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Guest Post: Waking Dreams End Unpleasantly

Tyler Durden's picture





 

Submitted by Brandon Smith of Alt-Market.com,

Whenever I endeavor to explain America’s current economic situation to a person who likely receives most of his information from skewed mainstream news sources, I try to use two comparisons; the Great Depression, and Weimar Germany, because what we are experiencing is actually a combination of elements from both events.  Some people, unfortunately, have little understanding of the Weimar hyperinflationary crisis, but at the very least, the imagery of the Great Depression is present in the minds of most Americans, if only through television and film. 

When the depression is mentioned, they begin to grasp the gravity of our fiscal disaster, or at least what I am trying to convey.  However, those slow on the draw almost always sneer at the validity of the threat.  After all, during the Great Depression, there were bank runs, endless soup kitchen lines, roving masses of dirty homeless drifters looking for employment, shanty towns, and desperation everywhere.  We’ve all seen the old stock black and white photos, and the America of today looks nothing similar… 

We have shopping malls and imported fineries.  We have sports cars and HDTV and video games and iPads and Disneyland and pharmaceuticals in every color of the rainbow!  We have tract homes and gated communities and condos and beach houses and summer vacations and first-class flights and texting and nightclubs and lattes and credit cards!  When we turn on cable news, what do we see?  Progress!  Glorious progress!  All is in “recovery”.  All is as it was yesterday.  All is well…

For the average unaware citizen, as long as the commercials and the fast food continue, there is nothing to be concerned about.  What they have overlooked is that in this country we have had for at least the past decade the illusion of prosperity, and nothing more.  Our modern citizenry looks back at the Great Depression and sees a deteriorating exterior that matched the true state of the interior crisis.  They look at today, and see a fresh, glimmering, glossy exterior that cleverly hides the rotting financial sinew underneath.

They do not grasp how today’s implosion could be worse than that of any crisis yet seen in our history while still maintaining a visual facade of working order. 

In recent articles I discussed the black magic of the stock market, and summarized a position I have held for a very long time: 

That the Federal Reserve has been injecting a very large percentage of its QE, or fiat stimulus, into the Dow in order to keep the market propped and seemingly prosperous.  That this has been done by fueling international banks with capital and then allowing the institutions to flood stocks with purchase orders as well as direct interventions by the Fed itself. 

What seemed obvious to those of us in independent economic analysis has been called “conspiracy theory” for the past few years.  Finally, the cat has been let out of the bag by former Fed Chairman Alan Greenspan (the same man who admitted that the Federal Reserve is an independent entity that answers to no one, not even Congress, ending decades of misinformation).  In the following interview, Greenspan states quite nonchalantly that “only the stock market matters”, meaning, that the market is no longer a reflector of legitimate economic health or decrepitude, rather, it has become a primary psychological driver.  For Greenspan and the Fed, fundamental indicators like true supply and demand are of no importance.  The market must be kept inflated at all costs, because its success, no matter how artificial, is the only thing keeping our system from breaking apart:

http://video.cnbc.com/gallery/?video=3000148510&play=1

Richard Fisher of the Dallas Federal Reserve, clearly in response to Greenspan’s comments, openly admitted in a recent interview that the central bank has “artificially sustained markets”:

http://www.zerohedge.com/news/2013-02-21/least-they-are-finally-honest

This is, of course, dangerously backwards.  Strong data and legitimate profits are supposed to drive market psychology, which in turn is supposed to increase stock performance.  Instead, the market is being manipulated in order to maintain a false sense of economic optimism and keep ignorant investors and consumers spending in the hopes that tomorrow will bring better tidings! 

Interestingly, the latest minutes from the Fed indicate a “push for tapering” on bond market purchases, and a diminishment of QE, which is currently pumping over $85 billion per month into our fiscal structure.  Part of this effort has been led by Fisher, who owns over $1 million in personal gold holdings (meaning it is doubtful the banker believes that the Fed will actually stop printing, or that the dollar is going to hold its value for much longer).  I believe this is a bit of theater designed to remind the country how addicted to fiat we now are, as well as set the stage for the government alone (instead of the government in collusion with central bankers) to be blamed as the scapegoat for an inevitable collapse. 

Both Greenspan and Fisher in their latest interviews subtly introduce the meme that government indecision and “partisan bickering” are the ultimate culprits behind the continuing dysfunction of the economy.  Both parties do indeed play a role in the crisis, but not in the manner that central bankers assert.  The government’s greatest crime was allowing the private Federal Reserve to operate with impunity and create the mortgage and derivatives bubble in the first place, while aiding it in policies of inflation and manipulation.  The government is a danger to our fiscal system not because of “indecision”, but because it takes its marching orders from the Federal Reserve and colludes in now openly admitted market manipulation.   

Will the Fed cut off the flow of stimulus?  Possibly.

It is important to note that talk of a QE reduction has surfaced right as the Federal Government is set to make a decision on spending cuts and the raising of the national debt ceiling.  The first cuts, now called the “sequester” (a nicer word for “austerity”), will be administered in early March, and will apparently affect everything from school teaching positions to employment at the Department of Defense.  The White House claims that such cuts will damage the U.S. “recovery” and send the nation hurtling back into recession. 

Obama is, in a sense, correct.  However, I would point out that the federal cuts alone will not be the catalyst for collapse.  The Federal Reserve’s move to reduce QE in conjunction with cuts would be the true trigger of fiscal calamity…a controlled calamity with a purpose…

America’s financial and social systems only function today because of one thing – government spending.  The government is “officially” indebted in the amount of $16 trillion.  Unofficially, the number is closer to $120 trillion.  These massive liabilities have been accrued mainly through entitlement programs and state welfare.  Foreign investment in U.S. Treasury bonds does not produce anywhere near the capital needed to maintain such programs, which is why the Federal Reserve is now the world largest holder of U.S. debt (surpassing even China).  Without the Fed’s endless printing and bond buying schemes, the government cannot continue entitlement programs, and, it cannot feed money to dependent states.  These programs are the only thing keeping the illusion of a normal economy alive.

To give you a sense of what I mean (keep in mind that real numbers are likely much worse than reported statistics)…

Despite talk of recovery, U.S. poverty levels have hit all time highs.  Over 50 million Americans are below the official poverty line:

http://washington.cbslocal.com/2012/11/15/census-u-s-poverty-rate-spikes-nearly-50-million-americans-affected/

In 2009, food stamp enrollment stood at around 32 million Americans.  Today that number has grown to around 48 million; a 50% increase in only 5 years:

http://www.nypost.com/p/news/business/more_americans_on_food_stamps_QfLsaSyEHbnWxAZ0z7MMEP

The number of citizens on federal disability is at record highs, climbing to almost 9 million people, and has expanded every month for the past 192 months:

http://cnsnews.com/news/article/8830026-americans-disability-hits-new-record-192nd-straight-month

Requests for emergency food assistance are on the rise in most cities across the country, and homeless numbers continue to climb:

http://www.reuters.com/article/2012/12/20/us-usa-economy-hunger-idUSBRE8BJ14I20121220

Now ask yourself this:  How many people in this country rely on government money for most if not all of their survival needs? 

Without government funding, and without the fiat printing press at the Federal Reserve to feed that funding, the veil of financial recovery fades away, not just in the stock market, but everywhere.  All the poverty that has remained hidden for the past five years will suddenly be visible on our streets and doorsteps.  Welfare programs to individuals and to states ARE the modern day soup lines.  When they go, those reliant on them have nowhere to turn. 

Already, homeless shelters in numerous states are suffering from funding shortfalls and many are closing their doors:

http://www.christianpost.com/news/las-largest-emergency-homeless-shelter-seeks-funds-to-survive-77494/

http://bangordailynews.com/2012/12/10/news/midcoast/midcoasts-only-homeless-shelter-abruptly-closes-no-reason-given/

http://www.wbaltv.com/news/maryland/baltimore-city/Tough-times-lead-to-homeless-shelter-s-closure/-/10131532/17589782/-/122ke1n/-/index.html?absolute=true

http://www.khou.com/news/Woman-seeks-help-as-her-southwest-Houston-homeless-shelter-faces-closure--177795891.html

Food Banks are stricken with heavy demand and a dwindling supply.  Interestingly, government cuts to food bank spending are being blamed on high food prices due to the latest “drought”.  No mention of inflation caused by dollar devaluation, of course:

http://www.reuters.com/article/2012/11/21/us-usa-hunger-holiday-idUSBRE8AK08Q20121121

The lesson here is that no one, not even the government, has the ability to “spend their way out of debt”.  And no one, including central bankers, has the ability to cure economic collapse by printing money out of thin air.  But the bankers already know this… 

The Fed is discussing QE reductions in the face of a “burgeoning recovery”, but they know as well as you and I that the fundamentals show no economic improvement whatsoever.  Why else would they manipulate the stock market with fiat stimulus?  Why else would they manipulate bond markets with fiat stimulus?  Why else would they keep interest rates at near zero and throw essentially free money at international banks?  Because this is their only means of hiding the reality they know to be true.   

Why would they suddenly decide to reduce QE when they KNOW that the result will be the fast moving exposure of true instability with the U.S.? 

There are two reasons that I would make such a move if I were them…

First, they have done this song and dance before; allowing markets to dive in the face of a prospective end to stimulus, and then jumping in to save the day with even larger fiat injections.  The Fed’s decision to spread the rumor of QE cuts just before the government is to decide on austerity measures and the debt ceiling is no accident.  The combination of Fed cuts and government cuts may be a deliberate effort to create a shock event that leads to the next stage of U.S. implosion.  Government cuts and “party conflict” (fake party conflict) will provide cover for the real cause of destabilization; the Fed’s shut down of the fiat life support machine.  The masses blame the lack of government “compromise”, and the Fed moves back in later with even more overwhelming QE measures, slowing the crisis slightly.

Second, the Fed and the globalists at the seat of our government may very well be preparing the populace for a default scenario.  Central banks around the world have been purchasing record amounts of gold, and establishing bilateral trade agreements that remove the dollar as the world reserve currency.  They are undoubtedly getting ready for extreme devaluation in the U.S. dollar.   

If QE is cut, or restricted to the point where debt obligations cannot be maintained, then this is exactly what will happen.  Again, government indecision and partisan debate will be blamed for the disaster while the Fed remains the “innocent bystander” who “tried to warn us all of what would happen…”   

The propaganda message sent to the public is: 

Government decentralization is going to destroy you.  Politics must be centralized and streamlined and checks and balances must be removed if you are to survive.  Politicians are unqualified to handle economic policy because they care too much about the opinions of citizens, who are too stupid to understand economic policy.  All fiscal decisions should be handled by the banking elite without interference so that they can remain “objective”.  The American economy is in need of a complete overhaul, and the American people need to hand over their economic sovereignty if they wish to continue any semblance of a comfortable living standard.

In the end, the madness of debt spending is going to annihilate this country anyway.  Fiat printing and infinite QE will eventually result in the dumping of our currency as the world reserve, causing devaluation and hyperstagflation.  Stimulus and the monetization of government liabilities are crippling us.  The problem is, this nation is irrevocably dependent on such measures.  Cuts will result in almost similar catastrophe, but on a faster time frame and perhaps a slightly shorter duration (depending on who runs the show in the aftermath).  I’ve been saying it since 2008 – there is no easy way out of this situation.  There is no silver bullet solution.  There will be struggle, and there will be consequence.  It is unavoidable.  All we have to decide now is how we will respond when the inevitable disaster comes.

 


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Mon, 02/25/2013 - 21:38 | Link to Comment CH1
CH1's picture

We need to be acting NOW.

"Later" gets progressively redefined and never comes for most people.

Talk is cheap, action precious.

Either we ACT or we fail.

Mon, 02/25/2013 - 21:39 | Link to Comment CPL
CPL's picture

What are you going to do?  Shoot an idea of currency?  Line it up on the wall and start the revolution?

Really?  I'll ask the question left out of the article.

 

What would you change/build first to stop a full on collapse?

Mon, 02/25/2013 - 21:44 | Link to Comment CH1
CH1's picture

What would you change/build first to stop a full on collapse?

Nothing. I can't do that and I wouldn't if I could.

What to do: Drop out of the slave system and start building a better world.

I could give you pointers, but I won't: You're capable, so figure it out for yourself! Start building a better world. DON'T look for a Big Man or a Big Plan - those are the essential problems.

Get out there and start doing things.

Mon, 02/25/2013 - 21:57 | Link to Comment Crash Overide
Crash Overide's picture

Start DOing and BEing. OPPT?

Mon, 02/25/2013 - 22:06 | Link to Comment CH1
CH1's picture

YES. :)

Mon, 02/25/2013 - 22:41 | Link to Comment MrSteve
MrSteve's picture

Google

Classic manuals online

and scope out a galaxy of how-to manuals

Tue, 02/26/2013 - 01:39 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

There is one major difference. The OECD countries have a lock on critical resources that are ostensibly in soil of other countries -- Middle East is an example. Oil flows on dollar terms. Hence, we should include the GDP of those countries in GDP of OECD countries and their surplus will reduce our debt/GDP ratio -- then the picture is not as dire as you make out. Put in another way, the OECD countries are providing tradeable oil and other key natural resources for the global trade. As long as there is no country or group of countries that is willing to wrest this resource control from OECD countries, this game of endless fiat can go on without breaking the system. 

And if there is an attempt to wrest the control, it will devolve into total war. So, chill out and enjoy the ride till then...

Tue, 02/26/2013 - 05:29 | Link to Comment CompassionateFascist
CompassionateFascist's picture

When the Straits of Hormuz close, the dollar goes. The ZOG knows it, and so do the Iranians. Won't be long now.  

Tue, 02/26/2013 - 06:52 | Link to Comment economics9698
economics9698's picture

Wait until the fiat dies, then steal the bankers’ assets.  The best way to get even with thieves is to steal from them everything they own.

Mon, 02/25/2013 - 22:32 | Link to Comment MrSteve
MrSteve's picture

Learn to fix small engines, rewind/repair electric motors, research windmills while you still have a functioning internet account.

Buy a used bike, fix it and give it away. Now you are a broker! repeat weekly until you find a paying customer

Plant a garden for the oldest neighbor on your block, this will change the neighborhood and make great things happen, just when you need it.

Plant soybeans, corn and wheat in the wasted lawnspace by your driveway. Crops will get people asking questions, like when is the corn roast?

Show up, look alive, start a growing operation, start small amd keep going. Be your own boy scout and be prepared, an action verb and state of mind.

Mon, 02/25/2013 - 22:53 | Link to Comment CH1
CH1's picture

Plant a garden for the oldest neighbor on your block, this will change the neighborhood and make great things happen

+100 for this line Steve. Thanks.

Tue, 02/26/2013 - 00:39 | Link to Comment BLOTTO
BLOTTO's picture

Its quite sad actually...im extremely bothered on wtf is going on and how it really didnt have to be this way.

.

Which then makes me think, something extraordinary must be happening behind the scenes for those really 'in the know' and not for us 'peasants' and 'commoners' to understand...or in fact, not privileged to know.

.

Like really - can the the best of the best of the world - really have us in this bad of a shape because of mismanagement? I think its on purpose.

 

Tue, 02/26/2013 - 05:33 | Link to Comment CompassionateFascist
CompassionateFascist's picture

Reality = Chaos + Conspiracy, in varying proportions. Cf. Agenda 21. 

Tue, 02/26/2013 - 09:05 | Link to Comment CH1
CH1's picture

Like really - can the the best of the best of the world - really have us in this bad of a shape because of mismanagement? I think its on purpose.

FYI: The "best of the best" are NOT the best of the best.

The smartest guys are pushed out of the way. The most ethical guys are hated (Jesus was killed).

The people who stand in the lofty positions are NOT better than you.

Tue, 02/26/2013 - 01:57 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

Similar to the 'paradox of thrift', is good from a single individual's POV but will be viewed as harmful to society if greater numbers attempt this lifestyle. Our system is now based on specialization and if large swathe of society attempts to regress to independent lifestyle, will result in breakdown of system. What you are proposing is regression to fragmented land ownership, grow your own food, etc. TPTB will not allow this to happen without a fight. Please note, this is just an observation, before you down arrow.

 

Tue, 02/26/2013 - 12:46 | Link to Comment Bad Attitude
Bad Attitude's picture

The issue of growing food for your own consumption made it to the Supreme Court in the 1942 case of Wickard v. Filburn (http://en.m.wikipedia.org/wiki/Wickard_v._Filburn). The farmer lost, and TPTB won.

Tue, 02/26/2013 - 03:47 | Link to Comment joego1
joego1's picture

I agree learn to live locally and many of the worlds problems will go away in time as long as you can lay low while the shit hits the fan. I hate the Global economy it sucks.

Tue, 02/26/2013 - 08:56 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

A victory garden !

People have to stop being defeatist in the face of global industrialized life.

Mon, 02/25/2013 - 21:58 | Link to Comment CPL
CPL's picture

Then by your answer, is this a question of other's taking the initiative to declare a revolution and do 'something'.

What is this something of action?  

  • Maybe something quaint like a Mass knitting circle.  
  • Or terribly un-necessary like thongs on large men.  
  • Perhaps a touch of the esoteric by launching a spork manufacturing unit with a goal of world domination.
  • Extreme lawn darts, you get a blocker, each dart of injustice is a strike to the heart of the evil empire.
  • Praying and picking boogers for Jesus in a pulpit.

I believe that this is all happening somewhere on this planet as we speak.  I did stuff today myself, with things, while doing stuff.  With some guy, that was also doing things.  Shit was so cash while we did things.

Mon, 02/25/2013 - 22:10 | Link to Comment CH1
CH1's picture

That was a complete evasion.

You are capable of doing better, but apparently you won't.

Mon, 02/25/2013 - 22:31 | Link to Comment CPL
CPL's picture

My plan is to roll with the punches.  That's as far as anyone should plan if the circumstance (were)(when?) ever allowed to happen.  

Tue, 02/26/2013 - 05:36 | Link to Comment CompassionateFascist
CompassionateFascist's picture

Do it with an M1a in hand, urban wiseass.  Otherwise the Golden Horde is going to roast you over a slow fire. 

Mon, 02/25/2013 - 22:07 | Link to Comment Raymond K Hessel
Raymond K Hessel's picture

We're on our way toward another dark age.  

Europe and Asia had America.

Who does America have to save it?

No one.  Nessuno.  Nada fucking motherfucker.

Mon, 02/25/2013 - 23:28 | Link to Comment TBT or not TBT
TBT or not TBT's picture

The demographics are better here than in Asia or Europe.   Also our strategic situation is way better.    It will be better to be in the north part of North America in the next 50 years than just about anywhere else.    Also, being an armed society things here cannot go full retard tyrannical like they almost certainly will in Europe and swaths of Asia.

Mon, 02/25/2013 - 23:16 | Link to Comment TBT or not TBT
TBT or not TBT's picture

First, a debt and property tax jubilee, starting with the houses on my street.

Tue, 02/26/2013 - 09:37 | Link to Comment Dungeness
Dungeness's picture

Yes, agreed.

Don't fight the existing system. Create something new.

 

Mon, 02/25/2013 - 22:05 | Link to Comment runningman18
runningman18's picture

What would YOU do, CPL?  Why are you so worried about what other people are doing?  You only need to concern yourself with yourself.

Mon, 02/25/2013 - 22:21 | Link to Comment CPL
CPL's picture

I've made my position clear enough on many occassions.

 

I'm sitting in a deck chair and watching it burn.  When it's finished burning.  Get up and do it all over again.

Mon, 02/25/2013 - 22:30 | Link to Comment runningman18
runningman18's picture

Great, CPL!  You've got it all figured out.  So stop worrying about what other people are doing.

Mon, 02/25/2013 - 22:13 | Link to Comment TimmyM
TimmyM's picture

What is a full on collapse? It is just the end of money as we know it. There is plenty of food and water and shelter in this country.
So we default in one way or another on all our debt. After some initial turmoil we figure out how to get by. Many will learn to like it better. Only the idiots who cling to faith in fiat and refuse to stoop to labor will suffer. What good were they anyway?
Do you really need an SUV a McMansion and a daily latte? Really? Why do you fear the reset? It will be the highlight of my life.

Mon, 02/25/2013 - 22:25 | Link to Comment CPL
CPL's picture

I have none of those fineries of life, but I really enjoy flush toliets.  Call me chicken shit if you wish, but the idea of out houses and digging a latrine for 40 years more doesn't sound appealing.

 

It's not faith I'm clinging to, it's plumbing.

Mon, 02/25/2013 - 22:33 | Link to Comment TimmyM
TimmyM's picture

I enjoy going outside. It makes you feel like you own the Earth.

Mon, 02/25/2013 - 23:06 | Link to Comment MeBizarro
MeBizarro's picture

I feel really sorry for you that you apparently find so little value in society and your own individual life that you actively want a collapse of society and all of the disasterous things that would come with that. 

Tue, 02/26/2013 - 09:42 | Link to Comment CPL
CPL's picture

A riot is apparently easier than planning or working up the energy to do something constructive.  They are simply cowards that want the world to reflect their souls and they are too stupid to think of anything better but destroy.

When they understand that they are acting just as badly as the dipshits running the show, then maybe they'll smarten up.  Maybe.  Best case most of them will die of starvation or some minor health concern that was treatable in a society that still had cohesion.

Scale is the issue, not bullets.  However I have no interest in joining them.  I'll wait for both sides of the same corruption that rots society to burn itself out.  Then I'll rebuild.  Not for them, I'll rebuild for my family and community and I'll teach as a Senior Engineer on how to do it.  I swore an oath on my profession that I would cause no harm by my profession and I'll stand by that, I've never made a weapon and I never will.  Because believe me, if people want to see the power and responsibility Engineers wield they only need to flick a light switch, turn on a faucet, enjoy not being killed by their modes of transport, even enjoy the expansive selection of food floated in from all corners of the globe.

These people are nihilists, to chicken shit to blow their own brains out as fully grown men that haven't got the capacity to engage the world.  However shooting someone else is their idea of a good idea, complete insanity.

Mon, 02/25/2013 - 23:00 | Link to Comment CH1
CH1's picture

It's not faith I'm clinging to, it's plumbing.

If you really think escape from serfdom means going without plumbing, I rescind my previous comment - you are not capable.

Otherwise, you're championing a Neutered Existence.

Mon, 02/25/2013 - 23:01 | Link to Comment CPL
CPL's picture

Thank christ you've voluenteered yourself to be captain of the shit show.

 

Lead on targon warrior.

Mon, 02/25/2013 - 23:03 | Link to Comment MeBizarro
MeBizarro's picture

Nothing in the last 100-150 or so years has been more responsible for the huge increase in human lifespan as ready access to clean food and water to almost everyone. 

Tue, 02/26/2013 - 02:48 | Link to Comment Freddie
Freddie's picture

Look at Rome.  Rome was built on clean water and sanitation - moving waste out of the city and clean water in.  They were 400 years ahead of everyone if not more.

Tue, 02/26/2013 - 01:08 | Link to Comment imbrbing
imbrbing's picture

"It's not faith I'm clinging to, it's plumbing."

 

I almost expected to see "and Iphones" the way that sentence was going

Mon, 02/25/2013 - 22:58 | Link to Comment MeBizarro
MeBizarro's picture

Ugh.  Yeah a huge and uncontrollable surge in violence would be great and it's pretty clear you know jack about even the most basics regarding our water treatment systems and agricultural production and distribution system.   

Tue, 02/26/2013 - 06:01 | Link to Comment Dugald
Dugald's picture

 

Stooping to labour....but at Chinese wage levels....??

Tue, 02/26/2013 - 17:09 | Link to Comment orez65
orez65's picture

"Collapse" has been happening in Latin American for ever.

Not the end of the world.

Just get out of dollar denominated assets.

For example, bonds are a no no!

Tue, 02/26/2013 - 02:43 | Link to Comment dtwn
dtwn's picture

Iceland.  Will still be a collapse, but not as bad as what's coming.

Tue, 02/26/2013 - 03:26 | Link to Comment Diogenes
Diogenes's picture

It's too late to stop a full on collapse.

Tue, 02/26/2013 - 09:39 | Link to Comment Dungeness
Dungeness's picture

Or, instead of collapse, could the system just translate into a totalitarian system? Of course, there would be planned bumps along the way.

Mon, 02/25/2013 - 21:36 | Link to Comment sunaJ
sunaJ's picture

Welcome to the real world.

 

Any thoughts, RedPill?

Mon, 02/25/2013 - 22:43 | Link to Comment max2205
max2205's picture

Cash out of banks and into the back yard

Mon, 02/25/2013 - 21:39 | Link to Comment fortune114
fortune114's picture

Sorry, devalutation and hyperinflation commentaries must also include a timeline.

Mon, 02/25/2013 - 22:08 | Link to Comment Raymond K Hessel
Raymond K Hessel's picture

What's devalutation and is it contagious?

Mon, 02/25/2013 - 22:10 | Link to Comment kridkrid
kridkrid's picture

the supercyle is decades in the making... and central banks are making shit up as they go... and you are demanding a timeline?  Such a cowardly statement.

Tue, 02/26/2013 - 00:44 | Link to Comment fortune114
fortune114's picture

There is nothing new in this article.  What would be interesting is if authors would start sketching out timelines.

Tue, 02/26/2013 - 05:41 | Link to Comment CompassionateFascist
CompassionateFascist's picture

How about     "real soon"     . That's why the Regime is grabbing at the guns. They know they cannot debt-finance consent for much longer. 

Tue, 02/26/2013 - 05:36 | Link to Comment Vlad Tepid
Vlad Tepid's picture

Sorry, this isn't a jr high school US history class.  There's no glue and sparkles and construction paper.  Timelines are something that are understood through rigorous understanding of the past, undertaking critical analysis and weighing alternate explanations.  If you want a timeline of the collapse only the corrupt, the hucksters, and the liars will sell you one.  The honest brokers know the future is murky.  But I see fire on the horizon.

 

Tue, 02/26/2013 - 17:14 | Link to Comment orez65
orez65's picture

The timeline is worth a fortune.

I certainly wouldn't give it to a whiner like you.

Mon, 02/25/2013 - 21:43 | Link to Comment Laser Shark
Laser Shark's picture

Maybe a massive asteroid will hit Chicago, reminding us all how insignificant we are and putting these financial/economic problems into perspective.

Just enjoy the time that remains.  The world that's coming will not be worth living in.

I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.

Mon, 02/25/2013 - 22:08 | Link to Comment runningman18
runningman18's picture

That's right people, don't worry about a thing.  Nothing to see here.  Move along, move along....buy your toys and keep the blinders on and everything will work out....

Mon, 02/25/2013 - 22:22 | Link to Comment Laser Shark
Laser Shark's picture

Not at all what I said.  I have no interest in being a survivalist and restarting civilization.  I'll just be going outside to watch the flash.  Mere survival seems so pointless.

Mon, 02/25/2013 - 22:32 | Link to Comment runningman18
runningman18's picture

And maybe for YOU, survival is pointless...but don't project your nihilism on the rest of us.

Mon, 02/25/2013 - 23:11 | Link to Comment Laser Shark
Laser Shark's picture

Again, not what I said.  Survival is not pointless.  However, if that's the only goal and is a struggle every day like it is for many people in this world already, then I have no desire to live in that world.

If you disagree with my opinion, then fine.  But don't get all butthurt about it.

Mon, 02/25/2013 - 23:19 | Link to Comment runningman18
runningman18's picture

Perhaps you need to clarify your point?  You just said "mere survival is pointless".  Now your saying "survival is not pointless", but...it is pointless?  Make up your mind.  You are welcome to your opinion, but don't get butthurt when someone calls you on how incoherent it is. 

Tue, 02/26/2013 - 04:29 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Well - enjoy your survival eating dog food with your fingers

Tue, 02/26/2013 - 04:42 | Link to Comment bunnyswanson
bunnyswanson's picture

http://www.youtube.com/watch?v=1KAI5VncXY0

Local level is the starting point.

Mon, 02/25/2013 - 22:43 | Link to Comment otto skorzeny
otto skorzeny's picture

I would settle for a small asteroid that would hit that little macho-man hebe Rahm right between his eyes.

Tue, 02/26/2013 - 05:23 | Link to Comment bunnyswanson
bunnyswanson's picture

People are working on it.  You have to put shoe leather on the ground.  (Dr. Michael Coffman). 65 million man army in America is all that is stopping the agenda. 

Please - here is 1 hour plus clip that will explain it - A scientist who is comprehensive.

http://www.youtube.com/watch?v=SG1mWX9p8Bs&list=PLBB061FDDE3A0872B

Dr Michael Coffman - Agenda 21 The Race for Global Governance

Mon, 02/25/2013 - 21:45 | Link to Comment davidsmith
davidsmith's picture

ZH almost forgot to post its daily sermonette.  Thank you Jesus!

Mon, 02/25/2013 - 22:15 | Link to Comment kridkrid
kridkrid's picture

ah... but here you are, reading... and commenting.  That uncomfortable feeling you have as you pretend what you just read is dogmatic nonsense is called cognitive dissonance. 

Mon, 02/25/2013 - 21:45 | Link to Comment CH1
CH1's picture

Maybe a massive asteroid will hit Chicago...

Why Chicago? Their worst and nastiest moved to DC. Only the ballerina remains.

Mon, 02/25/2013 - 22:44 | Link to Comment otto skorzeny
otto skorzeny's picture

Isn't he one of your favorite zionists?

Mon, 02/25/2013 - 22:48 | Link to Comment CH1
CH1's picture

I don't have favorite zionists, but unlike you, I don't hate people because of their relatives.

Mon, 02/25/2013 - 21:49 | Link to Comment besnook
besnook's picture

THE MEXICAN DRUG LORDS JUST KILLED 30 MORE PEOPLE! WE HAVE TO BOMB SHANG HAI! NOW!

Mon, 02/25/2013 - 22:00 | Link to Comment CPL
CPL's picture

When will the evil cabal of Lizards and Jamacian's release us from our credit burdens and inability to add numbers together!!

 

The whole world went to hell when disco died....wait what are we talking about again?

Mon, 02/25/2013 - 22:06 | Link to Comment besnook
besnook's picture

leave the jamaicans out of this. they are responsible for an early view of ex-usa and my first foreign word, "ganja", one of my favorites. they are allowed to print all the paper they want as long as it burns evenly.

Mon, 02/25/2013 - 22:19 | Link to Comment CPL
CPL's picture

BLUD FYRE!!!  

Mon, 02/25/2013 - 22:22 | Link to Comment besnook
besnook's picture

rasta clot, blood clot, mon

Mon, 02/25/2013 - 22:33 | Link to Comment CPL
CPL's picture

Irieeeeeee!  

Mon, 02/25/2013 - 22:28 | Link to Comment tip e. canoe
tip e. canoe's picture

just a friendly note: ganja is actually a sanskrit word.   so old school, it's ancient, mon.  your post reminded me of this gem from marley tho:

Why these people want to do so much good for everyone who call themselves government and this and that. Why them say you must not use the herb.

https://www.youtube.com/watch?v=6Vvtj0aALAM

Mon, 02/25/2013 - 21:51 | Link to Comment EmmittFitzhume
EmmittFitzhume's picture

Maybe we shouldn't be saying what we believe.  I'm thinking Bernanke is making his next move based on what is said here.

Mon, 02/25/2013 - 21:51 | Link to Comment blue
blue's picture

your bummin me out

Mon, 02/25/2013 - 21:56 | Link to Comment knukles
knukles's picture

I stopped reading when I got to:

"Whenever I endeavor to explain America’s current economic situation to a person who likely receives most of his information from skewed mainstream news sources,"

Futile effort attempting to treat the mentally ill

Mon, 02/25/2013 - 22:07 | Link to Comment MeBizarro
MeBizarro's picture

Can you possibly right a coherent post Brandon that has some original analysis and isn't a jumbled mess of links?

Mon, 02/25/2013 - 22:10 | Link to Comment Raymond K Hessel
Raymond K Hessel's picture

HA HA HA.

 

I get the irony.

Mon, 02/25/2013 - 22:13 | Link to Comment runningman18
runningman18's picture

Seemed pretty coherent to me!  Can you actually write (W-R-I-T-E) a coherent response to the article instead of the half assed toddler attack you just posted?

Mon, 02/25/2013 - 22:59 | Link to Comment MeBizarro
MeBizarro's picture

I will summarize this piece of cr@p in 10 words: Gov't is too centralized and our debt levels will destroy us.  The op-eds on this site are by far and away the weakest posts on it because of the writers.  I guess since they don't get paid they are willing to contribute for free. 

Mon, 02/25/2013 - 23:26 | Link to Comment runningman18
runningman18's picture

Yeah, because that message is so "yesterday".  America has already woken up and understood everything pointed out in the article, right?  They don't need anymore evidence or education because they're fully on board. 

Btw, you dislike the op-eds here, and yet here you are reading them and commenting on them?  How about that... 

Mon, 02/25/2013 - 23:38 | Link to Comment MeBizarro
MeBizarro's picture

No but this is a mess that is cobbled together that is very difficult to read through and follow because of its very poor structure.  I'm sorry but that matters alot especially when you are trying to use words to convey meaning.  If you think this is well-written or research, I imagine you don't make a living where you actually have to write anything to convey what you are thinking nor have strong analytical abilities to analyze written passages. 

Mon, 02/25/2013 - 23:55 | Link to Comment runningman18
runningman18's picture

I read through this just fine, and it seems most people here aren't having any difficulty.  If you're having trouble following it, perhaps the problem is you, and not the article.  Just sayen....

Mon, 02/25/2013 - 22:11 | Link to Comment espirit
espirit's picture

I had a waking dream recently.  Did a household repair job for a young widow with a thirteen year old son still at home who lived nearby.  She works fulltime as a CPA and moonlights partime on weekends, the kid is failing at school and this ladys home is literally falling apart.

As an older mature male, I about cried at the appalling conditions many well-to-do persons such as this lady live in.

I'm ready for the endgame since humanity has sunk to such a low. 

Mon, 02/25/2013 - 23:12 | Link to Comment Mike in GA
Mike in GA's picture

Also as an older adult male, with tools, I try to help said helpless widows with whatever little can be done.  And the 13 yr old boy could probably use some male company and a lesson in the use of tools.  Paid with a smile is often enough.

Don't give up.  The fight is to make tomorrow better, not give in to hopelessness.  Chin up, old chap and the endgame will come in its own time. 

We still retain the freedom to make a choice to make a change.  Like the old Jiffy Lube commercial, "We don't want to change the world, we just want to change your oil!"

Mon, 02/25/2013 - 23:25 | Link to Comment Northern Lights
Northern Lights's picture

You're both crazy to want to help this lady out with her son.  Do some research and you'll find examples of men who with the best intentions tried helping out a single mother, only to be hit with a "support" order for the child by the single mom.  Worst yet, the family court system will entertain and uphold such ridiculous lawsuits.  Why?  Because the government looks at it like this.  If this single mom can't support herself and the child, that responsibility will fall on the government via welfare payouts.  So the government will do whatever it can to download that responsibility on someone else.  In this case, the well intention male.  The US and Canada for that matter, are one of the few western countries where more than 1 man can be forced to pay child support for a single child.

You heard the old saying right?  No good deed goes unpunished.

I suggest that your interactions with this lady remain business like and ignore the kid.

Mon, 02/25/2013 - 23:50 | Link to Comment Mike in GA
Mike in GA's picture

Sorry, that isn't the way we live here.  Community.  People interacting with each other face-to-face without any government intermediary.  Helping out when necessary. Many hands make light work kinda thing.  It's what every church does.  Help.  People.

The fraying bonds of community require people to depend more on gov't.  Best to build the bonds in my estimation and maintain them than turn my back and allow further gov't encroachment. 

I have managed my entire life to avoid the kind of situation you describe.  Many snares are avoided by common sense.

Thank you for the reminder, though.

Tue, 02/26/2013 - 00:00 | Link to Comment dolph9
dolph9's picture

Yeah.  Although they can be kinky, I avoid single moms like the plague itself.

Mon, 02/25/2013 - 22:31 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Brandon Smith, his first sentence says it all:


"Whenever I endeavor to explain America’s current economic situation to a person who likely receives most of his information from skewed mainstream news sources,..."

The Low Information Voters do not understand nor do they care.  Now.  They will later.  Too much debt will impact us soon.

Tue, 02/26/2013 - 04:27 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Tell me this - you know and I know what is coming - but we also know there is nothing we can do about it.

Yes - we hoard gold and some of us buy guns and ammo.  No guarantees that either of those will make things better when this hits.

So perhaps ignorance truly is bliss - is there not something eloquent about just going about life as if it will continue as it always has?  Rather than spending every waking moment with negative thoughts and negative energy?

Yes I know - it is the apathy of the masses that got us here - but that was inevitable - when you have Edward Bernays employed to control people then how can you expect them to be anything but what they are expected to be - apathetic morons playing game boy and facebook and watching dancing with the stars.

I have my gold hoard and I spend my time with my wife traveling the world as much as possible because it may not be possible in the coming years.  I am self employed fortunately with good managers so I can get away with being away from the office over half the year. 

Tue, 02/26/2013 - 06:27 | Link to Comment runningman18
runningman18's picture

Apathy is not "inevitable".  It is totally within your control to act, or not act.  And, it is an act of cowardice to witness the mechanizations of evil and do nothing.  Even now, there is work to be done beyond buying gold and gear.  Try networking together a neighborhood of people, and then try trading amongst each other, and then try engaging your local commisioner or sheriff. 

Leave all that "negative energy" crap in the garbage where it belongs.  It's all New Age hoodoo meant to turn you into an easily assimilated zombie.

Mon, 02/25/2013 - 22:40 | Link to Comment thewayitis
thewayitis's picture

Well I have the gold,silver,water food for a while. A few shells for the mother fuckers that take us down

Mon, 02/25/2013 - 22:44 | Link to Comment Never One Roach
Never One Roach's picture

"Struggling" is a component of the New Paradigm.

Mon, 02/25/2013 - 22:54 | Link to Comment Professor Fate
Professor Fate's picture

Good overview.  Smith correctly points out that the "Bernank" is in a box.  The Fed's "all in" bet has gone awry and way past the point of no return.  Trillions spent in a Keynesian zombie cluster-fuck with little or nothing to show for it other than increasing underemployment and a growing dependence by the poor on the government "hush money".  Not a green shoot in site and no way to unwind. The only thing saving us right now is that Europe is even more fucked than we are.  As is usually the case, it will be the bond market that ends this escapade...and in a very brutal way.  Whether through depression or hyper-inflation, the one thing that is certain, is that the status quo cannot be maintained.

Fate the Magnificent

"Push the Button, Max"  

Mon, 02/25/2013 - 23:05 | Link to Comment q99x2
q99x2's picture

Bernanke stops printing and we the hungry and disenfranchised are headed for the Hamptons to check out their freezers.

Mon, 02/25/2013 - 23:12 | Link to Comment Whiner
Whiner's picture

I often ask post-grads what the national debt is. Try it a dozen times. Only 1 out of 100 can get within 10 trillion of it. My wife made me stop doing it. So now I just pray:

God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

I feel better.

Tue, 02/26/2013 - 01:12 | Link to Comment holdbuysell
holdbuysell's picture

Well done, Brandon.

Others have discussed similar scenarios where deflation would occur first to impoverish all in debt, followed by hyperinflation (devaluation) of the currency to finish the job. The destitute would have no choice but to accept whatever (rancid) olive branch is handed them.

Tue, 02/26/2013 - 01:21 | Link to Comment Grand Supercycle
Grand Supercycle's picture

DOW weekly charts at blog show updated bearish rising wedge.

Despite market intervention, short covering and new longs, uptrend degradation has continued for some time.

http://trader618.com/2013/02/26/tues-26-feb

Tue, 02/26/2013 - 01:56 | Link to Comment NYMom
NYMom's picture

None of us know when or if all will fall apart. A timeline???? Please.
Educating the ant like attention span of those that haven't a clue - No.
It is a huge waste of time and quite frankly too frustrating and demoralizing.
Those who understand, those who have taken the time to learn, are the remnant.
Since none of us know what a collapse will look like, i prefer to enjoy whatever time remains. I prefer to get into bed each night and be thankful, knowing my children are safe and warm in the next room. The day/night may come where rest may not feel safe or secure. I will continue to be informed, but I do not wish for that day.
Those who do, i am afraid, will wish they had savored the right here and now.
If you are reading this site, you have prepared to the best of your ability with the resources you have. That's it. That is all you can do. If it gets as bad as some predict, we will have the advantage of not being shellshocked in addition. This advantage is the only thing I feel sure about. Nothing else.

Tue, 02/26/2013 - 04:04 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Agree completely. 

I have no idea when this will unravel but I am pretty certain that when it does my life will change dramatically - and the prosperity I have enjoyed will never be the same again.  I think there is a very strong possibility that we will live in a world of chaos - it will not resemble today's world in the slightest.

But what can one do?  Not much.  I have dumped a good chunk of change into gold and have a couple of hectares of farm land here in Asia - no idea if those will hedge but that's about all I can do.

In the meantime, my wife and I are traveling the world - every two months we get on a plane and go somewhere new.  Next up is a one month trip to north africa heavy on the trekking.

In defence of those who appear to be wishing to get this over with, I believe that there are two things at play here 1.  the stress of knowing what is coming and just wanting it over with and 2.  being able to say to all of those who are living in a world of delusion and laughing when one suggests something wicked this way comes 'see you stupid bastards - I told you so' (and watching them grovel on the street asking for scraps of bread from those who hedged with PM)

Tue, 02/26/2013 - 10:49 | Link to Comment NYMom
NYMom's picture

I completely agree with your defense, noted in bold. Of course, i have felt and thought all of the above. For me, however, It was a thought process that expended too much energy that could be better served elsewhere.
My apologies all for my double post that follows. Not sure why that happened. On second thought, it might serve BunnySwanson well to read it twice.

Tue, 02/26/2013 - 05:47 | Link to Comment bunnyswanson
bunnyswanson's picture

I've never directly called anyone this before but this is an opportunity I cannot pass up.

You, Missy, are a kunt.  Yes you are.  A cunning bitch is a cunt. you know.

An embarrassment to your country.  A disgrace as a mother.  Leave your name so when we get this turned around, we can throw you into a FEMA camp and monitor your intake of air/food/water, surveillance of your every move, seize your property and force you into labor camps.  Get out of the way in the meantime.  The guy who agrees with you should be great company in the cot by yours. 

Get out of the way mutherfucker.  This is my home and I and my ancestors worked hard to put this infrastructure into place, physicially and financially. 

rem·nant

/?remn?nt/  Noun A small remaining quantity of something.   Adjective Remaining.   Synonyms:  remainder - residue - rest - leftover - vestige
Tue, 02/26/2013 - 10:27 | Link to Comment NYMom
NYMom's picture

Oooh, cunning. I like that. I have been called the later as well. Usually by an insecure, testicle challenged male who doesn't quite know what to do when the neatly placed apples in his cart start rolling.
I can tell by your diplomatic approach that you have had great success in all you attempt .
Not quite sure why you threw your little hissy fit, but when you have had a chance to calm down,( pacifier may help), I am waiting with bated breath for your response.

Tue, 02/26/2013 - 10:27 | Link to Comment NYMom
NYMom's picture

Oooh, cunning. I like that. I have been called the later as well. Usually by an insecure, testicle challenged male who doesn't quite know what to do when the neatly placed apples in his cart start rolling.
I can tell by your diplomatic approach that you have had great success in all you attempt .
Not quite sure why you threw your little hissy fit, but when you have had a chance to calm down,( pacifier may help), I am waiting with bated breath for your response.

Tue, 02/26/2013 - 02:46 | Link to Comment Hive Raid
Hive Raid's picture

This was an excellent article. It pieced everything together beautifully.

Tue, 02/26/2013 - 04:32 | Link to Comment GreatUncle
GreatUncle's picture

Sarcasm - do you really believe and holding any position if it is written on paper will be honoured.

I don't think so.

Hold physical, not paper then when the music stops you have what you are holding.

Tue, 02/26/2013 - 08:19 | Link to Comment ArmyofOne
ArmyofOne's picture

No way the banksters exterminate themselves.  If the choice is between currency collapes/crash and higher interest rates/collapes, they will save themsleves and fuck everyone else. 

 

Bet higher interest rates and the defence of the dollar.

Tue, 02/26/2013 - 11:43 | Link to Comment fromthedeepersouth
fromthedeepersouth's picture

"In recent articles I discussed the black magic of the stock market, and summarized a position I have held for a very long time: That the Federal Reserve has been injecting a very large percentage of its QE, or fiat stimulus, into the Dow in order to keep the market propped and seemingly prosperous."

I've felt this way for a long time too.  What's most important though is that its the giant investment banks (aka "primary dealers") that are getting this money and buying up the stock market while the little guy is bailing out hoping to hold onto what little wealth he has left.  Stock price doesn't matter to these financial giants because in the end they'll have total control.  Congress is going to end up dealing with a very angry populace when their driven into poverty at the level of the average chinese.

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