THE SUBPRIME FINAL SOLUTION

The MSM did their usual spin job on the consumer credit data released earlier this week. They reported a 5.4% increase in consumer debt outstanding to an ALL-TIME high of $3.051 trillion. In the Orwellian doublethink world we currently inhabit, the consumer taking on more debt is seen as a constructive sign. Consumer debt has grown by 5.8% over the first nine months of 2013, after growing by 6.1% in 2012 and 4.1% in 2011. The storyline being sold by the corporate MSM propaganda machine, serving the establishment, is that consumers’ taking on debt is a sure sign of economic recovery. They must be confident about the future and rolling in dough from their new part-time jobs as Pizza Hut delivery men. Plus, they are now eligible for free healthcare, compliments of Obama, once they can log-on.

Of course, buried at the bottom of the Federal Reserve press release and never mentioned on CNBC or the other dying legacy media outlets is the facts and details behind the all-time high in consumer credit. They count on the high probability the average math challenged American has no clue regarding the distinction between revolving and non-revolving credit or who controls the distribution of such credit. It is fascinating examining the historical data on the Federal Reserve website and realizing how far we’ve fallen as a society in the last 45 years.

http://www.federalreserve.gov/releases/g19/HIST/cc_hist_sa_levels.html

Revolving credit is a fancy term for credit card debt. Imagine our society today without credit cards. That sounds outrageous to the debt addicted populace inhabiting our suburban wasteland and urban badlands. What is truly outrageous is the fact we have allowed ourselves to be duped into $846 billion of revolving credit card debt charging an average interest rate of 13% by Wall Street bankers who have used the American Dream of a better life as the bait to lure a dumbed down easily manipulated populace into believing that material possessions purchased with high interest debt represented advancement rather than servitude. Debt accumulation is seen as a badge of honor. Keeping up with the Joneses is all that matters. Our shallow culture has no notion about the concept of deferred gratification or saving to pay for your wants.

A shocking fact (to historically challenged government educated drones) revealed by the Federal Reserve data is that credit card debt did not exist prior to 1968. How could people live their lives without credit cards? It must have been a nightmare. You mean to tell me when people wanted new clothes, jewelry, a TV, or to eat out at a restaurant, they actually had to save up the cash to do so? What kind of barbaric system would make you live within your means? The Depression era adults had somehow survived for over two decades after WWII without buying cheap foreign crap they didn’t need with money they didn’t have using a piece of plastic with a Wall Street bank logo emblazoned on the front.

1968 marked a turning point for America. LBJ’s welfare/warfare state had begun the downward spiral of a once rational country. We chose guns and butter, with the bill being charged to the national credit card. It was fitting that Wall Street introduced the credit card in 1968.

  • There were 200 million Americans in 1968 and $2 billion of credit card debt outstanding, or $10 per person.
  • By 1980 there were 227 million Americans and $54 billion of credit card debt outstanding, or $238 per person.
  • By 1990 there were 249 million Americans and $230 billion of credit card debt outstanding, or $924 per person.
  • By 2000 there were 281 million Americans and $650 billion of credit card debt outstanding, $2,313 per person.
  • By July of 2008 credit card debt outstanding peaked at $1.022 trillion and the population was 304 million, with credit card debt per person topping out at $3,361 per person.

Over the course of 40 years, the population of this country grew by 52%. Credit card debt grew by 51,000%. Credit card debt per person grew by 33,600%. This was a case of credit induced mass hysteria and it continues today. Have the American people benefitted from this enslavement in chains of debt? I’d venture to answer no. Who benefitted? The corporate fascist oligarchy of Wall Street banks, mega-corporations sourcing their crap from Chinese slave labor factories, and politicians in the back pockets of the bankers and corporate CEOs benefitted.

The evil oligarch scum grew too greedy and blew up the worldwide financial system in 2008. Since July 2008 credit card debt has declined by $175 billion, with the majority of the decrease from banks writing off bad debt and passing it along to the American taxpayer through their TARP bailout and 0% money from their puppet Bernanke. It bottomed out at $834 billion in April 2011 and has only grown by a miniscule $13 billion in the last 29 months, and only $1.7 billion in the last twelve months. The muppets have refused to cooperate by running up those credit cards. Not having jobs, paying 40% more for health insurance due to Obamacare, and real inflation exceeding 5% on the things they need to live, have caused some hesitation among the delusional masses. Even a government educated, math challenged, iGadget addicted moron realizes their credit card is the only thing standing between them and living in a cardboard box on a street corner.

Your owners have been forced to implement Plan B. The monster they have created is like a shark. The debt must keep growing or the monster will die. In 2008, the oligarchs were staring into the abyss. Their wealth, power and control were in grave jeopardy. Rather than accept the consequences of their actions like men and allowing the economy to return to normalcy, these weasels have doubled down by accelerating the debt production and dropping it from helicopters to subprime borrowers across the land, like unemployed construction workers named Gus getting a degree in liberal arts from the University of Phoenix while sitting in their basement in boxer shorts. The Federal Reserve Black Hawks are hovering over the inner cities dropping Bennie Bucks on the very same people they put in McMansions with no doc negative amortization subprime mortgages in 2005, so they can occupy Cadillac Escalades for a couple years before defaulting again. The appearance of normalcy is crucial to the evil oligarchs as they attempt to pillage the remaining loot in this country.

Before the credit card was rolled out in 1968, there was non-revolving debt strictly related to auto loans made by banks and credit unions. The Federal government was nowhere to be found in the mix as banks and consumers made economic decisions based upon risk and reward. There were $110 billion of loans outstanding to a population of 200 million, or $550 per person. The Federal government stuck their nose into the free market with the creation of Sallie Mae in the 1970’s. But they were still a miniscule portion of total consumer debt at $115 billion in 2008, or only 11% of total consumer debt outstanding. The chart below from Zero Hedge reveals what has happened since the oligarchs crashed the financial system with their vampire squid blood sucking tentacles syphoning the lifeblood from the American middle class. Non-revolving debt has increased from $1.65 trillion in July 2008 to $2.2 trillion today, solely due to Obama and his minions doling out subprime auto and student loan debt to anyone that can scratch an X on a loan document.

If middle class consumers were unwilling to borrow and spend, the oligarchs were going to use their control over the government to dole out billions to subprime borrowers in a final, ultimately futile, attempt to keep this Ponzi scheme going for a while longer. The subprime game worked wonders in the final phase of the housing bubble. And now the losses will fall solely on the 50% of Americans who actually pay taxes. It wasn’t a mistake the Federal government took complete control of the student loan market in 2009. It isn’t a mistake the only TARP recipient the Feds have not attempted to disengage from happens to be the largest issuer of subprime auto loans in the world – Ally Financial (aka GMAC, Ditech, ResCap).

In 2008 there was $730 billion of student loan debt outstanding, of which the Federal government was responsible for $120 billion. Five short years later there is $1.2 trillion of student loan debt outstanding and the Federal government (aka YOU the taxpayer) is responsible for $716 billion. Using my top notch math skills, I’ve determined that student loan debt has risen by $470 billion, while Federal government issuance of student loan debt has expanded by $600 billion. The rational risk adverse lenders have reduced their exposure to the most subprime borrowers on earth, undergrads at the University of Phoenix and thousands of other “for profit” educational black holes across the country. Only an organization who didn’t care about getting repaid would lend billions to borrowers without a job, hope of a job, or intellectual ability to hold a job. A critical thinking person might wonder why student loan debt would rise by almost $500 billion in 5 years when college enrollment has grown by only 2 million. That comes to $250,000 per additional student.

The Federal government couldn’t possibly have distributed $500 billion to anyone with a pulse as a way to manipulate the national unemployment rate lower, because anyone in school is not considered unemployed. Do you think the $500 billion was spent on tuition and books? Or do you think those “students” used it to buy iGadgets, HDTVs, weed and Twitter stock? With default rates already at all-time highs and accelerating skyward and $146 billion of loans already in default, you don’t need a PhD from the University of Phoenix (where default rates exceed 30%) like Shaq to realize the American taxpayer is going to get it good and hard once again.

My personal observations during my daily trek through the slums of West Philly would befuddle someone who didn’t understand the oligarch scheme to create an artificial auto recovery by distributing auto loans to deadbeats, the SNAP army, and hip hop nitwits. As I maneuver quickly through the West Philly badlands in my four year old paid off compact car praying I don’t get caught in gang crossfire, I see an inordinate number of brand new BMWs, Mercedes, Lexus, Cadillacs, and Jaguars parked in front of $20,000 dilapidated fleapits that tend to collapse during heavy rain storms. The real unemployment rate in these garbage strewn, disintegrating neighborhoods exceeds 50%. The median household income is less than $20,000. Over 40% of the adult population hasn’t graduated high school and 63% of the population lives below the poverty level. These people put the “sub” in subprime. How can anyone in this American version of third world Baghdad afford to drive a $40,000 vehicle? The answer is they can’t. But you the taxpayer, out of the goodness of your heart and without your knowledge, have loaned them the money so they can cruise around West Philly in Jay Z or Kanye style.

Bernanke’s ZIRP creates the environment for mal-investment and reckless lending. With the Federal government owned Ally Financial leading the charge, the miraculous auto sales recovery is nothing but a bad loan driven illusion. With the Federal government pushing subprime loans like a West Philly drug dealer, the Too Big To Trust Wall Street cabal have followed suit providing financing to deadbeats with FICO scores of 500, no job, but a nice smile. When you can borrow from the Fed at 0% and loan money to SNAP nation at 18%, with a Bernanke unspoken promise to bail them out when the inevitable defaults come as a complete shock, this is why you see thousands of luxury automobiles parked in the urban kill zones across America.

Zero Hedge documented the new subprime bubble in a story earlier this week. As auto dealers allow losers with sub-500 FICO scores to drive off their lots with new cars, ZH summarized the next taxpayer bailout:

 “No Car, no FICO score, no problem. The NINJAs have once again taken over the subprime asylum.”

Someone with a 500 FICO score has defaulted on multiple debt obligations in the recent past. The issuance of hundreds of billions of subprime debt can give the appearance of economic growth for a short period of time, just like it did from 2004 through 2007. Then it all collapsed in a heap because the debt eventually must be repaid. Cash flow is required to service debt. Maybe the West Philly subprime Mercedes drivers can trade their SNAP cards for cash to make their car loan payments, since they don’t have jobs. Even the captured MSM is being forced to admit the truth.

While surging light-vehicle sales have been one of the bright spots in the U.S. economy, it’s increasingly being fueled by borrowers with imperfect credit. Such car buyers account for more than 27 percent of loans for new vehicles, the highest proportion since Experian Automotive started tracking the data in 2007. That compares with 25 percent last year and 18 percent in 2009, as lenders pulled back during the recession. Issuance of bonds linked to subprime auto loans soared to $17.2 billion this year, more than double the amount sold during the same period in 2010, according to Harris Trifon, a debt analyst at Deutsche Bank AG. The market for such debt, which peaked at about $20 billion in 2005, was dwarfed by the record $1.2 trillion in mortgage bonds sold that year.

When has packaging subprime loans, getting them rated AAA by a trustworthy ratings agency, and selling them to little old ladies and pension funds, ever caused a problem before? With subprime auto loan issuance accounting for 50% of all car loans and an average loan to value ratio of 114.5%, what could possibly go wrong? Think about that for one minute. The government and Wall Street banks are loaning deadbeats $33,000 of your money to buy a $30,000 car, despite the fact the high school dropout borrower doesn’t have a job and has a history of defaulting on their obligations.

Can you really blame the borrowers? For the second time in the last decade the rich folk have generously offered to let them experience the good life, with debt that is never expected to be repaid. The people in West Philly live in rat infested, rundown, leaky shacks waiting for the 1st of the month to get their EBT card recharged. They have nothing, so they have nothing to lose. When the MAN offered to loan them $300,000 in 2005 so they could buy their very own McMansion, what did they have to lose? They got to live in a fancy house for a few years until they were booted out by the bank and left in exactly the same spot they were before the MAN came along. These people don’t even know what a FICO score means.

Now the MAN has knocked on their hovel door again and offered to put them in a brand spanking new Cadillac Escalade with no money down, requiring no proof of employment, and no prospects of  repaying the loan. Hallelujah, there is a God!!!  They get to tool around West Philly for a year or two impressing their fellow SNAP recipients until the repo man shows up and absconds with their wheels. They will be left right where they were, hoofing it with their $200 Air Jordans. Anyone with an ounce of brains (eliminates Cramer & Bartiromo) can see this will end exactly as all easy money, Federal Reserve propagated, and government sanctioned scams end.

“Perhaps more than any other factor, easing credit has been the key to the U.S. auto recovery,” Adam Jonas, a New York-based analyst with Morgan Stanley, wrote in a note to investors last month. The rise of subprime lending back to record levels, the lengthening of loan terms and increasing credit losses are some of factors that lead Jonas to say there are “serious warning signs” for automaker’s ability to maintain pricing discipline.

In the last year 99% of all consumer debt issued was doled out by government drones, with no interest in getting repaid, to subprime deadbeats, with no interest in repaying. It’s a match made in subprime heaven with your tax dollars. As an Ivy League educated Wall Street banker CEO once said:

“When the music stops, in terms of liquidity, things will be complicated. But as  long as the music is playing, you’ve got to get up and dance. We’re still  dancing.”

Chuck “Doing the Boogie Woogie” Prince – FORMER CEO of Citicorp – July 2007

You see it is always about liquidity, also known as Bernanke Bucks or QEternity. Without Bernanke and his Federal Reserve sycophants printing $2.8 billion of new money every single day, shoveling it into the grubby hands of his Wall Street bank bosses and a corrupt fetid festering pustule of a government running trillion dollar deficits and showering your money on loafers and welfare queens, this subprime final solution would not be possible. This is an exact replay of the subprime mortgage debacle, except the oligarchs have cut out the middleman. Holding the American people hostage for the $700 billion TARP bailout proved to be messy, with 90% of Americans against the “Save a Corrupt Criminal Banker” scheme. This time, there will not be a vote in Congress when the hundreds of billions in subprime student loans and subprime auto loans go bad and become the responsibility of the few remaining American taxpayers. What’s another few hundred billion among friends when our annual deficits soar past $1 trillion, our national debt approaches $20 trillion, and our unfunded entitlement liabilities exceed $200 trillion?

When the music stopped in 2008, Chuck Prince bopped away with a $40 million severance package and you were left to sweep the confetti off the floors, pick up the empty champagne bottles and caviar plates, scrub the vomitorium, and pay for all the damages that occurred during the sordid subprime orgy of greed, lust, gluttony, envy and sloth. Somehow the distracted, techno-narcissistic, easily duped zombies have been lured into the subprime web of deceit again. We have only ourselves to blame as the corporate fascist oligarchs implement their final solution for the American middle class and our once proud nation – a bullet to the back of the head.

IT TAKES A TWO PARENT FAMILY TO RAISE A CHILD

It doesn’t take a village to raise a child. Hillary Clinton is a liberal power hungry control freak. Liberals like to spew gibberish like this because their welfare state policies have destroyed the family unit and they want the all powerful government to assume even more control over our lives to fix the problem they created. The disintegration of America began with LBJ’s War on Poverty entitlement state solutions to a problems we didn’t have. West Philly is a ghetto because black men have abdicated their role of being a father to the government. The spiral continues and the liberal solution is more food stamps, more welfare, more dependency, and less self responsibility. The state will fix all of our societies ills. Just give them some more money.

Family disintegration has hurt America

Monday, January 28,2013

COMMUNITY LEADERS across the U.S. find themselves struggling with rampant tardiness, high truancy rates, high dropout rates, low educational attainment, widespread drug addiction, crime, a degraded work force and more.

It’s as if society is disintegrating.

That’s because many poor American families have.

Some social scientists contend that War on Poverty programs intended to help the poor actually led to what they call “family disintegration” instead.

“The core feature of the U.S. welfare system, and its central problem, is that it subsidizes and thus promotes self-destructive behavior,” the Heritage Foundation said in a 1995 briefing paper. “Specifically, the welfare system promotes: non-work, illegitimacy and divorce.”

The current system “transformed marriage from a legal institution designed to protect and nurture children into an institution that financially penalizes nearly all low-income parents who enter into it,” the foundation said.

In 2011, almost 41 percent of children born in the United States were born to unmarried women.

This has consequences.
“Welfare insidiously creates its own clientele; by undermining work ethic and family structure, the welfare state generates a growing population in ‘need of aid.’”

The Heritage Foundation again: There is “material poverty,” which measures income, and “behavioral poverty,” which “refers to a breakdown in the values and conduct which lead to the formation of healthy families, stable personalities, and self-sufficiency.”

BEHAVIORAL POVERTY “incorporates a cluster of severe social pathologies including: eroded work ethic and dependency, lack of educational aspiration and achievement, inability or unwillingness to control one’s children, increased single parenthood and illegitimacy, criminal activity, and drug and alcohol abuse,” the foundation said.

That’s what U.S. law enforcement, criminal justice, public school and court systems wrestle with every day.

ALL THESE problems would be lessened if society were to address the cause of family disintegration – welfare that is more rewarding than work – rather than the consequences of family breakdown.

Society, it turns out, makes a very poor substitute for strong families.

— The Charleston (W.Va.) Daily Mail

45TH ANNIVERSARY OF ISRAEL ATTACKING AMERICA

 Happy 45th Anniversary Israel, for attacking an American ship and getting away with it. With allies like Israel, who needs enemies.

File:USS Liberty.jpg

‘The USS Liberty’: America’s Most Shameful Secret

by Eric S. Margolis

NEW YORK – On the fourth day of the 1967 Arab Israeli War, the intelligence ship ‘USS Liberty’ was steaming slowly in international waters, 14 miles off the Sinai Peninsula. Israeli armored forces were racing deep into Sinai in hot pursuit of the retreating Egyptian army.

‘Liberty,’ a World War II freighter, had been converted into an intelligence vessel by the top-secret US National Security Agency, and packed with the latest signals and electronic interception equipment. The ship bristled with antennas and electronic ‘ears’ including TRSSCOMM, a system that delivered real-time intercepts to Washington by bouncing a stream of microwaves off the moon.

‘Liberty’ had been rushed to Sinai to monitor communications of the belligerents in the Third Arab Israeli War: Israel and her foes, Egypt, Syria, and Jordan.

At 0800 hrs, 8 June, 1967, eight Israeli recon flights flew over ‘Liberty,’ which was flying a large American flag. At 1400 hrs, waves of low-flying Israeli Mystere and Mirage-III fighter-bombers repeatedly attacked the American vessel with rockets, napalm, and cannon. The air attacks lasted 20 minutes, concentrating on the ship’s electronic antennas and dishes. The ‘Liberty’ was left afire, listing sharply. Eight of her crew lay dead, a hundred seriously wounded, including the captain, Commander William McGonagle.

At 1424 hrs, three Israeli torpedo boats attacked, raking the burning ‘Liberty’ with 20mm and 40mm shells. At 1431hrs an Israeli torpedo hit the ‘Liberty’ midship, precisely where the signals intelligence systems were located. Twenty-five more Americans died.

Israeli gunboats circled the wounded ‘Liberty,’ firing at crewmen trying to fight the fires. At 1515, the crew were ordered to abandon ship. The Israeli warships closed and poured machine gun fire into the crowded life rafts, sinking two. As American sailors were being massacred in cold blood, a rescue mission by US Sixth Fleet carrier aircraft was mysteriously aborted on orders from the White House.

An hour after the attack, Israeli warships and planes returned. Commander McGonagle gave the order. ‘prepare to repel borders.’ But the Israelis, probably fearful of intervention by the US Sixth Fleet, departed. ‘Liberty’ was left shattered but still defiant, her flag flying.

The Israeli attacks killed 34 US seamen and wounded 171 out of a crew of 297, the worst loss of American naval personnel from hostile action since World War II.

Less than an hour after the attack, Israel told Washington its forces had committed a ‘tragic error.’ Later, Israel claimed it had mistaken ‘Liberty’ for an ancient Egyptian horse transport. US Secretary of State, Dean Rusk, and Joint Chiefs of Staff head, Admiral Thomas Moorer, insisted the Israeli attack was deliberate and designed to sink ‘Liberty.’ So did three CIA reports; one asserted Israel’s Defense Minister, Gen. Moshe Dayan, had personally ordered the attack.

In contrast to American outrage over North Korea’s assault on the intelligence ship ‘Pueblo,’ Iraq’s mistaken missile strike on the USS ‘Stark,’ last fall’s bombing of the USS ‘Cole’ in Aden, and the recent US-China air incident, the savaging of ‘Liberty’ was quickly hushed up by President Lyndon Johnson and Defense Secretary Robert McNamara.

The White House and Congress immediately accepted Israel’s explanation and let the matter drop. Israel later paid a token reparation of US $6 million. There were reports two Israeli pilots who had refused to attack ‘Liberty’ were jailed for 18 years.

Surviving ‘Liberty’ crew members would not be silenced. They kept demanding an open inquiry and tried to tell their story of deliberate attack to the media. Israel’s government worked behind the scenes to thwart these efforts, going so far as having American pro-Israel groups accuse ‘Liberty’s’ survivors of being ‘anti-Semites’ and ‘Israel-haters.’ Major TV networks cancelled interviews with the crew. A book about the ‘Liberty’ by crewman James Ennes’ was dropped from distribution. The Israel lobby branded him ‘an Arab propagandist.’

The attack on ‘Liberty’ was fading into obscurity until last week, when intelligence expert James Bamford came out with Body of Secrets, his latest book about the National Security Agency. In a stunning revelation, Bamford writes that unknown to Israel, a US Navy EC-121 intelligence aircraft was flying high overhead the ‘Liberty,’ electronically recorded the attack. The US aircraft crew provides evidence that the Israeli pilots knew full well that they were attacking a US Navy ship flying the American flag.

Why did Israel try to sink a naval vessel of its benefactor and ally? Most likely because ‘Liberty’s’ intercepts flatly contradicted Israel’s claim, made at the war’s beginning on 5 June, that Egypt had attacked Israel, and that Israel’s massive air assault on three Arab nations was in retaliation. In fact, Israel began the war by a devastating, Pearl-Harbor style surprise attack that caught the Arabs in bed and destroyed their entire air forces.

Israel was also preparing to attack Syria to seize its strategic Golan Heights. Washington warned Israel not to invade Syria, which had remained inactive while Israel fought Egypt. Bamford says Israel’s offensive against Syria was abruptly postponed when ‘Liberty’ appeared off Sinai, then launched once it was knocked out of action. Israel’s claim that Syria had attacked it could have been disproved by ‘Liberty.’

Most significant, ‘Liberty’s’ intercepts may have shown that Israel seized upon sharply rising Arab-Israeli tensions in May-June 1967 to launch a long-planned war to invade and annex the West Bank, Jerusalem, Golan and Sinai.

Far more shocking was Washington’s response. Writes Bamford: ‘Despite the overwhelming evidence that Israel attacked the ship and killed American servicemen deliberately, the Johnson Administration and Congress covered up the entire incident.’ Why?

Domestic politics. Johnson, a man never noted for high moral values, preferred to cover up the attack rather than anger a key constituency and major financial backer of the Democratic Party. Congress was even less eager to touch this ‘third rail’ issue.

Commander McGonagle was quietly awarded the Medal of Honor for his and his men’s heroism – not in the White House, as is usual, but in an obscure ceremony at the Washington Navy Yard. Crew member’s graves were inscribed, ‘died in the Eastern Mediterranean..’ as if they had be killed by disease, rather than hostile action.

A member of President Johnson’s staff believed there was a more complex reason for the cover-up: Johnson offered Jewish liberals unconditional backing of Israel, and a cover-up of the ‘Liberty’ attack, in exchange for the liberal toning down their strident criticism of his policies in the then raging Vietnam War.

Israel, which claims it fought a war of self defense in 1967 and had no prior territorial ambitions, will be much displeased by Bamford’s revelations. Those who believe Israel illegally occupies the West Bank and Golan will be emboldened.

Much more important, the US government’s long, disgraceful cover-up of the premeditated attack on ‘Liberty’ has now burst into the open and demands full-scale investigation. After 34 years, the voices of ‘Liberty’s’ dead and wounded seamen must finally be heard.

THIS COUNTRY DEFAULTED LONG 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.”Ludwig von Mises

The final collapse of our credit expansion boom approaches. We have a choice over the next week. We could voluntarily abandon further credit expansion by voting for a Balanced Budget Amendment to the Constitution or we can raise the debt ceiling, pretend to cut spending far in the future, and allow our currency system to experience a catastrophic final collapse.

We’ll take what’s behind door #2 Johnny. The vested interests in Washington DC and Wall Street only care about power and wealth. They will never abandon credit expansion. It’s their drug. They must have it. They are addicted to it. They will keep injecting it into our system until they overdose America.

The mainstream media acts as if not raising the debt ceiling by next Tuesday will result in America defaulting. This is a crock. America chose to proceed on a path to default decades ago. We are just finally reaching our destination. Below are the choices we made as a people and a country to default on our obligations and eventually destroy our country:

  • The enactment of the 16th Amendment to the Constitution in 1913 allowing the government to impose a tax on your income, thereby opening Pandora’s Box to a 60,000 page tax code and allowing politicians to sell their votes to the highest bidder.
  • The signing into law of the Federal Reserve Act by Woodrow Wilson in 1913, transferring control of our currency system to Wall Street banks. The man made inflation created by the Federal Reserve has reduced the purchasing power of the USD by 97% since 1913 and has allowed politicians to promise $100 trillion of benefits to Americans, that can never be delivered.
  • The Social Security Act signed into law by Franklin Delano Roosevelt in 1935, supposedly to help widows and orphans, morphed into a giant ponzi scheme used by politicians to make Americans think it was a retirement plan and the money was in a lockbox. The scam continues, but ponzi schemes always collapse.
  • Fannie Mae was created in 1938 as a government agency and Freddie Mac was created in 1970 as a quasi-government agency. By promoting home ownership and subsidizing loans to people who should have never gotten loans these agencies caused hundreds of billions in mal-investment. As tools of politicians, they were used to push social agendas. The result will be in excess of $300 billion in losses to the American taxpayer.
  • The Korean War set a precedent where the President did not need to seek Congress to declare war as required under the Constitution. This has allowed the President the freedom to fight undeclared wars around the world for decades, while spending trillions, with no approval from Congress.
  • LBJ’s Great Society programs such as Medicare and Medicaid were sold to Americans as cost saving programs that would improve healthcare for all Americans. We now spend 17% of our GDP on healthcare and these two programs have an unfunded liability of almost $100 trillion.

  • Nixon closing the gold window in 1971 removed all restraint on the Federal Reserve, banks and politicians. With a fiat currency backed by nothing but promises, it was only a matter of time before the greed and corruption of bankers and politicians overcame any self imposed fiscal responsibility. The result has been the National Debt going from $400 billion in 1971 to $14.4 trillion today, a 3,600% increase in 40 years. Meanwhile, GDP only increased 1,350% over this same time frame.
  • The embrace of consumer debt by the Baby Boom generation beginning in 1980 created an atmosphere of living for today and not worrying about the future. This attitude has left 50% of all the households in the country with a net worth of $70,000 or below.
  • The repeal of the Glass Steagall Act in 1999 unleashed the hounds of hell upon America, as the soulless blood sucking vampires on Wall Street proceeded to rape and pillage the American economy with their financial derivatives of mass destruction and marketing of debt to the clueless masses. The housing bust and impoverishment of the middle class can be laid at the feet of these evil greedy bastards.
  • Bush’s unpaid for wars of choice, his reckless tax cuts, and his foolish expansion of a bankrupt Medicare program in the midst of two wars turbo charged the country on its path to default.
  • By bailing out Wall Street on the backs of the middle class in 2008/2009, the politicians in this country showed their hand. They will protect their fellow power brokers and contributors and throw the American people under the bus. Wall Street controls Congress.
  • The Keynesian schemes rolled out by Obama and his minions have just added trillions of debt while depressing the economic system and doing nothing to help the average person. The Fed created inflation has inflamed revolution through out the world and further impoverished the middle class who need to eat and fill up their cars.
  • In the midst of a Depression Obama chose to create a brand new healthcare bureaucracy, add 30 million people into the government controlled system, and commit the US taxpayer to trillions of future healthcare costs.

As you can see, next Tuesday means nothing. The debt ceiling means nothing. We chose to default as a nation many years ago. The destination was certain, only the timing was in question. Time to step on the gas.

“Credit expansion is not a nostrum to make people happy. The boom it engenders must inevitably lead to a debacle and unhappiness.”Ludwig von Mises