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Visualizing The American Taxpayer Relief Act

Tyler Durden's picture


While our previous visualization of the incredible impact of the ATRA seemed to clarify to many people exactly what 'compromises' had been made, the following infographic perfectly relates the stunning difference such a 'fair and balanced' act will make to both revenues and spending... just remember $1 billion (of $100 bills) would weigh 10 tons.



Source: Demonocracy


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Thu, 01/03/2013 - 22:36 | 3120923 bobert
bobert's picture

Perhaps we should revalue the dollar. Kind of like a reverse stock split. Let's say100:1 so that a penny buys what a dollar does today. Then do something radical like implement fiscal responsibility.

Thu, 01/03/2013 - 22:40 | 3120931 pacu44
pacu44's picture

Sort of like a Gold Standard???


Dolloar to gold and silver unmanipulated??



Thu, 01/03/2013 - 22:44 | 3120936 bobert
bobert's picture

A gold standard bothers me because I feel that it too (the supply of gold) can be manipulated causing spikes and crashes in the economy. However, I may be wrong - just saying.

Thu, 01/03/2013 - 23:02 | 3120993 e_goldstein
e_goldstein's picture

Yeah, you are right. The classic gold standard is almost the same fraud the CBs engage in today. Gold and silver allowed to compete as money in a free market is something else entirely.


Thu, 01/03/2013 - 23:19 | 3121021 bobert
bobert's picture

There have been good ideas for the control of currency outside of our current system, however, those who purport them seem to be  short lived if you know what I mean.

Fri, 01/04/2013 - 02:46 | 3121259 NewThor
NewThor's picture

Fuck the current currencies. 

I know what you mean.

Do you know what I mean?

Is Planet X Sedna, Comet ISON or other?

I've got a feeling we will find out this year.

Humanity used to believe planets were Gods.

Now they believe Fiat Currencies are the Gods.

I think we're about to go back to the Old School,

12,000 year Orbitz BITCHEZ!

Fri, 01/04/2013 - 07:54 | 3121445 GetZeeGold
GetZeeGold's picture



Mother, should I trust the government?

Fri, 01/04/2013 - 10:19 | 3121720 FrankDrakman
FrankDrakman's picture

Money get back I'm all right Jack Keep your hands off my stack Money, it's a hit Don't give me that Do goody good bullshit

Fri, 01/04/2013 - 12:03 | 3122190 Overfed
Overfed's picture


Fri, 01/04/2013 - 10:20 | 3121728 iinthesky
iinthesky's picture

Right, is that when Marduk comes back from Nibiru and the Plaedians show up with Quetzecoatl ?

Fri, 01/04/2013 - 08:39 | 3121488 JonNadler
JonNadler's picture

OK, none of these shills are associated with me

Fri, 01/04/2013 - 08:44 | 3121495 GetZeeGold
GetZeeGold's picture



We're aware Jon.

Fri, 01/04/2013 - 00:39 | 3121143 tmosley
tmosley's picture

History disagrees with you mightily.

The only crashes under the gold standard came about as a result of government overspending--usually on war.

Fri, 01/04/2013 - 01:20 | 3121161 CunnyFunt
CunnyFunt's picture

While I agree with your sentiment, and forgive me for being so anal, but history can prove nothing. There is no "THE" history of anything. ALL historical surveys, monographs and literature are subjective. The science of economics doesn't need history, only reason.

Heraclitus figured that out a long time ago.

Fri, 01/04/2013 - 04:01 | 3121310 NidStyles
NidStyles's picture

Uhh, Economics is the study of past action in anticipation of future action. If you are going to quote someone at least acknowledge that a 2000+ year dead guy may not have been at the pinnacle of rational thought. Mises and Rothbard both went over this in extensive detail.

Fri, 01/04/2013 - 16:17 | 3122316 CunnyFunt
CunnyFunt's picture

Maybe you should read Theory and History again, or even the first two chapters of Human Action. Apparently, you didn't get it the first time around.

Mises insisted that economics, not econometrics, is an a priori science, not an empirical science.

I'm sure he would have ridiculed your definition of economics in a way that only Mises could.

But who cares about epistemology, right?

Fri, 01/04/2013 - 08:30 | 3121477 JPM Hater001
JPM Hater001's picture

The philosphy lesson about truth being in the eye of the beholder is dandy.  The rest is bullshit.

Fri, 01/04/2013 - 09:22 | 3121560 Threethreethree
Threethreethree's picture

You are correct in many ways. Hericlitus said no man can step in the same river twice, for It is not the same river and he is not the same man.

Likewise, we, as time passes, are ever changing. As such, even economic policy at the personal level is different now for each of us, than it perhaps was even one year ago. Even if outer circumstance has changed little. As I see it, though inflation or deflation is upon us, even if we counter that demon exactly the same as our predecessors, the outcome may not be the same because WE are different.

Thus, the past does not matter. What does indeed matter is the present and the character of the man. In that respect the character of the man decides his fate, not history.

As Hericlitus says, "A man's character is his fate."


Fri, 01/04/2013 - 10:28 | 3121765 iinthesky
iinthesky's picture

No man can step into the same river twice? Really?

Fri, 01/04/2013 - 10:25 | 3121753 FrankDrakman
FrankDrakman's picture

Given your nickname, the fact you cite famous Greek historian Hairyclitoris is unintentionally hilarious to me.

Fri, 01/04/2013 - 11:01 | 3121909 MsCreant
MsCreant's picture

Clits don't grow hair, silly!

Fri, 01/04/2013 - 01:10 | 3121172 Harbanger
Harbanger's picture

"An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions."

Gold and Economic Freedom by Alan Greenspan-  Interesting to read....

Fri, 01/04/2013 - 06:42 | 3121398 Go Tribe
Go Tribe's picture

Or the government buying silver to back the dollar which causes a gold run, which happened in the 1800s.

Fri, 01/04/2013 - 10:41 | 3121806 AGuy
AGuy's picture

"History disagrees with you mightily."

You obviously failed history, or you learned using the books from the "minsistry of re-education" (aka 1984)

"The only crashes under the gold standard came about as a result of government overspending"

Some events that happened while the US was under the gold standard

Panic and Long Depression of 1873 (Down 33%)

Panic of 1907 (Down 30%)

Panic of 1910 (Down 15%)

Creation of the Federal Reserve.

the 1925 Housing Bubble and the 1929 stock market crash (Down 35%)

The little something about a Great Depression from 1932 to 1939.

Dollar devalution in 1933 under FDR (Private ownership of Gold made illegal by FDR)

Crashes happened not just because of war but over-extended credit, technology changes (aka death of the Buggy whip), natural diasters (Earthquakes, droughts,  disease), and many other causes.

As it stands, the US can never return to a gold standard. It owns too little gold and owns too much debt. Its also very dependant on Foriegn imports to run its economy. Before America can return to a gold standard, the US gov't must cease to exists. If the US did return to a gold standard, every foriegn gov't would convert thier FRNS for physical gold in the first hour of trading. Recall when the IMF sold. it was sold to China and India before the ink was even dry.  FWIW: IMF only source of its gold originated from the US. The IMF really didn't even own that gold, it was lend to the IMF to give it creditablity. the IMF gold sale was technically illegal.


Fri, 01/04/2013 - 08:05 | 3121455 Sudden Debt
Sudden Debt's picture

Why would you think politicians and banks would manipulate the economy?....


Fri, 01/04/2013 - 09:06 | 3121522 Jeff Lebowski
Jeff Lebowski's picture

Plus, gold isn't backed by anything.

Fri, 01/04/2013 - 13:36 | 3122652 post turtle saver
post turtle saver's picture

dollar to tungsten

Thu, 01/03/2013 - 22:45 | 3120944 Buckaroo Banzai
Buckaroo Banzai's picture

"Relief", my ass. What those cocksuckers do to the language is obscene.

Their contempt for the people they serve is monumental.

Thu, 01/03/2013 - 22:52 | 3120960 Al Huxley
Al Huxley's picture

They all read 1984.  Unfortunately, instead of taking it as a warning, they decided to use it as a playbook.

Fri, 01/04/2013 - 08:54 | 3121485 TwoShortPlanks
TwoShortPlanks's picture

'Wall Street' was financial porn and 'Eyes Wide Shut' became an upper-middle class Play Book.

As for the graphic; I bet you're glad the Fed owns all that worthless shit.

Thu, 01/03/2013 - 23:13 | 3121010 ball-and-chain
ball-and-chain's picture

What we need to do is get the ticks (Wall Street, London) off our backs.

We do this by raising interest rates.

However, nobody has the courage.

So we're all slaves to a corrupt banking cartel.

Fri, 01/04/2013 - 00:27 | 3121124 GoNavy
GoNavy's picture

That is effectively what we are doing with QE and what is happening with the PIGS in Europe.

Face it: the ugly truth is that the only resolution to the world's overarching debt is default by one means or another. Either creditors will get nothing (formal default); they'll get only part of what they expect (partial default); or they'll get devalation of the currency of the principal amount (effective default).  That goes not only for bondholder, but for retirees and other recipients of entitlements.

There is not the political will to pay down the debt, reduce the entitlements, or raise the taxes to pay the bills all coming due.  That leaves either default or unprecedented levels of growth and productivity to pay the obligations (and we all know the latter ain't happenin').

The only thing keeing the ECB from printing even more of its way to an effective default of the Euro is the German history of hyper-inflation in the Weimar Republic.  And as the children of that generation die off (they're in their 70's and 80's now), so too will the fear of hyper-inflation.  Germany, too, will concede to the demands of the deadbeat nations.

Fri, 01/04/2013 - 04:57 | 3121340 Seer
Seer's picture

"Face it: the ugly truth is that the only resolution to the world's overarching debt is default by one means or another."

This is, unfortunately (or, depending on one's views, fortunately), is not the inner-most layer to the onion.

TPTB don't want to peel this debt layer because there's yet one more underneath.  And That layer concerns the entire notion of growth, of limited/depleting PHYSICAL resources.  TPTB live off of growth, which is why the System is so ingrained with the growth meme.  If there was a clearcut means for going forward, such that TPTB would continue to preside, we'd have been there.  As it is now, however, they can only keep tossing the balls up in the air while the natural force of gravity continues to pick them off one at a time until it is clear that the entire gig is up.  Another ball is dropping:

Germany’s Downward Trend


Germany in 2013 is also a country whose banks are in notoriously risky condition; whose population is expected to lose 17 million inhabitants by 2060; and whose domestic automobile industry is reported to have produced 500,000 fewer cars in 2012 than the previous year.

In the short term, the Bundesbank asserts real G.D.P. growth will top out at 0.7 percent in 2012 and 0.4 percent in 2013. Not good. After a return to levels of around 1.5 percent, the O.E.C.D. said in another assessment that, without significant reform programs, Germany’s rate of expansion would dip under 1 percent from 2020.

Doubting voices are becoming louder. Alain Minc, a former economic adviser to President Nicolas Sarkozy, now describes Deutsche Bank as a “world problem” and said, “I’m convinced Germany will be worse off in five years. Its demography is bad. It has no significant gains in competitiveness. It’s at its apogee and will start to decline.”

Minc misses the all-to-critical point that Germany is a heavy importer of natural resources (energy being key).  I also don't believe that any of these folks are understanding how severe "economies of scale in reverse" will/can be.  BUT... the BIG POINT here is that the grow-or-die meme is starting to tear apart.

[Now] Where are the ZH folks who were stating that Germany's economy was strong and that it would be fine if it dumped the Euro and or left the EU?

Fri, 01/04/2013 - 05:16 | 3121351 GoNavy
GoNavy's picture

Actually, Germany's growth would probably be even less if it were to leave the Euro and return to the GDM.  It wouldn't be catastrophic (look at the GBP), but it would hurt the German export market.

Hiding inside the rubric of the Euro is the German economy's version of currency manipulation to the downside and Germany is probably second behind China (or maybe third behind Japan, these days).  That's why its always funny to hear their finance minister, Schauble, bemoan currency manipulation by other economies.  (Pot, meet kettle; Kettle, meet pot.)


Fri, 01/04/2013 - 09:14 | 3121538 trav777
trav777's picture

Germany's demography is horrible (and iceland and several others) only IF growth is the future.

Under a state of contraction, they are in great shape.  But, the end trend goes toward Children of Men, where you have to lock out refugees/immigrants who come to siphon off a share of the pie.

A resurgence of nationalism should be expected going forward.

Fri, 01/04/2013 - 01:18 | 3121177 yogibear
yogibear's picture

That's what Bernanke and the Fed's plan is.

But they would like to do it quietly without triggering the animal spirits.

Benanke and the Fed only want the animal spirits working for consumption and buying equities, not for dumping the US dollar.

Thu, 01/03/2013 - 22:38 | 3120926 tickhound
tickhound's picture

Looks like a DEFCON chart.

Thu, 01/03/2013 - 22:53 | 3120964 UnpatrioticHoarder
UnpatrioticHoarder's picture

Not sure I understand it, how do they represent a deficit, with nega-dollars?

Thu, 01/03/2013 - 22:43 | 3120938 Zer0head
Zer0head's picture

I like the concept of the graphic, but I think if they used Manhattan's skyline as a reference that might be more appropriate

Fri, 01/04/2013 - 08:42 | 3121493 TwoShortPlanks
TwoShortPlanks's picture

Will Hell do, it's closer?

Thu, 01/03/2013 - 22:44 | 3120941 Simplifiedfrisbee
Simplifiedfrisbee's picture

Ran by fear, dictated by greed.

Thu, 01/03/2013 - 22:45 | 3120945 fonzannoon
fonzannoon's picture

Look at all those dollar bills stacked up. Gives the nice impression that any of us has any of them

Thu, 01/03/2013 - 22:46 | 3120946 Snakeeyes
Snakeeyes's picture

Great visualization!

The Senate bill is fraud against taxpayers and favors crony corporatist interest.

Thu, 01/03/2013 - 22:49 | 3120953 howenlink
howenlink's picture

Looks like Legos.

Fri, 01/04/2013 - 00:29 | 3121129 GoNavy
GoNavy's picture

Yeah, but you can sell Legos on line for actual money...

Fri, 01/04/2013 - 11:07 | 3121940 MsCreant
MsCreant's picture

Gold for Legos you say? 

Thu, 01/03/2013 - 22:49 | 3120955 alfbell
alfbell's picture

Douglas French says it well here. If only the American people could learn.

Thu, 01/03/2013 - 22:50 | 3120957 blindman
blindman's picture
Just what do you think you are doing, Dave?

Thu, 01/03/2013 - 22:52 | 3120962 blindman
blindman's picture

03 January 2013
Thursday Night At Jesse's: 1938 War of the Worlds

Thu, 01/03/2013 - 22:54 | 3120967 q99x2
q99x2's picture

Infested with bankster scum I say.

Thu, 01/03/2013 - 22:54 | 3120969 Uber Vandal
Uber Vandal's picture

This article, written in 2005, could easily have been written today.

The average American in the year 2005 lives a fragile existence, in a struggle for survival that can be ended by missing a few paychecks. The carrot at the end of the stick which was formerly known as "the American dream" has been replaced by a whip that can best be described as the American nightmare of homelessness, and slow, early death. You no longer work to achieve a better life for yourselves and your children. You work to keep a roof over your head, and you pray that you don't lose it. You became a slave when fear replaced incentive as your motivation to work, but I still suggest that you work while you can, because if the company you work for can't send your job overseas, the U.S. government is allowing 2000 people per day to enter this country illegally, because they're willing to do your job for less.
It doesn't matter if you're a "white collar" or "blue collar" employee. If you're an American, you're too highly paid. There are billions of people who want your job, and your government is doing all they can to see that you lose it to them. You see, we're not really Americans anymore. Now we're just anonymous faces in the "global village," because our government has sold our nation to foreigners and international bankers, and the new bankruptcy law has doomed the American citizen to a life of debt slavery. They'll insist that illegal immigrants are only doing jobs that Americans refuse to do, and you'll probably believe it, because if you're watching the TV that shovels that crap, you probably still have your job. The illegal immigrants are doing jobs that Americans always did, and every unemployed American I talk to can't find a job anywhere. And just like the European immigrants that flooded this country before the economic depression of the 1930's, today's illegal immigrants also have no gripe with a government that has allowed them work for high wages in America, and send billions back to their homeland. Nor do they care very much about our constitution, bill of rights, or way of life. They're only here for what they can grab, and our government has welcomed them with open arms, because they're grabbing it from you.
You're already working much longer, and much harder, to achieve a much lower standard of living than the previous generation, and 25 percent of working Americans no longer even get a vacation. The Social Security retirement age has been raised to match the life expectancy of American males, so apparently, you're also expected to work until you're dead. When you do finally get a vacation, they only trip you'll be taking will be in a pine box, and that's only if you're one of the lucky ones. Most of us will only get the state-issued canvas bag that gets tossed into the pit with all the others. If you don't mind the fact that you'll be working until you're dead, you might also want to consider the fact that you'll get nothing for your labor, because this nation's economy is about to crash like a freight train, and when it does, everything you've worked for will vanish. After the depression gets ugly, and your family has made the adjustment from three meals per day to three meals per week, the newspapers will blame your hunger on "the economy," as if it were some magical force that uncontrollably ruined a couple hundred million lives. Nothing could be further from the truth.
Politicians and international bankers can manipulate national economies at will, much in the way the media manipulates your mind, and a decision has been made to impoverish Americans, because global government requires that everyone in the world have an equally low standard of living. Simply put, we're being robbed of all we've worked for, because our government wants us to be poor, hungry, and docile, dependant upon them for our existence, and in fear of them for our lives. The government of the United States is intentionally destroying the economy of the United States, because the politicians and the international bankers they work for have decided that the American way of life, and catering to the demands of the American constitution, is simply too expensive.
Regardless of how wealthy you think you are, you actually have no real money at all. The "federal reserve notes" that are in your wallet, and your bank account, aren't really money, but are actually only paper on a debt that can never be paid, not even by combining all the assets and labor of every American alive today. Any loan-shark with a third grade education will tell you "the paper's no good," and naturally, the foreign investors who allow us to float this debt, have come to the same conclusion.
What is commonly known as the "U.S. dollar," represents a debt that is owed by the U.S. federal government, to the federal reserve bank. The federal reserve bank happens to be the privately owned entity that lent the money that's represented by the paper in your wallet. The federal reserve act signed away everything you own, and the fruit of your labor as collateral on this debt, and as foreign investors are becoming increasingly unwilling to invest the $2 billion per day needed to cover the interest, our creditors will want to collect it.
About 90 percent of all Americans are mortgaged to the hilt, and would have little or no assets left if all debts and liabilities were to be paid.* Most Americans have taken advantage of low interest rates, and are now paying a mortgage on their homes. The booming real estate market has made every purchase profitable, because the price of a home always rises. The problem is that the price of a home today is incredibly over-inflated, and the real estate boom that's been keeping the American economy afloat, is about to bust. Interest rates are going to rise, and the price of your home is going to drop drastically, which will leave you stuck paying for a house that probably wouldn't pay the interest on your debt if you sold it. If you're lucky enough to remain employed, inflation will shred your paycheck until you can no longer make mortgage payments. This is when you need to remember that when a nation's economy collapses, the wealth of the nation doesn't disappear, it only changes hands.
Millions of Americans are about to be tossed into the street, and because we're a kinder and gentler America, from the street they'll be tossed into shelters. Once in the shelter, they'll be wards of the social service system, which will make sure they all have food, and a bed to sleep in. In exchange for that food and shelter, the "welfare reform" act will put them to work at jobs where they will collect no additional salary. I guess the idea of "welfare reform" is a lot more acceptable to Americans than "forced labor" but regardless of what you call it, many Americans will soon experience slavery once again, and the slaves are not just sweeping public streets. Under the welfare reform act, many Americans are being put to work for private companies for no wages other than the cost of their food and shelter, both of which constitute the bare minimum requirements of survival. By causing the economy to collapse, and then "saving" the poor, our government can legally force millions of Americans into slavery. The new slavery will be blamed on "the economy," and it will employ a much larger percentage of the population than it did before the civil war.
To understand how they're accomplishing this, we need to turn our thoughts back to our monetary system, because due to the fact that it is no longer based on the gold standard, our government is in control of the money supply, and that gives them the ability to cause rampant unemployment, which is exactly what they're doing. The framers of the U.S. constitution protected us from this brand of tyranny, but because Americans were foolish enough to ignore and/or trust their government, they will become slaves, but most of them will blame themselves for their plight.
Article 1, Section 10, of the U.S. constitution clearly states that "no state shall... make any thing but gold and silver coin a tender in payment of debts." The constitution's prohibition of "fiat money" (what's in your wallet) guarantees that the wealth of the nation remains in the hands of the people, which leaves the government incapable of stealing the population's wealth, as they're doing today. You can collect all the dollars that you like. Our government decides what they're worth, and by keeping the presses working overtime, they're insuring that the dollar will soon be worthless.
The U.S. department of labor has also changed the way it collects data regarding unemployment, which allows for the fraudulent unemployment figures that are printed in the newspapers, and allows working Americans to believe that things aren't really that bad. Their new "household survey" system avoids counting most of the poor by basing unemployment figures on telephone surveys. A real estimate, based on population and payroll taxes, reveals that about 25 percent of the American workforce is presently unemployed, and that will eventually force them into the social service slavery system. Unless your mortgage and debts are completely paid off, and you can still pay your property taxes, there's a good chance you'll soon be joining them. Welcome to the third world, and to an American world, where slavery is legal once again.
What are you going to do when your government forces you into slavery? You can't avoid it, because if you're homeless, you'll be rounded up and brought to a "shelter", where you'll be fed, and probably medicated if you're not happy to be there. With so many people becoming homeless, it will be easy for them to find an apartment for you, and social services will pay your rent, and give you food stamps.
Soon after that they will find you a job, but naturally, you won't be taking home a paycheck because you're in debt to the social service system. They'll tell you that you're working your way back to independence, but since your salary will never be more than your expenses, you'll work for free until you're dead. If you refuse to work, the government "assistance" will be cut off, you'll be back out on the street, and you'll probably do your next job with a shackle around your ankle.
I'm not asking that you waste the time or paper required to write your congressman, because they don't care what you think anyway. What I am asking you to do is to remember something. When the economy does crash, and you're forced into the street. I want you to remember that this isn't your fault, and it's not the result of a "bad economy." Please remember that you're poor, hungry and homeless, because that's where our government wants you to be, and they intentionally destroyed the U.S. economy because they want you to suffer, and beg. And regardless of how bad things get, never sell your rifle. -- Jolly Roger
"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens..... Lenin was certainly right." - John Maynard Keynes*
*90 percent of all Americans are mortgaged to the hilt, and would have little or no assets left if all debts and liabilities were to be paid. --- Rep. Traficant to U.S. Congress.
**John Maynard Keynes is the economist for whom our present monetary system is named.
Thu, 01/03/2013 - 23:15 | 3121012 sitenine
sitenine's picture

Brilliant read. Thank you. I especially liked, "This is when you need to remember that when a nation's economy collapses, the wealth of the nation doesn't disappear, it only changes hands." YES!!! Fucking brilliantly succinct. The assets go nowhere, of course, because assets are real and tangible - the real WEALTH of the nation - the 'economy' is literally nothing but paper changing hands, but interestingly, that paper also determines who gets the REAL assets in the end. It doesn't seem right. No Sir, it doesn't seem right at all.

Fri, 01/04/2013 - 00:36 | 3121140 AT
AT's picture

Of course wealth does disappear when an economy collapses so this is completely wrong. The wealth of an economy is defined by both its assets and its productive capacity. And economic collapse and malinvestment destroy useful productivity. 

Fri, 01/04/2013 - 01:41 | 3121176 sitenine
sitenine's picture

Absolutely true, but in my opinion that would be a short-term problem. Humans, when pressed hard enough, are extremely resourceful. It is also my humble opinion that we don't need some fucking bankster to tell us how to go about our business, so.. just maybe.. we'd be better off. The trick of course is to hold onto your assets during a collapse, and during a collapse the old adage of "if you don't hold it, you don't own it" becomes your reality. Just sayin'..

Fri, 01/04/2013 - 10:59 | 3121899 AGuy
AGuy's picture

"If course wealth does disappear when an economy collapses so this is completely wrong. The wealth of an economy is defined by both its assets and its productive capacity."

To suppliment your statement:

In the case of America, the Wealth is an illusion, created by a borrowing binge and propped up by foolish creditors permitting the illusion to grow into a monster. Much of the Wealth in modern times is temporary. All of it requires cheap and abundant energy to be sustained. Take away the gasoline and diesel fuel and the Wealth vanishes, since the infrastructure cannot operate without it. Since Oil is a finite energy source its only a matter of time before all wealth as we know it vanishes.


Fri, 01/04/2013 - 09:51 | 3121656 onthesquare
onthesquare's picture

The assets go nowhere, of course, because assets are real and tangible

But the value of the asset is only what you can trade it for.  If it is food, shelter, gold, or protection its’ asset value changes as its’ market value changes and that will depend on the urgency of that trade. 

Sure assets are real but not necessarily tangible in its fullest meaning.  Food may be of value one day but rotten at the end of the week and therefore of little value.

An interesting survey would be to find out how many people are spending more time on the firing range.

Fri, 01/04/2013 - 00:17 | 3121109 Matt
Matt's picture

You can just provide a highlight and a link, rather than copying an entire article and then linking it anyways.

Fri, 01/04/2013 - 00:31 | 3121134 blindman
blindman's picture

a double reading is recommended.

Fri, 01/04/2013 - 10:40 | 3121804 edifice
edifice's picture

So says the blind man. Nyuck Nyuck Nyuck.

Sat, 01/05/2013 - 12:44 | 3125221 blindman
blindman's picture

check this link.
How It All Happened…

Fri, 01/04/2013 - 00:32 | 3121136 Seasmoke
Seasmoke's picture

Good job. Got just about everything correct in 7 years. Manipulated Interest rates looked like only hiccup.

Fri, 01/04/2013 - 05:10 | 3121346 Seer
Seer's picture

"The average American in the year 2005 lives a fragile existence, in a struggle for survival that can be ended by missing a few paychecks."

Well, how comfy we've become.  Consider that the majority of humans on the planet are in this very state.  And then consider that this is the way it's been throughout human history (except for a fraction of the world's population over the course of the last 150 years or so [which correspond to the consumption of cheap energy]).

"The government of the United States is intentionally destroying the economy of the United States, because the politicians and the international bankers they work for have decided that the American way of life, and catering to the demands of the American constitution, is simply too expensive."

The fucking "economy of the United States" has been a Ponzi from the start!  That's where the "intentional" comes in.  This ain't something new: AND, it goes back WAY before anyone even thought of any "United States of America."  No, what people are seeing is the same fucking cart, only the cart, continuously being loaded with "growth," can no longer carry the weight and its wheels are starting to shudder, causing the cart to have to be slowed down.

If by "expensive" we mean that the cost in natural resources is too high, then yes.  But, again, this has nothing to do with any governing body, OR, "system," it has to do with the physical world.  Remove ALL governments and crank up resource consumption and the cart would STILL collapse.

Sorry, but this is just another diversion away from our physical reality.

Fri, 01/04/2013 - 10:11 | 3121696 azzhatter
azzhatter's picture

The elites have never liked the middle class or upward mobility. Poor people are much easier to manage. When people get a little extra money they get that silly notion of freedom.

Fri, 01/04/2013 - 09:19 | 3121554 trav777
trav777's picture


The economy is imploding because oil peaked.  Economic GROWTH requires a GROWTH in all of its inputs; at a fundamental level, energy is the alpha input of all inputs.

Aggregate energy supply is in contraction.  Consequently, aggregate economies are in contraction.  It's a simple matter of how many muffins can you bake with a certain input of flour.  Decrease, the input, decrease the output.

A system built on a necessary assumption of growth will go kaput when growth stops, nevermind contraction.

Thu, 01/03/2013 - 22:56 | 3120978 monad
monad's picture

I like your graphics but I visualize it in megatons.

Thu, 01/03/2013 - 23:14 | 3121014 oddjob
oddjob's picture

The unmarked semi trailers of $100 bills add credence to the graphic.

Thu, 01/03/2013 - 23:26 | 3121037 booboo
booboo's picture

What's in your wallet? The answer is contained in the question the bag boy at Piggly Wiggly ask before he bags your inflated groceries.

Thu, 01/03/2013 - 23:36 | 3121056 Bollixed
Bollixed's picture

The problem with visuals like the ones above is those fuckers in CONgress look at them and say to each other, "See, I told you we're just playing with Monopoly money!"

Thu, 01/03/2013 - 23:54 | 3121067 MrSteve
MrSteve's picture


you reminded me of the first Arab Oil Embargo and gas rationing in the 1970s. The US government response was to issue rationing tickets, 4:3 size-coupons with Geo. Washington and a big numeral 1 on the face side.

How did these rationing certificates appear so swiftly and universally? They were preprinted and stored, in tractor-trailers parked on Army bases scattered all over the American countryside, just waiting for an emergency to be declared.

Nerds everywhere should assume the same plans are in place for currency replacement. The government is not made up of of completely unprepared goofs. The preparations they have made may mean you are trashed in a currency revaluation (if you think that hasn't already happened), but that doesn't mean "they" are unprepared.

Are you prepared?   if they are prepared to trim your currency's standing by 90 - 99 %? Anything less than a 100:1 would be a waste of everyone's effort, so expect nothing less. At 100:1, gold would be priced at $16+ per ounce, not too far from the "historical norm". A "cash" revaluation of 90% would take a gallon of gasoline from $3.49 to $.35. Ditto for your savings account, 401K, bank account and Wall Street balances, on account. Are you ready to lose 90+% of your valued wealth?

Expect the unexpected and be prepared, with silver and gold which will hold their value while all other forms of wealth are "repriced" to government's advantage. What else can you do, really? Get ready now.


Fri, 01/04/2013 - 01:10 | 3121171 The Joker
The Joker's picture

You lost me there buddy.  $16/oz?  Huh?  And exactly why would or how could they revalue gold? They can't just revalue gold to any price they want, in par with any other currency.  Demand will set the value of gold, not the government. 

Fri, 01/04/2013 - 02:48 | 3121262 awakening
awakening's picture

If Gold ever went back to that amount I'd back a semi-truck and hope I could load it fast enough before it jumps to 50K per ounce.

Fri, 01/04/2013 - 12:57 | 3122475 MrSteve
MrSteve's picture

The gasoline rationing tickets were an emergency currency which was used to supplement the Federal Reserve Notes, not supplant them.

A new currency for the US, maybe called Federal Treasury Notes or US Treasury Deposit Notes or whatever name sounds credible will replace today's Federal Reserve Notes- the dolalr. Those NEW currency bills will be revalued against gold. All currencies are valued against gold, whether you want to call it the gold standard or the price of gold.

One new dollar will equal a 100 old dollars (or maybe 1000 by the time this rolls around) and there is your price of gold at $16 per ounce. With this standard, you will be back to working for 10 cents an hour. Currency revaluations have happened countless times throughout history, always leaving the old currency worthless, like Confederate States dollars or US Continental dollars which were repurposed as liners inside the soles of boots and shoes. The history of America wrecking its currency is long and well documented. The expression "sound as a dollar" isn't heard anymore, is it?

A new currency won't be popped on the US citizens until the Government has as many sheep corraled in its pen as is possible. The only way the infinite debts of the fiat nations can be paid is through worthless currencies which will then be replaced with "new" currencies. Read more history of currency, etc and you'll see this is all old hat stuff, been going on for all of human history.

Read an intro to the topic here and good luck to you.

Fri, 01/04/2013 - 05:24 | 3121360 Seer
Seer's picture

I always avoid painting with numbers (though I do use the $3/day figure a lot- one of the few things that I'll use a number to denote some sort of value).  What matters is AFFORDABILITY.  And all one needs to know is that PHYSICAL things, or things comprised of physical inputs, will become LESS affordable.

Keeping this in mind I see that there can be no "advantage" given to government.  The same AFFORDABILITY measure applies to it as well.

Two key takeaways:

1) Physical things (we'll be less about the virtual) WILL become increasingly less AFFORDABLE;

2) EVERYONE will be looking at working HARDER/MORE (good news is that a lot of the talking-head types will be forced to actually work in order to feed themselves).


3) The rules of the game (means of measurement) will become increasingly irrelevant because the game will no longer be the same (IMHO NO ONE CAN DICTATE WHAT IT WILL BE [sure, some will try, but it won't work]; but, I figure that basing future trends on an historical -FULL historical- basis is likely to provide the most probable projection- think Food, Shelter and Water.]).

Thu, 01/03/2013 - 23:52 | 3121075 A Lunatic
A Lunatic's picture

I'm just glad they fixed the fiscal cliff..............

Fri, 01/04/2013 - 05:29 | 3121364 Seer
Seer's picture

It's gone, man!

They dug it out!  Yeah, that "keep digging when you're in a hole" thing really does work! </sarc>

OK, I had to take some liberties.  Sometimes I'm a little slow, but, this is sure a great example of the power of propaganda.  Rather than "cliff" it should have been about being in a hole, which is really what we're in, not flying high on the ledge of a cliff, which implies we need only back away from the edge (rather than all the hard work to crawl out of a hole).

Fri, 01/04/2013 - 00:00 | 3121087 tooriskytoinvest
tooriskytoinvest's picture

Worst Since The Early 1980s: 65 Percent Of Americans Believe That 2013 Will Be A Year Of Economic Difficulty


Fri, 01/04/2013 - 01:29 | 3121173 sitenine
sitenine's picture

I deleted this comment because I'm an idiot.  Thank you tooriskytoinvest. Carry on.

Fri, 01/04/2013 - 05:18 | 3121356 I am Jobe
I am Jobe's picture

I hunkered down since 2003 and have been in recession ever since. Dumb Sheeples fell for the scheme.


Fri, 01/04/2013 - 01:25 | 3121186 yogibear
yogibear's picture

Wait until all those overseas US dollars come back to the US when countries dump US dollars all at the same time. The Federal Reserve will get all the inflation they want and more.

The US Federal Reserve can drown in excess dollars they created.


Fri, 01/04/2013 - 05:31 | 3121365 Seer
Seer's picture

I'm always thinking in farmer-ways- anyone know whether USDs compost well?

Fri, 01/04/2013 - 06:05 | 3121375 negative rates
negative rates's picture

No, but they heat up well and expand in the microwave.

Fri, 01/04/2013 - 09:19 | 3121553 Seer
Seer's picture

Does Ben know about this?

Fri, 01/04/2013 - 08:06 | 3121458 hooligan2009
hooligan2009's picture

excellent point: there were, after all, more dollars circulating outside the US than inside, prior to the GFC.

the Fed has created a lot of digits that have gone precisely nowhere since the GFC, but it is still a case of exchange rates being determined as much by which central bank prints the fastest (supply) against who wants to avoid the last musical chair (demand). 

gotta love the amount of global money printing as it stands now. global GDP = 70 trillion, global intervention = ?

this is where the poor SOB will be when the music productive is it when central banks own the output of the economy and its debt? after all, default rates imply that the fed owns the assets of the defaulter. 

the Fed better pray that the default rate does not increase from the very low level of a few percent of all investment grade and zero for governments (courtesy of its own intervention) to a real and more normal 4%.

Fri, 01/04/2013 - 09:30 | 3121574 Seer
Seer's picture

I think that the Fed is positioned no more than a booster rocket.  At some point it'll be burned up and discarded.  And, really, it's a perfect poster for modern consumerism.

I don't think that any of this is going to ever really circulate.  Instead, it's all stuff to paper over bank losses, which enable them to continue to launder fiat to one another and to keep business doors functioning.

Doesn't mean, however, that we won't see currency collapse.  After all, when everything else is meaningless (irrelevant for future use), the very symbol that has supported it will also become meaningless.  I do not believe that hyperinflation is necessary to kill the currency: if it does occur I figure that'll it happen so fast (like algo trading) that it'll be over before it even started- all will be left wondering WTF just happened; this will save us a lot of energy from undergoing prolonged recalculations on the value of the currency itself [a bit tongue-in-cheek]).

Fri, 01/04/2013 - 01:36 | 3121196 Jam Akin
Jam Akin's picture

And still the neurolinguistic programmers employed by the authorities carry long as they can cash their paychecks.

Fri, 01/04/2013 - 01:40 | 3121201 H E D G E H O G
H E D G E H O G's picture

I believe WE would all be truly amazed at the corruptness of our politicians. Backroom payoffs, hidden bank accounts, "brown envelopes" stuffed with cash, whores, cars, homes, drugs, and the usual assortment of indidious bribes, blackmail, kickbacks and graft that goes hand-in-hand in DC in particular, and across the government in general. Probably starting around the Nixon era, (this cancer has always been part of the body politic historically), cronyism between big corp. & big gov. was warm and fuzzy. Further down the road, the Bush/Clintonite/Bush era gave us Nafta on the premise it would expand our "free trade" and export enviroment. What it did was open the gates for Big Corp. to ship our work and jobs overseas. More profit, less/no taxes, bigger bonuses, higher stock value. When that wasn't enough, Big Corp. entices the already drunken greed of our politicians to look the other way when immigrants flood in. Illegal, legal, and otherwise. They'll work for less than the American sheeple because they are working for MORE than they've ever made before. Big Corp. gets a good deal both ways, they get cheap labor overseas, and then get cheap labor here in the Homeland, a win/win situation for Big Corp. and their bought off whore legislators. I don't know how it will end, but it won't be pretty either way. I think before it's all over, blood will be spilled, and right vs wrong, good vs evil, the outcome will be either an enslaved world, or a reset to some semblance of RIGHT. just sayin......................

Fri, 01/04/2013 - 05:36 | 3121366 Seer
Seer's picture

Not meaning to nitpick, but NAFTA didn't ship jobs overseas, across adjacent borders perhaps, but not "overseas."

Anyway, NAFTA did wonders to push up cheap labor in the form of ex-farmers (displaced by BIG AG) from Mexico.

Also keep in mind that MANY exported jobs were lost to ROBOTS: even if factories came back to the US they'd have far less humans in them then before they left the shores (even if wages were dirt low).

Fri, 01/04/2013 - 07:59 | 3121450 hooligan2009
hooligan2009's picture

NAFTA, GATT, SNAFU, FUBAR, IMF, TARP, PIIGS, IBRD, OMT, SOMA - one abbreviation is as good as another

Fri, 01/04/2013 - 09:22 | 3121559 Dapper Dan
Dapper Dan's picture



Made In USA

by robots made in China


Cheap Robots to Replace American Jobs - Unfortunately, They Will Be Made in China.


Many Americans believe that China is the reason we've lost so many jobs. Whereas, it is true that they have been engaged in currency manipulation, and often unfair trade practices, they aren't doing anything any differently than many of our other trading partners. Perhaps, the reason we notice it more is because China is so large, it has 1 billion people, and it now produces nearly 40% of what the world consumes. Still, if you think that the United States will gain if China loses, you might not be thinking this through correctly.

Read More at:http:,-They-Will-Be-Made-in-China&id=7100641

Fri, 01/04/2013 - 09:35 | 3121589 Seer
Seer's picture

I'd run across an article from the business of automation that essentially stated this.  I keep pointing it out whenever I hear people clamoring to "bring our jobs back."  I figure this is all a part of a propaganda campaign to provide a safe, subsidized retreat for returning companies; trade wars will cause unstable situations for non-native companies, and rather than risk being taken over and or looted, such companies will seek to flee back to their homeland (being welcomed back as "heroes" [seen this movie way too many times- I'm getting old!]).

Fri, 01/04/2013 - 01:45 | 3121209 auntiesocial
auntiesocial's picture

is it better to know what is going on and not have the money or resources to really protect yourself or be blissfully ignorant like the other 97% of America? 



Fri, 01/04/2013 - 02:16 | 3121229 Jam Akin
Jam Akin's picture

Personally I can enjoy relatively the good times we have now much more if I've assessed the situation and done my best to prepare.  After we hit the eyewall there will be some very hard times for today's blissfully ignorant regardless of their resources.  No matter how much you have, you can always do something to get ready with some clear foresight/advance planning.

Fri, 01/04/2013 - 05:54 | 3121371 Seer
Seer's picture

"No matter how much you have, you can always do something to get ready with some clear foresight/advance planning."

Yes.  It's really about being able to adjust.  I've found that having a lot of stuff can also be an anchor (resulting in the Big Ship Syndrome).

Most importantly it's one's frame of mind. And at the basic level this maps to having an survival instinct, a desire to live.

Give up "hope" and just get to DOING.

I've found this to be quite enlightening as pertains to one's mental positioning- from Derrick Jensen's Beyond Hope article (

PEOPLE SOMETIMES ASK ME, “If things are so bad, why don’t you just kill yourself?” The answer is that life is really, really good. I am a complex enough being that I can hold in my heart the understanding that we are really, really fucked, and at the same time that life is really, really good. I am full of rage, sorrow, joy, love, hate, despair, happiness, satisfaction, dissatisfaction, and a thousand other feelings. We are really fucked. Life is still really good.

Sat, 01/05/2013 - 09:10 | 3124992 blindman
blindman's picture

George Carlin - advertising and bull shit
" i call this piece advertising. ..
it's our way of saying thank you. " g.c.
it is always good for a blindman to here the
reports from a seer. thank you for your posts
and the time you put into it! seriously,
no bullshit.

Fri, 01/04/2013 - 06:01 | 3121373 Seer
Seer's picture

Ultimately it's about one's peace of mind.  Either way people are best served giving up the notion of "hope."

Problem, however, is that in order to "test" the two states one cannot go back to "unknowing."  Some just might not be able to handle the RED PILL.

I'd picked up the saying "you can kill me but you cannot eat me" as an aid to managing difficult situations.  Of course, this might not be so applicable in the future (as food becomes scarce; or in cases of run-ins with Jeffery Dahmer of Hannibal Lechter types).


Fri, 01/04/2013 - 06:06 | 3121374 Seer
Seer's picture

If anyone's around, check out's Future's listing!   Either Ben's magic is really working, or the site's got some stuff really messed up.

Cut and paste of the contents as of this moment...

Futures Last Change Change % Crude Oil 91.89 -1.03 -1.11% Natural Gas 3.2200 +0.0200 +0.63% Gold 1639.20 -35.60 -2.13% Dow 13316.00 +13312.00 +332,800.00% S&P 500 1454.00 +1454.00 +Infinity% Nasdaq 100 2728.75 +2725.25 +77,864.29%
Fri, 01/04/2013 - 06:11 | 3121378 negative rates
negative rates's picture

Situation normal, all messed up!

Fri, 01/04/2013 - 07:57 | 3121448 hooligan2009
hooligan2009's picture

aka SNAFU - situation normal all fucked up

Fri, 01/04/2013 - 07:11 | 3121418 l1b3rty
l1b3rty's picture

Soon to be remembered as the Taxpayer Theft Act. TTA Da! The only relief is silver bullion, precious metals and maybe bitcoin?

Fri, 01/04/2013 - 09:14 | 3121539 onthesquare
onthesquare's picture

I just realized the game "Monopoly" is life.  There realy is a "get out of jail free card" and a "pass GO, get $200 dollars".

That means that there must be "bank has made an error in your favor, collect $75 dollars".

I feel so much better.

Fri, 01/04/2013 - 10:32 | 3121744 Jam Akin
Jam Akin's picture

Some key differences:   the get out of jail card isn't free, passing Go takes more work than just rolling the dice and bank "errors" are never in YOUR favor!

Do NOT follow this link or you will be banned from the site!