Posts Tagged ‘State Of Affairs’
Has America Been Crippled by Intellectual Idiots?
Wednesday, April 25th, 2012
Submitted by Brandon Smith from Alt-Market
Has America Been Crippled By Intellectual Idiots?

As far back as I can remember, the overarching message of the American social atmosphere has been one of idolization. Oh to one day join the ranks of the “professional class”; that 5% to 10% of our culture which enjoys unparalleled respect and an assumed position of knowledge, so much so that they are rarely even required to qualify themselves to anyone besides their own compatriots. The goal of every person I knew during my formative years with a desire to succeed was to one day hold in their hands an official looking embossed document announcing their ascension to the ranks of the intellectually anointed. I was never so keen on the idea…
The dangers of academic deification are numerous. Those who dominate the educational language of the times determine the moral compass (or lack of compass) of the curriculum. They control who is accepted and who is rejected, not by measure of intelligence or skill, but by their willingness to conform to the establishment ideal. They construct a kind of automaton class, which has been taught not to learn independently, but to parrot propaganda without question. Simultaneously, those of us who do not “make the grade” are relegated to the role of obliged worshippers; accepting the claims of the professional class as gospel regardless of how incorrect they happen to be. To put it simply; the whole thing is disgustingly inbred.
Elitism has always lent itself to morbid forms of educational molestation. This is nothing new, especially within their own limited circles. However, to have such perversions of logic and reason gutting the minds of entire generations across endless stretches of our country without any counterbalance is a far more heinous state of affairs in the long run. Ultimately, this highway can only lead to a deterioration of our future, and the death of reason itself.
Recently, I attended a discussion panel on Constitutionalism at a university in Helena, the capital of Montana, and admittedly, was not expecting much insight. (At the moment of arrival I noticed the buildings had been plastered with Kony 2012 posters. The campus seemed to be completely unaware that the YouTube film is a George Soros funded ‘Wag the Dog’ farce.) Even in a fiercely independent region such as the Northern Rockies, the collectivist hardline reigns supreme on most college campuses. Sadly, very few actual students attended the discussion, and the audience was predominantly made up of local political players, retired legislators, and faculty. Surprisingly, Stewart Rhodes of Oath Keepers was invited to participate in the discussion, obviously to add at least some semblance of balance or “debate” to an otherwise one-sided affair. The mix was like oil and water.
The overall tone was weighted with legal drudgery. Many of the speakers were focused intently on secondary details and banal explorations into individual Constitutional cases without any regard for the bigger picture. When confronted with questions on the indefinite detainment provisions of the NDAA, government surveillance, or executive ordered assassinations of U.S. citizens, the panelists responded with lukewarm apathy. The solutions we discuss regularly within the Liberty Movement, such as state nullification based on the 10th Amendment, assertions of local political control through Constitutional Sheriffs, and even civil disobedience, were treated with indignant responses and general confusion.
A consistent theme arose from the academics present, trying to run damage control on Rhodes’ points on federal encroachment and ultimate tyranny. Their position? Defiance is unacceptable (or at least, not politically correct…). Americans have NO recourse against a centralized government. Not through their state and local representatives, and not through concerted confrontation. In fact, to even suggest that states act on their own accord without permission is an outlandish idea. In the end, the only outlet for the public is….to vote.
No one seemed to be able to address the fact that both major parties supported the exact same unconstitutional policies, thus making national level elections an act of pure futility. The point was brushed aside…
Sickly shades of socialism hung heavy in the room. One speaker even suggested that the states could not possibly survive financially without centralized aid. He was apparently too ignorant to understand that the federal government itself is bankrupt, incapable of producing true savings, and printing fiat Ad Nauseum just to stay afloat. Every 30 seconds I heard a statement that made me cringe.
Universities are today’s centers of connection. They are one of the last vestiges of American tribalism and community in an age of self isolation and artificial technological cultism. Adults do not meet face to face much anymore to share knowledge, or discuss the troubles of the day. The academic world provides such opportunity, but at a terrible price. To connect with the world, students must comply. To be taken seriously, they must adopt, consciously or unconsciously, the robes of the state. They must abandon the passions of rebellion and become indifferent to the truth. All actions and ideas must be embraced by the group, or cast aside. They must live a life of dependency, breeding a culture of fear, for that which others to keep for us, they can easily take away.
How could anyone possibly sustain themselves on a diet of congealing fantasy, and personal inadequacy? The intellectual life bears other fruits as well. Where it lacks in substance, it makes up for in ego, proving that being educated is not necessarily the same as being intelligent. The following is a list of common character traits visible in the average intellectual idiot, a breed that poisons the American well, and is quickly eroding away any chance of Constitutional revival…
1) An Obsession With The Appearance Of Objectivity
I say “appearance” of objectivity because the intellectual idiot does indeed take sides on a regular basis, and the side he takes invariably benefits the establishment. He would never admit to this, though, because he believes it gives him more credibility to at least be thought of as standing outside an issue looking in. It is not uncommon to find Intellectual Idiots being contrary regardless of your view, even if they would normally agree. They often try to approach debate with the façade of detachment, as if they do not care one way or the other. The costume soon wears away, however, when they are faced with an opponent that is not impressed with their educational status. I have seen lawyers, doctors, engineers, and even politicians devolve into sniveling toddlers when they are derailed by an argument beyond their ability to tap-dance around. Their middle of the road persona evaporates, and the real person erupts like an ugly pustule…
2) Clings To Labels And Status
Like anyone else, Intellectual Idiots cradle a philosophy they believe in, or are told to believe in. But unlike most of us, they see themselves above the scrutiny of those who do not pursue a similar academic path (i.e. only a lawyer should be allowed to debate another lawyer). The reality is, anyone is privy to the information a proponent of the professional class knows. With the advent of the internet, it is easier than ever to educate one’s self on multiple subjects without aid if that person has the determination to do so. Reputation is not earned by shelling out tens of thousands of dollars for university approval. A Masters Degree or Ph.D is not a get out of logic free card. In fact, because the Intellectual Idiot often uses his position to avoid true opposition, he tends to become lazy and even more incapable of defending his methodologies when the time comes.
3) Predominantly Collectivist
The curriculum of the average college is partly to blame for this, and because the Intellectual Idiot is so desperate for acceptance and accolades, they can’t help but fall into the trap. Collectivism is marked by a distinct attachment to the state as the source of life. All social and all individual crises thus become a matter of government purview. Individual self reliance is a terrifying notion to them. In fact, many Intellectual Idiots have lived on the dole since they were born, moving from their family’s money, to state money through grants and loans. It is not unheard of for these people to become career students, avoiding work for years, and then moving on to a bureaucratic job when the free money runs out. They cannot fathom why anyone would rebel against the system, because they are a part of a select group which has always benefited from it. How could the federal government be bad when it has paid their way for half of their existence?
4) Disconnection From Reality
The Intellectual Idiot is not necessarily afraid to acknowledge that the system is troubled. For them, the federal government is not infallible, even if their favorite party is in office, but, it IS unapproachable. Academics revel in the disastrous nature of government. They see political and social catastrophe as a sort of mental gameplay. An exercise in theoretical structures. For them, America is not a country built on an enduring set of principles, but a petri dish; an ongoing anthropological experiment that they can watch through a microscope at their leisure. The idea that the disasters they view from the safety of their sub-cultural bubble might one day come to haunt them is a distant one.
5) Abhors Those Who Step Out Of Bounds
Have you ever entertained a view that went against the grain of the mainstream only to be met with accusations of extremism and sneers befitting a leper? You were probably talking to an intellectual idiot. The rules, no matter how distasteful or meaningless, hold special power for these people. They make the system what it is, and when the system is your great provider, you might lean towards defending it, even in the wake of oligarchy and abuse. This penchant for overt structure for the sake of centralization is especially damaging to our Constitutional rights, because alternative solutions are never treated as viable. During the panel discussion in Helena, pro-collectivists consistently tried to redirect the conversation away from the 10th Amendment as a method to counter federal overreach. They did this by bringing up abuses of the states, including slavery and segregation, as if that somehow negated the nightmare of the NDAA.
Ironically, they saw the use of violence by the federal government to push states to recognize civil liberties as perfectly practical. But, the use of force by states to protect the same civil liberties from Washington D.C.? That would be lunacy…
6) Believes Academia To Be Free From Bias
The Intellectual Idiot assimilates every bit of information he is given at the university level without a second look. He simply assumes it is all true, and if something appears mismatched, it is only because he does not yet fully grasp it. Very rarely will he go beyond designated source materials to get a different opinion. This habit is the root of his idiocy. Being that most universities draw from the same exact materials, and peer reviewed papers are usually tested by those with the exact same underlying educational backgrounds, I can’t see how it is possible for much variety of thought to form. Whether intentional or not, severe bias cannot be avoided in this kind of environment without considerable strength of heart.
The shock that these people express when faced with Liberty Movement philosophies is quite real. They have spent the very focus of their future life within the confines of a miniscule spectrum of truth; like seeing technicolor for the first time after a long limited existence in black and white.
It’s hard to say when it all really began, but for decades, Americans have been progressively tuned like pliable radio antenna to the song of the elitist intellectual. Many of us want to be him. Others want to follow him, straight to oblivion if need be, as long as they don’t have to blaze their own trail. This is not to say all professionals are a danger to the Republic. Some are fantastic proponents of freedom. But, without a drastic reversal in current educational trends, I see little hope of Constitutional guardians becoming a mainstay of U.S. campuses in the near term.
With mashed potato minds fresh from the psychological Cuisinart of public schools, the next generation in line to inherit the most fantastically schizophrenic nation in history will be like candy for social engineers; utterly unequipped for the mission. Strangely, the drastic financial slide the elites have also triggered might hold the key to our salvation. The next batch of would be statist citizens may find themselves so poor that higher educational brainwashing will be impossible to afford, giving them precious time to think for themselves, and come to their own conclusions. As they say, in all things, there is a silver lining…
Copyright © Alt-Market
Tags: Ascension, Automaton, Brandon Smith, Circles, Compatriots, Counterbalance, Deification, Deterioration, Educational Language, Elitism, Endless Stretches, Formative Years, Molestation, Moral Compass, Perversions, Professional Class, Social Atmosphere, State Of Affairs, Willingness, Worshippers
Posted in Markets | Comments Off
Is Derating of Emerging Market Stocks Justified?
Sunday, October 23rd, 2011
The dividend yield of the iShares MSCI Emerging Markets Index Fund (EEM) recently moved above the dividend yield of the iShares S&P 500 Index Fund (IVV) for the first time since the 2008/2009 financial crisis.
Sources: iShares; Plexus Asset Management.
Sources: iShares; Plexus Asset Management.
The 76% increase in the dividend from EEM for the six months to June put the fund’s dividend yield on par with that of the IVV, but the continued market turmoil resulted in emerging-market equities significantly underperforming the S&P 500 Index.
Sources: iShares; Plexus Asset Management.
The sell-off resulted in the ratio of the dividend yield of the EEM relative to that of the IVV lingering close to the peaks that prevailed during the 2008/2009 crisis.
Sources: iShares; Plexus Asset Management.
The severe underperformance of the EEM in 2008 was justified as dividends were slashed by 30% over the following 12 months.
Sources: iShares; Plexus Asset Management.
By comparing the EEM’s underperformance against the IVV this time round, it seems that the markets are anticipating a cut of the same proportion over the next 12 months.
Sources: iShares; Plexus Asset Management.
Is the cold shoulder the market is giving emerging-market equities justified at this stage? I would say not. During the 2008/09 crisis the emerging-market currency I derived at by dividing the MSCI Emerging Market Index in US dollar by the MSCI Emerging Market Index in local currency terms fell by 22% and therefore contributed to the bulk of the slash in dividends. This time round the same MSCI Emerging Market Currency Index fell by only 7%. I am not professing that further depreciation is not on the cards. What I am saying is that given the current state of affairs the significant derating of emerging-market equities is not justified in light of dividend expectations.
In previous articles I argued that the valuation of the S&P 500 as measured by Robert Shiller’s PE10 is highly influenced by anxiety levels as represented by the VIX. The relationship between the dividend yield on the IVV and VIX is another example of that.
Sources: iShares; Plexus Asset Management.
The valuation of emerging-market equities is also influenced by financial market anxiety.
Sources: iShares; Plexus Asset Management.
The valuation of emerging-market equities is more highly geared to anxiety than the valuation of the S&P 500 Index as emerging-market equities are derated relative to the S&P 500 Index during times of heightened anxiety.
Sources: iShares; Plexus Asset Management.
One aspect that came to the fore in my analysis is that since the middle of last year emerging-market equities were derated relative to the S&P 500 Index before anxiety levels or market volatility increased.
Sources: iShares; Plexus Asset Management.
It appears as if the lead time is approximately 20 trading days. With the dividend yield of the EEM remaining at elevated levels relative to the IVV, it seems to me that we can expect volatility levels as measured by the VIX to remain high and move even higher over the next 20 days.
Sources: iShares; Plexus Asset Management.
A strong reversal in the relative dividend yield will therefore be the leading indicator for the VIX to decline. But until then the restlessness in the markets will persist and the roller-coaster ride will continue.
Tags: Asset Management, Cold Shoulder, Currency Index, Currency Terms, Current State, Dividend Yield, Eem, Emerging Market Stocks, Emerging Markets, Index Fund, Index Sources, Ishares Msci Emerging Markets Index, Ivv, Management Sources, Market Currency, Market Turmoil, Msci Emerging Market, Msci Emerging Market Index, Robert Shiller, State Of Affairs
Posted in Markets | Comments Off
Saudi Arabia Will Let Oil Reach $120, As Truth Behind Saudi Motives Is Exposed
Tuesday, March 1st, 2011
via ZeroHedge.com
All those naively hoping that Saudi Arabia has suddenly developed some altruistic bent and will act against its own interest by increasing excess production (which according to Jim Rogers it simply does not have), to keep oil prices lower, are advised to reevaluate. According to CBS, citing “the conclusion of an internal report prepared by a major investment firm based on information from its extensive and knowledgeable contacts within OPEC” Saudi Arabia won’t take “significant steps to bring down the price of crude oil until Brent, the grade traded most on the open market, reaches $120 a barrel, about 8 percent above current levels.” More from CBS: “In the report, which was made available to MoneyWatch on the condition that the firm not be named because briefings with its contacts are off the record, the OPEC sources reiterate their earlier analysis of the oil market, which has proven to be on the nose. They contend that the delicate political situation across the Middle East and North Africa – including the fragile state of affairs within Saudi borders – is preventing the kingdom from doing the sensible economic thing and increasing production to keep prices under control.” Which simply means that Rogers and all those doubting the veracity of Saudi’s motives, not to mention the kingdom’s rhetoric that it has boosted output to over 9 million bbls/day, have been correct, and the supply/demand dynamics of the stock market have been largely unchanged since Libya took over 1.6 million barrels of oil from the market.
More from CBS:
Saudi authorities were reported to have raised output late last week to compensate for supply disruptions in Libya, but if the investment firm’s sources are right, as they have been since unrest in the region was in its initial phase, the Saudi move may not be as big or as prolonged as many expect. The firm’s report indicates that Saudi leaders have other concerns that would persuade them to take less robust steps than usual to stabilize oil prices:
“The main threat is . . . Saudi instability when the current king dies. We know he is very ill but obviously there is no indication of how critical that condition is. But it is acknowledged that the next transition will present a much bigger threat to internal stability. . . . Vested interest groups have been waiting for this transition to push their agenda. Saudi experienced considerable regional instability up to 10 years ago but bought it off with higher oil-based spending. Today the problem is as bad, if not worse. There have been only a few of the promised reforms. . . . Resentment towards the wealth gap with the royals is very high. . . . Even if/when the instability in other countries, such as Libya, settles, the Saudi succession threat is now firmly on the table. What happens in Bahrain could be very key. That alone will keep the oil market nervous for this year.”
The investment firm predicts that $120 a barrel will provide greater resistance for buyers to overcome than $100 did. Still, it warns that as the price approaches that level, Saudi Arabia will be inclined to increase production “cautiously rather than aggressively.”
The report does not address the impact of $120 oil on stocks and bonds, but it probably would be harmful to both. And what if oil doesn’t stop at $120? If Saudi Arabia is beset by a succession struggle and/or something similar to what has happened elsewhere in the region and oil prices shoot past that level, the reaction in financial markets is likely to be severe.
As this story spreads, look for Brent to not go much lower from here as total chaos appears to be the underlying geopolitical thesis yet again.
Tags: According To Jim, Briefings, Conc, Demand Dynamics, Disruptions, Excess Production, Fragile State, Initial Phase, Investment Firm, Jim Rogers, North Africa, oil, Oil Market, Oil Prices, Opec, Political Situation, Price Of Crude Oil, Saudi Arabia, Saudi Authorities, Saudi Leaders, State Of Affairs, Veracity
Posted in Energy & Natural Resources, Markets, Oil and Gas | Comments Off
The Quiet Coup: How Wall Street Captured Government
Monday, March 30th, 2009
*The following is an excerpt from The Quiet Coup, by Simon Johnson, Atlantic Magazine, May 2009.
Simon Johnson, a professor at MIT’s Sloan School of Management, was the chief economist at the International Monetary Fund during 2007 and 2008. He blogs about the financial crisis at baselinescenario.com, along with James Kwak, who also contributed to this essay.
The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.
The Quiet Coup
by Simon Johnson“One thing you learn rather quickly when working at the International Monetary Fund is that no one is ever very happy to see you. Typically, your “clients” come in only after private capital has abandoned them, after regional trading-bloc partners have been unable to throw a strong enough lifeline, after last-ditch attempts to borrow from powerful friends like China or the European Union have fallen through. You’re never at the top of anyone’s dance card.”
“The reason, of course, is that the IMF specializes in telling its clients what they don’t want to hear. I should know; I pressed painful changes on many foreign officials during my time there as chief economist in 2007 and 2008. And I felt the effects of IMF pressure, at least indirectly, when I worked with governments in Eastern Europe as they struggled after 1989, and with the private sector in Asia and Latin America during the crises of the late 1990s and early 2000s. Over that time, from every vantage point, I saw firsthand the steady flow of officials-from Ukraine, Russia, Thailand, Indonesia, South Korea, and elsewhere-trudging to the fund when circumstances were dire and all else had failed. . . .”
Read the complete article here.
Tags: Chief Economist, Dance Card, Emerging Market, Finance Industry, Imf, Imon, International Monetary Fund, Kwak, Last Ditch, Oligarchy, Painful Changes, Private Capital, Regional Trading, Running Out Of Time, School Of Management, Simon Johnson, Sloan School Of Management, State Of Affairs, True Depression, Unpleasant Truths
Posted in Emerging Markets, Markets | Comments Off














