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The Federal Reserve Warns About The Dangers Of The... Federal Reserve

Tyler Durden's picture




 

A not very long time ago, in a galaxy known as the Milky Way, the member of an occult group of sinister individuals warned that should this group ever get to a point where it believed it could fix fiscal problems through printing money, this would present "a paramount risk to the long-term welfare of the U.S. economy." The group is better known as the Federal Reserve and the individual was Dallas Fed president Richard Fisher. The same Richard Fisher, who recently wrote about the FinReg unaddressed concept of how Too Big To Fail will lead to another massive systemic crash, went as far as saying that "even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens" would be disastrous, and that "the Federal Reserve will never let this happen. It is not an option. Ever. Period." Boy, was he wrong. Nonetheless, Fisher's speech from May 28, 2008 before the Commonwealth Club of California, should be read by all Keynesian fanatics as it is without doubt one of the most lucid presentations of rational thought from the ranks of the Fed. With observations such as that "we know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on", one may only hope that all those who advocate even more rampant spending and irresponsible money printing to "fix" the economy, will finally see the light. Alas, mired in their own stupidity, they won't. And Fisher's words, so prescient in 2008, yet so ignored, will suffer the same fate today, and the Fed will continue on its way to singlehandedly destroying this once great country.

Key excerpts from Federal Reserve member Richard Fisher's speech (please forward to your representatives):

The even more disturbing dark and dirty secret about deficits—especially when they careen out of control—is that they create political pressure on central bankers to adopt looser monetary policy down the road. I will return to that shortly. First, let me give you the unvarnished facts of our nation’s fiscal predicament...

...It is only natural to cast about for a solution—any solution—to avoid the fiscal pain we know is necessary because we succumbed to complacency and put off dealing with this looming fiscal disaster. Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to repay, have seized upon an apparently painless solution to this dilemma: monetization. Just have the monetary authority run cash off the printing presses until the debt is repaid, the story goes, then promise to be responsible from that point on and hope your sins will be forgiven by God and Milton Friedman and everyone else.

We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid.
 
Earlier I mentioned the Fed’s dual mandate to manage growth and inflation. In the long run, growth cannot be sustained if markets are undermined by inflation. Stable prices go hand in hand with achieving sustainable economic growth. I have said many, many times that inflation is a sinister beast that, if uncaged, devours savings, erodes consumers’ purchasing power, decimates returns on capital, undermines the reliability of financial accounting, distracts the attention of corporate management, undercuts employment growth and real wages, and debases the currency.

Purging rampant inflation and a debased currency requires administering a harsh medicine. We have been there, and we know the cure that was wrought by the FOMC under Paul Volcker. Even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens, should it take root, is a paramount risk to the long-term welfare of the U.S. economy. The Federal Reserve will never let this happen. It is not an option. Ever. Period.

Of late, we have heard many complaints about the weakness of the dollar against the euro and other currencies. It was recently argued in the op-ed pages of the Financial Times [3] that one reason for the demise of the British pound was the need to liquidate England’s international reserves to pay off the costs of the Great Wars. In the end, the pound, it was essentially argued, was sunk by the kaiser’s army and Hitler’s bombs. Right now, we—you and I—are launching fiscal bombs against ourselves. You have it in your power as the electors of our fiscal authorities to prevent this destruction. Please do so.

Full speech here

h/t Justin

 

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Wed, 06/16/2010 - 10:17 | 416924 schoolsout
schoolsout's picture

Well....what can I say?

Wed, 06/16/2010 - 10:44 | 416979 chumbawamba
chumbawamba's picture

GOLD BITCHES!!

Wed, 06/16/2010 - 11:41 | 417098 schoolsout
schoolsout's picture

That works...

Wed, 06/16/2010 - 10:47 | 416987 ZerOhead
ZerOhead's picture

How about...

Great job once again Ty!... keep sounding the alarm bells.

 

Or (Like your mother used to say....)

 

"If you don't have anything good to say about the Federal reserve?"

"Say it often!"

(Line borrowed from 'Ed the Sock'...  who himself was ripped off to create Conan's "Triumph the Insult Dog")

How about the Obama expose on the Daily show last night? Jon Stewart Rocks!!!

 

Wed, 06/16/2010 - 11:51 | 417112 chinaguy
chinaguy's picture

Yeah, but only after Obama's poll numbers dropped, has Jon Stewart finally called Obama out on his 180' degrees of hypocrisy. Up till now, Stewart has been preforming fellatio.

Flame me if you like, but Kramer, Stewart, take your pick...it's all "just a show".

Wed, 06/16/2010 - 12:01 | 417123 ZerOhead
ZerOhead's picture

I understand your point... however I had stupid misplaced hope in Obama as well... many people did.

The question is not what did he think before... the question is what is he doing now. And in that light he is performing admirably. Where else do you see worthy criticism of Obama from the 'Left' ?

When his former supporters become his detractors... he must begin to pay attention and do what is right. Or just be content collect the tens millions of dollars that await him upon his forced 'retirement'.

Wed, 06/16/2010 - 12:15 | 417167 chinaguy
chinaguy's picture

I made a protest vote for Ron Paul. All of the recent presidential candidates IMO were just sock puppets.

My problem is not with Obama (or which ever placeholder currently sits in that chair) but Jon Stewart's populists nonsense, which changes direction based on focus groups...again, it's "just a show".

But as for what Obama is doing now (donning asbestos underwear) he's doing the best an overwhelmed, inexperienced, academic can do in a situation which is entierly gamed all around him. Just IMO

Wed, 06/16/2010 - 12:33 | 417198 ZerOhead
ZerOhead's picture

Ron Paul is NOT a protest vote. You chose well. You do not need to subcribe to his entire ideology to support the man's general thrust... ( no pun intended). He is worthy of holding a seat for his stance on the Federal Reserve alone even if he turned out to be a racist, bigot, homophobe, apple pie hater, etc... etc...

We must learn to rise above things like political correctness for at least the time being to concentrate on re-establishing control over our 'own' government. If it took the temporary resurrection of a 'Saddam Hussien' or 'Pablo Escobar' to do it count me in. It is that important people.

That said... love him or hate him... personally I think that wingnut Grayson is the perfect guy to deliver the message.

He came from a life of poverty... made tens of millions already so his early ingrained psychological needs are mostly met... (tougher to buy off!)

And he makes Bernankes bowels churn with his shit-eating grin!

 

Wed, 06/16/2010 - 12:43 | 417230 Gully Foyle
Gully Foyle's picture

I follow Carlins advice.

 

I don't vote. Two reasons. First of all it's meaningless; this country was bought and sold a long time ago. The shit they shovel around every 4 years *pfff* doesn't mean a fucking thing. Secondly, I believe if you vote, you have no right to complain. People like to twist that around – they say, 'If you don't vote, you have no right to complain', but where's the logic in that? If you vote and you elect dishonest, incompetent people into office who screw everything up, you are responsible for what they have done. You caused the problem; you voted them in; you have no right to complain. I, on the other hand, who did not vote, who in fact did not even leave the house on election day, am in no way responsible for what these people have done and have every right to complain about the mess you created that I had nothing to do with.”

 

 

“The next time they give you all that civic bullshit about voting, keep in mind that Hitler was elected in a full, free democratic election”

 

"Now, there's one thing you might have noticed I don't complain about: politicians. Everybody complains about politicians. Everybody says they suck. Well, where do people think these politicians come from? They don't fall out of the sky. They don't pass through a membrane from another reality. They come from American parents and American families, American homes, American schools, American churches, American businesses and American universities, and they are elected by American citizens. This is the best we can do folks. This is what we have to offer. It's what our system produces: Garbage in, garbage out. If you have selfish, ignorant citizens, you're going to get selfish, ignorant leaders. Term limits ain't going to do any good; you're just going to end up with a brand new bunch of selfish, ignorant Americans. So, maybe, maybe, maybe, it's not the politicians who suck. Maybe something else sucks around here... like, the public. Yeah, the public sucks. There's a nice campaign slogan for somebody: 'The Public Sucks. Fuck Hope.'"

 

 

"I have solved this political dilemma in a very direct way: I don't vote. On Election Day, I stay home. I firmly believe that if you vote, you have no right to complain. Now, some people like to twist that around. They say, 'If you don't vote, you have no right to complain,' but where's the logic in that? If you vote, and you elect dishonest, incompetent politicians, and they get into office and screw everything up, you are responsible for what they have done. You voted them in. You caused the problem. You have no right to complain. I, on the other hand, who did not vote -- who did not even leave the house on Election Day -- am in no way responsible for that these politicians have done and have every right to complain about the mess that you created."

 

George Carlin

Wed, 06/16/2010 - 13:14 | 417308 chumbawamba
chumbawamba's picture

I would say we will always miss George, but then we have YouTube:

http://www.youtube.com/watch?v=hWiBt-pqp0E&feature=related

George Carlin is proof there is a God :)  I'm sure he would find that ironic, if not offensive, but he's dead now, so fuck him.

I am Chumbawamba.

Wed, 06/16/2010 - 15:35 | 417772 ZerOhead
ZerOhead's picture

Nice link Chummy... thanks!

Wed, 06/16/2010 - 13:41 | 417387 theprofromdover
theprofromdover's picture

If you don't vote, you have to man the barricades.

Otherwise you are a citizen of nothing.

Wed, 06/16/2010 - 14:11 | 417483 faustian bargain
faustian bargain's picture

George Carlin is funny, but his logic is way off.

If you vote against someone who got elected anyway, that does not mean you helped him get elected. If you do not vote at all (but would otherwise vote against the eventual winner), then you did help him get elected, by reducing the overall electorate pool and increasing the winner's share. If you really don't care who wins, then you're not looking hard enough for the right candidates, and therefore aren't contributing anything to solving the problem. Whether that takes away your 'right' to complain, I don't know.

I'm not saying that choosing to vote makes much of a difference, in the era of corporate-funded campaigns that are increasingly being given a government-enforced duopoly, but I am saying that the person who doesn't vote has no better right to complain than does the one who votes against the eventual election winner.

However, if you voted for Obama (or McCain), you got what's coming to you, and that was not hard to predict even if you only looked at their campaign contributors and their proposed national budgets.

Wed, 06/16/2010 - 15:01 | 417634 ZerOhead
ZerOhead's picture

I have at one time in my life agreed to all of your sentiments. But to willfully do nothing but drop your pants and bend over to your moral inferiors is quickly becoming sheer insanity... and things will soon get much worse.

Avoiding systemic collapse is about the best we can do right now and even then the odds are increasing against us day by day. There will be plenty of pain forthcoming that will provide the motivation for the people to act. If we allow theTPTB the opportunity to provide the next saviour as they did so cleverly did with Obama all hope will be lost.

2010 Midterms... there isn't much time to waste. That said we do have time. We need a simple message and a plan. We can do it. Our very lives may in fact depend upon it.

I say we all take the country back. Plain and simple... the old fashioned democratic way.

Continue to educate the masses... and come up with a simple plan for our own liberation.

It can be done. All we need is a sound idea and a spark to ignite it... and the disenfrachised disoriented and disheartened will awaken and support the struggle for their own economic and political liberation.

I think I know what the plan must look like. That said I've been known to be wrong before... so let's all chip in shall we?

Wed, 06/16/2010 - 17:29 | 418079 Cathartes Aura
Cathartes Aura's picture

But to willfully do nothing but drop your pants and bend over to your moral inferiors is quickly becoming sheer insanity... and things will soon get much worse.

with respect ZerOhead - and I mean that, your posts around the Gulf oil spill have been great - I'm going to disagree here. . .

voting within this system, as it exists, legitimises it, and within the voter's mind, it is a surrender to "well, this is all we have to work with, let's make the best of our vote". . . to me, that's a form of helplessness, of saying, well, I'm owned, might as well roll over & play dead. . . it's learned immaturity, celebrated by the "me me me" culture that encourages never growing up ("who dies with the most toys wins!" crap)

also, voting is a form of living in "the future" - it's always, we'll change things with the next election, which of course, is impossible within this system. . . it's a way to keep people from acting out in fury, it supports the system as it is.

by deciding to not vote, and forming reasons why, and sharing those reasons with others, one exhibits a resistance to the reality profered. . . it can free up the mind to approach daily reality in ways that support self-sufficiency and community, rather than the "rah rah, go red / blue team" sports mentality that is amrrkkn politics. . .

I'm with Carlin, and Gully, here - never voted, never been attracted to the notion nor those who put themselves on offer. . . I think it has helped to shape my mindset of begin with no trust, then allow trust to be formed over time based on actions observed and seen as workable and fair.  I have more time in my life to support real humans that I (can) depend on, not a bunch of "celebrity-type" candidates that do fuck all but suck up resources and pontificate (which of course, is in the job description, no?)

Wed, 06/16/2010 - 17:53 | 418093 ZerOhead
ZerOhead's picture

And the options are? Right.

Listen... I share your sentiments however I believe there is a way out. If we can co-opt just a little of the growing angst the current power regime can be peacefully disassembled. I know that sounds fanatical right now (and my avatar is certainly not helping here...) but it can be done. I know it can.

It will transcend partisan tribalisms... it is an idea whose elements are already supported by a perponderance of the nations citizens. The polling data is there and is solid. It just requires the 'spark'!

Stay tuned... the process starts this weekend!

(It may look ugly at first... but it will refine itself.)

 

 

Fri, 06/18/2010 - 04:25 | 420908 Heavy
Heavy's picture

I might even be able to expand the definition of "...co-opt...the growing angst, the current power regime can be peacefully disassembled." to include something, like, say, the French Revolution?  However, I would say that what I see for options of futures would be less peaceful than that past period.  I hate to be the sceptic, but I'd bet doughnuts to dollars that we see what amounts to a much more serious new east block vs new west block conflict before the people of the US find transcendence.  I tend to think that, because of the extreme nature of the situation, some people will gain massively in their understandings of the workings of society, though the extremity of the situation may just dwarf the few people who are aware enough to operate with some degree of understanding and compassion.  Physics can be a cruel master of the universe, but master it is, and trying to play against the nature of physical value by running a global fiat ponzi after a great victory will swing back into balance with much force.  Beware SDRs and a shortcut out of conplacent debt slavery (not to mention bananna republic style slavery for the diamond finders of the world).  I'd say to be realistic in your expectations for a future awaken among americans especially.   A new system of social order for value exchange will be up for order soon, who are going to be the ones to cook it up (Tyler got the glycerin out of the freezer yet?)?

Z you are a wise one, I'm more just mood posting here, sorry to come off contrarian, just throwing gunpowder at the fire. 

Wed, 06/16/2010 - 14:41 | 417572 Hdawg
Hdawg's picture

A show!!!!

I woke up when i saw my government do things first hand that was against everything i'd been taught.

Wake the fck up you bunch of c*nts that still trying to profit from this rigged-market matrix.

i mean no ill feeling...i'm just losing my mind with you ZH profiteers that are selling their countrymen out because you think you are gaming the system. 

Do your history.  You are playing a less than zero sum game. You fcking children.

Only when you lose everything will you be willing to do something.

- Junk me please.

 

 

Wed, 06/16/2010 - 15:37 | 417649 ZerOhead
ZerOhead's picture

Nah!... you'll have to be more outragious to get junked.

Wed, 06/16/2010 - 15:13 | 417679 sgt_doom
sgt_doom's picture

The strange and peculiar evolution of the BP name:

First it was Anglo-Persian Oil,

Next it became British Petroleum,

Then it morphed into British Poop,

And finally, it is known as....

Barack's Pals.

End of story!@&%*$*(

Wed, 06/16/2010 - 10:18 | 416925 hbjork1
hbjork1's picture

Since  the FED Chairman is appointed and the President is in a catch up shock like state, not likely to be remedied until the next election, it may be too early to start the e-mails.

But the FED Chairman choice is clear.  FISHER!

 

Wed, 06/16/2010 - 13:01 | 417256 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fed choice?

Wed, 06/16/2010 - 14:15 | 417495 faustian bargain
faustian bargain's picture

The choice for the Fed chair and Board, and upper echelon of NY Fed, should be:

a. gas

b. electric

c. injection

d. rope

e. mob

Wed, 06/16/2010 - 15:14 | 417684 sgt_doom
sgt_doom's picture

Old school: guillotine !!!!!

Wed, 06/16/2010 - 10:19 | 416926 Pladizow
Pladizow's picture

"and the Fed will continue on its way to singlehandedly destroying this once great country."

This is the Fed's sole objective.

You cannot have a NWO, with a super power in it.

Wed, 06/16/2010 - 11:54 | 417116 defender
defender's picture

Not true.  You can only have a NWO if you have a super power in it.  There must be an Iron Fist inside of the Velvet Glove.

Wed, 06/16/2010 - 10:19 | 416928 DaveyJones
DaveyJones's picture

reminds me of this

http://www.youtube.com/watch?v=tZeAlvpuyH0

hard to believe our leaders would turn on their words

Wed, 06/16/2010 - 12:40 | 417228 Rusty Shorts
Wed, 06/16/2010 - 13:03 | 417259 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's all about the bank with this guy.

Wed, 06/16/2010 - 13:04 | 417262 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Taking "talks out of the side of his mouth" to a whole new level.

Wed, 06/16/2010 - 10:20 | 416929 VK
VK's picture

The collapse is coming. No way to prevent it now. We had a chance back in 2007/08. There is no way to grow out from the gigantic debt burden we are in, hyperinflation or deflation (Disclaimer: I am a deflationist) leads to massive falls in purchasing powers, the complex supply chains that make our lives possible break down due to a lack of trust and credit. All civilizations decline and collapse, ours will be unique in the size and scale of the collapse. We've never had such a huge distance to fall and with so many people to join us. 

Wed, 06/16/2010 - 10:31 | 416949 Shameful
Shameful's picture

We didn't have a chance in 07-08.  This ball has been in play since the 60s and our fate was sealed in 71.  All we have been doing is playing for time and putting off the final day of reckoning. 

I agree we should be headed into a deflation.  That is the natural response to an inflationary boom, the deflationary bust.  However as the fiat money supply can be expanded infinitely with little to no cost I don't think we will see significant deflation measured in fiat paper terms.  Now deflation measured in terms of gold/oil/wheat/ect then sure, deflation all the way.

Wed, 06/16/2010 - 10:39 | 416972 buzzsaw99
buzzsaw99's picture

The collapse is coming. No way to prevent it now. We had a chance back in 2007/08...

 

This country was hijacked by the money maggots back in 1911. The destruction of teh usa by bank maggots has been assured ever since then.

Wed, 06/16/2010 - 11:41 | 417099 ZerOhead
ZerOhead's picture

I fear you are correct. Heck... I know you are correct.

These idiots had a choice to either cut the Bankster party back and set the economy down into a deep recession or QE their friends out of a giant whole and risk destroying the system.

They chose poorly... as did Obama in keeping them firmly in place when the only logical analysis of their past performance that got us into this mess would be:

A) Gross incompetence and negligence

B) Gross corruption

C) Both

All which should have resulted in their immediate dismissal or incarceration.

Anyone care to disagree?

 

Wed, 06/16/2010 - 12:01 | 417133 buzzsaw99
buzzsaw99's picture

...or QE their friends out of a giant whole and risk destroying the system.

 

Ironically a collapse of the entire system is our only hope of wresting control of this country away from the maggots as well.

Wed, 06/16/2010 - 12:15 | 417165 ZerOhead
ZerOhead's picture

Correct again Buzzy... pressure will continue to build, the masses will become extremely agitated and will be screaming for change.

Unfortunately they will be looking to the bought and paid for... Oligarchic Kleptocratic Two Party State System to provide a real solution that it CAN NOT deliver!

We need to act now to make plans to ensure once this rocketing shitmobile of an economy blows that the same fu$%tards and their masters who got us into this mess are either long gone, or Bernie Madoff's new bunkmates!

The time for a plan is now... and the requisite brainpower is here at ZH.

Wed, 06/16/2010 - 13:03 | 417260 Gully Foyle
Gully Foyle's picture

ZerOhead 

"pressure will continue to build, the masses will become extremely agitated and will be screaming for change.'

What fucking country do you live in?

The masses will be content unless there is no food or no tv or no electricity. Then they will fuck up their own neighborhoods.

First time the troops fire into a crowd that shit ends and they all scurry back home with whatever they managed to loot.

Wed, 06/16/2010 - 13:24 | 417340 hound dog vigilante
hound dog vigilante's picture

Gully, you've spent too much time in the city and the shopping mall.

Yes, many consumers and city-dwellers will cower in fear when the bullets fly... but these lemmings are rather insignificant in the big picture. The significant demographic is the rural and suburban self-styled militia-types that are getting a Phd. in austrian economics right here on the internet. And they own property. And they've read the constitution. And they are armed to the teeth.

In many ways, the incredibly high level of tea party activism has already proven you dead wrong. The tv and electric seem to be working just fine, yet incumbant politicians have been run from office in their own party's primaries. If that isn't agitation and activism, I don't know what is.

To lump the entirety of the US population into the 'couch potato' demographic is myopic, and reveals borderline denial symptoms.

Look at ammunition sales in this country... who knew that so many couch potatos were getting so active and prepared?  Not you, that's who.  Something tells me that when the cities are burning, YOU will be the one in the corner watching Idol re-runs.

 

 

Wed, 06/16/2010 - 13:59 | 417447 chumbawamba
chumbawamba's picture

+FUCK YEAH

I am Chumbawamba.

Thu, 06/17/2010 - 12:02 | 417676 ZerOhead
ZerOhead's picture

Very observant... and probably right on the money.

People know shit is fucked up and TPTB are running out of time to find a solution... that is if at all they truly give a shit for anyone other than themselves or maintaining their grip on power. They will care when the realize that the citizenry understands the true nature of the 'game' they have been playing with us all these years.

They level of angst is rising we all know that or we wouldn't be here. Who would have though 5 years ago that discussion of the powers of the Federal Reserve would be questioned?

Public support for auditing is well over 50% these days... think about that for a moment if you will.

love to eat them mousies

mousies what I love to eat

bite they little heads off

nibble on they tiny feet

 

Coming soon to the ZH Forum...

How to Peacefully Overthrow an Oligarchic Kleptocracy

(The Prologue...  an open workshop... followed later by the main event)

 

By Subcommandante ZerO

 

And if necessary...

How to Overthrow an Oligarchic Kleptocracy (No workshop required)

 

Alternative working title for the 'Administration'...

 

Serious National Security Deficiencies that could lead to the overthrow of our Oligarchic Kleptocracy

 

All opinions welcome... there will be no leaders or saviours here... It's going to be a "We the People" organic production.

This is your Call to Arms...   Let's get this party started!

Wed, 06/16/2010 - 13:25 | 417344 chumbawamba
chumbawamba's picture

Actually, it's TV before electricity (because you can't have the other before the one) and then food.  As long as the electricity stays on I think a lot of people will be content to just die in front of the TV.

I am Chumbawamba.

Wed, 06/16/2010 - 15:14 | 417686 ZerOhead
ZerOhead's picture

Sad... but actually 100% true if we don't act. You have good instincts Chummy!

Wed, 06/16/2010 - 13:53 | 417425 buzzsaw99
buzzsaw99's picture

The masses will be content unless there is no food or no tv or no electricity. Then they will fuck up their own neighborhoods.

First time the troops fire into a crowd that shit ends and they all scurry back home with whatever they managed to loot...

 

The troops will be looting the elite when TSHTF.

Wed, 06/16/2010 - 15:18 | 417702 ZerOhead
ZerOhead's picture

We can only hope that the very system set up to defend them and thier interests turns on them in the end.

However it will first be utilized to suppress the unrest and dissent in the general population first.

Count on it.

Wed, 06/16/2010 - 17:53 | 418116 Cathartes Aura
Cathartes Aura's picture

The troops will be looting the elite when TSHTF.

this is a popular line, it's been posted here (and elsewhere) often, but I'm unconvinced. . . it underestimates the power of military training, a mindset that makes the "troops" special, more intelligent, more worthy, than those they are trained to de-humanise and inevitably kill. . .

do you really believe that if a human target is tagged with a de-humanising" label such as "terrorist" or "insurgent" or "combatant" or whatever the hell new "persona" the government will use, do you really believe the weilder of fancy weaponry AND a paycheck AND a gang of like-minded boys surrounding him, will not shoot to kill on orders?

because my trust has yet to be earned here.  SOMEone is flying planes daily, criss-crossing the nation's skies with poisons that fall onto the populace - and they're NOT afghanistan citizens, nor north korean citizens, or whoever the hell else "hates us" - they're americans.

Wed, 06/16/2010 - 10:51 | 416999 chumbawamba
chumbawamba's picture

As if global hyperinflation were not bad enough, the Gulf of Chernobyl will hasten the decline and make it all the worse.

I am Chumbawamba.

Wed, 06/16/2010 - 11:01 | 417030 ydderf1950
ydderf1950's picture

i agree gom scares the shit out of me

Wed, 06/16/2010 - 13:27 | 417353 Gully Foyle
Gully Foyle's picture

ydderf1950

"i agree gom scares the shit out of me"

Why? It was an eventuality that we would see some either natural or man made disaster. Shit happens. Or fears are predicated on our lack of ability to predict the future.

Wed, 06/16/2010 - 11:31 | 417083 DosZap
DosZap's picture

VK,

To quote one of the Masters...Mr.Sinclair.

"Hyperinflation is a currency, not an economic event"

Wed, 06/16/2010 - 10:23 | 416933 yabs
yabs's picture

why oh why do people not take to th streets to protest against all this currency debasemnet is beyond me

Wed, 06/16/2010 - 10:56 | 417013 chumbawamba
chumbawamba's picture

Because part of the plan, ultimately, was to dumb down the People to the point where they not only can't think for themselves but they can't even provide for themselves when the collapse comes.  The protests will come after the collapse, when there's no food or electricity, and people will be rioting for the days when everyone was, in fact, entitled to a free lunch, a.k.a. today.

I am Chumbawamba.

Wed, 06/16/2010 - 11:03 | 417033 ydderf1950
ydderf1950's picture

damn i have to agree with you again

Wed, 06/16/2010 - 15:20 | 417712 ZerOhead
ZerOhead's picture

He's on a roll and on the money today!

Wed, 06/16/2010 - 11:18 | 417063 centerline
centerline's picture

Right on.  A multi-generational demoralization of society into a welfare state.  It is the lowest state of potential energy from a social standpoint.  That is the beauty of the scam.  It relf-reinforces by leveraging the hedonistic nature of human psychology - and now fear.  Trickle-down poverty.  We were the tools of our own demise and too brainwashed on average to doing anything about it.

 

As long as the bread and circuses continue, people will not take action.  Most in fact will outwardly defend the system like some of Stockholm Syndrome thing.  They will tell people like us that we are nuts for thinking our way of life could radically change here soon (for the worse).  This in complete and total disregard for the massive currency debasement that has occurred since the 70's - or history for that matter.  Just amazing.

 

I think the masses would start to wake up when pensions and entitlements get bush-whacked.  For this reason, I suspect that everything will be done to "kick" this particular "can" down the road further.  QE 2.0 will be sold as a bailout for Main Street - and heralded by the ignorant masses as a victory for the little guy.  It will be a poison pill of course, as we here know.

 

Wed, 06/16/2010 - 11:53 | 417113 chumbawamba
chumbawamba's picture

The most important concept to pass along to people whom you wish to have wake up is the exponential function and its resultant curve:

http://en.wikipedia.org/wiki/Exponential_growth

After you're done explaining that to them, see if they understand by informing them that we're half past the curve and an hour from vertical.  If they don't start hyperventilating at that point then you haven't explained it properly and need to start over.

I am Chumbawamba.

Wed, 06/16/2010 - 14:58 | 417630 Bendromeda Strain
Bendromeda Strain's picture

Just send them to chrismartenson.com - The Crash Course will set them straight.

Wed, 06/16/2010 - 15:40 | 417786 ZerOhead
ZerOhead's picture

We will need a porno version to hold their attention.

Wed, 06/16/2010 - 18:02 | 418131 Cathartes Aura
Cathartes Aura's picture

porn is one of the great distractions, holds the attention more than TV ever could.

 

Wed, 06/16/2010 - 15:41 | 417794 chumbawamba
chumbawamba's picture

I do!  All the time, in fact.

I am Chumbawamba.

Wed, 06/16/2010 - 15:22 | 417715 ZerOhead
ZerOhead's picture

+1000

There are fucking geniuses in attendance today.

Wed, 06/16/2010 - 11:41 | 417097 Hephasteus
Hephasteus's picture

No it's more of a massive focus on specialization so people become as interdependant as possible. All with the money masters in between every transaction taking a cut.

Wed, 06/16/2010 - 11:53 | 417114 chumbawamba
chumbawamba's picture

Good point.

I am Chumbawamba.

Wed, 06/16/2010 - 15:24 | 417719 ZerOhead
ZerOhead's picture

The Goldman "kiss".

Wed, 06/16/2010 - 13:07 | 417272 Gully Foyle
Gully Foyle's picture

chumbawamba

I agree with most of what you said.

I'm not really seeing the massive protests.

What I do see is poor neighborhoods rioting, troops gunning down some, martial law, blah, blah.

Pretty much puts an end to that shit.

Modern US citizens just don't have the stomach for riots and protests, unless they are nice and safe.

Wed, 06/16/2010 - 13:32 | 417368 hound dog vigilante
hound dog vigilante's picture

Bullshit.  When pensions blow up and the $USD plummets (and it will plummet), you will see a side of this country that you have been ignoring for decades/centuries.

The tea parties are just the first chapter. The rabble will soon give up on the political route and take matters into their own hands. IMO, this is already happening on many, many levels... one needs only the courage to look for the signs/evidence.

 

Wed, 06/16/2010 - 15:30 | 417752 ZerOhead
ZerOhead's picture

Whatever the trigger the day of reckoning will most surely arrive.

The Tea Party doesn't even have a coherent message. It is powered by frustration. This will grow as conditions deteriorate.

A 10% of GDP deficit 'stimulus' doesn't even create jobs anymore. This shitshow is sinking fast... only a moron could ignore the truth staring them in the face forever... and he left office in 2008.

Wed, 06/16/2010 - 14:07 | 417473 chumbawamba
chumbawamba's picture

We shall see.

I am Chumbawamba.

Wed, 06/16/2010 - 14:12 | 417487 hound dog vigilante
hound dog vigilante's picture

"We shall see."

 

I think we ARE SEEING, already...

 

Wed, 06/16/2010 - 10:59 | 417020 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Federal Reserve chooses B-52s recovery plan...

http://www.youtube.com/watch?v=8sV-veNm74M

We're in debasement...learning to print...

Wed, 06/16/2010 - 12:20 | 417180 LeBalance
LeBalance's picture

We're in de-penthouse heading to de-basement, without using de-elevator.

WTC towers: Coming to a Lifestyle near You.

Wed, 06/16/2010 - 14:11 | 417482 chumbawamba
chumbawamba's picture

Haha, nice!

Er, wait a minute...

I am Chumbawamba.

Wed, 06/16/2010 - 11:32 | 417086 DosZap
DosZap's picture

yabs,

They have, and contiue to do so..............it's called the Tea Party.

But, the OWNED Gv't media, calls them nuts, and whacko's, redneck racists.

Wed, 06/16/2010 - 10:23 | 416934 Shameful
Shameful's picture

The Fed has two choices, they can save the insolvent financial institutions and keep the debt ponzi rolling or it can save the dollar.  History tells us that with few exceptions the central bank will side with the financial interests and assist the floating of debt.

Some argue that they will not slag the dollar because it is the source of their power.  To that I must ask, does anyone really believe that the Fed would leave the TBTF out to dry?  Or they would allow a failed bond auction?  If the answer to those is no, then the dollar will be destroyed.

I'm a little skeptical about FOFOA but he is right about the connection the the dollar and the dollarized banking system.  In the end one will be saved at the expense of the other.

Wed, 06/16/2010 - 10:31 | 416950 Ragnarok
Ragnarok's picture

What has made you skeptical about FOFOA?

Wed, 06/16/2010 - 10:44 | 416978 Shameful
Shameful's picture

Freegold does not match up with the trends for the last few centuries, that of the constant centralization and increase of governmental power.  Freegold seems to represent a system of wealth in which the nation states and the increasingly dominant governments will have  difficult time in robbing their citizenry through the use of inflation. They will control the medium of exchange, the trading units, but not the wealth storage unit.  As currency would not be a storage of wealth it, then seemingly all would seek to dump the trading units as fast as possible creating a constant, never ending currency crisis.  The trading units would be spent buying goods, services, or into wealth holding assets as fast as possible.  When the public spends the fiat paper like it on fire it, literally it turns into a game of hot potato.

It is not an accident that all nations are running a fiat or faith based currency.  The ability to loot the public by means of inflation is to sweet a plumb for any politician or government to give up.  If the planet were to start a move to Freegold the nation states would respond violently.  They would do everything in their power to keep the faith based fiat system rolling.  Martial law, terror, death camps, confiscation, making gold illegal, nothing would be off the table to the central governments.  Now in this environment I cannot expect Freegold to occur.  For this to happen in many ways Freegold would have to undo hundreds of years of the centralization of power.

I don't doubt that gold will rise.  I just am suspect of the whole premise of Freegold.  Now it may be possible that the big boys and the nation states only trade among each other in gold or a barter system (My soybeans for your machine tools), but I fail to see how the average person would be taking part in this system.  I may be wrong, but it seems to me that it goes against the trends.  I personally would like to see a system where ones wealth can be held outside of the greedy maw of government but I'm doubtful that it will occur.

Wed, 06/16/2010 - 10:49 | 416994 Ragnarok
Ragnarok's picture

In your opinion is it that Freegold and democracy are incompatible or any centralized gov't and Freegold are incompatible?

 

Thanks.

Wed, 06/16/2010 - 11:04 | 417036 Shameful
Shameful's picture

Both.

Democracy as it's commonly defined leads to a centralized all powerful state.   Could go into this in detail, but suffice it to say democracy as we know it (one where a person cannot effectively opt out of the system) will result in a powerful centralized government and dictatorship.  The US is a "democracy" and the Federal Government is basically all powerful.

The centralized state will not allow Freegold because it takes away one of it's favorite tools.  The state loves inflation because it's a tax most people are not really aware of.  The state will not sit ideally by and allow wealth of it's citizens to be outside of it's grasp.  The state exists for it's own aggrandizement.  Trust me the bureaucrats and officials are looking out for themselves not us.  Does anyone here think Sen. Dodd is really looking out for us?  They are basically nothing more then a mob of gangsters that hold the reigns of power.  Even Obama said that the state has a monopoly of violence.  They use this monopoly to shake down the public, like any other gang of thugs.  Freegold would limit or end this shakedown, as far as my understanding of Freegold goes.  The state would naturally do everything in it's power to keep the pillage going.

FOFOA has not explained to me why the state would willingly allow this to happen.  He has said the state cannot stop it.  But I look at places like NKorea and see how far the state is willing to go and I have my doubts.  Like I said I can see it as a transfer between states or maybe big companies but I fail to see how the individual can play the game.

Having said that I'm heavly invested in gold, but to me it's more a play to try to keep something after the inevtiable burst of the fiat bubble. 

Wed, 06/16/2010 - 11:40 | 417096 tictawk
tictawk's picture

The US is NOT a democracy... it is a REPUBLIC.  We are a nation of laws and it is not a "majority wins" situation.  In many cases the majority does help decide the law but in all cases we as a people are ruled by laws and not a majority.  There is a distinction

Wed, 06/16/2010 - 12:39 | 417226 LeBalance
LeBalance's picture

WAS.

For 6 years.

1783 to 1789.

Not since.

Wed, 06/16/2010 - 13:09 | 417288 Gully Foyle
Gully Foyle's picture

 LeBalance

Those six years were good for rich white males. Women, Blacks, Indians got fucked though. Poor did too.

Oh well, still gotta love the illusion.

Wed, 06/16/2010 - 13:41 | 417383 hound dog vigilante
hound dog vigilante's picture

Right. And women, indians, blacks, et al. have it SO GOOD these days?  Because it's all relative, right Gully?

Your "logic" is very weak.

 

Wed, 06/16/2010 - 14:15 | 417496 chumbawamba
chumbawamba's picture

I think the point--and a valid one--is that this country was born in hypocrisy.

I am Chumbawamba.

Wed, 06/16/2010 - 14:34 | 417552 hound dog vigilante
hound dog vigilante's picture

So we should just chuck the whole thing out the window?

When change comes in a pristine, perfect idealogical package please let me know...

Thus the "point" remains weak, imo.

 

Wed, 06/16/2010 - 15:06 | 417657 cougar_w
cougar_w's picture

You chuck it out because you trust your neighbor to join with you in creating something better, that works for the both of you.

You cannot incrementally exorcise a broken system when it instantly corrupts everyone and anything that touches it.

Wed, 06/16/2010 - 16:01 | 417857 chumbawamba
chumbawamba's picture

We've long since passed the expiration date of America.  Thomas Jefferson basically advocated revolution every generation.  That is exactly what we need.  We need a continual refresh of our system to keep it true to the people living it.  If this tenet had been embraced then we would have been able to correct major flaws like the enshrinement of slavery (black men were only fractional humans, etc.) before they became internecine conflicts.

It's time for America 2.0 already.

I am Chumbawamba.

Wed, 06/16/2010 - 18:27 | 418162 Cathartes Aura
Cathartes Aura's picture

+ infinity.

you begin by building trust around you, and encouraging those local to you towards self-sufficiency, not dependency.

(and what chumba said above too - this country was built in hypocrisy).

Wed, 06/16/2010 - 14:32 | 417543 Shameful
Shameful's picture

Nation of laws?  Where the hell have you been?!?  Laws only apply to the little people.  Hell I'm not even asking for the Bill of Rights at this point I would settle for the Magna Carta.  It's simple if you are a tax cow the laws apply to you, if you are part of the master class you are a God.  Think any of us could get away with the stuff GS pulls, or a little assault like Rep. Etheridge?

We are not a nation of laws and we are not free.  We are slaves who are so deluded we think we are free and that the laws constrain the slave masters.  We can't even escape the global plantation unless we renounce our citizenship.  Uncle Sugar demands his tax cut no matter where on Earth we are.  Only two nations do this, the free nations of the USA and North Korea.  Both luminaries of freedom and liberty.

Wed, 06/16/2010 - 15:48 | 417813 ZerOhead
ZerOhead's picture

+1000

Profoundly true!

Wed, 06/16/2010 - 12:58 | 417245 chumbawamba
chumbawamba's picture

The way it works is that everything will just break down.  They have no choice.

They will attempt to hold on to the reigns of power for as long as possible, because they know as soon as they let go they get bucked, and the landing will be hard.

Harder than they even expect, that's for sure.

I am Chumbawamba.

Wed, 06/16/2010 - 14:37 | 417563 Shameful
Shameful's picture

I'm not so sure.  Will our system break, yes.  But what will replace it.  At least in the US this breaks 1 of 2 ways in my mind, Civil War or USSA.  We either see the states try to flee the tyranny of the Federal Government and see another civil war or we face a brutal totalitarian police state out of Mordor (DC).

Those with power will not let the reigns slip easily.  Might also be possible that they are willing to use all manner of hellish weapons to keep the people in line or at least keep their lives from the howling mob.  Doubtlessly some oligarchs will retreat.  I'm sure the Bush's estate in Paraguay is awesome this time of year.

Wed, 06/16/2010 - 15:50 | 417822 ZerOhead
ZerOhead's picture

An interesting "investment" wasn't it?

Something about the non-extradition treaty I believe.

Wed, 06/16/2010 - 11:02 | 417031 chumbawamba
chumbawamba's picture

They would do everything in their power to keep the faith based fiat system rolling.  Martial law, terror, death camps, confiscation, making gold illegal, nothing would be off the table to the central governments.

Give it time.

I am Chumbawamba.

Wed, 06/16/2010 - 11:17 | 417061 jdrose1985
jdrose1985's picture

Great to see you back, Shameful.

Like Trav7777 has said, once the central banks lose control of the PoG it will be game over. It seems to be that even the banksters are disposable. Sure, the TBTF's are on life support but it will take greater and greater measures to continue the shell game.

Basically the ponzi debt system is trying to collapse and all of mankind's efforts are going to keeping the financial system on life support. As energy becomes more expensive we are becoming fainter and fainter and eventually the very highest levels of global management will decide to pull the plug and run for their shelters as us consumables begin to become expendables.

All I can say is that I can't find anything to put my faith in other than my ability to get the fuck away from civilazation to someplace I can survive off the land and let things equalize for a few years. Owning gold is probably good if you can ensure that you will make it to the other side but as far as it buying what you need to survive in the meantime is a laughing matter. If and when the system implodes you will likely see gold hyperinflate against food faster than the dollar vs gold.

 

Wed, 06/16/2010 - 14:26 | 417526 Shameful
Shameful's picture

Great to be back!

The system will collapse, it must.  We have decades of malinvestment, which the market will try to purge.  The purging process at the best of times would be difficult, with the oligarchs calling the shots it will be ruinous.  We seem to be nearing the end point where they can't keep the multi decade ponzi rolling.  Society is so messed up the shock-wave of the purge could leave little behind.  We now have a generation of college graduates who are mired in debt and have no skill.  Hell I myself am getting a degree in a field that is rife with malinvestment.  I thank God I have a skill to fall back on and my general anti-consumerist nature to keep me above water.

I won't say gold alone will save people.  I happen to think that getting a food supply, water filter, and a means of protection trump getting gold.  If it's the choice of buying extra food or a Krugerrand I suggest people start with the food.  Food is cheap, at least compared with what it could go to.  Right now one could get a lot of extra food (and or a filter and protection) for the price of 1 oz of gold.  With all the problems in the Gulf, Monsanto and their evil empire, and more and more mouths, I have to think food prices will go up, or at least not down much.  And if I'm wrong boo hoo, eat your food.  Unless someone figures a way to get around the eating problem having a supply of food won't hurt anyone who has the means to get it.  6+ billion people have an addiction to eating after all.  To me gold is pulling chips off the poker table after you realize the game is rigged, but we all gotta eat.

Wed, 06/16/2010 - 13:13 | 417285 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Save...the....dollar???  You can't save something that isn't there.

Radiohead-There There:

http://www.youtube.com/watch?v=vs1DX32t38c

Wed, 06/16/2010 - 10:24 | 416935 Cognitive Dissonance
Cognitive Dissonance's picture

The powers that be allow this type of dissident thought to be published in order to maintain some degree of credibility. After all, if we can somehow maintain the fiction that the system is capable of reform into something other than the Federal Reserve Death Star, we won't storm the building and burn it to the ground.

This was simply published to enable those who are desperate to find a way out other than the destruction of the system as we know it to dream of a future of milk and honey.

Wed, 06/16/2010 - 10:26 | 416941 Assetman
Assetman's picture

Very nice illustration there, CD!

Wed, 06/16/2010 - 10:33 | 416953 mephisto
mephisto's picture

And a nice turn of phrase too. Give the engines at google a few minutes to find this post, and anyone who searches for "federal reserve death star" will be lead here.

CogDiss, immortality is yours.

Wed, 06/16/2010 - 10:51 | 416998 ZerOhead
ZerOhead's picture

CD has been taking things to a new level lately... bask in the glow of your accomplishments my friend... then channel that energy, refocus, and get back to work!

We have a civilization to save!

Wed, 06/16/2010 - 11:35 | 417057 Cognitive Dissonance
Cognitive Dissonance's picture

"We have a civilization to save!"

I agree. I'll get back to work. Let's see if the Boomer Generation has the balls to lead the way out of what we led ourselves into.

BTW there's a good discussion on The Oil Drum about the increasing flow estimates having something to do with the BOP obstructions (remember the rams closed, just not all the way) in the BOP wearing down. A must read, and at 1700 words, easy to swallow. It's based upon pressure readings below and above the BOP at different times.

http://www.theoildrum.com/node/6611#more

BTW2, I'm getting tired of hearing about "the Leak". A leak is what my car or motorcycle does or I do when my Depends leak. Calling what's going on in the GOM a leak is 1984 Ministry of Truth propaganda.

Wed, 06/16/2010 - 11:45 | 417105 DosZap
DosZap's picture

CD,

Dead on as usual............

It's not a,leak, it's a frigging sandblast event, using pressure and abrasives to CUT thru the seabed.

I would liken to this to FISSURES(except with 5000PSI of cutting ability thrown in)..................They had best nuclear on this before it's so widespread they have no choice. Dangerous , yep................compared to what we have, and will have.......like I said, NO Choice.

An estimate yesterday, is their is a LAKE of oil, under the Gulf waters, covering up to 40% of the ENTIRE GULF.

Leak, my ass......Oilageddon is more like it...............

Wed, 06/16/2010 - 13:01 | 417241 ZerOhead
ZerOhead's picture

Good article... and great news. Some comments here...

If the pressure differential between the oil under the BOP (4,400 PSI and falling...) and the bottom of the Gulf water pressure (2,150 PSI) is now only 2,250 PSI then that will reduce the amount of oil flow diverting outside the well which is still the largest potentially complicating problem to getting this thing under control.

Let's not forget... the differential was initially over 10,000 PSI at the start of this blowout remember and it's the differential that is important here.

Although oil flow rates... and aperature dimensions in the BOP 'leak' are increasing... the pressure on the entire well bore is decreasing which means the likeihood of catastrophic failure is also quickly decreasing. This is important because it may allow a bottom kill procedure to work when the relief wells approach the well bore 12,000+ feet down.

His water cutting display however is a farce... the only location that can be effectively cut is where the differentials exist... (BOP ram... bottom of well... leaks through casings...) and most of that will be both through cavitation (like what happens to ships propellers) and abrasion. The string itself should not decay much further and the local reservoir pressures and volumes continue to decline.

It is still going to be a mess that is going to get worse right now however... but VERY GOOD news all the same if correct. And I can not understate the "if correct" part.

Wed, 06/16/2010 - 13:06 | 417270 Cognitive Dissonance
Cognitive Dissonance's picture

If the lower BOP pressure readings are accurate I agree. You've been banging away on this salient point for weeks ZeroHead, it's not the total pressure but the difference that is critical.

However, while I agree the lowering of pressure in the well bore might sound good, that lowering pressure might also be because the steel walls of the well are breaking down/has broken down/is breaking down more. BP has deliberately pointed to the 1000 foot level below the sub-sea surface as a problem. Isn't it at 1000 feet where the casing drops from 36" to 23" or something?

Which means the walls of the rock face are now breaking down from the rushing oil/gas/sand/rock particles and allowing infiltration of the oil/gas into the substrate. This would explain the ROV's constant examination of the sea floor cracks. It will be interesting to read the technical reports when this is all over. My only fear is that it might be in 2020. Or later.

Wed, 06/16/2010 - 13:31 | 417333 ZerOhead
ZerOhead's picture

You are doing great CD... 22" is the second casing diameter... which is reduced in diameter 1,000 feet down at the 18" casings which is where they assume a major breach exists as you have correctly stated. (You are like me I think in that you may not remember the exact number but maintain a ball park like feeling that is usually not far off the mark!)

Oil flow outside the well potentially destabilizing the BOP is the big problem right now. that said it becomes less and less of a threat as time passes and pressures decrease.

A reduction of pressure differential by half reduces the energy capable of causing erosion damage by 4 times... it's a x^2 kind of thing much like energy derived from wind turbines versus the wind speed. (Twice the wind = 4 times the available power..)

I think the casings are breaking down at a much slower rate if at all now CD... only through particle abrasion and mostly in the lower part of the well where the velocity is much faster in the narrow 7" riser pipes.

If it continues to hold we may have good news soon but not an end to the leak for quite some time to come.

I have wondered why BP has consistantly failed to address the magnetude (and thus the recovery efforts required) of the blowout oil volumes. Perhaps BP has intentially not made as serious effort (IMO) to capture the oil as they should have in order to strategically wait until the flows naturally reduce rather than to have to account for the actual volumes of oil currently emerging. The reason could be the fines of $4,000 /barrel. Each barrel of oil flow they evade counting thus saves them $4,000 per day in likely fines. Underestimating by 50,000 BBl/day saves $200 million dollars per day... not exactly chump change.

If my thoughts prove correct it could mean the diffence between survival and bankruptcy for them. But that is best discussed at a later time.

 

Wed, 06/16/2010 - 13:50 | 417413 Cognitive Dissonance
Cognitive Dissonance's picture

"But that is best discussed at a later time."

Like I said, 2020.

The one mistake we (you and I and everyone else) should not make is in thinking these guys (BP, The WH, Transocean etc) are stupid. These are bottom line business men, they know what's going on and they're thinking dollars, not seagulls or fish or PR. They would rather appear dumb or incompetent or incapable rather than calculating. They will not release any info that is potentially damaging unless they must. Period. Full stop.

Survival of the shark is first and foremost on their mind. Everything else is a distant 10th.

Wed, 06/16/2010 - 15:40 | 417788 Hephasteus
Hephasteus's picture

Well I'm not a petroleum engineer nor do I have much experience with pipe but my guess is that their pipe gets the crap cavitated out of it and pitted 10 ways to sunday under normal use. This environment just sucks. You are talking about 200 degree celsius oil moving through a pipe with about 6 degrees C outside of the pipe. Without pressure on the well head this stuff turns into a bubbling cavitating mixture at some point on in the pipe. Cavitating fluid eats pipe. No ifs ands or butts. Reduction of pressure differentials is not a saving grace in this situation. It's a chance for stuff to phase transition from liquid to gas and present an electromagenetic field to the pipe that is much more penetrating thus knocking out atom after atom from the pipe as it intrudes into it's structure with carbon and hydrogen atoms offering to take the place of the iron atoms in the pipe. As well as leaching whatever carbon atoms in the pipe if it's carbon steel that want to go on a vacation.

IF there is a high concentration of mercury in this oil in the form of mercuric sulfide then watch out it's a fantastic pipe eater under just the right conditons.

 

Wed, 06/16/2010 - 13:08 | 417284 merehuman
merehuman's picture

CD all this time i thought you were a fella. my bad, lol

Wed, 06/16/2010 - 13:18 | 417319 Cognitive Dissonance
Cognitive Dissonance's picture

:>)

I am a "fella", just a leaky fella. :>)

Men can use Depends just like women. We're all equal opportunity dribblers and personal puddle makers.

Wed, 06/16/2010 - 19:08 | 418241 Cathartes Aura
Cathartes Aura's picture

CD, that you can share that "here" - with a /shrug and a /grin - makes you a "hella fella" in my book!

the body does with it does, no shame is required, eh? hah!

(looking forward to your next installment - shoo!) jk.

Wed, 06/16/2010 - 10:50 | 416997 VK
VK's picture

+ Death Star CD!

Darth Bernanke = Destroyer of Worlds and FEDlord.

Wed, 06/16/2010 - 12:26 | 417037 chumbawamba
chumbawamba's picture

Hey, I just realized that the Death Star has a cheap transistor radio speaker integrated into it :)  Is that to make Lord Vader's voice can boom out across the heavens?

I am Chumbawamba.

Wed, 06/16/2010 - 11:23 | 417072 centerline
centerline's picture

My favorite post of all time so far.  LOL.

 

"Now witness the firepower of this fully ARMED and OPERATIONAL battle station"

Wed, 06/16/2010 - 13:10 | 417291 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"Let go Luke!"

Star Wars. Episode 4. A new hope:

http://www.youtube.com/watch?v=s8_OcN5FXmg

Wed, 06/16/2010 - 14:33 | 417550 faustian bargain
faustian bargain's picture

http://thebadplus.typepad.com/photos/uncategorized/deathstar.jpg

From Clerks:

RANDAL: You know what else I noticed in Jedi?

DANTE: There's more?

RANDAL: So they build another Death Star, right?

DANTE: Yeah.

RANDAL: Now the first one they built was completed and fully operational before the Rebels destroyed it.

DANTE: Luke blew it up. Give credit where it's due.

RANDAL: And the second one was still being built when they blew it up.

DANTE: Compliments of Lando Calrissian.

RANDAL: Something just never sat right with me the second time they destroyed it. I could never put my finger on it-something just wasn't right.

DANTE: And you figured it out?

RANDAL: Well, the thing is, the first Death Star was manned by the Imperial army-storm troopers, dignitaries- the only people onboard were Imperials.

DANTE: Basically.

RANDAL: So when they blew it up, no prob. Evil is punished.

DANTE: And the second time around...?

RANDAL: The second time around, it wasn't even finished yet. They were still under construction.

DANTE: So?

RANDAL: A construction job of that magnitude would require a helluva lot more manpower than the Imperial army had to offer. I'll bet there were independent contractors working on that thing: plumbers, aluminum siders, roofers.

DANTE: Not just Imperials, is what you're getting at.

RANDAL: Exactly. In order to get it built quickly and quietly they'd hire anybody who could do the job. Do you think the average storm trooper knows how to install a toilet main? All they know is killing and white uniforms.

DANTE: All right, so even if independent contractors are working on the Death Star, why are you uneasy with its destruction?

RANDAL: All those innocent contractors hired to do a job were killed- casualties of a war they had nothing to do with.

(notices Dante's confusion)

All right, look-you're a roofer, and some juicy government contract comes your way; you got the wife and kids and the two-story in suburbia-this is a government contract, which means all sorts of benefits. All of a sudden these left-wing militants blast you with lasers and wipe out everyone within a three-mile radius. You didn't ask for that. You have no personal politics. You're just trying to scrape out a living.

(The BLUE-COLLAR MAN joins them.)

BLUE-COLLAR MAN: Excuse me. I don't mean to interrupt, but what were you talking about?

RANDAL: The ending of Return of the Jedi.

DANTE: My friend is trying to convince me that any contractors working on the uncompleted Death Star were innocent victims when the space station was destroyed by the rebels.

BLUE-COLLAR MAN: Well, I'm a contractor myself. I'm a roofer...

(digs into pocket and produces business card)

Dunn and Reddy Home Improvements. And speaking as a roofer, I can say that a roofer's personal politics come heavily into play when choosing jobs.

RANDAL: Like when?

BLUE-COLLAR MAN: Three months ago I was offered a job up in the hills. A beautiful house with tons of property. It was a simple reshingling job, but I was told that if it was finished within a day, my price would be doubled. Then I realized whose house it was.

DANTE: Whose house was it?

BLUE-COLLAR MAN: Dominick Bambino's.

RANDAL: "Babyface" Bambino? The gangster?

BLUE-COLLAR MAN: The same. The money was right, but the risk was too big. I knew who he was, and based on that, I passed the job on to a friend of mine.

DANTE: Based on personal politics.

BLUE-COLLAR MAN: Right. And that week, the Foresci family put a hit on Babyface's house. My friend was shot and killed. He wasn't even finished shingling.

RANDAL: No way!

BLUE-COLLAR MAN:

(paying for coffee)

I'm alive because I knew there were risks involved taking on that particular client. My friend wasn't so lucky.

(pauses to reflect)

You know, any contractor willing to work on that Death Star knew the risks. If they were killed, it was their own fault. A roofer listens to this...

(taps his heart)

not his wallet.

(The BLUE-COLLAR MAN exits. DANTE and RANDAL remain
respectfully quiet for a moment.)

Wed, 06/16/2010 - 10:24 | 416936 Babalooee
Babalooee's picture

Monetary inflation=poison sugar. Heard it from my grandfather since childhood, a grandfather who had lived through Germany's glucose binge

Wed, 06/16/2010 - 10:25 | 416938 old_turk
old_turk's picture

This is as good as it gets.

We have been warned.

Wed, 06/16/2010 - 10:25 | 416939 Assetman
Assetman's picture

Stonehenge apocalypse.  2012.

RUN FOR THE EXITS!!!!

Oops!  There are no exits!

 

Wed, 06/16/2010 - 10:29 | 416946 DaveyJones
DaveyJones's picture

like CD's picture, we'll all end up floating around in the garbage

Wed, 06/16/2010 - 11:09 | 417044 Hephasteus
Hephasteus's picture

They also made strawhenge and woodhenge but then this big bad wolf came along.

Wed, 06/16/2010 - 12:27 | 417199 chumbawamba
chumbawamba's picture

Eddie Izzard?

Wed, 06/16/2010 - 13:28 | 417356 chumbawamba
chumbawamba's picture

Don't be confused, just laugh:

http://www.youtube.com/watch?v=DiFq_nk8pE0

I am Chumbawamba.

Wed, 06/16/2010 - 19:21 | 418266 Cathartes Aura
Cathartes Aura's picture

hahah. . .eddie izzard rocks!

used to see him in small clubs around london years ago - referred to himself as a "male lesbian". . . was never short of females, fans & otherwise, if ya ken ma drift. . .

Wed, 06/16/2010 - 10:28 | 416943 doomandbloom
doomandbloom's picture

pot calling the pot black?

Wed, 06/16/2010 - 10:28 | 416945 Apostate
Apostate's picture

The ponzi continues, because it's all they have. The dollar will die, and everyone's getting yanked out of the matrix - whether they like it or not. 

Wed, 06/16/2010 - 10:31 | 416951 Tense INDIAN
Tense INDIAN's picture

after reading all the stuff on the net, i have come to the conclusion that if there was no FEDERAL reserve , there would have been no WWI, no Russian Revolution and no WWII..

so americans please get rid of it or the world is going to be in deeper trouble ....

 

or is it too late??

Wed, 06/16/2010 - 11:04 | 417038 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Spread your new-found knowledge, as calmly and clearly as you possibly can.

Wed, 06/16/2010 - 11:10 | 417045 chumbawamba
chumbawamba's picture

It's never too late to get rid of the Fed, but it's too late to avoid the catastrophe that their policies have unleashed upon us.

The forecast calls for PAIN, and lots of it.  The sooner you all accept this, the better.

I am Chumbawamba.

Wed, 06/16/2010 - 12:34 | 417215 chrisina
chrisina's picture

I agree that lots of pain is comming, unavoidable. Question: when?

It makes a logistical difference whether it's in a year or ten. I don't particularly want to live in a remote farm stocking up on survival goods and munitions for ten years waiting for the collapse to happen...

So what's the schedule like? For how long can they still maintain the illusion and how far can they kick the can before it explodes? How many more QE rounds can they go for before savers start running for the exits en masse trying to convert all their soon-to-be-worthless-fiat-paper-denominated-assets into usefull hard assets?

I think after QE2.0 the'll have to print so much (10 to 30 times more) that my best guess so far is we've got 3 to 6 years left.

Anybody got an idea?

There is no point discussing what could be done to avoid this, because it is unavoidable, they won't change anything relevant to the current financial system before it collapses, and after a few decades of resulting chaos and pain.

The only important discussion is when do we need to start running for the life-boats (before everybody else but please not too long before), and what do we need to take with us?

Wed, 06/16/2010 - 13:07 | 417277 chumbawamba
chumbawamba's picture

That is a very good fucking question and I wish I had a good fucking answer.

I was fully expecting (hoping?) that it would be all over by now, but I miscalculated by (so far) a couple years.  I definitely blew my wad early, but then I had little choice.

I try my hardest to rabble rouse, to agitate, to sow doubt and fear in the minds of everyone I meet (I gave the guy at the ammo counter in the sporting goods store an earful last night) in the hopes that slowly, one by one, I will awaken a nation.

I am fomenting revolution one mind at a time.  By speaking out, I perhaps give courage to those who have done the math in their heads but lack the conviction to speak out for fear of being branded a shrill fatalist.  Letting others hear their own thoughts vocalized will make them realize they aren't alone, and they, too, will begin to speak out.

One mind at a time, the revolution grows.

Join me!

I am Chumbawamba.

Wed, 06/16/2010 - 13:12 | 417299 merehuman
merehuman's picture

I retire this month, closing the doors to my small business of 30 years.

I truly expect it all to fail a year ago.

Tommorrow is good for me.

Wed, 06/16/2010 - 14:21 | 417507 chumbawamba
chumbawamba's picture

Good for you.  But hold strong, as there is a test at the end ;)

I am Chumbawamba.

Wed, 06/16/2010 - 13:23 | 417337 Gully Foyle
Gully Foyle's picture

chrisina

2013 Inauguration day is when they start snapping the whip. The next guy is the "Great White Hope", a Republican because the Democrats had their bone.

Any collapse will be mostly orderly with the government safely in charge. The masses will receive rationed food. You may see some rioting in cities, but that will be mostly minority. You will find unsafe zones where crime has massively elevated and gangs are mainly in control. Which is ok because those gangs will be handled back channel by BIGOV.

Eventually they will first tax your Gold and "hidden assets" then they will take it. They will take your guns, except in those crime ridden areas. Or they will limit your bullets. 

Your guns and Gold are threats.

Because this guy is a nice law abiding Republican groups like the NRA will play along and Democrats want you to lose those weapons anyway. Anyone who advocates personal weapons will be a domestic terrorist. Off to the camps.

It only takes a generation for changes to be accepted as the norm.

You want to make it through with most of your value, by land farm it or rent it out. Rent houses. BIGOV may wind up subsidizing housing more than it does now so the poor can at least have shelter.

Expect many more fun slogans and overt propaganda. Expect more friends/neighbors and children trained as informers.

Have fun.

Wed, 06/16/2010 - 13:51 | 417417 chumbawamba
chumbawamba's picture

I don't think we'll be treated to such an orderly collapse.  My money (gold and silver) is on a sudden collapse that takes everyone's breath away.

Like an addict that takes that last hit and then shuffles off into oblivion...

I am Chumbawamba.

Wed, 06/16/2010 - 18:39 | 418188 chrisina
chrisina's picture

I agree, orderly collapse is an oxymoron. A collapse isn't a linear phenomenom but something that snowballs precipituously once a certain threshold is crossed. Whether TPTB will be capable of maintaining public order and the production of basic survival goods and services once that threshold is crossed is questionable. That would assume that they are capable of transitioning extremely rapidly from our current organisation to a centrally commanded economy operating the rationing. Forget it. Once the threshold is reached, it won't take a few months before the availability of basic goods and services becomes critical and people start looting in droves.

I think what we are going to go through is something humanity has never seen before. This time it will be global, and extremely sudden. People who think they'll have time to run for the exits once they see the first signs the end is near will be very surprised.

Wed, 06/16/2010 - 14:03 | 417457 hound dog vigilante
hound dog vigilante's picture

Pure drivel.

This scenario is so full of holes it's hard to know where to begin...

Your faith in the power of police/national guard/martial law is quaint and naive to the extreme. There is absolutely NO CHANCE of gun-owning dissenters being arrested and sent to 'camps'. It will never, ever happen.

We can barely lock-up the criminals today, so where are you putting those millions of militia members and tax protesters?  You think a few hundred guardsmen will stand a chance against thousands of armed citizens?  You think the rabble will follow Palin into the abyss?

Trained informers?  Really?  Shit man, TPTB can't even install a traffic camera in my neighborhood - it gets blasted by a shotgun w/in 48 hours. Where do you live?  Because the america you describe is the polar opposite of the america I know.  You've lived a very confy, sheltered life if you think (rural, independent) americans will sit by and watch TSHTF from the sofa.  Folks are already off the sofa and preparing themselves for the worst, and there isn't an damn thing that TPTB can do about it.

Gully, wake up and smell the coffee, bro. Your perception of this country and it's citizenry/demographics is WAY off, imo.

Wed, 06/16/2010 - 14:22 | 417509 chumbawamba
chumbawamba's picture

Damn city slickers.

I am Chumbawamba.

Wed, 06/16/2010 - 19:33 | 418295 Cathartes Aura
Cathartes Aura's picture

I agree that lots of pain is comming, unavoidable. Question: when?

It makes a logistical difference whether it's in a year or ten. I don't particularly want to live in a remote farm stocking up on survival goods and munitions for ten years waiting for the collapse to happen...

So what's the schedule like?

 

with respect, if you're not already "acting as if" then you're behind the curve. . . this isn't an appointment to schedule in your blackberry - this is a life-change that should be embraced mentally and then lived daily. . .

if you don't want to "live on a remote farm" then dig up the damn lawn & plant a garden, today. . .  seriously, it's already "happened" for some people, and will never happen for others, in the version you're describing - no ONE is safe, so pick your group carefully and get on with it!

Wed, 06/16/2010 - 11:11 | 417049 Hephasteus
Hephasteus's picture

You can also add georgia guide stone to that as well.

Wed, 06/16/2010 - 10:35 | 416958 chunkylover42
chunkylover42's picture

It's interesting, there are some pretty cool cats sitting around in some of the Fed banks that actually seem to get what's going on.  They recognize the fallacy of the Keynesian approach we've taken.  I've seen some really nice work from the St. Louis Fed from time to time, for example.

It's the nutjobs that call the shots that are the problem

Wed, 06/16/2010 - 10:37 | 416966 lsbumblebee
lsbumblebee's picture

Great Moments in Federal Reserve History:

The Agricultural Depression of 1920-21

"In the early part of 1920, the farmers were exceedingly prosperous. They were paying off the mortgages and buying a lot of new land, at the instance of the Government--had borrowed money to do it--and then they were bankrupted by a sudden contraction of credit and currency which  took place in 1920. What took place in 1920 was just the reverse of what should have been taking  place. Instead of liquidating the excess of credits created by the war through a period of years, the Federal Reserve Board met in a meeting which was not disclosed to the public. They met on the 18th of May, 1920, and it was a secret meeting. They spent all day conferring; the minutes made sixty printed pages, and they appear in Senate Document 310 of February 19, 1923. The Class A Directors, the Federal Reserve Advisory Council, were present, but the Class B Directors, who represented business, commerce, and agriculture, were not present. The Class C Directors, representing the people of the United States, were not present and were not invited to be present. Only the big bankers were there, and their work of that day resulted in a contraction of credit which had the effect the next year of reducing the national income fifteen billion dollars, throwing millions of people out of employment, and reducing the value of lands and ranches by twenty billion dollars."

http://www.apfn.org/apfn/reserve.htm

Wed, 06/16/2010 - 10:52 | 417001 hbjork1
hbjork1's picture

IsbumbleBee: Thanks for the excellent post.

Wed, 06/16/2010 - 10:39 | 416968 hbjork1
hbjork1's picture

 

Duplicate:

FISHER for FED!

 

And, er, um; Petraeus for President!

Wed, 06/16/2010 - 11:15 | 417055 chumbawamba
chumbawamba's picture

Only if he promises to remain passed-out during his entire term.

I am Chumbawamba.

Wed, 06/16/2010 - 11:22 | 417069 Cognitive Dissonance
Cognitive Dissonance's picture

LOL

DOA but still working.

Wed, 06/16/2010 - 10:38 | 416969 obewon
obewon's picture

Classic!

This commentary should be splashed across the US news media every day, until 20% of the population "gets it" and calls for a true FED Audit, followed by the abolishment of the FED.

But that won't happen, because our wonderful government controls the news media, courtesy of the Power Elite.

 

Wed, 06/16/2010 - 12:49 | 417237 chrisina
chrisina's picture

Abolishing the FED won't change anything to our predicament, ie decades of pain and chaos, because the dammage by the FED has already been done over the last century or so.

After that, my guess is whatever civilizations will remain won't want to start over again with the inepsies of central banks, fiat currencies and fractional reserve banking, but that's another matter...

Also, methinks you don't want too many people to understand  our nonsensical financial system and its unavoidable fate because by then it will be too late to prepare for your own survival. If you had 20% of the population who understood that, it would already be too late.

Wed, 06/16/2010 - 10:38 | 416970 A Nanny Moose
A Nanny Moose's picture

Somebody is going to need to hire armed escorts from now on. Perhaps he even understands, why gold keeps going up.

Wed, 06/16/2010 - 10:44 | 416977 Wyndtunnel
Wyndtunnel's picture

Remember those "How to Survive a Nuclear Strike" pamphlets and booklets from the 50s?  Time for the Guv to start publishing and distributing pamphlets on how to grow the maximum amount of food in the average suburban backyard, many of which were built on prime farmland after all.  Can't wait to see box stores demolished so that the land can be returned to its original God-mandated purpose!  A little back-breaking labor will be good for the soul of America! Expect a boom in horse trading too!

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