The coming gridlock after the 2010 elections will not solve our problems. This ain’t 1994. The linear thinkers have no clue. Farrell’s article fits perfectly with the Fourth Turning scenario that we have entered. Revolution and war are on the way. The linearists are trying to figure out what the Dow will be tomorrow or next week. They will be completely blindsided, as usual. I can picture the clueless look on Maria Bartiromo’s face when the shit hits the fan. She’ll lash out angrily against the masses. They will turn her Escalade over and burn it.

America on the brink of a Second Revolution

Commentary: 2010 elections guarantee gridlock, anti-capitalist class war

By Paul B. Farrell, MarketWatch

ARROYO GRANDE, Calif. (MarketWatch) — “What’s distinctive about the Tea Party is its anarchist streak — its antagonism toward any authority, its belligerent self-expression, and its lack of any coherent program or alternative to the policies it condemns,” warns Jacob Weisberg in Newsweek. But why not three cheers for the Tea Party Express?

Admit it, something historic is brewing. And yes, it’s good for America, even the anarchy. Revolution is renewal. Tea-baggers want to take on both parties, “restore honor” and “take back the country.” Bring it on, the feeling’s mutual.

OK, maybe most Americans just silently mimic the words, “we’re mad as hell, won’t take it any more.” But watch out: After November the campaign’s shrill rhetoric explodes into action.

Tea-baggers are kicking the revolution into high gear. Debt is sinking America. Both parties are to blame. So vote out incumbents. Spare no one. We need new leadership, another Reagan or Truman. Congress better get the message: Cut that budget, or they’ll dump the rest of you in the coming Great Purge of 2012.

Unfortunately they’re tone deaf. Congress cannot see past the election. All that changes in November.

So thanks Tea Party, Vegas odds must favor a Second American Revolution. Actually, the revolution is already roaring, hot, it’s about time. The GOP and the Dems had more than a decade. But America’s worse off. We need a real revolution to restore sanity … or we can kiss democracy and capitalism good-bye, permanently.

Warning: Another revolution will cost investors 20% more losses

Yes, big warning, the Second American Revolution will extract painful austerity, not the “happy days are here again” future touted by tea-baggers. For years it’ll be impossible for most of America’s 95 million investors to develop a successful investment or logical retirement strategy.

Why? Political chaos will translate into extreme volatility and a highly unpredictable stock market. Result: Wall Street will lose another 20% of the value of your retirement portfolio in the next decade, just as Wall Street did the last decade. So if you think you’re “mad as hell” now, “you ain’t seen nuthin’ yet!”

Here’s the timeline:

Stage 1: The Dems just put the nail in their coffin by confirming they are wimps, refusing to force the GOP to filibuster the Bush tax cuts for America’s richest.

Stage 2: The GOP takes over the House, expanding its war to destroy Obama with its new policy of “complete gridlock,” even “shutting down government.”

Stage 3: Obama goes lame-duck.

Stage 4: The GOP wins back the White House and Senate in 2012. Health care returns to insurers. Free market financial deregulation returns.

Stage 5: Under the new president, Wall Street’s insatiable greed triggers the catastrophic third meltdown of the 21st century Shiller predicted, with defaults on dollar-denominated debt.

Stage 6: The Second American Revolution explodes into a brutal full-scale class war rebelling against the out-of-touch, out-of-control greedy conspiracy-of-the-rich now running America.

Stage 7: Domestic class warfare is compounded by Pentagon’s prediction that by 2020 “an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge” worldwide and “warfare is defining human life.”

What’s behind our 2010-2020 countdown? It became obvious after reading the brilliant but bleak “Decadence of Election 2010” report by Prof. Peter Morici, former chief economist at the International Trade Commission. He sees no hope from America’s political parties, just a dark scenario ahead.

Here are the 10 points we see in his message:

1. Expect nothing positive from Dems, the GOP or Tea Party

Yes, we’re all “justifiably ticked off.” But “Democrats, Republicans, and yes the Tea Party offer little that is encouraging.” Earlier Morici warned: “Democratic capitalism is in eclipse. … Politicians have deceived voters,” and are “suffering from delusions of grandeur, self deception and good old-fashioned abuse.”

2. Democracy has become too-big-to-govern … by anyone

“The current economic quagmire is a bipartisan creation.” Bush failures led to a “Great Recession … reckless Wall Street pay and fraud, a breakdown in sound lending standards by Fannie Mae, Freddie Mac … Countrywide, and a huge trade deficit with China and on oil” leaving “Beijing and Middle East royals with trillions of U.S. dollars that they invested foolishly” in bonds “financing the housing and commercial real estate bubbles.”

3. Clinton, Bush, Obama policies all feeding revolutionary flames

Even before Bush, “all was set in motion by bank deregulation engineered by Clinton … Secretaries Robert Rubin and Lawrence Summers … Clinton’s deal to admit China into the World Trade Organization” handed “China free access to U.S. markets” while blocking exports. Earlier Dems blocked “domestic oil and gas development” and froze “auto mileage standards.” Obama “finally imposed higher mileage requirements,” but after pushing offshore drilling, he “punished the entire petroleum industry” for the BP disaster.

4. Bush’s biggest mistake: Goldman CEO Hank Paulson

Morici admits: If Bush is “culpable for anything, it was to not see the gathering storm on Wall Street.” Worse, his Treasury picks were disasters: [John] Snow was clueless, Paulson devious. He conned a clueless Congress into bailout trillions, “believing banks could borrow at 3% and lend at 5 and pay MBAs three years out of school five-million-dollar bonuses to create mortgage backed securities.” Greed drove the Bush Treasury.

5. All partisan political leaders are destined to sabotage America

One thing is clear to Morici: Not only were America’s leaders a “bunch of second-rate incompetents” on both the Clinton and Bush teams, “Obama’s ratcheting up government spending and taxes won’t fix what’s broke, and neither will the GOP prescription of tax cuts and deregulation.” Get it? Democracy is in a classic double-bind, no-win scenario.

6. America’s democratic capitalism trapped in systemic failure

Morici simply dismisses “Obama’s two signature initiatives — health-care reform and financial services reregulation.” They “simply don’t work.” Why? Politicians “failed to address the root problem, Americans pay 50% more for doctors, hospitals and drugs, than subscribers to national health plans in Germany, France and other decadent socialist European countries.” Yet, insurers hate reform, will self-destruct America first.

7. Wall Street’s insatiable greed is a virus that never sleeps

Wall Street banks are “back to their old tricks,” warns Morici, “hustling municipal governments into the kind of quick-fix budget schemes, like selling parking meters and airport fees.” Why? Wall Street’s “hustling shoddy corporate bonds that lack adequate collateral and may never be repaid” to justify their absurd mega-bonuses. And they’ll keep doing it till the revolution creates a new non-capitalist banking system.

8. New political leaders offer no hope — Wall Street rules America

GOP’s next leaders will fail: “Cutting taxes and mindless deregulation are not the answer.” We need the revenue. They have no real plan to trim “$1 trillion from federal spending … few believe deregulation will fix health care or Wall Street.” The GOP has no “effective government solutions to health care, Wall Street, fixing trade with China, and dependence on foreign oil.” And the Tea Party “only offers a purer form of failed Republicanism. Tax and spend less, and turn the country over to the robber barons.”

9. Praying for a messiah, we’re sleepwalking till the revolution

Morici’s solution: America “needs a prophet, another Harry Truman or Ronald Reagan.” But we’ll never get one, until a catastrophe hits. Wall Street’s so greedy, so corrupt, so untouchable, so much in control, they will bankroll and control all future “prophets.”

10. The Second American Revolution coming

Yes, extreme austerity: “Americans must accept fewer government-paid benefits — for the rich, the poor and those in between — and must acknowledge the market works best most of the time, but it is not working in health care, banking, China, and oil.” Huh? Sounds like classic economist’s double-speak: “The market works most of the time” … except the market doesn’t work at all in the four biggest economic sectors? Fuzzy thinking?

Morici warns, we need “new approaches to regulating, yes regulating, what the medical industry charges, bankers pay themselves, what Americans tolerate and buy” and “guiding big oil and car companies to sustainable solutions.”

Holy cow, he suddenly sounds more like a liberal politician than conservative economist. Yes, he’s reflecting the total chaos coming on the short road to the Second American Revolution.

In the end, however, you have to admit the good professor does make a lot of sense: “Sounds radical but running the world has never been a choice between statism and anarchy,” says Morici.

Choice? Unfortunately, he offers a false choice: Running America effectively means accepting “that the private sector is not the enemy and government is not evil, but neither can serve the other, and us, if value is not seen in each.”

Laudable, but impossible because once the GOP Tea Party of No-No is back in power, compromising is not on their agenda, “gridlock” is. So anarchy is the only choice — they will never, never work with Democrats … until forced by the Second America Revolution when the middle class finally rises up and overthrows the greedy wealth conspiracy of Wall Street, Washington, CEOs and the Forbes 400.

Till then, anarchy rules as the conspiracy keeps looting Treasury, stealing from taxpayers, conning us all.


  1. Another elitist piss stream media fuckwad talking down to us again.

    Paul Farrell can go fuck himself for using the slur tea bagger.

    Then again, being from Kalifornia, he’s obviously not Taxed Enough Already.

    I thought this fossil had retired already, geeze?

  2. Linearists- great term, Jim. It describes quite elegantly the lack of sophistication in the great majority of even the educated elites’ understanding. These “higher minds” couldn’t make it through the preface of Ludwig von Mises’ “Human Events”. Which you need to add to the reading list, by the way.

  3. An economic collapse will occur in this country in the next few years. And it will devastate the social order. But I don’t see a revolution or a lot of violence coming with the collapse. That’s not to say there won’t be a few packs of rogue niggers looting and murdering in some areas of the country. That is to be expected. But generally speaking, I don’t see the need for armed fortresses and caches of guns and ammo for protection from people revolting.

  4. I wonder what the eventual economic collapse will look like in states that are top-heavy with public workers, like California. Private sector jobs are leaving the state with the companies that decide to relocate elsewhere. This has been happening for awhile. California could be the next “bubble” to burst. High unemployment, powerful unions, 1/3 of the entire nation’s illegal immigrant population and a poorly run government=kablooey! The Golden State will become a Golden Shower by 2012.

  5. I’ve decided that Leftists must have some kind of brain damage that makes them pathologically unable to understand the Tea Party. It’s the only explanation. “Praying for a messiah” is precisely what the Tea Party is NOT doing. Tea Partiers understand that only fools look for a political leader to solve all of society’s ills. That’s why the Tea Party itself is essentially leaderless.

    Farrell seems to think we live in a bi-polar world where our only choice is between a levitation, vampire squid government and robber baron anarchy. This is dangerously simplistic.

    A 20% drop in the real value of the stock market is probably already in the cards, regardless of the outcome of the elections. He studiously avoids the issue of how much damage will be done to investments if the leftists remain in charge. A 100% drop in value is not out of the question under the current leftist regime, which makes 20% not look so bad.

    How in sam hell did he conclude that big government will stop the robber barons? Has he been in a rest home stroking his limp biscuit in front of the nurses for the last 5 years? Our big government is in bed with the robber barons. Big government will INEVITABLY be in bed with big business, it’s the nature of both beasts. I’m convinced that Farrell WANTS government and business in bed together because he thinks it will be good for his portfolio. Well fuck him.

    I initially thought he stoned when writing his “Stage 4” but the Republicans Pledge to [butt fuck] America seems to support this conclusion.

    Farrell believes that this mess is a failure of “democratic capitalism” but both he and Morici studiously ignore that America is supposed to be a constitutional republic. Pure democracy inevitably fails. That’s why constitutionally limited government was created in the first place.

    He fears gridlock, but gridlock couldn’t possibly be worse than the leftist road to hell.

  6. A revolution will only happen when states applied for secession, got rejected, and do it anyway. I see only a small chance of that happening. But if a couple of states default on state bonds, people refuses tax increase, and federal refuses to help, than I put 50% on revolution.

  7. Another Reagan he wants? After 8 years of Reagan the national debt had tripled, the stock market had crashed and the deregulation had caused the Savings and Loan fiasco. Regan’s most valuable attribute was his acting skills and his predisposition to forget. Reagan? Iran/Contra. Prior to the election in 1980, Reagan people had made a deal with the Ayatollahs. Don’t release the hostages until after the election and we will sell you the needed parts for your military equipment bought under the Shah. The hostage crisis was probably the determing factor in Carter’s loss and Reagan’s win. Reagan was a traitor. His actions were treasonous.

  8. Bryan

    I’m not a big fan of Ronald Reagan’s presidency, but aren’t you a little over the top with “Reagan? Iran/Contra. Prior to the election in 1980, Reagan people had made a deal with the Ayatollahs. Don’t release the hostages until after the election and we will sell you the needed parts for your military equipment bought under the Shah. The hostage crisis was probably the determing factor in Carter’s loss and Reagan’s win. Reagan was a traitor. His actions were treasonous.”

    Iran/Contra occured years AFTER 1980, during Reagan’s second term as president. And I believe the hard evidence shows that two of Reagan’s national security advisors, Admiral John Poindexter and Col. Oliver North, set up this incredible scheme through a retired Air Force general, Dick Secord. Reagan was not briefed in on the whole deal until it was too late.

    Anyway, without your posting several billion links which prove your statements, would you please just SUMMARIZE AN ANSWER TO A SIMPLE QUESTION to your assertion, “Prior to the election in 1980, Reagan people had made a deal with the Ayatollahs.”

    Simple question, “Who made the deal?”

  9. What if the Republicans win, as expected, in the House and gain a thin majority, as not expected, in the Senate? Then, in collusion with Defense Secretary Bob Gates, they uncharacteristically propose a massive defense cut bill. In the realm of 100s of billions a year. And it passes!!!

    Maybe an Alice in Wonderland dream, but it’s not entirely impossible. Could that be a game changer on this doom-and-gloom site or another “it’s too late” factor?

    Just asking.

    1. SSS

      I thought that a liberal President with solid majorities in both houses would surely reduce defense spending. They increased spending by $100 billion over what Bush was spending. There are no Republicans running on a platform of cutting Defense.

      If Congress cut Federal spending by $250 billion and committed to cutting another $500 billion over the next 10 years, I’d say we had a chance.

      I’d put the odds of this happening at -30%.

  10. Bryan——-“The hostage crisis was probably the determining factor in Carter’s loss and Reagan’s win.” ROFLMAO—–Reagan carried 44 states. Carter’s administration was pathetically inept. He was exposed to the world as a fool. Carter has traveled the world since he was landslided out of office, motherfucking this country globally everywhere he goes. He is correctly widely acknowledged by both political parties in this country as a fucking embarrassment and a national disgrace.

  11. Admin

    I don’t disagee with your assessment. It would be wonderful to see a post-election surprise, though.

    I’ve already proposed on this site MASSIVE detailed defense spending cuts that I think the public would buy. Easily. I could fine tune that fucker (my proposals) to add to my argument that we could STILL kick anyone’s ass three times around the planet.

    Catching my drift? No one seems willing to try to sell this simple message.

    1. I would gladly support any politician that will level with the American people and tell them the truth. It sure would be great if we somehow experienced a Positive Black Swan event like you propose.

  12. SSS, I don’t recall the specifics of your suggested cuts, but I can’t help but think your notion is quite correct that we could endure massive cutbacks just fine. I mean, I don’t keep up with the details, but what do we have, hundreds of bases overseas? I think bringing all troops home now is beyond insane, but I also believe it’s damn near insane to have so much equipment and so many people stationed across the entire fucking world. It’s fucking overkill. My guess is we could keep a couple of dozen or less bases strategically located across the globe, a presence in the middle east, and that would be enough. We could probably get by with 20% to 25% of our current military funding, and still not have to take any shit off of anyone. I also believe, although it will never happen, that we should put the resources in place and ship every single illegal immigrant, who was not born in this country, the fuck back home. And if an illegal immigrant has a child here, give the immigrant the option to take their kid(s) home with them, or U.S. keeps the kid and picks up the tab until the kid is 18. I know that would put a lot of kids on welfare, but they are already on welfare, and it would set a precedent and stop the influx.

  13. Smokey (and Admin)

    Smokey said, “My guess is we could keep a couple of dozen or less bases strategically located across the globe, a presence in the middle east, and that would be enough. We could probably get by with 20% to 25% of our current military funding, and still not have to take any shit off of anyone.”

    While I think your percentages of cuts are optomistic, that’s EXACTLY what I said, in essence, on the old TBP site. Out of Great Britain, out of Germany, out of South Korea, et cetera. I lined up some rational aircraft carrier task force deployments to the east and west coasts of the US, Spain, Italy, Diego Garcia, and Guam. This cuts our aircraft carrier fleet in half!!!

    Quinn still fires off the neocon label at me when I tick him off for whatever. Sigh. But Lord, this is a radical, but sensible, proposal. It can be sold to the public. No one will try. And I haven’t even gotten to my alma mater, the US Air Force. Shit, I’d be branded a traitor …….. and a neocon.

  14. SSS—-We are definitely on the same page. ESPECIALLY where you say “No one will try.” Seems to me that all the potential presidential hopefuls are always for either eliminating everything militarily or continuing the status quo. I bet if there was a candidate from the republicans, democrats, or libertarian party who said “We are going to substantially cut back spending, especially entitlements and military, while keeping a limited military presence abroad to help protect our allies and our strategic interests” , that person could get a LOT of support from the public. The problem is, you stick a Ron Paul in office and he will insanely gut the military and abandon our allies immediately. You stick a Republican in office, and you will get a grand total of ZERO in reductions in military spending. Leave Obama in office and he continues his shit. Put any other Democrat in and you get massive entitlement spending, cap and trade, healthcare insanity etc.

  15. Smokey

    Quinn knows Ron Paul’s political positions much better than I, but I’m not so sure he wouldn’t back off some of his radical proposals just to get the ball rolling. Doesn’t matter though. He will never get to the White House.

    I’m looking for someone who can get the ball rolling on massive defense cuts and do it in a sensible (key word) manner. It can be done. And we’ll all be just as safe.

    And it doesn’t have to be someone like Eisenhower, who was virtually the ONLY person in the US who could have cut the defense budget while the Cold War was ramping up. But it does need to be someone who has the support of lots of senior officers (retired) from the armed forces. It can be done. I know it can.


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