Showing posts with label Power Elite. Show all posts
Showing posts with label Power Elite. Show all posts

18 July 2023

Stocks and Precious Metals Charts - Ship of Fools - Lingering at Another Minsky Moment

 

“The disposition to admire, and almost to worship, the rich and the powerful, and to despise, or, at least to neglect, persons of poor and mean condition is the great and most universal cause of the corruption of our moral sentiments.”

Adam Smith

"I write to you from a disgraced profession. Economic theory, as widely taught since the 1980s, failed miserably to understand the forces behind the financial crisis.  Concepts including 'rational expectations,' 'market discipline,' and the 'efficient markets hypothesis' led economists to argue that speculation would stabilize prices, that sellers would act to protect their reputations, that caveat emptor could be relied on, and that widespread fraud therefore could not occur.  Not all economists believed this – but most did.

Thus the study of financial fraud received little attention.   Practically no research institutes exist; collaboration between economists and criminologists is rare; in the leading departments there are few specialists and very few students.  Economists have soft-pedaled the role of fraud in every crisis they examined, including the Savings & Loan debacle, the Russian transition, the Asian meltdown and the dot.com bubble.

They continue to do so now.  At a conference sponsored by the Levy Economics Institute in New York on April 17, the closest a former Under Secretary of the Treasury, Peter Fisher, got to this question was to use the word 'naughtiness.'  This was on the day that the SEC charged Goldman Sachs with fraud."

James K. Galbraith, Why the 'Experts' Failed to See How Financial Fraud Collapsed the Economy, May 16, 2010

"There is a kind of chronic complacency that has been rotting American liberalism for years, a hubris that tells Democrats they need do nothing different, they need deliver nothing really to anyone – except their friends on the Google jet and those nice people at Goldman.

The rest of us are treated as though we have nowhere else to go and no role to play except to vote enthusiastically on the grounds that these Democrats are the 'last thing standing' between us and the end of the world.   It is a liberalism of the rich, it has failed the middle class, and now it has failed on its own terms of electability.   Enough with these comfortable Democrats and their cozy Washington system.  Enough with Clintonism and its prideful air of professional-class virtue.

I think what we need in order to restore some kind of sense of fairness is not the final triumph of markets over the body and soul of humanity, but something that confronts markets, and that refuses to think of itself as a brand."

Thomas Frank, 2016

 

Stocks managed to shake off some early gloom and rallied in the afternoon.

The Dollar chopped sideways, finishing largely unchanged.

Gold and silver rallied sharply.

The VIX fell slightly.

Earnings continue rolling in, for what they are worth.

Did I mention that there will be a stock option expiration on Friday.

Have a pleasant evening. 



23 January 2023

Stocks and Precious Metals Charts - Audacious Oligarchy - The Power Elite

 

"The economy - once a great scatter of small productive units in autonomous balance, has become dominated by two or three hundred giant corporations, administratively and politically interrelated.   The political order, once a decentralized set of several dozen states with a weak spinal cord, has become a centralized executive establishment which has taken up into itself many powers previously scattered.   The military order, once a slim establishment in a context of distrust fed by state militia, has become the largest and most expensive feature of government.

People with advantages are loath to believe that they just happen to be people with advantages. They come readily to define themselves as inherently worthy of what they possess; they come to believe themselves 'naturally' elite, and, in fact, to imagine their possessions and their privileges as natural extensions of their own elite selves.

The idea of the elite as composed of men and women having a finer moral character is an ideology of the elite.

The American elite does not have any real image of peace — other than as an uneasy interlude existing precariously by virtue of the balance of mutual fright.  The only seriously accepted plan for peace is the fully loaded pistol.  In short, war or a high state of war-preparedness is felt to be the normal and seemingly permanent condition of the United States.

For the first time in American history, men in authority are talking about an 'emergency' without a foreseeable end.  Such men as these are crackpot realists: in the name of realism they have constructed a paranoid reality all their own.  America - a conservative country without any conservative ideology - appears now before the world a naked and arbitrary power, as, in the name of realism, its men of decision enforce their often crackpot definitions upon world reality.  

The second-rate mind is in command of the ponderously spoken platitude.  In the liberal rhetoric, vagueness, and in the conservative mood, irrationality, are raised to principle.  Public relations and the official secret, the trivializing campaign and the terrible fact clumsily accomplished, are replacing the reasoned debate of political ideas in the privately incorporated economy, the military ascendancy, and the political vacuum of modern America.

These men have replaced mind with platitude, and the dogmas by which they are legitimated are so widely accepted that no counterbalance of mind prevails against them. They have replaced the responsible interpretation of events with the disguise of events by a maze of public relations.

What the main drift of the twentieth century has revealed is that the economy has become concentrated and incorporated in the great hierarchies, the military has become enlarged and decisive to the shape of the entire economic structure; and moreover the economic and the military have become structurally and deeply interrelated, as the economy has become a seemingly permanent war economy; and military men and policies have increasingly penetrated the corporate economy.

C. Wright Mills, The Power Elite, 1956

Stocks rallied today, for no particular reason.

The chip sector led stocks higher, based on upgrades from Barclay.

Wash - rinse - repeat.   

Leave your shame at the curb.

Gold and silver were hit hard from the early trading, but managed to take much of it back with gold even finishing in the green.

Looks like a gut check ahead of the Comex precious metals option expiry on the 26th.

 Different month, same crooked scams.

The US Dollar did nothing.

The VIX did nothing.

We may see some market moving data this week.

FOMC and Non-Farm Payrolls for January coming next week.

And the band played on.

Have a pleasant evening.



24 October 2022

Stocks and Precious Metals Charts - Vanities - The Decline of the American Republic

 

“It’s no accident that the size of the financial sector today as a percentage of GDP is at levels equaled only on the eve of the Great Depression.  Like the decade leading up to the financial crisis of 2008, the Roaring Twenties were marked by not only financial boom and technological wonder, but also massive income inequality.  Worker wages stagnated and those of the upper classes grew, bolstered in large part by stock prices.  Another similarity was a rise in debt, both public and private, which was used to mask the declining spending power of the lower and middle classes and its dampening effect on GDP growth."

Rana Foroohar, Makers and Takers, 17 May 2016


"Financial collapses that are not due to natural disasters or war are always founded in fraud. And if you dig a bit, you will find that there are individuals behind it.   It is not some random madness, but a weakness of character, a perennial gullibility, a feeling that 'everyone is doing it,' that seems to be exploited periodically by heartless individuals.  In certain periods of history they become more socially acceptable.  When things seem to come mysteriously rushed out of nowhere with little factual basis behind them, and don't make sense, then they probably don't. This holds true for the Iraq war, and the bank bailouts, MF Global, and the financial and commodity market scandals that are yet to be revealed."

Jesse, The Myth of Alan Greenspan, 10 May 2012


“Ronald Reagan and Alan Greenspan pulled off one of the greatest frauds ever perpetrated against the American people in the history of this great nation, and the underlying scam is still alive and well, more than a quarter century later.  It represents the very foundation upon which the economic malpractice that led the nation to the great economic collapse of 2008 was built.   They came up with the perfect strategy for the redistribution of income and wealth from the working class to the rich."

Allen Smith, The Greatest Fraud Ever, 14 April 2010


"Hillary's record on this subject [financial reform], and her service to Big Money, and the role that she and Bill played in gutting the progressive wing of the Democratic Party while making themselves rich on their speeches to the Big Money crowd, speaks for itself.  To expect anything different from her if she gets in office will be like the hope and change from Obama which didn't make it past his third week in office, when he brought back Clinton's financial policy team."

Jesse, Wall Street Reform and Fiscal Policy, 6 February 2016


"There is now abundant evidence of widespread, unpunished criminal behavior in the financial sector.  The evidence is now overwhelming that over the last thirty years, the U.S. financial sector has become a rogue industry.   As its wealth and power grew, it subverted America’s political system, including both political parties, government, and academic institutions in order to free itself from regulation.  The rise of predatory finance is both a cause and a symptom of an even broader, and even more disturbing, change in America’s economy and political system.   The financial sector is the core of a new oligarchy that has risen to power over the past thirty years, and that has profoundly changed American life."

Charles Ferguson, Predator Nation


"The Clintons, along with a large group of Republican Congressmen and compliant Democrats, put a 'for sale' sign not only on the Lincoln bedroom, but on the rest of the White House and the Capitol.  They certainly did not do it alone, as it was a bipartisan effort to overturn the protections established in the darker days of the Great Depression.  And it became the thing to do in Washington and New York, to partner up with big money to take the public for a wild ride.   The Clintons turned the Democrats into the Republicans, while the Republicans were turning into a mob."

Jesse, Role the Clintons Played in Enabling the 2008 Financial Crisis, 13 February 2016


"Less than two months after stepping down from the Fed, Yellen was raking in huge fees from the mega banks on Wall Street, the very banks that are supervised by the Fed.  When Yellen was nominated by President Joe Biden for the post of Treasury Secretary, she had to file a new financial disclosure form.  That form revealed that she had received more than $7 million in speaking fees, the bulk of which came from Wall Street mega banks and trading houses, after stepping down from the Fed."

Pam and Russ Martens, The Fed's Trading Scandal Broadens,, 24 October 2022


"And so these reformers, throwing their constituency under the bus, have become the facilitators of the deep capture of our regulatory and political system in a bipartisan effort to get rich.  Most are just people, being carried along by an unsustainable tide of cynicism and personal greed that has imprinted itself on the minds of our privileged elites.

They choose to commit criminal acts through a wonderful power of rationalization, in a downward spiral of moral decline.  This perverse mindset, which used to be a denizen of rural enclaves and big city bosses is becoming pervasive in Washington and New York."

Jesse, Wall Street's Double Agent, 9 July 2015

"It's not just America.  The whole world has sort of turned muddy.  By and large, the world is increasingly run by ignoramuses, wackos and psychotics.   This was long before Donald Trump.  But we've got more crazy people running the world now than ever.

I think it's the one reason a guy like Donald Trump ran. They understood where he was coming from. That Trump is just a blowhard. They laughed at him. They knew Trump doesn't know what he's talking about. But Trump wasn't the same old big smile and a lot of good words. 

The Democrats have been going around saying, 'We're for the people, we're for the little guy.' And all they do is run to Wall Street for money.  And the one guy that didn't, Sanders, was sabotaged by the Democratic National Committee.  If I were the Democrats I would stop worrying about Donald Trump and start talking to the American people about jobs and health care. "

Seymour Hersh, 23 July 2019


"We are coming apart as a society, and inequality is right at the core of that.  When the 90 percent are getting worse off and they’re trying to figure out what happened, they’re not people like me who get to spend four or five hours a day studying these things and then writing about them — they’re people who have to make a living and get through life.  And they’re going to be swayed by demagogues and filled with fear about the other, rather than bringing us together."

David Cay Johnston, Inequality's Looming Disaster, May 2014


“Each day we are becoming a creature of splendid glory, or one of unthinkable horror.”

C. S. Lewis

 

Stocks managed to pull themselves together and extend their rally higher, up to the key overhead resistance levels they are visited before.

Gold and silver fell a bit.

The Dollar chopped sideways.

VIX remain essentially unchanged. 

What time is the next wash and rinse?

Risk levels remain elevated, and the underlying fundamentals of the equity markets are shaky.

Stagflation, that most improbable of natural outcomes, spawned by a twisted monetary and fiscal policy has come to pass.  

How was it forecast here some years ago, when most were arguing for the inevitability of deflation, or the abandonment of any rational perspective on monetary policy?

You have hardened your hearts, and surrendered yourself to lies.

How can you hope to understand anything?

Have a pleasant evening.


28 August 2018

Donna Brazile Says that Even the Democratic Party Reforms Are Without Substance


And here we thought that only their 'we feel your pain' policies are empty platitudes, without substance, as they continually calibrated back to their corporate donors who keep stuffing the political establishment's pockets of both parties, who intend to keep 'setting the menus' for the voters' choices.

Thank you for clarifying the priorities of the Democratic Party establishment as it reforms itself, Donna.

This in the video below was my take as well.  I was incredulous at the reveal.  God bless the inexhaustible arrogance of the power elite.

Same as it ever was.




30 July 2018

Economic Theology - Obama and the Rise of the New International Elite


"Do we need weapons to fight wars?  Or do we need wars to create markets for weapons? ...In the privatization of everything, these companies have made the Indian economy one of the fastest growing in the world.   There’s only one problem – they exploit everything and everyone in its wake.  It’s a dream come true for businessmen – to be able to sell what they don’t have to buy.”

Arundhati Roy, The Ghost of Capitalism

Thurman Arnold wrote in The Folklore of Capitalism that  'Economic theology is the opiate of the middle class...Law, morals, and economics are always arrayed against new groups which are struggling to secure a place in an institutional hierarchy of prestige."

Arnold goes on to say in an essay in reply to a review of his book that "Philosophies, legal, ethical, and economic appear very different from the outside looking in than from the inside looking out. The inside point of view assumes that if reasoning men get their heads together, they can make the concept of a good life a workable tool.  From the outside it is obvious that reasoning men never agree. Their conflicts only create more literature."

What Arnold is going after is the very notion of the meritocracy, and the mythology of philosopher-kings. In the abstract reality is not captured, and therfore cannot be made workable.  There is no such thing as a perfect system, one that will solve all problems if you can only tweak it here and there.

A workable system requires practical and talented people, not necessarily the most credentialed and pedigreed, that are working with a genuine dedication  and focus to a set of first principles and priorities

It is a project doomed to failure to allow process to stand over priority,  the realization of the perfectly designed system for its own sake, because such a system does not exist, and is almost always a canard to promote some powerful interests for their own sake.

He means ideologically based systems like 'supply side economics.'.  It may have failed, miserably and spectacularly at every turn, but it still sounds pretty good on paper.  And so here we go again.

Or globalization, free markets and free trade—  these are all good examples of a misbegotten first principles,  tenets of economic theology that form the foundation of a system designed for process, rather than results.

If you wish to understand Obama, Clinton and the modern Democratic and Republican parties, which are both parties representing different segments of the affluent and the powerful,  I urge you to spend the time to watch the latter half of the second video.  The Democrats may speak the cause of the dispossessed and the weak, but tend to treat and view them not as constituents but as charges, with the kind of condescension and utility of neo-colonialism and 'the meritocracy's burden.'

Obama is every bit the narcissist as is Trump.  The difference is that Obama is more articulate in his expressions of it, in his appeals to those things that will provide him more of what he thinks that he deserves.

It is an analysis of our current situation by Thomas Frank. You may have seen it before, but I urge you to watch it through in light of everything that has occurred. Watch the entire video with the Q&A if you have the time.   There are some practical solutions discussed therein.  Basically the system is going to be changed from the bottom up, or not at all.







09 June 2018

Neoliberalism and the Rise of Corporate Globalism


Excerpted below is a recent book review of Globalists: The End of Empire and the Birth of Neoliberalism, by Quinn Slobodian, Harvard University Press.

I have included a link to the entire article which I recommend reading if you wish to know more about how the rise of globalism, corporatism, and neoliberalism may go hand in hand within a reasoned construct.

I could have included much more and still not done justice to the themes and thoughts that it contains.

I found it particularly helpful because it provides a plausible rationale for the continuation of the European Union, despite its malformed integration of a currency union without internal financial integration of debts and transfer payments.  Not to mention its odd admixture of a remote central bureaucracy trumping traditional policy areas within the domain of national sovereignty.

It also helps to understand the stubborn commitment to global 'trade treaties' by corporate Democrats that tend to elevate international  bureaucracies and rules bodies,  dominated by corporate lobbyists, over the inclinations of their own national electorates. 

Obama's determined slogging for the TPP, even as his intended Democratic successor was being electorally eviscerated for her perceived corporatist elitism, was otherwise inexplicable given his sophistication in managing perceptions.

In this perspective these seemingly obtuse things can be seen as 'features' rather than well-intentioned but naively crafted arrangements containing unintentional flaws.

This review also positions neoliberalism within the context of the development of economic and political thought in the 20th century.  The two are inexorably entwined because, as is well established throughout human history, money is power.


The Boston Review
The Market Police
J. W. Mason

"Globalism in this story is not only, or even primarily, an extension of contacts between people, trade, production. Rather, it is the creation of a set of property rights that, precisely because they span multiple sovereignties, cannot be touched by one government without inviting conflict with another. In this sense it is positively desirable for property claims to cross national borders. Foreign investment, regardless of its value or otherwise for financing production, performs a political function that domestic investment cannot...

Organizing property and production across borders—whether through free trade, protections for foreign investment, currency unions or other devices—does more than limit the power of governments. It also serves, Slobodian writes, “to dissolve the small, discrete collective of mutual identification...in a larger unity.” Hayek spent much of his life searching for “a political model that would undermine the ‘solidarity of interests’ that naturally cohered” among similarly-situated people. Open borders played a critical role here, ensuring that economic interests were never “lastingly identified with the inhabitants of a particular region...

Today, the European Union offers the fullest realization of the neoliberal political vision. There is no sovereign people of Europe; the authority of European institutions rests on a body of law and treaties. The European Union is not a nation, but it is not simply an agreement among nations either. Unlike international agreements, European regulations are directly binding on individuals and not only on the government signing them. In many areas, European regulations and authorities don’t merely constrain, but actually replace, their national equivalents. (This is what makes Brexit so difficult.)

Europe’s incomplete integration—with its confusing mix of powers delegated to Brussels and powers retained by national governments—is often seen as a design flaw. But to Slobodian’s globalists, partial integration is precisely the goal—it means that neither the national nor the international body have the legitimacy and capacity to direct the economy. With no international entanglements, a government is sovereign; with complete integration, sovereignty moves to the higher level. What is wanted is a situation in which some powers but not others are delegated, leaving neither national nor super-national governments able to act outside of circumscribed role...

One might even call this the neoliberal paradox. State power is needed to enforce market relations and property rights, but when it rests on democratic politics, it can easily turn into a vehicle for a broader program of economic planning. So the site of power must be anonymized, hidden from politics—as in the opaque jurisdictional mazes of Europe...

From this point of view, the essential thing about the single European currency is not whatever dubious practical advantages come from having prices across the continent measured in the same units. Rather, it is the creation of the European Central Bank as an ostensibly technical decision-maker, more insulated from democratic politics than any national authority could be."

Read the entire book review at The Boston Review.

07 June 2018

Harvard Awards Hillary the Radcliffe Medal For Her Transformative Role In the World


"The wealth of another region excites their greed; and if it is weak, their lust for power as well.  Nothing from the rising to the setting of the sun is enough for them. Among all others only they are compelled to attack the poor as well as the rich.   Robbery, rape, and slaughter they falsely call empire; and where they make a desert, they call it peace."

Tacitus, Agricola


"The disempowered want change; those in power want predictability and consistency. The more you can guarantee predictability and consistency to those in power, the more those in power will reward you."

Caitlin Johnstone


“Anyone who deprived her of something she wanted deserved what he got.”

Jim Thompson, The Grifters





And Michelle Obama apparently 'shames' women for not voting for Hillary.   Just cannot understand why the women failed, and let the Democratic leadership down, refusing to accept their qualified guidance.





11 May 2017

David Talbot: The Rise of America's Secret Government and the Deep State


“Our country’s cheerleaders are wedded to the notion of American exceptionalism.  But when it comes to the machinations of power, we are all too similar to other societies and ones that have come before us.  There is an implacable brutality to power that is familiar throughout the world and throughout history.”

David Talbot, The Devil's Chessboard


"The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea, acceptable only to doctrinaire and academic thinkers.  Instead, the two parties should be almost identical, so that the American people can 'throw the rascals out' at any election, without leading to any profound or extensive shifts in policy."

Carroll Quigley, Tragedy and Hope





21 March 2017

About Fake News


"It is part of the business of a newspaper to get news and to print it; it is part of the business of a politician to prevent certain news being printed.   For this reason the politician often takes a newspaper into his confidence for the mere purpose of preventing the publication of the news he deems objectionable to his interests."

Alfred C. Harmsworth, Journalism as a Profession

I have been meaning to say something on the subject of 'fake news' for a little while now. And as it sometimes seems to do, my procrastination has one again served me well.

A long time reader, Malcolm, sent this email below to me this morning, and I thought it was so to the point as to be worth sharing, with a few minor edits as it was a casual email.

The other week another reader sent me a list of purported 'fake news' sites, and congratulated me for being included on it.  I forget the source of this list, as I was preoccupied with other things at the time.  I was happy to note in the details that they had failed to categorize Le Cafe as being biased or slanted in any particular way.  It was simply labeled 'unknown.'   So I have a fake news site, but they do not yet know exactly what makes it fake, or why.

According to the document, apparently anyone can nominate a site to the list, without a stated reason, whether it be a personal dislike or some more factual analysis.  According to their document, someone later looks at the site and decides what kind of fake news it is.    Apparently they had not gotten around to Le Cafe yet, although they did see fit to include it on a fake news list.

As Winnie-the-Pooh's friend Eeyore would say, 'thanks for noticing me.'

I would like to think that when I have facts I put down the facts, and when I have an opinion or am not sure of the facts, or am putting my own interpretation on the facts, I make that clear also. That is the best that someone who is merely human can do.

Rarely in the real world, with all its variables and differing decision making weightings, are the facts so simple that 2+2=4.   And that is especially the case when it comes to public policy decisions, because of the underlying assumptions and objectives that lead to the selection of the variables and how they are to be combined and weighted.  But those who say 'it is simply math' rarely seem to state, or perhaps even understand, their own inherent biases and selectivity.

Fake news is a neat little label. So too is the label of Russia friendly that has been applied by some other group to various blog sites, such as our friends at Naked Capitalism for instance, for similarly arbitrary and undefined reasons.   I think they defeated their own credibility fairly quickly.  But it is a potentially dangerous trend, and it was especially discouraging to see it adopted by the once 'party of the people and diversity.'

This gets back to what a pundit, in a remarkable moment of irony and apparent lack of self-awareness, recently referred to as America's Epidemic of Infallibility.

To me, this culture of infallibility, or a superior appeal to authority and positional power, is a natural outcome of the notion that the professional class is a natural ruling elite as determined by the record of their schooling and connections and accumulatd accolades.

It is an old concept, sometimes called 'might makes right,' and the age old confusion of wealth and power with virtue.   If virtue were the basis, the natural path to all great power and wealth, then it would a much better world indeed.  But alas, we all know that it is not that way.

It seems that this whole notion of 'fake news' and 'Russia friendly' as it is being used recently is just the same old thing.  It is an attempt by those who are in power and their friends and enablers to control the dialogue in order to promote their own interpretations and policies.  And further, to stifle any dissent from their actions, in an attempt to maintain and enhance their positions and privileges from whence their power to do so arises.  This is as common a thing in corporations as well as societies.

As always, one must read everything with a skeptical eye, and take nothing on 'authority,'  especially now in our age with so many disgraced professions, having been corrupted by the spirit of their own exceptionalism, which is pride, and greed.

Question everything.  And never be afraid to call out those who stand, nakedly of the facts, on an appeal to authority, generally cloaked only with intimidation in jargon, and in very nice and civil terms question their pronouncements with all due respect and humility.

Respect and humility.  Really, Jesse?  Well, there is the resort to humor, which is certainly not pious by its nature.  Humor and caricature is the tool of the commons in dealing with the powerful, and wrong.  Making a joke of something, even if it is a bit pointed, is much less consequential than telling the pridefully mistaken to go shit in their hat.  

And one rarely can achieve a good outcome for their message of reform by writing it on a brick and shoving it into the other fellow's face, especially if the other guy is carrying the bully stick of the state.  There may be a time for that, but that is the difference between reform and revolution.

Those who resort to bullying and exclusion have already identified their character and the weakness of their propositions.  And the more incorrect they are, then it seems the louder and more mean-spirited that they get.

As badly as I made have made this point, here is what Michael has to say.

The mainstream media are up in arms over fake news. The establishment media, along with the political and economic elite of our country, have wound themselves up into a full hysterical fit of fear and loathing over fake news. What's not explained is where the line is located that divides 'fake' news from 'real' news.

Is it the selective publishing of half-truths, unverified rumors, and innuendo? The unquestioning regurgitation of anonymous assertions from shadowy insiders with blatant agendas and conflicts of interest? Perhaps the promotion of stories through hyperbolic overwrought headlines? A focus on the sensational and salacious? The selective exclusion of non-conforming views? The unilateral preemptive dismissal of alternative viewpoints? The manufacture of drama?

Is it the willingness to be infiltrated and influenced by intelligence operatives? The promotion of self-interested pundits? The refusal to call out and banish liars and cheats? Maybe it's the low budget for reporting and editing services, or the reliance of underpaid interns and independent hacks, or the lack of actual investigation? Or maybe the intermingling of news and editorial and advertising? How about the unabashed pursuit of profits?

No, it must not be any of that. Because the 'real' news is long and deeply guilty of those transgressions.

The problem is, we are told, that the purveyors of fake news just make stuff up from whole cloth. I'm shocked, shocked. Because the hypocrisy is monumental. The mainstream media has thoroughly compromised its credibility. This particular weed called fake news could only have grown in a garden long neglected and abused by its caretakers in the media.

To these fretting complainers, I believe that 'real' means responsive to and cozy with the elite. I think 'real' means owned and managed by people deeply connected with Wall Street and Washington. I think 'real' means willing to do the bidding of the war lobby, the US Chamber of Commerce, Goldman Sachs, the CIA, and fossil fuel lobbies.

The mainstream media has long since abandoned any semblance of pretending to do anything except regurgitate the spin, propaganda, lies, deceptions, and memes of the would be ruling class and of their enablers. They have proven themselves interested only in serving their patrons in government and finance, for the sake of power and profits. They barely cling to the weakly stated pretense of journalism, hollow and meaningless now, and contradicted by reality almost every day.

The mainstream media is in a crisis of its own making. Fake news is merely a symptom of a general disregard for the integrity of the facts.


09 November 2016

Credibility Trap: Deny and Defy


In the overnight action, prices have marked out where they will be going.

As for today, those powerful few who use public and private resources to twiddle the markets in the short term, and quite a few other data metrics as well, are giving their brethren who were caught offsides by last night's election a chance to square up and get ready.  That's what they do.

They bought the SP 500 futures for stocks, and sold paper gold and silver for the metals.

And they wished to send all the rest of us a message—  vote all you like, but we are still in control.

Being an insider means never having to say you are sorry, or mistaken.   You do not have to, being a true ubermensch and a member of the right sort, from the right schools and with the right connections in the masterful power elite.

You cannot be wrong, ipso facto, because you rule by virtue a claim to a natural worthiness and superiority.  To admit error is to deny yourself as you wish others to perceive you to be.  And you become ever more deeply mired in frauds of every kind.

That is the credibility trap.

However, let us not mistake this bravado from the Wall Street globalisation project and the system of calculated inequality for what it really is.

They were wrong on the election,  they are wrong on money, and they have been wrong on the economy for far too long.

They have been  compounding their errors as they go, almost compulsively down a selfishly dangerous path, because it benefits them and their patrons financially, and they do not know what else to do without admitting that they were wrong.

We have seen worse, even in my short lifetime, and certainly in that of our parents and grandparents.

This is the point where you find your 'inner man,' to borrow a time worn phrase, and carry on because it is your obligation and your calling to do so.

And for those with a comedic or cynical bent, the next four years will most likely be a treasure trove of material on the borders of absurdity.

That is my take on this.  And being just a man, with all that implies, I could be wrong.



29 April 2015

'Transitory Factors' Affect Economy, But the Effete Fed Remains an Intractable Ass


"If the law supposes that," said Mr. Bumble, squeezing his hat emphatically in both hands, "the law is an ass".

Charles Dickens

As suggested, the Fed said what was to be expected— of a collection of elitist asshats, pampered princes, and supercilious elitist boobs caught in the credibility trap of their serial failures.
 
Although the credibility trap prohibits their mentioning it overtly, their statement omits all references to the tightening that they have led everyone to expect.   So although they exude confidence in their remarks, they must have felt that creeping fear going up their spines, of the broken wall, the burning roof and tower that is characteristic of imperial overreach and folly.
 
The immediate response from financial television is that stocks are up while the euro is dropping and 'gold is plunging.'  Yeah about six dollars.  Apparently the prepared reaction was not carried out properly.  Well, there is always an opportunity to rig the market reaction tomorrow.  One must keep up appearances.
 
The Fed has been horribly wrong about nearly everything they have forecast and most of the policy actions they have taken as both a central bank and a regulator for the past twenty years.   The only group that has put forward a more disreputable and counterproductive performance has been the Congress, and the deeply captured professional class.
Federal Reserve Press Release
Release Date: April 29, 2015

For immediate release

Information received since the Federal Open Market Committee met in March suggests that economic growth slowed during the winter months, in part reflecting transitory factors. The pace of job gains moderated, and the unemployment rate remained steady. A range of labor market indicators suggests that underutilization of labor resources was little changed. Growth in household spending declined; households' real incomes rose strongly, partly reflecting earlier declines in energy prices (ROFLMAO), and consumer sentiment remains high.

Business fixed investment softened, the recovery in the housing sector remained slow, and exports declined. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remain low (not including food and healthcare and rent and the basics); survey-based measures of longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Although growth in output and employment slowed during the first quarter, the Committee continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace, (the Fed has not yet delivered the appropriate policy, sticking with a top down, bank-centric approach) with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate.

The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is anticipated to remain near its recent low level in the near term, but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate.  (There goes the 'real income growth')  The Committee continues to monitor inflation developments closely.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.

This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.

The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.  (Keep doing what is helping to fuel inequality, and has not been working for about six years now)

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Jeffrey M. Lacker; Dennis P. Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams.

20 November 2014

Sarah Lacy and the Darker Side of Über Corporatism


This is a stunning video, with some serious implications. I urge you to watch it. It involves abusing corporate power to smear and intimidate critics.

It was a bit humorous to watch the talking heads discomfort with some of the implications and statements.  The West coast anchors tend to be more business focused and laid back than their New York based cousins who are more deeply into the Wall Street culture.

I am not familiar with Sarah Lacy's work as a journalist and editor, but as a debater she is on point and brilliant.

I am not completely unfamiliar with the attempted use of power to suppress people's views. Outside of professional circles it is petulant and childish, given to snarky emails, snide backstabbing, and cliquish exclusion. You know, the kinds of things one often finds within University departments, corporate bureaucracies, and the blogosphere. lol.

But too often where serious power and money is involved it is real, it is a threat, and it cannot be tolerated if there is to be any aspiration to a free and open society. And we are fools if we allow such power to grow and its abuse to be tolerated, for the misguided fears for our security, much less some short term easy money.


28 October 2014

Nomi Prins: Why the Financial and Political Systems Failed


Nomi Prins calls out the policy error deluxe that has been the topic of so much commentary at Le Café over the past few years.

What is perhaps most striking is that this failure is so bipartisan in a time of contentiousness.   It crosses not only parties but professions, from academics to politicians.

As you know I have featured several articles and videos of hers as she introduces her latest book, All the President's Bankers which is insightful, well-founded and researched, and essential to any understand of what is happening today.
 
As you know I have ascribed this to the credibility trap.   Insiders never speak ill of insiders, if they which to remain a part of the power elite. This is reinforced in the Ivy League and the halls of power.   And so leaders and potential leaders are hopelessly compromised and entangled in a self-serving system of abuse of power and corruption.

It is part of a general failure of moral conscience and leadership in the country.   It has been or is being repeated in England and other countries in Europe.  It is the reason for the long stagnation of the Japanese economy.
 
This is a very brief excerpt.  You may read this insightful commentary in its entirety here.
 
"The recent spike in global political-financial volatility that was temporarily soothed by ECB covered bond buying reveals another crack in the six-year-old throw-money-at-the-banks strategies of politicians and central bankers.

The premise of using banks as credit portals to transport public funds from the government to citizens is as inefficient as it is not happening. The power elite may exude belabored moans about slow growth and rising inequality in speeches and press releases, but they continue to find ways to provide liquidity, sustenance and comfort to financial institutions, not to populations.

The very fact - that without excessive artificial stimulation or the promise of it - more hell breaks loose - is one that government heads neither admit, nor appear to discuss. But the truth is that the global financial system has already failed. Big banks have been propped up, and their capital bases rejuvenated, by various means of external intervention, not their own business models..."