THESIS 2013-STATISM

7/29/2019 THESIS 2013-STATISM

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2013 Statism Restricted & ConfidentialCopyright 2013 Gordon T. Long All Rights Reserved [email protected]

STATISMThe Great "Huxley-Orwell" TransitionRelease 1.0 Version-01-14-13

Through the Process of Abstraction the 2013 Thesis outlines how the Global Macro is presently on

a well defined path towards a global Fiat Currency Failure and the emergence of a New World

Order. 2013 will be highlighted by social unrest during a period of heightened conflict and tension.As economic growth declines and chronic unemployment becomes even more broad based on the

world stage, Macro Prudential Policies of Financial Repression will accelerate. Increasing

centralized planning and control by sovereign government will further push advanced societies

towards collectism and statism.

Gordon T Long

1/14/2013


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2013 Thesis: Statism Restricted & ConfidentialCopyright 2013 Gordon T. Long All Rights Reserved [email protected]

STATISMThe Great "Huxley-Orwell" Transition

2013 THESIS............................................................................................................................................................................................... 5

INTRODUCTION .............................................................................................................................................................................................. 5

2013 ABSTRACTION.............................................................................................................................................................................................................. 5

OVERVIEW............................................................................................................................................................................................................................ 11

SITUATIONAL ANALYSIS.................................................................................................................................................................................................... 15Re-Learning the Lessons of History ................................................................................................................................. 15Currency Cartel & Counterfeiting "Risk Free" ................................................................................................................... 21Shadow Banking Control.................................................................................................................................................. 32

COREPROBLEM........................................................................................................................................................................................... 41

FIAT CURRENCY & UNSOUND MONEY.......................................................................................................................................................................... 43GLOBALIZATION: LEVERAGE, HYPOTHECATION, REHYPOTHECATION & REPOS............................................................................................ 50POLICY: MONETARY MALPRACTICE.............................................................................................................................................................................. 55POLICY: FISCAL POLICY & ACCOUNTABILITY............................................................................................................................................................. 57POLICY: PUBLIC POLICY & THE GLOBAL ...................................................................................................................................................................... 61GOVERNANCE FAILURE.................................................................................................................................................................................................... 63FAILED POLICY RESULT: CRISIS OF TRUST................................................................................................................................................................ 69

MONETARYMALPRACTICE ................................................................................................................................................................ ....... 70

THE FED & UNSOUND MONEY......................................................................................................................................................................................... 70MORAL MALADY.................................................................................................................................................................................................................. 72MORAL HAZARD, UNINTENDED CONSEQUENCES & DYSFUNCTIONAL MARKETS........................................................................................... 78

DECEPTIONS, DISTORTIONS & DELUSIONS................................................................................................................................................................ 86

Misrepresented Inflation ................................................................................................................................................... 88False Growth ................................................................................................................................................................... 90Mispricing & Malinvestment ............................................................................................................................................. 91Lessons of Argentina's "Estancias" .................................................................................................................................. 96Fiat Money, Collective Corruption & Control Fraud........................................................................................................... 98

ROADMAP....................................................................................................................................................................................................... 99

DEVELOPING THE ROADMAP.......................................................................................................................................................................................... 99Evolving Stages ............................................................................................................................................................. 101Driver$ - Visible & Invisible ............................................................................................................................................ 102

GLOBALIZATION & IMBALANCES.................................................................................................................................................................................. 103Imbalances .................................................................................................................................................................... 103Hurdles to Competing - The Price of Legacy Structures and Commitments ................................................................... 105

Complexity & Fragility .................................................................................................................................................... 106

CENTRAL PLANNING ........................................................................................................................................................................................................ 118Authoritarian Control ........ ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... . 119Life Cycle of Central Planning ........................................................................................................................................ 124

CRONY CAPITALISM......................................................................................................................................................................................................... 127

Global Control & Influence ............................................................................................................................................. 131The Real Control - 40 Years of Personal Observations .................................................................................................. 133Anglo-American Mercantilism...... ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... ....... ..... 134Stateless Entities ........................................................................................................................................................... 139


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Global Brands - Regulatory Capture .............................................................................................................................. 140Lobbying - A "Distinctive Competence" .......................................................................................................................... 142

Competitive Barriers - Monopolies ............................................................................................................................ 142Competitive Advantage - Regulatory Arbitrage ......................................................................................................... 144Government Contracting ........................................................................................................................................... 149

Corporatocracy's Biggest Concern ................................................................................................................................. 156

Power of Information................................................................................................................................................. 156Democratic Corruption ................................................................................................................................................... 157Political Insider Trading ............................................................................................................................................ 157

FINANCIAL REPRESSION................................................................................................................................................................................................ 159

Simplifying the Complexity ............................................................................................................................................. 160Liquidation of Government Debt ..................................................................................................................................... 161The Lost Decade ........................................................................................................................................................... 162

The "Dentist" - A Classic Example ............................................................................................................................ 162The "Government" - How they did ............................................................................................................................. 163Slick Trick - "Watch His Hands, Not the Pea" ............................................................................................................ 164Falling Rates - A Well Crafted & Managed Process .................................................................................................. 165

Understanding Financial Repression .............................................................................................................................. 166Definition .................................................................................................................................................................. 166Goal of Financial Repression .................................................................................................................................... 167Evolution & Methodology .......................................................................................................................................... 167Features & Attributes ................................................................................................................................................ 167

Tools - Application & Sequence ..................................................................................................................................... 168

REDUCED STANDARDS OF LIVING............................................................................................................................................................................... 177The American Dream Has become for Many - The American Nightmare ....................................................................... 177Visually Understanding Just How Bad It Is (Using 1980 CPI Methodology) .................................................................... 178Doomed Middle Class .................................................................................................................................................... 179

How Long Before this Explodes? .............................................................................................................................. 184

SOCIAL UNREST................................................................................................................................................................................................................ 185Arab Spring > EU Summer - American Autumn > World Winter ....... ........ ....... ........ ....... ........ ....... ........ ....... ....... ..... 187Growth > Jobs > Disposable Income ........................................................................................................................ 187Disparity, Unfairness & Corruption ............................................................................................................................ 192

STATISM ....................................................................................................................................................................................................... 196

A FRAMEWORK OF UNDERSTANDING ........................................................................................................................................................................ 196

The "Huxley - Orwell" Transition .................................................................................................................................... 196

Collectivism ................................................................................................................................................................... 201

Shifting Sentiment to Collectivism & Central Planning .................................................................................................... 204

DYSTOPIA............................................................................................................................................................................................................................ 206

SITUATIONAL ANALYSIS.............................................................................................................................................................................................. 207The Underpinnings of the Road to Statism ..................................................................................................................... 208From 'Trust in" Government to "Obedience to" Government ....... ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... .. 216

SITUATIONAL ASSESSMENT...................................................................................................................................................................................... 228Positioning Where We Are ............................................................................................................................................. 228

Blinded By Mistaken & Manipulated Beliefs ................................................................................................................... 230Self Censorship of the Media ......................................................................................................................................... 235Our Enemy the "State" ................................................................................................................................................... 236The Politics of Obedience .............................................................................................................................................. 237The Nature of the State .................................................................................................................................................. 238The Security-Surveillance Complex - A Political Tool for Coercion, Extortion & Control.................................................. 239Modern Propaganda - Movies ....................................................................................................................................... 241Modern Propaganda - Video Games ............................................................................................................................. 244

CATALYSTS......................................................................................................................................................................................................................... 247


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A FAILURE OF POLITICAL LEADERSHIP.................................................................................................................................................................. 247

UNCERTAINTY & PUBLIC INSECURITY.................................................................................................................................................................... 249Lack of Confidence in Government ................................................................................................................................ 250

CRISIS OF TRUST.......................................................................................................................................................................................................... 251

AN UNGOVERNABLE DEMOCRACY.......................................................................................................................................................................... 252Crisis of Trust................................................................................................................................................................. 252Broken Social Contract .................................................................................................................................................. 252Breakdown in Civic Responsibility .................................................................................................................................. 252Austerity versus Entitlement ........ ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... ....... ..... 252Values and Incentives .................................................................................................................................................... 252

CONSTITUTIONAL PRESSURES.................................................................................................................................................................................... 255Rule of Law Being Corrupted & Called Into Question ..................................................................................................... 256Bill of Rights Under Attack ............................................................................................................................................. 267Insidious Removal of Protective "Walls" of Civil Liberties ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ ....... ........ .... 270


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2013 THESIS

INTRODUCTION

2013 ABSTRACTION


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THESIS 2013-STATISM