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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 2 of Part 2, Part 1 can be found here]

In the fine book “I.O.U.S.A.” former Comptroller General David Walker said, ”[The] fourth and most serious of all is a leadership deficit. The material I reviewed underscores Walker’s observation.

I’m
a huge Paul Ryan fan. I’m impressed with his handle on our budget. I
give him a tremendous amount of credit for addressing our dismal fiscal
situation head on. I commend him for making it the center of his work.
This is something most politicians refuse to even mention, let alone
address in public.

Congressman Ryan is working to solve it. As
much as I like, admire and respect Representative Ryan - I have to say:
He epitomizes Walker’s illustration of our biggest deficit. He does
not have the economic vision to see the picture and he is therefore
stunted from forming a dynamic and cohesive plan that will solve our
problems.

This is entirely evident from the compilation of video clips.

The
one thing 15,000 hours of flying taught me is this—when there is an
emergency, or even an anomaly, the procedure for saving one’s assets
boils down to 5 simple steps:

  1. Identify the Problem.
  2. Clearly Annunciate the Problem.
  3. Verify it.
  4. Remember the Corrective Procedure [memory items] - and if there isn’t a procedure—create one.
  5. Execute the Plan - and if you have any weak links in your crew remove that link immediately—rely on the strong points of your team.

Bernanke
is by definition a weak link. Obama should have fired him. He and
Greenspan created the housing bubble. They deserve no rewards for
ordering a 10.4 trillion dollar carpet to sweep their mess under in
order to hide and prolong the disaster. Paul Ryan should have used this
opportunity to publicly condemn the man and demand the idiot's
resignation. You can see by the videos that the committee is bumbling
around in the dark feeling its way around.

The only question that should be asked is: “Bernanke, do you want to resign now or when you leave this meeting?”

So what we should be hearing from Congressman Ryan is this:

  1. Identify the Problem:
    We are insolvent. We take in less than we spend. Our current fiscal
    situation is that we take in about 2 trillion in tax revenue, we borrow
    about 1 trillion and we spend 4.5 trillion.
  2. Annunciate the Problem:
    Bernanke is destroying our currency by monetizing our 1.5 trillion
    dollar shortfall electronically. His intention is admirable—he wishes
    to avoid defaulting on our debt. The downside to this is that it
    expands the money supply because the money has already been spent by our
    overextended government. Please read that again. The money is not
    sitting in a bank or over at the Fed, this money has been spent.
    Without this monetization Social Security payments would not go out,
    debt service to China et al would not be made, government workers would
    not get checks. Bernanke is fooling himself (and us if we listen) that
    when the time is right he’ll contract the money supply by selling assets
    - the buyers have not been there, they won’t magically appear. You
    can’t contract a money supply without creating a deflationary
    depression. Furthermore, if we can’t sell 1.5 trillion more treasuries
    today to China et al no one in their right mind would buy into that in a
    month, several months or a few years from now that China or any other
    investor will want to buy more of this debt.
  3. Verify it: The GAO verified it, lack of demand has verified it.
  4. Formulate a Corrective Procedure: Since
    there is no real written procedure for countries declaring bankruptcy
    we are left with five options, only the fifth option below is sound:
    1. Going
      to the IMF (the financial hit-men) and getting a high interest loan in
      giving them our resource rights as collateral (bad idea).
    2. Defaulting (bad idea - won’t fix the consumer, state or municipality collateral damage).
    3. Sneakily
      debasing the currency and paying old debt with worthless dollars
      created with a computer and keyboard (what Bernanke is knowingly or
      unknowingly doing)—a painful hard way of doing it. Commodity prices are
      pegged to the reserve currency, exporting inflation to countries where
      people make 2 bucks a day is a recipe for the other countries revolting
      from the US reserve or winding up in deposed induced anarchy. If we are
      not the reserve currency we will be like Greece—unable to print money
      and left with more debt than we can ever pay. Governor Christie is
      about to learn this lesson.
    4. Re-valuing the currency by saying
      bring us 100,000 old dollars and we’ll give you one new dollar, which
      usually diminishes faith, causes a great deal of pain and sometimes
      takes several attempts before success is achieved.
    5. The best
      idea would be doing the latter (revaluing the dollar by reissuing a new
      dollar) but backing it (at least loosely) to gold - (even if for just a
      short amount of time). The United States supposedly has 10,000 tonnes
      of gold. More than any other country. I say supposedly because it
      hasn’t been audited in decades. We also hold another 8,000 tonnes of
      gold for other countries (if our leadership stole money from us, our
      kids and their unborn kids and enslaved us and them into a world of
      instant debt just to bail out the morons on Wall Street who created
      these derivatives of mass destruction (because they bribed them with 85
      billion in lobbyist donations)—then “borrowing” 8,000 tonnes of gold
      which belongs to other countries is a given. The trick is to do this
      now, in a few years China will move from 1,000 tonnes of gold to God
      knows how many thousand tonnes and they will execute this step. We need
      to get our manufacturing jobs back from China, and we need to kettle
      their energy thirst. Let me be blunt: Until there is a new energy
      technology it is us or them. One country will be in cars, the other
      will be three peasants hanging off a moped.

     5. Execute the Plan: Paging President Teleprompter.

During one of these FOMC meetings Bernanke asked about a chart showing the value of our dollar losing 10 percent per year.
Ask yourself: Just how that plays into the Fed’s dual mandate of
maintaining price stability by preserving the value of “our” currency?
Just where can you put the savings from your flat, circa 1970s wages, to
work and get 10% per year?

No small wonder why gold was up 29% last year and silver was up 89%.

The
long bond (30 year) is tanking, the 3 decade old bond bull market is
finished! This is evident because the yield busted the 10 year moving
average when it blew above 4.75%.

Money moves out of bonds when central banks print.

Money flows into hard assets, gold, silver and commodities when central banks go berserk.

The central banks will have to come in and buy more bonds in order to drive bond prices up, inversely lowering yields/interest rates.
Bernanke’s QEII won’t hold rates down, there is not enough Fed bond
buying. It’ll take QE III, QE IV, and QE V to dominate the bond
auctions and drive rates below 4.75%.

When that happens the dollar will have the value of toilet paper.

So
to answer the question: “How does monetizing the un-payable portion of
our deficit play into preserving the value of the dollar?”—it flat out
doesn’t. That is why our dollar has the purchasing power of 4 cents.
The Fed was created 100 years ago, the dollar lost 80% since Nixon took
us off the gold standard in 1971. The dollar will literally be
worthless when Captain Bernanke completes his flight. The engines
(read: the printing presses) are melting the wings off the plane.

 

Bernanke is kidding himself, the House Budget Committee and the entire
60 Minutes audience when he says that he can raise interest rates in 15
minutes. He can raise rates but it would be the INSTANT end of the
economy. I’ve read the book: “Temple of Secrets: How the Federal
Reserve Runs the Country”, and a large portion of the book was dedicated
to Paul Volcker’s 21.5% rate hike. The adverse effects on the economy
were disastrous. Businesses stopped borrowing, or went broke borrowing,
unemployment went through the roof, housing was crushed, large
purchases of automobiles crumbled.

 

When someone’s voice crackles it indicates a total lack of confidence in what they are saying. They are not being truthful.

Bernanke says:

  • ‘The fear of inflation is overstated’ — Like the housing bubble Ben?
  • ‘We aren’t printing money’ — BS.
  • ‘The money supply isn’t changing’ — The government spends roughly 1.5 trillion more than it takes in with taxes and borrows (there are 1 million "millions" to a trillion www.vemeo.com/4428480 only 21% of our nation know this fact).
  • Spends is the key word Ben, the money supply IS increasing, the government spends money it doesn’t have and you create it.
  • ‘What
    we’re doing is lowering interest rates’ — Not working Ben, money left
    the long bond, rates blew out to 4.75% breaking the 10 year moving
    average signaling the end of the 3 decade bond bull market. It’ll take
    massive amounts of QE to sop up enough bonds to drive rates down and
    bond prices back up. It’ll toast the dollar’s value. Supply and demand
    is the key law to economics and even money supply has supply and demand
    issues. Economics 101 Ben.
  • ‘Trick is to unwind it at the right
    time’ — IMPOSSIBLE, your the only one buying this trash. There is NO
    demand for this crap. Time or timing won’t change that. You are
    bluffing yourself and us. This is another “Housing isn’t in a bubble, I
    don’t agree with your premise” delusion. Time will - once again—show
    you for the inept economic moron you really are. And by the way
    Bernanke, housing prices have declined in our nations history, it
    happened during the last Great Depression, you know the one you profess
    to be an expert on!

 

But the single biggest reason the Fed can’t raise rates is debt
service. It is right in Bernanke’s testimony. Just the cost to service
our debt would go up to 6 trillion if rates went up.

RATES
CAN NOT BE RAISED - ONLY A REVALUATION OF THE CURRENCY AND MIGRATING
BACK TO A GOLD STANDARD CAN PREVENT INFLATION. Paul Ryan did the math.
Why he or anyone else listens to Bernanke say he can raise rates in 15
minutes is absolute absurdity.

 

  • $1,500,000,000,000.00 deficit - Which Bernanke is monetizing.
  • Sound money - Can’t have it with monetization.
  • Public
    Debt is Now 69% of GDP - Let’s not forget that public debt is about 14
    trillion and the off balance sheet debt (Social Security 14.6 trillion,
    Medicare 76 trillion, Prescription Drugs 19.2 trillion and GSE is about 3
    trillion), all toll you have about 128 trillion of debt. Then think
    about the states and local municipalities. Greece starts to look good.
    Sorry Paul, you can’t have an economy with a consumer that has been bled
    to death with taxes hidden and overt.

 

  • Representative Paul Ryan asks: ‘Isn’t QE II debt monetization?’
    — It is, the government has spent the money that it couldn’t borrow or
    raise with taxes. SPENT is the key word
  • Bernanke lies and says
    it isn’t monetization he goes onto say that the money supply will be
    contracted — BS, the money has leaked into the economy vis-a-vis Social
    Security payments, government salaried workers, China et al receiving
    debt service on bonds and so on.

 

  • Unemployment discussed is based on 9.6% — Unemployment is
    actually 22%, if you aren’t aware of that you’ll want to watch the Crash
    Course mentioned and check out www.ShadowStatistics.com.
    Basically the numbers Bernanke and Congressman Mulvaney use to
    calculate how long before there is an economic turnaround are predicated
    on half (+/-) of the actual rate. Bernanke should have been slammed on
    this. While Mulvaney is one of the brighter bulbs in the room he
    clearly has more pets and chickens than economic horse power. We can
    expect over a decade (barring a bubble, some energy invention or the
    clearing of tax debt and personal debt) before rates get back to where
    they were.
  • A 3.2% GDP growth rate is also discussed — Again,
    you’ll want to watch the Crash Course chapters outlined above if you
    don’t have a clear understanding of how the government calculates GDP.
    We didn’t have a 3.2% improvement in GDP.
  • The Fed’s FOMC
    minutes discuss CEO’s desire to exploit LDC (Least Developed Countries)
    labor rates. Either one of two things will happen: 1) We get the
    manufacturing jobs back, wipe away the debt and flourish or 2) We endure
    a depression and our wages get reset to that of the LCD’s (2 bucks a
    day). Again, Mulvaney and the rest of the gang should have chastised
    Bernanke for condoning discussions about exploiting labor as acceptable
    and routine.
  • Our leaders chose the fixing of roads as
    incentive. It takes 121,600 gallons of oil to pave 1 mile of highway.
    China is way behind on their roads. Chris Martenson suggested in a
    podcast that people be put to work insulating houses to save oil.
  • 67% of the economy is driven by consumers, if you read Jim Quinn’s article, The Shallowest Generation,
    you’ll see that consumers got their money from credit, that is how the
    economy thrived. 9 billion borrowed dollars wracked up on HELOC’s and
    spent at Starbucks on 4 dollar coffees is a case in point. We have
    massive debt and 22% unemployment because we gave good jobs to China so
    CEOs could make 400 times what their workers here earned.

In Summary:
This will, without a doubt be another Katrina. All I witnessed was 2
hours of empty words and a tremendous amount of chicanery on the Fed’s
part. We can’t get to a stable monetary system stuck on this flight to
hell. I am deeply saddened that Paul Ryan won’t be a good leader until
after he learns from this colossal failure.

 

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Tue, 02/15/2011 - 15:45 | 964497 jus_lite_reading
jus_lite_reading's picture

YES YES YES!!!!!!!!!! One New Madrid quake and it's game over without a single protest...

Tue, 02/15/2011 - 16:15 | 964603 nope-1004
nope-1004's picture

In the 60 mins interview, Benocide says that "money supply isn't increasing".

Then at 1:05 of the QE-LIE video he says "at the end of this excercise the money supply will be brought back into more normalized levels.....".

So which is it, you witch?

 

 

Tue, 02/15/2011 - 17:08 | 964871 I think I need ...
I think I need to buy a gun's picture

translation hes going to raise the gold price in 15 minutes to prevent hyperinflation.

Wed, 02/16/2011 - 05:50 | 966089 Rusty Shorts
Rusty Shorts's picture

We are doomed bitchez.

 

Deal with it.

Tue, 02/15/2011 - 17:12 | 964890 I think I need ...
I think I need to buy a gun's picture

The Fed is ending. China has brought it down. They are working on the new currency now and have been for 7 years. everything will be reset

Tue, 02/15/2011 - 18:30 | 965122 Bob Sponge
Bob Sponge's picture

Where are you getting this new currency info from?

Thu, 02/17/2011 - 02:05 | 969343 chumbawamba
chumbawamba's picture

He's probably getting it from Captain Obvious.

I am Chumbawamba.

Wed, 02/16/2011 - 02:11 | 965961 I Am The Unknow...
I Am The Unknown Comic's picture

This is the only one way ticket you should ever think about.  It explains everything...Wall Street included:

http://www.youtube.com/watch?v=DtBcwDY9D_M&feature=related

http://www.youtube.com/watch?v=3aVAPzj5d-M&feature=related

 

Wed, 02/16/2011 - 05:57 | 966094 Rusty Shorts
Rusty Shorts's picture

hahaha - you forgot this one bitch.

 

SAMMY HAGAR - 1974 - PAPER MONEY

http://www.youtube.com/watch?v=580GyjDTlc8

 

 - post the lyrics to that bitchez

Tue, 02/15/2011 - 15:45 | 964499 nobusiness
nobusiness's picture

Did Bernacke forget to buy the IWM at 2:30?  The SPY bounced up, but IWM did not for 10 minutes.  Unless my quotes are wrong.

Tue, 02/15/2011 - 15:45 | 964502 hannah
hannah's picture

who runs (owns?) this country..? the politicians or the federal reserve. why cant congress tell the fed what to do and then make them do it....i guess they cant because it would end the politicians 'careers' or 'source of wealth'....there isnt a solution to our problem. we cant fix any of this.....it will fix itself when we collpase.

Tue, 02/15/2011 - 23:19 | 965756 Founders Keeper
Founders Keeper's picture

[we cant fix any of this....]---hannah

Hi hannah. I understand your frustration and hopelessness.

Regarding "we cant fix any of this" I'm afraid the situation we find ourselves cannot be undone now. The damage is too systemic, too entrenched, and irreversible. Decades in the making.

At this point, prepare as best you can while you still can. Most of what you "may" need is still available at reasonable prices. If money is an issue, consider selling some stuff. (Don't wait too long to sell. There may soon come a time when the buying dealer says "No thanks. I already have too many of those.")

Best wishes. See you on the other side of this.

 

Wed, 02/16/2011 - 03:18 | 966004 Freddie
Freddie's picture

+1

Wed, 02/16/2011 - 04:49 | 966057 slewie the pi-rat
slewie the pi-rat's picture

iyam pretty much all in meself hear.  this BE the might-e quinine, jim.

thizBeCspeeslowie ooot, eh? got grilled?  got coosh?

Tue, 02/15/2011 - 15:57 | 964507 Red Neck Repugnicant
Red Neck Repugnicant's picture

Wrong country. 

Shouldn't the title read, "Flight KFC99: America's One-way ticket to Niger"

I want my WHITE House back!

Coins/Cans/Conservatives/Craigslist/Toilets at Airports 2012

Tue, 02/15/2011 - 16:01 | 964570 homersimpson
homersimpson's picture

I think all your posts should start with "Redneck Rites Anuther Dum Comment - Reed Heere" next to the HarryWanger posts.

Unions/IOUs/Libbies/BusinessInsider/Bernanke in the Outhouse in 2012.. or whenever his term is up..

You libbies already took over the white house. Just get out of it now.. you clowns made W look like a tightwad.

Tue, 02/15/2011 - 16:22 | 964660 Red Neck Repugnicant
Red Neck Repugnicant's picture

Rumor has it that if a Tea Party conservative becomes the next House leader, the gavel will be replaced with this simple call to arms:

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

http://www.npr.org/blogs/thetwo-way/2011/01/07/132741897/dissecting-spea...

Tue, 02/15/2011 - 21:40 | 965537 undereducated
undereducated's picture

whistlin' past the graveyard...

Tue, 02/15/2011 - 23:16 | 965751 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

My lack of support for abortion has changed since you came here. I fully support the abortion of any child you create.

You are probably a bottom looking for a top so pregnancy is not an issue

Tue, 02/15/2011 - 23:30 | 965777 d00daa
d00daa's picture

The poor fuck is getting ass-raped on his silver shorts.

Pity him.

Wed, 02/16/2011 - 05:09 | 966066 slewie the pi-rat
slewie the pi-rat's picture

xenophobicxylaphonycymballs2nitenightilene

Wed, 02/16/2011 - 00:15 | 965850 trav7777
trav7777's picture

let's explore this whole "white" house thing...what exactly good have blacks brought to this nation?

Despite trillions in favoritism over 40 years, they're still irretrievably at the bottom of the socioeconomic ladder.  There are a dozen blogs which recount the trends in scholastic performance out there, despite mountains of money thrown at the problem.

It's so bad that the diversity police no longer even COUNT asians as a minority.  Yet it used to be illegal for one to testify against a white man; they also sat at the back and did not drink from the white fountain.  Indians are also of color and seem to be doing just fine.

If you mean we need to take the country back to the principles BEFORE civil rights, I wholeheartedly agree.  Nothing good has come from that movement.

Wed, 02/16/2011 - 03:46 | 966018 Red Neck Repugnicant
Red Neck Repugnicant's picture

Having a discussion about race or civil rights with a redneck bigoted white supremacist is like having a knife fight with a hemophiliac, or like trying to convince a Yankee fan that the Red Socks are better.

But I'm bored, so I'll take a gentleman's swing at it for a moment....

When I think about the silly, shallow, cosmetic, vacuous, "chicken-fried" characteristics of our modern American culture, I don't think of black people; I think of overly-dramatic white soccer moms with botox faces using GPS touch-screens in their over-sized SUVs, racing to their sterile suburban McMansions just in time for another evening of microwave food and American Idol.  I think of white people with their credit cards, living the "American dream" at a 15.99% interest rate - that's modern American culture and it's pervasively white.  

When I think about how this country has been hollowed to the core financially, I think of Wall Street and Washington plutocrats who have methodically fleeced this country and who have turned American labor into casino chips - and these plutocrats are all well-educated white guys.

When I think of crooked, two-faced politicians who sell their signatures and America's future to the highest bidding lobbyists, I think of well-educated white guys.

When I think of corporate executives who fly their Gulfstreams around the world trying to find cheap third-world slave labor to undercut American laborers, I think of white guys.  

When I think of greedy, unreasonable union leaders who demand $50/hour labor to keep their ponzi pensions afloat, I think of white guys.

When I think of American youth, I think of this white girl, who was a contender for what a model American teenager supposedly should be:

http://www.youtube.com/watch?v=lj3iNxZ8Dww

With exception to some swass-ass tunes by Easy-E and Snoop Dogg, the American ghetto is a travesty for all the obvious reasons.  But when I think about who/what truly hollowed-out this country into a flimsy, materialistic house of cards kept together with tinker toys and duct tape, I think of our own greedy, selfish, shallow, self-righteous, narcissistic white race. It is not the poor and down-trodden who have destroyed this country; it is the rich, educated, assimilated elite - and if you haven't noticed, those are mostly white people.

 

 

 

 

 

Wed, 02/16/2011 - 04:24 | 966037 RafterManFMJ
RafterManFMJ's picture

And those who invented all those affirmative action programs, welfare, etc., - white people!

Wed, 02/16/2011 - 05:42 | 966083 Snidley Whipsnae
Snidley Whipsnae's picture

+1... You hit it out of the park...

Wed, 02/16/2011 - 05:46 | 966086 Oh regional Indian
Oh regional Indian's picture

Excellent observations RNR. 

 

Black, Brown and Yellow

Dirty Dirty Fellow

Back to the ditch

With your Bitch

Make me another

Slave

Knave.

ORI

http://aadivaahan.wordpress.com/2011/02/16/truth-about-america-truth-about-us/

Wed, 02/16/2011 - 06:06 | 966101 Rusty Shorts
Rusty Shorts's picture

I still love Africa though.

http://www.youtube.com/watch?v=fP_--8Twx6A

Wed, 02/16/2011 - 07:26 | 966137 hardmedicine
hardmedicine's picture

I AGREE about 93.7 %

Tue, 02/15/2011 - 16:13 | 964514 Hugh G Rection
Hugh G Rection's picture

In Ben's defense they aren't 'printing money' digitizing it by adding zeros in a computer is COMPLETELY different.

 

Good interview Benocchio, I almost can't see the strings, pretty soon you'll be a REAL boy!

Tue, 02/15/2011 - 15:49 | 964517 bankrupt JPM bu...
bankrupt JPM buy silver's picture

I got suspended for writing a paper on the fed in my last year...Title: The Federal Reserve System:The greatest scam in modern history.

The history chair thought I was making all this shit up, and my sources were "non' library type.  Received a zero and failed.

I've kinda made it my life mission to bring these mother fuckers down.  I truly belive he is going to burn this mother fucker down before that though...FUBM too while I'm at it.

 

www.silvergoldsilver.blogspot.com

Tue, 02/15/2011 - 17:11 | 964883 I think I need ...
I think I need to buy a gun's picture

I heard last night in a conference call that the FED is done. They are going to remove the fed then let it be known that all deviratives are done! The treasury bill will replace the fed note. I don't know the timing......

Tue, 02/15/2011 - 22:34 | 965669 Calculated_Risk
Calculated_Risk's picture

You mean that bullshit pump the dinar conference call?

Tue, 02/15/2011 - 19:34 | 965254 SilverRhino
SilverRhino's picture

Where can I get a copy? 

Wed, 02/16/2011 - 00:16 | 965854 JR
JR's picture

I believe this of your history chair. The Fed is a religion with these people. It's not a question of learning, of an education, when the academics insist on a political viewpoint.

Tue, 02/15/2011 - 15:49 | 964522 Rogerwilco
Rogerwilco's picture

Gold standard, yeah right. I stopped reading when he popped open that can of crapcola.

Tue, 02/15/2011 - 15:56 | 964550 Harmonious_Diss...
Harmonious_Dissonance's picture

I suppose other systems have worked. The tally stick system worked really well for 726 years. It was the most successful form of currency. 'Course the US is likely headed the way of prison barter currency. Smokes, grass, or ass.

Tue, 02/15/2011 - 15:59 | 964562 topcallingtroll
topcallingtroll's picture

Lmfao!

Tue, 02/15/2011 - 22:52 | 965697 jimijon
jimijon's picture

No one rides for free.

Wed, 02/16/2011 - 05:40 | 965811 Oh regional Indian
Oh regional Indian's picture

Is that when they had tally stick saves at sunset?

ORI

http://aadivaahan.wordpress.com/2011/02/16/truth-about-america-truth-about-us/

Tue, 02/15/2011 - 15:58 | 964557 topcallingtroll
topcallingtroll's picture

Yeah. The gold standard is how the rich enslave the poor. Current populists forget why previous populists were against it.

Wed, 02/16/2011 - 02:18 | 965966 akak
akak's picture

The gold standard is how the rich enslave the poor.

And that is why the gold standard was only killed by the Great Peasant Uprising of 1933.

(/sarcasm)

Learn a little bit of history ---  it is FIAT currency that enslaves, impoverishes and destroys the common man and his savings.  Gold is honest money, and that is why dishonest men (which includes statists of ALL persuasions) hate it with such a passion.

Wed, 02/16/2011 - 02:50 | 965988 The Navigator
The Navigator's picture

+2 Quadrillion

Wed, 02/16/2011 - 05:25 | 966072 Bringin It
Bringin It's picture

+ I see a smoking hole where TCT used to be. +

Tue, 02/15/2011 - 16:05 | 964577 Sathington Willougby
Sathington Willougby's picture

Where's your genius plan?

Sorry someone already floated the turd standard.  Can't use that one.

Tue, 02/15/2011 - 16:32 | 964719 bingaling
bingaling's picture

Personally I think time would make a damn good currency .

Tue, 02/15/2011 - 21:54 | 965571 CPL
CPL's picture

Reminds me of a Stainless steel rat story on how one hour of work equaled one hour of work in terms of money.  Still trying to figure out participatory economics.  Star trek is based on it.  Although it (participatory economics) requires infinite resources like the current system....not unlike Marxism.

 

Actually all economic systems that are available require infinite resources/energy mainly to expand political power structures.  Which is of course utopianism and pointless as a broke-assed, fat, neck beard at a high class cocktail bar asking for a three way of the local bar girls.

Wed, 02/16/2011 - 03:44 | 966021 bingaling
bingaling's picture

This could easily become a one month seminar with it's complexity . As to resources being infinite, they are ,we just have no way of getting to them right now (we aren't Star trekker's just yet we still are sailing on wooden ships) .

As for bureaucracy it could be done in school by the young ,the same time they are getting an education they are doing civil service /paying taxes .

On a side note this is utopian BS like you said but it is fun imagining it .

Wed, 02/16/2011 - 06:54 | 966123 TBT or not TBT
TBT or not TBT's picture

Teenagers running the DMV?   How about the car title departments too?

Tue, 02/15/2011 - 21:44 | 965545 robobbob
robobbob's picture

it was  one of several options, and it said "loosely"

read up on the concept of freegold

open market priced gold held by a CB as an underlying asset to help provide a backing to a floating currency. think NAV of a commodity fund, with your money as a share.

Tue, 02/15/2011 - 15:51 | 964527 Harmonious_Diss...
Harmonious_Dissonance's picture

Right, fire Bernanke. Problem solved? No, I don't think so. It really doesn't matter who is in charge. The article talks about the great pain of Paul Volker when he raised rates. Just what would a different FED chair in Bernanke's psoition do? What magic trick should the Bernank have done? The monetary system itself, when coupled with manditory infinite growth and peak, well, everything (Gold, Oil, ect.). 

 

Wed, 02/16/2011 - 05:30 | 966075 Bringin It
Bringin It's picture

He should have been straight with people.  That was his job.  Instead, as he's basicly a crimminal, he let his friends go on the last and largest looting spree of all time.  The available resources, that could have mitigated the effects have been pissed away to create things like Angelo Mozzilo's bonus and pointless wars.

I hope that answers your question.

Tue, 02/15/2011 - 15:52 | 964530 LostWages
LostWages's picture

We have no leaders.  A leader would put the country first, ahead of their own re-election ambitions.

Nobody in Washington will make the "tough" choices as it will be political suicide.

At the very least the elected ones need to start planning how to rebuild the country from the ashes as they won't do a fucking thing until after the country implodes.

The first thing the assholes need to do is Term Limits.  Remove the fear not getting re-elected and maybe these douche-bags will start doing the right thing for a change.

Tue, 02/15/2011 - 16:02 | 964572 cosmictrainwreck
cosmictrainwreck's picture

+10 you got that right. Man, when I saw they were gonna make that skinny-dick little weasel timmah into Sec'ty of the fuckin' TREASURY of the USA - well that was just the cherry on top of Ben as FedChiar. GAG. I mean, seriously - these douchebags are America's creme-de-la-creme?? Don't answer that. We so fucked.

Tue, 02/15/2011 - 16:09 | 964590 jomama
jomama's picture

again:  ALL US POLITICANS TAKE BRIBES TO GET (S)ELECTED.

anyone going against the plutocracy will either be squashed for lack of funds or, if they do make it to office, find themselves a victim of a terrible accident.

this republic is done.  it's been done for quite some time.  all we can do is wait for the hitstorm and hope the world doesn't get nuked as a result.  

then we can rebuild.

Tue, 02/15/2011 - 16:30 | 964703 ZerOhead
ZerOhead's picture

Sad but true.

Let's make sure the Fed ain't around when the 'reset' button gets pressed.

Wed, 02/16/2011 - 00:09 | 965842 Founders Keeper
Founders Keeper's picture

[Let's make sure the Fed ain't around when the 'reset' button gets pressed.]---ZerOhead

I agree. Yet, I don't think that's going to be the greater challenge.

I pretty much figure the Fed will be gone post reset. The greater challenge will be preventing future private, state, and federal institutions from inflating the monetary base. Furthermore, how will we disconnect politicians from the banking well? What changes if any need amending to the Constitution to make clear to the judiciary branch that inflating bank notes and degrading coin content/weights are a violation of individual property rights.

Until these problems and others are addressed, I expect Fed2 and Fed3 and Fed4, ad infinitum.

 

Wed, 02/16/2011 - 05:34 | 966079 Bringin It
Bringin It's picture

Thoughtful post.  Good points.

Tue, 02/15/2011 - 21:56 | 965576 CPL
CPL's picture

Just like Egypt!!!...wait...

 

no.

Wed, 02/16/2011 - 03:55 | 966024 bingaling
bingaling's picture

The problem is "we have leaders" we dont know,(professional con men)that is the scam . Representation in Gov't should be by people you personally know and vote for not people you don't know,todays governemnt in no way represents the diversity of America  .

Tue, 02/15/2011 - 15:53 | 964531 Pilot
Pilot's picture

Somehow I just knew you are a Pilot, Tyler.  When the VSI is pointing down and the altimeter is unwinding, lies and opinions don't matter much, do they?  It is do something or die.  Very simple.

Tue, 02/15/2011 - 16:07 | 964584 10kby2k
10kby2k's picture

 

Its not do something or die....its do the RIGHT thing or die.  Do you want to postpone the crash 1-30 minutes or do you wish to remain airborne?

When our leadership changes from short term gratification to long term sustainability we then have a 'chance'.  And I say only a 'chance' because by kicking the can down the road so long we might not be able to dig out of this hole.

It really is that simple. All the rest of this talk is all bull shit.

 

Tue, 02/15/2011 - 15:52 | 964532 moldygoat
moldygoat's picture

"calling Cyber 9/11........ you are needed in Bernakes office for global reset duty"

Tue, 02/15/2011 - 16:01 | 964568 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

TIME TO SCRAPE SOME MOSSAD SCUM OFF THE BOTTOM OF THE BARREL AND READY THEM FOR DEPLOYMENT IN AMERICA. (again).

Tue, 02/15/2011 - 16:19 | 964635 cosmictrainwreck
cosmictrainwreck's picture

oh, put a sock in it, Judy. you a wacky beatch

Tue, 02/15/2011 - 23:18 | 965754 johnnynaps
johnnynaps's picture

The Wisconsin governor says the National Guard is ready for Union thugs when they squash collective bargaining next week. I hope this shit spreads fast......I got a bar to drink!

Fri, 02/18/2011 - 09:32 | 973660 blindfaith
blindfaith's picture

and now spread to Ohio...

KENT STATE anyone?

Wed, 02/16/2011 - 05:40 | 966081 Bringin It
Bringin It's picture

That's very spooky.  Joe has already announced his retirement you know.

Tue, 02/15/2011 - 15:54 | 964539 topcallingtroll
topcallingtroll's picture

The trick is indeed when to unwind, how, and how fast. We have at least one inflationary scare and one deflationary scare ahead of us during this unwind/rebalance. The only thing this author has to offer is to go ahead and accept a terrible deflation. I will stick with the bernank. He is at least trying to steer the car safely. Those who oppose bernank just want to grab the wheel and wreck it right now, for our own good of course.

Tue, 02/15/2011 - 16:24 | 964667 10kby2k
10kby2k's picture

 

I'm in the lets get it over with crowd. Eventually we are going to HAVE to change. Our standard of living is going to decline. Jobs are going to have to be re-patriated. We will have to go nuclear or other and/or go to war to conquer this resource. And on and on. But our leadership is just trying to delay the inevitable and/or deny it.

If I personally am in a bad situation I bring it to the forefront and face it ASAP. I don't delay/deny/confuse/convalute its existence.

Tue, 02/15/2011 - 16:31 | 964711 kridkrid
kridkrid's picture

You can't "unwind".  We have selected an interest bearing debt instrument as the core of our monetary foundation.  It moves slowly in one direction until it can't... then it collapses.  Those who want to grab the wheel recognize this. 

Tue, 02/15/2011 - 18:12 | 965080 Jean Valjean
Jean Valjean's picture

You really don't get it.  The Bernak has the accelerator to the floor.  The wreck is inevitable.  Of course I want to wreck it right now before the car reaches a speed where we will all die

Tue, 02/15/2011 - 21:44 | 965543 Sheepneck
Sheepneck's picture

Kind of sounds like a heroin junkie justifying one more hit.  "Well I don't want to deal with the withdrawal symptoms now, I can ease my way out later."  Problem with this philsophy is the more you shoot up, the harder it becomes to really come clean and fix your problems.  Same with our addiction to debt and easy money coming from our drug dealer (your buddy) Zimbabwe Ben. 

Tue, 02/15/2011 - 15:55 | 964541 dick cheneys ghost
dick cheneys ghost's picture

 whole system is in a "box" and it aint coming out. look for a proxy war with china, played out in pakistan. 

Tue, 02/15/2011 - 16:01 | 964569 moldygoat
moldygoat's picture

Pakistan eh? tell me more.

http://moldygoat.tumblr.com/post/3202801458/did-the-u-s-finnish-arming-pakistan-just-in-time-to

I am thinking so too but am always looking for angles.

Tue, 02/15/2011 - 15:57 | 964552 Shameful
Shameful's picture

Cannot be fixed, cannot be saved.

Paul Ryan voted for the bailouts IIRC.

What one has to understand is the parties are united in one goal, pillage. Asking them to stop would be like asking Genghis Khan to stop looking your city, met with laughter.

You mention gold, yeah good luck with that. If we had it which is doubtful, the planet would make a run at it. If they had dollars which just got nuked they would be eager to take gold for them knowing that we are likely not going to deal with out problems. We would be faced with a Nixon gold withdrawal problem.

The spending cannot be gotten under control because the people themselves are addicted to it. Does any thinking person really believe that the SS ponzi will end well? Or Medicare? Or our vast mil spending. But the system is so rotten it is addicted to these things. We have become dependent on the drug that is killing us.

Only hope is being able to pick up the pieces after the flaming wreckage comes to a halt. It's noble to try to right the ship, but to late. Really this is like trying to fix a plane with both wings ripped off and the pilots taking the only parachutes. Brace for impact.

Tue, 02/15/2011 - 21:50 | 965565 Snidley Whipsnae
Snidley Whipsnae's picture

Excellent post. We have to keep in mind that fear of change ranks right up there with fear of death. So you are right...there is no changing the trajectory of this flight path until the vehicle, that we are riding in, hits some object.

I doubt there will be many significant pieces left.

Tue, 02/15/2011 - 21:51 | 965570 robobbob
robobbob's picture

under the freegold concept, the gold is held as a type of collateral underlying the currency. not redeemable. Contributes to the NAV that supports your currency's exchange value.

 

Tue, 02/15/2011 - 22:11 | 965608 Shameful
Shameful's picture

Will not work.  What is to keep the price honest if there is no price discovery?  Why not set my price at $1 = 1 tonne of gold?  They take their dollar to me to redeem and I laugh in their face.

Only in an open exchange system would that work.  Problem is with an open exchange again you would see a run at the gold, since he who panics first panics best.  The only way to maintain a system where gold was used as a reserve would for it to be fully convertible and fixed to a price.  With price fluctuations there would always be an upwards bias and therefore always be an incentive to be an early exiter in the system to get the most oz for the $s.  You open it under a floating exchange and it's BEGGING to be pillaged.  But without an exchange then it's just more fiat, a number you assign to something that means nothing.  So gold may sell for $1300 an oz, but the gov claims $1 = 1 tonne.  Trust me if I can think this through there are a hoard of guys in the market that would see it.

Tue, 02/15/2011 - 23:52 | 965816 mcguire
mcguire's picture

"he who panics first panics best. "

awesome! 

i think the true paradigm shift for those who think ahead is to admit the real possibility that these MFs will try to end "money" and go with RFID.  if one does not admit this as an outlying possibility, then one is not truely thinking like a futurist, and will therefore limit the ability to plan in what is a 'black swan' world.. or, as i prefer, a conspiratorial one..

Tue, 02/15/2011 - 15:57 | 964553 New Revolution
New Revolution's picture

The New American Revolution is on its way...

Tue, 02/15/2011 - 22:31 | 965647 cranky-old-geezer
cranky-old-geezer's picture

... on Twitter / Facebook.

Forget anything beyond that.

5% of people supported the Revolutionary War.  95% were content to remain British colonies.

This time around, 5% will be preparded for hyperinflation & economic collapse, 95% won't.

95% will always be sheep.

Fed knows this.  Bernokio's bosses know it. Via hyperinflation that 95% will be looted till they have nothing.

Sheep always get sheared ...or slaughtered.

Tue, 02/15/2011 - 15:59 | 964561 csmith
csmith's picture

"We need to get our manufacturing jobs back from China, and we need to kettle their energy thirst. Let me be blunt: Until there is a new energy technology it is us or them. One country will be in cars, the other will be three peasants hanging off a moped."

This is flat wrong. We don't need a "new" energy technology. We have 100 years worth of a perfectly good energy technology under our feet; natural gas and liquids from dozens of very large shale formations. Big oil sees it and is moving to it. Electric utilities are shifting baseload capacity to it as they recognize the price will be (relatively) stable for the next decade. 

Tue, 02/15/2011 - 16:15 | 964618 Harmonious_Diss...
Harmonious_Dissonance's picture

Your share energy delusions are all "fracked" up:

http://www.youtube.com/watch?v=U01EK76Sy4A

 

MMM!! Good ole made in the USA energy water! Who needs Red Bull??

Tue, 02/15/2011 - 16:00 | 964564 jomama
jomama's picture

Paul Ryan doesn't have the common man's interest at heart with his rhetoric:

http://www.opensecrets.org/politicians/contrib.php?cycle=2010&cid=N00004357&type=C

additionally, you only serve to discredit all your hard work in putting together this two piece article by stating things like (implying Obama or Ben actually makes these kinds of decisions):

Bernanke is by definition a weak link. Obama should have fired him. He and Greenspan created the housing bubble.


Tue, 02/15/2011 - 16:02 | 964571 Dan The Man
Dan The Man's picture

---------

YAH! What he said!

Tue, 02/15/2011 - 16:04 | 964575 gorillaonyourback
gorillaonyourback's picture

not defending ben but if he stops QE how we gonna pay unemployment benefits, food stamps, pension obligations, etc....  he is just keeping the party going trying to avoid the revolution

Tue, 02/15/2011 - 16:36 | 964738 kridkrid
kridkrid's picture

Avoid it until our energy can be properly diverted to something else.  War works well.

Tue, 02/15/2011 - 17:17 | 964913 cosmictrainwreck
cosmictrainwreck's picture

well, it better be a real whoop-dinger, shoot-em-up... that dang Afghan/Iraq thing is a real yawner to the public

Tue, 02/15/2011 - 16:05 | 964579 Sean7k
Sean7k's picture

Great compilation of material, but a zero on analysis. The author prefers protecting the central bank to taking back control of the currency. Default is dismissed as an option. Why? Probably because it will hurt the bankers first and formost.

He prefers stealing the gold of other nations, he overestimated the US gold supply by 1.6 thousand tons. He called for a gold standard, rather than freegold. Gold standards can be manipulated, suspended and modified to gold bullion standards.

He thinks getting rid of the chairsatan will make a difference. Wrong. It's the FED dummy!

 

 

Tue, 02/15/2011 - 21:31 | 965522 perchprism
perchprism's picture

Yeah, plus he said Annuciate twice when clearly it would be more correct to say Enunciate.

Wed, 02/16/2011 - 05:46 | 966085 Bringin It
Bringin It's picture

It's the FED

Tue, 02/15/2011 - 16:06 | 964581 gorillaonyourback
gorillaonyourback's picture

now who of you is really ready for the revolution? Its gonna be hard times and we fat ass, couch potatoes aint gonna like it

Tue, 02/15/2011 - 22:01 | 965582 CPL
CPL's picture

Agreed, most of you will die of starvation while the federal, state and local government agencies starve with you.

 

Peak humanity, I see the return of mass grave sites and people turning the cerimony to a wave of the hand.  Difference being, it'll be on the door step not 4000 miles away.  ...sigh... people as a herd are so dumb.

Wed, 02/16/2011 - 00:43 | 965879 Founders Keeper
Founders Keeper's picture

[now who of you is really ready for the revolution? Its gonna be hard times and we fat ass, couch potatoes aint gonna like it]---gorillaonyourback

I expect the "fat asses" will be quite a bit thinner by that time.

 

Tue, 02/15/2011 - 16:07 | 964583 Ancona
Ancona's picture

The whole problem can be summed up quite easily. The system has been completely subverted and cannot be returned to its equilibrium state. If the Fed pulls its bid, we're irretrievably fucked because the system collapses.

Can you imagine what we would have to endure if the IMF stepped in?

Revolution anyone?

Tue, 02/15/2011 - 16:07 | 964585 brodix
brodix's picture

It's all BS!! How did Volcker cure an over supply of capital by rewarding supply and destroying demand, which is what higher rates do? 

 Next question: What is the difference between the Fed selling debt it's holding, to draw down the money supply and raise rates, vs. the Treasury issuing fresh debt?

 The Treasury sells lots more than the Fed and pours the money back into the economy in ways which do not create immediate profits, but underpin the ability of private investment to do so. Therefore the Treasury borrowing is not only direct demand for capital, but has a multiplier effect in the private sector. 

 Remember that the first time Volcker tried lowering rates, around 1980, inflation remained quite healthy, but the next time he did, in '82, the federal deficit was over 200 billion, which was real money in hose days and far more than Volcker had been buying up.

 The reality is that capital is subject tot he law of supply and demand and it is demand which determines how much supply is sustainable. So we spend thirty years having the government borrow as much as possible, then have homeowners borrow as much as possible. Then create lots of synthetic securities to store even more capital... Does anyone want to accept that money is simply a contract and not an actual store of value and when everyone is cheating on that contract, it has no value?

 The rich are as stupid as everyone else, well almost. They just don't know it yet. Capitalism: The worlds greatest delusion.

Tue, 02/15/2011 - 16:07 | 964586 trav7777
trav7777's picture

look at his SOLUTION in #5!  "We" have to curtail China's energy consumption?  IOW, we have to perpetuate other nations' poverty so that we can sit atop the consumption-per-capita list.

This sounds like war to me.

Tue, 02/15/2011 - 23:54 | 965820 mcguire
mcguire's picture

that was my impression too..

Tue, 02/15/2011 - 16:08 | 964589 oogs66
oogs66's picture

Lady Gaga was more humble and honest on 60 minutes than Big Ben and she isn't actually destroying the world

Tue, 02/15/2011 - 16:21 | 964646 aheady
aheady's picture

I beg to differ.

Tue, 02/15/2011 - 22:03 | 965590 CPL
CPL's picture

I remember when Lady Gaga was called David Bowie...more things change...

Wed, 02/16/2011 - 02:01 | 965954 chindit13
chindit13's picture

And she can't change her name to a symbol, because Prince already gave that a shot.  I'm thinking she is going to be known by an aroma rather than a symbol, and I think I'm not going to like that aroma.

Wed, 02/16/2011 - 05:14 | 965956 chindit13
chindit13's picture

dup

Tue, 02/15/2011 - 16:15 | 964615 Sofa King
Sofa King's picture

"Our leaders chose the fixing of roads as incentive. It takes 121,600 gallons of oil to pave 1 mile of highway. China is way behind on their roads."

-Gallons instead of Barrels is always used when you want to make more of an impact.  Also, what is left out of the statement is that asphalt is a component of crude oil that is removed during the refining process.  I guess it makes more of a impact this way.  Everybody is just full of shit now a days.

Tue, 02/15/2011 - 16:19 | 964639 ZerOhead
ZerOhead's picture

Powerful presentation.

Nice work!

Tue, 02/15/2011 - 16:26 | 964641 jmc8888
jmc8888's picture

Who the fuck NEEDS a monetary system? Anyone ask that fucking question?

Paul Ryan is a fascist, no better than Genocide Ben.

1. The problem is fraudulent debt THIS MONETARY SYSTEM foists upon us

2. Glass-Steagall

Funny how he says that state balance sheets can't be improved.  He obviously has never heard of Alexander Hamilton and what he did as our republic was being formed.

Every state was insolvent

LIKE NOW

The federal gov't takes on this debt.

Which is no problem when you realize that taking on 100 percent of the state's debt (if we were to choose to) is akin to 1/100 to 1/10000 of how you characterize it...amongst debt or amongst debt and derivatives.  In other words...Glass Steagall wipes away the fraudulent debt, and there is NO REASON why the federal gov't can't lift the state debt off it's hands.  (plus at a discount AFTER haircuts)

Paul Ryan and all who support his fascist ideology are DEAD WRONG.

They are just like Genocide Ben except they get there from the lack of spending, not printing.  Both for fraudulent debts.

Supporting unnecessary cuts when the benefits of Glass-Steagall are immense = fascist sophistry.

Go ahead and support the fascists...just know their way won't work either.  There is no fixing the monetary system.  Not through printing.  Not through cutting.

Only Glass-Steagall.

But these fascist assholes (which is what they 100 percent confidence are) want to make everyone go through this, even though in the end, it won't save the system.

Not to mention you'd have to be a real sociopath to go down this road.  Clearly Genocide Ben doesn't hold the monopoly on crazy, as all Paul Ryan or Ron Paul Austrian ideology followers are just as stupid as Ben Bernanke, minus the printing.

That's it.  You're still monetarist scum, just you won't print.  Which also happens to be the ONLY bone, little people get.  Which isn't the answer, obviously, because the answer is Glass-Steagall.

What asshole can seriously sit there and say, cut this and that and in reality kill people, to pay off this fraudulent debt...and not think people can't see through this bullshit.

Well obviously Paul Ryan and Davos Sherman Okst are just that.  Dumb as Bernanke.  Plus they still don't know what Capitalism entails sometimes....losses to investors.  Get over it. Deal it with.  Becuase the world can't deal with the alternative.

Tue, 02/15/2011 - 16:44 | 964774 kridkrid
kridkrid's picture

IMO... you are right about much of what you say, but you are wrong in blaming the elimination of Glass-Steagall.  The elimination of GS and the CFMA created a mechanism for another rung of the Ponzi scheme to be added to this monstrosity, but everything else is baked in. 

Tue, 02/15/2011 - 16:54 | 964822 kridkrid
kridkrid's picture

By the way... Ron Paul DOES address the "fraudulent debt that this monetary system foist upon us" which is why he is in favor of a different monetary system... one of competing currencies.  Do a google search under "image" for public and private debt.  Look at all forms of debt... household, corporate, finance and government.  Look at the steady growth we've enjoyed over the last 50 or 60 years.  That is the effect of the "fraudulent debt that this monetary system foists upon us".  This didn't start with the repeal of Glass-Steagal just like it didn't start under Reagan.  These are the memes used to keep the debate focused on R vs. D... it isn't about that, IMO.

Tue, 02/15/2011 - 19:01 | 965189 Shell Game
Shell Game's picture

Paper currencies of the world are almost all crap, so competing crap is not a solution.  There is only one reason our so called leaders are negative toward the gold standard - it is not in their, and the puppet master's, self-serving interests. Period.

Tue, 02/15/2011 - 22:11 | 965601 CPL
CPL's picture

Collapse the paper currency and you have a problem.  Namely nobody knows how to do anything.  Why would any service industry stay open tommorrow?  Or any office job?  Seriously.

 

Hands up for anyone that would walk into work tommorrow for their job without money (translated food/water/housing/clothes)? 

Anyone with a business that builds, fixes or farms take anyone from the office environment?  Anyone?

Ayn Rand was 70 years before her time.  We now have a surplus of people wandering around occupying space, time and resources.  The woman would have kicked the shit out of the coke and pepsi challenge called American politics in around five seconds with two seconds of ad-lib on the state of affairs and what needed to be corrected.

Tue, 02/15/2011 - 16:24 | 964666 jus_lite_reading
jus_lite_reading's picture

I believe the big RESET button will need to be pushed

Tue, 02/15/2011 - 17:10 | 964880 zebra
zebra's picture

watch out for R Cullen.. you should have a one-on-one with him at pragcap dot com

Tue, 02/15/2011 - 17:32 | 964957 ConfusedIdiot
ConfusedIdiot's picture

Today is the 2012 budget. Not yet passed is the 2011 budget. Each case the cash dollars out exceed (ed) the cash dollars in by a lot (anything over $1 trillion is a lot). The Fed Chairman neither proposed nor congressionally oversighted either of these budgets. Who is to blame for printing up expenses too large for the revenues to cover? Why did the Fed Chairman agree to cover the gap by borrowing from freinds, neighbors and employees? Who is really to blame for this budget deficit? Charlie is in re-hab. Regards CI

Tue, 02/15/2011 - 17:52 | 965023 MrBoompi
MrBoompi's picture

Ryan talks a good game but he's just another Republican who takes his orders from the same people who give Bernanke his.

Tue, 02/15/2011 - 22:17 | 965623 CPL
CPL's picture

Yup, in the game of sucking political dick he's started at the shaft and working his way to the nut sack.  Ryan is about as honest as any other politican, which is the same as saying Kermit the frog is more of a frog than he is a puppet.

 

I have no clue why my Yankee cousins continiously want to fall on a politicians cocks when the obvious solution is kill every last one of the corrupt bastards and their civil servants.  Eat cake for anyone cares, but it's your country I suppose.

Tue, 02/15/2011 - 18:02 | 965054 Sheba Poe
Sheba Poe's picture

I attended a forum today where the guest speaker was Hank Greenberg, the former chairman of AIG. I asked him how he felt about the Fed's efforts to combat the economic crisis. His reply: "Bernanke should be fired, a new chairman named, and the asset purchases stopped. We need to send a signal to the markets that...they're markets".

Tue, 02/15/2011 - 22:18 | 965632 CPL
CPL's picture

And what was learned? 

Not a single fuck is given on the state of affairs.

Tue, 02/15/2011 - 18:09 | 965071 AUD
AUD's picture

Government debt certificates - overwhelmingly short-term obligations - are virtually the sole components of the Federal Reserve System's non-gold holdings. Consequently, those debt certificates have become for all practical purposes equivalent to cash; as such, they constitute the "quick assets" of the commercial and savings banks. They are liquid because they can be readily monetized at the central bank. But their volume is totally divorced from the economic process. It depends on whether or not the Treasury runs a cash deficit, on its debt management policies, on its propensity to take recourse to the facilities of the banking system, and on the latter's readiness to "oblige."

Nominally, the Federal Reserve System, at its discretion, may monetize or may retrace its steps, expand and contract. Thereby, the automatism of the commercial credit setup under a self-regulating gold standard is replaced by central bank authority in charge of managed money. This tremendous power implies responsibility-to whom? Needless to say, the ultimate power belongs to those who had delegated it, be it the Congress or the Administration. As a matter of fact, the Federal Reserve may be in actual control of the money supply while things go smoothly - as long as the government finds no difficulty in "rolling over" its maturing debts or financing its deficit, and unemployment does not reach major proportions. In either case, the Federal Reserve has no choice but to administer to political dictate.

Melchior Palyi - 1958

All this Bernanke bashing does miss the point. Central bankers are in government employment. Automatons doing the governments bidding if you will.

Tue, 02/15/2011 - 19:39 | 965271 ConfusedIdiot
ConfusedIdiot's picture

TU, Aud. The Fed is now and was then a subject of the body politic. Don't like the Fed? Call your congressman or lady as it might be. Regards CI

Tue, 02/15/2011 - 22:20 | 965637 CPL
CPL's picture

wow...just wow.  I would lmao, but it's seriously that unfunny now.

Wed, 02/16/2011 - 01:25 | 965930 Founders Keeper
Founders Keeper's picture

[The Fed is now and was then a subject of the body politic. Don't like the Fed? Call your congressman or lady as it might be.]---ConfusedIdiot

While I do appreciate your sentiment regarding congress' responsibility to the electorate, I urge you to consider the "facts on the ground."

Our Founding Fathers did not intend seats in public office to become thrones from which politicians would amass personal wealth, influence, and prestige.

 

Tue, 02/15/2011 - 18:23 | 965107 MarcusAurelius
MarcusAurelius's picture

I still for the life of me don't get why people/congress are turning to the FED to tell them what employment is going to or not going to be? How the hell does the FED know it simply implements monetary policy. It has no bearing whether companies hire, outsource, cost cut. It is like a planning  committee telling a property developer that based on sales of the past five years of 10 lots a year we project it will take 10 years to clear off the present inventory. Therefor we don't need any more develpment for 10 years based on present demographic growth patterns. I use this example because Bernanke and Greenspan (and others like him) are simply larger versions of municipal planning committees. The point being the lots could sell out in a year or months based on any number of factors that can't be accounted for. Like interest rate drops driving speculative buying, lowering of prices stimulating buying, more people moving into the area, a sudden perception that this subdivision is where you people are moving to and any host of other variables that have nothing to do with numbers and statistics. Bernanke is simply a puppet. So was Greenspan and when they junp started the economy in certain areas and addressed their target inflation rates and other central bank policy they created unforseen circumstances that they had not bargained for. I have said it before that these people may know their economics but this is not an economic issue. It is an addictions issue. The society is simply hooked on cheap money. Credit (M3). The man may have helped produce the cheap booze but the people drank and the bar tenders (banks) couldn't pass it out quickly enough to keep the people partying and drinking. A good time was had by all. Except the hangover. That's where the good time isn't so good. When the party goes on for thirty years it is no longer a party but rather a catastrophe waiting to happen. These central bankers were but one cog in the wheel. They figured that by giving the addict booze they were helping. They weren't.   

Tue, 02/15/2011 - 19:37 | 965263 Buck Johnson
Buck Johnson's picture

This will end like Katrina, on a massive scale.

Tue, 02/15/2011 - 20:47 | 965421 smlbizman
smlbizman's picture

i felt the pain stab me in the chest, when his 60 mins interview than is compared to were we are now ...i'm fucking speachless...i seen its face......and it is going to rip this obesse dependent country to shreds....

Tue, 02/15/2011 - 20:49 | 965423 co2010
co2010's picture

Christian Louboutin Leopard Print Slingback Sandal Dllian Flower Pumps Silver-grayChristian Louboutin High heels are famously one of the ways which women suffer for fashion, although luxury christian louboutin  are often assumed to be more comfortable. Louboutin discussed comfort, but it seems that isnt his main concern.It is important because a woman doesnt look good if shes not comfortable. But I wouldnt take it as a compliment if someone looked at one of my shoes and said, that looks like a comfortable shoes. Its not like shes going to suffer for it. Throughout the interview he stressed that he never wanted to be part of the fashion world. He commented, I never was interested in being part of the fashion world – I just wanted to design shoes. Christian Louboutin Libelle Sandals are adored by celebrites like Madonna, Carla Bruni and Lady Gaga, but he revealed that the woman hed really like as a customer is The Queen of England.Footwear genius Christian Louboutin gave an interview to The Guardian this weekend where he spoke candidly about the comfort of heels, who hed like to dress and those Barbie rumours. Get a pair of Christian Louboutin Leather Tall Boots Brown, of course comes at a price. However, if you buy them via the Internet, you can find a pair of Christian Louboutin Light Green Reticular discount at a fraction of the price you would pay for them originally. http://www.louboutinshoes4lady.com/

Tue, 02/15/2011 - 22:30 | 965661 cosmictrainwreck
cosmictrainwreck's picture

suck it, bitch....get the fuck outa here

Tue, 02/15/2011 - 20:52 | 965440 Bay of Pigs
Bay of Pigs's picture

FWIW, I talked to guy who worked at the Fed in DC for 17 years this past weekend. He is retired so I asked him, "so what are you invested in"?

He said "oil, agricultural products, and GOLD". He also said, "we need a new currency based on a basket of commodities". However, he thought that was years away from happening.

He also said bonds were dead.

 

 

Tue, 02/15/2011 - 21:00 | 965471 Dapper Dan
Dapper Dan's picture

I just bought 2 shares of google....... $1248.00 pretty good fucking deal no?

Tue, 02/15/2011 - 22:09 | 965607 cosmictrainwreck
cosmictrainwreck's picture

should double in no time, Dan..........where's Harry?

Tue, 02/15/2011 - 21:14 | 965499 rookie
rookie's picture

I always thought the NWO and SDR talk sounded far-fetched but all of the consolidations of the stock exchanges sure gets you thinking. . .

Tue, 02/15/2011 - 21:25 | 965508 Tsunami Effect
Tsunami Effect's picture

Davos,

Really excellent work. Couple of things though. Bernanke's thesis has always been based on modifying the FDR playbook for modern times.  Print money, implement price controls, fix bond yields and devalue the dollar.  Why is it not happening the way Bernanke thought it would play out?  Easy, its the kazillions in derivatives, oddly not around in the 1930s!  Ah, there's always something left out in an academic thesis that blows the framework to pieces once its put into action in the real world (think LTCM).

I'd really like to hear your views on a 6th option for solving this deficit/devaluation/debt crisis....SELLING ASSETS

The Federal Government owns:

The largest landholdings in the US

The largest mineral rights

The largest oil reserves

The largest air rights

The spectrum for wireless communications

The most water rights, and on and on in the US

And countless similar assets around the world.

My thought has been that China and our creditors will eventually demand that we back our bonds with something more than "the full faith and credit of the US Government."  That day may come when our debt is downgraded.

Please let us know your thoughts if you may based on the premise that the US Govt could sell, for example, the entire oil and gas rights in Alaska to Russia or China for what, $1 Trillion?

Wed, 02/16/2011 - 00:59 | 965896 lunaticfringe
lunaticfringe's picture

I'm all for selling California in a 50-50 split. Half to us, half to Mexico.

Wed, 02/16/2011 - 01:28 | 965933 trav7777
trav7777's picture

If they try that en masse it will really be time to start shooting.

Selling our nation out from under our feet for debts they racked up for shit we didn't want...illegitimate debt.  Default.

Chicago has already sold a bunch of stuff to make a year's budget-parking meters, etc.  Fraudulent and a looting operation.

Argentina and most of S. America shows where this goes...banks and other monied interests bribe politicians to sell them State assets.  Fuck that.

Wed, 02/16/2011 - 01:41 | 965943 DeltaDawn
DeltaDawn's picture

I propose the Federal government exchanges the SS liabilities of its citizens for the federal land they unconstitutionally sit on. I will cash in my ssiou for some fed land. Maybe the Ron-Rand Superheroes will propose this.

Tue, 02/15/2011 - 21:23 | 965512 blindman
blindman's picture

http://www.youtube.com/watch?v=LOsw2To4GRY&feature=related

Manfred Max-Neef - Facing the Rhinoceros

Tue, 02/15/2011 - 21:48 | 965557 blindman
blindman's picture

http://www.democracynow.org/2010/9/22/chilean_economist_manfred_max_neef_us

MANFRED MAX-NEEF: The principles, you know, of an economics which should be are based in five postulates and one fundamental value principle.

One, the economy is to serve the people and not the people to serve the economy.

Two, development is about people and not about objects.

Three, growth is not the same as development, and development does not necessarily require growth.

Four, no economy is possible in the absence of ecosystem services.

Five, the economy is a subsystem of a larger finite system, the biosphere, hence permanent growth is impossible.

And the fundamental value to sustain a new economy should be that no economic interest, under no circumstance, can be above the reverence of life.

AMY GOODMAN: Explain that further.
....

Tue, 02/15/2011 - 22:02 | 965589 holdbuysell
holdbuysell's picture

If we go for door number 5, what's a reasonable value for gold, then?

Tue, 02/15/2011 - 22:17 | 965628 Rorschach
Rorschach's picture

Great read. I am buying more food and ammo right away. I want to have a years worth at minimum saved up. There will be lots of pain in our future. The next 20 years is going to look a lot different from the last 20.

Tue, 02/15/2011 - 23:01 | 965714 CPL
CPL's picture

Should have started three years ago.

Tue, 02/15/2011 - 22:20 | 965634 Lazane
Lazane's picture

in order to herald in the new world order, they need to destroy the entire economic system of the world with total financial chaos, its all by design

Tue, 02/15/2011 - 23:01 | 965715 Zedge Hero
Zedge Hero's picture

Some big giveaways to lying are in the body

1) Looking away from someone and avoiding eye contact in a variety of ways- By the end of last video on Unemployment I had no idea where the questioner was in proximity to Bernard.  He had looked to his left, in front, and to the right by the end?  

2) Unnecessary movement when confronted with an issue.  -Watch his head move in all sorts of directions in both videos, then watch someone who is not lying in any other video to see the hudge difference.

3)Normally cornered liars will fidget with their hands or hair  -Between the fourth and fifth second on 60 mins video it will show his thumb being flicked while crossed with the other hand.  We only get a few seconds of his whole body or hands at all to catch anything but we did.

Those are the body signs.  The voice cracking and mispronouncing inflation as flation at the :45 second mark in the 60 mins. video is another dead give away- was he thinking hyper or stag and tried to pronounce inflation and got freuded with flation.  Here's the kicker, the affixe flation actually means -[The second part of inflation, ultimately from Latin flare, to blow.] To blow, how ironic and fitting.  I'm just an average joe and found those, imagine what an expert could do. 

Tue, 02/15/2011 - 23:46 | 965809 william the bastard
william the bastard's picture

You waited 3 years and 5 weeks for you screen name! Congratulations!! You have won!!

 

Tue, 02/15/2011 - 23:10 | 965736 Everybodys All ...
Everybodys All American's picture

My take on Paul Ryan is that he is gauging how to take on the Bernanke. I don't think he felt it was the right time or place yet to shut him down. I may be wrong but it seemed he is being a little too timid for a strategic reason. Besides Ron Paul is in the wings and more willing to do the dirty work. Ryan also has higher political aspirations and I think he felt laying his political career on the line against Bernanke at this point in time did not make sense. Personally I wish he would have just called him what he is and that is a dollar destroying dunce who's perfect score on the SAT and Princeton accolades add up to zero common sense.

Wed, 02/16/2011 - 04:41 | 965750 cranky-old-geezer
cranky-old-geezer's picture

When federal govt spending is a rapidly growing portion of GDP, economic civil war is not far off. Non-federal-government "have-nots" vs federal government "haves".

It's not about America anymore. It's about the federal government now. Channeling private wealth to the federal government (via endless treasury debt monetization & resulting rampant inflation) keeping federal govt & cronies partying on while the rest of America slowly goes broke.

Eventually federal govt & cronies will be the only middle class left. Everyone else will be slowly reduced to poverty.

That's when the shooting starts. DC & Congress won't be the targets. Well-off federal govt employees, retirees, cronies, and contractors all over America will be the targets of looted enraged citizens all around them ...armed citizens ...with 300 million guns and billions of rounds of ammo accumulated for such a time.

(Think you're going to live high on the hog with that fat federal check and benefits looted from people all around you who can barely keep food on the table and a roof over their head?  Think again.)

Then looted enraged nations will join in, with far bigger scores to settle and far bigger weapons, ganging up and taking the arrogant imperialist world bully down once and for all. That's when America will cease to exist ...along with its suck-up allies ...like Israel for example.

I'm ready for it. I've lived an honest life. I've treated people right. Let the first ICBM hit my house.  Vaporized. No suffering.

Tue, 02/15/2011 - 23:17 | 965753 Zon
Zon's picture

Man paul ryan is so great, voting for the bailout and patriot acts and what not. Such a model congressman

Tue, 02/15/2011 - 23:31 | 965782 mcguire
mcguire's picture

i prefer bernanke's solution to option 5.  i prefer lying all the way down than saying "we are keeping your gold" to the china, and seeing what happens..

 

but this is all academic anyway.  the fact is, ww3 is the "intended" consequence of the collapse of the dollar, not the "unintended" consequence.

Tue, 02/15/2011 - 23:33 | 965788 mcguire
mcguire's picture

however, i agree, we no longer live in a world where a 'volker shock' is possible... now, we just get the dirty little "bernanke shocker", with unclipped fingernails..

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