Guest Post: Collapse Is In The Eye Of The Bagholder

Submitted by Dmirty Orlov via The Burning Platform blog,

Nomenclature means a lot to our pride. People take offense if they are told they are living in a collapsed culture. Collapsed implies over. Collapsed implies hopeless. Collapsed implies that we have failed. But at some point we have to look at people like my angry friend and admit that we are failing—on many, many levels. My friend was once a middle-class woman with a college degree and a profession. She raised children on her own after her husband died. And as she tried to push forward, her career started moving backwards. And then somehow, eventually, it came to a point where she was willing to do work of questionable legality to pay her bills and keep a roof over her head. The horror that awaited her if she were to became homeless was arguably much worse than the controlled environment of the massage parlor, even taking into account the occasional police raids.

Our culture is such that half of Americans probably think “If the money is good, so what?” There is no thought given to the proper way to live and to relate to people. There is no thought given to what such work does to the soul of this woman. The American thinking process jumps to the bottom line of the financial transaction, and declares victory if cash has changed hands. The woman is “richer” so for them she is better off. These same people see the American economy as rebounding. People are spending. Some people are getting rich. What’s the problem?

When everything is calculated in a purely financial light, we start to lose any sense of decency or community. I saw the end result of this process when I recently visited Philadelphia to look at properties. There are houses there under $10,000. While checking out the neighborhoods where these properties are, I made an astounding observation. Almost every block in these neighborhoods has at least one abandoned home. These homes are impossible to miss because of the state of disrepair they were in: porches or parts of roofs are literally collapsed. As if there could be any question as to their status, the city posts large warning signs when boarding them up. The visually offensive chartreuse or neon orange signs warn that “trespassers” could end up spending two years in jail. I wondered which the city had more of—abandoned houses or homeless families. Sadly, I actually saw an occasional homeless person wander through the area. I was tempted to go purchase them some tools and hardhats, and organize a take-over of abandoned buildings by the homeless.

I got in contact a friend who is well-connected in Philadelphia politics. I pressed him with the obvious question: shouldn’t the city be teaching the homeless how to fix up these abandoned eyesores that litter the urban landscape? His answer was a resounding “No.” Apparently the city has to protect the rights of property owners, who are hoping to turn a profit on these places. I wondered what kind of financial alchemy could possibly turn a profit on ugly houses in depressed neighborhoods that are in need of serious labor. It must have something to do with “quantitative easing.”

At one point during my Philadelphia adventure I walked toward an old abandoned factory which, in a better city, would have been turned into hipster lofts, and I saw a bookstore. I was overjoyed. The bookstore seemed like a beacon of light in this dark ghetto—right until I got close enough to read what was painted in huge letters on its wall. “We ship to prisons! Ask inside.” I didn’t. I already knew these clever people were doing very brisk business. In the early 2000s I would occasionally volunteer for Books Through Bars, an organization that sent donated books to the incarcerated. Back then jailed people seemed somehow more distant. As the end of the decade approached and I returned to America after living abroad, the prison system seemed much closer. I lived with my mother temporarily, and I would ride the bus to work. Every day, on the bus, I heard men loudly discussing their parole officers on their cellphones. What I might have overheard whispered in hushed voices in my childhood was now a subject the transit riding public could hear about loud and clear, whether they wanted to or not. Nor did the women seem any more reticent, as they discussed what they were planning to do with their food stamps and benefit money. Even if I wore earplugs I would not have been able to avoid hearing these people, or smelling the drugs they occasionally lit in the back of the bus.

All life seemed to revolve around the trifecta of prisons, handouts and drugs. Every few days a van would park directly in front of our house before visiting “friends” across the street. “What are they doing?” asked my mother angrily. “Dealing drugs,” I would explain flatly. Based on their shiny new van, the dealers were certainly doing better than I was. I was waiting to be credentialed as a doctor, and worried about being unable to afford my bus rides to work. They were making so much money they could eat endless restaurant-cooked meals in their van and leave the trash on my mother’s front lawn. “I don’t know why the police don’t do something about the fact… they are littering, LITTERING!!” my mother would start screaming indignantly. “The police are in on the action,” I informed her.

On a recent trip home I noticed that the drug delivery van has left the neighborhood. I wondered whether it was a sign of the times getting better or worse. Are they getting better prices somewhere else? Have drugs finally become an item for the middle class? Had the neighborhood demographics tipped it toward prescription drug abuse? Sadly, one of the least probable possibilities is that the police had actually done their job.

When looking at a country as large and complex as the USA, one can make any number of contradictory assertions and still be factually correct. The economy doing extremely well, and the economy is going to hell. One need look no farther than the banking industry to figure that out: the banks are bankrupt and require bail-outs; the banks are doing well and making healthy profits. American banks are in every way typical of American corporations: they are corrupt, reliant on the government to subsidize and support them, and produce mind-boggling riches for those that run them. At the bottom of the bank hierarchy are the tellers. The polite, well dressed tellers wear conservative new clothes and jewelry. They exude the kind of stability and class that reflects well on the banks. Yet about a third of them earn little enough to qualify for public assistance. They have joined the ranks of retail workers, restaurant workers, hotel workers and other service industry personnel who must rely on the welfare system in order to work. I suspect they will be joined by more and more recent college graduates who can not actually earn a positive sum after subtracting their student loan payments.

But rest assured that from each and every payment or delinquency notice or collection activity someone somewhere is making a profit. In this economy every action is monetized, even our very socializing. As you randomly clicked around the Internet to find this article, you generated income for tech companies. At some point, as every last penny was pushed or pulled out of your pocket, you began shifting from consumer to producer: you became a prosumer… and the machine that is American capitalism milked more profit still from your existence. Your eyeballs and clicks generated inc
ome based on some strange calculations by marketers. American-style capitalism now has you in debt and producing for it even as you consume, but that is now a middle class privilege, and no one is forcing people to make these choices.

At the bottom of the food chain are the forced producers. Those people are so broke that they have become superfluous to the normative economy. They seem to be channeled in one way or another into the prison system, where they become the ultimate producers. Their very bodies create profits for prison corporations simply by existing in prisons, while their arguably forced labor is compelled at pennies on the dollar to produce cheap consumer goods. The American economy seems to be succeeding at monetizing everything while producing fewer and fewer goods or services of any real value to anyone but a few rich people profiting off the entire system.

America’s political economy has changed incrementally enough that many people have not noticed what is really happening. It’s over for most of us. You can call it collapse, or you can call it restructuring. You can even call it a recovery. But you can not call it sustainable, or pleasant. The overall trajectory is toward decline, decay, destitution…

I’m sure some dyed-in-the-wool patriots will be angered or confused by this article. They may live in a safe, posh area of a city or a suburb, and see none of the decay I observed. Or perhaps, based on some vague ideas they heard at the university, they can guess that this different America is a place into which I have been redlined by my ethnicity. They can’t yet see that the fact that they can, for the time being, shield themselves so completely from this other America is a symptom of our problem—which is going to become their problem. There is little sense of a larger American community where people care for their fellow citizens.

But then no one seems particularly concerned with the plight of the doomed, and perhaps no one ever was. So what is the fundamental shift that is happening—one that we could call “collapse”? Well personally, if I look at myself as a black American, I’m not really in a culture of depression or collapse. It’s just more of the same, and in some ways things have never looked better. Arguably the issue that really has some people upset is the increasing equality—albeit an equality of suffering. Now that middle class success is no longer achievable for many young middle class white people, who are being called “the lost generation,” everyone can suddenly see what the rest of us have been complaining about for decades. This collapse is the collapse of dreams, hopes and expectations, not an obvious one like the collapse of the currency or the government. And if you have no hopes or dreams, and your expectations are sufficiently low, then you might not even be aware of it.

A really painful and obvious collapse isn’t in anyone’s interest, not even the people suffering under the unjust rule of America’s empire. The USA admits to a military presence in a staggering number of countries, and many middle class young people in all of these countries sit around in cafés cursing American imperialism. In reality, while the end of America might mean fewer drone strikes and assaults on the sovereignty of other nations, it might also mean misery and death for the emerging global middle class—the very class that supports the young global intellectuals who whine about the injustice of this arrangement. For the time being, what is really in everyone’s interest, here and abroad, is to keep playing along. Collapse? What collapse? We all have to keep pretending everything is fine, or things will get even worse quickly – for us. But if things are continuing to get worse for us in any case…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Gxm2nJC9tE4/story01.htm Tyler Durden

Goldman's Top 100 Charts Of 2013 – Part 2

On Friday we presented the first part of Goldman’s Top 100 Charts of 2013. Among the themes presented were the interweaving links between key investment themes, and the implications of these for companies, sectors and countries. They include the widening disparity in relative energy costs, the rising cost of growth in emerging markets, the increasing ubiquity of technology in most sectors, the disruptive technologies that are changing how things are made and consumed, the growing influence of governments, and also, the twin challenges of fewer jobs and longer lives. Below we present the second half of the best charts of 2013.

The size and influence of governments is rising

 

A taxing subject

 

Tracking the habits of global consumers

 

Fast food is a global phenomenon

 

Dominance takes many shapes

 

…and so does disruption

 

Ill gotten gains?

 

The geography and nature of conflicts are changing

 

Going places

 

Diversions

 

Some market charts

 

On a parting note, did you know…

 

For reference


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/DNDgKSRtKRo/story01.htm Tyler Durden

Goldman’s Top 100 Charts Of 2013 – Part 2

On Friday we presented the first part of Goldman’s Top 100 Charts of 2013. Among the themes presented were the interweaving links between key investment themes, and the implications of these for companies, sectors and countries. They include the widening disparity in relative energy costs, the rising cost of growth in emerging markets, the increasing ubiquity of technology in most sectors, the disruptive technologies that are changing how things are made and consumed, the growing influence of governments, and also, the twin challenges of fewer jobs and longer lives. Below we present the second half of the best charts of 2013.

The size and influence of governments is rising

 

A taxing subject

 

Tracking the habits of global consumers

 

Fast food is a global phenomenon

 

Dominance takes many shapes

 

…and so does disruption

 

Ill gotten gains?

 

The geography and nature of conflicts are changing

 

Going places

 

Diversions

 

Some market charts

 

On a parting note, did you know…

 

For reference


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/DNDgKSRtKRo/story01.htm Tyler Durden

If You Have Children, You Need To See These Numbers

Submitted by Simon Black of Sovereign Man blog,

According to a recent survey by the Pew Research Center, just 33% of Americans think their children will have a better life than they did. On the other hand, 62% believe their children will be worse off.

They’re likely to be right.  The typical American family has seen its real income (adjusted for inflation) fall for 5 consecutive years now, and it earns less in real terms that it did in 1989.

According to the Census Bureau, median household income fell in 2012, and it languishes 8.3% below the pre-crisis peak in 2007.

The Brookings Institution, meanwhile, calculates that real incomes for working-age men in the US have fallen by 19 per cent since 1970.

(Of course, if you’re fortunate enough to be a member of the super-rich who, thanks in large part to central bankers driving up asset prices, saw their real incomes rocket by 20% in 2012.)

In Europe things look even more dire.  Just 28% of Germans think their children will be better off than they were.  In the UK it’s 17%, in Italy 14%, and in France just 9%.

In Britain, research by the Financial Times shows that those born in 1985 are the first cohort to suffer a living standard worse than those born 10 years before them.

Contrast this gloomy picture with China, where 82% think their kids will have it better than they did. In Nigeria, the number is 65%. In India, 59%.

It’s blatantly obvious that the West is in decline. And most people seem to understand this.

But this isn’t a bad news story. Wealth and power has constantly shifted throughout history. Five hundred years ago, it was the West that was rising and Asia in decline. Today it’s the exact opposite.

As Jim Rogers has said so many times before, if you were smart in the 1700s, you went to France. If you were smart in the 1800s, you went to England. And in the 1900s, you went to the US.

Today, it’s the developing world. That’s where the long-term opportunity is – Asia, Africa, and South America.

What’s happening in the developing world is nothing short of remarkable. One billion people are being pulled from the depths of poverty into the middle class… bringing with them untold possibilities for business, employment, and investment.

That’s one of the reasons why I travel so much, and why I spend so much time in Chile. I’m constantly amazed at the tremendous opportunities I come across in this country (which is still largely off the radar of most people).

It’s also what I encourage my students to do each summer at our entrepreneurship camps – seek out opportunities in countries that are rising suns, not setting suns.

If you have children, this is a great direction to influence them. Encourage them to learn another language, travel, and apply what they want to do to how the world is going to be in the future.

As Wayne Gretzky said, skate to where the puck is going to be.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/KClTlk-xgoc/story01.htm Tyler Durden

Fight Over Greek Feta Blocks US-EU Trade Talks

When one imagines the world’s two largest bureaucracies – the European Union and the US – trying to coordinate what may be the world’s most sophisticated free-trade agreement, one would expect things like genetically modified crops, chlorine-washed chicken, and beef quotas to be key sticking points. One would not expect Greek Feta cheese to be among the main hurdles. Which is precisely what it is, because as Kathimerini reports “a fight over who can call Greek-style cheese “feta” is blocking the way toward the world’s largest free-trade deal. Of course, in a world in which something as “consequential” as who gets to call Feta by its name will require days if not weeks of negotiations, one wonders why bother with trade when central planners can just print commerce and wealth all day long anyway.

From the Greek media outlet:

US and European Union negotiators will determine a list of sticking points this week in Washington during their third round of talks, and food issues are expected to be chief among them.

 

At a time of low economic growth on both sides of the Atlantic, EU-US free-trade negotiations seek to integrate two markets representing almost half the world’s economy in a sophisticated agreement going far beyond lowering tariffs.

 

But food is different and the old issues that have bedeviled many trade talks around the world are likely to complicate the ambitious Transatlantic Trade and Investment Partnership (TTIP) between Brussels and Washington.

 

The EU is determined to write into any deal its system of geographical indications, which protects countries’ or regions’ exclusive right to product names, such as France’s champagne, Greek feta cheese or Italian Parma ham.

 

US groups say this demand “defies credibility” because in the cause of free trade, US producers would, for example, no longer be able to market cheeses as “feta.”

Sadly, every day we are witness to far more insane things in this centrally-planned world. As for the “Free-trade agreement” between the US and Europe, we can’t wait for the two biggest economies to pass it only to find out what’s in it.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Ix9cPLiMVe0/story01.htm Tyler Durden

The South American Gem Investors Are Ignoring

Greetings from Peru!

 

When most investors think about South America, they think about Brazil: the single largest South American economy.

 

Indeed, even the famous acronym for the most important emerging markets “BRIC” features Brazil (the “B”) as the South American representative.

 

But Peru is a real gem you should know about.

 

Peru’s economy has grown at an average pace of 7% for the last 10 years. During that time the Peruvian middle class has literally DOUBLED in size.

 

I can attest to seeing this in action. When I first came here in 2009, the famous Jockey Plaza mall featured mainly Peruvian brands and stores with middle priced goods.

 

Today, the mall has completely been designed with luxury goods (I saw Versace, Hugo Boss and the like) and beautiful architecture:

Source: Consultora Metropolis

 

Everywhere you turn Peruvians are hustling, building new condominiums, selling hand crafted goods, and of course, eating the famed Peruvian cuisine (I’ve already packed on 5lbs in the last two weeks alone!).

 

And the work ethic is tremendous.

 

Peruvians don’t believe in sitting around waiting for handouts. There’s a saying in Peru “you don’t work… you don’t eat.” And they live by it.

 

A friend of mine recently ordered a modern glass dining room table for his 7th floor apartment. The store thought the table would fit in the elevator and so sent only two deliverymen for the 100+lb tabletop to be delivered.

 

The table didn’t fit in the elevator.

 

Rather than rescheduling the delivery, the two guys (both of them shorter than 5’5”) hauled the table up the seven flights of stairs. The entire time they had to do so somewhat bent over to fit the table in the stairwell.

 

The dispatched was irate. Why did they deliver the table instead of requesting more help? Their answer? “We took care of it.”

 

THAT’S SOME SERIOUS WORK ETHIC.

 

For actionable market insights on how to play bull runs and bear corrections, swing by:

 

http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards

 

Phoenix Capital Research

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/eV7xUXt4gxE/story01.htm Phoenix Capital Research

Senate Approves Budget Deal, Snowden Offers to Help Brazil, Paul Wants Fed Audit Vote for Yellen Nom: P.M. Links

  • "And I'm telling you, I'm not going ... "The Senate approved the

    two-year budget deal
    by a 67-33 vote. Twelve Senate Republicans
    joined the Democrats in passing the bipartisan deal.
  • Edward Snowden, in an open letter to the people of Brazil,
    offered to help assist the government
    investigate allegations of U.S. spying
    on them. The media has
    taken the offer to suggest that Snowden is seeking asylum in
    Brazil, but Glenn Greenwald says no actual asylum has been
    requested.

  • Critics in Congress
    of the extent of the National Security
    Agency’s reach with its phone metadata collection are pleased with
    yesterday’s court ruling declaring it a violation of the Fourth
    Amendment. Meanwhile, discussion of NSA’s tactics is on the agenda
    as President
    Barack Obama meets with several tech company leaders

    today.
  • The only modern president who has had approval ratings lower
    than what President Obama is pulling at this point in his
    presidency is
    Richard Nixon
    .
  • Sen. Rand Paul is threatening to
    bog down the Janet Yellen’s nomination
    for Federal Reserve
    chair unless he can get a vote to audit the agency.
  • Justice Ruth Bader Ginsburg is
    resisting pressure
    from the left to resign while Obama is still
    in office so that he can choose her replacement, not some future
    (possibly Republican) president.

Get Reason.com and Reason 24/7
content 
widgets for your
websites.

Follow us on Facebook
and Twitter,
and don’t forget to
sign
up
 for Reason’s daily updates for more
content.

from Hit & Run http://reason.com/blog/2013/12/17/senate-approves-budget-deal-snowden-offe
via IFTTT

‘Tis the season to show extra generosity

Did you hear about the secret Santas who are paying off Christmas layaways? Wal-Mart customers in San Leandro, Calif., were called and asked to pick up their layaways after they were paid off by a total stranger.

One customer was Elizabeth Cortez, who owed a balance of $111 when she got the surprise call.

“A good Samaritan just paid for you,” said the Wal-Mart employee.

“I’m like ‘What?’”

The stranger was waiting at the Wal-Mart counter, hoping to meet her.

read more

via The Citizen http://www.thecitizen.com/blogs/dr-david-l-chancey/12-17-2013/%E2%80%98tis-season-show-extra-generosity

Religion Briefs 12/18/13

Brooks UMC hosts party
Brooks United Methodist church will host a Christmas dinner and party tonight, Wednesday, Dec. 18, at 5:45 pm. RSVP to 770-719-7593.

St. Paul’s Christmas program is tonight
The St. Paul Lutheran School’s Advent Christmas program will be presented at 7 p.m. tonight, Dec. 18. The church is at 700 Ardenlee Pkwy., Peachtree City. For information, call 770-486-3545.

Last Advent service to be held at WOG

read more

via The Citizen http://www.thecitizen.com/articles/12-17-2013/religion-briefs-121813