The Hard Way

We had this dirtbag cold, and we knew his racket. The boys brought him in and McCluskey and I gave him a chance to come clean. “Alright Tico, listen carefully. You know what we want. We can do this the easy way, or we can do this the hard way.”  I should have saved my breath.

They always choose the hard way. 

The avoidance of pain in the short-term, otherwise known as kicking the can down the road, has been the default position of our politics and culture for several generations now, and has left us with a gargantuan can that is increasingly impossible to kick.  We took the easy path every single time, narrowing our options with each and every choice until there were no longer any good choices to make.  Now, all we are left with is the hard way.

Not only are the signs of this everywhere, public awareness of our untenable position is growing daily, despite the best efforts of the media/establishmentarians to suppress the disquieting reality of the situation.  I have noticed that core parts of Turd’s famous “TEOTGKE” hypothesis (that the great seventy-year Keynesian experiment subverting free markets and the law of supply and demand through easy money creation and central bank control of the economy is grinding to an ugly and inevitable end) are becoming more and more common in the mainstream.  Conspiracy theory turning to conspiracy fact.  What was once the sole province of the tinfoil-hatted, the goldbugs, and other supposed “fringe” elements is now becoming mainstream knowledge.  Indeed, many of the central ideas that have animated the PM community are now leaking out into the wider consciousness in ways that are increasingly visible.

AceofSpadesHQ is a highly trafficked Libertarian leaning blog with an anarchical comments section that calls itself ‘the moron horde’.  One of the regular contributors, named Monty, blogs once a week on economic news in a series he cheekily titles “DOOM!”.  A recent news round-up of his featured this side-note by Monty, which could very easily have been posted at TFMR:

Still no love for us goldbugs out there in econo-land. That's okay. I've become comfortable with being the crazy uncle at the family gathering. As long as it keeps the price of the barbaric yellow metal down to affordable levels, I'll indulge the foolish love of my peers for their fiat paper. (Every time I buy something with cash, I feel an atavistic little thrill of passing off what amounts to Monopoly money for real stuff. I feel like I'm getting away with something. But then I remember that my daily wage is also being paid in those federal IOUs, and my thrill fades.)  :

People are noticing the cracks, and you see glimpses of it in places you never did before.  Leftist Huffington Post writer David Russell just posted an article describing, contra the official Obama narrative, how actually crappy the economy has been for the majority of working people while benefitting the top 1%.

Unsurprisingly, he fails to come to terms with the inconvenient fact that 1. His party has been in charge of this economy for six-plus years and their policies have contributed mightily the situation he now laments, yet 2. He calls for more of the same as the solution.  What did surprise me was that while Russell titled his article “It’s the economy, stupid”, the very first comment to this post simply replied “It’s the government, dummy”.  Not a notion I would expect to see in the HuffPo comments section.

The fact that labor force participation rate has dropped to a 37-year low has now become common knowledge, receiving mentions even in mainstream outlets like Bloomberg and Barron’s .

Yet even this frightening metric vastly understates the true degree of precariousness of our present condition.  Ask yourself this question: is it realistic in today’s economy for a single person to support him or herself, AND to totally support three other people at the same time?  To produce so much surplus that they feed, clothe, house, pay for medical care and all the expenses of life for three other people in addition to themselves?  Well I guess it must be, because we are all doing it right now.

Total US population is around 325 million people.  Government assistance is at 107 million and is now larger than the working population, which is just 100 million. We have crossed the Rubicon.  Additionally, 25 million of those 100 million counted on the ‘working’ payrolls are employed by the government (and therefore, by definition, do not create wealth, profits, or surplus), so what we are left with is a system in which 75 million people are supposed to toil to create enough total wealth to support the remaining 250 million.

So out of every 4.3 people in the US, only one works to produce a surplus.  Or you could say that every working, surplus-producing person has to produce enough to entirely support 3.3 people in their every need, in addition to providing for themselves. These 75 million are all that remains of the once mighty middle class in this country, the shrinking foundation upon which everything else is constructed.  These people drag themselves out of bed every day, down their cup of coffee, then slog off to work to earn their keep… plus enough for 3.3 others as well.  A grateful nation rewards these 75 million brave souls by besieging them with new taxes, regulations, obligations, and laws, and treats them with scornful condescension though a media and intelligentsia that disdains their "retrograde" middle class culture, sports, hobbies, and religious beliefs.

People are noticing.  Professor and classical historian Victor Davis Hanson commented trenchantly on the increasing “under siege” mentality of ordinary Americans on whose backs the entire edifice rests:

For bewildered and increasingly quietist Americans, the center holds mostly in family, religion, a few friends, the avoidance of the cinema and nightly news, the rote of navigating to work and coming home, trying to stay off the dole and taking responsibility for one’s own disasters — as the world grows ever more chaotic in our midst.

Efforts to escape from the madness are now epidemic. Home-schooling. Gun ownership. A second home in the mountains. A trunk of freeze-dried food. Kids living in the basement. A generator. Some gold coins. A move to Wyoming. An avoidance of the old big cities. A careful and narrow selection of channels on cable TV. A safe room or escape plan. And on and on.

There is a strange new and dangerous sentiment brooding below the spoken surface that whatever is going on in the world and in America today cannot go on much longer…

We all know what follows from this — either the chaos grows and civilization wanes and tribalism follows, or we see the iron hand of the radical authoritarian Left or Right, or a few good people in democratic fashion convince the mob to let them stop the madness and rebuild civilization.

I hope for option three. I fear option one is more likely at home. And I assume that option two will be, as it always is, the choice abroad.


At some point in the last 40 years or so, we could have chosen short-term pain (a brief recession, fewer entitlements, balanced budgets, etc) and secured long-term stability.  Instead, we chose the easy way.... every single time.  Now the consequences are settling in with a finality that is becoming increasingly evident to all but the most clueless observers. A baffled, besieged middle is waking up to the fact that both parties will fight any reforms tooth and nail, that change through political processes is impossible when there is no opposition party.  They are slowly starting to hunker down, withdraw, husband their resources, and wait to see what happens.  Those who aren't doing these things can deny the obvious all they want, but something tells me they will learn soon enough.  The hard way.


SS121's picture

CPE - How does nature produce oil?

P.S. - CPE - check out 'abiotic oil' and deep wells, also Russian oil production. It's produced in the earth by geologic processes far deeper than where any dinosaurs ever existed.

Also consider the Earth is alive, and it produces those oils that come to the surface similar to your living flesh body that produces the oil that comes to the surface of your skin.

Man's microscopic little pipelines and tankers that for what 50?  100? years have been racing to what they laughingly call "Peak Oil", ...probably hasn't amounted to much more than the comparative draining of a tiny zit from the 4.5 Billion year old Earth's outer surface. 

​Little tiny pin prick oil wells go 5 or 6 or 7 or so miles deep into the Earth's skin.  It's about 4,000 miles to the center.

Or if a visual helps... 

It would basically be the same as drilling super tiny tiny TINY microscopic holes that only go 1/100th  of an inch deep into the surface of Kim Kardashians reportedly 40 inch hiney.

kim kardashian, get just an unnoticeable amount of oil, that will continue to regenerate anyway.

procog's picture

My God SS121

I wish I had you for my geology teacher.  His pictures of fissures and crevices never looked like yours.  

benque's picture

Source of oil

I cannot believe that anyone who reads these forums could believe that all the oil comes from dinosaur carcasses!!!  Even if put forth to debunk conventional oil source theory, it is infantile at BEST.

I assure you all that long, long, long before the very first maggots started feasting on dinosaur steaks, there were other creatures who existed in large numbers, for a very long time.  Large numbers, like untold trillions, upon trillions, upon trillions (kind of like fed-bucks).  For a long time, like hundreds of millions, if not billions of years.  The ocean (yes, only one then) was literally, for all that time, a soup of plankton.  Continuously reproducing by the trillions of trillions, day after day, after year, after aeon....with no predators to gobble them up and convert their biomass to "other" types of energy.  Sinking to the bottom, and piling up miles upon miles in depth, burried by upheavals in the earth's crust, and simmering for a couple billion years.

As well, look at shale oil and shale gas.  No, first look at shale.  Seperate some layers, and you will find fossils everywhere.  Plant fossils.

Just to sum it all up, ever smell a cow fart? the stuff that is burned off in oil fields.

Life is the source of oil, not dirt.

Joseph Warren's picture

Well folks, do your own research on oil . . .

but remember these are the same folks who tell you - 

"the globe is warming and its mankind's fault. The issue is settled. Pay us for carbon credits."

"flu vaccines are good for you, even though they usually don't target effectively this season's strain"

"GMO foods are fine even though their long term effects haven't been tested"

"Common Core will make our kids smarter."

"We know what's best for you and we have your interests in mind. You can trust us. We would never lie to you."

"Gold is not money. It's just another commodity."

Safety Dan's picture

The Bankruptcy of The United States

The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303

Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:

"Mr. Speaker, we are here now in chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.

It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.

The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: "The U.S. Secretary of Treasury receives no compensation for representing the United States?’

Gold and silver were such a powerful money during the founding of the united states of America, that the founding fathers declared that only gold or silver coins can be "money" in America. Since gold and silver coinage were heavy and inconvenient for a lot of transactions, they were stored in banks and a claim check was issued as a money substitute. People traded their coupons as money, or "currency." Currency is not money, but a money substitute. Redeemable currency must promise to pay a dollar equivalent in gold or silver money. Federal Reserve Notes (FRNs) make no such promises, and are not "money." A Federal Reserve Note is a debt obligation of the federal United States government, not "money?’ The federal United States government and the U.S. Congress were not and have never been authorized by the Constitution for the united states of America to issue currency of any kind, but only lawful money, -gold and silver coin.

It is essential that we comprehend the distinction between real money and paper money substitute. One cannot get rich by accumulating money substitutes, one can only get deeper into debt. We the People no longer have any "money." Most Americans have not been paid any "money" for a very long time, perhaps not in their entire life. Now do you comprehend why you feel broke? Now, do you understand why you are "bankrupt," along with the rest of the country?

Federal Reserve Notes (FRNs) are unsigned checks written on a closed account. FRNs are an inflatable paper system designed to create debt through inflation (devaluation of currency). when ever there is an increase of the supply of a money substitute in the economy without a corresponding increase in the gold and silver backing, inflation occurs.

Inflation is an invisible form of taxation that irresponsible governments inflict on their citizens. The Federal Reserve Bank who controls the supply and movement of FRNs has everybody fooled. They have access to an unlimited supply of FRNs, paying only for the printing costs of what they need. FRNs are nothing more than promissory notes for U.S. Treasury securities (T-Bills) - a promise to pay the debt to the Federal Reserve Bank.

There is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration." Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.

Their lust is for power and control. Since the inception of central banking, they have controlled the fates of nations.

The Federal Reserve System is based on the Canon law and the principles of sovereignty protected in the Constitution and the Bill of Rights. In fact, the international bankers used a "Canon Law Trust" as their model, adding stock and naming it a "Joint Stock Trust." The U.S. Congress had passed a law making it illegal for any legal "person" to duplicate a "Joint Stock Trust" in 1873. The Federal Reserve Act was legislated post-facto (to 1870), although post-facto laws are strictly forbidden by the Constitution. [1:9:3]

The Federal Reserve System is a sovereign power structure separate and distinct from the federal United States government. The Federal Reserve is a maritime lender, and/or maritime insurance underwriter to the federal United States operating exclusively under Admiralty/Maritime law. The lender or underwriter bears the risks, and the Maritime law compelling specific performance in paying the interest, or premiums are the same.

Assets of the debtor can also be hypothecated (to pledge something as a security without taking possession of it.) as security by the lender or underwriter. The Federal Reserve Act stipulated that the interest on the debt was to be paid in gold. There was no stipulation in the Federal Reserve Act for ever paying the principle.

Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913)

"Hypothecated" all property within the federal United States to the Board of Governors of the Federal Reserve, -in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a "beneficiary" of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their "subjects," the 14th Amendment U.S. citizen, to the Federal Reserve System.

In return, the Federal Reserve System agreed to extend the federal United States corporation all the credit "money substitute" it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their "economic slaves", the U.S. citizens as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national parks forests, birth certificates, and nonprofit organizations, as collateral against the federal debt. All has already been transferred as payment to the international bankers.

Unwittingly, America has returned to its pre-American Revolution, feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the people have exchanged one master for another.

This has been going on for over eighty years without the "informed knowledge" of the American people, without a voice protesting loud enough. Now it’s easy to grasp why America is fundamentally bankrupt.

Why don’t more people own their properties outright?

Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?

We are reaping what has been sown, and the results of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.

America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order! Wake up America! Take back your Country."

Bolding,  italics and underlining added by me - Safety Dan

Safety Dan's picture

Six Banks Will Take Part in

Six Banks Will Take Part in New Electronic Gold Fix

Six banks will participate in the auction to set the new electronic gold price that will launch on Friday, according to Intercontinental Exchange, which manages the new platform.

Joseph Warren's picture

P.S. - I came pretty late

to the game when it came to doubting the 'Peak Oil' meme.

This only came about after I read F. William Engdahl's works on oil geopolitics.

His work's were quite eye opening.

Safety Dan's picture

We Must Rethink "Everything"

We Must Rethink "Everything" If We Are To Survive This Strange New World

None of this is arbitrary.  It means in order to get investors into Sovereign debt you need to pay them in accordance with other similar investments.  When economies are strong there are lots of similar investments that are paying higher and higher returns.  Meaning Treasuries/Sovereigns need to increase rates to compete for capital.  This has a natural balancing effect that prevents an overheating of an economy.  However, when the economy is bad there are very few, and currently it would seem in Europe, no similar investments that are paying even a positive return.  Meaning Euro ‘Treasuries’ can offer negative rates and still get investors.  As rates increase so does demand for that currency increase and results in a strengthening of that currency.  Alternatively, when interest rates move lower and further negative a fiat currency sees less and less demand thus weakening that currency, as has been the case with the Euro.  This is how rates, the economy and currency strength are tied together.

What this means is that if an economy continues to decline a fiat currency’s purchasing power valuation can actually move to absolute zero (meaning it is worthless) and that rate of moving to zero is going to be your negative interest rate.  It would get to zero when an economy shows no possibility of a positive return investment.  What we find is that with asset backed currencies this actually cannot happen.  Because an asset backed currency actually derives its value, or at least its minimum value, based on the underlying asset and so it isn’t dependent on the respective economy.  It has a minimum purchasing power valuation equal to the cost to produce or extract the underlying asset.

Because that will always be a positive figure you could never see negative interest rates with an asset backed currency.  It is an impossibility, which until recently most would have agreed was the case for even fiat currencies.  The point is that there is always at least one alternative investment with a minimum positive value for all asset backed currencies and thus must always have positive nominal rates.  This is the biggest and most fundamental difference between fiat and asset backed currencies.

These negative rates that we see in Europe are a first glimpse of fiat currency destruction due to imploding economies.  And again the negative rates are nominal rates meaning they are negative by way of something beyond inflation.  Specifically they are moving to their natural minimum state of valuelessness because the economy is no longer strong enough to provide alternative investments for the fiat currency.  Fiat currency is shown then not to be a storage of value whatsoever.  But only a representation of strength of its respective economy.  As the economy goes to zero so does the value of its currency.  This point is exceedingly imperative to understand in our current global environment

-end excerpt of article

Visualizing The History Of The World's Yield Curves In Glorious 3-D


Which Bank will go under next? Banks Credit Default Swaps

List here:

Putting a Breakup of Bank of America to a Shareholder Vote

Gold Prices Will Hit Record On Surging Asian Demand,…


Expect ‘Trench Warfare’ Among Investment Banks — Report

A squeeze in fixed income liquidity, stripped-back balance sheets, low interest rates and big capital requirements are making the investment banking world and increasingly scrappy place for returns.

Wall Street Lawyer Slams Regulatory Environment

Rodgin Cohen, one of Wall Street’s top lawyers, says strains between banks and regulators have never been greater.

lnardozi's picture

Not dead animals, dead plants

There's more of them.

Safety Dan's picture

UN Preparing For Global

UN Preparing For Global Sovereign Debt Restructuring

Posted on March 19, 2015 by The Doc

The United Nations (UN) is preparing a Multilateral Legal Framework for Debt Restructuring Processes.
At the highest level an orderly sovereign debt restructuring for developed countries is being designed.

Please read below a few snippets from resolution 68/304 drafted by the United Nations (UN) in September 2014 on global sovereign debt restructuring.
Reading between the lines the UN admits our current system is unsustainable and because of “systemic fragilities reform to strengthen the international financial system” is needed; a monetary reset.

Submitted by Koos Jansen, Bullionstar:

An open letter to all pension funds 

The United Nations (UN) is preparing a Multilateral Legal Framework for Debt Restructuring Processes. At the highest level an orderly sovereign debt restructuring for developed countries is designed.

As I’ve stated before on these pages, effectively the only thing Quantitative Easing (QE) can buy is time. Since 2008 our monetary wizards have merely been able to keep the can on the road, perpetually kicking it further into the abyss through QE. Solutions are still debated between policy makers behind closed doors, as our current fragile international monetary system does not allow public debate on significant changes or it will risk implosion.

If sustainable monetary solutions can be implemented at all from the top of governing bodies within a society waiving the flag of capitalism remains to be seen. In my opinion our system, which is still presented as capitalism, can only survive from the essential input of the economic agents operating at the bottom of the market, producing goods with labor, setting prices, taking risk and creating real wealth. Denying these fundamentals is what brought us into this crisis.

Please read below a few snippets from resolution 68/304 drafted by the United Nations (UN) in September 2014 on global sovereign debt restructuring. Reading between the lines the UN admits our current system is unsustainable and because of “systemic fragilities reform to strengthen the international financial system” is needed; a monetary reset.


Resolution adopted by the General Assembly on 9 September 2014

68/304. Towards the establishment of a multilateral legal framework for sovereign debt restructuring processes

107th plenary meeting

Recalling further the In

Safety Dan's picture

Daily Gold Chart

Daily gold against resistance, yet RSI, MACD, MACD w/hist and slow STO indicating upward movement.

Is gold going to get turned down for a couple days & then break out? Or will gold breakout breakout today? Or,will gold stay within the downward channel as price declines? 

I vote pull back for a couple days and then breakout.

CPE's picture


I'm glad I'm not the only "infantile" on this post.

All ancient civilizations have an account of the flood, and plant biomass is orders of magnitude greater than dinosaur carcasses or living creatures at any time in history.  I agree that there are many lies to sift through, but the conclusions listed here are not my understanding.

Also consider the Earth is alive, and it produces those oils that come to the surface similar to your living flesh body that produces the oil that comes to the surface of your skin.

I do not believe in GAIA cults.  I also have studied the layers of the Earth.  I've seen pictures of a petrified tree, upside down and protruding through several "strata" each with a carbon date that is allegedly billions of years apart from the other strata that the tree protruded through.  The fossils date the strata and the strata date the fossils, that circular reasoning is where the timelines originate in current theory.  I'm glad everyone is trying to think it through and pull from disparate sources to find truth, keep digging.

@Josephs Warren - I'll do some digging on abiotic oil, thanks

benque's picture

Earthly oils

I guess volcanos are just big pimples.

AGAU's picture


"Smell a cow fart" must put that on the bucket list 

har ,

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