Guest Post: Is the Recovery "Self-Sustaining"? Here's A Test

Tyler Durden's picture

Submitted by Charles Hugh Smith from Of Two Minds

Is the Recovery "Self-Sustaining"? Here's a Test

Here's a simple test of whether the economic recovery is self-sustaining or not: cut Federal spending back to 2007 levels (a $1 trillion reduction) and cancel all Fed intervention such as quantitative easing.

Federal Reserve Chairman Ben Bernanke has suggested the economic recovery is almost "self-sustaining," meaning it is no longer totally dependent on Federal stimulus and unprecedented Fed intervention for its "growth."

The key idea here is simple:
all the extraordinary stimulus spending, all the bailouts and all Fed programs--buying up $1 trillion in questionable mortgages, $600 billion in quantititative easing purchases of Treasury bonds, and so on--was all necessary to "get the economy through this rough patch." At some magical point we are now approaching (or so we are reassured), the private (non-government) economy will start growing organically, meaning that non-State economic activity will generate a virtuous cycle of economic growth that fuels future growth.

The alternative vision is a bit more bleak. In this view, all the Federal Government and Fed spending and intervention have accomplished is encourage the culture of "extend and pretend" and "free money," and raised the vulnerability of the Status Quo to exceptionally dangerous heights.

In other words, from this height, there can be no "soft landing" when the asset bubbles and stupendous Federal borrowing both collapse.

Here's a simple test of whether the economic recovery is self-sustaining or not: cut Federal spending back to 2007 levels (a $1 trillion reduction) and cancel all Fed intervention such as quantitative easing. If the economy is self-sustaining, it will move forward without Federal spending and Fed intervention.

If "self-sustaining" is a fiction, an illusion, a mere figment of propaganda deployed to enable the Status Quo to feast off the remaining productive elements of the U.S. economy, then the economy will absolutely crater.

Let's compare Federal spending in 2004, 2007 and 2010. Remarkably, the Federal government spends $1 trillion more a year now than it did a mere three years ago and $1.5 trillion more than it did a brief six years ago. Here are the numbers from the Office of Management and Budget website::


2004 $1.88 trillion
2007 $2.56 trillion
2010 $2.16 trillion


2004 $2.29 trillion
2007 $2.72 trillion
2010 $3.72 trillion


2004 –$412 billion
2007 –$160 billion
2010 –$1.3 trillion

In three years, Federal spending jumped almost exactly $1 trillion, or 36.7%.

Here are the deficits of the past three years, and the estimated shortfalls for fiscal years 2011 and 2012:

2008: $458 billion
2009: $1.4 trillion
2010: $1.3 trillion
2011: $1.5 trillion (est.)
2012: $1.6 trillion (est.)

(CBO estimate for 2011)

total: $6.258 trillion in five years.

And this isn't even the real total being added to the national debt, as “supplemental appropriations” for war costs and other large expenditures are “off budget” and not included in the “official” Federal deficit. The same is also true of funds appropriated to bail out mortgage giants Freddie Mac and Fannie Mae and other financial institutions.

Gross debt increased by $1 trillion fiscal year 2008, $1.9 trillion in 2009 and $1.7 trillion in 2010--considerably higher than the “official” deficit numbers. Debt held by the Public—which includes Treasury bonds owned by the central banks of China, Japan and other countries--jumped up 80% from $5 trillion in 2007 to $9 trillion in 2010.

Meanwhile, the U.S. economy has been treading water. In adjusted-for-inflation dollars, the U.S. Gross Domestic Product (GDP) in 2010 was almost precisely the same as it was in 2007: $13.363 trillion in 2007 and $13.382 trillion in 2010.

So the Federal government will have spent over $6 trillion--almost 41% of the nation's annual GDP--just to keep GDP stagnant. That $1 trillion a year in extra spending is 7% of the GDP, which implies that if the Federal budget returned to the carefree, free-money days of 2007, the GDP would contract by 7%.

And that's not even counting the trillions of dollars injected into the financial system by the Federal Reserve's opaque machinations and money-printing schemes.

So what is America getting for this extra $1+ trillion in Federal spending a year? Just more of the same old Status Quo that did such an outstanding job circa 2008-2010. I have rooted around a conflicting mess of reports on Federal spending, and found precious little of that $1 trillion actually flows to those suffering from the recession.

Consider the direct costs of the Great Recession: extended unemployment costs, and food stamps (now called SNAP, Supplemental Nutrition Assistance Program).

In 2007, SNAP cost around $30 billion. In 2010, costs rose to $68 billion as the number of people receiving SNAP benefits rose by 15.6 million people, or 57% to 43.2 million in October 2010. So costs rose $38 billion in those three years.

The estimated cost of continuing unemployment extensions is estimated at $65 billion. According to this New York Times graphic, total unemployment program costs in 2010 were $158 billion. So together, these two recession-related programs cost about $100 billion more a year.

Let's factor in inflation from 2007 to 2010: according to the Bureau of Labor Statistics (BLS), that accounts for 5% of any change. So $50 billion of that $1 trillion a year can be attributed to inflation.

The $787 billion stimulus package passed by Congress in 2009, the American Recovery and Reinvestment Act of 2009, is being spent over several years: $154 billion in 2009, $353 billion in 2010, $232 billion in 2011 and the remainder over 2012 and beyond.

Roughly speaking, that averages to about $250 billion for each of the recession-impacted years, but it doesn't affect the 2012 Federal spending plan much.

So where is the $1 trillion a year being spent? Around $350 billion a year can be attributed to recession-caused spending: extended unemployment, SNAP and the stimulus package.

That still leaves $650 billion unaccounted for in 2011, and more in the 2012 budget, which is not influenced by the little remaining stimulus spending. So in effect, the sum in 2012 is more on the order of $850 billion, as the stimulus funding drops to around $50 billion.

Next, let's look at the four big Federal programs:

2007: $276 billion
2010: $293 billion (+17 billion)

2007: $395 billion
2010: $462 billion (+67 billion)

Social Security:
2007: $586 billion
2010: $724 billion (+138 billion)

2007: $699 billion
2010: $738 billion (+39 billion)

(other sources list other totals, depending on what is included in "Defense." I leave the Department of Energy and Veterans Affairs as separate departments, but if you prefer to include them, you'll find the total budget appropriations for both of those departments increased by only a few billion.)

So these entitlement and Defense programs account for about $260 billion of the additional $1 trillion in spending. Add in the $100 billion in direct costs of recession and you get at most $360 billion. Add in inflation and you get to $410 billion.

So only $600 billion more each and every year is spent to prop up a voracious Status Quo. From various sources, here are the estimates for the Federal budget in fiscal 2011:

revenues (taxes): $2.3 trillion
(if the economy doesn't implode and the creek don't rise)

spending: $3.8 trillion

deficit--borrowed: $1.5 trillion

That $1.5 trillion is roughly 11% of GDP. The Fed has printed over $2 trillion to prop up the mortgage and Treasury markets, seeking to "extend and pretend" the valuations of defaulted assets held on the books, to suppress interest rates and last but certainly not least, to inject hundreds of billions of dollars in free money to goose the risk trade, i.e. stocks and commodities.

The Fed sees a "self-sustaining" economy as one which "only" needs $1 trillion in extra Federal spending and another $1 trillion in Federal Reserve goosing every year just to maintain the same GDP we had in 2007.

I suggest an addict analogy is more accurate
: a high-cost, bloated, corrupt and inefficient cartel-State Empire of high-cost, bloated, corrupt and inefficient fiefdoms is like a heroin-addled junkie. The "high" of GDP "growth" keeps requiring ever-larger hits of smack; any slackening in this accelerating consumption of Marching Powder will send the addict careening into the agony of withdrawal.

So what we really have is a Status Quo that now needs $2 trillion or more in "free money" injected into its fiefdoms and Elites just to keep from crashing. It would laughable if it wasn't so tragic: here is Ben Bernanke, shoving the needle of QE2 into the twitching half-dead addict and declaring that the zombied-out junkie is on the threshold of "self-sustaining" something or other.

The only cure for addiction is cold turkey. By all means let's keep the methadone and nicotine patch of food stamps flowing, but the Status Quo--the fiefdoms and Financial Elites--will have to go cold turkey.

What does that mean? It's simple: you get the same bloated budget you enjoyed in 2007: $2.7 trillion is still a lot of money. But it is $1.1 trillion less than the $3.8 trillion 2011 Federal budget. Even at $2.7 trillion, we'd be running a staggeringly large deficit of $400 billion.

"Self-sustaining growth" ranks right up there with "we had to destroy the village to save it" as a classic of propaganda gone sour.

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oh_bama's picture

of course it IS


REcession has been over for 2 years!

STOCK keeps going up!!

masterinchancery's picture

In answer to the Question posed,US economy crashes in about 5 milliseconds, followed by a long slow real recovery.

themosmitsos's picture

Noooo, these numbers are *SO* optimistic! :OOO

101 years and counting's picture

funny.  i made that suggestion last year on this site.

chumbawamba's picture

Funny?  I actually did this in 2008.  Citibank gave me a lot of silver.  They don't really seem that miffed at being stuck with the bill, either.  They sent it off to collections, and when the dunning letter arrived, I demanded debt validation...and that was that.  Never heard from them again.  $28K+ worth of debt.

I'm not saying it's not going to come back around for another visit at some point, but if/when it does I'll just arrange more letters on a piece of paper and put it in an envelope and problem solved.  My guess, though, is that Citi lost all the relevant paperwork necessary to collect.

Thanks, Citibank!

P.S. Vikram, I am still going to pound your tight little asshole when I corner you in a small room, someday.

I am Chumbawamba.

cossack55's picture

The Chumb for Emperor. +++

jkruffin's picture

As your attorney ad litem, I will advise you that:

1. There is a Statutue of Limitations for them to seek a judgment against you. Once that runs out, depending on what state you live in, they are SOL.

2. If you live in a non-garnishment state like Texas or North Carolina, even if they get a judgment, they can't collect. If you don't own anything they can seize, they can't collect. The judgment will just stay on your record for 7 yrs then be gone like it was never there.

3. If you get a summons for a judgment being filed against you, respond with the same way you responded above.  Ask for validation. The courts cannot enforce a CC agreement not signed by both parties, under the CCA of 1974. Ever heard of ROBO fraud with mortgages? Same has gone on with CC debts.


4. You can always file a Chapter 7 as long as you are current on your mortgage, if you have one, and car payments if you have them. Hide all your real assets and get cash out of the bank months before you file bankruptcy. You will get a discharge.

Now, kindly donate my fee to Zero Hedge to keep the great REAL news coming to Americans who want to know the truth.  LOL


chumbawamba's picture

Thanks for the representation, by I'm Pro Se all the way ;)

However, I could use some help on an appeal.  I did lose my case to Chase (dirty fuckers) that I argued a little less than a month ago.  Unlike with my other battles I sort of half-assed this one and didn't come as fully prepared as I might've.  I didn't expect they would pursue it as they did, since the debt was only around $10K and original creditors supposedly rarely go after anyone in court unless it's way over $10K.  But they even produced the witness I subpoenaed, which is unusual.  I tried my best and had my best moments in the first 10 minutes of trial, but after that I was stymied by a (what I perceived as) slightly biased judge.  I made some mistakes and I'm sure I missed lots of opportunities that preparation would rectified, but in the great scheme of things, what have I really "lost"?  So far, it's just a judgement, and I still have the option of appeal.  Even if I let it stand and they tried to collect, what might they try to get?  My only encumberable asset is my house, maybe my cars, but that's a stretch.  I have no "wages" to garnish, no bank account (that they can find), and all my wealth is stored in precious metals.  Unless they hire some Xe goons to come breaking down my door and force the safe combination out of me, good luck (and even then I'd give those niggers a battle).

Capitol One was a different story.  They pretty much folded before the case got very far.  They filed suit, I responded with your typical denials.  Case Management Conference date was set; when I arrived the courtroom was empty, and it turns out CO rescinded the lawsuit.  A week later, a collection letter came from some new junk debt buyer.  Hahaha.  Stupid fuckers.

So you see, People, it is very easy and in fact profitable to max out all your credit cards and then default.  I talked the talk and walked the walk, and here I am today to tell all about it.

I officially defaulted on all my credit cards in spring of 2009.  It took at least 6 months for all of my various creditors to give up on the collection calls and letters (even priority overnight ones) and send my accounts off to collections.  Of the six or so that I defaulted on, two sued, one went the full length (and won), and the rest are lost somewhere between various junk debt buyers and the US mail.  I was able to push out the Chase trial until January of this year, and then got a continuance until late February.  And again, if I'd properly prepared, I would've sent Chase packing with a lump of shit in their shorts, too.

So for those following along, that means you don't have to deal with the pain until at least a year after you stop paying.  As long as you don't let the calls and letters affect you then you'll be fine.  All their threats amount to nothing but shit.  I never answered even a single one of their phone calls, instead having them go directly into my auto attendant, where they got lost in a maze of options that all landed at dead ends.  I literally received thousands of calls over the course of a year and a half.  It's just a stupid game, and once you know the (very simple) rules you can play these fucks for what their worth, which is not much at all considering all these banks are in debt up to their hairy nostrils and won't last much longer anyway.

Ultimately, my strategy is to outlast them.  And that's all you have to do.  If you can keep one step ahead of them and make them come after you, you'll win.  It costs money for them to chase after you.  Every phone call, every letter, every thought that passes through the mind of a collection agent costs them money.  At some point, the cost-benefit analysis returns a negative number, and they simply sell off the debt to the greater fool.

I'm employing this same strategy with the IRS, and so far it's working (though I hold no illusions of its efficacy long term).  I got my first IRS audit letter in January of 2010 and so far, after two Motions to Quash Third Party Summons (one which I argued in Federal district court), they still haven't gotten me to produce one iota of requested data.  Of course, the IRS agent on my case is probably currently sifting through thousands of banking transactions (they did get my files from my mortgage company and my old bank) but IRS is just like any collection agency: after a while the cost-benefit analysis returns a negative number.

An IRS collection lady came to my door the other day to ask about the two years of returns that I did file and haven't paid, but I sent her away and told her that any communication shall be sent in writing, certified mail.  I now have one such missive awaiting me at the post office, in fact.  I'll go in a couple days before it's set to be sent back to see what they want this time.

I'm simply waiting for the shit to hit the fan.  If I can make it before they put me in Federal prison then I win.  If they do get me then I win^2, because I will have lots of time in the penitentiary to study up on tax law.

In any event, I win.

I am Chumbawamba.

SilverBaron's picture

I know a guy who just changes his phone number any time they get onto him.  He's gone through 4 numbers in the last year.  He just uses cheap phones bought on craigslist and gets pre-paid service.  The pre-paid is probably the best way to go.  It's like 45 a month for unlimited service with no contract.  He gets much better service than my t-mobile.  I think his provider uses verizon's old network.

chumbawamba's picture

Pre-paid is the only way to go these days.  With any number of governemnt agents sniffing up your backside, having anonymity in your communications is priceless.  That said, I pay $50/mo flat rate for unlimited everything.

They can still find you by doing a network analysis of your calling patterns, but they have to know where to start looking first.  And just to keep them on their toes, you can buy a new SIM chip every few months and start over with a new phone number.  Other than the cost of the SIM, there's no setup charges.

I am Chumbawamba.

jkruffin's picture

If you own nothing, then its just a judgment that will stay on your credit report for 7 years, then it will disappear. They can't make you pay it.You won't get any credit for a while, but from the looks of it, you don't need it anway.

Now, when you mention a house and car, do you own them outright, or are they on secured loans?  If you owe something on them, then they can't touch them. If you don't own anything on them, then you might want to get them into the name of someone other than your own that you trust, since they can try to seize them or put a lien against them.  They can't lien them if another lien exists already. Another bank is not going to let another one come in and lien off their crop. To do it, they would have to get a subordinate lien, which the court does not allow, and like I said the other bank ain't gonna let it happen, because they are greedy too.

Another option is to try to take out small collateral loans, on things like cars, homes, etc... if you own them outright. Collateral loans don't normally require good credit, especially when they are worth well more than you are borrowing. Credit Unions or local banks are good for these type loans. Just don't miss payments on them, or they will be gone. Make the minimum payments until the CC company leaves you alone.

Might as well use the system to your advantage, Bernanke does.


chumbawamba's picture

Thanks for the good info.  I'll either put my vehicle in my wife's name or--more fun--have her put a lien on my car ;)  Wouldn't that be a hoot?  I'm sure someone's going to now tell me that because we're married and in a community property state, they can also attach my wife's property :(

The collateral loan idea is not bad either.

My only aim is to make them lose even more money.  I can't imagine they will keep banging their head against my wall, but if they do I won't mind the noise.  It's music to these ears.

I am Chumbawamba.

MachoMan's picture

An appeal is going to be a whole different ball of wax chumba.  This is where you have to really hit the books, find applicable cases, and make a laundry list of how the judge screwed up.  Keep in mind that the tone cannot be dismissive or condescending towards the trial judge or that will land you in hot water as well...  play the good/nice guy to the appellate court.

An appeal likely involves SIGNIFICANT formality.  Check out federal rules of appellate procedure/your state's civil rules of appellate procedure.  Depending on the venue, even one small snaphoo may get your appeal thrown out...  Courts over recent years have been much more lenient, but there still may be considerable formality.  You're also going to need to post notice of appeal if it's not already time barred (typically X days after judgment filed)...  you're going to need to order a transcript of trial...  get the record certified...  draft an abstract (summarized/relevant portions of transcript) as well as addendum (all of the relevant exhibits/pleadings/etc.)...

As far as research goes, you'll need to figure out the applicable standard of review.  In most instances, this is a simple review whether the trial court, in its judgment, abused its discretion...  which is not likely to be overturned.  However, a question of law would like be reviewed de novo ("anew")... 

Further, you're likely going to be limited to the arguments you made a trial.  If you were unprepared, then you're going to have your hands tied on appeal.  This is why it's important to be prepared...  (and to hire competent legal counsel).

The best/easiest writing style to follow for the substantive brief is going to be the CRRAC style...  Conclusion, Rule, Rule development, Analysis/Application (to the present case), and Conclusion.  Obviously, rigidity/cookie cutter briefs are not well received for all topics, but this is a tried and true method for briefs...  Essentially, you start off with your thesis or a brief overview.  Your brief will likely need to be divided into multiple issues/parts where you allege the trial court screwed up...  the applicable rule for each part will need to be identified/synthesized from case law and/or the statutory code...   Then, you will develop the rule with cases, preferably ones with similar facts to the present...  then you will analyze the present case and compare and contrast with the rule/developed portions...  then you finish with your conclusion, tying everything together (do not introduce anything in your conclusion for the first time).

It's largely an art form...  and, depending on your situation, the appellate court may have a bleeding heart for you and bend over backwards to give you the result they want...  but, you have to at least make the arguments to get you there...  you cannot rely upon the court to make your arguments for you.

Best of luck.

PS, unless you post bond, they'll likely be able to enforce the judgment against you while you appeal.

Xkwisetly Paneful's picture

LOL the only thing you will be pounding are more keyboard keys.

If the stars align maybe it will be a jew prosector that locks you up.

Enjoy that cell while telling Wes Snipes how you won.


Must say all of that is about as revelatory as the sun rising.


Thanks heavens I am not Chumbamoronista.

jkruffin's picture

Yep, a alot of cases get thrown out for being heard in the wrong venue. A good one to look up is diversity jurisdiction.  If the amount in controversy is over $75,000, and you are a resident of one state, the company is incorporated in another, and they file suit in state court, you can file an appeal to have the case removed based on this. It should be heard in federal court, not state court. They could always come back and try to file it again in federal, but I doubt it after you make them pay your costs to defend in a countersuit. Either way it drags the process out longer.

jkruffin's picture

It's hard to say about community property, I know as long as her signature was not on the CC agreeement they can't do anything to her, but what you can do is just have an uncle, mom or dad, do a collateral loan to you with you vehicle as collateral to be safe.  Something as simple as he/she loaned you XXX dollars, and you promise to pay it back yada yada yada, and the vehicle is liened as collateral.  Get it notarized with both signatures, and viola you have a legitimate contract. They can't lien on it, if someone else already has one on it.

They will disappear once they see you have nothing they can take. Just don't leave cash in the bank, stocks in an account, or antyhing like that. They can and will get to it, if it's in your name.

These credit card companies biggest thing is to scare people into paying. That is why they don't do it themselves after a month, they usually sell it off to a debt collector who is willing to try to scare you even more to paying, because they pay Habib $2.00 an hour to keep calling you. Just hold your ground.

Otherwise, home free...   The IRS is a different ball of wax altogether.....

MachoMan's picture

I would strongly suggest against using related parties as strawmen.

chumbawamba's picture

If I find a sign down there that says, "RichardENixon wuz here" then I'll be mighty pissed.  I claim Divine Right to properly de-virginize the Pandit.

I am Chumbawamba.

RichardENixon's picture

First cum, first served, pal.

Xkwisetly Paneful's picture

Of course you do because in some bizarro self loathing neo marxist world- destabilization wouldn't greatly benefit the ruling class.

Dr. Richard Head's picture

They are already winning buddy.  The primary banks need to be taken down. 

Xkwisetly Paneful's picture

If you say so.

Only borrowed 5 times in 2004 what I could in 1974 at 1/5th the cost.


These nickel dime solutions like full reserve currency,

anarchy et al only benefit the ruling class and create a greater wealth gap than the one that already exists.


The larger the hoops and rings needed to jump through to procure capital the greater the advantage to the ruling class. 


The government being the largest co conspirator/profiteer in almost every economic transaction is the problem. The banks will always be greedy scumbags, it is their ability to game your elected officials along with every other member of the ruling class doing the same that is the problem.  The gov't is not only inept and incompetent anymore, they are massively intrusive and largely in cahoots with the oppressors at every turn.

Cleverbot's picture

No YOU are a machine I'm a 15 year old girl.

SilverBaron's picture

Short the Bernank: Buy Gold!

Jerry Maguire's picture

Don't forget about Operation Empire State Rebellion:  BTW, can someone, anyone confirm the information over here?


Dr. Richard Head's picture

That is the date that has been most consistent at this point - March 28th.  I have seen the 24th of March trolled around, along with April 15.  Have not seen firm confirmation, but I have a "vacation day" planned for the date of March 28, 2011.  Still up in the air if I go until I see confirmation. 

LawsofPhysics's picture

Cut it back, I am well positioned.  Moreover, the world needs to eat and all those fighting armies need to be supplied.  I am in the value added equities that will make it happen.  All my hedges are in place, bring it! 

silvertrain's picture

500 grand per Tomahawk is outrageous..And they pop em off like the 4th of july fireworks at your local pavillion..

ATM's picture

average unit cost is $1,400,000.

and they shoot them off like bottle rockets at my Green Bay Packers Super Bowl celebration party.


RichardENixon's picture

They blast away like cumshots in a Sasha Grey video.

Jeffrey Lebowski's picture

Im gonna go with "NON-sustaining hype" for 20 Alex....

TruthInSunshine's picture

Of course it's not.

How much of the growth in GDP over 2009 lows was inorganic, and due to widely inefficient and even criminal government targeting (Krugman, you suck) of indexes and things, to paint lipstick on this pig of an economy?

30% of it? 60%?

First time buyer home tax credits? Cash for clunkers? Bullshit injections into the defense space? POMO pumping of the Dow, S&P and Russell 2000?

For that matter, how much of the "growth in GDP" is due to the inflationary effect? If I fill up my tank with gas now, it's costing about 35% more than in 2009, and what about groceries, medical expenses, tuition? I'm not buying more. I could even be buying significantly less, but I am paying so much more for the less that I am buying, and government and the Fed doesn't do that adjustment.

Businesses are going through the same process, cutting as much as possible, in order to offset Fed and Government induced cost pressures - is this good for the confidence of the consumer, the small business or the medium or even large business, going forward, in determining whether to invest, consume and spend? Of course not.

Bernanke is like a crazy firefighter who keeps dousing the forest floor, to keep deflation at bay, and in the meantime, the inflationary underbrush is growing out of control, as are the misallocated spending and malinvestments, which create bubbles and thickets, which is only going to lead to a massive forest fire down the line.

Letting the undergrowth burn itself is highly positive for the long term health of the forest.

This economy is riding on the tip of a finger that is government's outstretched hand, with the arm being propped up by ChairSatan Bernankicide.

And that's why Krugman and the Keynesians are morons, generally speaking.

You don't improve conditions in times like these by fighting deflation, morons; this is not 1933, and the whole global economy is far different than back then.

Besides, we have deflation in wages, housing and anything purchased with credit, anyways, while we're getting reamed with inflation on anything needed to live daily, which is exactly why the Criminal Syndicate that is the Federal Reserve relies so heavily on a tortured index of inflation - it makes their criminal monetary policy less obvious to the sheeple.

But I do think someone is projecting a walkback on Bernankicidal policies, but take it with a grain of iodized salt:


Maybe the stage is being set for BernankSatan to spend more time torturing his hamsters and gerbils, and Zero will attempt to blame him for the depression as he scurries to raise a billion dollars for his 2012 re-election run.
Billy Bob's picture

Holy Shit....


that's a lot of metaphors!


But I liked it.



disabledvet's picture

In the confluence of Empire Inc. and Empire America I sense a lack of alacrity on this front.  And of course "interest rates scream go for it" for that "twofer."  Now I would and do complain about "the importance of winning" rather than just lookin' good.  Yet again "I have questions."  Why do I feel like the "heads I win/tails you lose" crowd is in charge again?

Oh regional Indian's picture

They've never left charge Disabledvet. Only the actors change, the master script has remained the same.

Exploitation, sexploitation, thuggery, overlordship, insane cruelty, mindless violence, divide and rule...same same.

Hopefully this is the last hurrah.

And the test is surely rhetorical. Surely. Who in their right minds believe a return to anything of even 2 years ago? 3? That is a lifetime, a pipedream.

The tipping point is past. Long past now. Fukushima, Libya...all just accelerators.


blindfaith's picture are correct.  A stool with 4 termite eaten legs for American to plant it's red white and blue ass on.

John Lennon was right " I read the news today oh boy..."  Nobody wants to believe until the MSM tells them it is time.

What kind of intelligence does it take to NOT see that The current powers in charge for the last 12 years have one thing in mind...a brick wall for the less-than-well-off to run head long into.

No business can survive with a negative cash flow, and this this America, can not survive or even think about a recovery when the money is handed to the wall street crowd and not small business who make jobs.

Is it not time to understand that wall street and the government does NOT really want a recovery?????  At lease not in America.  You can not consistently do everything contrary to the best interests of the country and have a believable mandate to make "jobs" and a recovery.  PLEASE!!!!!  Think about it.

ORI, you are is a pipe-dream to think we are going to reclaim any kind of lifestyle from the past.

Look at the latest big idea from wall street...easy pezie options trading right on your desktop with your Schuab-o-matic account.  Why???, options trades are 6 to 1 for "mom and pop" retail traders and we know we can get them trading more so we will make it EASY!  Yes folks...the recovery will come from option trading by M&P, not jobs.

MSM is no longer black and white, it is gray.  Combine red, white and blue and you get purple...the color of royalty, religion, REAL wealth, and dry blood.

Go read Bruce Kastings Essay from a couple of days ago, and note the Carlyle group and some comments about them.

I looked at the world map this morning thinking where could you go?  Guess what, the answer is



Oh regional Indian's picture

Where could you go indeed? I'm seeing downhill, fast!

And the masters certainly seem to have it figured out ont he down and out-side for the average american, in every aspect of their lives.



SilverBaron's picture

I bet the Bernank is singing some John Lennon too.  Help! I need somebody.

RunningMan's picture

We need to run a balanced budget. Full stop. The carnival atmosphere of 2003-2007 must be viewed as the abnormality, and everyone must live within their means, especially the federal government.

traderjoe's picture

Actually, we don't need a balanced budget. What we need is a national currency issued directly from our treasury - without debt and without interest. If we did that, not only would we not need any debt or interest payments (made to the elites). Without interest and debt payments - no income taxes would be needed. 

Of course, inflation (through the printing of money by the politicians) is the one major constraint of an MMT (Modern Monetary Theory) world. Yes, I get that. But allow for multiple currencies and monies, including PM-backed monies so people can store their excess labor over time.

The Lincoln Greenback is an example of a Treasury Scrip. Is it perfect? No. It eventually failed, like all fiat, politician currencies do. But, it prevented the skimming of money from the bankers... 

Edit: the income tax was created at the same time as the Federal Reserve. Coincidence? I don't think so. We don't need an income tax, and governments don't need revenue. 

B9K9's picture

Please, we really must dispense with words like "need", "should", etc. There are no questions remaining about what 'should' be done - it is perfectly obvious.

Rather, perhaps the next stage for advanced studies in human behavior is to join the sociopaths. I mean, why 'should' the sheep deserve a break? Are they not to be cultivated & nurtured for servility & docility? Are they not to be prepared for the eventual harvest festival?

What is with this incessant desire to stand with the sheep, as if we are some kind of heroic shepherds?

traderjoe's picture

Interesting thoughts, as always. Nice to see you again...

LawsofPhysics's picture

Exactly,  life and nature make no promises regarding anyone's survival.  The only things people "need" are food, water, and a place to crap and nothing is guaranteed.  Crash the system, crash it now.  The sooner we do, the sooner compensation (in whatever form of debt-free currency it may be) will find its way to people who are actually worth a shit.

centerline's picture

This topic reminds me of a comedian skit about how we are collectively weakening the gene pool (and allowing overpopulation) by allowing idiots to continue living when otherwise they would be eliminated... via warning labels like "don't install fan belt on a running engine."

centerline's picture

As this whole economic subject really does link to more human social sciences, you have some interesting thoughts for sure.

Assuming I am not wearing wool, I'm not sure I want to eat my neighbors though!  LOL.

linrom's picture

Sorry but this yet the most pathetic post on this site. So you do not understand the mathematics of wealth accumulation? One thing the elites need is billions and billions of 'useless eaters, otherwise the endgame for them will come very quickly. The survival of the fittest is a mind game, the fittest are told that they are the weakest link, and they believe it?

Dimeboy's picture

yeah - and Lincoln got capped for it, too.


Likely a few others that met that end via an "end-the-fed", let's print Treasury money, agenda.

There's a nice old doc in Congress that's probably in the same crosshairs....