Have We Entered SystemeD Economically?

2015 November 10
by drdog09

First a definition:

[Fr] In recent literature on the informal economy, System D has become a shorthand name for the growing share of the world’s economy which makes up the underground economy, which as of 2011 has a projected GDP of $10 trillion

The let’s review the latest from the Fed —

But they can provide the conditions for disguising it, especially in the statistical hall of mirrors that once-upon-a-time produced meaningful signals for the movement of capital. Instead of reality-based choices and decisions, the task at hand for the people in charge has been the ever more baroque elaboration of a Potemkin economic false-front, behind which lies a landscape of ruin scavenged by desperate racketeers. That this racketeering has moved so seamlessly into the once-sacred precincts of medicine and higher ed ought to inform us how desperate and perilous it has become.

The latest installment of the disinformation game was Friday’s employment release from the US Bureau of Labor Statistics. It was a “blockbuster,” implying blue skies everywhere from Montauk to Malibu. Except that no one with a remaining shred of critical faculty can be expected to believe it. 80 percent of the new jobs numbers were attributed to the mystical birth-death model, a pseudo-scientific fantasy of hypothetical new business starts and associated hypothetical new hires. Demographically, the most new jobs went to the over-55 age cohort — grocery baggers and Walmart greeters — and the fewest to men 25 to 54 (that bracket substantially lost jobs). The official unemployment rate fell to 5.0 rate, with no meaningful discussion of the huge numbers of discouraged people who have dropped out of the workforce.

But the perception of an economy on full throttle chug sent the stock indexes up. The Dow, the S & P and the NASDAQ are the only signaling mechanisms that the legacy media pays attention to, and the politicos take their cues from them, in a feedback loop of false information that begets more delusional positive psychology in those same markets. I suspect the sentiment that reigns now is about nothing more than getting through the holiday season without a financial accident.

But this Fed now finds itself in a trap of its own making. Having so interminably yapped about the interest rate hike, the central bank will have to put up or shut up in December. Only the year-final BLS employment figures might give them an out, if the numbers don’t look so phosphorescent. I think the truth is, this phony baloney economy can’t withstand even a measly quarter-point benchmark interest rate hike. For one thing, it would blow up the operating models of Fannie Mae and Freddie Mac, the buyers of home mortgages who are keeping the construction industry on life support, as well as the parallel rackets in securitized auto and student loans. Imagine all the derivatives bets that would go south. In reality, the Fed knows that it will have to shovel more ZIRP money into the debt-saturated maw of a dying financial leviathan. It can do that, of course, and probably will in the coming winter of 2016, but when that time comes, it will have absolutely no credibility left. And the leviathan will be a little closer to heaving up dead on the beach.


Now lets ruminate a little. We have the largest out-of-work contingent since president Yellow Sweater. The disability trust fund is about to be run dry sometime in late 2016. Piece work functions like Uber and Amazon Flex are going gang busters (and killing the medallion owners to boot). Free lancing has been the rage since the turn of the century for IT and it is only growing with all the layoffs.

The import of all this? Not everyone is on disability. Nor welfare. 25 million Americans are making a buck to keep their heads above water. Most under the table. I would offer that they are practicing SystemeD whether they know it or not. Some making more this way than they ever did working for ‘The Man’.

Problem? At the base level no. The idea of the self-made man is a pillar that help found this country. Need more of it. But it does pose a problem for the Gub’mt. It was bad enough that they had to put up with the self employed, but now they have to chase down the under-the-table entrepreneurs. The IRS has not even received the budget for the staff to implement Obamacare, they won’t have enough to find these guys. As the economy keeps sinking taxes are lost. Eventually the Gub’mt will recourse to raise corporate rates yet again only to see more Corps leave these shores. The death spiral begins.

We are at the cusp of SystemeD being the only way out for many. Worse if the immigration mess is not resolved with deportations.

34 Responses leave one →
  1. 2015 November 10 7:30 am
    drdog09 permalink

    Solve it yourself — http://news.yahoo.com/funeral-planned-boy-killed-marshals-shooting-102538793.html# — Cause a cop showing up at the scene has a 50/50 chance of making it worse.

  2. 2015 November 10 7:37 am
    justrand permalink

    Happy Birthday, Marines!!

    Semper Fi

  3. 2015 November 10 8:08 am
    bc3b permalink

    Horrible Week for the NFL

    BJG Football Standings

    College Division
    bc3b: 124-64/14-6
    JBoz: 122-66/13-7
    Fight On: 115-710-10
    Deckard: 111-77/13-7
    Mullet: 111-77/13-7
    MI Conservative: 106-82/13-7
    Justrand: 101-87/11-9
    RP: 97-91/7-13

    NFL Division
    Deckard: 76-36/6-5
    MI Conservative: 75-37/6-5
    bc3b: 73-39/7-4
    Mullet: 69-43/6-5
    Justrand: 66-46/4-7
    TLS: 64-48/5-6
    Fight On: 64-48/3-8
    RJH: 57-55/2-9

  4. 2015 November 10 8:09 am


  5. 2015 November 10 8:27 am
    bc3b permalink

    All the new jobs created during the past 15 years have gone to immigrants.


    I listened online to Trump speak in Springfield, IL last night. There wasn’t a thing he said that I could disagree with. No one else is talking about making America great again, putting Americans first, etc.

    Like I said last week, we need pr!ck for president. Someone who isn’t afraid to tell Mexico, Japan, China, Saudi Arabia, etc. to shove it. Trump is not as conservative as I would like on some issues, but he is a nationalist and that’s what the country needs at this point in time.

    Trump made a good point. We spend hundreds of billions to protect Japan, Europe, the Saudis, etc. and will go to their aid if they are attacked, but it’s a one-way street. They are not bound to come to the aid of the US if we are attacked. Trump is saying things that no one has had the courage to say in 30 years.

  6. 2015 November 10 9:02 am
    drdog09 permalink


    Semper Fi indeed!

  7. 2015 November 10 9:33 am



    God Bless America !

    Regardless of your religious affiliation – you gotta love this one!!


    A US Marine enters the Catholic Church confessional booth in Hendersonville , NC .

    He tells the priest, “Bless me, Father, for I have sinned.

    Last night, I beat the ever-living crap out of a flag burning, cop hating, Obama loving protester.”

    The priest says, “My son, I’am here to forgive your sins,

    not to discuss your community service.”

  8. 2015 November 10 9:38 am
    drdog09 permalink

  9. 2015 November 10 10:12 am
    mulletover permalink

  10. 2015 November 10 10:15 am
    drdog09 permalink

  11. 2015 November 10 10:37 am
    justrand permalink

    Mullet, in re. #9..my biggest fear is that they will be patient. If they are, then Western civilization will collapse on its own.

    But if they aren’t patient, then there might just be enough of us left to fight them.

  12. 2015 November 10 10:47 am

    11 ~~doublethink/newspeak

    Tyranny comes on little cat feet,
    It doesn’t announce itself, it’s very discreet,
    It sits looking over harbor and city,
    There are those who thinks it’s pretty,
    But once ingrained, liberty is gone,
    On silent haunches it sits,~~~then moves on.

  13. 2015 November 10 11:12 am
    bc3b permalink

    Associated Press plays Captain Obvious: Ferguson protests influenced actions at University of Missouri:


  14. 2015 November 10 11:15 am
    bc3b permalink

    justrand –

    Mullet, in re. #9..my biggest fear is that they will be patient. If they are, then Western civilization will collapse on its own.

    Ever notice how only whites are suicidal with regard to their culture? Asians aren’t, Muslims aren’t, black Africans who never invented anything in their entire history aren’t. Yet whites have declared moral relativism – all cultures (no matter how backward – are equal.

  15. 2015 November 10 11:17 am

    15~~~white guilt syndrome at it’s finest.

  16. 2015 November 10 11:31 am
    drdog09 permalink

    Here’s what industrial depression looks like — http://www.zerohedge.com/news/2015-11-09/what-industrial-depression-looks-photos-australian-heavy-machinery-auction — Australia, but its happening all over.

  17. 2015 November 10 11:35 am

  18. 2015 November 10 11:40 am

    Time for a veto override?

  19. 2015 November 10 12:55 pm
    drdog09 permalink

    Missouri explained.

  20. 2015 November 10 2:27 pm
    drdog09 permalink

    BC, one for your office wall —

  21. 2015 November 10 4:25 pm
    justrand permalink

    Mizzou, Yale, Berkerley…et al

  22. 2015 November 10 5:14 pm
    justrand permalink

  23. 2015 November 10 5:14 pm

    23~~~A parody, but in the near future, a distinct possibility.

  24. 2015 November 10 5:19 pm
    gnqanq permalink

    JR – I agree with you. I just don’t believe there is enough time left for them (left & Islam). We are on the brink of economic collapse which is going to throw the whole world into a tizzy. Hundreds of millions if not billions are going to die.

  25. 2015 November 10 5:29 pm
    justrand permalink

    Gnqanq, I agree…sadly, but I agree. My sadness is for my kids and grandkids.

  26. 2015 November 10 8:43 pm
    fight on permalink

    five minutes in frank luntz calls debate for rubio and Jeb!


  27. 2015 November 10 8:44 pm
    fight on permalink

    Dr Ben please stab Kasich and don’t hit the belt buckle

  28. 2015 November 10 9:01 pm
    gnqanq permalink

    fight on – I wish he would, to save the nation and the state of Ohio. Last time he ran for governor (2nd term), I voted 3rd party. Just could not pull the lever as he betrayed almost everything he stood for as a conservative.

  29. 2015 November 10 9:26 pm

    Those pussies from westerville were always pushovers, go cardinals.

  30. 2015 November 11 8:49 am

    Kasich should be running against Hilary in the D primary if he actually wants to be president.

  31. 2015 November 11 9:26 am

    French sink US Carrier and escort ships…. in drill exercise.

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