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Willem Buiter: The US Must Prepare For Savage Austerity

Tyler Durden's picture




 

In an interview with Tom Keene yesterday, Citi strategist Willem Buiter, alongside Howard Davies chairman of the London School of Economics, said that "savage austerity" is in the US' future. "The only question was really the timing and the
composition." Alas, for that to happen it would require an overhaul of the entire US kleptocratic oligarchy, and the entire premise of tenured politicians, who don't realize that in addition to boosting revenues, sometimes outlays have to be trimmed as well. Of course, as this is precisely the fatal flaw of Keynesianism, we can only commiserate with Buiter, who calls it exactly right. Too bad that even the possibility of actual austerity in the US would result with riots so severe it will make the ongoing economic freeze in France seem like the peak of Chinese economic growth.

In discussing the ability to postpone the inevitable domestic austerity, Buiter notes that "the U.S. will still be able to borrow for a while at
“risk-free rates” , even when there is risk, because its markets remain bolstered by the
dollar’s role as the world’s reserve currency. It won’t last forever, that buffer of protection. Market discipline is being eroded by the burden
of unsustainable deficits." Which of course explains why the market continus trading as if each day will be its last, and risk on, risk off is the only thing that matters, as only those with the fastest selling systems feel insulated in their hope they can dump positions during a bidless market.

And lastly, Buiter calls out the Treasury on its hypocrisy of condemning others of performing currency manipulation, when the Fed's QE2 threat is the biggest FX intervention move ever, and furthermore, at least others retain some dignity by doing their operations in the open. While the Fed, like a coward thief in the night (stealing from the middle class) can only operate by undermining the credibility of its currency by monetizations. The last part is ours.

 

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Thu, 10/21/2010 - 11:47 | 666885 Ivanovich
Ivanovich's picture

Good, bring "savage austerity" the fuck on.  I don't get shit from the government, I fend for myself, am fiscally responsible and work hard.  I'm tired of seeing my son's future in this kleptocratic state go through the floor.

 

 

Thu, 10/21/2010 - 12:09 | 666975 Conrad Murray
Conrad Murray's picture

Two wrongs make a right!  Everyone deserves a free house free food and free healthcare!  No justice no peace!  No blood for oil, no sweat for money!

Thu, 10/21/2010 - 12:11 | 666988 Alcoholic Nativ...
Alcoholic Native American's picture

Make sense man

Thu, 10/21/2010 - 13:27 | 667354 arby63
arby63's picture

You sound like a moron Alcoholic. You may be onto something re the banks but this country is living fat and happy off the future earnings of our youth. That's bullshit and you know it.

Thu, 10/21/2010 - 14:29 | 667655 Alcoholic Nativ...
Alcoholic Native American's picture

bla bla bla future generations.  Distraction technique, they are living off the backs of this generation, right now.  Yes force austerity to save future generations.......lol.  Yea, like the patriot act, it's just temporary until we balance our budget, I swear some of you clowns are clueless.

Thu, 10/21/2010 - 16:40 | 668088 LowProfile
LowProfile's picture

Those calling for savage austerity will instead have austerity forced on them by savages.

Thu, 10/21/2010 - 14:58 | 667783 tmosley
tmosley's picture

Sounds more like a satirical character to me.

If he's for realz, then he is definitely a moron, but I don't think he is.

Thu, 10/21/2010 - 13:51 | 667464 Alcoholic Nativ...
Alcoholic Native American's picture

lol, 27 flags, yep...

 

I still got it.

Thu, 10/21/2010 - 13:59 | 667506 Ivanovich
Ivanovich's picture

yambag says what?

Thu, 10/21/2010 - 15:42 | 667921 wowser22
wowser22's picture

May you be skewered from eye socket to asshole and then placed on a spit so that your flesh can be roasted by a searing gale of farts which issues forth from the haunches of Satan.  Then, I hope you are hollowed out and used as a prophalactic for thorn cocked demons that squirt battery acid from their engorged penises.  Other than that, have a nice day.

Thu, 10/21/2010 - 16:42 | 668094 LowProfile
LowProfile's picture

Not to be argumentative, but I suggest the prophylactic usage comes first, the roasting second.

Thu, 10/21/2010 - 18:31 | 668387 eatthebanksters
eatthebanksters's picture

Alcoholic, fuck you, fuck your kids and fuck your dog...an enabling society has helped to create this mess.  I'm all for helping those who can't help themselves, but for everyone else, get off the crack pipe, go to work.  Hard work pays!  I started with nothing, made a lot and have lost most of it because of the banksters, but I am not going to cry or whine and ask for a hand out.  A level playing field and opportunity are enough for me.  Its lazy fucktards like you who in one way make my life easier and in another way bring it all down.

Thu, 10/21/2010 - 12:13 | 666994 kato
kato's picture

Amen

Thu, 10/21/2010 - 12:13 | 666997 alien-IQ
alien-IQ's picture

why don't we start with some corporate and military austerity before we decide to reach into the already empty pockets of the bottom 90% of the country's population?

Thu, 10/21/2010 - 12:19 | 667031 Alcoholic Nativ...
Alcoholic Native American's picture

No doubt, The financial kleptoz are the ones pushing this Austerity shit.

 

The self flagellating TeaTards(TM) are corporate tools, an amazing example(still happening) of propaganda.

I don't post much on this site, because it's full of them.

 

 

Thu, 10/21/2010 - 21:00 | 668676 zaknick
zaknick's picture

I'm with you, man. hang in there, they will hang themselves in the end. No scam like this can ever be for ever.

 

Guillotines is what I'm thinking about manufacturing.

Thu, 10/21/2010 - 13:16 | 667282 bobzibub
bobzibub's picture

Just default already!

Thu, 10/21/2010 - 13:36 | 667397 goldsaver
goldsaver's picture

If I reach into someone's empty pocket, will I get anything but lint? And isn't the point of austerity to stop reaching into everyone's pockets and stop spending? How about cutting 50% of all Federal expenditures. Depts of Energy,HUD, HHS, Education, etc all shut down. Recall all troops from overseas. Raise SS retirement age to 75. Shut down the Fed and start issuing silver certificates. How is that for austerity?

Thu, 10/21/2010 - 13:57 | 667493 merehuman
merehuman's picture

agreed   , kill the machine, let our people live!

Thu, 10/21/2010 - 14:13 | 667579 Double.Eagle.Gold
Double.Eagle.Gold's picture
aus-ter-ity

[aw-ster-i-tee]

–noun, plural -ties.
  1. austere quality; severity of manner, life, etc.; sternness.
  2. Usually, austerities. ascetic practices: austerities of monastery life.
  3. strict economy.
  4. military - aim weapons, empty magazines
When Trust Matters
Thu, 10/21/2010 - 12:19 | 667030 MountainMan
MountainMan's picture

TD should revoke your membership asap.

Tyler, come on?

Thu, 10/21/2010 - 12:21 | 667042 Dr_Dazed
Dr_Dazed's picture

Gotta say "savage austerity" sounds like "protect the privileged" to me.  Austerity isn't going to hit the kleptocrats and bankstas for their ill gotten gain - it's just going to take a whack at the lower 97.5% of us who are going to have to further temper our aspirations and expectations for the future.

 

Some austerity.

Thu, 10/21/2010 - 12:24 | 667050 alien-IQ
alien-IQ's picture

"savage austerity" sounds like "protect the privileged"

BINGO!

Thu, 10/21/2010 - 12:29 | 667067 Alcoholic Nativ...
Alcoholic Native American's picture

Amen

Thu, 10/21/2010 - 16:12 | 667997 Non Passaran
Non Passaran's picture

No one said don't make the elite pay. I want to see them all (the oligarchs, the free shit crowd, etc.) get screwed.

Just because someone mentioned only one of the groups, it doesn't mean he's wrong. 

There are many freeloaders among "the lower 97.5%".  

Thu, 10/21/2010 - 12:52 | 667161 PuppetRepubl1c
PuppetRepubl1c's picture

@Ivanovich

 

I hate to be the one to tell you this, but "savage austerity" implies not only massive cuts to government spending (which is obviously necessary) but also massive tax INCREASES.  I can assure you it won't be pleasant for anyone. 

 

Prudent people who don't rely on the government will still get f*cked over.  I know the tea party likes to believe this won't happen but just look at history, the hard working individual always gets f*cked over.

 

 

Thu, 10/21/2010 - 13:58 | 667498 Ivanovich
Ivanovich's picture

Fine, if that's what it takes to righten the ship, so be it.  I'm sick and tired of paying for 99 weeks of unemployment, bailing out anyone and anything (bank, homeowner, etc) who wasn't fiscally responsible enough or lacked intelligence to realize they shouldn't have bought/invested in what they did, while I bought the right size house while making sure I could make the payments on it.

 

There is a difference between having a safety net in the economy for those who are less privledged and creating a NANNY state where over 40% of the people (as of this moment) get government assistance.

 

If that pisses off some of you folks, you'll pardon me if I don't lose sleep over it.

Thu, 10/21/2010 - 14:23 | 667631 ElvisDog
ElvisDog's picture

I think "savage austerity" is coming sooner or later whether those who want to keep the government transfer payment gravy train going want it or not. The only question is: do we kick the can down the road for a little while longer and make the savage austerity even savager.

Thu, 10/21/2010 - 13:17 | 667283 flacon
flacon's picture


Keynesianism Loves the Total State

http://mises.org/daily/3693

Thu, 10/21/2010 - 14:30 | 667662 SheepDog-One
SheepDog-One's picture

I agree totaly! BRING ON savage austerity to this stupid nation full of greedy spoiled lazy brats!

Thu, 10/21/2010 - 11:47 | 666888 TheGreatPonzi
TheGreatPonzi's picture

There will never be austerity in the US. The FED will impeach it.

Thu, 10/21/2010 - 12:04 | 666943 ZakuKommander
ZakuKommander's picture

Oh, yes there will be.  Only one iPad per family.  3D TVs limited to one per household.  Only 10 12-pacs of soda per person per week.  Rationing coupons for Happy Meals.  Just you wait and see.

Thu, 10/21/2010 - 12:11 | 666986 Troy Ounce
Troy Ounce's picture

 

+31.1035

Thu, 10/21/2010 - 14:17 | 667594 Crime of the Century
Crime of the Century's picture

I'm surprised you of all people failed to note that Buiter is the fool who equated Au with seashells. The Tylers are fickle, spanking one moment, lauding the next.

Thu, 10/21/2010 - 14:32 | 667670 SheepDog-One
SheepDog-One's picture

I agree with his equating of AU with seashells and beads, WTF is the difference! Just objects with 'implied rarity' big fukin deal, who NEEDS gold for anything? No one!

Thu, 10/21/2010 - 15:04 | 667808 tmosley
tmosley's picture

Gold is a ruler for value, because it is in constant supply, and most of it is in human hands, so there is little supply fluctuation.  When a thing is of constant supply, it's "price" in terms of goods is a direct measure of society's consumption preference.  As such, it does, in fact, have value.  By itself, it has no use, just like a ruler has no use by itself, but bring in multiple humans each of whom have different goods and desires, and it suddenly becomes a very nice transaction facilitator and store of value.

So yes, I need gold to conduct business.

Thu, 10/21/2010 - 19:34 | 668518 SheepDog-One
SheepDog-One's picture

Any measure of value depends on the situation youre in, if I ran into you out in the desert and I had a bottle of water and a Krugerand, which on would you find most valuable?

Thu, 10/21/2010 - 14:17 | 667598 Double.Eagle.Gold
Double.Eagle.Gold's picture

WTF - 1 iPad per family, that's cruel & unusual, come-on, we're not commies here...

Thu, 10/21/2010 - 11:49 | 666890 HarryWanger
HarryWanger's picture

Too bad that even the possibility of actual austerity in the US would result with riots so severe it will make the ongoing economic freeze in France seem like the peak of Chinese economic growth.

Only if that "austerity" takes away the NFL, Dancing with the Stars or Glee, will there be rioting. People will continue to bend over and take whatever is thrown at them as long as you keep them entertained. That's how power works. Keep throwing them reality tv shows for free over the air and there won't be anything close to a riot.

Thu, 10/21/2010 - 11:57 | 666925 TBT or not TBT
TBT or not TBT's picture

Any rioting would be limited to the usual suspect parts of our big cities.    This would be nothing like France, with major highways shut down by "snail" operations, ports and fuel depots shut down, and culturally native mainstream citizens marching and approving.   

No, any eighteen wheelers doing snail operations would get swatted down by the law here, same deal with blockades of fuel depots and refineries and such.  With high levels of public support.

Thu, 10/21/2010 - 12:08 | 666948 HelluvaEngineer
HelluvaEngineer's picture

+1 - the only rioting we have here is looting, usually only by people who have identified an excuse for looting (not an actual vested interest)

It will go something like this: my EBT card was not activated at 12AM on the 1st, therefore I will kill the convenience store owner and steal all his scratch-offs.

Thu, 10/21/2010 - 12:18 | 667020 TBT or not TBT
TBT or not TBT's picture

The one model in Europe that touches of actual riots is any incident of police enforcement that harms a perp of middle eastern or north african descent.    I think we see similar things here, for example with the Rodney King situation.    BTW, are you a P.E.? because lots of nerds worked hard to get their P.E. status and we have to respect that when choosing pseudonyms.

Thu, 10/21/2010 - 12:28 | 667065 HelluvaEngineer
HelluvaEngineer's picture

I'm a MechE but never got my PE.  I pretty quickly switched over to programming.

Tha handle comes from my alma mater http://en.wikipedia.org/wiki/Ramblin%27_Wreck_from_Georgia_Tech

Thu, 10/21/2010 - 12:26 | 667056 economessed
economessed's picture

It will go something like this: my EBT card was not activated at 12AM on the 1st, therefore I will kill the convenience store owner and steal all his scratch-offs.

We need a name for this -- something the media can latch onto -- something like "Detroiting for your Dinner..."

Suggestions?

Thu, 10/21/2010 - 12:56 | 667073 HelluvaEngineer
HelluvaEngineer's picture

.

Thu, 10/21/2010 - 14:25 | 667635 Double.Eagle.Gold
Double.Eagle.Gold's picture
rac-ism

[rey-siz-uhm]

–noun
1.
  1. a belief or doctrine that inherent differences among the various human races determine cultural or individual achievement, usually involving the idea that one's own race is superior and has the right to rule others.
  2. a policy, system of government, etc., based upon or fostering such a doctrine; discrimination.
  3. hatred or intolerance of another race or other races.

Use racist in a Sentence

Only black people are smart enough to understand when someone is f-ing with them and respond by protesting, ergo - white people are mostly (97.55%) dumb schmucks.

Thu, 10/21/2010 - 12:01 | 666934 Oh regional Indian
Oh regional Indian's picture

Too true Harry. They've got so many other levers in hand too.

 

1) Legalize prostitution (I think Craig's List has done yoeman service in sluttifying America).

2) Legalize Pot

3) Legalize sleaze/porn in a bigger way 

4) Pump up the Propaganda 

 

and on and on....

I see it's going to be the few that get away and stay free, truly.

Buns and Butter for the masses.

Guillotine for the patsies..

Guns and Shutter for the "odd" one's (yes, you!)

And Off/Under planet for the elites.

But for now, let us enjoy the circus...

ORI

http://aadivaahan.wordpress.com

 

 

Thu, 10/21/2010 - 12:13 | 666996 TBT or not TBT
TBT or not TBT's picture

"3) Legalize sleaze/porn in a bigger way "

When you talk about levers in hand, this isn't the first thought that... comes... to mind.

Thu, 10/21/2010 - 12:20 | 666998 Sausagemaker
Sausagemaker's picture

No additional commentary required:

 

 

Escapism & Distraction As a Social Control During the Roman Empire

 

Escapism and distraction are social controls that can be employed by a governing body to hide inadequacies or divert attention from themes that can cause malcontent among the populace. It is important to distinguish between the two; distraction refers to anything that can take the attention of the populace away from the inadequacies of the government where as escapism refers to specifically removing the minds of the individuals from the situation that they are in, in order to escape anything that brings discontent to their lives.

Distraction

Distraction was a tool that could be used by Emperors both to divert attention from current objectionable events. Impending risk of warfare increased anxiety within Roman society, the development of gladiatorial spectacle could both demonstrate the continuing competence of the governing body of Rome, even during a crisis (Futrell 2006). Not only could the gladiatorial spectacle distract the citizens from contemporary issues but it could also "erase public memories of political blunders" in the past (Shelton 1998, p333).

Distraction from warfare was an obvious connection, however distraction could also be used to keep "the populace amused and out of mischief" (Lewis and Reinhold, 1990, p142). Auguet (1994, p185) further added weight to this view by describinggladiatorial spectacle as "a first rate means of keeping people amused". Grant (1967, p104) also agreed with this concept exclaiming that Emperors expressed the wish that the "potentially unruly and dangerous city population" be "amused", also adding the idea that this would and keep them "quiet".

As stated earlier (see Literature Review) the first reported date of the gladiatorial spectacle was in 264 BCE and at the time of the First Punic War. The second recorded date of the gladiatorial spectacle was not until 216 BCE again coinciding with a year of war in which the battle of Cannae took place (Shadrake 2005). This leaves a gap of almost 50 years in which there is no record of any gladiatorial spectacle having taken place in the Roman Empire. It seems too much of a coincidence that these two sets of gladiatorial spectacle positioned almost 50 years apart, just happened to fall on times of conflict. A more likely explanation is that these gladiatorial spectacles were put on to distract the people from the turmoil of war. Another explanation is that there were gladiatorial spectacles that fell within this 50 year gap, but they were not particularly noteworthy, and greater publicity was generated for these two recorded games again for the purpose of distraction of the masses.

Escapism

Escapism could well be the biggest factor in social control that gladiatorial spectacles had over its audience. In contemporary society there are a number of escapisms that are available even to those who do not have a large disposable income. Some of the most popular escapisms in modern society such as television, the internet, film, and computer games were not accessible to the Romans. Granted they had food, literature and recreational games, but none of these can draw comparison with the hold that television and the internet has on society today. This is where the gladiatorial spectacles came into play; they provided the audience with a complete distraction from their mundane day to day lives. The comradery of sitting amongst their peers, the historical stories that some of the spectacles told, and the opportunity to wrap oneself up in the glory of Rome, provided the ideal escape from issues of war, disease, political unrest that may have otherwise had a more detrimental affect on the psychology of the population.

Kyle (2007, p301) stated that attendees of gladiatorial spectacles, utilised them to "escape their deplorable living conditions". Shelton (1998, p334) further elaborates declaring that political figures hoped that these diversions would "take people's minds off problems like unemployment and food shortages". According to Shelton (1998, p349) viewing the gladiatorial spectacles would allow "people who themselves felt powerless and brutalised" to find "some satisfaction in watching the infliction of pain on others".

 

http://ezinearticles.com/?Escapism-and-Distraction-As-a-Social-Control-During-the-Roman-Empire&id=1994197

 

Thu, 10/21/2010 - 13:19 | 667296 nedwardkelly
nedwardkelly's picture

People will continue to bend over and take whatever is thrown at them

It used to be bread and circuses, now it's iPads and American Idol. What's new? What's changed?

 

Thu, 10/21/2010 - 14:21 | 667621 Oh regional Indian
Oh regional Indian's picture

Simple enough ned, everythign has gone virtual.

Pleasure, pain and their related causal factors and effects have become virtual.

ORI

http://aadivaahan.wordpress.com

Thu, 10/21/2010 - 14:40 | 667674 Double.Eagle.Gold
Double.Eagle.Gold's picture

circuses, there's an app for that, and this

Thu, 10/21/2010 - 12:08 | 666891 TuesdayBen
TuesdayBen's picture

Perhaps the prospect of savage austerity and resulting savage social unrest is what The Creepy One has in mind here:  http://www.youtube.com/watch?v=gwaAVJITx1Y

What shape will this NCSF (National Civilian Security Force) take?  Will it pull from military?  Weaponry?  Fall under Homeland Security?  Relations with military, police, Guard? How will it be received by the citizenry?

Fri, 10/22/2010 - 10:34 | 669594 Treeplanter
Treeplanter's picture

The Creepy One loses his checkbook in Jan.  He will use executive orders to the max but he won't have the money to do much mischief.

Thu, 10/21/2010 - 11:49 | 666896 Oh regional Indian
Oh regional Indian's picture

Personally, I think we are all in for a little "savage" austerity, regardless of geography.

Maybe we can all use it too.

But this... "Alas, for that to happen it would require an overhaul of the entire US kleptocratic oligarchy, and the entire premise of tenured politicians,"

n Why? In India, auserity measure have no impact on the political class. They can always justify expense as being in national/state/local interest. 

Austerity is for the plebs.... how much of a squeeze McPopulation can take is the factor...

 

ORI

http://aadivaahan.wordpress.com

Thu, 10/21/2010 - 11:50 | 666897 ratava
ratava's picture

why do you think everyone is shorting them. they have not even started talking about how they want to start saving sometime in the future.

Thu, 10/21/2010 - 11:50 | 666899 toolgravy
toolgravy's picture

Where will you run?
Where will you hide?
Lullabies
To paralyze

Fat and soft, pink and weak
Foot and thigh, tongue and cheek
You know I'm told they swallow you whole
Skin and bone
Cutting boards and hanging hooks
Bloody knives, cooking books
Promising you won't feel a thing
At all

Thu, 10/21/2010 - 12:07 | 666960 Trundle
Trundle's picture

You left out the woodchipper.

I'm disappointed.

Thu, 10/21/2010 - 11:50 | 666900 Kina
Kina's picture

Buy gold buy silver, the future is bleak, and frees you.

Ignore the manipulation going on by the cartel and corrupt CFTC. In the end the USD will be scrap paper.

A job being done on gold as we speak. Which corrupt judge will refuse to find against them? Except no case will ever be bought.

Come on China hurry up and set up a competing market.

Thu, 10/21/2010 - 14:34 | 667675 SheepDog-One
SheepDog-One's picture

Forget gold and silver shiny objects, buy high quality firearms and lots of ammo to keep them well fed.

Thu, 10/21/2010 - 11:54 | 666910 Cognitive Dissonance
Cognitive Dissonance's picture

Too bad that even the possibility of actual austerity in the US would result with riots so severe it will make the ongoing economic freeze in France seem like the peak of Chinese economic growth.

Tyler, you give the conditioned mind of the average American way too much credit. There will be no substantial riots in the USA until the pain of remaining chained gets much worse than is currently experienced. Much worse.

People won't riot until they begin to believe they have nothing left to lose by rioting, let alone actively protesting. The concept of intentionally and deliberately pushing back against their abuser has been conditioned out (I would say beaten out) of the psyche over the past few generations.

Our ego will not allow us to recognize that the vast majority of us act similarly to the abused and beaten spouse who gazes out the open front door while wishing it were possible to be free. Just the threat of retribution from the perceived authority in the house is more than enough to keep the spouse from crossing the threshold. 

A conditioned mind is a terribly difficult thing to free.

Thu, 10/21/2010 - 11:55 | 666919 HarryWanger
HarryWanger's picture

Definitely on the same page with you here. Keep the masses distracted and entertained. Has worked so far and will for some time to come.

Thu, 10/21/2010 - 12:10 | 666984 Dagny Taggart
Dagny Taggart's picture

And then, the scariest people won't be the tattooed mook on the street, it will be the country clubbers. The poor people will just be poorer. Some have much further to fall than others.

Thu, 10/21/2010 - 14:35 | 667680 SheepDog-One
SheepDog-One's picture

Damn straight Dagney.

Thu, 10/21/2010 - 12:30 | 667072 Sausagemaker
Sausagemaker's picture

Agreed. See my reply to your post above.

Thu, 10/21/2010 - 11:56 | 666923 John McCloy
John McCloy's picture

II disagree. I believe America will riot the most fiercely. This is a nation that riots over "Winning" an NBA championship. 

Thu, 10/21/2010 - 12:07 | 666953 Cognitive Dissonance
Cognitive Dissonance's picture

Please note the bold faced "substantial riots" in my comment. In a nation of well over 300 million, even a few hundred thousand is considered an itch that is easily ignored. Besides, with the National Park service no longer counting those who actually do show up in DC to protest, who says you had more than 10,000?

Considering France, Greece, even Germany can regularly turn out 2 or 3 % of their population to protest "minor" items, what makes anyone think America will turn out 5 or 6 million, let alone the 10 or 20 million that would be the excuse needed before martial law is declared?

BTW the constitution was suspended nearly a decade ago. Yeah, I missed the news bulletin as well.

Thu, 10/21/2010 - 13:10 | 667251 ozziindaus
ozziindaus's picture

BTW the constitution was suspended nearly a decade ago

 

Too right.

http://www.youtube.com/watch?v=XewaP8BkVck&feature=player_embedded

Thu, 10/21/2010 - 12:14 | 667000 Oh regional Indian
Oh regional Indian's picture

John, I think what you refer to are nothing more than violent outbursts of pent up petulance conditioned into the American mind and a (probably planned) temporary dysfuntion in the police state extant in The Corporate Entity of the UNITED STATES.

France is a riot. Greece was a riot.

America will just fall asleep in front of their 120 inch plasma, mesmerized.

ORI

http://aadivaahan.wordpress.com

PS: Sold some gold yet? Think about it and move some over to Ag. Still a 2 week window. Or so.

Thu, 10/21/2010 - 12:01 | 666936 Stackmonkey
Stackmonkey's picture

I'm sure the social model the Elites would like to see is along the lines of THX1138 or Owell's 1984.

Though "Player Piano" is the one most likely :-), always did have a soft spot for vonnegut.

There's still the chance it all goes pear shaped and we end up in Mad Max territory.

 

 

Thu, 10/21/2010 - 12:10 | 666987 TBT or not TBT
TBT or not TBT's picture

Zombie apocalypse would be the more cathartic scenario, though probably no lab has come up with an engineered virus that would produce the Hollywood effect we are looking for.  Reality would be less entertaining.

Thu, 10/21/2010 - 12:05 | 666946 LeBalance
LeBalance's picture

Many folk being asked to wake up.  Of those being asked all feel the experience, but few will overtly leave the mass experience, most will fall into the meat grinder.

Even with eyes open it is very possible that all preparations are for naught.  I may fall into the meat grinder as well, but until that point I will try not to.

/Land of Struggle, Land of Denial/

First Stage of Depression in War: I can prepare better than everyone else and I will survive.

Second Stage: There are only a certain number of bullets and if I stay low I can make it through

Last Stage: We are all going to die.

I believe it is possible, by one's intention alone, to be of another mind than the person standing right next to you.  To have a different experience even though the events may seem exactly the same.  To that end I struggle.

Thu, 10/21/2010 - 12:09 | 666976 ZakuKommander
ZakuKommander's picture

Watch out for a new war, soon coming to a locale near yours.  Rally 'round the flag, singing America the Beautiful in candlelight, etc. after someone launches (or we finds satellite photos of trucks carrying sinister stuff that can be launched for) an "attack" on us.

Thu, 10/21/2010 - 12:18 | 667024 Cognitive Dissonance
Cognitive Dissonance's picture

Agreed.

False (flag) wars have been used since ancient times to distract and occupy the minds of an oppressed people. Read some Egyptian, Greek or Roman history if anyone doubts this to be true.

And yet the average American reacts as if slapped in the face when you try to broach this subject in polite or even private company. Just another example of the conditioned and corralled mind refusing to leave through the wide open front (barn) door.

Thu, 10/21/2010 - 12:31 | 667077 ZakuKommander
ZakuKommander's picture

Your friends and acquaintances are most likely upset because of your stubborn refusal to admit that America has raised false flag operations to an art form.

Thu, 10/21/2010 - 12:20 | 667036 hedgeless_horseman
hedgeless_horseman's picture

I heard the CIA found suitcases in China.  And we all know what that means.

Thu, 10/21/2010 - 12:16 | 667009 1100-TACTICAL-12
1100-TACTICAL-12's picture

AS long as people can buy beer with food stamps everything will be A-OK...

Thu, 10/21/2010 - 13:14 | 667266 solgundy
solgundy's picture

CD...no society ever rioted that had Home Theater

Thu, 10/21/2010 - 19:14 | 668479 Geoff-UK
Geoff-UK's picture

60" Plasma:  MUCH better way to be kept appeased than that bland Soylent Green.

Thu, 10/21/2010 - 14:01 | 667517 arby63
arby63's picture

CG: People are not as "conditioned" as they are realistic. We already live in a fascist state with emboldened jack-booted thugs sitting in their aggrandized cars on every street corner.

This "police state" we have created cannot wait for the riots to start--until their paychecks fail to appear in the debit account.

I for one disagree that Americans have all turned into weak-kneed idiots. That certainly may represent a good proportion but that is also the same proportion you see on television.

We would have riots in the street this very day if it weren't for the fact that the jack-booted thugs are positioned and ready. This isn't a free country in which a protest can really gather steam.

Wait until the fascists don't get their paychecks.

Thu, 10/21/2010 - 16:47 | 668093 Cognitive Dissonance
Cognitive Dissonance's picture

CG: People are not as "conditioned" as they are realistic.

You say "realistic: I say conditioned. Show me the actual functional difference.

Wait until the fascists don't get their paychecks.

Read your history. The jackboots are ALWAYS paid first. ALWAYS. If that means that the rest of the country is declared a free fire zone to acquire the "money", so be it. The decent into hell is rarely rapid, but instead a slow meltdown. This gives the population enough time to rationalize and justify its inaction and constant concessions to the abusers.

And equally important, it gives the jackboots time to acclimate to using ever greater brutality directed against those around them. This is a sad fact of thousands of years of world history and iPhones and Chevy Volts won't change this. It can change if we want it to, of this I am certain. But as long as people are "realistic" they will allow themselves to be abused.

See, one can believe what ever they wish to believe. But the ultimate conceit we Americans indulge in is that somehow we are different than all those who came before and all those who currently share this earth.

Well, we aren't different other than the degree in which we play within our denial and self deceit. There were plenty of realistic Jews, Russians and Gypsies who found themselves in the ovens and crematoriums. Our denial is in believing this will never happen again. It has already started and we just don't wish to look.

There is a way out. But you can never find your way out of anything until you understand where you are now. As long as we wish to believe that things won't get worse, they will get worse. Consider what has gone down over the last 10 years. It's the slow drip drip of the leak that allows us to believe that the 5 feet of standing water in the basement isn't really that bad.

Time to wake up and find some pumps.

Thu, 10/21/2010 - 14:17 | 667595 merehuman
merehuman's picture

it is with great and heartfelt dissappointment that i agree with you. Of the 300 million how many are aware?

So few of us . Until folks hang out their windows and shout "i wont take it anymore" At that pot banging point when even granny finally gets it....its too late.

Seems to me the well educated and aware folks of like mind oughta quit wasten time, unify and ACT dammit folks it aint enuff to sit and type while we drown in lies and paper.

Authority is not given , but taken. Taken by action.

while many off you speak of the failings of the sheep and corpies, those of you who still trade, use the dollar to make dollars are still part of that show.

Its a criminal market and anyone still in it for profit is a criminal as well in my book of what is moral.

Common decensy requires those politicians who are honest(rare animal) to step down and remove themselves from the criminal gang or be part of it.

profit seekers will no doubt junk this , and thats fine. You know who you are and have to live with yourself. Without honor we are less than common animals.

Thu, 10/21/2010 - 14:22 | 667628 Whatta
Whatta's picture

There will be no substantial riots in the USA

 

No riots unto soccer is the main sport here, and hulliganism proliferates.

Plus, it is such a pain to commute from the suburbs to do a protest thingy. Just too much effort...and my kid is doing a choir thing at the PTA meeting, and then there is a 24 hour sale at SpendMart. No time for protesting, not now. Not ever.

Just keep most of us kinda gainfully employed and our collective psyche will remain too placid to protest.

Thu, 10/21/2010 - 16:54 | 668130 Cognitive Dissonance
Cognitive Dissonance's picture

Just keep most of us kinda gainfully employed and our collective psyche will remain too placid to protest.

Not only will the vast majority tolerate extremely hot water in the collective pot, but it helps immensely if others are in the same pot. People will suffer horrible indignities as long as they can suffer with others. Misery loves, no demands, company and the masters of propaganda and control know this all to well. Just as long as we all suffer equally, we will suffer greatly.

We must understand the methods and weapons being used against us if we are to resist. It is the conditioned mind who claims that discussing our plight is being negative or defeated. It is the propagandists who tell us to be happy in our misery, to keep a stiff upper lip and a straight back. It is the mind of the defeated who accepts his or her misery as long as we don't talk about it.

I for one will never stop talking so that others may needlessly suffer in peace.

Thu, 10/21/2010 - 11:56 | 666922 Glass Steagall
Glass Steagall's picture

You don't impose "savage austerity" on an already pissed-off, well armed populace. You cull that heard by conscripting them in yet another world war.

Does anyone seriously believe this is going to end any other way?

Thu, 10/21/2010 - 12:07 | 666956 TBT or not TBT
TBT or not TBT's picture

Dozens of ballistic missile submarines cruising the depths with their dozens of MIRVed SLBMs on full alert mean that, no, there won't be a world war on the WWII model, with great powers duking it out Normandy style, or Okinawa style, or in big naval exchanges on the high seas.  

I predict a second period of great international suckage much like that which occured (past tense) in WW III, which already transpired.   Lots of proxy wars in the third world plus grinding stalemates a la Norks vs South Korea, or U.S. vs communist bloc writ large, with most of the suckage happening on the side of the collectivists.

Thu, 10/21/2010 - 12:08 | 666968 LeBalance
LeBalance's picture

A big juicy patriotic "golly gee gotta save 'Merka from dem zips!" Slaughterhouse Five!

Long live the firebombing of Dresden and Tokyo.

World Wide Coliseum Games for the Owners.

"Jonathan! Jonathan! Jonathan!"

Thu, 10/21/2010 - 12:13 | 666999 Glass Steagall
Glass Steagall's picture

Ladies and gentlemen, will you stand please for the playing of our Corporate Hymn.

Thu, 10/21/2010 - 16:39 | 668060 Rollerball
Rollerball's picture

The real show starts (started?) with suicide-by-Cern:  smash the "universal" particles to free the "strangelets" (strange stranglers and stranglettes) from the God particle.  He/She/Them is a wave you dumbass PHD Shiva bitchez!    

Hollowean kiss hollow earth goodbye unless hollow moon (Zeta base) comes to the rescue.  Cool thing is - we all instantly perceive the next aspect of timelessness.  All for One and One for all aboard the freedom spiral!

Thu, 10/21/2010 - 12:07 | 666961 hedgeless_horseman
hedgeless_horseman's picture

Domestic anger will be EASILY directed toward an external enemy. 

5 minute hate.

We have always been at war with ________________.

Etc.

Thu, 10/21/2010 - 12:09 | 666980 HelluvaEngineer
HelluvaEngineer's picture

Ragheads?

Thu, 10/21/2010 - 12:18 | 667021 hedgeless_horseman
hedgeless_horseman's picture

Doesn't really matter, does it?

Thu, 10/21/2010 - 14:23 | 667623 malusDiaz
malusDiaz's picture

Eurasia (Why won't this show up crossed out?)

Eastasia!

Thu, 10/21/2010 - 12:08 | 666974 vote_libertaria...
vote_libertarian_party's picture

Amercans?  Sacrifice? 

 

Does not compute.  Does not compute.

 

 

Thu, 10/21/2010 - 12:25 | 667052 Alcoholic Nativ...
Alcoholic Native American's picture

Hogwash, We sacrificed our media and a couple thousand of "our boys" to bring freedom and Democracy to Iraq and Afghanistan.

Thu, 10/21/2010 - 12:13 | 666983 plocequ1
plocequ1's picture

I can see americans going out in the streets and rioting, As long as there is a WiFi tower and an ATM machine in the area.

Thu, 10/21/2010 - 12:15 | 667004 Kat
Kat's picture

On this point we agree, Tyler.

However, I don't think we're going to get anything like the French riots.  So far, the closest we've come to rioting is people marching to IMPOSE austerity on the government.  In France, 70% of the population supports the leaches.  Here, we're appropriately screaming about the public unions raping the population.

Everywhere except California, that is.  That place is basically france with worse food and terrible fashion.

Thu, 10/21/2010 - 12:17 | 667012 TooBearish
TooBearish's picture

Suspect unreported crime will skyrocket - especially burglary and theft

Thu, 10/21/2010 - 13:11 | 667034 Ripped Chunk
Ripped Chunk's picture

Savage Austerity in the US?  Invest in companies that specialize in morgues and mass disposal of corpses (for those that won't even be able to afford a trip to the morgue.)

There is a very large group of US citizens that cannot deal with austerity of any type. They will be left to die and will.

Thu, 10/21/2010 - 12:21 | 667037 yabyum
yabyum's picture

AUSTERITY FOR ALL!! (except the ruling elite, of course)

Thu, 10/21/2010 - 12:21 | 667038 themosmitsos
themosmitsos's picture

Tyler, excellent on pointing out that US riots would be FAR out of control by any comparison, as other nation's share a level of homogenaity that the US does not. This economic crisis is about to expose the major rift/failure in the American social model. Sooo, race war, or war-war. But war, and soon, and how. "Fixes" everything

Thu, 10/21/2010 - 12:37 | 667099 treemagnet
treemagnet's picture

the metro areas will get the worst.  They riot, flip and burn cars, smash windows, etc. when their favorite team wins OR loses.  What do think will happen when you take away their free shit from the gov't......don't touch my cheese man, seriously.....

Thu, 10/21/2010 - 12:58 | 667186 sweet ebony diamond
sweet ebony diamond's picture

I think it will take only a little spark for the Party to start.

Thu, 10/21/2010 - 14:25 | 667643 malusDiaz
malusDiaz's picture

The gas fumes keep the lighter/match/spark from igniting. 

Thu, 10/21/2010 - 13:09 | 667237 Eureka Springs
Eureka Springs's picture

Austerity means :

 

Protect war criminals and fraudulent banksters above all else. (The enema is within).

 Loot the social security trust fund.

Keep telling folks jobs will return while guaranteeing the exact opposite in every respect.

Buy more ships and drones. (and hire more spooks and private militia which we cannot count!)

Protect gluttony in the form of oil instead of weening off it as much as possible - which should be priority number one in terms of national security!

Add more subsidized corn syrup to the shit we call food. (keep um fat and stooopid)

 

 

Thu, 10/21/2010 - 13:33 | 667379 linrom
linrom's picture

I could not agree more.

Fri, 10/22/2010 - 10:02 | 669524 MilleniumJane
MilleniumJane's picture

Absolutely!  Austerity will not touch the fat cats or their precious military industrial complex.  They would rather granny continues eating Fancy Feast so she can pay her electricity bill and afford her prescriptions.

Thu, 10/21/2010 - 13:14 | 667271 bugs_
bugs_'s picture

Savage Austerity means austerity for you.

Thu, 10/21/2010 - 13:14 | 667273 Eureka Springs
Eureka Springs's picture

I said it below and I will say it again.

 

Americans are way too fat to protest well, much less revolt or riot. You don't see french waddling like  fat fucking penguins in their streets!

Thu, 10/21/2010 - 13:30 | 667367 Lndmvr
Lndmvr's picture

Since the days I first noticed the sound walls going up around cities, I thought they would be used to close and keep out the coming insurrection. But, I believe they will be used to keep- in -the elites who failed to get out early. The battles will be fought at the open intersections. It would'nt take more than a couple of hundred boxes of roofing nails dumped on the interstaes aroung DC to grind everything to a halt.

Thu, 10/21/2010 - 14:24 | 667640 merehuman
merehuman's picture

if i lived on the east coast i would already have done that and more. Trix are not just for kids. I also like super glue on bank atms and doors. lets not forget when it get cold this winter and oil @ 120.00 what great fires those 4,000sqft houses make. Its enough to warm your heart

Thu, 10/21/2010 - 15:21 | 667855 New World Chaos
New World Chaos's picture

They are also useful for besieging the cities.  Seal them off, have a food-for-guns program for one month, then send Blackwater in.

Thu, 10/21/2010 - 13:41 | 667410 DUNTHAT
DUNTHAT's picture

TWO TRILLION DOLLARS PER YEAR.

ANY COMBINATION OF SPENDING REDUCTIONS OR TAX HIKES.

THAT'S WHAT IT WILL TAKE TO BALANCE THE BUDGET AND FULFILL ALL FUTURE PROMISES.

THAT'S GOING FROM A STRUCTURAL DEFICIT OF 7% OF GDP TO A STRUCTURAL SURPLUS OF 7% OF GDP.

THAT'S A 14% SWING FOLKS.

Thu, 10/21/2010 - 13:51 | 667469 SmittyinLA
SmittyinLA's picture

Rodney Kings riots part deux.

 

 

Thu, 10/21/2010 - 13:58 | 667497 Fox Moulder
Fox Moulder's picture

Most people accepted austerity gladly and patriotically during WWII.

 

Just sayin'.

Thu, 10/21/2010 - 14:05 | 667538 LongOfTooth
LongOfTooth's picture

Re austerity:  The U.S. has over 737 military bases on foreign soil.  How about starting there?

 

Thu, 10/21/2010 - 14:11 | 667568 DUNTHAT
DUNTHAT's picture

In 2010 dollars, the defence budget in the year 2000 was 350 billion.

Today, it topped at 700 billion.

Worth it?

Thu, 10/21/2010 - 18:16 | 668359 The Alarmist
The Alarmist's picture

They were just phasing out napalm for white phosphorus when I joined the military.  To paraphrase the line by Robert Duvall in Apocalypse Now, I really did love the smell of napalm when in the field as an observer .... My ride at the time was the F4, which could be seen and heard from miles away and had a radar cross section roughly the size of a small house that made it a fairly easy target.  So to now watch an F22 pirrouet in the sky above, and then blow by at mach+ without the need for burners is pure joy.  Worth it? You bet!

You can fly your D4D ... Desk 4 Drawers, you schmuck, and whine about how much is being spent to keep you free to whine about military expenditures.  Let's see how far your social spending gets you when some inner city creep jacks you for your Hummer.

 

Fri, 10/22/2010 - 10:46 | 669634 Treeplanter
Treeplanter's picture

Right on.  Our enemies would love to see us disarm.  Better we stock up on munitions and send Israel all they need.  Jihad and Chinese imperialism don't know from savage austerity.  Savage, yeah.

Sun, 10/24/2010 - 01:26 | 672939 honestann
honestann's picture

I don't know if the "Swiss Model" I heard about as a kid is still in force, but if so, I vote for that.  What do I mean?

The appropriate defense is to arm-to-the-teeth and every adult [never convicted of violent crime] with top-notch weapons and ammunition... and top-notch training.  Then leave them alone for years, decades, centuries at a time (except for upgrading weapons and training as appropriate).

Almost no other military is required.  I suppose today some percentage of such a citizen defense force should have silos in their backyards with GPS guided missles and connection to satellites for targeting information as necessary.  Today, there is little need for navy, since the most efficient technology is now remote controlled and autonomous weapons that could be manned in a similar way.

While some safeguards are appropriate, it is crucial to avoid having any top-down control system.  What every tyrrant knows, a whole population of individualists with power to take individual actions is impossible to defeat.  This is, essentially, the kind of advantage that gave the USSA such a hard time in Vietnam with scattered self-directed enemy who could make opportunistic application of their resources without need or delay of command and control hierarchy (but local communication and collaboration as and when appropriate).

It is very difficult to tell whether virtually all americans have become utter pantie waste or not.  To be sure, they certainly spend millions if not billions as much time complaining and talking than they spend planning, implementing, and practicing the downfall of the predators-that-be and forces of tyranny.

I hope the obvious evidence is misleading.  I hope [many] americans have a line in the sand (actually, more like a "trip wire") that switches their modus-operandi from "moan, grown, ignore, sanction and support the predators" to "all out shooting war" once some triggering event signals "the second revolution has arrived".  I am not optimistic.  I hope I am wrong.

Thu, 10/21/2010 - 14:25 | 667644 Sophist Economicus
Sophist Economicus's picture

Americans won't riot???    Really????  

 

Here are list of THE MOST DEADLY riots from the 20th Century.  Check out the 19th Century too.    Look at the United States listed many times.    No cute flags, pre-printed banners from Union head quarters.    Nope, just blood on the street.    When there is A REAL REASON to loose life and limb, sacrafice life and family, there WILL BE RIOTS in the USA.    Not the cute European coom-ba-ya variety.    No, Rveolt American Style -- with guns, blood and violence.

For all you arm chair 'anarchist', Step away from the computer and quit contemplating your navels.    Violence is not something you talk about from the comfort of your keyboard.

 


Bloody Sunday massacre in St. Petersburg.

[edit] 1930s

Fires rage during the Bonus Army March

[edit] 1940s

Dead and wounded after the 'Direct Action Day' battle between Hindus and Muslims

[edit] 1950s [edit] 1960s [edit] 1970s [edit] 1980s [edit] 1990s - 2000 [edit]

Thu, 10/21/2010 - 14:59 | 667780 hedgeless_horseman
Thu, 10/21/2010 - 16:56 | 667897 Cognitive Dissonance
Cognitive Dissonance's picture

Yes. And I can see that the US riots succeeded in changing the social, political and economic order several times.

There is a world of different in small (relative to the size of the nation) riots over mostly local issues and a nation changing uproar of massive and prolonged civil disobedience.

Thu, 10/21/2010 - 16:55 | 668135 Dismal Scientist
Dismal Scientist's picture

A great list. Where are we now ? Looking back at lists which made a brief moment of comment for the MSM and shepherded us into the arms of TPTB more each day. Revolution is needed, not rioting.

Sun, 10/24/2010 - 01:11 | 672915 honestann
honestann's picture

Wow! Quite a list.

I am just about as far from being a violent being as you can find.  I've never had a physical fight in my life.  I would always run when some bully wanted to start a fight in school years.  Eventually I learned to squash fights with clever (very calculated) comebacks.

However, at this point in history in the USSA, violence is absolutely, positively necessary to overthrow the predators-that-be.  The predators will absolutely, positively NOT give up their scam unless they suffer overwhelming physical defeat.

The predators-that-be have been increasingly hiring (with our money) and militarizing thugs to fight the battle for them.  They have no intention of lifting a finger, physically speaking.

Therefore, when the violence begins, it is crucial that those individuals fighting the second American revolution avoid those paid thugs, refuse to fight them whenever possible, and spend 100% of their time, effort, focus, planning and execution on the top levels of the medusa/pyramid --- the predators-that-be themselves, especially including the "men behind the curtain" who attempt to hide their identity from widespread recognition of their involvement.

If less thoughtful folks riot and create general chaos, let that be cover for those in the thoughtful, self-conscious fighters for liberty, who eradicate the root and source of the predator problem (to invert the pyramid metaphor).

Thu, 10/21/2010 - 14:41 | 667703 Papa Boule
Papa Boule's picture

"Savage austerity" at the worst possible time.

 

This is not going to end well.

Thu, 10/21/2010 - 14:42 | 667708 faustian bargain
faustian bargain's picture

I think TPTB are just contemplating what's the easiest way to boil the frog.

Planting a nice flower garden on the path to the furnaces, so to speak.

What's easiest: austerity measures with boot to neck, or debt default via hyperinflation? Hm, decisions, decisions...

Thu, 10/21/2010 - 14:57 | 667772 DarkAgeAhead
DarkAgeAhead's picture

No way most of the US riots.  We've past the point of potatoes.  Won't happen.

Thu, 10/21/2010 - 15:04 | 667804 THE DORK OF CORK
THE DORK OF CORK's picture

Austerity does not achieve the stated objectives as put forward by these men.

A Keynesian America that cannot increase its goverment debt or a Friedmanite America that cannot increase bank credit is doomed to failure as the interest will increase in a exponential way as interest always do against a static money supply.

If you apply mathematical logic to this system then more and more people will be vapourised to pay a infinite amount of debt - maybe the plan is to now export Chinese to America so that they can sacrifice themselves against the blades of this Great  Monetary engine.

We are now witnessing the greatest transfer of wealth in the history of mankind as the authorities refuse to increase capital and persevere with a satanic system of stupendous monetory malice.

This is now the "system" of austerity in Ireland when in fact it is nothing of the kind - it is systematic capital destruction using a overvalued debt currency to vapourise all capital.

Volcker did it in the 80s to industrialise your country.

Now they will create a plantation or concentration camp to get a yield on their investments.

These men are psychopaths.

Thu, 10/21/2010 - 15:39 | 667908 scaleindependent
scaleindependent's picture

The perfect way for the Irish to screw their English "neighbors" would be to default on their debts to Europe.

 The best way out of debt slavery.

Payback is a b!tch

Thu, 10/21/2010 - 19:59 | 668583 Geoff-UK
Geoff-UK's picture

I would pay $50 for ability to watch that legislative session on pay-per-view.

Thu, 10/21/2010 - 15:36 | 667898 scaleindependent
scaleindependent's picture

I keep repeating that inflation plus austerity is the best way to steal i.e., inflation in wages and bonuses  for the super rich and deflation and austerity for the middle class.

Prices will go up for everything, but wages and benefits will decrease for the middle class. National Parks and forests will be sold dirt cheap to the corporations. The fees for every thing will escalate. Your SS income will be taken to support the MIC and the banksters...

 

The super rich will get less taxes, more bonuses, more corporate welfare, more corporate tax cuts.

Remember how it felt in the end of 2007 with gas prices escalating and raises deflating?  Now it is coming back with a vengeance, but now they will not raise rates to cool down the overheated economy. They will tolerate overheating as Dudley and Evans stated to make up for lost inflation. LOL.

People will then necessarily cut down on consumption to make ends meet. Small businesses will suffer. The real econ will suffer, but the plutocracy will prosper. 

What pisses me off is that people here welcome their own austerity. 

Geez, talk about being brain-washed. All of you are a great example of the Stockholm Syndrome. (Calling Cognitive Dissonance for further clarification).

TPTB must be proud. They have succeeded in making the middle class identify with the agressor;
We are all Patty Hearst's now! 

Get deprogrammed before it is to late.

Thu, 10/21/2010 - 16:28 | 668052 faustian bargain
faustian bargain's picture

Forced austerity or not, standard of living is ultimately going to fall. The bubble is still not popped. The longer they try to forestall the contraction, the further we're going to fall, one way or the other.

I think default is probably preferable to austerity, but neither will matter much in the longer term if the structural issues are not fixed.

Thu, 10/21/2010 - 18:02 | 668330 THE DORK OF CORK
THE DORK OF CORK's picture

You cannot have austerity in a system that just transfers debt - debt is not only eating labour , it is eating capital.

Soon there will be little capital left.

Again present policies do not make sense until you realise that these men are drunk with power and will burn everything to remain on top.

We are one giant Easter Island.

Fri, 10/22/2010 - 01:51 | 669126 scaleindependent
scaleindependent's picture

"We are one giant Easter Island."

Well said. Sad but true.

As time passes and the more Earth resembles Easter Island, the less future generations will remember a fertile living Earth, the less will they grieve their loss.

Thu, 10/21/2010 - 17:00 | 668148 minus dog
minus dog's picture

We're never going to see any meaningful effort to reign in spending and close the gap on our debts.  There is just no way.  This will end in some manner of default.

Thu, 10/21/2010 - 17:07 | 668177 web bot
web bot's picture

I posted this on another commentary. It's appropriate for this article.

Collapse of the USD and the resulting hyperinflation is realistically the only option the US Gov't has to emerge from this unfunded liability of $23,000,000,000,000.00. Otherwise, it's game over for the US. Hyperinflation will destroy any outstanding debt and with the emergence of a new currency within 24 months or so, guess what - the US emerges still as an economic world power.

Make no mistake about it - this scenario is being well understood and modeled in a number of back offices in Washington.

If you don't think so, then what's the solution to the $23,000,000,000,000.00 issue?

Thu, 10/21/2010 - 17:10 | 668186 ozziindaus
ozziindaus's picture

Why is it so acceptable that a bailed out bank can propose solutions? Their opinions should be met with some public lashings.

http://money.cnn.com/news/specials/storysupplement/bankbailout/

Thu, 10/21/2010 - 17:29 | 668244 notadouche
notadouche's picture

The first step in savage austerity should start with cutting the number of govt employees by half.  After the blood clots a little, do it again.  From there you can start cutting entitlements from the people.  Govt departments from top to bottom should be justified and re visited no less than every two years.  Govt should get out of many theaters.  The arts, news, physical fitness, business stimulation etc.  If a business needs to be stimulated then quite possibly the market is telling you that the business is unsustainable to steal from the new most annoying buzzword of the day outside of "carbon footprint"

Fri, 10/22/2010 - 11:21 | 669731 Geoff-UK
Geoff-UK's picture

And which politician is going to propose this?

Nothing will change before the whole thing collapses.  Which, frankly, I'm kind of looking forward to given the status quo.

 

Thu, 10/21/2010 - 18:00 | 668321 The Alarmist
The Alarmist's picture

So I am reading this article about how families in the US are cutting back on some of their lavish expenditures, and one woman notes that she and her circle of friends are going to cut back on their weekly evening of martinis and dinners out and instead will engage in weekly pot-luck suppers at homes of members of the circle.

Gee, that's what we did in the 50's and 60's, when we had a pretty good lifestyle.  I also look back and remember our not-so-little 1500sf ranch which in comparison to today's 5000sf McMansion does seem a bit quaint.

Still the point is that we haven't even begun to scratch the surface on austerity.  The Frenchies are whining because they might have to work to 62 before they can retire, and you would think that they are being asked to work to the death.

Then I see a blurb about a commercial shot by CAGW that portrays a Chinese professor in the year 2030 talking about the decline and fall of the US because it actually thought it could tax and spend its way out of trouble, and I hear that people are outraged that CAGW would have the temerity to portray this.

And schools have banned kickball and other sport-related elements of what we call recess because kids might get hurt, but then lament that johnny and susie are getting fat, ostensibly because of sodas, etc. being sold in the cafeteria or brownies being brought in on birthdays.  Whatever.  I am just glad I grew up in an era before they had apparently discovered cholesterol, because I ate a shitload of burgers and drank a tanker full of milkshakes and never got fat because we did play kickball, baseball, and football, and even survived despite the fact that we often did these things without helmets.

Oh, never mind, a few hardball brushbacks must explain my quaint memories and political incorrectness.

I'm just sayin, I think we have a lot of room for austerity before it even begins to hurt.

 

Fri, 10/22/2010 - 10:13 | 669547 MilleniumJane
MilleniumJane's picture

The Frenchies are whining because they might have to work to 62 before they can retire, and you would think that they are being asked to work to the death.

 

That's because they know if you give the devils an inch, they're gonna take a fucking mile.  We haven't gotten that smart yet unfortunately.

Thu, 10/21/2010 - 18:54 | 668440 Buck Johnson
Buck Johnson's picture

US can't take severe austerity and the politicians know it. 

Fri, 10/22/2010 - 10:02 | 669521 Treeplanter
Treeplanter's picture

The credit party is over.  Time for the Tea Party and a return to the Constitution.

Sun, 10/24/2010 - 12:56 | 673461 It is the curre...
It is the currency stupid's picture

Listen to the whiny Liberals. They are huddled in cities, completely dependent on others for their food, water, warmth etc. Just wait until the grid goes down. That's 'electricity' for Obama voters. Are you with me still?  We country guys and gals will be clinging to our guns and Bibles while Liberals Cannibalize each other. Bring on the riots. Country boys will survive. What do you think Ma, should we go fishing or hunting while we wait for the corn harvest?

Sat, 11/13/2010 - 08:07 | 724458 mark456
mark456's picture

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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Wed, 02/23/2011 - 03:21 | 987824 shawnlee
shawnlee's picture

The Frenchies are whining because they might have to work to 62 before they can retire, and you would think that they are being asked to work to the death.
That's because they know if you give the devils an inch, they're gonna take a fucking mile. We haven't gotten that smart yet unfortunately.

Good to know
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Tue, 03/22/2011 - 04:20 | 1085144 shawnlee
shawnlee's picture

The Frenchies are whining because they might have to work to 62 before they can retire, and you would think that they are being asked to work to the death.
That's because they know if you give the devils an inch, they're gonna take a fucking mile. We haven't gotten that smart yet unfortunately. links of london jewelry

Tue, 05/31/2011 - 00:51 | 1324516 kummar
kummar's picture

The Frenchies are whining because they might have to work to 62 before they can retire, and you would think that they are being asked to work to the death.That's because they know if you give the devils an inch, they're gonna take a fucking mile. We haven't gotten that smart yet unfortunately640-864 \ Pass4sure 650-177 \ Pass4sure 642-627 \ Pass4sure 642-647 \ Pass4sure 642-165 \ Pass4sure 642-067 \ 1z0-051 \ Pass4sure 310-065 \ Pass4sure 642-504 \ Pass4sure 642-655 \ Pass4sure 650-195 \ Pass4sure HP0-P14

Mon, 08/08/2011 - 09:40 | 1536679 zita
zita's picture

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