Peak ignorance~?

Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions –
hello on the day we worship the sun right let’s tidy sum stuff up will use a Doug short chart to start with it’s the S&P stock market 500 and the Federal reserve interventions over the last five and six years at the bottom we had the have the fed funds rate which kicked in hearing 2007 at over five but as the troubles started washed do could bomb their book is on the deck end of 2008 and is obviously still there and Janet Yellin told us yesterday that she doesn’t think it would be a terrifically bad idea if it stayed down there till the end of 2015 to B a seven year period with the fed funds rate on the debt right next up we have the ten-year Treasury yields are has been kept arm in the channel between 2% and 4% is currently at 2% the S&P has come from a highway in 2007 at near 1600 and and is now somewhere around about now is 14 and 1300 think it’s a lower but it’s not in the gutter now the these are the actions that have kept things going Things afloat but it’s not blog flogging a dead horse the horses still alive just arm what’s a better analogy walking in the snow to people walking in the snow and it’s freezing cold frostbite and you got to get from here to somewhere that’s a long way away and it’s snowing and it’s freezing cold and you just want to lay down in the snow and go to sleep but you know because you’re scientifically that way knowledgeable that if you do go to sleep in the snow you’ll wake up dead this is just keeping the partner going and hoping that they can keep going until they get to where they going or America will happens is eloquent this morning aren’t I right next number two from calculated risk the 30 year mortgage rate and the 15 year mortgage rate going back to 1970 you can see it went up as it always does to 1980 and has been on its way down ever since but look where it is now the 30 year I know it’s tricky to qualify for it but if you do qualify for it the 30 year is below four and the 15 year is an all-time low at three they are selling money like crazy there really going on discount that’s all there been doing all this chart is selling money there been able to excel it at top seasonal prices in the past but now it really got to be on discount price and that’s what this is and people still aren’t breaking the doors down right are New York Times lenders again dealing credit to risky clients Anette our leisure handle all just emerged from bankruptcy protection and doesn’t have a job and her car was repossessed last year still after spending her days jobhunting she returned to apartment in Brooklyn where in disbelief she sought through piles of credit card an auto loan offers that have come in the mail there trying to get it going again and or big banks need €485.6 billion for Basel capital rules the largest global banks would need would sorry would have needed an extra €500 billion in their call reserves to meet capital rolls the call reserves better deck capital requirements not reserve requirements capital requirements and standards been enforced last June 2 hundred and 12 lenders survey read would also have needed to find a combined €1.76 trillion in easy to sell assets to meet a minimum liquidity rules set by the Basel committee on banking supervision the group said today in a statement on its website the measures are scheduled to be phased in by 2019 and that’s another put the marker up the road can you get through the snow to get to the marker but that’s like you got to pick up all lots and lots of firewood before you get there and really load yourself down before you get to the marker global regulators have clashed with lenders over the severity of the capital and liquidity rules which were set out in 2010 as part of an overhaul banking regulation in the wake of the financial crisis that followed the collapse of Liman Bros Holdings Inc the measures known as Basel three will more than triple the core capital but lenders must hold at least 7% of their assets waited for risk tripled up to 7% when there’s nothing against them holding 30 or 40 or 50% only the just wouldn’t make so much profit number five US inflation year over year change in four different measures mainly from the Cleveland fed the got to put Cleveland fled heads in their anyway and median CPI and their trend but also in green is the core CPI Arsene DCE B and that’s with oil and food in their and the courts are CPI arm just like the different measures okay but basically they all roughly as follow each other and they have come down up from their downs of 1% and are now going to wrap themselves around 2% market again the point of this chart for me is when was the inflationary period 1990 this chart starts and this is been the inflationary period from 1990 till 2007 how much money did central banks prints up out of nowhere to keep their interest rates down so they could do this chart holistic are exporting trillions how much did banks loan across the Western world and in the eastern world to buy housing the most thing that arm that people do every now life is to take a mortgage out and this was to the populations of the world how much money was printed up in that period 1990 to 2007 that was the inflationary period just saying reviewing the financial times by Gillian Tet in US election-year voters and politicians face a wake-up call on the budget deficit and am sure you recognise the characters in the picture this is a review of Simon Johnson and quacks book arm not 13 bankers that’s the old one this new one is Washington burning last year the Washington Post newspaper and ABC television channel conducted a poll that showed that 95% of Americans wanted to cut their countries budget deficit by reducing government spending 95% of Americans wanted to cut their countries budget deficit by reducing government spending either alone or with tax-raising no surprise there you may think the issue of America’s debt has come to dominate the political debate this year as the fiscal problems have worsened our last paragraph has seconded her article link link however there was a catch 78% of Americans in this poll were opposed to any spending cuts in Medicare which is for the people the don’t know of US health insurance for the over 65 is an younger disabled people also 69% were opposed to cuts in Medicaid US means tested health-insurance and surprisingly 56 over half were against the idea of reducing military outlays indeed the only program that almost everyone was ready to cut was the foreign aid budget but that actually accounts for less than 1% of the federal outlays brackets although separate polls show that Americans believe that foreign aid gobbles up a quarter of the annual budget we can’t get a finger out and point that is the problem we know that banking in the back money system is a problem we know that governments are a problem but these millions of people are apathetic particular problem until we can get over peak ignorance we are going to stay in the deep to do is education of actually what’s going on what reality is what can be done is the only way hundred years ago people were talking about this down at the pub or the sports field or all just in their houses at their homes drinking tea in Coffey and beer they would discuss economic matters and political matters knots the stuff that they talk about now we basically deserve what we’re getting we need the combined brains of these millions of people to influence the small amount of people that are bankers and politicians who now hold the power they are not going to do the thinking on their little own sons haven’t in the past and then not going to now we are going to have to do it for them peak ignorance when were over it we might stand a chance God bless you my children till the next time Sunday on the seventh day thou shalt make videos by

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  • NascentMind

    Politicians are really the key? As I see it; all politics are funded by wealth. You don’t get to be a president or prime minister by
    courting the favour of the people. That is a secondary and easily bought hurdle.
    The Apathy of people is a big problem.  When people get more politically motivated they will be able to turn the key, and turn the secondary people.
    to the primary Necessity. 

    Political parties should always be funded by the State in there entirety once they achieve a support level?

    If that ever occurred then we would encounter, the only voting ourselves gifts problem. I haven’t an clue how to prevent that?

    • CSArichardo

      Hey it is time to watch the Stanley Cup finals (hockey!) or the NBA finals or maybe the start of the baseball season.  I know people that can detail you every statistic from these games of sport, but few who can talk about politics or economics statistics maybe because the rules of those games are not so clearly spelled out in a rule book as a game of sport ?

      • NascentMind

         I see what you mean, in UK you can have endless discussions on Footballs (Soccer) Off-side rule, and sporting results in decades gone by.
        Even mention Economics or deeper political problems and you will Classed as The Strange One.

        • In bars here in France….they are only too keen to go on and on and bloody on about politics.

  • doc


    • NascentMind

      That’s an interesting expression, What the is it supposed to convey? Anyone?

      • Anyone…

        A marksman’s exuberant expression – when he hits the mark, dead on… Bullseye!

        • NascentMind

          Thank you, When we talk world wide expressions get hard to follow, But isn’t it amazing that we can talk
          and swap views and expressions. It’s No wonder that the Governments are scared of You and me conversing?

          • doc

            You’re welcome – yes it is!

            I enjoy your input, as well.

  • John_by_the_creek

    Dear Mr. Mystic:
    What an interesting admonishment in the close of this video.  In essence, a call for the “individual” to actually think for himself.  Yet for countless generations in European culture, and 4 or 5 generations in American culture, the individual has been educated to subjugate himself to “the greater good”, to the “grand social order”, to the State. 
    Is it any wonder that the masses feel compelled (and perfectly comfortable) to “leave the thinking to the experts”, or to “go along with collective wisdom”?  It is now accepted as self-evident, that the individual is insignificant when there is a “greater cause” to be served.
    Socialism promises a “safety net” for all.  The masses now believe this.  They have been trained to believe it.  It is universally accepted as fact. 
    In essence, the message from the system is “the system will take care of you”.  The logical derivative of this “social contract”, in the mind of the individual, is; I will be taken care of, therefore, I don’t need to worry about taking care of myself”.
    I’m most curious to know why you think the masses would be inclined to “think” in any other fashion?

    • NascentMind

      The chickens in a large hen house started to quarrel, wounded each other and many of them died every day. The upset farmer hurried to a consultant, and asked for a solution to his problem.”Add baking-powder to the chickens’ food,” said the consultant, “it will calm them down.”After a week the farmer came back to the consultant and said: “My chickens continue to die. What shall I do?””Add strawberry juice to their drinking water, that will help for sure”.A week passed, and again the farmer came to the consultant: “My chickens are still quarrelling. Do you have some more advice?””I can give you more and more advice,” answered the consultant. “The real question is whether you have more chickens.”

    •  I have done a video reply (as I had too much for a comment).
      Suffice to say….I think you are wrong from top to bottom.


  • amishlandTodd

    I think that american’s in general feel a sort of detachment when it comes to foreign affairs, hence they think that foreign aid eats up a lot of dough.  I don’t blame the american individual as much as I blame the US news media.  If it doesn’t involve Putin shagging a goat, they just won’t cover it.  They would much rather cover the cute little cat that wondered onto the playing field, dancing with the stars, america’s next talent or whatever it is, cutsey tootsey bullshit.  America has been dumbed down by the media and will hopelessly wonder about until lead to the trough to gobble up some more slop.   Sad but true.  

    It would be interesting to know how many Americans have traveled abroad and even experienced the larger world.  Occupy “whatever” is such a big thing to watch because we just haven’t experienced any sort of discourse in our over indulgent lives.   just my two bits.   

  • axionication1

    The more complex the econ things become, the more people drop out of trying to understand.’ I don’t understand! But hey ho it seems to work, so who am I to get all worked up’… Gota have faith. Gota trust. Gota believe.

    I am utterly convinced that money is a religion.

  • Paul

    You’re right.  The ignorance starts in the home and continues in the schools. There is a “snowball rolling downhill” effect in place. Teachers are becoming dumber and less disciplined, and their students reflect the trend.  So, the next generation of teachers will be even dumber, and their students more so, and so on.
    The young are not being adequately prepared to compete in the global marketplace. There are a lot of bright, hungry students in the world who want those high-wage American and European jobs. We need less political discussion in the classrooms, and more emphasis on math and science. Unfortunately, most teachers have poor math and science skills, so they would rather focus the fluffy stuff.  Math and science force the brain to think analytically, which enhances critical thinking skills as well.  It’s a work-out for the brain, same as weigh-lifting or running for the body.
    The parents need to be more proactive and demanding as well.  Shut off the TV, computer and video games~!  Good diet and exercise is first.  Then make the kids read a book every night after their homework is completed.
    There is too much indulgence in society.  Fat, lazy, ignorant Western kids will not be able to compete against hundreds of millions of hungry, disciplined kids from India, China, Eastern Europe, et al.  It is a global marketplace.  Jobs are not guaranteed anymore just because your Dad or Uncle was a corporate middle manager, in the Union or on Wall Street.  Chances are your Dad and Uncle will be looking for work soon as well.  The “Big Transition” is not going to be a pleasant experience for most Westerners.  They are going to need Govt help to see them through it.

    •  I agree that things do snowball.
      I don’t think I agree with your education policies (but haven’t got any of my own, so will nod it through)

      The big one is government again.
      Government is going to have to help the people in the `the big transition`…….BUT, unfortunately the government is a big snowball of its own.
      Does that make it a Catch22 thingy…..The government needs to help the people become less ignorant; but the government is of the people, so is already ignorant~!?

      • Paul

        That’s the dilemma.  The “Big Transition” is going to require “Big Brains” which the Govt (workers and politicians) does not have.  It goes back to the Public-Private concept.
        The “Big Ideas” will by created by the “Big Brains” who will  sponsored by those with “Big Money” and “Big Notoriety”.  Bill Gates, Warren Buffet, George Soros, et al. must play the role of patrons of these “Big Brains”.
        The role of the Govt is to foster these concepts through legislation and fiscal spending in R&D, etc.  Otherwise, the Govt should stay out of the way.  Govt. often does more harm than good by trying to appease the masses with political doctrine and rhetoric.  It’s too late for that nonsense now.  The clock is ticking~!
        The best historical example that I can think of is the Italian Renaissance.  Briefly, The Medici Family of Florence, Tuscany were patrons of great artists and thinkers like Botticelli, da Vinci and Michaelangelo.  By funding and supporting these men, their works lead to a new form of expression and thinking in the arts, politics, religion, philosophy and science.  These ideas flourished and spread throughout Europe for over two hundred years, and ushered in the Age of Enlightenment.  Talk about a Snowball effect~!  They invented the printing to disseminate their ideas.  We have the Internet, which is the modern day equivalent.
        We would do well to study the Renaissance as a model for implementing a “New System”, implementing changes across the entire spectrum of our society.  My Renaissance overview is way too brief due to the restrictions of the comment box.  There are many more great men and great ideas that require further discussion.  I just wanted to get the idea out there.
        A small group of people will lead the way, as has always been the case.

        •  I read (heard~?) lately a document that went on about `the system that had lasted centuries.   Was the pinnacle of human social engineering……and would last….etc…
          It was about `feudalism`~!

          The Renaissance brought in a `new` way, which was a `better` way.

          I think the main idea was double-entry-bookkeeping and lending at interest.  The areas that used these new fangled ideas kicked the arses of the ones who didn’t.

          It has had a good long run.
          But now, with everybody using it, there is no advantage to using it any more.

          • Paul

            I wasn’t advocating The Renaissance as a new system.  I meant that is a historical example of how systems can change under the right patronage.  Soros with INET, Gates Foundation, etc.
            Govt will play a part, but the real drivers of change will come from individuals using their private money to sponsor insightful thinkers whose ideas cannot otherwise be funded, tested and delivered.  After they have been intially researched and developed by individuals, then they can be further developed in govt programs and handed off to industry to be implemented in the marketplace.  Not just finance ideas.  Energy, water, food, healthcare, etc.  The key is the initial patrons supporting the “far out” ideas, similar to the Medici supporting Leonardo da Vinci.
            An example would be Gates promoting Terra Power and seed development.  Soros providing an international platform for Keen’s ideas is also an example.  The real driver behind innovations in IT in Silicon Valley was not the govt.  It was funding from venture capitalists and angel investors.  That system also works, but it discards many unique ideas that are yet not ready for the marketplace, as determined by a panel of venture capitalists.

            • Yeah, yeah….I was with you.
              ..and I think Soros, Gates and Buffet are excellent examples of `givers` with enough influence to establish new thinking (a new renaissance).

              • Paul

                Some of that new thinking better involve the distribution of billions of free condoms~!
                If Gates doesn’t come to grips with the issues of overpopulation and limited finite resources, all his free vaccinations in sub-Saharan Africa, India, SE Asia will be a waste.  He’s delaying the inevitable; if malaria or dysentery doesn’t kill them, starvation will.  Population control is an issue that never receives the proper attention from the poltically correct MSM and think tanks.  They don’t want to offend anyone by telling them not to have 12 children when they can’t even feed themselves.

                NY Times article how Nigeria might be a glimpse into our future if overpopulation is not checked:

  • Steveo

    I enjoyed this video Nick towards the end.  I know we both got at each others throats with you loving government and me hating mine and other tiffs but I have always admired you and I admire you even more after seeing this video.  We do deserve it Nick, right up the ass, and I could not agree more with you on this Nick referring to the 56% number.  
    Those fucking rotten 56% who are against military cuts this is the problem Nick in a word.  I now openly admit that I have come onto your side and I love my political and financial overlords.  But I am really starting to develop some great disdain for the common man.
    The political and financial masters must be laughing their sorry asses all the way to the bank when 56% of their citizens demand military action abroad.  This is why Nick I hope that the political and money masters continue to crush these cuntish yanks so they reach the state where the women are forced to sell their bodies to put food on there kids plate and the men will offer up some gay sex to rich bankers for a morsel of food.  
    Here is to hoping that while they are being crushed and agony is being heaped upon agony an invasion of chinese, russians and others, the more the merrier, descend on that continent and do to this current lot what their ancestors did to the native american indians.
    So Nick, here is to hoping that the inhabitants of that continent become transformed into a sino-russo-anglo species, we hope and pray for it.  Sorry about the 42% oops~!