YOU AIN’T SEEN NOTHING YET – PART TWO

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Posted on 4th April 2012 by Administrator in Economy |Politics |Social Issues

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This is Part Two of a three part series trying to make sense of the Crisis period we entered in 2008. Click here to read: PART ONE

Catalyst of Change

“As late as December 1773, November 1859, and October 1929, the American people had no idea how close it was. Then sudden sparks (the Boston Tea Party, John Brown’s raid and execution, Black Tuesday) transformed the public mood, swiftly and permanently. Over the next two decades or so, society convulsed. Emergencies required massive sacrifices from a citizenry that responded by putting community ahead of self. Leaders led, and people trusted them. As a new social contract was created, people overcame challenges once thought to be insurmountable – and used the Crisis to elevate themselves and their nation to higher plane of civilization.” – Strauss & Howe - The Fourth Turning

 

 

 

Anyone who hasn’t sensed a mood change in this country since the 2008 financial meltdown is either ignorant or in denial. Millions of Americans fall into one of these categories, but many people realize something has changed – and not for the better. The sense of pure financial panic that existed during September and October of 2008 had not been seen since the dark days of 1929. Our leaders used the initial terror and fear to ram through TARP and stimulus packages that rewarded the perpetrators of the financial collapse rather than helping the middle class who lost 8 million jobs, destroyed by Wall Street criminality. The stock market plunged by 57% from its 2007 high by March 2009. What has happened since September 2008 has set the stage for the next downward leg in this Crisis. The rich and powerful have pulled out all the stops and saved themselves at the expense of the many. Despite overwhelming proof of unabashed mortgage fraud, rating agency bribery, document forgery on a grand scale and insider trading based on non-public information, the brazen audacity of Wall Street oligarchs is reminiscent of the late stages of the Roman Empire.    

“Crime, once exposed, has no refuge but in audacity.”
― Tacitus, Annals

The actions of the governing elite have provoked the darkening mood creeping across the land. The rise of the Tea Party in 2009 was fueled by anger over the bank bailouts, out of control federal spending and ever increasing taxes. The anger spilled over into town hall meetings, as Congressmen felt the wrath of public dissatisfaction. The fury propelled Tea Party Republicans to being elected in large numbers in 2010. But the movement was hijacked by the Republican establishment and defanged. As 2011 progressed, with Wall Street continuing to pillage the American middle class, the Occupy Movement spread to cities across America and around the world. The movement, led by Millenials, claims that mega-corporations and Wall Street manipulate the world in an unbalanced way that disproportionately benefits a super wealthy minority and is undermining democracy. They have shone a light upon the fact the 1% has used their wealth and power to plunder the national treasury, while impoverishing the 99%. The audacity of the 1% was on display for all to see when former Goldman Sachs CEO and former U.S. Senator Jon Corzine absconded with $1.2 billion of his customers’ money and continues to hide it in the vaults of his fellow robber baron Jamie Dimon at J.P. Morgan. To this day, no one has been jailed for this heist or any of the thousands of other crimes committed by the Wall Street titans. These psychopaths will not be satisfied until nothing remains of our country but a barren desert.

“They have plundered the world, stripping naked the land in their hunger… they are driven by greed, if their enemy be rich; by ambition, if poor… They ravage, they slaughter, they seize by false pretenses, and all of this they hail as the construction of empire. And when in their wake nothing remains but a desert, they call that peace.” – Tacitus, The Agricola and the Germania

A few weeks ago I watched The Grapes of Wrath movie for the first time in many years. The novel was written by John Steinbeck during the last Fourth Turning. It is as powerful today as it was in the 1941. It perfectly captures the mood of the country during the Great Depression. The message of the working class being exploited and manipulated by wealthy landowners resounds today. The Joads only sought an opportunity for a job, their own land, simple human dignity, and the chance for a better future. Wall Street has replaced the wealthy landowners as the exploiters of the working class. Steinbeck saw the Federal Government as a solution during the 1930s, but they are a major part of the problem today, as politicians have been captured by corporate and special interests. Their solutions do not benefit the average middle class American.

 

The feelings about our government and political system is reflected in Suzanne Collins’ Hunger Games novel, which captures the vein of government brutality, oppression of the working class, excessive wealth inequality, and the vapid shallowness of our American Idol culture. The Hunger Games was written in 2008 and the movie version has become a worldwide sensation. The immense divide between the wealthy ruling class, living an obscenely decadent lifestyle, and the exploited working class on the verge of starvation, is portrayed in a cruelly sadistic manner. The fact that it is appealing to Millenials and all generations says much about the changing of attitudes in the last four years. Hunger Games will be viewed as the modern day Grapes of Wrath by future generations.         

There is no denying the darkening disposition of the country, except by those whose job it is to deny the reality of our deteriorating situation. Those whose power and wealth are dependent upon a citizenry being kept in the dark and convinced the way out of this mess is to resume spending borrowed money, have pulled out all the stops since the initial catalyst for this Fourth Turning struck with its full fury in 2008. The frantic efforts by those in power to prop up the status quo were predictable. If our leaders had dealt with the initial crisis in a realistic manner, many wealthy powerful men would have gone broke. They have been able to temporarily fend off a full-fledged catastrophe as predicted by Strauss & Howe:

“At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where, during the Unraveling, America will have neglected, denied, or delayed needed action. Anger at “mistakes we made” will translate into calls for action, regardless of the heightened public risk. It is unlikely that the catalyst will worsen into a full-fledged catastrophe, since the nation will probably find a way to avert the initial danger and stabilize the situation for a while. Yet even if dire consequences are temporarily averted, America will have entered the Fourth Turning.”

But they have solved nothing. In fact, they have exacerbated the problem areas of debt, civic decay and global disorder with their “solutions”. Our leaders have added $5.6 trillion to the National Debt; the Federal Reserve tripled their balance sheet by taking on $2 trillion of Wall Street toxic debt; the Federal Government assumed trillions in new debt by taking over Fannie Mae, Freddie Mac and Sallie Mae; and real GDP went up by a mere $103 billion (.8%) between the 4th quarter of 2007 and the 4th quarter of 2011. Rescuing the 99% was never the focus of their solutions. It was to save the bankers and wealthy investors (1%) who took the world destroying risks and should have borne the losses of their risk taking. The oligarchs have been wildly successful in this effort. The stock market has doubled from its lows. Borrowing at 0% from the Federal Reserve has done wonders for banker bonuses.   Global disorder increases by the day, as politicians and bankers force austerity on their citizens, while continuing to harvest billions in profits and bonuses still waging wars of choice, further enriching the peddlers of debt and the peddlers of death (military industrial complex).

  

The Great Depression lasted from 1929 until 1940. The GDP of the country actually grew by 80% between 1933 and 1940. The stock market soared by 100% from the 1932 low to its 1933 high. It then soared another 100% from 1934 through 1937. Despite these fabulous economic statistics and investment riches scooped up by the 2.5% of the population that owned stocks, they still call this time period the Great Depression. With unemployment ranging from 15% to 25% during this entire time frame, the common man suffered greatly. There was no recovery for the 99%.

The net worth of the 99% is highly dependent on the value of their homes and their ability to increase their annual wages. Home prices have fallen 34% from their peak and continue to fall, recently reaching 2002 levels. Real median weekly earnings are lower than they were in 2003 and have fallen 3% since the economy supposedly entered its recovery in December 2009. Gas prices have doubled since early 2009. The 1% rejoices as they treat oil as an investment in their diversified portfolio. The 99% suffer as the average household is spending $2,500 per year more to fill up their vehicles. Food prices are up 15% to 25% in the last three years, even using the manifestly manipulated BLS figures.

It is essential for those in power to utilize their mainstream media propaganda machines, massaging of economic information and Ben Bernanke’s printing press to give the appearance of recovery to the masses. In the last three months the hyperbole and extreme spin from the corporate mainstream media has become exceedingly robust. It smells of desperation. Even as the media touts a recovery and Obama peddles drivel about millions of new jobs, Bernanke keeps the throttle of quantitative easing and zero interest rates wide open. Their actions are not consistent with their rhetoric. People who had jobs as accountants making $55,000 per year in 2007 are now stocking fertilizer in the garden center at Lowes making $20,000, with no benefits. This is the face of the jobs recovery. Only a corporate media doing the bidding of their masters could possibly rejoice at the February data showing consumers spending at a rate 450% higher than their income gains as a sign of recovery. There is a concerted effort to revive the auto market by the Federal Government (Ally Financial) and the Wall Street banks by employing exceptionally loose credit standards for auto loans and leases that are reminiscent of the subprime mortgage debacle. I’m sure it will turn out better this time. The downward spiral of trust is accelerating as predicted by Strauss & Howe:

“As the Crisis catalyzes, these fears will rush to the surface, jagged and exposed. Distrustful of some things, individuals will feel that their survival requires them to distrust more things. This behavior could cascade into a sudden downward spiral, an implosion of societal trust.”

The downward spiral of societal trust is well founded. The monied interests have captured the political process. The regulated have captured the regulators. Wall Street has always controlled the Federal Reserve. Corporations and the wealthiest among us select the politicians that will best serve their interests. The governing elite of psychopathic bankers, corrupt politicians, and powerful mega-corporations create crises, then save us from the crises they created, while accumulating more control, wealth and power. This perpetual swindle has been going on for decades and has reached its zenith as it did during the last Fourth Turning. Income inequality has reached the extreme levels last seen in the 1930s. The capitalism storyline has grown old and tired. Complete systematic capture is the reason for those at the top reaping all the benefits of our dysfunctional economic system.

The rampant mortgage fraud, the robo-signing crimes, trillions of shadowy derivatives, unfunded government pensions, unfunded Medicare and Social Security promises, and the bald-faced looting of customer accounts at MF Global have brought about a realization among those capable of critical thought that this Crisis is growing worse by the day. Strauss & Howe clearly understood the factors that would lead to this deficit of trust:

“But as the Crisis mood congeals, people will come to the jarring realization that they have grown helplessly dependent on a teetering edifice of anonymous transactions and paper guarantees. Many Americans won’t know where their savings are, who their employer is, what their pension is, or how their government works. The era will have left the financial world arbitraged and tentacled: Debtors won’t know who holds their notes, homeowners who owns their mortgages, and shareholders who runs their equities – and vice versa.”

Here we stand, three and a half years since the catalyst of this Crisis. What event or events will produce the regeneracy stage of this Fourth Turning and when can we expect its arrival? I’ll try to make some educated guesses in Part Three of this series.

Click here to read: PART ONE

 



 

YOU AIN’T SEEN NOTHING YET – PART ONE

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Posted on 4th April 2012 by Administrator in Economy |Politics |Social Issues

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“Human history seems logical in afterthought but a mystery in forethought. Writers of history have a way of describing interwar societies as coursing from postwar to prewar as though people alive at the time knew when that transition occurred.” – Strauss & Howe - The Fourth Turning

 

Watching pompous politicians, egotistical economists, arrogant investment geniuses, clueless media pundits, and self- proclaimed experts on the Great Depression predict an economic recovery and a return to normalcy would be amusing if it wasn’t so pathetic. Their lack of historical perspective does a huge disservice to the American people, as their failure to grasp the cyclical nature of history results in a broad misunderstanding of the Crisis the country is facing. The ruling class and opinion leaders are dominated by linear thinkers that believe the world progresses in a straight line. Despite all evidence of history clearly moving through cycles that repeat every eighty to one hundred years (a long human life), the present generations are always surprised by these turnings in history. I can guarantee you this country will not truly experience an economic recovery or progress for another fifteen to twenty years. If you think the last four years have been bad, you ain’t seen nothing yet.

Hope is not an option. There is too much debt, too little cash-flow, too many promises, too many lies, too little common sense, too much mass delusion, too much corruption, too little trust, too much hate, too many weapons in the hands of too many crazies, and too few visionary leaders to not create an epic worldwide implosion. Too bad. We’ve experienced horrific Crisis periods three times in the last 250 years and winter has arrived again exactly as forecasted by Strauss & Howe in 1997. The linear thinkers will continue to predict a recovery that never arrives. We have awful trials and tribulations, dreadful sacrifices of blood and treasure, and grim choices awaiting our country over the next fifteen years. Linear thinkers will scoff at such a statement as they irrationally view the world as a never ending forward progression towards a glorious future. History proves them wrong. We stand here in the year 2012 with no good options, only less worse options. Decades of foolishness, debt accumulation, and a materialistic feeding frenzy of delusion have left the world broke and out of options. And still our leaders accelerate the debt accumulation, while encouraging the masses to carry-on as if nothing has changed since 2008. Sadly, millions of lemmings want to believe they will not drown in the sea of un-payable commitments. Truth is a scarce resource on the planet today.

“Sometimes people don’t want to hear the truth because they don’t want their illusions destroyed.” –  Friedrich Nietzsche

 

Entire populations taking comfort in their illusions transcends centuries. This is because all humans are driven by their emotions and react to events and danger in a predictable manner depending on their stage of life. Strauss & Howe in their 1997 opus – The Fourth Turning – utilized decades of studying generational dynamics to anticipate when our next Crisis would arrive and what core elements would precipitate it:

“The next Fourth Turning is due to begin shortly after the new millennium, midway through the Oh-Oh decade. Around the year 2005, a sudden spark will catalyze a Crisis mood. Remnants of the old social order will disintegrate. Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation and empire. The very survival of the nation will feel at stake. Sometime before the year 2025, America will pass through a great gate in history, commensurate with the American Revolution, Civil War, and twin emergencies of the Great Depression and World War II.” – Strauss & Howe - The Fourth Turning

The American people are mentally ensnared by their decades of indoctrination from propagandists in government and on Wall Street, spoon fed to them by the corporate mainstream media. Many are afflicted with the diseases of normalcy bias and cognitive dissonance.  Normalcy bias refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. The American people are mentally incapable of accepting the facts of our impending economic collapse. They somehow are able to convince themselves these facts as normal:

  • We’ve increased our national debt by $5.6 trillion in the last three and a half years. It took from 1789 until 2000, two hundred and eleven years, to accumulate the first $5.6 trillion of debt.
  • Our average annual deficit from 2000 through 2008 was $190 billion. Our average annual deficits since 2008 have been $1.3 trillion. Our deficits never exceeded 4% of GDP prior to 2008, but now they exceed 9%.
  • The national debt will reach $20 trillion by 2015 and if interest rates normalized to the same level they were in 2007 (5%), annual interest expense would be $1 trillion, or 45% of current tax revenue.
  • There are 242 million working age Americans and 100 million of them are not working. But don’t concern yourself. The Federal government reports that only 13 million of these people are actually unemployed. The other 87 million are just kicking back and living off their accumulated riches.
  • The economic recovery has been so great that the 7.5 million people added to the Food Stamp rolls since the recession officially ended in December 2009 isn’t really an indication of severe stress among the 99%. Only 46.5 million Americans (15% of the population) need food stamps to survive.
  • The unfunded liabilities of Medicare, Medicaid and Social Security exceed $100 trillion and cannot possibly be honored, leaving future generations to fend for themselves.

   

  • Our leaders have fought two undeclared wars of choice since 2001 that have resulted in 6,400 unnecessary soldier deaths, 47,500 badly wounded, $1.3 trillion of borrowed treasure, with unfunded liabilities of at least $2 trillion more, and we are itching for more of the same with our coming war with Iran. A bankrupt empire still trying to police the world is the ultimate act of hubris.
  • After causing a worldwide financial collapse in 2008 with their extreme risk taking, tangibly fraudulent mortgage schemes, and reckless pillaging of their clients and the American people, Wall Street used their complete systematic capture of our political and economic system to shift $8 trillion of toxic debt from their books onto the backs of American taxpayers. They have since become even more flagrant in their disregard for human decency by using the hundreds of billions in free money funneled to them by Ben Bernanke to take even bigger risks and pay themselves grander bonuses. Total unregulated derivatives (real WMD) outstanding now exceed $700 trillion.
  • Since 2001 the Federal government has used fear to assume unprecedented and unconstitutional powers over the citizens of this country. They can now use surveillance to monitor your phones calls, emails, and websites visited, without warrants. You can be imprisoned without charges for as long as the government decides you are a threat. TSA agents molest little old ladies and children trying to fly on airplanes. The President can take over the entire economy through presidential decree. Predator spy drones can eliminate suspected terrorists whenever a general gives the command. An order for 30,000 spy drones to be flying over U.S. cities should make you feel safe. The $2 billion NSA Utah Data Gathering Center (code name Stellar Wind) will be able to intercept and store every electronic signal on the planet by 2013. Sacrificing liberty for perceived safety and security isn’t working out too well for the American people.

Anyone with an ounce of critical thinking skill would conclude our current situation is far from normal. We’ve become a cognitive dissonant nation. We convince ourselves the best way to solve a debt problem is to create more debt. We believe we are made safer by attacking foreign countries. We have convinced ourselves it makes sense for Too Big to Fail Wall Street banks that create systematic financial risk to get even bigger, after their fraudulent frenzy of greed virtually crashed our economic system. We actually believe the two party political system offers us a choice, when both parties genuflect to Wall Street, gratify corporate special interests, fight never ending wars, and spend money they don’t have.  We choose to believe government statistics that claim inflation is running at 3%, when our everyday reality attests it to be 10%. We trust the Federal Reserve to maintain price stability even though their policies have resulted in a 97% depreciation in the U.S. dollar since 1913. We believe the future will be bright, even though 60% of workers have less than $25,000 in total savings.

In the ultimate example of cognitive dissonance the majority of Americans scorned and ridiculed the young people being beaten, maced and arrested for protesting the rampant criminality of the Wall Street 1%ers while supporting a billionaire banker bailout, 0% interest rates that punish senior citizens and savers while encouraging further debt accumulation, and not be outraged that not one criminal banker has gone to jail. They somehow are able to observe the data in the table below and still believe that America offers equal opportunity to everyone.

Americans have thus far been unable to deal with the reality of our desperate circumstances. They remind me of people who see the ocean recede from the shoreline and curiously venture out where the sea had flowed to pick up trinkets and pretty shells with no sense of what is truly happening. The deadly 20 foot high tsunami headed their way will be a complete shock when they are swept away in a torrent of bad debt and worthless currencies.  We are about to enter phase two of this Fourth Turning Crisis still in denial and terribly unprepared for the frightful trials that await our nation. It’s not as if it hasn’t happened before, just like clockwork. William Strauss and Neil Howe were able to document turnings in Anglo-American history dating back to the 15th century. The life cycles of human beings and the moods of generations at different stages of their lives are consistent across time, resulting in predictable responses to events during a particular time frame. Fourth Turnings are a time of Crisis, danger and vulnerability. The Crisis periods in modern history are as follows:

  • War of the Roses (1459 – 1487), Late Medieval Saeculum
  • Armada Crisis (1569 – 1594), Reformation Saeculum
  • Glorious Revolution (1675 – 1704), New World Saeculum
  • American Revolution (1773 – 1794), Revolutionary Saeculum
  • Civil War (1860 – 1865), Civil War Saeculum
  • Great Depression & World War II (1929 – 1946), Great Power Saeculum
  • Millenial Crisis (2008 – ????), Millenial Saeculum

Using a seasonal analogy, the Crisis is the wintry bitter dark era, where deadly blizzards rage and the citizens are pushed to the brink. In retrospect the three previous American Crisis periods seem easy to predict, but one year prior to their onset NO ONE could have predicted the epic sacrifices and horrific casualties of war to follow. In 1772 there were few people expecting America to declare independence and fight an eight year war for independence. In 1859 virtually no one expected the election of Abraham Lincoln as president and an ensuing war that would kill 700,000 American men. In 1928 no one imagined the stock market losing 89% of its value, an eleven year depression, and a world war resulting in over 60 million deaths. History is only logical in afterthought. The mystery of forethought is where we find ourselves today.

In a recent article, Neil Howe provided insight into why he believes the current Fourth Turning began in 2008, sixty-two years since the end of the Depression/WWII Crisis, which was sixty-four years after the Civil War Crisis, which was sixty-six years after the American Revolution Crisis:

“I believe the catalyst occurred in 2008. The year 2008 marked the onset of the most serious U.S. economic crisis since the Great Depression. It also marked the election of Barack Obama, which could yet turn out to be a pivotal realignment date in U.S. political history. In fact, if I had to give the catalyst a month, I would say September of 2008. The global Dow was in free fall. Banks were failing. Money markets froze shut. Business owners held their breath.” – Neil Howe – Dating the Fourth Turning

Howe uses the term catalyst to describe the trigger or event that initiates the Crisis. Strauss and Howe determined that a Crisis progresses through four stages during its life cycle, as described below:  

  • A Crisis era begins with a catalyst – a startling event (or sequence of events) that produces a sudden shift in mood.
  • Once catalyzed, a society achieves a regeneracy – a new counter-entropy that reunifies and reenergizes civic life.
  • The regenerated society propels toward a climax – a crucial moment that confirms the death of the old order and birth of the new.
  • The climax culminates in a resolution – a triumphant or tragic conclusion that separates the winners from losers, resolves the big public questions, and establishes the new order.

We have countless valleys to cross and mountains to ascend before reaching our ultimate destination. There are no guarantees the outcomes will be positive or that the nation as we know it will even exist. It is certain that in twenty years the social order of this country will not resemble what exists today. The transformation could be positive or negative, depending upon whether we make the right choices during this Crisis.

 

“The nation could be ruined, its democracy destroyed, and millions of people scattered or killed. Or America could enter a new golden age, triumphantly applying shared values to improve the human condition. The rhythms of history do not reveal the outcome of the coming Crisis; all they suggest is the timing and dimension.”  – Strauss & Howe - The Fourth Turning

 



 

How can the Americans remain so consistently brain-fucked?

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Posted on 2nd April 2012 by Stucky in Economy

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Joe Bageant is a self-described “red neck socialist”. He died a few months ago. Too bad. I love him because he hates everything I hate, so I overlook any political differences.

I hope this article pisses off some people.

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If you hang out much with thinking people, conversation eventually turns to the serious political and cultural questions of our times. Such as: How can the Americans remain so consistently brain-fucked? Much of the world, including plenty of Americans, asks that question as they watch U.S. culture go down like a thrashing mastodon giving itself up to some Pleistocene tar pit.

One explanation might be the effect of 40 years of deep fried industrial chicken pulp, and 44 ounce Big Gulp soft drinks. Another might be pop culture, which is not culture at all of course, but marketing. Or we could blame it on digital autism: Ever watch commuter monkeys on the subway poking at digital devices, stroking the touch screen for hours on end? That wrinkled Neolithic brows above the squinting red eyes?

But a more reasonable explanation is that, (A) we don’t even know we are doing it, and (B) we cling to institutions dedicated to making sure we never find out.

As William Edwards Deming famously demonstrated, no system can understand itself, and why it does what it does, including the American social system. Not knowing shit about why your society does what it makes for a pretty nasty case of existential unease. So we create institutions whose function is to pretend to know, which makes everyone feel better. Unfortunately, it also makes the savviest among us — those elites who run the institutions — very rich, or safe from the vicissitudes that buffet the rest of us.

Directly or indirectly, they understand that the real function of American social institutions is to justify, rationalize and hide the true purpose of cultural behavior from the lumpenproletariat, and to shape that behavior to the benefit of the institution’s members. “Hey, they’re a lump. Whaddya expect us to do?”

Doubting readers may consider America’s health institutions, the insurance corporations, hospital chains, physicians’ lobbies. Between them they have established a perfectly legal right to clip you and me for thousands of dollars at their own discretion. That we so rabidly defend their right to gouge us, given all the information available in the digital age, mystifies the world.

Two hundred years ago no one would have thought sheer volume of available facts in the digital information age would produce informed Americans. Founders of the republic, steeped in the Enlightenment as they were, and believers in an informed citizenry being vital to freedom and democracy, would be delirious with joy at the prospect. Imagine Jefferson and Franklin high on Google.

The fatal assumption was that Americans would choose to think and learn, instead of cherry picking the blogs and TV channels to reinforce their particular branded choice cultural ignorance, consumer, scientific or political, but especially political. Tom and Ben could never have guessed we would chase prepackaged spectacle, junk science, and titillating rumor such as death panels, Obama as a socialist Muslim and Biblical proof that Adam and Eve rode dinosaurs around Eden. In a nation that equates democracy with everyman’s right to an opinion, no matter how ridiculous, this was probably inevitable. After all, dumb people choose dumb stuff. That’s why they are called dumb.

But throw in sixty years of television’s mind puddling effects, and you end up with 24 million Americans watching Bristol Palin thrashing around on Dancing with the Stars, then watch her being interviewed with all seriousness on the networks as major news. The inescapable conclusion of half of heartland America is that her mama must certainly be presidential material, even if Bristol cannot dance. It ain’t a pretty picture out there in Chattanooga and Keokuk.

The other half, the liberal half, concludes that Bristol’s bad dancing is part of her spawn-of-the-Devil mama’s plan to take over the country, and make millions in the process, not to mention make Tina Fey and Jon Stewart richer than they already are. That’s a tall order for a squirrel brained woman who recently asked a black president to “refutiate” the NAACP (though I kinda like refutiate, myself). Cultural stupidity accounts for virtually every aspect of Sarah Palin, both as a person and a political icon. Which, come to think of it, may be a pretty good reason not to “misunderstimate” her. After all, we’re still talking about her in both political camps. And the woman OWNS the Huffington Post, fer Christsake. Not to mention a franchise on cultural ignorance.

Cultural stupidity might not be so bad, were it not self-reproducing and viral, and prone to place stupid people in charge. All of us have, at some point, looked at a boss and asked ourselves how such a numb-nuts could end up in charge of the joint.

In my own field, the book biz, the top hucksters in sales and marketing, car salesman with degrees, are put in charge of publishing the national literature. Similarly, ex-Pentagon generals segue from killing brown babies in Iraq into university presidents and CEOs. Conversely, business leaders such as Donald Rumsfeld who fancy themselves as battlefield commanders and imagine their employees as troops to be “deployed,” find themselves happily farting behind Pentagon desks. On the strength of having mistaken Sun Tzu’s The Art of War as a business text, they get selected by equally delusional national leaders to make actual war on behalf of the rest of us.

But the most widespread damage is done at more mundane operational levels of the American empire, by clones of the over promoted asshole in the corner office where you work. At least one study demonstrated that random selection for corporate promotions offset the effect significantly. Research again confirms what is common knowledge around every workplace water cooler in the country.

SAVE MY SPOT IN THE GULAG, I’M OFF TO WAL-MART

Cultural ignorance of one sort or another is sustained and nurtured in all societies to some degree, because the majority gains material benefit from maintaining it. Americans, for example, reap huge on-the-ground benefits from cultural ignorance — especially the middle class Babbitry — from cultural ignorance generated by American hyper-capitalism in the form of junk affluence.

Purposeful ignorance allows us to enjoy cheaper commodities produced through slave labor, both foreign, and increasingly, domestic, and yet “thank god for his bounty” in the nation’s churches without a trace of guilt or irony. It allows strong arm theft of weaker nations’ resources and goods, to say nothing of the destructiveness of late stage capitalism — using up exhausting every planetary resource that sustains human life.

The American defense, on those rare occasions when one is offered, runs roughly, “Well you commie bastard, I ain’t ever seen a sweatshop and I got no Asian kids chained in the basement. So I’ve got what the guvment calls plausible deniability. Go fuck yerself!”

Uh, don’t look now, but the banksters own your ass, your country has become a work gulag/police state and the most of the world hates you.

Such a thriving American intellectual climate enables capitalist elites to withhold and ration vital resources like health care simply by auctioning it off to the richest. Americans fail to grasp this because the most important fact (that a helluva lot of folks can’t afford to bid, and therefore get to die early) never gets equal play with capitalist political propaganda, to wit, that if we give free medical attention to low income cleft palate babies, a wave of Leninism will seize the nation. That is cultural ignorance. We breathe the stuff every day of our lives.

But when Americans too poor to buy health care nevertheless vote to retain the corporate auction process, that is cultural stupidity.

(Let us now pause to clutch our hair in our fists and scream AAAAAAGGGGGHHHHH!)

Like the old song says, “Them that don’t know don’t know they don’t know.” I venture to say that even if they did, they would not know why. Primary truths elude us because of the junk affluence and propaganda. We get buried under a deluge of commodities that suggest we are all rich, or at least richer than most of the world. A mountain range of cheap shoes, cars, iPods, ridiculous amounts of available foodstuffs, and the entire spectacle of engorgement defines, and is enforced as, “quality of life” under materialistic commodities capitalism. The goods we have in our clutches trump the philosophical, or even the most practical considerations. “I may die early eating unidentified beef byproducts soaked in waste chemicals, but I’ll die owning a 65-inch HDTV and a new five speed automatic Dodge Durango with a 5.7 L Hemi V8 under the hood!”

Even the threat of toasting planetary life is not enough to shake Americans loose from this disconnect. As Professor Emeritus of Natural Resources and Ecology & Evolutionary Biology Guy R. McPherson points out, “79.6% of respondents to a Scientific American poll are unwilling to forgo even a single penny to forestall the risk of catastrophic climate change. Scientific American readers undoubtedly are better informed than the general populace. And yet they won’t pay a thing to avoid extinction of our species. Kinda makes you warm and fuzzy all over, doesn’t it?”

Let us pray the next generation is a tad sharper.

TASER THE TOTS

The “American Lifestyle,” increasingly suspect as it is these days, is heavily soldiered and policed in the name of keeping we self-defined lotus eaters safe and secure from a jealous outside world. Which according to cultural consensus is a world that is at this very moment is stuffing its under drawers with explosives and buying plane tickets to Moline. Cultural ignorance dictates that the best way to stop foreign terrorists flying into the country is by humiliating American citizens flying out of the country. Go ahead, grope me, X-ray my dick and for god sake don’t let anyone bring a large bottle of shampoo on board. In an obedient, authority worshipping police state, physical insult and surveillance are proof of safety.

It’s profitable too, and not just for scanner manufacturers. The brouhaha over body scanners and crotch groping provide media with titillating fuel for ratings, thereby driving up TV advertising rates, which is passed on in the price of products we buy. So we pay to be insulted, have the hell scared out of us, and to unknowingly have our behavior shaped. Under American style capitalism, this mobius strip of cultural ignorance is called a win-win situation for everybody.

This also conveniently distracts us from the everyday human insult we practice on one another, as a result of state manufactured cultural misinformation — fear. Ten years of orange alerts and post 9/11 fear mongering have led us to draw some paradoxical cultural conclusions.

Let us briefly careen off into one of these paradoxes. For instance, that we can taser our way to domestic security and tranquility. Yes, it’s ugly business, but tasing the citizenry must be done. And besides, in these days of high unemployment, it’s a paycheck for somebody — usually, the guy who sat behind us in grade school happily eating chalk.

With taser packing police officers in thousands of schools, even grade schools (a weird enough cultural statement to begin with — needless to say, the resulting deaths and injuries of school kids have personal injury lawyers shouting eureka and contemplating new recreational sail craft moored at Martha’s Vineyard. Such are the rewards of righteous works through cult-ig.

In any case, the chance at a juicy lawsuit is accepted as a satisfactory offset to any screaming and writing in our school hallways. What are 50,000 volts and a little nerve damage, compared to a shot at paying off the credit cards, upgrading the family ride, and maybe remodeling the kitchen too?

But we gotta stick to the subject of cultural ignorance here, mainly because I wrote the title first and am determined to maintain some illusion of a theme here, or at least bullshit the reader into thinking that I have.

Soooo . . .

It can be safely said that cultural ignorance consists of the rational, sensible questions that never get asked. But it also includes the weird ones that are. For instance, one of the questions asked regarding tasering school kids is: What is the allowable weight range of a child to be tased? (Taser manufacturers say 60 pounds.) Somehow, by this geezer’s prehistoric reasoning, that sounds like the wrong question, not to mention one that by its nature leads us away from the cultural truth.

The truth is that we live in a society which sanctions semi-electrocution of its own children on the grounds that it is not fatal, and therefore not true electrocution. It springs from the same streak of cultural cruelty that deems semi-drowning by water boarding not to be torture because it is seldom fatal.

This is not to be uncharitable to American communities willing to pony up tax money for school tasers. They’ve amply demonstrated their affectionate commitment to their children by bringing creationism and pizza-for-breakfast into the schools. But there remains the question, “What kind of community comes up with the idea of tasering its own children?”

THE INFORMATION RACKETEERS

It is the job of our combined institutions to manage cultural information so as to deny the harmful aspects of the rackets they protect through legislation and promote through institutional research. That’s why research shows that cell phone microwaves cause long term memory loss in rats, but do not harm people. Evidently, we are of different, more bullet proof mammalian material.

Our hyper capitalist system, through command of our research, media and political institutions, expands upon and disseminates only that information which generates money and transactions. It avoids, neglects or spins the hell out of information that does not. And if none of those work, the info is exiled to some corner of cyberspace such as Daily Kos, where it cannot change the status quo, yet can be ballyhooed as proof of our national freedom of expression. Here come the rotten eggs from the Internet liberals.

Cyberspace by nature feels very big from the inside, and its affinity groups, seeing themselves in aggregate and in mutual self reference, imagine their role bigger and more effective than it is. From within the highly directed, technologically administrated, marketed-to and propagandized rat cage called America, this is all but impossible to comprehend. Especially when corporate owned media tells us it is.

Take the world recent shaking WikiLeak’s “revelations” of Washington’s petty misery and drivel, which are scarcely revelations, just more extensive details about what we all already knew. Come on now, is it a revelation that Karzai and his entire government is a nest of fraudulent double-crossing thieves? Or that the US is duplicitous? Or that Angela Merkel is dull? The main revelation in the WikiLeaks affair was the U.S. government’s response — which was to bring US freedom of speech policy firmly in line with China’s. Millions of us in cyber ghettoes saw it coming, but our alarm warnings were shouted inside a cyberspace vacuum bell jar.

Bear in mind that I am writing this from outside the US borders and media environment, where people watch the WikiLeaks story unfold more in amusement than anything else.

The WikiLeaks affair is surely seismic to those whose asses ride on the elite diplomatic intrigues. But in the big picture it will not change the way the top lizards in global politics, money and war have done business since the feudal age — which is to say with arrogant disregard for the rest of us. Theirs is an ancient system of human dominance that only shifts names and methodologies over the centuries. Two years from now, little will have changed in the old, old story of the powerful few over the powerless many. In this overarching drama, Obama, Hillary and Julian Assange are passing players. Watching the sweaty, fetid machinations of our overlords with such passionate involvement only keeps us from seeing the big picture — that they are the players and we are the pawns.

Still, I for one am in favor of giving Assange the Médaille militaire, the Noble Prize, 15 virgins in paradise and a billion in cash as a reward for his courage in doing damned well the only significant thing that can be done at this time — momentarily fucking up government control of information. But “potentially stimulating a new age of U.S. government transparency,” (BBC) it ain’t.”

Which brings us to back to the question of cultural ignorance. For ten points, why was Julian Assange forced to do what the world press was supposed to be doing in the first place?

Bulletin: PayPal has caved to government pressure to pull WikiLeak’s PayPal account for contributions. However, the feds generously let PayPal keep its porn and prostitution clients.

THE TRANSPARENCY SCAM

It is a form of cultural ignorance to believe that at some point or other, we were more in charge and that our government was somehow more transparent in the past. Societies declining into obsolescence understandably resist looking forward, and hang onto their past mythologies. Consequently, both liberals and conservatives in America feed on myths of political action which died in Vietnam. The results are ludicrous. Tea Partiers attempt to emulate the 1960s protest gatherings by staging rallies sponsored by the richest beneficiaries of the status quo. For the average TP participant, the goal, near as I can tell, is to “start a new American Revolution,” by wearing foodstuffs, screaming, threatening, and voting for nitwits. Media pundits proclaim the Tea Party “a historic populist movement.”

Neither populist, nor authentic movement, the Tea Party may yet prove historic, however, by seriously fucking things up more than they already are. Spun entirely from manufactured spectacle (and thus void of cohesive political philosophy or internal logic), the Tea Party lurches across the political landscape bellowing at the cameras and collecting the victims of cultural ignorance in sort of a medieval idiots crusade. But to the American public, seeing the Tea Party on television is proof enough of relevancy and significance. After all, stuff doesn’t get on TV unless it’s important.

Progressives also fancy a revolution, one in which they participate through the Internet petitions, and media events such as the risk free Jon Stewart Rally to Restore Sanity, where no one risked even missing an episode of Tremaine. Seeing people like themselves on television was proof fighting the good fight. The Stewart rally was nonetheless culturally historic; we will never see a larger public display of post modern irony congratulating itself.

In the historical view, cultural ignorance is more than the absence of knowledge. It is also the result of long term cultural and political struggle. Since the industrial revolution, the struggle has been between capital and workers. Capital won in America and spread its successful tactics worldwide. Now we watch global capitalism wreck the world and attempt to stay ahead of that wreckage clutching its profits. A subservient world kneels before it, praying that planet destroying jobs will fall their way. Will unrestrained global capitalism, with all the power and momentum on its side and motivated purely by machinelike harvesting of profits, reduce the faceless masses in its path to slavery? Does a duck shit in a pond?

Meanwhile, here we are, American riders on the short bus, barreling into the Grand Canyon. With typical American gunpoint optimism, we’ve convinced ourselves we’re in an airplane. A few smarter kids in the back whisper about hijacking and turning the bus around. But the security cop riding shotgun just strokes his taser and smiles. Not that yours truly has the ass to take on the security surveillance state. Hell no. I jumped out the window when the bus shot past Mexico.

WHAT AMERICA NEEDS IS SOME BALLS

GOP honcho Mitch O’Connell says what America needs is for Republicans to finish beating the snot out of Obama, and strengthen the already rich by eliminating taxes for them and shifting the burden onto us. Obama says America needs to find bipartisan cooperation with the party of ruthlessness. Elton John says that America needs more compassion (Thanks, we never noticed).

What America really needs is a wall-to-wall people’s insurrection, preferably based on force and fear of force, the only thing oligarchs understand. And even then the odds are not good. The oligarchs have all the legal power, police, jails and prisons, surveillance and firepower. Not to mention a docile populace.

Shy of open insurrection, a nationwide refusal to pay income taxes would certainly shake things up. But broader America is happy in the sense they know happiness as an undisturbed regimen of toil, stress and commodity consumption. Despite the way it looks in the news, most Americans remain untouched by foreclosure, bankruptcy and unemployment. So risking loss of their work-buy-sleep cycle in an insurrection looks to be sheer lunacy to them. Like cows, they are kept comfortable in the pure animal sense to be milked for profit. Animal comfort kills all thoughts of revolution. Hell, half of mankind would be thrilled with the average American’s present material situation.

And besides, revolutionary history does not exist for Americans. The 20th Century’s successful revolutions in Russia, Germany, Mexico, China, and Cuba are wired into our minds as history’s evil failures, because all but one were Marxist. (The only successful non-Marxist revolution of the 20th Century was Fidel Castro’s Cuban Revolution).

So if we are talking change through revolt, we’re necessarily talking about deconditioning because the thing we fear already has a life deep in our own consciousness. Deconditioning from cultural ignorance is at the heart of any insurrectionary politics.

Deconditioning also involves risk and suffering. But it is transformative, freeing the self from helplessness and fear. It unleashes the fifth freedom, the right to an autonomous consciousness. That makes deconditioning about as individual and personal act as is possible. Maybe the only genuine individual act.

Once unencumbered by self-induced and manufactured cultural ignorance, it becomes clear that politics worldwide is entirely about money, power and national mythology, with or without some degree of human rights. America still has all of the above to one degree or another. Yet for all practical purposes, such as advancing the freedom and the well being of its own people, the American republic has collapsed.

Of course, there is still money to be made by the already rich. So the million or so people who own the country and the government use their control to convince us that there is no collapse, just economic and political problems that need to be solved. Naturally, they are willing to do that for us. Consequently, the economy is discussed in political terms, because the government is the only body with the power to legislate, and therefore render the will of the owning class into law.

But politics and money are never going to fill what is essentially a public vacuum that is moral, philosophical and spiritual. (The latter was instantly recognized by fundamentalist Christians, disfigured by cultural ignorance, as they may be.) Not many ordinary Americans talk about this vacuum. The required spiritual and philosophical language has been successfully purged by newspeak, popular culture, a human regimentation process masquerading as a national educational system, and the ruthlessness of everyday competition, which leaves no time to contemplate anything.

Still, the void, the meaninglessness of ordinary work and the emptiness of daily life scares thinking citizens shitless, with its many unspeakables, spy cams, security state pronouncements, citizens being economically disappeared, and general back-of-the-mind unease. Capitalism’s faceless machinery has colonized our very souls. If the political was not personal to begin with, it’s personal now.

Some Americans believe we can collectively triumph over the monolith we presently fear and worship. Others believe the best we can do is to find the personal strength to endure and go forward on lonely inner plains of the self.

Doing either will take inner moral, spiritual and intellectual liberation. It all depends on where you choose to fight your battle. Or if you even choose to fight it. But one thing is certain. The only way out is in.

THE $15 TRILLION DOLLAR PARTY

2 comments

Posted on 2nd April 2012 by AWD in Economy

The party is almost over, so enjoy yourselves while you can. As Admin so eloquently wrote “you ain’t seen nothing yet”.

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The $15 Trillion Dollar Party

If you knew that you could live in luxury for the rest of your life but that by doing so it would absolutely destroy the future for your children, your grandchildren and your great-grandchildren would you do it? Well, that is exactly what we are doing as a nation. Over the past several decades, we have stolen 15 trillion dollars from future generations so that we could enjoy a dramatically inflated level of prosperity. Our 15 trillion dollar party has been a lot of fun, but what we have done to our children and our grandchildren has been beyond criminal. We ran up the greatest mountain of debt in the history of the planet and we are sticking them with the bill. Sadly, both political parties have been responsible for the big spending that has been going on. Both Democrats and Republicans have run up huge budget deficits when in power. But instead of learning the hard lessons of the past, both political parties continue to vote for even more debt. They would rather continue to steal trillions of dollars from future generations than have the party end and have to face the consequences.

And the consequences will be dramatic when the party ends. During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in 2.4 trillion dollars. That means that the U.S. government spent about 1.3 trillion dollars that it did not have. It is important to understand that even if the U.S. government spent that 1.3 trillion dollars on really stupid things, that money still got into the pockets of ordinary Americans who then spent it on things like food, gas, housing, etc. In turn, most of those that received money from providing those goods and services would spend it on other things.

So extra government spending can definitely stimulate the economy. The problem is that we have been doing it permanently. Since 1975, we have added more than 15 trillion dollars to the national debt. This has fueled a false prosperity that was way beyond what we could afford.

If the U.S. government tried to go to a balanced budget now, our standard of living would crash and there would be riots in the streets. The American people have been enjoying false prosperity for so long that they have lost any notion of what “normal” actually is.

Think of it this way. If your family makes $40,000 this year and you spend an extra $20,000 on your credit cards, your family would be enjoying a false sense of prosperity.

You could do that year after year as long as the credit card companies keep loaning you more money.

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But debt always catches up with you in the end.

It is the same thing with the United States.

We have been running up our national credit card balance and the interest payments have become quite painful.

The U.S. government spent over 454 billion dollars just on interest on the national debt during fiscal 2011.

That is 454 billion dollars that the people of the United States do not receive anything in return for.

So in order to keep up with interest on the national debt and to enjoy a standard of living that is beyond our means we now have to run deficits that are in excess of a trillion dollars every single year.

And a trillion dollars is a staggering amount of money.

If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

Since Barack Obama was elected, the U.S. government has added about 5 trillion more dollars to the national debt.

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That kind of debt is a recipe for national financial suicide.

How are we supposed to explain to our children that we are passing a debt of $15,579,852,946,457.64 down to them?

At this point, the United States government is responsible for more than a third of all the government debt in the entire world.

The 15 trillion dollar party that we have been enjoying has been amazing, but all of that debt is soon going to bring us a tremendous amount of pain.

And there is really no way out under our current financial system. As our population ages, government budget deficits are projected to spiral wildly out of control in future years.

Already, entitlement programs are starting to cause massive problems. For example, mandatory federal spending surpassed total federal revenue for the first time ever in fiscal 2011. That was not supposed to happen until 50 years from now.

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If the federal government used GAAP (Generally Accepted Accounting Principles) like all publicly-traded corporations are required to do, the situation would be much worse.

The truth is that the U.S. government never had a “balanced budget” during the end of the Clinton administration. The federal government was borrowing gigantic amounts of money from the Social Security trust fund to finance regular government operations. It was a big fraud. Under GAAP, there would have been huge budget deficits during those years.

And even under the non-GAAP numbers used by the U.S. Treasury Department, the U.S. national debt still increased every single year during the Clinton administration.

So let’s get real.

Our national financial situation has always been much worse than we have been told.

It has been estimated that our current budget deficits would be in the neighborhood of 4 to 5 trillion dollars under GAAP.

And looking down the road a bit, we are facing a tsunami of unfunded liabilities that is absolutely nightmarish.

In other words, we have committed ourselves to tens of trillions of dollars of expenses that we don’t have any money for.

According to Professor Laurence J. Kotlikoff, the U.S. is facing a “fiscal gap” of over 200 trillion dollars in the coming years. The following is a brief excerpt from a recent article that he did for CNN….

The government’s total indebtedness — its fiscal gap — now stands at $211 trillion, by my arithmetic. The fiscal gap is the difference, measured in present value, between all projected future spending obligations — including our huge defense expenditures and massive entitlement programs, as well as making interest and principal payments on the official debt — and all projected future taxes.

And it just keeps getting worse. Recently it was revealed that Obamacare will add 17 trillion dollars more to our long-term unfunded obligations.

Basically what we have done is we have committed future generations to a life of endless debt slavery to pay for our debts and for the financial promises that we have made.

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How could we be so stupid?

Of course this entire fraudulent system is going to completely collapse before we get too much farther down the road anyway. Right now the whole thing is essentially being held together by chicken wire and duct tape.

Most Americans do not realize this, but the Federal Reserve bought approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011.

Normally, the Federal Reserve is not supposed to be doing this.

But right now there are not nearly enough buyers of U.S. government debt at the super low interest rates that the U.S. government wants to pay. A recent Money News article explained that foreigners have been increasingly shying away from U.S. debt….

“In 2009, such foreign purchases of U.S. debt amounted to 6 percent of GDP and has since falled by over eighty percent to a paltry 0.9 percent.”

Instead of interest rates on U.S. Treasuries rising to attract additional investors, the U.S. Federal Reserve has been intervening to make up the difference.

This is essentially “monetizing the debt” and it is something that Ben Bernanke promised that he would never do.

But he is doing it.

If the Federal Reserve was not buying up all this debt, interest rates on U.S. debt would soar and so would U.S. government interest payments.

Yes, this is a giant Ponzi scheme and it cannot last for long.

Of course all of this could have been avoided if our politicians had not been running up such massive amounts of debt all these years.

Some have suggested that our problems could be solved by simply increasing taxes on the wealthy.

Well, the truth is that the top 5 percent of all income earners already pay nearly 50 percent of all federal taxes and soaking them even more will not even come close to solving the federal budget crisis.

For example, if Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.

And as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

So taxing the wealthy will certainly not solve all of our problems.

In fact, when you tax the wealthy and the “somewhat wealthy” it slows economic growth in a number of different ways.

Number one, they have less money to spend into the economy.

Number two, they have less money to invest in business activities.

Number three, it gives wealthy individuals and corporations more of an incentive to move out of the United States. As I have written about previously, the global elite are already hiding about 18 trillion dollars in offshore banks. The U.S. government keeps trying to tap into all of that offshore wealth, but the elite always seem to be a few steps ahead of the game.

Yes, we should try to close loopholes in the tax system, but the truth is that the root cause of our problem is that the federal government is simply spending way, way too much money.

Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.

But our politicians always want to put off spending cuts for another day because they know that immediate spending cuts would really hurt the economy.

For example, just check out this recent quote from White House Chief of Staff Jack Lew….

“The time for austerity is not today,” Lew told NBC News “Meet the Press.” “If we were to put in austerity measures right now, it would take the economy in the wrong way.”

Yes, the Obama administration definitely does not want to hurt the economy with an election coming up in a few months.

So when will it be time to seriously cut government spending?

The day never seems to arrive.

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But even though the federal government has been pumping more than a trillion extra dollars into the economy every year, the economy has not shown much improvement. The percentage of working age Americans that have jobs has barely budged for over two years.

Yes, the policies of the Obama administration have stabilized the U.S. economy for the moment, but if he was actually going to tell the truth he would say something like this….

“By mortgaging the future of our children and our grand-children I have stabilized our economic statistics for the short-term. Unfortunately, I am going to have to continue to financially abuse future generations to keep us from falling into another Great Depression. Meanwhile, I am making our long-term financial problems far, far worse. But the most important thing is that I win re-election so that I can continue to be president. Thank you for being so selfish and so willing to destroy the future of your children. Vote for me in 2012 and let the party continue!”

Unfortunately, the party is going to come crashing to an end at some point.

Right now, the global financial system is based on the U.S. dollar and on U.S. government debt.

There will come a time when the rest of the world is going to get sick and tired of watching this Ponzi scheme play out and they are going to completely lose faith in the U.S. dollar and in U.S. government debt. In fact, there are already signs that this is starting to happen.

When faith in our currency and our debt is completely gone, it will be nearly impossible to get back and the game will be over.

The false prosperity that we are experiencing right now is about as good as things are going to get.

Enjoy it while you still can, because when it is gone that will be the end of it.

Both the Democrats and the Republicans have failed us. They played fast and loose with our future and they never planned for the long-term.

Now we are facing a collapse of unprecedented magnitude that most Americans will never even see coming.

A horrifying economic collapse is coming.

You better get ready for it.

Oops, too late for the voice of reason…
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 http://theeconomiccollapseblog.com/archives/the-15-trillion-dollar-party



Gridlock in D.C.

10 comments

Posted on 15th March 2012 by Administrator in Economy |Politics |Social Issues

By the Editors of The Casey Report, Casey Research

The first session of this 112th Congress was spent with Democrats and Republicans at loggerheads over the debt ceiling, taxes, spending cuts, the deficit super committee, appropriations bills and finally the extension of unemployment compensation and a two-month extension of the payroll tax cut. Standard and Poor’s downgrade of the United States’ federal debt was due in part to all the haggling over how, and actually whether, to reduce the debt.

No One Is Willing to Pay the Political Price to Cut Spending

This year Obama asked Congress for, and was given, an additional $1.2 trillion of borrowing authority, which will increase the debt limit to $16.4 trillion, just enough to get him past the 2012 election. It could be close, however. If budget projections prove to be overly optimistic, Obama could face another cliffhanger over a further increase in the debt ceiling in the midst of the presidential election in November. How embarrassing to have to say “re-elect me – and by the way, I need to borrow some more money to pay this month’s bills.”

President Barack Obama

Sometime early in January, the US crossed the line at which its national debt exceeds its gross domestic product of $15.1 trillion. Each party blames the other, but in truth, almost no one in the federal government is willing to bite the bullet and make necessary cuts. Everyone hopes someone else’s ox will be gored.

The federal government’s expenditures have been exceeding its revenues by about $107 billion per month so far in fiscal year 2012. At that rate, there will only be about $100 billion of this additional $1.2 trillion of borrowing authority left come November. That’s not much breathing room.

After the Republican-controlled House of Representatives voted to reject the president’s request for authorization to borrow another $1.2 trillion, House Speaker John Boehner (R-OH) said the vote “is an indictment of the administration’s reckless spending binge that has driven America’s economy down a disastrous fiscal path … the most rapid increase in debt under any US president.” Boehner noted that the national debt has increased more than $4.6 trillion since Obama took office.

While the House vote may seem like an encouraging gesture, it is ultimately irrelevant. Under the deal cut last summer, a majority of both houses of Congress would be required to block the debt limit increase, but even then the president could veto it. Simply, if the Democrat Senate joined the House in rejecting the increase, there’s no way a 2/3 majority of both houses could have been summoned to override a presidential veto.

At Loggerheads

Both parties accuse the other of obstruction. Senate Majority Leader Harry Reid (D-NV) observed that “we’ve spent months on things that used to happen just matter-of-factly.” He added that “the Senate works on consensus, and we haven’t been able to get that because the Republicans [are engaged in] obstructionism on steroids.” He accused Republicans of using Senate rules friendly to the minority, namely the filibuster, to thwart his agenda. On the other hand, John Boehner’s spokesman, Michael Steel, said “the House passed nearly 30 jobs bills with bipartisan support, but Senate Democratic leaders have refused to act.” Representative Pat Meehan (R-PA) said that if only the Democrat-controlled Senate and President Obama would work with Republicans, Congress could “end the gridlock and get our economy moving… Our economy faces serious challenges right now – gridlock in Washington doesn’t have to be one of them.”

Obfuscation

A recent Gallup poll gives Congress a bipartisan approval rating of only 13%. This exasperation with Congress is certainly tied to gridlock and obstruction, but we are also faced with so much obfuscation that there is no telling who is at fault.

For example, a bill to extend the two-percent payroll tax cut for a full year was passed by the Republican-led House, but not by the Democrat-controlled Senate. The tax cuts were to expire on December 31, 2011. Both parties had attached other provisions or qualifications to their versions of the legislation that the other party in turn opposed. Yet both parties tried to gain political points by accusing the other of simply opposing extending the payroll tax cut. For example, House Minority Whip Steny Hoyer (D-MD) accused: “You’re walking out, you’re walking away, just as so many Republicans have walked away from middle-class taxpayers.”

House Minority Whip Steny Hoyer

But in reality, the Republicans were proposing to extend the tax cuts for a full year, and Hoyer’s party proposed extending for only two months. Obfuscation at its finest.

Legislative Futility

Since 1947, the Congressional Record has included the Résumé of Congressional Activity at the end of each year. The Washington Times recently analyzed these reports and concluded that “Congress set a record for legislative futility by accomplishing less in 2011 than any other year in history.” What was accomplished consisted mostly of things like naming post offices and extending existing laws. The House and Senate often failed to reach agreement in conference, and the Senate often failed to reach agreement within its own chamber. Hoyer said 2011 was “as unproductive a session as I have served in since I came to Congress 30 years ago.”

The Senate continues to abdicate its responsibilities by failing to unveil a budget rather than risk putting forward a plan that results in political backlash in an election year. Sarah Binder, both of Brookings Institute and a professor at George Washington University, observed that it’s hard to get things done “when revenues aren’t growing and the decisions are how to cut, and how to cut long term.” She said that it is harder for Congress to compromise on spending quarrels “because the two parties are drastically opposed on fundamental principles.”

There’s little hope in the near future; this second session of the 112th Congress will suffer from election-year paralysis. Senator Joe Manchin (D-WV) said of gridlock in the coming year: “You think this is bad? You ain’t seen nothing yet.” As a candidate in 2008, Obama promised to transcend partisanship. Instead, Congress and the nation seem more polarized than ever.

Embracing Gridlock

Gridlock may be the nation’s salvation, an encouraging sign that the ever-expanding leviathan is collapsing under its own weight. Robert Heinlein would undoubtedly welcome the gridlock we see today on Capitol Hill. In The Moon Is a Harsh Mistress, Heinlein’s character, Professor Bernardo de la Paz, advises a constitutional committee as follows:

I note one proposal to make this Congress a two-house body. Excellent, the more impediments to legislation the better. But, instead of following tradition, I suggest one house legislators, another whose single duty is to repeal laws. Let legislators pass laws only with a two-thirds majority … while the repealers are able to cancel any law through a mere one-third minority. Preposterous? Think about it. If a bill is so poor that it cannot command two-thirds of your consents, is it not likely that it would make a poor law? And if a law is disliked by as many as one-third, is it not likely that you would be better off without it?

Gridlock by design? He was on to something. Here’s to hoping they don’t find a solution.

[Misleading rhetoric can be found practically anywhere someone wants something from another. Download a free report on the top ten misleading ETFs to avoid putting your investment funds in an undesirable place.]



 

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