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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.

 
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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.

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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.

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$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.

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

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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.

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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.

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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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Sun, 05/20/2012 - 10:43 | 2445032 Everybodys All ...
Everybodys All American's picture

Would any sane man have anything to agree with president Obama on? More debt is that the answer? Can we at least agree that president Obama has been proven not to have a plan other than to spend money we don't have again and again? His failed leadership is the reason. He is the president. His failure to find compromise. His failure to set aside differences. His failure as a leader. His unwillingness to set aside his big ego. His failure to bring a budget that not even democrats will vote for are why we have an impasse.

When you are looking at finding a solution it is paramount to define the problem first. The problem is one man. President Obama. No one would tell you he was not dealt a tough hand with the economy. But he had to push for health care as his first and most important legislative item on his agenda. Everyone now admits he should have focused on the economy instead. Everyone else knew. Why didn't he know. I think he wanted health care passed so bad that he didn't care how much the economy slid. The fact is when you plan on a government taking over 20% of America's economy you think your bigger than anything else to begin with. The president clearly didn't realize the mess the country was in and I would submit still doesn't fully realize it to this day. In fact his course of action has made things even worse and he wants to double down like all of his Krugman-like economic advisors.

If I'm a republican or democrat the last person I'd want to be seen agreeing with would most cetainly be this president.

Sun, 05/20/2012 - 10:18 | 2444994 Inspector Bird
Inspector Bird's picture

What's the solution?

Hm?

There is none.  Keep doing what we're doing - which puts the burden on the next generation and only prolongs the agony - or engage some form of 'limited' austerity? 

Austerity of any kind may restore fiscal prudence and faith in government accounting, but there is no doubt a recession will ensue.  Were I a president entering office, I'd prefer this.  Why?  Because a recession early in my term increases the chance of improvement by the time of the next election.  In fact, I'd want a severe recession, in an environment during which I can restore fiscal prudence, and during which I can prepare for the growth that would likely follow, at some point.

 

We are going to need a recession, one way or the other.  So why worry about it?  Bring on the automatic cuts.

Sun, 05/20/2012 - 10:41 | 2445027 DeadFred
DeadFred's picture

We are years past the point of no return. Just sit right back and watch the train jump the track and see who catches hell.

Sun, 05/20/2012 - 11:15 | 2445088 Milestones
Milestones's picture

I can't help but be reminded of my childhood story book about "Tootle the Train". Always stay on the tracks and grow up to be a big train. This was Tootle's admonishment for "jumping of the tracks and playing out in the fields smelling the flowers. I was about 5 or 6 and I never forgot the obvious message.

We start the brain washing much earlier now. Gawd help our youngins.          Milestones

Sun, 05/20/2012 - 12:26 | 2445189 Inspector Bird
Inspector Bird's picture

My mother was a wannabe hippie, too old to be one, too young to dislike them.  Tootles was a story we got frequently. I can appreciate 'stopping to smell the roses' in life, but it also masked a better story, one kids should learn - that staying on the tracks and doing things in a fashion which makes sense will keep us all prosperous and give us time to smell the roses.

We've been in such a hurry to get ahead, that we've been willing to let business and political leaders take shortcuts.  These shortcuts seem like great ideas at the time, but wind up hurting more people in the long run.

As I tell people in my industry (digital ad sales), sure we've got a 'new media' but it doesn't mean there's anything wrong with the old media or the way they've done business.  In fact, we need to adapt their manners and styles to what we do in order to function better or chaos will ensue.

 

Ask anyone in digital advertising what it's like, and you'll still here "it's the Wild West", because none of them want to learn the lessons that should've been learned over the last 10 years.  We're all still looking for the shortcuts.

 

Sun, 05/20/2012 - 13:28 | 2445299 Manthong
Manthong's picture

And the mothers never realized that the ultimate lesson would be:

"When you are racing towards a huge chasm and the bridge is out, if for some reason you cannot apply the brakes, an alternative is to jump off the tracks and try to land in a flowery meadow."

Sun, 05/20/2012 - 15:50 | 2445621 The Alarmist
The Alarmist's picture

But the updated version is that some trains are born with other identities inside, and sometimes jumping the tracks to smell the flowers is their way of expressing who they really are, and the rest of us are bigots if we cannot find the empathy to let them explore their real selves.

Sun, 05/20/2012 - 20:52 | 2446107 Cathartes Aura
Cathartes Aura's picture

it's all mommy's fault, she's the one who raised everyone to think they're worth anything, when we all realise everyone's worth-less.

Sun, 05/20/2012 - 10:30 | 2445012 Lucius Corneliu...
Lucius Cornelius Sulla's picture

There is no solution because the problem has been 30+ years in the making.  The debt buildup has finally reached the point where the economy can no longer sustain it.  Deleveraging is baked in the cake.  The only question is how it happens.  At this point, I think it will be a massive debt deflation followed by paniced money printing leading to a currency crisis.  This scene has been played out many times through out history.  The stage is set.  The American Empire of Debt is doomed.

Sun, 05/20/2012 - 19:04 | 2445932 debtandtaxes
debtandtaxes's picture

Debt jubilee. For:

1. every person - not corporation

2. who earns less than $500k a year.

3.  on individual credit card and credit line debt - not business accounts

4. and for mortgages on principal residences.

The money not spent on debt service will finance main street. I'd buy an investment property, a nice vacation every year, and maybe private school for the kids.

There fixed it.

Sun, 05/20/2012 - 20:49 | 2446101 Cathartes Aura
Cathartes Aura's picture

and there would be a counter-argument from those who did not go into debt, be it c/c or mortgage, or private school, etc. - that "your" spending habits get erased from the system, leaving you with your "principal residence" to reside in, the stuffs bought on "your" credit card to augment your styled-life, etc.

those who didn't get to keep their "primary residence" debt free, who are paying rent on others "investment property" (residential "real estate") because they prudently didn't get into "debt" - can you make the argument that some should get their debts wiped, while others continue to live with "less" than you are accustomed to?  those who may not take "nice vacation every year" so as to stay within their budget without a c/c buffer?

this is not pointing fingers, merely making a counter-argument, which would inevitably arise. . .

Sun, 05/20/2012 - 12:42 | 2445222 Inspector Bird
Inspector Bird's picture

The Empire of Debt, yes.  Whether the US is doomed is another thing altogether.

 

I'm not convinced it will happen.  We've seen plenty of countries go through similar financial debacles and come out relatively clean on the other side (meaning after you account for things like massive unemployment, poverty, or in extreme cases Fascism).  It's quite possible that this financial disaster which is looming is a 'good thing'.  Certainly, I think, Schumpeter would feel this way.

While I believe the odds of a Civil War in the US have increased in recent years, particularly with The One at the helm, I'm not convinced it is inevitable.  We may seem to be falling into the same trap as the Greeks prior to the Pelopponesian War, but I believe there is still a way to avoid that specific outcome.

Sun, 05/20/2012 - 19:08 | 2445939 Inspector Bird
Inspector Bird's picture

It say quite a bit about the Zero Hedge crowd that any reason, any jot of optimism, would get a "down" vote.  I specifically mentioned the Pelopponesian War because of this kind of thing.

People who sought solutions were tuned out, or worse - killed.  The people who sought chaos, both the mob and the politicians who benefitted from it, got what they wanted. 

There's nothing to gain from this approach.

What we need to do is accept what is inevitable - a depression of some sort, a reset - and move on from there.  It can be drawn out and increase the future pain (as we are seeing now), or it can be quick and painful but with an eventual salve. 

It's worth it to tolerate 10% plus unemployment, the destruction of massive amounts of debt, and the elmination of non-competitive businesses if it means that in 4 more years we'll have sub 10% unemployment, a healthy fiscal balance sheet, and see businesses being created again.  It can happen, with a bold enough leader who opens up the gateway to liberty and activity.

 

As long as we have bellowing blowhards blaming different groups (liberal, Occupy, Tea Party, Republicans, the Rich, etc.) for "The Problems we Face", the more likely we are to fall into fascism.  I see instances of it already with some of the lamer minds I'm familiar with when they say to me "you're well off (I'm not, but I do have a job) so you should pay more in taxes because I'm unemployed and I deserve something".  No.  No you don't deserve something. 

Last night, at a concert I attended (Bamboozle in Asbury Park), I saw a kid of about 24 wearing a T-Shirt that read "the only person I depend on for anything is myself."  Great T-Shirt.  I'll question if he means it, because the tatted-out, bad haircut, gauge-wearing, pierced crowd he was with reminded me of the Occupy crowd crowing for more.  Let me say this - class structures have, do, and always will exist.  Getting rid of them is a pipe dream.  Occupy and their siblings seek to remove one class and replace it with another.  Call it Animal Farm, call it "Dr. Zhivago", but either way it's just one class system seeking to switch out with another.

In the end, we all lose with those crowds.  I'm more inclined to seek a reasonable person who admits what the reality is, but seeks to free people to live their lives as they choose - you wanna get gauges, tats and a bad haircut?  Go ahead. But just realize you're unlikely to ever rise up the class ranks or earn a decent paycheck.

Accepting this isn't easy for those douchebags.  So they will always be around.  In the meantime, I focus on myself and making sure I'm doing well, taking care of my family, and paying my bills.  People like me will keep things from getting out of control, and even if they do get out of control, I'll find a way to make it work for me. 

That's just human nature.

Sun, 05/20/2012 - 21:16 | 2446136 Lucius Corneliu...
Lucius Cornelius Sulla's picture

When Hank Paulson sold out the US Treasury to his bankster buddies, the opportunity for a reset was lost.  Fact is we already are living in a fascist system.  The banksters own our politicians who will bend over backwards to save their ability to print money.  Until the PTB stop bailing out bondholders (including FRE and FNM bondholders) fascism will reign.  Paulson will go down as the biggest traitor to our Republic since Benedict Arnold.  There was a system in place that would have dealt with insolvent banks and brokerage houses, taking down private bondholders instead of passing losses on to the public.  Had this route been taken, we would be WAY better off today.

Sun, 05/20/2012 - 12:08 | 2445167 headless blogger
headless blogger's picture

This about covers it.

Sun, 05/20/2012 - 12:33 | 2445203 lasvegaspersona
lasvegaspersona's picture

collapse will not be tolerated. The Govt/Fed will continue to fund fund fund until the whole thing blows up...then we will hear..."No one saw it coming.."

Sun, 05/20/2012 - 10:19 | 2444989 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The key takeaway is the location of the meeting.  It says a lot that the main concern of the oligarchs is protecting themselves from the public.  The fact that they have to hold it sequestered on a military base is eerie.  

Mon, 05/21/2012 - 10:37 | 2447475 Mercury
Mercury's picture

It was moved suddenly from Chicago a few months ago.

Go ahead and try to "Occupy Camp David".

Sun, 05/20/2012 - 10:22 | 2444983 JustObserving
JustObserving's picture

 

"$637 billion! That’s a lot of loot for a country that’s tapped out"

Sorry It is $839 Billion for the military in 2013 (you are not including non-DoD spending of $166 billion).  Here it is how it breaks down:

$839 BILLION

Total Outlays DoD $673 billion:

Military Personnel $156 billion

Operation & Maint. $294 billion

Procurement $125 billion

Research & Dev. $72 billion

Construction $19 billion

Family Housing $2 billion

DoD misc. $5 billion

Non-DoD military spending includes:*

Retiree Pay/Healthcare $70 billion

DoE nuke weapons/clean-up $19 billion

NASA (50%) $9 billion

Internl. Security Asst. $14 billion

Homeland Secur. (military) $40 billion

State Dept. (partial) $7 billion

FBI military $5 billion

other $2 billion

If you want to include past military spending then it is another $516 billion

Veterans’ Benefits  $139 billion

Interest on national debt $377 billion (80% est. to be created by military spending)

A grand total of $1355 billion for the military in 2013

https://www.warresisters.org/sites/default/files/FY2013piechart-english-...

 

Sun, 05/20/2012 - 13:58 | 2445371 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Folks these times are no different from the Vietnam days. Back then, the anti-war candidates lost, but still the powers that be had to end the war. So get up and vote for the ONLY anti-war candidate. Yes, write him in if you have to. Frame the argument that way with your friends: "are you anti-war or pro-war?" "then why are you voting for Obama?"

Sun, 05/20/2012 - 11:47 | 2445133 bigwavedave
bigwavedave's picture

what if in a classical fuedal/fascist way the endgame is played out with the military? good investment no? also... military is cheap. how many lance corporals make a jamie dimon?

Sun, 05/20/2012 - 12:25 | 2445156 JustObserving
JustObserving's picture

Lance corporals are cannon fodder to protect Jamie Dimons of the USA.  They do not get wealthy from the stupendous war spending in the USA.  Wall Street gets rich from military spending and the $400 gallon gasoline in Afghanistan.

I disagree that military is cheap.  The Iraq war is alleged to have cost $3 trillion per Stiglitz.  Excessive military spending has bankrupted America.

Sun, 05/20/2012 - 13:41 | 2444975 Lucius Corneliu...
Lucius Cornelius Sulla's picture

At this point the patient is like a late stage alcoholic with cirrhosis of the liver, laying in the hospital bed sipping Mad Dog 20/20 from a grocery bag.

Mon, 05/21/2012 - 10:36 | 2447470 gaoptimize
gaoptimize's picture

Nice helmet ;)

Sun, 05/20/2012 - 10:02 | 2444965 booboo
booboo's picture

When gooberment spending makes up a good percentage of what is counted as GDP every dollar cut will impact that #. They have been pulling forward demand in the form of spending your grandkids future for so long that ANY cuts will immediatly blow this Pixar economy to he'll. They are trapped by their own scheme thus the red team blue team distraction will continue to be embedded into articles such as this.

Sun, 05/20/2012 - 14:14 | 2445404 Kayman
Kayman's picture

'gooberment spending makes up a good percentage of what is counted as GDP every dollar'

Every gubmint dollar spent is another wet, bale of hay dumped on the private sector taxpayer. This old camel's belly is dragging on the ground.

Only an ignorant ideologue refuses to see this. 

Sun, 05/20/2012 - 10:34 | 2445018 Winston Churchill
Winston Churchill's picture

If it's taking $2.50 in debt to get $1 in GDP,the benefit of huge cuts

should be obvious to all ,except bankers and politicians.

There will  be no cuts until the Ponzi is done.

Later this year or early next is my guess and hope.

This "'death by a thousand (non)cuts"  is getting tiresome,there are

only so many preps you can make.

Sun, 05/20/2012 - 10:49 | 2445043 DeadFred
DeadFred's picture

Entertain yourself as you wait through the countdown. Try to imagine the looks of the MSM shills' faces as when they finally get it. How will the bond holders react when they realize bond values can actually go down as well. All sorts of possibilities.

Mon, 05/21/2012 - 10:35 | 2447464 gaoptimize
gaoptimize's picture

I'm more worried about the lines at Lowes, Home Depot, the banks, and "backordered" at beprepared.com and APMEX when Joe 6-Pack gets it.

Sun, 05/20/2012 - 10:00 | 2444959 Earl of Chiswick
Earl of Chiswick's picture

There is a near zero chance for America to address the fiscal cliff

 

perhaps but we have seen treasury come to the rescue  before with  accounting tricks pushing the deadline out a few months.

 

http://www.ft.com/cms/s/0/bf1e612a-74f9-11e0-a4b7-00144feabdc0.html#axzz...

 

 

May 2, 2011 
US Treasury pushes back default timing

By James Politi in Washington

The US Treasury department pushed back its estimate for a potential US default to the beginning of August, announcing it would begin taking “extraordinary measures” to protect the country’s creditworthiness amid a political impasse over fiscal policy.

The first special step to be taken on Friday involved suspending the issuance of special Treasury bonds designed for state and local governments to better manage their finances, Tim Geithner, treasury secretary, said in a letter to Harry Reid, the Senate majority leader, on Monday.

Sun, 05/20/2012 - 09:59 | 2444956 Bansters-in-my-...
Bansters-in-my- feces's picture

USA......

Sucks the Big One.

Oh ya....they are killers too.

Sun, 05/20/2012 - 09:52 | 2444945 nmewn
nmewn's picture

A close up of the four pictures on the wall over Dear Leader O'Barry's shoulder...

http://weaselzippers.us/2012/05/19/pic-g8-summit-at-camp-david-look-at-the-four-pics-in-the-top-left-corner/

What did you expect? ;-)

Sun, 05/20/2012 - 13:58 | 2445372 Kayman
Kayman's picture

nmewn

I was looking for the High Noon picture of Sheriff Barack in a shootout with that varmint Bin Laden. 

Sun, 05/20/2012 - 17:11 | 2445766 nmewn
nmewn's picture

Michael Ramirez maybe?...sounds like something he'd do...he's very good.

Sun, 05/20/2012 - 11:51 | 2445129 Bob
Bob's picture

Something more substantive than a snickering "insider" jibe for connoisseurs  of shit-slinging against the Kenyan socialist?  For example, criticism of Barry's support of the NDAA or Monsanto or the global drone war or TBTF perhaps? 

Of course, that would beg the substantive question of why would we ever vote for the "other" guys, either. . . orther than to promote the red-blue clown show that purports to represent the heart, mind and soul of American democracy?  ;)

Sun, 05/20/2012 - 17:28 | 2445802 nmewn
nmewn's picture

Bob,

I'm sensing a little buyer's remorse from you ;-)

It's as simple as this dude...either Romney or O'Barry will be sworn in as the next prez. We all have our preferences, my first was not some blue state RINO slickster (and I announced right here who it was afterwards)...but it is what it is.

I didn't vote Romney in my primary here but I have to say...just about anyone would be better than O'Barry who can't string two sentences together without stammering or contradicting something he said yesterday.

Sun, 05/20/2012 - 13:22 | 2445292 narapoiddyslexia
narapoiddyslexia's picture

It amazes me no end to hear conservatives yap about "Obama the Kenyan Socialist," when he's done everything his corporate overlords have asked of him. The tea party people don't seem to notice their corporate funding, either. They're two arms of the same thing. How can people not see it? Pls explain.

Sun, 05/20/2012 - 14:01 | 2445374 Bob
Bob's picture

There seem to be alot of people stuck in the "clique" stage of social development on both sides of the convenient "partisan divide":

http://www.google.com/imgres?hl=en&biw=1440&bih=727&gbv=2&tbm=isch&tbnid...

They're putty in the hands of assholes.  Sorry, I meant Super Trend Setting Assholes. 

BTW, you can check whether you are in the right clique:

http://sitemaker.umich.edu/356.tran/true_clique

Since you asked!

 

Sun, 05/20/2012 - 09:58 | 2444942 XitSam
XitSam's picture

Edit: Deleted. Confused by Bruce's wording. Understand now. Apologies. 

Sun, 05/20/2012 - 09:59 | 2444954 Winston Smith 2009
Winston Smith 2009's picture

Yeah, this article doesn't make that clear.  I guess we're all supposed to know.

BTW, the magical, movable debt ceiling will be reached again in early August.  So close to the election, it aught to be a really great (laughable) show... before they raise it again.  And that DoD budget is probably the bargaining chip the Repugs will use to agree to raise it again.

Sun, 05/20/2012 - 14:19 | 2445415 cossack55
cossack55's picture

Sho' u right!!!  Instead of the 5:00 O'clock follies tho, it will be the 24 hour follies. I'm ready for a laugh a minute from these corrupt swine.

Sun, 05/20/2012 - 09:54 | 2444940 Winston Smith 2009
Winston Smith 2009's picture

"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."

The only thing that would truly fix our real problem, a government that for decades has spent and continues to spend far more than it brings in in revenues with the past four years having borrowed 40 cents of every dollar spent, 10% of GDP every year just to delay the inevitable, would be for the government to spend only what it brings in.  That would be political suicide because it would throw us into a depression and that is why they don't do it, but it is the only real, longterm fix for a problem that is all about excessive debt.  Instead, as I said, they are trying to fix a debt problem with massive amounts of additional debt.  Talk to the PIIGS about how that's working out.  They borrowed to finance a huge budget imbalance... until suddenly, they couldn't.  Now, the bond market will force them to do what they should have done long ago, but the pain will be much worse because of all of the additional money borrowed in their futile attempt to continue the game of spending far more than they bring in in revenues.

Sun, 05/20/2012 - 13:51 | 2445354 Kayman
Kayman's picture

 "the bond market will force them"

What bond market ?  You mean the game of pattycake orchestrated by the Fed and executed by the PD's ?  With Bernanke as buyer and seller at the margin, this game will carry on like Japan.

 Did anyone's Econ 101 Textbook discuss the utility of ZIRP; the economics of the asylum ?

Lots of no growth years, no investment, unless you want to count dollars going into the Wall Street Casino as "investment".

The World's largest military still needs a tax base to support it.  Short term we are OK, long term, I'd like you to meet Alaric.

Sun, 05/20/2012 - 10:41 | 2445026 BurningFuld
BurningFuld's picture

This is exactly true.  AND China is allowing it to happen. They know full well they are never getting paid back. They are going to let the USA borrow and spent as long as they absolutely can. It's called how to take over the world without firing a shot. It is exactly what happened to England...they went broke. Once the US hits the borrowing wall China will rise to at least the USA's level on the World economic stage...imagine if you will that your average Chinese worker can afford to buy gas with the same percent of his wages as the average American worker. That is where the rubber meets the road so to speak. And your government is taking you there at warp 8.

Sun, 05/20/2012 - 14:21 | 2445427 amusedobserver
amusedobserver's picture

You don't need to get paid back if you can buy back your loss, and then some.

Suppose, instead of China selling their $1.2 trillion of US bonds, they instead buy American banks and use that $1.2T as bank capital?  With fractional reserve banking, that gives them $10 trillion to buy American assets at prices available to first-dollar spenders.

If the Chinese owned $10 trillion of American assets, land, buildings, factories, wouldn't that give them control of the US economy?

Sun, 05/20/2012 - 20:08 | 2446040 Cathartes Aura
Cathartes Aura's picture

Selling America to China;  Treason by Any Other Name

http://farmwars.info/?p=6247

what has been done globally by amrkn corporations is now coming home to roost. . . all one grand experiment, ongoing.

Sun, 05/20/2012 - 09:50 | 2444939 The Watchman
The Watchman's picture

B & O reenacting the final scene of Thelma and Louise. Classic.

Sun, 05/20/2012 - 09:50 | 2444938 Landrew
Landrew's picture

The sad part is, the DOD budget is not all of the spending. A large fraction of DOE, DOT, NSF are also military spending through the backdoor. Not to mention the off-budget war related spending!

Sun, 05/20/2012 - 09:48 | 2444935 bank guy in Brussels
bank guy in Brussels's picture

The Congress votes nearly unanimously when they have orders from the US oligarchs. 'Gridlock' is a hoax - the US political 'standoff' is what the oligarchs want for their own purposes.

The US 'election' is not real. Obama and Romney have the same policies overall, with surface controversies and differences (like 'gay marriage') to help fool the sheeple.

So the question is 'why' the oligarchs want this gridlock ... what purpose it serves for them ...

It makes Americans feel that there is nothing that can be done to help them

It helps maintain the illusion that American two-party politics is real

It increases the despair of Americans, to more accept what will be imposed upon them as the US oligarchical dictatorship deepens.

 

 

Mon, 05/21/2012 - 11:31 | 2447685 krispkritter
krispkritter's picture

Ineptocracy (in-ep-toc’-ra-cy) – a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

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