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Guest Post: David Galland: The System Is Coming Unglued

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Submitted by David Galland from Casey Research

David Galland: The System Is Coming Unglued

Our video host Stefan Molyneux speaks with Casey Research Managing Director David Galland about the debt situation in the US and whether the federal government can do anything about it… assuming they’d even want to.




David Galland - We're Living in a Degraded Democracy

Stefan: Hi everybody, it’s Stefan Molyneux, host of Conversations with Casey. I have on the line David Galland. Thank you so much, David, for taking the time to chat today.

David: Nice to be here.

Stefan: So, we are seven-tenths of the way towards fascism in the United States. I wonder if you could expand upon that. I sort of get a sense that that’s probably true, but you have a little bit more than my gut instinct – you actually have some pretty professional opinions to work with on that.

David: Well, all the elements for fascism are in place. We have a monetary system that is accountable to no one and that’s a very good start. If you think about it, the way that the monetary system is structured, the government at this point can literally spend money on anything. They talk about capping the federal deficits and all that, but they’ll get past that in no time at all. Probably by the time the viewers are watching this they will have announced a big deal, you know, that they have raised the debt cap. And you know, once you have – if you pin your money to nothing, if you have a monetary system that is based on nothing, then you can afford anything. You can afford all the wars you want, you can afford all the bureaucracy you want; and so they have. That’s a first step.

I mean, we’ve – just as an example, here in the little town in New England where Casey Research is located, they have a – they’ve just finished building a massive new Homeland Security center. This is a town of roughly 4,000 permanent residents; it’s a tourist town. It’s the kind of place where the worst crime you’ll ever see is somebody stealing skis from a ski slope, and yet we have something like 36 policemen. We’ve got this huge, brand-new Homeland Security center. Why? Well, because after 9/11 and the overreaction of 9/11 the government made this money available because it could make the money available, because there is nothing stopping it from doing that. And there’s all these local police departments, which should have an “Andy of Mayberry” type police force, took the money and they spent it, and now we’ve got a semi-militarized local operation. So this has gone on and this is multiplied right across the country… and the world.

Stefan: And of course, the decisions that people make in expanding the public sector have immediate implications in payroll, but I think what America is really facing are the long term implications of unfunded pensions that just run into the hundreds of billions of dollars. It’s a lot of the stuff that is not really counted in the public calculation of the debt, which is more immediate obligations, but the unfunded liabilities run $75 to $100 trillion according to many estimates. That’s not something that you see, which makes the whole conversation about should we have two trillion here or there ridiculous to anybody in the know.

David: Oh, absolutely. Again, on the point about whether we’re sort of on the way to a fascist state – and I – this isn’t just the US – it’s important that, you know, people understand this is all over the world. At this point, none of these governments is operating on anything that remotely resembles sound principles. They’re operating on a number of different priorities and a number of different interests – self-interests, because politicians after all are just people. So whatever it takes to kick the can down the road, they’re going to do. You mentioned $75 trillion in unfunded liabilities, absolutely. Because at this point, this is essentially sort of a rising tide of bureaucracy over the last hundred years that is cresting at this point. And they have done this because there are no real operating principles other than buying the votes that they need to get re-elected and to stay in office for as long as they can, and then they pass the baton to the next bureaucrat and the system continues. But it’s reaching the point where, I think, within a relatively short period of time it’s got to come to an end.

Stefan: Now you’ve written an article recently which I found very interesting – I just shared it through my Facebook as well – it’s called The Greater Depression. So you have the Great Depression and now we’re looking at the Greater Depression. I wonder if you could talk about the mechanics and the future as you see it as we go into this abyss.

David: Ultimately, what we’re faced with right now and this is, I think, just some fundamental principles – because there are so many aspects of what’s going on in the economy today that it makes it for most people – for virtually all people – it makes it very hard to really understand what’s going on. So sometimes you just have to sort of step back and ask a few questions to try to get some sort of a compass, if you will. And first and foremost the crisis we’re in right now is caused by debt, too much debt. As you mentioned before $75 trillion in government obligations – everybody knows that money is never going to get paid. So we’ve been brought to this point of extreme government borrowing. Who would have thought we’d see $1.5-trillion deficits? I mean, nobody – five, six years ago if you would have asked anybody on this planet if the US government could run a $1.5-trillion deficit they would have said no way. Well, here we are. So all of the conditions of what this – you can call it a debt-induced depression, all of the conditions that sort of brought us to this place have not improved since the beginning of this crisis; they’ve only gotten worse.

So what’s the ultimate outcome of this? Well, what’s the one thing that a heavily indebted person or an entity like the government can’t handle? And it’s rising interest rates. You can’t afford for the bank to bump your payments up to, you know, 20% because you’ve missed a payment. Well, the same thing’s true of the government and we are now – we are still – the US interest rates are still bouncing around, you know, all-time lows. It’s completely – it’s a complete aberration. And it can’t last. So why things are going to get worse is because interest rates have to go up. Even if they return to sort of a more normal five to six percent range, from a historical standpoint it would be devastating to the US economy. So the government is doing everything it can to try to get out of this trouble but there really is no way. They have very limited impact on long-term interest rates and if it wasn’t for the fact that Europe was such a basket case and that Japan was such a basket case right now, interest rates in the US would already be taking off but I don’t think we’re going to have to wait long for that and then things are going to get interesting.

Stefan: Let’s take a tour as you have done in a recent article around the world in eighty seconds, or so, because I think you have correctly identified that – I mean obviously North America is a basket case economically; South America has always had its problems economically; Europe is facing catastrophic debt situations; China is in pretty artificial command of the economy, Japan has had a twenty year recession/depression and now it is facing all of the problems that have come out of the nuclear power plant meltdowns. It really seems like it’s a perfect storm in a way, that there are not a lot of safe havens to go to even for good news, let alone for investor security. What are your thoughts about how all of this stuff is coming together at the same time?

David: Well, it’s scary. I mean, I didn’t coin the phrase “Greater Depression,” that was Doug Casey, my partner; and I think Doug had it exactly right. I think, you know, there has been so much of a, as I’ve said, this sort of rising tide of bad policy and extreme spending and a takeover of the economy – and not just the US economy, but all of the economies by these governments, the nation-states – that things have reached the point, people tend to think that things are going to stay the same and continue as they are, but they don’t. Sooner or later, history shows over and over again, things break, systems break, and I think we are very close to that.

I think it is important for people to understand that in – they look for the politicians to solve the problems, but to solve the current problem in America would require draconian efforts that would immediately cost the politicians their jobs. It would be, for a politician to stand up there as everybody watching this knows, and advocate deep slashes to Social Security or Medicare – and I am not talking about the stuff that they are talking about now, where modest little rearranging of the deck chairs over the next ten or twenty years, but real fundamental changes in the amount of government services being provided because all of these government services have grown and grown and grown over years now – and so to start cutting them back, every one of these government services has a constituency, people that depend upon it. You know, you start looking for cuts, and you say, okay, we have got to cut school lunches. You know, government didn’t used to give away school lunches. Well, now everybody is up in arms because you can’t cut the lunches of people because then they will have malnutrition and so on and so forth. Every single government bureaucracy has got a constituency. But the reality is that you can’t keep kicking the can down the road indefinitely.

Or put it another way: There is never a good time to fix this kind of a problem. So politicians will always make the choice to not actually address the problem, but rather to leave it to the next person’s watch. This isn’t – this would be a horrible time, absolutely a horrible time to fix the problems that face the American economy. Slashing the deficit, slashing the debt, slashing the government spending at this point would have catastrophic consequences to the average person. There would be riots in the street; but if you don’t fix it now, when do you fix it? Okay, well, do you fix it in the next year? No. Do you fix it the year after? The government will do whatever it can to keep pushing this down the road, but they can’t push it down the road much further.

Stefan: Well, it’s because fundamentally – and there are lots of reasons why politicians will not tell the truth to the population as a whole and say, “Look, we are not slashing spending if we go back five years in our deficits. You know, America and the world was not a rubble-strewn anarchic wasteland in 1995, and if all we do is cut spending back to that we will have made massive progress,” and people aren’t willing to just tell the truth and say, “Look, you people have become lazy and entitled and you have lost track of reality, we have lost track of reality, we have encouraged you to lose track of reality, so we really need to make decisions before reality makes those decisions for us in a much more brutal way,” but it seems hard to imagine anyone could get elected without sort of chanting, “USA Number One,” and actually telling the truth to the population, so it is almost like the market of the delusional population is driving politics in a way.

David: Oh, completely, because again – and this is nothing new, the people watching this know this – you know, you can point the finger at the politicians, but the people behind the politicians, the fact that, I think, Congress’s approval rating now is something like six percent, I mean it’s ridiculous, but come next election, most of those guys, most of the incumbents will be re-elected. And anybody who is elected to replace anybody who gets voted out will be just as bad as the people that they are replacing.

So you know, you have got a system, you’ve got a situation here where we live in a degrading democracy, you have to just face that fact. It is degrading, people have been trained – just like they were in the Soviet Union leading up to that collapse – they were trained to look to the state for virtually everything, and once you have stopped relying on yourself, once you start relying on the nation-state to take care of all the things that you think it needs to take care of, or that you would like it to take care of, you know, the whole thing comes crumbling down and we have absolutely reached that point. If you look at it – and again, very few people, I would say it’s sort of the fringe, if you will – people like yourself, Doug and the editors at Casey Research, and you know, the people that might be considered, you know, outside the mainstream, will talk about things like the $75 trillion of federal obligations, and – but it’s there, it’s a reality, it’s a fact, yet the mainstream media pretends that it’s not there and they do their calculations about the government covering its costs and debts and all that stuff based upon, you know, really falsified information. I mean, so if you can’t even acknowledge the scale of the problem – you can’t acknowledge the actual reality of the problem – how can you begin to come up with a solution? You can’t. And fortunately for the US, we had a great economy, and it’s still better than most. We’ve managed to get to this point although it goes far down the path of corruption, if you will, as we have, but the monetary system, at this point, is absolutely coming unglued, and I don’t think we are going to have to wait much longer. I mean, I think we might have a year before this thing really starts to break down, but I don’t think we have got much more than that.

[Are you prepared to face the coming debt storm? Learn more about it, including how to protect yourself and your assets, by joining us for a free online event. The American Debt Crisis will be held September 14 at 2 p.m. EDT. Sign up today.]


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Thu, 09/08/2011 - 21:14 | 1649034 X.inf.capt
X.inf.capt's picture


Thu, 09/08/2011 - 21:20 | 1649054 lynnybee
lynnybee's picture



Thu, 09/08/2011 - 21:21 | 1649060 Manthong
Manthong's picture

Got Elmer's?

Thu, 09/08/2011 - 21:24 | 1649084 X.inf.capt
X.inf.capt's picture

got PM's

Thu, 09/08/2011 - 21:42 | 1649172 Prometheus418
Prometheus418's picture

Silver solder, bitchez.


Thu, 09/08/2011 - 23:06 | 1649446 Spirit Of Truth
Spirit Of Truth's picture

I think Helicopter Ben and the central printers have something in mind more along the lines of paper mache...

[Fitting image at link.]

Thu, 09/08/2011 - 23:51 | 1649528 Ahmeexnal
Ahmeexnal's picture

And Ron Paul is finally getting a clue.

I pointed out months ago (actually years ago, but not on ZH) that the border fence was not designed to keep "illegals" out, but to keep people from leaving the US.

Having made similar comments to the Alex Jones Show last week, Presidential candidate Ron Paul warned last night during the Republican debate in California that constructing a border fence could be used to keep Americans in rather than illegal aliens out in times of economic turmoil.


“Every time you think about this toughness on the border and ID cards and REAL IDs, think it’s a penalty against the American people too. I think this fence business is designed and may well be used against us and keep us in,” said Paul, adding, “In economic turmoil, the people want to leave with their capital and there’s capital controls and there’s people controls. Every time you think about the fence, think about the fences being used against us, keeping us in.”

The escape window is narrowing.  It will soon be closed shut.

Fri, 09/09/2011 - 00:17 | 1649581 Dick Fitz
Dick Fitz's picture

Goddamn that's a scary thought. #greaterdepression is the hashtag we need to push on Twitter.

Fri, 09/09/2011 - 02:24 | 1649656 D.M.
D.M.'s picture

Finally getting a clue? He's one of the few politicians with enough balls to talk about issues that actually matter. But regardless the system is fucked, rotten to the very core.

Fri, 09/09/2011 - 01:58 | 1649691 TheMerryPrankster
TheMerryPrankster's picture

"None of you seem to understand. I'm not locked in here with you... you're locked in here with me!"" - Rorschach - The watchmen

Fri, 09/09/2011 - 01:28 | 1649664 Two Towers AU AG
Two Towers AU AG's picture

IPAD Bitchezzz... you cannot eat silver.. you can eat a IPAD.

Thu, 09/08/2011 - 22:10 | 1649302 redcorona
redcorona's picture

No elmers, but a country full of old horses.

Thu, 09/08/2011 - 21:15 | 1649037 Taku
Taku's picture

More printing today, more war tomorrow.

Thu, 09/08/2011 - 21:24 | 1649080 OutLookingIn
OutLookingIn's picture

Print. Trade wars. When goods cannot cross borders, armies often do!

Thu, 09/08/2011 - 21:26 | 1649093 X.inf.capt
X.inf.capt's picture

war, the real driver for ecomonies

Thu, 09/08/2011 - 21:48 | 1649199 TwelfthVulture
TwelfthVulture's picture

Trade is the antithesis of war.

Apathy is the antithesis of love.

Thu, 09/08/2011 - 22:36 | 1649386 Alea Iactaest
Alea Iactaest's picture

Ah yes. The opposite of love is not hate, it's indifference.

Q: What do you think of me?
A: I don't.

Thu, 09/08/2011 - 21:15 | 1649040 kito
kito's picture

Thu, 09/08/2011 - 21:27 | 1649099 lynnybee
lynnybee's picture

must .... go buy more canned goods ..... buy more silver !

Thu, 09/08/2011 - 21:29 | 1649107 X.inf.capt
X.inf.capt's picture flour....

bread baker WSHTF..........


Thu, 09/08/2011 - 21:54 | 1649236 centerline
centerline's picture

The longer this goes on, and higher the stakes get raised, the more concerned I am getting about how bad it is going to get.  If the system goes down hard, it could get seriously ugly within a week.  If the government were to truly break down and no sense of order is maintained, within a couple of weeks it would be utter chaos.

With the maniacs currently at the helm, and it seems there no reasonable escape (or soft landing possible), the outcome looks more dire each day.  I dont think we go all "Mad Max," but can't rule it out.  This really bothers me.

Thu, 09/08/2011 - 22:04 | 1649256 X.inf.capt
X.inf.capt's picture

as a new 2lt in the NG in '92, the LA riots were no joke. but they stopped in 72 hours, why? because good people ,civilians, banded together and made it very 'unhealthy' to riot. we just cleaned up the mess....

Thu, 09/08/2011 - 22:49 | 1649411 Falcon15
Falcon15's picture

Yeah, I have a lot of "unhealthy" heavy metal pills for future rioters...7.62x51's...

Fri, 09/09/2011 - 00:25 | 1649597 Freddie
Freddie's picture

Korean-American merchants were laying down a lot of supression fire in S Central.  The white libtard TV news reporters were shocked.  Tet Offrensive comes to The City of Angels.

F**king hilarious.

Fri, 09/09/2011 - 01:44 | 1649634 X.inf.capt
X.inf.capt's picture

when we showed, they got nervous, we told it was alright, its cool, just put theautomatic weapons away! We didnt need any problems from them. sometimes, discresion is the better part of valor.....lots of food for thought.

Fri, 09/09/2011 - 08:54 | 1650181 Silver Dreamer
Silver Dreamer's picture

Comparing what is coming to an isolated event in a single city many years ago is hardly appropriate.

Fri, 09/09/2011 - 00:19 | 1649584 Freddie
Freddie's picture

I always thought Obama would be Mugabe but hoped I was going to be wrong.  I was not wrong.

Fri, 09/09/2011 - 00:23 | 1649590 Dick Fitz
Dick Fitz's picture

I try not to "go there" in my head when I think of the inevitable doomsday/Misean "crack up boom" that is coming, hoping that it will be swift, somewhat brutal but short-lived as reason and sound money is restored. Articles like this, and everyday experiences with morons, make me doubt my apocalyptic Pollyanna POV.

Fri, 09/09/2011 - 02:06 | 1649694 NumNutt
NumNutt's picture

Heelo Center line, first let me say I have been drinkin, so be patient. I am not familiar with the author of this interview, is he some one that can be trusted to tell the truth? I read shit on theis site all the time of doom and glooom. Soom of it reports that the end is next week, or next year, and some was supposed to happen two years ago but here we are!! Just trying to put this in perspective......why does the room move when I clode my eyes?....

Fri, 09/09/2011 - 04:48 | 1649791 spdrdr
spdrdr's picture

Numbs, that was truly excellent!

The slow motion train-wreck will develop incredible momentum when the SHTF goes exponential.

The author, or the message, makes no difference (unless your want "peer-reviewed" climatology).

The message counts - that's the thing you weigh up against one's knowledge or experience.


Fri, 09/09/2011 - 05:58 | 1649836 BigJim
BigJim's picture

Just because something is inevitable, doesn't mean it's imminent.

No man knoweth the day or the hour....


Fri, 09/09/2011 - 02:09 | 1649698 TheMerryPrankster
TheMerryPrankster's picture

There won't be enough gasoline to go Madmax - when the power goes off all bets go off with it. No power means no water pumping, no sewage treatment, no gasoline pumping and all the nuclear reactors go off line.

what happens if the diesel generators fail? fukushima come to America on steroids. Bullets won't stop radioactive cesium.

The power grid goes down easily in a storm, its a wire on a pole waiting to fall. Ipads, cellphones, laptops, become ballast without power.

I'm long candles myself.

Thu, 09/08/2011 - 21:58 | 1649247 DaddyO
DaddyO's picture


5 gal bucket of red or white wheat berries and a Country living grain mill much better than bread flour...just sayin


Thu, 09/08/2011 - 22:03 | 1649272 X.inf.capt
X.inf.capt's picture

hey, daddy-o, got it covered, big time. just fleshing it out.

Thu, 09/08/2011 - 22:27 | 1649354 goldfish1
goldfish1's picture

"""...we might have a year before this thing really starts to break down, but I don’t think we have got much more than that."""

Thu, 09/08/2011 - 22:32 | 1649372 X.inf.capt
X.inf.capt's picture

that long...your a optimist...

Thu, 09/08/2011 - 21:16 | 1649041 reader2010
reader2010's picture

Dont you get it? The whole thing happens by design. You either get along or you don't.

Thu, 09/08/2011 - 21:38 | 1649153 DavidPierre
DavidPierre's picture

Doug (Pump&Dump) Casey and his crew of husslers just don't get it.

As Bill Murphy has said many times...

"Gold was bombed in MINUTES last night during a SLOW gold trading period. The deliberate tanking of the price was eerily similar to the exact time silver was savaged in late April. The Gold Cartel’s honcho made like a football coach, going with the same play that worked so well the last time he called it.

What we got last night in the gold market, with follow through today, ranks up there as the most obvious manipulation of the price of gold ever.

It is a day like this that reduces the Doug Caseys of the world to mental midget status.

Casey is an egomaniac, inflicted with the Not Invented Here Syndrome Complex.

GATA's work is not his personal brainchild, thus of no importance. That's his problem.

I guess they know more than the Chinese do, who happen to agree with GATA.

Casey has been correct about gold all these years, but has a severe complex when it comes to GATA.

Years ago at a Cambridge House conference, he talked about the foolishness of the US Government manipulating the bond market, yet scoffed at gold being manipulated. He isn’t grasping that money-wise any gold losses (until recently The Gold Cartel made money with their market raids which buried spec longs) are a drop in the bucket compared to what the dollar and interest rates do … as well as our stock market.

In addition, knowing types like him, he probably hasn’t even taken the time to read any of the massive amounts of evidence GATA has collected over the years that prove our case."


Thu, 09/08/2011 - 22:12 | 1649311 gwar5
gwar5's picture

Love GATA. They've been hammering at it for years, and they were right. 

The last ditch effort of the cartel would be to cave in and give up the useless gold suppression. Plan B is then to just remonetize gold at much higher price and then partial-back the currency with it. That's what the Chinese cables say they think they're really going to do.  That's what Rickards says they should do, with gold at $5-7000 minimum.



Thu, 09/08/2011 - 22:20 | 1649329 DavidPierre
DavidPierre's picture

HAPPY ... 1 year... BIRTHDAY gwar5 !!!


Thu, 09/08/2011 - 22:26 | 1649346 macholatte
macholatte's picture

The other day the Swiss decided to peg thier currency to the Euro and that was what grabbed most of the news. Simultaneously with that announcement gold popped something in the $240 range ($120 down and $120 up) and not much of anything was said about it (maybe there was and I missed it). My point here is that a decision of that magnitude is not made by 1 guy all by his lonesome and my suspicion is that the huge move in gold was pre-planned by TPTB who made yet another fortune. Also, with that announcement, the CHF popped against the USD and EUR and that was clearly a bank intervention. However, again, a lot of folks knew about it well in advance and as someone here mentioned, the announcement was not made on the weekend or on Monday when all non-USA markets were functioning. They waited until Wall Street was ready to pounce on Tuesday.

I find I it hard to believe that such moves can be so completely ignored. Yet, as so many have commented, it is happening, repeatedly, with impunity.

Thu, 09/08/2011 - 22:30 | 1649367 X.inf.capt
X.inf.capt's picture

they can manipulate prices all they want....

PM's in hand

pre-65 dimes

Thu, 09/08/2011 - 21:17 | 1649042 riley martini
riley martini's picture

You left out the fraud ,theft , murder , general corruption and selective political prosecutions that Fascim manifest. Fascism failed before for the same reasons there is no reason to think it would suceed this time. Oblamer-Buffet Fascism personified.

Thu, 09/08/2011 - 21:22 | 1649069 Lester
Lester's picture

America is facing far greater crisis than "debt crisis".

We (and the rest of the world) have been carpet-bomb nuked by fraudulent derivatives which were used to collapse creditworthiness of Nations and loot National Treasuries via deficit spending and bailouts.

Greater depression?  This is ethnic cleansing of a holocaust nature, with those entrusted with fiduciary duty toward their countrymen doing the cleansing.  Unless you are in their club, they want you gone.  Don't matter if you and yours will have to die for them to ensure their "vision of the future"...

I grow weary and impatient of fathead bastards touting economic conditions and discussion as "vital" when it is too apparent that this is the bottom of the 9th Inning, and most of the world doesn't know it is in a game for all the marbles quite yet.

It is time to suspend the fraud and halt the "progress".  The world has not yet gone over the cliff and there still remains a Forensic Audit Trail to show where and who got the money.

I am not spending my last hours watching the circus for fear I will miss the show.  I don't need to understand the hows and whys for the collapse as much as know it is upon us and that to have a chance to live through this, I must prepare, plan, and be ready.

Enjoy your video conferencing.

Thu, 09/08/2011 - 21:29 | 1649112 reader2010
reader2010's picture

Who's going to bankroll guys like Adolf Hilter this time around?

Thu, 09/08/2011 - 23:55 | 1649542 CompassionateFascist
CompassionateFascist's picture

Same as last time: Fed, BOE; ie, Rothschild.

Fri, 09/09/2011 - 06:56 | 1649935 TJ00
TJ00's picture

You forgot the Bush family

Thu, 09/08/2011 - 21:41 | 1649165 centerline
centerline's picture

Sigh.  All too true.  Lots of folks have been "targeted" for elimination.  Population has peaked.  Most people dont know it and/or are baffled with the bullshit that is the daily news.



Thu, 09/08/2011 - 21:23 | 1649079 Hulk
Hulk's picture

Editorial in todays wsj stated that debt to gdp is a useless figure. Better to compare income, $2.3T to debt, $14.6T. He then compared this to a person with a $50k income having a credit card with over a $300k balance on it...

Thu, 09/08/2011 - 21:28 | 1649086 THE DORK OF CORK
THE DORK OF CORK's picture

Molyneux is a retarded puritan - all knowledge does not reside with Austrian scripture.

I find it difficult to listen to the man - his voice and attitude grates with my Zen.

See Ireland if you want to try to reduce the defecit without destroying the banks first - if we had nothing to export to and nobody  visiting we would be eating raw turnips now.

I am with Jesse when he states in reference to the Great leader "The only thing he could do to satisfy this Jacksonian is to fire a number of his appointees in the CFTC, SEC, and Justice, bring in Eliot Spitzer as his Attorney General, William K. Black to head the SEC, Liz Warren at Consumer Protection, Bart Chilton as Head at the CFTC, Robert Reich at Labor, Ron Paul at Defense, Michael Hudson at Treasury, and to let justice be done, though the heavens may fall.
Fat chance of any of that, so gold and silver look like enduring safe havens."

Thu, 09/08/2011 - 21:36 | 1649147 OutLookingIn
OutLookingIn's picture

What happened to the Irish? Where is their resolve? The 'Fighting Irish.' Empty inside. Take a page from tiny Iceland's play book and tell the international oligarchy bankers to "go pound sand!" While your at it - get your gold bullion out of London England and back on the emerald isle! Tell the EU "up yours."

Thu, 09/08/2011 - 21:49 | 1649192 THE DORK OF CORK
THE DORK OF CORK's picture

Ireland is the most "globalised" country in Europe - it does not really exist now - perhaps Iceland had some residual social cohesion , our population is still increasing chiefly via immigration despite the declining GDP - which makes the GDP metrics much worse then even the declining figures suggest.

This interview misses the core point - the fiscal spending is just used to pay off private debt - thats Keynesian spending , thats it really.

Destroy credit deposits and turn all this credit into Goverment money and who cares if banks have a balance sheet problem.

Fuck them and their artifical "asset" values.

Easy baby.


Thu, 09/08/2011 - 21:25 | 1649088 Paul Bogdanich
Paul Bogdanich's picture

ANd nothing about the trillion dollars a year we spend on "defense" and the little homeland security outposts all over the place.  How about shutting all that down and see how the balance sheet and income statements look?  That's what the Soviet Union was forced to do and we are not far behind.

Thu, 09/08/2011 - 21:27 | 1649097 xtop23
xtop23's picture

strong interview - only took a couple of hundred years for the government to destroy America.

wish I could go back in a time machine and smack Woodrow Wilson right in his stupid face.

Fri, 09/09/2011 - 02:27 | 1649716 richard in norway
richard in norway's picture

i think he already did it


whats the thing he said  "i am the most unhappy of men for i have unwittingly betrayed my country" or something like that

Thu, 09/08/2011 - 21:30 | 1649116 OutLookingIn
OutLookingIn's picture

BROKE! NO MOOLAH! ZERO CASH! Okay, so you say you can't pay? What part of NO don't you understand?

Oh! Oh okay! Now I get it. Wait for payday, right? Listen pal. And listen good. You aint never going to be paid. ZIP. ZILTCH. ZERO. NEVER. Uncle Sammy walks away leaving the poor schmuck sobbing.

Thu, 09/08/2011 - 21:34 | 1649135 A Lunatic
A Lunatic's picture


Thu, 09/08/2011 - 21:37 | 1649152 OutLookingIn
OutLookingIn's picture

Morally corrupt.

Thu, 09/08/2011 - 21:35 | 1649140 Corn1945
Corn1945's picture

The scariest part of all of this is the survival of the "government must do something" mentality.


Put politics aside for a second. If I had a business relationship with Organization XYZ and Organization XYZ demonstrated that it was a gigantic clusterfuck, I would stop doing business with Organization XYZ or at least my faith would be severely diminished.

Yet we've seen the federal government demonstrate time and time again that is a total fuckup and people still have faith in it's ability to fix stuff!


How is that fucking possible after all we've seen for the last three years?

Thu, 09/08/2011 - 21:45 | 1649185 centerline
centerline's picture

They are dependant on the system.  Born into it, haven't known anything but it.  They can't imagine what would happen without it.  Most are likely more comfortable with the bullshit than the fear of the unknown.


Thu, 09/08/2011 - 22:34 | 1649376 wisefool
wisefool's picture

And that is the dirtiest form of class warfare. The stuff uncle warren (love or hate) has been talking about. He used the terms "you bend over backwards to help us uber weathly preseve our wealth, you act like us rich people cant defend ourselves"

Substitute rich/poor wealth/dependancy and you will understand pure evil, as been pointed out by prophets and philosophers time immemorial.

If the SHTF tommorow, me and mine would be just fine. we dont stock pile gold or other forms of ostensible wealth. for that reason we dont need to stockpile guns or ammo. we are charitable as possible with time and labor, but we dont need a 503c corporation to help somebody change a tire or help them set up a yard sale.

The president is "giving" businesses tax cuts to hire certain types of people, cause aparently the tax codes 60,000 pages currently does not have anything to do with employing people and improving the economy.

Thu, 09/08/2011 - 21:36 | 1649150 Seasmoke
Seasmoke's picture

nothing get fixed in 2012 , its an election year (and an olympic year) on !

Thu, 09/08/2011 - 21:43 | 1649174 youngman
youngman's picture

It is not if....but when....and that is a big question...

Thu, 09/08/2011 - 21:47 | 1649196 Temporalist
Temporalist's picture








Thu, 09/08/2011 - 21:58 | 1649246 tarsubil
tarsubil's picture

Oh, cut the bleeding heart crap, will ya?

Thu, 09/08/2011 - 23:53 | 1649539 reader2010
reader2010's picture

No worry. Here is why.

TSA Agent Threatens Woman With Defamation, Demands $500k For Calling Intrusive Search 'Rape'

Thu, 09/08/2011 - 21:54 | 1649235 gwar5
gwar5's picture

More predictions of gloom, and I agree.

But would differ about the central fascism because they'll be broke, and it will take huge resources to maintain a big a police state. More like Somali-lite with breakdowns in civil society, tribalism, urban riots, lootings, crime, but patches of civility by locals taking security matters in their own hands.

The last card the bank cartel can play is remonetization of the gold reserves at vastly higher prices to back their currencies. As the China cables showed, the Chinese think that's exactly what the West is going to do since the West is still the superpower in gold. The West just doesn't want to remonetize gold becuase they can't steal as easily.






Thu, 09/08/2011 - 21:59 | 1649252 centerline
centerline's picture

Security (safety in numbers), clothing, food, clean water, medical resources and shelter are some of the basics.  If the SHTF in a big way, these would be major selling points.  I really dont see it as a big leap from where are to this sort of place.

Thu, 09/08/2011 - 22:00 | 1649257 topcallingtroll
topcallingtroll's picture

Just hold it together five more years and I should be positioned well as a minor feudal lord.

What is that called again when the manor lord gets to be the first to fuck any new village brides? That would be so cool!

Thu, 09/08/2011 - 22:21 | 1649336 xtop23
xtop23's picture

Prima Nocto - and its a disgusting concept tyvm

Thu, 09/08/2011 - 23:40 | 1649516 StormShadow
StormShadow's picture

Prima Nocta

Love that scene from Braveheart when he cuts the bastard's throat with zero remorse

Thu, 09/08/2011 - 22:36 | 1649382 aerojet
aerojet's picture

I would just put a bullet through your skull.  And if I didn't have a gun, it would be a knife.  And if I didn't have a knife, a tree limb or my bare hands.  No more feudalism, ever.

Fri, 09/09/2011 - 00:01 | 1649554 CompassionateFascist
CompassionateFascist's picture

It's going to be better than Surf City: "12 girls for every boy....".

Fri, 09/09/2011 - 09:20 | 1650293 Silver Dreamer
Silver Dreamer's picture

It's something to seriously consider.  Men will be slaughtered, and women will be kept for obvious reasons.  Your ratio may very well come true in a serious YOYO / SHTF scenario.

Thu, 09/08/2011 - 22:45 | 1649400 Protonrick
Protonrick's picture

aka droit du seigneur.

But it is a one way ticket to the guillotine,

or a night-time meeting with the business end of a poignard. 

Thu, 09/08/2011 - 22:00 | 1649258 tony bonn
tony bonn's picture

there are some reasonable comments in this interview but basically it falls short....on the other hand i applaud loudly that he recognizes we live in a fascist state.....slash social spending? ok, what about the nazi military war machine which spends as much as the rest of the world combined?....everyone wants dracon but no one wants to cut off the spartan paranoid military state.....and then senator kyl, nazi from arizona, is threatening to resign from the armed services committee if a dime is cut from the defense budget....fuck him - he needs to be used as guided missle on the warped state he came from....

yes, the totalitarian state will ultimately fail but it will take decades and possibly centuries for systemic cancer to prevail because the fucking sheople sure aren't going to do it....

Fri, 09/09/2011 - 05:09 | 1649806 Dyler Turden II Esq
Dyler Turden II Esq's picture

"ok, what about the nazi military war machine which spends as much as the rest of the world combined?"

Don't you get it? THAT DOESN'T COUNT. Only commie liberal social spending counts as "Keynesian", and must be eliminated.

Thu, 09/08/2011 - 22:07 | 1649289 Dr. Engali
Dr. Engali's picture

Riots in the streets now or later? What's the difference you still get the riots. Fix the fucker now before it gets worse.

Fri, 09/09/2011 - 09:22 | 1650296 Silver Dreamer
Silver Dreamer's picture

Sorry, it is 100's of trillions of dollars too late.  We are fucked.

Thu, 09/08/2011 - 22:08 | 1649294 spanish inquisition
spanish inquisition's picture

Hey, we can do a new Hope and Crosby movie "Road to Fascism". Who should star? We need a Hope and a Crosby and a hot Dorthy Lamour type..

Fri, 09/09/2011 - 09:06 | 1650229 thermroc
thermroc's picture

Robbie Williams and Harry Connick Jr.
Katy Perry as Eva Braun as Hillary Clinton

Thu, 09/08/2011 - 22:21 | 1649335 Dr. Engali
Dr. Engali's picture

"America would require draconian efforts that would immediately cost the politicians their jobs"

Politicians were never supposed to have "jobs". The intention was for them to serve their term, for very little pay, as a duty to their country then go home. It was never the founders intention for politics to be a career path.

Thu, 09/08/2011 - 23:44 | 1649522 StormShadow
StormShadow's picture

Indeed, they were to be Representatives.  Now all they represent is the degree of our failure to reign in their corruption and greed.

Thu, 09/08/2011 - 22:24 | 1649347 dwdollar
dwdollar's picture

Meanwhile...  futures are climbing.

Thu, 09/08/2011 - 22:42 | 1649394 PulauHantu29
PulauHantu29's picture

Paying for Barry's Plan? Did barry mention how he is going to fund his $500 Billion plan?

Thu, 09/08/2011 - 23:14 | 1649461 reader2010
reader2010's picture

of course by theft.

Thu, 09/08/2011 - 23:26 | 1649489 xtop23
xtop23's picture

Its not theft if you're playing the part of Robin Hood.

Those wascally Saxons have had it too good for too long I tell you !!!


Thu, 09/08/2011 - 23:30 | 1649502 JW n FL
JW n FL's picture



ALL! Systemic Failures are predicated upon the fact that the Top 1% do NOT have a Tax Rate Increase. As well the Continued exodus of Manufacturing Base because of Tax Breaks and Subsidies. This is a Man Made Problem, the question is why would the U.S. Government want social unrest? Why would anyone want the most well armed Country in the history of mankind, starving? Austerity is coming and so is the result of that action. Once again why? does Government want the most well armed group of citizens in the History of the World, hungry?


Thu, 09/08/2011 - 23:48 | 1649530 StormShadow
StormShadow's picture

Uhh, yes, that's exactly what they want.  They want us to kill each other off.  Yes, I own lots of high grade weapons and ammo, and I damn well know how to use them.  But, if you think that's gonna mean shit against military hardware you have another thing coming.  This ain't musket to musket fighting we're lookin at boys.  Oath Keepers may be our only hope if we get to that point.  That or the Second Coming.

Fri, 09/09/2011 - 00:12 | 1649569 CompassionateFascist
CompassionateFascist's picture

You're not getting it yet. When whole states secede - and that's going to be most every state from the high plains down thru the midwest, Ariz, Texas, and the South - the National Guard units go with them; Heavy weapons: A-10s, AFVs, fighter squadrons, + militias. The DC, Philly, NY, Boston crowd are wimps...we should clean out the beltway corridor pretty quickly, then onto the rustbelt, the Left Coast cosmics, and Mexifornia. Might be over in a year or two, if we find leaders who understand tactics and strategy. There will, of course, be quite a culling....maybe 1/3 of the total US population. It's all good. Improves the gene pool.

Fri, 09/09/2011 - 01:50 | 1649683 reader2010
reader2010's picture

probably lots of women will be raped by those UN Peacekeepers from Iran and China too.

Fri, 09/09/2011 - 09:27 | 1650330 Silver Dreamer
Silver Dreamer's picture

Exactly.  As the other response suggests, do you really think TPTB, DC, etc. will stand down?  No, they will call in UN forces.

Wearing a blue helmet, armed, and standing on American soil post collapse?  Prepare to die.

Thu, 09/08/2011 - 23:31 | 1649504 robertocarlos
robertocarlos's picture

Nobody is getting away with nothing. All those crooks will be tracked down and hanged.

Fri, 09/09/2011 - 05:13 | 1649809 e-recep
e-recep's picture

Guillotine for bankers and financiers.

Fri, 09/09/2011 - 09:28 | 1650339 Silver Dreamer
Silver Dreamer's picture

It's not going to be that easy.  Those banksters have control of most of the world's nuclear weapons and militaries.  They will also be hidden away in bunkers.  Good luck tracking them down...

Fri, 09/09/2011 - 01:01 | 1649640 linrom
linrom's picture

Casey Research! What's the difference between a right-wing think tank talking points and one cell amoeba? The amoeba has one more cell.

Fri, 09/09/2011 - 01:57 | 1649690 jmc8888
jmc8888's picture

The dude looks at the monetary system, and judges it, through the lens of a monetary system.

Not one mention of Glass-Steagall?


If the people demand it, it will happen.  But instead he talks about 'unfunded liabilities' bullshit, which is an effect of all the other monetarism around it. The causes of the crash will be the fraud.  Cancel the fraud with Glass-Steagall, start funding stuff legitimately instead of defferals, fixed exchange rates and whatever the liabilities cost, will be absorbable. 

Do not, and the 75 trillion will buy you a hamburger.  Or a bar of gold will buy you the last toilet paper roll on earth.

Demand Glass-Steagall, and eventually a critical mass forms that they cannot escape it.  It then will be law, and the fraud will end.



Fri, 09/09/2011 - 02:49 | 1649731 Demologos
Demologos's picture

GlassSteagall is the only sane solution.  jmc8888 has been quietly offering this for some time now and no-one on ZH has responded.  Tyler seems to get it though.  TPTB can be knocked over with a feather right now.  They are at their weakest point in modern history.  There doesn't need to be a Mad Max scenario.  The whole rotten edifice can be overturned with a whimper not a bang!

Try it.  Call your congresscritter tomorrow and demand that they co-sponsor HR 1489.  Demand Oblahma's removal while you are at it.  Don't wait until there is no Congress to intervene.  The Super-Congress is the beginning of the end for our Constitutional Republic.  It is rapidly morphing into a bad remake of the Venetian Empire.  The "Council of 13" i.e. six senators + six congresscritters + the preznit will soon be the council of three as in Fenimore Cooper's The Bravo.

Hey, what happened to my Avatar?  And it took so much thought!

Fri, 09/09/2011 - 02:52 | 1649734 Demologos
Demologos's picture

Sorry, first post.  My avatar is OK.  I didn't want to be a guy with a bag over my head!

Fri, 09/09/2011 - 08:53 | 1650176 Pay Day Today
Pay Day Today's picture

Return taxes to 1970 levels - the golden age of the American middle class - and the US will be out of deficits in a few years. What is the problem? Why is every answer being proposed = screw the labourers and professional workers of this country.

And lets not forget one big reason that there are unfunded pension obligations: the big banks sold all the pension funds hundreds of billions of AAA rated toxic RMBS and other similar 'investment grade' crud which is all now worth approximately zero when added up together and marked to market.

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