OVERDRAFT

I bet you were wondering what Admin does in his spare time for fun.

After spending my weekend writing a depressing article about the decline and fall of the American Empire, I got up at 5:15 am, got in my itsy bitsy Hybrid and dodged 18 wheelers on my hour drive into the killing fields of West Philly. I put in a full day at work and then for fun I walked over to the Annenberg Center at 5:00 pm to watch a documentary about the impending collapse of our country because of our debt and a panel discussion with four Wharton professors. The conclusion – we’re fucked.

The documentary was extremely well done. It was similar to David Walker’s I.O.U.S.A. which came out in August 2008, just before the financial collapse. Here’s the problem. David Walker’s documentary showed the perils of our national debt and the impending disaster if we didn’t address our unfunded liabilities related to Medicare, Social Security and future deficits. The National debt in August 2008 was $9.6 trillion. Today it is $16.2 trillion. I don’t think Walker’s recommendation was to increase the Debt by 69% over the next four years. Obamacare was passed, adding millions of people into Medicare and digging us deeper into debt. When you’re in a hole, you’re supposed to stop digging. We dug faster.

They can make documentaries until they are blue in the face, but Americans will yawn and flip the channel to Dancing With the Stars to see Bristol Palin self destruct. If this documentary comes on your local PBS station (until Romney pulls the plug) I recommend you watch it. They are going to 20 different colleges to promote this film. It is the Millenials who get fucked the worst, so they should get angry. We’ve left them a shit sandwich with a side of shit.

We have no leaders willing to level with the American people. We have an American people who want to be lied to. Nothing will be fixed until the entire system implodes. Sad but true. The panelists seemed to hold out hope that after the election the Simpson/Bowles plan would be resurrected and enacted. I doubt it.  

http://www.youtube.com/watch?v=MqW628w_z4w&feature=share&list=PL681B1D0A84320023

 

PBS documentary ‘Overdraft’ explores U.S. debt situation

After the screening, Wharton professor Michael Useem moderated a discussion

By Fiona Glisson · October 9, 2012, 12:32 am

In last week’s presidential debates, Governor Mitt Romney said that he would cut funding for PBS as part of his plan to balance the budget and decrease the national debt.

Last night in the Zellerbach Theatre, The Wharton School and the Penn Institute for Urban Research hosted a screening of Overdraft — a PBS documentary — which discusses the causes and dire consequences of the United States’ soaring national debt.

After the screening, management professor Michael Useem — who is also the director of the Center for Leadership and Change Management — moderated a panel discussion.

The documentary, which can also be found on YouTube, was commissioned and funded by the Travelers Institute, a think tank founded by Travelers Insurance Company. It applies the company’s management, experts and knowledge to issues of public policy.

“We wanted to raise awareness about the importance of public policy decision-making and things that our experts can help with,” said Joan Woodward, the president of the Travelers Institute and executive vice president of public policy for Travelers.

Though the Traveler’s Institute funded and contributed information to the documentary, they had little say in its editorial content. WTVI-TV — Charlotte, North Carolina’s PBS affiliate — produced the film in partnership with Susie Films.

The documentary outlined how the housing crisis, the resulting economic downturn and unbridled government spending contributed to the burgeoning national debt.

It then showed various perspectives concerning how portions of the government’s budget such as health care, defense and social security were not solvent.

Heather Huang, a junior exchange student in Wharton, found pharmacy owner Tom Miller’s story particularly effective. His pharmacy in Marion, Illinois, went under because the state government could not afford to reimburse him for patients’ Medicare and Medicaid prescriptions. She liked that the film interviewed “common people and related [national debt] to their lives.”

While it did not provide specific solutions, the film stressed that something must be done.

Introducing the film, Chairman and Chief Executive Officer of Travelers Companies Inc., 1974 Wharton bachelor’s and MBA graduate Jay Fishman stressed that we are on an “unsustainable path to $2 trillion [yearly] deficits if we don’t do something about it.”

Echoing a quotation from Revolutionary-era financier Robert Morris, University President Amy Gutmann commented while introducing the film, “Our own interest and the public good still go hand and hand.”

Wharton is the first stop on a nationwide tour of a growing list of business schools that include the Institute for Economic Policy Research at Stanford University and MIT’s Sloan School of Management.

Producer and Susie Films founder Scott Galloway hopes the film will serve to educate students and encourage them to be involved in public policy. “My hope is that they get a better understanding of the issues,” he said. “I do hope that they recognize that a lot of these issues are solvable.”

Students who attended the event echoed Galloway’s thoughts, discussing the film’s education value. Dan Clay, a Wharton MBA student said the film was “really helpful in explaining why the debt matters.”

Second-year Wharton MBA student William Wang said the film stressed that “fiscal responsibility goes a long way.”

Katie Willis, a graduate student in the School of Social Policy and Practice studying non-profit leadership, appreciated that the film motivates viewers to take action. “The urgency of the speakers within the film felt like a call to arms, which I enjoyed because this is such a pressing problem.”

MONKEYS BEHAVE

Your comments are getting more viewership as TBP demolished our one day visitor record by 15%. We broke the 30,000 visitor barrier for the 1st time. When I started this blog in 2009 we would get 30,000 visitors in a month and 10,000 of the visits were by Smokey and Stuck. Let’s hope the newbies have a sense of humor, thick skin, and aren’t put off by foul language, disgusting pictures, or vitriolic attacks. If not, fuckem.

Day Number of visits Pages Hits Bandwidth
01 Oct 2012 12,781 57,100 281,504 3.14 GB
02 Oct 2012 14,592 56,842 336,607 3.26 GB
03 Oct 2012 13,854 61,423 310,757 3.61 GB
04 Oct 2012 14,530 57,146 332,346 3.16 GB
05 Oct 2012 13,315 54,753 296,220 2.86 GB
06 Oct 2012 10,228 39,501 203,957 2.18 GB
07 Oct 2012 11,050 42,780 224,351 2.45 GB
08 Oct 2012 30,914 99,788 868,694 9.90 GB
09 Oct 2012 3,373 10,430 77,055 825.16 MB
  Countries Pages Hits Bandwidth  
us United States us 364,093 2,261,077 23.91 GB

ca Canada ca 19,331 133,929 1.10 GB

gb Great Britain gb 13,621 96,029 839.81 MB

nl Netherlands nl 8,280 19,673 206.75 MB

au Australia au 6,318 46,357 337.02 MB

de Germany de 5,944 30,374 511.32 MB

cn China cn 5,804 7,773 782.75 MB

fr France fr 5,447 30,212 472.31 MB

ru Russian Federation ru 5,324 14,496 460.79 MB

in India in 3,002 21,285 170.49 MB

ua Ukraine ua 2,595 4,290 235.55 MB

ro Romania ro 2,576 6,727 84.49 MB

se Sweden se 2,244 11,708 110.90 MB

nz New Zealand nz 1,866 9,681 66.46 MB

pl Poland pl 1,795 6,152 161.75 MB

sg Singapore sg 1,674 6,481 56.52 MB

ie Ireland ie 1,575 7,563 88.31 MB

ch Switzerland ch 1,467 6,795 64.84 MB

ph Philippines ph 1,364 9,676 74.29 MB

br Brazil br 1,238 8,122 80.33 MB

mx Mexico mx 1,074 8,667 71.45 MB

hk Hong Kong hk 1,058 4,749 68.40 MB

jp Japan jp 1,028 4,996 57.19 MB

th Thailand th 944 6,390 47.69 MB

it Italy it 925 7,891 62.05 MB

  Others 19176 160398 1.36 GB

 

Links from an external page (other web sites except search engines)Full list

http://www.stevequayle.com 4,853 4,884
http://www.thedailycrux.com/Post/41480/Controversial-post–Hyper… 2,874 2,934
http://www.thedailycrux.com/Post/41457/-Chilling–report-reveals… 2,816 2,848
http://stevequayle.com 2,811 2,875
http://www.stevequayle.com/index.php 2,800 2,800
http://www.tfmetalsreport.com/blog/4246/corner-copperfield-and-b… 2,037 2,037
http://www.zerohedge.com 1,876 1,876
http://www.zerohedge.com/news/2012-10-08/guest-post-decline-deca… 1,704 1,704
http://dollarcollapse.com 1,270 1,302
http://whatreallyhappened.com 493 524
http://www.facebook.com/l.php 311 311
http://globaleconomicanalysis.blogspot.com 255 255
http://td5howard.livejournal.com/201061.html 229 229
http://www.valueforum.com/forums/show.mpl 215 215
http://jessescrossroadscafe.blogspot.com 209 209
http://www.facebook.com 196 204
http://www.marketoracle.co.uk/Article36916.html 184 184
http://sgtreport.com 177 177
http://36ohk6dgmcd1n-c.c.yom.mail.yahoo.net/om/api/1.0/openmail…. 134 155
http://m.facebook.com/l.php 118 118
https://www.facebook.com 111 111
http://sbynews.blogspot.com 107 107
http://stevequayle.com/index.php 100 100
http://www.thedailycrux.com/Post/41322/Several-frightening-signs… 96 96
http://www.blacklistednews.com/Guest_Post%3A_DECLINE%2C_DECAY%2C… 96 96
– Others 5,494 7,305

THE QUIET TITLE WORKBOOK

John Stuart is an expert on Quiet Title Action, a legal tactic many readers of the Who’s Your Lender? thread are interested in pursuing. He volunteers much of his time to educate homeowners. This is a real how-to file Quiet Title Workbook that homeowners can use to guide their attorneys or follow the steps outlined themselves.

Either way, it’s a great way to clear your property title through the state courts and restore the rule of law.

Well worth the $99 price tag.

Anti Foreclosure Network

PRESS RELEASE

Date: October 8, 2012 Contact: John Stuart

For Immediate Release                                                                                                                         [email protected]

ShowMeTheLoan . net presents “THE QUIET TITLE WORKBOOK”

The newly revised fifth edition of THE QUIET TITLE WORKBOOK is now available for $99.99 at: www . showmetheloan . net

You can also sign up as an ‘affiliate’ and help sell the workbook to your friends and groups and receive $20 for each workbook you recommend by having them acknowledge you as the one who recommended the workbook. Just have them list your email as the affiliate when they purchase their workbook.

THE QUIET TITLE WORKBOOK is a compilation of 5 years of research by the author and dozens of researchers, attorneys and laymen alike; an education obtained through fighting hundreds of court cases and dozens of creditors.

THE QUIET TITLE WORKBOOK is 417 pages, with 30 chapters and over 20 legal pleadings, motions and letters you can cut and paste with your personal information to fight the banks and other “creditors” in or out of court. Many of these templates have been used repeatedly and have been successful numerous times. Most of the information is based on discoveries by the author and is currently being used around the country by attorneys, paralegals, legal groups and laymen. Some of these discoveries are so ground breaking that most attorneys never learned them in law school. An action to Quiet Title is the simplest and by far most effective way to beat the banks and prevent them from unlawfully and/or fraudulently foreclosing on your home.

THE QUIET TITLE WORKBOOK is the education and the ammunition you need to successfully beat the banks when they violate law and/or procedures to steal the home that is lawfully yours.

THE QUIET TITLE WORKBOOK will also show you how to fight creditors committing their typical dirty tricks to steal personal property or obtain fraudulent judgments against you.

Separately, the information and documents in THE QUIET TITLE WORKBOOK would cost you well over $20,000 if you hired a law firm to write the legal documents and teach you the information.

THE QUIET TITLE WORKBOOK was written by John Stuart to teach all those who are “WILLING to fight for their rights” and can only be purchased at www . showmetheloan . net. Download yours today!

AS A FREE GIFT WE ARE OFFERING A POWERFUL AND HIGHLY EFFECTIVE CREDIT BUREAU TEMPLATE FROM THE QUIET TITLE WORKBOOK.

Go to www . showmetheloan . net/forum/showthread . php?tid=4 to receive your free credit bureau template today.

DECLINE, DECAY, DENIAL, DELUSION, & DESPAIR

The majority of Americans seem OK with just waddling through life, accepting the lies and misinformation blasted from the boob tube and their various iGadgets by their owners, gorging themselves to death on Twinkies and Cheetos, paying 15% interest on their $10,000 rolling credit card balance, and growing ever more dependent on the welfare/warfare state to provide and protect them from accepting personal responsibility for their lives. A minority of critical thinking people have chosen to question everything they see and hear being spewed at us by the propagandist mainstream media, the corporate fascist government, and the powerful banking cabal that has an iron grip upon our throats as they choke the life out of the global economy in their never ending desire for more riches and more power.

The decline of the Great American Empire cannot be attributed to one factor or one bogeyman. There are a multitude of factors, villains, and choices made by the American people that have led to our moral, civil, social, and economic decline. The kabuki theater that passes for our electoral process is little more than a diversion from our imminent fate. Neither candidate for President has any intention of changing the course of the U.S. Titanic. Our rendezvous with destiny has been charted, and there aren’t nearly enough lifeboats. Those who built the ship and recklessly navigated it into a sea of icebergs will be the 1st into the few lifeboats. The leaders we’ve chosen, the choices we’ve made, and our unwillingness to deal with facts and reality have set in motion a disaster that cannot be averted. It’s a shame the majority of Americans have the math aptitude of a 6th grader, because the unsustainability of our empire can be calculated quite easily. Math is hard for Americans, but denial and delusion are easy.      

Oddly, a couple of late September days in Wildwood NJ were able to crystalize many of the aspects of our cultural and economic decline in my mind. I should have just enjoyed the 72 degree temperatures, a few beers, and the freedom to read a book on my deck. I wish I was just oblivious to my surroundings, but my weekend in Wildwood NJ was an eye opener. Everywhere I turned I saw something that made me laugh, shake my head in disgust, or wonder how our government could have become so inane, incompetent and out of control. We all generalize based upon our preconceived beliefs, but sometimes what you see is what you get. The weekend started normally with a morning bike ride on the boardwalk with my wife and son to the Hereford lighthouse in North Wildwood. Along the way we passed the usual suspects on the boardwalk: the obese, the tattooed, the pierced, and the blue haired. I wish I was exaggerating, but I saw a dozen hoveround and rascal scooters carrying extremely obese Americans on par with this person:

 

If I wanted to be politically correct, I’d call the fat asses cruising on their “free” rascal scooters, the weight challenged disabled on their powered mobility enhancement vehicles. You know a trend has become a massive scam, when South Park dedicates an entire show to the shame of obesity and the scooter brigade. The majority of the scooter squad jamming up the boardwalk was less than 50 years old. They weren’t disabled. They were just too obese and lazy to wobble down the boardwalk to the next junk food joint. They were certainly in the right place. The Wildwood boardwalk is home to pizza topped with cheese fries, chocolate covered bacon, fried Oreos, funnel cake topped with powdered sugar, and 64 ounce sugar laced lemonade. The place would make Nanny Bloomberg’s head explode.

   

 

We’ve all seen the commercials for the Scooter store urging anyone on Medicare to rush in and get a power scooter or wheelchair “at little or no cost to you”. The entitlement “free shit” mentality permeates our culture. There is a cost and it is over $800 million per year, paid for by the 53% who pay Federal taxes.  Records from the Centers for Medicare and Medicaid Services show that the cost of motorized scooters and wheelchairs to the government health service for senior citizens rose 179% between 1999 and 2009, the last year for which full records are available. This data is fascinating as the number of Americans over the age of 65 only increased by 18% over this same time frame. The bill in 1999 was $259 million; in 2009 it was $723 million – and is surely over $1 billion today. This is another billion dollar scam being funded by your tax dollars, but there are no spending cuts possible according to our beloved Congressmen.

A recent report by Medicare’s inspector general also showed that 61% of the motorized wheelchairs provided to Medicare recipients in the first half of 2007 went to people who didn’t qualify for them. (Only people who cannot get around without one are supposed to be eligible.) The inspector general found that Medicare is billed an average of $4,018 for a motorized wheelchair that normally sells for $1,048. As a taxpayer, you will be shocked to find out that people are selling their “no cost” Rascal 600 B mobility scooters on eBay. I’m sure the keen eyed government drones working in the Health & Human Services agency are policing the resale of taxpayer paid for scooters. I find it amusing that scooters have various naming classes, just like BMW and Mercedes. The vast majority of people I see tooling around on their “mobility scooters” are just plain fat. They aren’t over 65 years old. On my Sunday bike ride I was flabbergasted and amused by the sight of a 350 pound woman on a Rascal with the pedal to the metal pulling a 275 pound man in a wheelchair attached by rope. The plague of slow metabolism is sweeping the countryside.    

 

While I was relaxing on my deck reading and trying to blot out the nightmare visions of obese boomers in Rascal formation like German panzers invading Poland, a brand new SUV pulled into the parking lot across the street. After five minutes, the driver’s side door opened and out sidled a four foot five, two hundred and fifty pound female senior citizen in all her girth. She waddled to the back of the SUV and opened the hatch to extract her walker with wheels. She began berating the three hundred pound dude that got out of the passenger side to come and get his walker. Then she motored off towards Laura’s Fudge, while her hubby conserved his energy waiting by the SUV. Minutes later she scooted her way back hauling a sack of fudge. They then trundled off towards the boardwalk, most likely headed for Kohrs Bros for a double dipped fudge ice cream cone or some Boardwalk fries smothered in cheese.   

  

Based upon my unscientific assessment of the people walking on the Wildwood boardwalk, I would conclude that 35% of the people are obese, 40% are overweight by 20 or 30 pounds (myself included), and 25% are in relatively good shape. After checking the government statistics, my assessment appears to be accurate. Who is to blame? The easy answer is to just blame the individual for their lack of self-restraint and inability to contain their impulses. But when you consider that 160 million out of 232 million adults in this country are either overweight or obese, along with 11 million adolescents, there must be something more sinister behind the phenomenon. There is no doubt that a major portion of the blame must be laid at the fat feet of those who could have exercised restraint over their cravings, but the words of master propagandist Edward Bernays provides another factor in the equation:

“If we understand the mechanism and motives of the group mind, it is now possible to control and regiment the masses according to our will without them knowing it.” – Edward Bernays

     

Bernays reveals a truth that is self-evident to those with critical thinking skills. Sadly, few Americans exhibit any thinking skills whatsoever. Our society has bifurcated into those who control and those who are controlled. The overlord Double Plus Alphas in our society consist of the Wall Street banker cabal, the executives of our mega-corporations, Federal Reserve governors, Washington DC politicians, Federal government apparatchiks, the propaganda experts in the mainstream corporate media, and the secretive billionaire set that manipulate and maneuver behind the scenes. The first step in controlling the Gammas, Deltas and Epsilons, as Aldous Huxley knew in 1931, was to indoctrinate them with propaganda in our government run schools. This mission has been accomplished. The vast majority of school children graduate from the government school system with no ability to think critically or question what has been spoon fed to them as facts. The fascist alliance of corporations and the state begin in the public schools, with product advertisements by corporations now subsidizing school budgets. The road to obesity is paved with chicken nuggets, fries and pizza dispensed by the government schools on a daily basis.

Just as in Huxley’s Brave New World, America has been built upon the principles of Henry Ford’s assembly line—mass production, homogeneity, predictability, and consumption of disposable consumer goods. In the dystopian novel, members of every class, from birth, are indoctrinated by recorded voices repeating slogans while they sleep. Huxley didn’t imagine the power of TV and other mass media outlets to do the same while we are awake. We are bombarded day and night by propaganda from mega-corporations to buy their products. Mass consumption of processed food sold by the likes of multi-billion dollar corporations Kraft, Pepsico, Coca Cola, General Mills, Nestle, and Unilever is the chief cause of the obesity epidemic in America. The few know how to manipulate the many through messaging, repetition and persistently molding the opinions of the feeble minded non-thinking masses. The billions spent by corporations on advertising to convince the masses that eating a Wendy’s Baconator, KFC extra crispy bucket, or Double Quarter Pounder with Cheese, washed down with a two liter Mountain Dew or Cherry Coke, is a tribute to the invisible government running the show. Huxley and Bernays had it all figured out eighty years ago:            

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this 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 daily 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 which control the public mind.” – Edward Bernays, Propaganda, 1928

The conscious and intelligent manipulation of the masses by the invisible government Alphas has transmuted citizens into overweight, non-thinking, debt dependent, egocentric consumers. This was not a mistake. The powerful interests used their control over the banking system, media outlets, and political system to lure the willfully ignorant into a debt financed lifestyle through the Federal Reserve created inflation, Wall Street peddled credit cards, auto loans and “creative” mortgages. The manipulators convinced the manipulated that borrowing today to buy houses, cars, bling, tech gadgets, clothing, and fast food was preferable to what previous generations of Americans had done – save to buy things they wanted or needed. This behavior seems to be completely irrational as a people that once saved 12% of their income and carried a moderate amount of debt chose to reduce their savings to 0% and not worry about tomorrow.

 

It is easier to understand when you realize who benefitted from this purposeful shift in societal norms. The low debt, high savings, production era from 1950 through 1980 benefitted the working middle class, allowing millions to improve their standard of living. The rising debt, low savings, consumption era, from 1980 through today, benefits the 1% Alphas while impoverishing the middle class and sentencing the lower class to a lifetime of dependent servitude to the state. Who benefitted from debt fueled conspicuous consumption and continues to benefit today? The peddlers of consumer debt on Wall Street and the mega-corporations that convinced Americans they couldn’t live without that 5,500 square foot McMansion, BMW X5, stainless steel appliances, 84 inch 3D HDTV, iPhone 5, diamond encrusted Coach handbag, and thousands of other Chinese made trinkets that pile up in underwater homes across the land, benefitted tremendously. The proliferation of debt resulted in obscene profits for the financial sector, record profits for the mega-corporations that shipped production to Asia in order to take advantage of the slave labor, and three decades of wage stagnation and increasing debt for the average working middle class American.    

 

The financialization of America was a conscious decision by the oligarchs. They controlled the issuance of credit. They controlled the currency and level of inflation inflicted upon the masses. They controlled the corporations selling consumer goods on credit. They controlled the Congress, courts, and government agencies with their deep pocket lobbying and buying of influence. Lastly, they controlled the media messages and molded the opinions and tastes of the masses through their Bernaysian propaganda techniques perfected over the decades. In one of the boldest and most blatant acts of audacity in world history, the Wall Street/K Street oligarchs wrecked the world economy in their insatiable thirst for profits, shifted their worthless debt onto the backs of taxpayers and unborn generations, threw senior citizens and savers under the bus by stealing $400 billion per year of interest from them, and enriched themselves with bubble level profits and bonus payouts. Meanwhile, median household income continues to fall, real GDP is stagnant, true unemployment exceeds 22%, and 47 million people are living on food stamps.   

 

The propaganda being flogged by the oligarchs since 2009 is the supposed deleveraging by the American consumer and trying to convince the ignorant masses to resume borrowing and spending. It’s working. Consumer credit outstanding is at an all-time high of $2.73 trillion as the Federal government has dished out billions in student loans to 50,000 University of Phoenix MBA aspirants sitting in their basements quivering with anticipation of on-line graduation and future six figure job with Goldman Sachs. The Feds have also added the impetus to the “strong” auto sales through their 85% TARP ownership of Ally Financial by doling out 7 year 0% auto loans to subprime borrowers in urban enclaves around the country. The oligarchs aren’t worried about these loans being paid back, because they are reaping the profits today. The future losses will just be foisted onto the taxpayer, as always. Total credit market debt of $55 trillion now exceeds 350% of GDP. The National Debt of $16.2 trillion will exceed $20 trillion in 2015 no matter who wins the Presidency in November. The oligarchs adapt and control whoever occupies the White House. It is essential for our owners to keep debt growing at an exponential rate or the Ponzi scheme collapses.

Narrow minded ideologues want a simple answer to a complex interaction of generational, cultural, economic, political, and criminal factors that have conspired to put the country into a predicament that, at this point, will inevitably lead to economic collapse. The truth is the American people have learned to love their servitude. They have willfully chosen ignorance over truth. They’ve chosen to believe what their keepers have instructed them. They’ve chosen to trust the storylines generated by the corporate media rather than think critically and question everything. They’ve chosen obesity and sickness over health. They’ve chosen debt financed faux wealth over savings based real wealth. They’ve chosen safety and security over liberty. They’ve chosen dependency over self-reliance. These choices were aided, abetted and promoted by the Alphas through their ability to manipulate and control the unthinking masses. Huxley understood the power of propaganda and brainwashing decades before it was perfected by our owners.  

“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, because they will be distracted from any desire to rebel by propaganda or brainwashing, or brainwashing enhanced by pharmacological methods. And this seems to be the final revolution.”Aldous Huxley

The saddest part of this episode of the Decline & Fall of the American Empire reality show is the continued delusion of the majority of the populace, as their desire for material goods and fair share of the entitlement pie outweighs their sense of obligation to their children and grandchildren. Their chosen ignorance is fulfilled through their attachment to their personal digital ignorance gadgets and supported by what passes for government education. The truth is obscured and hidden under waves of triviality, reality TV, and data manipulation by our government masters. The dystopian nightmare that engulfs our country has thus far resembled Huxley’s vision of a shallow populace easily distracted by consumerism, pleasure seeking, cultural trivialities, and a never ending ability to be distracted by meaningless minutia. Orwell’s darker vision of surveillance, captivity, information control, authoritarianism and pain will become the norm once the existing social order falls.   

“What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who wanted to read one. Orwell feared those who would deprive us of information. Huxley feared those who would give us so much that we would be reduced to passivity and egotism. Orwell feared that the truth would be concealed from us. Huxley feared the truth would be drowned in a sea of irrelevance. Orwell feared we would become a captive culture. Huxley feared we would become a trivial culture, preoccupied with some equivalent of the feelies, the orgy porgy, and the centrifugal bumblepuppy. As Huxley remarked in Brave New World Revisited, the civil libertarians and rationalists who are ever on the alert to oppose tyranny “failed to take into account man’s almost infinite appetite for distractions.” In 1984, Orwell added, people are controlled by inflicting pain. In Brave New World, they are controlled by inflicting pleasure. In short, Orwell feared that what we fear will ruin us. Huxley feared that our desire will ruin us.”Neil PostmanAmusing Ourselves to Death

I despair for my country that has chosen to eat, amuse and borrow itself to death. But my despair is deepest for my children and their future. The greed, corruption, myopia, selfishness, and disregard for the well-being of future generations by current and past generations has left a barren and bleak landscape for my children. The Huxley vision of America consuming and amusing itself to death is coming to a painful conclusion, as the limits of a fiat currency and debt based lifestyle become evident. Those in power are preparing the masses for a more Orwellian vision of America when they are forced to pull the plug on the existing paradigm. The Patriot Act, NDAA, military exercises in our cities, militarization of local police forces, warrantless surveillance of our communications, searches and seizures in our airports and train stations, purchase of millions of rounds of ammo by government agencies, implementation of drone technology, camera surveillance, attempts to control the internet, manipulation of economic data, and executive orders allowing the President to take over all commerce while imprisoning citizens indefinitely without charges, are the next step in our descent into a dictatorship of tears.

The question is whether we will stand idly by, fiddling with our gadgets, tweeting about Honey Boo Boo, or will we regain our sense of duty to the future generations of this country. The manipulators are powerful, rich, connected and FEW. Those being manipulated, controlled, and abused are MANY. There will be a revolution in this country whether you like it or not. The existing social order will dissolve during the next fifteen years. What replaces it is up to us. George Carlin described what our owners want.

“Politicians are put there to give you that idea that you have freedom of choice. You don’t. You have no choice. You have owners. They own you. They own everything. They own all the important land, they own and control the corporations, and they’ve long since bought and paid for the Senate, the Congress, the State Houses, and the City Halls. They’ve got the judges in their back pockets. And they own all the big media companies so they control just about all the news and information you get to hear.

They’ve got 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.”

What do “We the People” want?      



 

THROWING A WEDDING – PHILLY STYLE

I thought you might like to know this happened at a nice hotel in a nice area of Philly. Imagine the scene if they actually ever had a wedding in West Philly. Kickin it Philly Style. Tasers, batons, and wedding cake.

http://youtu.be/gQI9W1aqfAI

The Positive Power of Crisis

by Charles Hugh Smith..

Only in crisis do human beings actually change anything.


If there is any demarcation with profound implications going forward, it isn’t the line between the 1% and the 99% or the line dividing the Status Quo into two safely complicit ideological camps: it is the divide between those who squarely face the burden of knowing the present is unsustainable and those who flee into the comforts of denial. Those who accept the burden of knowing are part of the solution, those who cling to denial are part of the problem.

Those who accept the burden of knowing do not necessarily have answers, but they are alert to alternatives and potential solutions. Those in denial can only hope that reality can be buried for a while longer

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Thus we have pronouncements that “the euro is irreversible,” that progress is being made, and so on. Nothing has been fixed, but those clinging to denial are comforted that crisis has been pushed forward once again.

Pushing problems under the rug doesn’t solve them; they only get worse. This is the positive power of crisis: only in crisis do human beings actually change.

As long as “enablers” are around to protect them from the consequences of their actions and choices, addicts are free to pursue their destructive (to themselves and others) ways. The addicts can be sociopaths or they can be “normal;” the unifying characteristic is their terror in facing the end of the Status Quo, even when the Status Quo is patently destructive and unsustainable.

In the Status Quo, the “enablers” include everyone who gains if the Status Quo continues unchanged, as they are hoping to collect their share of the unpayable promises that have been issued to buy political support or silence, i.e. complicity.

The “handlers and enforcers” of the neofeudal Status Quo–the political and financial Elites and their Upper Caste of managers and apparatchiks–are consciously shoving problems under the rug, in the hopes that some sort of unknown magic will restore the elixir of “growth” that has reliably bailed out the corrupt, increasingly fragile skimming operation (the Status Quo).

The Internet boom bailed it out in the 1990s, and the global housing bubble bailed it out in the 2000s. Now the skimming operation has run out of miracles, and its true nature–it is fundamentally a cargo-cult–has been revealed. Central bankers and their political toadies are in effect praying for a miraculous return of prosperity by painting radio dials on rocks and dancing around the campfire late at night.

The process of shoving structural problems under the rug takes two forms: one is to manipulate data and news flow to “manage perceptions” that all is well, that the Elites have the will and power to force the system back to “set point.” The Machine’s visible failure to do so after four years of ceaseless “fixes,” stopgaps, reassurances, pronouncements and increases in complexity suggests not that it has the power to do so, but that it has lost the ability to repair the boilers with policy/intervention duct-tape.

The other is propaganda: announcing that the latest “fix” will do the trick, or more perniciously, that the present crisis is not an “unrecognized Depression” but merely another “business cycle” recession. Human habituate rather quickly to a range of “normal,” and so the substitution of manipulation for accountability becomes “normal” over time.

The “new normal” isn’t just a decline in purchasing power and employment; it is the slow loss of institutional legitimacy as the lies and obfuscations pile up.

But since the underlying dynamics are continuing to expand, masking the problems only increases the fragility and vulnerability of the system as the extremes are pushed ever farther out the curve.

For example: if too much leverage is the problem, the Status Quo solution is to increase leverage and hide the increase in opaque derivatives, offshore banking accounts and “dark pool” trading.

Now that collateral has vanished, the leverage in the system is near-infinite. The Status Quo “solution” is to issue new phantom assets to replace the assets which have become recognized as illusory.

How many iterations of the game can be run before some non-linear second-order effect causes the sandpile to collapse?
Rather than fear the crisis, we should embrace it, for it is only in crisis, when all the lies, half-measures, excuses and backstops have broken down, is positive transformation possible.

End

Free Speech – a threatened commodity….

“Free speech”, such a simple two word phrase.. What is it? Do we really have it? Can we keep it?

Does free speech mean anything exactly? The ability to offend anyone we please, any time we please? The opportunity to spread religious dogma to any and all that will listen? Do we have the ability to force others to listen despite their wishes? Do we have the “right” to do that? What is a “right”?

Let’s look at the last, first.

A “right” is something we feel entitled to (like the FSA – they have a perceived “right” to their free shit). We have a right to this or that, be it a land title, a copyright, a car we “own” or something called “free speech”. We own these things because a whole lot of men, women and children have died in the defense of or earning and keeping that “right”. A lot of the women and children were peripheral casualties thereof but the cost to them was the same as for the men and women who fought the wars and died in battle.

There is an old saw that says, “Freedom is not free” and that includes free speech. It must be defended or earned as the case may be and it is also very easily lost if taken for granted. (for those interested in trivia, it was coined by Colonel Walter Hitchcock (USAF Retired)).

Unfortunately, here in the “Land of the Free”, our Federal Government is dallying with the idea of limiting free speech in the interest of something called “International respect of religion” whatever in hell that means. How is it so dallying?

The idiot who made the recent bad (from quality and taste) video “Innocence of Muslims”, posted it on YouTube is a good example of Federal knee jerk in the direction of not-so-free-speech. They made the attempt to get Google to remove it from YouTube.. Epic Fail. This led to riots in Egypt and Pakistan and the eventual death of a US Ambassador and three other Americans in our Embassy in Benghazi, Libya. Did we, as a country, react any better this time to the murder of our citizens and destruction of internationally recognized American territory than Peanut Jimmy did in Iran so many years ago? No, we did not and more significant American “face” not to mention international legal “rights” were trashed. The incident has since been blamed on, of course, Al Quida who is a convient whipping boy for any attack anywhere these days, whether they did it or not.

[As an aside, Al Quida is now defunct as an organization except in NE Pakistan. Al Quida is an idea and a vicious cause, connecting many small, totally independent groups, acting mostly on their own, under one fearful name. At least our Federal Government wants Al Quida to be fearful as they are the “enemy” now in our perpetual war against “terror”. I personally call BULLSHIT on the whole idea of a war on terror. Instead, we should be laughing at their pitiful efforts because since 9/11/2001, they have not accomplished diddly here in this country and are only as effective as an occasional snake bite elsewhere. Almost every arrest for “terrorism” made in this country sind 9/11 has been made by a “sting” operation of the Feds planting agents among fools and facilitating some “act of terror” which is a sorry anti-real terrorism tactic. I’d be in more danger walking about naked in a severe Florida thunderstorm with a lightning rod raised above my head and a ground wire trailing from my poor old ass than I am from “Al Quida” !]

The real terrorist here is Islam. Echos of history abound as the Crusades and Inquisition come to mind – which were terroristic as any Al Quida operation, just operating with lesser tools and scope. Same old Shit… My religion is the only true religion and if you don’t believe in it and do as I say, I’ll kill you to make sure you do.

Idiocy.

Islam is a religion of poverty, ignorance, savagery, subjugation of women and death itself. There is no life itself here on Earth for it is all in paradise, promised to those who serve Islam and die doing it. Such crap.

Islam’s goal is world dominance of their religion and behavior, including their blasphemy and Sharia laws. Islams’ behavior does not include free speech and our current kiss-ass Federal Government is leaning ever more so backwards to accommodate this view by sniffing about the possibility of censoring publication of anything calculated (by them) to offend any religion, organization or peoples anywhere on the face of the globe. This is a very bad idea and worse policy on the part of the U.S. Federal Government.

They should, of course, be doing the exact opposite. Instead of sending a high ranking military group to attempt to silence the Florida backwoods preacher who wanted to burn the Koran (I’d have lit the match), they should toss a few extras on the fire and say in no uncertain terms the following:

“Free speech is the bed rock of our country, our way of life and our prosperity. The free and unfettered exchange of ideas and opinions has resulted in what became the most prosperous and power Nation the world has ever known. It could not have happened without free speech.”

That’s why is Free Speech is protected as the very first item in the Bill of Rights. Why was it first? I suspect because our founding fathers found that without the ability to freely communicate, everything from productive ideas and gossip to insults and ridicule, none of the other nine items were worth the parchment they were written on. That’s the way I feel too, in spades.

So the next time you hear Hillary Clinton try and pacify the United Nations or anyone else by blathering about “offensive language against religions everywhere” do us all a favor and write her a letter (with a cc: to Obummer) and tell her to stuff her attempts to limit our Free Speech up her not so tiny little butt. Anyone, anytime, at any level of Government from local thru State to Federal that tries to muzzle or limit free speech needs to be slapped down very quickly and very thoroughly and my multitudes of freedom loving Americans.

Free speech is America and America is the best “keeper of the light” as far as free speech and we should not risk losing even a shaving from it..

MA

CALIFORNIA DREAMIN

Colma should be happy. Another reason people will be staying away from California. So let me get this straight. Tax revenues are plunging because rich people are leaving the state and no one can afford to shop anymore. Cities are declaring bankruptcy left and right because they promised government workers gold plated health and pension benefits. Gas prices are 17% higher than the rest of the country because they haven’t allowed a refinery to be built in three decades. They have an unemployment rate over 11%. And Moonbeam Jerry Brown is urging them to vote themselves a tax increase in November so he can keep the lights on in Sacramento. At least they have nice weather.

Calif. gas prices jump by up to 20 cents overnight

SAN FRANCISCO — Californians woke up to a shock Friday as overnight gasoline prices jumped by as much as 20 cents a gallon in some areas, ending a week of soaring costs that saw some stations close and others charge record prices.

The average price of regular gas across the state was nearly $4.49 a gallon, the highest in the nation, according to AAA’s Daily Fuel Gauge report.

In Southern California, the price jumped 20 cents a gallon overnight to $4.53 in Ventura. And in the Los Angeles-Long Beach area prices went up 19 cents to nearly $4.54. And it wasn’t any better to the north, as a gallon of regular gas in San Francisco averaged nearly $4.60.

In many areas, prices have jumped 40 cents in a week as refinery problems have created shortages and helped send wholesale prices soaring. Some stations ran out of gas and shut down Thursday rather than pay those costs.

Even Costco, the giant discount store chain that sells large volumes of gas, decided to close some stations, the Los Angeles Times (lat.ms/OGwEV2) reported.

“We do not know when we will be resupplied,” read a sign at one Southern California Costco, according to the Times.

Other gas stations charged more than $5 a gallon. The Low-P station in Calabasas charged $5.69 Thursday. The pumps bore hand-written signs reading: “We are sorry, it is not our fault,” the Times said.

While gas prices have spiked around the nation, refinery outages and pipeline problems have added to woes in California.

Among the recent disruptions, an Aug. 6 fire at a Chevron Corp. refinery in Richmond left one of the region’s largest refineries producing at a reduced capacity. A power failure in Southern California has affected an Exxon Mobil Corp. refinery, and a Chevron pipeline that moves crude to Northern California also was shut down.

The national average for gas is about $3.79 a gallon, the highest ever for this time of year. However, gas prices in many states have started decreasing, which is typical for October.

But in California, gasoline inventories are the lowest in more than 10 years — a situation made worse by the state’s strict pollution limits that require a special blend of cleaner-burning gasoline during hot summer months.

Patrick DeHaan, senior petroleum analyst at GasBuddy.com, said he is seeing the highest prices in the state around Los Angeles, where on Thursday at least five stations have crossed the $5 a gallon mark, including $5.29 in Burbank and $5.11 in Norwalk.

Prices will keep rising, he says, because in the past week wholesale gasoline prices have jumped $1 a gallon, but average retail prices have increased only 30 cents.

“This is one of the easiest forecasts: Retail prices are going to skyrocket,” DeHaan said.

The jump in wholesale prices can be particularly tough on independent gas stations that often pay more for their gas because they are not part of a larger chain.

Tom Kloza, chief oil analyst at Oil Price Information Service, said he’s heard of a few California station owners shutting their pumps rather than charging the $4.90 a gallon or more necessary to break even.

“Wholesale price increases lead to retail price increases,” Kloza said. “But there is some restraint among companies who do not want to exercise their current pricing power and irritate their customers.”

Some analysts think prices nationally will begin to decline soon but say California could see a longer spike given its unique fuel requirements.

“Nationally, I believe most prices will wobble to and fro for the next week or so, with an eventual slow but steady attrition in retail gas prices, particularly in the Midwest and Southeast,” Kloza said. “California is a wild card.”

GREATEST SHOW ON EARTH

I watched every minute of the debate last night. Millions of people watched the debate. Millions more watched Honey Boo Boo. It will be interesting to see which show was watched by more people – a true reflection on our society. It was clear to me after 30 minutes that Romney was winning the debate. I consider myself a neutral observer that despises both men. As the debate progressed the beatdown became more apparent. Romney essentially obliterated Obama. But, why wouldn’t he? Obama’s record is nothing but failure, debt, unemployment and war. I watched it on PBS, but immediately switched to MSNBC after the conclusion to hear the ultra-liberal spin. I expected them to declare Obama the winner, but Madow and Shultz were practically speechless. They looked like someone in West Philly who was just told their EBT card would no longer work at KFC. Al Sharpton went into a full out rant, practically foaming at the mouth. I switched to CNN and this pathetic excuse for a news organization had the Obama communist supporter Van Jones trying to explain why Obama came across like a dimwitted moron. It was revolting listening to that jackass.

But, at the end of the day it was nothing but a beauty contest between two vacuous stooges put up by our owners. They both blathered on about cutting the defict. They DID NOT talk about reducing our National Debt. They are confident in the fact that the ignorant masses don’t understand the difference between deficit and debt. Under either of these morons, the national Debt will surpass $20 trillion by the end of their term. That is not cutting!!!! The lies about balanced budgets are beyond the pale. The only way to balance our budgets is to dramatically cut the military, SS, Medicare, Medicaid, DHS, and scrap the existing tax system and all its free shit handouts. Neither candidate has any intention of reducing the size of our government. They have the balls to declare that they will create jobs. Bullshit. The Federal Government creates nothing. They take our money and redistribute it to their cronies.

The bullshit that infuriated me the most was the utter crap about energy independence. We consume 18 million barrels of oil per day and we import 10 million of those barrels. We convert some of that oil to gasoline and export 2 million barrels of that per day. The shale oil and shale natural gas storyline has been exaggerated by the hypesters and shysters. It is impossible for us to become energy independent. Should we use everything at our disposal (oil, gas, coal, nuclear, hydro, geothermal, solar and wind)? YES. But nothing will replace oil. And the energy required to produce the energy we need will become increasingly expensive no matter what. To mislead the American public with bullshit slogans about energy independence is criminal.

The American people need the truth. They need someone to hit them over the head with a 2 by 4. Slogans and kabuki theater aren’t going to cut it. At the end of the day, the American people got more truth from the episode of Honey Boo Boo than they did from this farce.

 

THE NOOSE TIGHTENS

The government slowly and methodically tightens the noose around our throats and no one notices or cares. Do you feel safer than you did in 2000? The Federal government was spending $1.8 trillion per year in 2000. Today they are spending $3.8 trillion, a 111% increase in 12 years. The GDP has risen from $10 trillion to $15.6 trillion over this same time frame, a 56% increase. Do you think the Federal government is twice as good as it was in 2000? Total government spending in the country (Federal, State & Local) has gone from $3.2 trillion in 2000 to $6.3 trillion today. Government spending was 32% of GDP in 2000. Today it is 40% of GDP. Has this been beneficial to the country or your life? We need to open our eyes and realize what is happening before it’s too late.

 

 

Your license plate may be an open book

Monday, October 1,2012

A CAR SAYS a lot about its owner, perhaps a lot more than the owner might suspect.

In an extensive examination of automated license-plate tracking technology, The Wall Street Journal reports that the new tracking devices have the capacity to do more than a one-shot confirmation whether a car is legally registered but over time build a picture of the driver’s habits, travel routes and destinations.

And there is now the capacity to store the information cheaply and in huge quantities. One plate-tracking company, according to the Journal, has 700 million scans on record.

As the cost of plate-tracking technology has dropped, more and more police departments are acquiring the devices — more than one-third of large U.S. police agencies in 2012 by one estimate — many of them paid for by the Department of Homeland Security.

Meanwhile, the camera and software technology to photograph and read license plates has improved dramatically.

Law enforcement agencies say they use the devices to identify stolen cars, ticket scofflaws and track the vehicles of suspected criminals.

THE PRIVACY implications are chilling, especially to the International Association of Chiefs of Police that cautioned the devices can record “vehicles parked at addiction counseling meetings, doctors’ offices, health clinics or even staging areas for protests.”

In the course of their analysis, Journal reporters Julia Angwin and Jennifer Valentino-DeVries found that data about a typical American is collected in more than 20 different ways during everyday activities.

And there is a growing capacity to match this data with credit card, cellphone location, online searches and social network databases.

The early entrant firms to the field of tag tracking were typically started by “repo men,” specialists in retrieving vehicles from deadbeats. Scott Jackson, founder of MVConnect, tells the Journal he would never sell the data his firm collects to marketers or the general public.

THAT’S NOT to say someone else won’t. One firm, Baltimore-based Final Notice Location & Recovery LLC, tells the Journal that it has amassed a database of 19 million plates in locations in Maryland and Washington, D.C. The information is given free to police, but the company tells the newspaper that it soon hopes to sell the information to jail bondsmen, process servers, insurance companies and private investigators.

Privacy stands little chance where there is an economic incentive to intrude upon it. Indeed, privacy seems more and more like a quaint notion left over from the 20th century.

— Scripps Howard News Service

SERVING & PROTECTING

PHILADELPHIA’S FINEST

http://youtu.be/3Fn0mrdmXZI

Monday, October 1, 2012

Video shows police supervisor hitting woman at Puerto Rican Day festivities

A Philadelphia police supervisor hit a Puerto Rican Day reveler twice in the head so hard yesterday that the blows sent the woman to the ground and then she was charged in the incident, according to police and a video posted on YouTube Sunday.

When the video begins, it appears several revelers are spraying water on the street and on the police officers. It is unclear if the woman is one of them, but she does have what appears to be a water bottle in her hand.

A police supervisor in a white shirt seems to zero in on the woman and as she tries to walk away from him, he comes up behind her and hits her in the face and then in the back of the head. She falls to the ground and seems to be asking the officer “why” as he places handcuffs on her.

Once in handcuffs, she is led away by two other officers and is seen with blood on her face. All the while, a Puerto Rican flag hangs from the back of her pants.

The video, titled “Philadelphia Police Brutality” is 36 seconds long and had 305 views by 11 a.m.

Police spokesman Lt. Ray Evers said the department is “fully aware” of the video and what it depicts. He said the officer involved has been identified and Internal Affairs opened up an investigation in to the incident this morning. He said Commissioner Charles Ramsey, who is in San Diego at a conference, is also aware of the video.

Evers declined to publicly identify the officer, but did say he is a supervisor in Highway Patrol. He did not know if the officer had been placed on desk duty.

Police also declined to identify the woman, who was given a disorderly conduct citation for the incident. According to Evers, the 39-year-old woman’s citation states “liquid and some other objects were thrown at a group of officers causing a large crowd.”

She was the only person given a citation for the incident, Evers said.

The incident did not happen along the Puerto Rican Day Parade route, but rather, at 5th Street and Lehigh Avenue in North Philadelphia, according to police.

 

 

Update: The highway patrol supervisor seen hitting the woman in the video has been identified by sources as Lt. Jonathan Josey II, a man who once nominated himself to be a Daily News Sexy Single.

Josey, 39, a Daily News Sexy Single in 2006, said his most outstanding features were his “charm and magnetic personality.” He said he was looking for a “sexy, sexy, sexy” woman and was sick of meeting women that act like girls.

In July 2010 while he was off duty, Josey was stabbed outside a West Philly bar while trying to break up a fight. In March of 2010, he fatally shot an armed robber in Montgomery County when he interrupted a robbery at a 7-Eleven.

Jonathan Josey, one of the Daily News Sexy Singles for 2006, was photographed in June 2006 at Al Capone’s house in Atlantic City

WITHERING ON THE VINE

Whenever I see stories like the one below, I find myself focusing on the cultural and societal aspects, rather than what the writer was attempting to convey. The story captures the facts, but not the big picture of why this happened. It’s another sad story that has its roots in the delusion that debt financed spending equals wealth. The reason 30% of all the nurseries in the country have closed in the last five years is because they shouldn’t have been in existence in the first place. The demand for landscaping services in this country was falsely created by Ben Bernanke, Alan Greenspan and their printing presses. Greenspan’s interest rate policies created a false boom in housing. The false boom in housing led to a false boom in landscaping, renovations, decks, patios, appliances, and autos. Delusional Americans by the millions sucked the vaporous equity out of their houses and spent it on shit that made them feel richer. The took over $1.8 trillion out of their houses over 3 years and poured it into the economy, creating the illusion of true demand.

 

When the housing market crashed, the equity was vaporized, and homeowners were left with billions of debt and no cash. After the greatest housing boom in history, Americans are now left with near the lowest amount of equity in their homes in history. The boom started with Americans having in excess of 60% equity in their homes and today have less than 45% equity in their homes.

The demise of nurseries, Circuit City, Best Buy, millions of contractor jobs, and thousands of other small businesses can be directly blamed on the policies of the Federal Reserve. And now they are attempting the exact same medicine that created the misery in the first place. Their solution to a problem caused by excessively low interest rates and money printing has been to lower interest rates to zero and print money at hyper-speed. I just know it’ll work this time.

The story below glosses over the fact that the owners of this nursery made a choice to give their two daughters the weddings of a lifetime. It says this blew a hole in their budget. What is doesn’t say is that these people borrowed against their business to provide one day of extravagance for their daughters. How American of them. This is where the criminal actions of central bankers meets the stupidity, materialism and shallowness of the average American. If you can’t afford something, you don’t buy it. If you can’t afford an extravagant wedding without risking your livelihood, have a small affordable wedding. These people can blame their business failure on a struggling economy or circumstances beyond their control, but they made choices and are paying the price.

Until the people in this country come to their senses and realize that a debt financed lifestyle does not represent true wealth, we are destined to experience a depression for the ages. There will be thousands more small businesses that go under as the fake boom reaches its final bust stage.

” There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”Ludwig von Mises

 

Chesco nursery is among many that are withering

After 25 years, Dilworth Nursery has closed. Nationwide, so have up to 30% in the last five years, an expert said.

By Anthony R. Wood

Inquirer Staff Writer

 The Dilworth Nursery in Oxford, PA is being auctioned off.  (Photo by Tony Wood)
 
The Dilworth Nursery in Oxford, PA is being auctioned off. (Photo by Tony Wood)
 
The landscape of the nursery business began changing – and most definitely not for the better – about five years ago, but Jackie and Rick Dilworth didn’t expect theirs to end like this.

On Saturday, they circulated among thousands of their possessions – patio furniture, wood cabinets, kitchen items, the inventory of plants – while the practiced voice of an auctioneer spoke faster than the speed of the typical human’s comprehension.

As the result of a conspiracy of circumstances – most notably the struggling economy – after 25 years, the 13-acre Dilworth Nursery in East Nottingham Township, deep in Chester County near downtown Oxford, is closed for good.

The property is for sale, and the Dilworths aren’t sure where they’ll wind up.

“We never anticipated we’d go out this way,” Jackie Dilworth, 51, said. But they also knew, she said, that given the state of the industry, they could not continue to operate their wholesale-retail nursery, which specialized in unusual plantings for public gardens, arboretums, and landscape contractors.

“The business is not going to come back in our lifetime,” she said.

It certainly won’t happen soon, said Charlie Hall, a horticulture professor at Texas A&M University and an expert on industry trends.

Although hard data aren’t yet available, Hall estimated up to 30 percent of nurseries nationwide had closed in the last five years.

In the 1970s, he said, the nursery business was growing at a 14 percent annual rate, but that had slipped precipitously by the end of the 1990s.

He said that today’s twentysomethings could help revive the nursery trade eventually, but that it could take 15 years.

“It’s been a tough stretch for the nursery businesses and landscaping in general,” said Emelie Swackhamer, horticulturist at the Penn State agricultural extension in Lehigh County. For example, Waterloo Gardens retail shop recently shuttered its landmark Main Line store in Devon.

“People were using the equity they paid into their homes to pay for landscaping,” said Gregg E. Robertson, president of the Pennsylvania Nursery and Landscape Association. “That equity isn’t available anymore.

“The nurseries have been particularly hard-hit.”

Still, Bucks, Chester, Delaware, and Montgomery Counties have about 1,000 remaining nurseries, he said, adding, “Horticulturally, it’s one of the richest areas of the country.”

Along with a housing slump that has weakened demand for nursery stock, the industry’s troubles are deeply rooted in demographics, the experts said.

More baby boomers are moving into condos and letting the condo associations do the work. And many of the boomers staying in their homes are losing their appetite for the larger plantings nurseries sell.

In some ways, Swackhamer said, this literally has become a harder business: People are putting more money into “hardscape” – patios, decks, even outdoor additions.

“I think people want that comfort,” she said.

The Dilworths evidently were in the vortex of the industry storm. “That’s the type of nursery that’s been going out of business because of the recession,” said Susan Barton, a University of Delaware horticulturist.

The Dilworths also confronted a problem common among family-run nurseries: a lack of successors. “There’s always issues with transferring the business,” Swackhamer said.

Three years ago, the Dilworths encountered a not-so-common financial issue. Their two daughters got married, and the weddings ripped a huge hole in the Dilworths’ budget. Eschewing a modern trend, they had picked up the entire tabs.

“We did it the old-fashioned way,” Jackie Dilworth said.

Neither their daughters nor sons-in-laws wanted to continue the business.

Thus, on Friday and Saturday, the possessions accumulated over a generation – from spreaders to Adirondack chairs to Barbie dolls – were offered by Petersheim & Longenecker Auction & Appraisal Co. A pair of snowshoes went for $40; a metal patio set, $115.

About 100 people showed up to pick over plantings that included dwarf pine, blue plume cypress, and forest pansy redbud.

One of those attending, John Wallace, said that although he was sorry to see the nursery go, he would be sorrier to lose his neighbors.

“They’re very good people,” he said, “hardworking people. We’ll miss them.”

WTF STORY OF THE DAY

The liberal rag Phila Inquirer had this story on their front page today as an example of the “great” things being done by our beloved Federal Government. We pass Hammonton NJ on the way to the shore. It’s a podunk farm community. They employ Mexicans to pick blueberries. If the USDA was providing low interest loans to increase the blueberry crop or develop some new crop to sell to foreign countries, I wouldn’t blink an eye. But, why the fuck is the U.S. Department of Agriculture taking $600,000 of my tax dollars and supporting some theater of the absurd for farmers? This crap just piles higher and higher. We are borrowing $1.3 trillion per year from foreign countries and then we loan $600,000 at the same rate we are borrowing to some theater that will surely go under in the next 3 years. And most of the morons reading this story will see no problem with it. They won’t even question why the Dept of Agriculture has the ability to lend and grant their tax dollars to any business they choose. When you add up the money doled out to mega-corporations, bankers, the free shit army in West Philly, ethanol producers, the military industrial complex, senior citizens, and redneck theaters, your head should explode. But it won’t. The country is rejoicing. The NFL referee strike is over. Yippee!!! 

Arts angel to a theater in rural N.J.? USDA

By Howard Shapiro

Inquirer Staff Writer

 On stage at  the Eagle Theater in Hammonton, NJ are, from left, Ted Wioncek,  James Donio (Chairman), and Ed Corsi. PHOTO / CURT HUDSON
On stage at the Eagle Theater in Hammonton, NJ are, from left, Ted Wioncek, James Donio (Chairman), and Ed Corsi. PHOTO /
A little semiprofessional theater amid the farmland of Hammonton, N.J., has become the beneficiary of more than a half-million dollars in grants and low-interest loans from a most unlikely arts angel: the U.S. Department of Agriculture.

The Eagle Theatre, in the center of what’s known as the blueberry capital of the world, is wasting no time spending that money – its backstage area is filling with building materials and spiffy, soon-to-be-installed sound and lighting equipment, and construction has begun on a lounge-cum-wine bar for its patrons.

Eagle’s 2013 calendar features an eight-show season that includes the first production in the area of Lombardi, recently on Broadway, and the big-cast musicals A Chorus Line and Hair. Coming up this fall: The 25th Annual Putnam County Spelling Bee, the theater’s perennially popular Rocky Horror Picture Show, and a holiday extravaganza.

The Agriculture Department money is coming directly to the theater in three acts, so to speak: a $23,000 grant to improve its historic building and its ticketing and computer programming; an $89,000 20-year loan at 3.5 percent interest, mainly to enhance stage equipment; and a 30-year loan of $482,000 at 3.38 percent interest, to buy its building.

“It’s an unusual project for the USDA to finance,” said Howard Henderson, the department’s rural-development director for New Jersey. “This is a fascinating way we’ve been able to benefit a rural community.”

The Rural Development program, financed by Congress, exists to strengthen or help establish facilities in rural communities that will improve downtowns, provide services, and encourage local activities. But money usually goes to such projects as firehouse restoration or, as in New Jersey’s northern Sussex County, a plan for hospice units.

Henderson said he wasn’t surprised when the Eagle Theatre applied for the money 18 months ago, because it was no secret around Hammonton that “we have feet on the ground in rural areas.”

“But it’s unique. I believe this is the first theater we’ve done in Rural Development in anybody’s memory over, say, the last 30 years” – much of the time that such money has been available through the Agriculture Department.

It’s not unusual for local politicians to join arts groups in seeking federal money; indeed, community theaters and arts centers in nearby Millville and Vineland have been given new life by communities that believe the arts help revitalize downtowns. In the Philadelphia area, that’s also been a mantra in Media, Bristol, Souderton, Ambler, and especially Center City, where then-Mayor Ed Rendell championed Broad Street’s Avenue of the Arts.

It was the same idea that led to the Eagle Theatre’s revival in 2006, when a 6,000-square-foot warehouse – a block from the town’s main street and within eyeshot of NJ Transit’s station on its Atlantic City Line from 30th Street Station – was about to be demolished for a parking lot.

“I became interested in knowing its history,” said Hammonton native Tracy Petrongolo, an independent filmmaker and at the time leader of Hammonton’s first arts and culture committee. The Atlantic County town – population about 15,000 – is small enough that “if you ask the right people, you will learn the history of every building,” she said, “and we found out that was the old Eagle Theatre.”

It was opened as a silent-movie house in 1914 and sometimes had vaudeville action on its stage before becoming a warehouse only 13 years later. In the 1940s, a church moved in, and in the ’60s, a local family bought it for use as storage for their auto-parts company.

The nonprofit Hammonton Revitalization Corp., along with residents called Friends of Eagle Theatre, took out a loan to buy and rehab the theater – money that most of the Agriculture Department’s loan has replaced. No tax money was used to acquire or restore it; the town chipped in, with money and sweat equity.

“The Friends of Eagle Theatre themselves were actually in there with sledgehammers,” said Petrongolo, who later ran as an independent on an arts platform and won a council seat.

Hammonton now has an arts district that includes the Eagle Theatre, a branch of South Jersey’s Noyes Museum, a branch of Richard Stockton College, a dance studio, the longtime Hamilton Arts Center, and a dozen new working lofts for artists.

One night last weekend, the little theater on Vine Street began humming 20 minutes before showtime as about 140 people streamed in for one of the final performances of a two-act romp, Completely Hollywood (Abridged). The show, which affectionately mocks films, was given a high-style production and featured one of Eagle’s two artistic directors, Ed Corsi, in the cast.

It was a crossover audience, you might say, ranging in age from young adult to seniors, and crossing racial and ethnic lines. That included Mexican Americans, who make up more than 20 percent of the town’s residents and who have turned it into a South Jersey capital of lively Mexican restaurants.

Some carried in popcorn, candy, and sodas from the fresh-popcorn counter, a throwback to the 208-seat theater’s early days.

Eagle is a semiprofessional house – “We pay actors a negotiable stipend,” said its other artistic director, Ted Wioncek 3d – but it also deals show by show with Actors’ Equity, the national actors’ union, for some productions. Wioncek and Corsi say that, given its steady growth, they foresee a day when Eagle joins the ranks of major theaters by holding a standard Equity contract.

The show was about to begin, and the theater’s board chairman, James M. Donio – a mover and shaker about town who has been a supporter since revitalization began – was there to greet audience members individually. He was the force behind the funding application to the Agriculture Department.

“Every step of the way, there was a lot of process and paperwork to go through to make sure they vetted a request from a theater,” he was saying. “There’s a lot of that with firehouses that apply – and this is a theater. And every step of the way, we could give them everything they requested.”

The houselights were about to dim as the stage was illuminated for another evening of theater in the blueberry capital of the world.

 

FOR A FEW DOLLARS MORE – PART ONE

Where life had no value, death, sometimes, had its price. That is why the bounty killers appeared. For a Few Dollars More

 

“Tell me, isn’t a sheriff supposed to be courageous, loyal and, above all, honest?” – Man with No Name – For a Few Dollars More

Whenever I get an idea for an article I plan to keep it short and sweet. But it never seems to work out that way. Once I start typing, the articles tend to grow exponentially. It happened again with my attempt to make sense of how the United States of America managed to screw our finances up so badly, that an epic collapse is within view to people with their eyes open to facts and the truth. You don’t end up in the predicament we find ourselves in today due to a couple minor mistakes over a short time frame. It took thousands of horrible choices, colossal doses of delusion, a heaping of stupidity, and a mountain of denial over decades to put us on the brink of economic collapse. An unholy amalgamation of demographics, fiat currency, debt, taxes, power and greed have led us to this point. Next we experience collapse, revolution and ultimately, retribution.

Since I’ve identified four major rationales for our impending doom, I’ve decided to write a four part series that can be read in small doses, rather than one enormous article. I don’t want anyone to miss tonight’s episode of Dancing With the Stars, get distracted from the Royal Wedding preparations, or skip the best reality TV show ever – Ben Bernanke’s press conference, while reading an 8,000 word article about the end of America. The four part series will have a Clint Eastwood theme. For a Few Dollars More will address the Baby Boomer impact on America’s decline. A Fistful of Dollars will examine how the creation of the Federal Reserve and the income tax in 1913 set us on a path to ruin. Outlaw Josey Wales will scrutinize the looting of America by a small group of powerful, connected, super rich men lurking in the shadows, but pulling the strings on our puppet politicians. Lastly, Unforgiven  will detail the impending collapse of our economic system and the retribution that will be handed out to the guilty.

Over the last few weeks there seems to be consensus among many financial bloggers, whose credibility is far more trustworthy than the corporate mainstream media, that the country is teetering on the verge of economic collapse due to the complete capture of the government, financial, regulatory, and media by a small group of oligarchs. They have also been described as the super rich, plutarchs, ruling elite, and scum sucking leeches. The bloggers that I have the utmost respect for, including Jesse, Charles Hugh Smith, Mike Shedlock, Yves Smith and Gonzalo Lira have all come to the logical conclusion the horrific economic situation of the country is a direct result of the greed, corruption, fraud, and plundering by a powerful connected group of rich financiers operating without fear of being brought to justice by the authorities.

While pondering the ruminations of these dedicated truth tellers, I was reminded of the Clint Eastwood Spaghetti Western For a Few Dollars More. The quotes above are representative of living in the USA today. There are supposed to be courageous, loyal and honest sheriffs that protect the citizens from crime, corruption and evil doers. But, just as we saw in the Old West of Clint Eastwood movies, the sheriffs are always corrupt and bought off by the evil cattle barons. In a world where life has no value and you can’t rely on law enforcement to protect your interests, the citizens eventually will need to turn to bounty hunters to take care of the bad guys. The bounty hunters of truth reside on the internet. They reside at Zero Hedge, Jesse’s Café Americain, Of Two Minds, Mish, Chris Martenson, and dozens of other anarchist websites. When you can’t trust your government, your bankers, your church, your media, or mega-corporate CEOs, you need to seek the truth where it can be found. The insightful bloggers who courageously print the truth on a daily basis have unanimously concluded that a small band of powerful elite have accumulated undue influence and control over this country, having brought it to the verge of economic collapse. How did this happen? Who is responsible? Why were they permitted to gain this power?

Boomers Come of Age

“If those in charge of our society – politicians, corporate executives, and owners of press and television – can dominate our ideas, they will be secure in their power. They will not need soldiers patrolling the streets. We will control ourselves.” – Howard Zinn

Whenever I direct any blame for our economic woes towards the Baby Boom generation they react as expected. They blame the GI Generation for creating the welfare state. They declare that Generation X and the Millenials are just as greedy and self centered as the Boomers. Boomers are great at blaming, ridiculing and acting pompously, while taking no responsibility for their actions and more importantly their inaction. This generation cannot avoid their responsibility for the state of affairs. They like to take credit for their stand against the Vietnam War and their protests against the man during the 1960s. They don’t like to take credit for turning into materialistic, greedy, selfish, short-term focused bastards. When a generation of 76 million people decides to go in a particular direction, the country will go in that direction. While blaming FDR and the GIs who stormed the beaches of Normandy for creating the unfunded Social Security and Medicare liabilities, the Boomers have been voting since the mid-1960s and have been in control of corporate America and the levers of government since the early 1980s.

The U.S. Congress is dominated by Baby Boomers today and has been dominated by this generation since the 1990s. The Senate has 60 Boomers out of 100, while the House of Representatives has 254 Boomers out of 435 members. Boomers occupied the White House from 1992 through 2008. They have had the political power and control of the agenda for two decades and have failed miserably. Rather than do what was best for the country for the long-term, they took the expedient, easy, vote getting route. Promise more than you could ever deliver and let future generations worry about the consequences. Not one true noble statesman has arisen from this generation of myopic, self centered “Me Generation” political hacks. Even as the country nears the precipice, they continue to address the great issues of the day with talking points supplied by other Baby Boomer PR maggots from Park Avenue. These weasels care not for the country, but worry only about poll numbers and the next election cycle. An apathetic public, dominated by the Baby Boom generation, has the attention span of a gnat. As long as they can make the lease payment on their Escalade, use one of their 15 credit cards at the Mall, be entertained by 600 cable TV stations, play with the latest iSomething, live in their McMansion for two years without making a mortgage payment and consume massive quantities of fast food, then any thoughts of future generations or civic duty are unnecessary. Live for today has been the rallying cry for the Boomer generation. Pot was their drug during the 1960s. Debt has been their drug since 1980.

The drug (debt) dealer for the Baby Boom generation has been the Wall Street mega-banks, coincidentally, run by Boomers. The entire corrupt financial industry is being run by Boomers. The CEOs, CFOs, and the thousands of Harvard MBA VPs that created the fraudulent derivative scheme to bilk billions from clueless municipalities, pension funds and American taxpayers are all Boomers. It is no coincidence that the great debt delusion began in the early 1980’s. Jim Kunstler captured the essence of Boomer transformation:

“The Baby Boomers came back from the land, clipped their pony tails, discovered venture capital, real estate investment trusts, securitization of “consumer” debt, and the Hamptons. Greed was good.”

The Boomer CEO hall of scam has been built on the brilliance and financial acumen of Lloyd (god’s work) Blankfein, Charlie (keep dancing) Prince, Jamie (friend of Obama) Dimon, and the king of the Boomers, Hank (the system is sound) Paulson. These mainstays of crony capitalism led the Boomer charge of greed, greed and more greed. The Baby Boomer generation has been the proverbial pig in a python working its way through the decades as presented below. By 1985, Boomers had entered the work force in full force with the entire generation between the ages of 25 and 42. It will be a great day when the python craps this pig of a generation out the other end.

It is not a coincidence the National Debt growth has far outstripped GDP growth since 1980. Boomers had been spoiled their whole lives and felt they deserved the goodies today while passing the bill to future generations. They voted for politicians who promised them more benefits, more programs, more subsidies, more tax breaks, more military adventures, and more pleasure. And this was “paid for” with more debt. Thirty five years of government debt declining as a percentage of GDP was reversed over the next thirty years starting in 1980, pushing it past the 90% tipping point in the last year. The country is over-indebted to the tune of $9 trillion on a current basis and $100 trillion on a long term accrual basis.

There is no better picture of Boomer decadence and myopia than an historical view of the national savings rate. The parents of the Boomers understood the meaning of sacrifice and investing in the future of the country. During World War II they bought US War Bonds to support the cause. From 1950 through 1985, the savings rate consistently ranged between 7% and 12%. Americans had this odd notion that if you saved more than you spent, you actually got ahead in life. Excess savings were used to invest in new plants and equipment that were used to produce goods and employ more Americans. By 1985, the Boomers considered these notions as quaint and old fashioned. The savings rate methodically declined until it went negative in 2006, just prior to the worldwide financial conflagration. Our inspirational Boomer president George (Mission Accomplished) Bush while waging two wars of choice, asked for the ultimate sacrifice from the Boomers. He solemnly urged them to buy a GM SUV with $0 down and 0% interest for 7 years, so we could defeat the terrorists. The Boomers who ran GMAC were more than happy to make loans to people with no income so they could “purchase” a $40,000 ostentatious gas guzzling hog. They were doing their patriotic duty for the good of the nation. It brings a tear to my eye just thinking about it.

The Boomers not only heeded George’s call, but they did him proud by buying 8,000 sq ft McMansions with $0 down and negative amortization ARMs. Luckily, the executives at the mortgage origination sweatshops were Boomers. They found no good reason to verify income or assets before loaning someone $600,000, because they knew their fellow Boomers at the rating agencies would rate the bundles of these toxic shit loans as AAA so the Boomers on Wall Street could sell them to greater fools. GMAC’s exemplary subprime mortgage arm – Ditech, did a bang up job getting migrant Mexican workers into $450,000 homes in California’s inland empire. As the tsunami of bad debt swept toward shore, delusional Boomers across the land borrowed $500 billion against the inflated value of their McMansions and installed granite counter tops, stainless steel appliances, home theatres, elegant patios, Olympic sized pools, and with the excess home equity, leased a BMW or two. The first devastating tsunami wave hit in 2008 and wiped out billions in faux Boomer wealth. Instead of learning a brutal lesson and reverting back to saving and frugality, the “never say sacrifice” Boomers ventured out to where the waves had subsided looking for more trinkets and treasures.

Tsunami Warning by Mobile Phone

The next tsunami wave is on its way. The delusional Boomers will be surprised again.

The Boomer persona has been formed over the last five decades and the country will deal with the consequences for decades to come. The clean cut Beaver Cleaver children of the 1950s turned into the pot smoking Dobie Gillis of the 1960’s, then into the slimy Gordon Gekkos of the 1980s and ultimately into the eternal wealth seeking Gollums of today.

 

  

This Boomer debt orgy over the last thirty years would have made Caligula blush. Of course, none of this could have happened without the Creature from Jekyll Island. I will address this aspect of our fate in Fistful of Dollars – Part Two.

Now for the righteous indignation from the Boomers that think I have unfairly lumped them all together as one. Their reactions are predictable. Even though they have had the means, the power and the time to reverse the course of USS Titanic, they plowed full steam ahead into the abyss. The GI Generation is dead. Generation X doesn’t hold the reins of power. The Boomer generation needs to look in the mirror to recognize who is to blame.  I’m sure there are a few good Boomers out there somewhere, but as a generation they have failed this country and our unborn generations miserably.

A FISTFUL OF DOLLARS – PART TWO

It is not easy to destroy the greatest empire in the history of mankind. The 20th Century was the American Century, but as with all empires, the combination of hubris, monetary debasement, imperial overreach and delusional overconfidence have set in motion the inevitable downfall of the American Empire. The policies, decisions, beliefs, and institutions implemented over decades have led the country to the threshold of financial disaster. Based on my observations, a catastrophic combination of demographics, fiat currency debasement, titanic levels of debt, smothering taxation, power in the hands of the few and Wall Street greed have led us to peak Empire. It will be downhill from here as we experience collapse, revolution and ultimately, retribution for the guilty and presumed guilty. I have already addressed the Baby Boomer generation’s contribution to our current plight, to the delight and accolades of Boomers across the land in For a Few Dollars More – Part One. The Boomers were a victim of their size and the timing of their arrival on the scene of empire collapse. Their delusions of debt based wealth and me first attitude could not have been satiated without the creation of the Federal Reserve and the institution of the personal income tax in 1913.

“When a man’s got money in his pocket he begins to appreciate peace.” – Joe – Fistful of Dollars

 

“Every town has a boss.” – Joe – Fistful of Dollars 

In the Old West of the 1800’s, before the creation of the Federal Reserve, money in your pocket meant gold or silver. If Joe were to repeat that line today, he would change it slightly:

“When a man thinks he’s got money in his pocket he begins to appreciate the good things in life like McMansions, BMWs, government provided retirement, government provided healthcare, and delusions of ever increasing wealth.”

Man made inflation is a glorious invention for the men who invented it. For the people who deal with it every day, not so much. Joe knew that every town had a boss. If you didn’t know who the boss was in the United States of America before 2008, you know now. Ben Bernanke and the Federal Reserve Bank of the United States is the boss of this town.

Crony Capitalism Pays for the Cronies

Without Federal Reserve intervention in the financial markets since September 2008, the biggest banks in the world would have entered bankruptcy liquidation. The U.S. economy would have experienced a 10% to 20% fall in GDP. The unemployment rate would have soared above 15%. The stock market would have fallen 70%. Wealthy bondholders and stockholders would have seen their wealth cut in half. Incumbent politicians would have all been thrown out of office. The richest Americans, constituting the ruling class, would have borne the brunt of the pain.

In a true capitalist system, organizations and people who assumed too much risk and made poor decisions would have failed. But the United States does not have a capitalist system. We have a corporate fascist economic system where a small cartel of bankers, military weapons suppliers, and mega-corporations set the agenda for the country through their complete capture of politicians and the mainstream corporate media. At the height of the crisis in 2008, President George Bush revealed whose side he chose:

“I’ve abandoned free-market principles to save the free-market system, to make sure the economy doesn’t collapse. I feel a sense of obligation to my successor to make sure there is not a, you know, a huge economic crisis. Look, we’re in a crisis now. I mean, this is — we’re in a huge recession, but I don’t want to make it even worse.”

George Bush was born with a silver spoon in his mouth. He was not trying to save the free-market system, because we didn’t have a free market system. He was saving his fellow billionaires under the cover of saving the average American. Bush knew as much about saving our economic system as he knew about when to declare mission accomplished in Iraq. He turned the task of saving the free market system over to his multi-billionaire Goldman Sachs Secretary of Treasury Hank Paulson and the real boss of Washington DC, Ben Bernanke. These noble American patriots proceeded to save the top 1% richest Americans on the backs of the American middle class. They did it under the guise of keeping the country out of a Depression. Those who committed the crimes and destroyed the worldwide financial system not only didn’t get punished, they were enriched by the actions of Paulson and Bernanke. This entire sordid chapter in the history of the American empire from 2008 until the imminent collapse, sometime before 2015, will leave future historians dumbfounded at the utter insanity and foolishness of the decisions that were made during the death throes of the empire. Not only did George Bush not save the free-market system, but he drove a stake thru its heart.

To boil the entire 2008 financial collapse down to one word, it would be: DEBT.

Three decades of ever increasing levels of consumer, corporate, and government debt eventually led to an unprecedented implosion. It was as predictable in 2008, to those who understand the fiat monetary system, as it was to Ludwig von Mises decades ago: 

 “There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”    

Federal Reserve – Destroyer of Worlds

The 2008 crash and the 1929 crash were manmade disasters. Alan Greenspan and Ben Bernanke created the atmosphere and conditions that led to the risk taking by bankers, home buyers and consumers. Monetary expansion, excessively low interest rates, the Greenspan/Bernanke Put, disinterest in regulation, and pandering to politicians allowed the party to get out of control. Taking away the punch bowl never crossed their mind. The Federal Reserve is controlled by the major Wall Street banks. These banks were partnerships until the 1980s, with partners personally liable for the actions of their banks. Excessive risk taking meant possible personal bankruptcy. Once they became corporations, excessive risk meant excessive compensation for the executives, with the downside being borne by the shareholders.

But that wasn’t enough. The executives were large shareholders, so they convinced the Federal Reserve to bail their corporations out whenever they made bad bets. It was a sweet deal if you were a banker. Knowing their lackeys at the Fed had their back, the goliath Wall Street banks used their power and wealth to convince the SEC to waive the 12 to 1 leverage rules so they could leverage their balance sheets 40 to 1. This meant that a 5% loss in their capital and they would be insolvent. The Harvard MBA CEO titans of the financial world created the housing bubble through their creation of fraud inducing mortgage products, a bewildering array of derivative products that even their MBA geniuses didn’t understand, and betting against the derivatives they were selling to their clients. When this toxic brew of fraud and debt exploded in their faces, the value of the assets on their books plunged by 30% to 40% in 2008 and 2009. The 10 biggest financial institutions in the country were effectively bankrupt. An orderly bankruptcy liquidation that wiped out the bondholders, stockholders and top executives was the solution to excessive risk taking and failure.  

This was an unacceptable solution to the billionaire class that owns half the financial wealth in the country. The President was a multi-millionaire. The Treasury Secretary was a billionaire. There were 250 millionaires in Congress. The top executives of the banks that own and control the Federal Reserve are multi-millionaires. The owners and talking head pundits of the mainstream media are all in the billionaire/millionaire class. The cover story used to bilk $700 billion from middle class taxpayers into the coffers of Wall Street mega-banks was that if we didn’t hand over the loot, the financial system would collapse and a Great Depression would ensue. Every program, policy, and rule change that has been rolled out since September 2008 by the Federal Reserve, Treasury, and Congress has benefitted billionaires, bankers, and politically connected corporations. The Federal Reserve has printed over $2 trillion out of thin air to save the billionaires that have been pillaging the middle class for decades.

The Federal Reserve bought $1.25 trillion of toxic mortgages from Wall Street, allowed these banks to borrow at 0%, threatened the FASB into suspending mark to market accounting so banks could fake the value of their loans, instructed banks to rollover commercial real estate loans as if they weren’t really worth 40% less than the value on their books, and rolled out $600 billion of QE2 in order to create a stock market rally, benefitting their billionaire constituents. The $800 billion stimulus program was shoveled to the corporate friends (contributors) of Congressmen across the land. Cash for Clunkers benefitted government owned car companies. The home buyer tax credit and changing loss carry back rules benefitted mega home builders. Every one of these deeds enriched bankers and billionaires while further impoverishing the working middle class. Real middle class wages continue to fall, unemployment remains near record levels, real inflation in food and energy is running above 10%, senior citizens haven’t gotten a Social Security increase in two years, savers are getting .25% on their savings, home prices continue to fall, and future generations will be stuck with the bill for the billionaire bailout.

The standard of living for the average American continues to fall. Real household income is lower than it was in 1999. The only reason it increased in the 1980s and 1990s was the huge influx of women into the workforce. Two earners were needed to try and maintain a constant standard of living. Real average weekly earnings are lower today than they were in 1970, even using the government bastardized CPI calculation that has been so massaged since 1982 that it has only resulted in a happy ending for government bureaucrats at the BLS. Calculating the CPI exactly as it was calculated in 1980 reveals the truth of what the Federal Reserve has wrought on working class America, a drastic decrease in their standard of living. The insidiousness of Federal Reserve created inflation has sucked the life out of the middle class and enriched the cocktail party class.

Real Average Weekly Earnings

The stealth transfer of wealth from the working middle class to the richest in our society was done through convincing the middle class that buying things with debt made you richer. This delusion was sold by the billionaire owned corporate mainstream media and peddled by billionaire bankers to the masses through credit cards, “creative” mortgage products, easy access to home “equity”, auto leases, and easy financing products. Only in a society where a fiat currency could be printed by a central bank with no requirement that it be pegged to an anchor such as gold, could such a staggering amount of debt be accumulated.

Delusions of Debt

The bill that has been rung up is in the form of a national debt that has increased by $4.6 trillion since September 2008, a 48% increase in two and a half years. Over this same time frame real GDP has increased by $200 billion, a 1.6% increase in two and a half years. Over this same period, the Federal Reserve has tripled their balance sheet by adding $2 trillion of debt. Think about this for one second. The leaders of the great American empire have burdened future generations with $6.6 trillion of new debt and increased the Gross Domestic Product by $200 billion. Is this a good return on investment? Did the 30 million unemployed and underemployed Americans benefit? Did the 45 million people on food stamps benefit? Did the 11 million households who are underwater in their mortgage benefit? Did the 3 million people who lost their homes in foreclosure since 2008 benefit? Are Americans paying twice as much for groceries and gasoline benefitting? Did the Tunisians, Egyptians, and other poor people around the world benefit?

The answer to all these questions is NO. The only beneficiaries have been bankers, billionaires, mega-corporations and the politicians who were bought off by these greedy traitors to the Republic. Anyone with an ounce of sense knows the country got into this mess due to the issuance of mountains of debt that was un-payable based upon any reasonable assessment of future cash flows to service the debt. Consumers could never have increased their wages enough to pay off the credit card, mortgage, home equity, student loan, and auto debt they accumulated since 1980. The government could never collect the amount of taxes needed to pay for the $100 trillion of entitlement promises they have made over the last four decades. By 2008 we had reached peak debt delusion.

The only questions that remained were how would the debt be defaulted on and who would bear the brunt of the default. The Federal Reserve Chairman and the U.S. Treasury Secretary rolled out a master plan that revolved around convincing the masses they were being saved, while actually enriching their masters on Wall Street. Their PR machine and captured mouthpieces throughout the mainstream media and in Congress spun the fear mongering message of Depression if the mega-banks were not handed trillions of taxpayer funds.

The proof of what did not happen is borne out in the chart below, showing the total credit market debt in the U.S.at $52.6 trillion, $200 billion higher than it was in 2008. If those who had collected billions in fraudulent profits while using unprecedented levels of debt were rightfully required to take responsibility for the catastrophe they caused, the debt levels would have dropped dramatically. The losses would have been borne by those responsible. The economy would have taken a body blow, all Americans would have been hurt, and many billionaires would have become millionaires or even paupers. The debt would have been written off and lessons would have been learned. The remaining banks (there are 8,000 others besides the 10 who control 50% of the deposits) would have followed traditional risk mitigation methods and the economy would have recovered.

But, as you can see, debt was not written off. No bankers were harmed during the making of this fake recovery. No criminal bankers were prosecuted. No government drones took responsibility for their failure. While the masses were distracted by stimulus packages, mortgage moratoriums, Obamacare and reality TV, the debt was shifted from the criminally negligent banks to you. The proof is right on the Federal Reserve website for all to see:

  • Financial institutions reduced their debt from $17.1 trillion in 2008 to $14.2 trillion today.
  • The Federal & state governments increased their debt from $8.7 trillion in 2008 to $11.9 trillion today.
  • The GSEs (Fannie, Freddie, Sallie) increased their debt from $3.2 trillion in 2008 to $6.4 trillion today.
  • Corporations increased their debt from $7.0 trillion in 2008 to $7.4 trillion today.
  • Household debt declined from $13.8 trillion in 2008 to $13.4 trillion as the Federal Reserve backstopped the write-off of $600 billion of bad debt by the banks.

Over $6 trillion of toxic debt was shifted from the insolvent financial industries to the middle class taxpayers under the guise of “Saving the System”. Bad debt does not become good by shifting it to taxpayers. The story line about Americans embracing austerity is false. Household debt rose from $8 trillion in 2000 to $13.8 trillion in 2008, a 72% increase, and has declined by 3% due to write-offs, not austerity.

Champion of the Middle Class

By extending the debt, shifting it to the taxpayer and pretending it is payable, the Federal Reserve and your government have chosen, to use its weapon of choice since inception in 1913 – INFLATION, to default on the debt. It is not a new tactic, it is their only tactic.

The Federal Reserve has slowly and methodically destroyed the American middle class through relentlessly printing more money and purposefully creating inflation, since its reprehensible creation in 1913. For the last three decades only one voice in the wilderness of Washington DC has fought this banking cabal.

“Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In addition, most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve’s inflationary policies. This represents a real, if hidden, tax imposed on the American people.

From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve.” – Ron Paul – Sept 10, 2002

His colleagues in Congress did not stand up to the Federal Reserve in 2002. Instead, they cheered them on as Greenspan’s ultra loose monetary policy led to the greatest housing bubble in history and a financial collapse unparalleled in human history. As the collapse was hurdling down the track in 2006, Representative Paul once again rose in protest against an organization that is rapidly destroying the American dream.

“The coming dollar crisis is not likely to be “fixed” by politicians who are unwilling to make hard choices, admit mistakes, and spend less money. Demographic trends will place even greater demands on Congress to maintain benefits for millions of older Americans who are dependent on the federal government.

Faced with uncomfortable financial realities, Congress will seek to avoid the day of reckoning by the most expedient means available – and the Federal Reserve undoubtedly will accommodate Washington by printing more dollars to pay the bills. The Fed is the enabler for the spending addicts in Congress, who would rather spend new fiat money than face the political consequences of raising taxes or borrowing more abroad.

The irony is that many of the Fed’s biggest cheerleaders are the same supposed capitalists who denounced centralized economic planning when practiced by the former Soviet Union. Large banks and Wall Street firms love the Fed’s easy money policy, because they profit at the front end from the resulting loan boom and artificially high equity prices. It’s the little guy who loses when the inflated dollars finally trickle down to him and erode his buying power. Someday Americans will understand that Federal Reserve bankers have no magic ability – and certainly no legal or moral right – to decide how much money should exist and what the cost of borrowing money should be.” – Ron Paul – July 11, 2006

The dollar crisis is upon us. Congress and President Obama are avoiding the day of reckoning. The Federal Reserve is enabling profligate spending by politicians, while at the same time enriching their masters on Wall Street. Everything being done in Washington DC seems to be the exact opposite of what should be done. I think the fable of the scorpion and the frog describes our situation best. The scorpion asks a frog to carry him across a river. The frog is afraid of being stung, but the scorpion argues that if it stung, the frog would sink and the scorpion would drown. The frog agrees and the scorpion stings the frog during the crossing, dooming them both. When asked why, the scorpion points out that this is its nature. The Federal Reserve is printing money, creating inflation, enriching billionaire bankers, and dooming the country to certain collapse because that is its nature.

My intentions have been foiled again. I realize that my attempt to put our current economic predicament into perspective will now need to be a five part series. . For a Few Dollars More addressed the Baby Boomer impact on America’s decline. A Fistful of Dollars examined how the Federal Reserve’s actions over the last few decades have impoverished the middle class and has placed the country at the brink of collapse,   The Good, the Bad, and the Ugly will address the nefarious creation of a central bank and the implementation of a personal income tax in the dreadful year 1913. Outlaw Josey Wales will scrutinize the looting of America by a small group of powerful, connected, super rich men lurking in the shadows, but pulling the strings on our puppet politicians. Lastly, Unforgiven  will detail the impending collapse of our economic system and the retribution that will be handed out to the guilty.

I can’t wait to see how it ends.

THE GOOD, THE BAD AND THE UGLY – PART THREE

“You see in this world there’s two kinds of people, my friend. Those with loaded guns, and those who dig. You dig.” –  Blondie – The Good, the Bad and the Ugly

“There are two kinds of people in the world, my friend. Those who have a rope around their neck and those who have the job of doing the cutting.” – Tuco – The Good, the Bad and the Ugly

The economic peril that we find ourselves confronted with, has been ninety-eight years in the making. The confluence of debt, demographics, delusion, and denial has left the country at the precipice of annihilation. There are two kinds of people in the world, those who control the money and those that are controlled by those who control the money. The last century has been marked by a methodical looting of the good (working middle class) by the bad (Federal Reserve & bankers) and supported by the ugly (Washington D.C. politicians). When historians pinpoint the year in which the Great American Empire began its downward spiral they will conclude that year to be 1913. In this dark year for the Republic, slimy politicians, at the behest of the biggest bankers in the country, created a private central bank that has since controlled the currency of the United States. This same Congress staked their claim as the most damaging group of politicians in US history by passing the personal income tax in the same year. These two acts unleashed the two headed monster of inflation and taxation on the American people.

The government began keeping official track of inflation in 1913, the year the Federal Reserve was created. The CPI on January 1, 1914 was 10.0. The CPI on January 1, 2011 was 220.2. This means that a man’s suit that cost $10 in 1913 would cost $220 today, a 2,172% increase in ninety-eight years. This is a 95.6% loss in purchasing power of the dollar.  The average American does not understand the insidious nature of central bank created inflation. It makes you think you are wealthier while you are driven into abject poverty. The Federal Reserve and politicians have pulled the wool over your eyes. The CPI was 30.9 in 1964. Today, it is 223.5. This means prices have risen 723% since 1964. The only problem is your wages have not risen at the same rate, even using the government manipulated CPI. Using a true CPI figure, average weekly earnings are 64% below what they were in 1964. This explains why a family of five could live well with one parent working in 1964, but even with both parents working and accumulating debt in prodigious amounts, the average family cannot live as well today.

It is not a coincidence that the percentage of the working age population employed bottomed in 1964 at 59%. The participation rate rose steadily for the next thirty six years, topping out in 2000 at 67.1%. The employment to population ratio also bottomed at 55% in 1964. It rose to 64.4% by 2000. It seems that future historians will mark the year 2000 as the peak of the American Empire. Apologists for the Federal Reserve and politicians who have steered this country since 1964 would argue the increase in the percentage of the population working was a positive development. Nothing could be further from the truth.

The American middle class was forced to send both parents into the workforce just to keep up with the ever declining real weekly earnings. The Federal Reserve created inflation has methodically destroyed the American dream for the middle class. As both parents had to go into the workforce, American children were left to fend for themselves or be raised by strangers in daycare centers. The pressure of trying to keep up with inflation strained families to the breaking point. The number of divorces per thousand marriages was 10 in the early 1960s. It more than doubled to 22.6 by 1980 and still resides at 17 today. There are many factors for the disintegration of the traditional family unit, but the financial strain on families to maintain a consistent standard of living due to relentless inflation has been a key factor.

From the founding of our country there had been constant conflict between corrupt bankers trying to control the currency of the nation to further their own enrichment at the expense of the people and a few courageous leaders willing to fight them. The bankers won the century old battle in 1913.

Den of Vipers & Thieves

“I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank…You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, I will rout you out.” Andrew Jackson

The First Bank of the United States was created in 1791. Alexander Hamilton, the 1st Secretary of the Treasury, proposed this bank and convinced a hesitant President Washington to agree. John Adams and Thomas Jefferson were against the concept. It favored the moneyed classes of the North versus the agrarian South. The bank was given a 20 year charter and President James Madison let it expire in 1811. He understood the true nature of the banking interests:

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance”.

Madison had to renew the charter in 1816 as the War of 1812 resulted in large government debts. Politicians always turn to bankers when funding wars and programs to get them re-elected. As usual, once unshackled, the bankers immediately caused a boom through their loose monetary policies. The Bank created a fake boom by 1818 through its reckless lending, which encouraged speculation in land. This lending allowed almost anyone to borrow money and speculate in land, sometimes doubling or even tripling the prices of land (remind you of another time in recent history?). In the summer of 1818, the national bank managers realized the bank’s massive over-extension, and instituted a policy of contraction and the calling in of loans. This recalling of loans simultaneously curtailed land sales and slowed the U.S. production boom due to the recovery of Europe. The result was the Panic of 1819. There was a wave of bankruptcies, bank failures, and bank runs; prices dropped and wide-scale urban unemployment struck the country. By 1819 many Americans did not have enough money to pay off their property loans. Do you see any difference between 1816 – 1819 and 2005 – 2011? Central banks don’t eliminate financial panics, they cause them. Booms and busts have always existed. They have become more common and extreme since the unleashing of greedy corrupt central bankers in the U.S., going back two centuries.

Andrew “Old Hickory” Jackson became President in 1829 and proceeded to declare war on the Second National Bank. He was the first and only President in U.S. history to pay off the National Debt. He worked tirelessly to rescind the charter of the Second Bank of the United States. His reasons for abolishing the bank were:

  • It concentrated the nation’s financial strength in a single institution.
  • It exposed the government to control by foreign interests.
  • It served mainly to make the rich richer.
  • It exercised too much control over members of Congress.
  • It favored northeastern states over southern and western states.

President Jackson believed that only Congress should be responsible for the issuance and control of the currency. Delegating that duty to powerful New York bankers was distasteful to him:

“If Congress has the right to issue paper money, it was given to them to be used … and not to be delegated to individuals or corporations”

President Jackson vetoed the extension of their bank charter in 1832. He redirected government tax revenue to other state banks.  The Second Bank of the United States was left with little money and, in 1836, its charter expired and it turned into an ordinary bank. Five years later, the former Second Bank of the United States went bankrupt. Those who believe that a central bank is essential to economic progress need to examine the “free banking” period from 1837 to 1861. In the last five years of the Second Bank’s existence prices rose by 28%. Over the next 25 years, prices in the U.S. fell by 11%. We experienced the dreaded deflation. Did deflation destroy America? Not quite. GDP grew from $1.5 billion in 1836 to $4.6 billion in 1861. Deflation is only fatal to debtors. Inflation is the friend of lenders and the moneyed classes.

The American Civil War brought about the National Banking Act of 1863, which created a network of national banks. Politicians always need bankers to fight their wars and Abraham Lincoln was no different. By 1870 there were 1,638 national banks. This did not eliminate the booms and busts that punctuate human history, but the booms and busts were not scientifically created by a small cabal of bankers. With thousands of banks, those who made bad lending decisions failed. The economy withstood the periodic panics and continued to grow. The GDP of the U.S. grew from $7.6 billion in 1863 to $39 billion by 1913, with virtually no inflation. The Federal government ran surpluses or very small deficits during this entire time period. These facts refute the argument that a strong central bank was necessary to keep our economic system operating smoothly. It seems the Big Lie was not invented by the Nazis.

Creature from Jekyll Island – Control the Money, Control the Country

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. No longer a government by free opinion, no longer a government by conviction and vote of majority, but a government by the opinion and duress of a small group of dominant men.”President Woodrow Wilson

Any impartial assessment of inflation throughout the history of the United States confirms that from the beginning of our nation through the War of 1812, the Mexican American War, the Civil War, the Spanish American War and the Industrial Revolution, the country experienced virtually no inflation as bankers were kept from controlling the U.S. currency and our legal tender was backed by gold. The creation of the Federal Reserve in 1913 and the closing of the gold window by Richard Nixon in 1971 unleashed a tsunami of inflation that continues to inundate our country today, killing the once prosperous middle class.

The Rothschilds of London understood that a fiat currency system would benefit the few (bankers & politicians) who understood it and the masses would be too ignorant to understand they were being screwed:

“Those few who can understand the system (check book money and credit) will either be so interested in its profits, or so dependent on it favors, that there will be little opposition from that class, while on the other hand, the great body of people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear it burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

The House of Rothschild had been the dominant banking family in Europe for two centuries. They were known for making fortunes during Panics and War. Some claimed they would cause Panics in order to take advantage of those who panicked. American bankers learned the lesson well. The Panic of 1907 was the used as the reason for creating the Federal Reserve. A small cabal of powerful U.S. banking interests understood that if they could control the currency of the U.S., they could control the country, its politicians, and its people.

In 1906, Frank Vanderlip, Vice President of the Rockefeller owned National City Bank, convinced many of New York’s banking establishment they needed a banker-controlled central bank that could serve the nation’s financial system. Up to that time, the House of Morgan had filled that role. JP Morgan had initiated previous panics in order to initiate stronger control over the banking system. Morgan initiated the Panic of 1907 by circulating rumors the Knickerbocker Bank and Trust Co. of America was going broke. There was a run on the banks creating a financial crisis which began to solidify support for a central banking system. During this panic Paul Warburg, a Rothschild associate, wrote an essay called “A Plan for a Modified Central Bank” which called for a Central Bank in which 50% would be owned by the government and 50% by the nation’s banks.

In November 1910 a secret conference took place on Jekyll Island off the coast of Georgia. Those in attendance were:  Paul Warburg, Bernard Baruch, Senator Nelson Aldrich, Colonel House, Frank Vanderlip, Benjamin Strong, Charles Norton, Jacob Schiff, and Henry Davison. From this meeting of the most powerful bankers and politicians in the country came the plan for a Central Bank. This conference was unknown until 1933. In 1935, Frank Vanderlip wrote in the Saturday Evening Post: “I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System.”

Behind the scenes these powerful men were formulating the plan for a Federal Reserve System. There was no outcry from the public to implement this plan. The public knew nothing of this. The Aldrich Plan was renamed the Federal Reserve Act and pushed forward by Paul Warburg and Colonel House. Warburg essentially wrote the Act and pressured Congressmen to see his way or lose the next election. Colonel House, who had socialist leanings, was the top advisor to President Wilson.

 

The Glass Bill (the House version of the final Federal Reserve Act) had passed the House on September 18, 1913 by 287 to 85. On December 19, 1913, the Senate passed their version by a vote of 54-34. More than forty important differences in the House and Senate versions remained to be settled, and the opponents of the bill in both houses of Congress were led to believe that many weeks would elapse before the Conference bill would be taken up. The Congressmen prepared to leave Washington for the annual Christmas recess, assured that the Conference bill would not be brought up until the following year. The creators of the bill then pulled the ultimate swindle on the American public. In a single day, they ironed out all forty of the disputed passages in the bill and quickly brought it to a vote. On Monday, December 22, 1913, the bill was passed by the House 282-60 and the Senate 43-23. This meant that the single most important piece of legislation ever passed by the Senate was missing the votes of 26 Senators because it was passed during the Christmas recess. President Wilson, at the urging of Bernard Baruch, signed the bill on December 23, 1913.

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The Road to Hell is Paved by Central Bankers

“Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits.” – Sir Josiah Stamp (President of the Bank of England in the 1920’s, the second richest man in Britain)

 

The results speak for themselves. The Federal Reserve has been in existence for ninety eight years and over that time the U.S. Dollar has lost 95.6% of its purchasing power. In other terms, the bankers who have controlled our currency since 1913 have generated 2,172% of inflation in just under a century. In the prior one hundred years, when the country was growing by leaps and bounds, there was virtually no inflation. I’m not sure the average person fully understands this concept. To put it in layman’s terms, something that cost $4.40 in 1913 will cost you $100 today. A pair of boys’ school shoes cost 98 cents in 1913. You could purchase three loaves of bread for 10 cents. You could purchase six rolls of toilet paper for 26 cents. The truly frightening impact on the American middle class has happened since Richard Nixon closed the gold window in 1971 and allowed the Federal Reserve to print money unfettered by consequences and slimy politicians to make irresponsible unfulfilled promises as bribes for votes. This chart should worry even the most ignorant of the masses.

Items 1971 2010/11 % Increase
Average Cost of new house $28,000 $273,000 975%
Median HH Income $10,300 $47,000 456%
Average Monthly Rent $150 $750 500%
Cost of a gallon of Gas $0.40 $3.80 950%
Average New Car Price $3,430 $29,200 851%
United States postage Stamp $0.08 $0.44 550%
Movie Ticket $1.50 $7.89 526%

 

Even with the proliferation of two worker households since 1971, household income has not come close to keeping up with the costs of daily living. The average American’s standard of living has declined dramatically over the last forty years and they don’t even know it. Americans have become the slaves of bankers and pay the cost of their own slavery through inflation and debt. It is not a coincidence that consumer debt, which was virtually non-existent prior to the 1960s, began to take off in the 1970s and went nearly parabolic from the early 1990s until the 2008 financial collapse. As the Federal Reserve and political class created inflation, which reduced your standard of living, the bankers who own the Federal Reserve and control the politicians used their slick marketing machine to convince you that acquiring goods using vast quantities of debt was just as good as buying things with cash you saved.

Who benefits from inflation and the issuance of trillions in debt to average Americans? Based upon the decades of gargantuan Wall Street profits, mammoth bonuses paid to bank executives, and fact that Washington politicians absconded with trillions from American taxpayers to save their Wall Street masters, it appears that bankers and politicians are the beneficiaries. A gutted, indebted, jobless, demoralized middle class were the recipients of the downside of inflation and debt. Without a Central Bank issuing a fiat currency, with no constraints, none of this could have happened.

The Federal Reserve is primarily responsible for the destruction of the American middle class. In 1915, according the Federal Reserve annual report, they operated with 35 total employees. Today, they operate with over 20,000 employees and the cost to operate the system exceeds $3.3 billion. The Federal Reserve has failed on every one of its stated mandates:

  • It was created to stabilize the banking system and keep bank panics from occurring. Within sixteen years of its creation it caused the near collapse of the banking system and the Great Depression. The stagflation of the 1970s was caused by Fed policies. The Savings & Loan crisis was created by their policies. The internet bubble, housing bubble and eventual financial collapse were caused by Federal Reserve blunders. There have been 18 recessions since the creation of the Federal Reserve.
  • The stable prices mandate has been a wretched failure, as the Fed has manufactured 2,171% of inflation and destroyed 96% of the currency’s purchasing power. This manufactured inflation has enabled the creation of our welfare/warfare state.
  • The Federal Reserve mandate of moderate long-term interest rates has clearly not been met. The Fed Funds Rate has plotted a path of extremes over the decades, ranging from 0% to 19%, not exactly stable. The Federal Reserve has consistently set rates too low, leading to credit bubbles, which always pop and end in recession or depression.
  • The mandate of maximum employment has also been a miserable failure. The easy credit policy of the Federal Reserve during the 1920s led to the Great Depression with unemployment rates exceeding 20%. Unemployment has averaged between 5% and 15% consistently since the formation of the Federal Reserve. The true unemployment rate today exceeds 15%.
  • The Federal Reserve was supposed to supervise and control the activities of banks. Instead, under Alan Greenspan and Ben Bernanke, they stepped aside and let banks take preposterous risks while giving an unspoken assurance that the Fed would clean up any messes they caused with their debt based enrichment schemes. This total dereliction of duty and gross regulatory negligence led the greatest financial collapse in history.

The American working middle class (Good) have been deceived by the Federal Reserve, the banks that control them (Bad) and the Washington DC political class (Ugly) into believing that a fiat currency, un-backed by gold, supported by systematic inflation is beneficial to their wealth. This has been the Big Lie for the last century and has positioned the country for an epic collapse. Presidential candidate Ron Paul has been the lone voice of sanity in Washington DC for the last two decades and his assessment of the Federal Reserve while questioning Ben Bernanke in 2009 needs to be understood by every American:

“The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit created out of thin air can provide sustainable economic growth has delivered this crisis to us. Instead of economic growth and stable prices, (The Fed) has given us a system of government and finance that now threatens the world financial and political institutions. Pursuing the same policy of excessive spending, debt expansion and monetary inflation can only compound the problems that prevent the required corrections. Doubling the money supply didn’t work, quadrupling it won’t work either. Buying up the bad debt of privileged institutions and dumping worthless assets on the American people is morally wrong and economically futile.”

I’ve now completed three parts of the five part series, documenting the downfall of the great American Empire. Part four, Outlaw Josey Wales, will scrutinize the looting of America by a small group of powerful, connected, super rich men lurking in the shadows, but pulling the strings on our puppet politicians. Lastly, Unforgiven  will detail the impending collapse of our economic system and the retribution that will be handed out to the guilty.

The smell of revolution is in the air.

Part One – For a Few Dollars More

Part Two – Fistful of Dollars