1. Registering for the Forum

    We require a human profile pic upon registration on this forum.

    After registration is submitted, you will receive a confirmation email, which should contain a link to confirm your intent to register for the forum. At this point, you will not yet be registered on the forum.

    Our Support staff will manually approve your account within 24 hours, and you will get a notification. This is to prevent the many spam account signups which we receive on a daily basis.

    If you have any problems completing this registration, please email support@jackkruse.com and we will assist you.

WHY ORANGE PILLING YUPPIES IS TOUGHEST THING IN BTC EDUCATION

Discussion in 'The Kruse Longevity Center' started by Jack Kruse, Jun 15, 2021.

  1. Jack Kruse

    Jack Kruse Administrator

    The financial crisis was caused by global elitists who sent their kids to Ivy League schools. Ivy League schools have been a target of the WEF for 50 years. They have infiltrated the curriculum by way of the liberal professors there and infected them with a neoliberal progressive agenda, This is why Orange pilling the yuppy Ivy league professional is the hardest person to deal with in the BTC ecosystem.

    When Harvard proposed eliminating the Dean’s List in October 2002, fully 92% of upperclassmen were on the Dean’s List! Of course, if 92% of eligible people merit some sort of achievement, it can’t be much of an achievement. The list of the people most responsible for the crisis – i.e. the Confederacy of Dunces – is dominated by Ivy League graduates.

    As demonstrated by the common denominator of an Ivy League degree, the true root cause of the financial crisis was a purely human factor; the completely false sense of omnipotence, self-importance, and entitlement among the country’s elite, as well as the nurturing of these beliefs at Ivy League colleges and other elite universities. Most of those Ivy leaguers are card carrying members of the World Economic Forum.
     
  2. Jack Kruse

    Jack Kruse Administrator

    Controlled demolition of the USA economy began in 1971. All part of the Great Reset born by the unholy alliance of Kissinger, Schwab, and Samuelson.

    WTF happened in 1971? Is this when Ivy league schools were infected by the WEF?

    It turns out this is exactly what happened. Curriculums were altered and changed at the urging of Henry Kissinger. Kissinger had the ear of
    Paul Samuelson of MIT. He considered economics a hard science like physics or engineering. As a hard science, economics required all sorts of complicated, obtuse mathematics. Kissinger knew that many things could be obscured in banking if one hid it behind complicated math.
    The apparent – but mythical - mathematical precision of the “new” economics gave central bankers at the Fed and traders on Wall Street the confidence to use unprecedented amounts of financial leverage. The economic models developed at MIT, Harvard, Wharton, and elsewhere worked until they didn’t. When they stopped working, the financial crisis started and the economy imploded.


    What else happened in 1971? Nixon closed the gold window and opened the economy up to future inflation and chaos.

    The key date of the unfolding devaluation of the American taxpayer begins on August 15, 1971 – the day President Nixon temporarily suspended what remained of the gold exchange standard agreed upon at Bretton Woods in 1944. When Nixon removed the last vestiges of gold from the system of money and credit, he removed the one thing that could constrain the profligate central bankers at the Fed. Freed from the discipline of gold, the 1970s vintage central bankers/central planners at the Fed unleashed an inflationary firestorm. To combat the resulting high inflation, on October 6, 1979, Paul Volcker was forced to declare war on inflation. Volker’s war on inflation was successful, but among the many casualties was the Savings and Loan (S&L) industry. To help the S&Ls manage the high-interest rates needed to defeat inflation, the Kemp-Roth tax plan of August 1981 included a massive tax break for the S&Ls. This tax break helped create an enormous market for mortgage securities on Wall Street. The resulting boom in mortgage “securitization” then played a major role in the financial crisis.

    What were the collateral effects of the decisions in 1971? It lead to the biggest mistake in the executive branch in the history of the USA. Kissinger convinced Nixon to begin to hire economist who were schooled using Paul Samuelson text book on Modern monetary theory.

    Paul Samuelson, was the first modern economist, who completely misunderstood how money & gold operate in an economy. Paul Samuelson was the author of the most widely used college economics textbook (Ivy league) and was the first American to win the Nobel Prize in economics.

    In the aftermath of Nixon taking the US off the gold standard, Samuelson was convinced gold would sink into complete irrelevance and be treated no differently than any other commodity like zinc, lead or coffee. Insight into Samuelson’s almost complete ignorance of the way economies actually work and the nature of money can be gleaned by his outlook for the price of gold after Nixon closed the gold window.

    In the 1973 edition of his textbook Samuelson described the prospect of a “mid-east sheikh” making a bundle if the price of gold increased to $68 but would lose a fortune if gold fell to $38.50. In just a few years, the price of gold would leave prices like $68 in the dust and soar to over $800! Samuelson also claimed, “From the standpoint of economics – jobs, income, interest rates, inflation, lifetime savings – gold has not the slightest importance.”7 As Samuelson’s comprehensive misunderstanding of the future movements of the gold price conclusively shows, Samuelson was completely ignorant of the enormous significance of removing the discipline of gold from the monetary system. It was the resulting lack of monetary discipline – which could only exist without the presence of gold in the monetary system – that created the inflationary firestorm which decimated savings and forever altered the economic make-up of the United States. Nixon closing the gold window was a watershed event politically, culturally, socially and economically - and MIT’s Paul Samuelson was completely blind to it.

    Regrettably, Samuelson’s blunders weren’t limited to endorsing Nixon’s actions on gold. In an error of equal significance, Samuelson confused the social science of economics with the hard sciences of physics and engineering. In the words of a fawning acolyte and fellow educated fool, Ben Bernanke, Samuelson performed “foundational work as a graduate student in the application of sophisticated mathematical models to economics.”8 Samuelson was convinced that enormously complex national economies could be modeled by equations in the same way a mechanical engineer might model the flow of air over an airplane wing. It was a colossal blunder with enormous significance.

    At its core, the doctrine founded by Samuelson and built on by others confused correlation with causation. Among the many other manifestations of this fully fraudulent view of economics and human nature were;

    • The US economy could be modeled by the function of a single variable – the interest rate
    • The spurious notion that investment banks could manage enormously leveraged

    “derivative” investments with similar equations and statistical correlations Unsurprisingly, one of the most fervent advocates of what would become the economically ruinous derivative market was Samuelson’s nephew and Harvard president, Lawrence Summers. Summers’ enormous contribution to the future financial crisis of 2008 was based on his role in fueling the explosive growth of the derivatives market and acting as an establishment shill for Wall Street finance.

    Samuelson’s 1973 edition of his economics textbook does not limit its enormous blunders to the prospects for gold and inflation. Samuelson also offers his assessment of the merits of communism in the Soviet Union versus capitalism in the United States. Using a “maximum” estimate of Soviet growth and a “minimum” estimate of US growth, Samuelson predicts the Soviet economy will overtake the US economy in 1990. This sympathy for communism and socialism came from his relationship with Kissinger and Klaus Schwab that began in 1971. Schwab founded the WEF and espoused the same ideas that are found in Samuelson's textbook that was to be used for education decades of economist who work for the Federal Reserve today. It turns out Nixon decision in 1971 to visit China and open it to industrialization with favored nation status created the USA biggest global competitor.

    There is no better evidence of the total moral and intellectual bankruptcy of modern economics and modern economists of the Samuelson variety then their collective failure to see Soviet communism for what it was. This same idea is buried in the teachings of the WEF today. Instead of recognizing communism, and progressive liberal politics for what they are, most modern economists marveled at all the progress the progressive communist tyrants appeared to be making. Laughably – and a damning indictment of Paul Samuelson’s misunderstanding of economics - rather than overtaking the US economy in 1990, the Soviet Union collapsed onto the ash heap of history on Christmas Day 1991!

    1973 was a nightmare year for America. Less than two years after the gold window was closed and the Fed was completely free to embark on an unprecedented campaign of increasing the money supply – which will benefit financial services and banks at the expense of the economy’s productive elements as surely as night follows day - income disparity begins its inexorable march higher. In 1973, the share of national income earned by the richest 1% of Americans bottoms at 7.7%. It has increased unabated – under Republican and Democratic presidents - for the next 48-years and counting.

    January 1973 – December 1974 – Crushing Bear Market on Wall Street
    Stock prices as measured by the Dow Jones Industrial Average fall by over 45%. Prior to the giant bubbles of the Greenspan/Bernanke era in tech stocks and housing, the 1973-1974 crash was the worst bear market since the Great Depression. A huge driver of the crash in stock prices was the inflation and enormous economic uncertainty created by Nixon closing the gold window.

    1974: Several OPEC countries raised the dollar price of oil from $4.31 to $10.11. The price increase was to be effective January 1, 1974. This was the first sign of the USD devaluation via monetary inflation. While this was an enormous increase in dollar terms, from the standpoint of the oil exporting countries it only returned prices to their historical range under Bretton Woods. In 1971 and under Bretton Woods, one ounce of gold was priced at $35 and the price of oil was around $3.50 per barrel. Stated differently and in terms of the common baseline of gold, ten barrels of oil could be exchanged for one ounce of gold. Even after the enormous price increase of January 1974, oil was still roughly priced at the same 10-barrels per ounce of gold that existed in 1971! (At the end of 1973, gold traded for approximately $106 per ounce. At this dollar price of gold and an oil price of $10.11 per barrel, oil sold for about 10.5-barrels per ounce of gold.) In short, measured in ounces of gold, the price of oil had hardly moved. What had changed wasn’t the price of oil; it was the value of the dollar.

    Not only did it take far more dollars to buy gold, it took far more dollars to purchase wheat, copper and all other commodities. The oil exporting countries realized this. They recognized they were exchanging a limited natural resource, oil, for a paper currency, now backed by nothing, that could be created without limit. This is where the middle East politics got very complicated because of horrendous monetary policy. In the words of a Kuwaiti oil minister, “What is the point of producing more oil and selling it for an unguaranteed paper currency?

    What really happened in Iran?

    The Shah of Iran, who was supposed to be our best ally in the mid East, best summed up the problem from the vantage point of the oil exporting countries, “You’ve (the West) increased the price of the wheat you sell us by 300%, and the same for sugar and cement. You’ve sent petrochemical prices rocketing. You buy our crude oil and sell it back to us, refined as petrochemicals, at a hundred times the price. This is not something a friend does. Maybe now you can understand why the people of Iran are so interested in mining Bitcoin now. It removes the petrodollar peg to the USD.
     
    Theka, JanSz, GavinH and 1 other person like this.
  3. Jack Kruse

    Jack Kruse Administrator

    All the considerable stupidity of Ivy League economics departments and the Clinton administration, acting in concert with Wall Street’s duplicitous greed, could not have amounted to anything had it not been for the Federal Reserve of Alan Greenspan and Ben Bernanke. As far as their collective role in the crisis is concerned, Greenspan and Bernanke basically drove a dump truck full of burning nitroglycerine into an atomic bomb factory. It was their policy of unprecedentedly low rates that fueled the terminal stages of the housing bubble. As mortgage rates dropped in the early 2000s, prices for homes shot higher and higher. It became commonplace for people earning less than $50,000 per year to purchase homes for $500,000 or more. For a time – and because of the criminal irresponsibility of Greenspan and Bernanke – the absurd mortgage math made sense. The house could be purchased with almost no money down and a two-year teaser rate at some equally absurd rate of interest – say 1%. In two years, the house might appreciate by 15-20% and the homeowner could either refinance or sell the house for a profit. Everything worked until home prices simply stopped climbing. Once home prices stopped rising, the housing market – which had degenerated into little more than a Ponzi scheme on a national scale– and the United States were doomed.
     
    JanSz, GavinH, Richard Watson and 2 others like this.

Share This Page