• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

Paul Farrell's 7 Reasons Why America Needs A "Good Depression" Now...Or Face A Great Depression Later

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Tue, 07/05/2011 - 13:31 | 1426994 Doyle Hargraves
Doyle Hargraves's picture

Read Murray Rothbard Bitchez!

Tue, 07/05/2011 - 14:06 | 1427153 CH1
CH1's picture

And the harder the crash the better. I want no banksters on the rebuild!

Tue, 07/05/2011 - 14:28 | 1427259 Ahmeexnal
Ahmeexnal's picture

Time to give the bankster wanksters a good old south african necklacing.

Long tire manufacturers and oil!

Tue, 07/05/2011 - 18:34 | 1427976 Frankie Carbone
Frankie Carbone's picture

The harder the cataclysmic collapse the more "fog and chaos". Which of course means that we all take a road trip to Wall Street for a good ole' fashioned lynchin'.

Anyone got a rope and an old chair strong enough to kick out from a bankster's feet? LOL

Tue, 07/05/2011 - 21:21 | 1428320 CH1
CH1's picture

Violence may sound tough on a chat board, but it ain't so cool in real life.

Tue, 07/05/2011 - 13:30 | 1427003 Seasmoke
Seasmoke's picture

think you are 3 years too late with this....its too late to avoid a DEPRESSION !.....otherwise you can just write this again in another 3 years , as they keep kicking the can down the road

Tue, 07/05/2011 - 16:24 | 1427609 Herbert_guthrie
Herbert_guthrie's picture

I'm with you Seasmoke.
Too little too late.

Unfortunately, I belong in the "numbers don't lie" camp.

Hyperinflationary Great Depression.
Biggest fall in history.

Damn, sounds scary when I word it like that!

Tue, 07/05/2011 - 20:14 | 1428187 Hacked Economy
Hacked Economy's picture

 I tend to agree.  There will be a hyperinflationary depression.  When?  Dunno.  How fast and hard?  Dunno.  But the road leads straight to that cliff and no other.

Wed, 07/06/2011 - 03:32 | 1428853 oldman
oldman's picture

If this is not already a depression with 400,000 new filings weekly

Can you even imagine a 'real depression' will be like?

I can not even imagine it.

every thing about this article stinks---must've sold a lot of ham or chicken or hotdogs with this gibberish

tyler has a great sense of humor

Only place in town, baby

Tue, 07/05/2011 - 13:32 | 1427012 Vic Vinegar
Vic Vinegar's picture

Grandpa Farrell needs to realize no one is trying to solve problems.  Things need to get real nasty before this one world currency can get into place.

Tue, 07/05/2011 - 14:44 | 1427308 Thomas
Thomas's picture

It has been my premise that a Kondratiev-like third leg down is coming this way. The rot has not been purged. How one defends against the deflationary vs inflationary apocalypse is unknowable and unnerving.

Tue, 07/05/2011 - 13:34 | 1427026 Doeko
Doeko's picture

BTFD is back Bitchez!

Tue, 07/05/2011 - 14:03 | 1427143 Cash_is_Trash
Cash_is_Trash's picture

The bail-out boom is causing massive malinvestments, as is properly pointed out by the Austrian School.

Case in point, Tiffany & Co.'s share price:

http://www.google.com/finance?q=NYSE:TIF

Good one Keynes, your shit theory doesn't provide any full-employment, just messes with markets and adequately needed market corrections.

Tue, 07/05/2011 - 14:28 | 1427255 That Peak Oil Guy
That Peak Oil Guy's picture

The economic signals that are sent at times of stress are there for a reason!  If we try to manipulate them to keep everything rosy then we get unintended consequences like malinvestment.  Crazy!

TPOG

Tue, 07/05/2011 - 14:45 | 1427314 Cursive
Cursive's picture

@Cash_is_Trash

Duly noted. We are awash in moral hazard, like a great tsunami of it. It is wrecking all of our institutions and laying waste to our society. Picking up the pieces will be an epic task and the beginning of a new era.

Tue, 07/05/2011 - 13:36 | 1427028 Cognitive Dissonance
Cognitive Dissonance's picture

Paul,

I appreciate the article's thrust and the info, but without busting balls.......I thought we were already in a good depression with an even deeper one just around the corner.

I guess it depends upon who you ask. Stay away from the unemployed, those on food stamps, those raiding their savings, IRAs and 401(k)s etc just to pay the bills and I guess your right.

Tue, 07/05/2011 - 13:36 | 1427036 fuu
fuu's picture

Since about 2000 or so.

Tue, 07/05/2011 - 13:42 | 1427064 Dr. Engali
Dr. Engali's picture

I totally agree with you CD. I know people on both sides of the spectrum. While they are good people, those with money turn a blind eye to what is going on around them. But when I drive to my office I see more and more faces digging out of the dumpsters looking for anything of value.

Tue, 07/05/2011 - 13:43 | 1427072 Vic Vinegar
Vic Vinegar's picture

At this stage of the game it is time to bust balls!

Tue, 07/05/2011 - 14:01 | 1427137 Deepskyy
Deepskyy's picture

CD,

I think what Paul is terming a "good depression" here is a structured collapse.  Like a condemned building being imploded by a proper team of trained demolition experts.  You bring the whole derelict mass down on itself, clean up the rubble and rebuild something useful in its place.  I think a planned default, a return to our own form of Constitutional, congress issued currency and not the Federal Reserve note, and a major shift politically would be a "good depression."  Yea, unemployment would shoot to over 20% most likely, and it would hurt like hell for a while, but then once we clear away all the crap, we can rebuild using sound money principles and effective regulation to limit corruption and hubris.

If we don't, like many of us have said in the hallowed halls of ZH and other websites, the status quo will continue to work... until it doesn't.  A disorderly collapse would be violent, bloody, and could lead to either a complete totalitarian state to attempt to regain control of our urban areas that would burn in the even the government checks stop coming.

Tue, 07/05/2011 - 14:09 | 1427171 CH1
CH1's picture

If they can claim anything resembling a "controlled collapse" the banksters will never go away. They must be seen as utterly discredited; the root cause of unavoidable pain.

Tue, 07/05/2011 - 14:15 | 1427189 Cognitive Dissonance
Cognitive Dissonance's picture

Like a condemned building being imploded by a proper team of trained demolition experts.

You mean like this?

http://www.youtube.com/watch?v=LD06SAf0p9A

Or this?

http://www.youtube.com/watch?v=Nvx904dAw0o

Looks like they have already started.

Tue, 07/05/2011 - 19:17 | 1428058 iNull
iNull's picture

One has a right to be incredulous even if this were just your typical downtown office skyscraper. But Bldg 7 was an EOC (Emergency Operations Center). I worked on an EOC back in the 90s. Overengineering is an understatement. Overinspection is an understatement. There was a light mist that settled on some of the rebar overnight and as a result it developed a light rust (you could scrape it off with your fingernail). We had to sandblast the entire lot down to metal before installing it. These EOCs are engineered with 100% safety margins and are designed to survive anything short of a direct nuclear blast. I can tell you based on what (little) I know about the engineering and construction of commercial buildings. No fucking way did two little fires in Bldg 7 bring it down.

N.O. F.U.C.K.I.N.G. W.A.Y.

Tue, 07/05/2011 - 14:06 | 1427156 VyseLegendaire
VyseLegendaire's picture

No, we 're currently in the 'Joyful Depression' phase. 

Tue, 07/05/2011 - 13:35 | 1427029 fuu
fuu's picture

11 years too late author. Put down the hopium pipe and get with the program.

Tue, 07/05/2011 - 13:36 | 1427037 HelluvaEngineer
HelluvaEngineer's picture

Exactly.  After the housing bubble and the past 2 years of bailout nation and accounting fraud, when this sucker goes it will leave a smoking crater.

Tue, 07/05/2011 - 13:43 | 1427068 fuu
fuu's picture

Also 6. Good Depression will deflate America’s warring soul is total bullshit.

Tue, 07/05/2011 - 13:54 | 1427109 Cognitive Dissonance
Cognitive Dissonance's picture

I didn't want to say anything since I'd already busted Paul's balls but............a cornered and set upon ruling hierarchy always wants war, the ultimate diversion.

Even if it requires a false flag attack to get one cooking. Especially if it requires a false flag attack to get one cooking.

http://en.wikipedia.org/wiki/False_flag

Tue, 07/05/2011 - 14:00 | 1427133 fuu
fuu's picture

I think we should always use the Operation Northwoods stuff as an example: http://en.wikipedia.org/wiki/Operation_Northwoods

Tue, 07/05/2011 - 22:40 | 1428516 tarsubil
tarsubil's picture

Silent explosives? You should use something else as an example.

Tue, 07/05/2011 - 13:36 | 1427038 gaoptimize
gaoptimize's picture

I think any reponsible leadership that would follow the policy guidance here is on hiatus until after the 2012 election.  By then it will be too late.

Tue, 07/05/2011 - 13:41 | 1427054 The Limerick King
The Limerick King's picture

Should we choose to go through a depression?

Or print to avoid a recession?

I don't mean to be rude

But the truth is we're screwed

We'd be better off going to confession.

Tue, 07/05/2011 - 15:57 | 1427541 Henry Hub
Henry Hub's picture

...And then get out Smith & Wesson

Tue, 07/05/2011 - 16:22 | 1427601 A Lunatic
A Lunatic's picture

Shooting hollow points I'm guessin'

Tue, 07/05/2011 - 13:43 | 1427069 PulauHantu29
PulauHantu29's picture

From what I hear from everyone I talk to they are super mad about the record high Fat Bonuses on Greedy Wall Street while the rest of the country sinks into the abyss.

Very unfair.

Tue, 07/05/2011 - 14:18 | 1427212 CH1
CH1's picture

Yup, another deflection. Anything except allowing the legitimacy of the state to come into question.

"The state is holy and righteous. Anyone implying otherwise is an ungodly freak, a conspiracy theorist who poisons babies for fun."

Tue, 07/05/2011 - 13:47 | 1427084 kevinearick
kevinearick's picture

Panic

The economic motor is dead, and has been for quite some time. Now, the pony motor is dead too (illegal immigration for next generation mindless make-workers to feed the ponzi). The operators are not going to get another motor so long as the Family Law filter, which disengaged the economic gears for so long that they atrophied, remains installed.

All they know is exploitation, moving the cattle from meadow to meadow, relying upon a planet that is becoming increasingly inhospitable. All they can do is drop the relative price of oil, which has already closed all the exits, and monetize the debt directly between them, to pump the market feedback signal. How is solar, wind, and FracGas working for everyone?

The housing channel is already stuffed to overflowing, and, like the digestive system, the subsequent lack of circulation is spreading poison across the rest of the body. In this environment, the non-profits are now “learning” that they are losing the government funding necessary to control their properties, leaving them scrambling for real rent at 25% of their mortgages, due to the mirrored government overhead on both sides of the equation, subject to deleveraging, and their ignorant response is to seek real renters to carry both their mortgages and their pets.

Their bosses are planning to drop the whole spoiled population off at the family farm, and the family farmers are already shutting down operations in anticipation of the move. How long before they get rid of the homeowners tax deductions, credits, and subsidies, to clear the market, when Trump owns the front yard and the driveway, paying interest on interest on interest, at 0% effective? An intelligent community does not subsidize stupid, to hide a massive surplus of McMansions within dead governments.

“They had all benefited from the same quality education, and they shared a set of standards by which they lived, and they expected of one another adherence to these standards. Being one of the anointed elite meant belonging, meant freedom from self-doubt, meant always knowing what you thought and what you should think, meant comfort…Life can sometimes seem hopelessly complex, unpredictable, chaotic. Then a strange order makes itself known…This phase of the pattern, which benefitted him, was a wave that offered effortless surfing. Until it lost its benign character…In every complex system…just under the façade of order, which science has discovered and long thought it fully understood, lurked an eerie and disturbing chaos. But also, deep inside every chaos, an eerier kind of hidden order waited to be found.”

Behind the façade that poses for eyes to an empty soul, you see a skull cracking from the pressure in the brain. The manager becomes increasingly arbitrary, capricious, and malicious, because the box must be controlled amidst increasingly variable input and increasingly rigid output, as the bosses race for the exits. “Why” is an integral question; “because that is the way I was taught” is a derivative answer. Best to maintain your health, to keep a gap between yourself and those derivatives.

Peak government is the correct answer. What happens when the size of government contracts rapidly? All politics are local, aggregated into social behavior, with a feedback signal. What do you want to do with the energy in that slingshot, relative to the turbulence in the neutral line? If you owe the bank $X, you are in trouble; if you owe the bank $Y, the bank is in trouble. If the bank “owes” the me generation and its descendents $500 trillion NPV worth of entitlement promises, who is in trouble, and when does the buck break?

I eat breakfast with the farmers, ride a bike in the rain with boots hung over the bar, to a low wage job in an automated plant, and suddenly move away, after walking across town with my backpack. What do you do? What is each type of person in that small town thinking, if anything? Every empire maximizes productivity and then debt, with alternating feedback signals, in a recursive cycle, until it doesn’t, when all the exits are shut, and all the lies pop off the stack.

Calculate the square footage required per capita and compare it to inventory. Run a distribution for each sector and compare the result against currency carry trades. What is the economic effect of hoarding, and why does it happen?

At the cliff abutment, you are strategically pulling the looking glass back, shaving off sections of the cliff, and leaving the momentum of gravity to do the work for you. Allow Caesar to add rigid price controls. The larger the collapse, the more ingrained the lesson, the lower the overhead cost to the next system, and the bigger the battery, but you have to hit the next orbit. Critters will be critters; big is a least-common-denominator enterprise. Adjust Democracy accordingly.

So, you have a piston of pistons in the neutral line, with adjustable I/O surfaces, and a pathway for productive ignition of backlash…

Tue, 07/05/2011 - 15:48 | 1427517 MisterMousePotato
MisterMousePotato's picture

Please, what is the quote in the middle? Funny, but it sounds like it might have been written by Thomas Wolfe.

Tue, 07/05/2011 - 19:06 | 1428035 kevinearick
kevinearick's picture

Koontz (sp?)

Thu, 07/07/2011 - 03:57 | 1431867 MisterMousePotato
MisterMousePotato's picture

Dean Koontz?!? No kidding. Prolific author of entertaining but trashy novels? (Or is it trashy but entertaining?) Should I be embarrassed that I compared him to America's finest author of all time? Or is one or the other over- or under-rated?

Thu, 07/07/2011 - 14:55 | 1433515 kevinearick
kevinearick's picture

randomly reading trash

Tue, 07/05/2011 - 13:48 | 1427090 Silver Dreamer
Silver Dreamer's picture

54% of tax revenue is spent on the military?  Wow, that's news to me.  When I read figures like that, I cannot help but immediately dismiss everything else written.

Tue, 07/05/2011 - 14:15 | 1427202 Taint Boil
Taint Boil's picture

a link to cost of war on the bottom - Some other good links here too:

http://grow-guides.blogspot.com/

Tue, 07/05/2011 - 13:48 | 1427092 skipjack
skipjack's picture

Oh jeez, another clueless asshole who has no idea what capitalism is.  What we have isn't capitalism; it's fascism.  If you cringe at the word fascism, then substitute corporatism.  Whatever.

 

If you insist on mischaracterizing, something, then you can't possibly fix it.

 

We NEED capitalism; we don't need fascism, corporatism, socialism or communism.

 

Got it ?

Tue, 07/05/2011 - 14:00 | 1427135 oldmanagain
oldmanagain's picture

Don't get your definition of capitalism. Please define.

Tue, 07/05/2011 - 14:01 | 1427140 American Sucker
American Sucker's picture

Capitalism always turns into fascism.  As does socialism.

Tue, 07/05/2011 - 14:15 | 1427203 Tejano
Tejano's picture

Well, he seems to like the term "mutant capitalism", whatever the hell that is. Says it can be fixed through prayer, "So pray for a good depression.." Thinks "outrage" will be a good thing. 

This Granpa must be off his meds.

Tue, 07/05/2011 - 14:23 | 1427229 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, regulatory capture, not related at all to capitalism.  /sarc

The reality is that "capitalism" is ingrained in our very nature, and that is both the problem and the solution.  We continuously collapse on ourselves.  Immolation/phoenix cycle.  This time is never different.  There is no "fix".  The guy who said "Those who ignore history are doomed to repeat it" doesn't realize that being cognizant of history doesn't prevent the repitition, it just makes you that much more painfully aware but substantially less surprised when it does repeat.  The main takeaway is that at least you can minimize the damage in the "writing on the wall phase" to give you a better shot at surviving the "holy fuck the world is ending" phase.

Tue, 07/05/2011 - 23:12 | 1428584 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Oh jeez, another clueless asshole who has no idea what capitalism is.

Oh jeez, another clueless asshole who has no idea what capitalism is.

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