Mucks’ Minute #25

Insane!

The Federal Government of this country is absolutely out of its’ non-collective mind.  Crazy.  Stupid. Insane. It (“it” means Executive and Congressional branches here) has no idea how to get itself out of the huge hole it has knowingly dug itself between 1973 and now.  The States can do no more than borrow themselves into bankruptcy (See Illinois with more coming up).  The Feds, can borrow and print all they want.  Until they can’t.

To refresh everyone’s memory, this is the way the Ponzi Scheme works.  The Federal Reserve (our Central Bank) “buys” Treasury bills and bonds (the “safest” investment, right?), credits the Federal Government for them even though Treasury bills and bonds are just printed paper at the pleasure of Congress. As a matter of fact, the Federal Reserve is just about the only one who buys US Treasuries anymore because they truly aren’t worth shit and everyone else knows it.

However, the Federal Government now has “money” in the form of digital credits issued to it by the Federal reserve.  It can now spend these “credits”, distribute checks, etc., for any task or reason it puts its’ collective mind to do.

Then the Fed, using the newly printed Treasury paper as collateral, prints currency and issued debt.. The debt is bought by the banks, who own the Fed (but are completely politicized and controlled by our famous ELITE), the Banks, in turn deposit the bonds and bills they just bought back into the Fed as deposits and the Fed pays the banks 6% interest — way, way above what you and I will ever see in the foreseeable future — and the banks then uses these deposits as reserves to enable them to shuffle what is by now Ponzi money out in loans to any schmuck willing to pay above what it costs the banks to get the money, which at this time is just about zip squat nothing.

Who benefits the most?  First, the Treasury  because they get to use the Ponzi money first at a cost of printing Treasury Bills and Bonds.  Second, the banks who act at shills and use the money second without paying anything of merit for the use thereof plus they get paid interest on the Ponzi money with more Ponzi money a little later.  If they never loaned a dime of it they’d still make money off the Fed’s interest payment, fees they charge and all that crap.

Last and very least, the citizens of this country get to borrow that Ponzi money at much higher than internal interest rates and use it last to get the least out of it..  And less and less every day, week, month and year due to understated inflation.  That’s why fixed income people suffer the most and first.

It’s a scam worthy of historical note (and will be – just like all those before it).

Some say that the chain broke back in the 50’s but that debatable.  Almost all the collective members of Congress and the Executive Branch AND those in the Judicial Branch who dare not reverse the asinine policies, Executive Actions and “laws” passed by Federal and State legislatures in the last few years.

Now the Judicial can’t decide anything because it is too partisan with 4 “new” liberals and 4 conservatives and no one tagged to replace the 9th Justice (Sam Alito) who passed into that courtroom in the sky, so they gnash their teeth and refer cases back down to a lower court so they can’t be accused of a tie which is the same thing as letting the lower court ruling stand anyhow . Confusing?  Hell, they’re confused about it themselves.

The Supreme’s can’t even enforce the Constitution – they “interpret it!” Gag!!) because if they did it right, the whole house of cards, toothpicks, rubber bands and paper-clips would bury them to the shoulder and there would be blood in the streets..

Not all black or hispanic “red” blood, you understand but white “red” blood as well.

We are well and truly screwed and it gets worse day after day, week after week with stupid decisions, idiotic PC policies ——-  Like the one put forward by Obummer’s PC brigade recently that in the future, applicants for positions with the Federal Government will no longer be asked if they are guilty of any major crimes, felonies or sexual offenses.  Talk about IDIOTIC.

The whole idea with our PC political assholes is to: First – Insure the fog and smoke is so thick in an election year that everyone is distracted; Second – insure that since they are releasing ever increasing number of criminals , many of the minor variety – non-violent Federal violations, boot legging, white collar crime (that doesn’t get punished anyway), dope;  I believe in the last few months some 6,000 Federal Prisoners of such ilk have been released to the street from federal lockups and forbidding FEDERAL EMPLOYERS to ask them if they had ever been convicted of a crime will allow them to adapt to civilian life easier, smoother and more cleanly and get right back to legally sucking the Federal titties only this time at taxpayer expense in a legal way.   It’s all about making them feel better about themselves, right? Throw up in my mouth!

They are all NUTS…   Why are they backed up against the wall with too many citizens in jail in the first place?  After all, the United States has only 5% of the  world’s population but 25% of the total world prison population behind bars and a majority of them are there for victimless crimes.

To have a crime you have to have a perpetrator (the “bad” guy/girl) and a victim.  When two people sit on the end of a dock, split a joint and mellow out, that is not a crime (except in the eyes of the government). No perp, no victim.  No matter: 5-10 years behind bars with minimum sentences and no judge’s discretion in sentencing. It has been shown (years ago) that a perfectly PC citizen of this country, going about his/her business, is likely to commit 2-5 felonies A DAY, just going along with a normal life and doing so not knowing that he is doing anything wrong. This pisses me off.

It’s like driving on a 6 lane highway, 3 lanes in each direction… Everyone is clipping along at 5-15 miles above the speed limit.  That means an officer of the law can reach out “touch you” anytime he wants just because you are keeping up with traffic, not being a plug and a hazard to safety and that makes you a target and deserve a ticket.  This pisses me off.  There is an old saying within the military, “Don’t give orders that won’t or can’t be obeyed.”  If you do, you’ll have a minor (or major) mutiny on your hands..  Drivers are the same way.  99% go at a safe speed for conditions and congestion.  Some speed limits are just as stupid and designed (called “speed traps” in the old days) to enrich the town coffers at the expense of travelers just passing through.

Getting back to idiocy and there is so much of it, it’s hard to even get your mind part way around it,  has been proven by several multi-year studies by very prominent  and believable Universities including the prestigious University of Chicago that up to 8 out of 10 economic “studies” (You know – those 500 page scholarly tomes upon which the Federal Reserve uses to base its’ actions, plans and long term intentions) CANNOT BE DUPLICATED OR VALIDATED.  That means in very simple terms:  They don’t work.  They were published for scholarly “creds” with no peer review of any quality and are useful only to start charcoal fires.

In Science and TBP, that’s called “Epic Fail” and the economists slink back off into their labs and libraries and try, try again.

In National Economics (i.e Federal Reserve and the Banks who own it), it means that those who understand the least about the real world, cherry pick unproven studies on which to try and run the monitory policy of the country and do it in such a twisted and convoluted way that the banks and the Fed and the U. S. Treasury benefit the most before it falls apart and has to be readjusted with a new “unverified” economic policy.

How can any organization (even Government) make sound decisions and promulgate policy when using false or heavily warped and filtered data furnished to them by internal sources, special interests, lobbyists and others who have an axe to grind.  No audit, none or very little outside date input  and all data they use is subject to “adjustment” which only means they can twist and modify the data to be whatever they want it to be.    Garbage in, garbage out.

I’ll close this Minute with a very old and very well proven historical fact first given to us by Ludwig Von Mises.  (“Human Action” is still a very good book to read if you want a dose of common sense and truth).  Von Mises said, very simply,  that there is no orderly way to get out of a credit crises (i.e. more debt than capital to pay it back). It collapses.  It’s been proven time after time, century after century and it will happen again between now and possibly 2100.  Perhaps between now and 2050. Maybe even sooner.  Timing is a bitch.  The end result is cast in concrete though and it will happen.  Get ready for it.

How to get ready for it?  I’ll repeat a few things everyone on TBP already knows and loves and then be quiet.  I know it all has been said before, to repeat is to encourage learning so be patient with me..

Get out of the stock market except for speculative positions in precious metals, perhaps some LARGE food producers.  If you can, move to a community that is small, tight-nit with a number of older people in it with substantial knowledge in many areas (older people’s experience and knowledge is worth more than gold – believe it!) . Accumulate modest and varied assets, small gold, small silver kept in your possession and if you can, some farm land, an independent (as far as possible) place to live (Like Llpoh has done – but without the flair of well off a ex-pat), a large library of TRUTH (i.e. How To and History books), sufficient arms and ammo supplies to defend what you have (common sense applies here) and train everyone you have living at home how to use them while offering a small prayer now and then that they will never be used, Try to do it in an area where the climate won’t kill you and invite your offspring to join you and use some of your resources to get them started on their independence.

I know – same old shit – with minor modifications to include us old folk and our library of knowledge  and experience  which let’s Old Muck have a shot at being allowed into the Fort. Without doubt, to much doom and gloom – but as I said above, timing is a bitch.  This country’s economic situation  is so far in the credit-never-to-be-repaid area that we WILL suffer a reset (credit collapse) sooner or later.

Just be cool and make a few preparations for your own piece of mind.  That sounds like a TBP motto.

MA

note: Old Muck now has an address: [email protected]

Feel free to write if you want to.  I promise to read every one but I cannot and do not promise to answer.  Don’t let the email substitute for good comments here on TBP especially if we can get Admin to put in sub-comments to individual posts. (hint, hint)

Author: MuckAbout

Retired Engineer and Scientist (electronic, optics, mechanical) lives in a pleasant retirement community in Central Florida. He is interested in almost everything and comments on most of it. A pragmatic libertarian at heart he welcomes comments on all that he writes. View all posts by MuckAbout