Face Hugs

An engagement with this (extraordinarily interesting) monetary analysis isn’t going to reach any kind of remotely convincing state tonight. Perhaps I can buy people off for a while with a few of these:


It actually says pretty much everything that needs to be said, in compressed form.

There’s an additional Weiner post of special relevance here. (His definition of inflation as ‘counterfeit credit’ does a lot of theoretical work, very quickly.)

October 23, 2014admin 13 Comments »


13 Responses to this entry

  • Keith Weiner Says:

    Thanks for the mention and links.


    Posted on October 23rd, 2014 at 4:00 pm Reply | Quote
  • jatli Says:

    Daily reminder that Chomsky once described political correctness as ‘the healthy expansion of moral concern’.

    This is probably nowhere near an appropriate place to drop this one, but I just ran across it and just went ‘huh, yep, that totally makes sense now that he would say that.’ Had to share with someone.

    Overly impulsive? Perhaps. But I’m 8 coffees into my last semester, damn it.

    inb4 notyourblogfaget

    Just to make this even tangentially related to the post, I suppose the malevolent little Lovecraftian penis-demon that bursts out of Lincoln’s gut would be a welfare recipient, in this scenario?


    Alrenous Reply:

    >inb4 notyourblogfaget

    ProTip: chaos patch.


    Posted on October 23rd, 2014 at 4:15 pm Reply | Quote
  • Chris B Says:

    Weird that everywhere I look in nRX at the moment I find everyone knee deep in Complex Adaptive Systems.


    Posted on October 23rd, 2014 at 4:39 pm Reply | Quote
  • vxxc2014 Says:

    Here are 3 Humble attempts to explain the 2008 Liquidity Squeeze in Layman’s terms. Liquidity does not mean ample money on hand or money supply, not anymore.

    Correct as necessary. Remember it’s for Laymen.

    The point is to understand the Financial Crisis of 2008.

    #1–Here is the boiled down metaphor.

    “Put in simple terms, the Financial Crisis was between Bookies not Bettors, on their own hyper-extended point spreads. They couldn’t get other Bookies to cover their bets because they were too risky. “

    I asked this of a smart economics major engineer I work with and was told “Yes pretty much on point.”
    =========== #2
    Or let’s try this: this can also be seen as a combination gambling insurance scam where they began to insure each other’s bets with their suckers paid up nice people insurance company funds for their side business of gambling with the companies deposits. The insurance pool was both common and again it was never on the original pony’s racing but the POINT SPREAD. As they began to bet over and over again on ever smaller fractions of that same pony’s over/under spread their margin for error got ever smaller. And as they were all in it together when it got too scary nobody could lay off each other’s bets on each other, none would touch it. Because no one would touch this toxic waste the betting and hence money flow stopped.

    As the banks/insurance companies are the ones who lend to businesses the flow of money for commerce/business stopped.

    **At this point sane people might ask the reasonable question: if you need money loaned over night to you every night then paid back at the end of each business day then loaned out again that night, every day and every night is your business plan solid? If you’re wondering what I just described** I’ve just described what is referred to as **REPO, or the overnight loan market.**

    Because the flow of constant revolving loans/REPO stopped, business credit and hence business dried up. It wasn’t the deadbeats it was the shitty bets between the bankers and their insurers.

    Or let’s try this: every day you take your Mother’s Silverware to the pawn shop and get money and a slip. You need the money to get next day’s gas money to get to work and you need the slip to reclaim Mom’s Silverware. You use the gas money to go to work. Every day at the end of the day you get paid and take the money back to the pawn shop to buy back Mom’s silverware. Then you get another pawn shop slip next morning and more gas money. Over time you realized it makes more sense to leave the Silverware there and just keep moving the money and pawn shop slips of your daily payday loans lifestyle back and forth.

    But your Boss is a prick and when you get sick and miss a day you can’t pay the pawn shop and get the slip, so even when you recover you are still behind. But see the entire neighbourhood is living the same life you are and as the Flu goes round more and more silverware piles up at the pawn shop. And even the scumbag pawn shop owner can’t unload all that Silverware and other crap fast enough to cover his overhead [it turns out he has a gambling problem himself].

    Worse still all those pieces of paper of pawn shop slips – well it seems the neighbourhood gamblers saw a business and gambling opportunity with those pawn shop slips and started renting them daily to the working man and then betting with them as collateral then if they won giving them back to the working man for extra spare change [most people know this as home equity loans].

    If this seems too complicated then I’m afraid you just can’t grasp modern Finance. ç Sarcasm.

    You might however grasp that this is all clearly a series of scams that were used as collateral – YES THE SCAM IS THE COLLATERAL – for a Hundred Trillion Dollar gambling ring that collapsed when just 3% of the neighbourhood caught the Flu and missed a couple of days of work.

    So remember the reason there’s no work is you deadbeats caught the Flu and missed work. It’s all your fault. Now the Sheriff is here to repossess your home. It’s your fault dead beat. ßSARCASM.



    Posted on October 23rd, 2014 at 6:29 pm Reply | Quote
  • Rasputin Says:

    I thought the monetary analysis was clear and compelling, the case for open boarders less so:



    Erebus Reply:

    I’m with you on that one.

    Starting a treatise with hyperbole and misplaced rhetoric….

    “[…] suppose you are in a place where life is a living hell. Every day, you are forced to beg and steal scraps of food to somehow stay alive. The best you can hope for is to subsist, one day at a time. You must avoid the gangs and the secret police.

    If you could somehow scrape together the money to escape to America, would you?”

    ….Makes an extremely poor foundation for any argument.


    Aeroguy Reply:

    Some say it’s just exporting people away from a problem, but we’re not allowed to suggest that the people ARE the problem. The belief in equality causes economists to treat people as fungible when they’re clearly not.


    Aeroguy Reply:

    There’s a city builder game called Tropico (I’ll talk about the fourth one) where you’re dictator of a banana republic. The game is fun to play and has good humor but there is plenty of prog thinking in the mechanics of the game. Intelligence is randomly allocated but only gets increased if they attend elementary school. You can have immigrants but the only way they’re different is that they start out unskilled, don’t have the benefit of the elementary school intelligence buff and the nationalist political group doesn’t like them, but their children are 100% assimilated. Everybody is catholic, everybody speaks spanish, they have their randomly assigned political bents and tastes (which can also be affected by buildings), but other than that they are completely fungible. So long as you have open jobs immigrants are hugely beneficial.

    Crime manifests entirely as a form of social anxiety and is caused entirely by population density and certain buildings, but drugs, black markets, murder (unless you count rebels fighting the military and player directed secret police actions), and gangs (unless you count rebels which are dealt with by the military and the only thing the military does other than make the militarists political faction happy) are non-existent. Rebels are caused by insufficient social services and unemployment.

    Institutions and the mechanics of the game itself are left untouched and stable. This aspect is something that far more than just video games ignore.


    Posted on October 23rd, 2014 at 7:32 pm Reply | Quote
  • Face Hugs | Reaction Times Says:

    […] Source: Outside In […]

    Posted on October 23rd, 2014 at 7:52 pm Reply | Quote
  • Aeroguy Says:

    I was driving through a small town the other weekend and saw a pile of box stores on the way through. I thought to myself, I wonder what the industry in this town is, I think it used to be a mining town but the mines would have been long since cleaned out. To a keynesian all that town would need is a bank to supply credit so that the box stores I saw could remain in business. To the keynesians everything is about credit, while for the austrians everything is about wealth. A keynesian sees nothing wrong with just expanding credit indefinitely, getting a loan is just as good making something. Sure what ends up happening is that the bank owns your house, your car, your mattress, your tv and just lets you borrow all these things the bank owns. For my generation, this typically is even worse as the bank also owns the universities where acquiring the necessary credentials to work typically require indentured servitude, and if you want to be able to borrow any of the nice things the bank owns, you have to be a productive servant.

    Businesses taking out loans and paying interest for the privilege of being invested in so they can be more productive is how credit is supposed to be used. Institutionalized consumer debt where the middle class must pay interest on the privilege of being able to start a family while they’re still fertile is theft and madness.

    If our debt slaves were productive by means of producing actual wealth the system would at least be stable. However in a world where financing is God, the entire structure of the economy is focused on the production of credit rather than the actual production of goods and services. The crash in 08 was a hiccup in the production of credit and was Mammon trying to do us a favor by destroying this over expansion of credit so that the economy could be reallocated back to goods and services. But the credit industrial complex has a firm hand on power and used that power to steal from the wealth producing sector of the economy to continue its expansion. The credit industrial complex is a cancer that is killing the economy.


    Posted on October 23rd, 2014 at 9:22 pm Reply | Quote
  • Bill Says:

    OT: your former students are ranked the sixty-eighth most powerful entity in the art world, (what does that mean?): http://artreview.com/power_100/quentin_meillassoux_graham_harman_ray_brassier_iain_hamilton_grant/


    admin Reply:

    Harman and Meillassoux aren’t my peeps, of course.


    Posted on October 24th, 2014 at 3:19 am Reply | Quote

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