Guest Post: The Fraud & Theft Will Continue Until Morale Improves

Tyler Durden's picture

Submitted by Jim Quinn of The Burning Platform

The Fraud & Theft Will Continue Until Morale Improves

The BEA reported the latest figures for personal income, personal consumption expenditures and the savings rate last week. The government mouthpieces in the mainstream media obediently reported that personal income and expenditures reached an all-time high in March. The chart below shows the ever increasing level of expenditures by consumers since this supposed economic recovery began in the 4th quarter of 2009. All good Keynesian economists know that consumer spending is always good for America, no matter how it is achieved. We must be in a recovery if income and spending are reaching new highs, right? That is the fraudulent storyline being propagandized to the non-questioning lapdog public. A false storyline and data that has been massaged harder than a Secret Service agent by a Columbian hooker will not lead to a happy ending. Some critical thinking, a calculator, and some common sense reveal the depth of the fraud and expose the theft being committed by the avaricious governing elite at the expense of the prudent working middle class.

 

Digging into the data on the BEA website to arrive at my own conclusions, not those spoon fed to a willfully ignorant public by CNBC and the rest of the fawning Wall Street worshipping corporate media, is quite revealing. It divulges the extent to which Ben Bernanke and the politicians in Washington DC have gone to paint the U.S. economy with the appearance of recovery while wrecking the lives of senior citizens and judicious savers. Only a banker would bask in the glory of absconding with hundreds of billions from senior citizen savers and handing it over to criminal bankers. Only a government bureaucrat would classify trillions in entitlement transfers siphoned from the paychecks of the 58.4% of working age Americans with a job or borrowed from foreigner countries as personal income to the non-producing recipients. How can taking money from one person or borrowing it from future generations and dispensing it to another person be considered personal income? Only in the Delusional States of America.

If you really want to understand what has happened in this country over the last forty years, you need to analyze the data across the decades. This uncovers the trends over time that has led us to this sorry state of affairs. The chart below details the major components of personal income over time as a percentage of total personal income. It tells the story of a nation in decline and on an unsustainable path that will ultimately result in a monetary collapse.  

               
 

1970

1980

1990

2000

Apr-08

2010

Mar-12

Total Personal Income

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Wages & Salaries

66.1%

60.2%

56.7%

56.2%

52.7%

51.9%

51.8%

Interest Income

8.3%

12.1%

15.5%

11.6%

11.2%

8.2%

7.4%

Dividend Income

2.9%

2.9%

3.5%

4.5%

6.5%

5.8%

6.2%

Government transfers

8.5%

11.3%

11.7%

12.2%

14.3%

17.9%

17.3%

It is always fascinating to compare data from 1970, prior to Nixon closing the gold window and allowing bankers and politicians to print and spend to their hearts delight, to present day. The chart above paints a picture of a nation of workers and savers descending into a nation of parasites and spenders. Any rational person knows that income comes from one of two methods: working or investing. A country can only grow by working, saving, investing and living within its means.  Money taken from workers and investors and transferred to the non-working and spenders is NOT INCOME. It is just redistribution from producers to non-producers. The key takeaways from the chart are:

  • Working at a job generated two-thirds of personal income in 1970 and barely half today. This explains why only half of Americans pay Federal taxes.
  • One might wonder how we could be in the third year of a supposed economic recovery and wages and salaries as a percentage of total personal income is lower than pre-crisis and still falling.  
  • Government transfers have doubled as a proportion of “income” in the last forty years. The increase since 2000 has been accelerating, up 122% in 12 years versus the 55% increase in GDP.  The slight drop since 2010 is the result of millions falling off the 99 week unemployment rolls.
  • Luckily it is increasingly easy to leave unemployment and go on the dole for life. The number of people being added to the SSDI program has surged by 2.2 million since mid-2010, an 8.5% increase to 28.2 million people. Applications are swelling with disabilities like muscle pain, obesity, migraine headaches, mental illness (43% of all claims) and depression. Our leaders have set such a good example of how to commit fraud on such a grand scale that everyone wants to get a piece of the action. It’s like hitting the jackpot, as 99% of those accepted into the SSDI program (costing $132 billion per year) never go back to work. I’ve got a nasty hangnail. I wonder if I qualify. I’d love to get one of those convenient handicapped parking spaces. Once I get into the SSDI program I would automatically qualify for food stamps, a “free” government iPhone, “free” government cable and a 7 year 0% Ally Financial (85% owned by Timmy Geithner) auto loan for a new Cadillac Escalade. The SSDI program is now projected to go broke in 2016. I wonder why?    

 

  • A nation that rewarded and encouraged savings in 1970 degenerated into a country that penalizes savers and encourages consumption. The government, mainstream media, and NYT liberal award winning Ivy League economists encourage borrowing and spending as the way to build a strong nation. Americans have been convinced that borrowing to appear successful is the same as saving and investing to actually achieve economic success.
  • Americans saved 7% to 12% of their income from 1960 through 1980. As Wall Street convinced delusional Boomers that stock and house appreciation would fund their luxurious retirements, savings plunged to below 0% in 2005. Why save when your house doubled in price every three years? Americans rationally began to save again in 2009 but Bernanke’s zero interest rate policy put an end to that silliness. Why save when you are being paid .15%? Buying Apple stock at $560 (can’t miss) and getting in on the Facebook IPO (PE ratio of 99) is a much better bet. The national savings rate of 3.8% is back to early 2008 levels. I wonder what happens next?

 

  • The proportional distribution between interest and dividends which had been in the 3 to 4 range for decades is now virtually 1 to 1, as Ben Bernanke has devastated the lives of millions of poor senior citizen savers while continuing to subsidize his wealthy stock investors buddies on Wall Street.

Now for the bad news. The Baby Boom generation has just begun to retire en masse. Government transfers will automatically accelerate over the next decade as Social Security and Medicare transfer payments balloon. Government transfer payments have already increased by 3,250% since 1970, while wages and salaries have increased by 1,250%. The non-existent inflation touted by Ben Bernanke accounts for 590% of this increase. We have passed a point of no return. As the number of Americans receiving a government EBT into their bank account grows by the day and the number of working Americans remains stagnant, the chances of a politician showing the courage to address our un-payable entitlement liabilities is near zero. Americans choose to deal with problems in a reactive manner rather than a proactive manner. Until the next inescapable crisis, the fraud and looting will continue until morale improves. 

 Billions of $

1970

1980

1990

2000

Apr-08

2010

Mar-12

Total Personal Income

$835

$2,257

$4,852

$8,548

$12,457

$12,361

$13,328

Wages & Salaries

$552

$1,358

$2,750

$4,800

$6,565

$6,413

$6,905

Interest Income

$69

$272

$753

$989

$1,397

$1,012

$984

Dividend Income

$24

$65

$169

$381

$810

$723

$821

Government transfers

$71

$256

$570

$1,041

$1,786

$2,217

$2,312

 

A Few Evil Men

“Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is the FED has usurped the government. It controls everything here (in Congress) and controls all our foreign relations. It makes and breaks governments at will… When the FED was passed, the people of the United States did not perceive that a world system was being set up here… A super-state controlled by international bankers, and international industrialists acting together to enslave the world for their own pleasure!” – Rep. Louis T. McFadden 

  

The largest fraud and theft being committed in this country is being perpetrated by the Central Bank of the United States; its Wall Street owners; and the politicians beholden to these evil men. The fraud and theft is being committed through the insidious use of inflation and manipulation of interest rates. The biggest shame of our government run public education system is their inability or unwillingness to teach even the most basic of financial concepts to our children. It’s almost as if they don’t want the average person to understand the truth about inflation and how it has slowly and silently destroyed their livelihood while enriching the few who create it. Converting the chart above into inflation adjusted figures reveals a different picture than the one sold to the general public on a daily basis. Even using the government manipulated CPI figures from the BLS, the ravages of inflation are easy to recognize.

Billions of Real $

1970

1980

1990

2000

Apr-08

2010

Mar-12

Total Personal Income

$4,937

$6,261

$8,569

$11,374

$13,304

$13,007

$13,328

Wages & Salaries

$3,264

$3,767

$4,856

$6,387

$7,011

$6,748

$6,905

Interest Income

$408

$754

$1,330

$1,316

$1,492

$1,065

$984

Dividend Income

$142

$180

$298

$507

$865

$761

$821

Government transfers

$420

$710

$1,007

$1,385

$1,907

$2,333

$2,312

CPI

38.8

82.7

129.9

172.4

214.8

218

229.4

Total wages and salaries have risen by only 112% on an inflation adjusted basis over the last 42 years. This is with U.S. population growth from 203 million in 1970 to 313 million people today, a 54% increase. On a real per capita basis, wages and salaries rose from $16,079 in 1970 to $22,060 today, a mere 37% increase in 42 years. That is horrific and some perspective will reveal how bad it really is:

  • The average new home price in 1970 was $26,600. The average new home price today is $291,200. On an inflation adjusted basis, home prices have risen 85%.  
  • The average cost of a new car in 1970 was $3,900. The average price of a new car today is $30,748. On an inflation adjusted basis, car prices have risen 33%.
  • A gallon of gasoline cost 36 cents in 1970. A gallon of gas today costs $3.85. On an inflation adjusted basis, gas prices have risen 81%.
  • The average price of a loaf of bread in 1970 was 25 cents. The average price of a loaf of bread today is $2.60. On an inflation adjusted basis, a loaf of bread has risen 76%.

In most cases, the cost of things we need to live have risen at twice the rate of our income. This data is bad enough on its own, but it is actually far worse. The governing elite, led by Alan Greenspan, realized that accurately reporting inflation would reveal their scheme, so they have been committing fraud since the early 1980s by systematically under-reporting CPI as revealed by John Williams at www.shadowstats.com:

       

The truth is that real inflation has been running 5% higher than government reported propaganda over the last twenty years. This explains why families were forced to have both parents enter the workforce just to make ends meet, with the expected negative societal consequences clear to anyone with two eyes. The Federal Reserve created inflation also explains why Americans have increased their debt from $124 billion in 1970 to $2.522 trillion today, a 2000% increase. Wages and salaries only rose 1,250% over this same time frame. Living above your means for decades has implications.   

 

The country, its leaders, its banks and the American people should have come to their senses after the 2008-2009 melt-down. Politicians should have used the crisis to address our oncoming long-term fiscal train wreck, the recklessly guilty Wall Street banks should have been liquidated and their shareholders and bondholders wiped out, the bad debt rampant throughout the financial system should have been purged, and American consumers should have reduced their debt induced consumption while saving for an uncertain cloudy future. These actions would have been painful and would have induced a violent agonizing recession. It would be over now. We would be in the midst of a solid economic recovery built upon reality. Iceland told bankers to screw themselves in 2008. They accepted the consequences of their actions and experienced a brutal two year recession.

    

The debt was purged, banks forced to accept their losses, and the citizens learned a hard lesson. Amazingly, their economy is now growing strongly. This is the lesson. Wall Street is not Main Street. Saving Wall Street banks and wealthy investors did not save the economy. Stealing savings from little old ladies and funneling it to psychopathic bankers is not the way to save our economic system. It’s the way to save bankers who made world destroying bets while committing fraud on an epic scale, and lost.

Despite the assertion by the good doctor Krugman that there are very few Americans living on a fixed income being impacted by Bernanke’s zero interest rate policy, there are actually 40 million people over the age of 65 in this country that might disagree. There are another 60 million people between the ages of 50 and 64 years old rapidly approaching retirement age. We know 36 million people are receiving SS retirement benefits today. We know that 49 million people are already living below the poverty line, with 16% of those over 65 years old living in poverty. Do 0% interest rates benefit these people? Those over 50 years old are most risk averse, and they should be. Despite the propaganda touted by Wall Street shills and their CNBC mouthpieces, the fact is that the S&P 500 on an inflation adjusted basis is at the same level it was in 1996. Stock investors have gotten a 0% return for the last 16 years. The market is currently priced to deliver inflation adjusted returns of 2% over the next ten years, with the high likelihood of a large drop within the next year.

Ben Bernanke’s plan, fully supported by Tim Geithner, Barack Obama and virtually all corrupt politicians in Washington DC, is to force senior citizens and prudent savers into the stock market by manipulating interest rates and offering them no return on their savings. A fixed income senior citizen living off their meager $15,000 per year of Social Security and the $100,000 they’ve saved over their lifetimes was able to earn a risk free 5% in a money market fund in 2007, generating $5,000 or 25% of their annual living income. Today Ben is allowing them to earn $150 per year. From the BEA info in the chart above you can see that Ben’s ZIRP has stolen $400 billion of interest income from senior citizens and prudent savers and dropped it from helicopters on Wall Street. This might explain why old geezers are pouring back into the workforce at a record pace. Maybe Dr. Krugman has an alternative theory.

          

Another doctor, with a penchant for telling the truth, described in no uncertain terms the depth of the fraud and theft being perpetrated on the American people (aka Muppets) by Ben Bernanke, the Federal Reserve, their masters on Wall Street, and the puppets in Washington DC:

“We are not doing very well. The economy is just coming along at a snail’s pace. The first quarter numbers that we just got last week were not very good at all. The GDP number was 2.2%. That was a disappointment, but you know, it was all automobiles. 1.6 out of the 2.2 was motor vehicle production. So, people were catching up after not being able to buy them the year before. So, this is a very weak economy… I think the real danger is that this is a bubble in the stock market created by low long-term interest rates that the Fed has engineered. The danger is, like all bubbles, it bursts at some point. Remember, Ben Bernanke told us in the summer of 2010 that he was going to do QE2 and then ultimately they did Operation Twist. The purpose of that was to make long-term bonds less attractive so that investors would buy into the stock market. That would raise wealth and higher wealth would lead to more consumption. It helped in the fourth quarter of 2010 and maybe that is what is helping to drive consumption during the first quarter of this year. But the danger is you get a market that is not with the reality of what is happening in the economy, which is, as I said a moment ago, is really not very good at all.” – Martin Feldstein

The entire bogus recovery is again being driven by subprime auto loans being doled out by Ally Financial (85% owned by the U.S. government) and the other criminal Wall Street banks. The Federal Reserve and our government leaders will continue to steer the country on the same course of encouraging rampant speculation, deterring savings and investment, rewarding outrageous criminal behavior, purposefully generating inflation, and lying to the average American. It will work until we reach a tipping point. Dr. Krugman thinks another $4 trillion of debt and a debt to GDP ratio of 130% should get our economy back on track. When this charade is revealed to be the greatest fraud and theft in the history of mankind, Ben and Paul better have a backup plan, because there are going to be a few angry men looking for them.

Henry Ford knew what would happen if the people ever became educated about the true nature of the Federal Reserve:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” 

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NemoDeNovo's picture

Morale????  You mean "Things won't Improve until these CROOKS are brought to Justice"

That sounds much better.

Manthong's picture

“The biggest shame of our government run public education system is their inability or unwillingness to teach even the most basic of financial concepts to our children.”

That is not “shame”.

That is a proud accomplishment of the usurpers.

Calling this all out as "evil" -- excellent.

macholatte's picture

 

Here's a bit more fraud.............

 

Obama says his father served in World War II

http://www.youtube.com/watch?v=Fv4jnlkxOaw

 

Barack Hussein Obama Sr. (Obama's father) Born: 4/4/36 Died: 11/24/82 at the age of 46. He was 5 years old when WW II started, and less than 9 1/2 yrs old when it ended.

Lolo Soetoro (Obama's step father) Born: January 2,1935 Died: 3/2/87 at the age of 52. He was 6 years old when WW II started, and 10 years old when it ended. He must have been the youngest Veteran in the war.

Max Hunter's picture

This is not a reply to the guy above.... anyway..

Thanks for the uplifting outlook.. I think i'll go eat a bullet now.. good night.. ;)

j/k.. good piece..

macholatte's picture

Supplement.  When people drink the Kool-Aid of lies without performing even the most remedial research it tells quite a lot about society. The concept of "spin" has become "Bold Faced Lie" without any consequences. The Birth Cert is a bold faced lie without ay consequences. Now consider all the lying, cheating and stealing you don't know about and all the blind sheep.  It's horrifying.

 which reminds me that I forgot to add this:

 

Obama Sr

http://en.wikipedia.org/wiki/Barack_Obama,_Sr.

 

Lolo Soetoro

http://en.wikipedia.org/wiki/Lolo_Soetoro

 

macholatte's picture

 

Perhaps Mr. Quinn missed these:

 

When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger....

Overpaid Federal Workers

http://www.downsizinggovernment.org/overpaid-federal-workers

 

  • Federal civilian employees with no more than a high school education averaged 36 percent higher total compensation than similar private-sector employees.
  •  

    Comparing the Compensation of Federal and Private-Sector Employees http://www.cbo.gov/publication/42921
    A Nanny Moose's picture

    The NBA playoffs are a great diversion from how little I, the lowly network engineer make, compared to the average State or Federal IT Contract Administrator II

    Sauk Leader's picture

    He was referring to a "composite" Grandfather that he had created based on several old people he knew in his neighborhood. It made for a better story in his autobiography.

    NotApplicable's picture

    Autobiography? Yeah, right.

    I like how people create composite characters from their own history. That way, pesky details, such as the truth, just blend right in with the fabrications.

    shovelhead's picture

    Maybe he's talking about his real father Frank Marshall, the Chicago commie.

    Random_Robert's picture

    Obama was obviously referring to his REAL father.... Frank Marshall Davis (December 31, 1905, Arkansas City, Kansas; July 26, 1987, Honolulu, Hawaii)

    No wait- that doesn't work- Davis was too busy publishing and community organizing in Chicago to have had time to kill any of them damn nazi-japs.

    Maybe he was referring to his promiscuous mother's dad, who actually was a WWII vet...

    Yeah, that's the ticket. Grandpa-dad was a WWII vet, mommy was a slut, and I'm the fucking President with my finger sitting over the big red nuke-button...

    Is the USA a great country, or what?!?!?!!

     

     

     

    Benjamin Glutton's picture

    Hey what happened...I thought this was the important FRAUD.

     

    BILL BLACK on lying Geithner and other fraud.

     

    On April 25, 2012, Treasury Secretary Geithner made remarkable statements about the role of elite financial fraud and greed in producing our recurrent, intensifying financial crises.

    In this first installment I focus on the first of five problems with Geithner’s claims: (1) he does not understand the causes of prior crises, (2) he does not understand the causes of the ongoing crisis, (3) he does not understand that if he were correct about the first two points our nation would be in even greater peril and the urgency of Geithner leading a radical transformation of finance and regulation would be greater still, (4) he is not correct that we are prosecuting the elite criminals who drove the ongoing crisis, and (5) the media continues its nine-year pattern of failing to challenge Geithner’s fictions and his failures to lead the radical transformation that he should be desperately seeking given his stated beliefs about the causes of financial crises.

    Here are the specifics of what Geithner said about financial crises, fraud, and greed.
    "The wheels of justice are turning now," Geithner said at an event in Portland after touring a factory there. "They are not turning as fast as people would like, but we have the best system in the world for making sure we can enforce the laws of the land," he said.

    Geithner suggested that holding people accountable for the wreckage caused by the recent housing collapse and the ensuing financial meltdown was not that simple since most crises were not caused by criminal activity.

    "Most financial crises are caused by a mix of stupidity and greed and recklessness and risk-taking and hope," said Geithner, who helped tackle the crisis for the Bush administration when he was the head of the New York Federal Reserve and has been urging Europe to act more aggressively to contain its debt problems.

    "You can't legislate away stupidity and risk-taking and greed and recklessness. What you can do is make sure when it happens it does not cause too much damage and to do that you have to make sure you have good rules against fraud and abuse, better protections and you force banks to hold more capital against their risk," he said.

    Link: http://www.huffingtonpost.com/2012/04/25/timothy-geithner-wheels-justice-turning-now_n_1454235.html

    Geithner’s first claim is that “most financial crises” are caused by non-criminal acts.  “Stupidity” is the lead cause of financial crises, compounded by “risk-taking and greed and recklessness.”  Fraud does not even make Geithner’s list of contributing factors to financial crises.  The U.S. has experienced three recent financial crises – the S&L debacle (which is the subject of this first installment), the Enron era frauds, and the ongoing crisis.  Accounting control fraud is the leading cause of each of the crises.  “Control fraud” is the term white-collar criminologists use to refer to frauds in which the person controlling a seemingly legitimate entity uses it as a “weapon” to defraud.  Accounting is the “weapon of choice” for elite financial frauds.  Control frauds cause greater financial losses than all other forms of property crime – combined.

     

    http://www.capitalismwithoutfailure.com/2012/05/bill-black-geithner-chan...

     

     

    Caviar Emptor's picture

     “Stupidity” is the lead cause of financial crises, compounded by “risk-taking and greed and recklessness.” 

    If that's the case then

    a) The financial elite were SOOO stupid (despite their degrees, training and experience) that the statement endights the legitimacy of the entire Wall Street corporate governance AND that of the Fed. 

    b) Then the entire US capital market system is still susceptible to collapse due to the slightest idiocy, a very precarious and risky system to bet on

    Terra-Firma's picture

    Canada's big bank secrets. Corporate welfare at the people's expense.We are not clean as the pure driven snow up here either. We just have no Zerehedge type hound up here. Go Zerehedge!!!!!

    http://www.terra-firma.ca/user/image/canada27s-big-banks-big-secret.pdf

    RmcAZ's picture

    This article is an excellent summary... I will try to get my friends/family to read it, but ultimately most people couldn't really give a shit less.

    battle axe's picture

    So in other words, nothing will change...

    resurger's picture

    Fuck it, BA .. have you got your ipad 4 yet?

    yogibear's picture

    Itsn't that the purpose of Bernanke and the federal reserve banksters? Devalue the currency and steal as much as you can for a limited number of people and claim it's for the greater good. Counterfeiting is illegal for the rest of us, but it's perfectly legal for the Federal Reserve.

    Comay Mierda's picture

    you're a conspiracy theorist!  what time is dancing with the stars on tonight?

    TheCanimal's picture

    Yogi is smarter than the average bear.

    takinthehighway's picture

    Most days, I'm not as smart as the average picnic basket...

    SheepDog-One's picture

    'A few angry men will be looking for them when it does tip over'...

    Well thats the problem with man, they ignore everything until its far too late, when they should have know far better way earlier, and then get mad only when it caves in on their own head.

    Why is there rampant fraud and corruption? Simple...the sheeple LOVE it!

    Its only too easy for the bankster overlords to fleece the stupid Neandersheeple, always has been. Because bottom line the 'criminal banks' can ONLY keep inflating bubbles if the SHEEP are always there to play along with their hands out and greedily gobble it all up!

    Im rooting for the bankers inflict max pain on them all and soon.

    sunaJ's picture

    Yes, SD-1, "neandersheeple" will always be fleeced by concentrations of great power.  Let them burn, and happily, I guess is your philosphy.  Neandersheeple will also always succumb to schadenfreude, not recognizing that it is the head of the snake eating the tail.  So FTW, you can be a contributing author to the catastrophe, too!

    Chupacabra-322's picture

    The article left out Rep. Louis T. McFadden most important quote:


    “The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International Jewish bankers.” – Congressman Louis T. McFadden (Rep. Pa)


    “The drive of the Rockefellers and their allies is to create a one-world government combining supercapitalism and Communism under the same tent, all under their control…. Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent.
    - Congressman Larry P. McDonald, 1976, killed in the Korean Airlines 747 that was shot down by the Soviets

    “The International bankers rule the world through debt, which is money they create out of nothing. They need world government to ensure no country defaults or tries to overthrow them. As long as private bankers, instead of governments, create money the human race is doomed. These bankers and their allies have bought everything and everyone.” – Henry Makow

    A Nanny Moose's picture

    Those who question the monetary system have short life spans...might be bad genes

    Chupacabra-322's picture

    The NWO wants global Fascism.

    Resist or become the NWO.

    Americans are not allowed to challenge the two-party duopoly/false Right/Left Paradigm.

    Romney/Obamney is really no change in the NWO order agenda, as well. Look at the folks Romney has surrounded himself with. Same old games from both political parties in this country.

    TheGardener's picture

    All the NWO Fascists might want is entities too large to be outdone by a few able and determined men as could happen in any region or nation. That and only could be enough to keep them all conspiring not to lose power or being disposed off on an lamp post.

    The good news for us and folly of this stragedy is they will
    be taken up locally , once their global overstrech unravels.

    Jerry Maguire's picture

    It's a pump and dump:  luring more people into the debt market, whereupon the rug will be pulled out and interest rates will rise, wiping out existing creditors:

    http://strikelawyer.wordpress.com/2012/05/03/interesting-developments/

    The real solution is a jubilee, among other things:

    http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...

    http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...

     

    loftgroovv's picture

    I don't see the US economy getting any worse, it will just remain stagnant.

     

    See Japan over the past 10 year or so. That is the USA in the next 10 years.

    Clint Liquor's picture

    If you can't 'see' it, you must have your eyes closed.

    DavidC's picture

    Japan had the benefit of burgeoning Western economies in the 90s to mitigate some of the effects of its financial stupidity (with the good ol' USA telling them they were doing it ll wrong). Now the problem is global, and the good ol' USA is doing EXACTLY what it told Japan not to do.

    DavidC

    SheepDog-One's picture

    The US is not on a 'Japan glide path' at all....these credit bubbles will be blown up fast and explode spectacularly and bring the whole thing down on its head, this year. DHS 500 million rounds of ammo, umpteen martial law exec orders and skies full of Predator drones....not for nothin.

    theTribster's picture

    That's right, I read somewhere that the DHS says its possible there won't be an election this year because things will be so bad with civil unrest. I also read that bluehats will be used to help patrol the cities and the associated mechanisms for deployement were already in place and tested. Chicago will represent some of this thinking with the coming NATO summit later this month. They are starting the same type of deployments in France, Spain and even erected detention centers in Athens. Right now it is usually done under some other guise but mass civil unrest is the expectation.

    The banking system was turned into vaporware in 2007-2008, it still is since nothing has changed except for extentions and expansions of the lies and coverups. They've known since then that a complete system failure was inevitable but that they could hold it off for a few to several years, that timeframe is over now we are at the end of the massive shell game within a ponzi scheme.

    I also agree that is this year, can they hold it up until after the election? That's the intention for sure but after Europe goes (or Japan) they will have lost control and it won't be stopped. I'm still hopefull that this can occur before the Republican Convention in August so that Ron Paul stands in a different light. That being said, for Ron to be considered things would have to be really, really bad which is possible and even likely I would argue. But alas, if this good fortune would fall on America then Obummer and the crooked Congress would draft a bill delaying the election in perpitude until after the crises. Obummer then becomes dictator by default, congress will have signed their own death warrant at that point, either by the people or the president.

    I really am holding out for the big crash and burn before the August covention. Consider millions of people storming Orlando (wherever it is) to demand that Ron Paul be the candidate. As long as this happens before the delagates commit it is actually possible - I wanna believe, I wanna believe....

    It really is our only chance to regain the Republic before it goes down the shit hole for the final time. 2016 will be too late. BTW, I just saw Ron Paul has won 11 states in terms of delagates still leaving some biggies up in the air (CA, TX, etc). I'm hoping to be there

    WonderDawg's picture

    If you actually believe this:

    The banking system was turned into vaporware in 2007-2008, it still is since nothing has changed except for extentions and expansions of the lies and coverups. They've known since then that a complete system failure was inevitable but that they could hold it off for a few to several years, that timeframe is over now we are at the end of the massive shell game within a ponzi scheme.

    Why would you say this:

    I really am holding out for the big crash and burn before the August covention. Consider millions of people storming Orlando (wherever it is) to demand that Ron Paul be the candidate. As long as this happens before the delagates commit it is actually possible - I wanna believe, I wanna believe....

    Just curious. Your post seems to imply understanding and complete delusion all at once.

    TooBearish's picture

    Ergo Nancy Pulosi proven correct in her assessment that Unemployment Benefits and Food Stamps grow the economy...

    l1b3rty's picture

    What is virtue? We know what is virtue. Then why not act thereupon?

    http://silvervigilante.com

    SheepDog-One's picture

    Because the sheeple much prefer shiny new iGizmo's and a new car on EZ Credit.

    francis_sawyer's picture

    http://www.youtube.com/watch?v=jQHpV0F2xx4

    ~~~

    "EZ credit rip-offs... GOOD TIMES!

    Ain'te we lucky we got 'em... GOOD TIMES!"

    Timmay's picture

    Able men of rioting age will be off to war soon. Rest easy Benny.

    resurger's picture

    "When you cant borrow another buck from the bank & cant buy a booze"

    "You bust the joint out, you light a match"

    Thnx for the link RacerX

    http://www.youtube.com/watch?v=ZPtjyqgZAUk

     

    FUCK THE FED

    LawsofPhysics's picture

    Everything that Ron Paul (and even Ross Perot) has been saying for 30+ years.  Same as it ever fucking was, hedge accordingly.

    Dr. Engali's picture

    Ross Perot's purpose was to throw the election to Clinton so TPTB could get Nafta through. There was no way that legislation could have passed under a republican president. Not that a republican wouldn't have signed it, they surely would have, but a democrat signature supported by a republican house made it legit to the sheeple.

    victor82's picture

    With all due respect, excuse the f**k out of me?

    Clinton's opponent in 1992 was George H.W. "I've never seen a Mexican I didn't think shouldn't work long hours in a Sweatshop because these Overpaid Americans just Won't!" Bush.

    He of the New World Bankster's Order?

    Both of them were Bought and Paid For several times over.

    Now under Reagan? That was another thing. Reagan actually threw up tarriffs to keep Harley Davidson in business.

    midgetrannyporn's picture

    The Bernanke is trying to force people back into the crooked casino at gunpoint. The whole stock market is a scam to deliver $ from the poor to the maggots.

    SheepDog-One's picture

    Transfer title. Thats all banskters do. And most people are too dumb to get it, theyre greedy for a shiny new gizmo or new car.