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 account.........you....and 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 before.....you 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 account.........you....and 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????????........you 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 worldview..you can grab any piece of "evidence" and string it into your world view......once your provincial mind is made up...the REST IS EASY..............you 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 anymore...no matter what i SAY...or SHOW...you will never be swayed.......i recognized this a while ago, which is why i dont interefere with your cheesepope rants anymore.......you may remain deluded into thinking that some entire group/religion/whatever label you give..........................is 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 truth......you 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 from....you 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 give..........................is 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?"





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