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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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Mon, 05/07/2012 - 16:26 | 2404593 NemoDeNovo
NemoDeNovo's picture

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

That sounds much better.

Mon, 05/07/2012 - 16:43 | 2404659 Manthong
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.

Mon, 05/07/2012 - 17:01 | 2404719 macholatte
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.

Mon, 05/07/2012 - 17:25 | 2404784 Max Hunter
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..

Mon, 05/07/2012 - 17:50 | 2404820 macholatte
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

 

Mon, 05/07/2012 - 17:57 | 2404847 macholatte
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
    Mon, 05/07/2012 - 21:23 | 2405291 A Nanny Moose
    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

    Mon, 05/07/2012 - 17:30 | 2404791 Sauk Leader
    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.

    Mon, 05/07/2012 - 17:46 | 2404827 NotApplicable
    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.

    Mon, 05/07/2012 - 17:47 | 2404825 shovelhead
    shovelhead's picture

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

    Mon, 05/07/2012 - 18:00 | 2404857 Random_Robert
    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?!?!?!!

     

     

     

    Mon, 05/07/2012 - 17:11 | 2404744 Benjamin Glutton
    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...

     

     

    Mon, 05/07/2012 - 17:31 | 2404793 Caviar Emptor
    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

    Mon, 05/07/2012 - 17:15 | 2404753 Terra-Firma
    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

    Mon, 05/07/2012 - 18:08 | 2404880 RmcAZ
    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.

    Mon, 05/07/2012 - 16:29 | 2404600 battle axe
    battle axe's picture

    So in other words, nothing will change...

    Mon, 05/07/2012 - 16:37 | 2404639 resurger
    resurger's picture

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

    Mon, 05/07/2012 - 16:29 | 2404608 yogibear
    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.

    Mon, 05/07/2012 - 16:42 | 2404657 Comay Mierda
    Comay Mierda's picture

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

    Mon, 05/07/2012 - 16:41 | 2404661 TheCanimal
    TheCanimal's picture

    Yogi is smarter than the average bear.

    Mon, 05/07/2012 - 23:53 | 2405509 takinthehighway
    takinthehighway's picture

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

    Mon, 05/07/2012 - 16:30 | 2404609 toady
    toady's picture

    Bubblicious

    Mon, 05/07/2012 - 16:32 | 2404613 HANKREARDON
    HANKREARDON's picture

    WELL DONE.

    Mon, 05/07/2012 - 16:40 | 2404615 SheepDog-One
    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.

    Mon, 05/07/2012 - 17:18 | 2404754 sunaJ
    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!

    Mon, 05/07/2012 - 16:33 | 2404617 Chupacabra-322
    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

    Mon, 05/07/2012 - 16:38 | 2404647 resurger
    resurger's picture

    G&S(tm)

    Mon, 05/07/2012 - 16:42 | 2404669 A Nanny Moose
    A Nanny Moose's picture

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

    Mon, 05/07/2012 - 16:47 | 2404686 Chupacabra-322
    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.

    Mon, 05/07/2012 - 17:56 | 2404849 shovelhead
    shovelhead's picture

    Look at the bright side...

    The NWO makes housecalls.

    http://therealrevo.com/blog/wp-content/uploads/2010/04/SWAT1474web-505x3...

    Mon, 05/07/2012 - 18:10 | 2404889 TheGardener
    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.

    Mon, 05/07/2012 - 16:33 | 2404618 Jerry Maguire
    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...

     

    Mon, 05/07/2012 - 16:35 | 2404622 loftgroovv
    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.

    Mon, 05/07/2012 - 16:40 | 2404648 Clint Liquor
    Clint Liquor's picture

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

    Mon, 05/07/2012 - 16:43 | 2404665 DavidC
    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

    Mon, 05/07/2012 - 16:48 | 2404689 SheepDog-One
    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.

    Mon, 05/07/2012 - 19:03 | 2405028 theTribster
    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

    Mon, 05/07/2012 - 20:55 | 2405253 WonderDawg
    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.

    Mon, 05/07/2012 - 16:35 | 2404623 TooBearish
    TooBearish's picture

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

    Mon, 05/07/2012 - 16:35 | 2404624 l1b3rty
    l1b3rty's picture

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

    http://silvervigilante.com

    Mon, 05/07/2012 - 16:37 | 2404637 SheepDog-One
    SheepDog-One's picture

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

    Mon, 05/07/2012 - 16:52 | 2404697 francis_sawyer
    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!"

    Mon, 05/07/2012 - 16:35 | 2404628 Timmay
    Timmay's picture

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

    Mon, 05/07/2012 - 16:37 | 2404629 resurger
    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

    Mon, 05/07/2012 - 16:37 | 2404638 LawsofPhysics
    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.

    Mon, 05/07/2012 - 16:48 | 2404684 Dr. Engali
    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.

    Mon, 05/07/2012 - 19:26 | 2405069 victor82
    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.

    Mon, 05/07/2012 - 16:38 | 2404644 midgetrannyporn
    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.

    Mon, 05/07/2012 - 16:41 | 2404658 SheepDog-One
    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.

    Mon, 05/07/2012 - 16:38 | 2404645 insanelysane
    insanelysane's picture

    The thing that amazes me the most about the whole debacle is that the liberal element in the US complains that Americans eat too much food, waste too much water, use too much gasoline, etc.  But you never hear them complain that Americans and their government are using up all of the money available to be loaned.  I mean think of how many poor countries could borrow money at low interest rates if the US government wasn't borrowing $1 trillion per year. 

    Don't let them catch you brushing your teeth with the faucet running but no one says a thing as the government pours billions of dollars down the black hole.

    Mon, 05/07/2012 - 16:46 | 2404675 LawsofPhysics
    LawsofPhysics's picture

    Yeah, it's "the liberals" fault.  Another sheep that still believes the "two-party" lie.  How about we let private companies go fucking bankrupt for a change.  The fascists love useful idiots like yourself.  Talk about governments wasting trillions, I don't think too many "liberals" thought TARP and TALF where good ideas.  What an idiot.  Ever hear about the socialization of PRIVATE losses?  next time a big company goes under, let the fucking management and shareholders pay back the creditors and NOT THE FUCKING TAXPAYER MORON!!!

    Mon, 05/07/2012 - 16:52 | 2404701 Chupacabra-322
    Chupacabra-322's picture

    @ LawsofPhysics,  they can't help it.  They're caught in the Matrix.

    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.

     

    Mon, 05/07/2012 - 17:21 | 2404768 Buckaroo Banzai
    Buckaroo Banzai's picture

    He didn't say "Democrats" or "Republicans"-- that's the "two-party" lie.

    He said "liberals", and in fact, liberals ARE the problem. We have one party, the DemoPublican party, which is a liberal party that stands for one thing: bigger government.

    The Democrat wing wants bigger government via more taxes, more spending, and more money printing. The Republican wing wants bigger government via allegedly lower taxes, more spending, and more money printing.

    Liberalism IS the problem.

    Mon, 05/07/2012 - 17:33 | 2404794 LawsofPhysics
    LawsofPhysics's picture

    Wrong.  You forgot "war-mongering" and "kleptocracy", neither of which I would consider LIBERAL beliefs.  If you do, then please share whatever that is you are smoking.

    Mon, 05/07/2012 - 17:38 | 2404805 Chupacabra-322
    Chupacabra-322's picture

    Pass it you Bogart.  Perhaps this will settle the argument.

    The Difference - By J. Speer-Williams

    Neo-cons love war and torture, increased regulations, tyranny, and taxes; with our taxes going to the plutocrats of the private banking community. They support governmental destruction of our environment, under the pretense of protecting it. They, also, overtly support corporatism (fascism for oligarchs) and any other measures supported by the republican party that enrich the private International Monetary/Banking Cartel at the expense of the American people.

     Neo-libs love war and torture, increased regulations, tyranny, and taxes; with our taxes going to the plutocrats of the private banking community. They support governmental destruction of our environment, under the pretense of protecting it. They, also, covertly support corporatism (socialism for oligarchs) and any other measures supported by the democratic party that enrich the private International Monetary/Banking Cartel at the expense of the American people.

    Mon, 05/07/2012 - 18:18 | 2404904 donsluck
    donsluck's picture

    screw red, screw blue, vote green

    Mon, 05/07/2012 - 18:34 | 2404958 TheGardener
    TheGardener's picture

    screw you, and red brown green versions of socialism

    Mon, 05/07/2012 - 18:29 | 2404943 TheGardener
    TheGardener's picture

    In defense of you Banzai, liberal is anything goes.

    No excuses liberals, bend over. My wrong, of course you all do...;-)

    Mon, 05/07/2012 - 22:32 | 2405388 marathonman
    marathonman's picture

    I do believe it was the Democrats that held majorities in Congress when TARP and TALF came up for votes in 2008.  The Republicans didn't vote for it on the first go around.  The Democrats finally arm twisted enough to get it done along with some Republican defectors (sellouts).  Liberals apparently thought enough of it to pass it through the House and Senate and have George (soft Socialist) Bush sign it.  Democrats couldn't let the financial system crash.  The power of the welfare state and the leviathan Federal government rests squarely on the Central Bank.  Without it, their power is bupkus.  Liberals had to save the financial system and the Central Bank.  Democrats power has always been a deal with the Devil.  (Not to say that Republicans haven't sold their souls to the same Devil, just on different terms.)

    Mon, 05/07/2012 - 16:46 | 2404678 SheepDog-One
    SheepDog-One's picture

    Yea I always did find that funny, really its just a gluttonous nanny state scolding you that you have too much and are 'wasteful', and are a bad boy, isnt it? 1984

    Mon, 05/07/2012 - 16:39 | 2404650 GernB
    GernB's picture

    Before there is a popular uprising against Ben you will need two things that are currently completely lacking:

    1) An honest press

    2) People to whom the truth is more important than their political ideology.

    Even if I thought the first was possible, only a fool would expect the second.

    Mon, 05/07/2012 - 16:42 | 2404662 Dr. Engali
    Dr. Engali's picture

     

    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."

     

    I only partially agree with this statement. He actually did QE2 and 3 to lower the government's borrowing cost. There is nobody else to buy the bonds,people buying into the stock market was an ancillary effect to stoke consumption.

    Mon, 05/07/2012 - 16:43 | 2404671 Stuck on Zero
    Stuck on Zero's picture

    Jim Quinn is forgetting something in the equation: taxes.  Don't look at the gross income of Americans.  It's bogus.  Look at income after taxes, forced expenditures, fees, levies, fines, and "donations."  That is the real spendible income.  It is the only money that counts and it's under 50% of your gross, I guarantee.

     

    Mon, 05/07/2012 - 17:52 | 2404840 Rainman
    Rainman's picture

    Agree. Government has become an industry unto itself ...home office in D.C. with a variety of  big and small taxing subsidiaries spanning coast-to-coast. The Greatest of the Vampire Squids. That bullshit about them being public service institutions is a holdover from the 1950s civics classes. 

    Mon, 05/07/2012 - 17:49 | 2404672 Whoa Dammit
    Whoa Dammit's picture

     

    The Sport of Kings is Now The Sport of Loan Sharks

     On the first Saturday in May, 2012, yet another venerable institution of American culture was infiltrated by a denizen of the shady, but somehow legal, financiers that have ruined the rest of our country, when J.Paul Reddam’s horse won the Kentucky Derby. However, his business practices to not smell like the roses his horse ran for.

     Reddam ,is a former philosophy professor, who seemingly has whole heartedly embraced the ideology of Capio Ergo Sum (I Take Therefore I Am). While teaching, “what Reddam was often thinking about was racing. In his spare time, he put together harness partnerships or played the pick six at Los Alamitos Race Course. ‘Pretty much anyone I knew, I was talking them into putting up five grand or something,’ said Reddam. ‘My landlord. The chairman of the philosophy department. Girlfriends. Everyone was victimized.’

     http://articles.latimes.com/2007/may/04/sports/sp-derby4

     Reddam then moved on to be involved with the ownership of several funding companies, before founding DiTech. “Ditech was a pioneer in offering 125 percent loans, in which the borrower could get more than the property was worth. It specialized in no-documentation mortgages and stated income loans.” DiTech was purchased by GM in 1999, and we all know what happened to GM because of their forays into mortgage lending. Reddem remained as CEO of Ditech until  2000, when “the FBI moved to seize records from a second company (Southland Title) that does business with Ditech.com, widening the criminal investigation into an alleged extortion scheme involving former top managers of the Costa Mesa mortgage lender.” “Ditech founder and Chief Executive J. Paul Reddam, a flamboyant figure who doubled as the firm's TV pitchman, resigned the same day the investigation became public. Reddam has not been charged in the case.”

    http://articles.latimes.com/2000/may/13/business/fi-29536

    http://www.thecuttingedgenews.com/index.php?article=11128&pageid=&pagename=

    Reddam then went on to start a new company, CashCall, a pay day lender that was fined $1 million by the California AG for what the AG referred to as “using loan shark tactics”.

    From the AG’s complaint: “Defendant CashCall, Inc. is a lender that makes small, unsecured cash loans to consumers at very high interest rates.  CashCall's typical loan products offered to California consumers have included a $2,600 loan with an annual percentage rate of99.25%  CashCall makes untrue or misleading statements. about the ani1ual percentage rate charged on its consumer loans, including advertising that falsely suggests that lower interest rates  available only to  certain borrowers are available to the general public. 2.  Defendant also has engaged in unlawful and unfair debt collection practices, including harassing borrowers with excessive and verbally abusive telephone calls at all hours of  the day, both at home and at work; causing borrowers to incur over~the-limit and other bank fees by repeatedly trying to collect payments when CashCall knows there are insufficient funds in the borrowers'  accounts; threatening to initiate law enforcement and wage garnishment proceedings against borrowers without any basis for doing so; improperly discussing borrowers' private financial information with the borrowers' friends,  co-workers and neighbors; not honoring  borrowers' requests to cancel automatic withdrawals from their checking accounts; and continuing to contact borrowers by phone after receiving requests that Defendant contact them only in writing.”  There is currently a class action lawsuit, filed on behalf of borrowers nationwide who were subjected to abusive collection practices, against CashCall that is expected to go to trial at the end of this year.

     

    http://www.sturdevantlaw.com/news.html#cashcall_proceeding

    http://ag.ca.gov/cms_attachments/press/pdfs/n1788_cashcallcomplaint.pdf

    But when the tables are turned on Reddam it’s different story. Redden filed a lawsuit against another race horse owner and a well known trainer because a  horse that Redden purchased turned up lame after it was shipped across the country to Reddam’s stable. Reddam said in reference to the defendants, "Their attitude seems to be that if you didn't do your diligence, that's your problem."  Bahhahaha!

     http://www.bloodhorse.com/horse-racing/articles/39796/dispute-between-reddam-and-ramsey-set-for-trial#ixzz1u7Qj0Ruz

     

     

     

     

     

    Mon, 05/07/2012 - 16:47 | 2404679 chunga
    chunga's picture

    Awesome. Another financial exploding Ford Pinto

    Ally can register these new car loans with MERS and sell them over and over again on Wall Street as an "asset-backed "security.

    Collect some sort of flipped out "insurance instrument", get bailed out, and take the car back too.

    Ten years later the "value" of these cars won't go down one penny on paper.

    Borrowers are NOT Parties to Asset Backed Securities. WRONG. Bob the Builder explains why.

    Mon, 05/07/2012 - 16:49 | 2404682 ebworthen
    ebworthen's picture

    Amazing how quickly memories fade and intelligent minds can delude themselves that "this time is different".

    Televised hoodless hangings for treason and sedition via financial legerdemain needed.

    Mon, 05/07/2012 - 16:49 | 2404688 Clint Liquor
    Clint Liquor's picture

    The irony is the Reserve Currency status of the USD. Currently, it is perceived to be a great support for the USA. But when the BRICs (and the Middle East and Southeast Asia) agree to a currency backed by Gold, USD will be coming back to America in Container Ships.

     What? You thought they were just going to continue trading the fruits of their labor and natural resources for worthless paper, forever?

    Mon, 05/07/2012 - 16:48 | 2404690 falak pema
    falak pema's picture

    finally some good news on ZH, it lifts my spirits to read..."until morale improves" and who cares about what precedes it as in LIFE, the END justifies the means; so play on and lets get our morale lifter; like a mack the knife in the funny bone. 

    Mon, 05/07/2012 - 16:56 | 2404694 bob_dabolina
    bob_dabolina's picture

    If you reaaalllly want to know the true origin of the problem we can all look into the mirror.

    How it works is people want free shit. They want their food stamps, disability, WIC, low interest student loans that can be deferred ad infinitum, car loans with no jobs, government provided cell phones, section 8 housing vouchers etc. Furthermore, public unions/government workers demand higher salaries, more benefits, more favorable working conditions, etc. In addition NO ONE wants to pay taxes, and half of the country pays no Federal Income tax at all. So it is the CITIZEN demanding all this and the POLITICIANS promise it if they get elected, and the FEDERAL RESERVE enables the politicians by printing the money to perpetuate this fantasy where everyone demands their own leprechaun butler.

    A Scottish philosopher by the name of Alexander Fraser Tytler puts it quite well:

    A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

    • From bondage to spiritual faith;
    • From spiritual faith to great courage;
    • From courage to liberty;
    • From liberty to abundance;
    • From abundance to selfishness;
    • From selfishness to complacency;
    • From complacency to apathy;
    • From apathy to dependence;
    • From dependence back into bondage.

    To see what I am talking about with your own eyes occuring in real time the following 20 second video is a beautiful synopsis.

    http://www.youtube.com/watch?v=P36x8rTb3jI

    Mon, 05/07/2012 - 17:24 | 2404777 Oldrepublic
    Oldrepublic's picture

    Excellent

    Mon, 05/07/2012 - 17:27 | 2404787 krispkritter
    krispkritter's picture

    Hello, O'benefits Hotline, my name Peggy.

    Mon, 05/07/2012 - 18:22 | 2404918 donsluck
    donsluck's picture

    This was espoused by the Roman "bread and circuses" line, waaaaay before Mr. Tytler. It doesn't matter, we   have   to   play   the   hand   we're   dealt. There is no way around it.

    Mon, 05/07/2012 - 21:24 | 2405245 BlackholeDivestment
    BlackholeDivestment's picture

    ...what people said ^^^^^^^^^^^^^^^^^^^^ http://www.youtube.com/watch?v=v9FUyy_DTEs

                                                            before they ate their children.  

    http://deathby1000papercuts.com/2012/05/will-chinese-herbal-pills-containing-dead-baby-flesh-lead-to-human-mad-cow-disease/ 

    It ain't just cat and dog, eh hem, special beef anymore, at the Great Wal Mart of China. 

    Soon to be served, Suicide Vampire Squid, ''special sea (political corruption) food''. 

    http://www.youtube.com/watch?v=8Sp-VFBbjpE  

    http://www.naturalnews.com/035790_scientific_suicide_humans.html

    http://bible.cc/ezekiel/5-10.htm  

     

    Mon, 05/07/2012 - 16:51 | 2404696 Fix It Again Timmy
    Fix It Again Timmy's picture

    Trying to dislodge TPTB is like trying to remove a barnacle with a feather; they have never been able to grasp the concept that when on a large scale, we go, they go also.  What comes out of the final denouement of these grifters and their swindles is hard to say. I am not looking forward to it........

    Mon, 05/07/2012 - 16:57 | 2404711 frieswiththat
    frieswiththat's picture

    "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."

     

    The purpose of Operation Twist was not to drive the stock market as much as it was to keep the value of long term bonds elevated. IMHO it served a much more important purpose with regards to bank minimum net capital requirements and foreign bond sellers. Additionally, it served to facilitate new long term funding. The stock market was tertiary at best.

    Mon, 05/07/2012 - 17:14 | 2404751 DOGGONE
    DOGGONE's picture

    Look at our debt to GDP history, lately is already monstrous.
    http://homepage.mac.com/ttsmyf/debtGDP_whys.gif

    Mon, 05/07/2012 - 17:22 | 2404767 jumbo maverick
    jumbo maverick's picture

    could it be that they will impose a draft? could the young men soon be on the border of india and pakistan fighting to keep india's water under the guise of keeping the death star safe from terrorism?

     

    oh and don't forget the ladies. there was just an interview the other day featuring one of the generals of the usmc and he said that he thought it was great that they(death star military) is integrating women into combat roles. sad excuse for a marine in my opinion. i would think a true marine would have told the journalist that it is a bad policy getting women into combat areas. i would have thunk a real marine would have said somethhing along the lines of we hold women in pretty high esteem and it is up to us men to do the fighting and the dirty work. but thats just my opinion and remember now paris island is being run by a female general- more pussification of the american man if you wanna know the truth

    Mon, 05/07/2012 - 17:23 | 2404769 max2205
    max2205's picture

    So what are You gonna do about. STFU

    Mon, 05/07/2012 - 17:23 | 2404771 lynnybee
    lynnybee's picture

    excellent reading, just excellent.     i luv this article & have forwarded to friends & family  (not that they care, i'm the only one who seems concerned in my circle of friends.   altho, on the good side, one of my friends started buying silver , she understands, i've been talking to her for a year now, she finally did it & feels empowered.)

    Mon, 05/07/2012 - 20:26 | 2405203 Miffed Microbio...
    Miffed Microbiologist's picture

    Lynnybee

    I feel saddened that your circle of friends don't seem to ever get it but I thought you'd like to know that when I found this site about 1 1/2 years ago you were my inspiration to keep reading and learning. When you don't understand 90 percent of the discussion and feel totally out of your league it's easy to quit but your pretty parrot avatar kept me going. I mean, if regular people like us can make the effort to educate ourselves on what is really going on behind curtain then there is hope for many more. Yeah, I get depressed sometimes, especially with my work associates who have their heads up their rear ends. When ever I try to help them they just shove them up harder, very sad to watch. Keep the faith and know there are more people in your camp then you realize.

    Miffed :-)

    Mon, 05/07/2012 - 23:51 | 2405505 StychoKiller
    StychoKiller's picture

    Put some "splinters" in their minds.  Ask some really deep questions, like:  "What is Munny?", "Have you read 'The Creature From Jekyll Island?'", "Why do central banks hold onto Gold?"

    Get the Idea?  Sooner or later, the quest for an answer will take over -- they won't like the answers.

    Mon, 05/07/2012 - 17:24 | 2404773 sessinpo
    sessinpo's picture

    On the topic of fraud and theft, has anyone read about the fraud and theft of tax payer money by illegal immigrants filing taxes. Legal citizens have SS numbers which they file with, illegals are still required to file and may use a ITIN (Individual Tax Identification Number). Well, under the tax code, illegals are allowed to claim dependents just as we are. However, illegals are claiming high number of dependents that reside in places like Mexico and the IRS can't verify it so they have to pay out. On our claim forms, we provide information on our dependents such as the dependents SS number. Illegals don't have to since a dependent residing outside the US wouldn't have a SS or ITIN number. Tax claims with 10, 15, or 20 dependents are common place, and the American tax payer gets the bill. And it's a LEGAL loophole. Got to love our tax system. sarc

    Mon, 05/07/2012 - 17:32 | 2404792 Oldrepublic
    Mon, 05/07/2012 - 18:06 | 2404869 sessinpo
    sessinpo's picture

    dp

    Mon, 05/07/2012 - 18:06 | 2404872 sessinpo
    sessinpo's picture

    With at least one down arrow, we apparently have at least one illegal or supporter visiting ZH. LOL

    Mon, 05/07/2012 - 23:53 | 2405508 StychoKiller
    StychoKiller's picture

    Hmm, I read about US Felons (actually in prison!) filing fradulent tax returns, AND getting refunds!

    Mon, 05/07/2012 - 17:24 | 2404781 HarryM
    HarryM's picture

    Retail is drawing down their 401's and leaving the market enmasse, The Fed is issuing monopoly money to pick up the slack.

    So what portion of the market is monopoly money?

    What is your stock really worth?

    This mornings muscle-flex should be a clue.

    Mon, 05/07/2012 - 17:26 | 2404783 Madcow
    Madcow's picture

    Clearly, some kind of "default" has occurred.  We may have to wait to understand exactly how and when an who's at fault exactly - but to pretend that there has not been a default merely causes people - who know in their bones that there has been a default - to lose trust in the folks who are supposed to degtermine whether or not a "default" has occurred.  

    The other problem - and it is a major problem - is that - because people know in their bones a default has occurred - they are hunkering down and waiting for the next shoes to drop.  There can never be any kind of economic recovery if people have lost faith in the financial markets and are haording canned goods and ammunition in anticipation of what happens next.

    Why build a sand castle if you can see that a meteor is an hour away from destroying the beach and everyone on it?

     

    Mon, 05/07/2012 - 17:36 | 2404801 Caviar Emptor
    Caviar Emptor's picture

    The theft will continue and the cover up too for as long as those with productive businesses or jobs are willing to work to support the corrupt elite (through taxes) AND for as long as the ever-increasing underclass with no work, no productive enterprise or business is willing to sit on their collective butts collecting food vouchers. 

     

    Translated: The charade will only end when the US has full-fledged banana republic status where an aristocracy rule over 99.9% of the impoverished populace.

    Mon, 05/07/2012 - 18:12 | 2404888 spooz
    spooz's picture

    typical fascist rant.  This whole article has so much embedded propaganda its hard to dissect. Particularly noxious is the usual "unproductive underclass who sit on their butts collecting food vouchers" meme.  Perfect 1% drivel, try to convince those poor slobs who are barely getting by that its the unemployed slobs that are the problem, not the corporate interests that funnel all wealth to the 1%.  

    The biggest component of the TRANSFER PAYMENTS is the ballooning cost of health care.  But Big Pharma, Corporate health care and Insurance like status quo, so we just pretend its sustainable.  There are solutions to the health care problem, it starts with single payer and then works on solutions for delivering health care in the least expensive way.  I can write a lot about that, but just take my word for it, its not in the interest of the status quo elite to solve problems in a way that impairs any corporate profits.  So here we are.


    Mon, 05/07/2012 - 18:29 | 2404932 Caviar Emptor
    Caviar Emptor's picture

    I don't think you understood where I'm coming from: it is the goal of the elite to keep a giant underclass under their thumb with food vouchers, no jobs but plenty of drugs (a potential revenue source) and 3D TV. And they want to use printed fiat to make it all happen while they steal anything of value. 

    The fascist ain't me. I see the US becoming a banana republic (aka Fscist heaven) as we continue down the slippery slope

    Mon, 05/07/2012 - 18:54 | 2405007 TheGardener
    TheGardener's picture

    Don`t give banana republics or even an aristocracy a bad name...

    Mon, 05/07/2012 - 17:56 | 2404846 TideFighter
    TideFighter's picture

    Chase offered a friend of mine a modification of his investment property loan. Send in three checks of 1645.50 on June 1, July 1, and August 1, and he may keep that payment after the trial period. No mention of taxes, insurance, term (was it extended?), balance now, balance then, or any other known variable required to calculate the time value of money. So, what is the value of that MBS? Anycare care to guess? What a friggin mess.

    Mon, 05/07/2012 - 18:07 | 2404870 lolmao500
    lolmao500's picture

    It will continue till all the banksters and their lackeys end up in prison. People like Krugman, Bernanke, Summers, Geithner and Corzine ought to be hanged, not praised 24/7 on TV.

    Mon, 05/07/2012 - 18:14 | 2404896 lemonobrien
    lemonobrien's picture

    i say print, money has no meaning anyway. a trillion here, a trillion there; the only reason they don't is to keep their illusion of power going. They probably do everything under the table anyway.

    Mon, 05/07/2012 - 20:21 | 2405189 resaci
    resaci's picture

     

    HENRY> aphorist, “The aphorist does not argue or explain, he asserts; and implicit in his assertion is a conviction that he is wiser and more intelligent than his readers.”

    the morning is nie;

     the revolution is an old rerun on Starz. I saw a nazi gate valve in the belly of the rouge so what’s that prove?

    NOT athing

     

     

    Mon, 05/07/2012 - 20:31 | 2405211 JR
    JR's picture

    The status quo had America’s freedoms locked up in a closed container, like a piñata; people had taken whacks at it but it’d never been broken, until today. Jim Quinn, with a big stick, has delivered the blow that’s broken the piñata to restore our freedoms.

    At last, America’s demand for change is reaching that point where the center of gravity changes and it slides down the hill to change the system.

    Once the center of gravity changes, when more people in the middle class at last say, I get it!, a benchmark is reached and the solution becomes clear.

    It’s not voting; it pressure; pressure is people talking and protesting and pushing until the lemmings get interested and begin to take sides. Pressure is web sites such as Zero Hedge and its Tylers and its contributors and its bloggers.  A lot already has been accomplished -- the changes in the numbers of voters who consider themselves Independents; the constant complaint that there’s no difference in the two political parties; the recognition that Congress is just a buddy club – Dems and Pubs playing golf together while the people suffer — the ground is shifting.

    People are recognizing that the bankers and the criminals, the Bernankes et al., have not done anything that hasn’t been okayed by Congress, whether its passing legislation like Dodd-Frank, whether its Bernanke’s relentless manipulation of interest rates and inflation and the stock market that’s devastating America’s elderly and prudent to profit the bankers, whether its executive orders by the President that harm America and Americans; whether its lack of response to and support of corruption:  these can all be retracted - as Ron Paul said he would do if elected President: “I will withdraw the executive orders that have gone before by executive order.”

    The established order doesn’t have to be followed; the Constitution provides for withdrawing support from these elected officials. It’s not as far-fetched as many might think.

    +1,000,000 Jim. And thanks!

    Tue, 05/08/2012 - 00:35 | 2405556 krispkritter
    krispkritter's picture

    Ridiculous movie quote "...freedom is life's great lie..." Sad but true. Without fundamental change in the system as it stands, there will be no change in government nor the freedoms afforded in the Constitution. The free people of the Republic of the United States will be required to retake their Liberties as they were first granted, at the point of a device allowed and affirmed in the 2nd Amendment... ;)

    Tue, 05/08/2012 - 02:28 | 2405598 cranky-old-geezer
    cranky-old-geezer's picture

     

     

    How can taking money from one person or borrowing it from future generations ...

    Look folks, nothing is being borrowed from future generations, it's being taken from everyone right now.

    The government isn't borrowing wealth from future generations, they're borrowing it from us right now.  When Bernanke prints currency (or its digital equivalent) to buy treasury debt, he's not taking wealth from the future, he's taking wealth from us right now.

    And no, future generations won't be paying any of it back, it'll never be paid back, not even part of it.

    That $16 trillion government debt will be on the books right up to the day the dollar collapses and becomes worthless, and that $16 trillion debt will be meaningless.

    But the US dollar will be meaningless too, and any wealth you have in dollars and dollar-denominated assets will be meaningless along with it.

    Tue, 05/08/2012 - 06:54 | 2405786 overmedicatedun...
    overmedicatedundersexed's picture

    when criminals run things everything turns to shit..look around you, the mafia led the way with buying those in office and on the bench..soros and nwo just took it to a higher level and made it international..

    man made global warming is just another way to scalp the sheep ( as an example) of the international nwo scams

    what we should be posting here is how to best survive in this kleptocratic criminal scam called government.

    Wed, 05/09/2012 - 04:15 | 2409317 MeelionDollerBogus
    MeelionDollerBogus's picture

    Man-made global warming is proven science.

    You can sheer 2 billion sheep in one go for the elite by pretending it is not so - only the most powerful rich elite on the globe benefit from the 2 billion in lives lost by REFUSING to fix global warming we caused, thereby killing off the cheapest sources of food from the sea & land AND flooding which displaces & kills those living in poverty, leaving only the most powerful multi-billionaires to control everything.

    Global warming is real. To denounce it is to worship the Banksters.

    Thu, 05/10/2012 - 22:04 | 2415968 levenory
    levenory's picture

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