Is resistance futile?

Reuters reports that in their increasingly radical but doomed and futile attempts to "stimulate" real economies that are still faltering around the world after years [in one case decades] of extreme monetary policies [now referred to as "financial repression"] consisting of:

• massive injections of fiat credit [usually extended directly to governments or GSEs] and
• interest rates forced to zero [ZIRP],

central banks are considering even more radical and desperate steps forward. The point for us is simple:

• it is time to turn back to the law because
• where human beings or institutions no longer observe the law, they are doomed to wander into an increasingly confusing and desolate social wilderness characterized by increasingly extreme and deviant stimulation and repression.

It is well past time to make the FED obey the Federal Reserve Act and stop dragging us into an economic wilderness it can neither understand nor control.

1. Targeting even higher inflation ... say 4-6% annually for starters.

The thought here is that if the central bank simply floods the economy with more "money" in the form of fiat credit [new loans made available by the central bank which are not backed by any real savings or by anything else of value for that matter], it will somehow

• seduce people into increasing spending on various things [assets and/or consumables]
• resulting in a jump in the demand for [relative to supply of] those things [be they stocks, houses, cars or just groceries]
• which would in turn cause the prices of those things to rise faster
• resulting in higher rates of price inflation on [i.e constantly rising prices of] those things.

Its lack of sound economics notwithstanding, this type of policy has already failed because it is hard to seduce somebody [with the promise of a new loan] who is already worried about his/her ability to repay existing personal debt [incurred during prior seductions] when wages are not rising and jobs are uncertain.


The only possible result of such a policy would be unleashing the financially irresponsible among us [starting on Wall Street] to reach levels of obscenity in their indulgence only dreamed of by history's most decadent deviants.

2. Making the central bank the permanent purchaser and everlasting holder of government debt.

The idea here is that the government can simultaneously

• buy the weapons to wage the wars needed to sustain the profitability of the military industrial complex [guns] AND
• make the continuous welfare payments needed to keep its citizens happy [butter]
• with the central bank permanently "printing" all the money needed to "buy" bonds [let's make them 1000 year bonds while we are at it] that finance the government's perpetual deficits
• until such time [if ever] as the real economy ... somehow ... miraculously ... begins to grow again at an acceptable rate.

This line of thinking has no rebuttal ... because it is delusional ... pure and simple nonsense.

3. Charging you to keep "money" in your bank account.

This is call using "negative" interest rates and is intended to force you to spend your money as quickly as you get it. If you want to "save" any money for your retirement [or for any other purpose] and you try to do so by putting the money in a bank account, the bank will charge you for the privilege of making a deposit ... and you will not be able to avoid this charge because there will be no such thing as "cash" you can withdraw and hold ... all money will be electronic and will exist ONLY in the central bank computer files. The idea is that faced with the systematic loss of your savings, you will choose [like a rapist lets a victim choose] to spend the money on something [anything] and to save nothing.

This perverse idea results in the saver paying the bank to make a deposit while the bank still collects from the borrower for making a loan ... because there is now NO LINK between the saver and the borrower. The saver is no longer needed or wanted in society ... only borrowers need apply. The central bank will provide fiat credit to replace real savings forever. Indeed, the object is to eliminate any private savings of any sort.

And lest you think negative interest rate policy [NIRP] is mere science fiction, it was suggested by one member of the US Federal Reserve Bank at their September 2015 meeting as the final solution for dealing with those persistently reprehensible savers who are bent on destroying the economy with their self-righteous frugality.

How do you resist tyranny? Require obedience to law.

Hannah Arendt caused a furor at the Eichmann trial by asking why the Jews did not resist Nazi repression during the Holocaust ... even if it meant death ... since the death of the Jews was the obvious goal of the Nazis. She was not the first or the last to ponder that. But hopefully Americans will be able to give history an answer of sorts to that question ... as we are reduced, without a whimper much less resistance, to financial slavery and ultimately financial death by a reprobate central bank that has become lawless.

Welcome to the future ...
"lower your shields and surrender your ships ... we will add your biological and technological distinctiveness to our own ... your culture will adapt to service us ... resistance is futile."