Tag Archives: Lenin

Phony Class War

Here is a fun piece in Politico, facetiously addressed to the 1% from one of their own. It warns that a revolution is coming, and “we may not have time to board our jets and fly away to New Zealand.” This is a clever lie. The real elites will not only escape the revolution – they are in on it. Blood will be shed, as it always is, between the poor and the bourgeois. The Washington elite – they of the surveillance state and the militarized police – will merely consolidate their power.

The author seems to be warning his rich buddies that they should stop hogging all the money, as if that would free some up for rest of us. This is the zero-sum fallacy, once again. Jeremiah, and Lenin, sees it differently. Do you really believe that you are poor because Mark Zuckerberg is rich? He’s a billionaire, after all – think of all the poor children his money could feed.

The political forces blame the rich and this merely creates class warfare with no resolution for the future. Even confiscating all the wealth of the so-called rich will not sustain the system.

Here is a different perspective, from Martin Armstrong. He writes that big government, not the rich, is what has bankrupted the West. Whom to believe? Here are some things to think about:

You are not poor because of Mark Zuckerberg. You are poor because America has an incompetent and corrupt government. When people write about revolution in Politico, note that they are pitting us against each other.

See also: What Do You Want for Free?


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Stock Market Manipulation

A new study by the OMFIF discloses that the world’s central banks are buying stocks. So, there you have it. The well known correlation between Federal Reserve easing and stock market highs is now proved to be cause and effect. The references on their home page are illustrative:

  • FT finds irony in central banks’ yield hunt
  • Central banks fueling equity bubble
  • Central banks switch to equities for diversification

One weakness of the OMFIF report is that it lumps sovereign wealth funds in with central banks. The former may buy what they like – they don’t have the authority to print money. Central banks playing in the stock market are quite another thing.

A central bank, like the Fed, is the ultimate deep-pocket manipulator. They have an infinite capacity to bid prices up, and they have insider knowledge when easing will end. It is simply unbelievable that this activity is legal.

The justification, of course, is the good of (some) national economy. We are reminded of Lenin in this connection. Indeed:

Asset managers may face efforts to influence their investments in areas like infrastructure or social security systems. Public investors of all categories may be called upon to take part in global and regional safety nets.

Not content with the stock market bubble, central banks are now encouraged to funnel newly printed funds directly into government programs. That’s moar better.

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Debauching the Dollar

We have been reading a wonderful paper on the use of this expression, “debauch the currency.”  The feature topic is simply who said it first, Keynes or Lenin, but the investigation takes us into the world of interwar inflation and communist revolution.

The best way to destroy capitalism is to debauch the currency.

It’s timely because many pundits trace today’s loose monetary policy back to Keynes – pundits on the right, mainly, as in “those damned Keynesians at the Fed.”  In fact, Keynes warned against inflation.  He cites Lenin to make the point that loose money is the enemy of capitalism.

As a disclaimer, Jeremiah was for monetary stimulus before he was against it.  Quantitative easing is long past being helpful, and everyone expected Chairman Bernanke to announce a reduction – at least $10 billion per month – at last week’s meeting.

Keynes writes that, “by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”  He goes on to say that not one man in a million will be able to detect it.

People are smarter today.  We have all noticed the confiscation.  Pension funds are going underfunded, and savings accounts are being robbed.  Inflation hasn’t cut loose at the supermarket yet, but it will.  Meanwhile asset-price inflation is piling up in the stock market – and whom does that enrich?

By directing hatred against this class the European Governments are carrying a step further the fatal process which the subtle mind of Lenin had consciously conceived .

Keynes observed that in times of rapidly rising prices – share prices, today – the entrepreneur class “cannot help but get rich quick whether they wish it or not.”  We added the italics because billionaire hedge fund managers are now starting to complain on CNBC – you have to see it to believe it – that it’s just not sporting anymore.  Yes, this must be the apocalypse.

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