The Politicians Have To Stop Doing What They Have Done Since WWII Or "The Markets Will Do It For Them"

Tyler Durden's picture

In an interview on Bloomberg TV, RDM Financial's Ron Weiner summarizes the thing that keeps him up at night as in over thirty years he has never seen "The fate of the world economy rests so much on politicians." Pointing out the sad reality that since WWII the US has always spent more than it earns; he warns that if the politicians don't make it right, then "the markets will!" The heuristic bias to accept the spending status quo, as for most young-to-middle-aged people 'it has always been this way' - just like rising home prices (and the current hope-for-a-housing-recovery myth - which Bloomberg's Joe Brusuelas destroys in a single-chart of shadow inventory and discussion of the opacity of bank balance sheets), is so entrenched, thanks to the last sixty years or so of 'growth', that when asked 'if it is possible to cut spending', he replies "you have to!" and if it's not politically possible then once again "the market will take care of it". This brief three minute clip reminds us of the disbelief and head-in-the-sand mean-reverting bias so widespread in developed nations (citizens and politicians) and summarily dismisses it with a reminder that 'it just has to be reasonable men that we elect to do it" - and better that than let the market force their hand.


Weiner's epic (and realistic) rant is the first 2:30 followed by Joe Brusuelas' destruction of the housing market recovery myth:


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Yen Cross's picture

 I'm spent.  My SNAP card reaffirms that!

flacon's picture

But.... doesn't that mean the politicians and the Fed need to TELL THE PUBLIC THE TRUTH? I'm confused, I thought the last duty of a central banker is to tell the truth so that those "free market animal spirits" are kept tame.... /sarc

LowProfile's picture

I'm shocked this shit manages to make it onto television.

Didn't those assholes get the memo?!  Don't rock the fuckin' boat, there's still a few middle class muppets to loot!

James_Cole's picture

Do these "assholes" look like they actually want to rock the boat?

GetZeeGold's picture



Or we could stop the pork spending and double the cops salaries....but then we couldn't use them as propaganda tools any's totally out of the question.


GetZeeGold's picture



You paid how much for that again? On purpose?


Silver Bug's picture

The markets are completely saturated in debt. They can't continue on this way for much longer.

OpenThePodBayDoorHAL's picture

The interviewees show a quaint belief that there is something called "the market" that will correct this for us. But the Fed buys 60+% of all debt issued by the Treasury and stuffs it under the rug, as if it doesn't exist. That's not a "market".

Until somebody pulls back the curtain on the Great Oz, we continue down the Yellow Brick Road...

Monedas's picture

A steam engine has a governor .... it accounts for less than one per cent of the engine mass .... it keeps the engine from running away and scattering it's flywheel over the country side .... the governor is an aid, a safety valve and enabler of the engines main job .... converting thermal energy to mechanical energy !     A governor that consumed 50% of the output would be unthinkable !   Why do we tolerate it in our economy !  Naked corruption !   Government is at best a necessary, collective evil; which, like the fixed expenses in your private life or the mechanical inefficiencies in a machine, must be continuously kept at bay and reduced !          Monedas       1929          Comedy Jihad Efficiency Expert 

BigJim's picture

My God, there's actually a brain in them hills!

Steam engine/governor, economy/government... nice analogy.

Debtonation's picture

Is it safe for me to come out of my bomb shelter yet?

Implicit simplicit's picture

Sure! just bring an uzi, bullit proof vest, night goggles and a walkie talkie, but wear a tie.

Anusocracy's picture

Be sure to let the little boy that's tied up out too.

wisefool's picture

Romney picks herman cain for VP. Implements 9% 9% 9%. The WWII based US tax code is eliminated only 70 short years after the war.

a peacetime economy roars to life.

LowProfile's picture

You mean after the whole ponzi implodes, bankers are hung, 75% of all gov't employees are fired, pensions are paid in old devalued USD terms, manufacturing is restored?

And Mittens & Co. is forced to hang his corporatist buddies out to dry, or face a military coup?

Well, yeah sure then.

Otherwise, pass the bong.  We could all use some of what you got in that bowl.

The Navigator's picture

Military Coup eh?

Interesting it hasn't happened yet considering they all took the oath to uphold the constitution, to protect our country from enimies foreign and domestic, etc.

In one bloodless day, they could fire everyone in the 3 branches of government and the restart could begin.

But they (that control) all feed at the pig trough too.

MillionDollarBoner_'s picture


I want to float an idea to whomever will give it some consideration and invite comments. I will post this a number of times, where it seems appropriate and in an honest bid to gain some traction; so apologies in advance to any who see it more than once and is offended. If moderators object - please let me know and I'll immediately desist.

Firstly, crying like a bitch - which seems to be the main occupation of many posters - will not fix anything. It is essentially an appeal to authority and that's not going to change anything. It is playing the game the way TPTB wants you to, by their rules. So, instead of whining, how about some constructive discussion aimed at solutions?

It seems our particular (if not overall) problems have grown exponentially since 1971 when Nixon closed the gold window. Up until then, all fiat currencies were either directly or indirectly underwritten, to some extent, by gold. This is not to say that a gold-backed currency is the be-all and end-all, only that there is a "fit" between the two events; fiats going totally off the gold standard and a growing differential between the haves and have-nots. There are plenty of stats, articles and graphs which illustrate this and I trust most reading this will already be familiar.

So, cutting to the chase, how about this for a proposition? Forget gold standards. Forget outsourcing. Forget immigration. Forget race, colour, creed, status, background, political affiliation. Forget whatever bug-bear you personally are hunting. Focus on identifying a game-changer. Keep your eyes on the prize. Swallow the bile, no matter how bitter it tastes.


Remember: back then things were not nearly so bad. The little guy had a chance. If you worked hard and kept away from unsavoury characters, chances were you could "make it" and so could your kids. Not everything was on credit because you could save and afford to buy, cash on the barrelhead, once you had the money. Deposit accounts payed interest and capital formation was out of savings, not debt. Derivatives were a gleam in some moron's eye. Mortgages were helpful and property was affordable. People were generally less stressed and happier.

No doubt there have been some good laws passed since then but, for sure, there have been a lot of very bad ones too; and those bad laws enabled the bloodsuckers, cheats, liars, sociopaths and psychopaths. That's how we ended up where we are now. So, repeal all the laws, in toto, and the net result must be a plus.

Don't be partisan about this. Don't try to game it in your favour - that's what "they" expect you to do and that's why "they" always seem to win. Allow some sacred cows to be slaughtered. Take some hits "for the team". But keep your eyes on the prize.


What do you think? Too simplistic? could do with some tweaking/fleshing out? Let's hear it.

RECISION's picture

The politicians have to stop doing what they have done since WWII, or the market will do it for them.

The politician will keep doing in until they Can't do it any more. And then they will move onto the next easiest scam.  They will stop when they are stopped.  They do what they do because they can - and it works.

Stopping them will require something they can't control.

Amending the laws, or repealing them back to some arbitrary date changes nothing, or at least nothing that matters. All of that is still playing within their system - exactly like you said.  So I am left in a quandary as to why you imagine your suggestion would ever work.

You can't amend their system, because it is theirs (not yours).  You either set up a separate parallel system, or you destroy the supports of their current system.  Their laws can-not/must-not apply.  

They have already proven that they will use their position and control to change the rules whenever it suits anyway.  Heads they win, tails you lose.

At the moment, dictates from the centre spread out likes ripples into the wider community and have power and authority - that has to end.

When our current leaders speak it must in future be to an empty room, their voice on the phone must go nowhere. Then what they say, what they do is meaningless.

Our job now is to isolate them, to make them irrelevant.  There must be no chain of command, no reach and influence, no authority.

The debate needs to be about how we achieve that.  Not about changing laws, that is meaningless.

What does their power rest on, what are the mechanisms, connections and levers they control with? Those need to be subverted, distracted, disabled or destroyed. 

Let's hear your ideas about how to do that!


MillionDollarBoner_'s picture

I'm not suggesting amending the laws - I am suggesting a reset back to 1971. I chose that date as it corresponds to both the closing of the gold window and the beginning of the disproportionate growth in living standards. Maybe the two are linked, maybe not but there is a definite fit.

"what are the mechanisms, connections and levers they control with? Those need to be subverted, distracted, disabled or destroyed."

The bad law is highly interconnected and self-reinforcing. Attacking one pillar/support of TPTB at a time will not work and anyone who tries it will be marginalised as criminal, crazy, extremist, terrorist, obsessionist, whatever. In order to succeed, all the supports will have to be subverted, distracted, disabled or destroyed at the same time. I don't think this can be done without a violent revolution and at least a period of anarchy. The chances of a better world emerging from that within an acceptable timeframe are severely limited - just look at Libya for a conrete and vivid example. Also look at Cambodia under Pol Pot for an example of a complete reset. When the dust settles, the chances are that the succeeding regime will simply be a different shade of the same shit we have now.

A reset back to the Rule of Law as at 1971, if enacted within the next 8 years, will be the modern equivalent of a jubilee and co-incidentally be a 50 year event. It would not require anything like the upheaval of a full and violent revolution. It could not be hijacked by special interest groups as it would be a broadly neutral event due to its wide scope.

Hopefully it could eliminate the majority of our current problems and narrow the balance of remaining issues to something manageable. It will not solve all ills but will provide a much firmer foundation to rebuild our societies for the better, with the knowledge and hindsight to ensure we don't make too many of the same mistakes.

Crucially it is easily understandable for the majority of our populations who either can't or wont understand what is being done to them. As a result, it has a much higher chance of succeeding in the face of the total, focussed and violent opposition of TPTB.


Dr. Sandi's picture

I love the idea.

Make it so.

Shouldn't be too much opposition.


BTW, I have to ask: Does your MillionDollarBoner keep YOU up all night.

Or does it keep itself up all night.

I know it's keeping ME up all night just typing dumb things about it.

RECISION's picture

In a way i do kind of like where you are coming from with this idea.

But you can't wind the clock back - because so many things have changed as a consequence of what we are now, the whole world is different.

And harking back to some mythical golden age has been dreamed and attempted for millennia.  It has always been a miserable failure too.

Sorry, it is just unworkable.

And... of course it could, and would, be hijacked by special interest groups.

(ps. good one Sandi ;-)

Monedas's picture

A "Jewbilee" ?  You got my vote !          Monedas       1929         Comedy Jihad Unofficial Spokesman For The Jewish Ether 

MillionDollarBoner_'s picture

Hi Recision,

I didn't say it was workable. It was only intended as a straw man to stimulate debate and ideas, as opposed to the bitching and "hang/burn/jail them all" rhetoric we usually get on ZH. There does seem to be an inordinate amount of focus on the symptoms (banksters and complicit politicos) but very little on the disease (a fundamental breakdown in social structures, mores and the Rule of Law) .

Sadly I'm not hearing anything which adds to the debate or carries us any further forward.

Ho hum! 

Abitdodgie's picture

If we all took back our strawman the system would collapse anyway.

RECISION's picture

Sadly I'm not hearing anything which adds to the debate or carries us any further forward.

I sympathize with your feelings on that.

We know where we are -  and more or less where we want to get to.  But how do we get from here to there?

You are right, we need to get that debate and discussion and brainstorming much more advanced than currently.  Bitching about how unfair it is and how some-one should do something is historically redundant at this point.

There is yet to be any sort of coalescing around any credible alternatives or solutions (and perhaps even any credible hypotheses - your idea not withstanding ;-).  I have put some work into that myself (re my bio).  But we are still well short of where we need to be.  So you are right at the very least about the need to dramatically evolve our argument.

I am afraid we are still at a stage where the opposition to the status-quo is fragmented over 101 different theories (including ossified debates over historical political slogans).

Until everyone swings around to my way of thinking we aren't going to get any traction...  Haha  ;-)

Although, on that note, I currently don't believe we can achieve much without effectively first burning our current systems and institutions to the ground.  Much like a snowflake growing its structure from a seed particle, if we leave parts of the old system in place, then what grows from that will be just new versions of our old problems.   Your views may differ.

I will just add finally: what will eventually cause a change will be having sufficient Mass and Momentum.  There needs to be a big enough constituency all pulling in the same direction.

Our mission (should we choose to accept it) is to build that constituency (very difficult) and decide on a direction (even more difficult).  

Congratulations though on wanting to try, making an effort, and offering up some options and creativity.

I commend you hugely for that.  :-)

Max Cynical's picture

I think I would rather see a sunset clause placed on each and every law...say three years. And I mean everything! If a particular law is beneficial it will have to be passed again every three years and those that are not supported will simply go away.

Max Cynical's picture

A final seems to me that a mandatory sunset clause on every law would bankrupt special interests...

Turin Turambar's picture

I think I recall reading that Thomas Jefferson thought that ALL laws should expire after 20 years because people should be governed by laws that they have agreed to, not something necessarily passed by their great grandparents 80 years ago.

I'm not sure if Jefferson is an accurate source, but the idea is very appealing to me.

Turin Turambar's picture

Nixon took the US off the so-called gold standard because of the gold outflows.  The US would've gone bankrupt because it didn't have enough gold to pay for all of the notes being redeemed.  The Bretton Woods gold standard was just a fiat based currency masquerading as a gold standard.

If you'd like to read something short and very good about a gold standard then read:

The Case for a 100 Percent Gold Dollar

by Murray N. Rothbard


wisefool's picture

+100000000 It is so hard to get people to understand this. All these USA gold bugs are retarded if they can't understand this simple fact. If the gold window stayed open 6 months after that date, there would not be a single ounce of gold within the borders of the USA. They would have to travel to France, the U.K., China, and arabia to have ever got a peek at shiny in their lives. Every wedding ring made in the last 40 years would have been made of stainless steel.

chubbar's picture

Why is it that folks using your retort don't understand the OTHER OPTION that was presented to Nixon at the time? Revalue the fucking gold instead of having it fixed at $42/ounce? Is that so fucking hard to understand? That's all they have to do right now. Just revalue the gold high enough so that the reserves held can be used to pay off debt! See what happens when that occurs? The debt goes away and if they price it high enough, money is left over to restructure the system. Yeah, other issues are still around but how would it help if the total U.S. debt was wiped out in one fell swoop?

wisefool's picture

It might have wiped out the debt at the time, however, there was a good chance TPTB who took the gold in exchange for the foriegn debt woud have restored terrible fuedalism/facism and the Euro savages would have eventually started hurling nukes around.

The post WWII era was basically the USA pulling the wagon, cooking the meals, breaking up the fights and at the same time proffering to the "sophisticated" types around the world who "held" our debt that we did it 'cause we did not really have anything else to do with our copious resources, that had not been bombed to rubble, in the self imposed wars the old world insisted upon. read both treaties of versallies.

The USD is the reserve currency because we have an IRS. if gold becomes the currency again in any measure, or especially the measure you offered, the dead will literally rise when people dig up corpses for wedding rings and teef.

NidStyles's picture

How would Europe go about hurling Nukes they didn't have then? France didn't have nukes until the 80's. 

bruiserND's picture

Why stop at 1971? Lets go all the way back to 1787

Why not go full bore for decentralization as provided in the 10th amendment ?? Dual sovreignty means that the central government was created by the states and exists at the pleasure of the people and the states. Clearly this central government and it's central bank are dismal failures by any measure.

A super majority of state governors can dump the DC globalists like a hot steaming turd and have state banks. 

This isn't experimental rocket science this is the Original Intent as explained by Dr Edwin Vieria in "The Purse and the Sword".



jeffgroove102's picture

Great post! Things need to change at the horizontal level, ie how people act in relation to one another. Unfortunately, it would seem that alot of old people with bad ideas need to die off first. Change is extremely difficult, and unfortunately, contradiction is a central theme of the human condition. I work white collar jobs for big corps, and it is very disturbing to me how seemingly smart peeps will embrace the current paradigm.

Anusocracy's picture

Except for autists, people always join mobs of like-minded people.


The problem is that the vast majority of the people think that the United States (especially the govt) is a necessary condition of their existence-that if it fails, they will fail.


More than likely, the opposite is true. Fifty Hong Kongs, Switzerlands, Singapores and Chiles would be far better for the people.





RockyRacoon's picture

I have proposed a similar idea in the past.  My twist was to stop passing ANY new laws, and start repealing laws in reverse order on the same time frame that they were passed.  It's a lot less disruptive that way and provides a glide path for accommodation.  That includes both State and Federal laws.   Of course, dealing with the States could get sticky, and I understand that.  Imagine the change when Glass-Steagal is reinstated... let alone numerous others.

All Risk No Reward's picture

End debt based money and control the quantity of sovereign money or you've done little in the big picture.

Stop the looting and start the prosecuting...  starting with treason for everyone involved with the black letter law criminal and lying Federal Reserve System Trojan Horse...

That means that at least one one 1913 law has to get repealed, too.


Lost Wages's picture

The fate of the world economy rests too much on politicians, but thankfully all the politicians are being replaced by bankers, so it will all work out OK.

zero19451945's picture

Getting the reserve currency was the worst thing that ever happened to America.

Any country would have been stopped long ago by the markets if it were deficit spending at the levels we are now.

The only true recovery happens when we lose reserve currency status and have to live within our means again. 

Yen Cross's picture

 You need to hop on the " HOPIUM" Train!   Petrol by the liter!

AurorusBorealus's picture

Reserve currency has not caused only too much government spending, it has produced inefficiencies throughout the American economy.  Suburbia is built on cheap gasoline, the price of which in dollars, is distorted by the reserve currency.  This is a massive structural inefficiency.  There is little functioning public transportation in the United States, adding to the inefficiences.  American automobiles are large, inefficient and consume too much gasoline.  Most Americans have a pickup truck (with no practical use) or an S.U.V..  This has allowed American automobile manufacturers to overspend on production for these vehicles.  American houses are too large, which results in too much consumption of home heating fuel, electricity... all paid for with the global reserve currency.  Property is still overvalued.  School districts and local governments overspend based upon misperceptions about the true value of the property tax base that supports these projects.  Too much was spent on construction.  This bubble is burst, but the real consequences of this misallocation of resources have yet to be fully realized.  One could go on for quite some time about how the reserve currency has masked economic weakness and allowed inefficiencies to build up.  And certainly having the reserve currency has led to outsourcing and the hollowing out of the ability of Americans to make and do things for themselves.

Dr. Sandi's picture

All of this is too true to be good. And yet, somehow, our collective face hasn't yet hit the pavement.

I guess they built this place to last a long time. And now, it's been almost a long time.

I'm learning to grow food without spendy chemicals, and I can cook the stuff pretty well. But I don't know where the next cow is coming from, even if they'd let me grow it here in town, which they won't.

So I buy it at this little local meat market. They get some of it from little local meat producers. But most of it comes from a big multinational butcher in Omaha.

It's not easy to do it yourself when even the places we live are created to eliminate our independence.

And I'm not quite tough enough to move outta town if I don't hafta. But I'll do it in a heartbeat to save the clan.

And our useless silver is coming with us. In abundance. I know people not far from here who are so damned stupid that they'll actually accept my useless silver for half of a dead cow right now. Poor fools, don't even know it's just a metal, and not real folding cash.

Freewheelin Franklin's picture

The biggest problem with "reserve currency" is, as Robert Triffin showed, that it results in large trade deficits. However, the trade-off is, the country which issues the reserve currency has great influence over the rest of the world. 

Anusocracy's picture

Spain plundered the New World of gold and silver and undermined its own economy.


Such is the effect of having the reserve currency status.

NidStyles's picture

None of that is based on reality, and sound more like your nationalism and hatred of America seeping through. 

OpenThePodBayDoorHAL's picture

"Pointing out the sad reality that since WWII the US has always spent more than it earns..."

We used to have a pretty nifty self-balancing system before 1971 that made sure these imbalances couldn't persist. If a country tried to live beyond its means, they put their gold on a boat and shipped it to a country that was managing its affairs sensibly.

q99x2's picture

Politicians aren't going to balance shit. They are going to steal as much as possible and then attack us with as much military force their stolen wealth can buy.

What is so hard for those idiots to see?

Time to start over again after WWIII.

MillionDollarBoner_'s picture

To be a successful politician, you only need to be able to make two simple calculations:

1) just how little can I promise and still get elected? 

2) once elected, how much of that can I renege on and still get re-elected? 

Simples ;o)