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Wednesday, August 13, 2014

Fighting the System for the Dumbest of Reasons

~ All pics from Fergeson, Missouri

We don't know if our loyal readers have noticed lately but over the past few weeks, we've tried as much as possible to avoid talking about where the economy specifically is..

There just gets to be a point even for us where there's a bit of burnout.

So for us as much as for your sake, we've written more philosophical and social science related posts where the economy is concerned..

Today we'll need to be specific again to make a larger point..
They.. They ones in Washington and the Fed and Wall Street..   They tell us the recovery is going quite smoothly..  So much so the Fed plans to finally raise interest rates at beginning of the new year (after mid-term elections)

They say repeatedly it will be housing that leads us out..

And yet this week, mortgage applications in the US fell to its lowest level since September 2000, which was the last year Clinton was in office.

Applications have actually steadily declined for 9 months because even though we're told they're very low, to many people i.e. the ones actually to be taking on the new mortgages, they're too high.

Who's right?  Maybe both are..  
Maybe 4.28% on a 30 year fixed is low compared to 10 years ago but then again, it was 4.19% just last week and service sector job creation is never going to be the path to home ownership.

Just for perspective, based on a $200k mortgage, that .09% difference means paying $11 more monthly and over $4,000k more to the bank by the time the 360th payment is made.

Then the news came out today about retail sales which make up 70% of the US economy, that they've missed expectations for the third month in a row  (0.0% growth in July vs 0.2% expectations with Department stores at -0.7%)

But gee whiz, we were told in April that the bad retail numbers were due to all that bad weather this winter..  And now?    Its been a quite lovely summer actually...
Its just hard to buy when you don't have the means which is where debt comes in..

Nothing wrong with buying a car or borrowing in some capacity where the monthly bill stays the same and its fully budgeted..

Its the credit card debt with its variable APRs and fluctuating balances which are the killer.

So this brings us to the larger point..

Every society.. Every nation has a boiling point; a moment when things go Pop! and individuals don't act so law-abiding to each other..
The irony both in the present and historically is that civil unrest and/or rioting and looting are never triggered simply by economic struggle or poverty in itself.

Usually what triggers is something wholly unconnected to finance or economy..  like the killing of a child..  Especially a 'precious' black child..

Blacks shoot and kill blacks all the time and the black community pretty much shrugs and goes 'Whatcha' goin' to do..'    And when a black kills a white, the community shrugs and most blacks come to the black criminal's defense..

And when a white or Hispanic kills a black?   Riot and loot..
But that's really all it takes..

Most poor and uneducated black lower class simple folk have no conception of how this country really works, the Fed, Wall Street or any of the other structural mechanization's that deplete this nation's riches and siphon into pockets of a few..

Those who do work know at the end of 2-3 jobs they have nothing to show for it as they keep fornicating and creating children which add even more of a financial burden to their minimum wage existence...

And venting at the local sports teams can only blow enough steam.

So then there's a trigger.. Civil unrest follows and you have in the aftermath a police state with martial law imposed under the guise of protecting innocents from the rabble.
And once freedoms are taken, they usually aren't willingly restored.

And the System.. the 'Man' as it were knows all this and that is another reason everyone is being squeezed so tightly so slowly..

So one day we'll burst and get really Mad and lash out, and then government can really drop the anvil of Thor upon us..

Its really no different than what you see depicted a million times in movies...
Two people.. one armed, the other not...   So the armed person tells the unarmed to pick up the gun off the ground and does whatever is necessary to provoke the action so the gun holder can have the moral and legal justification to shoot the other dead..

But try explaining that to the black idiots in St Louis looting and wanting to riot over the shooting of a black child...  Or all those morons seeking a fight with the system a year or so ago over that thug hoodlum Trayvon...

So many other things you'd think they'd get up in arms over..
You do not ever confront the System in such a physically threatening manner over That!!   You don't turn into base mindless animals over what often provokes these young black thugs..

They rioted over MLK's death in 1968.. Got nothing accomplished..

They rioted in LA because of Rodney King - their community was made the worse for it,  and they would have again if OJ Simpson hadn't been allowed to get away with killing his white wife...

The System is not stupid.. It created the game..
It made the rules and set the boundaries..  It has its strategies and contingencies

It knows simple people need martyrs..

Now it patiently waits to make its next move as it squeezes tighter.