“Facts are to the mind what food is to the body.” – Edmund Burke

No wonder one third of Americans are obese. The crap we are shoveling into our bodies is on par with the misinformation, propaganda and lies that are being programmed into our minds by government bureaucrats, corrupt politicians, corporate media gurus, and central banker puppets. Chief Clinton propaganda mouthpiece, James Carville, famously remarked during the 1992 presidential campaign that, “It’s the economy, stupid”. Clinton was able to successfully convince the American voters that George Bush’s handling of the economy caused the 1991 recession. In retrospect, it was revealed the economy had been recovering for months prior to the election. No one could ever accuse the American people of being perceptive, realistic or critical thinking when it comes to economics, math, history or distinguishing between truth or lies. Our government controlled public school system has successfully dumbed down the populace to a level where they enjoy their slavery and prefer conscious ignorance to critical thought.

The next six months leading up to the November elections will surely provide a shining example of the degraded society we’ve become. Both parties and their propaganda machines, SuperPacs, and corporate media sponsors will treat the igadget distracted masses to hundreds of hours of lies, spin, and vitriol, designed to divert the public from the fact that both parties act on behalf of the same masters and have no intention of changing course of the U.S. Titanic to avert the iceberg dead ahead. We will be treated to storylines about race, gun control, the war on women, energy independence, global warming, the war on terror, the imminent threat of Iran and North Korea, Obamacare, Romneycare, and of course the economy, stupid.

There are 240 million voting age Americans. About 130 million will likely vote in the 2012 election based upon recent voter participation results. This means that 110 million Americans don’t give a crap about who runs this country or they’ve come to their senses and realize our votes don’t matter. Between 1840 and 1900 voter participation ranged between 70% and 82% as Americans took their civic duty seriously and believed their vote counted. Since 1913, when the politicians relinquished control of our currency to a private bank controlled by a small group of powerful men, voter participation for President has ranged between 49% and 62%. It hasn’t surpassed 57% since 1968. Now that corporations are people and our candidates are selected by a few rich men, the transformation from a republic to a corporate fascist state is almost complete. During the coming interminable political campaign you will hear about jobs until your ears bleed. I can guarantee that 98% of the rhetoric will be false. Neither party wants the American people to understand the truth about what happened to our economy and jobs over the last 100 years. It has been a bipartisan screw job and ignoring the facts doesn’t change them.

The first fact that can’t be ignored is how many Americans are actually unemployed today. Here is some truth you won’t get from a politician or media talking head:

  • There are 243 million working age Americans.
  • There are 142 million employed Americans.
  • Only 101 million of the employed Americans are working more than 35 hours per week. This means that only 41.6% of all working age Americans have a full-time job.
  • According to the government drones at the BLS, 88 million Americans have “chosen” to not be in the labor force – the highest level in U.S. history.
  • The percentage of Americans in the workforce at 63.8% is the lowest since 1980 and down from a peak of 67.1% in 2000. The difference between these two percentages is 8 million Americans.
  • The BLS reports there are only 12.7 million unemployed Americans in the country, down from 15.3 million in 2009.
  • The BLS reports the unemployment rate has dropped from 10% in late 2009 to 8.3% today. Over this time frame the working age population grew by 5.7 million, while the number of employed Americans grew by 3.6 million. Only a government drone could interpret this data and report a dramatic decline in the unemployment rate.


Any critical thinking human being would examine the data being reported as fact by our government and regurgitated without question by the corporate mainstream media and conclude it is false, misleading and manipulated. The economy was booming in 2000 and 67.1% of the working age population were in the labor force. Today the economy is in much worse shape. More people NEED to work in order to just make ends meet, but according to the government, 8 million Americans have chosen to not work. Only an Ivy League economist or CNBC bimbo pundit would believe such a blatant distortion of reality. A comparison to prior decades provides all the evidence you need:

  • In 1980 the working age population was 168 million and the labor force totaled 107 million.
  • By 1990 the working age population grew by 21 million and the labor force grew by 19 million.
  • By 2000 the working age population grew by another 23 million and the labor force advanced by 17 million.
  • Since 2000 the working age population has grown by 30 million, but shockingly the labor force has supposedly grown by only 12 million.


This data is so twisted that there is absolutely no doubt the Federal Government is purposely manipulating the numbers to make the economic situation appear better than the reality. During the Great Depression propaganda and spin had not been perfected. There weren’t multiple definitions of unemployment designed to confuse and mislead the public. The peak level of unemployment in the 1930s was 25%. The current reported level is 8.3%. On a comparable basis to the 1930s, including short-term discouraged workers, those forced to work part-time, and the long-term discouraged workers which were defined out of existence in 1994 by the BLS, the real unemployment rate is 22% today. It feels like a depression for millions of Americans because it is a depression.


The rhetoric from the Obama administration about a jobs recovery is laughable. Full time employment peaked in July 2007 at 122.4 million. Today there are 113.9 million people classified as full-time, with only 101.3 million working more than 35 hours. There are 8.5 million fewer people with full time jobs today than there were in 2007. That fact is even more disheartening considering the working age population has grown by 10.5 million over the same time span. Taking an even longer term view provides the perspective needed to assess our true economic state.  Total nonfarm employment hasn’t grown in twelve years, while the working age population has grown by 30 million people.


Obama will tout the fact that we’ve added 3.6 million jobs since the bottom of this recession. What he won’t tout is that hiring of temporary workers surged by 37% and accounted for 25% of all the jobs added since 2009. I’m sure these temporary workers, with no health or retirement benefits, are confident about their future.  The facts about jobs and employment are consistent with the 47 million Americans on food stamps (up from 35 million when the recession supposedly ended). It’s a sure sign of recovery when spending on food stamps doubles in the last two years. No depression here, just move along.  


Record numbers of Americans being added to the SSDI rolls for depression and other illusory disabilities is surely a positive development pointing to a strong economic recovery. In just the first four months of this year, 539,000 joined the disability rolls and more than 725,000 put in applications. “We see a lot of people applying for disability once their unemployment insurance expires,” said Matthew Rutledge, a research economist at Boston College’s Center for Retirement Research. The number of applications last year was up 24% compared with 2008, Social Security Administration data show. Why participate in the labor market when you can collect a government check for life because you are obese or depressed. These are the people no longer in the labor force. Once they go on SSDI, they rarely go back to work again.   


The government reported figure of 12.7 million unemployed Americans is an utter falsehood. There are in excess of 30 million Americans that are either unemployed or working part-time that want full-time jobs. Government propaganda doesn’t change the facts.

 “Facts don’t cease to exist because they are ignored.” – Aldous Huxley

Would You Like a Side Order of Facts with That Propaganda?

When you watch the Wall Street scam artists paraded on CNBC declaring the number of people not in the labor force is going up due to Baby Boomers retiring, you should understand they are propagating a falsehood. They are either intellectually dishonest or too lazy to do the most basic of research. They are paid millions to impart false storylines to anyone dumb enough to watch CNBC expecting facts or a smattering of truth. If you want some truth, turn to John Mauldin and John Hussman. CNBC doesn’t invite these outstanding honest analysts on their station when they can roll out a shill like Abbey Joseph Cohen or James Paulson. They wouldn’t want some factual analysis when they can have Becky Quick do one of her frequent handjob interviews with that doddering old status quo fool Warren Buffet.

A critical thinker might wonder how could real disposable income be dropping over the last three months and only have risen by 0.3% in the last year if we’ve had the strong job growth touted by Obama. Could it be the jobs being created are extraordinarily low-paying? There are signs of desperation everywhere you look. The two charts below, from one of John Mauldin’s recent articles, reveal the truth about the Baby Boomers retiring storyline. The first chart shows the employment level for those over the age of 55 since 2007. There were 25.3 million people over the age of 55 working in 2007 and there are 30.1 million working today. People over 55 have seen their total employment level rise by 4.8 million jobs since the beginning of the recession, and over 3 million jobs since the 3rd quarter of 2009. Total employment is down by 4 million since 2007, while employment among those over 55 is up 19%. John Hussman described the reality about employment in his recent weekly article:

“If you dig into the payroll data, the picture that emerges is breathtaking. Since the recession “ended” in June 2009, total non-farm payrolls in the U.S. have grown by 2.32 million jobs. However, if we look at workers 55 years of age and over, we find that employment in that group has increased by 3.04 million jobs. In contrast, employment among workers under age 55 has actually contracted by nearly one million jobs, regardless of which survey you use. Even over the past year, the vast majority of job creation has been in the 55-and-over group, while employment has been sluggish for all other workers, and has already turned down.”

I wonder how Larry Kudlow will spin this.


Now for the really eye opening facts. While the labor participation rate has been plunging, the Boomer participation rate has been skyrocketing. The participation rate for the over 65 age group is now at an all-time high. Do you think this has anything to do with home values dropping 36% since 2005, gasoline prices doubling since early 2009, food prices surging by 25%, the 1.4% annual return of stocks since 1999, or the .15% senior citizens can earn on their money today versus the 5% they could earn in 2007?


Intellectually dishonest ultra-liberal Ivy League defender of the Federal Reserve – Paul Krugman had this to say about Ben Bernanke’s zero interest rate policy on senior citizens:

“Finally, how is expansionary monetary policy supposed to hurt the 99 percent? Think of all the people living on fixed incomes, we’re told. But who are these people? I know the picture: retirees living on the interest on their bank account and their fixed pension check — and there are no doubt some people fitting that description. But there aren’t many of them.”

It must be comforting living in an ivory tower or penthouse suite and looking down upon the ignorant masses while caressing your Nobel Prize. The millions of senior citizens with $100,000 of savings could earn $5,000 of interest income in 2007 to supplement their $18,000 of Social Security income. Today, they can earn $150 while the Wall Street banks receive the benefits of ZIRP by borrowing for free from the Federal Reserve and earning billions risk free. Paulie doesn’t think the $4,850 reduction in income and the 15% increase in inflation since 2007 had a negative impact on senior citizens. They must be pouring into the work force because they are just bored, after working for the last 45 years. John Hussman has a slightly different viewpoint, based upon facts rather than a false disproven ideology:    

“Beginning first with Alan Greenspan, and then with Ben Bernanke, the Fed has increasingly pursued policies of suppressing interest rates, even driving real interest rates to negative levels after inflation. Combine this with the bursting of two Fed-enabled (if not Fed-induced) bubbles – one in stocks and one in housing, and the over-55 cohort has suffered an assault on its financial security: a difficult trifecta that includes the loss of interest income, the loss of portfolio value, and the loss of home equity. All of these have combined to provoke a delay in retirement plans and a need for these individuals to re-enter the labor force.

In short, what we’ve observed in the employment figures is not recovery, but desperation. Having starved savers of interest income, and having repeatedly subjected investors to Fed-induced financial bubbles that create volatility without durable returns, the Fed has successfully provoked job growth of the obligatory, low-wage variety. Over the past year, the majority of this growth has been in the 55-and-over cohort, while growth has turned down among other workers. Meanwhile, broad labor force participation continues to fall as discouraged workers leave the labor force entirely, which is the primary reason the unemployment rate has declined. All of this reflects not health, but despair, and helps to explain why real disposable income has grown by only 0.3% over the past year.”

Do you believe Krugman or Hussman? The key takeaway from the data is the desperation exhibited by average Americans, while the political governing elite and Wall Street pigs continue to gorge themselves at the trough of free money provided by the Federal Reserve, while paying themselves obscene bonuses for a job well done buying the corrupt Washington politicians.


Over the next six months we will hear unceasing rhetoric from Obama and Romney about how they are going to create jobs. Neither of these government apparatchiks have a clue about jobs or desire to change the course that was set one hundred years ago with the creation of the Federal Reserve. Obama never worked at a real job in his entire life, while Romney has spent his life firing people and spinning off heavily indebted companies to unsuspecting investors. The current deteriorating jobs picture has been decades in the making and a truly bipartisan effort. The rhetoric about America being an engine of growth and the world leader in innovation and entrepreneurship is laughable when examined with a critical eye. We are an aging empire living in the past as the facts portray an entirely different reality. Our fastest growing industries include:

  • Solar panel manufacturing (subsidized by your tax dollars)
  • For-profit universities (diploma mills subsidized by your tax dollars)
  • Pilates and yoga studios
  • Self-tanning product manufacturing
  • Social network game development
  • Hot sauce production

The “surge” in jobs in the last three months is being driven by these industries:

  • Food services and drinking places
  • Administrative and support services
  • Ambulatory health care services
  • Credit intermediation
  • Hospitals

Is this the picture of a world leading jobs machine or a delusional, paper pushing, self-involved, obese, sickly, overly indebted crumbling empire? The job openings in industries that actually produce something are barely identifiable on the chart below. Maybe the University of Phoenix can successfully retrain construction and manufacturing workers to be waiters, waitresses, and Wal-Mart greeters if the Federal government can funnel more of our tax dollars into student loans.    


If you thought low wage work was only for Chinese, Indians, and Vietnamese, you haven’t been paying attention. The United States is a world leader. We are by far the world leader among developed countries in percentage of low wage workers at 24.8%. I find it hysterical that the dysfunctional insolvent countries of Greece, Spain, Portugal, and Italy have a much smaller percentage of low wage workers than the great American empire. We have 142 million employed Americans and 35 million are slaving away in low paying thankless jobs. This explains why the half the workers in the country make less than $25,000 per year.  


The top three employment occupations in the country are:

  • Office and administrative support work
  • Sales & Related
  • Food preparation and serving related


There are high paying good jobs in America, but there aren’t many and on-line college graduates from the University of Phoenix aren’t going to get them. The highest paying jobs today require a high level of specialization and education, especially in the healthcare and technology industries. This disqualifies the vast majority of government run public school graduates. High paying manufacturing jobs which were the backbone of the country during the 1950s and 1960s are gone forever. The reasons for this transformation are multifaceted and will be addressed in Part Two of this article. It didn’t happen by accident and there are culprits to blame. The conversion of our country from making high quality things other countries needed to a debt driven service economy of paper pushers, hash slingers, and retail “specialists” has slowly but surely destroyed the middle class. The masses are distracted by the latest technological marvel that allows them to waste another two hours per day posting how they feel about the latest episode of America’s Got Something or America’s Top Whatever. We have become a country that glories in our materialism and shallow culture while acting like a thug around the world with our unparalleled military machine.  

This result is not an accident. It was set in motion by the actions of a handful of rapacious, wealthy powerful men that have been calling the shots in this country for the last hundred years. It wasn’t a planned conspiracy but the logical result of man-made inflation, a fiat currency not backed by gold, the craving of rich men to become richer, a willfully ignorant populace, and a slow devolution of our society into a corporate fascist state. We praise and honor psychopathic criminals while scorning and ridiculing the middle class workers that built this country. The American dream has become a nightmare for the millions of unemployed and underemployed. The acceleration of debt accumulation and money printing guarantees this rotting carcass of a country will go belly up in the foreseeable future.     

“Thus did a handful of rapacious citizens come to control all that was worth controlling in America. Thus was the savage and stupid and entirely inappropriate and unnecessary and humorless American class system created. Honest, industrious, peaceful citizens were classed as bloodsuckers, if they asked to be paid a living wage. And they saw that praise was reserved henceforth for those who devised means of getting paid enormously for committing crimes against which no laws had been passed. Thus the American dream turned belly up, turned green, bobbed to the scummy surface of cupidity unlimited, filled with gas, went bang in the noonday sun.” – Kurt Vonnegut

In Part Two of this article I will examine how we got to this point and what is likely to happen next.


67 thoughts on “EPIC FAIL – PART ONE”

  1. Ironically, while SSI claims are processed fairly quickly, VA claims are not, as the latter require not only proof of disability, as the former do, but also proof of service-connection. Thus, we reqard those who did not serve and punish those who did, a preverse incentive indeed, especially considering how many SSI claims are based on self-inflicted disabilities.

  2. quinn, this is why i come to this site/blog. your large-view essays. (i stay for the feces-flinging). bravo, as usual. looking forward to part two.

    hey colma–i’m gonna be out there next week. i’ll be staying pretty close to you, the extreme south edge of mission street in the city. let’s catch a cup of coffee. hit my blog, or ask quinn to forward my email.

  3. What a read to start the week, Admin.

    It’s articles like this that get my blood boiling. Boiling blood makes me work faster. Knowing we’re fucked makes me study harder….

    All I need is for the retard parade to start so I can shake a fist and yell “You’re all a bunch of weasel-fanged morons!”

    (Howard, we shall drink coffee…. I moved but not far. That’d be badass)

  4. As Colma says, anger can be useful. I’m turning off all media until after the election. I can’t stand to be an audience to the coming farce. It’s even worse than last time. It’s amazing half the people vote, actually, since their votes mean nothing. The American dream is dead, unless you can figure out a way to steal or scam the system, which millions have.

    I saw a car today, a KIA (Korean) SUV with an American flag flame pattern down the sides. That about says it all. When we send $550 million out of the country every year, and go another $1.4 trillion in debt every year, and get millions more on entitlements every year. If that shithead Obama had his way, every single unemployed person would get automatic disability. He can buy votes with taxpayer money, free shit votes to keep free shit. it’s not going to end well.

    1. “It is unbelievable. Goldman Sachs? No one has any criminal convictions. The whole new regulatory reform is a joke. The whole government is a Ponzi scheme.”

      -Bernie Madoff

  5. [email protected] says:


    “Bye. Bye, Miss American Pie, I drove my KIA to the levy but the levy was dry.” That is how Don McLean would sing it today.

    Hey! I wonder if we can update Don’s song for our current time???

    You guys realized that NOTHING what Admin wrote is being discussed on the MSM/Fox/Legacy Media these days. It’s all hunky dory out there in tee-vee land. Hence, most sheeple will continue to vote right down the same ole way and off the cliff we go.

    Besides, if you mention these terrible job stats, most of which have occurred under Obama, you are just being a racist hater.

  6. In 2011, over 50 percent of college grads under the age of 25 were unemployed. On the contrary, Boomers are flooding the labor market throughout this crisis. This isn’t a healthy trend for our country. To make matters worse, Boomers are encouraging these unemployed college grads to go back to school in order to better their chances of getting a job. What a joke! The nominal value of student loan debt is over 1 trillion dollars and climbing. This generation is strapped with debt, no job, and lost hope. This is the generation that will hopefully help rebuild this country in the coming years. Unless this trend changes, we have a long road ahead of us.

    Thanks for the article, Jim. Always appreciated.

  7. Yes Admin, that would make it all easy.

    I made a big ol’ rant and it got tossed… I will rant on this awesome article tonight.

    The world is full of dopey morons. That’s a good summary.

  8. I was just shaking my fist at traffic, then I let a bus through an intersection. He waved thanks and I returned the wave with an ASL “11”.

    I like it.

  9. Good read, JQ.. I’ve got three pieces in outline and I suppose I should get my lazy butt in gear and finish one of them.. But it’s so much more fun throw shit than to work..


  10. He is correct in that Americans will never be accused of being perceptive. Apparently his recollection of history is limited. Clinton would have had no chance of being elected if it were not for Ross Perot running. If one recalls, Perot obtained approximately 19% of the vote which would have been primarily Bush supporters as they tended to be more conservative than Clinton. In the next election, the Republicans ran Bob Dole who could not have beat me in the Presidential election. Clinton’s election was a total fabrication just as Obama’s was in that the Republican’s ran John McCain who is a liberal and in essence a Democrat. The entire system is a sham and a total waste of time. When one tries to run that is not picked beforehand, the press does not cover him or his votes are stolen. On a state level, even his own party doesn’t support him. That happened in the last election when Lally, an unknown ran against Yarmuth.

  11. Admin says:
    “No wonder one third of Americans are obese. The crap we are shoveling into our bodies is on par with the misinformation, propaganda and lies that are being programmed into our minds by government bureaucrats, corrupt politicians, corporate media gurus, and central banker puppets.”

    I challenge that comparision. One third of Americans may be obese from the foods they consume, but fully 90% are fucking stupid, gullible, manipulated, oblivious tools, for believing what they hear from the government and media.

  12. Believe it or not, there is nothing in this article that I would contest, dispute, or not believe. As a senior, in 2007 I could earn $1500-1700 per month on my retirement savings to supplement my pension and my wife’s SS, while withdrawing about $1200 per month. Now we average about $500-600 per month, while still needing to withdraw $1200 per month. So, adjustments have to be made.

    As to the brainwashing, I have four children, three of whom I will not talk politics with because they believe the shit they hear from the media and government.

  13. “Such and such total of Americas don’t give a crap about voting?”

    No! It means, YOU”RE AN IDIOT!

    Or haven’t you heard about the rigged voting machines?

    I guess you haven’t!

    Now who was it that said;

    “It’s not the votes that count. It’s who counts the votes!”

  14. During the depression of the 1930’s, due to deflation, working Americans were for the most part better off than today’s are.

  15. “Democratic Governor Pat Quinn has proposed a voluntary 3 percent increase in pension contributions from current employees and a cut in cost-of-living increases for retirees.” (Mish)

    Headline News on Ed Schultz: ” Recall Scott Walker”.

  16. Kudos Admin.

    A sober litany of our current state of affairs – didn’t just blossom under Obama’s bullshit. This is the end of a long journey – and we’re all to blame for allowing it to happen.

    The jobs picture you describe is the only truthful account I have read in over 3 years.

    I haven’t been on TBP as much lately because I finally got a gig. It’s hourly, 3 days a week, no benefits. I drive 30 miles each way and work thru lunch to stretch the check. But I’m lucky to get it.

    I got off my duff when Mr. Malone had a major health scare several months ago. I thought, “if he dies, I am so screwed.” He’s making all the money these days – I’ll never be able to replace his salary. And they may never pay his life insurance claim, cause of MBS fraud.

    So off to work I went – another Boomer back in the workforce – who just was too bored to stay home. Yeah.

    I’m going to send this article to everyone on my email list – it deserves to go viral.

    Thank you. You’re the Thomas Paine of our time.

  17. How do I send a copy of this to a friend by email? I don’t use Facebook or any of those other social media…. to many tracks imho.

  18. Wow. glad I didn’t miss this. Hardware problem on my main machine and back online with a damnable old H-P WinXP boat anchor. Had to d/l Firefox just to feel like I was using a real computer.


  19. As a 25 year old, I feel ashamed to call myself a member of Generation Y. Instead of looking at the past, and paving our own way as a whole we seem content to wait for someone to bail us out and make our owies all better.

    My wife and I have busted our asses to get where we are (both with chemistry degrees, she is in an MBA program and I am finishing my MS: Chemistry in a couple of weeks).

    I think what pisses me off the most in all of this is that all my hard work will be for naught. Despite our income level, I can’t afford shoulder surgery for an injury I received seven years ago. Despite our income level, I won’t be able to afford my lovely student loans AND a house payment.

    As shitty as these things are, we have set up our budget for the next four years and should have a lot of those problems taken care of. Which is nice, because we would both dearly love to start having a family.

    This brings us to my last problem: Neither of us have any faith at all in this country. I have no faith in any of the current generations (Boomer/X/Y) when it comes to fixing our country’s issues. I want to start a family, but do I dare do so in the US of A?

  20. Its always one thing or anouther.Look at history,was there ever a time when people didnt think it was a bad idea to have kids or bring them into the world?You ever been drafted? Went hungry?
    I think you should drive down into mexico for a day or two.Would give you a whole new attitude on how good you have it.

  21. “The masses are distracted by the latest technological marvel that allows them to waste another two hours per day posting how they feel about the latest episode of America’s Got Something or America’s Top Whatever. We have become a country that glories in our materialism and shallow culture while acting like a thug around the world with our unparalleled military machine.”

    Oh Jim, the truth of this makes me so profoundly sad. I want to cry for my country–I have done.

    One wonders, how can so may people be so blind? How is it possible?

    Dosvedana America. You are lost.

    1. marissa

      It’s funny you picked out that quote. When I finished the article on Sunday night I was tired and couldn’t think anymore. I usually like to make the last paragraph provocative and it wasn’t. So instead of posting the article, I went to sleep. When I was driving into work the next morning, that line popped into my head and I added it. My brain must have been working on it while I was sleeping.

  22. Drugs-R-US

    ..like I’ve said before , the US military is a major supplier in the drug trade.

    Army probes drug use by soldiers in Afghanistan

    Published April 21, 2012

    Associated Press

    WASHINGTON — The U.S. Army has investigated 56 soldiers in Afghanistan on suspicion of using or distributing heroin, morphine or other opiates during 2010 and 2011, newly obtained data shows. Eight soldiers died of drug overdoses during that time.

    While the cases represent just a slice of possible drug use by U.S. troops in Afghanistan, they provide a somber snapshot of the illicit trade in the war zone, including young Afghans peddling heroin, soldiers dying after mixing cocktails of opiates, troops stealing from medical bags and Afghan soldiers and police dealing drugs to their U.S. comrades.

    In a country awash with poppy fields that provide up to 90 percent of the world’s opium, the U.S. military struggles to keep an eye on its far-flung troops and monitor for substance abuse.

  23. Financial dynamics vs. industrial dynamics

    American industry began to be financialized (and in the process, criminalized). But running a company to make a financial gain is different from running an industrial firm to expand production. Cash flow that was not paid to bankers and bondholders for the credit to buy out stock holders was used for purposes other than direct capital investment – above all for stock buybacks to support their price, and for mergers and acquisitions to acquire yet more companies.

    The aim was not to increase production but to increase balance-sheet wealth – while extracting revenue from companies much like landlords bleeding a building. That is the time frame of finance capital, in contrast to industrial capital. It is short-term, not long term. This is why it is extractive rather than productive. The revenue has no counterpart in new direct investment in output, but rather in overhead debt extracting a rising flow of interest from the economy.

    “Wealth creation” by debt leveraging – that is, asset-price inflation – was celebrated as a post-industrial economy, as if this were a positive and natural evolution. But in reality it is a lapse back into a rentier economy, and even into a kind of neofeudalism. The post-2008 bailouts have vested a new rentier elite to lord it over the 21st century, thanks to the fact that most gains since 1980 have gone to the 1% – mainly the financial sector, not to the 99%.

    In the end this shrinks the economy – and that means that more and more loans will go bad, until crisis levels are reached at the point where lenders realize that there is no more room to extract more, and stop lending. But in the absence of government budget deficits, bank lending is the only support for demand – so the financial rug is pulled out from under the economy. That is the point at which banks demand bailouts – giving them the money, rather than giving the economy the revenue to spend and pull itself out of depression. So government debt is increased by giveaways to the banks, not by spending into the “real” economy.
    -Michael Hudson, Economic Historian

    I think Hudson nails a big part of the epic fail today.

  24. “Its always one thing or anouther.Look at history,was there ever a time when people didnt think it was a bad idea to have kids or bring them into the world?You ever been drafted? Went hungry?
    I think you should drive down into mexico for a day or two.Would give you a whole new attitude on how good you have it.”

    1) You don’t know about my upbringing (nor will you ever). Suffice to say I did NOT have the standard American life.

    2) Playing the “people have it worse in other places” card? Really? If I thought that way I would have gotten my History degree and gone to work at Starbucks. Other places have it better, and things will remain that way until the average American realizes that we aren’t the greatest nation on Earth.

    3) I’m not saying that its a bad idea to bring children in the world. I’m waiting until economically we are at that point. For us its going to be little to no debt (including student loans) and a location we want to raise a family in. What I’m questioning is whether or not the US will remain a place I wish to raise my children. Like I said, I have no faith in my generation or the GenX. Sure, there are individuals who would do an amazing job, but the masses would never vote for them. Rather than keep track of what our politicians are doing people would rather play Farmville and watch America’s Next Biggest Loser.

    Things like gay marriage and birth control pills are main points of contention, rather than foreign policy or the role of corporations in government.

  25. PissyChemist:

    If you have a solid education and are making a plan for your family, you’re WAY ahead of the game.

    Good for you…. the debt will inflate away.

    You could go anywhere…. keep in mind, wherever you go will be stuffed with morons too. All I would say is to make certain you shield your life from people who aren’t industrious and driven. Other than that, carry on.

    Try Australia, New Zealand or Argentina. Look into it…. but I’m not one to talk: I’m staying here in NorCal shit or shinola. As a chemist, you’d make big bucks here too.

    Good luck with the life you choose. Again: You’re ahead of the game already.

  26. Colma

    ” All I would say is to make certain you shield your life from people who aren’t industrious and driven.”

    Amen, brother. Well said. This is great advice. It is hard to stay focused and do what is right for your future when the majority of people around you each day are doing what is wrong. It takes much discipline and focus to stay on track especially when those that are doing wrong are being rewarded. Surrounding yourself with smart, driven people will help you stay accountable and will help you grow. We live in a world where we feel entitled to everything and we want “it” now. Good things take time and if you stay focused and surround yourself with the right people, you will always be ahead of the pack. Seeing the BIG picture is key. It is scary to envision what will happen to this country when our system crashes. We all (TBPers) know it is coming. We just don’t know when.

  27. I work for UOP and got my degree for free. So worthless or not I have 0 student debt and a piece of paper that says I’m a college graduate :p

  28. Great stuff Mr. Quinn. A loyal Turdite here…I’m sure you know he threw a shout-out to your write-up last night. Can’t wait for part 2. Made me think of the Tytler Cycle and where American is heading….

    The Tytler Cycle:

    Not everyone agrees this was penned by Alexander Tytler…but it’s still called the Tytler Cycle none-the-less. Regardless of who came up with it I believe it’s accurate. And the way I see it, America is sprinting from #8 towards #9 right now.

    Luckily, America is not a Democracy (although the Marxist regressives on the Left (and many on the so-called Right) would have us believe we are a Democracy).

    Fortunately, we’re a Constitutional Republic.

    Hopefully, America wakes up in time before we become a Banana Republic and fall into the last stage of this cycle. We are 235 years old after all…

    The Tytler Cycle:

    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:

    1. From bondage to spiritual faith;
    2. From spiritual faith to great courage;
    3. From courage to liberty;
    4. From liberty to abundance;
    5. From abundance to selfishness;
    6. From selfishness to complacency;
    7. From complacency to apathy;
    8. From apathy to dependence;
    9. From dependence back into bondage.

  29. I care, but I know the tentacles of corruption are so engrained into the system that the hogs aren’t about to allow anyone in a power position that might jeopardize their feeding frenzy. We have the government we deserve. Let’s kick God out, let immorality flourish, but get mad when our now mafia government turns to the same evil. What I care about first is getting God back into the country, but we have to convince the Atheists of this as well…………get my point?

  30. @jayhawk, how will bringing “god” (especially a forced-on-us-god, which is the exact reason we first came to these shores) back going to fix anything?

    We don’t need MORE people that do nothing and pray that the man upstairs – or in Washington – fix things for us, forgive us of all our sins and hand out get out of jail free cards.

    We don’t need to “bring back” god (look at any poll, this god you speak of IS already the #1 guy in the country).

    We need to bring back…


    Bring back the days when you only did/had what you could afford to do, or have. People didn’t have kids they couldn’t support, didn’t buy cars, houses or tv sets they couldn’t pay for, didn’t run screaming for the government to do something when their teen drank beer and drove the family car home. We damn well took care of it ourselves.

    Bring back the days when we took care of issues ourselves, not ran to the cops, judges and politicians.

    Bring back the days when it was EXPECTED that if you bring a child into the world, you get off your ass and provide for it.

    Personal responsibility transcends religion and strikes right at the real core of our problems.

    It used to be that we would do wrong, beg forgiveness, then work to re-establish our reputations and right the wrongs we created.

    Now “we” (including most Christians I know), do wrong, beg forgiveness, scream bloody-murder if expected to DO anything to right your wrongs, gain benefits, then feel “entitled” to it all continuing through the next time you intentionally do the wrong thing.

    I don’t see how “god” is going to change all that. Just don’t see it at all.

  31. Would You Like a Side Order of Facts with That Propaganda? (loved this line)

    Yes and you better “super size” it for all us obese American idiots. Throw in a 64 ounce “Big Gulp” because they gonna have trouble getting down those facts. You can just charge the whole thing to my Food Stamp credit card because I can buy as much frigging junk food as I want at any mickey Dee’s or 7 eleven, or Walmart…. We livin’ large..

  32. @Colma: Part of our 4-year plan is figuring out where we are going with our degrees. As it stands our primary place of interest is SoCal, though NorCal is definitely next in line behind that.

    As for foreign locations, Kiwiland was #1, both based on internet research and based on the opinion of other professionals we know of who have moved there over the last 5 years.


    “Seeing the BIG picture is key. It is scary to envision what will happen to this country when our system crashes. We all (TBPers) know it is coming. We just don’t know when.”

    Most sources I go through agree that the next 10 years will yield results, positive or negative. Most of them also agree that unless our country undergoes a massive paradigm shift the crash is going to be negative in a big way.

    Isn’t the media supposed to act as the eyes of the people upon our government? Where the hell did that go?

  33. Tell those stupid bastards who do not vote that since they voluntarily pay taxes, vote Dr. Paul in for those kids playing in the yards of the middle east so some cund like Mittens Romney, Lobobummer, or Hillary Hitchcock does not get the chance to smear a gallon of napalm on them.

  34. First if all, the author needs to define “liberal’ to me, as I have no clue what he is talking about…or he doesn’t.

    Seems “liberal” is a catchall phrase for anything he finds distasteful. He might want to look up what George Washington, and his “fervent wish we have established a LIBERAL nation” quote.

    Seems the author has drunk deep from the Rush Limbaugh definition….very Orwellian, and hope the author wakes tf up.

    Secondly, ANY article describing our “growth” segments of the economy without including military/contractor produced jobs is a sorry POS. Excuse me: a VERY, DEEPLY, POS.

    1. Only a true liberal wouldn’t know how to define liberal. farang is a Naked Capitalism douchebag.

      Farang thinks I’m a Rush Limbaugh disciple. Hysterical. This is standard operating procedure for ultra-lib ideologues who can read an article about the government lying about the true jobs situation and spin it into a right wing screed.

      I love to see the warped views of people like farang because it reveal the true idiocy of the left.

      Thanks for the refresher course in left wing ideology.

  35. jayhawk

    Is that God you speak of the one those churches believe in, where they handle snakes and speak in tongues? Probably not — yours is The One True God who says, “Thou shalt have no other God before me” to a minority of the world’s population. No others need apply, Buddhists, Shinto, ah, what about the Jews? Muslims? I worked in the Middle East and knew many who understood ethics and morals — just like agnostics and others who lived by principles.

    It’s a curious formula you have: atheist = godless = no ethics nor morals. Huh.

    My mother was religious, she found the One True Religion … four times. All facets of Christianity. Oh well. She’s dead now, maybe covered her bases. Yeah, you caught me on a bad day. My first wife died on this day; it’s a national holiday here (not because of her) but Lest We Forget. In eight years, I experienced the loss of the first wife, my mother, and my second wife. I’m all God-ed out.

    TeresaE gave you an excellent suggestion, you should try it.



    Is this the only thing you have ever read here? It seems so. If you want a doctoral dissertation, go find one somewhere else. Why do you dumb fucks have an inability to focus on a topic, instead wanting A, B, or Z included. If everything was included in one single post that would satisfy everyone, it would never load before cyberspace exploded.

    I’ll tell you what a liberal WAS, as GW did. I will suggest the Populist movement did more to destroy classical liberalism than anything else. But they got their wishes for ‘the commons’, an income tax, direct election of senators, and yes, even a central bank (though they had no idea what they were Bernays’d into) and World War One. Oh yes, and Prohibition. The New Deal. Great Society. And more.

    Your little snipe is so far off the mark — maybe the author should have used the term Progressive instead? Fuck off with your partisanship, and your maroon inability to understand the two-party system is a fucking joke. It’s a Janus-faced juggernaut and George Washington would spit on the thing.

  36. Kill Bill says:

    The zombie stands on its own IV.

    Like or Dislike: Thumb up 3 Thumb down 3

    Okay, good, I am a fooll , but a medium fool, let me read your mind, given the votes/

    But really, who can deny the fact that too big to fail is not stepping on its leash and crying for more leash?


  37. Seems “liberal” is a catchall phrase for anything he finds distasteful. He might want to look up what George Washington, and his “fervent wish we have established a LIBERAL nation” quote -farang

    Pundits have this way of making old BS new BS.

    So liberal, and both conservative, become ways with which each other to whack another upon the gilled noggin.

    Fine. We have embridled ignorance.

    In the interest of debatem where, from here, shall we go thus, – farang and adverasry friends?

  38. Farang: As Novista pointed out, you need to get with the program. I do believe that when George Washington so spoketh “Liberal” the term “Awful” meant great, and “Awesome” meant mediocre.

    I don’t suppose you’d point that out in the modern times without being told, again….

    Get with the program, McFly.

  39. What a depressing article! I am waiting out foreclosure in a house that 80k of my cash is gone! Nevermind the additional 70k in imaginary value created by the bubble. After BOA profited from the fraudulent bailout they bundled up my mortage and sold it off for dirt cheap. The 2nd bank which probably paid a fifth of what I originally borrowed came after me for the whole damn thing!!! They put me through a wringer trying to renegoatiate the loan. I finally said screw it!!! They can have the damn house!!! Ill be sure to leave all the lights on with windows open. Let the birds and insects enjoy it!! I will also destroy any value that I put into it with my own hard earned money!!! ****ERS!!

  40. Flash, that lewrockwell link is frightening, simply frightening.

    I’ve known about local cops (mainly in states such as Texas and NM and Arizona) that scan or search cars, confiscate cash even if you have legitimate proof that it was obtained legally, then tie up the innocent for years while draining more than what was confiscated from the victim directly to his lawyers and the court system

    Now the feds are doing it too?

    I can’t even get the business owners that WILL BE NEXT on the freaking list to band together, stand up and do SOMETHING.

    They continue living their lives in the belief that it won’t happen to them, so why worry.

    First they came for the unionists, but I wasn’t a unionist, so I said nothing.
    Then they came for the….


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