Hot ashes are what you're getting. The political and media elites are giving you hot ashes, and taking your trees. I started Hot Ashes For Trees to tell you where I see this happening, and why.
Like what happens in those rinky-dink third world countries when the situation for the average person just keeps getting worse and worse, the whole while State Run Media is pumping "Move along folks .. nothing to see here the great leader has it all figured out."
We have a BLS that adds 75k phantom jobs a month based on a business "birth/death" model that is outdated. We have the only real measure of consumer activity, sales tax receipts to states continuing to plummet, but the media keeps focusing on same-store sales, which are only boosted due to numerous retailers closing. Foreclosures are still soaring, as are bankruptcies. The ADP report which looks at actual payroll data is showing that jobs in the private sector continue to be LOST, not gained. We have a Fed that has pasted over it all by doubling the money supply, and has pushed around tens of trillions over to banks. TARP is actually small compared to the mountain of cash the Fed has printed up and used to "Monetize" bank debt i.e. relieve them of all their bad paper.
We have the biggest transfer of wealth from the bottom to the top in world history under Obama, the lives of real people going down the drain, and a media that keeps telling us not to believe what we actually experience in our lives, believe the garbage from their Green Shoot Pump Machine.
This is all coming to together to slow-boil the nation.
. I read that states are forced each year to reset unemployment taxes on business, and since unemployment funds are exhausted, these taxes in some cases will go up 10 fold. So business will now lay off even more or cut wages.
From every angle this thing is looked at, it's a Death Spiral.
Death Spirals can be halted in their tracks, but it requires the one thing that Modern Day Financial and Political Nobility will not allow to happen: Let the people off the hook.
Trillions in credit card balances, mortgage and refinance debt, consumer debt of all kinds must disappear. And as a nation, we must settle with China now for whatever terms we can get.
If the Nobility would let the people off the hook, we can clear the books and move on. But the Financial and Political Nobility are A1 sons of bitches, who have gotten fat from decades of Serfdom, and they refuse, stubbornly refuse to let the people off the hook, afraid their guts may shrink a bit.
The position of Chairman of the Federal Reserve does not violate the letter of the Constitution. But no position in the history of this country has ever done more harm to the Spirit of the Constitution.
One unelected person, with the single-handed ability to sink this country.
Alan Greenspan was fawned over by the financial elite as some sort of subtle sage. When he was never anything more than a fork-tonged rascal. And this rascal shrimp just about sunk us. One man, bending over backwards to insure that the economy blew up a housing and credit bubble so large, that when it burst the shock wave shattered our collective spleens. And now we're reaping the karmic benefits of years of idolatry heaped upon this little rascal, a man who not enough bad things can be said about. Whole websites are devoted to exposing the damage that man caused, and except for the ones that are anti Semitic hate sites - Peace be upon them.
And his successor, Bubble Blowing Ben Bernanke is just as bad. A man engineering a Generational Ponzi Scheme with the markets. Borrowing trillions from future generations in the form of TARP, so that with a wink and a nod, the banks are now laundering that TARP money into the markets through the back door.
The cabal is completed by the media elite, who have masturbated themselves into multiple green-shoot-gasms over it all, hoping to similarly arouse the public.
But the way it's going to explode again isn't even funny. And now, every left-leaning economist, and not a one predicted the bubble bursting to begin with, is saying the recession is over. When in fact it might be, but only because the depression is beginning. They were all wrong then, and they're all wrong now.
After the mess, after the coming food riots (which should begin around Christmas), after the people take to the streets and this crew in Washington has to be disassembled by the American people's bare hands - after all that, we can not allow this position of Chairman of the Federal Reserve to exist. Interest rates will have to be calculated by some formula that takes into account money supply, inflation, GDP, some sort of scientific guesstimate on what the correct rate should be. We need to take it out of the hands of these "subtle geniuses," and get these subtle geniuses forever out of our face. Because they are not geniuses at all, they are some of the most dangerous and damaging people this country has ever seen.
Flat screen TVs are the cocaine, China is the supplier and Walmart is the pusher.
If we start with the premise that every "real penny" in the economy theoretically traces itself back to some piece of production, then it is not rocket science to figure out that the producers will have all the real pennies. Manufacture a penny out of thin air, tracing itself back to only air, and that penny will become as useless as a Zimbabwean nickel.
And so we have the unholiest and unhealthiest alliance between two nations that we've seen since Hitler and Mussolini exchanged glow in the dark friendship rings.
Over the last decade, China produced like mad but it's citizens socked away 30% in savings. The US consumed like mad, socking away 0%. China is awash with real pennies. Like a good supplier, they then lent those pennies back to the hapless addicts. The addicts, having addictive personalities to begin with, then had a field day. Remember, these are real pennies, not fake pennies, so the addicts can essentially give them away for a time, and still have low interest rates and a decent valuation.
But the pennies have nowhere to go after a while, and sooner or later this structural imbalance must create a bubble in something. But what? Tulips? No, we already had the Great Tulip Crash of 1634 so we can't repeat that one:
Always disheartening to find out your crash has been taken. So, what new to crash? Hey .. how about a stock bubble! No, we already did that one idiot, several times!
Then the addicts, always in search of a new high, get a brilliant idea. Somewhere around year 2000 one very smart Ivy League educated addict blurts "Hey .. how about houses .. they've pretty much went up only with inflation since 1950 .. let's start having them go up 3, 4, 5 times faster than inflation .. and let's give mortgages to everyone .. in fact let's insure through regulation that this happens .. and then we can use the houses as ATM machines dispensing Chinese pennies!"
And so the addicts are off to the races. Loading their Chinese financed houses with Chinese made flat screen TVs.
And so now that the addicts have gone bust, what are the flabbergasted Chinese suppliers going to do? They could stop lending us real pennies, but then the addicts will start manufacturing fake pennies out of thin air, and Chinese debt will become worthless, as their real pennies would be indistinguishable from the fake.
Will they even try this "tough love?" That assumes they even love us to begin with, generally speaking the drug supplier has little love for his customers. The solution would be for China to start consuming it's own goods. Each nation should save at 10%, the rest should be consumption. Had we done this, Alan Greenspan, the former Keeper of The Cost of Chinese Pennies would not have been able to shower them all over us so cheaply.
