The Board of Governors did not raise interest rates, again. The base Federal Reserve rate (called the federal funds rate) has been targeted against zero since 16 December 2008. The target 0.0%–0.25% (annual basis?, the vermin technocrats never say) is asymptotic because elite lenders lend for profit and are not worried about losing unlent dollars. We are coming up on seven years and the entire Obuma prezidenzy.
The Fed officials say that interest rate hikes this December are a distinct possibility. We have been told about the recovering economy for how many years? Negative interest rates have been seen at all in the West in this period of great stagnation. As I described in a post, negative rates mean people are afraid of losing more of their money by confiscation legal or otherwise. What we have running our lives is a bunch of liars and cheats. There is no incentive to produce and be treated worse for it.
There is nothing to farm from the West except by cannibalism.
This is the end of monetary policy in the United States. There is no property rights for producers, so there is no legitimate opportunity for entrepreneurial investment, so there is no opportunity for lending that makes a profit except by bailouts that create more money that confiscates wealth but more importantly depletes the total supply of wealth. The contraction of wealth (per capita or total, as the case may be) strengthens the necessity of corruption to expand and intensify for the corrupt to maintain their relative power to take whatever is available. This ride is, of course, terminal. Ted ‘Chappaquiddick’ Kennedy enjoyed the ride at your expense. Terminal rides can be long enough to win as an elite parasite. This planet is terminal, in about 5 billion years
The economy is reduced to existing legal businesses protecting their market turfs, more in percentage than in absolutes. Political competition will determine which legal businesses win and survive. The economy, shrinking, is going to become openly black. It is likely that black market business will be allowed by local government burdened by its intransigent local needs.
Since there is no ready avenue for change, a French-style revolution seems plausible. If it is not producer Americans, it will be Muslims. If it is not Muslims, it will be Mexicans. It will be somebody, or most of us accustomed to living on the utilities grid will die in an orderly way over the next fifty years. Sheeple are not orderly when they are hungry and neglected. Sheeple are simply human parasites that like the human prey to remain still. Many are feckless in a physical contest, but how many are not?
If we approximate the decline of the Roman Empire, our decline will be protracted and denude denizens of all cultural passion. If we approximate the decline of the Kingdom of France, it will be mercifully quick but bloody, even if the blood flows freely several years.
Non-establishment pundits have been saying the sky is falling for some time. We don’t really know when there might be a total dissolution of the current order or how precipitous it will be.
I think the crux of the uncertainty is how and how long the establishment will be able to ration what wealth there is and remain the establishment. Private deals and betrayals will be common. The question is what sort of stability will there be. There will be a healthy black market or there will be bloody chaos, if I had to guess. Even if there is a healthy black market, there will not be a physical force to keep order. Native savages and realists will maraud. Barbarians will come to gorge on the relatively rich West. The question is how much better armed will they be? This is a global economy led by the West. The more primitive cultures will have a stronger will to create political order, but will they have the technological means?
If there is massive incompetence, massive meltdown, it will be a golden opportunity for a group of people of little relevance now.
You would do well to organize in terms of people as much as supplies, if you can find people who aren’t shit. You might want to make nice with people who can’t handle the idea of collapse but could be useful in collapse. I’m not sure how, but isn’t that the essence of seduction? Winning is flexible.
Regardless of what the distant future or final throe may be, I predict that the verge of a decade of near-zero in-house base rates at the great imperialist central bank is the start of a new era. Monetary policy is dead and will remain impotent and spread to the rest of da vurld. The fundamental rate of the British farm, the base rate analogous in design to the Fed’s discount rate but used primarily and exclusively, has been 0.5% since 5 March 2010. The equivalent in-house target rate at the European tax farm (called the marginal lending rate) has been 0.3% since set there on 10 September 2014.
Confiscation will now be more obvious, more brutal, more deadly. The wool is gone. Now it will be flesh, one pound after another. The best animals will win. A rationalist can be a great animal if he puts his mind and heart to seduction and winning. Widespread success is an illusion of film and circus. Enticing liberated brain stems for sex is only the antechamber of the House of Rational Sovereignty.
—‘Reality’ Doug, 28 October 2015