We're done folks. CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe. That's the end of it. The belief that there are more MF Globals has now taken hold. The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.− Market Ticker

Dominant Social Theme: By expanding the regulatory state, we can make things better.

Free-Market Analysis: One of the main emergent US dominant social themes is that the government and regulators must step in to clean up the market and make it safe for investors. The idea is that the larger modern marketplace is very necessary for the functioning of modern society and that one must "clean up fraud" so that people will "trust" the market again.

This meme is being enunciated aggressively all over the place lately, and we have done our best to point it out. It is based on a misapprehension and is placing good people into rhetorical boxes where they decry modern finance but turn to the US's penitentiary-industrial complex for solutions. Here's more from the article excerpted above:

The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk. The market is done folks. You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.

We're there folks. Oh sure, there will be rallies and there will be selloffs. But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety. This isn't just about speculators – it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.

More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe. The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.

The article basically predicts a catastrophic sell-off if the "crooks" aren't punished. But is that what's really wrong with the market? Will, say, sex come to a screeching halt if rapists aren't rounded up? Will eating cease to take place if the FDA is rendered defunct? Will people cease to sleep soundly if the US removes some (or even all) of its 900 military bases around the world? We tend to doubt it.

See, what this article does is conflate the current marketplace with the Invisible Hand. But they are not the same, not in any way. No, what may eventually come to a "sudden stop" is THIS market and THIS commerce. The same market and commerce that the Federal Reserve spent US$16 trillion propping up. The same market driven by central banking fiat funny money.

All modern markets, in fact, are phony because the money driving these markets is not free-market money but is monopoly-bank issued money. When you have a monopoly in money, you cannot have free markets or anything close to them. The US hasn't had free markets and free money since some time after the Civil War. Europe is in the same predicament.

The power elite that has seemingly planned the current crisis (and is losing control of it, in our view) is behind the current economic system. They are doing their best to fight the spreading enlightenment about the way the world works – an illumination created by what we call the Internet Reformation.

In order to fight the spread of this meme, the elites have embarked on an elaborate manipulation that mimics that of the early 20th century. The most recent tactic in our view involves the recent, spreading government protest calling for the arrest of "Wall Street" crooks.

In fact, Wall Street in its initial incarnation is a "middle man" that performs an intermediary function. What OWS and other current protest-movements are calling for can basically be summed up, at least partially, as middle-man prejudice. Is there "wrong" being done on Wall Street? Sure. But is that the REAL problem? Do the real "controllers" reside on Wall Street? Are we sure they do?

The problem, in our view, is that there is a small group of people, what we call an Anglosphere Power elite, that controls the creation of money in the world. These people work as a cabal, a kind of mafia, and hire others of their own religion and similar backgrounds to carry out their vastly ambitious schemes.

"Wall Street" is a creation of this modern mafia. Remove Wall Street entirely and it won't make any difference, unfortunately. Those who work on Wall Street or anywhere throughout the world are not responsible for the system; they are for the most part merely exploiting it as best they can.

Some of these people may be "crooks" in common parlance, perhaps "big crooks," but the larger issue is the system itself, which resembles in some sense, an empire during its most corrupt days. Does one "cure" an empire via law enforcement? Or is the problem a good deal more basic than that and involves systemic corruption at the core of society?

In fact, those who advocate "law enforcement" to cure the West's money problems are providing a "fix" that likely does not offer a realstic anodyne. The problem is not one that can be rectified by prison. It is not a case of a "few bad apples" or even many bad ones. It is the system ITSELF that is damaged. (Actually, it was likley built cold-bloodedly to provide the ruin we now struggle with.)

What's the REAL solution? Simple. The modern ruin afflicting the world could be done away with if monopoly central banking were ended and free banking (money competition) became the societal standard. Shut off the spigot of central banking and Wall Street deflates into its middle-man role. Corporations shrink. Standing armies are disbanded as too expenseive.

Money-from-nothing is the root of the modern dillemma. And more and more people know it. Central banking has never been under the scrutiny that it is now, not since it began to take over the modern global economy some 100 years ago. It is quite possible, as we have been predicting for years now, that central banking may fail entirely or undergo significant change as a result of a dawning comprehension, worldwide, of its destructiveness.

But the power elite that created central banking and supervised its expansion, isn't ready to surrender it precious money-from-nothing facility yet; or even to change its attributes by installing some sort of government-run gold standard (another ruse that has been used in the past). It is fighting back as hard as it can by apparently creating a whole series of controllable false flag protest movements and "leaders" like Julian Assange.

When it comes to attacks on Money Power itself, the Anglosophere elites have turned to an old playbook, one that last proved effective in the early 20th century. Then, as now, they pointed fingers at corrupt "banksters" and Wall Street in order to absolve the larger money system from blame. This sort of directed history actually allowed central banking to gain rather than lose power and authority, though it was central banking that had caused the Great Depression and subsequent recessions.

They are not that imaginative, this bunch. They apparently control money supplies around the world and this gives them appearance of infallibility; but if we can figure it out, anyone can. Here's a chart we published previously:

VIDEO: Parallels Between Early 20th Century and Present Are Scary

Back in the early 20th century, the same sociopoliical paradigm seems to have been initiated in the US. The elites created a movement called "progressivism" and then drove through a large-scale shift in how American elections were held. By emphasizing direct democracy (today's buzzword as well) the country's larger destiny was placed in the hands of mercantilist enablers of the Anglosphere power elite.

To ensure that the larger central banking meme was not challenged, the power elite mounted a campaign to punish Wall Street and bankster crookery. The story that greedy Wall Street banksters had been responsible for the Depression took hold. In fact, history reveals that it was the New York Fed that was behind the 1929 Crash; these central bankers printed so much money they caused first a boom and then a bust.

The same thing has taken place today. It was low interest rates and high-volume money printing that caused the crash of 2008 and subsequent economic crisis. And now the same tactics are being repeated. The idea is to whip up a wave of populism that will drive Congress toward special hearings aimed at "banksters" and Wall Street generally.

This will have two effects. One, the finger of blame will be pointed at the enablers of Money Power rather than Money Power itself. Second, the entire illegitimate arsenal of modern American law enforcement will be brought to bear, including RICO and other unconstitutional laws and regulations.

What are the ramifications? Basically, the anger over the current system shall be turned in on itself. The painful construct of American authoritarianism shall be employed by those who are most angry at the system; they will utilize its tools of oppression to pursue those at whom they are aggrieved.

The article above reinforces the meme that putting top Wall Streeters in prison will "cure" the market and restart the current system. In truth, the modern money system is likely dead. It was killed deliberately by those powers-that-be that are trying to prop it up just long enough move the system to a one world government. They use the meme of crooked "banksters" and financiers to distract people from the West's deeper problems, and from their one-world goals. It's happened before.

Attribution updated on Nov. 26th.