Notes From Underground: For the Sake of Capitalism, Pepper Spray Davos

Please, PEPPER SPRAY ALL THE ATTENDEES OF DAVOS in order to halt the rape of taxpayers and consumers across the globe. This annual conclave is responsible for more wealth destruction and the widening disparity in GINI coefficients than any public policy. I believe that the cost of attending Davos is priced at such an extravagant rate because it is a giant insider scam. Hobnob with politicians and policy makers in an effort to be part of the “smart money” crowd. It was the great moral philosopher and economist Adam Smith who so presciently noted: “People of the same trade seldom meet together, even for the merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” The conspiracy against the public has been the financial repression of the global middle class in an effort to bail out those who are attached themselves to the public treasury to maintain the “animal spirits” of crony capitalism.

The cost of an entrance pass to this private/public  congress of mover and shakers should sound an alarm to all those who desire transparency in financial markets. In contemporizing the words of Adam Smith, Samuel Huntington was credited in the online research cite, Acton Commentary, as creating the phrase DAVOS MAN: “A soulless man, technocratic, nationless and cultureless, severed from reality. The modern economics that undergirded Davos capitalism is equally soulless, a managerial capitalism that reduces economics to mathematics and separates it from human action and human creativity.”

Friday’s release of the 2010 FOMC transcripts reveals that Chair Bernanke raised concerns “… about inappropriate access to information by outsiders other than the media, including consultants, market people and so on.” It was earlier revealed that Bernanke had held discussions with ECB President Trichet about the seriousness of the European sovereign debt crisis. The Reuters story post-transcript release–“Fed Helped ECB With Swaps after Trichet ‘Personal Appeal'”–quotes Chairman Bernanke: “Yesterday [ECB Chief] Jean-Claude Trichet called me and made what I would characterize as a personal appeal to re-open the swaps that we had before,” Bernanke told his colleagues at the UNSCHEDULED meeting.”

In a further analysis by Reuters, the article notes, “The transcripts, which are released after five years, show how closely Bernanke worked with Trichet, who shared ‘highly confidential’ information about the ECB’s part in a trillion-dollar ‘shock and awe’ rescue plan launched by EU leaders to combat an escalating financial crisis in Europe.” Ten months later Chairman Bernanke is openly warning FOMC members about leaks from its meetings. Curious about how much the DAVOS crowd made from the whispers emanating from the Fed Board Room? It costs more than $600,000 to be a strategic partner at Davos and be allowed into the most high-level meetings with the most important CEOs and policy makers. But if the inside scoop is info beyond the ears of mere mortals PRICE IS NO OBJECT BUT INSIDER PROFITS CERTAINLY ARE. More pepper spray to stop the rapes.

***Tonight, China releases GDP data as well as retail sales and  industrial production numbers. The market is looking for 6.9% on q/q GDP growth but it seems that Premier Li stated over the weekend that GDP hit 7% as there was  stronger jobs  growth and services were growing even as manufacturing was slowing. The Chinese are very capable massagers of data as they seem to always be within 0.1% of market expectations (it’s like Jack Welch’s ability to meet Wall Street expectations). If China is looking to stem some of the recent weakness in its equity markets and the Chinese currency look to see what the impact is for both asset classes if we receive stronger than expected data. If the numbers are “stronger” and the Nikkei and other equity markets don’t hold a rally more selling may emerge as we head into the Western markets.

Just to note: The markets were eerily quiet today in the face of the lifting of sanctions on Iran and the election of Ms. Tsai in Taiwan with a resounding victory. The Taiwan issue will simmer as Tsai ran on a platform opposing increased cooperation with Beijing. Her Democratic Progressive Party supported a platform greater support for a greater Taiwanese identity. If the negotiations with Beijing become confrontational, look for Beijing to send an economic message to Taipei and another sort of message to Taiwan’s chief sponsor: the United States. But with these two events the markets were very subdued.

***There was an important article from Bloomberg News (Buergin and Jennen) on Friday, titled, “Merkel Urged to Pass Message to Draghi: End Record-Low Rate.” Chancellor Merkel hosted ECB President Mario Draghi in a private meeting in Berlin. Members of Merkel’s own CDU party advised the Chancellor to address the concerns of Bundesbank President Weidmann that ultra-low rates were hurting German savers and retail investors. German lawmakers also wanted to know if the ECB has an exit strategy from QE. It may be that President Draghi was seeking Merkel’s support in increasing QE or lowering rates further at the meeting this Thursday. Merkel has been the strength behind Draghi in his battle with Weidmann and the hard money crowd. The recent decline in Angela Merkel’s popularity will force the Chancellor to a BIG NEIN to any new ECB easing. In order to know for sure we will have to wait from trades emanating from the Davos hotel rooms or else the FOMC transcripts in 2021.


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22 Responses to “Notes From Underground: For the Sake of Capitalism, Pepper Spray Davos”

  1. asherz Says:

    I’m not sure you meant to say the Angie’s popularity has RISEN, as her unpopular refugee policy which was followed by the sexual harassment of German frauleins has caused the public and media to question her open border platform, with a major paper asking whether she is the right person to lead the nation.
    Davos is a club which requires a high entrance fee, but the ROI is considerable. Martha Stewart went into the clink for far, far less than the high level whispers and winks that abound there
    Davos is the town that was the location of Thomas Mann’s The Magic Mountain, where a sanatorium for tubercular patients went for their cure. Many died there and I’m afraid that your pepper spray would certainly not be conducive to the well being of that population. Despite this, many of us applaud your suggestion, followed by some extensive 10b-5 convictions.

  2. John DAndrea Says:

    Great Piece Ira… This could be Your Finest Yet… Thank YOU…

    Date: Tue, 19 Jan 2016 00:10:12 +0000 To:

  3. the american limey Says:

    If you are going to call to arms any group I would suggest anonymous. Pepper spray is fine but to really do something takes

    • yra Says:

      Limey—no call to arms but merely an act of self-defense to the rape of investors both large and small.Even the herding of pension is no protection from the financial rape of those seeking a quality fiduciary

  4. Alex Says:

    Napalm spray is far more effective…

  5. El Contango Says:

    I have been thinking similar thoughts since the barrage of commercials on CNBC about how important it is. Humbug! Bunch of elitist Hagfish who just want to be photo-oped and interviewed on TV and all the Lamprey wannabes. No economic value added to the world. Plus a lot of telling the rest of us what we should be doing to increase their wealth… and make their world better. That said, I wonder if there is a correlation to the stock of General Dynamics for the Gulfstream G650 orders?

  6. Chicken Says:

    And the victims just lie there motionless….

  7. Chicken Says:

    Go on, take the money and run…

  8. “For the Sake of Capitalism, Pepper Spray Davos” | Liberty Blitzkrieg Says:

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  9. D Says:

    Nah, don’t pepper spray them. Send them the ‘Syrian refugees’. Of course tell said refugees their country is a basket case due to said Davos attendees, first.

    • yra Says:

      d—-amazing they have four thousand armed police and soldiers protecting davos—i’d prefer michael corrleone with his hand in his coat

  10. “For the Sake of Capitalism, Pepper Spray Davos” | State of Globe Says:

    […] of the crony capitalist crooks congregating in Davos. The first few paragraphs of his post, For the Sake of Capitalism, Pepper Spray Davos,Read […]

  11. asherz Says:

    This link gives 8 reasons for the fall of the 500 year run of the Roman Empire. Just change the protagonists and see how similar the causes of Western Judeo- Christian, Adam Smith, Max Weber’s Protestant Ethic, Capitalist society, failing and the rise of today’s barbarians, gives one pause. And this in under 300 years.
    The Davos group had no small part in accelerating this movement of history.
    No one of the bad guts depicted in the Big Short went to jail and the moral hazard played on..
    Is this assessment too harsh? Let’s all hope so.

  12. "For The Sake Of Capitalism, Pepper Spray Davos" | CAPITOL ZERO Says:

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  13. "For The Sake Of Capitalism, Pepper Spray Davos" | ValuBit Says:

    […] of the crony capitalist crooks congregating in Davos. The first few paragraphs of his post, For the Sake of Capitalism, Pepper Spray Davos, are a must […]

  14. “For The Sake Of Capitalism, Pepper Spray Davos” | NewZSentinel Says:

    […] of the crony capitalist crooks congregating in Davos. The first few paragraphs of his post, For the Sake of Capitalism, Pepper Spray Davos, are a must […]

  15. "For The Sake Of Capitalism, Pepper Spray Davos" | Says:

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  16. The Daily Debt Rattle | StealthFlation Says:

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  17. Notes From Underground: The Rallying Cry Remains, “Pepper Spray Davos” | Notes From Underground Says:

    […] my displeasure about the annual gathering in Davos for the past five years (last year’s Davos post is below). My battle cry was (ans continues to be): PEPPER SPRAY DAVOS, a response to the heinous […]

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