Blood sport
In what is BECOMING the deadliest game of CHICKEN since the August 2011 US
debt ceiling Showdown, we are at the doorstep of part II. In a game of chicken,
two cars rush headlong towards each other to see who veers off first. Occasionally,
neither driver does and both parties perish in the collision. Usually, it is
just the drivers who pass away from their imprudence; in this case it will
be the spectators. Just like children playing with FIRE who BURN the HOUSE
down. Blood sport of the worst sort.
I have commented a number of times that since 2008 elected veto-proof majorities,
the implementation of socialism went into HYPERDRIVE during the 2008 to 2010
period. The affordable care act was, and has been, the dream of socialists
since 1945.
These progressives are blind ideologues and do not respect history; compromise
is not to be embraced as they march the future prosperity of the country over
the cliff towards the egalitarian society (misery spread widely as the successful
are brought down to the level of the lowest common dominator) they dream of.
This is a man-made disaster make no mistake.
In this game of CHICKEN, we have DIE HARD socialists and big government progressives
from both sides of the aisle in Washington DC (aka District of Corruption).
Having spent decades, growing leviathan government, grabbing freedoms and income
from the private sector since Bretton Woods II finished cutting the chains
of sound money. Their greed became unbounded a second time with the corrupt
super majority which rode the coattails of the chosen one's election in 2008.
Insisting that their spending never be limited, that the debt never stops
piling up, that growth of government never be limited, that the delivery of
government benefits always grows, that people on the dole never be required
to work or become self-sufficient, that the prudent and successful be crucified
on the altar of fairness, misery is spread widely by government dictate, and
looting of the private sector be done at the point of a government gun. Progressives
on both sides of aisle that never know when to stop: killing the economy with
their prescriptions for happiness.
In 2013, the federal government is spending $12,000 dollars for every man,
woman and child in America (with about 1/3 being borrowed) and incurring future
obligations for the same group of $9,000 dollars with the bill sent to YOU
and future generations. Nowhere are the American people told how much is being
spent and what their portion of the borrowed and unpaid bills amount to, which
is approximately: $9000 (unfunded liability) plus $4000 borrowed equals $13,000.
When do you think Washington might come to your door and DEMAND payment? Take
a look at the future obligations COMING YOUR WAY:
Both the Blue and red lines are obligations occurred by Washington DC with
the bills earmarked for YOU! EVERY DOLLAR of obligations has been written with
you as the payer? The president frequently says we have spent the money and
now we must pay the bills, most people think that means someone else when in
reality it is YOU, your children and their children.
Do you think that might affect your future? To progressives/socialists and
the main stream media which control dialogue with the masses, stopping this
or restraining this behavior is an act of terrorism.
"There are two ways to conquer and enslave a nation. One is by the sword.
The other is by debt." ~ John Adams, 1823
A total main stream media BLACK out of this THREAT is in full effect. Even
the dumbest among us recognizes that $21,000 dollars spending is excessive
especially when the public is expected to pay it back (nobody has the
courage and honesty to tell them). To stop the march of socialism is
a crime against the CENTRALLY PLANNED and CONTROLLED WELFARE state.
"You cannot legislate the poor into freedom by legislating the wealthy
out of freedom. What one person receives without working for, another person
must work for without receiving. The government cannot give to anybody
anything that the government does not first take from somebody else. When
half of the people get the idea that they do not have to work because the
other half is going to take care of them, and when the other half gets
the idea that it does no good to work because somebody else is going to
get what they work for, that my dear friend, is about the end of any nation.
You cannot multiply wealth by dividing it." ~ Adrian
Rogers
This is precisely where we are today in the developed world. The makers versus
the takers with both sides fighting for the ability to GROW. Grow the welfare
state and the looting that goes with it, or GROW the private sector and the
ability to make and retain wealth. It is a battle between personal freedom
and slavery to the state. Who will prevail?
In the other corner are conservatives and the Tea party who respect and cherish
the constitution. People, who live within their means, work hard and are self-reliant,
have had decent educations, know and respect history. And understand that others
must do so or they will become the buffet table for those that don't.
"A political party cannot be all things to all people. It must represent
certain fundamental beliefs which must not be compromised to political
expediency or simply to swell its numbers." ~ Ronald Reagan
They believe in the rule of law, understand the deep SYSTEMATIC corruption
that Washington has evolved to and are peacefully opposed to it within the
law. They are now labeled terrorists and domestic extremists for opposing unconstitutional
governance, runaway government expenditures and total disregard for financial
prudence and OPPOSE the rise of government as master rather than servant.
Government is not reason; it is not eloquent; it is force. Like fire,
it is a dangerous servant and a fearful master. ~ George Washington
The funding of government is a sideshow compared to the debt ceiling, that
is the game for the next several weeks as progressives in the senate and white
house try and undo the sequester and return to the unrestrained spending of
the last 50 YEARS! When will the American people WAKE UP is the question?
This massive expansion of government and regulations is PRECISELY what was
done early in the great depression in the early years of FDR, driving and deepening
the depression. The more the POOR policies and new taxes were implemented,
the more enduring and embedded the depression became.
In 2009-2010 the ideologically corrupt supermajority implemented exponentially
more poison then FDR did into the economy early in the chosen ones tenure,
the full impact which will be unfolding forever as these ill-defined laws allow
regulatory favors to be bought and sold forever to crony capitalists and special
interests alike. Think the tax code.
When you are a socialist, the end result of complete dominance justifies any
of the means to their goals. Examples litter history of socialist dictators
never allowing anything to stop them. Stalin, Lenin, Mao, Hitler, Pol Pot have
literally BURIED large parts of their constituents in attaining their dominance
over them. This UNFOLDING episode in Europe and America will be no different.
I have referred to it as Socialists smelling the end zone. This time is it
Brussels (European commission) and Washington DC at the helm of the DIRTY WORK
of gathering dominance at the point of a government gun with SPECIAL assistance
from the Federal Reserve and the European central bank.
The FINANCIAL and MONETARY collapse into socialist dictatorships as outlined
by the Cloward Piven strategy has been executed in horrifying detail.
Since 1971, when big government became unrestrained, it has now worked its
way into every conceivable nook and cranny of the private sector (housing/mortgages,
small business, education, health care, banking and finance, commerce, labor,
energy, transportation, communications, etc). This is not the picture of a
free society...
This is a picture of the straight jacket PLACED on the economy and your freedoms
since the 1940's. Notice how it leaps higher with the advent of completely
unsound money.
Below is what the UNSEEN cost is. Do you think the middle class would support
this if they knew the cost to THEM?
When will the American people be told this? UP TO 1/3 of this must be repealed
to restore growth; it is what Reagan did when he took office. The cost of this
to every household adds another $14,768 dollars in addition to the money spent,
borrowed or promised. And just like the debt, deficits and future promises
the straightjackets are in plain view but once again the costs are HIDDEN from
the public at large by the main stream media. If you cut it by 1/3 that would
free up $5,000 dollars per household which could be spent in lieu of the same
amount of cuts to federal spending. The economy would explode higher and foolish
government shrink like the cancer tumor it is.
Big government progressives ARE creating government dependents at an astonishing
rate and promising new entitlements for which there is NO MONEY TO PAY FOR
THEM, now or in the future. If this is not a recipe and plan to bankrupt the
nation then color me PURPLE. Our leaders WILLFULL blindness to the lessons
of history doom us to repeat histories lessons.
Duties and promises which the government is incapable of delivering on. The
very idea they can run the financial and healthcare industry from the bowels
of the regulatory state in Washington is folly. These LAWMAKERS are trying
to run these industries with no experience in what they are dealing with. Take
a look at this graphic from our leadership in the first four years of the president
and understand that the lack of experience in the second term is worse as we
have entered the era of Wesley Mouch:
"It's not that liberals aren't smart, it's just that so much of what
they know isn't so." ~ Ronald Reagan
These GOVERNMENT policies can be known as killing the GOLDEN GOOSE, aka the
private sector. Now the beltway is stabbing it over and over again as it bleeds
to death in their deadly embrace.
Refusing to govern in a responsible manner in which income matches spending
they have built a mound of insolvency and unfolding bureaucracy which is impossible
to conceive or reverse. Expanding entitlements and promises to pay in reckless
and ultimately what will be a catastrophic manner. I call it the POLICIES of
INSOLVENCY, where government mandates benefits with NO PLAN to pay for them
(sounds like the pension crisis doesn't it?) except future borrowing, money
printing and in actuality BOTH!
Last year alone the US treasury's own reports outline a GAAP adjusted government
deficit of almost $6.6 Trillion dollars ($6.6 million million) in an economy
which when adjusted for phantom growth (growth conjured out of thin air when
no transaction have taken place) may be $13 Trillion dollars means the deficit
in REAL terms is about 50+%.
Runaway spending coupled with entitlements also known as UNFUNDED promises
to pay has mushroomed as socialists have tried to expand their government dependent
constituencies. Look at this glimpse at its breathtaking expansion since the
chosen one and his PROGRSSIVE minions implemented their agenda without the
checks and balances created by the founding fathers and enshrined in the constitution
(courtesy of www.gluskinsheff.com:
Put your eye on 2008 and work your way to today. This is nothing but a report
card of the FAILURE of the chosen one and his congressional minion's policies
of insolvency and destruction of the capitalist economy we all depend on for
our future livelihoods. Millions and millions of people forced onto the dole
because of the lack of the policies to create the conditions for the private
sector to GROW and EMPLOY them!
ROCKETSHOTS in the growth of something for nothing constituents wrought by
a 20%+ increase in leviathan central government since 2009. How did the chosen
one only win the election by such a narrow margin with this army growing this
briskly?
This is the wholesale disembodiment of the private sector and economy as once
productive citizens are moved to the ranks of the disenfranchised by the policies
emitting out of the district of corruption. Those are the rations of slaves
as Alexis de Tocqueville so eloquently observed:
"It is not an endlessly expanding list of rights ---the "right" to an education;
the "right" to health care; the "right" to food and housing. That is not freedom.
That is dependency. Those are not rights. Those are the rations of slavery
- hay and a barn for human cattle."
There is not compassion, this is betrayal as the central government destroys
the ability and incentives to save, invest, be self-reliant, create small businesses,
and outlaws capitalism. Regulating demand to the special interest supporters
and crony capitalists as the pie of economic activity SHRINKS under their policies.
The failure of current government policies to encourage and facilitate private
sector growth is MASKED by Orwellian GOVERNMENT economic stats. Where growth
in debt and consumption is reported as economic growth. When in reality it
is the consumption of the future by socialists and something for nothing constituents
today.
Author's Note: In my opinion the greatest manmade disaster and OPPORTUNITY
in history is unfolding in every corner of the world. Are you diversified
or operating with EYES WIDE SHUT? Are you prepared to turn it into opportunity
by properly diversifying your portfolio? Adding investments which have
the potential to thrive regardless of what unfolds economically? Hedging
the printing presses impact on your paper money? This is what I do for
investors; help them diversify into investments which are created to potentially
thrive. For a personal consultation with me CLICK
HERE!
In the two years between the election in 2008 and 2010 the greatest accumulation
of legislation, additional spending and its spawn known as regulations have
been wrapping themselves around the economy like a PYTHON and now the SQUEEZE
to death of the economy and capitalism is at hand.
FINANCIAL and MONETARY Armageddon are at hand as well, as it is quite clear
as QE infinity is rapidly being EXPOSED as the program it is: FUNDING the moral
and fiscal insolvency of the US government, financial repression and a toxic
waste dump of bad bank assets known as residential mortgage backed securities.
Dodd Frank (enshrinement of too big to fail and crony capitalism rolled into
one), the Affordable care act (socialization/redistribution of the health care
and, of course, crony capitalism) and the stimulus bill (permanent expansion
of the executive branch by over 20%) have and are doing what was predicted.
There is NO ESCAPE from their DEADLY EMBRACE.
As a participant in the financial industry for almost 3 decades it is impossible
to ignore the implications and broad outlines of what Dodd Frankenstein is
becoming. It is the wholesale destruction of the smaller players and future
competitors to the Too big to fail banks. They are simply being REGULATED out
of business to solve and prevent problems which DON'T exist. Political solutions
to practical problems whose unintended consequences will seriously IMPAIR the
ability to stop the predators the banking industry has become.
The financial industry is being dismantled with the spoils going to the banks
which control those inside the beltway. For those of you with short memories
the futures industry was an oasis of stability during the global financial
crisis in 2008. Not one firm failed or had to be bailed because of the central
clearing mechanism assured counter party solvency throughout the crash. Everyone
was margined up every day (with no exceptions) or blown out as weak hands fell
to stronger ones.
Contrast this to the wholesale insolvencies in the financial capital of the
world known as New York. As Warren Buffet famously said referring to financial
liquidity: "when the tide goes out we find out who was swimming naked". Most
if not all were! Too big to fail is crony capitalism with a government guarantee,
obscene!
Reckless bankers at Bear Stearns, Washington mutual, Wachovia, Lehman Brothers
and many more met their demise. Overtly over $700 Billion was sent to Wall
Street known as the troubled asset relief program (TARP), and COVERTLY another
$15 trillion (15 million million) slipped out the back door of the Federal
Reserve and was UNREPORTED at the time. But they had one advantage; they controlled
the beltway through various K street lobbying operations.
So Dodd Frankenstein was written in a manner in which the benefits flowed
to the too big to fail banks and brokerages and the costs and nonsensical regulations
to imaginary problems sent to their smaller competitors. Bankrupting them in
the process and creating opportunities to roll them up as was done in the great
depression. In fact, it was modeled on that period when FDR destroyed the local
banking systems and transferred/legislated their businesses to the biggest
industry participants.
In conclusion: What is transpiring in Washington DC at the moment is a fight
over prudence versus an expansion of wholesale moral and fiscal insolvency
of the welfare state socialists. Is it too late to stop the destruction of
the future by the policies of the beltway?
My opinion is yes.
Contrary to the administration's BELIEFS, this is not a monarchy and dictatorship.
It is a constitutional republic with three coequal branches of government.
The legislature is not supposed to be a RUBBER stamp like a BANANA republic.
All legislation and spending must come from negotiated agreements. The only
thing you can expect to be agreed on is more spending and more government then
both sides inside the beltway will WIN.
The very future of the republic is what is at STAKE in the DEFICIT and BUDGET
battles, brass knuckle brawls are called for. But in REALITY NONE will occur.
It is IMPERATIVE that the American people are told the truth (the numbers in
this commentary), unfortunately no one has the courage to do so on either side
if the fight.
Authors Note: Most of the world and investors are operating with EYES
WIDE SHUT and in willful blindness for which they will pay a price. Have
you diversified into investments which have the potential to thrive regardless
of what unfolds? If not CLICK
HEREand I will show you how we do so. No one knows when the "you know
what" will hit the fan. But if you aren't already in place it will probably
too late to do so.
The sequester was the first example of government spending RESTRAINT in my
57 years (I thought I might faint when it happened), never to be repeated till
Mother Nature and Darwin strike the inevitable blows which will CRUSH the imprudent
and everyone who is under their grasp. Also known as the DEVELOPED world.
For the debt to be dealt with Economic growth must occur. All growth today
is debt masquerading as growth. This is the greatest blood sport in history
as those that don't produce insist on eating those that do (aka cannibalism),
destroying future wealth creation critical to economic survival. Only those
on the buffet table will resist this as to not do so is their demise. Of course,
this is what originally occurred during the American Revolution. Today those
fights are going to be refought.
This is a fight for freedom versus dominance by and for elites. It is history
repeating as it so often does. The stakes are high and politics is the ultimate
contact sport, as it is eat or be eaten and survival of the fittest.
Throughout the centuries governments and royalty have tried to create wealth
out of thin air. By printing it, debasements of Real money such as silver and
gold (roman denarius, etc.)or through alchemy like changing lead into gold.
Ultimately all failed as wealth cannot be printed out of thin air and their
financial and currency systems COLLAPSED as confidence was lost when people
WOKE UP! This time will be NO DIFFERENT, only the timing is in question.
But in 1945 at Breton woods and in 1971 at Breton woods II the ability to
print money out of thin air was REALIZED. The substitution of US treasury paper
for real reserves such as gold and silver began. Now it is complete, treasury
paper and dollars are the definition of REAL risk free money. They are the
gold standard of the global financial system and an official default would
change their definitions forever.
The privilege of Seigniorage (printing of money out of thin air) is inculcated
in Washington DC, it is the source of their power, it is part of the ongoing
business plan of socialist progressives and their Keynesian economic models.
The thought of losing the ability to prey upon the public and everyone in their
financial and currency systems is the one unthinkable option and that ability
will not be surrendered at this point. The collapse lies in the future as too
many still live in the matrix/looking glass for that to happen now. Their illusions
will be guarded at all costs. The death of the dollar is FAR AWAY as it is
woven very deeply into the financial system and it is the only currency in
the world where the shorts and the longs don't want it to change. The shorts
print it endlessly and the longs are trying to store wealth in it. Both live
in an illusion. Additionally if the US was FORCED to balance its budgets now,
US GDP would crater exactly the size of the deficit (which is debt masquerading
as production)of about 4%, instantly sending politicos in Washington into unemployment
at the next elections.
Although there is a lot of wailing, bombast and gnashing of teeth over the
debt ceiling and budget fights there is one thing you can count on. Don't worry,
they will PRINT THE MONEY....
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