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Opportunity Squandered: We Blew It

Tyler Durden's picture


Submitted by Charles Hugh-Smith of OfTwoMinds blog,

We are about to reap the consequences of tolerating the perfection of the Savior State / cartel-crony capitalism's neofeudal debtocracy.

We as a nation had an unparalleled, historic opportunity to set things right in the aftermath of the 2008 financial meltdown. Alas, we blew it. Instead of tearing down what had failed spectacularly, we chose to do more of what failed spectacularly: cartel-crony capitalism, centralized wealth and power and an expansion of our financialized debtocracy.
Gordon Long and I discussed this epic miss in Window of Opportunity: Blown!
While it's certainly easy to blame our corrupt, self-serving leadership, we have tolerated their "more of the same." It's been said that a people get the government they can tolerate (as well as the one they deserve), and the American people have tolerated an expansion of everything that is systemically destructive because we dared not risk our share of the Savior State swag.
The joke will be on us, because there won't be any swag when the rotten edifice collapses in a heap. The entire Status Quo response can be summarized thusly: save cartel-crony capitalism and increase central state power by expanding credit and blowing borrowed trillions, i.e. paper over structural flaws with tsunamis of free money and credit.
Let's check in on the effectiveness of the Keynesian Cargo Cult's project of borrowing and blowing trillions: Oops, diminishing returns.
Does this trajectory of federal borrowing look remotely sustainable to you?
The Federal Reserve's number 1 project of bailing out the parasitic financial cartel with trillions of dollars in free credit has also failed spectacularly, as the banks can't find any positive risk/return in loans except those that are guaranteed by the Federal government (FHA, Fannie Mae, etc.)
The Federal Reserve's number 2 project of "saving" cartel-crony capitalism and its captured political class of toadies, apparatchiks and factotums by blowing asset bubbles has succeeded in setting up one violent crash after another. You don't need Technical Analysis 101 to see the megaphone pattern traced out by the three Fed-inflated asset bubbles.
As you no doubt recall, nobody in the Fed, Wall Street or the Savior State saw the inevitable popping of the tech bubble or the housing bubble, and so it is unsurprising that our "leadership" has once again failed to anticipate the endgame of financial bubbles is not "to the moon" but collapse.

"But that can't possibly happen." Yes, we heard that in 1999 and 2006, too. What must happen will happen, and we as a nation are about to reap the consequences of tolerating the perfection of the Savior State / cartel-crony capitalism's neofeudal debtocracy.



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Fri, 07/05/2013 - 10:59 | 3723670 ZeroChance
ZeroChance's picture

Been blowing it as a National Pastime

Fri, 07/05/2013 - 11:04 | 3723686 krispkritter
krispkritter's picture

Maybe the US can 'marry' Canada, that should end the blowjobs right there...

Fri, 07/05/2013 - 11:08 | 3723695 francis_sawyer
francis_sawyer's picture

Don't include 'ME' in that 'WE'... I don't fucking print the money...


As always, blame the Indiana quarried limestone buildings...

Fri, 07/05/2013 - 11:24 | 3723733 malikai
malikai's picture

"We're going to run out of marketable debt."

Fri, 07/05/2013 - 11:29 | 3723735 flacon
flacon's picture

Crony CAPITALISM? Capitalism is bad? So what we need is something different, like honest Fascism or compassionate Corporatism or socially-responsible Socialism or friendly Marxism then?


Why does CAPITALISM always get the blame?

Fri, 07/05/2013 - 11:42 | 3723769 Rainman
Rainman's picture

" There are two ways to be fooled. One is to believe what is not true ; the other is to refuse to believe what is true. "

                                              Soren Kierkegaard ( 1813-1855 )



Fri, 07/05/2013 - 12:09 | 3723842 MeelionDollerBogus
MeelionDollerBogus's picture

Kierkegaard on zerohedge!

I'm feeling remarkably cultured now.

Fri, 07/05/2013 - 11:52 | 3723794 NoDebt
NoDebt's picture

Lets just go back to having kings and be done with it already.  You know that's what they want.  The whole Magna Carta thing was a BIG mistake.

Fri, 07/05/2013 - 12:27 | 3723916 kchrisc
kchrisc's picture

Because in CAPITALISM one must earn their way and power over others is limited.

Crony capitalism, fascism, socialism/communism, or whatever other term they are using to describe collectivism today, allows people to corral and live off the backs of others.

Another word for government should be forced collectivism.

Fri, 07/05/2013 - 23:19 | 3725727 HardAssets
HardAssets's picture

Yep . . . all the various 'isms' are nothing but a facade, an illusion. 'Left' and 'right' mean nothing.  Its all about collectivism - the collecting together, that is - the corralling & control (mentally & physically) of all the livestock that the criminals live off of.

One day humanity may actually choose to wake up and see through the illusion.

Fri, 07/05/2013 - 12:30 | 3723922 FL_Conservative
FL_Conservative's picture

Because the "free" press does such a good job broadcasting the message that our "capitalist" system is failing and the ignorant sheeple, who have no clue what free market capitalism REALLY is, nod and agree and point fingers where they're told to.  Nothing changes until enough of the sheeple begin to re-educate themselves.

Fri, 07/05/2013 - 13:13 | 3724053 Turin Turambar
Turin Turambar's picture

Capitalism gets blamed because lefties hate it.  Very little of what we have is capitalism - private ownership of the means of production.  At best, we have a mixed, interventionist hampered market economy.


Only a moron blames the so-called "free-market" in light of the fact that 50% of every transaction involves a commodity (fiat currency) produced by a cartel (Fed) that has been granted a monopoly by the government and is backed by coercive force.  Free-market my arse.

Fri, 07/05/2013 - 11:13 | 3723709 Headbanger
Headbanger's picture

No!  Blame Canada! Blame Canada!..

Fri, 07/05/2013 - 10:59 | 3723671 tao400
tao400's picture

Yea but the market keeps going up and the people invested in it keep getting richer. that's a fact. And everyone is fleeing the bond market now so if it crashes only the dumb people will take the hit, as they should.

Fri, 07/05/2013 - 11:13 | 3723708 Bay of Pigs
Bay of Pigs's picture

Friday Humor?

Fri, 07/05/2013 - 11:00 | 3723672 sudzee
sudzee's picture

But its different this don't you know.

Fri, 07/05/2013 - 11:15 | 3723712 Headbanger
Headbanger's picture

Definition of insanity..  Doing the same thing over and over expecting a different result.

Fri, 07/05/2013 - 13:36 | 3724132 Herd Redirectio...
Herd Redirection Committee's picture

People like to think Greenspan and Bernanke are mere idiots, when really they are complicit.

Big difference.

Fri, 07/05/2013 - 11:18 | 3723718 kw2012
kw2012's picture

James Cramer? Is that you? 

Fri, 07/05/2013 - 11:35 | 3723756 Go Tribe
Go Tribe's picture

Different yeah, this time we have a macaca in charge.

Fri, 07/05/2013 - 11:00 | 3723674 krispkritter
krispkritter's picture

What's this 'we' shit?

Fri, 07/05/2013 - 11:01 | 3723676 buzzsaw99
buzzsaw99's picture


Fri, 07/05/2013 - 11:02 | 3723682 krispkritter
krispkritter's picture

 "It's a big club and (we) ain't in it..."

Fri, 07/05/2013 - 11:26 | 3723734 francis_sawyer
francis_sawyer's picture

It's a small club & we're NOT the ones getting blown...

Fri, 07/05/2013 - 11:27 | 3723740 Spastica Rex
Spastica Rex's picture

I don't care to belong to any club that will have me as a member.

Fri, 07/05/2013 - 11:04 | 3723684 fonzannoon
fonzannoon's picture

freakin exactly. The fact that Charles thinks "WE" blew it says a lot about his level of ignorance.

Fri, 07/05/2013 - 11:24 | 3723727 francis_sawyer
francis_sawyer's picture

Just another one who gets paid to work within the system... In the end, despite the 'controlled opposition' posture [designed to serve as a pressure valve release to keep the mobs from torching the joint], he, Santelli, and all the rest enjoy full benefits from the 'SYSTEM' they pretend to despise...


I don't know if any of these people can handle a wrench, butcher a hog, fix a leaky toilet, chop wood, or card cotton... They sure are handy with bullshit charts though...

Sat, 07/06/2013 - 03:04 | 3725957 Tapeworm
Tapeworm's picture

Francis Sawyer, I downed you for suggesting that Smith does nothing outside of blogging.

 He has a lot of useful info on how to  grow food to cook to several other items on being independent.

 So, you got one downer as compared to the scores of ups for you in the past from me. I think that he does a pretty good job of informing the hoi-polloi and I do contribute to his blog because of that.

 His posts are picked up here. He doesn't write for ZH, so look at these as posts for the less well equipped folks on the net.

 Thw best to you.

Fri, 07/05/2013 - 11:22 | 3723729 Pool Shark
Pool Shark's picture



He's referring to the >50% who keep returning the Demicans and Rupublicrats to office every two years...


Fri, 07/05/2013 - 11:41 | 3723764 Azannoth
Azannoth's picture

Here In Germany for example there are half a dozen "main stream" parties and 2 dozen "fringe parties" to choose from, yet still the sheeeple keep voting "same 'ol same 'ol", representative democracy is unfixable, it wallows in it's own excrements, feast on it's own flesh and keeps spreading it's own disease to those yet uninfected

Fri, 07/05/2013 - 13:38 | 3724138 Herd Redirectio...
Herd Redirection Committee's picture

The education system is run by whom, and for what purpose?

Once you are out of school, the media are your primary source of information.  What is their agenda?

I think if as humans we ACTUALLY valued education, instead of just saying that we do, we could do a lot better.

Fri, 07/05/2013 - 20:23 | 3725362 StychoKiller
StychoKiller's picture

This is precisely WHY all the Aliens on other planets avoid us like the plague, we're just NOT INTELLIGENT enough to bother with!

Fri, 07/05/2013 - 13:03 | 3724036 kito
kito's picture

sorry fonz, but unless you are off grid and have decided to completely opt out of the system....not use credit/debit cards, not have a bank account, not use federal reserve notes, not have a brokerage me....and everybody else has to take some responsibility for blowing it...............

Fri, 07/05/2013 - 13:39 | 3724141 Herd Redirectio...
Herd Redirection Committee's picture

I was only 18 when 9/11 happened.  Nope, sorry, not taking responsibility for the mess.  I will help clean it up though!

Fri, 07/05/2013 - 14:02 | 3724210 kito
kito's picture

the mess is now, and last year, and the year still in the system herd????? otherwise you are a hypocrite and the epitome of whats wrong with america these days...NO PERSONAL RESPONSIBILTY FOR THINGS GONE AWRY......blaming others and exonerating ones self for everything.....nope.....cant be.......not if you want real change...............

Fri, 07/05/2013 - 14:42 | 3724305 francis_sawyer
francis_sawyer's picture

"sorry fonz, but unless you are off grid and have decided to completely opt out of the system....not use credit/debit cards, not have a bank account, not use federal reserve notes, not have a brokerage me....and everybody else has to take some responsibility for blowing it"


Well ~ in that case Mr. Blintz Boy... It's all on YOU [NOT ME]... [but you will 'tune in' now & then, won't you, to keep us apprised about the 'BUY one get 7 free' sales at Banana Republic]...

In case you hadn't noticed... Have you 'perceived' any of the 'HATE' [which I politely & nicely warned about in the past wasn't coming from 'francis_sawyer', but would manifest in its own], begin to rise?... Meh ~ probably not... After all ~ this is a 'CIVILIZED' country right?...

Fri, 07/05/2013 - 14:43 | 3724332 kito
kito's picture

first off FS, you should try blintzes, they are great, especially filled with cherry, cheese. potato...however, im sure you know that are not a jewish-specific food...............................popularized in russia.................second.....its ALL on ME??? really hows that?????....because its always easier to blame others than take personal responsibility....the world is a much simpler place when one can externalize all faults???????? would make a great dictator....always blaming the evils of some other sovereign nation rather than facing the truth about the ineptitude of ones own rule........................

are you saying FS.....cause i really need to hear it....that you are a helpless victim???? forced to take out a mortgage, open a bank account, finance a car, use a credit or debit card, shop at target or walmart, use CHEESEPOPE currency????? come on FS, tell me you are a poor hapless victim of it all..................

Fri, 07/05/2013 - 15:03 | 3724370 francis_sawyer
francis_sawyer's picture

Popularized in 'Russia'... BWAHAHAHAHAHAAH!... Prolly 'Ukraine', right?... My favorite scene from 'Fiddler on the Roof' came in the last 5 minutes when the poor old oppressed bastards were being shuffled out of their town on a dreary & snowy day & the camera passes by [& makes prominent] a 'Star of David', [you know, the SoD that 'Rothschild' made famous in 1948 ~ fucking 43 years AFTER the "Fiddler on the Roof" storyline]...


As 'storylines' go... It's just one of MANY bullshit stories...


Answer to your question: NO ~ I DON'T CONSIDER MYSELF A VICTIM... I am living fine WITHOUT 'the system' [of this, I have spoken many times here]...

- I have no mortgage

- no debt

- no credit cards

- no bank account

- I have a truck that's PAID for [& has no GPS]

- I don't shop

- I go to Wal-Mart [on occasion], & buy shit... mostly groceries [that I don't grow or are out of season ~ or beer ~ or cheap wine, mostly for the 1 gallon glass jugs]... can never seem to find 9mm or 7.62X39 ammo... Last winter I found some 100% cotton long sleeved [thermal underwear type] shirts for $4 each so I couldn't pass it up... I bought the whole fucking rack of about 30 shirts [doubt I'll ever have to buy anymore in my life]...

No ~ I'm not a poor hapless victim [once I learned what 'THE SYSTEM' is all about, and WHO are the 'ASYMMETRIC' beneficiaries of it]... Before that I was a TOAD [like you]...

I type these words, hopefully, to inform 'OTHERS'... Some listen... MOST don't... Most seem to LOVE the CHEESEPOPE SLAVE system... You're living proof of that... You're a 'Class A' watercarrier...

Fri, 07/05/2013 - 15:31 | 3724460 kito
kito's picture

im sensing a turn in our relationship........we are back to name calling once again..............

you pay taxes?? property/income/sales, etc?????

you use cheesepope currency????


francis, you can twist and turn any "storyline" to fit your can grab any piece of "evidence" and string it into your world view......once your provincial mind is made up...the REST IS can thow anything into your obsessive compulsive all things CHEESEPOPE outlook.....again, i doubt you have ever interacted with more than a few cheesepopes to actually understand an entire group of people.........its ok FS, i still like you...i understand your frustrations..even if they are misguided......i would still save your life if need be........................

Fri, 07/05/2013 - 16:00 | 3724506 francis_sawyer
francis_sawyer's picture

Yeah ~ I'll stop paying my fucking taxes tomorrow, get my land repossessed, & get tossed into cheesepope jail... Is that what you want?... Maybe you think I should graffiti some synagogues just to PROVE my hatred [& that you were right all along]...


'Obsessive ~ Compulsive'... Is that how you view me?... I got news for you... IT IS FUCKING IMPOSSIBLE TO NOT INTERACT WITH CHEESEPOPES 24/7 EVERY DAY OF YOUR FUCKING LIFE [unless you're a fucking 'Amish' person or Mennonite]... You can't even kick back with a cold one on the 4th of July & watch fireworks... At one point I turn on the TV for about 5 seconds & there's fucking 'Neil Diamond' praising all the 'first responders', 'soldiers', & all the classic bullshit [on the steps of the Capitol], before breaking into 'Sweet Caroline' with about 15,000 sychophants partying & lip synching the lyrics... I thought I was going to fucking vomit... So I suppose if I go to a bar mitzvah tomorrow my allergy will be cured...

Go ahead & write me a speech... Tell me how the signatories of 'The Declaration of Independence' [who were revolutionaries to King Edward III, of the House of Hannover, later to become House of Windsor, & who ALL were 'puppets' of what managed to become the Rothschild controlled Bank of England, & Hanover, & Paris, & who'd managed to overthrow the Hapsburg HRE dynasty on the back of sheer money printing & conceived warfare], would be pleased to see their efforts come to a fucking cheesepope minstrel glamorizing a 'totalitarian state' in servitude to the masters they sought to become free of... Y'all are great storytellers... I'm fucking all ears... Explain your way out of this one...

& don't fucking patronize me...

Fri, 07/05/2013 - 16:15 | 3724641 kito
kito's picture

check how this post strand started today....who initiated the patronization today????????............FS....i cant do this matter what i SAY...or will never be swayed.......i recognized this a while ago, which is why i dont interefere with your cheesepope rants may remain deluded into thinking that some entire group/religion/whatever label you responsible the worlds ills...that they are behind everything and everything that is wrong with the world....that they are almighty.....omnipotent........that they have remained this way since the dawn of civilization.......unopposed.....that no member of this "whatever you call it" has ever done good for society, or even for another fellow human being....that every "storyline" that counters your worldview of cheespopes can never be the have that right....and i......cheesepope.....would never see to you being stripped of that right.............................

and watching neil diamond does not make for "interaction" with a cheespope......which only furthers my point that aside from what select readings you glean your view have no direct knowledge based on any meaningful, personal interaction with a large number of cheesepopes.............wake me when "the creature part II" is out on kindle.......................

Fri, 07/05/2013 - 17:49 | 3724941 francis_sawyer
francis_sawyer's picture

Look dude... You want to prance around and act like everything is even... Must be nice...


- you may remain deluded into thinking that some entire group/religion/whatever label you responsible the worlds ills...

all I know is that 99% of the 'ills' that plague the world & keep billions oppressed [slavery, corruption, war, environmental pollution, stupidity] are the DIRECT RESULT of money printing... I don't print the fucking money... But as you so casually point out... Fucking Indiana Limestone quarried buildings do that... No 'people' are involved...

- that they are almighty.....omnipotent........that they have remained this way since the dawn of civilization.......unopposed

I DIDN'T say that... I said they cleverly usurped, what was, the Hapsburg dynasty & have more or less had their way [globally] since, around, the time of the French Revolution...

- that no member of this "whatever you call it" has ever done good for society, or even for another fellow human being...

I say that most NEVER SAY A WORD about the larger angle [but they never miss a beat in talking about the Holocaust]...

and watching neil diamond does not make for "interaction" with a cheespope

Yes it fucking does... Why?... Because to interact with brainwashed people, you have to toe the 'politically correct' line [Hell ~ nowadays you even have to do it on Zero Fucking Hedge]... Thou shalt not say anything bad about these people or thou shalt be banished... The first thing that happens when you open your mouth [with whatever truth], & the 'labels' start flying... Tell me just how successful I might have been if I'd run down to the Capitol yesterday, made my way to the front of the stage among the crowd cheering Neil Diamond's praise of our brave military, and held up a sign that said 'Ban the Fed' & get the fuck out of Syria...


You want to point the finger at me [because the only thing left for me to do to get totally off the grid is to move into the wilderness [at which point I'd probably end up getting arrested for vagrancy]... Well ~ Let me tell you just how hard it is... One of the last remaining countries in the world that gives the middle finger to the idea of having a Rothschild central bank is surrounded by American military bases [whose soldiers are paid with printed money]... The last 3 'holdouts', Hussein, Khadaffi, & Chavez, are all dead... So please, enlighten me... Just how much 'meaningful, personal interaction do you require me to have with people who casually look past these facts & pretend they mean nothing?...



Fri, 07/05/2013 - 18:14 | 3724977 kito
kito's picture

as i said....lets agree to disagree.........i still support your disgust for the system...even if i disagree with your broad, sweeping, misguided (my opinion of course) characterizations of a "whatever you label it" of people.................................................

Fri, 07/05/2013 - 18:32 | 3725045 francis_sawyer
francis_sawyer's picture

Wanna 'sway' me?... OK... END THE FED [that 'philanthropic' entity owned by sweetie pies & set up to benefit all of mankind in an equal way]... I'd be curious to see all the 'fortunes' that are lost when that happens... Then ~ have all those nice people invite me over for dinner... I'd be interested ~ in that moment, to find out who they 'blame' their turn of bad luck on if there are no Romans or Pharaohs handy...

Fri, 07/05/2013 - 14:36 | 3724309 RaceToTheBottom
RaceToTheBottom's picture

If you are getting booffed by the man, you are in it.  And we are all getting booffed by the man.


It least I am man enough to admit to getting booffed...

Fri, 07/05/2013 - 11:02 | 3723681 illyia
illyia's picture

It was blown for us.

Fri, 07/05/2013 - 11:09 | 3723696 HowardBeale
HowardBeale's picture

So who can quantify today's move the the TNX? Isn't a move that size a market dislocating event? Are we about to plunge into the abyss?

Fri, 07/05/2013 - 12:38 | 3723961 MrSteve
MrSteve's picture

I'll quantify it for you: One (1) Flight to Quality (apparent).

While another set of ganstas set up PM shop in Asia, the RE purchases with Asian money that keep California hopping tell another, Kyle Bass-like tale of China's reality.

The coordinated soothe-talkin' central bankers pouring lies on troubled waters only reinforces the dire straights in which "WE" are caught.

I heard a Quicken loan radio ad pitching 7 year, ARM 30 yr term mortgages because sub 5% mortgages are still too costly for the cashless, jobless consumer.

"WE" are cruising deeper into Greenspan's "Banana" and the world press is trying to ignore it.

Who sang? We don't be fooled again!!


Fri, 07/05/2013 - 11:14 | 3723700 SheepDog-One
SheepDog-One's picture

'We'? Do you have a mouse in your pocket Charles? What do you mean 'we'? I've been warning people about this planned coordinated takedown for years AND warned in 2008 'LOOK OUT IT'S JUST A TRICK!' so don't include me in this 'we' shit.

Come on man, there was never any intent to 'fix things', they just needed a real big excuse to MONETIZE THE DEBT! The last act of all imploding failed empires.

No matter how much people don't want to accept that, that's ALL that's going on here.

Fri, 07/05/2013 - 12:13 | 3723857 WezTheJuic
WezTheJuic's picture



While to also hear the other bit of info, "The banks are sitting on 1.4 trillion dollars with the gov't paying them to sit on that amount"  Will have its effects as well."


Usually when I hear the word we?  I usually ask, "What, do you have worms?"





Fri, 07/05/2013 - 13:40 | 3724146 Herd Redirectio...
Herd Redirection Committee's picture

Nothing is so pretentious as the Royal We.

Fri, 07/05/2013 - 11:13 | 3723707 SubjectivObject
SubjectivObject's picture

Yo! Charles.  About this "We" schitt.

How will the power be taken from the corrupt monsters that act in "We's" name, against us?

Fri, 07/05/2013 - 11:16 | 3723714 Seize Mars
Seize Mars's picture

Yeah, "we" didn't blow anything.

Fri, 07/05/2013 - 11:24 | 3723715 ebworthen
ebworthen's picture

Most excellent.

Thanks for the megaphone "Rotating Asset Bubbles" chart; Washington and Wall Street are deaf, or have their fingers in their ears while they say "La-La-La-La-La..!"

"...cartel-crony capitalism and its captured political class of toadies, apparatchiks and factotums."

LOL!  Exactly.  Thanks for the new word for my lexicon, "factotums".


  1. a person having many diverse activities or responsibilities
  2. a general servant
Or in the vernacular, a "gopher" or "gophers".  This post should be required reading for the entire CNBC workforce, though some might go blind.
Fri, 07/05/2013 - 11:19 | 3723723 Seasmoke
Seasmoke's picture

just post a picture of those who committed Treason. its the one with Hank Paulson and Nancy Pelosi.... i remember that day and knew the pandoras box of moral hazard they just opened 

Fri, 07/05/2013 - 11:27 | 3723737 Bay of Pigs
Bay of Pigs's picture

Yes, the day that Fannie Mae and Freddie Mac were nationalized was the end of the line, Sept. 6th, 2008. Moral Hazard is long gone.

"I strongly endorse both the decision by FHFA Director Lockhart to place Fannie Mae and Freddie Mac into conservatorship and the actions taken by Treasury Secretary Paulson to ensure the financial soundness of those two companies."

Ben Bernanke

Fri, 07/05/2013 - 12:18 | 3723878 Bastiat
Bastiat's picture

I thought at the time Henry Paulson should have been arrested in Congress and walked out in leg irons.

Fri, 07/05/2013 - 11:21 | 3723724 kw2012
kw2012's picture

When the SHTF, I plan on selling my 46 year old manly body to all of those desperate rich women.

Fri, 07/05/2013 - 11:28 | 3723743 disabledvet
disabledvet's picture

it's a commodity bubble not a bond bubble (yet.) gold and silver has been crushed. the only outlier is oil right now. natural gas prices were the first to collapse which was very much a growth driver...and has bee since all of last year. the cost of putting together cloud based computer systems has completely collapsed as well (Oracle's stock price) but this is good for the economy going forward as well as suddenly data security didn't just become became cheap if not free. Third is the political push for rooftop solar. this has the capacity to generate basically free electricity from the consumer using business and the Government to "pay them" in effect for use of their roof top. we'll see how that storyline progresses but there is a lot of advantages to helping out the homeowner here...putting cash in his pocket and what not. and of course the USA has the dollar (still...amazingly)...what is it called? "that exorbitant privilege"? she's been rallying for two years now...that doesn't say crisis to me (unlike everything the Bush Administration did in response to 9/11.) i do agree "we shall see." the 90's "blew it" in my view. all those friggin' techies and their toys and what did the USA get as a consequence? a MASSIVE debt regime. that has to be financed and only banks and a growing economy can do that. be barely have either right now.

Fri, 07/05/2013 - 11:35 | 3723755 Bay of Pigs
Bay of Pigs's picture

What horseshit. The bond bubble is the biggest in human history, not to mention the USD bubble right along side it. 


Fri, 07/05/2013 - 11:40 | 3723766 fonzannoon
fonzannoon's picture

Take a look at Crude now breaching $102.50 and $107.

The 10yr sitting at 2.7%.

I am guessing we are staring at a fake GDP print of close to 0% soon.

The consumer is dead and wall street is throwing it's dead corpse out of the window.

Fri, 07/05/2013 - 13:44 | 3724155 Herd Redirectio...
Herd Redirection Committee's picture

Its funny, he knows the USD has been rallying for two years plus FOR NO REASON essentially, and yet thinks thats a sign of its good health, not that its the BIGGEST BUBBLE IN EXISTENCE (possibly in history).

Fri, 07/05/2013 - 11:44 | 3723775 Azannoth
Azannoth's picture

What is this? Another old time ZH poster going "rouge"? or just got your account hacked? .. better change my password now that I think of it

Fri, 07/05/2013 - 12:18 | 3723875 Umh
Umh's picture

I guess you can put makeup on anything.

Fri, 07/05/2013 - 12:08 | 3723838 WezTheJuic
WezTheJuic's picture

You have some very real points. 


So.  What will happen as that other real trend continues to take control?  "The process of asking that real question.  Why?"


Without the correct question being asked, the results can be very ugly.



Fri, 07/05/2013 - 11:30 | 3723748 NotApplicable
NotApplicable's picture

Well, I see the incoherence of "we" is well covered here.

If only there were such an entity known as "we" that is capable of independent action, rather than an abstract delusion, then perhaps Mr. CHS might be onto something.

Then again, maybe it's a typo, and he was trying to say "Whee! A blow job!"

Fri, 07/05/2013 - 11:39 | 3723760 nakki
nakki's picture

People "our" debt will never be paid off. Its impossible, hair cuts will be had by all, if you have something you'll be given the new$, if you don't, even cat food will look like a luxury. The whole idea that we "choose" our leadership is a complete fabrication . They are chosen for us. Presidents come and go but the "king makers" will always be behind the scene, making the choices for the masses. That is a natural thing, "meet the new boss, same as the old boss".

Fri, 07/05/2013 - 12:07 | 3723832 Forward History
Forward History's picture

Indeed. The bankers were elbow-deep in both major candidates in the last election cycle; this was public knowledge and I heard it raised exactly zero times on "talk" radio and in news outlets.

Fri, 07/05/2013 - 13:46 | 3724163 Herd Redirectio...
Herd Redirection Committee's picture

Wars, elections, its all the same.  If you want to control the outcome, control both sides.

Fri, 07/05/2013 - 11:40 | 3723767 Catullus
Catullus's picture

The only opportunity blown over the past half decade was the chance that assets would have actually been transferred over to a new group of people. The bailout was to preserve the current control structure. That's it. They bailed out commercial and I banks. You could have let them all go bankrupt and they would have had a fire sale of assets. Some even at severely undervalued prices. But that would have been the engine of profitability (sustainability) that would have precluded additional debt creation to maintain the activity. Who takes the big job hits when that happens? Executive and upper management jobs that could have opened the door to creative ideas and procedures and work environments. When you consider it this way, you can only conclude that bailing out unsustainable activity simply holds resources and assets hostage.

The debt increases with the domestic loans decreasing is a symptom of the governments in the US going ever more into the red everyday. And besides these idiotic wars, the main driver has been the welfare state as a change decade over decade. This was already an outstanding liability. We just didn't want to call it debt until the cash flows hit the books. I think that's a separate dynamic.

But one that plays into the other: assets are being held hostage whilst the government is going to demand an ever higher amount of those assets to sustain itself (and the system). Something's obviously going to give. I don't expect the people with the bigger guns will give in.

Fri, 07/05/2013 - 13:49 | 3724172 Herd Redirectio...
Herd Redirection Committee's picture

The world in its current state ain't worth saving.  Thats why I spend time thinking of what comes next, although, honestly as long as it involves decentralization of power (power and wealth being analogous).

Fri, 07/05/2013 - 11:55 | 3723800 newworldorder
newworldorder's picture

We the people have elected the kind of political representation we deserve for at least the last 30 years. The majority of us are not capable of electing political leaders who will legislate for the common good. It is too late to turn this ship around. The ignorant have replaced the responsible voters. The political establishment knows this and they have catered to the uninformed for at least 2 generations.


Fri, 07/05/2013 - 13:43 | 3724153 MeelionDollerBogus
MeelionDollerBogus's picture

You can't elect people not on the ballot. You can't get on the ballot when you're honest. The system is a sham.

Fri, 07/05/2013 - 13:50 | 3724178 Herd Redirectio...
Herd Redirection Committee's picture

Plus, how does someone telling the truth compete with someone telling you everything you want to hear?

Fri, 07/05/2013 - 11:58 | 3723806 Getting Old Sucks
Getting Old Sucks's picture

O/T  Here's an interesting audio of college student pressing NSA college campus recruiters to tell the truth.

Fri, 07/05/2013 - 17:28 | 3724873 MeelionDollerBogus
MeelionDollerBogus's picture

Seriously, someone needs to do a phone-drive NSA-application protest.

It only needs to do this:

#1 phone any person

#2 say you've got great in the field experience at protests and would love to apply to the NSA

#3 when the person says you haven't called the NSA you tell them "oh I know that. they listen to EVERY call. You just need to keep the line open long enough for me to say it. Hey, maybe you should join the NSA too! Just say the magic words"

Fri, 07/05/2013 - 12:05 | 3723822 Forward History
Forward History's picture

The problem goes deeper than simply admonishing the feds; the issue is the rise of those that believe not only is it possible for human intellect to steer a vast financial apparatus for the benefit of all, but that they should be doing so.

I tried to warn someone the other day just how dangerous centralized planning of the economy is, and that we couldn't borrow and raise the debt ceiling forever. He was completely comfortable with doing so until the cows came home.

At this point, I'm just worn out from trying to explain it to people and trying to get them to realize how pervasive and misguided this entire system is. They either treat you like a quack, or they admonish you for doubting the brilliance and necessity of federalism "in our modern age". I'm done. I'm preparing my family, and if someone expresses a desire to learn, I'll teach, but if there's one thing empires teach us it's that most people simply want their "stuff", and they care little of anything else.

Fri, 07/05/2013 - 12:50 | 3724003 SubjectivObject
SubjectivObject's picture

And the current empire pardigm is expert at keeping persons isolated from each other, whether they're in the same space for long time or not.

We are hanging separately.

Fri, 07/05/2013 - 13:50 | 3724180 Herd Redirectio...
Herd Redirection Committee's picture

Divide and conquer.

Fri, 07/05/2013 - 12:09 | 3723839 dcb
dcb's picture


Fri, 07/05/2013 - 12:15 | 3723863 WezTheJuic
WezTheJuic's picture

Once again Tyler.


"Thank-you for the spectrum of articles."





Fri, 07/05/2013 - 12:47 | 3723994 SubjectivObject
SubjectivObject's picture

We Blue It

Old Ramsey Lewis number that sounds 3-D heavenly from old mono vinyl played through an appropriate stylus.

A perfect antidote for all the other we blew its.

Fri, 07/05/2013 - 13:57 | 3724192 involuntarilybirthed
involuntarilybirthed's picture

That 2.72% on the 10year gotta hurt something? 

Fri, 07/05/2013 - 14:02 | 3724209 q99x2
q99x2's picture

Great article. These guys are pretty smart.

Fri, 07/05/2013 - 14:30 | 3724293 evernewecon
evernewecon's picture



Fri, 07/05/2013 - 14:38 | 3724315 moneybots
moneybots's picture

There wasn't any interest in opportunity to fix it.  It wasn't broken in the first place.

We had Glass Steagall for one.  It had worked since the 1930's.  There was no reason to dismantle it- except to allow the mess that now "needs" fixing.

The people who dismantled Glass Steagall don't want it fixed, so nothing has been squandered by them.

Fri, 07/05/2013 - 14:40 | 3724323 Wave-Tech
Wave-Tech's picture

Sooner or later the misinformed segments of "we" are likely to manifest in throngs storming the capital i.e. Egypt - which could well be the final nail in the coffin for freedom.

Instead, throngs of the "we" would be far-better served (after grasping the strategies and tactics outlined in "The Sword & Sovereignty) rallying in peacful mass to their state legislatures insisting upon the necessary and purposeful restoration of constitutionally mandated state militia's.

Following the absolute failure and systemic insolvency that shocked global economies in 2008-2009, people of The United States , and the World at large, missed an extraordinary opportunity to champion a revolutionary shift toward liberating global citizenry from the corrupt tyrannical grip of the evil twins who have implicit mastery and command over a sacred trinity of deceit, illusion, and destruction.

Missing the momentous opportunity in 2009, we sheepishly stood by quietly in fear as the evil twins savagely plundered its citizenry of wealth and treasure, taking it one-step closer to the inevitable brink of complete and utter demise.Following the absolute failure and systemic insolvency that shocked global economies in 2008-2009, people of The United States , and the World at large, missed an extraordinary opportunity to champion a revolutionary shift toward liberating global citizenry from the corrupt tyrannical grip of the evil twins who have implicit mastery and command over a sacred trinity of deceit, illusion, and destruction.

Let us not repeat such errors at the turn of the next crisis, which shall upon its certain arrival, will again elevate great fears amongst the masses. At the next crises, our masters will try to shake us once more, and again coerce us to acquiesce to the wisdom of those responsible for its cause, and bow to them as their servants, in carrying all of the generational burdens, costs, and liabilities associated with their recurrent failures.


Fri, 07/05/2013 - 16:16 | 3724644 hyperbole2000
hyperbole2000's picture

To quote Churchill Democracy is the worst form of government except for all the rest.  Democracy proves their is no GOD only the Devil; however, the Devil is not metaphysical. The Devil is merely the collective concuiousness of humanity. We each must kick our personal Devil's ass every second of every #$* day because collectively if we dont we are inevitably collectively $%*'d.  Centralization suppresses free will and merely accelerates the geting @#$%%^'d up process. Democracy like Theocracy is merely a false prohet like all other forms of centralized power. Democracy that fights centralization like the US Founding fathers proposed is the only sane, not perfect, course.

Fri, 07/05/2013 - 17:49 | 3724939 FreeBull
FreeBull's picture

Politicians don't know anything about the free market, why do we continue to let them screw up the system...

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