Guest Post: Economy Flight 666 - Our One-Way Ticket To Zimbabwe

Tyler Durden's picture

Submitted by Davos Sherman Okst

Economy Flight 666 - Our One-Way Ticket To Zimbabwe

Part 1 of 2

I’ve finally had the time to thoroughly study Bernanke’s entire Press Club speech, his appearance before Representative Paul Ryan’s House Budget Committee and bulk of the recently released 2005 FOMC minutes.  

The conclusion I have drawn from all this data is that the captain of our economy, Ben Bernanke, is either an economic imbecile or a financial terrorist.  Through evil intent, or sheer stupidity, the outcome remains unchanged.  The bottom-line: He has hijacked our economy flight and changed our destination.  Bernanke is about to crash Flight 666 and all 308 million of us sitting helplessly in the passenger cabin into Zimbabwe’s airport known as Hell’s Hyperinflation Field.  

There is only one way we can avert this disaster, but time is running out, we are passing  that critical fuel point - the point where there is not enough fuel to safely divert.  Therefore it doesn’t look likely that we will be landing anywhere nice on our journey to the impoverished southern continent of Africa.

In the summer of 2005 CNBS asked Bernanke about the possibility of a housing bubble.  His exact words were “I guess I don’t agree with your premise.”  Three short years later the biggest bubble in economic history (the housing bubble) exploded and nearly took down the entire global economy.

You didn’t have to be a rocket scientist or an economist to realize that adding 7-10 million --- once unqualified buyers --- a year to a market with limited inventory and then reseting their interest rates would spell anything but HOUSING BUBBLE followed by an ECONOMIC HIROSHIMA.  Especially since the only thing that changed them from “unqualified” to “suddenly qualified” was the banks ability to off (read: sell/get rid of) their mortgages to some dimwit who considered himself or herself to be an “investor”.

Since 6 out of 10 jobs were housing related the guaranteed pop created systemic risk.  A lot of this trash was falsely rated as AAA, it was sold to “investors,” entire countries, states, local municipalities and pension funds.  This of course greatly exacerbated the mess.  The counterparty insurance risk caused by underfunded or unfunded insurance parties [AIG and alike firms] added to the quagmire. 

The Fed knew about the housing bubble in 2005, it is buried in the release of 2005 FOMC minutes.  They were laughing about it.

Bernanke’s flight crew was literally laughing at the biggest economic disaster in history.  NOT the hallmark of good leadership.

Apparently they didn’t realize that cockpit voice recorder was capturing this.  “I came across a new television series on the Discovery Channel entitled “Flip That House.” [Laughter] As far as I could tell, the gist of the show was that with some spackling, a few strategically placed azaleas, and access to a bank, you too could tap into the great real estate wealth machine. It was enough to put even the most ardent believer in market efficiency into existential crisis.” [Laughter]

On February 3, 2011, Bernanke spoke and took questions at the National Press Club in Washington, DC.  He was asked: “Do you believe that any of the growing political unrest around the world, especially in Tunisia and Egypt is linked to higher food prices which the questioner says result from the Fed’s large scale asset purchases [Quantitative Easing]?”

Bernanke’s answer? “I’m not sure I accept the premise of the first half of the question!

Nice flying Captain @$$face.

The simple, historically proven, translation for Ben Bernanke’s “I guess I don’t agree with your premise,” and, or, “I’m not sure I accept your premise” is this: ‘It’s an effing certainty.’  ‘Bank on it.’  ‘Bet on it.’  ‘It [hyperinflation as the result of a currency I made totally worthless by monetizing debt] will happen.’ 

‘Ladies and gentleman, from the flight deck this is your captain Ben Nagasaki Bernanke - we will be crashing - I mean landing - in Zimbabwe shortly.’ [Sounds of every computer generated audible cockpit warning horn can be heard in the background during this entire announcement.  If you look closely under the cockpit door you will notice the flashing warning lights - the instrument panel is lit up like a yellow and red christmas tree.]  Bernanke is ignoring all this, focused on his ivory tower skewed fuzzy statistics or is assinine belief that he can secretly debase half of our 128 trillion dollar debt away with worthless dollars.

If you are unfamiliar with how the government tweaks data, if you don’t know what Hedonics, weighting, imputations are, or you haven’t heard of a “deflator” you should take a moment to watch Dr. Chris Martenson’s video titled “Fuzzy Numbers.” 

And Chris’s short chapter on inflation while you are at it.

Chris is a brainiac who pulled the economy apart and explained it so even an economically challenged  fourth grader could “get it”.  Best yet he fully grasps the fact that a population pushing 7 billion and finite resources, resources that our economy is predicated upon is all tied together.

The entire point of this missive is this:

What you should hear when you hear the Bernanke uses the old “I’m not sure I accept the premise of the first half of the question!” --- is that it is either time to take action now or crap your pants later.

My gold and silver life vest is donned, my food ration (a freezer with a dead cow in it), and the security I need to protect my family when we enter a nationwide Katrina is there for me to cling to.  I for one don’t want to subject my family to some Superdome camp where rape and drugs are rampant because our collective leadership can’t manage their way out of a Fiat currency crisis.  Fiat currency crises are regular events, the average unbacked paper (Fiat) currency lasts 39 years, ours is 40 years off the gold standard.  There have been 3,800 Fiat currencies that have failed.  Not one has ever lasted. 

In other words - this should be a big surprise to NO ONE!

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mynhair's picture

We are all Detroit now, bitchez!

I think I need to buy a gun's picture

Bring it on....take care of your fellow sheeple....the arguements in the last blog about the 99ers guy is what they want. They want you eliminating each other. Go have a chat with your congressman as to what happened the last 25 years as they were partying.

cougar_w's picture

I don't accept your initial premise that there is a place called "Detroit".

EscapeKey's picture

It used to be called just "Troit".

Boilermaker's picture

No, it's Detroit.  I saw the signs just yesterday.  There's actual Americans living here, by the hundreds of thousands.  Some of them even work in goods producing industries.  The kind that actually uses machines and raw materials to create items with more value than their inputs.  No shit.  It's not a lie.  I even saw a few people donating food to a local food bank to help out the less fortunate.  I mean, those are some stupid mother fuckers, for sure.  But, it's really legit.  I think someone even mentioned that there was heating assistance for the riftraft so they don't literally freeze to death.  I mean, shit, what a fucking waste of cash.  With all the people waiting for organ transplants, something good could have come from their pathetic deaths.

What's next?  Everyone is going to get all 'nationalistic' and start to buy American cars?  Fuck, what is this country coming to?

mynhair's picture

Did you check ID's?  Sounds like you saw a Chrysler commercial.

Boilermaker's picture

No, no...I'm sure.  But, I might see the Chrysler commercial again on TV.  I didn't see any food banks in the commercial.  I saw an ice skater.  But, everyone knows that bitch is some kind of subsidies.  So, fuck her too.  That free-loading-welfare-queen of a cunt.

cougar_w's picture

Those Detroiters sound like a bunch of Communists. Are you sure you weren't in Canada?

Boilermaker's picture

I forgot to mention that the entire metro area is nothing more than sympathizing pinko commie faggots.  Oh, and they aren't even Baptist!  Nothing a good nuke can't take of.  Those sleazy mother fuckers have been collecting upwards of $275 per WEEK on unemployment!!!  I mean $275 for fuck sake!!!  Talk about sucking on the teets of the goverment and living high-on-the-hog.

Jesus Christ, where does it end?

tarsubil's picture

Have they started bulldozering neighborhoods to let the land lay fallow and heal? That sounds like a good way to fix housing prices.

Boilermaker's picture

Bulldoze?!  Why?  At least 90% of the citizen are convicted arsonists!  Didn't you know that?  Yea, it's true.  When they aren't shooting heroin or smoking crack rocks, all of them, they are burning houses just for shits and giggles.  I don't know about fixing the housing prices here.  Maybe we could just let everyone live on the streets?  I mean, really, what value are these people anyway?  Hell, half of them are BLACK for crying out loud!  Why even waste 50 cents?

redrob25's picture

Nobody can 'fix' housing prices in detroit. The market always wins. Giving money away to people who have been devestated by the economic meltdown makes more pain for the rest who will also experience said meltdown.

You can't avoid it. You can't fix it. You can only watch, learn, never repeat the same mistakes.

Logans_Run's picture

Now they often refer to it as Detoilet

Boilermaker's picture

Well, hell yes.  Preach on Skeeter.  Them there De'toilet'er <goo, goo, goo> people are just flat stoopid.  Hell, let's get some Pabst and talk it over some of that there Glenn Beck tonight.  He'll give it to 'em with both barrels.  They's so stoopid them there must have manure for their brains!

dick cheneys ghost's picture

the whole system is corrupt to the core. our military operates hundreds of golf coures around the world and we cant seem to find the money to educate our kids.

cossack55's picture

You made em', you educate em'. Fore!

goldsaver's picture

I dont think I accept the premise of your argument.

The US spends more in public education than any other country in the world. If spending money equaled educating children we would have the best educated children in the planet. Sadly, we dont. Most of our public education spending goes to administration, books (at $100 a copy on the average) and social programs. The problem is not lack of funds, it is poor administration and massive bureaucratic spending.

Higher learning is even worst. A college degree only makes you 39% more likelly to receive a higher salary than a HS educated person. Most jobs in the US do not require the skills learned in college. Some jobs, such as medicine, teachers, etc. Do logically require the college training. Most do not. My chief software development engineer has a degree in economics. He learned Java coding from years of doing it and online references. Brilliant programmer BTW. Makes a very respectable salary (6 figures). My own training is in network architecture. Not a college degree, just industry training and certifications (which I have to pay to maintain dammit!). I make more than my programmer.

My son is studying to be a dance teacher (fine arts and choreography). His initial training was pre-college, but he will graduate a year early (currently Dean's list) and is already working in his field.

A friend's son just graduated suma with a degree in marketing. He is working for Dish network doing telemarketing.

My point is that education suffers from lack of accountability and focus. More money will only make the problem worst.


trav7777's picture

if we subtract out the minority population (that does not mean asians, as they aren't considered minorities by the diversity police), we do have about the best-educated students in the world

blindfaith's picture

Golf Courses??????

Well, you should march yourself down to Key West, Fl and see the number of YACHTs here that are owned by Navy personnel...and they ain't row boats.  I am talking about boats that cost hundreds and hundreds of thousands of dollars, and a harbor full of them.  I won't even mention the cars these guys drive, let along the mega-buck RV's that stay here for free on the bases.

Don't get me wrong here, if a guy puts his life on the line for his country then he should be rewarded.  SO explain why, I see HOMELESS Iraq vets with donation booths set up at both ends of the Publix market asking for help, while these 'other' military guys walk right past them like they were not there.  I have talked to the vets and the shame is a national disgrace.

Just another example of how truly out of wack this nation has become.  How if you are down and out you are just so much trash.

If "America the Beautiful" was our national anthem, maybe some heads would be lower in shame.

Cut backs??? No you can cut back, might require you to drink one less bottle of wine this week because your grocery bill won't take it.

mynhair's picture

4th grade is above ODummer's pay grade.

ILikeBoats's picture

Good article, however, the Superdome rapes were later found to not really have occurred; instead it was a response to stress that certain highly-prevalent demographic segments appear to engage in during such crises.

mynhair's picture

and all those confiscated guns were rusted first...

Shameful's picture

First it's done with foreknowledge.  It's like finding a killer's dairy about how he loves murder and has killed hundreds...and then suggesting maybe he stabbed all those people by accident.

It's on purpose because he must do it to follow the Fed's dual mandate

1.  Enrich the ruling oligarchy.

2.  Keep the ponzi going as long as possible.

That's it.  Those are the only mandates they have.  If the only way to accomplish the above was to burn every American alive in a nationwide inferno, then I would go long gas and matches.  Because the dual mandate will be done, to the best of the Fed's power.

Only thing we can do is prepare ourselves and the ones we care about, and for the brave to raise their voice in public and take the public mocking, with the hope that maybe one more person can be saved.  It'd suggest everyone read up on what happens to people and society when their money dies, and prepare accordingly.  We have been given a gift in that we have foreknowledge and the Internet to research how to best weather the storm.


Oh and for the record we passed the last abort point in 01.  We could have had a controlled crash then and it would have been horrific but survivable.  We have already driven off the cliff, just waiting for gravity to take us to the crash site.

StychoKiller's picture

Yeehaw, folks!  We all be grabbin' sky...SPLAT!

Zedge Hero's picture

Shameful- You are always spot on.  Read ever comment of yours.

slaughterer's picture

Thats it. I am going to the cockpit to take Bennie the crash pilot away from the controls...  I will not put up with this irresponsible, dangerous daredevil crashing my dear country at full velocity into the world of absolute zero anymore... I am moving to action!   I am going to the Fed with a message for Bennie right now... A message he will finally understand!  ZH primed me... Time for action!

Shameful's picture

Chill out.  It's not Zimbabwe Ben that's the real problem.  If he quit tonight they would have another willing stooge in there tomorrow morning and nothing would change.  It's just the face man we throw tomatoes at.  Sure he's a monster and willing stooge but it's the whole rotten edifice behind him that is the problem.  Fed Chairmen come and go, but the dominant minority remains.

slaughterer's picture

Huh?  I am supposed to let someone with your avatar calm me down from action?  Action, action, action is what matters in this world. 3 million walking towards the Fed with torches, rifles, and lynch knots...  I can see nothing wrong with that... 

Shameful's picture

Really?  You been paying attention to the Homeland Security apparatus being built up?  Can you imagine how much they would love someone take an action seen as violent against the Fed?  It would be a gift to them.  Remember the masses have no idea what is happening, so anyone taking such an action would be cast as a villain by the MSM and the mass man would agree, it's all he knows.

If your fired up about action I would first suggest talking friends, family, strangers about the Fed and what it has done to us and what it will do.  Violence would serve no constructive purpose.  Really attacking the Fed with physical violence would be like beating up a Walmart greeter because you didn't like Walmart.  Might make you feel good, but is going to make your cause look bad.

Taking action is great, just make sure it's the kind of action that doesn't paint the Cabal of Counterfeiters as victims.

slaughterer's picture

The Bernank is the biggest threat to the security of my homeland at this point in time... ZH readers need to do something more than buying gold, ZH T-Shirts and cracking sarcastic remarks about the idiocies of the MSM and the gov... Action needs to be taken at some point... Look at Egypt... If action makes me muck and mire, then let the telluric forces rise up in me ...  These people are not victims or Wal Mart greeters, they are a highly organized cabal of absolute evil...

cougar_w's picture

Ah now you see this is what comes of turning off the TV. I suggest you get yourself to a sports bar and injest some distilled i-don't-care before you actually start to think about the future or something reckless like that.

Jesus H. Christ. Enough of this kind of talk and people will get stiff necked and start demanding changes.

goldsaver's picture

Well, other than buying PMs (gold, silver and copper jacketed lead) and getting out of debt (starving the banks), here is my little contribution to action.

Absinthe Minded's picture

Goldsaver, that is great what better way to get the word out. But maybe you should put a "use by" date on there too, it might just make the sheeple think.

Rockford's picture

You sir, provide firm footing; above the muck and mire... Thank you.

Boilermaker's picture

I've never been to Zimbabwe.  I'm fairly well travelled but it hasn't come up on my itinerary yet. 

I'm am going to shit-hole China on Thursday.  Does that count?  I can't wait to huff diesel fumes for a week and shower in garbage-can smelling carmel colored water, again.  Maybe I can eat some festering street vender food...errr...animal or insect remains.  I just love the industrial waste.  It's awesome'y!


cossack55's picture

Be sure to take some global warming pamphlets with you.

mynhair's picture

Why would anyone go the Chinee-land?

You aren't 'employed', are you?

mynhair's picture

Why go to Chinee-Land unless forced to by a job?  Thought it was self-explanatory.

Yummmm, rat-on-a-stick, with garlic to hide the decomp!

Boilermaker's picture

Ironically, I'm actually going there because we sell parts to a diesel engine maker there.  Of course, while there I'm constantly pressured to 'partner' with a Chinese company that is about 50 years behind us and 'share' our technology.  Golly, what should I do?

Shameful's picture

Rotflol!  You should write travel brochures.  Been meaning to go to China, summer vacation.  Have some friends that keep telling me I need to go and how great it is.  However a lot of my friends who have been over there are total dicks, so maybe they are just pulling my chain.  But the smell of hot garbage is less then appealing...

Making me think I should just go back to Eastern Europe, where I know the scenery is pretty and I'm already familiar with most of the scams.

Boilermaker's picture

You'll find it quite comforting when your hotel bathroom, in a "5 star" hotel, has signs that say "not fit for human consumption, do not drink" but, evidently, it's perfectly normal and reasonable to bathe in it.

Anyone who raves about how wonderful China is hasn't been more than 100 miles from the east coast.  It is a steaming shit hole of humanity.

mynhair's picture

Europe high end hotels had those same signs - 30 years ago.

It's where I learned what 'potable' meant.

Boilermaker's picture

I haven't seen any 'potable' signs in China.  Of course, my eyes are normally weeping from smog so bad that everything is blurry anyway.  So, who knows for sure.

DosZap's picture

Be sure to try some street/market vendor Fetus,as its considered a delicacy there.

They waste nothing.

jmc8888's picture

No amount of preparation will be sufficient, or did everyone miss the missive of The Road?


When it comes to resources, it's all about energy....thus Nuclear and Fusion...the now and later approach.  More energy = access to more resources.  Lots of crust left, but it needs energy to access it.  Later on there's fusion, if we Manhattan project it.

The debts are fraudulent. Glass-Stegall is the legislation, the standard, and the spirit of true American economic sovereignty.   It is the REAL stress test.  It zeros out the fake shit from the system, and immediately rights our economic ship. 

There is absolutely no reason why any of this false debt should be paid off.  Surely our choices should not change because this false debt is on our books.

But everyone is going with the premise it has to be paid.  It doesn't.  Only legitimate debt will be, and at this point, every day we wait, the greater in haircuts such debt will need to take.  Because at this point many of the debts are co-mingled with crap, and thus every piece of debt is at risk.  Everyone should know this now and be prepared for a total loss.  Again some will have steep haircuts, steeper as we go on, and others will be found to be wholly fraudulent and completely zeroed.

Glass-Steagall or Zimbabwe

Sunshine n Lollipops's picture

Agreed. It's utterly absurd to assume that, 1) this astronomical debt could be repaid, and 2) that it even should be. Yet, that assumption is made continually and almost never challenged. It's simple: the banks created it. So guess what--they get to eat it. Bon appetit, motherfuckers.


Speaking of The Road missives, here's one to chew on:

"People were always getting ready for tomorrow. I didn't believe in that. Tomorrow wasn't getting ready for them. It didn't even know they were there."