SOMETHING’S GOT TO GIVE …
“The bubble is going to burst …”
We’ve been saying that for years … referring to the deepening impact of the federal government’s disastrous fiscal policies: Open-ended quantitative easing (a.k.a. money-printing), runaway deficit spending, unsustainable entitlement growth, rampant welfare statism, crony capitalist market manipulation and excessive taxation and regulation.
The precise methods may differ, but the end result is the same: Money from the American middle class and working poor (both current and future generations) is being stolen – pumped into bailouts, handouts and unnecessary bureaucracy. And that bureaucracy’s goal is becoming increasingly clear …
“Modifying the DNA of the capitalist system,” as one disgraced ex-Environmental Protection Agency (EPA) bureaucrat put it.
All of this is why we have a widening wealth gap, a shrinking workforce, anemic job growth and a dearth of innovation in this country.
But the center cannot hold forever. Eventually the people being robbed either wise up (and rise up) … or they go broke.
Either way, the pillaging cannot go on indefinitely …
So … should we mark last week on our calendars as the day the latest “great deflating” began? Are we entering the beginning of a new recession – the dreaded “double dip” from the Great Recession that began ravaging America in December 2007?
On Friday, the Dow Jones Industrial Average plunged 318 points – wrapping up the market’s worst week since November 2011. The NASDAQ and S&P 500 also took big hits on Friday, prompting investors to speculate as to whether this was the beginning of a long-awaited market “correction.”
Is it?
Maybe … maybe not.
One thing is certain, though: A storm is coming. A lot of paper assets are about to be incinerated. A lot of new wealth is about to evaporate. It may not happen this week, this month or even this year. But it is going to happen, and when it does get ready for the familiar “we’ve got to do something” refrain coming from our elected officials in Washington … the same clowns who bailed out the bad decision makers the last go-round.
Will their plan work again? Can it work again?
Or are we closing in on the point where decades of consequence aversion finally catches up to us as a society?
We’ll see …
60 comments
Nahhhh…gotta win those mid terms first…keep those presses running…but then again, if Dear Leader thinks his party may lose big in the mid-terms, he may just decide “to not waste a crisis”, and suspend those pesky mid-terms, because fundamental transformation demands it…Forward!
Dear Leader
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http://www.youtube.com/watch?v=epZxUhCE5l8
Typical GOP BS. Republicans have been fighting since 1980 to sell out the Middle Class to big business. Finally people are beginning to see these tired old arguments for what they truly are. Lies. Finally people are beginning to see the impact of trickle down economics and cutting the taxes of the richest of the rich and paying for it by cutting government programs that benefit middle class America. What are those results? A collapsing lifestyle for the average American and booming wealth for the new Robber Barons.
Please spare me this nonsense The reason we have anemic job growth, widening wealth disparity and a death of innovation, is because the Middle Class is out of steam. The richest of the rich have seriously injured them and the country is suffering with them. The GOP and their so called “conservative” allies have put Government on the auction block, to the highest bidder. The Koch Brothers, Howard Rich, and their ilk are out to shape government for their benefit and screw everyone else.
The want to take America back to where it was in the late 1800s, where rich men ran everything and everyone else begged for scraps from their table. They want to do this by slashing their taxes to the bone and paying for it by gutting social security, gutting Medicare and Medicaid, and programs designed to provide and education to the average citizen. In other words they are tired of our excess of democracy. Its time for people to know their place in the world once again.
My only hope is its not too late to put a stop to this crap. But between decisions like Citizens United equating free speech and money, and the efforts of the GOP to restrict voting by their opposition its going to be a long hard fight. The government has largely been sold, and it will be hard to get it back.
Yep, the debt and ongoing overspending has nothing to do with anything.
http://www.youtube.com/watch?v=crAILGJG9pE
Nicely done, I gave you a thumbs up. Who the hell gives ZZ top a thumbs down?
Bastard deserves a pearl necklace.
Sixteen Tons (???. ??????????? ????) — ?????????? ?????, ???????????? ? ??????? ????? ? ???????? ????????-??????????, ????????? ? ?????? ???????? XX ????.????? ???? ???????? ? 1946 ???? ???????????? ??????-???????????? ?????? ???????? ? ????? ? ????????? ???? ?? ??? ??????? Folk Songs of the Hills. ? 1955 ???? «????????» ???? ???? ??????? ???? ?????? ????? ? ??????? ?? ? ?????? «You Don’t Have to Be a Baby to Cry». ? ??? ?????????? ?????????? ???????? ?????? ??????? ? ??????? ??????-?????? ????? Billboard, ??? ??????? 10 ??????, ????? ??? 8 ?????? ????? ?????????? ? ??????? ???-?????? ???? ?? ?????. ? ?????????????? ? ??? ?? ????? ????? ?????? Sixteen Tons, ?????????? ?????? ??????. ?????? ???? ??????? ????????????? ??? ??????? ???? ????????? ????? ???? ??????. ? ?????????? ????? ??????????? ?????????????? ?????????? ?????????????. ????? ?? ???? ??????? ????? ???????? ????????? ?????.
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” Finally people are beginning to see these tired old arguments for what they truly are. Lies.”
http://www.youtube.com/watch?v=8nvuEw9XcuU
As a very well to do guy I can tell you that a market dislocation will see tremendous upheaval. Much of the “wealth” created is just paper and those holding it will lose significant percentages of their paper assets, as will those with public pensions.
Big business is sitting on tons of cash so they will be fine, but the lower working classes and immigrants will be cut VERY quickly so as to preserve big business cash.
But no worries, as I think the FED will keep pumping money into the hands of the wealthy investing classes as the alternative is too destructive for Obama to initiate during his watch. Watching his political backside is more important than anything else, so we are safe.
“As a very well to do guy I can tell you”
all credibility lost.
You *doubt* this gasbag?
Well, just thought u might like a little,perspective. But I forgot jealousy is a prime mover of losers.
Look, I did not print my name. No points for me, just letting you know what my perspective was. I began selling off in May, taking advantage of fiscal and calendar years for tax consequences for my corporations and LLC s. Am now almost though (gonna run with equity” easy out “derivatives in equities till the end of the month, then will sit back and wait for acquisition opportunities.
So, go back to you trashy little life and cry in your beer. Or shut up and learn something. Make no difference to me, I will be on the beach for the rest of the winter.
I hope you realize I intended “gasbag” as a compliment.
Gee I remember reading this article 50 years ago when Barry Goldwater was running fior President(and got his butt deservedly kicked).
Cant you Republicans come up with anything new Fits?
Man, you got that right.
Fits has his little yelping minions to feed – has to throw them that rancid red meat at least once a day.
Yes, you’ve been saying this for years, as have all the other tinfoil hat crowd of our party. And yet … nothing happens. Interest rates are shockingly low, bond curves flat, and yet HOLY SHIT THIS TIME FOR REAL YOU GUYS. Some people try to sell ideas; others try to sell fear. Your broke ass tells us the latter isn’t good business.
Good.
I also tire of the fear of the imminent collapse. There are many ways to plug holes and keep the ship afloat. But the point is still valid that continuing the current course, there will be a collapse that cannot be recovered from. I don’t know if that’ll be in my lifetime or not, but to stand idly by is not an option for me. We need to reverse the trends of debt, inflation, and an overpowering federal government.
Looks like they’re starting to jump ship. Hmmm…..
http://zeenews.india.com/business/news/companies/tata-motors-md-karl-slym-left-suicide-note-thai-police_93322.html
Respect. I have no idea what this link is and didn’t click it. My guess is it agrees with me. Do you ever speak your own thoughts?
I been speaking, and praying for, the thoughts expressed in this article for years. Personally I’d like to see a few hundred more CEO/CFO/VPDicks jumping. My only problem with it is their kids get to keep the money they stole in the first place.
A hint of what the article is about was given. It was an original thought. Just posting links is pretty fucking pompous.
Have a Great Day!! :)
Just posting links is pretty fucking pompous.
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I hear you. I’m a pompous ass. Hey, I don’t blame you for pointing it out. I’m an internet *god*!
BTW, I recently became dean of the University of Humility and I need a guest speaker for the graduating ceremonies. I’d be honored if you would say a few words to the graduating class of the future bloviators of America…. it’ll be catered by Dickie’s BBQ… also, being guest speaker, you’ll be entitled to put your own books, DVDs and whatnot up for sale at the concession stand.
Make it Hudson’s
http://www.youtube.com/watch?v=njG7p6CSbCU
Pig In- Pig out – Belly up!
I can see how you think we can just pile on the debt forever.
I suggest you pile up on bonds since you are so convinced.
Lotsa questions. How about some fearless predictions? With some schedules attached, not vague “someday all this is gonna collapse”.
I smell a whiff of fear in the market about what Obama might say about inequality in his SOTU speech Monday. You know, that “rational” market?
As long as Republicans foil any attempts at fiscal policies that might reduce unemployment, corporations are going to continue making huge profits because their labor costs remain depressed.
a broken clock is right twice a day
http://www.youtube.com/watch?v=NmZRDUO1wGQ
Respect. I have no idea what these links are and don’t click them. My guess is many agree. Do you ever speak your own thoughts?
I never speak my own thoughts using words defined by others, articles written by others, or media that expresses ideas.
I’m so original, this message contains all original words and ideas arranged for the first time in this particular order.
“When I use a word, it means just what I choose it to mean — neither more nor less.”
http://www.youtube.com/watch?v=vnDIN1-pAf4
Dude, leave him alone, he’s an “intellectual tower” or something like that.
Do you have any idea who that *was*????
You folks in the middle of the state don’t hear about this, too much, but people I know have already moved to Chile and Peru, two of the freeist countries in South America. Why? Well, the governments there leave you alone. But I’m not going, even though I have former students from there who are successful business people who would welcome me. Neither country has a strong constitution. It’s great today, but what about tomorrow? You may not like the GOP, but they would caucus with TEA Party independents, so a third party may be practical after all. 2014 IS SHAPING UP TO BE A HELLOVA political year.
I lived there for a few years. It isn’t great by a long shot. They have very wealthy and very poor….. kind of like here. The number 1 job of the wealthy is keeping what they have at the expense of the poor. Yea, lovely places to live.
Oh, and they aren’t free either. Just look at the folks in prison who never get a trial or charged with any crime. Free? Bwaahaahaa
So what did you do for employment when you were there and which country were you in?
I was in the more free country of Venezuela. Work visa and was in IT for about 2.5 years. Kissed the ground when I got back here too.
Venezuela is a total inflationary shit hole compared to Chile…two entirely different places. Ecuador is pretty nice too under the right circumstances.
I love the people of Venezuela, but I’ve known many a business man driven to the brink by their government.
Venezuela is a beautiful country. The government sucks. Chile is pretty much the same. I know residents there who aren’t allowed to leave unless the government lets them leave. I wouldn’t consider Chile nice. Great skiing but they will threw you in jail at the drop of a hat, never to be heard from again. It isn’t free.
“I know residents there who aren’t allowed to leave unless the government lets them leave. I wouldn’t consider Chile nice.”
I spent a month in Chile and never had any such problems. Nor any of the people I worked with. I spent most of my time in Santiago though, what part of the country were you in?
Did you know political dissidents or something?
They were people born and raised in Chile and as far as I know were not dissidents just wealthy or from very wealthy families. And I was in Santiago. Still have friends there that come to visit, when the government will let them.
Really, I have to tell you everything you are posting comes as a complete shock to me and doesn’t resemble any of my experiences there. I know they had a big change in government philosophy in 2010, were they wealthy as a result of the former Socialist regime?
My experience mirrors the current wiki entry:
“Today Chile is one of South America’s most stable and prosperous nations.[10] It leads Latin American nations in human development, competitiveness, income per capita, globalization, state of peace, economic freedom, and low perception of corruption.”
I just had ZERO experience in any way, shape, or form that you are describing.
What part were you in again?
She’s a liar man…
Have fun in Peru. I’m pretty sure they’re rapidly replacing Colombia as the largest cocaine producing country in the region. Let me know how that works for you.
Having spend quite a bit of time in S. America, I can tell you that if you leave them along they leave you alone.(the drug producers)
Most(99%) people that die from “interaction” with them and those that were heavily involved in the first place. The media sensationalizes it, but rarely do actual civilians get caught in crossfire.
Of course, there’s the whole thing of getting used to men walking the streets with machine guns in some of the countries, but like most government workers they are very lazy and easily bought off if you happen into the misfortune of having to deal with one of them for any reason.
“Of course, there’s the whole thing of getting used to men walking the streets with machine guns.”
What do you mean getting used to? I thought that was what SC was aspiring to.
Well, ostensibly the difference being that government is the one walking down the streets with guns brandished down there.
You can answer why a million different ways, but the fact remains that the US has far more guns per capita than any of the S. American countries citizens and you don’t really see the citizens walking around as such, so there’s that.
I guess it’s all a matter of perspective.
“Neither country has a strong constitution. ”
Technically speaking, I believe that’s the mistake you’ve made.
Our Constitution really hasn’t meant that much for quite some time now(100 years? Maybe 150 years?).
It’s pretty much ignored when they want to, how long have executive orders gone unchallenged? Pretty much most of its existence?
See, a much higher percentage of people in S. America understand exactly what their government are, the people generally speaking the in US don’t exactly yet understand the nature of their government.
So the pending recession and the current shitty sales/job/wage/economic market in the US has nothing to do with the fact that we practice “free trade” when none of the other countries do – Note big corporations have spent millions endoctinating US citizens this was good for us – it wasn’t.
‘There no such thing as free trade, only trade wars, and the US has unilaterally disarmed’ – Sen Frtiz Hollings
To put it simply, the QE policies by “Helicopter” Ben has worked. His “helicopter” speech got Ben elected as the Fed Chairman. His “helicopter” speech has been implemented since the 2008 derivative scare. He successfully saved the banking system. He successfully kept the US consumer afloat. He has facilitated a reflation of US net worth…in “paper” wealth, not wage-income. He has created another credit-fueled recovery where the US consumer is borrowing from a collateral base that is defined by paper wealth. Besides the Fed Balance Sheet, the Fed’s sole strategy is to keep the stock market from falling.
Equities is where you should be. In regards to the Fed Balance Sheet, this will be bailed out by forcing all public pensions into US Treasuries…with a 8.5% fixed return. So relax, Yellen will double down on QE to 100 billion a month! The DJIA to 20k!
As for the lack of wage-income growth in the private sector and the public sector, I say this: get used to it or start your own company.
Not everyone wants to be, nor should be, a business owner. This seems to be written by someone who is either very naive or very arrogant.
Bubbles have been created and busted since the inception of the Republic. Yet, we hear people bemoan each bubble burst as if it were the end of the world.
It seems they’ve been bemoaning it with increased exuberence though on each wave/cycle since the slow erosion of the standard of living for Joe Sixpack since the 70’s.
The average Joe has no idea why he can’t get a job or 10 years later after little in the way of raises if he has one that his money doesn’t seem to go as far.
When the $.05 Bazooka gum can no longer be had for .05, he doesn’t ask “why”, he just shrugs his shoulders and meanders on in misery wondering how he’s gonna make the next house payment.(which is understandable to some degree when he’s focused on survival instead of economic theory)
Obama,Harry Reid and Nancy Pelosi have destroyed America thanks to the Liberals in America!
Stephen Hawking’s Blunder on Black Holes Shows Danger of Listening to Scientists, Says Bachmann
WASHINGTON (The Borowitz Report)—Dr.Stephen Hawking’s recent statement that the black holes he famously described do not actually exist underscores “the danger inherent in listening to scientists,” Rep. Michele Bachmann (R-Minnesota) said today.
Rep. Bachmann unleashed a blistering attack on Dr. Hawking, who earlier referred to his mistake on black holes as his “biggest blunder.”
“Actually, Dr. Hawking, our biggest blunder as a society was ever listening to people like you,” said Rep. Bachmann. “If black holes don’t exist, then other things you scientists have been trying to foist on us probably don’t either, like climate change and evolution.”
Rep. Bachmann added that all the students who were forced to learn about black holes in college should now sue Dr. Hawking for a full refund. “Fortunately for me, I did not take any science classes in college,” she said.
Bachmann’s anti-Hawking comments seemed to be gaining traction on Capitol Hill, as seen from the statement by Rep. Lamar Smith (R-Texas), Chairman of the House Science Committee, who said, “Going forward, members of the House Science Committee will do our best to avoid listening to scientists.”
http://www.foxnews.com/science/2014/01/26/stephen-hawking-contradicts-earlier-black-hole-claims/
Lulz…so I’m guessing we should also ignore everything in the bible too, just due to 90% of the fables in Genesis?
Funny: The Great RECESSION began in 2007, according to FITS…the same year Congress was taken over by democrats. We were in one of the most robust economies in history before that.
And it has just gotten worse using Obama answers and the addition of more and more democrats…
The evidence is conclusive: Democrats have FAILED…and failed miserably..
But because idiots like FITS, and those who suck him off, are so morally clouded…we’re debating about who F#*ked it up…
The lack of honesty, the stupidity of Obama-democrat voters, and liberal-tarians, like FITS, are the problems…
Conservative gov’t works EVERY TIME…just as liberalism fills over and over…and fools still let the media screw them…