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It’s Not a “Fiscal Cliff” … It’s the Descent Into Lawlessness

George Washington's picture




 

The “fiscal cliff” is a myth.

Instead, what we are facing is a descent into lawlessness.

Wikipedia notes:

In many situations, austerity programs are imposed on countries that were previously under dictatorial regimes, leading to criticism that populations are forced to repay the debts of their oppressors.

Indeed, the IMF has already performed a complete audit of the whole US financial system, something which they have only previously done to broke third world nations.

Economist Marc Faber calls the U.S. a “failed state“.   Indeed, we no longer have a free market economy … we have fascism, communist style socialism, kleptocracy, oligarchy or banana republic style corruption.

Let’s look at some specific examples of our descent into lawlessness.

Lawless Looting and Redistribution of Wealth

The central banks’ central bank – the Bank for International Settlements- warned in 2008 that bailouts of the big banks would create sovereign debt crises … which could bankrupt nations.

That is exactly what has happened.

The big banks went bust, and so did the debtors.  But the government chose to save the big banks instead of the little guy, thus allowing the banks to continue to try to wring every penny of debt out of debtors.

Treasury Secretary Paulson shoved bailouts down Congress’ throat by threatening martial law if the bailouts weren’t passed. And the bailouts are now perpetual.

Moreover:

The bailout money is just going to line the pockets of the wealthy, instead of helping to stabilize the economy or even the companies receiving the bailouts:

  • A lot of the bailout money is going to the failing companies’ shareholders
  • Indeed, a leading progressive economist says that the true purpose of the bank rescue plans is “a massive redistribution of wealth to the bank shareholders and their top executives”

And as the New York Times notes, “Tens of billions of [bailout] dollars have merely passed through A.I.G. to its derivatives trading partners”.

 

***

 

In other words, through a little game-playing by the Fed, taxpayer money is going straight into the pockets of investors in AIG’s credit default swaps and is not even really stabilizing AIG.

Moreover, a large percentage of the bailouts went to foreign banks (and see this). And so did a huge portion of the money from quantitative easing.  Indeed, the Fed bailed out Gaddafi’s Bank of Libya), hedge fund billionaires, and big companies, but turned its back on the little guy.

A study of 124 banking crises by the International Monetary Fund found that propping up banks which are only pretending to be solvent often leads to austerity:

Existing empirical research has shown that providing assistance to banks and their borrowers can be counterproductive, resulting in increased losses to banks, which often abuse forbearance to take unproductive risks at government expense. The typical result of forbearance is a deeper hole in the net worth of banks, crippling tax burdens to finance bank bailouts, and even more severe credit supply contraction and economic decline than would have occurred in the absence of forbearance.

 

Cross-country analysis to date also shows that accommodative policy measures (such as substantial liquidity support, explicit government guarantee on financial institutions’ liabilities and forbearance from prudential regulations) tend to be fiscally costly and that these particular policies do not necessarily accelerate the speed of economic recovery.

 

***

All too often, central banks privilege stability over cost in the heat of the containment phase: if so, they may too liberally extend loans to an illiquid bank which is almost certain to prove insolvent anyway. Also, closure of a nonviable bank is often delayed for too long, even when there are clear signs of insolvency (Lindgren, 2003). Since bank closures face many obstacles, there is a tendency to rely instead on blanket government guarantees which, if the government’s fiscal and political position makes them credible, can work albeit at the cost of placing the burden on the budget, typically squeezing future provision of needed public services.

In other words, the “stimulus” to the banks blows up the budget, “squeezing” public services through austerity.

Numerous top economists say that the bank bailouts are the largest robbery and redistribution of wealth in history.

Why was this illegal?   Well, the top white collar fraud expert in the country says that the Bush and Obama administrations broke the law by failing to break up insolvent banks … instead of propping them up by bailing them out.

And the Special Inspector General of the Tarp bailout program said that the Treasury Secretary lied to Congress regarding some fundamental aspects of Tarp – like pretending that the banks were healthy, when they were totally insolvent.  The Secretary also falsely told Congress that the bailouts would be used to dispose of toxic assets … but then used the money for something else entirely.  Making false statements to a federal official is illegal, pursuant to 18 United States Code Section 1001.

So breaking the rules to bail out the big, insolvent banks, is destroying our prosperity.

Lawless Justice System

A strong rule of law is essential for a prosperous and stable economy, yet the government made it official policy not to prosecute fraud, even though criminal fraud is the main business model adopted by the giant banks.

The perpetrators of the biggest financial crime in world history, the largest insider trading scandal of all time, illegal raiding of customer accounts and blatant financing of drug cartels and terrorists have all gotten away scot-free without any jail time.

There are two systems of justice in America … one for the big banks and other fatcats, and one for everyone else.

While Iceland prosecuted its top criminal bankers, and thus quickly got through its financial problems and now has a vibrant economy, the American government has done everything it can to cover up fraud, and has been actively encouraging criminal fraud and attacking those trying to blow the whistle.

The rule of law is now as weak in the U.S. and UK as many countries which we would consider “rogue nations”.    See this, this, this, this, this, this, this, this, this, this and this.

This is a sudden change.  As famed Peruvian economist Hernando de Soto notes:

In a few short decades the West undercut 150 years of legal reforms that made the global economy possible.

Moreover, U.S. government personnel are on the take.  They have become so corrupt that regulators are literally sleeping with industry prostitutes … while they pimp out the American people.

The corruption of government officials is staggering, and the system of government-sponsored rating agencies had at its core a model of bribery.

We’ve gone from a nation of laws to a nation of powerful men making one-sided laws to protect their own interestsin secret. Government folks are using laws to crush dissent. It’s gotten so bad that even U.S. Supreme Court justices are saying that we are descending into tyranny.

It’s not a “fiscal cliff” … it’s an attempt to rape America … just like Greece and Ireland have been plundered.

Economics professor Randall Wray writes:

Thieves … took over the whole economy and the political system lock, stock, and barrel. They didn’t just blow up finance, they oversaw the swiftest transfer of wealth to the very top the world has ever seen. They screwed workers out of their jobs, they screwed homeowners out of their houses, they screwed retirees out of their pensions, and they screwed municipalities out of their revenues and assets.

 

Financiers are forcing schools, parks, pools, fire departments, senior citizen centers, and libraries to shut down. They are forcing national governments to auction off their cultural heritage to the highest bidder. Everything must go in firesales at prices rigged by twenty-something traders at the biggest and most corrupt institutions the world has ever known.

Economics professor Michael Hudson agrees … saying that the banks are trying to roll back all modern laws and make us all serfs.

Professor Hudson explained in 2008:

You have to realize that what they’re trying to do is to roll back the Enlightenment, roll back the moral philosophy and social values of classical political economy and its culmination in Progressive Era legislation, as well as the New Deal institutions. They’re not trying to make the economy more equal, and they’re not trying to share power. Their greed is (as Aristotle noted) infinite. So what you find to be a violation of traditional values is a re-assertion of pre-industrial, feudal values. The economy is being set back on the road to debt peonage. The Road to Serfdom is not government sponsorship of economic progress and rising living standards, it’s the dismantling of government, the dissolution of regulatory agencies, to create a new feudal-type elite.

Indeed:

Foreign Policy magazine ran an article entitled “The Next Big Thing: Neomedievalism“, arguing that the power of nations is declining, and being replaced by corporations, wealthy individuals, the sovereign wealth funds of monarchs, and city-regions.

 

Indeed, this isn’t the “Great Recession”, it’s the Great Bank Robbery. The big banks have pillaged and looted the rest of the world.

A lawless justice system is ruining the economy.

Lawless Central Bank

The non-partisan Government Accountability Office calls the Fed corrupt and riddled with conflicts of interest.   Nobel prize winning economist Joseph Stiglitz agrees, saying that the World Bank would view any country which had a banking structure like the Fed as being corrupt and untrustworthy. The former vice president at the Federal Reserve Bank of Dallas said said he worried that the failure of the government to provide more information about its rescue spending could signal corruption. “Nontransparency in government programs is always associated with corruption in other countries, so I don’t see why it wouldn’t be here,” he said.

Moreover, the Fed has broken the law by withholding information from Congress, letting unemployment rise in order to keep inflation low, and otherwise exceeding its authority under the Federal Reserve Act.

Acting in a lawless and unaccountable fashion is hurting the economy.

Lawless Attack on Democracy

The ability of the people to participate in their government’s decision-making is vital for a nation’s prosperity. But we no longer have democracy or a republican form of government in America.

The big banks own Washington D.C. politicians, lock stock and barrel.  See this, this, this and thisTwo leading IMF officials, the former Vice President of the Dallas Federal Reserve, and the the head of the Federal Reserve Bank of Kansas City, Moody’s chief economist and many others have all said that the United States is controlled by an “oligarchy” or “oligopoly”, and the big banks and giant financial institutions are key players in that oligarchy.

Laws are being passed in secret, and not even Congress knows what’s going on.

In other words, not only the justice system, but the entire system of American representation has been corrupted, thus harming the economy.

Lawless Infringement of Freedom

Personal freedom and liberty – and freedom from the arbitrary exercise of government power – are strongly correlated with a healthy economy, but America is descending into tyranny.

Authoritarian actions by the government interfere with the free market, and thus harm prosperity.

U.S. News and World Report notes:

The Fraser Institute’s latest Economic Freedom of the World Annual Report is out, and the news is not good for the United States. Ranked among the five freest countries in the world from 1975 through 2002, the United States has since dropped to 18th place.

The Cato institute notes:

The United States has plummeted to 18th place in the ranked list, trailing such countries as Estonia, Taiwan, and Qatar.

 

***

 

Actually, the decline began under President George W. Bush. For 20 years the U.S. had consistently ranked as one of the world’s three freest economies, along with Hong Kong and Singapore. By the end of the Bush presidency, we were barely in the top ten.

 

And, as with so many disastrous legacies of the Bush era, Barack Obama took a bad thing and made it worse.

But the American government has shredded the constitution, by subjecting us to indefinite detention, taking away our due process rights, deploying drones above our heads, spying on all Americans, and otherwise acting in attacking our freedoms.

Indeed, rights won in 1215 – in the Magna Carta – are being repealed.

Economic historian Niall Ferguson notes, draconian national security laws are one of the main things undermining the rule of law:

We must pose the familiar question about how far our civil liberties have been eroded by the national security state – a process that in fact dates back almost a hundred years to the outbreak of the First World War and the passage of the 1914 Defence of the Realm Act. Recent debates about the protracted detention of terrorist suspects are in no way new. Somehow it’s always a choice between habeas corpus and hundreds of corpses.

Of course, many of this decades’ national security measures have not been taken to keep us safe in the “post-9/11 world” … indeed, many of them started before 9/11.

And America has been in a continuous declared state of national emergency since 9/11, and we are in a literally never-ending state of perpetual war. See this, this, this and this.

In fact, government has blown terrorism fears way out of proportion for political purposes, and “national security” powers have been used in many ways to exempt big Wall Street players from the rule of law rather than to do anything to protect us.

So lawlessness infringement of our liberty is destroying our prosperity.

Lawless Initiation and Prosecution of War

It is well-documented that war destroys the economy.

Top U.S. government employees lied us into war, and used illegal torture, assassinations and other crimes of war in prosecuting the wars they unnecessarily started. They were – at a minimum – criminally negligent for failing to stop 9/11 (and see this).

In the name of fighting our enemies – the U.S. has directly been supporting Al Qaeda and other terrorist groups for the last decade. See this, this, this, this and this.

Our use of torture has also created many more terrorists than it has prevented.

Security experts – including both conservatives and liberals – agree that waging war in the Middle East weakens national security and increases terrorism. See this, this, this, this, this, this, this and this.

Indefinite detention, drone-strikes on innocent civilians, occupation of foreign countries, and most of America’s other tactics in the “war on terror” increase terrorism.

Terrorism feeds the cycle of war … and is thus harming our economy. (and because terrorism spooks people, they spend less, which further harms the economy).

So lawlessness in starting and prosecuting war is destroying our prosperity.

Postscript:  We’re not facing a “fiscal cliff”.  We’re facing a descent into lawlessness.  Stopping the fraudulent schemes, endless bailouts and imperial adventures is the place to start.

 
 

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Wed, 12/26/2012 - 19:07 | 3097591 Inibo E. Exibo
Inibo E. Exibo's picture

But everything will be OK if we just elect the right people and write the right laws, right?

Dear George Washington, can you say Stockholm Syndrome?

I knew you could. 

Tue, 12/25/2012 - 05:24 | 3094353 Trestle Rider
Trestle Rider's picture

So if the government said in 2008 that yes, the big banks are insolvent, and yes, we are going to prop the world up with printed fiat because we believe this approach to be less chaotic than alternatives, and yes, derivatives have no relationship with real world assets, and that yes, few in the political world or financial industry would be prosecuted because all are guilty.  Would you all feel better, even though we would be in the exact same spot?

 

Tue, 12/25/2012 - 03:50 | 3094335 ebworthen
ebworthen's picture

Thank you George, more truth.

The 2008 bailouts were the end for me; the end of any allegiance to our Kleptoligarchy where the responsible bill and mortgage paying family and citizen were thrown to the Wolves by the Sheperds who purport to "protect" them.

Liars and scoundrels who deserve to be kicked to the curb with little ceremony if not hung from lamp posts.

To Hell with them and their Wall Street cronies; HELL.

Tue, 12/25/2012 - 05:10 | 3094350 Middle_Finger_Market
Middle_Finger_Market's picture

Oh...and Merry Cliffmass y'all!

Tue, 12/25/2012 - 05:05 | 3094349 Middle_Finger_Market
Middle_Finger_Market's picture

You have felt it your entire life: https://www.facebook.com/photo.php?v=10151586631584815 

Tue, 12/25/2012 - 01:53 | 3094279 Cman5000
Cman5000's picture

Cashed in my 401K and bought guns,ammo and food.At least the banksters didn't get it..

Tue, 12/25/2012 - 01:44 | 3094275 Radical Marijuana
Radical Marijuana's picture

Excellent article, which most people who are familiar with this kind of material would agree was a great summarizing overview of the problem!

Of course, my usual caveat would be about the post script:

Stopping the fraudulent schemes, endless bailouts and imperial adventures is the place to start.

The basic idea of stopping these things is to propose impossible ideals, based on false fundamental dichotomies, which are guaranteed to continue to be ineffective. Such ideas about stopping the robberies, or frauds, are backwards.

I will repeat what I wrote in my comments regarding a previous article here on Zero Hedge

http://www.zerohedge.com/news/2012-12-24/does-libor-manipulation-deserve...

Does Libor Manipulation Deserve The Death Penalty?


There is a combined money/murder system, where the debt controls depend on the death controls. The international bankers became the supreme organized criminals, the biggest gangsters, the banksters, that were able to take control of governments. Through that process sovereign powers were effectively privatized, and therefore, the banksters are collectively a group of trillionaire mass murderers, which are controlling the world, because they control the money supply, which power they gained by controlling governments. Thus, the sovereign powers of the People to be able to rob and to kill were captured and controlled by the banksters. Most of the biggest countries in the world are effectively directed to work for those international banksters, to advance the banksters' global agenda.

That is the forest, and copping down a few big trees would be the wrong idea. What is needed are radical changes in the paradigms regarding militarism and the monetary system. What is needed is a process whereby the death controls are democratized, through a greater use of information and higher consciousness. What is needed is for the 99% plus of the population that acted like Zombie Sheeple, (that do not understand and do not want to understand) and therefore, have allowed a tiny minority of less than 1% to use the power of the People, in the People's name, to rum amok, to begin to be the People that want to understand, and then to understand, the realities of human ecology. What is needed is a higher consciousness of human ecology, wherein the roles of the murder systems and death controls are recognized to be the central features. In fact, the money system does pay for the murder system, and then the murder system backs up the money system in return.

Metaphorically speaking,  

We should all be better Wolves, not better Sheep.

Everyone has some degree of power to rob and to kill. In that sense, power is always distributed. However, that power can be assembled and channelled. The history of militarism was the way that states, and their governments, developed. States, and their governments, were generated in the crucible of conflicts. Selection pressures created the best organized groups, which could rob and kill better than other groups. Governments ARE the concentrations of the power to rob and to kill, which are self-organizing and self-justifying. They are theoretically supposed to be restrained by a democratic republican system, or something else like that, however, as President George Washington stated, government is like fire. Government can get out of control and burn down everything, which is what appears to be happening at the present time!

This article, and the previous one, "The Lie that Prosecuting Bank Fraud Will Destabilize the Economy Is What Is REALLY Destroying the Economy," both provided a good summary of the background context for the particular questions about whether rigging something as important LIBOR deserved drastic punishments, as a deterrent. However, as my comment stated above, the bigger picture is the fundamental fact that people can rob and kill other people, and that some do, and those who do force everyone else to adapt to that fact. Moreover, those who were the best at being dishonest, and backing that up with violence, tended to be the ones that won the wars, and therefore, civilizations developed to make War King, which then developed further to make Fraud King.

All "solutions" based on "STOPPING" THAT ARE NON-STARTERS. They are fundamentally backwards ways to understand the problems, and therefore, provide bullshit "solutions," that could never work, because they are totally unrealistic, and have no possible connection to the real world!

Mon, 12/24/2012 - 22:32 | 3094071 Zer0head
Zer0head's picture

George if you are at work  read this post please

http://www.zerohedge.com/news/2012-12-24/ron-paul-government-security-ju...

Mon, 12/24/2012 - 22:17 | 3094053 hooligan2009
Mon, 12/24/2012 - 19:27 | 3093879 GCT
GCT's picture

Lawlessness will continue for a while yet.  Only those that donate to our political class and the judges they appoint can break the laws without consequences.  As long as the voters get what they want nothing is going to change.  They will simply sit at home stuff their face with greasy burgers and fries, wash it down with a diet coke and wonder the rest of the night why they burp and pass gas all night. Cut some of that out and you will indeed have some pissed off people.

We talk about austerity here time and again and really not going to happen as we continue to print and print.  I stopped playing the games a long time ago.  Debt is indeed the place they want veryone to be as they have you by the balls when the legal system backs them up.  You want to do something stop playing the fucking debt game.  Totally legal and nothing they can do.   The next step in the game is trying to disarm the whole country.  Now that may ruffle some feathers as well.

God Bless all of you and I hope at this time of year no matter your belief, you have a great time with family and friends.  Merry Christmas!!!!!!

On Christmas I hope all of you just forget about all of this and just have a good time.  The same problems will be there waiting on you and all here on December 26!!! 

Mon, 12/24/2012 - 19:35 | 3093864 outofhere
outofhere's picture

"Indeed, the IMF has already performed a complete audit of the whole US financial system, something which they have only previously done to broke third world nations." (GW)

FTIMF,  IT IS TIME TO AUDIT THEM!

Mon, 12/24/2012 - 19:06 | 3093844 notadouche
notadouche's picture

9/11 provided the blueprint that the US government now uses to usurp all freedoms from "we the people"  Using the threat of terror to destroy privacy and individual liberties of it's people in the name of "keeping us safe" is and will forever be the new playbook by which the US government operates henceforth.   They saw how many citizens gladly relinquished their freedom in the name of security.

Now it's first child, Obamacare, has been born and many people once again gladly relinquished their medical privacy and freedom to choose how they take care of their bodies, this time in the name of "cutting cost and providing all with insurance".   Big Gulps outlawed.  Talk of salt being rationed in public eateries.  Now we hear all of these test such as mammograms and prostate exams, CT scans, MRI's etc... that have been so important in the name of prevention and diagnosis are now considered too costly and grossly unecessary.  Antibiotics and pain medications are overprescribed and actually a scourge for the people.  Our children are subject to BMI test at school.  The result is that many citizens agree with these ridiculous mandates because now "we are paying for it so we have  right to regulate a person's weight"   

Our children's lunch menus at school are all much healthier and they are forced to put cetain food groups on their plates if they buy a school lunch.  Thus far they aren't being forced to eat it, just put it on their plate so most wind up in the garbage because a public schools "healthy" alternative is usually some nasty frozen fish sticks etc...  Typical governement outcome.  Waste.  The remedy of course will be force feeding the child instead of rescinding the stupid nutritional rule.  

Can't wait to see what's next.  I suppose that's easy, it will be some type of gun rule that overreach in wake of the tragic shooting in Newtown.  Of course many of the people will agree not realizing it's just a backdoor attempt at disarming the american citizen so there can be zero resistance to the authority as they find more and more ways to trample the rights of the human.

Many will find this over the top and offensive but I would think we should learn from the German people and what they did and did not do back in the 1920's and 30's.  Their circumstances may be more identical than we can even imagine from an economic standpoint which led to an oppressive government that felt they had a mandate from the apparent enthusisam from many of the citizens.  Of course that enthusiasm came first from economic strife and ignorance from what was taking place because it really didn't affect them, then from fear as they realized it was too late and too dangerous to dissent.  They also enacted a sort of "See something, say something" policy which had neighbor pitted against neighbor that coincided perfectly with a network of governmental spying on the society. We all know what happened next in history.  History may not repeat but it can rhyme.  

No one believes our government is capable of any real dastardly deeds on the masses of it own people but I don't find it that hard to fathom.  When the political and economic elites feel threatened.  We'll see.  Men who have been in power for long periods of time facing the loss of that power and or wealth usually don't go down without a fight nor with dignity. 

Merry Christmas everyone and may God Bless Us One and All, whomever that definition of God is to you.  

 

 

 

Tue, 12/25/2012 - 07:01 | 3094377 supermaxedout
supermaxedout's picture

Gun Laws:

Is it normal to have weapons at home. Yes, most households have huge sharp and very stable knifes in their kitchen. These kind of knives are comparable to bajonets and hunting knives. Perfect killing instruments but of course not suitable for mass murder.  Sometimes somebody "runs amok" with such a knife and kills people randomly till he is overwhelmed. But the use of knifes is a rare case for these purposes in modern societies.

However, the problem that people run amok existed since ever and it will continue.  unfortunately  the situation in the US is now extreme: Masses of frustrated and unsatiesfied people of all kind of age drifting slowly into a state of madness. Running amok is, let say it frankly becoming a wider spread phenomen in the US, simply for the fact that the society is breeding more and more potential amok runners.  Combine this situation with the easy availibility of semi or fully automated guns then we have what we have now.

Guns start to speak were talking has stopped.   America must change its martial culture, be it the government or the unsecure population. Both sides need to get rid of the bulk of their mass killing instruments simultaneously. That would make sense to me.  The population in general might be ripe to go new ways but the government in the US does not show any sign to leave its path of brutal supression in order to save their privileges.

Health Care etc - comparison with Germany in the 1930:

Indeed the German blend of "Extreme Nationalism and Socialism" was the best tasting medicine in these bitter times for the ordinary German. Laws were introduced to better protect the workers from unhealthy working conditions (asbestos was already a big theme at that time among the protection from other hazardous materials at the working place). The KDF "Kraft durch Freude" (strength by joy) system was introduced.  The name disappeared but the system still exists  on a big scale in Germany nowadays. It is a public funded system targeting the health conditions (or better unhealth) of the working population. The goal is to maintain the health of the workers and to avoid premature exhaustion to maintain the workforce. ( As a matter of fact KDF was the absolute opposite of the KZ system ( Concentration Camps)  which was introduced exactly during the same time.) The KDF was the beginning of the mass spa industry in Germany trying to fight health problems of the general populations. It is till now an important economic factor in Germany.  

But the good tasting  Nazi medicine "Extreme Nationalism and Socialism" had nasty and horrible side effects as we all know. Hopefully the American people do find the strength to resist such an easy solution. It would bring the world from bad to worst. 

Tue, 12/25/2012 - 10:11 | 3094482 espirit
espirit's picture

Meh. Any domestic terrorist bent on causing a mass casualty incident can do the same damage with 5 gallons of gasoline and a road flare -as- semiautomatic firearms with hi-cap magazines.

Just sayin'.

Mon, 12/24/2012 - 22:47 | 3094094 Notarocketscientist
Notarocketscientist's picture

And guess who was dominating German prior to WW2?  We all know that the tail wags the dog in america today......

Mon, 12/24/2012 - 20:36 | 3093887 outofhere
outofhere's picture

"History may not repeat but it can rhyme."

History always repeats itself as evident today.  The rich and powerful have

NO dignity!

Mon, 12/24/2012 - 18:47 | 3093817 Seychelles
Seychelles's picture

Excellent.  But quoting Mark Zandi about anything does not add credibility to your argument.

Mon, 12/24/2012 - 18:36 | 3093801 diogeneslaertius
diogeneslaertius's picture

Master Blaster runs Barter Town

Mon, 12/24/2012 - 18:36 | 3093800 I am on to you
I am on to you's picture

May the comming year,bring Justice,we dont need more law!

Happy holiday:To GW Banzai Durden and all at the Zeros,and to all,who agree,and to the ones that disagree to:

May the future, belong to us all!

Mon, 12/24/2012 - 17:32 | 3093708 unirealist
unirealist's picture

Thanks for this and everything else you've provided us with, George.  Have a fun Christmas and best wishes for the New Year.

Mon, 12/24/2012 - 16:38 | 3093633 cognus
cognus's picture

GW I am pleasantly surprised, while remaining wary.  I fully expected you to somehow imply that Islamist financial law might be our ticket to salvation.

I say do as the Zealots did in Jerusalem:  break down the walls of the Temple [ http://www.amazon.com/Secrets-Temple-Federal-Reserve-Country/dp/0671675567 ] and destroy the records of debt.  Its easier to do now than it was then - just write zeros to all the sectors of those databases.

Mon, 12/24/2012 - 16:10 | 3093589 PKF
PKF's picture

Well, Mr. George Washington...you have solved my problem for Holiday presents.  I will be forwarding your exceptional post to my gift list...all tied up in a beautiful silver and gold bow!

 

Thank you.  You've pulled me out of Holiday Funk by letting me know that I'm not crazy as most of my Redneck Central family and 'friends' tell me. 

 

I need to buy some physical gold and silver:  would you or someone be so kind as to put me in the right direction of a reputable dealer?  I would be most appreciative. 

 

Again.  Great Post, as always. 

 

P.S.  I have not purchased anything Made in China since 1989 (unless that is the only country making the product, ie. fans).  I only buy basics.  I suggest second hand stores for great buys.  I never go to Walmart.  I recommend Aldi's...especially their products made in Europe (no GMO stuff).  The pizzas are to die for.  I detest consumerism/materialism and have for many decades.  Anyway I'm all for boycotting and bringing the Corporate Machine to its knees.  But I think Mother Nature will need to have a hand in ending this monster of Globalization...but she has the power to do it.

 

Be as happy as possible in this lawless and unjust country. 

Mon, 12/24/2012 - 14:59 | 3093443 Vidar
Vidar's picture

This was going well until you quoted the professor saying that the Progressive Era and the New Deal are examples of what we need. These were the policies that started us on the road the end of which we are at today.

 

The problem is the state and the growth of state power. Big banks are able to get away with theft and murder because they control the state. They always have. Roosevelt (T & FD), Wilson, Hoover, etc were all controlled by Morgan and Rockefeller. The plutocrats started the whole Progressive-New Deal system because they didn't want to pay their debts in hard money, and knew that they could string the public along with welfare/warfare and the false promise of "regulation" which is simply a method of cartelizing industry. Their attempts to form trust and cartels failed in the free market system of the 1870-1910's, so they created the federal reserve and the regulatory agencies within the executive branch in order to achieve the goal of cartelizing industry and forcing out small business.

 

What we need is the death of the state. As long as people believe that using force to coerce others is acceptable behavior, the problem will persist. Everyone needs to realize that all taxation is theft, and that any institution that perpetuates itself through theft is illegitimate and unnecessary. In order to achieve this goal, we must simply avoid taxation whenever possible, pull our money from the banks, and buy hard assets such as gold, silver, real estate, guns & ammo, etc. The parasites can not live without the cooperation of the hosts. Everyone who engages in productive activity is a potential host, so produce only what you need to survive, stop buying into the culture of materialism and consumerism that perpetuates the system. If possible, work and purchase all you can in black or grey markets, use cash, if possible work "under the table" for cash. Even if you have a family and have to earn some "above the board" income in order to support them, get by with as little as you can and take the time to avoid paying into the system whenever you can.

Learn real history: visit the Mises institute and other online sources that have archives of lectures, books, and articles by Rothbard and other real historians and economists. Here is the link to a series of lectures that tells the real story of the Progressive Era and the New Deal and how Washington has been bought and paid for by Wall Street for 100+ years.

http://mises.org/media/categories/217/The-American-Economy-and-the-End-o...

Mon, 12/24/2012 - 13:18 | 3093166 ZeroPoint
ZeroPoint's picture

There isn't much left to loot. 401ks and pensions. Whatever real estate hasn't been taken yet. That's it. I see America ending up like North Korea, unless it collapses into complete anarchy prior. When the EBT cards stop working, or won't buy even a day's worth of food, America will errupt.

Mon, 12/24/2012 - 23:05 | 3094119 mkkby
mkkby's picture

Pensions and 401Ks already got looted and are set up again now.  What do you call artificially inflated asset prices and then crashes?

Mon, 12/24/2012 - 22:52 | 3094102 Notarocketscientist
Notarocketscientist's picture

Great point re: real estate.  Bernanke prints billions and hands it to the connected who sop up foreclosed properties.

I know it goes against most people's idea of what is right - but if you are going to give away billions why not just chop every mortgage in the US in half?   

But of course Bernanke can't do that even if he wanted to because he is the puppet of the Jew banking families who run America - and they are the chose ones - its all about them and their buddies.  

Tue, 12/25/2012 - 00:19 | 3094185 Andy Lewis
Andy Lewis's picture

Notarocketscientist isaNazishitbag.

Mon, 12/24/2012 - 14:27 | 3093345 Snakeeyes
Snakeeyes's picture

That is why we will go into the fiscal abyss and Obama/Congress will agree later on retracting most of the spending cuts.

http://confoundedinterest.wordpress.com/2012/12/24/santelli-if-the-fisca...

Mon, 12/24/2012 - 13:15 | 3093152 indio007
indio007's picture

Men naturally rebel against the injustice of which they are victims. Thus, when plunder is organized by law for the profit of those who make the law, all the plundered classes try somehow to enter — by peaceful or revolutionary means — into the making of laws.
-Bastiat

Mon, 12/24/2012 - 19:13 | 3093856 Dr. Sandi
Dr. Sandi's picture

It's only injustice when you're on the receiving end.

Mon, 12/24/2012 - 13:14 | 3093144 davebrik99
davebrik99's picture

This orgy of government spending and wholesale theft by banking managers will continue until the economy is trash.  It may just be the plan to weaken us so by the time we really recognize the 'moneychangers in the temple" it will be too late.  The ignorant electorate maybe before then will gladly vote for a small man with a small mustache and a big plan to "make the trains run on time"........

Mon, 12/24/2012 - 13:18 | 3093165 weyes1
weyes1's picture

until?

The economy is trash.

I need another another egg nog.

Mon, 12/24/2012 - 15:59 | 3093573 negative rates
negative rates's picture

Dude you just starved that flower, I sell the "budding fertilizer" on ebay once a year in march, keep a look out my friend.

Mon, 12/24/2012 - 23:50 | 3094163 Tijuana Donkey Show
Tijuana Donkey Show's picture

Purple=bad

Mon, 12/24/2012 - 15:41 | 3093544 PlausibleDenial
PlausibleDenial's picture

Excellent... but, but, but, how many calories are in a pot induced munchie session?

Mon, 12/24/2012 - 13:14 | 3093142 tlnzz
tlnzz's picture

 The most recent descent into lawlessness began with the bankers sub-prime mortgages and robosigning and not properly transferring when sold. Then Wall St. demanded that our Congress and the Justice Dept. not enforce the standing "black letter" laws. Then Congress looked the other way while asset stripping continued on the working middle class. Sooner or later lots of people will feel they have nothing to loose. It becomes a choice of destroying the corrupt political system or become a debt slave. I'll put my money on the well armed middle class. Merry Christmas. this may be the last one with Merry in it.

 

Mon, 12/24/2012 - 12:53 | 3093086 eddiebe
eddiebe's picture

A solid five stars for this article! Can I make an exception and rate this one an uber awesome six?

Mon, 12/24/2012 - 12:52 | 3093081 shovelhead
shovelhead's picture

And the looting will continue until Americans hire the accounting services of Smith Wesson Sturm & Ruger.

Mon, 12/24/2012 - 16:33 | 3093620 cognus
cognus's picture

Here's a little salve for our wounded national souls:  http://www.nydailynews.com/news/politics/ammo-supplier-sees-unprecedente...

maybe, just maybe not ALL Americans are yet ready to submit to Babylon the Great Whore

Mon, 12/24/2012 - 13:02 | 3093117 willwork4food
willwork4food's picture

The looting will continue until the economy recovers.

Mon, 12/24/2012 - 19:12 | 3093855 Dr. Sandi
Dr. Sandi's picture

The looting will continue until there's no more loot. There is nothing left to stop it.

Mon, 12/24/2012 - 12:31 | 3093017 MortimerDuke
MortimerDuke's picture

"But the government chose to save the big banks instead of the little guy."  Why exactly should the government be saving either?  

Mon, 12/24/2012 - 23:24 | 3094140 petolo
petolo's picture

Medium guys.......line up here. Uncle Sam the Sham is here to help you. Why exactly do we need Police State gubberment? It only helps itself and its benefactors.

Mon, 12/24/2012 - 13:16 | 3093155 sun tzu
sun tzu's picture

I would like to know how we ever got into the situation where if the government shuts down, the entire economy collapses. There's an old saying about putting all your eggs into one basketcase.

Tue, 12/25/2012 - 09:05 | 3094412 outofhere
outofhere's picture

Putting all your eggs in one basketcase just makes it easier for the fox!

Mon, 12/24/2012 - 17:07 | 3093667 JoBob
JoBob's picture

Basket case: +1

Mon, 12/24/2012 - 15:57 | 3093568 Kayman
Kayman's picture

And there is another old saying about an egg sitting on a wall.

Mon, 12/24/2012 - 15:56 | 3093565 negative rates
negative rates's picture

Yes, the story of putting all your eggs in one basket. But then watch that basket!

Mon, 12/24/2012 - 13:09 | 3093133 shovelhead
shovelhead's picture

Very good point.

By ignoring the former they could easily ignore the latter because he wouldn't need saving.

In a proper liquidation, depositors get first bite of the apple and the rest suffer the consequences of conspiracy in a criminal enterprise.

 

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