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Friday, November 15, 2019

The new white underclass

You may recall that I told you the Great Depression had returned in 2008. The financial architects have managed to convince everyone otherwise, but the growing number of tent cities and the new white underclass belie their manufactured statistics:
Cities like San Francisco spend tens of millions of dollars each year trying to keep the streets clean to no avail. Within hours, freshly cleaned streets are again covered in filth. Many people seem to think the city needs to throw more money at the problem.

What do you think? How should they address the problem?

Doug Casey: Cleaning up after these people isn’t a solution. It’s cosmetic, at best.

What we have are thousands on the streets who produce nothing, and only consume. They survive on food stamps, various welfare programs, handouts, petty theft, and the like. In other words, they’re not an asset either to themselves or to society. They’re an active liability, and they’re actually encouraged by being allowed to group together on other people’s property.

Will cleaning up after them solve the problem? No, it aggravates it.

It’s now an epidemic. It started in 2008 when lots of middle-class people lost their houses. And oddly, the trend toward people living on the street has been growing over the last 10 years of artificial boom.

We’re going to have a very real bust very soon. The high levels of debt that we have today have allowed the whole country to live above its means. When the economy adjusts to lower levels of consumption, a new avalanche of people will lose their jobs, and they’ll have no savings to fall back on. However, their debts will remain and keep them from getting back up.

Not so long ago, Americans saved up and bought their cars for cash. Your car was a small asset, but it was an asset. Then came two-year, then three-year, five-year, and now seven-year financing. In fact, most now lease their cars, because they can’t afford to buy them, even with seven-year financing. The things have gone from being a small asset into a major liability. With simple pickup trucks selling for upwards of $50,000, many are going to lose their transportation. Then they can’t get to their job, can’t pay their rent or mortgage, and they’re out on the street. It’s easy to see how an ex-member of the middle class could become mentally unbalanced and start doing drugs.

People could lose houses they bought with mortgages they can’t afford but think they can because of today’s very low floating interest rates. Just like back in 2008 and 2009. Plus, real estate taxes keep going up—partly because local governments are in good measure responsible for supporting lowlifes forced to live on the street, ironically due to high real estate taxes.

Utilities are going to go up because commodities are very, very low now. They’re going higher—good for commodity speculators; not good for Joe and Jane Consumer.

So, you’re going to see more people moving onto the streets. And let me reemphasize this: They’re not—now—necessarily junkies or mentally disabled. But they may be, once they lose everything they thought they had. Their numbers are going to grow as the economy goes downhill.

This is an explosive problem. These are people who will have nothing to lose. They’re going to be overcome by envy of and resentment against the rich. You can count on them to vote Democratic in 2020.
The entire system is rapidly breaking down. Hence Russia Russia Russia and the impeachment charade. When the latter fails, it will be something else. And while it would appear unlikely at this point in time, it's far from impossible that the God-Emperor will have to declare martial law before the next election. I doubt he will unless absolutely forced to do so; he's a negotiator, not a warrior. But I suspect he now fully realizes that there is no way out but victory.

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77 Comments:

Blogger Crew November 15, 2019 12:46 PM  

President Trump has an opportunity.

Blogger "William Berke" November 15, 2019 12:54 PM  

Unconditional surrender.

Blogger Ingot9455 November 15, 2019 12:55 PM  

I can't wait for Illinois to go bankrupt.

Blogger 351wsl November 15, 2019 12:56 PM  

They'll continue to kick the can down the road, until one day, they can't. I wouldn't personally place a wager on when that will be.

Like with Christ's return, I try to live every day, like that day is tomorrow.

Blogger OneWingedShark November 15, 2019 1:02 PM  

I'm convinced that much of this is by design; for example: there's all the whining about the "STEM shortage" but Computer Science and IT types are reporting that even getting a job is difficult and last I heard takes an average of 18 months. And a lot of these people are vying for "entry level" jobs which, oddly, have things like 5-, 7-, even 10-years required experience.

Now, consider that IT/Tech is one of the more well-paying jobs and things become clearer: the massive and obvious preferences for foreign workers (H1B, et al) drive massive & systemic fraud in order to obtain these foreigners — hence the perpetual screams for ever more H1Bs — makes it more difficult for citizens to find [gainful] employment and forces them to live off savings and/or debt, which in turn both depletes resources and makes them more willing to accept lower wages.

An honest, vigorous application of RICO would likely destroy multiple "too big to fail" corporations.

Blogger glueballs November 15, 2019 1:05 PM  

I can't wait for Illinois to go bankrupt.

Do recall "too big to fail." That phrase will make a comeback. And then more federal script will be printed and Illinois bailed out stat.

Illinois has just consolidated 600+ public service sector pension funds. Countdown has commenced.

Blogger Brett baker November 15, 2019 1:13 PM  

Well, one thing was wrong. Those simple $50,000 pickup trucks? They cost $50,000 because they're no longer simple.

Blogger McChuck November 15, 2019 1:19 PM  

There is no substitute for victory.

Politics is a game played for keeps, winner take all.

Politics is war by other means.

Blogger SB71 November 15, 2019 1:21 PM  

Don't worry, the GE's son in law is working on a pro immigration plan that'll fix everything!

We'll only bring in the smart Third Worlders. No effect on American worers just like in Miami in the 1980zzzzzz

Blogger doctrev November 15, 2019 1:34 PM  

Many people can't even repair their cars- they lack technical skill, but also because the technology to do so is proprietary.

But the homelessness crisis is worst in the big blue areas. Diversity and vulnerability are worst in the big blue. Impoverished rural areas face their own sets of challenges, but those are relatively manageable under a President who actually cares. I don't think the President will have to declare martial law, just because watching his urban enemies burn will be far more advantageous.

Blogger "William Berke" November 15, 2019 1:39 PM  


"We’re going to have a very real bust very soon. The high levels of debt that we have today have allowed the whole country to live above its means. "

He is wrong Its not because of debt its because of specific bad choices of what people do with that debt. Spending it without having a concept its value for anything other than the fear of losing out on another speculative bubble (gambling). Building houses with foreign wood products while uncared for forested land is holocaust close by. Continuing to purchase nuclear reactors on payment plans, all 501 of them around the world are privately owned and always funded & maintained by public debt contracts signed off by your corrupt representatives. It's your perception thats upside down. Satanists always project, but the glory of evil will show them all to be cuks.

Blogger Lovekraft November 15, 2019 1:45 PM  

I know it's Breitbart and its stories play on the emotions more than most sites, but this Boris Johnson revelation is either complete surrender or some 4d chess that we aren't seeing.

More immigration to the UK, called by the guy we are counting on to stop and reverse it.

https://www.breitbart.com/politics/2019/11/15/boris-declares-pro-immigration-will-not-commit-capping-it/

Blogger VD November 15, 2019 1:47 PM  

He is wrong Its not because of debt

You're wrong. It is because of debt. That's the system that broke in 2008 and hasn't been fixed since.

Blogger Damelon Brinn November 15, 2019 1:49 PM  

Small 99%-white town near me recently got a Dollar General. Everyone loves it, because the old general store and grocery store closed down a generation ago, so you had to run 20 miles to get anything or pay 3x prices at the gas station. It also provides jobs for a handful of locals, and generally seems like better than nothing.

On the other hand, there are "we take SNAP (food stamps)" signs plastered all over the store. It really emphasizes how many people here aren't making a complete living from work. It's a nice little town, people take good care of their homes, kids play in the street, all that good stuff. It pretty much looks like it did 40 years ago. But there's a level of dependency that's grown over the Bush/Clinton/Obama years that can't be healthy. These are white people who *could* take care of themselves just as their grandparents did if the economy hadn't been parasitized from afar.

I can't wait for Illinois to go bankrupt.

They've been threatening to run out of money and stop paying for services for years, but they keep disappointing us.

Blogger "William Berke" November 15, 2019 1:49 PM  

Brett baker wrote:Well, one thing was wrong. Those simple $50,000 pickup trucks? They cost $50,000 because they're no longer simple. The reason for this is FMVSS standards.

Blogger "William Berke" November 15, 2019 1:50 PM  

VD wrote:He is wrong Its not because of debt

You're wrong. It is because of debt. That's the system that broke in 2008 and hasn't been fixed since.

Why are people still using dollars to convey value?

Blogger VD November 15, 2019 1:53 PM  

Why are people still using dollars to convey value?

Because people will still accept them. That has nothing to do with what I said. You probably don't even know what Z1 is.

Blogger pyrrhus November 15, 2019 1:59 PM  

The GE had better be setting up to call out the Army, because when the current coup attempt fails, the Left's rage will know no boundaries and likely spill out into the streets....

Blogger anorganicbear November 15, 2019 2:01 PM  

Maybe he will actually start building the wall and dumping his neocon advisers? Chances he loses are pretty small, but not impossible. Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on.

Blogger "William Berke" November 15, 2019 2:01 PM  

Your right Vox, I didn't want to agree with his concept of debt. I wrote that he was right first because it doesnt matter to anybody.

Blogger tuberman November 15, 2019 2:05 PM  

pyrrhus wrote:The GE had better be setting up to call out the Army, because when the current coup attempt fails, the Left's rage will know no boundaries and likely spill out into the streets....

Hmmm. Most of these are paid to do Left revolution violence, and they have not been getting paid well lately. All of these groups have been infiltrated, and the leaders are all known. We shall see.

Blogger tuberman November 15, 2019 2:10 PM  

"Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on."

Nonsense. He is more popular then ever, and can only lose by the opposition getting away with more cheating. He will pick up more states then the last election.

Blogger VD November 15, 2019 2:12 PM  

Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on.

He'll win bigger than 2016.

Blogger Crew November 15, 2019 2:14 PM  

He is wrong Its not because of debt its because of specific bad choices of what people do

It's because of debt!

I am currently debt free. It is a great feeling. I hate debt, but women seem to think it is the greatest thing since sliced bread, even if they are earning money themselves.

I guess when they have a husband who also earns, and often times more than they do, they feel that debt is not a problem.

However, it only takes one small accident or stupid behavior and that earning capacity goes away.

There is a huge debt overhang in the US and those of us who have assets will likely find those being taken from us some time in the future to repay the debt that we did not run up. Watch out for your 401k! Governments will grab it as soon as they can!

Blogger Jay Will November 15, 2019 2:15 PM  

The modern Ark would be a gunship. That moment when they turn from mocking you, to pleading for forgiveness, and begging to be let on. And a good Christian would be fully justified in machine gunning them all down.

And yet they implanted the opposite in the good Christian that he would let anybody on, be tolerant, insuring the Ark would be sunk. But that would be the other ark, the devils fake one.



Blogger Crew November 15, 2019 2:16 PM  

Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on.

Strange. Many Americans have more money in their pockets and jobs because of what Trump has done and I am sure they elected him to do that.

Blogger "William Berke" November 15, 2019 2:25 PM  

VD wrote:Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on.

He'll win bigger than 2016.
And he will be indebted to his voters.

Blogger The Lab Manager November 15, 2019 2:29 PM  

The unemployment rate is certainly a lie, and has been under the last 3 or 4 administrations:

http://www.shadowstats.com/alternate_data/unemployment-charts

Too bad open border libertardians won't relent in their immigration for all idiocy. Trump may have done all he can as president, but it's disappointing he did not tweet opposing the recent green card give away that Dan Cuckshaw and many other Republicans voted for. With friends like that, who needs an enemy?

Linked In has had some post about the joblessness issue among professionals. Lots of angry people out there and rightfully so.

Blogger Doktor Jeep November 15, 2019 2:39 PM  

But....muh new bowtie

Blogger Latigo3 November 15, 2019 2:43 PM  

Lately, when I see these encampments, I think of Hoovervilles.
I like Trump, voted for him and will vote for him again. As it was said back in 2016, he was the elite that the people voted for. The problem though, is that certain issues have not been addressed. I am glad he has kept us out of war in Syria, but there is a part of me that thinks, is he just waiting for our military to reload? I hope not.
He is a master negotiator, but he doesn't seem to understand that you don't negotiate with these people (Schiff, Pelosi, Deep State, etc).
The Republicans, definitely bear a large amount of the blame. Sub-consciously, they stayed on the Never-Trump bandwagon. So, the House was lost and now the Senate will be lost.
If anything, the last 3 years have proven that we are ruled by one party. When we have a political class that does not have a Christian world view, then this is what we get.
In the end, I do hope that he realizes that he needs to fight.

Blogger Dark glasses Woody November 15, 2019 2:46 PM  

This comment has been removed by the author.

Blogger freddie_mac November 15, 2019 2:47 PM  

@28 The Lab Manager

The unemployment rate is certainly a lie

A co-worker had problems understanding the unemployment reports (vs. what she saw around her) until I directed her to those great economists: Abbott and Costello

COSTELLO: WAIT A MINUTE. Is it 5.6% or 23%?
ABBOTT: 5.6% are unemployed. 23% are out of work.

Blogger Ray - SoCal November 15, 2019 2:53 PM  

I agree it's really bad.

The out of control Homeless crisis in major West Coast Cities is a combination of lax drug laws, decriminalization, mental illness, 9th Court of Appeals strange constitutional rulings on homeless camping, mild climate, one party state, and throwing money at the problem.

Good informative article:
The Seven Deadly Sins of California’s Political Establishment

For a video describing some of the issues:
OMO News Special: Seattle is Dying

Blogger Latigo3 November 15, 2019 3:13 PM  

Paper money...
Makes sense. Growing up in Los Angeles, one just has to remember what things cost for some perspective. In 1972, my dad bought a 1972 Chevy Nova for $3,000 from George Mejian Chevrolet in Monterey Park. It fit our family of four. Typically, anyone that had two cars was upper-middle class. In 1975, my parents bought there first house for $33,000 (Monterey Park) and a good wage earner, was someone who made about $500 a week.
Now a similar type car costs 40k to 50k, that house if sold today would be around $505,000.
This city and this state are a mess. In a different time and in a positive manner, there was a saying that California was the trendsetter (business, govt, etc.). I am not happy for what is in store for the rest of the country.

Blogger Robert What? November 15, 2019 3:15 PM  

Would anyone obey Trump's declaration of Martial Law?

Blogger Kraemer November 15, 2019 3:29 PM  

The people on the ground would. Like the street cops and the enlisted. And they'll have both the legality and the firepower

Blogger OneWingedShark November 15, 2019 3:36 PM  

Crew wrote:However, it only takes one small accident or stupid behavior and that earning capacity goes away.
It's worse than that; given how ridiculous both the employment-system and legal-system are, all it takes is a 'layoff'/replace-you-with-H1Bs or false accusation/lawsuit to screw you over, even if you are incredibly debt-averse and naturally a saver.

There is a huge debt overhang in the US and those of us who have assets will likely find those being taken from us some time in the future to repay the debt that we did not run up. Watch out for your 401k! Governments will grab it as soon as they can!
Invest in bullets, beans, and `biotics.

Crew wrote:Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on.

Strange. Many Americans have more money in their pockets and jobs because of what Trump has done and I am sure they elected him to do that.

I am not entirely sure about this: I haven't seen much increase in my after-taxes pay. Plus, there's a lot more to consider than the "economy" — as referenced in post @5, there's a lot of ways that the system can be gamed. As a very simple example consider a city with 200 workers, 100 of which are unemployed, wherein a company comes in and opens up creating 200 jobs, but imports those 200 form other cities: the unemployment rate goes from 50% to 25%, but none of the 100 unemployed workers benefit… and that's using honest calculations.

The Lab Manager wrote:The unemployment rate is certainly a lie, and has been under the last 3 or 4 administrations:

http://www.shadowstats.com/alternate_data/unemployment-charts

Absolutely, even without manipulating the stats and definitions it's ridiculously easy to game the system.

Latigo3 wrote:The problem though, is that certain issues have not been addressed. […] He is a master negotiator, but he doesn't seem to understand that you don't negotiate with these people (Schiff, Pelosi, Deep State, etc).
[…]
In the end, I do hope that he realizes that he needs to fight.

Indeed; my biggest dissatisfaction with Trump has always been that he seems unwilling to "destroy the hopes and dreams of evil people" — his greatest strength really is being a master negotiator, but it's also his biggest weakness: what negotiation can be had between those that want to live and those who want them dead? Enslave and castrate the former? Seems like a bad deal to me.

Blogger Kordl November 15, 2019 3:40 PM  

I agree, while inflation has definitely had an effect on their price, trucks are a hell of a lot more sophisticated than they were even 10 to 15 years ago. I have a 2017 Ram now but when I was in highschool I had a p.o.s. 82 Ford 150, the engine compartment had visual gaps large enough that I could drop my wallet in and it could hit the ground without touching a single component on its way down. In my current truck it'd be a hell of a trick if I could do that with a metal bb. Thats just one aspect too, trucks have really changed substantially.

Blogger The Cooler November 15, 2019 3:43 PM  

There is a time when the operation of the machine becomes so odious, makes you so sick at heart, that you can't take part. You can't even passively take part. And you've got to put your bodies upon the gears and upon the wheels, upon the levers, upon all the apparatus, and you've got to make it stop. And you've got to indicate to the people who run it, to the people who own it, that unless you're free, the machine will be prevented from working at all (Mario Savio).

Blogger Hammerli 280 November 15, 2019 3:57 PM  

Part of the problem is a cultural acceptance of perpetual debt. People today don't think in terms of owning their home outright...because their parents didn't, either. And that "Debt is OK" mentality spreads to everything else.

Blogger Oswald November 15, 2019 4:02 PM  

This occurred to me the other day. Another way they hide inflation is by replacing an old product with a new one. The new ones always cost more than the old ones. The price of the new one would be an easy place to hide inflation. They just imply the development costs dictate the higher price. But the new products are rarely that different from the old ones. Another way, I think they do it, is by creating a new class of products like organic products. How do we really know that the organic way really costs that much more than the non-organic way. Maybe, they don't do hardly anything different between non-organic vs organic products, maybe they just had an organic sticker, but because it is a different produce they can claim a different set of production costs, but in reality maybe the costs are about the same for both organic and non-organic, but now they pay for their costs for non-organic by charging more for their organic products. In other words, they hide their inflated costs for all products by putting the costs in the organic product pricing. Just a thought. I know the government is involved in the licensing of the term organic, which makes me think they are up to their old tricks of price fixing. I know they have other ways of hiding inflation, these were just two I was thinking of.

Blogger Newscaper312 November 15, 2019 4:20 PM  

Answer is both, re organic. It doesn't just cost more to produce, it's also jacked up further because of fashion. Remember the financial view of price is cost plus some margin to ensure a certain minimum rate of return, where the economic view of the price is purely supply and demand, what the market will bear. It's only a problem when the realized latter falls below the former.

Blogger Crew November 15, 2019 5:03 PM  

High-cost (Democratic) states are frantic for money:

https://news.bloomberglaw.com/daily-labor-report/uber-hit-with-650-million-employment-tax-bill-in-new-jersey

Blogger joke10 November 15, 2019 5:09 PM  

Middle class impoverishment is typically when the guillotines start coming out. The only question is whether that'll be good or bad

Blogger Doktor Jeep November 15, 2019 5:10 PM  

My favorite fallacy of the housing bubble is the "Greater Fool" mentality. The notion that your house will always go up in value because when you sell it a bigger fool will come and pay more for it. Lots of commeupence opportunity tied into the failure of this "investment" approach.

Blogger Jandolin November 15, 2019 5:14 PM  

Your elected representatives will not do anything about it.
A new bill in the house H.R. 4916 would create a brand new underclass amounting to indentured servants

Rep. Zoe Lofgren (D-CA), Chairman of the House Immigration subcommittee, has introduced a bi-partisan H.R. 4916, a bill that would AMNESTY HUNDREDS OF THOUSANDS illegal alien farm workers and their families. I desperately need your help to stop this bill before it becomes unstoppable.

See for yourself how this truly terrible bill would:

Grant amnesty to hundreds of thousands of illegal alien ag workers and their families;

Knock American workers out of their jobs by flooding construction, manufacturing and service occupations with competition from the amnestied ag workers as they use their new work permits to move to more attractive jobs;

Inspire untold millions more illegal aliens to pour across the border.

Anonymous Anonymous November 15, 2019 5:40 PM  

@41 - They've been downsizing packaging for years now. What used be 12 oz. is now 8, at the same price or higher of course.

its because of specific bad choices of what people do with that debt

Ain't it just like a Sephardi to blame "others' bad choice" when his tribe has financialized everything and manipulated markets to drive up prices, inflating the value of their "assets" and pushing the cost of essentials out of the affordable range for working people, who now need to take on debt just to survive.

Blogger Geir Balderson November 15, 2019 5:47 PM  

Yep, and the Dems want to take the middle class money to take care of our little 'friends' on the street.

The Dems , such as Jerry Brown, ex-gov of California, take their booty as a public servant and retire to large ranches away from the misery they have caused in the urban areas. Same with Barbra Boxer and Nancy Pelosi.
https://www.latimes.com/politics/la-pol-sac-skelton-jerry-brown-20181220-story.html

Perhaps, we can relocate a large contingent of the 'homeless' to enrich his ranch with free labor and diversity. HE has been so fond of that over the years.

Blogger pnq87 November 15, 2019 5:50 PM  

Part of the reason new vehicles cost so much is the regulations demanding ever more efficiency and safety features. All the new gimmicks become part of the price. Yet the car makers are using cheaper materials to save costs. Don't count on that to lower the repair bill when that new special part breaks though.

Blogger Alexei November 15, 2019 5:51 PM  

"The people on the ground would. Like the street cops and the enlisted."

Street cops and enlisted will do as they are told by the people who pay them and/or can throw them in prison for disobedience.

The notion that somehow cops would resist a totalitarian overreach is laughable. As is the notion that they eould obey POTUS over the dictates of their Mayor.

Blogger Alexei November 15, 2019 5:56 PM  

"Maybe, they don't do hardly anything different between non-organic vs organic products"

They don't

"maybe they just had an organic sticker"

They do.


Blogger Sargent.matrim November 15, 2019 5:58 PM  

I talked about this in a sermon a couple of weeks ago. The whole economy is a tinder box. I read your book on the Return of the Great Depression, I think about in 2010. It was the book that convinced me that debt is to be avoided at all costs.

So many people I know are indebted to their eyeballs. It's not going to be pretty when mass recession sets in.

Not pretty at all.

Blogger Azure Amaranthine November 15, 2019 7:04 PM  

"Politics is war by other means."

All war is via logistic strangulation.

Blogger Meanoldbasterd November 15, 2019 7:08 PM  

This ^, otherwise we'd all be speaking carthaginian after Cannae

Blogger Kevin November 15, 2019 7:22 PM  

I know two people at work that are moving into RV's because they can't afford rent and it's cheaper.

Blogger Avalanche November 15, 2019 8:15 PM  

@5 "And a lot of these people are vying for "entry level" jobs which, oddly, have things like 5-, 7-, even 10-years required experience."

I read in passing, hence do not remember the name of the programming language, but the job advertisement required "5 years of experience with programming language xxx...." which has only existed for THREE YEARS!

That WOULD cause mental illness and drug use!

Blogger Monotonous Languor November 15, 2019 8:40 PM  

Quantitative Easing: creating new monetary debt out of thin air, for the express purpose of paying off interest due on all the old debt already in extent.

Is there an exponential asymptote looming sometime in our future?

Blogger "William Berke" November 15, 2019 9:14 PM  

This comment has been removed by the author.

Blogger Azure Amaranthine November 15, 2019 9:54 PM  

"Quantitative Easing: creating new monetary debt out of thin air, for the express purpose of paying off interest due on all the old debt already in extent."

"We made you chains longer, and thereby heavier."

Blogger OvergrownHobbit November 15, 2019 11:35 PM  

I appreciate the article, Vox Day. It is interesting enough in its own right, but it alsocontained within it a true gem.

The Romance of the Three Kingdoms

here: https://youtu.be/GcZ2zq82ebA?list=PLQgby8Rb0ImEP4108x04Feg2dBvuDADJG)

A suggestion for your nascent movie empire / Unauthorized TV. Leverage your Castalia audio book voice actors, Mr. Benjamin et al. And produce a dubbed version.

Either way: Thank you.

Blogger R Devere November 16, 2019 1:05 AM  

"Maybe he will actually start building the wall and dumping his neocon advisers? Chances he loses are pretty small, but not impossible. Given the lack of doing anything his electorate actually elected him to do, it wouldn't be entirely surprising to lose some of the swing states he depends on."
======================

Nice try, shill/troll-bot! problem with you is your schick is far too obvious! Now, go back and try it again,with something more realistic....

Blogger map November 16, 2019 2:20 AM  

Latigo3 wrote:Paper money...

Makes sense. Growing up in Los Angeles, one just has to remember what things cost for some perspective. In 1972, my dad bought a 1972 Chevy Nova for $3,000 from George Mejian Chevrolet in Monterey Park. It fit our family of four. Typically, anyone that had two cars was upper-middle class. In 1975, my parents bought there first house for $33,000 (Monterey Park) and a good wage earner, was someone who made about $500 a week.

Now a similar type car costs 40k to 50k, that house if sold today would be around $505,000.

This city and this state are a mess. In a different time and in a positive manner, there was a saying that California was the trendsetter (business, govt, etc.). I am not happy for what is in store for the rest of the country.


This is all a consequence of getting off the gold standard in 1973. A Chevy Nova in 1968 ran around $2,600 and gold was $35/oz. This is a standard middle-class car. At $1,469/oz, what would that Nova cost today? Roughly $109,000. Cars today, like other manufactured products, are severely under-priced so that manufacturing cannot generate a return on its capital investment. What's worse, such products are depreciating assets that no one will pay that kind of premium for.

Look at what happened to the Nova in 1975. Two years afetr going off the gold standard, a Nova that sold for $2,600 should have sold for $10,000. Unable to move the car at that price, they had to build junk...which is why 70's cars are such crappers.

What has kept up with the gold price? Real estate, education and healthcare. Wages have not. Financialization for the purpose of hedging against currencies cut labor productivity by half, from 2.8% growth to 1.4%.

Then yu have to factor the destructiveness of the Federal Reserve, which crashed both the Nasdaq in 2001 or so and the housing market in 2007.

Blogger John Rockwell November 16, 2019 3:44 AM  

OvergrownHobbit wrote:I appreciate the article, Vox Day. It is interesting enough in its own right, but it alsocontained within it a true gem.

The Romance of the Three Kingdoms

here: https://youtu.be/GcZ2zq82ebA?list=PLQgby8Rb0ImEP4108x04Feg2dBvuDADJG)

A suggestion for your nascent movie empire / Unauthorized TV. Leverage your Castalia audio book voice actors, Mr. Benjamin et al. And produce a dubbed version.

Either way: Thank you.



Original 1994 Version. More accurate:
https://www.youtube.com/watch?v=0_r3eWfTMDs&list=PLdAMXqGeRsOkXzuocRkBPhe5RhZ6RotGH

Of course the battles are just meh. The strategies however are more in line with the books.

Blogger steb November 16, 2019 4:49 AM  

I genuinely used to worry that the next collapse would happen under a Trump presidency, because I thought that would mean people would blame the collapse on right wing politics, which would make it harder to argue for them in the future: that's how trivial I thought it was going to be. Now I just hope that whoever's in charge when it happens will be someone who at least tries to keep the lights on.

Blogger John Rockwell November 16, 2019 5:51 AM  

Genghis Khan executed men who turn traitor too easily of his enemies without an adequate excuse.

Because he knew they cannot be trusted.

Blogger rumpole5 November 16, 2019 9:35 AM  

Re: "He'll win bigger than 2016.And he will be indebted to his voters." It's really our only chance.

Blogger Boomer55 November 16, 2019 9:35 AM  

@map
"This is all a consequence of getting off the gold standard in 1973."

I still think this a symptom rather than a root cause. All the RNC advertising about "deregulation" and "pro-business" policies have excluded the bipartisan increases in real government spending since 1940.
We've gone from about $2000/person in 1940 to $21000/person, in 2012 adjusted dollars.

http://usgovernmentspending.com/spending_chart_1940_2024USd_21s2li011mcn_F0t

The rate of taxation needed for this spending is simply intolerable to the electorate, but no one with any real say wants to do anything about it.

Blogger Tars Tarkas November 16, 2019 9:56 AM  

While I don't necessarily disagree, I recall a video I saw of Doug Casey in 1980 making similar claims.

https://www.youtube.com/watch?v=easuUdhW4X0

This was right around the peak of the gold/silver bubble during this time and he's warning of the impending dollar collapse and the need to buy gold/silver. IIRC, this was filmed after the election, but before Reagan took office.

Blogger Tars Tarkas November 16, 2019 10:12 AM  

Boomer55 wrote:We've gone from about $2000/person in 1940 to $21000/person, in 2012 adjusted dollars.

We have more or less been on a war footing since around 1940. Even accounting for inflation, the US never again reached anything close to pre-war military spending after the cessation of hostilities.

The real takeaway of the closing of gold convertibility in the early 70s is to recognize that they will change the rules if the rules start hurting them. People imagine that X happens and then we going into a future where X is the only thing different. If X is sufficiently damaging, you can rest assured that L (laws/regulations) will be changed so that X is not as bad.

Blogger Boomer55 November 16, 2019 10:25 AM  

@69 There is one positive aspect to this, is that the Executive Branch has been using the "Corporatist" model commonly seen in countries like Austria. It was unheard of before Trump, that he would lean on large companies like Apple to get the manufacturing away from China. It was a given that the "free market" would mean everything is made in China!

Blogger Gettimothy November 16, 2019 11:31 AM  

My heart breaks for my people.

Blogger Pathfinderlight November 16, 2019 12:13 PM  

I have relatives in California. They know about "Republicans" claiming California has a homelessness problem. To them, this is disproven because the homeless of San Francisco can't be seen in San Jose, and the homeless of Los Angeles can't be seen in La Jolla.

They are a family of 5, cramped into a house similar in size to what a Tennessean who makes an average wage has. They make six figures, and have issues with paying bills still. Imagine that, they personally KNOW it takes over 100k to live a middle class life in California, but have no understanding of what that means to others.

Blogger Ominous Cowherd November 16, 2019 1:56 PM  

Tars Tarkas wrote:The real takeaway of the closing of gold convertibility in the early 70s is to recognize that they will change the rules if the rules start hurting them.

Rules are for peasants, not for rulers.

Blogger map November 16, 2019 4:53 PM  

Boomer55 wrote:I still think this a symptom rather than a root cause. All the RNC advertising about "deregulation" and "pro-business" policies have excluded the bipartisan increases in real government spending since 1940.

We've gone from about $2000/person in 1940 to $21000/person, in 2012 adjusted dollars.


Well, you are not wrong...

The US was cheating on the Bretton Woods system. The US was supposed to maintain the dollars value at $35/oz and the rest of the world would fix their currency to the value of the dollar.

Because of the Great Society programs and the Vietnam War, the government ordered the Fed to print money while keeping the dollar at $35/oz. Well, you could not both.

What is interesting is this: because Americans could not own gold in say, 1965, the US inflationary policy was showing up in Europeam currencies. The French and the Spanish noticed this...so they exchanged their dollars for physical gold. This was going on for years. It is the source of the "speculators" charge that Nixon concocted and that got him to remove the gold standard.

Btw, do you know who advised Nixon to get rid of the gold standard? James Tobin and Milton Friedman.

Blogger rumpole5 November 16, 2019 6:18 PM  

The cars then were junk. If you got 100K miles you were lucky. A car now can go 300 K miles. It is not similar to the '75 version. Also, A dollar now is worth what a dime was then. That $3,000 is equal to $30,000 in todays worthless dollars. Keep your current $50,000 car for 300 K miles, and you are only paying $17,000 for a car comparable to the 100 K '75 junkmobile. Also, you have to divide that 2019 $17,000 by 100 to get a comparable 1975 dollar value. Your current car therefore only costs $1,700.00 in 2019 value dollars if you drive it for the life of the car. The new car now is a better deal than the new'75 junkmobile.

Blogger Tars Tarkas November 17, 2019 10:20 AM  

@75 In reading your post, I thought it didn't sound right.
From consumer reports:
(www.consumerreports.org/) says the average life expectancy of a new vehicle these days is around 8 years or 150,000 miles. Of course, some well-built vehicles can go 15 years and 300,000, if properly maintained


Most cars with very high mileage are younger than average. Age alone kills cars along with miles. This is especially true if you live near the ocean or in a place where it snows a lot.

The older cars were easier and cheaper to keep on the road in their old age. Replacing fairly minor parts in modern cars can cost more in labor than the car is worth. The older cars were built with serviceability in mind. Modern cars really aren't.

Blogger Ominous Cowherd November 17, 2019 10:42 AM  

@75, modern materials like bearings and oil make a big part of the difference in how long modern cars last. Not rolling back odometers on modern cars is another big part. Old cars weren't junk, though modern engines do last significantly longer. Slap a rebuild in that old '72 and it's good for another 200,000 miles.

The $3,000 car in '72 was about six weeks pay at $500/week. The $30,000 car today is around 24 weeks pay. Today's car costs four times more, yet won't last even three times longer. If the old car was junk, the new car is overpriced junk.

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