ZeroHedge

2012: The Year The BRIC Comes Crashing Down On Our Heads

Its All Downhill From Here

Have you been to the grocery store lately? I estimate that the cost of food has risen around 15 – 20% in a month or so. This doesn’t affect rich people at all, nor the comfortably numb, much… at least, yet.

But it will affect the 50% of Americans considered poor or in poverty.

The Baby Eaters don’t mind as I have pointed out here. This is just fresh, juicy morsels to them. But as Franz suggests in the comments here, they will eventually feel the same pain. Too bad it will be too late then. The thing that gets me, tho, about these supposedly “smart people” is that they can’t seem to understand how bad things really are. They tout small, ineffectual “offerings” that are meant to appease the masses, then scurry around to blame Cadillac Queens and the rest of us low-lifes and have not the integrity, wherewithal, or sanity to begin to see the lies for what they are… much less see the travesty about to set forth in America. They are too stupid to understand that they are next. Poor, ignorant bastards.

I want to offer the following video by Snordlehans, which is a take-off of a post done by Videorebel, considering information and inflation percentages from Zero Hedge. The synopsis of the Zero Hedge post is that most of us are about to take a scalping. We are about to see a dollar devaluation, one more obvious than what has been occurring right before our eyes, except the MSM won’t talk about it. We are talking about wages going to half of what they are now. That’s bad enough, but when the rest of the world does what China, Russia and other BRIC nations are doing (ridding themselves of the US Dollar and the investments into our debt), what you see now (as hard as it is for most of us) is a piece of cake.

You want to know why I am on this hell-bent directive to address Paul’s rhetoric? because the more I look into the man, the more I see him being the “Savior” that will actually be “The One” to implement the worst of what is coming. Sure, Obama is a murderer and is bad. But what would be worse is a person whose entire life has been one of this ideological Disney Land… a magical kingdom where everyone has a job… corporations are our friend… rich people care for the indigent and poor…. and there is no sickness… no poor… and everyone is healthy, wealthy and wise.

You know: Never Never Land.

It’s not like this wasn’t seen by some of us. It has been going on in open secrets for a while. I have written about it many times.

Prepare for what you are experiencing right now… but on steroids.

Extremely high costs for the essentials. Food, power, housing… EVERYTHING.

If you are poor (like me or worse, for I am in some of the better shape than most people I know, but I hold no illusions of grandeur that I am immune to the obvious), plan the best you can for the food prices.

And by the way, this IS all orchestrated. Ben Bernanke was clear about what would take place and how. He laid it all out in a Nov 21, 2002 speech at the National Economists Club. He was clear about the road they would take. To understand what he was saying, you must understand that when the Fed buys Treasury Bills, it is monetizing the debt. He breaks it down into 5 points to “make sure deflation doesn’t happen”:

1. Lower interest rates to near zero (check)
2. Buy Securities to expand Federal balance sheet (check)
3. Increase money supply (check)
4. Buy foreign and domestic government debt (check)
5. Devalue the Dollar (Next)

The man told us what he was going to do and they have done it. This is all planned. They are destroying the dollar and your lives along with it. But now you have others than a dumb ole redneck telling you.

You know what their plan is. So, what are you going to do about it?

The Heretic presents The Visionary Horse 237 from Video Rebel’s Blog with: “Translating Zero Hedge: Your Wages Will Be Cut In Half” at; http://vidrebel.wordpress.com/2012/01/19/translating-zero-hedge-your-wages-wi…

Yesterday Zero Hedge ran a story that most people will never see or really understand. Zero Hedge reported that the Russians have sold off half of their US Treasury bonds over the past year. China has been dumping their dollar holdings too but still have over a trillion dollars left. Other foreigners have been dumping their dollars too. The current US inflation rate is 12%. Ben Bernanke has been creating trillions of dollars to bail out banks in Europe, to buy worthless securities from US banks and to fund the US debt. That will accelerate inflation. Inflation will go from 12% to 15% and then 20% in less than a year. The media will no longer be able to repeat the lie that the inflation rate is only 3 1/2%. Inflation will become an issue in the 2012 races for congress, Senate and the presidency.

Accelerating inflation will force people overseas to dump any dollars they receive for selling Americans food, clothes, electronics, cars, oil and other raw materials as soon the transaction is completed. This phenomenon is called an increase in the velocity of money. It is a sign your economy is transitioning from an inconveniently high rate of inflation to hyperinflation. The US dollar is an international reserve currency which means that if France wants to buy food from Brazil they will likely have to use US dollars to make that transaction. In colonial America the colonists had to earn British pounds or gold to buy something from overseas. Michael Hudson in his book Super Imperialism described how the US was funding its wars by inflating the supply of currency used to settle trade. Since WW II we have been getting real goods like cars and clothes from foreigners in exchange for increasingly worthless paper. When Hudson explained this to the Pentagon, a general said, “Wow. We are ripping people off.”

I would define hyperinflation as beginning at 25% for an international reserve currency like the dollar. That is why when inflation surged in the latter part of the Carter presidency (1979-1980) Chairman of the Federal Reserve Paul Volcker raised interest rates. Home mortgages went to 15 1/2%. Ben Bernanke cannot raise interest rates today. His only option would be to devalue the dollar which is what he said he would do in that now infamous speech he made in Washington DC on 11-21-2002.

That means after the 2012 elections the Russians, the Chinese, Iran, Venezuela plus their clients states and a few other nations can and will force a devaluation of the dollar by refusing to accept Federal Reserve Notes in international trade. If Americans balk, China just has to dump a hundred billion dollars and buy commodities driving the price of food out of the reach of WalMart shoppers. Of course I realize the Chinese will just be doing what the bankers want them to do.

An international conference will be held at which the dollar will be devalued by about 40% as predicted by Bernanke. This will complete that 50% pay cut I have been predicting.

The Chinese will have dumped most of their dollars before the conference so that their economy will not be harmed by a dollar devaluation. If Americans can’t afford to buy Chinese products, China will just sell them to people whose currencies were revalued upwards.

I would suggest you buy storable food, silver coins (not collectibles) and household items that will just increase in cost.

Of course this was all planned long ago by the bankers. I will conclude with this quote from a previous essay:

The Fundamental Fact of Your Existence as a modern man or woman is that the bankers of New York and London want to reduce you to Debt Slavery.

Accept that fact and move on to the solution.

And I also said:

That is their plan for you.

What is your plan for them?

Funny Money Is The Only Thing That Keeps the US Afloat (Well, That, And Nukes)

All you have to do is use the search block on the left for the term “Reserve Currency” to see I have been harping for years that this is the only reason we are still able to dominate the rest of the world. Sure, we have a dominate military and we tear down countries that decide to buck that system. But, much of the rest of the world is now saying “No More!”

(And good for them)

In this edition of On the Edge, Max Keiser interviews Dr, Paul Craig Roberts from Georgia who is an American economist, columnist for Creators Syndicate, former Assistant Secretary of the Treasury in Reagan Administration and an editor of the Wall Street Journal.

Global financial crisis-On the Edge with Max Keiser-05-20-2011-(Part1)

Global financial crisis-On the Edge with Max Keiser-05-20-2011-(Part2)

To be very specific, in Nov of last year, I wrote about this thing, suggesting it was coming and that people should be prepared. I referenced a July 6, 2009 post I called, “Prepare Yourselves For The Dollar To Crash And Burn” and quoted myself:

The indicators have been around for a while (and I am sure that kelso can give specifics), but suffice it to say that when the big players in the world begin to sell off their Dollar investments and force the world into some other currency for trade, we will not be prepared for the devastation that will follow. We have basically destroyed our manufacturing in the US and have become so heavily military focused that the knee-jerk reaction will be for Americans to try and find work in a missile factory, et al. Or building ships (the largest employer in Mississippi is military, as I understand it)…

…We already know that China and Russia are pushing for the same.

But now we have India, who is a huge trading ally (and military ally), questioning the US Dollar Dominance:

I also referenced a Sept 2009 post where I wrote the following:

The Dollar value thingy means so little to me personally because I don’t have any to worry about. But as a nation, we better be very concerned about what the next steps are after Iran drops the Dollar. It is only a matter of time before China, Russia and, yes, even Europe dumps it, as well.

It will be that moment that the true nightmare begins in this country. Why? Because we are unable to produce our way out of it since we have lost so much of our manufacturing base.

And then I asked:

What if Japan, China, Russia, Iran (and any host of other Asian or Middle Eastern countries) say, “We have had enough of America’s bullying and world domination.”? What if these countries decide that America IS too big and that she needs to be taken down a notch (financially or militarily)? Please do not think that American Exceptional-ism will save our collective asses. It won’t.

Then in Feb of 2010, I wrote (in pondering how we might be taken down financially and potentially, militarily):

I have been warning about the consequences of the status quo and have said time and time again, we are on the precipice of disaster…

…Sure, there are many variables, such as how will our military react or what false flag event can they muster to take us into war with China (and Russia, Iran and Venezuela, cause they will ban together to fight us… mark my words).

In lieu of that last statement, you need to see THIS. Hell, these liars will pull out some of the most unbelievable crap just to try and make sure the Sheople will follow along, waving their Chinese made flags and screaming to kill the Persians.

Basically, we will continue to bully the smaller countries who give us the finger (like Iraq, who was dumping the petro-dollar) and we will push the buttons of more powerful countries (like Pakistan). In doing so, we are poking the dragon in the eye, for we are forcing their hand due to their strategic partnerships with those countries (including Libya, who, just coincidentally, was about to dump the dollar and use a gold-backed Dinar AND was determined to get most of Africa to join them).

Most of the people I know in real life are clueless about the significance of this and still believe that we are “spreading Democracy”, but when you focus on the real issues about our waning hegemony, you must be able to see what is really going on. Then you must do anything you can to be ready for the inevitable all-out war that we are obviously instigating on many fronts. When it happens (and I know it is like watching a slow speed landslide), it will horrendous for those unprepared:

h/t Max Keiser

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All posts are opinions meant to foster comment, reporting, teaching & study under the “fair use doctrine” in Sec. 107 of U.S. Code Title 17. No statement of fact is made or should be implied. Ads appearing on this blog are solely the product of the advertiser and do not necessarily reflect the opinions of BuehlahMan’s Revolt or WordPress.com

The Mandate: Savage Austerity While Inflation Skyrockets

I think it is pretty obvious what is about to occur in this country. The unconscious American public is about to embark on massive changes to their social structure and welfare. We have basically fallen into the prescribed “sides” of the issues they want us divided into and have swallowed the bait and the hook is set.

Us “lefties” and you “righties” (or vice versa, whichever side you think we belong will suffice, for in reality it all means nothing) will go to the polls next Tuesday and we will vote for the lesser of two evils (AGAIN). The Republicans have hijacked the Tea Party making it nothing more than the Corporate Republican scalawags and you people have totally dumped the ideology that made you attractive to real patriots who are trying to change the system. How you could allow it is beyond me, but you did it. You let those fools co-opt you into becoming the same old Corporately fed, Zionist fawning, Imperial backing Republican Party that Dr Paul speaks AGAINST (but sadly won’t leave, making him moot, as well).

Then we have that other side of “Socialists” (yeah, right) that back a Kenyan infiltrator (lol) who is nothing but an extension of the last asshole that held that position. You forgot all your bitches about illegal wars, about torture, about loss of liberty and have swallowed the Dem Party storyline of “at least we aren’t Bush” (even tho nothing of any substance has changed).

You people keep us in the never-ending ping-pong game of  lesser evils, all-the-while never figuring out that evil is evil. Period. I live amongst the most gullible lot of nincompoops, if this is the best you can do.

As for me, if and when I go into any voting booth, I will write in…

NONE OF THE ABOVE

…if confronted with an R or D choice.

Of course, the sycophants from the left will say, “But that is a vote for the Republicans” and the righty sycophants will say, “You are voting for a Democrat.” But that is what ignorant sycophants do. They conveniently forget how we got to where we are and that these fools they follow and idolize are simply two sides of the same tainted coin.

I haven’t forgotten:

I remember it vividly, whereas the sycophantic rightys can’t seem to muster two brain cells together to recall the 8 years previous to the latest disaster POTUS administration. For God’s sakes, you are flirting with that idiot, Newt. WTF? Have you no shame?

I am not endorsing the D’s by putting up that video. Like I said, I’ll not vote for either, ever again.

You see, I haven’t forgotten the lies the D’s told us all to get control of Congress and the POTUS-ship. I haven’t forgotten all the outrage of the wars from “the left” which mysteriously disappeared after electing your favorite PARTY CLOWNs. I haven’t forgotten how angry you were with illegal wars, but how quickly you embraced them when the Savior was elected. I haven’t forgotten your idols that bitched and moaned about our military forays in the ME, just to have them rally for the sanity of MORE war and murder.

You see, we are too far gone. There really is nothing more that someone like me can do to spread any sanity… to try to educate you as to what the hell you are getting US in to.

But I do want to make a prediction. I will predict that by your playing their games by their rules, you will give the Republicans a massive victory next week. Enough to change the majority makeup of the House. Not by much, but enough. Enough for what, you ask?

Enough for them to claim they have a mandate from the people of America.

This mandate will entail savage austerity, according to Zerohedge:

And, it is coming soon to America.

In the US, the intensity of the Austerity-For-Workers program will depend partially on the size of Republican gains in the November 2 mid-term elections. More seats going Republican—particularly the loss of the House—means more momentum for attacking working families’ social safety net.

What does this mean to poor rednecks, like myself? It means that IF you think you will get any Unemployment benefit extensions, forget it. Those 99%ers you have read about are about to become 24%ers or a bit more. How about that pension you acquired via hard work? How would you feel if the Gubment took it and reallocated it in Gubment (worthless) Bonds and “promised” you that you will get your money, but on their timeline? What if this austerity includes remaking the Social Security System, radically cutting benefits that are already far underfunded for normal life in America? What if that Medicare that you count on to keep you alive is stripped down to nothing? What if this austerity causes even more job losses in America and that we will NEVER recover the ones already lost?

We are about to embark upon the hardest times of your life (unless you are the mega-wealthy). Our elected officials are about to strip us of social programs that we count on and we will be left to fend for ourselves or die.

Charlie McGrath has one of the best run-downs of what is about to happen that I have seen. Well worth the watch, if you haven’t seen it yet:

Simultaneously, we are about to see inflation jump like never before. It is already happening, as I write this, but the real storm is a month or so away. As one example, College Tuition is going up again. But everything else will, as well. Especially food.

From CNBC:

Food Prices Expected To Rise Sharply

Corn is up 45 percent the last three months. We haven’t seen cotton prices this high since after the Civil War. Soybeans are up. Oil is up. Metals are up. So are coffee and cocoa.In this era of massive liquidity, everything is up, except for food prices—specifically processed food (made from many of the same commodities and other ingredients whose prices have risen).

According to the USDA, that is going to change. In its most recent CPI report for food, the USDA reported that prices are expected to rise in 2011.

For all food, prices are expected to rise two to three percent, which is double the levels of 2010. Meat prices are expected to rise up to 3.5 percent, and dairy 5.5 percent.

And it is a global phenomena (h/t Guardian UK):

Global food crisis forecast as prices reach record highs

Another warning is that crime is on the rise in America and will continue to do so as people get hungry. The Economic Collapse Blog has a list of 12 Statistics That Make You Wonder What Is Happening In America

#1 The murder rate in New York City has increased more than 15 percent in 2010, and the number of rapes has shot up from 943 in 2009 to 1075 so far this year.

#2 In the city of Detroit, crime has gotten so bad and the citizens are so frustrated by the lack of police assistance that they have resorted to forming their own organizations to fight back.  One group, known as “Detroit 300″, was formed after a 90-year-old woman on Detroit’s northwest side was brutally raped in August.

#3 Crime in Miami Beach was up almost 11 percent during the first half of 2010.

#4 The murder rate in Tempe, Arizona is now the highest it has been in 10 years.

#5 Shoplifting is completely and totally out of control.  According to the National Association of Shoplifting Prevention, every single day Americans steal more than $35 million worth of goods from retail stores.

#6 Today, there are approximately 400,00 registered sex offenders in the United States.

#7 U.S. authorities claim that there are now over 1 million members of criminal gangs operating inside the United States. According to federal statistics, these 1 million gang members are responsible for up to 80% of the violent crimes committed in the U.S. each year.

#8 The median age of the victims of imprisoned sex offenders in the United States is 13 years old.

#9 The crime rate in the San Diego school system is escalating out of control. The following is what San Diego School Police Chief Don Braun recently told the press about the current situation….

“Violent crime in schools has risen 31 percent. Property crime has risen 12 percent. Weapons violations (have gone up) almost 8 percent.”

#1053 percent of all investigated burglaries in the states of California, New Mexico, Nevada, Arizona and Texas are perpetrated by illegal aliens.

#11 Law enforcement officials estimate that about 600,000 Americans and 65,000 Canadians are trading dirty child pictures online.  They also say that the total profit from creating and trading these images is approximately two to three billion dollars every year.

#12 Each year, one out of every five people in the U.S. is victimized by crime.  No other nation on the planet has a rate that is higher.

I also read from my home town weekly paper that a very small town in my home county has a Chief of police who is apologizing to residents over the weekly road blocks that they set up in town every Sunday (now becoming renowned for it). As I read thru the list of “arrests” it couldn’t be more clear what they are going after… weed smokers. The vast majority of the arrests were drug related and the biggest proportion, by far, was for marijuana. The fine for less than 1 ounce (1st offense in MS) is about $1,000. After everything is said, done and paid for, it might cost a person $1800 to handle it in court. Fine and dandy, except for the fact that it costs the country $2800 per case.

Not only are these people arresting young folks (ruining their lives) over a weed, they are losing money EVERY time they do it. And the tax payer yawns and scratches his hinder parts and turns on American Idol while sipping his illegal beer in that dry county.

Of course, nothing new on all the break ins and thefts. But never mind that. We stopped those hippies from smoking a little weed.

WTF?

Look. I know I am experiencing my own hardships (no job, no prospect for a job), but I can’t bury my head. No matter how hard it gets, I believe I will be able to take care of my family utilizing my network I have been setting up for a couple of years (you know who you are). I am not totally prepared, but I have most of what we need to survive. So, I am not just some crazy person freaked out over my own circumstances. This shit is real, people. It is happening right before our eyes and we better be ready for it when it comes… for IT IS COMING.

Let me share with you this list of 30 Reasons Why People Should Be Getting Really Nervous About The State of The U.S. Economy (again from the Economic Collapse blog):

#1 Corporate insiders are selling off stock at a blinding pace and are looking for the exits.  Alan Newman, the editor of the Crosscurrents newsletter, examined a number of the top performing stocks in the market including Google, Apple and Target and found that the ratio of corporate insider stock sold to corporate insider stock purchased over the last six months for those companies was 3,177 to 1.  At the group of firms that Newman looked at, corporate insiders had purchased 38,000 shares of stock over the last six months and yet had sold off over 120 million shares.

#2 Analysts at both Bank of America and Goldman Sachs both believe that the U.S. Federal Reserve is going to initiate a new round of quantitative easing in November.  It does not take a genius to figure out that this is very likely to push up inflation and have very serious consequences for the U.S. dollar.

#3 Economists at Goldman Sachs are projecting that the Fed will have to purchase at least $4 trillion in assets during this next round of quantitative easing to get the U.S. economy moving in a positive direction once again.

#4 In the United States today, there are 5,057 janitors with Ph.D.’s, other doctorates, or professional degrees.

#5 Investors have very little faith in the U.S. dollar (and in paper currencies in general) at this point.  Precious metals are soaring to obscene heights.  The price of gold has increased more than 20 percent in 2010.  The price of silver has skyrocketed about 40 percent this year.  These are not signs that indicate that the U.S. financial system is stable.

#6 Robin Griffiths, a technical strategist at Cazenove Capital, told CNBC on Monday that the U.S. dollar is in danger of becoming “toxic waste”.

#7 In the United States today, 317,000 waiters and waitresses have college degrees.

#8 U.S. lending institutions repossessed an all-time record total of 102,134 homes in the month of September.  That was the first time that home repossessions in the U.S. had ever exceeded the 100,000 mark during a single month.

#9 According to a Standard & Poor’s/Case-Shiller home price report that was released on Tuesday, single family home prices in the United States declined  for a second straight month in August.

#10 In the United States today, over 18,000 parking lot attendants have college degrees.

#11 During the months of August and September, the state of Nevada had an unemployment rate of 14.4 percent, which was the highest in the history of the state.  Not that the rest of the country is doing any better.  The state of California has become a complete and total economic disaster zone, and the city of Detroit, Michigan is literally dying.

#12 The “official” unemployment rate in the United States has been at nine and a half percent or above for 14 consecutive months.

#13 The number of people unemployed in the state of California is approximately equivalent to the populations of Nevada, New Hampshire and Vermont combined.

#14 According to the president of the Federal Reserve Bank of New York, there are approximately 3 million more vacant housing units than usual in the United States.

#15 China has reduced the export quota on rare earth elements for the second half of 2010 by 72%, thus strengthening their position in the world economy even more.  Rare earth elements are absolutely crucial to the manufacture of a vast array of high technology products, and now even more of them will have to be made in China.

#16 In 1985, the U.S. trade deficit with China was 6 million dollarsfor the entire year.  In the month of August alone, the U.S. trade deficit with China was over 28 billion dollars.

#17 Wheat, corn and other staples are absolutely soaring in price on world markets.  These higher food prices are going to hit U.S. consumers hard.

#18 In 2007, 3 U.S. banks failed.  In 2008, 25 U.S. banks failed.  In 2009, 140 U.S. banks failed.  Last Friday, it was announced that 139 U.S. banks have failed so far this year and it is not even the end of October yet.

#19 Total student loan debt in the United States is climbing at a rate of approximately $2,853.88 per second.

#20 Back in 1980, the United States imported approximately 37 percent of  the oil that we use.  Now we import nearly 60 percent of the oil that we use.

#21 According to an analysis by the Congressional Joint Committee on Taxation, the health care reform legislation that Congress didn’t read but passed into law anyway will generate $409.2 billion in additional taxes on the American people by the year 2019.

#22 Median household income in the U.S. declined from $51,726 in 2008 to $50,221 in 2009.  That was the second yearly decline in a row.

#23 One out of every six Americans is now enrolled in a government anti-poverty program, and yet the number of Americans signing up for food stamps and other social programs just continues to set new all-time records month after month after month.

#24 The number of Americans working part-time jobs “for economic reasons” is now the highest it has been in at least five decades.

#25 American 15-year-olds do not even rank in the top half of all advanced nations when it comes to math or science literacy.

#26 According to a recent poll conducted by CNBC, 92 percent of Americans believe that the performance of the U.S. economy is either “fair” or “poor”.

#27 After analyzing Congressional Budget Office data, Boston University economics professor Laurence J. Kotlikoff came to the conclusion that the U.S. government is now facing a “fiscal gap” of $202 trillion dollars.

#28 A trillion $10 bills, if they were taped end to end, would wrap around the earth more than 380 times.  That amount of money would still not be enough to pay off the U.S. national debt.

#29 According to the U.S. Treasury Department, the U.S. national debt is rapidly closing in on 14 trillion dollars and and will climb to an estimated $19.6 trillion by 2015.

#30 At our current pace, the Congressional Budget Office is projecting that U.S. government public debt will hit 716 percent of GDP by the year 2080.

You want to know what doesn’t stop? Military Spending and the expansion of the Empire. We got all the money in the world for murder and mayhem.

You May Not Have a Job, But We’re Getting a $12.6 Billion Military Base on Guam That Nobody Wants

All posts are opinions meant to foster comment, reporting, teaching & study under the “fair use doctrine” in Sec. 107 of U.S. Code Title 17. No statement of fact is made or should be implied. Ads appearing on this blog are solely the product of the advertiser and do not necessarily reflect the opinions of BuehlahMan’s Revolt or WordPress.com

Times Are “Unusually Uncertain”

Give that man a Kewpie Doll for his acute observations.

I have been making some similar observations, but I don’t really understand monetary policy (not in the light that these lying criminals do, anyway). One way to know that the federal reserve is a damned liar is to simply go to their website and notice that it is a .gov (as opposed to a .com). The impression to most would be that they are actually a government entity (and almost every word uttered by these criminals is made to lead you to believe this). But, of course, the Fed is not a part of the US government. It is a private entity. They, however, inform us that:

… the Federal Reserve can be more accurately described as “independent within the government.”

Now forget the fact that the Founding Fathers were adamantly against such an entity (they were against almost everything that our current government does, as a matter of fact, especially relating to wars and alliances with criminal thugs like Israel and Saudi Arabia and Egypt and… Name the kowtowing, evil and complicit country you so desire). Realize that since its inception their supposed goal was to:

provide the nation with a safer, more flexible, and more stable monetary and financial system.

Do I have to point out what a booming success this has been?

But they go on to say things have changed since its inception (just no clues to exactly what these were):

Over the years, its role has evolved and expanded.

I have to agree, don’t you? It has evolved and expanded to a point that it has basically killed America. So, thank you, Ben Bernanke, Alan Greenspan and all you other Jews that somehow, miraculously, have now been ordained to run this country in the ground.

(Oh, so you took a little offense to the Jews comment? Then, simply start Googling the names of the people in charge, people who are advising Obama, as well, and tell me how many Jew names are found.)

Zionism is evidently running this country at every level. If you cannot see this, then you are sadly fucked up.

We won’t come out of this like Japan is trying to. It is impossible and the reason why is that they had manufacturing of TV’s and Cars. Tell me about our manufacturing base and how it will save us from the doom of hyperinflation.

I want to say just one more thing about the title of this post: if Ben Bernanke is saying shit like this, I guarantee you that things are far worse than we can imagine.

Can you not FEEL the Perfect Storm in the air? Don’t you sense something horrible about to occur? Am I just some conspiracy nutcase who can’t stop his rambling imagination? Am I making this shit up, or what?

I am asking you folks that read here to let me know how you feel about where this is headed. Many read and don’t comment (and maybe simply come here to get a little laugh at my crazy expense). I don’t mind, but if this is the case (no_slapzz), chime in and explain why I am off base in my fears and suspicions. Explain to me and others how this scenario isn’t what I claim. I am ALL EARS.

Until then, read the entire interview with John Williams that Jay Midnyte at Thoughtswirl shared with our friend Kelso’s Nuts (I happened to see it and it really struck a chord with me). I have taken a couple of the main points and assembled them below, but the entire interview is a good read. Basically, we are in an extended Recession (whether or not the government wants to admit it or not) with no end in sight. People (consumers) aren’t spending money. They can’t… they don’t have any. what little they do happen to get extra, they try to save or spend it on necessities or preparations. The “stimulus” packages are only a slight band-aid barely stuck to a gaping jugular vein.

TER: Can the governments pull any more stimulus levers yet this year?

JW: Oh, I think they’ll try, but nothing much they can do will have anything other than short-term impact. If they write everyone a check, people go out and buy things. That would give the economy a quick boost but do nothing to change the underlying fundamentals or to correct the structural problems in this recession. Those are tied to the lack of robust growth in consumer income.

TER: So consumer income is a key factor.

JW: Absolutely. If you put in housing that’s related to the consumer, that’s three-quarters of the GDP. The average household is not staying ahead of inflation, and unless income grows faster than inflation, the economy won’t grow faster than inflation—and that means that GDP is not growing. Income sustains consumption. When income grows, consumption grows. The only way to have sustainable long-term economic growth is to have healthy growth in income. You can buy some short-term economic growth, though, without growth in income, through debt expansion, which is what Greenspan tried.

Most of the growth we’d seen in the last decade prior to this downturn was due to debt expansion. The debt structures have pretty much been put through the wringer and consumers are not expanding credit, generally because it’s not available to them. Absent debt expansion and/or significant growth in income, no way can the consumer expand personal consumption. You have to address employment, quality of jobs.

Maybe I’m just another dumbass redneck, but it seems quite evident to me that without returning the jobs, nothing will improve. How can it? How can Americans keep their quality of life (as degraded as it has become over the past couple of decades) without having good jobs? John will tell you that off-shoring the jobs is the biggest culprit and that the Greenspan reign brought that idiotic strategy into fruition. It has devastated our economy and way of life.

TER: You’re suggesting that problems with the quality of jobs, if not the quantity, goes back to Greenspan—before the recession kicked in.

JW: Yes. A lot of high-paying jobs have been lost to offshore competition, to U.S. companies moving facilities offshore and to outsourcing offshore. That’s been the primary driver of declining household income.

But who profits? Who gets the better end of the shit tainted stick?

Let me answer this way: It Ain’t You, Redneck. You get the shit end. I promise.

So what is next, you ask? And maybe “when” will it happen?

TER: Clearly you see us spiraling out of control.

JW: We’ve been talking about an economic recession, but we are headed for something far worse. I define a depression as a 10% peak-to-trough contraction in the economy. In terms of the broad economy, we’re not down 10% in GDP yet. So while we’re not formally in depression, we’re certainly seeing it in a number of indicators and I think we’ll be in a depression, with GDP down 10%, in the near future.

A contraction greater than 25% peak-to-trough puts you in a great depression. That is what I envision, but we’ll be taken there by hyperinflation and a resultant cessation of normal commerce.

You can rest assured that this “government entity” will try to add more stimulus money into the system. They will do anything they can to avoid the systemic breakdown of our monetary system (at least they will give the illusion that they are trying to avoid it). We will see even more money being printed and we will see the same effects from it… maybe a few roads and cute little sweet deals for the Congress to make nice with their brainwashed constituents. Shoot, we might even get ANOTHER Census (Whoopee!).

But there will NOT be a real change in policy. They will continue to off shore the jobs.

Why?

Because this is not about America and keeping this country safe and strong. This is about bringing us DOWN to the level of the rest of the world. Wages, ideologies, banking, military, etc. Everything is being forced into their new world order.

One can believe that The Fed is doing everything they can to fix this shit that they created. But, me and a few others are finally understanding that this gracious, wonderful Big Brother is really an evil, murderous and thieving bastard intent on controlling the entire planet (and every living soul there).

This is what we have to look forward to. So, as I have been pounding this dead horse over and over to get ready, maybe John’s words will hold some credence with you:

TER: How do we get through this, John?

JW: If there’s no solution for the system—and I don’t see one; I think it just has to run its course—there still is good news. We as individuals have ways of protecting ourselves, our families, our friends, our businesses—whatever is important to us. To do that we have to preserve the value of our wealth and assets in order to ride out the storm. As terrible as it will be, it will end. A time will come when things become self-righting and the people who have been able to survive will be able to do some extraordinary things.

TER: And what do you advocate in terms of individuals preserving wealth and assets?

JW: Hold some gold, silver, precious metals. I’m talking physical possession. Preferably coins because coins, sovereign coins, are recognized as such. They don’t have liquidity issues. Having some assets outside the U.S., and certainly some assets outside the U.S. dollar, is a good thing. I like the Australian dollar, the Canadian dollar, the Swiss franc in particular. They won’t suffer the same hyperinflation in Australia, Canada and Switzerland as we do in the U.S., so those currencies will tend to act as ways of preserving wealth. Over time real estate is a traditional store of wealth, but it’s not portable and sometimes it’s not liquid.

If I’m right about what’s going to unfold, a significant shift in government is possible; suppose the government moved so far to the left where maybe private ownership of property was not allowed. Having a lot of assets in real estate under those circumstances might not be so good. I think generally real estate is a good bet but you also have to consider the risks. Use common sense. Think through different things that could happen.

Most importantly, build up a store of supplies, more than you would normally consume over a couple of months, particularly food and water, canned goods. Having those goods can save your life in a number of ways. You’d have food to eat, and if you have extra you can use it to barter. I met a guy who’d been through hyperinflation and found for purposes of the barter system those airline-size bottles of high-quality scotch proved quite valuable. Buy things that you would otherwise consume and rotate your inventory. Don’t go out buying all sorts of things you’ll never use. Keep what makes sense to you and your circumstances. Make sure you have things that are stable. Not too perishable.

I had a professor at Dartmouth who’d lived for a while in a hyperinflationary environment that devolved into a barter system. He told a story about how his father had traded his shirt for a can of sardines. He decided to eat the sardines, which was a mistake because they had gone bad. But nonetheless that can of sardines had taken on monetary value. So when you look to trade things you want to be careful what you’re doing.

Ben, these times really aren’t all that uncertain after all. I am quite “certain” that you and the rest of the criminal cabal is going to screw me and the rest of America.

Of this I am “Unusually Certain”.

That is why I am doing these steps that John lists (and was before I ever even heard of him). I advise you to do the same. We are short timers in America.

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What Is The Motive For Killing The Gulf?

This isn’t “just happening”. This has the smell of purpose. But what could possibly be the motive?

BP had no contingency plans for emergency. On the contrary: they knew where it would go, that ecology would never recover.

According to Karen Dalton Beninato’s blog post at neworleans.com, there are three main conclusions that point to the fact that BP knew how bad this was:

1) In the worst case discharge scenario (on chart below), an oil leak was expected to come ashore with highest probability in Plaquemines Parish within 30 days

2) Spokespersons were advised never to assure the public that an ecosystem would be back to normal after the worst case scenario, which we are now living through.

3) Corexit oil dispersant toxicity has not been tested on ecosystems, according to the Oil Spill Response Plan. “Ecotoxilogical effects: No toxicity studies have been conducted on this product.”

But, “why”? Why let it keep spreading to new regions of the gulf? Or worse (as Dr Doug and I were discussing today) what happens when some tropical storm or hurricane picks this stuff up and dumps it on us? Into our water table? Killing our plants and livestock? Is it possible?

… the 2010 Atlantic Hurricane Season officially began on June 1. This season is predicted to be especially active with the National Oceanic and Atmospheric Administration (NOAA) expecting up to 23 tropical storms, up to 14 of which may become hurricanes. Strong storms could sweep the toxic mixture of oil and chemical dispersants from the Gulf far inland, contaminating rivers, wildlife and even residential areas that might have escaped exposure under other circumstances.

The experts are already frightened that this is the end of the fishing industry:

Because of the increasing threat posed to the environment by spreading oil, NOAA was forced to expand the area covered by their fishing ban for three consecutive days beginning May 31. As it stands, 37 percent of the Gulf of Mexico, or 88,522 square miles, is now closed to fishing. Large areas off the coast of Louisiana, Mississippi and Alabama are shut down. Federal waters near the Florida panhandle have also been closed.

“Fishing communities are suffering a worst case scenario of total collapse,” Carl Safina, an ecologist with Blue Ocean Institute, told the World Socialist Web Site. “I don’t see how this could be temporary. The basis of their livelihood is being destroyed.”

There has been one series of bad solutions. In the last case, they had to increase the flow by 20% to try the Top Hat. Ed shows us well that is working out for us. They just can’t seem to stop it. The scary thing?

Oil Might Keep Leaking for Months After Relief Wells are Drilled

Many technical experts have said that the first attempts to complete the relief well in August could miss entirely on the first try, as it is difficult to intersect the blown-out well at the precise location and angle needed.

(h/t Washington’s Blog)

Is it a done deal or not? Dr Doug has a friend who said this should have been stopped long ago (I have had oil folk tell me the same thing).

Am I just a suspicious bastard or is it a fact that everything seems so purposeful? It seems to me that people knew something was about to happen. Jay at ThoughtSwirl explains that there is Evidence Supporting Foreknowledge Of BP Oil Spill “Accident”

Goldman Sachs sold $250 million worth of BP stock in the first quarter of this year.

BP chief Tony Hayward sold £1.4 (about $1.68 million) worth of BP shares weeks before the oil spill.

And Haliburton bought a company that specializes in dealing with WELL FIRES and BLOWOUTS in APRIL

Since the spill the BP stock is taking a beating (pretty convenient for ole Tony, Haliburton AND GS). As a matter of fact, there are a “A Series Of Lucky Coincidences Involving Goldman Sachs And BP plc“

Earlier, when observing the US AG disclosure of a civil and criminal investigation into BP plc, we noted in passing that BP’s former Chairman, Peter Sutherland, who left the firm is a Chairman of Goldman Sachs International. Mr. Sutherland holds some other interesting titles, including a position on the Trilateral Commission, he was a chairman of the London School of Economics in 2008, he is a UN special representative for migration and development; he was the founding director-general of the World Trade Organisation, he had previously served as director general of GATT since July 1993 and was instrumental in concluding the Uruguay GATT Round Negotiations. Needless to say, we focused on the Goldman relationship. When digging deeper, we uncovered some amusing correlations, most notably between the BP plc sellside ratings by Goldman BP analyst Michelle della Vigna and the Goldman Sachs Asset Management holdings of BP plc.

h/t ZeroHedge

I can say this… this is raw Capitalism in action. No regulation, winks and nods towards environmental safety concerns, and no matter what,  PAY THOSE DIVIDENDS while you got ‘em.

Can you imagine the share owners as they laugh, knowing that at their Texas City facility, they just released 500,000 pounds of emissions, including more than 400 pounds of benzene for 40 consecutive days?

That’s a hoot to celebrate over with a bath full of cash, huh?

(h/t Infowars)

Oh, and did you know that Haley Barbour (Governor of Mississippi) is a tool?

So the tool needs to be asked, why would “Defense Secretary Robert Gates grant YOUR request to send troops of up to 6,000 by Louisiana, 3,000 by Alabama, 2,500 by Florida and 6,000 by Mississippi“?

Funny thing. I see those numbers (6,000; which is EQUAL to Louisiana’s request) and I think that Jowls must be lying out his ass.

And The Lotus Drops

I have been warning about this impending economic fallback (also discussed at ZeroHedge) on this blog here and here. This thought process is the very reason why I keep warning people to prepare with food and protection, for when it comes, I believe it will come with the fury of an avalanche. You can bet China isn’t alone in this strategy and that we will soon hear more announcements from Russia, Brazil and other countries.

China To Sell US Securities

Something big is happening in China which could have a huge effect on the American economy.

On Tuesday, Reuters reported:

Senior Chinese military officers have proposed that their country … possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan.

The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested

It appears that this time China’s posturing is for real. Following up on our earlier post that Chinese military officials want to “punish” America by selling Treasuries, Asia Times Online is reporting that an explicit directive by the Chinese government has notified reserve managers to sell all risky US assets, including asset backed and corporates, and just hold on to explicitly guaranteed Treasuries and Agency debt. And from following TIC data we know that China’s enthusiasm for MBS/Agencies over the past year has been matched solely by that of one Bill Gross.

From Asia Times:

Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks.

I don’t know what REAL economists and experts in the field think about this, but, to me, this is one hell-uv-a scary situation. If they want to put the death squeeze on us, in conjunction with just a few critically important allies, we are screwed. With the maniacs we have in charge, there is but one solution: our Descent Into Barbarism.

Widespread poverty and human misery is now seen on a massive scale in the so-called developed world. Some 40 million Americans, for example, are subsisting on food stamps. The distinction between “developed” and “developing” economies (always a myth anyway) is blurred. The ranks of the world’s long-suffering poor are swelled with dispossessed blue and white-collar workers and their families from across the US and Europe. Together more than ever, they stand shut out from those gated havens of obscene wealth for a global minority.

Similar historic junctures have been witnessed before when capitalism floundered from its inexorable tendency to make the rich richer and the poor poorer. Disturbingly, the release valve for the system and its bankruptcy has always been war. Death and destruction is the lender of last resort to an economic system that – despite itself – inevitably polarises wealth to an unworkable degree. The First and Second World Wars – claiming more than 70 million over a period of less than 10 years lives – were effectively the ultimate, grotesque bailouts.

In our time, war, it seems, has already begun. The US oligarchy and its NATO allies are waging a veritable war on the world: killing, disappearing and incarcerating millions of civilians in Iraq, Afghanistan and Pakistan – a war that is expanding into Yemen, Somalia and the rest of the Horn of Africa, with the militarisation of sea lanes and oceans (see Chossudovsky, Globalresearch.ca) and the setting up of “forward projecting” military and missile bases in every continent (see Rozoff, ditto). On top of ordinary poverty and misery, the world is truly seeing another historic descent into barbarism. Given this war-mongering dynamic, the growing US antagonism with Iran, Russia and China is far from an idle threat. It is the logical next step for a deeply illogical economic system.

If you read the next and final paragraph in that article at Global Research, you will see that the author holds hope for a diversion from the policy of war. But, in my opinion, I believe that the stage is being set for some final showdown.

Redneck or Peasant? What’s The Difference?

Jesus Jumpin’ Jehoshaphats and a Whole Bunch of “By-God’s”, Max Keiser just tore down a banking wienie:

h/t ZeroHedge