Weimar vs USA: The Fall Of The Second Empire Of Debt

Tyler Durden's picture

While being distracted by the developments of this insolvent European sovereign or that, coupled with increasingly prevalent episodes of deposit confiscation, is all the rage these days, the fundamental problems summarized by these three simple words, too much debt, remain. And as has been explained over and over, while confiscation of wealth merely shuffles the various dollar (and euro) signs on the table with the spoils going to the wealthiest, there is no resolution of the underlying problems plaguing a world that has tens of trillions of excess debt.

As is by now is well-known, there are two ways out of such a conundrum: default, or inflating the debt away. What is also well-known is that as long as the US preserves legacy reserve currency status even by the tiniest of threads, inflation through debt deluge-funded money creation will always be chosen outcome. Just as was the case in Germany in the 1920s. In fact, as the following video shows, the parallels between where the US is now, and where Weimar Germany were just before everything took a turn for the parabolic, are a few too many for comfort. The only major difference so far is that in Weimar, the creation of massive rampant inflation was what economists would call, "successful."

Source: Visionvictory

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Alcoholic Native American's picture

What do you do when you want to extend a monopoly game?  You expand credit and/or allow new players into the game.  Capitalism has not failed, it has just come to its logical conclusion.

francis_sawyer's picture

If I was winning [& the other players were hot chicks], I'd suggest that 'strip Monopoly' was the only viable option & immediately begin collateralizing their garments...

sweaty7's picture

MBS=Mammary backed securities?

Boris Alatovkrap's picture

Only rat is live in tunnel!

RafterManFMJ's picture

^I love this guy! He is to making me laugh!

Temporalist's picture

"I dive 1000' in to a block of cement... on my head yet." -Bruno The Magnificient (Boris as Bear)


bank guy in Brussels's picture

Speaking of laughs ... and fitting for April 1st ...

There is the alleged $27.5 trillion in funds available to pay off the entire US national debt and cancel many taxes too ... the famous funds in the ongoing American 'conspiracy' story of 'Ambassador' Leo (a.k.a. Lee) Wanta ... trillions said to be illegally withheld because of recent American corrupt Presidents.

According to Mr Wanta - who seems to have worked in a US government capacity - the great fund was set up by US President Ronald Reagan, with revenues from clever trading and other profits as the Soviet Empire was in its final decade.

In Wanta's story, Ronald Reagan wanted the funds to be used to liberate the American people after the Soviet Empire fell, but the proper use of these monies have been blocked by Reagan's successors, every President being corrupt since the first President Bush in the early 90s. With accrued interest and earnings that fund is now claimed to be US $27.5 trillion.

What makes it a great story, is not only the reasonable idea that trillions have been stolen from American citizens, but the fairy-tale aspect that once upon a time, there was indeed a US President who really cared about the common people. It seems that the last US President well-liked enough to be able to wear that kind of mantle of popularity, whether deserved or not, was the camera-friendly movie actor Reagan.

Leo Wanta is still in America telling his story and with his tale showing up on various 'conspiracy' sites. One of the journalists who told the Wanta story was UK journalist Christopher Story, said to have been murdered, poisoned to a disease death in 2010, after visting the USA.

It is one of those stories that I think will outlive the USA. As the US empire perhaps crumbles and breaks into pieces after financial catastrophe, there will no doubt still be people who say, that America might have been all right, if only the thieving oligarchs had not stolen the $27.5 trillion of Ronald Reagan funds entrusted to the care of Ambassador Leo Wanta.

bloostar's picture

Wouldn't you need an ever increasing level of removed garments and girls to keep your ponzi up?

MayIMommaDogFace2theBananaPatch's picture

Women's underwear is like Visa Gold Card -- it's everywhere I want to be

new game's picture

hey f_s, i will convert my hotels to brothels and you bring your garmentless chicks on over.

ps. i only accept gold or booze for payment...

we can negotiate the overhead and roi-i'll be fair.

LostAtSea's picture

Big government has not failed, it has just come to its logical conclusion.


Fixed it for you.


Handful of Dust's picture
Scientist Predicts 60% Market Collapse

Wednesday, 13 Mar 2013


Chris Martenson is a world-renowned expert on identifying dangerous, yet hidden, exponential growth patterns in global economies, energy demand, and food consumption...

And he is predicting a 60% stock market collapse will strike in the next three months.

Martenson’s opinion isn’t to be taken lightly, as his research is highly regarded by the United Nations, UK Parliament, and Fortune 500 companies.

zhandax's picture

"A financial World War III"

Jim Willie's thinking on Cypress from last Tuesday:  http://www.youtube.com/watch?v=P5OBHqQkiAI

q99x2's picture

If the stock market is not attached to the same forces it was in the first two tops then it may not react in any predictable way. Since there is no reliable way to judge value I think things could just F'n collapse.

The Heart's picture

"And he is predicting a 60% stock market collapse will strike in the next three months."

It's all going by the book.:


new game's picture

money = bullets until bullets are fired...

just observing...

now sayin.

unrulian's picture

in this environment if the mkt collapses by 60% what will stop it there?

moneybots's picture

Didn't we just get a Dow Theory buy signal?

Radical Marijuana's picture

Big governments CONTROLLED BY BIGGER BANKSTERS, is coming to its logical conclusion.

To fix it for you, LostAtSea, please note that the powers of government have already been 99% PRIVATIZED! THAT was due to the prolonged triumph of the methods of organized crime being able to take control of the political processes, while turning the surviving politicians into puppets, and the citizens into muppets.

Do NOT blame the "government," nor "capitalism," nor any other "ism" for what is ACTUALLY the result of the methods of organized crime taking over control of the whole process!

1C3-N1N3's picture

I love it when people say "capitalism has failed us." I generally come back with, "No, YOU failed at capitalism. And next you'll fail at fascism."

tmosley's picture

You are off by about a hundred years there buddy.  Haven't had Capitalism in the US since 1913.  How can you have Capitalism when a quasi-governmental authority controls credit rates and thus capital?  That's like saying that a parched landscape is water's logical conclusion.

UP Forester's picture

So was that before or after Congressmen and Senators were bought off by the heads of huge businesses like Rockefeller, Morgan, Carnegie, and all the railroad, timber, land, mining, textile, cotton and shipping barons?

tmosley's picture

When a cleaning lady pumps the contents of her septic system into your living room, is it still cleaning?

UP Forester's picture

That's almost as funny as your original comment was intellectually dishonest.

noless's picture

What happened to standard oil?

NoDebt's picture

Broken up in 1911 under the Sherman anti-trust act into 30+ smaller companies (making Rockefeller richer than his wild dreams in the process since the shares of most of those companies quickly doubled and tripled- yeah, he made a fortune BECAUSE of the break-up). 

Of the 30 companies you might recognize a few of them today, including the two largest......  Standard Oil of New Jersey became what we know today as Exxon.  Standard Oil of New York became what we know today as Mobil.  Chevron came out of that, too, I think, but don't quote me on it.

Any particular reason you ask?


noless's picture

It is relevant to the above argument, were the anti trust proceedings themselves initiated by those who held near monopolies?

Urban Redneck's picture

Not just the breakup (creation of multiple companies), but the premium P/E ratio that is routinely applied to publicly traded equity over privately traded equity.

tmosley's picture

How is it dishonest?  Just because some people behave badly doesn't make good behavior bad.  Those people who founded the Federal Reserve should have been ashamed, and the politicians they bought off to pass that treason should have been hung.

unrulian's picture

when solar panels and batteries are made in china...is that greeen?

GMadScientist's picture

only if you dispose of them there was well once they're discharged.

TWSceptic's picture

That's corporatism (fascism) though, not capitalism. You prevent it by having a strong constitution, defended by intelligent voters. Unfortunately the US lacks both.

Dull Care's picture

One could argue that this is Democracy reaching its logical conclusion.

A system of democracy obviously will not permit free markets to perspire for obvious reasons.

Once the sheep realize they can vote to steal property then the descent is guarenteed even if it's gradual in nature.

Just Ice's picture

hmm, a fascist democracy has taken over what was to have been a constitutional republic...sounds about right

Urban Redneck's picture

Polk was elected President on a platform of explicitely "acquiring" more land from Mexico in 1845 (because Texas wasn't big enough). Que the Mexican-American War in 1846...  Shit's been going on for a while...

GMadScientist's picture


And I think you mean 'cue'...if only to avoid transliteral difficulties.

Urban Redneck's picture

je ne peux pas taper dans toutes langues

but it helps to confuse the damn ferners (and googlers)...

graspAU's picture

“The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses... This little coterie...run our government for their own selfish ends. It operates under cover of a self-created screen...seizes...our executive officers...legislative bodies...schools...courts...newspapers and every agency created for the public protection.”
-John Hylan, N.Y. Mayor,

DoChenRollingBearing's picture

Have to disagree there Alco. We all know that it is .gov that is failing us even more...  Barron's this weekend breaks a story (not seen here at ZH AFAIK) re a sleazy Russian (Vassili Oxenuk) peddling dodgy investments along with Las Vagas, Guns, Money, Reverse Mergers, Offshore Hideaways and more!  Also, the usual Barron's stocks and bonds discussions:

"Review of Barron's -- Dated 1 April 2013"


dunce's picture

Assigning a large part of the blame to any one thing has the effect of granting a pass to  many guilty accomplices, though you can not throw a stone in DC without hitting a guilty party.

Radical Marijuana's picture

This person who posts under the name Alcoholic Nativ appears to live down to their name. That person appears to be so deliberately ignorant that I find it more plausible to believe they are some kind of "troll" who is doing that on purpose?

There has not been anything remotely like "capitalism" nor "free markets" since the Federal Reserve Board took control! There has only been a runaway fascist plutocracy, accelerating at an exponential rate! It is a gross understatement to note that "everything took a turn for the parabolic!" The fascist plutocracy that has taken control of the USA is literally trillions of times worse than what took control over Germany. Furthermore, there is nobody outside of that globalized fascist plutocracy system that can stop it now, nor apparently going to appear in any time in the foreseeable future, without some series of political miracles.

The history of insane wars has seen the total number of deaths, (and the related deaths from disease, and collateral damage, which tend to become more than an order of magnitude bigger than the directly caused military or police state murders) DOUBLING. Therefore, the decline and fall of the current systems is probably going to see hundreds of millions of people directly killed by genocidal wars, along with democidal martial law, along with billions of people indirectly killed by all the related distruptions and chaos, causing famines and plagues. The runawy poverty, crime and disease situations will probably keep on their exponential growth curves ... manifesting as unprecedented famines, wars, and plagues.

Furthermore, the only sufficient political miracles which could mitigate that MUST be based upon radical paradigm shifts in militarism, in order to operate radically different death control systems. Nothing else is sufficient to cope with the full meaning of THE FALL OF THE SECOND EMPIRE OF DEBT.

Alcoholic Native American's picture

Yes, Capitalism just hasen't been implemented correctelty yet.  You and your ilk are retarded beyond my comprehemption.

Radical Marijuana's picture

I cannot resist regarding you as a cute troll, Alcoholic Nativ...

To reply to someone who posts under the name Radical Marijuana with the word comprehemption is a great a typographical error!

The PROBLEM with fiat money, made out of nothing, as a debt, it that that DESTROYS the foundation of capitalism, as the accumulation of capital, as the profit from production. Instead, those who can make the fiat money preemptively take control of the market, and thereby systematically undermine capitalism.

Privatized fiat money is the result of the triumph of organized crime taking control over government, in order to legalize counterfeiting, as the privilege of a relatively small group of private banks. The biggest of those banks have ended up owning more than half of the American economy, and are able to gamble with money made out of nothing on an astronomically sized scale measured in hundred of trillions of dollars, which barely makes any rational sense, since all the production combined does not come close to that order of magnitude!

I have nothing against the sublime theories of free markets, nor capitalism. However, the REALITY is runaway fascist plutocracy, which is what results after one adds fraud and murder to capitalism. That is, the REAL world is operated through the application of the principles of organized crime, whereby the best organized criminals, the biggest gangsters, are the the banksters, which have taken control over the government, mostly be taking control of the funding of the political processes, (especially including paying to have some politicians discredited or destroyed.) The established systems are NOT capitalist free markets, but rather what happens after those things are undermined and destroyed by the triumph of fraud and murder actually controlling what happens.

Despite having spent decades learning about those social facts, I presume you are going to continue to believe that I can not possibly know what I am talking about, and that I must be too retarded to be able to understand politics. I doubt that anything I could possibly say would change your mind, however, IF you want to take the easy way to understand some of what I am talking about, then take the time to watch some of these free videos about the monetary system, almost all of which have been featured on Zero Hedge before:


MachoMan's picture

In all of your years of studying and learning history, what was the inevitable conclusion to every capitalist society?  Something that most people seem to forget is that the word we use to describe our economic system is purely a present identification...  a pinpoint in time...  something that is fleeting at best and necessarily changes, dramatically, over relatively short periods of time.  I have never seen, not once, anyone articulate the stasis mechanism for keeping the "free market" behaving in a manner so as to effectuate all of its academically proposed benefits.

The truth is that the law of the jungle reigns supreme over mankind...  it never sleeps...  it's unrelenting...  the only thing that is able to give us the slightest bit of comfort is that it changes its form a couple times during each of our lives.  However, we remain steadfast subjects.