Got Myself Banned On The Market Ticker
I was wondering how long it would take. Karl doesn't like it when you can demonstrate that he's wrong about something. The post he made that I was responding to was, 'When All You Have Is A Hammer (Market Efficiency)'
Karl made the argument in the forum that anyone who thinks the Fed or the Gov will keep printing money and giving it to the banks, is engaging in fantasy and he wouldn't tolerate anymore talk on that.
I pointed out that Karl didn't predict the bailouts, then didn't believe they would happen when they were proposed. I argued that in fact, this was fantastical thinking, because it turns out that the way he views the world, doesn't reflect reality.
Karl got pretty pissed at me from the tone.
He argued that the plan didn't work. He said,
"They DIDN'T FLY.
What has been fixed? Lehman is gone, the market is down 40% from the top, it is unstable as hell, the attempt to force mortgage rates to 4% FAILED, the attempts to restart securitization have ALL FAILED, and on and on and on! The only people who have kept their money safe or made any are TRADERS - all the retirees in stocks or people with 401ks who were in the market got fucking DESTROYED! Unemployment is STILL ramping, mortgage defaults are going parabolic, 2 of the 3 major automakers went under and we've got a state that has effectively gone bankrupt.
WHAT flew? Blowing money out of one's asshole? Well shit, anyone can do that! The question isn't whether you can do stupid shit (anyone can) its whether ANY OF IT will do ANYTHING positive in the greater economy!
Obama came out with his "stimulus" and said it would stop unemployment from ratcheting higher. IT DID NOTHING!
Who's living in the fantasy land here? I said none of this shit would work and that they'd be CRAZY to do it - well, it appears they're crazy!
This makes me wrong? Like hell! Show me one of these things that has worked!"
To which I responded,
"Yes, and it worked. The bonuses for the pirates keep flowing. The Bankers that engineered this continue to see record salaries.
The whole point was to funnel the wealth of the nation into the hands of a few bankers. It's working fine. What you see is what they wanted.
The bubble, the bailouts, the massive debt overhang was all intentional. It's a pattern that the banks have used for hundreds of years. It really started taking shape in Africa in the 1970s, then South America in the 1980s and 90s.
Now it's North America's turn.
We're in the middle of a hostile takeover. Next they sell the USA off for parts."
And finally he responded,
"You're done Weasel. I warned people about this shit in my Ticker threads.
Do it in another one and you're gone from this part of the forum entirely.
I'm tired of this crap."
And I'm fine with that. I do enjoy a the analysis I read on his blog and forums. But far too often, Karl assumes that the world works the way he wants it to, and as a result, we keep seeing things that he labels 'Tin Foil Hat Conspiracies', coming true. The last ten years has shown us event after event that would be labeled 'Tin Foil Hat' material.
In fact, any well grounded in reality as we might interpret it, would've been completely incapable of predicting most of the major events of the last decade. All that proves is that folks that believe that they are well grounded in reality, don't understand reality at all. The reality in their heads is fantastical.
Karl doesn't believe that the Fed and the White House, Congress and the top banks are acting in their self interest. He believes that they won't do things detrimental to the country, because..., well I think he believes this because he assumes that they are acting in the nation's best interest. He believes (as I understand his position), that they wish to save the economy, but are just accidentally profiting handsomely, by screwing up.
Now in 1999, I first started writing about how financial bailouts would be the norm as the world's oil production peaks and declines. Industry would become a losing investment and the money would move to finance. Finance would rule politics and the politicians would do everything in their power to keep the most powerful banks solvent. As I see it, everything will be sacrificed to keep the wealthy empowered.
So two years ago, with the housing bubble in full swing, I started arguing that it would end in massive bailouts. I was laughed at, ridiculed and called a 'Tin Foil Hat Conspiracy Theorist'.
But I was right. I saw that the logical outcome of the bubble, predicted it, and my predictions reflected reality.
I think it's about time that folks began to recognize that the way we've been taught to view our society, our government, our economy, and our legal system, is nearly completely wrong. We have been sold a fantasy, and for much of our lives, the fantasy and the reality haven't diverged enough to be dangerous.
But that time is over. The fantasy view that we as a society cling to, no longer has any semblance to the reality in the top levels of government and high finance. It's time to discard that view and see the world as it really is. And it's ugly.
The actors on the stage now are just greedy pirates. They are looting our nation and destroying it. There is every reason to believe that they will keep doing this, until they are stopped. I think this should be plain for all to see. But we still cling to the illusion were trained to believe in, all of our lives.
Karl does not believe in this view at all. And because of this, I believe he's going to be wrong again and again. He's looking at this from the perspective of what is good for the economy and what is good for the nation. He assumes that the people in charge, have good intentions, but are making boneheaded mistakes. He thinks in my view, that they will come around.
I believe that this is a dangerous way to view the situation. I believe that we have overwhelming evidence that what has been happening is intentional. I believe that the evidence is overwhelming that the criminal activity is also intentional. i believe that the White Houses Dream Team, is doing all of this, and causing the damage that they are causing because this is their intent. They've used this script in other countries and gotten fatter and richer. They keep doing it again and again and profiting. In fact, this scripted cycle of impoverishment goes all the way back the practices of the East India Company, and their use of debt to gain political control of nations.
I predict that there will be more bailouts and there will be fire sales of public assets. Karl predicts that this will not happen, because that would be bad for us.
I don't think we'll have to wait too long to see which of us is engaged magical thinking.