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America: Bankrupt And On Borrowed Time

Tyler Durden's picture




 

Submitted by Thad Beversdorf via First Rebuttal blog,

Thomas Jefferson is credited with the following sage advice, “The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.” And so it seems sometimes the answer is right in front of us all along and we just fail to see it.

We hear a lot of talk these days about inflation. For decades the western world has been misled about a necessity for inflation to grow an economy. This is entirely false. Inflation has no relevance to economic growth; inflation is a depressive force on an economy and it can only come by way of increased money supply.

The apex of the discussion is that price increase does not equate to inflation. Inflation is but one of two paths for rising prices. More specifically, prices can rise by way of supply/demand fundamentals of an asset itself and by way of supply/demand fundamentals of the currency form being used to transact the underlying asset. The prior will raise prices in all currency forms while the latter, being inflation, will raise prices only in that relevant currency.

For inflation to occur demand for a given currency must decline relative to its supply. This can happen if consumers lose faith in a currency and thus demand less of it, or by governments increasing supply without proportional increases in demand. The latter is exactly what we’ve seen over the past 100 years but to such a grotesque degree over the past 8 years that it may have actually shattered the foundation of the economy of which it was driving. This is precisely the chain reaction that Thomas Jefferson had warned us would result from a private central banking system.

Once the economy is broken an epidemic of resource misallocation leads to an immense narrowing of income distribution, ultimately paralyzing the velocity of money; the result being an income-less society save for an elite slice. This leads to mass public and consumer debt creation in an effort to stave off the collapsing natural demand that ultimately ends in deflation when the debt efforts, after a short reprise, actually hasten the collapsing demand by hammering the final nail in the budgetary coffin. At such a point deflation is essentially infinite as people are willing to trade anything for a dollar to purchase food, or inflation is infinite as people will simply circumvent dollars and barter; an interesting paradox that in practice will be a moot point given the vast majority will have nothing to trade for food or dollars because ownership is no longer a reality.

It seems then, that Jefferson’s prediction is theoretically sound, but let’s see if we can find any empirical evidence to either support or refute his cautionary message. We know that dollar inflation has been approximately 2400% since 1913, 2000% of that devaluation coming subsequent to 1971 when Nixon moved to a pure fiat currency. The reason we moved to a fiat currency is to remove the restriction on money supply that is inherent to a convertible currency. We can see in the next chart that inflation is directly linked to money supply, which has seen around 1700% increase since 1971.

Screen Shot 2015-04-07 at 12.25.18 AM

M2 Money Supply

This ‘easy’ money accelerated significantly around the mid 1990′s and this has led to a misallocation of resources. To see this, let’s look at the relationship between corporate fixed capital expenditures and dividends. The idea being that fixed capital expenditures are economically productive meaning they lead to economic expansion, whereas dividends divert cash off corporate balance sheets and thus detract from capital expenditures, having a contractionary force on the economy.

fixed-cap-to-div

The above chart clearly depicts a significant change in the economy’s allocation of corporate resources at the same time money printing accelerated. Fixed capital investment was a much larger share of GDP than dividends up until the mid 1990′s when that began to reverse.  Again moving to a market environment that promotes a contracting rather than expansionary economic process.  We should be able to see this effect actually taking place via declining capacity utilization.  As a result of that we should then see declining labour participation rate and declining incomes from slack in the labour market. Looking at the data this is exactly what we find.

Screen Shot 2015-04-06 at 4.38.38 PM

Notice that all three indicators begin to trend downward around 1998, shortly after (and one could suggest as a direct result of) the resource misallocation that began a few years earlier in the mid 1990′s. The next link in this chain should be an expansion of consumer loans in an attempt to offset the resulting demand deterioration from the weakening job market conditions.

Screen Shot 2015-04-06 at 5.52.29 PMScreen Shot 2015-04-06 at 5.54.05 PM Screen Shot 2015-04-06 at 5.13.57 PM

We find abundant empirical evidence in the above charts showing an acceleration of consumer debt during the mid 1990′s and again around 2009.  And this is perfectly in line with our theory and so we seem to be on the right track.  Now the obvious result of massive increases in consumer debt is that ownership is being replaced by indebtedness.  That is, to a great extent now we rent or borrower our assets as opposed to owning them.

Screen Shot 2015-04-05 at 7.30.52 PM

In the above chart we see that home ownership is now back to the level it was before we ended Bretton Woods in 1971. And it’s not just housing, today about 75% of new car sales are being financed and with longer maturities than ever before. In short, ownership of the 2 major assets typical to the traditional American family has been on a sharp decline for the past 10 years with no signs of slowing.

The American dream is built on ownership because it represents substantive progress by way of building a family’s net worth. A net worth that has declined by 40% since 2007 for all but the very top of the economic food chain.  But it’s not only the American dream that is in retreat. The reality is that over the past 8 years increases in public debt have outgrown increases in GDP.  The nation is borrowing more than it’s producing and spending more than it’s collecting every quarter.  A trend that is to continue and to worsen each and every new year according to the CBO’s own projections.

Screen Shot 2015-04-02 at 11.41.24 AM

Screen Shot 2015-04-05 at 8.47.33 PM

Where does this leave America and really the rest of the western world whose data will mirror the US?

Screen Shot 2015-04-02 at 2.27.54 PM

Bankrupt and on borrowed time.

 

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Tue, 04/07/2015 - 17:11 | 5968012 nope-1004
nope-1004's picture

And the answer the Federal Reserve would give to TJ today would be, "sorry, we don't understand gold, oil, interest rates, or financial markets".

Sociopaths and public liars they are, because they know they are bankrupt.

Tue, 04/07/2015 - 17:14 | 5968037 nope-1004
nope-1004's picture

Yes, and that last chart CLEARLY indicates to me that the plan for a new/altered/changed/ financial system or dollar is coming.  No other way out since default is not an option to the bankrupt ass-hats.

 

Tue, 04/07/2015 - 17:16 | 5968047 knukles
knukles's picture

Associated sorta OT....

Russian hackers hack White House.  Gosh, so that's why Obama wants the goobermint in charge of all cyber security.

http://www.cnn.com/2015/04/07/politics/how-russians-hacked-the-wh/index....

To hell in handbags

Tue, 04/07/2015 - 17:28 | 5968098 TahoeBilly2012
TahoeBilly2012's picture
Another great quote, dovetails with Jefferson's above... “The illusion of freedom will continue as long as it's profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.”


Frank Zappa

Tue, 04/07/2015 - 17:35 | 5968132 COSMOS
COSMOS's picture

But the candidates vetted by AIPAC and which are heavily promoted on AIPAC members' controlled mass media outlets, assure me I am free and my vote counts.

Tue, 04/07/2015 - 18:07 | 5968285 Monty Burns
Monty Burns's picture

Of course your vote counts. And it's much appreciated by whatever ZioCon-approved Congresscritter you give it to.

Tue, 04/07/2015 - 18:16 | 5968317 Bananamerican
Bananamerican's picture

"first by Inflation, then by deflation..." is a great line, whoever said it, but I thought the Jefferson attribution had been debunked..

Tue, 04/07/2015 - 18:28 | 5968359 Son of Loki
Son of Loki's picture
Las Vegas Man Kills Himself After Casino Revoked His Lifetime Free Buffet Pass

 

http://news.yahoo.com/las-vegas-man-kills-himself-casino-revoked-lifetim...

 

Merikans are 'ceptional!

Tue, 04/07/2015 - 19:11 | 5968499 RafterManFMJ
RafterManFMJ's picture

Sweet!

Pls link his burial site as I want to shit on his grave.

Tue, 04/07/2015 - 19:51 | 5968599 r00t61
r00t61's picture

Though sage the opening quote may be, Jefferson never said any such thing.

The use of the term "deflation" in an economic context didn't come about until the 1920s.

If you're going to quote people, dear Mr. Bevesdorf, at least use things they actually said.  Otherwise when people find out that you just stupidly and sheepedly copied your prattle from the world wide error-net, you credibility rightly gets called into question.

Here are some actual things Jefferson said about banking:

"That we are overdone with banking institutions which have banished the precious metals and substituted a more fluctuating and unsafe medium, that these have withdrawn capital from useful improvements and employments to nourish idleness, that the wars of the world have swollen our commerce beyond the wholesome limits of exchanging our own productions for our own wants, and that, for the emolument of a small proportion of our society who prefer these demoralizing pursuits to labors useful to the whole, the peace of the whole is endangered and all our present difficulties produced, are evils more easily to be deplored than remedied." (1810)

"Like a dropsical man calling out for water, water, our deluded citizens are clamoring for more banks, more banks. The American mind is now in that state of fever which the world has so often seen in the history of other nations. We are under the bank bubble, as England was under the South Sea bubble, France under the Mississippi bubble, and as every nation is liable to be, under whatever bubble, design, or delusion may puff up in moments when off their guard. We are now taught to believe that legerdemain tricks upon paper can produce as solid wealth as hard labor in the earth. It is vain for common sense to urge that nothing can produce nothing." (1816)

"The system of banking we have both equally and ever reprobated. I contemplate it as a blot left in all our Constitutions, which, if not covered, will end in their destruction, which is already hit by the gamblers in corruption, and is sweeping away in its progress the fortunes and morals of our citizens." (1816)

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." (1816)

 

And my favorite Jefferson, and maybe my favorite of all-time:

"The tree of liberty must occasionally be refreshed with the blood of patriots and tyrants." (1787)

Tue, 04/07/2015 - 18:31 | 5968360 ratso
ratso's picture

Seven years of disaster scenarios from ZH.  Endless conspiracy theories, endless diatribes that the sky is falling, endless stories of how the USA is about to go off a cliff, endless dire warnings about stock market crashes, I say these are just endless bullshit.  The USA IS DOING JUST FINE.  Time to recognize that point somewhere. Oh right it doesn't sell.

Tue, 04/07/2015 - 18:41 | 5968400 TahoeBilly2012
TahoeBilly2012's picture

7 years is about right for another blowup, it's in the charts Ratso. FYI, ZH posts very few "conspiracies" and lotsa facts and data. Amazing that idiots like you (probably a computer) would have one believe this place is all about "conjecture" when in FACT (asshole) that's what your daily news feed is, conjecture, shallow, lacking any historical perpective, lightweight, propaganda-ish, flat out lies....No conspiracy needed here, just upayable debt levels, endless wars on terror and idiots like you FATSO.

Do you think that computer is damaged now? Not.

Tue, 04/07/2015 - 18:56 | 5968446 ratso
ratso's picture

You seem to like the Coolaid.

Tue, 04/07/2015 - 20:39 | 5968818 Son of Loki
Son of Loki's picture
Why the middle class is doing even worse than you think (LA TIMES)

 

By defining the middle class demographically, they find that families falling into the murky category of "neither rich nor poor" are under much more crushing economic pressure than the sheer numbers indicate.

 

http://www.latimes.com/business/hiltzik/la-fi-mh-why-the-middle-class-is...

Tue, 04/07/2015 - 20:42 | 5968830 WSMassiv
WSMassiv's picture

Nice. You made it this far. I can see a little bit of that light through that crack of a doorway into your mind. Try to open it just a little bit more. I promise it gets easier. Yes, for sure it is scary learning that the world you thought existed is absolutely nothing like the truth of it. Yes, your also right that you are a bit old to be exploring these options. The world is an open book when you can think for yourself. Turn that TV off for just 20 minutes more a day, and eventually it will be off for good. Now run along, and learn even more, and yes even the scary stuff because that is where you will grow the most...

Tue, 04/07/2015 - 20:36 | 5968802 Cautiously Pess...
Cautiously Pessimistic's picture

Thanks for the pep talk!  I think we can shut ZH down now boys!  Not going to need this site any longer...USA is back!  And stronger than EVAR!!!!

Tue, 04/07/2015 - 23:53 | 5969580 AGuy
AGuy's picture

"The USA IS DOING JUST FINE. Time to recognize that point somewhere. Oh right it doesn't sell."

92 Million not in labor force. 50 Million on Food stamps. America has become a utopia! /Sarc

 

Thu, 04/09/2015 - 11:06 | 5975259 fallout11
fallout11's picture

Yes, because America is so much better off today than it was in 2007! </sarc>

Tue, 04/07/2015 - 17:38 | 5968137 eatthebanksters
eatthebanksters's picture

Inflation allows the government to borrow more, which they always do to fulfill campaign promises...if you don't give shit away then how do you get elected?  The problem is these fuckers (politicians) keep borrowing to buy shit to fulfill promises to the people who voted for them.  The problem is the people who voted for them don't realize that someday they are going to have to pay off that bill...kind of like the the guy that has the trophy wife that gives him great sex and buys him a $10k watch Christmas present using HIS credit card...figuratively they both give each other something and fuck each other at the same time.  This is all a result of corrupted system run by corrupt poiticians who want power, and, stupid people who vote for them...its not going to change, in part becasue politicians love stupid people who like 'free' shit.

Tue, 04/07/2015 - 17:31 | 5968115 negative rates
negative rates's picture

Yet the default cards remain the surprise, the trick, the treat, and the feat.

Tue, 04/07/2015 - 18:04 | 5968273 spinone
spinone's picture

The FED is the bad bank.  Audit the FED movement is controlled opposition and part of the plan.  They will bankrupt it, create popular opposition to it, shut it down and start a new one with the same owners.

Tue, 04/07/2015 - 18:37 | 5968044 TruthInSunshine
TruthInSunshine's picture

I posted this in other thread but it's more appropriate/relevant here.

Go to safe harbors.

2015 is going to be bad for "risk on", unhedged longs all over the globe, and this dovetails nicely if it occurs in late 2015 with the 2016 Presidential Election Cycle, too.

Average Joes & Jills that went into heavy debt to finance large scale purchases such as houses, etc., couldn't have done so at a worse time with the possible exception of 2005-2007.

This is also why publicly traded corporations are literally throwing all white collar personnel at getting as many M&A deals and bond (aka debt) offerings done as quickly as possible; Fed will have to raise rates a symbolic amount this year to keep narrative of growing economy alive, yet even symbolic hike in fed funds rate is going to turn bond & equity markets upside down given the near zero lower bound rate we've been working from for 6 long years (if you know an attorney, accountant or other such type at a publicly traded, well-capitalized company, ask them about the rush to merge, acquire and float bonds).

The last time we were facing macro/global economic (and geopolitical) risks like we now see before us was in the early 1930s.

This spells serious troubles, what the central banks working in collusion for 6 years now, have sewn, this.

Tue, 04/07/2015 - 17:18 | 5968059 tumblemore
tumblemore's picture

counterfeiters

Tue, 04/07/2015 - 17:24 | 5968077 daveO
daveO's picture

Inflation is also theft of productivity increases. It's only counted compared to last year's prices, not accounting for any increased productivity. Only electronics manufacturers have managed to outpace it, recently (lower prices for superior products despite FED created inflation). This is how they've managed to reduce 'real' homeownership down to only 1 in 6 who are mortgage free. We've already passed TJ's prediction into peak debt.  

Tue, 04/07/2015 - 18:11 | 5968298 Ham-bone
Ham-bone's picture

So many ways to come to the same conclusion...America (and all advanced economies) are bankrupt.

http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-31-why.html

Tue, 04/07/2015 - 18:31 | 5968364 cheapy
cheapy's picture

Thomas Jefferson is credited with the following sage advice, “The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."

Thomas Jefferson never said that.  Why is it that you people can't actually LOOK UP a quotation before citing it????

http://www.monticello.org/site/jefferson/private-banks-quotation

Tue, 04/07/2015 - 19:08 | 5968491 dirtscratcher
dirtscratcher's picture

@cheapy   The article doesn't claim he said that. It states that he is credited with it. Rightly or wrongly, it is true that he is credited with that statement.

 

"We people" (at least some of us) have looked up that quote, and yes we understand that it is false attribution. But the sentiment involved still has traction because even though Jefferson never said that, he should have and probably would have.

Tue, 04/07/2015 - 23:20 | 5969480 chilli sauce
chilli sauce's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Wed, 04/08/2015 - 02:33 | 5969762 Chauncey Gardener
Chauncey Gardener's picture

Would you just go the fuck away and not badger us with your MLM bullshit?

Tue, 04/07/2015 - 17:11 | 5968025 Doubleguns
Doubleguns's picture

Net worth going straight to hell since 2010.

Tue, 04/07/2015 - 17:11 | 5968026 zorba THE GREEK
zorba THE GREEK's picture

Glossy-eyed numbed brain Americans will stand by and become debt serfs without a fight.

At least the Greeks will stand up on their hind legs and give it a go.

Tue, 04/07/2015 - 18:48 | 5968414 PeeramidIdeologies
PeeramidIdeologies's picture

Normally you guys are down on all fours?! Sounds like my kind of place.

Good article tho, and is exactly what I have been saying to people. We reached our maximum economic potential in the 90's.
Every time I pass through a newish commercial or industrial park I wonder what it is going to look like with 60-70% vacancy.

This is gonna get..... Weird.

Tue, 04/07/2015 - 17:12 | 5968032 justsayin2u
justsayin2u's picture

Tim Cook says that, “Opposing discrimination takes courage,” and we agree.  We call on Mr. Cook to live up to our shared principles by pulling Apple out of Nigeria, Qatar, Saudi Arabia and Iran until they stop their official government policies of jailing and murdering gays and lesbians.

Tue, 04/07/2015 - 17:22 | 5968070 ebworthen
ebworthen's picture

"Those chinks do some good work for pennies on the dollar."

Amurika!  How symbolic that the iGadget of self-absorption and narcissism is made by a company that now floats the DOW and uses what is essentially slave labor to make it while off-shoring the majority of their profits and doing stock buybacks.

Tue, 04/07/2015 - 17:43 | 5968169 adr
adr's picture

If it weren't for Israel keeping a constant floor in AAPL Tim Cook wouldn't have a job.

You think Tim Cook cares about any gay person with a net worth under $1 million.

Equality only matters if it can make money for the Tribe, because in the eyes of the Tribe everyone other than them is worth less than a goat.

Tue, 04/07/2015 - 18:54 | 5968433 PeeramidIdeologies
PeeramidIdeologies's picture

LOL they top ticked AAPL almost perfectly! But I guess when you have pockets that reach your ankles you can wait it out.

Tue, 04/07/2015 - 17:14 | 5968040 Ignorance is bliss
Ignorance is bliss's picture

This is me....in 20 years without a pension, social net, and a devaluing Dollar that I sepnt a lifetime accumulating in a 401K in the great stock casino.If anyone believes the Dollar will be more valuable then tinder they are delusional.

" the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."

How did we get from Jefferson to Obama. What the hell happened?

Tue, 04/07/2015 - 17:20 | 5968067 Tinky
Tinky's picture

Obama is a symptom – nothing more.

Tue, 04/07/2015 - 22:11 | 5969259 thecrud
thecrud's picture

Greatest president in the 55 years I been alive.

Americas future never looked brighter.

Republicanism did not do as well and libertarianism was what we pretty much had before the new deal and the only reason things can get bad is you dumb asses allowed both republicans and democrats to erode its protection.

When the rich have to pay a lot of tax for welfare the get off their asses and create some jobs without that over their head you have no leverage.

Whelp back to the yacht long as my wealth cant be eroded and my stocks never go down I dont have to work or run a business thats for gentile's

I really think some of you would buy a bridge.

 

Tue, 04/07/2015 - 22:15 | 5969270 Deathrips
Deathrips's picture

Surely no one was stupid enough to think it was one man..... crickets

 

RIPS

Tue, 04/07/2015 - 17:20 | 5968068 tumblemore
tumblemore's picture

What the hell happened?

 

what do legalized counterfeiters have endless amounts of?

Tue, 04/07/2015 - 17:39 | 5968148 shovelhead
shovelhead's picture

Friends.

Tue, 04/07/2015 - 17:26 | 5968084 dexter_morgan
dexter_morgan's picture

Shoot, we've had statists around since Hamilton, BUT they were not in the majority of politicians until around the turn of the last century. Daniel Webster was a very influential one, dishonest Abe also, and hence the humble beginnings of statism led to more and more until we have Obama.

 

So, who is running or likely will run in 2016 that is NOT a statist and will dismantle any of the bureaucracy?

Tue, 04/07/2015 - 18:02 | 5968266 Monty Burns
Monty Burns's picture

Obama is a wholly-owned cypher who does as instructed. As such he has little responsibility for America's current disaster, just made everything a little worse.  If he were not totally under control he'd never have made it beyond being a community organizer in Chicongo.

Tue, 04/07/2015 - 20:55 | 5968912 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Among other things? The Civil War and Reconstruction. A mongrel who by rights should have been put down along with his nigger sire, whose proof of guilt of raping a white woman he was, can now by the will of the banksters be the Current Occupant of the White House, and proof that it no longermatters who the occupant is, all real powers of government having been usurped by Wall Street in 1860.

Tue, 04/07/2015 - 17:18 | 5968058 ebworthen
ebworthen's picture

There it is again, a shit storm of unsound money and debt since the Dollar was unhinged from Gold.

Because of the creation of the Non-Federal Banker's Bank - the labor of an individual and household has been cheapened, debased, and robbed to the point where the money changers had to offshore production and career employment while creating a parasitic economy dependent upon ZIRP, money printing, and outright tyranny against citizens.

What died in 1913 was the truth, and what has thrived since is lies built upon corruption and skullduggery.

Tue, 04/07/2015 - 17:58 | 5968250 Monty Burns
Monty Burns's picture

+100

Tue, 04/07/2015 - 17:19 | 5968060 dcohen
dcohen's picture

Not as long as we can press ctrl+p

Tue, 04/07/2015 - 17:19 | 5968062 chrsn
chrsn's picture

Don't worry.  On a long enough timeline . . .

Tue, 04/07/2015 - 17:19 | 5968063 El Vaquero
El Vaquero's picture

It has not been established that Jefferson actually said that.  In fact, I'm not even sure that inflation and deflation were in the founding fathers' lexicon.  Jefferson, did, however, hate banks.  Here is a quote of Jefferson's in a letter to John Taylor:

 

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

 

Tue, 04/07/2015 - 17:19 | 5968064 q99x2
q99x2's picture

Money isn't money.

Tue, 04/07/2015 - 20:08 | 5968080 RaceToTheBottom
RaceToTheBottom's picture

All the graphs look like something happened in early 1970s, say 1971.  

Anyone know of anything that happened then?

What could that be?

Tue, 04/07/2015 - 17:24 | 5968082 kchrisc
kchrisc's picture

"America: Bankrupt And On Borrowed Time"

America is not bankrupt, the DC US is. Morally and financially.

American is being plundered and oppressed by the criminals of the DC US.

The banksters need to repay us.

 

My guillotine can tell time.

Tue, 04/07/2015 - 17:25 | 5968083 Milestones
Milestones's picture

A very straight forward article; it seems to state the obvious in none of the FEDs "What comes out of a north bound bull heading south horse pucky."

Thank you sir for your excellent article.          Milestones 

Tue, 04/07/2015 - 17:28 | 5968087 TahoeBilly2012
TahoeBilly2012's picture

.

Tue, 04/07/2015 - 17:31 | 5968117 PGR88
PGR88's picture

What fake money and the Federal Reserve has grown is Government - in all forms, bread and circuses, wars and welfare.  The craziest or most untenable ideology can be supported by government when they have the funds to do it.

 

Want to kill Progressivism and Socialism in the USA?   End the Federal Reserve

Tue, 04/07/2015 - 17:56 | 5968239 Monty Burns
Monty Burns's picture

You are an ANTI-SEMITE HATER!

Tue, 04/07/2015 - 18:55 | 5968442 PresidentCamacho
PresidentCamacho's picture

so would that mean he is pro palestinian or anti-nazi?

Tue, 04/07/2015 - 17:37 | 5968130 Kirk2NCC1701
Kirk2NCC1701's picture

"Give me control of a country's Currency, Hydrocarbons and Water, and I care not who makes its laws" -Kirk, (c) 2015

If you're still unclear, I refer you to the Borg mantra. Or ask a Ziocon.

Tue, 04/07/2015 - 18:06 | 5968183 Unix
Unix's picture

UGH, I am at a loss Kirk, nothing is making any sense anymore, NOTHING! Currency only would do the trick, much less the others!

Soylent Green, I  tell you!!!!!!!!!!!!!!!!!!

As I go about quietly paying my bills, with no money...or very little, living on borrowed time.

Tue, 04/07/2015 - 17:36 | 5968135 Irishcyclist
Irishcyclist's picture

Krieg Kommt!

Tue, 04/07/2015 - 20:24 | 5968751 SmallerGovNow2
SmallerGovNow2's picture

Ya mein hier!  welt welt krieg drei...

Tue, 04/07/2015 - 17:39 | 5968151 yogibear
yogibear's picture

All that seems to matter in the US is political corrrectness and that the stock market keeps going up.

Working or the obeying the constitution don't matter anymore. 

Sure is bankrupt, in more ways than one.

 

Tue, 04/07/2015 - 17:43 | 5968163 Unix
Unix's picture

...and any of this is new you say? I could have a wart on my nose, and it would be plainer to see...velocity indeed, we have now reached takeoff speed.

Tue, 04/07/2015 - 18:17 | 5968167 pakled
pakled's picture

Queue music...

 

Jefferson where are you now
When everything's gone wrong somehow
The men that steal, men of power
Are losing control by the hour.

 

/Genesis (seasonally adjusted)

Tue, 04/07/2015 - 17:49 | 5968202 Kirk2NCC1701
Kirk2NCC1701's picture

"America: Bankrupt And On Borrowed Time"

So now they lend out Time also? Paid back with Interest?

Tue, 04/07/2015 - 17:51 | 5968212 adr
adr's picture

The more you dig into history, the more you find that centralized banking and the power to print money out of thin air has been the cause of every evil act in history. Those that fight against the concept of central banking end up being hung, mutilated, crucified, assasinated, or bombed into submission.

Since the time of Sumeria, usury has destroyed every empire. It is because those who cannot produce created a way to enrich themselves without lifting a finger. The promise of being able to have something now without having the means to pay for it has always been a most effective lure.

The cycle can not end until those who worship interest as a god are burned.

Tue, 04/07/2015 - 18:09 | 5968290 pakled
pakled's picture

.

Tue, 04/07/2015 - 17:53 | 5968221 Monty Burns
Monty Burns's picture

I think the idea that Tom Jefferson came up with the quote at the beginning ofthe article isn't substantiated by historical research. Still, the sentiment is great, whoever came up with it.

Tue, 04/07/2015 - 18:09 | 5968294 pakled
pakled's picture

You may be correct. So while on the topic here is one or two directly attributed to him...

 

"All tyranny needs to gain a foothold is for people of good conscience to remain silent."
Thus pass tyrancial laws when the people aren't looking (like the Fed Reserve Act of 1913) 

 

"Tyranny is defined as that which is legal for the government but illegal for the citizenry."
Yep.

 

"The price of liberty is eternal vigilance."
My personal favorite 

Tue, 04/07/2015 - 18:04 | 5968274 tumblemore
tumblemore's picture

This is only of academic interest in the current context but the banking mafia have been destroying civilizations this way for thousands of years and it's hard to see how it can ever be fixed long-term because only a small percentage of people understand the scam and a lot of those are people being enriched by it.

 

In the short-term the problem can be fixed in the traditional way but that has only ever worked temporarily and they always come back again eventually. The only ways I can see the banking parasite problem being fixed long-term is either a) raising average IQ or b) making anti-usury part of a religion with no exceptions.

 

Tue, 04/07/2015 - 18:46 | 5968411 lexluthor19
lexluthor19's picture

And now for a little context.... Thomas Jefferson uttered these words because he was involved in a political war with John Adams and Alexander Hamilton.... He feared the North would be garnering too much power and weaken his slave owning southern landowners, it was, as it ALWAYS is, about money.... Jefferson was a masterful politician, nothing more 

Tue, 04/07/2015 - 18:49 | 5968417 isolato
isolato's picture

Just sayin'

 

Status: This quotation is at least partly spurious; see comments below.

Comments: This quotation is often cited as being in an 1802 letter to Secretary of the Treasury Albert Gallatin, and/or "later published in The Debate Over the Recharter of the Bank Bill (1809)."

The first part of the quotation ("If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered") has not been found anywhere in Thomas Jefferson's writings, to Albert Gallatin or otherwise. It is identified in Respectfully Quoted as spurious, and the editor further points out that the words "inflation" and "deflation" are not documented until after Jefferson's lifetime.2

The second part of the quotation ("I believe that banking institutions are more dangerous to our liberties than standing armies...") may well be a paraphrase of a statement Jefferson made in a letter to John Taylor in 1816. He wrote, "And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."3

The third part of this quotation ("The issuing power should be taken from the banks and restored to the people, to whom it properly belongs") may be a misquotation of Jefferson's comment to John Wayles Eppes, "Bank-paper must be suppressed, and the circulating medium must be restored to the nation to whom it belongs."4

This first known occurence in print of the spurious first part with the two other quotations is in 1948, although the spurious portion actually appears after the two other quotations.5

Lastly, we have not found a record of any publication called The Debate Over the Recharter of the Bank Bill. There was certainly debate over the recharter of the National Bank leading up to its expiration in 1811, but a search of Congressional documents of that period yields none of the verbiage discussed above.

Tue, 04/07/2015 - 23:31 | 5969523 Milestones
Milestones's picture

If all is correct--an excellent bit of scolarship. My thanks.          Milestones

 

 

 

Tue, 04/07/2015 - 23:47 | 5969567 tumblemore
tumblemore's picture

"There was certainly debate over the recharter of the National Bank leading up to its expiration in 1811, but a search of Congressional documents of that period yields none of the verbiage discussed above."

 

Cui bono?

Tue, 04/07/2015 - 18:57 | 5968449 honestann
honestann's picture

Excellent collection of charts.  Illustrates and explains a lot for anyone willing to think objectively about them.

Tue, 04/07/2015 - 20:01 | 5968662 Burticus
Burticus's picture

I don't think he used "central banks," though he might today.  The quote I l'arnt is:

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered." – Thomas Jefferson

Tue, 04/07/2015 - 20:07 | 5968686 Roving reporter
Roving reporter's picture

Bullish.

Tue, 04/07/2015 - 20:36 | 5968800 Fix It Again Timmy
Fix It Again Timmy's picture

The only thing America is EXCEPTIONAL in is providing a "chinese fire drill" atmosphere of theft and plundering...

Tue, 04/07/2015 - 20:42 | 5968834 Playtime's Over
Playtime&#039;s Over's picture

I think our founding father's can not and must not be compared to our current fecal matter in congress.  Well read and educated thinkers. IQ has been taking a dive lately, haven't you noticed?  The narrative is third grade level.   

Tue, 04/07/2015 - 21:03 | 5968962 appocean
appocean's picture

about the time that ceo salaries were traded for stock options... imagine that.

Tue, 04/07/2015 - 22:08 | 5969246 Herdee
Herdee's picture

Gerald Celente being interviewed by Christian Rev. Lindholm on the psychopaths running Wahington,D.C.Christians,Muslims,Jews and all other religious people should pay attention to who these gangsters are.You need to take back America from these political criminals;

http://trendsresearch.com/in-the-media/

 

Tue, 04/07/2015 - 23:18 | 5969473 Tom Green Swedish
Tom Green Swedish's picture

Totally confused why this current group of political cocksuckers couldn't listen to the ones who made it possible for them.  What a bunch of phonies. What do they not understand. They didn't build this somebody else did and we do not really want them to destroy the correct model.  New politics.  Just stop doing anything. We will pay them to just sit there and jack off.

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