Revolution Blog

From time to time, the operators of this site may wish to comment on current events, or make announcements about happenings in the revolution to end slavery (again). This is our place to do this.
Published on 2011-11-23
A Modest Proposal

Someone in the UK is floating a trial balloon concerning cannibalizing the gold reserves of Euroland nations in order to give credibility to their future bond issuance:

Could gold-backed bonds be the answer to the eurozone crisis?(external link)

The interesting bit here is that gold is explicitly recognized as the "asset of last resort," something the mainstream has been reluctant to do up to this point. Remember Fed Chairman Bernanke's testimony that he did not consider gold to be money? He did however reluctantly admit that it was still considered a reserve asset, and that notion is resurfacing here.

Actually it's not surprising that the credibility of gold would be invoked to bolster efforts to salvage the crumbling euro. Whatever it takes to reduce opposition as the United States of Europe is rammed down the throats of the public. Here's an article describing what's going on, and admitting just how frankly undemocratic the whole thing is:

Eurozone crisis: European Union prepares for the 'great leap forward'(external link)

Quite apart from the Maoist connotations of a 'great leap forward,' Lucas Papademos is an ex-GSax guy who was responsible for leading Greece into the euro to begin with (or more accurately, sneaking it in after GSax helped them cook the books). Mario "Full" Monti is another GSax alum who, according to the article, hasn't bothered to include a single elected official in his new Italian cabinet. Whose interests should we suppose they are serving?

An unnamed "senior EU official" (probably someone like Hugh Jim Bissel) actually offered up this very revealing bit of tripe:

"We have seen democracies outstripped by the markets, which have forced decisions on elected governments. So that democratic freedom has been curtailed. How do you respond? Do you let that continue, or do you move towards stronger economic governance? And which is more legitimate, the rule of the markets or economic governance by representative institutions in which governments have a say?"

Well there you have it, folks. Markets and democracy are antagonists, and by golly he wants "democratic freedom" to come out on top. No amount of regulation or power-grabbing or pillaging is off limits to make that happen. Funny how his prescribed solution leaves no room for popular approval, though. It's quite ironic that occupation by the Soviets is invoked by EU technocrat José Manuel Barroso as a ghost bogey for comparison purposes.

Here's hoping the globalists in Brussels don't manage to parlay the current crisis into more power for themselves. They understand clearly that crisis equals opportunity. Consider these quotes from EU "founding fathers":

"The size of the solution has to be in proportion to the problem we're solving." — Robert Schuman

"People are ready to change when they understand there is no alternative." — Jean Monnet

That, of course, is what they want everyone to think. Redistribute a letter 'n' from one of these gentlemen to the other, and you'd have two genuinely creative geniuses.

Meanwhile across the Atlantic, Germany is being pressured to give up its bleating resistance to mortgaging its economy in order to save the euro:

Germany's Inflation Fetish Is A Major Global Economic Threat(external link)

Germans apparently have a hangup — derided as a "fetish" — about inflation, which is making Germany more dangerous to global stability than Iran or North Korea. Incredible language, replete with semantic bludgeons! Of course, the politicians who borrowed and spent their way into debts that whole future generations of serfs couldn't possibly pay off, deserve no portion of responsibility for the fact that their interest rates are now going up. It's all the fault of those damned bond traders, and recalcitrant politicians with hangups who just don't get it. Reason and reality are whipped together from the temple.

Published on 2011-11-18
Customers Keeping Their Doggies Moving Gives the Banksters Raw Hides

In this time of dissatisfaction and protest, you can try to occupy banks or public buildings, and possibly get teargassed by the police(external link). Or, you can take your money out of the banks and watch them get hurt instead.

There's a national movement afoot to punish the "too-big-to-fail" banks, known as Move Your Money. During the month of October, a very impressive 650,000 customers moved a total of $4.5 billion out of these big-name banks. The funds mostly went into smaller local banks and credit unions. Of course due to fractional reserve leverage, the pain of shrinking deposits is magnified at least 10 times. As noted in a previous post, plenty of people are also embarking upon "strategic default," that is ceasing to pay on their mortgages even though they might have the money. HSBC took a $1.8 billion charge on their books last quarter for "loan impairment charges."

Internationally, the picture is similar. The Fed was recently hit with withdrawals of $83.3 billion just on November 2nd, the largest withdrawals coming from its deposit accounts. This single day removal was the largest since February, 2009. This essentially amounts to a run on US Treasury Bonds by angry foreign creditors, sick of being cheated by US inflation.

If you're ever inclined to believe, or if you ever hear anybody say, that agorism(external link) couldn't possibly work to increase freedom, just think about what a tiny fraction (not even 1%) of the public is accomplishing here. What if those 650 thousand citizens stopped using banks altogether? What if they began using cash, threw away their plastic cards, and then moved up to digital cash(external link)? What if 650 thousand taxpayers who owed a payment at the end of the year all told the IRS they weren't going to pay, absent collection action? How long would it take the IRS to process that many levies and garnishments?

Now consider what if 650 thousand people became 6.5 million people? Or 65 million people? Even 65 million is only about a fifth of the US population. While that's not nearly enough to outvote the other four fifths, it's certainly enough to bring the tyranny and exploitation to a halt, purely on practical grounds.

It really is true that we, the productive, the customers, the market, can all vote with our money every day, not just once every two years. Since this is the case, why all the focus on politics? If you want to get rid of the bastards, step one is to stop doing business with bastards.

Published on 2011-11-12
You'd pay to see it if it wasn't free!

In just about a week since our last post, the Euro zone debt crisis has worsened significantly. Greek PM Poppin-Fresh-Dreo is out. Italian PM Burlesque-oni is out. MF Global has ceased operations, with hundreds of millions still missing from customer accounts, and stiffing JP Morgan into unsecured creditor hell.

Italy's bond market is hitting the same wall(external link) that Greece's did, except that Italy is much too big to bail, and everybody knows it.

Lest there be any doubt as to the general character of the people in charge, have a look at this chart of actual remarks made by Euroland leaders to or about one another:

Euro Trash Talking
Euro Trash Talking

Really! These people could be construed as failures as human beings, much less as important "leaders" of millions of other human beings.

All is not sweetness and light back in the USA, however. Jefferson County, which includes Birmingham, Alabama, has just filed for the largest municipal bankruptcy(external link) in history. Again, JP Morgan stands to be a big loser here.

In other news, HSBC has recently needed to take $1.8B in "loan impairment charges" just last quarter, as large numbers of mortgage customers simply stopped making their payments. There comes a point at which, if enough of the "99%" do this at the same time, the "1%" will be absolutely helpless to do anything about it. No need to occupy Wall Street, just occupy your home and stop paying them.

In sum, MF Global and Greece look to be only the beginning.
Published on 2011-11-02
A major Wall Street trading firm, MF Global, filed for bankruptcy on Monday 10/31. Headed by Jon Corzine, former Goldman CEO and ex-governor of New Jersey, the firm was a major player in the global derivatives market, and specialized in proprietary trading (i.e. trading their own book). It seems they got on the wrong side of multi-billion dollar bets in PIIGS debt instruments. (Boo hoo, was there ever really another side to that bet?)

Furthermore, it appears that while in the throes of a severe cash crunch, the company succumbed to the temptation to cannibalize customer client accounts, which is a big no-no:

FBI to probe MF Global's use of client money(external link)

Speaking of PIIGS debt, the pig in charge of Greece, Prime Minister Papandreou, has grown so frightened of his own voters that he is no longer willing to try to force austerity measures down their throats. Instead he is, incredibly, submitting the grand bailout plan recently agreed among the uncrowned heads of Europe not only to a vote of confidence in Parliament, but to a public referendum as well! Undoubtedly the rioters and occupiers will approve that, probably right after the USA elects the late Harold Stassen President (never mind Ron Paul). Which suggests Papandreou mainly wants the deal exploding and Greece defaulting to be someone else's fault. Yessir, it's all about plausible deniability when the fecal missiles start impacting the rotating blades.

The globalists, the predators in government and finance, are watching it all spiral out of control just as they were closing in for the kill. They want a United States of Europe and have been assiduously beating those drums for decades. And yet they're much more likely to get an Untied States of Europe first. (Dyslexia is a bitch.) The elites are marching in one direction and the world is marching in the other. The gap is becoming too big to straddle, as Papandreou has discovered.

Those who will assume the unraveling is all part of some master plan behind all the plans, are falling prey to the same Hayekian knowledge fallacy to which the Fabian predators are original subscribers. Perfect knowledge to foresee and anticipate all events and consequences does not exist. Brittle overreaching systems thrash ever more wildly as one crisis remedy precipitates another crisis, in ever-quickening succession. Today their insider clique firms are imploding and their career politicians are running scared. While we can logically expect opportunistic responses, it's difficult to believe there's an overall script being read here.

The question before us is not how to topple the state; it's toppling of its own rotten weight just fine without any help. The question is how do we get out from under? To this end, we need to build an alternative agorist economy. And quickly. Will we be ready for prime time when the wheels really come off in a couple more years? Every day's news increasingly suggests that we don't have nearly as much time as we may have thought.

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