Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

An Orwellian America, Unsound Money Leads To Statism

Politics / US Politics Mar 12, 2013 - 03:18 PM GMT

By: Gordon_T_Long

Politics

Macro Insights - March 2013

As a young man, I voraciously read George Orwell's "1984", Aldous Huxley's "Brave New World" and Alvin Toffler's trilogy which included "Future Shock", "The Third Wave" and "Power Shift". During the era of the Vietnam War, I wondered seriously about the future and how it was destined to unfold. Now being considerably older, I have the vantage point to reflect back on my early ruminations and expectations. Unfortunately, I am too old to alter the lessons that are now so painfully obvious. Instead, I pass the gauntlet to those who can understand and take action on what I have unavoidably come to expect for America.


A Framework of Understanding

Huxley Transition To Orwell

The 'Huxley-Orwell' Transition

I recently read a perceptive paper by Chris Hedges that would have made any English Professor envious, powerfully philosophical but not something an Economics department would pay much attention to. I found it both intriguing and enlightening.

I have borrowed so heavily from it, that I am unsure where the lines diverge. Therefore, below I give full credit to Chris Hedges and take full credit for all the bad ideas.

Chris Hedges of TruthDig.com wrote 2011: A Brave New Dystopia, from which the following evolved.

The two greatest visions of a future dystopia were George Orwell's "1984" and Aldous Huxley's "Brave New World." The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.

Orwell 1984 - Huxley, Brave New World

We have been gradually disempowered by a corporate state that, as Huxley foresaw, seduced and manipulated us through:

  • Sensual gratification,
  • Cheap mass-produced goods,
  • Boundless credit,
  • Political theater and
  • Amusement.

While we were entertained,

  • The regulations that once kept predatory corporate power in check were dismantled,
  • The laws that once protected us were rewritten and
  • We were impoverished.

Now that:

  • Credit is drying up,
  • Good jobs for the working class are gone forever and
  • Mass-produced goods are unaffordable,

.... we find ourselves transported from "Brave New World" to "1984."

The state, crippled by massive deficits, endless war and corporate malfeasance, is clearly sliding toward unavoidable bankruptcy.

It is time for Big Brother to take over from Huxley's feelies, the orgy-porgy and the centrifugal bumble-puppy.

We are transitioning from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled.

Huxley versus Orwell

Huxley, we are discovering, was merely the prelude to Orwell.

Now that the corporate coup is over, we stand naked and defenseless. We are beginning to understand, as Karl Marx knew:

Unfettered and unregulated capitalism is a brutal and revolutionary force that exploits human beings and the natural world until exhaustion or collapse.

Unsound Money Leads To Statism

With this as a backdrop let's explore how Unsound Money in concert with the Huxley-Orwell Transition leads to Statism, the path which I believe we are presently on.

Unsound Money Leads To Statism

The Catalysts Behind The "Transition"

1- UNSOUND MONEY

  • Removal from Gold Standard and adoption of Fiat Currency regime (in August 1971 during the winding down of the Vietnam War; the first War ever fought without tax increases to pay for it; the beginning of endless 'conflicts' and the War on "Terror").
  • Creation and Fostering of a $67 Trillion Shadow Banking Credit Growth,
  • Massive Securitization & Off Balance Sheet Contingent Liability Debt Growth.

2- POLICY FAILURES

  • Failed Monetary Policy & Monetary Malpractice,
  • Moral Malady,
  • Failed Fiscal Policy,
  • Failed Public Policy,
  • Growth of Political Polarization,
  • Entrenched 'Left-Right' Factions,
  • An Un-Governable Democracy.

3- CRISIS OF TRUST

  • Lost Respect & Confidence
  • A Doomed Middle Class
  • A Broken Social Contract

Crisis of Trust

4- AUTHORITARIAN ACCEPTANCE

  • Central Planning
  • Growth in Regulations & Control
  • Crony Capitalism & Corporatocracy
  • Big Government
  • The Huxley - Orwell Transition

Crumbling Barriers

Crumbling Barriers 1

  • The Great Huxley-Orwell Transition
  • From Manipulative to Repressive

ROADBLOCKS

  • Financial Security through Sound Money REMOVED
  • Reduced Personal Freedoms through a Crisis PENDING
  • Reduced Personal Security through a Constitutional Crisis FUTURE

Crumbling Barriers 2

DRIVERS

  • Globalization & Complexity
    • Fragile versus Robust Systems
    • Interconnectivity and Counter Party Dependency
  • The Productivity Paradox
    • Creative Destruction & Job Creation

Let's shift gears and consider what "greases the skids" in enabling this transition in our society to occur.

Collectivism

In The Road to Serfdom, F.A. Hayek showed how governments, supported by a collectivist mindset, always tend towards totalitarianism. Even the most libertarian government thus far created, the government of the United States, has slipped incrementally towards totalitarianism over the past two centuries. This is because it is an inherent trait of a government.

Individualism versus Collectivism

The degree of socialism in the United States increased substantially after the establishment of the Federal Reserve System (1913) and the measures taken during the Great Depression (1929-46) which it created. Ever since the early 1900's the United States has had a two-party system dominated by 'socialists'. The Republican Party has always advocated conservative socialism. The Democratic Party, which in the 19th century favored libertarianism, advocates social-democratic socialism. So long as people are divided by Left and Right, Democratic and Republican, the US is prone to being influenced by factions who transcend party politics and from behind the scenes could possible exert strong control over the United States. They could do this by maintaining power over public opinion and hence over the course of government. Steadily, the United States has been travelling down the road to totalitarianism, and many people have not noticed, possibly because they are only looking at the position on the Left-Right paradigm.

Upon further analysis, it is clear that Left, Right and Centre, are all forms of socialism. In particular, we may call them "social-democratic socialism" (the Left) and "conservative socialism" (the Right). They are both socialism because they both share the principle that the government should "run" and "mold" society, by using legal force and intervention to transfer property and personal wealth as part of the political scientists' process of 'redistribution of wealth'.

The differences are only in the particular ways the government should run society - the methods it should use, and who, exactly, should be the recipients of government wealth transfers and who should pay. In particular:

  • Social democrats tend to prefer heavy taxation, large wealth transfers to the poor, and nationalized industries, and oppose price controls, regulations and behavioral controls.
  • Conservatives tend to prefer lower taxation, a smaller welfare state, regulated (cartelized) industries, price controls, product and behavioral controls.

Nolan Charts: Personal Freedom versus Economic Freedom

Nolan Charts: Personal Freedom versus Economic Freedom

Increasing Size of Government

The modern Republican Party is Center-Right on the Left-Right paradigm. As with the Democratic Party, this obscures the huge range of views Republicans hold on how powerful and how much control the State should be allowed. Their 2008 presidential nominee John McCain, like Barack Obama, strongly favored socialism, though with a Right-wing flavor. Barack Obama (blue circle) and John McCain (red circle) are positioned in the accompanying graphic. Thus, the two main candidates at the 2008 Presidential election represented a false choice - really no choice at all. One candidate, Ron Paul (yellow circle), stood in stark contrast to the candidates, favored by the mainstream media and political establishment. As would be expected, he was neutralized by the mainstream media outlets as a zealot with an unsound political view of America.

 

The Political Continuum

The Political Continuum

The Emergimg Roadmap To Statism

Let me now develop and explore the roadmap that outlines the path leading from Policy Failures and Monetary Malpractice, stemming from Unsound Money, to STATISM.

First we will build the outline for the basis of a roadmap on a number of observable continuums.

The Emergimg Roadmap To Statism 1

The more complex that issues become, the more collectivism will dominate and individual needs will be repressed. In turn governments will be forced to be more repressive to maintain control over increasing polarization and diverse views and opinions.

The Emergimg Roadmap To Statism 2

Evolving Stages

When we arrange our various continuums we arrive at the representative grid model shown below.

We will quickly acknowledge it is not ideal, but it allows many concepts currently at play to be shown in relationship to others.

Forces of Globalization

This grid is best described as the social forces at play within Globalization - Financial, Economic and Political.

Driver$ - Visible & Invisible

There are both visible and less visible forces at play that are forcing 'greasing' the skids in the movement towards Statism.

Drivers, Visible and Invisible

The roadmap integrates well into our roadmap from our THESIS 2011: Beggar-Thy-Neighbor / Currency Wars and 2012 Thesis: Financial Repression papers.

The Unfolding Outlook

The Unfolding Outlook

Orwell's 1984 Is Happening

We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a 'terrorist' attack by indebted college youth, it is only a matter of time and circumstance.

Catalysts For Further Advancing a Police State

Listen to our YouTube Videos on this whole subject. FREE LIBRARY. To read more, go to GordonTLong.com.

Get your Free Copy of Thesis 2013: Statism

Good luck, and good trading.

Download your FREE TRIAL copy of the latest TRIGGER$ Checkout the GordonTLong.com YouTube Channel for the latest Macro Analytics from expert Guests

Gordon T Long     Publisher & Editor general@GordonTLong.com     

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that you are encouraged to confirm the facts on your own before making important investment commitments. © Copyright 2013 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or suggestions you receive from him.

Gordon T Long Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules