Put your eye on 2008 and work your way to today. This is nothing but a report card of the FAILURE of the chosen one and his congressional minion’s policies of insolvency and destruction of the capitalist economy we all depend on for our future livelihoods. Millions and millions of people forced onto the dole because of the lack of the policies to create the conditions for the private sector to GROW and EMPLOY them!
ROCKETSHOTS in the growth of something for nothing constituents wrought by a 20%+ increase in leviathan central government since 2009. How did the chosen one only win the election by such a narrow margin with this army growing this briskly?
This is the wholesale disembodiment of the private sector and economy as once productive citizens are moved to the ranks of the disenfranchised by the policies emitting out of the district of corruption. Those are the rations of slaves as Alexis de Tocqueville so eloquently observed:
“It is not an endlessly expanding list of rights ---the “right” to an education; the “right” to health care; the “right” to food and housing. That is not freedom. That is dependency. Those are not rights. Those are the rations of slavery – hay and a barn for human cattle.”
There is not compassion, this is betrayal as the central government destroys the ability and incentives to save, invest, be self-reliant, create small businesses, and outlaws capitalism. Regulating demand to the special interest supporters and crony capitalists as the pie of economic activity SHRINKS under their policies.
The failure of current government policies to encourage and facilitate private sector growth is MASKED by Orwellian GOVERNMENT economic stats. Where growth in debt and consumption is reported as economic growth. When in reality it is the consumption of the future by socialists and something for nothing constituents today.
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In the two years between the election in 2008 and 2010 the greatest accumulation of legislation, additional spending and its spawn known as regulations have been wrapping themselves around the economy like a PYTHON and now the SQUEEZE to death of the economy and capitalism is at hand.
FINANCIAL and MONETARY Armageddon are at hand as well, as it is quite clear as QE infinity is rapidly being EXPOSED as the program it is: FUNDING the moral and fiscal insolvency of the US government, financial repression and a toxic waste dump of bad bank assets known as residential mortgage backed securities.
Dodd Frank (enshrinement of too big to fail and crony capitalism rolled into one), the Affordable care act (socialization/redistribution of the health care and, of course, crony capitalism) and the stimulus bill (permanent expansion of the executive branch by over 20%) have and are doing what was predicted. There is NO ESCAPE from their DEADLY EMBRACE.
As a participant in the financial industry for almost 3 decades it is impossible to ignore the implications and broad outlines of what Dodd Frankenstein is becoming. It is the wholesale destruction of the smaller players and future competitors to the Too big to fail banks. They are simply being REGULATED out of business to solve and prevent problems which DON’T exist. Political solutions to practical problems whose unintended consequences will seriously IMPAIR the ability to stop the predators the banking industry has become.
The financial industry is being dismantled with the spoils going to the banks which control those inside the beltway. For those of you with short memories the futures industry was an oasis of stability during the global financial crisis in 2008. Not one firm failed or had to be bailed because of the central clearing mechanism assured counter party solvency throughout the crash. Everyone was margined up every day (with no exceptions) or blown out as weak hands fell to stronger ones.
Contrast this to the wholesale insolvencies in the financial capital of the world known as New York. As Warren Buffet famously said referring to financial liquidity: “when the tide goes out we find out who was swimming naked”. Most if not all were! Too big to fail is crony capitalism with a government guarantee, obscene!
Reckless bankers at Bear Stearns, Washington mutual, Wachovia, Lehman Brothers and many more met their demise. Overtly over $700 Billion was sent to Wall Street known as the troubled asset relief program (TARP), and COVERTLY another $15 trillion (15 million million) slipped out the back door of the Federal Reserve and was UNREPORTED at the time. But they had one advantage; they controlled the beltway through various K street lobbying operations.
So Dodd Frankenstein was written in a manner in which the benefits flowed to the too big to fail banks and brokerages and the costs and nonsensical regulations to imaginary problems sent to their smaller competitors. Bankrupting them in the process and creating opportunities to roll them up as was done in the great depression. In fact, it was modeled on that period when FDR destroyed the local banking systems and transferred/legislated their businesses to the biggest industry participants.
In conclusion: What is transpiring in Washington DC at the moment is a fight over prudence versus an expansion of wholesale moral and fiscal insolvency of the welfare state socialists. Is it too late to stop the destruction of the future by the policies of the beltway?
My opinion is yes.
Contrary to the administration’s BELIEFS, this is not a monarchy and dictatorship. It is a constitutional republic with three coequal branches of government. The legislature is not supposed to be a RUBBER stamp like a BANANA republic. All legislation and spending must come from negotiated agreements. The only thing you can expect to be agreed on is more spending and more government then both sides inside the beltway will WIN.
The very future of the republic is what is at STAKE in the DEFICIT and BUDGET battles, brass knuckle brawls are called for. But in REALITY NONE will occur. It is IMPERATIVE that the American people are told the truth (the numbers in this commentary), unfortunately no one has the courage to do so on either side if the fight.
Authors Note: Most of the world and investors are operating with EYES WIDE SHUT and in willful blindness for which they will pay a price. Have you diversified into investments which have the potential to thrive regardless of what unfolds? If not CLICK HERE and I will show you how we do so. No one knows when the “you know what” will hit the fan. But if you aren’t already in place it will probably too late to do so.
The sequester was the first example of government spending RESTRAINT in my 57 years (I thought I might faint when it happened), never to be repeated till Mother Nature and Darwin strike the inevitable blows which will CRUSH the imprudent and everyone who is under their grasp. Also known as the DEVELOPED world.
For the debt to be dealt with Economic growth must occur. All growth today is debt masquerading as growth. This is the greatest blood sport in history as those that don’t produce insist on eating those that do (aka cannibalism), destroying future wealth creation critical to economic survival. Only those on the buffet table will resist this as to not do so is their demise. Of course, this is what originally occurred during the American Revolution. Today those fights are going to be refought.
This is a fight for freedom versus dominance by and for elites. It is history repeating as it so often does. The stakes are high and politics is the ultimate contact sport, as it is eat or be eaten and survival of the fittest.
Throughout the centuries governments and royalty have tried to create wealth out of thin air. By printing it, debasements of Real money such as silver and gold (roman denarius, etc.)or through alchemy like changing lead into gold. Ultimately all failed as wealth cannot be printed out of thin air and their financial and currency systems COLLAPSED as confidence was lost when people WOKE UP! This time will be NO DIFFERENT, only the timing is in question.
But in 1945 at Breton woods and in 1971 at Breton woods II the ability to print money out of thin air was REALIZED. The substitution of US treasury paper for real reserves such as gold and silver began. Now it is complete, treasury paper and dollars are the definition of REAL risk free money. They are the gold standard of the global financial system and an official default would change their definitions forever.
The privilege of Seigniorage (printing of money out of thin air) is inculcated in Washington DC, it is the source of their power, it is part of the ongoing business plan of socialist progressives and their Keynesian economic models. The thought of losing the ability to prey upon the public and everyone in their financial and currency systems is the one unthinkable option and that ability will not be surrendered at this point. The collapse lies in the future as too many still live in the matrix/looking glass for that to happen now. Their illusions will be guarded at all costs. The death of the dollar is FAR AWAY as it is woven very deeply into the financial system and it is the only currency in the world where the shorts and the longs don’t want it to change. The shorts print it endlessly and the longs are trying to store wealth in it. Both live in an illusion. Additionally if the US was FORCED to balance its budgets now, US GDP would crater exactly the size of the deficit (which is debt masquerading as production)of about 4%, instantly sending politicos in Washington into unemployment at the next elections.
Although there is a lot of wailing, bombast and gnashing of teeth over the debt ceiling and budget fights there is one thing you can count on. Don’t worry, they will PRINT THE MONEY….
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