Trust in America – Not

Bruce Krasting's picture



I wish I could have been a fly on the wall at the G8 summit at Camp David this weekend. The final communiqué from the global big shots talks about keeping Greece in the Euro and a shift away from austerity and a move towards growth oriented policies. Forget the Happy Talk, I want to know what they were really saying.



Obama must be praying for a miracle with the other members of the G8. If we get a “Grexit”, there will be months of turmoil in the global capital markets before the dust settles. The last thing the Big O wants to have is a recession in Europe that infects the USA with lower growth and higher unemployment when Americans are going to the polls in six months. For the same reason, Obama needs Japan to keep QEing and spending money it does not have.



Obama may be a slave to what happens outside of our borders during the period prior to the election, but those same foreign leaders are completely at the mercy of the USA and the next President after the election. It won’t matter what the UK, Germany, France or Japan does with stimulus in their countries; what’s on the table in the USA will overwhelm any of those efforts.

The USA is months (220 days) away from initiating fiscal policies that will trigger a recession in the US that will be at least as severe as that experienced in 2008. With the rest of the world already teetering on recession, America is set to push the global economy right into the tank. The non-US members of the G8 are well aware of these facts. They must be crapping in their pants at the prospects.

I think those concerns are completely justified. Any foreign leader who is banking on the hopes that America will end its political stalemate and put forward a credible economic plan that puts the US and global economies on a better footing is a fool. If you want proof of just how far away viable compromises are, consider some legislation put forward by Republican leaders this week.


House Representative “Buck” McKeon (R.Ca) runs the powerful Armed Services Committee. He has come up with a fiscal 2013 spending plan for the military. The CBO looked at H.R. 4310, so did the White House. It’s a joke.



$637 billion! That’s a lot of loot for a country that’s tapped out. This is not a compromise. This is an insult. The following chart shows that the 2013-spending plan proposed by Republicans has no reduction from the historic highs of the past few years.



What does the White House have to say about H.R. 4310?



When it comes to military spending, the Republicans want to bust the law that led to the increase in the debt limit. They propose legislation that would renege on the deal that they fought for last summer. The fight over the debt limit brought the economy and the markets to its knees. It cost the USA its AAA. And now the Republicans propose to kiss it away.





Obama had lunch with House Speaker Boehner last week to discuss the political impasse and the critical issues the country faces. To make it look like B&O are just a couple of regular guys they went for a bite to a local sandwich shop. I’m thinking there must have been 300 Secret Service types outside. There is nothing regular about these guys. Did the “deciders” at the hoagie shop agree on anything? Not a chance.



There is a near zero chance for America to address the fiscal cliff that is coming on Jan 1 before the election. I think there is also a zero chance that it will get resolved in the six-weeks following the vote. Those G8 leaders have every reason to be worried. So should the markets.


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billsbest's picture
Still not a peep: JP Morgan Accused of Manipulation of Poland's Equity Markets After more than three years we have seen no subsequent stories, follow-ups, or resolution to this story - - anyone have any info? Where are the financial journalist sleuths to sniff out the truth? Why we are distrusted by foreigners!
disabledvet's picture

My personal view (and it is "far from an expert one") is that Defense spending has become the default setting for all spending on the Hill. I agree the numbers are ridiculous but that 600 billion number is basically "your government." It's the only thing "politically acceptable" for the PTB. What such "government" as this doesn't do is make any sense. DYSFUNCTIONAL.

Gazooks's picture


So, this may be a bit off-topic, but speaking of trust of the fuck-suits there's some very strange shit happening in LA with the hallmarks of media censorship typical to managed 'national security' issues. Especially when black-op or possible false-flag events surface unpredictably and very inconveniently.


The media lid is on since its initial reporting a week ago, but it's very curious given the glaring back-story omissions of the MSM reports in links below of other underlying elements as reported from official Russian sources.


Something may desperately be trying to get out of the bag that the FBI is as desperate to keep quiet. First read the Russian account copied below, then the very sketchy and controlled MSM versions. Somethings' up and it needs an attentive, skeptical audience with persistent and independent investigative resources.  Maybe it's nothing more than 'an incident', but it has the feel and smell of deep shit.


May 16, 2012


FBI Agent Fleeing Massive Manhunt Warns “They’re All Insane”


By: Sorcha Faal, and as reported to her Western Subscribers



A bizarre Foreign Ministry report circulating in the Kremlin today states that this Friday past (11 May) Russian Envoy Vladimir Vinokurov, the Consulate General of San Francisco, was approached near his hotel room during a visit to Los Angles by an agent of the United States Federal Bureau of Investigation (FBI) identifying himself as Stephen Ivens [photo top left] who warned that he and a former FBI agent named Donald Sachtleben had uncovered evidence of an impending terror attack on US soil stating that those behind the attack were “all insane.”


Before Ivens was able to finish his “message,” this report says, the three American Diplomatic Security (DS) agents, who trail all Russian diplomats in the US, began to “surge” towards Ivens causing him to flee.


According to US news sources, Special Agent Ivens, after leaving downtown Los Angeles, returned to his home in Burbank whereupon he then fled into the rugged Verdugo Mountains after which a massive manhunt for him ensued involving 100 FBI agents, 40 sheriff's department rescuers and a dozen local police officers.


FBI officials stated to the local media that Ivens was “distraught” and “might be suicidal” adding that they believed he had in his possession his service weapon.  At no time, however, did anyone ever state as to why Ivens would be in such a state.


According to other US news sources, Special Agent Ivens graduated from Braintree High School in Massachusetts 18 years ago and was selected by his fellow students as “shyest” in his class. He was further described by FBI colleagues as well liked, a devoted agent with no history of disciplinary action on the job, and according to FBI spokeswoman Laura Eimiller “Married with a one-year-old child, he has been working for the FBI for the past three years in the national security area. Prior to that, he worked as a Los Angeles police officer for eight years.”


Late yesterday, after the massive manhunt failed to find any trace of Ivens, his wife Thea Ivens issued an urgent public appeal stating: “Steve, if you are out there listening right now, your wife wants to let you know, 'Babe, we are in this together for better or for worse. I love you, no matter what happens.' Your child wants you to know, 'Daddy’s work? Daddy home?’”


Even more bizarre about this case, this report continues, is that the retired FBI agent named Donald Sachtleben mentioned by Ivens, who also knew about this impending “plot,” was arrested within hours of Ivens disappearing and charged with trading child pornography.


Most important to note about Sachtleben was, aside from his being an over 25-year veteran of the FBI, he was a special agent bomb technician before retiring in 2008 who specialized in counter-terrorism and bombing investigations and whose most important case was the 11 September 2001 attacks on New York City.


According to US news reports about Sachtleben’s arrest, this most knowledgeable of FBI agents openly traded child porn using the e-mail address ‘’ in an act so stupid for one of the United States most highly trained intelligence agents it defies belief.


The practice of US intelligence services charging their most feared dissidents with child pornography and/or sex charges is well known, with the most celebrated case being against the former UN weapons inspector William Scott Ritter, Jr. who warned about the lies being told to the American people in the run-up to the Iraq War only to find himself sent to prison on trumped up charges involving a minor girl.



To exactly what kind of false flag plot Agents Ivens and Sachtleben had uncovered this report doesn’t say, other than to note that the credibility of this information should not be dismissed due to how fast and hard US intelligence agencies are acting to cover their tracks should any additional information come forth.


Grimly to be noted is the use of false flag operations by the United States and their political elite classes are well known and well documented, the most famous of them being Operation Northwoods.


Operation Northwoods was a series of false-flag proposals that originated in 1962 within the United States government, and which the Kennedy administration rejected. The proposals called for the Central Intelligence Agency (CIA), or other operatives, to commit acts of terrorism in U.S. cities and elsewhere. These acts of terrorism were to be blamed on Cuba in order to create public support for a war against that nation, which had recently become communist under Fidel Castro. One part of Operation Northwoods was to “develop a Communist Cuban terror campaign in the Miami area, in other Florida cities and even in Washington.”


Operation Northwoods proposals included hijackings and bombings followed by the introduction of phony evidence that would implicate the Cuban government. It stated: “The desired resultant from the execution of this plan would be to place the United States in the apparent position of suffering defensible grievances from a rash and irresponsible government of Cuba and to develop an international image of a Cuban threat to peace in the Western Hemisphere.”


 Several other proposals were included within Operation Northwoods, including real or simulated actions against various U.S. military and civilian targets. The plan was drafted by the Joint Chiefs of Staff, signed by Chairman Lyman Lemnitzer and sent to the Secretary of Defense. Although part of the U.S. government's Cuban Project anti-communist initiative, Operation Northwoods was never officially accepted; it was authored by the Joint Chiefs of Staff, but then rejected by President John F. Kennedy.


As the events of Oklahoma City and 9/11 prove, however, the appetite for false flag operations against the American people by their own government is far from sated, with the next one, undoubtedly, being the worst of them all.


May 16, 2012 © EU and US all rights reserved. 


WaEver's picture

what's the russian dude doing with his arm in the presence of a german........don't mention the war

Xkwisetly Paneful's picture

Most of the world is dead broke and much of it has already decimated their militaries.

People that ignore that the once most prosperous places on earth are now destitute whores thanks to massive over governance and unfunded social obligations, mostly with higher taxes and little miltary spending are the biggest fucking idiots on the planet.

right there with the folks who can't figure out war is always around the next corner whether the US ever existed or not.

Who controls the governance? Has world governance increased or decreased dramatically the last centuries?

So how is it that anyone could possibly believe that those same people-the rich and powerful- did not increase the governance dramatically for their own benefit?  Why do imbeciles still believe although the ultra rich are mostly self identified big government shills still believe that these people creating government is doing so for the people's benefit and  not the truth of the matter-there is no better way to keep the rest of us down than by burying us in debt and limiting our opportunities via astronomically higher implied future taxation.

masterinchancery's picture

Much ado about nothing, a drop in the barrel of ruinous spending on everything from thousands of social subsidies for not working to corporate subsidies for producing alternate energy that doesn't work, to student loan subsidies for students who can't spell "cat." And then at the state and municipal level, massive handouts to public employees and their unions.  And you are worried about the Pentagon budget, where you could save 30 or 40 billion tops?

LawsofPhysics's picture

LOL!!  Speaking of people who can't read and lack critical analytical skills.  I can think of one place to cut 700 billion.  You are a moron if you think that this is a "drop in the barrel".  Soon enough it will be a free-for-all.  Fine with me, at least then the true value of everyone's labor will be recognized, fucking bring it.

devo's picture

The USA is months (220 days) away from initiating fiscal policies that will trigger a recession in the US

The U.S. never left recession. Funding GDP with bonds isn't growth.

LawsofPhysics's picture

You are correct sir.  Welcome to the post-growth world.  FYI- Devo was right too, devolution will be a bad thing for humanity and yes, the species has been devolving for quite some time now.

Goldtoothchimp09's picture

Just as every person is equally capable of anything (murder, altruism, abuse or love) - so is a country.  It all depends on the circumstances.

The United States has enjoyed a long period of prosperity where they had the luxury of being free, open, laissez faire - in general.

Circumstances are quickly changing and what have we seen -- indefinite detention, an over-reaching NSA, spy drones in the sky, NDAA etc. etc.  

Don't think 'IT' won't happen here ... whatever you fear IT to be.  IT is all very possible or rather inevitable.

rsnoble's picture

$613billion? Oh they'll stop at nothing for world domination.

DarthVaderMentor's picture

In God We Trust goes the saying on our coinage and Federal Reserve backed bills. Our government in the past could be trusted, so "Trust in America" was a reasonable assumption.


This was true of the government when the United States Government was not corrupted and did follow the precepts of God, yet allowed those who didn't believe in God to quietly live among us.


Unfortunately, we have become corrupted and "Godless" in nature.


We will pay the price for this.

Bartanist's picture

And yet, as much as they have tried to turn us into the reincarnation of biblical Sodom, there are many, many people who are good and have God in their hearts. It is true that you almost never hear of or see these people because they are not the so called "leaders" of the government or of business or in the media.

We are bombarded every day with the face of evil and are tempted with corruption everywhere we go.

... and there is always the chance and opportunity for people to return from the dark side. But maybe they need some help in the form of understanding and then support in doing so. This is difficult since so much has been hidden... and therefore it is hard to entirely blame them... even though the answers are inside everyone.


All of the meaningless dialogue that follows arguing stupid elephant and donkey pet trick politics is meaningless. The fable of the phoenix is the meaningful story line now. The phoenix grows old, lifeless, and lethargic. Then, it is consumed by fire completely. From the ashes, arises a reborn phoenix. So, the heck with trusting in God. Bad track record for the last couple thousand years of human history. Same for the donkey and the elephant - nothing but shit out of those two paragons of American political life from the very beginning.

I'm rooting for the phoenix. Which, happened to be mostly gold in color, interestingly enough. 

Sudden Debt's picture

That second photo looks so photoshoped...
And what also amazes me is the size of Obama compaired to Cameron and Hollandaise

Town Crier's picture

To woo the youth vote, he has reverted to his size when he was in college.

Titan Uranus's picture

That's what they said at Madame Fifi's, too...

John_Coltrane's picture


Here's some thoughts regarding so-called austerity in the government, the upcoming elections and fiscal cliff.  If O gets re-elected he's acheived his goal:  his re-election which satisfies his only economic goal his big ego.  Also, he can veto any attempt to get rid of Obamacare-his signature new entitlement and a 50 year liberal dream-but future fiscal nightmare.  If Romney wins, he needs to do what Reagan did when he took over from Carter in the worst economy until now.  He needs to bite the bullet hard by raising interest rates, forcing austerity and causing rapid massive debt deleveraging.  And that obamacare is toast (though the supreme court will likely take care of that next month anyway), medicaid gets block granted, medicare gets means tested and semi-privatized a la Ryan budget but with no senate to block it, and the student loan program get privatized reintroducing risk into the system.   The faster the better to satisfy his goal:  his re-election in 4 years (these guys are all egomaniacs).  As many now forget Reagans actions looked certain to guarantee he would be a one term president.  But by 1984 the real economy was booming and he won by a landslide.  And many forget, he wanted to eliminate the dept of education and energy just like RP, but failed due to a democrat dominated congress. 

mjk0259's picture

How much could be saved by having Medicare means-tested? Are we going to make people sell their modest house before they are eligible? If not, maybe 10% of people have more than $100K which is what one serious illness could easily cost. Health care costs usually grow by that much every two years.  And if it was means tested, the number of people who have significant assets at age 65 will drop like a stone. Makes more sense to spend it while you are young or give it away. Hell, my dad did that 20 years ago because of some concerns he had about being covered for nursing homes. I don't see how it could add up to significant savings.

Xkwisetly Paneful's picture

The entire social infrastructure should be used for castastrophic loss.

The idea that insurance should cover every office visit whether it be federal, state or private insurance is beyond ludicrous.

I have little issue with means testing but first get the government, who by the way was a pioneer, out of the commoditizing paper pushing for zero utilitarian gain business.

Do away with the state barriers to national  health insurance competition and voila, things would improve dramatically.



LawsofPhysics's picture

I would take it a step further and say the idea that any man-made organization or institution can somehow "insure" your health is fucking beyond ludicrous.

I am not completely without compassion, but damn it, there should be real consequences for bad fucking behavior.  If I chose a healthy lifestyle and have less doctor visits, I should have to spend less on my health care.

In the health care world, Atlas shrugged a long time ago.  More competition is good, but without either regulation or transparency it won't fix shit as people still do not understand consequences and BAD BEHAVIOR is still rewarded and encouraged.  Until the moral hazard is put back in a bottle nothng changes. 

onlooker's picture



BURCE, and my smarter than me peer gang here at ZH.


One way to view living is objective, method, and outcome.


Seems to me that what Bruce is attempting to do here is to share some personal life experience that he has lived, along with his opinions of what are the possible events of tomorrow and beyond. Being a future teller is not a job that anyone does 100%.


It is certainly understanable to recount his past questionable forecasts, but to be fair; there may be accurate observations that are not recounted. I suppose the condensation of my thoughts is -------


get off his back bitch


Muppet Pimp's picture

BURCE?  For crying out loud at least try to spell the mans name correctly.

Ham-bone's picture

Within a "democratically elected" society, there is no viable solution path to the problems we face.  No "tweaking" of revenue and expenditure.  These are the times when non-linear outcomes present themselves.  Bass and others are betting this is true and will be proven correct but the form and nature of "money" and "stores of value" that are the payoffs to these bets may be even more challenging than winning the initial bet.  Societal "clawbacks" of ill gotten gains could also be a real game changer.

Dems and Repubs and citizens of USA <and the world> will look for the easy way out at every turn until there is simply no turn or trick or gimmick to be played.  And then what?  A reactionary destruction of "capitalism" and initiation of a new decentralized modern day "dark ages"...a move toward localized representation or will it be the opposite handing all "rights" to an ever more powerful central governing body to resolve the calamities?

Judge Arrow's picture

strange rant Bruce - there will be no impasse - the congress will boot this down the road, raise the limits and give Romney a chance to "demand a recount" as David Stockman said - now at that point, like Spring next year, if there already hasn't been a bank implosion, and a new congress takes away the head-butting, there will be some facts to face - but artificial, like this impasse to come - not

Reese Bobby's picture

Yes, please wake up Bruce.  Democrats = Republicans = Democrats, etc.  The Military Industrial Complex and the Global Bank Cartel own both.  The noise is for show.  Geez...

vegas's picture

G8 summits always were bullshit, always will be bullshit, and this time was no different; simply a photo-op for the sheeple to think anything get done. The world tanks and these asshats get more excited over a dumbass soccer game. Nobody with a brain pays any attention to this shit.

sessinpo's picture

So Bruce,

How can you be posting months ago how great things are in various markets like RE and such. Then lately, the last month you turned a negative tone to everything? Months ago, several of us ridiculed your articles when you painted a rosy picture that hasn't yet appeared. Those of us that still don't see a bottom in RE were made fun of. Those of us that continued to see disaster in Europe, made fun of. And here we are now and quite frankly, I'm uncomfortable with your company switching economic views. But atlas, I will stand fast to my opinions, the Euro will be destroyed. Nationalism and war will arise. We will see relative strength (relative to other currencies around the world) in the dollar as dollar denominated debts implode. PMs will remain relatively safe compared to most fiat currencies. Deflation followed by possible hyper inflation.

q99x2's picture

637 billion is a lot of money to protect bankers that steal through fraud and murderers. What scum. Kick the gangsters out of the country.

El's picture

Ah, so that's how they are going to do it. They are just going to blame China for the mess we are in.

Rainman's picture

Japan's burned through 9 prime ministers since the turn of the century. Each rotated between austerity and spending....ying to yang to ying....and they are still in as bad a shape as two decades ago, or worse.

All roads lead to debt repudiation. Whether it transpires in an orderly or disorderly fashion are the only available options. I'll bet on the latter.

malikai's picture

Do my eyes deceive me or are there 11 plates at a party of 8? Is 8 == 11 now?

falak pema's picture

No Frau Merkel eats for four as she is the only woman in the lodge. Its Potus from 1 to 2; Hollande from 2 to 3 and Cameron from 3 to 4; when she will knock the balls in and wins that Cup back! 

headless blogger's picture

She's pretty trim for eating for 4, as well as being of older age. Of all the psychopath leaders of the West Merkel is my favorite. If I was older and not married I might go for her.


falak pema's picture

I'm only pulling her leg, the one which says, "verboten".

Fish Gone Bad's picture

8 is anything we are told it is at any given time.

Titan Uranus's picture

1.  Why bother having a debt ceiling at all?  What is its purpose?

2.  Potential scenario:  Obama announces that in the interests of party unity and national well-being, he will not run for re-election and will instead throw his support to Hillary Clinton.  Hillary announces that she has a secret plan (a' la Nixon) to end our economic problems.  After she's elected she reveals the secret plan:  full presidential pardon for Bernie Madoff, and assignment of him to replace Ben Bernanke.

3.  Alternate potential scenario:  Romney wins in November, soon announces that the economy is much worse than he thought, and that it is mostly Bush's fault.  Not W, but HW.  That will divert the media for a while as they attempt to digest and analyze this bombshell.  Romney appoints Hillary to replace Bernanke and encourages her to invest all tax revenues in cattle futures, as her track record was so strong in such endeavors in the Arkansas days.

4.  Runner-up alternate scenario:  The Republican convention is hopelessly deadlocked between Romney's supporters and Ron Paul's surprisingly powerful and vocal base.  Newt Gingrich emerges as the compromise choice when he unveils his brilliant plan to transport the entire population of Greece to man the moon colony, thus energizing the aero-space industry as well as opening up a cornucopia of mining opportunities, not to mention solving the street riot problems in Athens.

Hey, my guess is as good as anyones...

malikai's picture

2 sounds like the right choice.

3 might work but I think the market is too small. That will probably be a job for Billy and that little airport in Arkansas. That's a big enough market. There's plenty of pilots out of work, too.

4 is just out of this world. It might just work!

I am Jobe's picture

Thaanks Bruce- Good article.

G8 Useless

G20 Useless

NATO useless

When all else fails wars.

I guess USSA is there already. Does this mean WMT will not have the Black Friday Waffle Iron sale?


lynnybee's picture

this is an economic take-down of the United States of America; pre-planned, deliberate & purposeful with malice by those in the highest positions of government & finance.     good, decent hard-working average Americans are deliberately being destroyed & the worst part is, they have stolen the future inheritances of our kids & grandkids.    i know what's going on, i try to tell this to my friends&family, they laugh at me & are now shunning me.   i'm preparing to go it alone.   

Xkwisetly Paneful's picture

Correct but not in the novelty of it.

The rich and powerful always control the governance, it almost always moves from less restrictive to more and from smaller to bigger,

in essence they have taken down every economy since dirt turned brown because no one else can take them down.

Why people believe that them creating endless government is somehow in the people's favor is mind numbing.

disabledvet's picture

i'd say "correct, but for the hilarity of it" myself. Not that all of us hurting is funny of's just that "this scheme cannot succeed." It's friggin' Big Helmet in Spaceballs in charge now.

oldman's picture


Are you sure its not 'Sallee Sue'? Just kidding!

I have been going it alone for twenty years, now, if I exclude my 50 years of reclusion in the US. Lynnybaby, it isn't so easy or romantic or fullfilling-----

That's all I wanted to say----I'm going go body surfing now because the tide is just about perfect    om

falak pema's picture

you'll never walk alone if you like Liverpool...where the beetles came from and where the song is sung every week. 

Also, there is liver and there is pool but no pool sharks; like in WS. So what is there to lose. Bring your heart and kidneys and you won't go wrong. 

headless blogger's picture

Who in the fuck would want to live in Liverpool!!!??

falak pema's picture

a football fan or a woman on the shun-run with a good desire to kick some balls!

headless blogger's picture

or maybe some of those men in pink pants.

Ag Star's picture

You are not alone, and  remember this. You can not save those who do not want to be saved.