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Guest Post: Is America On A Burning Platform?

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Submitted by Jim Quinn of The Burning Platform

Is America On A Burning Platform?

David Walker, the former Comptroller of the United States from 1998
until 2008, has been warning politicians, the media, and the American
public for over a decade that we are off course and headed for disaster.
In August 2007, before the financial system meltdown of 2008, Mr.
Walker declared:

The US government is on a “burning platform” of
unsustainable policies and practices with fiscal deficits, chronic
healthcare underfunding, immigration and overseas military commitments
threatening a crisis if action is not taken soon. There are striking
similarities between America’s current situation and the factors that
brought down Rome, including declining moral values and political
civility at home, an over-confident and over-extended military in
foreign lands and fiscal irresponsibility by the central government. The
fiscal imbalance meant the US was on a path toward an explosion of
debt. With the looming retirement of baby boomers, spiraling healthcare
costs, plummeting savings rates and increasing reliance on foreign
lenders, we face unprecedented fiscal risks. Current US policy on
education, energy, the environment, immigration and Iraq also was on an
unsustainable path. Our very prosperity is placing greater demands on
our physical infrastructure. Billions of dollars will be needed to
modernize everything from highways and airports to water and sewage

Three years have passed since Mr. Walker sounded the alarm and issued
his dire warning. The National Debt in August 2007 was $8.9 trillion.
Today it stands at $13.6 trillion, a 53% increase in just over 3 years.
It took 205 years as a country to accumulate $4.7 trillion of debt.
We’ve added $4.7 trillion in the last 38 months. It doesn’t appear that
anyone in government heeded Mr. Walker’s warnings.

The perpetually optimistic pundits that occupy the positions of
influence on CNBC and the other MSM networks try to paint a rosy picture
of the American state of affairs day after day. They urge citizens to
spend money they don’t have. They are sure that extending unemployment
benefits to 99 weeks will improve the unemployment situation. They
declare that Cash for Clunkers and the Home Buyer Tax Credit were
successful government programs. They are sure that invading countries in
the Middle East will make America safer. Nobel Prize winners in
economics declare that the government should undertake another $8 to $10
trillion of money printing because the first $5 trillion wasn’t enough.

The Federal Reserve is pulling out all the stops in attempting to
invigorate the American economy. The stock market is surging. Everything
is surging. The optimists are crowing that all is well. Deficits don’t
matter. We can borrow our way to prosperity. Cutting taxes will not add
$4 trillion to the National Debt if not paid for with spending cuts. All
is well. So, the question remains. Was David Walker wrong? Are we
actually on a perfectly sturdy solid platform? Or, are we on the
Deepwater Horizon as it burns and crumbles into the sea? Let’s examine
both storylines and decide which is true.


  • The National Debt of $13.6 trillion is manageable because interest rates remain at historic low levels.
  • The addition of $1.6 trillion in debt per year is necessary because
    government must step in for the lack of spending in the private sector.
    This will jump start the economy. This is Keynesianism 101.
  • The debt to GDP ratio of 93% is not dangerous. Japan has a debt to
    GDP ratio of 200% and they are doing fine. This proves we have plenty of
    room to grow our debt.
  • The US dollar is the reserve currency for the entire world. We can
    systematically devalue the USD, which will reduce our foreign debt
    burden over time. The foreigners who leant us the money are on the hook
    and they have no way out.
  • A depreciating dollar will help our manufacturing industry by making American exports cheaper in foreign markets.
  • The $700 billion TARP plan saved the American financial system. The
    American taxpayer will end up making a profit in the long run from this
  • Cash for Clunkers was an astounding success. It increased demand for autos dramatically.
  • The Homebuyer Tax Credits resulted in a surge in home sales and stabilization of home prices.
  • The $800 billion Stimulus plan saved America from a 2nd Great Depression. Without it, we would have lost millions of jobs.
  • Consumer spending accounting for 70% of GDP is sustainable and
    desirable. If we can just get credit flowing again and encourage
    consumers that it is safe to use their credit cards to spend, the
    economy will come roaring back.
  • This is not the time to save. Nobel Prize winners in economics urge
    Americans to spend because of the Paradox of Thrift. It may be smart for
    one person to save more than they spend, but if everyone does it a
    consumer society will collapse. We can save later is the recommendation.
  • A QE2 of $8 to $10 trillion would surely increase the animal spirits
    of the dejected American people. The stock market would soar to 20,000
    and everyone would feel rich. Spending would surge. All would be well
  • The Social Security Trust Fund is not broke. The money contributed
    by Americans over the decades is in a lockbox and the fund will be
    solvent for decades. A few tweaks and it will be solvent forever.
  • Medicare has been one of the best government programs ever
    conceived. It has sustained our senior citizens and delivered high
    quality care to all at a reasonable cost.
  • Baby Boomers are rational and realistic. The statistics that show
    they have not saved enough to sustain them in retirement is overblown.
    Social Security will suffice. If not, they’ll just work a little longer.
    No worries.
  • Obamacare will reduce healthcare costs, improve service, cover more
    people, and reduce the profits of insurance companies and drug
  • We have the best educational system in the entire world. People from
    all over the world want to get into our best Universities. No Child
    Left Behind has been a huge success.
  • We are safer today than we were on September 11, 2001. We won the
    Iraq War and freed the Iraqis from the clutches of a madman. We are
    fighting them over there so we don’t have to fight them over here. The
    terrorists are in disarray and retreat.
  • The $1.1 trillion spent on the Middle East Wars, the trillions spent
    on the Dept of Homeland Security, and the expansion of government
    ability to protect its citizens through enhanced surveillance techniques
    and enhanced interrogation techniques on suspected terrorists has been
    beneficial to the safety and security of the American people.
  • A Defense budget of $900 billion per year is essential to our national security. We are surrounded by potential enemies.
  • It is a net positive for the US to allow illegal immigrants to stay
    in the country. Who else would we get to work in the fields picking
    lettuce and cutting our suburban lawns?
  • Gasoline is only $2.70 a gallon. We are awash in supplies of oil.
    Peak oil is a myth perpetuated by environmental nuts. We have centuries
    worth of oil in the Bakken Shale. If we would just open up Alaska to
    drilling, our troubles would be gone. Drill, Baby, Drill.
  • Our crumbling infrastructure is actually a fantastic opportunity. A
    2nd Stimulus program to upgrade our infrastructure would create millions
    of high paying jobs.  


  • The National Debt is $13.6 trillion today. Interest expense for
    fiscal 2010 totaled $414 billion. Based upon the current spending path
    and assuming that the Bush tax cuts are extended, the National Debt will
    exceed $20 trillion by 2015. A reasonable expectation of 5% interest
    rates would result in annual interest expense of $1 trillion. The entire
    budgeted outlays of the US government are $3.5 trillion today.
  • Deficits exceeding $1 trillion per year are baked into the cake for
    the next decade. Non-Defense discretionary spending totals only $700
    billion. Defense spending totals $900 billion. The remaining $1.9
    trillion is on automatic pilot for Social Security, Medicare, Medicaid,
    and other entitlement programs. Politicians declaring they will freeze
    discretionary spending are treating you like fools. It will solve
  • Debt as a percentage of GDP will exceed 125% of GDP by 2015. Rogoff & Reinhart in their book This Time is Different point out the dangers once debt surpasses 90% of GDP: The
    relationship between government debt and real GDP growth is weak for
    debt/GDP ratios below 90% of GDP. Above the threshold of 90%, median
    growth rates fall by 1%, and average growth falls considerably more.
    The chances of bad things happening to a country increase dramatically after the 90% level is surpassed.
  • Japan began their 20 years of tears with a debt to GDP ratio of 52%
    and a National Savings rate of 15%. The Japanese people bought 90% of
    the debt that the government issued. Today, the debt to GDP ratio is
    200% and the National Savings rate is 2%. The US entered this crisis
    with a debt to GDP ratio of 80% and a National Savings rate of 1%. We
    depend on foreigners to buy more than 50% of our new debt. We do not
    control our own destiny.
  • A depreciating US dollar is already creating inflation in many
    assets. Gold, silver, oil, and agricultural commodities are increasing
    in price faster than the stock market. The policy of the US government
    and Federal Reserve of devaluing the currency is being matched by
    similar efforts in countries across the globe. The result is a flood of
    liquidity creating bubbles which will pop. The American middle class
    will be squeezed harder as their wages stagnate, while their food,
    energy, and costs at Wal-Mart go higher.
  • TARP, the purchase of $1.5 trillion of Mortgage Backed Securities by
    the Federal Reserve, 0% interest rates, and accounting rule changes by
    the FASB have done nothing but paper over the fact that the biggest
    financial institutions in the US are insolvent. The assets on their
    books are worth 50% less than they are reporting. They are zombie banks.
    Their losses on residential real estate, commercial real estate and
    consumer credit continue to grow. The only beneficiaries of keeping
    zombie banks alive are the bankers who are receiving billions in
    compensation while the middle class dies a slow painful death.
  • Cash For Clunkers, Home Buyer Tax Credit and energy efficiency
    credits did nothing but shift demand forward and cost the American
    taxpayer $25 billion. The estimated cost to the tax payer per
    incremental home sold was $100,000. Auto sales and home sales plunged as
    soon as the credits ran out. Home prices are falling and used car
    prices have soared due to less supply, hurting the poor.
  • The borrowing of $800 billion from the Chinese to dole out to unions
    and political hacks all over the country has been a complete disaster.
    Unemployment has gone up by over 4 million since the stimulus was
    passed. Government spending has crowded out private spending.
    The economy hasn’t recovered because it was never allowed to bottom. Why
    look for a job when the government pays you for two years to watch
    Oprah in a house where you haven’t made a mortgage payment in 18 months?
  • Consumers’ spending money they don’t have, saving less than 5% of
    their disposable income, and putting away nothing for their retirement
    is unsustainable. The average credit card debt per household is about
    $15,700. In 1968, consumers’ total credit debt was $8 billion (in
    current dollars). Now the total exceeds $880 billion. Americans
    currently owe $917 billion on revolving credit lines and $80 billion of
    it is past due, according to the latest Federal Reserve statistics.
  • A scaling back of consumer spending to a sustainable 64% of GDP
    would reduce consumer spending by $500 billion per year. This would
    allow Americans to save and invest in the country. This is considered
    crazy talk in the Keynesian economic circles.
  • The anticipation of QE2 has already made the dollar drop 10% and
    gold, silver and oil jump 10%. Ben Bernanke and the Federal Reserve are
    conducting an experiment on the American people. What they are doing
    today has never been attempted in human history. It boils down to
    whether the authorities can cure a disease brought on by too much debt
    by doubling and tripling the dosage of debt. If this experiment fails,
    the dollar collapse and possible hyperinflation would lead to anarchy.
    Ben is confident it might work. Are you?
  • Social Security and Medicare have an unfunded liability exceeding
    $100 trillion. There is no money in a lockbox. Congress opened the
    lockbox and spent the money. Baby boomers are turning 50 years old at a
    rate of 10,000 per day. There is no possibility that the promises made
    to Americans by politicians can be honored. No politician of either
    party will tell the truth to the American public. A massive reduction in
    benefits or a massive increase in taxes would be required to deliver on
    this promise.
  • The 2,000 page Obamacare bill that no one in Congress read was sold
    to the American people as a cost saving, care enhancing package of
    goodies. The reality is that it will increase the national debt by
    hundreds of billions, ration care, drive more doctors into retirement,
    strangle small business with onerous regulations and enrich the
    insurance companies and drug companies. The unintended consequences will
    be devastating.
  • Total military expenditures for the entire world are $1.9 trillion
    annually. The US accounts for $900 billion of this expenditure. This is 7
    times as much as the next largest spender – China.
  • The wars of choice in the Middle East since 2001 have cost unborn
    generations of Americans $1.1 trillion so far, with a final cost likely
    reaching $3 trillion. Just like Donald Rumsfeld estimated.  Over 5,700
    Americans have lost their lives and another 39,000 have been wounded.
    The casualties in the countries that have been invaded number in the
    hundreds of thousands. Are we better off than we were on September 10,
  • Defense spending in 2000 was $359 billion or 3.6% of GDP. Today it
    is $900 billion or 6.1% of GDP. Every dime of these expenditures is
    borrowed. Are we safer today?
  • The Department of Energy was created in 1979 in order to create an
    energy policy that would reduce our dependence on foreign oil. The
    United States, which makes up 4% of the world’s population, consumes 25%
    of the world’s oil on a daily basis. In 1970 we imported 24% of our
    oil. Today we import 70% of our oil.
  • Over 50% of our oil imports come from countries whose populations
    hate the US. Mexico, which accounts for 9% of our current oil supply,
    will become a net importer by 2015.
  • The US has not built a new nuclear power plant or oil refinery since 1980.
  • The existing energy infrastructure is rusting away. 80% to 90% of
    the system must be rebuilt. The cost of rebuilding the infrastructure
    will be $50 – $100 trillion. We have no blueprints, few supplies and
    fewer trained engineers and construction workers.
  • Peak oil is a fact. World liquid oil production peaked at 86 million
    barrels per day in 2006. It has not reached that level since, even when
    prices soared to $145 per barrel. Demand will move relentlessly upward
    as China and India and the rest of the developing world march forward.
  • The US Military has concluded in a report put out a few months ago
    that by 2012, surplus oil production capacity could entirely disappear,
    and as early as 2015, the shortfall in output could reach nearly 10 MBD.
    A severe energy crunch is inevitable without a massive expansion of
    production and refining capacity. While it is difficult to predict
    precisely what economic, political, and strategic effects such a
    shortfall might produce, it surely would reduce the prospects for growth
    in both the developing and developed worlds.


David Walker was in a ship well ahead of the US Titanic crossing the
Atlantic. He saw the dangerous icebergs floating in the ocean. He sent a
message to the Captains (Bush, Obama) and Executive Officers
(Greenspan, Bernanke, Paulson, Geithner) of the US Titianic that there
was danger ahead. They should have reduced speed and doubled the
lookouts. Instead they listened to the Managing Director of the cruise
line (Wall Street) and increased speed. The US Titanic was unsinkable.
When the inevitable collision with the iceberg occurred, those in
command chose to disbelieve the possibility that the mighty ship could
sink. The nearest ship was four hours away. If the US Titanic had
stopped immediately after striking the iceberg, it would have remained
afloat until the rescue ship arrived. Instead, the masters of the
ship chose to keep going as the compartments below the surface continued
to fill with water. Reputation and hubris drove them to take these

Those in command knew that there was only room on the lifeboats for
1,100 people. There were 2,200 people onboard. It is interesting to note
that 60% of the First Class (the ruling elite) passengers survived the
sinking, while less than 25% of the Third Class (working middle class)
and crew survived.

David Walker has presented a case for inter-generational sacrifice.
Are today’s generations willing to keep robbing future generations of
Americans by being fiscally irresponsible today? Every borrowed dollar
spent today is a tax on future generations. Are we selfish enough to
leave our children and grandchildren with an un-payable burden so that
we can live well today? Don’t the Wall Street bankers and Washington
politicians have children and grandchildren? It is immoral and
despicable that American leaders and its citizens aren’t willing or able
to make the tough choices needed to save the ship of state. Every great
empire withered away due to the accumulation of bad decisions. Ask
yourself whether this country has made the right choices in the last 30
years. Are we making the right choices today? If you are honest, the
answer is NO. We’ve hit the iceberg. The ending is unavoidable.

Sing us a song of the century
That’s louder than bombs and eternity
The era of static and contraband
That’s leading us into the promised land
Tell us a story that’s by candlelight
Waging a war and losing the fight

They’re playing the song of the century
of panic and promise and prosperity
Tell me a story into that goodnight

Sing us a song for me …

                            Green Day – Song of the Century


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Fri, 10/15/2010 - 18:20 | 654223 NOTW777
NOTW777's picture

remember how much the left complained about deficits when GW was president.  now its a non issue?

Fri, 10/15/2010 - 18:30 | 654250 Shiznit Diggity
Shiznit Diggity's picture

Remember how the right didn't make a peep about deficits when GW was president? Remember Dick "Deficits Don't Matter" Cheney?



Fri, 10/15/2010 - 20:04 | 654460 oddjob
oddjob's picture

Remember how Newt Gingrich cut goverment spending and Bill Clinton took the credit.

Fri, 10/15/2010 - 20:11 | 654476 Uncle Remus
Uncle Remus's picture

Remember how divide and conquer politics as usual will march us further down the road to serfdom and keep us from properly decorating the lamp posts on Wall Street?

Fri, 10/15/2010 - 20:36 | 654510 midtowng
midtowng's picture

+1000 for properly decorating the lamp posts on Wall Street.

Sat, 10/16/2010 - 08:41 | 654948 snowball777
snowball777's picture

Tres Fab Fab. I love what you've done with the place.

Sat, 10/16/2010 - 08:44 | 654951 aheady
aheady's picture


Fri, 10/15/2010 - 21:41 | 654661 aint no fortuna...
aint no fortunate son's picture

I'll bump it +1000 for decorating the lamp posts... make that an even +2000 and throw in the gulag for good measure

Sat, 10/16/2010 - 08:33 | 654945 Confused
Confused's picture

Thanks for pointing out whats really important. Choosing sides is a fools game. 

Fri, 10/15/2010 - 20:35 | 654508 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Remember how they shut down the government entire to do so.

Fri, 10/15/2010 - 21:00 | 654572 merehuman
merehuman's picture

remember when the media used to Investigate and report? Lol whos your sponsor.

Fri, 10/15/2010 - 21:38 | 654656 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

America has no sponsor, they have not started the program yet.  Starts soon, this month, maybe next.

"Hi.  My name is America and I have an entitlement complex."

Fri, 10/15/2010 - 23:49 | 654862 tomdub_1024
tomdub_1024's picture

lol, 2 thumbs up for merehuman and lennonhendrix, these comments were clear, to the point, with wonderful scenematic transitions that lead the viewer to ....unforegone conclusions that render the viewer blah, blah, blah...

Seriously, though, very nice comments, just having a wee bit of fun on a Friday night...if that's allowed these days....;)

Fri, 10/15/2010 - 22:42 | 654775 Seer
Seer's picture

Gingrich cut spending?  Really?  A hero of yours?  The same Gingrich whose district received MORE federal $$s than any other district in the US with the exception of D.C.?

Thanks for playing!

Sat, 10/16/2010 - 08:42 | 654949 snowball777
snowball777's picture

And was cheating on his wife while wasting the country's time chasing Clinton over his dick.

Slimy? Crawls on its belly?

Must be Newt!

Sat, 10/16/2010 - 08:45 | 654952 aheady
aheady's picture

"Well, I got better."

Sat, 10/16/2010 - 14:32 | 655318 Jim Quinn
Jim Quinn's picture

You forgot that his wife had cancer when he was cheating on her, so that makes it ok. Ask John Edwards.

Sat, 10/16/2010 - 06:40 | 654905 BobWatNorCal
BobWatNorCal's picture

"Remember how the right didn't make a peep about deficits when GW was president?"

Only because you only read the MSM.
Try googling PorkBusters some time. The Repub party was silent, the right was vigorously active.

Fri, 10/15/2010 - 18:31 | 654251 Instant Karma
Instant Karma's picture

Is it not obvious that the combination of an anti-business President and a literally insane Congress has driven the economy off a cliff. The Federal Reserve can do nothing but attempt to serve as an air bag when the car hits the ground. The Fed would be better off doing nothing, letting interest rates soar, and let the pain hit. That would lead to better political policy. That's the way it used to work in the old days. The Fed called the shots.

Fri, 10/15/2010 - 18:43 | 654284 Rainman
Rainman's picture

Both parties are two sides of the same coin when it comes to spending what they ain't got.

David Walker is the modern day Paul Revere. A great patriot with courage to speak his mind. 

Fri, 10/15/2010 - 20:38 | 654514 midtowng
midtowng's picture

The economy went off a cliff when Bush was still in office. The housing bubble burst when the Republicans still controlled Congress.

Sat, 10/16/2010 - 09:45 | 654997 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

It not Bush's fault, its not Clinton's fault-its both and many more before them.  You are being suckered into the pointing fingures arguement.

Left- Right- its all noise to distract you from what is going on.

The nightmare we are in now is due to 30+ years of "its all about me" politicians from both parties.


Its the small elitist bs, just different flavoring.

Both sides have utterly failed to do their job.

Its not "We the People"

its "We the Special Interest (with deep pockets) in order to form a more profitable Union on the backs of the little people."


We (the little people) have been way to lazy and have not held enough people accountable for their incompetance, I am as guilty of it as the next guy, and am certainly trying to make up for it now.

Sat, 10/16/2010 - 22:56 | 655862 Lucius Corneliu...
Lucius Cornelius Sulla's picture


Sat, 10/16/2010 - 15:28 | 655408 samseau
samseau's picture

Because had the democrats been in power, they would have done better?


Please, everyone, drop the partisan politics.  



Fri, 10/15/2010 - 21:45 | 654670 Ned Zeppelin
Ned Zeppelin's picture

Yeah, you're right. Bush had us on the right track.

Figure out that they are all the same yet?


Fri, 10/15/2010 - 22:36 | 654761 QQQBall
QQQBall's picture

Air Bag? They are transferring wealth from savers and prudent to imprudent, BK Bansters. More like Wind bags trying to talk up asset prices. I have a better idea, we do not need private banksters to control our currency -

Sat, 10/16/2010 - 13:56 | 655265 kathy.chamberli...'s picture

water wings?

Fri, 10/15/2010 - 22:44 | 654780 Seer
Seer's picture

Anti-business?  What the fuck have you been smoking?  Did you miss who the fuck is getting all the money these days?

I'd aver that THE problem is ignorance, such as you've demonstrated...

Fri, 10/15/2010 - 18:37 | 654266 Jake3463
Jake3463's picture

Both political parties are utterly corrupt and responsible.  Trying to blame the GOP or the DNC or the right wing politicians or the left wing politicians is ridiculous.


Every 2 years we are given a choice of 2 idiots.  I watched the Angle/Reid debate.  Both of them were retarded.  If I was in Nevada I'd write in Genital Warts because it seem preferable to either of those people representing me.

Fri, 10/15/2010 - 19:04 | 654329 Rainman
Rainman's picture

Ever since government employment was taken over by the unions the pool of intelligence in most electeds has shrunken dramatically.....along with the nation's net worth. Maybe that's just a coincidence...... nevertheless, seems the responsible, sane, honest and intelligent people avoid the cesspool politics has become. 

We're stuck with the gimmes to the end, I'm afraid.....hope I'm wrong ( sigh ). 

Fri, 10/15/2010 - 20:57 | 654564 Jake3463
Jake3463's picture

I don't really think it was the unions as much as career people in the government who take their jobs seriously being replaced by political hacks who trade their public positions with that of a lobbyist when their party is out of power.

There was something to be said about someone who spent 30 years in government trying to get the next pay grade advance.   Alas, they've been replaced with people looking for connections so that they can sell it in the private sector for privileged treatment of the organization they represent. 

I'm not really that worried about the union garbage man as I am as the Goldman kid who takes a 2 year gig at the SEC and than goes back to Goldman.


Fri, 10/15/2010 - 22:49 | 654786 Seer
Seer's picture

Yeah, it's the little people who are to blame.  Whatever you do don't acknowledge the elephant in the room (the financial sector, which has walked away with our economic future).

To leverage an old phrase, "It's the System, stupid!"

Oh, and further, the fight is all over diminishing resources.  Doesn't matter what groups are in charge of what, massive upheaval will occur because of a lack of resources.  Growth, that's the real beast, but no one will admit it, instead, folks couch excuses in a bunch of pre-dictated sound bites...

Sat, 10/16/2010 - 09:51 | 655005 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

How interesting elections would be it there was a


None of the Above option

Sat, 10/16/2010 - 14:18 | 655296 TwelfthVulture
TwelfthVulture's picture

With a necessary proviso that should "None of the Above" win, all, and I mean ALL candidates on the ballot are barred from running for the same office for two election cycles.


Sat, 10/16/2010 - 12:03 | 655131 ILikeBoats
ILikeBoats's picture

I'd write in Colonel Angus - he is a lot more fun.

Fri, 10/15/2010 - 23:35 | 654847 iconoclast63
iconoclast63's picture

This is not about political parties! Sheesh!

As a matter of fact, the disintegration of our republic was predicted succinctly by a Democratic-Republican named Andrew Jackson on July 10, 1832.

To wit:

It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society-the farmers, mechanics, and laborers-who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing.



Sat, 10/16/2010 - 12:45 | 655125 G-R-U-N-T
G-R-U-N-T's picture
"The spread of evil is the symptom of a vacuum. Whenever evil wins, it is only by default:
by the moral failure of those who evade the fact that there can be no compromise on basic principles."
-Ayn Rand, Capitalism The Unknown Idea, 1966
The wrong people, and a surprisingly small number of them have control of the main stream media, political, and the university system which is helping facilitate America's destruction.
Deep down inside, I believe that most Americans know that certain basic principles are and have been violated by evil self serving forces that think they have a better way. Of course, "their better way" is their own or our eventual annihilation. The question is how much pain will the American people allow themselves to be in before they are motivated to effect change.
Principles before personalities...critical thinking people who have a sense of their own autonomy and self worth are self actualized and value their personal freedom. These principled Americans will eventually lead the charge against the few parasitical perverted subjugating minds. It may be bloody but it will happen.
I would also like to point out that I think many in America don't have a sense of identity whether it is in themselves or in America itself. This, unfortunately, leaves them vulnerable to other people's images weakening the ability of patriotic Americans whom know that deep down inside upholding the Constitution is the ultimate patriotic ideal as a nation.
Sat, 10/16/2010 - 12:34 | 655162 RabidLemming
RabidLemming's picture

remember when comments on ZH where intelligent, non-partisan, on topic, witty, and thought provoking?

Sat, 10/16/2010 - 13:58 | 655268 kathy.chamberli...'s picture

i don't think i remember that time, oops senior moment again.

Fri, 10/15/2010 - 18:22 | 654227 NOTW777
NOTW777's picture

MSM no longer mentions presidential polls, body count in Afghan or Iraq, deficits or expense of wars

Fri, 10/15/2010 - 18:39 | 654271 Jake3463
Jake3463's picture

Ask any "leftie" they can tell you.  In fact, we are being treated by the President the same way over objections to a trillion dollar war when our country is falling apart as we were in 2008.  Why do you think Obama is out there begging for people to stop whining.

Sat, 10/16/2010 - 08:45 | 654953 snowball777
snowball777's picture

Funny how you never see the TeaPotDomeExpress discussing how much we're throwing down these rabbitholes when they get hot under the collar about our fiscal straits.

Fri, 10/15/2010 - 18:26 | 654238 lynnybee
lynnybee's picture

I guess we've been on a burning platform for a while.   I just don't remember things being like this when I was a kid.    I remember just putting money in a passbook savings account & earning interest on it !    There was no such thing as IRA's, 401K's ........ WE DIDN'T NEED THEM !!  There was no "financial sector", we just put money in a damn bank and earned interest on it !    GET RID OF "these people" ........ they (& i assume that means Rubin, Greenspan, Summers, et al) have literally ruined us all.

Fri, 10/15/2010 - 21:48 | 654675 Arkadaba
Arkadaba's picture

Interest in a savings account - what's that?

Sat, 10/16/2010 - 12:37 | 655167 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture


Fri, 10/15/2010 - 23:49 | 654864 Seer
Seer's picture

"we just put money in a damn bank and earned interest on it"

It's the same, only that things have multiplied at rates that have brought the inevitible chrashing sooner than would have happened otherwise.

Ask yourself just how it is that you are able to do NOTHING and expect to get more (money)?  If everyone did that?  Do you really think that That would be possible?

What happened was that that money was used to exploit resources and people elsewhere.  You just didn't see it happening.  That was the false "Leave It To Beaver" era.  If you think we can go back there you're horribly mistaken.

Time for people to grow up and face the fact that we've all been involved in a fraud, the fraud of perpetual growth...

Sat, 10/16/2010 - 14:00 | 655272 kathy.chamberli...'s picture

my mom use to keep all (lots) of her stock certificates in her safety deposit box she so didn't trust bankers or investment firms.

Fri, 10/15/2010 - 19:14 | 654239 99er
99er's picture


The Growing Anger Pattern?


The Shafted Pattern?


The Asia Tells America To Fuck Off On Sunday Night Pattern


Have a great weekend!

Fri, 10/15/2010 - 21:39 | 654659 Lord Welligton
Lord Welligton's picture

No offence old bean.

But what is the difference between charts and throwing chicken bones in the air and interpreting the manner of the landing of the bones?

Both require belief.

Neither has fundamental value.


Fri, 10/15/2010 - 23:54 | 654872 tomdub_1024
tomdub_1024's picture

these days, agree,HA!

Sat, 10/16/2010 - 11:33 | 654986 99er
99er's picture

More Chicken Bones



All this chicken scratch tells me that the USD has bottomed. And for you fundamental types: Timmy blinked:

(Reuters) - The Obama administration backed away on Friday from a showdown with Beijing over the value of China's currency that would have caused new frictions between the world's only superpower and its largest creditor.

Why? The Fed is out of control.

The central bank bought $1.72 trillion in mortgage bonds and Treasurys from late 2008 through this March. It's now reinvesting cash from those mortgage bonds into Treasurys.


Fri, 10/15/2010 - 18:27 | 654244 FischerBlack
FischerBlack's picture

Does anyone know if Mozilo's SEC settlement is being paid by BofA? I thought I read something about Countrywide indemnifying him, but I can't remember where.

Fri, 10/15/2010 - 18:46 | 654288 bob_dabolina
bob_dabolina's picture

$5 mil being paid by BankofAmerilWide.

Fri, 10/15/2010 - 18:50 | 654298 99er
99er's picture

(Reuters) - Former Countrywide chief Angelo Mozilo agreed to a settlement of $67.5 million to resolve charges that he duped the home loan company's investors while reaping a personal windfall, but Bank of America will pick up two-thirds of the bill.

Fri, 10/15/2010 - 19:18 | 654350 Rainman
Rainman's picture

The Beauty of American Justice !! Who said this crony capitalism ain't a great gig ?? Dude made off with .........$ 139M (-minus) $ 44.5M = $ 94.5 M. Beats the shit out of shakin' down the pizza parlors.

Fri, 10/15/2010 - 19:25 | 654362 Spalding_Smailes
Spalding_Smailes's picture

I bet he has a pile of blow and 4 hookers in his bed tonight.

Fri, 10/15/2010 - 21:19 | 654614 merehuman
merehuman's picture

is it too late to learn chinese? I cannot take this serious. Its too devastating looking ahead. My heart cries while my head rambles with innuendo of doom forecast now by many for the many.  Meanwhile the watcher that i am, i observe our common demise whilst knowing all too many still sleep while the wolves  play.    I make no attack upon our common enemy but will not trade nor honor or respect its laws.  Defensive and local. Still giving away them ozs . You cant really BE poor unless you aint got shit. I care to share the fate of my fellows and am not waiting for the government to do it for me. Brought myself up and down several times in this life, very much on purpose and its been good for me. I had  a very interesting life if i am one of the very few to leave their body as i have  so to me its all been worth it as i captain my ship still.  Beats me how i got onto this. i just let it flow. 

Fri, 10/15/2010 - 21:50 | 654678 Spalding_Smailes
Spalding_Smailes's picture

Matthew 7 ~

Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you: 8For every one that asketh receiveth; and he that seeketh findeth; and to him that knocketh it shall be opened. 9Or what man is there of you, whom if his son ask bread, will he give him a stone? 10Or if he ask a fish, will he give him a serpent? 11If ye then, being evil, know how to give good gifts unto your children, how much more shall your Father which is in heaven give good things to them that ask him?

12Therefore all things whatsoever ye would that men should do to you, do ye even so to them: for this is the law and the prophets.

Therefore whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock: 25And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell not: for it was founded upon a rock. 26And every one that heareth these sayings of mine, and doeth them not, shall be likened unto a foolish man, which built his house upon the sand: 27And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall of it. 28And it came to pass, when Jesus had ended these sayings, the people were astonished at his doctrine: 29For he taught them as one having authority, and not as the scribes ...

Sat, 10/16/2010 - 20:09 | 655704 Miss Expectations
Miss Expectations's picture

Unjunk x 3

Sat, 10/16/2010 - 10:17 | 655034 Village Idiot
Village Idiot's picture

That the guy can still get it up, blow and all, after what he's done - that really pisses me off.

Sat, 10/16/2010 - 12:41 | 655170 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

He'll "jellyfish" and then lie about it to his friends.

Sat, 10/16/2010 - 14:08 | 655283 Village Idiot
Village Idiot's picture

"jellyfish" added.

Sat, 10/16/2010 - 14:13 | 655287 kathy.chamberli...'s picture

what is a jellyfish? i just bought the most beautiful hand blown glass jellyfish side swimmer with blown glass sea urchin's lying on a bottom like ocean scape. he even put in some bubbles like these little creatures make when swimming around. these all are inside a glass globe. it is so wonderful to look at and also at night with my flashlight when i am stoned.

Sun, 10/17/2010 - 10:24 | 655614 Village Idiot
Village Idiot's picture

I believe that "jellyfish" is reference to a flacid penis.  All that talk about blown glass seems to have had another effect, however.  Especially the last sentence.

Sun, 10/17/2010 - 11:26 | 656512 kathy.chamberli...'s picture

O H my, flaccid penis now everything makes sense. idiot.

Fri, 10/15/2010 - 23:23 | 654831 caconhma
caconhma's picture

Wrong. He got away with close to $385M.

Sat, 10/16/2010 - 08:49 | 654958 snowball777
snowball777's picture

He didn't get away with shit. He's still on the planet and we don't have statutory limitations in vigilanteville.

Sat, 10/16/2010 - 10:19 | 655036 Village Idiot
Village Idiot's picture

FTW.  and not hard to find - he stands out like an orange.

Sat, 10/16/2010 - 14:05 | 655280 kathy.chamberli...'s picture

yep fined $67.5M but saved how much for his buddies in fees on mortgages, angelo? isn't it interesting they gave deals to the wealthiest on their mortgages. jeeze, the rich get all the cuts in costs and fees. i would think that would be embarrASSing to seek out fee reduction costs. the wealthy are cheap shits.

Sat, 10/16/2010 - 21:20 | 655771 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

$20MM is indemnified by CountryWide who is owned by BofA, so ...

Fri, 10/15/2010 - 18:27 | 654245 reinhardt
reinhardt's picture

labor is being liquidated


Fri, 10/15/2010 - 19:36 | 654390 cossack55
cossack55's picture

About time.

Fri, 10/15/2010 - 20:08 | 654467 Andy Lewis
Andy Lewis's picture

First the blue collars then the white collars bitchez!

Fri, 10/15/2010 - 21:23 | 654624 merehuman
merehuman's picture

blue or white collar, both gonna take off them shirts and pan fer gold. Zimbabwe americana. Am looking for a donkey, any volunteers?

Laugh bitches

Sat, 10/16/2010 - 00:00 | 654878 tomdub_1024
tomdub_1024's picture

unfortunately, you are correct as to the future, with ya MH

Fri, 10/15/2010 - 21:43 | 654667 Lord Welligton
Lord Welligton's picture


All is being liquidated.

Sun, 10/17/2010 - 00:56 | 655992 Village Idiot
Village Idiot's picture

all is being liquidated.

Fri, 10/15/2010 - 18:33 | 654254 gwar5
gwar5's picture

Burning platform? Guess so, but then I'm an optimist.

Fri, 10/15/2010 - 19:10 | 654323 Big Corked Boots
Big Corked Boots's picture

So, you got burgers on the fire and s'mores for later?

WTF is there to be optimistic about?

Fri, 10/15/2010 - 19:37 | 654393 cossack55
cossack55's picture

The endgame, BCB.  If you can't sit back and enjoy the show you are taking this shit way too seriously.  Its historic, enjoy.

Sat, 10/16/2010 - 07:24 | 654920 Oh regional Indian
Oh regional Indian's picture

Y'know what Cossack, you are right. But it's really hard to do when you are in the middle of it.

I had the privilege of being part of the dot com boom and bust and at the time it just felt greedy. Later, in hindsight, it feels historic and I'm glad I was a part of it. It finally turned me off capitalism completely. The dot.con was the ultimate gullibility test and it worked.

Anyways, really hard to get an eagle's eye view when one's concerns are so near-ground.



Sun, 10/17/2010 - 05:45 | 656213 i-dog
i-dog's picture

It's also hard to soar like an eagle when you're surrounded by turkeys........

Fri, 10/15/2010 - 20:09 | 654471 Boop
Boop's picture

Optimistic in the sense that the platform isn't burning; It's exploding, it's about to vaporize.

Fri, 10/15/2010 - 18:39 | 654274 Shameful
Shameful's picture

Yeah the ships going down, has been for years.  And no they don't care, almost no one does.  Most think they can push the day of reckoning off or it won't effect them.  Will this generation in charge sacrifice the future?  You betcha.  They can even delude themselves into thinking their not doing it.  Now as to the oligarchs, why would they care?  Sure they have kids, but you don't honestly believe for a moment that those kids will have the same future as the masses?  As you point out most of the 1st class passengers made it out.  Golden parachute anyone?  After all it's not as if the children of the feudal lords of old suffered in like the serfs children.

I don't think Jim gets the game.  This was not an accident.  It was a planned heist and demolition.  Calling it an accident perpetuates this crazy myth that somehow magically all our leaders are insanely retarded.  Yeah they keep making all kinds of backroom deals nad money hand over fist, yeah they must be dumb. What's more likely that all our leaders and policy makers step up to the plate with a sub 80 IQ (despite their often impressive academic credentials) or their crooks?

Fri, 10/15/2010 - 19:29 | 654376 DavidPierre
DavidPierre's picture

Smokey Quinn is stone-cold stupid about the demolition of the WTC... to even ask this question proves it.

"Are we better off than we were on September 10, 2001?"

Americka was demolished on 9/11 in a planned and controlled insider operation.

'Operation Dark Heart' 

   9/11Cover Up.

Fox News

Judge Napolitano's Ground-breaking interview with Lt. Col, Anthony Shaffer and Former CIA Intelligence officer, Michael Scheuer. -- Shaffer's book, "Operation Dark Heart" was essentially "censored" by the Pentagon in order that some classified details could be "redacted".

  Dark Heart highlights how a committed and innovative small group of experts can produce results.


Fri, 10/15/2010 - 19:42 | 654404 laurie
laurie's picture

DP go back to the barn. The sheep are waiting.

Fri, 10/15/2010 - 19:54 | 654440 DavidPierre
DavidPierre's picture
by Bringin It
on Tue, 10/12/2010 - 18:31

 Woop!   Woop!  Woop!  Battle stations - Ponzi Plant exposes self in public.

Screw your f'n burning platform you frauds.

Sat, 10/16/2010 - 09:08 | 654971 Jim Quinn
Jim Quinn's picture


The 9/11 convention for haters of America is convening. You're scheduled to play the banjo. You know what I mean.

Fri, 10/15/2010 - 19:45 | 654396 cossack55
cossack55's picture

Use 1797 as a guide, tho,  Sept. 5 1793 is my personal favorite.

Fri, 10/15/2010 - 18:41 | 654275 Wave-Tech
Wave-Tech's picture

Pondering the inevitable destruction of the $USD...

Who is fooling whom?

"It is with sheer disbelief, and utter amazement that the real world accepts such an empty unit of exchange to start with. To fathom a plausible reason for such collective behavior, one need not go any further than...      


Fri, 10/15/2010 - 18:42 | 654280 Serenity Now
Serenity Now's picture

David Walker, Brooksley Born.....national heros that have been completely ignored by the powers that be.  The sad truth is that we have had every opportunity to save this nation and have squandered same.  In fact, I would argue that it's been downright hard to destroy the country, and yet here we are.  Every single bit of this could have been prevented, with very little sacrifice I might add.  Good luck, everyone.  Hope you can personally swim away from the burning platform before she sinks to the bottom.

Fri, 10/15/2010 - 18:48 | 654293 Conrad Murray
Conrad Murray's picture

Are we selfish enough to leave our children and grandchildren with an un-payable burden so that we can live well today?

But, but I paid into Social Security my whole life!  I was told I would get something in return!  I don't care that the Supreme Court said I'm entitled to nothing, I can't be bothered with that.  I didn't have the time or interest to be politically active, but that's not my fault.  Why should I have to pay for my mistakes?  Why can't you people just turn a blind eye, pay in ANY amount it takes for me to live good for free for 30 years, and enjoy the happy days like I did?

Fri, 10/15/2010 - 19:46 | 654416 cossack55
cossack55's picture


Fri, 10/15/2010 - 18:56 | 654311 buzzsaw99
buzzsaw99's picture

The Federal Reserve is pulling out all the stops in attempting to invigorate the American economy...


Stopped reading right there. The fed cares only about wall street bonuses because that's all the owners of the fed care about. bernanke is a figurehead along with all those other fed jerkoffs.

Fri, 10/15/2010 - 18:59 | 654317 wintermute
wintermute's picture

Of that $13.60 trillion national debt only $0.55 trillion is in 10-year Treasuries or longer. The remaining $13+ trillion has to be rolled over many times in the new decade begining Jan 2011. Can't see this toxic pile being rolled to anywhere near 2020. Most likely it will implode 2011/12.

Fri, 10/15/2010 - 19:05 | 654331 mynhair
mynhair's picture

'The Federal Reserve is pulling out all the stops in attempting to invigorate the American economy.'

The Federal Reserve couldn't pull it's head out of it's ass, even with the help of Kim Kardashian.


Fri, 10/15/2010 - 19:19 | 654353 Dagny Taggart
Dagny Taggart's picture

The Federal Reserve is pulling out all the stops in attempting to invigorate the American economy.

I'm not sure thats accurate...

Fri, 10/15/2010 - 19:22 | 654357 the rookie cynic
the rookie cynic's picture

At least we have NASCAR, the NFL, and Playstation 3. Plus, there's still a lot of rich people around.  If Kobe and LeBron just pay their taxes, that should about cover it, right?


Sat, 10/16/2010 - 09:32 | 654984 RichardENixon
RichardENixon's picture

Well that's what I'm banking on.

Fri, 10/15/2010 - 19:22 | 654358 DarkAgeAhead
DarkAgeAhead's picture

Nevermind the US.  We've created an Ecology of Death, of disintegrating living systems.  China may briefly rise, but collectively, civilization itself is on the Deep Horizon.

Fri, 10/15/2010 - 19:48 | 654421 cossack55
cossack55's picture

Yeah, Baby. Remember the ads "Better Living through Chemistry".

Go long Monsanto till your body parts fall off.

Sat, 10/16/2010 - 23:25 | 655894 Oh regional Indian
Oh regional Indian's picture

Spot on Dark age. Spot on. All this theater is a good distraction. Rome had only the ring and no TV.

Now, the world is the manipulators stage. A burning stage even, maybe, but once you've got people caught up in the act, they think it's just special effects.....while the house burns down.



Fri, 10/15/2010 - 19:23 | 654359 buzzsaw99
buzzsaw99's picture

The fed is trying to funnel money to the banks by manipulating the emerging market currency exchange rate...


fixed it.

Fri, 10/15/2010 - 19:27 | 654367 SloSquez
SloSquez's picture

"David Walker has presented a case for inter-generational sacrifice. Are today’s generations willing to keep robbing future generations of Americans by being fiscally irresponsible today?"  Yep that's the question ultimately.  I say the "Me" generation has made such a mess, why stop now?  All for me.  Hilarious when you look at the context of it all.  Hippies to yuppies in no time.  Unbelievable!!!!!

Sat, 10/16/2010 - 11:35 | 655102 Nels
Nels's picture

I say the "Me" generation has made such a mess, why stop now?  All for me.

The mess started in 1850 or so.   And it has the finger marks of such luminaries as Marx, Dewey, Wilson and other academics and politicians.   As the twig is bent, so grows the tree.

If you don't place the blame right, you'll never solve the problem.  This is not a single generation problem.

Fri, 10/15/2010 - 19:30 | 654377 Atomizer
Atomizer's picture

Just go back to my prior posts. America will do just fine during the heighten crisis the TV tells you.

FED is the only one standing on a burning platform. Very soon, you will understand why you don't need them.

Damon Vrabel - Debunking Money (#2): The US Monetary System and Orwell's Animal Farm.

Fri, 10/15/2010 - 20:47 | 654538 B9K9
B9K9's picture

Yep, I find it hard to believe that many people cannot seem to fathom that this is really it for the Fed. Since 1776, the USA has had two national scrips (colonials & greenbacks) and three central banks.

These large scale macro elements run in cycles; implement either during a period of reform, and sure enough within a certain period of time it is so hopelessly corrupted that a complete overhaul is required.

We're due for Fortuna's wheel to turn once more. The Fed has had an incredible run, based partly on luck (massive ME oil reserves discovered just prior to 1913) and partly due to expertly playing the hand they conveniently dealt themselves. However, the time has come - all things must pass.

The funny thing about the power-elite, is that they've been around for over 3,000 years selling their snake oil, and they will still be around in another 3,000 years. There will never be a time where the siren song of money-for-nothing won't resonate with the dupes. (Just sign on the dotted line, that's all. Trust me.) So they'll take their ball and wait for another day - whether it is here or someplace else doesn't really matter.

As for us, we'll get perhaps another 50 year run before the new Treasury money is hopelessly fucked up as well. In the interim, perhaps some basic Constitutional principles can once again be re-established.

Sat, 10/16/2010 - 12:00 | 655123 RockyRacoon
RockyRacoon's picture

And there's no need to say that revolution solves the problem(s).  Need I cite France as an example?  You are right, the zombies will rise and take over again, sucking the life blood from any person who does the propagandized "right thing".

Fri, 10/15/2010 - 19:32 | 654379 cymro33
cymro33's picture

After ruining the economy, the country and it's people, Bernanke (Puppet for the Banks), like Greenspan will admit there was a flaw in his theory. Will return to Princeton to enjoy his retirement, and the rest of us are doomed to be slaves to the Banks for infinity. The USA will never be the same and will follow the path taken by the UK after WW II. After Bernanke's failed experiment the 21st Century belongs to Asia

Fri, 10/15/2010 - 19:33 | 654385 RobotTrader
RobotTrader's picture


The U.S. is destined to repeat the oft-cited "Wash, Rinse, Repeat" cycle over and over.

Why is that?  Because the corresponding "Boom and Bust and Boom" cycles continually wipe out the little guy and allow the PigMen to pick up assets on the cheap and ride the recovery road to new riches.

Don't believe me?

Is it any accident that all the perma-screechers like Nouriel Roubini are still driving 6-year old Subaru station wagons with paint sunburned off the roof and improperly applied window tint bubbling up in the back windows?


That's what happens when your car sits in the NYU faculty parking lot day in, day out.

Whereas the PigMen always get new cars each year, and they are often on the waiting list of the upcoming, new "Supercar"....


Fri, 10/15/2010 - 19:37 | 654391 Shameful
Shameful's picture

Yeah they'll keep doing the cycle till all the wealth is gone. So there is still juice left in it, J6P still has all that tasty 401k money to bleed off them.

Only problem is being on the right side of what the big boys are going to do.

Fri, 10/15/2010 - 19:51 | 654431 cossack55
cossack55's picture

The D senators met 7 Oct to discuss the 401k/IRA seizures.  Lame duck action?

Fri, 10/15/2010 - 20:00 | 654452 Shameful
Shameful's picture

This lame duck session is looking to be one hell of a wild ride.  Going to see if the oligarchs can cram everything down our throats from nov-dec.  They snap up the 401ks then know the end is rapidly approaching, with no 401k and the mortgage mess what wealth is left to steal?

Fri, 10/15/2010 - 22:08 | 654717 Lord Welligton
Lord Welligton's picture

"Yeah they'll keep doing the cycle till all the wealth is gone."

The wealth is not gone.

It is merely moving.


Fri, 10/15/2010 - 19:39 | 654397 Rainman
Rainman's picture

+100 Robo. Deviously brilliant.

Fri, 10/15/2010 - 19:51 | 654432 SloSquez
SloSquez's picture

Enjoy your posts Robo.  The cycle will continue, until it doesn't.

Fri, 10/15/2010 - 19:54 | 654443 Spalding_Smailes
Fri, 10/15/2010 - 23:25 | 654832 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

Excellent video choice.  Well played.

Fri, 10/15/2010 - 22:10 | 654722 Lord Welligton
Lord Welligton's picture

"The U.S. is destined to repeat the oft-cited "Wash, Rinse, Repeat" cycle over and over."

And as is not unusual the cycle sometimes requires a bloody war.

This is no ordinary cycle.

Fri, 10/15/2010 - 22:30 | 654753 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

If you are new here and don't understand the "Wash, Rinse, Repeat" cycle, I would suggest two readings, both are capable of explaining how it functions.

Option #1:  (I have the time it takes to watch one episode of "Dancing with the Stars"):

Option #2: (I have the time it takes me to maintain my facebook account to understand why things are not as they seem):

Option #3:  Dear Marla.

Sat, 10/16/2010 - 09:41 | 654992 Lord Welligton
Lord Welligton's picture

Not knew.

Understand the concept.

Just saying this time the cycle will not be pleasant.

Sat, 10/16/2010 - 09:59 | 655012 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

1000% Agreed.  The statement of "if you are new here" was meant for the "new" reader, not you in paticular.

Fri, 10/15/2010 - 22:47 | 654785 QQQBall
QQQBall's picture

The do=it-yourself winow tinters are hysterically funny. They buy a $20,000 car and then save a few hundred bucks by doing the tinting themselves.  They should just design them with the bubbles arleady made. Instant gratification you know!

Sat, 10/16/2010 - 10:30 | 655044 Village Idiot
Village Idiot's picture

FWIW - Car and Driver magazine just put the Ferrari and Porsche (as pictured here) head to head...and Porsche took honors.  Go to your local Porsche dealer and pick up a 2011 Turbo S - you won't be dissapointed.  Unless you are buying for the "P" factor - in which case get the Ferrari. 

Sat, 10/16/2010 - 18:54 | 655619 tip e. canoe
tip e. canoe's picture

"Oh Lord, won't you buy me a Mercedes Benz ?
My friends all drive Porsches, I must make amends.
Worked hard all my lifetime, no help from my friends,
So Lord, won't you buy me a Mercedes Benz ?"

Sat, 10/16/2010 - 14:16 | 655294 kathy.chamberli...'s picture

really like these body styles but why the heck are they putting in those vegas like lights. how cheesy can these bastards get. i am so glad i got my audi before they ruined the styling with these bling lights.

Fri, 10/15/2010 - 19:42 | 654405 putbuyer
putbuyer's picture

Funny video about the FOMC meeting at

Fri, 10/15/2010 - 19:44 | 654410 RobotTrader
RobotTrader's picture

Rasputin pretty much guarantees an all-out bailout of the mortgage fiasco via nationalization of the entire mortgage industry.

Today's POMO pretty much tipped it off.

Any wonder why Bill Gross has suddenly disclosed that he has been wolfing down MBS securities hand over fist?


Hmmm, let's do some basic math here.
- Fri, Oct 15, 2010 - 04:02 PM

"On one hand, we see the Fed doing a VERY temporary, teeny, tiny "Reverse
Repo" (Translation: Handing back the failed Pigmen gamblers a couple of
their dead, toxic instruments, and demanding back the fiatscos flung to
them), which totals:

$0.78 billion

...or less than a billion fiatscos.

Then, a few minutes later, the Fed does a "POMO" (Translation: A
VERY permanent blast of fiatscos in exchange for the Pigmen handing the
Fed something--probably a U.S. Treasury at this point, because the Fed
is getting major pressure to reveal what horrid trash the Fed has
previously accepted from the Pigmen), which totals a whopping:

Five BILLION fiatscos

...huge difference between the two operations.

And one of them being permanent.

(Ras Conclusion): What is this telling us, two years AFTER the
"Great Disintegration"? Well, Ras knows: That the collapse continues
unabated. And the Fed knows the Pigmen are scroomed and still stuck with
trillions of fiatscos of dead MBS, CDOs/Squareds/Cubeds. (Especially
now that McMortgageGate is hitting mainstream media.)

And nothing short of overt nationalization of the entire McMortgage
sector is going to resolve it.

Questions questions …

1. How can the Thugs fix all those titles (the fix should
optimize uncle Thug s “political” cost, yes)? Does that include
judges/lawyers on the streets? Again?

(Ras): When "push comes to shove" Uncle thug will "push"
everyone aside--even Attorney's Generals and smart-alec lawyers
representing deadbeat homedebtors--if it means maintaining his power.

2. Are there two or more types of Thug?

(Ras): There are many types of Thugs. (And Pigmen too!) But
there is only ONE "Alpha Thug" and that is the federal government.

3. Will the Fed help the helpless uncle Thug, given the
cost to it own self?

(Ras): The Fed serves at the whim of Uncle Thug. Period. Not the
other way around.

4. Is the bottom in?

(Ras): In what? Thuggery? Not even close.

5. What s the real rate at? What are all those
"reserves" there for? What kind of “reserve” do these newly erected
“reserves” represent? Yield bearing? Hmmm are they better than the
yield_less ones? Under what circumstances? Where does the yield come
from anyways?

(Ras): The simple answer is: "Don't ask too many questions
regarding our proppage of the banks. You may find yourself being whisked
off to a "Re-education Camp". LOL

6. Does Plaza 2 form merely (one small) part of BW4?
What the f… is that? Who does the clearing-thing therein?

(Ras): There will be NO voluntary "Plaza Accord II" JJTrader and
Rasputin put that issue to rest yesterday. Too many competing interests
from our foreign rivals/friends/enemies/trading partners/debt
enablers/strategic competitors to now have a "Jim Baker telling the
Germans and Japanese how it's gonna be" in a hotel room.

7.  Do I cling fondly to Fiatscoes? When FDIC backs
“deposits” on their way to tbtfs? When the Fed backs FDIC waiting in the
window queue? Where off balance sheet IRS Thug dictates the “policy”?
When Uncle backs the missing titles both outright & those parked @
Fed? Does he not?

(Ras): Maybe not "fondly" but rather "under coercion" is more
accurate a description why we are all "fiatsco lovers", like it or not,
under this Thugocracy.

8. When Fed backs Uncle back with QE2-only but backs
their lot wit backing up their pile of turds (waiting to detonate on
credit events, even the missing title ones? Or do we fix the cash
flow-only? Did we not just try that)? Will he (Uncle) change his rewound
mind? Via unwind? Or do I daytrade/dayhold only. To see us turning
Japanese … Is that behavioral? Keynesian?

(Ras): Indeed, you point out a similar "Perpetual Ponzi Loop"
that Ras has lamented in the past--and even in a recent post. Confusing,
isn't it? And don't look for it to change. Because the sheep are too
stupid to understand it and the Thugs and Pigmen continue to profit from
it--no matter how many times it collapses and is reflated.

9. What of the great unwind? An alternative? Given the
netted out turds ball park? Will it be allowed? If so, does the Fed lose
its BS to our Uncle before such fix?

(Ras): We had a "Great Unwind" two years ago at this time, as
Ras so-carefully documented in his "Rasipedia" series. That "Great
Unwind" was followed by yet another "Wash, Rinse, Repeat" iteration of
"Infinite Fiat" and the proles remain none the wiser. Look for the same
cycles to be repeated, Infinitely, going forward.

10. Why are we, the Sheeple allowed to see the nothing
behind those "backed" securities - right now? As if surprised, are we?

(Ras): Because--as is now TOTALLY apparent, thanks to
McMortgageGate--these instruments of toxic debt are every bit as
worthless as Ras revealed them to be THREE YEARS ago in his various
dissection of these "sausages".

11. 401k s already marked with Argentinean stamp?

(Ras): Yep, lined up for shearing and slaughter, just as Ras
predicted nearly FIVE YEARS AGO in a fifty-page report he mailed to all
his Boomer peers. Their response?: "Yawn, who's gonna win 'American
Idol' "?

When the nearly 900,000 foreclosures stated on
NBC "Nightly News" yesterday evening are added to this frightening
table, the total is a staggering:


...McMansion repos in the last three years.

Not only are every single one of those
McBoxes that were possibly resold in danger of being unwound, the even
greater problem is that everyone who was previously interested in buying
a foreclosure (approximately THIRTY PERCENT OF ALL SALES!), should now
be sufficiently terrified to sign on the dotted line, because how will
they know the deal won't be undone in the future?

This is an absolute killer for McStucco sales, right now.

Furthermore, and little-discussed, is the fact that
"McMortgageGate" puts the Fed's and Uncle Thug's direct--SEVEN TRILLION
FIATSCO--ownership of MBS and Fannie/Freddie debt (in the case of the
Fed) and the GSEs outright (in the case of Uncle) at grave risk.

So, it is absolutely imperative (from the Thug's perspective,
anyway) that this tangled mess--now being blasted all over mainstream
media, further frightening and enraging the sheeple--MUST be dealt with
swiftly and decisively.

So, look for either emergency legislation out of Congress (similar
to the way that TARP was rammed through), a Presidential "Executive
Order", or perhaps a Treasury/Fed/FDIC/FHFA/FDIC pronouncement of the
overt nationalization of the McMortgage sector (and possibly the
destroyed banks too) and the voiding-and-reissue of new McBox titles to
come shortly after the mid-term elections on November 2nd.

There simply is no other choice for these goons, who are NOT gonna
let a bunch of deadbeat squatteres--and their smart-alec
lawers--jeopardize the entire, seven-trillion fiatsco, exposure that
Uncle Thug and the Fed have here by tying up this issue in the courts
for the next five years."

Fri, 10/15/2010 - 20:03 | 654457 Spalding_Smailes
Spalding_Smailes's picture

Thanks robo-

Fri, 10/15/2010 - 20:13 | 654474 Atomizer
Atomizer's picture

Ras turned over all his buggy whips and spoons, even threw away all his doom books.

Now Ras clutches onto the Infinite Fiat Theory.


I didn't make it over to that site today. Always enjoy it. Biker does a great job. And of course, Ras always has high posting views. I would enjoy talking with Ras in person one day.

Fri, 10/15/2010 - 21:07 | 654591 Spalding_Smailes
Spalding_Smailes's picture

Thanks 4 link...

Fri, 10/15/2010 - 20:17 | 654485 fallst
fallst's picture

Just keep the pressure on, so they will throw us some crumbs.


Just Sayin'

Fri, 10/15/2010 - 21:12 | 654602 B9K9
B9K9's picture

Ras presents a pretty compelling story, but it's nothing more than artful fantasy.

The reality is that Obama's goons are jumping ship early to put some distance between them and the Administration before the inquests begin after Jan 3, 2011. Unless you're familiar with this area, it's hard to comprehend the personal risk at play once a vindictive Congress is ginned up and looking for blood. Everybody, from Rahm on down, will be spending millions of their own funds in an attempt to avoid indictment/conviction.

Secondly, I would be willing to take odds that Obama won't make it to the end of his first term. The shit that we've been discussing now for sometime is going to be playing in prime time - think Watergate, Iran-Contra, Clinton's impeachment, etc all rolled into one. And don't discount the grandstanding certain politicians will performing in order to make hay of these historic events.

I've said it before, and I'll say it again: there is an absolute dearth of recognition @ZH of who's really in charge. (Perhaps it's the financial orientation or just lack of general exposure.) The alliance between the MIC and Fed has been a marriage of convenience, but who can survive absent the other? Hint: who controls the oil?

Sat, 10/16/2010 - 06:07 | 654895 ict558
ict558's picture

I would be willing to take odds that Obama won't make it to the end of his first term.

Prediction by a local sooth-sayer (in early 2009): Obama has heart attack, Biden becomes President; Biden then assassinated.


Sat, 10/16/2010 - 10:01 | 655013 B9K9
B9K9's picture

The transition will be much more orderly - it doesn't have to be violent or involve any kind of radical conspiracy theories. That's because the sequence of events have already played out before - practically 40 years ago. In fact, we have a nice little Constitutional amendment (25) to deal with the flow.

Here's how it works: if you think the country is fucked up now, just fast forward 2.5 months to post Xmas depression and the seating of the 112th Congress on Jan 3. The People are demanding something be done, the tension has finally reached a high defcon level on the MSM, and Obama has mentally checked out.

Just like in 73-74, we will need to get rid of the VP first, and substitute him for Petraeus who would then easily pass Congressional approval. (That's because the brokered deal would hinge upon everyone agreeing in the first place before Biden's resignation and the subsequent nomination.)

Once Petraeus is sworn in, he would then be able to take effective cabinet control, perhaps giving Obama a few months to save face and resign on his own. Or, if the situation is especially dire (which I think it might be), then we quickly proceed to a fast 1-2-3 procession.

Once you have a new President and the backing of a reform minded Congress, events could begin to happen quite fast. Think FDR's 100 days. The alternative to the hypothesis above is what? Spiraling into disaster with the military overtly stepping in to maintain civil control? Nah, the above fix is easy, works, and would have tremendous popular support.

Sat, 10/16/2010 - 12:10 | 655139 RockyRacoon
RockyRacoon's picture

Once you have a new President and the backing of a reform minded Congress, events could begin to happen quite fast.

All well and good, but who is the "new President" person?  You really expect some sort of agreement from the two identical "parties" on that score?  People name names when it comes to ousting the present crew of crooks, but names come up missing when proposing the new crew.  And don't say Ron Paul -- ain't gonna happen.  It would be deadlock for 10 years waiting for a new nominee under the present system.  My scenario:  Thinks will go forward until they can't.  A new election will put new puppets into the seats.  American Idol will go on.

Sat, 10/16/2010 - 10:04 | 655016 B9K9
B9K9's picture


Sat, 10/16/2010 - 12:37 | 655168 trav7777
trav7777's picture

I used to argue this point over on Douchinger's site...I said in a contest between the king and the goldsmiths, bet on the king.

There are some exceptions, where the bankers financed the overthrow and execution of Charles, for example.

The government has the tanks and the military follows orders.  The bankers have an accounting ledger.

However, in the 1900s, the government showed itself willing to sign itself and its people over.  Throughout latin america, the same has happened again and again.  This particular government will kowtow to banksters because there is personal gain in it.  However, when things get bad enough, a Hitler or Putin or Chavez rolls in and absolutely slaughters these people.  Either way, there's nothin in it for the little guys.

Fri, 10/15/2010 - 23:42 | 654851 Minion
Minion's picture

He also had this to say about the final outcome of all those "bailouts"......

7. The entire world will plunge into a final financial demise, with the people of all the nations suffering mightily. "Great Depression II" will ensue for the next five to ten years.

Sat, 10/16/2010 - 11:26 | 655091 blindman
blindman's picture

@"(Ras): There are many types of Thugs. (And Pigmen too!) But there is only ONE "Alpha Thug" and that is the federal government.

3. Will the Fed help the helpless uncle Thug, given the cost to it own self?

(Ras): The Fed serves at the whim of Uncle Thug. Period. Not the other way around. .."


i disagree or don't fully appreciate his terminology.   a thug is an operator

who is paid to do a thuggery type activity.  they are, thugs, hired help.  imo.

lacking the financial sophistication to pay themselves.  structurally the thug

may appear higher in the scheme but it is just an illusion of a public

organizational chart.

these structures are filled with individuals who make decisions based on

their own economic advancement and selfishly convince themselves that

this is right and proper and at least in part, god's will.  funny shell games

playing out to confuse the masses while the treasury and country are being

ransacked and pilfered of their value/s.  ongoing.

end the private federal reserve bank, not the federal government.  one is

worth saving / rehabilitating.  the other is corrupt to the bone.  ?

and notice how interchangeable pigmen and thugs are, depending on the



Fri, 10/15/2010 - 20:01 | 654454 NotTheMama
NotTheMama's picture

There are striking similarities between America’s current situation and the factors that brought down Rome, including declining moral values...

I call BS on this correlation.  Declining moral values had nothing to do with the Fall of Rome.  As far as each generation of any society is concerned morality is always declining and today is never like the good old days.

If you're going to use traditional Christian morality as the yardstick, Rome fell when it was at its most Christian and at its highest level of morality.  The Rome of Caligula, gladiators, pillaging of its neighbors, and worshiping pagan gods was when Rome was at its height in the 1st and 2nd centuries AD.  Rome fell after the adoption of Christianity as its official religion, after the gladiator games were banned, after paganism was outlawed, after its stopped killing its neighbors, and after the Emperors became sponsors of the Church.

Fri, 10/15/2010 - 20:16 | 654484 Spalding_Smailes
Spalding_Smailes's picture

Do not mix up the words christianity with catholicism ...

The world we live in is a total moral mess. The family model is broken, why? Lack of faith, drugs, love of money at all cost, debt, killing unwanted babies world wide in the last 50 years, fraud, lies, the boob tube, free love, meds, lipo, botox, fast cars fast woman, credit,credit,credit, living beyond means,rv,boat,under ground sprinklers,pools, buying clothes every year just because vogue says so, infidelity, lawyers, madoff, sports, lack of reading skills, lazyness .... yawn.


Fri, 10/15/2010 - 21:52 | 654683 merehuman
merehuman's picture

jeez, i really am fucked, i never had any of that. Lol! Maybe that why i have been happy most of these years

Sat, 10/16/2010 - 10:02 | 655015 Hulk
Hulk's picture

Underground sprinklers? LOL!

Sat, 10/16/2010 - 12:37 | 655165 His Dudeness
His Dudeness's picture

"Do not mix up the words christianity with catholicism ..."

They can never be un-mixed!

Spalding, I often see your bible quotes and I appreciate your zeal. Read some more verses with an open heart. Come back home!

The Church is Visible and One

Matt. 5:14 - Jesus says a city set on a hill cannot be hidden, and this is in reference to the Church. The Church is not an invisible, ethereal, atmospheric presence, but a single, visible and universal body through the Eucharist. The Church is an extension of the Incarnation.

Matt. 12:25; Mark 3:25; Luke 11:17 - Jesus says a kingdom divided against itself is laid waste and will not stand. This describes Protestantism and the many thousands of denominations that continue to multiply each year.

Matt. 16:18 - Jesus says, "I will build my 'Church' (not churches)." There is only one Church built upon one Rock with one teaching authority, not many different denominations, built upon various pastoral opinions and suggestions.

Matt. 16:19; 18:18 - Jesus gave the apostles binding and loosing authority. But this authority requires a visible Church because "binding and loosing" are visible acts. The Church cannot be invisible, or it cannot bind and loose.

John 10:16 - Jesus says there must only be one flock and one shepherd. This cannot mean many denominations and many pastors, all teaching different doctrines. Those outside the fold must be brought into the Church.

John 17:11,21,23 - Jesus prays that His followers may be perfectly one as He is one with the Father. Jesus' oneness with the Father is perfect. It can never be less. Thus, the oneness Jesus prays for cannot mean the varied divisions of Christianity that have resulted since the Protestant reformation. There is perfect oneness only in the Catholic Church.

John 17:9-26 - Jesus' prayer, of course, is perfectly effective, as evidenced by the miraculous unity of the Catholic Church during her 2,000 year history.

John 17:21 - Jesus states that the visible unity of the Church would be a sign that He was sent by God. This is an extremely important verse. Jesus tells us that the unity of the Church is what bears witness to Him and the reality of who He is and what He came to do for us. There is only one Church that is universally united, and that is the Catholic Church. Only the unity of the Catholic Church truly bears witness to the reality that Jesus Christ was sent by the Father.

Rom. 15:5 - Paul says that we as Christians must live in harmony with one another. But this can only happen if there is one Church with one body of faith. This can only happen by the charity of the Holy Spirit who dwells within the Church.

Rom. 16:17 - Paul warns us to avoid those who create dissensions and difficulties. This includes those who break away from the Church and create one denomination after another. We need to avoid their teaching, and bring them back into the one fold of Christ.

1 Cor. 1:10- Paul prays for no dissensions and disagreements among Christians, being of the same mind and the same judgment. How can Protestant pastors say that they are all of the same mind and the same judgment on matters of faith and morals?

Eph. 1:22-23; 5:23-32; Col. 1:18,24 - again, the Church does not mean "invisible" unity, because Paul called it the body (not the soul) of Christ. Bodies are visible, and souls are invisible.

Eph. 4:11-14 - God gives members of the Church various gifts in order to attain to the unity of the faith. This unity is only found in the Catholic Church.

Eph. 4:3-5 - we are of one body, one Spirit, one faith and one baptism. This requires doctrinal unity, not 30,000 different denominations.

Eph. 5:25 - the Church is the Bride of Christ. Jesus has only one Bride, not many.

Eph. 5:30; Rom. 12:4-5; 1 Cor. 6:15 - we, as Christians, are one visible body in Christ, not many bodies, many denominations.

Phil. 1:27 - Paul commands that we stand firm in one spirit, with one mind striving side by side for the faith of the Gospel.

Phil. 2:2 - Paul prays that Christians be of the same mind, of one accord. Yet there are 30,000 different "Protest"ant denominations?

Col. 1:18 - Christ is the Head of the one body, the Church. He is not the Head of many bodies or many sects.

1 Tim. 6:4 - Paul warns about those who seek controversy and disputes about words. There must be a universal authority to appeal to who can trace its authority back to Christ.

2 Tim. 2:14 - do not dispute about words which only ruin the hearers. Two-thousand years of doctrinal unity is a sign of Christ's Church.

2 Tim. 4:3 - this is a warning on following our own desires and not the teachings of God. It is not a cafeteria where we pick and choose. We must humble ourselves and accept all of Christ's teachings which He gives us through His Church.

Rev. 7:9 - the heavenly kingdom is filled with those from every nation and from all tribes, peoples and tongues. This is "catholic," which means universal.

1 Peter 3:8 - Peter charges us to have unity of spirit. This is impossible unless there is a central teaching authority given to us by God.

Gen. 12:2-3 - since Abram God said all the families of the earth shall be blessed. This family unity is fulfilled only in the Catholic Church.

Dan. 7:14 - Daniel prophesies that all peoples, nations and languages shall serve His kingdom. Again, this catholicity is only found in the Catholic Church.

1 Cor. 14:33 - God cannot be the author of the Protestant confusion. Only the One, Holy, Catholic and Apostolic Church claims and proves to be Christ's Church.



Sat, 10/16/2010 - 14:54 | 655325 Spalding_Smailes
Spalding_Smailes's picture

Catholicism is a shell of its former self and the thought of it makes me vomit. The benifit I see is communion & meeting some good people.

But as far as the church over the last 50 plus years its been captured. The capitulation to liberal america (vatican 2) sent everything in motion.

The church and her leaders are a fucking joke, how many kids have been molested, how many fucking bums sat back and let this go on over and over and over... the last 50 plus years, cover up after cover up. Priests,bishop gets caught, says 10 hail mary's and we will move him out of state, not tell the police, hope he is better ....

What ??? this was very,very,very wide spread. Massive cover up on all levels, to think what the children went through, no help, scared to death of someone that represents a christian/jesus....

Hurting a child is the the worst thing a human could do and these fucking bums kept everything hidden ...

The catholic church is another symtom of the worldwide moral decay.

To be a christian has nothing to do the church, the church has lost her way walking blindly, holding the hand of death ...

Sat, 10/16/2010 - 14:38 | 655327 Hulk
Hulk's picture

and no underground sprinklers!

Sat, 10/16/2010 - 15:17 | 655338 Spalding_Smailes
Spalding_Smailes's picture

We live like kings in the usa, sorry but yes under ground sprinklers really is a joke, put down the remote and do some fucking yard work. Everyone wants to be pampered Lol' ....

I deserve this, I want that ..... Lets take our 60,000 combined income and leverage that into paradice ...Lol'

Many sheeple wish they could go back in time and rethink most of there errors Lol ...

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