Monday, May 14, 2012

there is not enough money on planet earth...,

automaticearth | No matter how you look at it, as The Automatic Earth and others have pointed out ad infinitum, in the end the US economy rests on two pillars: Jobs and Housing. They are where both all the good and bad in economic terms begin and end. Ben Bernanke and his Fed policies are majestically failing on both counts.

That is the reality that is shaping America's reality today. Anything else is just a sideshow. Discard all the hubris on recovery, on falling unemployment; all that is but a mirage the political/industrial/financial/media conglomerate wishes you to see and believe in, so you won't pay attention to what truly goes on. Which is that Fed and Treasury policies were never designed to support or revive the economy you depend on for your income and your well-being in general. They were and are designed to take your wealth away from you.

What is at issue? Easy as pie: banks were bailed out with many trillions of dollars in taxpayer funds (which they won’t pay back, they’ll just come back for more) without any scrutiny to speak of.

Bernanke and Geithner at best (yeah, right!) just "hoped" they would lend again, but they never made it a condition of the bailouts. What we find now is what I have repeatedly been saying for years now: The banks are far too deep in debt, even after the bailouts, to revive lending even to "healthy buyers". The entire bailout circus has been a scam, since the money was handed out to banks without looking at how much debt they really have on their books.

It's all been one big massive wealth transfer, perpetrated under the guise of fixing the financial system and the economy in general. Neither was the real purpose behind the bailouts: they were and are nothing but a clever way to steal from the poor and fork over the loot to the rich. And they ain't done yet. That, you can put your money on. That is a safe bet.

You need to wake up to this. You really do. You need to cut your dependence on the financial/political system to the maximum extent that you can. If you don't, it will steamroller over you. The system is so deep in debt that it will come looking for every last penny it can find in your pockets. Many of you will be caught by surprise, and stuck with tens of thousands of dollars, and often many times, in debt. That will turn you into a potential slave. Or a prisoner, if you will. Terminology is not an urgent priority on the chaingang.

So where do Ben B.S. Bernanke's deliberate "failures" show up? Have a look, I'll try and paint you a picture.

8 comments:

Ed Dunn said...

Innovation drives jobs and housing so this article is blaming the byproduct, not the source. I believe  innovation has left this country and driving jobs and housing in other global markets which is the cause of the American economy to do down.

Americans still refusing to accept the fact in this day and age they have to complete globally and was not taught to innovate but enjoy the "privilege" of being American...

CNu said...

Cheap energy drives every aspect of the real economy and the era of cheap abundant energy is over. Unless there are massive breakthroughs in energy sources (not gonna happen) or parallel gains in transport efficiency (possibility) - then this is all very academic.

The broad outlines of WW-III are beginning to come into view....,

Ed Dunn said...

From the article:

 "You need to cut your dependence on the financial/political system to the maximum extent that you can."

And do what...tend the rabbits and work the farms like George and Lenny?  I don't think people have a choice as they are being cut from the financial/political system.

Parallel gains in transport efficiency means the USA revert to $1.48/hour wages and I don't think that is going to happen anytime soon.  Thank goodness for artificial minimum wage versus market wages to at least prevent everyday Americans from seeing reality.

CNu said...

And do what...tend the rabbits and work the farms like George and
Lenny?  I don't think people have a choice as they are being cut from
the financial/political system.


yep, or the farms and the tilapia - http://www.podponics.com/

Atlanta ought to be mecca..., (oh, and chia grows like a weed!!!)

John Kurman said...

http://av.r.ftdata.co.uk/files/2010/12/RealCommodityPrices-SocGen.jpg

http://www.wtrg.com/oil_graphs/oilprice1947.gif

I'm over the peak energy peak. I mean, after Bush I jollied the Saudi king into skeletonizing the Soviets by opening up the faucet to full (and also allowing Reagan's dope dream to pan out), and hid the decline, fact is, human ingenuity is what you are paying in the commodities area. As long we keep thrwoing brains at it, like a Chinese wave, we muddle onward. Ho hum. 

But if you want doomsday, it looks like the 22nd century that's gonna be boneyard. We're just putting the pieces in their positions. So far it's more like catatonia instead catastrophe.

makheru bradley said...

The JPMorgan Chase $2 billion blow-up was just the tip of the derivatives iceberg. The folks are so damned brilliant:

"The portfolio was layered with hedging strategies that became too complicated to  work and too big to unwind in the esoteric market."

Of course it's not just JPM-Chase. The entire G14 (particularly BOA, Citi, and Goldman Sachs) are neck deep in the $600 trillion derivatives market. There isn't enough bailout money on the planet to save them. This is the mother of all cataclysmic bubbles! When it bursts 1929 will look like a kindergarten party.  

Dale Asberry said...


And do what...tend the rabbits and work the farms like George and Lenny?


I'm working a homestead (standard garden fare, fruit nut and pea(!) trees, edible perennials, bees, and chickens - so far). I work from home for a company in Austin and have a little side hustle fixing computers. I'm working on starting up a small business doing home-size renewable energy.

I'd like to add fish but no one else in my family would eat it. Goats and pigs are likely additions next year.

Ed Dunn said...

Sounds like you and Cnu want people to go to jail...

 http://www.youtube.com/watch?v=3keUTEwev-o