A friend sent me a message the other day that is right on:
LETTER to the EDITOR-- MINNEAPOLIS STAR TRIBUNE
Let's look at what we have learned from this election:
Twenty-one of 22 incumbent senators were re-elected, and 353 of 373 incumbent members of the House were re-elected.
The American people have re-elected 94 percent of the incumbents who were running for re-election to an institution that has an approval rating of about 9 percent.
This indicates, as an electorate, we are a nation of idiots.
Now I have friends from across the spectrum. I talk to everyone and try to understand people and get them to understand where I am coming from. I don't believe in Redneck World Wrestling Politics. I believe in studying issues and finding compromise where I can and moving forward in a constructive manner where I have disgreements with others. Rednecks don't do this. They draw corners and have a P***ing match and think they are accomplishing something by seeing who can P*** further. Nothing substantial ever happens. I am sick of that and those A-holes need to be drawn and quartered.
And like another friend articulates about the Democrats. The Democrats talk about the Republicans and Bush and we are like yeah uh-huh and besides the debt, deficit, impinging on our liberties, and getting us involved in two wars that there are apparently no ends to, they increased the ethanol subsidies to take care of their buddies in the Midwest and this caused corn prices to nearly quadruple in the last decade, they went along with the deregulation of Wall Street and its marriage to Washington, and they worked to offshore our working class jobs through NAFTA and GATT and a hundred other Free For All Trade Agreements.
Now let's talk about Obama, who said he was going to end the wars, instead we are looking to be headed into Syria soon and Iran right after that and more troops die in Afghanistan virtually every day.. ohh and Pakistan. We look at the issues with Wall Street, which is full scale corruption; and which seems to be getting worse, not better. Who have charges been brought against, but they'll fry some poor guy that can't afford their taxes. We look at problems with running up our debt, which I will go into further in a second.
They say No. No. No. Obama all good... Repubwicans all bad. I say B* S*.
And then there is the talk about the Fiscal Cliff.
Folks we have already gone over the Fiscal Cliff long ago. We could have dealt with this 4 1/2 years ago, but no one wanted to. We had time to reform, but no one could see, because they are Economic Idiots. It was going to be painful then, but it will be exponentially worse now. The National Debt has gone up from $10 trillion to $16.4 trillion in the last four years. That is a 64% increase in four years. In 2004 it was $7.4 trillion, which means that over the 4 year span (2004-2008) the deficit went up 35%, which still is horrible, but you can see the acceleration can't you?
So if the National Debt only went up 35% over the next four years, then it would be (16.4 x 1.35) = $22.1 trillion in 2016. If it increased at the current pace, then it would be (16.4 x 1.64) = $26.9 trillion in 4 years. If it increased at the accelerated pace (1.35 to 1.64) = ^1.99% pace, then it would be (16.4 x 1.99) = $32.6 trillion at the end of 2016. That means that we are going headlong towards oblivion.
There won't be some cataclysmic moment. It is going to be like a boiling frog. Slowly, but surely the costs of necessities are going to accelerate. I have shown it to you here on the Hound. Look at the prices in the grocery store. Maybe you are ignorant enough to not notice the way that they have repackaged the products. Nip an ounce here and add some filler there, yep that's the new American Economic system. The Ponzi economy leading to the Great American Ripoff.
I am tired of the Three Card Monte system. Everyone expects the world to shake when this all goes down. The dinosaur media at every level is in bed with the Government Incorporated. They get you all worked up about whatever the talking point of the day is, while the bureaucracy slides around to pick your pocket.
Everyone is worried about their taxes going up or their benefits getting cut, when they can't seem to grasp that the purchasing power of their money is worth less or worthless. $100 of goods today cost $74.44 in 2000... $17.51 in 1971, when we went off the Gold Standard... and $4.28 in 1913, when the Federal Reserve was created. And this is when looking at it through the Governments cooked book calculations, the Consumer Price Index produced for the Bureau of Labor. Other Calculators, such as Shadow Stats, show the 1971 number to be $4.98 and the 2000 number to be $33.88.
Your Standard of Living isn't being destroyed because it is being taxed away or Big Daddy Government isn't giving you enough. Your Standard of Living is being destroyed by the Federal Reserve, because the President and the Congress don't want to make the hard choices and they have their priorities out of whack. The President even seems to think it best to have no debt limit at all and he has chosen to let the banks be in charge of our money and the bank managers have naturally chosen to look out for their own self interests. The Federal Reserve is putting $40 billion dollars into the system every month by purchasing U.S. Treasury bonds, which allows the Treasury to create money. This money is injected into the banks through nearly ZERO % loans. The banks, now being Financial institutions instead of holding corporations, are going out and purchasing commodities through hedging and derivatives processes. Too many dollars chasing too few goods leads to (Supply and Demand) prices going up.
Your average politician doesn't feel guilty, because they don't understand this. They don't understand MONEY. They really only understand the money in their own bank account and they haven't a clue about yours, nor do they care... Can you vote yourself a raise? Are most of your meals subsidized or paid for? Is your healthcare paid for? Is your retirement set?
I do appreciate the President and his Economic team taking the ideas that have been discussed here on the Hound. 90% of the people in my community don't understand the significance of this News Source. At least the politicos pay it some attention. I see you ;)
I can't take the credit for "The Race to the Bottom" term that I talked about in April 2010, I heard Catherine Austin Fitts talking about it about 3 years ago; but the Hound was the first to coin the term "Middle-Out Economics," introduced here when the President only wanted to talk about the bottom up. I have discussed this since the inception of the Hound. I only wish that his regime would be interested in substantive processes to bring the economy back to equilibrium. Right now there is a war against the Middle Class. It is one thing to talk about jobs. What are you going to do to bring the jobs back to America? What are you going to do to level the Labor Price Parity Dynamic?
The problem is the Middle Class is asleep and frankly I am tired of going to them and trying to wake them up. It is a lot easier to sit back and wait for them to fall and then they wake up on their own and study what has been going on like I had to six years ago. Those who choose to find a way out will join us. Those looking to be bailed out will join the Empire of Rot.
Catherine Austin Fitts interview about Fiscal Cliff at Minute 39