty Hungary, labeling the amendment “homophobic” and “transphobic.”
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