Mike Krieger Asks The Logical Question: "How Long Until Obama Starts Writing Checks"?

Tyler Durden's picture

From Mike Krieger of KAM LP

How Long Until Obama Starts Writing Checks?

Society in every state is a blessing, but government even in its best state is but a necessary evil in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities is heightened by reflecting that we furnish the means by which we suffer! Government, like dress, is the badge of lost innocence; the palaces of kings are built on the ruins of the bowers of paradise. For were the impulses of conscience clear, uniform, and irresistibly obeyed, man would need no other lawgiver; but that not being the case, he finds it necessary to surrender up a part of his property to furnish means for the protection of the rest; and this he is induced to do by the same prudence which in every other case advises him out of two evils to choose the least. Wherefore, security being the true design and end of government, it unanswerably follows that whatever form thereof appears most likely to ensure it to us, with the least expense and greatest benefit, is preferable to all others.

- Thomas Paine, Common Sense (1776)

Back to the Future:  The “Stimulus” Act of Early 2008

Let’s all take a trip back to February 13th, 2008.  Our war mongering 43rd President, George W. Bush, freaked out by the impact of the subprime crisis on the U.S. economy announced the now almost forgotten “Stimulus Act of 2008.”  A big part of this typical Keynesian stimulus (remember Keynesianism is not a partisan thing it is a economic religion handed down by the Fed to both the Republican and Democratic establishment) was simply writing checks to people.  At the time, I criticized it harshly and said it would lead to massive inflation.  Guess what?  Oil was trading at about $93/b and five months later it topped out at $147/b for a monster gain of 58%.  Then all hell broke loose.

George W. Bush should actually be a hero for most of the fake liberals and fake progressives out there that just spout meaningless drivel about how things should be without ever bothering to look into and understand how the global financial system actually works.  That would be too much work.  It’s much easier to just be ignorant and support “your guy” as they county goes down in flames.  The reason the fake liberals and progressives should love W so much is that at least he just wrote checks to average people.  Obama is the biggest puppet of the banking oligarchs in American history.  I mean this guy’s entire administration so far has revolved around printing money and handing it out, but rather than hand it out to the people he gave it all to the banks that cratered your children’s futures in the first place.  Of course, in order to give away trillions to the financials oligarchs that should be in prisons as opposed to the petty dealers caught with dime bags that fill the prison you need to give the money away in secret.  In comes the Federal Reserve.  To make matters worse, after the Fed and Obama bailed out the banksters the next way to hand out money was defined in Jackson Hole Wyoming in August of last year where Banana Ben Bernanke laid out his plan for QE2.  The unstated yet stated purpose of this policy was to juice the stock market.  He has succeeded wildly in this manipulation until now.  Again, it isn’t the 44 million (a new record every time the data is updated) Americans on food stamps that benefit from this policy, it is the financial oligarchs that game the system and push the stock market up until the point that retail investors finally buy the stocks from them and then they are permitted to crash.  Don’t play their crooked game, don’t buy stocks buy physical gold and silver and take this nation back from the sociopathic financial control freaks running it now.

How Long Until Obama Starts Writing Checks?

The big news this week from Saudi Arabia is that upon his return to the Kingdom after a three month medical absence, King Abdullah has decided to implement a massive $36 billion payoff to his people to stem off any revolt.   Amongst other things:  “The measures include a 15 per cent salary rise for public employees to offset inflation, reprieves for imprisoned debtors, and financial aid for students and the unemployed” according to the Financial Times.  Interestingly, this is exactly what I said would happen in my recent interview with Max Keiser from last week.  Please take the time to watch as it offers more detailed analysis on how I think this will all play out.  It is in three parts and I have gotten great feedback so far.  Link below.

http://www.zerohedge.com/article/mike-kriegers-latest-interview-max-keiser

So the payoffs have begun in earnest and the question is, when will banker puppet Obama will engage in similar tactics.  My guess is very soon.  More and more people are aware of the sham that is his presidency and as the people realize they have been sold out to make sure the financial oligarchs got their record Christmas bonuses and can fund his 2012 run he will need to give a pay raise to the 15% of Americans on food stamps.  Interestingly, my friend Dave DeGraw at Ampedstatus recently put out an excellent report where he shows how poverty and inequality in the United States of Banana Republic are in many ways comparable or worse than in Egypt.  The whole report is here.  http://ampedstatus.org/analysis-of-the-global-insurrection-against-neo-liberal-economic-domination-and-the-coming-american-rebellion-we-are-egypt-revolution-roundup-3/

In it he also shows how JP Morgan is making some nice money on the food stamp business.  Yep, it seems JPM is the largest processor of food stamp benefits in the United States.  Here is a video interview with Bloomberg TV’s Margaret Brennan about JPM’s $5.47 billion in net revenue in this business.  In the interview, this guy admits “the food stamp business is very important to JP Morgan.”  Poverty is good business for these folks.  You starting to get the picture of how this works?  Thanks for the change Obama you gigantic fraud.  Video is here you have to watch this... http://www.youtube.com/watch?v=5zf8v7RYk6Y&feature=player_embedded#at=13

Niall Ferguson Tells Americans to Accept Their Debt Slavery

I used to kind of like this guy.  No longer.  When I read this article yesterday it made my blood boil.  The article is titled “America Should Sell National Assets To Balance The Books.”  As a historian he knows that when people are stuffed with impossible to repay debt they are reduced to slaves (look up “indentured servant” for a historical reference).  This trick has been going on since the beginning of recorded history.  My argument is that Federal Reserve Notes (we inappropriately call them dollars) and the debt itself are based in fraud and are therefore illegitimate.  Most Americans were against taking on all this debt and it was shoved down our throats to bail out the financial terrorists that did this to us in the first place.  If ANYTHING what we should do is shut down the TBTF (too big to fail) banks and then sell the assets of the bank executives like Jaime Dimon and Lloyd “doing god’s work” Blankfein.  Ferguson is a lot of things but stupid isn’t one of them so this is really a total disgrace.  We should just default on all the debt accumulated since the crisis at the very least.  America is still long a lot of the things the world needs like food and water and we can use that to dig ourselves out from the rumble after default.  Our standards of living are going to plunge NO MATTER what we do.  This is written in the cards based on past behavior, but it is better to be poor and free than be poor and also a slave to foreign interests and a banking oligarchy.  Shame on you Ferguson.  Article is here:  http://www.businessinsider.com/america-should-sell-national-assests-to-balance-the-books-2011-2

The Sleeping Giant is Awake

A couple of days ago a contact of mine sent me an email telling me he was considering getting another passport as a hedge.  This was my response.

I too initiated the process that you are in now several years back.  I started looking into another passport and actually could have done it rather easily but I stopped the process at the last minute.  The reason I stopped is because I wanted to feel like my back was against the wall to keep me fighting hard.  I also think that I have no reason to flee and the people that need to think about fleeing are the parasitic crooks doing this to the country.  America is made up of the descendants of the most aggressive, ballsy, entrepreneurial people on planet earth.  We are the descendants of those that didn’t stay put where they were but left everything and came here because they wouldn’t stand for tyranny.  Their blood runs in our veins.  We may have been conditioned to be sheep but we are waking up and I think critical mass has been reached.  I agree with you on the average joe being lazy and asleep, but the average joe is always a spectator to the real changes that are instituted by a small percentage of the citizenry.  Anyway, we shall see but I will go down swinging.  I owe it to my grandparents (who fled Eastern Europe) and my mother (who fled Chile in the 1970’s).

Still swinging from Co,
Mike

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Turd Ferguson's picture

More fantastic stuff, Mike.

I like you even though you live in Colorado.

Upswaller's picture

Turd, do you have to be first on everything?

tmosley's picture

Do you have to complain about everything?

Upswaller's picture

Hmmm, it was a tongue-in-cheek comment to those who understand him.

But that DID hurt my feelings.

<sarc/off>  better?

Harmonious_Dissonance's picture

The Max Keiser interview was beyond Awesome!! Very good analysis, and so it seems it's playing out. Well where do I go get my 'Bama Bucks?? (I will use them to increase my silver position)

the mad hatter's picture

you've been turgled.

 

As for the article, obama already has. You can get unemployment checks for 2 whole years.

-Michelle-'s picture

That's what I was going to say.  Isn't the real question "how long until Obama's checks start to bounce?"

francis_the_wonder_hamster's picture

Yes, my immediate reaction to the title of this post was that I thought that's what Obama has been doing since Day 1.  Stimulus Bill, Cash for Clunkers, Homebuyers credit, GM/Chrysler bailout....etc...

Funny thing, though......I haven't personally received a dime....although I did drive over a bridge that had a sign indicating that the Economic Recovery Act had somehow improved said driving experience.

XitSam's picture

And wasn't there a check for SS recipients because they didn't get a cost of living increase?

Moe Howard's picture

They said so but I wonder. Did the old folks get it? Lying seems to be Number One with the Bankster Government.

Milestones's picture

Turgled?? Damn linguistics majors.    Milestones

snakeboat's picture

and what, pray tell, is wrong with CO?  Might we be jealous?

 

that captcha made me use my hp...

Turd Ferguson's picture

The Turd was born in Nebraska. Consequently, The Turd does not usually take kindly to Coloradoans, though he does make exceptions.

velobabe's picture

our football players, oh i mean gladiators, are all pusses and hussies.

snakeboat's picture

Ahhh, probably wouldn't like the outcome if his boys had to go up against any of those Rugby 7s guys, eh

StychoKiller's picture

I lived in CO for 37 years, MN is like a freezer compared to CO!

chet's picture

I think that quadrupling the unemployment period and giving everyone $400 was their attempt to write checks to people.  But I agree they might feel the pressure to do more at this point.

Bush and Obama each had an "original sin".  Bush with the bank bailout in 2008, and Obama with the decision in early 2009 to back it up with a Keynesian "spend to the moon" approach.  For a long long time, we'll be paying dearly for the decisions made in those six months.

Temporalist's picture

Poor Obama.  Poor Coloradans:

Residents wait up to 2 months for food assistance

"DENVER - Nearly 7,000 people in the City of Denver are waiting on approval for help from human services. Many of them are waiting for food assistance, formerly known as food stamps.

The Denver Department of Human Services is experiencing a backlog that is causing some people to wait up to 60 days for their cases to be processed"

http://www.9news.com/money/183113/344/Residents-wait-up-to-2-months-for-...|newswell|text|FRONTPAGE|t

asdasmos's picture

"I owe it to my grandparents (who fled Eastern Europe) and my mother (who fled Chile in the 1970’s)."

 

Maybe he owes it to them to do as they did and move somewhere prosperous.

margaris's picture

yep, indirectly you are saying we need another planet to colonize....

 

Because this planet is one mess! For average joe there is no real prosperity or freedom anywhere!

asdasmos's picture

Not quite. I am indirectly saying...... GTFO of places where shit will hit the fan.

 

Suggested places to go:

Canada in NA

Costa Rica and the like in C&S A

Forget Africa in my opinion

Europe There are pockets of countires

Asia - Philippines/Australia/

Dirtt's picture

Chile is on my short list also. 

Dollar Damocles's picture

That makes sense to me too.  The more history I read, the more I think that you can't stop the tidal wave of change that is brought about by mass ideologies.  This isn't going to be pretty, and I don't see much to give me hope that things will be replaced by anything better when this titanic sinks.  History doesn't show too many successfull revolutions, and the American people have no good ideas to replace the plethora of bad ones that have created the current situation.

asdasmos's picture

Yes, definitely. People can only fight the inevitable for so long until nature/reality kicks in. I like to think we are in a new age of human development & thought, however I am always reminded at how things can turn ugly very quickly.

johnQpublic's picture

ditto

 

i wonder how long til a lone gunman hangs out down at wall street and pops a few bankers or traders at the end of the business day

prolly get a medal from the jury assigned to try him

Saxxon's picture

Not long until he has to throw a bone to the unwashed masses in an attempt to hold power. 

The gas prices here (No. CA) have not spiked yet, and thus folks are looking their usual stunned, depressed selves (since 2005 here) but are not starting tire fires in the middle of Clayton Road (Concord).

Right soon even 87 Ethyl will surpass $3.99 and then the roiling will start.

I am not sure how he will work it in - can he force a Bill through to get relief checks cut before tax season?

Boxed Merlot's picture

...he has to throw a bone to the unwashed masses in an attempt to hold power...

 

A few things to bear in mind.  We are a republic, a nation constructed on the voluntary rule of law, not a domocracy-mob ruled populace.

 

Our law enforcement officers are by and large our neighbors, they are not outsiders, and though we many times find fault in their use of assigned vested authority, they remain for the most part, our sons, fathers, relatives and friends.

 

Even our highniest elected officials remain just that, elected.  Contrary to the notion many representatives from "safe" districts may beleive, these positions are still temporary and adherance to their authority remains a voluntary act by the constituencies they affect.

 

While I may have a dog in this fight in that there are some family deeded mineral rights in CA mother lode property with known reserves, it's through that knowledge I'm more firmly convinced in the relevance of intrinsically valuable coinage and government non interest bearing notes issued for use as legal tender.

 

The idea that our government would abdicate their authority to properly establish weights, measures and sound currency by placing it in the hands of the Jekyl Islanders and in one fell swoop establish a new class of "American", that being "taxpayer" is unforgivable.

 

The reset is simple, our road map is clear and the real question is whether our current batch of elected officials will even bother to read it, yet alone use it.

 

KickIce's picture

And that's why they have passed legislation that allows Interpol to participate in martial law.

John Wilmot's picture

I was under the impression the good king was taking a dirt nap...no? Didn't the Teleprompter murder him via telephone?

hpprinter000's picture

UK needs onegoodcut.org !

Matt's picture

At first glance, I thought the title was "How long till Obama starts kiting checks".

centerline's picture

LOL.  But, I would have to fix that title of course...

"How long can Obama keep kiting checks"

There.  Much better.

Bearster's picture

The US began "writing checks" under FDR, and has grown the programs consistently since then.  We have food stamps, welfare payments under various programs, housing assistance, electricity bill assistance, subsidized transportation in cities, etc etc etc.

Captain Kink's picture

http://fee.org/library/not-yours-to-give-2/

 

Crockett's "Not Yours to Give"  a must read for everyone here.  I take this from another ZHer, with gratitude, and encourage all to share it with as many as they can.

RockyRacoon's picture

Glad you liked it.  It's one of my favorite responses to those who would dispense tax dollars to anyone with a pulse.   It ain't their job to spend my money that they took without asking.

Miss Expectations's picture

I like the Davy Crockett tax story, too.  But, I don't much like his hat.

RockyRacoon's picture

Well, I have an issue with it too, but that was long ago in a different world.

I just hope those hats don't become de rigueur again.

StychoKiller's picture

"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ...somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. ...I say after eight years of this Administration we have just as much unemployment as when we started. ...And an enormous debt to boot."
   Henry Morgenthau ( U.S. Secretary of Treasury 1937)

Mad Max's picture

The US has been kiting checks for decades.  Obama has simply taken it to a higher level.

Confused's picture

Great read. Great quote. 

patience...'s picture

People sure get generous when they see a guillotine being rolled out.

Arch Duke Ferdinand's picture

 

""People sure get generous when they see a guillotine being rolled out.""

...If and when the day comes U.S. citizens get fed up with Washington, Wall Street and the Federal Reserve....you have the template for success. ""The Beast of Government exists on tax revenues.  ALL governments share this fundamental reality.  ALL governments fail when the economic capacity to tax is destroyed.   The Soviet Union fell via this mechanism, East Germany fell via this mechanism, and now Egypt has fallen via this mechanism. 
No blood and no lawlessness were required.""
 http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/02/only-way-to-win-revolutionstarve.html 

ronin12's picture

Do they really need to collect taxes when The Bernank can just print the money?

Moe Howard's picture

That is a tax of course. It needs no action on your part. Just hold FRNs. The more he prints, the more you are taxed. Quite simple, really.

naughtius maximus's picture

Very good question and the answer to it will determine if we become Zimbabwae or 1930's america without a government that has any credit!

wandstrasse's picture

i wish we had some fortress of reason like zh here in germany. but we have only 'everything fine', dark conspiracy theories, and some dull professors saying 'if only the world would do what we are telling'.

midtowng's picture

Obama can't write checks without Congress, and the Republicans won't let him.

TBT or not TBT's picture

They're whistling past the graveyard here.   100bil off of a budget that's 1.6trillion in deficit is jsut a bad joke.    We need to cut the federal payroll by a third at least.

Cindy_Dies_In_The_End's picture

Nope too late. As interest rates rise (and they will, sooner than later--see Buiter's article from last year), the USA's ability to pay down debt will immediately evaporate.

 

Won't make a difference, even a few points and any pay down is extinguished by the increase in debt servicing.

 

ah the glories of compound interest and simple math...