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An Orwellian America

By: Gordon Long | Tuesday, March 12, 2013

Macro Insights - March 2013

Faceless

As a young man, I voraciously read George Orwell's "1984", Aldous Huxley's "Brave New World" and Alvin Toffler's trilogy which included "Future Shock", "The Third Wave" and "Power Shift". During the era of the Vietnam War, I wondered seriously about the future and how it was destined to unfold. Now being considerably older, I have the vantage point to reflect back on my early ruminations and expectations. Unfortunately, I am too old to alter the lessons that are now so painfully obvious. Instead, I pass the gauntlet to those who can understand and take action on what I have unavoidably come to expect for America.


A Framework of Understanding

Huxley Transition To Orwell


The 'Huxley-Orwell' Transition

I recently read a perceptive paper by Chris Hedges that would have made any English Professor envious, powerfully philosophical but not something an Economics department would pay much attention to. I found it both intriguing and enlightening.

I have borrowed so heavily from it, that I am unsure where the lines diverge. Therefore, below I give full credit to Chris Hedges and take full credit for all the bad ideas.

Chris Hedges of TruthDig.com wrote 2011: A Brave New Dystopia, from which the following evolved.

The two greatest visions of a future dystopia were George Orwell's "1984" and Aldous Huxley's "Brave New World." The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.

Orwell 1984 - Huxley, Brave New World

We have been gradually disempowered by a corporate state that, as Huxley foresaw, seduced and manipulated us through:

While we were entertained,

Now that:

.... we find ourselves transported from "Brave New World" to "1984."

The state, crippled by massive deficits, endless war and corporate malfeasance, is clearly sliding toward unavoidable bankruptcy.

It is time for Big Brother to take over from Huxley's feelies, the orgy-porgy and the centrifugal bumble-puppy.

We are transitioning from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled.

Huxley versus Orwell

Huxley, we are discovering, was merely the prelude to Orwell.

Now that the corporate coup is over, we stand naked and defenseless. We are beginning to understand, as Karl Marx knew:

Unfettered and unregulated capitalism is a brutal and revolutionary force that exploits human beings and the natural world until exhaustion or collapse.


Unsound Money Leads To Statism

With this as a backdrop let's explore how Unsound Money in concert with the Huxley-Orwell Transition leads to Statism, the path which I believe we are presently on.

Unsound Money Leads To Statism


The Catalysts Behind The "Transition"

1- UNSOUND MONEY

2- POLICY FAILURES

3- CRISIS OF TRUST

Crisis of Trust

4- AUTHORITARIAN ACCEPTANCE


Crumbling Barriers

Crumbling Barriers 1

ROADBLOCKS

Crumbling Barriers 2

DRIVERS

Let's shift gears and consider what "greases the skids" in enabling this transition in our society to occur.


Collectivism

In The Road to Serfdom, F.A. Hayek showed how governments, supported by a collectivist mindset, always tend towards totalitarianism. Even the most libertarian government thus far created, the government of the United States, has slipped incrementally towards totalitarianism over the past two centuries. This is because it is an inherent trait of a government.

Individualism versus Collectivism

The degree of socialism in the United States increased substantially after the establishment of the Federal Reserve System (1913) and the measures taken during the Great Depression (1929-46) which it created. Ever since the early 1900's the United States has had a two-party system dominated by 'socialists'. The Republican Party has always advocated conservative socialism. The Democratic Party, which in the 19th century favored libertarianism, advocates social-democratic socialism. So long as people are divided by Left and Right, Democratic and Republican, the US is prone to being influenced by factions who transcend party politics and from behind the scenes could possible exert strong control over the United States. They could do this by maintaining power over public opinion and hence over the course of government. Steadily, the United States has been travelling down the road to totalitarianism, and many people have not noticed, possibly because they are only looking at the position on the Left-Right paradigm.

Upon further analysis, it is clear that Left, Right and Centre, are all forms of socialism. In particular, we may call them "social-democratic socialism" (the Left) and "conservative socialism" (the Right). They are both socialism because they both share the principle that the government should "run" and "mold" society, by using legal force and intervention to transfer property and personal wealth as part of the political scientists' process of 'redistribution of wealth'.

The differences are only in the particular ways the government should run society - the methods it should use, and who, exactly, should be the recipients of government wealth transfers and who should pay. In particular:

Nolan Charts: Personal Freedom versus Economic Freedom
Nolan Charts: Personal Freedom versus Economic Freedom

Increasing Size of Government

The modern Republican Party is Center-Right on the Left-Right paradigm. As with the Democratic Party, this obscures the huge range of views Republicans hold on how powerful and how much control the State should be allowed. Their 2008 presidential nominee John McCain, like Barack Obama, strongly favored socialism, though with a Right-wing flavor. Barack Obama (blue circle) and John McCain (red circle) are positioned in the accompanying graphic. Thus, the two main candidates at the 2008 Presidential election represented a false choice - really no choice at all. One candidate, Ron Paul (yellow circle), stood in stark contrast to the candidates, favored by the mainstream media and political establishment. As would be expected, he was neutralized by the mainstream media outlets as a zealot with an unsound political view of America.


The Political Continuum

The Political Continuum


The Emergimg Roadmap To Statism

Let me now develop and explore the roadmap that outlines the path leading from Policy Failures and Monetary Malpractice, stemming from Unsound Money, to STATISM.

First we will build the outline for the basis of a roadmap on a number of observable continuums.

The Emergimg Roadmap To Statism 1

The more complex that issues become, the more collectivism will dominate and individual needs will be repressed. In turn governments will be forced to be more repressive to maintain control over increasing polarization and diverse views and opinions.

The Emergimg Roadmap To Statism 2


Evolving Stages

When we arrange our various continuums we arrive at the representative grid model shown below.

We will quickly acknowledge it is not ideal, but it allows many concepts currently at play to be shown in relationship to others.

Forces of Globalization

This grid is best described as the social forces at play within Globalization - Financial, Economic and Political.


Driver$ - Visible & Invisible

There are both visible and less visible forces at play that are forcing 'greasing' the skids in the movement towards Statism.

Drivers, Visible and Invisible

The roadmap integrates well into our roadmap from our THESIS 2011: Beggar-Thy-Neighbor / Currency Wars and 2012 Thesis: Financial Repression papers.

The Unfolding Outlook

The Unfolding Outlook


Orwell's 1984 Is Happening

We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a 'terrorist' attack by indebted college youth, it is only a matter of time and circumstance.

Police State 1
Police State 2
Catalysts For Further Advancing a Police State

 


Thesis 2013: Statism

Listen to our YouTube Videos on this whole subject. FREE LIBRARY. To read more, go to GordonTLong.com.

Get your Free Copy of Thesis 2013: Statism

 

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

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