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Part way into chapter one, looks like a concerted attempt to explain a lot of what has happened in once piece/book.

Survival+:

Structuring Prosperity for Yourself and the Nation

by Charles Hugh Smith

http://www.oftwominds.com/survival-plus1.html

SNIPPET....

This failure to address the underlying cause--systemic over-reach and Plutocratic domination of the economy and political system--insures the instability will only worsen. As ever-more frantic attempts to protect the interests of the Plutocracy fail, then another feedback loop forms: the more sham reforms and State bailouts fail to restore stability, the more desperate and transparent the Plutocracy's attempts to retain power.

It is worth recalling that the average compensation for the 10 top hedge fund managers during the go-go years of the 2000s was $600 million each. That is not a typo. This is an excellent (if extreme) example of over-reach and the resulting windfall exploitation.

As it enriches itself via quasi-protected, semi-legal or simply officially sanctioned looting, fraud, deception, embezzlement, collusion, "sweetheart" State contracts, tax avoidance, environmental loopholes and a hundred other mechanisms of over-reach and windfall exploitation, the Elite inadvertently provides the lower classes with a compelling example of increasing wealth via fraud and manipulation rather than production.

Both the high-caste technocrats (who keep the State and economy running smoothly for their Plutocratic overlords) and the underclass sense their shares of the national income and wealth are diminishing as the Plutocracy redistributes both to their own pockets, and quite naturally they seek some way to maintain or grow their own declining purchasing power/wealth.

As they watch the Plutocrats in action, they learn the most effective ways to increase one's share of the income/wealth are looting ("gaming the system" of pensions, benefits, State entitlements, etc.), deception, fraud and embezzlement (accounting trickery, collusion, sweetheart contracts, etc.) and influence-peddling, known in the Third World as corruption, baksheesh, etc.

As the middle class increasingly runs afoul of the byzantine, Kafkesque regulations imposed by an ever-expanding State, they find that financial leverage and legerdemain is far more lucrative than actually producing goods and services.

(Unsurprisingly, the Plutocracy finds ways to gain exemptions, loopholes and special dispensations which greatly reduce the reach of troublesome regulations and taxes.)

As the middle class abandons thrift and production for financial speculation and highly leveraged debt (following the example of their Plutocratic overlords), tax revenues soar as leveraged speculation pyramids into bubbles, enabling vast expansions of a State which is inherently seeking constant expansion of its income and powers.

When these financial bubbles eventually deflate, then tax revenues plummet, as productive work and investment have declined. Why bother working hard when the big, easy money is made via leveraged speculation? Only fools would tolerate all the regulatory costs and high taxes imposed on producing goods and services; far easier to speculate in bubbling assets like housing, stocks, energy, etc.

The State responds to this drop in tax revenues by raising taxes on the remaining productive middle class, creating a positive feedback loop which reinforces the incentives to either drop out, move to speculation or game the system.

Though heavily marginalized, the underclass also copies the Plutocrats' lead by gaming whatever entitlements the State offers to buy the underclasses' silence, passivity and compliance. Thus petty corruption and fraud increases in all State entitlement programs as every sector of society seeks to suck off the maximum benefits while contributing the least possible to the public coffers.

Thus does a nation or empire built on the sacrifices and communal spirit of its citizenry degrade into a doomed culture of self-aggrandizement in which sacrifice is for suckers and looting, manipulation, fraud, embezzlement, exploitation of position/influence, debauchery of credit, maximization of leverage and the pursuit of speculative riches are the order of the day from the Plutocracy on down through the technocratic upper caste to the underclass.

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When these financial bubbles eventually deflate, then tax revenues plummet, as productive work and investment have declined. Why bother working hard when the big, easy money is made via leveraged speculation? Only fools would tolerate all the regulatory costs and high taxes imposed on producing goods and services; far easier to speculate in bubbling assets like housing, stocks, energy, etc.

The State responds to this drop in tax revenues by raising taxes on the remaining productive middle class, creating a positive feedback loop which reinforces the incentives to either drop out, move to speculation or game the system.

Leverage, isn't this what LTCM did? The tax system also played into that by encouraging the partners to borrow as much as they could because it was tax deductible.

I mean that all worked out fine didn't it.

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Part way into chapter one, looks like a concerted attempt to explain a lot of what has happened in once piece/book.

Survival+:

Structuring Prosperity for Yourself and the Nation

by Charles Hugh Smith

http://www.oftwominds.com/survival-plus1.html

Thus does a nation or empire built on the sacrifices and communal spirit of its citizenry degrade into a doomed culture of self-aggrandizement in which sacrifice is for suckers and looting, manipulation, fraud, embezzlement, exploitation of position/influence, debauchery of credit, maximization of leverage and the pursuit of speculative riches are the order of the day from the Plutocracy on down through the technocratic upper caste to the underclass.

yep it is always the case with easy money policies

and my favourite history book which explains what is happening now

http://mises.org/books/inflationinfrance.pdf

Just as dependent on the law of cause and effect was the

moral development. Out of the inflation of prices grew

a speculating class; and, in the complete uncertainty as to

the future, all business became a game of chance, and all

business men, gamblers. In city centers came a quick growth

of stock-jobbers and speculators; and these set a debasing

fashion in business which spread to the remotest parts of

the country. Instead of satisfaction with legitimate profits,

came a passion for inordinate gains. Then, too, as values

became more and more uncertain, there was no longer any

motive for care or economy, but every motive for immediate

expenditure and present enjoyment. So came upon the

nation the obliteration of thrift. In this mania for yielding

to present enjoyment rather than providing for future comfort

were the seeds of new growths of wretchedness: luxury,

senseless and extravagant, set in: this, too, spread as a

fashion. To feed it, there came cheatery in the nation at

large and corruption among officials and persons holding

trusts. While men set such fashions in private and official

business, women set fashions of extravagance in dress and

living that added to the incentives to corruption. Faith in

moral considerations, or even in good impulses, yielded to

general distrust. National honor was thought a fiction cher-

ished only by hypocrites. Patriotism was eaten out by

cynicism.

Thus was the history of France logically developed in

obedience to natural laws; such has, to a greater or less degree,

always been the result of irredeemable paper, created

according to the whim or interest of legislative assemblies

rather than based upon standards of value permanent in

their nature and agreed upon throughout the entire world.

Such, we may fairly expect, will always be the result of

them until the ñat of the Almighty shall evolve laws in the

universe radically different from those which at present

obtain.

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This is what happens when you force people to work at gunpoint. They tell you to get stuffed and go on the rob.

The only way to get around this is to pay people enough so that they actually think it's worth getting out of bed in the morning. If they don't, your fooked. This is what will happen shortly IMO.

24k a year doesn't cut it for most people. Why would a sh1te salary like this capture anyones interst or imagination anyway. It's much easier just to take what you need directly from these, so called, powerful creatures.

The powers pulling the stings really are idiots, but there you go. :rolleyes:

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About half way through. A good read imo.

Globalisation, green issues and how such things are used to rip off the population, the role and position of the banksters, politicians and hangers on, wage disparity, societal changes and the eventual effect of killing the productive sector with red-tape, rules and regulations which the big companies which employ the lobbyists are able to circumvent.

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About half way through. A good read imo.

Globalisation, green issues and how such things are used to rip off the population, the role and position of the banksters, politicians and hangers on, wage disparity, societal changes and the eventual effect of killing the productive sector with red-tape, rules and regulations which the big companies which employ the lobbyists are able to circumvent.

yep a few on here know this

what do we do to change it

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yep a few on here know this

what do we do to change it

We can't, we just wait for the re-set? I sure this is what the 'article' (e-book!?) is suggesting.

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