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.

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

This is entirely evident from the compilation of video clips.

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.

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%.

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.

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 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.

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
    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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
jus_lite_reading's picture

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

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?



I think I need to buy a gun's picture

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

Rusty Shorts's picture

We are doomed bitchez.


Deal with it.

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

Bob Sponge's picture

Where are you getting this new currency info from?

chumbawamba's picture

He's probably getting it from Captain Obvious.

I am Chumbawamba.

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:


Rusty Shorts's picture

hahaha - you forgot this one bitch.




 - post the lyrics to that bitchez

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.

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 will fix itself when we collpase.

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.


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?

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

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.

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:

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

d00daa's picture

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

Pity him.

slewie the pi-rat's picture


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.

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:

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.






RafterManFMJ's picture

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

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




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!

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.

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......

Calculated_Risk's picture

You mean that bullshit pump the dinar conference call?

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.

Rogerwilco's picture

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

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.

topcallingtroll's picture

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

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.


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.

Bringin It's picture

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

Sathington Willougby's picture

Where's your genius plan?

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

bingaling's picture

Personally I think time would make a damn good currency .

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.

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 .

TBT or not TBT's picture

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

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.