Debt Rattle September 9 2017

The explanations that one sees regarding the formation of hurricanes usually run as follows:

“Tropical cyclones are like giant engines that use warm, moist air as fuel. That is why they form only over warm ocean waters near the equator. The warm, moist air over the ocean rises upward from near the surface. Because this air moves up and away from the surface, there is less air left near the surface. Another way to say the same thing is that the warm air rises, causing an area of lower air pressure below.
Cumulonimbus cloud.

Air from surrounding areas with higher air pressure pushes in to the low pressure area. Then that “new” air becomes warm and moist and rises, too. As the warm air continues to rise, the surrounding air swirls in to take its place. As the warmed, moist air rises and cools off, the water in the air forms clouds. The whole system of clouds and wind spins and grows, fed by the ocean’s heat and water evaporating from the surface. ”

However, for all of this to come about, there needs to be a steep temperature gradient between the tropical region and the adjacent cooler region. Without a steep temperature gradient, not much would happen.

The temperature of the North Atlantic Ocean has been dropping in recent years – while the temperature of the tropical waters have been stable. This has increased the temperature gradient and made such storms more likely.

“The Canary in the Water Column – Atlantic Ocean Heat Content Plummets”

The Canary in the Water Column – Atlantic Ocean Heat Content Plummets

Rumor has it China is shutting the unregulated exchanges that might compete with the blessed ones. Very likely Russia is doing the same: stopping outright scams while cleaning up (and slowing down) the market to insure its future. How can we tell? Because the Chinese Yuan-oil-gold setup is going to have a blockchain side, and looks like so will the Sino-Russian inter-bank transfers. So this comes from reporters not knowing what the heck a “Crypto” is, so they muddle 1,000 different tools that use the idea into one. They are very likely SUPPORTING blockchain, not outlawing it.

“What we need to understand is how capitalism has managed to reproduce itself since the Great Depression”

Facepalm. First, FDR’s New Deal in the Depression was 125% against capitalism. Not that it was free even in 1930, but every motion made for 10 years was regulation, control, central planning, micromanaging…and preventing markets from price discovery and clearing because as a Wall St guy, his buddies might get slightly less rich and be a little embarrassed. Just like today. And by 1937 his own cabinet said “We tried everything and it didn’t work.” So bad starting point. PS, in 1910, people were probably even MORE living in PA riverbeds, out on LA bayous than now, and in worse houses. Difference was, like Walden cabin, they didn’t cost as much and they didn’t cry to mommy. Second, he then describes in great detail everything America has done that is also not Capitalist. “Regulated capitalism” is already not capitalism, however necessary. Is this a joke? Is this like how “left” and “right” have no meaning except “I don’t like you”, how nobody knows what a “National Socialist Worker’s Party” Nazi, is anymore, i.e. a “Socialist”? (how can I even need to say that?) Did history, language, disappear somehow?

“Regulated Capitalism” is headed to the OPPOSITE of Capitalism, Socialism. Every one of these projects was the government overrunning private property, capturing central control, redistributing citizen’s money to pet projects, probably to enrich insiders, with the exact ill effects Mises would describe. It should be retitled, “How the LACK of Capitalism drowned America”, published by the Mises institute with a forward by Hayek. Laws and orders? Check. Army Corps? Check. Stealing property to build levees and sink whole towns and counties under headwaters? Check. Very expensive? Check. Created increased moral hazard and totally failed? Check. Doubled down obvious physical failure by lying, financial rigging, and taxpayer bailouts? Check. 100 years later, the cost and bureaucracy are 1,000x larger, no one can get rid of it, and citizens can no longer imagine a market or government or solution that isn’t rigged? Check. Everyone was warned, knew this would happen, complained bitterly, yet watched each “fix” make it ever worse? Check.

What can I say? It ain’t “Capitalism.” Words have meanings, use them. If you can’t use the words accurately, you can’t think accurately, and have no chance of fixing anything accurately. “Capitalism” means I can make and own things and trade them with my neighbor without a 3rd party getting involved. That’s pretty much it. Yet the definition of the ability to own things without being robbed is now the quick definition of “evil failure.” Yes! I’m sure the guys at the top would like us to feel that resisting being robbed is evil! It makes their work far easier. Now they’ve spent 100 years advantaging one property owner (danger zones) at the expense of another property owner (everyone else) then lo! are amazed that they have more of what they subsidized and less of what they punished. And call it a “Failure of Capitalism”!

I got nothin’.