SHADES OF 1929

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Posted on 18th April 2013 by Administrator in Economy |Politics |Social Issues

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For those not paying attention, we have entered a global deflationary depression. The nutjobs running the world’s central banks and the moronic politicians elected by the sheep have tried Keynesian fiscal pork, zero interest rates, fraudulent accounting, printing money at hyper-speed, propaganda, austerity for the peasants, bonuses for the criminal bankers and crony capitalism for the super rich. It is five years later and it hasn’t worked. The grand experiment has failed. Bernanke and Krugman’s theories have been discredited. The world is on the edge. Bad shit is happening. Behind the scenes, the oligarchs are panicked and scrambling to retain their wealth and power. They are criminally inept. Their solution will be to accelerate what has already failed. This is how deflationary depressions turn into hyper-inflationary collapses. The massive buying of physical gold and silver by individuals and Far East countries is rational and prudent. The oligarchs won the battle in the past week. They may win a few more battles, because they have many weapons, but they will lose the war. This Fourth Turning is about to get really interesting.  

Fed and Bank of Japan caused gold crash

Commodity prices have been falling since September, culminating in a rout over the past two weeks. That is a classic warning for the global economy.

Traditionally shaped pure raw gold bars stacked in a secure bullion room safe

By

7:22PM BST 17 Apr 2013

It is becoming ever clearer that the roaring boom in global equities since last summer has priced in an economic recovery that does not in fact exist. The International Monetary Fund has had to nurse down its global growth forecasts yet again. We are still stuck in an old-fashioned trade depression, with pervasive over-capacity in manufacturing plant and a record global savings rate of 25pc of GDP.

German car sales fell 17pc in March. That should puncture the last illusions that Germany is about to pull Europe out of a self-inflicted slump.

As you can see from the chart below, the divergence between stock markets and the Deutsche Bank index of raw materials is astonishing to behold, so like the pattern in early 1929.

Steel has fallen 31pc this year. Brent crude is off 17pc since early February, and copper 15pc.

You have to be careful reading too much into commodities, distorted by China. The time-honoured cycle is a surge of investment that comes on stream at once with a lag. America’s shale drive has turned the gas market upside down, diverting liquefied natural gas to Europe and Asia. Copper output in Chile rose 7pc last year. The crash in the Baltic Dry Index for shipping rates is partly a tale of too many ships.

Yet excess supply does not explain the collapse in gold over the past week. Cyprus may have been an incidental trigger. If the EU-IMF Troika is determined to strong-arm the Cypriots into selling most of their pint-sized holding of 14 tonnes, it may do the same to Portugal when the time comes, and then you are talking about the world’s 14th biggest holding of 382 tonnes.

Bank of America says the gold crash since Friday has already discounted sales of the entire Cypriot, Portuguese and Greek gold reserves combined. “As we believe additional gold selling in the European periphery is highly unlikely, we find it hard to fully justify the sell-off,” it said.

The central banks of China and the emerging powers bought 535 tonnes last year to escape dollars and euros, the biggest wave of state purchases since 1964. Their strategy is to buy the dips, and they are no fools. The head of China’s reserve manager “SAFE” used to run a US hedge fund.

They won’t try to catch a “falling knife”, prefering to wait until the dust settles. The upward trend of the great bull market has been broken. The technical damage is brutal. Bank of America expects a further drop to $1,200. Be patient.

My view is that the US Federal Reserve and the Bank of Japan “caused” the gold crash. The rest is noise. The Fed assault began in February when it published a paper warning that the longer quantitative easing continues, the harder it will be for the bank to extricate itself.

The report was co-written by former Fed governor Frederic Mishkin, often deemed Ben Bernanke’s “alter ego”. It said the Fed’s capital base could be wiped out “several times” once borrowing costs climb. The window will start shutting by 2014, with trouble then compounding at a “dramatic” pace.

This was a shock. It suggested that the Fed has lost its nerve, and will think long and hard before launching a fresh blitz of money if growth falters.

Then came last week’s Fed Minutes, with hints of tapering off QE earlier that expected. That was the next shock. What they seemed to be saying is that the US economy is groping it way back to normality, that the era of silly money is over, that the dollar will stand tall again.

If that were the case, gold should fall. But it is not the case. The US economy is growing below the Fed’s own “stall speed” indicator. Half a million people fell out of the workforce in March. Retail sales fell in March. So did manufacturing.

The US faces fiscal tightening of 2.5pc of GDP this year, the most since 1946. Ex-labour secretary Robert Reich said the effects have been disguised so far, but a “stealth sequester” is just starting: $51m of grant cuts to Brandeis university; $1m for schools in Syracuse; and so on, the reverse of the stealth stimulus before.

My guess is that the Fed will be forced to row back smartly from its exit talk, but first we must look deflation in the eyes.

As for the Bank of Japan, it had been assumed that the colossal monetary stimulus of Haruhiko Kuroda would revive the yen-carry trade, leaking $1 trillion into world asset markets. But the early evidence is the opposite. Japanese investors brought money home last week.

“Mrs Watanabe” is selling her Kiwi and Aussie bonds to bet on stocks and property at home. And she is selling gold like never before. That too is a shock.

Japan’s “Abenomics” may prove a net drag on the world over coming months. It is exporting deflation through trade effects. This already visible in Korea and China, where soaring wages have eroded competitiveness. “Investors may have forgotten that yen weakness was one of the immediate causes of the 1997 Asian currency crisis and Asia’s subsequent economic collapse,” said Albert Edwards from Societe Generale.

China’s growth rate fell to 7.7pc in the first quarter. It will fall further, though the catch-up boom in the hinterland cities of Chengdu, Chonquing, Changsa and Xi’an may have further to run.

Fitch Ratings says credit has surged from €9 trillion to €23 trillion over the past four years, a rise equal to the entire US banking system. Beijing pumped up loans yet again after its recession scare in the summer, but is gaining less traction. The GDP growth effect of credit has halved. It is the classic sign of an economy sated on debt. China too will have to deleverage.

The world is still in a contained depression. Sliding commodities tell us global money is if anything too tight. “There is a threat of deflation almost everywhere. A lot of central banks will have to follow the Bank of Japan, whatever they say now,” said Lars Christensen form Danske Bank

The era of money printing is young yet. Gold will have its day again.

 

CONSUMER CONFIDENCE PLUNGES – HOME PRICES FALL – BUY STOCKS!!!!!

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Posted on 29th January 2013 by Administrator in Economy |Politics |Social Issues

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The consumer confidence index was 61 in September 2008 as the country was about to experience the greatest economic collapse since the Great Depression. This morning it plunged to 58.6 as people realized that taxing the rich meant them. They also realized they are stuck with Obama as President for the next four years. They also realized that Obamacare is going to cost them a shitload of money and decrease their level of medical care. They also realize that gas prices aren’t dropping and food prices keep rising. They also realize that $1 trillion of deficits per year will eventually destroy the country. Anyone who is confident about the direction of this country is either on drugs or thinks Paul Krugman is brilliant.

The housing recovery storyline keeps taking hits as new home sales fell, pending home sales fell and now prices have fallen two months in a row.

Reality is a bitch. But don’t worry. The talking head bimbos and shysters say it’s the best time to buy stocks and houses.

Consumer confidence drops in January

WASHINGTON (MarketWatch) — A gauge of consumer confidence dropped in January to the lowest level since November 2011 on lower expectations and gloomier views of the present situation, according to data released Tuesday. The Conference Board said its consumer-confidence index dropped to 58.6 in January, missing analysts’ estimates of 64.3, from an upwardly revised 66.7 in December. A prior December estimate pegged the level at 65.1. “Consumers are more pessimistic about the economic outlook and, in particular, their financial situation,” said Lynn Franco, economic indicators director at the Conference Board. “The increase in the payroll tax has undoubtedly dampened consumers’ spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.” Generally when the economy is growing at a good clip, confidence readings are at least 90. The Conference Board’s barometer of consumers’ expectations fell to 59.5 in January from 68.1 in December. The expectations gauge has dropped 30% in the last few months, with protracted fiscal negotiations among U.S. lawmakers taking a toll, among other factors. Meanwhile, the Conference Board’s gauge of views on the present situation dropped to 57.3 in January from 64.6 December.

 

Home prices decline in November, Case-Shiller says

WASHINGTON (MarketWatch) — U.S. home prices declined in November on seasonal weakness, with 10 of 20 cities seeing lower prices in the month, according to the S&P/Case-Shiller home-price index released Tuesday. The S&P/Case-Shiller 20-city composite posted a non-seasonally adjusted 0.1% decrease in November following a 0.2% decline in October. “Winter is usually a weak period for housing which explains why we now see about half the cities with falling month-to-month prices compared to 20 out of 20 seeing rising prices last summer,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

DUMBASSES ABOUND

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Posted on 28th January 2013 by Administrator in Economy |Politics |Social Issues

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Some ideas are so stupid, only a “highly educated” person could believe them. Mish heaps scorn and ridicule upon one of these Ivy League douchebags.

 

“Libertarian Turned Keynesian” Responds

In response to How to Debate Paul Krugman: “Ask Questions Like a Child”, a self-proclaimed “Libertarian Turned Keynesian”, a graduate of Columbia University, writes …

Hello Mish

I want you to publish this rebuttal to your post.
You can use my first name if you’d like with Libertarian-turned-Keynsian in brackets.

Let’s say there are 8 million healthy, unemployed people in US.

The Treasury can simply print 4 million pieces of IOU claiming that the holder of this piece of paper is entitled to a free massage or a free cleaning services or free haircut or free baby-sitting or free moving (basically any service worth $50 with negligible raw material) from another unemployed person and simply distribute it to unemployed people.

What happens? On Day 1, the 4 million who got the coupons tender their coupons and receive services (increase in daily GDP 4 million * 50 == 200 Million).

On Day 2, the opposite happens and this goes on quite a while. Now, lets say the economy improves and 2 Million get employed. Now essentially we have 1 Million extra coupons (inflation). Treasury will tax the lucky/rich people who have a job and a coupon and essentially retire them.

Or, let’s say the economy deteriorates and 2 more more million get unemployed. Now there are few coupons and some may be willing to do the job for 3/4th of a coupon (deflation). Now essentially Treasury can print extra 1 million and distribute them.

Notes:

1) We need flexible money supply.
2) Having gold standard is stupid. What does amount of gold supply have to do with anything?
3) We increased GDP by simply printing pieces of paper.

Bonus:

Let’s say someone comes with a brilliant idea that one unemployed can actually perform two jobs a day. Now instantly the capacity doubled and Treasury can print double the amount of IOUs.

So Ridiculous I Hardly Know Where to Start

I did not post the first name of “Libertarian Turned Keynesian” on purpose. His name was unusual enough that he could be found.

The above response is clearly absurd. I reply only because it is precisely the kind of “something for nothing” silliness that is frequently taught in higher education.

  1. Any person with a modicum of common sense, at any education level beyond 7th grade, should understand what happens to demand as soon as free money stopped.
  2. Any person with a modicum of common sense, at any education level beyond 7th grade, should understand costs of goods and services would soar if free money was handed out in any significant amount.
  3. Any college graduate should understand the difference between nominal GDP and “real” inflation adjusted GDP.
  4. Any college graduate should understand what happened in Zimbabwe and Weimar Germany.
  5. Any person with any amount of common sense should understand it’s what you get for your money, not how much you have, that matters.

Ignoring the typos, clearly the writer has absolutely zero sense of the difference between nominal GDP and wealth. In nominal terms (using the number of Zimbabwe dollars in circulation as “wealth”), Zimbabwe was economically the strongest country in the world.

Unfortunately, they cannot teach common sense in schools. Instead they teach Keynesian claptrap. Then economically illiterate graduates write me things similar to the above. This kind of thing happens all the time, frequently with emails ending in “.EDU”.

Addendum: Spare the Monetarists?

Reader Ayal asks “You target your attacks at Keynes and Keynesians, but why do you spare the Monetarists?”

The simple answer is I don’t. Bernanke is primarily a monetarist with some Keynesian tendencies as well.  QE is 100% monetarism and I attack that all the time.

Countless times I have pointed out that Japan tried both monetary and fiscal stimulus and failed. One can also search my blog for Greg Mankiw, the high priest of monetarism to see what I have to say.

If I had to pick one article in that search reference to read, it would undoubtedly be Modern Day Fairy Tale of 3 Economic Wizards (Except It’s True)

Comment

It’s quite shocking  what comes out of our education system. Of course, what comes out is hugely influenced by economically illiterate teachers at the highest levels in education.

Addendum 2: Not a Hoax

Several people suggested the email was a hoax. 

It’s not. I have additional correspondence with this person thanking me for not using his name. And a Google check of his name with numerous references ties back to Columbia.

Mike “Mish” Shedlock
 http://globaleconomicanalysis.blogspot.com

Read more at http://globaleconomicanalysis.blogspot.com/#bhi3yBrBGz5EXBDe.99

V FOR VENDETTA – 2011(Oldie but Not Goodie)

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

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It has been almost two years since I whipped this article out in a one day sleepless frenzy. I was then reminded of it by the BART incident, the London riots and the indictment of the Tea Party as terrorists by the liberal MSM and Democratic politicians in the summer of 2011, so I posted it again . There were calls for civility that week. I knew it wouldn’t happen. Now the horrific mass murder in Connecticut brought it back to my mind again. This Fourth Turning gets worse by the day.

 

Remember remember the fifth of November
Gunpowder, treason and plot.
I see no reason why gunpowder, treason
Should ever be forgot…

 

After the horrific mass murder in Tucson yesterday I had trouble sleeping last night. When my mind gets overloaded, I can’t sleep. I came downstairs at 3:30 am and for some reason decided now was the time to watch the movie V For Vendetta. Many people had recommended this movie over the years, but I had never gotten around to it. Well, on the day after the attempted assassination of a Congresswoman and murder of six others, including a Federal Judge, this movie provided a vision into what could happen next in this country.

The 2006 movie centers around a man wearing a Guy Fawkes mask who refers to himself as V.  He is a bold, charismatic freedom fighter driven to exact revenge on those who disfigured him.  The film is an allegory of oppression and coercion by government. It is a declaration against government intervention into the lives of the citizens. He blows up the Old Bailey on November 5, Guy Fawkes Day. He promises to blow up Parliament one year later on the 5th of November. His speech at the beginning of the movie, broadcast to all of England, explains what happened in a fictional England and what is happening here:

“Good evening, London.

Allow me first to apologize, for this interruption. I do, like many of you, appreciate the comforts of everyday routine, the security, the familiar, the tranquility, repetition… I enjoy them as much as any bloke. But in the spirit of commemoration, whereby those important events of the past, usually associated with someone’s death or the end of some awful, bloody struggle, are celebrated with a nice holiday, I thought we could mark this November the 5th, a day that is certainly no longer remembered, by taking some time out of our daily lives to sit down and have a little chat.

There are, of course, those who do not want us to speak. I think that even now orders are been shouted into telephones and men with guns will soon be on their way. Why? Because when the truncheon maybe used in lieu of conversation, words will always retain their power. Words offer the means to meaning, and for those who would listen, the enunciation of the truth. And the truth is, there is something terribly wrong with this country, isn’t there?

Cruelty and injustice, intolerance and oppression, and where once you had the freedom to object, to think and speak as you saw fit, you now have censors and systems of surveillance coercing your conformity and soliciting your submission? How did this happen? Who’s to blame? Well certainly there are those who are more responsible than others, and they will be held accountable, but again, truth be told, if you’re looking for the guilty, you need only look into a mirror.

I know why you did it. I know you were afraid! Who wouldn’t be? War, terror, disease… There were a myriad problems that conspired to corrupt your reason and rob you of your common sense. Fear got the best of you, and in your panic, you turned to the now High Chancellor, Adam Suttler. He promised you order, he promised you peace, and all he demanded in return was your silent, obedient, consent.

Last night, I sought to end that silence. Last night, I destroyed the Old Bailey to remind this country of what it has forgotten. More than 400 years ago, a great citizen wished to embed the 5th of November forever in our memory. His hope was to remind the world that fairness, justice and freedom are more than words, they are perspectives. So if you’ve seen nothing, if the crimes of this government remain unknown to you, then, I would suggest you allow the 5th of November to pass unmarked. But if you see what I see, if you feel as I feel, and if you would seek as I seek, then I ask you to stand beside me, one year from tonight, outside the gates of Parliament, and together we shall give them a 5th of November that shall never, ever, be forgot.”

 

The movie’s central theme revolves around the 1605 Gunpowder Plot to blow up Parliament. The plot was a failed assassination attempt against King James I of England by a group of provincial English Catholics led by Robert Catesby. The plan was to blow up the House of Lords during the State Opening of Parliament on November 5, 1605, as the prelude to a popular revolt in the Midlands during which James’s nine-year-old daughter, Princess Elizabeth, was to be installed as the Catholic head of state.

  

 Guy Fawkes, who had 10 years of military experience fighting in the Spanish Netherlands in suppression of the Dutch Revolt, was given charge of the explosives. The plot was revealed to the authorities in an anonymous letter sent to William Parker, 4th Baron Monteagle. During a search of the House of Lords at about midnight on November 4, 1605, Fawkes was discovered guarding 36 barrels of gunpowder – enough to reduce the House of Lords to rubble – and arrested. He was hanged shortly thereafter. November the 5th has been celebrated ever since this event with celebrations and fireworks.

Anarchy Has Arrived

There’s no certainty – only opportunity. V - V For Vendetta

 

As I watched hour after hour of coverage about the ambush and assassination attempt on a Congresswoman from Arizona, I couldn’t help but think this could be the spark for something bigger. There were almost immediate reactions from the MSM that this murder was instigated by the Tea Party. The liberal ideologue Paul Krugman blamed the Republican Party for the murders. Apoplectic left wing faux journalist Keith Olbermann described conservative commentators as those ”who have so irresponsibly brought us to this time of domestic terrorism”. The local sheriff, an Arizona State Senator and the Congresswoman’s father all blamed the Tea Party, either directly or indirectly. Based on my reading of the murderer’s writings and youtubes, he appears to be a mentally deranged psycho. Somehow, every liberal MSM “journalist” has concluded that this was due to the contentious political atmosphere in the country. This is code for “we need less dissent”. Stop disagreeing with the Obama agenda. If you disagree, you are dangerous.

The scene in the movie that made me think of yesterday’s events was toward the end of the movie when Inspector Finch, who is trying to capture V, has a feeling about what is going to happen:

Finch: I had to see it. There wasn’t much left. But when I was there it was strange. I suddenly had this feeling that everything was connected. It’s like I could see the whole thing, one long chain of events that stretched all the way back before Larkhill. I felt like I could see everything that happened, and everything that is going to happen. It was like a perfect pattern, laid out in front of me. And I realized we’re all part of it, and all trapped by it.
Dominic: So do you know what’s gonna happen?


Finch: No, it was a feeling. But I can guess. With so much chaos, someone will do something stupid. And when they do, things will turn nasty. And then Sutler will be forced to do the only thing he knows how to do. At which point, all V needs to do is keep his word. And then…
[Dominoes collapse with TV footages showing conflicts between rioting citizens and the anti-riot police]

The line that hit me like a ton of bricks was, “With so much chaos, someone will do something stupid.” As Inspector Finch was speaking these words a scene of a policeman shooting a 10 year old girl with a Guy Fawkes Mask on is shown and then an angry mob surrounds and kill the policeman.

Yesterday, someone did something stupid. The question is what happens next.

Already, a fringe religious fanatic pastor and his followers, who have previously picketed the military funerals of Americans killed in Iraq, issued this press release:

 ”Thank God for the shooter – 6 dead! WBC will picket their funerals!”  It continues on to condemn what it condemns as violence unleashed on WBC by a “hateful nation…hoping to silence our kind warning to obey God and flee the wrath to come.”

There is one thing I’m sure about. This will not result in more civil discourse. Opposing ideologies will become further entrenched in their positions. Those who attempt to be peacemakers will be shouted down. Passions will rise as they did in the 1850s when another member of Congress was badly injured as national passions flamed over slavery.  On May 19, 1856, Senator Charles Sumner of Massachusetts, a prominent voice in the anti-slavery movement, delivered an impassioned speech denouncing the compromises that helped perpetuate slavery and led to confrontations in Kansas. Sumner singled out Senator Andrew Pickens Butler of South Carolina. Butler, who had recently been incapacitated by a stroke and was recuperating in South Carolina, was held to particular ridicule by Sumner. Sumner said that Butler had taken as his mistress “the harlot, slavery.” Sumner also referred to the South as an immoral place for allowing slavery, and he mocked South Carolina.

Preston Brooks, a member of the House of Representatives from South Carolina, was particularly incensed. Not only had the fiery Sumner ridiculed his home state, but Brooks was the nephew of Andrew Butler, one of Sumner’s targets. Brooks walked to Sumner’s desk in the Senate chamber, and reportedly said: “You have libeled my state and slandered my relation, who is aged and absent. And I feel it to be my duty to punish you.” With that, Brooks struck the seated Sumner across the head with his heavy cane. Brooks continued raining blows with the cane upon Sumner, who tried to fend them off with his arms. As might be expected, northern newspapers responded to the violent attack on the Senate floor with horror. Southern newspapers published editorials lauding Brooks, claiming that the attack was a justified defense of the south and slavery. Supporters sent Brooks new canes, and Brooks claimed that people wanted pieces of the cane he used to beat Sumner as “holy relics.”

This attack was a foreshadowing of what was to come – the deaths of 600,000 Americans in the space of four years – over 4% of the male population. Yesterday’s tragedy is another step deeper into this Fourth Turning. Every Fourth Turning has proven to be a decisive era of secular upheaval, when the values regime propels the replacement of the old civic order with a new one.

Words Matter, Ideas Can Change the World

People should not be afraid of their governments. Governments should be afraid of their people. V – V For Vendetta

 

The prior Fourth Turnings in U.S. history (American Revolution, Civil War, Great Depression/World War II) all proved to be secular upheavals of immense proportions, tore apart the existing civil order, but had numerous moments of danger and uncertainty about the future turn of events. We are six years into a twenty year Crisis saeculum. Every Crisis intensifies as time progresses to an ultimate crescendo. The initial financial crisis built to a dramatic peak in September 2008 as the government and Federal Reserve have taken extraordinary and immoral actions to protect Wall Street banks. Since September 11, 2001, the government has used fear as its primary means of controlling the American population. Fear of terrorists, fear of flying, fear of WMD, fear of mushroom clouds, fear of the axis of evil, fear of economic collapse, fear of a Great Depression, and now fear of the Tea Party movement. This attack by a crazy man will lead to further losses of liberties and freedoms. That is a certainty.

Americans have been lulled into a false sense of security. V’s speech to the people of England invokes Ben Franklin:

“I know why you did it. I know you were afraid! Who wouldn’t be? War, terror, disease… There were a myriad problems that conspired to corrupt your reason and rob you of your common sense. Fear got the best of you, and in your panic, you turned to the now High Chancellor, Adam Suttler. He promised you order, he promised you peace, and all he demanded in return was your silent, obedient, consent.” - V - V For Vendetta

Those who would give up Essential Liberty
to purchase a little Temporary Safety,
deserve neither Liberty nor Safety.

- Ben Franklin

This country has not reached the level of control and fear seen in Orwell’s 1984 and V For Vendetta, yet. We are moving relentlessly in that direction. Surveillance, monitoring, spying, censorship, secret prisons, predator drones, and conforming to state rules and regulations put citizens further under the thumb of an all powerful state. The freedom to dissent, the freedom to be left alone, the freedom to speak out against injustice, the freedom to disagree with your government, and the freedom to present your ideas without fear of retribution or penalty are essential in a democratic society. The next phase of this Fourth Turning will surely include another downward spiral in financial markets as un-payable debts accumulate to a tipping point level. When ATM machines stop spitting out twenties, food shelves are bare and gas stations are shuttered, social chaos will ensue. The government will react with further command and control measures. In V For Vendetta, the government creates a terrorist incident in order to gain unquestioned control over the population. Americans will need to be more vigilant than they have been over the last ten years in keeping an eye on their government.

In the movie, Parliament is the symbol of government power. The thought of destroying this symbol provided the people with a renewed sense of purpose and power. By V’s destruction of the building, the people regained their hope for the future. The symbol of America is the Statue of Liberty. The pedestal at the base of the statue states:

“Give me your tired, your poor,
Your huddled masses yearning to breathe free,

The idea of America is still alive. Whether it is kept alive is up to us. Words matter. Ideas can change the world.

 ”I know of no reason why the Gunpowder Treason should ever be forgot… But what of the man? I know his name was Guy Fawkes and I know, in 1605, he attempted to blow up the Houses of Parliament. But who was he really? What was he like? We are told to remember the idea, not the man, because a man can fail. He can be caught, he can be killed and forgotten, but 400 years later, an idea can still change the world. I’ve witnessed first hand the power of ideas, I’ve seen people kill in the name of them, and die defending them… but you cannot kiss an idea, cannot touch it, or hold it… ideas do not bleed, they do not feel pain, they do not love… And it is not an idea that I miss, it is a man… A man that made me remember the Fifth of November. A man that I will never forget.” – Evey Hammond – V For Vendetta

THE IDEA OF AMERICA – THE CHOICE IS OURS

 

ALL I WANT FOR CHRISTMAS IS THE TRUTH

181 comments

Posted on 3rd December 2012 by Administrator in Economy |Politics |Social Issues

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“Eyes blinded by the fog of things
cannot see truth.
Ears deafened by the din of things
cannot hear truth.
Brains bewildered by the whirl of things
cannot think truth.
Hearts deadened by the weight of things
cannot feel truth.
Throats choked by the dust of things
cannot speak truth.”
Harald Bell Wright – The Uncrowned King

I consider myself a seeker of truth. It isn’t easy finding it in todays’ world. In an alternate version of the famous scene from A Few Good Men, I picture myself telling Turbo Tax Timmy Geithner that I want the truth and his angry truthful response:

“Son, we live in a world that has Wall Street banks, and those banks have to be guarded by puppet politicians in Washington D.C. with lobbyist written laws and Madison Avenue PR maggots with media propaganda. Who’s gonna do it? You? You, Representative Paul? I have a greater responsibility than you could possibly fathom. You weep for the average middle class American family, and you curse the ruling oligarchs. You have that luxury. You have the luxury of not knowing what I know. That the death of the American middle class, while tragic, probably saved the bonuses of thousands of Wall Street bankers. And my existence, while grotesque and incomprehensible to you, increases the wealth of these same bankers who destroyed the worldwide economic system in 2008. You don’t want the truth because deep down in places you don’t talk about in the food bank line, you want me on Wall Street, you need me on Wall Street. We use words like derivative, fiscal stimulus, quantitative easing. We use these words as the backbone of a life spent syphoning off the wealth of the nation. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the very debt that I provide, and then questions the manner in which I provide it. I would rather you just said thank you, and went on your way, Otherwise, I suggest you pick up 1000 shares of Apple, and hope our high frequency trading supercomputers can ramp the market for a while longer. Either way, I don’t give a damn what you think you are entitled to.”

I find myself more amazed than ever at the ability of those in power to lie, misinform and obfuscate the truth, while millions of Americans willfully choose to be ignorant of the truth and yearn to be misled. It’s a match made in heaven. Acknowledging the truth of our society’s descent from a country of hard working, self-reliant, charitable, civic minded citizens into the abyss of entitled, dependent, greedy, materialistic consumers is unacceptable to the slave owners and the slaves. We can’t handle the truth because that would require critical thought, hard choices, sacrifice, and dealing with the reality of an unsustainable economic and societal model. It’s much easier to believe the big lies that allow us to sleep at night. The concept of lying to the masses and using propaganda techniques to manipulate and form public opinion really took hold in the 1920s and have been perfected by the powerful ruling elite that control the reins of finance, government and mass media.

Peddlers of Propaganda

“Great is truth, but still greater, from a practical point of view, is silence about truth.” Aldous Huxley – Brave New World

 File:Edward Bernays.jpg   

Adolf Hitler understood the power of the big lie over the ignorant masses who want to believe:

“All this was inspired by the principle–which is quite true within itself–that in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.” – Adolf Hitler – Mein Kampf

We are all liars. We lie to friends, family and co-workers. We convince ourselves they are only small lies and just protect others from being hurt. We would rather be lied to than face the blunt truth about our deficiencies, shortcomings and failures. Willfully believing mistruths allows a person to become dependent upon those promulgating the mistruths. It relieves them of their responsibility to act upon the knowledge that something is wrong and must be fixed. It is a cowardly path to ultimate servitude and destruction. The German people chose this path in the 1930s and the American people have chosen a similar and ultimately destructive path today. The United States Office of Strategic Services prepared a psychological profile report during the war describing Adolf Hitler’s method for controlling the minds of the German masses:

“His primary rules were: never allow the public to cool off; never admit a fault or wrong; never concede that there may be some good in your enemy; never leave room for alternatives; never accept blame; concentrate on one enemy at a time and blame him for everything that goes wrong; people will believe a big lie sooner than a little one; and if you repeat it frequently enough people will sooner or later believe it.”

America’s corruptible politicians, greedy corporate chieftains, criminal banking overlords, and despicable media manipulators all learned the sordid lessons of mass propaganda from the masters. Our willingness to lie and be lied to set us up to be manipulated by those who understood the mass psychology of a nation. Goebbels and Hitler were heavily influenced by the father of propaganda – Edward Bernays. He and his disciples are professional poisoners of the public mind, exploiters of public foolishness and ignorance, and never allow truth to interfere with a good story. What master manipulators realized is that it is easier to change the attitude of millions than the attitude of one man. By analyzing and understanding the process and motives of how the group mind works, the invisible government has been able to manipulate and regulate the masses according to their will without the masses knowing they are being managed. Bernays described this elitist view of the world in 1928:

“Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. In almost every act of our lives whether in the sphere of politics or business in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses. It is they who pull the wires that control the public mind.” – Edward Bernays – Propaganda

The super-rich elite believe they are more intelligent, more capable of managing the affairs of state, masters of the financial world, and chosen to decide what is best for the masses. In reality, they are egocentric, psychotic, power hungry, myopic, self-serving ravenous vultures, feasting upon the carcass of a once great nation. Truth is inconsequential and irritating to their plans for world domination and control. Therefore, no truth will be forthcoming from any organization or person that is associated with the existing political, economic, financial or social order. Every bit of information that is permitted into the public realm has been vetted, manipulated and spun for public consumption. The public does not like bad news. They do not like hard facts. They do not like to think or do math. They want to be spoon fed mindless sound bites and happy talk. The oligarchs need to keep the masses sedated and subservient while they continue to plunder and pillage, so all data is massaged to provide a happy ending.

This is where I deviate from the ideologue one-trick ponies that refuse to see both sides of the issue. The ruling oligarchs are wealthy, influential, psychotic, amoral, and few. The masses are relatively poor, easily influenced, willfully ignorant, and many. The ruling oligarchs are most certainly evil, but the masses are not the hard working, stoic, downtrodden portrayed by liberal ideologues. One just needs to walk down the street in one of our urban enclaves, saunter through a suburban mall, or click on People of Wal-Mart to witness the tattooed, pierced, butt crack showing, slovenly, obese, and ignorant, attached to their electronic iGadgets, to understand how far our society has deteriorated.  Every individual born into this world has the capability to become educated, think critically, not follow the herd, live beneath their means, and not be influenced by propaganda. Aldous Huxley understood in 1931 that those in power could use material goods to invoke passivity and egotism among the populace. He feared that truth would be obscured by an avalanche of irrelevance (500 Reality TV shows), cultural trivialities (Lady Gaga, Lindsey Lohan), distractions (Professional sports), and pharmaceutical enhanced escape (Prozac). He saw the possibility that we would grow to love our servitude as the pleasures of life provided by our controllers overwhelmed any desire to think or question authority.

“There will be in the next generation or so a pharmacological method of making people love their servitude and producing dictatorship without tears, so to speak, producing a kind of painless concentration camp for entire societies so that people will in fact have their liberties taken away from them but will rather enjoy it.”  ― Aldous Huxley

By 1962 when Huxley wrote his last book, he was certain that his worst dystopian nightmares had been unleashed. His description of Western society fifty years ago could have been written today and accurately reflected our current economic paradigm. War, debt and consumption still make our world go round, but the end is nigh.

“Armaments, universal debt, and planned obsolescence – those are the three pillars of Western prosperity. If war, waste, and moneylenders were abolished, you’d collapse. And while you people are over-consuming the rest of the world sinks more and more deeply into chronic disaster.”Aldous Huxley – Island

The pillars are crumbling. The $1.4 trillion wasted on two worthless wars of choice in the Middle East, the trillions wasted and liberties sacrificed for the never ending unwinnable War on Terror, the Keynesian spending frenzy that has driven the National Debt from $9 trillion to $16.3 trillion in the last five years, the looting of the American taxpayer by Wall Street and their co-conspirators at the Federal Reserve and in Congress, and the belief that ramping up the debt driven consumption that drives 71% of our GDP is our path to prosperity is absolutely freaking nuts. The pillars will not be abolished willingly. The ruling class depends upon their continued existence and expansion. There is the rub. The math doesn’t work. We’ve reached the point where continued expansion of debt and money printing no longer works. With a national debt to GDP ratio of 102% and a total credit market debt to GDP ratio of 350%, we have passed the Rogoff & Reinhart point of no return. This time is not different. A country cannot run trillion dollar deficits indefinitely and expect to not suffer the consequences. This is why those in power are increasingly resorting to propaganda, data manipulation, and outright lies to convince the masses of their omnipotence and brilliance in managing the fiscal affairs of the state.

 “One believes things because one has been conditioned to believe them.” Aldous Huxley – Brave New World

Through decades of mass media messaging the masses have been conditioned to believe whatever those in power want them to believe. To our invisible government rulers we are nothing but rats to be manipulated through food pellets and shock therapy. Pleasure and fear of pain are the drivers of our warped society. The ruling oligarchs truly think they know what is best for the masses and believe any means is worthwhile as long as the ends support their agenda. This is blatantly obvious to anyone with their eyes open and their brain functioning. Sadly, the government run educational system produces mostly drones that are barely able to tie their own shoes, spell Cat, or make change from a one dollar bill. Only 20% of all high school seniors score high enough on the SAT test to get a B minus in college and most of these kids come from private and parochial schools. This is exactly what those in power prefer. They want non-critical thinking, mindless consumers, who don’t understand the criminal nature of Federal Reserve created inflation or their enslavement in the chains of debt at the hands of their Wall Street slave owners. They certainly don’t want the masses to understand that real median household net worth is lower today than it was in 1969. Luckily for the oligarchs, 95% of the public couldn’t define the terms: real, median or net worth. Math is hard.

The average person is inundated on a 24/7 basis with pabulum from liberal network media talking heads, CNBC Wall Street shills regurgitating whatever their sponsors desire, Fox News blonde bimbos and neo-con war mongers programmed to spew Rupert Murdoch talking points, MSNBC tingling leg faux journalists, NYT intellectually corrupt Nobel prize winners, NAR nitwits repeating “best time to buy” on a daily basis for the last 12 years, and government agencies whose sole purpose is to manipulate data in a way that supports the agenda of those in power. The intellectually lazy and willfully ignorant masses are no match for those who control the message and the media. How else can you explain their ability to convince millions of drones to line up for hours in front of a store and stampede like crazed hyenas to grab a $5 crockpot, the Chinese produced gadget of the moment or a designer top made by slave labor in safety conscious Bangladesh factories? How else can you explain a population willing to be molested by government TSA dregs in the name of security from phantom terrorists, the passive acceptance of military exercises in US cities, unquestioning submissiveness as Presidential Executive Orders allow the government dictatorial powers based on their judgment, the monitoring of internet and voice correspondence of all citizens, and believing that FBI agents luring clueless teenage Muslim dupes into fake terrorist plots, providing the fake explosives, and then announcing with great fanfare how they saved us from another 9/11?

But, the prize for boldest, most outrageous, blatant use of propaganda and misinformation to cover-up their criminal looting of America goes to Ben Bernanke, his cronies at the Federal Reserve, and the Wall Street banks that own and control our Central Bank. Having the gall to portray themselves as the stabilizer of our economic system over the last 100 years is a putrid joke on the dying and broke middle class. Their mandate has been stable prices, full employment, and avoiding financial crisis. It is a tribute to Bernays and the rest of the public relations swine that the average American actually believes inflation is a good thing and it is under control despite the FACT that 96.2% of their purchasing power has disappeared since 1900, with the most rapid decline occurring since Nixon closed the gold window in 1971.

inflation-currency

The average American actually believes Ben Bernanke saved us from a Great Depression when in actuality he saved the owners of the Federal Reserve from accepting the losses they generated through the greatest financial fraud in history. His “solutions” have zombified our economic system, just as the Japanese Central Bank did 20 years ago. He has destroyed the concept of saving, while rewarding the indebted and profligate with his QE to Infinity money printing policies. And the ignorant masses have been convinced by the corporate media and their corrupt government lackeys that Ben did this for them. Kyle Bass knows otherwise. He knows how the Fed and their backers have preyed upon the masses through their understanding of human psychology:

“Humans are optimistic by nature. People’s lives are driven by hopes and dreams which are all second derivatives of their innate optimism. Humans also suffer from optimistic biases driven by the first inalienable right of human nature which is self-preservation. It is this reflex mechanism in our cognitive pathways that makes difficult situations hard to reflect and opine on. These biases are extended to economic choices and events. The primary difficulty with this train of thought is the bias that most investors have for the baseline facts: they tend to believe that the central bankers, politicians, and other governmental agencies are omnipotent due to their success in averting a financial meltdown in 2009.

Central banks have become the great enablers of fiscal profligacy. The overarching belief is that there will always be someone or something there to act as the safety net. The safety nets worked so well recently that investors now trust they will be underneath them ad-infinitum. Markets and economists alike now believe that quantitative easing (“QE”) will always “work” by flooding the market with relatively costless capital. Unlimited QE and the zero lower bound (“ZLB”) are likely to bankrupt pension funds whose expected returns happen to be a good 600 basis points (or more) higher than the 10?year “risk-free” rate. The ZLB has many unintended consequences that are impossible to ignore.

Our belief is that markets will eventually take these matters out of the hands of the central bankers. These events will happen with such rapidity that policy makers won’t be able to react fast enough. The fallacy of the belief that countries that print their own currency are immune to sovereign crisis will be disproven in the coming months and years. Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.” Kyle Bass

What’s Normal in a Profoundly Abnormal Society?

“The real hopeless victims of mental illness are to be found among those who appear to be most normal. Many of them are normal because they are so well adjusted to our mode of existence, because their human voice has been silenced so early in their lives, that they do not even struggle or suffer or develop symptoms as the neurotic does.” They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness. These millions of abnormally normal people, living without fuss in a society to which, if they were fully human beings, they ought not to be adjusted.” Aldous Huxley – Brave New World Revisited

No sane person could honestly say that what has happened to our society over the last forty years, and particularly in the last five years, is normal. But somehow those in power have convinced the masses that $1.2 trillion deficits, 0% interest rates, declining real wages, the highest average gas prices in history, pre-emptive wars, policing the world and buying rubber dog shit produced in China with a credit card is normal and beneficial to our economy. It seems that I and a few million other people in this country are the abnormal ones. We choose not to be led to slaughter by our masters. The seekers of truth have turned to the alternative media and are able to connect with like-minded critical thinking individuals on websites like Zero Hedge, Jesse’s Americain Café, Of Two Minds, Mish, Financial Sense, among many other truth seeking blogs. This is dangerous to the powers that be and they are using their political clout and extreme wealth to try and lock down and control free speech on the internet. If this is accomplished all hope at disseminating truth will be lost.

Abraham Lincoln once said that he believed in the people and that if you told them the truth and gave them the cold hard facts they would meet any crisis. That may have been true in 1860, but not today. The cold hard facts are available for all to see:

  • A $16.3 trillion National Debt
  • 47 million people on food stamps
  • Over $222 trillion of unfunded Federal entitlement liabilities
  • Over $5 trillion of unfunded State entitlement liabilities
  • True unemployment above 20%.
  • True inflation above 5%.
  • A stock market at the same level as 1999, with a 10 year expected annual return of less than 4% – Stocks for the really, really long run. 10 year bond returns of 0% will be a miracle.
  • A savings rate of 3.7% and with Bernanke’s ZIRP, no incentive to save. Real hourly earnings continue to fall.

  • Baby Boomers within 10 years of retirement have saved an average of only $78,000, and more than a third of them have less than $25,000. More than half of U.S. workers have no retirement plan at all.
  • A crumbling, decaying infrastructure, with 150,000 structurally deficient bridges, bursting water mains, and an overstressed electrical grid.
  • Horrific government public education producing millions of low functioning morons.
  • Rotting social fabric, with 40% of children born out of wedlock (72% of black children) and a 50% divorce rate.
  • An energy policy based upon unicorns farting rainbows and press releases about green energy and the miracle of shale fracking, as average gas prices in 2012 and 2011 were the highest in U.S. history.

As the pitiful excuses for statesmen in Washington D.C. pander and posture about the dreaded fiscal cliff which was purposely created by the oligarchs as a show for the masses, none of the true issues above are being addressed. The dramatic compromise that will ultimately be reached between the equally corrupt parties will be hailed by the corporate media and Wall Street shysters and an HFT supercomputer engineered stock market rally will ensue. The cowardice of these politicians is revolting. As Huxley knew in 1958, politicians and propagandists prefer nonsense and storylines to truth, knowledge and honesty.

“Human beings act in a great variety of irrational ways, but all of them seem to be capable, if given a fair chance, of making a reasonable choice in the light of available evidence. Democratic institutions can be made to work only if all concerned do their best to impart knowledge and to encourage rationality. But today, in the world’s most powerful democracy, the politicians and the propagandists prefer to make nonsense of democratic procedures by appealing almost exclusively to the ignorance and irrationality of the electors.”Aldous Huxley – Brave New World Revisited

We want to be lied to because the truth is too painful. Hope and denial with a dash of delusion is the recipe the mindless masses prefer. The average person doesn’t want to understand the chart below. They want to believe the U.S. will dominate economically and lead the world for decades to come. We are still the bright shining beacon of democracy on the mountaintop. Even though the facts unequivocally reveal a declining empire, the masses desperately grasp at straws in the wind. The United States share of world GDP will be vastly lower in 2021, as the hubris of declining empires never allows them to take the necessary steps to reverse the decline (Rome, Great Britain).  

It is fitting that during this magical Christmas season of fantasy, delusion, debt fueled material over-consumption and fairy tales, we look at the biggest fairy tale of all – the great jobs recovery. I know from the two thousand Obama campaign commercials I was forced to watch in the last few months and 500 robo-calls at dinner every night that we’ve added 4 million jobs due to Obama’s wise economic policies. The magical journey from a 10.3% unemployment rate to a 7.9% rate is a humdinger. I stumbled across a myriad of charts on those truth-telling websites that I had previously mentioned.

 “You shall know the truth and the truth shall make you mad.” Aldous Huxley

The first chart that grabbed my attention shows the historical relationship between the U3 unemployment rate reported to the masses versus the U6 truer picture of unemployment, along with the percentage of people unemployed for longer than 15 weeks. A funny thing happened shortly after the election of Barack Obama. From 1994 through 2008 the gap between the U3 and U6 rates consistently ranged between 3% and 4%. Suddenly, the gap surged to 7% and currently sits at almost 8%. The figure reported to the masses of 7.9% is so much easier to digest than the 15% to 17% that captures the truer level of unemployment. If the gap between these two figures had remained at the levels of the previous 14 years, the unemployment that should be reported to the masses would be 11%. That is unacceptable to those in power, so the data is massaged and the propaganda machine spins the storyline necessary to confuse and mislead the masses.

 

The next two charts from Mike Shedlock again reveal truths the existing social order doesn’t want you to know. Even though the working age population has grown by 10 million people since 2008, the BLS expects critical thinking people to believe the labor force has only grown by 1.3 million people. You see, the unemployment rate is calculated using the labor force. If your economic policies don’t create jobs, just adjust the labor force dramatically lower based on nothing. In desperate economic times, people do not voluntarily leave the workforce. Only a non-thinking drone would believe that 8.7 million Americans voluntarily left the workforce since 2008, when only 4 million left the workforce from 2003 through 2007. It is not a coincidence that student loan debt, which was taken over by the Obama administration in 2009 rose by $300 billion. Those in power have doled out these billions with no concern for credit risk or academic credentials in order to reduce the number of people in the labor force. Unemployed union Twinkie workers seeking a new career in lesbian studies can get a $20,000 loan from the American taxpayer to sit in their basement along with the 500,000 other University of Phoenix enrollees. The future $300 billion taxpayer bailout was worth it to keep the unemployment rate low enough to insure Obama’s re-election.      

The Obama PR machine never fails to expound upon the fact that the economy added 4.9 million jobs since January 2009. In the same timeframe, uncovered employment rose by 6.6 million. Inquiring minds might want to know what an “uncovered” job entails. Selling your accumulated Chinese crap on Ebay is an uncovered job. Calling yourself a consultant while sleeping until noon is an uncovered job. Day trading Facebook and Apple stock is an uncovered job. Trash picking is an uncovered job. The truth is that real jobs are 1.7 million lower than they were at the depths of the recession, while bullshit jobs paying virtually nothing and offering no benefits have surged by 6.6 million. These facts don’t make a great campaign commercial. The number of employed Americans is at the same level as mid-2005, even though the working age population has grown by 18 million. Since 2008 there are 3 million less full-time jobs and 3 more part-time jobs. This trend is accelerating as small businesses react rationally to the oncoming Obamacare train, resulting in aggregate work hours declining and wage growth stagnating.

Zero Hedge reveals more truth about our glorious jobs recovery with the following two charts. They obliterate the false narrative spun by liberal ideologues that the reason for the increase of those not in the labor force is due to Baby Boomers retiring. The truth is that while those in the 55-69 age brackets have gained nearly 4 million jobs under President Obama, everyone else has lost just over 2.5 million jobs. Is this a positive development or a sign of extreme desperation among older Americans who have seen their interest income vaporized by Ben Bernanke and there food, energy, and healthcare expenses skyrocket?

Those in their prime earning years of 25 to 54 still have a net cumulative loss of 2.2 million jobs since 2009. Recent college graduates, with their billions of student loan debt, have nabbed 400,000 TGI Fridays jobs, singing happy birthday to 3 year olds, with their newly minted college degrees. This is the “normal” healthy jobs market sold to the American public by the propagandists and politicians.

The final jobs chart that portrays the truth of what has been a decades’ long spiral downward paints a picture of a country that once created wealth through producing goods from the 1940s through 1970. Since 1970 we’ve degenerated into a debt creating country that consumes foreign produced goods and makes entitlement promises it can never keep. Selling houses to each other, peddling crap on Ebay, and eating out three times a week has shockingly failed to propel our economy. The jobs picture has deteriorated rapidly since 2008 and is not improving, despite the best propaganda money can buy. There is absolutely no chance of any substantive improvement over the next four years based on the policies in place and refusal to acknowledge the economic realities that we face.

The accumulation of material possessions through the use of consumer debt, peddled by bankers and reinforced through relentless corporate marketing propaganda has left the country’s citizens weary, miserable, greedy, indebted and sick. Our obsession with technology has merely provided another means of distracting ourselves from confronting the dire challenges that must be addressed. We can ignore the facts but that doesn’t mean they do not exist. The abnormality that grips this nation is breathtaking to behold, as the status quo cheer on and encourage consumers to buy more things with money they don’t have in order to support an economic recovery that is dependent upon zero interest rates for Wall Street banks, QE to infinity, and the delusional desire for a miraculous return to the good old days when getting something for nothing was possible. We can no longer deny reality. If we want to add 30 million people to Medicaid, it must be paid for. If we want to wage never ending wars and police the world, it must be paid for. If we want a Federal government to spend $3.8 trillion per year, it must be paid for. Nothing is free in this world, but more than 50% of Americans seem to believe that to be true.

“Our economy is based on spending billions to persuade people that happiness is buying things, and then insisting that the only way to have a viable economy is to make things for people to buy so they’ll have jobs and get enough money to buy things.” Philip Elliot Slater

We are seen by those in control as nothing more than common house flies caught in their web of lies. Your owners don’t care about you. They only care about their own wealth and power. They want to control and manipulate you. They want to keep you enslaved in debt and running on the treadmill of consumption. They want passive, non-critical thinking drones to do the menial service jobs that remain in this country, while they use their control of our financial, political, tax, and legal systems to ransack and pillage the wealth of the dwindling middle class. The truth is the continuation of our current economic system is mathematically impossible. Your owners know this. This is why the use of propaganda, misinformation, fake data, and false storylines has taken on astronomical proportions. The time for passivity and accepting the deceitfulness of our leaders is coming to an end. While you’re waiting in line this Christmas season at Wal-Mart to purchase a fabulously priced shirt that only required the deaths of 112 Bangladesh slave laborers, try to figure out how we got here. Your owners think they have you by the balls.

“They spend billions of dollars every year lobbying to get what they want. Well, we know what they want; they want more for themselves and less for everybody else. But I’ll tell you what they don’t want—they don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interest. You know something, they don’t want people that are smart enough to sit around their kitchen table and figure out how badly they’re getting fucked by a system that threw them overboard 30 fucking years ago. Because the owners of this country know the truth, it’s called the American Dream, because you have to be asleep to believe it.” George Carlin

How many Americans are awake enough to handle the truth?

All I want for Christmas is the truth.