Quote note (#218)

Libertarian in genesis, but strategically sound:

“… those who consider themselves modern American revolutionaries often envision manning barricades and mass revolt as the undoing of the government. That attacks the government at its greatest strength — its capacity to use force and violence. The US government has at its disposal the most potent military and surveillance capabilities ever assembled. … […] The idea that some sort of mass movement will rise and by force of its inferior arms throw off the yoke of oppression is the stuff of weak novels, not a real life strategy that has a chance of success. Those who buy into it and attempt implementation commit the biggest strategic failure: they have fooled themselves. Consequently, their enemy — the government — profits. It uses their failure to justify further tyranny and repression.

There is surprisingly little written about attacking the government at its weakest point: its financial dependence … An offensive would require a mass movement far less massive than that required for armed revolt, and its tactics would be legal. A few million simultaneous phone calls and requests via websites for the withdrawal of balances from banks, money market funds, and stock and bond mutual funds would precipitate a financial panic. None of those institutions keep enough cash on hand to meet a tsunami of redemption and withdrawal requests. They’d have to sell their assets to raise cash. The prices of those assets would drop, begetting further selling; negative crowd psychology and wealth effects would kick in as markets crash, and debt and economic activity would contract.

The biggest loser in all this would be the government. As prices for bonds drop, interest rates rise, increasing its debt service. As economic activity contracts, tax receipts drop, safety net spending rise, crony capitalists must be bailed out, and deficits expand. Except for interest on government debt rising (it was perceived as a safe haven) all of this happened during the last financial crises. A massive increase in government debt and central bank debt monetization forestalled complete disaster last time. Even some of their proponents admit that those palliatives are now exhausted. During the next crisis, interest rates will rise on government debt to reflect its increasing credit risk. […] Which will leave the government confronting, and being defeated by, one of its biggest whoppers: that the pieces of paper and computer notations its Treasury and central bank generate ultimately have value after decades of determined efforts to depreciate them. They’re simply pieces of paper and computer entries, and eventually they’re not going to buy any groceries for all those warriors and police the government’s counting on, or for anyone else. Currencies collapse just before governments do; witness Venezuela, with its Bolivar and its government in extremis.

This outcome does not require a plan; it’s going to happen. Indeed, it’s already happening.

When something is falling, push — but push intelligently. The fetish for popular violence among certain factions of the Alt-Right is simple idiocy. If a populace is still docile enough to support government deficit spending, it’s not going to be waging a guerrilla war anytime soon.

February 9, 2016admin 40 Comments »
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40 Responses to this entry

  • Different T Says:

    Increasing the economic and financial literacy of NRx would likely result in much better predictions.

    But likely leads to the outcome of finally… kissing the ring.

    [Reply]

    Ahote Reply:

    Um, you seem to have missed the web address. ThinkProgress is over there, this is Outside In.

    Now, insults aside, are you aware that Austrians are, as Mises himself, nihilists as far predictions are concerned? They simply don’t believe predictions qua predictions are ever possible. You can, of course, intuit something, you can indeed intuit much, but you can never EVER do in economics what you do in engineering, so that is all that it is – intuiting. No predictions, OK? While Austrians regard the aim of an economist to understand and to explain the laws that govern the market process, aim of “empiricists” is to make correct predictions. So let it go already, you are becoming obnoxious.

    [Reply]

    Different T Reply:

    this is Outside In.

    The place that cherishes capitalism because it misunderstands Capital (though, to be clear, this sentence is not directed at Nick Land. Which is exactly the reason “kiss the ring” is directed at Land).

    You can, of course, intuit something, you can indeed intuit much, but you can never EVER do in economics what you do in engineering, so that is all that it is – intuiting. No predictions, OK?

    I did not know that. “The biggest loser in all this would be the government” sure appears to be a prediction to me. I’ve seen many Austrian lecturers, and they certainly make what, again, appear to be predictions all the time. Usually something about the “misallocation” of resources.

    While Austrians regard the aim of an economist to understand and to explain the laws that govern the market process

    Dunno if this is the case, it may well be. But actual Austrian subscribers do a piss-poor job of separating their “economist” selves from their “political activist” selves.

    And they have terrible “intuitions.”

    [Reply]

    Ahote Reply:

    >“The biggest loser in all this would be the government” sure appears to be a prediction to me.
    And ZeroHedge is QJAE how exactly?

    >Usually something about the “misallocation” of resources.
    Why don’t you actually read some Austrian literature. You may get to understand what misallocation means, and the context in which it is used. You also seem to lack the understanding of the word “prediction.”

    >Dunno if this is the case, it may well be. But actual Austrian subscribers do a piss-poor job of separating their “economist” selves from their “political activist” selves.
    Libertarian ≠ Austrian economist
    Admittedly though, libertarians tend to be too cautious and overly pessimistic.

    >And they have terrible “intuitions.”
    Have actually read A Viennese Waltz Down Wall Street? You think that a couple of goldbug videos you have watched on YouTube means you know Austrian economics? Please.

    Different T Reply:

    And ZeroHedge is QJAE how exactly?

    Not sure who you think said that it was. The article certainly does appear to be massively correlated with the perspective of Austrian’s (hence its linking here and admin’s description as “strategically sound.” If you disagree that it is representative of the Austrian perspective, could you link something that is more representative?

    Why don’t you actually read some Austrian literature. You may get to understand what misallocation means, and the context in which it is used. You also seem to lack the understanding of the word “prediction.”

    Maybe you’re right (except about the “prediction” part). As far as I understand “praxeology,” there aren’t any major disagreements.

    However, when AE starts “intuiting” and providing a historical accounting of past events, there is much disagreement.

    Libertarian ≠ Austrian economist

    The format is a little strange but, “Austrian economists=Libertarian” seems extremely close to accurate (granted, if you know of any rare birds, their names would be appreciated).

    Ahote Reply:

    >However, when AE starts “intuiting” and providing a historical accounting of past events, there is much disagreement.

    /facepalm/

    Oh I see. You guys have been doing great past hundred years. Just great. You have eliminated recessions and boom-bust cycles for all eternity. Full employment is just around the corner. Economies around the world are blooming. There are no problems whatsoever, everything is posh!

    Different T Reply:

    Oh I see. You guys have been doing great past hundred years. Just great. You have eliminated recessions and boom-bust cycles for all eternity. Full employment is just around the corner. Economies around the world are blooming.

    It does appear Capital has done great the past 100 years and the West has dramatically increased their material standard of living, and some economies around the world have dramatically diversified and become something other than super cheap labor.

    That said, it is not wise to assume any disagreement with AE means the other party must be some Fed-worshipping, New Deal-loving prog.

    Or even that they assume all of this material growth is by definition “beneficial.”

    Or that they believe the majority of “economic problems” have policy solutions (including “blowing up the system,” which is only a very strange policy).

    Ahote Reply:

    >That said, it is not wise to assume any disagreement with AE means the other party must be some Fed-worshipping, New Deal-loving prog.

    “I’m not a progressive. I just think that progressives happen to be right.”

    [Reply]

    Different T Reply:

    “I’m not a progressive. I just think that progressives happen to be right.”

    No. It appears Austrians are so impotent and afraid of power (hence their creation of the NAP) that they refuse to understand how sovereign money systems work (their incentives, operations, and goals).

    [Reply]

    Ahote Reply:

    >No. It appears Austrians are so impotent and afraid of power (hence their creation of the NAP) that they refuse to understand how sovereign money systems work (their incentives, operations, and goals).

    “I have no idea what Austrians actually say, so I’ll just bluff, strawman, and ad hominem my way through.”

    Look, you’ll get nowhere on this part of the Internet by advocating Cathedral economics (which is obscene in its insidiousness I’ll grant you that). Every so often some prog, like yourself, comes along and tries to “enlighten” us, whether on global warming, race or now apparently economics. I don’t know why, but that’s how it is. It’s all probably just concern trolling.

    Different T Reply:

    “I have no idea what Austrians actually say, so I’ll just bluff, strawman, and ad hominem my way through.”

    Can you point to what you consider examples of my “bluff,” “strawman,” and “ad hominem?”

    Every so often some prog, like yourself, comes along and tries to “enlighten” us, whether on global warming, race or now apparently economics. I don’t know why, but that’s how it is.

    Minus the defensive projection of “prog,” you may be correct. My reason is to observe the reaction of Land’s followers on the long shot that Land actually puts in the work to understand the Cathedral and “kisses the ring.”

    So, here’s another “bluff”…

    Can you point to anything deduced from praxeology (not Austrian Ethics) that says a strong entity is not able to assert itself to influence a weaker entity?

    Ahote Reply:

    >Can you point to what you consider examples of my “bluff,” “strawman,” and “ad hominem?”

    Huh? It’s all you ever did this entire time! This entire time you haven’t managed to convey anything substantial. I’m guessing that you went to law school (but it’s just a guess).

    >Austrian Ethics

    There’s no such thing as “Austrian Ethics.”

    Different T Reply:

    Huh? It’s all you ever did this entire time! This entire time you haven’t managed to convey anything substantial. I’m guessing that you went to law school (but it’s just a guess).

    No law school. If ” It’s all you ever did this entire time,” can you point to a single instance? If you’re leveling three separate charges, surely there is some differentiation in different posts that are able to be delineated?

    There’s no such thing as “Austrian Ethics.”

    Then it should be even simpler: Can you point to anything deduced from praxeology that says a strong entity is not able to assert itself to influence a weaker entity?

    Ahote Reply:

    >No law school.

    Oh OK. It’s usually the lawyer types that argue in such a way.

    >If you’re leveling three separate charges, surely there is some differentiation in different posts that are able to be delineated?
    Yes, there are.

    >can you point to a single instance?

    Austrians are so impotent and afraid of power ad hominem
    they refuse to understand how sovereign money systems work
    ad hominem
    It does appear Capital has done great the past 100 years and the West has dramatically increased their material standard of living, and some economies around the world have dramatically diversified and become something other than super cheap labor. big bluff, seeing that Cathedralite economists have promised us some very, very concrete things, you can’t just brush it off with “hey it seems technology has progressed in past hundred years,” I want what I was promised
    they certainly make what, again, appear to be predictions all the time. Usually something about the “misallocation” of resources strawman

    >Can you point to anything deduced from praxeology that says a strong entity is not able to assert itself to influence a weaker entity?
    What I can deduce by praxeology is that if one entity successfully asserts itself to influence other entity, is that: a) the first entity has successfully asserted itself, and b) that it prefers to assert itself and influence the other one.

    Different T Reply:

    Most would probably agree on the ad hominems. The other two, LOL, the best response to those charges would be another ad hominem.

    What I can deduce by praxeology is that if one entity successfully asserts itself to influence other entity, is that: a) the first entity has successfully asserted itself, and b) that it prefers to assert itself and influence the other one.

    Thanks.

    This entire time you haven’t managed to convey anything substantial.

    That perspective is understandable. So here are some hypothesis…

    1) The vast majority of readers and commenters on this site do not understand Capital or “intelligence optimization” in the sense Admin does.

    2) The vast majority of readers and commenters found their way to XS, not because of the insight regarding Capital (in Land’s sense) or the “telos of intelligence optimization.” They are here because of a common aversion to “the Cathedral.” This is evidenced by reading the comments on posts like “Romantic Delusion” or “Doom Circuitry” (or anything written by Brett Stevens or those who read his site).

    3) Once at XS, the goal is to “infect” those readers with Admin’s IO telos in order to accelerate his “technological singularity.” However, like any successful infectious agent, the infected do not immediately recognize the threat. Because of their “allegiance to their genes,” if they recognize the infection, measures are taken restore health.

    4) Admin considers the “Cathedral” an “intelligence suppressor.” However the Cathedral only appears to be suppressing intelligence generally, while it is actually a means for Capital to subordinate human values tactically and defensively (ie. “Our phenomenology is its camouflage.”).

    5) Being of the very few apparently honest philosophers, if Admin sees this perspective he “would happily kiss the ring.” Thus allowing the dim-witted to recognize the infection.

    Ahote Reply:

    >The other two, LOL, the best response to those charges would be another ad hominem.

    You seem not to be able to understand why, but it’s OK, if you did, I probably wouldn’t need to place charges.

    >Thanks.

    Notice that I didn’t use weaker and stronger, because not only can I not deduce that, I also don’t know what it even means.

    >Being of the very few apparently honest philosophers

    If he’s honest, I’d hate to see what dishonest one does.

    Different T Reply:

    I will certainly extend you the courtesy of excluding you and others like you from incorporation in my own future endeavors and would appreciate the same courtesy.

    Posted on February 9th, 2016 at 5:58 pm Reply | Quote
  • vxxc2014 Says:

    “In the world it is called Tolerance, but in hell it is called Despair…the sin that believes in nothing, cares for nothing, seeks to know nothing, interferes with nothing, enjoys nothing, hates nothing, finds purpose in nothing, lives for nothing, and remains alive because there is nothing for which it will die.” – Dorothy L. Sayers, Christian Humanist.

    [Reply]

    Posted on February 9th, 2016 at 6:34 pm Reply | Quote
  • vxxc2014 Says:

    If you won’t kill, suffer injury, die, go to prison for it you don’t believe in it.

    So just quit now.

    That nonsense plan above – the USG is doing all that now on it’s own. Collapse is their brand, they own it. They’re even persecuting and shooting their own police so desperate they are for a failed state.

    And again: if they are so powerful why open the borders to chaotic third parties they can’t control just to bring the enemies of their enemy on to their own soil?

    The USG is so powerful, the EU so powerful why open the borders to the 3d world?

    That is the gesture of a weakness so profound as to betray desperation and fear.

    As is shooting your own police.

    My God the Left Doxxed the FBI [most loyal of Cathedral bloodhounds] and DHS yesterday.

    These men have no intrinsic force. I am among the mighty legions you mention above and they can’t and don’t trust us.

    So much so they invite in Jihad and MS13. Latter they’re actually financing through the Dole of HHS.

    You confuse perhaps the Chinese Army with the American one.

    You’re just completely wrong. Sorry that’s the ground facts.

    [Reply]

    michael Reply:

    I like collapse is their brand,waiting for teh collapse is like thinking the collapse of the world trade center will change things,oh it changed things-

    hope you saved a copy of the dox

    [Reply]

    Posted on February 9th, 2016 at 6:43 pm Reply | Quote
  • neovictorian23 Says:

    Also the strategy in the book Kill Jesus that was so recently, umm, recommended: http://www.xenosystems.net/jesus/

    I did read the book and it’s great stuff: Sex, deep meditation techniques, Rand-style monologues, Ron Paul prescriptions, serious sex, violence, ultraviolence, Jesus 2.0 as MMA fighter, BDSM, HBD and race realism, and “President Mgombo” with a suitcase full of–okay I’ll stop there because, spoilers.

    The relevant point here is that the hero tells everyone to take money out of the bank and buy gold and silver. Just stuffing it in your mattress would be as effective. USG would doubtless try to stop the withdrawals–and history shows how that works out.

    [Reply]

    Posted on February 9th, 2016 at 7:09 pm Reply | Quote
  • Brett Stevens Says:

    This is a great idea: yank the feet out from under gov’t by cutting off its supply, much like starving a tumor. Political oncology.

    [Reply]

    vimothy Reply:

    It seems more like cutting your nose off, and hoping that it contained the tumour.

    [Reply]

    Different T Reply:

    It seems more like cutting your nose off, and hoping that it contained the tumour.

    Which does indeed sound like how those who “Play a doctor on T.V.” would perform oncology.

    [Reply]

    michael Reply:

    Ok so are you going to tell everyone their money will be worthless if they get it? Are you seriously thinking they will keep the banks open?
    The “bail ins” are already planned and “legalized” they will issue you worthless stock in your bank and a letter reminding you that any deposit to a bank is an unsecured loan to that bank redeemable for worthless stock in the institution at said institutions discretion, And a friendly reminder that these policies are for your protection.Like Greece and Cyprus atms will be obedient.And a record of who the troublemakers are will be on hand.Its not that finances are not one way to attack but the bond vigilantes do it better.The thing is any collapse will be used as an excuse to take the gloves off.Now if that is the strategy to provoke a physical altercation and hope for a backlash maybe but then you get to the problem of there fire power,its not insurmountable but planning needs to be done before hand. An alternate government needs to be proposable, an inside coup needs organizing, media and communication needs to be kept open to keep the atrocities of the tyranny front and center, intelligence is paramount, maybe timely assassinations, false flags etc. they are not invincible just they pay a lot of people.

    [Reply]

    Posted on February 9th, 2016 at 7:33 pm Reply | Quote
  • Orthodox Says:

    Gold is an exit from the financial system, it is the ultimate short position.

    [Reply]

    Posted on February 9th, 2016 at 8:29 pm Reply | Quote
  • vxxc2014 Says:

    If politics is War why would anyone think that one can win victory without fighting?

    Plan Austrian part #10^9th might work if our money was Gold or Silver but it isn’t.

    Our money is narrative.

    Our money is risk formula based fiat.

    The only withdrawing or shorting is to withdraw their power, short their power.

    Trump for instance by demolishing Political Correctness is already shorting the power of Progress.

    [Reply]

    R. J. Moore II Reply:

    The Cathedral or its heirs will want to fight at some point, but you need to bring them down to manageable incoherence first. They actually suck at fighting (governments suck at everything) but the massive support and income they have would swamp Turner Diary nonsense.

    [Reply]

    Posted on February 9th, 2016 at 8:44 pm Reply | Quote
  • Apothecary Says:

    ZH gives the government too much credit.

    The most powerful military in the world can hardly pacify Iraq and Afghanistan. I would imagine they’d also have trouble against a popular uprising in their own homeland, especially if you assume there would be some degree of defection/desertion within the armed forces and police.

    Of course, Iraq and Afghanistan could have easily been pacified within weeks using more “aggressive” tactics, but if we aren’t willing to use them there, would we be more willing to use them domestically?

    [Reply]

    michael Reply:

    exactly its how Washington beat the Brits he simply stayed in the field long enough for their atrocities to turn the populace against them, now the soldiers themselves are also us and would have a front seat to their own atrocities if the media and communication can be kept open and free and the rebels are careful not to play into their hands they can not use their firepower against us.What is need is an intelligence service and think tanks to figure out how to take over the cathedral, its actually a great system they have figured out they can completely control the masses even when directing them against reality imagine how much easier and efficiently when its attuned to reality.

    [Reply]

    R. J. Moore II Reply:

    I’m pretty sure you mean “How Napoleon beat the Brits and made them switch their attention elsewhere.”

    [Reply]

    Posted on February 9th, 2016 at 9:06 pm Reply | Quote
  • Quote note (#218) | Reaction Times Says:

    […] Source: Outside In […]

    Posted on February 9th, 2016 at 10:42 pm Reply | Quote
  • JRM Says:

    What about a tax revolt? As long as we are paying taxes, we are affirming and furthering the USG with the only “vote” they care about.

    Withdrawing funds, as per above, followed by widespread refusal to pay taxes would be the most serious threat USG ever faced. Imagine tax revolt on a huge scale: as it responded, the benevolent mask would be off the USG’s face for good. It would only work with large numbers doing it, though.

    Problem is, to get a significant number on board, they have to be committed to leaving yesterday behind. Those engrossed in the benefits of USG paternalism, e.g., social security; those with hearts full of material goods and the Superbowl and their favorite teevee shows and their new SUV aren’t going to be onboard for this. That’s why people keep waiting for the apocalypse instead of triggering it. We don’t have anywhere near enough pissed-off people in this country.

    [Reply]

    michael Reply:

    exactly why the communists had to switch to biological based wealth/power redistribution we are too wealthy.And its why the Alt Reich are actually correct race gender are the strongest of social organizers better than class politics religion and have the advantage making for excellent civilization builders since everything proceeds from that basis. The war crimes against men and europeans are pretty well hidden and propagandized the true cost of diversity is staggering probably an order of magnitude more than the trillion we spend on welfare new media and social media have been captured if un censorable and untraceable and impossible to disconnect platforms could be developed while the left still pays lip service to freedom and privacy much could be done and communication would remain open in wartime in a short time blogs like this will simply be illegal.

    [Reply]

    Posted on February 9th, 2016 at 11:36 pm Reply | Quote
  • SVErshov Says:

    world becoming better already as it getting taken over by AI and nobody even noticed.  there is 52, 769 interraction per second with Google Neural Networks AI world wide. Algorithmic search (designed by humans) was perlaced recently by AI. If AI wants people to withdraw money from banks, it can do it. when people will go search for Italian pasta recipe, it will show them news about upcoming finincial disaster and what happen in Cyprus . 3,5 billion such links per day. no need worry everything under control.

    [Reply]

    Different T Reply:

    there is 52, 769 interraction per second with Google Neural Networks AI world wide.

    &

    Algorithmic search (designed by humans) was perlaced recently by AI.

    Will you elaborate on these? Is “interaction” defined as a human inputting data or a query or what? Is AI search expected to change things for SEO, etc?

    [Reply]

    SVErshov Reply:

    It is AI who hadle now all search requests on google.com. humans inputing search inqueris and AI provide results, it is interraction. link for more info was in last Chaos Patch.

    [Reply]

    Different T Reply:

    Thanks.

    michael Reply:

    yeah I noticed google maps sucks now you can tell ‘inteligence ‘ behind the voice is an idiot. The same is happening to google search i am looking for an alternative,

    [Reply]

    Posted on February 10th, 2016 at 4:01 am Reply | Quote
  • R. J. Moore II Says:

    The biggest problem with withdraw, secession or outright civil war is that most people are fucking useless pussies who will not endure discomfort, are too stupid and ignorant to realise what’s going on or do anything if they did, and basically don’t deserve to be free or want it.

    [Reply]

    Posted on February 10th, 2016 at 8:27 pm Reply | Quote

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