Economics? Yikes!

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" In a democracy, the people get the government they deserve"
~ Joseph de Maistre

“It is well enough that people of the nation do not understand our banking
and monetary system, for if they did, I believe there would be a revolution
before tomorrow morning.”
~ Henry Ford

Guest Post: A Matter Of Trust - Part Two | ZeroHedge
Henry Ford made this statement [above] decades before the debasement of our currency entered overdrive.
The facts reflected in the chart below should have provoked a revolution, but the ruling class has done
a magnificent job of ensuring the mathematical ignorance of the masses through government education,
mass media propaganda, and statistical manipulation of inflation data to obscure the truth.

Mainstream economists have successfully convinced the average American that inflation is good for their
lives and deflation is dangerous to their wellbeing. There are economists like Kindleberger, Shiller and Roubini
who have brilliantly documented and predicted various bubbles, despite being scorned and ridiculed by the captured
mouthpieces for the oligarchs.

But even these fine men have a flaw in their thinking. They can see speculative manias spurred by irrational
beliefs and delusional thinking, but are blind to the evil manipulations of bankers, politicians, and corporate titans.
They believe that humans with Ivy League educations can outsmart markets and through the fine tuning of
interest rates, manipulation of the money supply and provision of liquidity through a lender of last resort, can
control the financial system and avoid panics.

“This story is the ultimate example of American’s biggest political problem. We no longer have
the attention span to deal with any twenty-first century crisis. We live in an economy that is
immensely complex and we are completely at the mercy of the small group of people who understand
it – who incidentally often happen to be the same people who built these wildly complex economic
systems. We have to trust these people to do the right thing, but we can’t, because, well, they’re
scum. Which is kind of a big problem, when you think about it.”
~ Matt Taibbi – Griftopia

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History And Mathematics Argues For Collapse

“That men do not learn very much from the lessons of history is the most important of
all the lessons that History has to teach”
~ Aldous Huxley

“Most ignorance is vincible ignorance. We don’t know because we don’t want to know.”
~ Aldous Huxley

IT’S A MATTER OF TRUST – PART ONE « The Burning Platform
The fact that 86% of American adults have never heard of Jamie Dimon should suffice as proof regarding
the all-encompassing level of ignorance in this country. As the world staggers under the unbearable weight
of debt built up over decades, to fund a fantasyland dream of McMansions, luxury automobiles, iGadgets,
3D HDTVs, exotic vacations, bling, government provided pensions, free healthcare that makes us sicker,
welfare for the needy and the greedy, free education that makes us dumber, and endless wars of choice,
the realization that this debt financed Ponzi scheme was nothing but a handful of pixie dust sprinkled by
corrupt politicians and criminal bankers across the globe is beginning to set in. A law abiding society that
is supposed to be based on principles of free market capitalism must function in a lawful manner, with the
participants being able to trust the parties they do business with. When trust in politicians, regulators,
corporate leaders and bankers dissipates, anarchy, lawlessness, unscrupulous greed, looting, pillaging and
eventually crisis and panic engulf the system.

History is filled with previous episodes of debt fueled manias, initiated by bankers and politicians that led to
booms, fraud, panic, and ultimately crashes. The vast swath of Americans has no interest in history, financial
matters or anything that requires critical thinking skills. They are focused on the latest tweet from Kim Kardashian
about her impending nuptials to Kanye West, the latest rumors about the next American Idol judge or the Twilight
cheating scandal.

The historically challenged hubristic people of America always think their present-day circumstances are novel and
unique to their realm, when history is wrought with similar manias, panics, crashes and criminality. Kindleberger details
38 previous financial crises since 1618 in his book, including:

• The Dutch tulip bulb mania
• The South Sea bubble
• John Law Mississippi Company bubble
• Banking crisis of 1837
• Panic of 1857
• Panic of 1873
• Panic of 1907 – used as excuse for creation of Federal Reserve
• Great Crash of 1929
• Oil Shock of 1974-75
• Asian Crisis of 1998

[ROBERTSUNRUS]

Hi, so when people say they are giving their 2 cents worth of opinion, they are actually spending 50 cents.

[Roadie]

Well, sometimes it is actually nice to find your own little way of making money. But, while it's good to get customers, it can get out of hand when too many others want to do what you do. There's just not enough to go around sometimes, and then what was once a sure money-maker, ends up going broke. For instance, a friend and I were really into the grocery coupon thing for many years. I'll admit - we used to round up lots of products and then take them to the flea market to sell. Now that everyone is into it, you can hardly find any products on the shelves anymore, even for your own personal use! People go in with their coupons and buy mass quantities of a product that they get for free or next to nothing. You would think that stores would just keep their shelves stocked, or that the manufacturer would make sure the stores have tons of the stuff. It would be a win/win situation for all, but, no...

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Government Motors - The Twilight Zone At Pecan Street
General Motors, Channel Stuffing And The Return Of 2008 | The Truth About Cars
The implications of channel stuffing are what really matter, and may provide a glimpse into both General Motors,
and its government stewardship.

While General Motors is touting their 32 percent year-over-year increase in sales, a closer look at the numbers reveals
a couple of things. According to Bloomberg, inventory for full-size trucks was at a 135 day supply, as GM ostensibly
cranked out profitable pickups and sent them off to dealers across the land, allowing them to book sales of their most
lucrative vehicles just in time for the half-way mark – and coincidentally (or not), government purchases of GM vehicles
rose 79 percent in June. Retail sales were up a mere 8 percent, while fleet sales rose by 36 percent.

Soon You Will Come To Know...When The Bullet Hits The Bone

U.S. Banks Told To Make Plans For Preventing Collapse | Reuters
U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and
Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems,
emphasizing that the banks could not count on government help.

Obama's Master Plan: Bailout Everyone | ZeroHedge
A 40% loss of post-IPO market-cap, channel-stuffing largesse, contract-law destruction, and all with tax-payer
backing. That is what the Bailout'er-in-chief has in mind for every manufacturing company in the US. As Politico
reports this evening, President Obama gave a speech we think rivals his 'you didn’t build it' miasma as he alienated
foreigners, encouraged socialized losses, and suggests bailouts for any and all. "I said, I believe in American workers,
I believe in this American industry, and now the American auto industry has come roaring back," (cough - down
43% - cough) he said. "Now I want to do the same thing with manufacturing jobs, not just in the auto industry,
but in every industry."

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Guest Post: Are You Loving Your Servitude Yet? | ZeroHedge
The Central State has the power via welfare (individual and corporate) and bailouts to buy complicity. Since the human
mind rebels against hypocrisy and insincerity--we can all spot a phony--we subconsciously persuade ourselves of the
rightness and inevitability of servitude and self-absorption.

And that is how we come to love our servitude; we persuade ourselves to believe it's acceptable and normal rather than
deranged and destructive.

Its Time To Throw Off The Yoke Of Tyranny
Shay's Rebellion - All We're Waiting For Is Another Daniel Shay

Shays' Rebellion
Only three years after the American Revolution ended, thousands of Massachusetts citizens took up arms against their
new state government. The rebellion started on August 29, 1786. It was precipitated by several factors: financial difficulties
brought about by a post-war economic depression, a credit squeeze caused by a lack of hard currency, and fiscally harsh
government policies instituted in 1785 to solve the state's debt problems. Protesters, including many war veterans,
shut down county courts in the later months of 1786 to stop the judicial hearings for tax and debt collection. The
protesters became radicalized against the state government following the arrests of some of their leaders, and began
to organize an armed force.

Farmers Grab the Pitchforks to Protest Birthday Fine - Reason 24/7 : Reason.com
Pitchfork-wielding Virginia farmers rallied to support a woman who claims local officials came down on her for, among other
things, hosting a children's birthday party on her spread.

Martha Boneta, owner of Liberty Farms in the northern village of Paris, was threatened with nearly $5,000 in fines for selling
produce and crafts and throwing unlicensed events, including a birthday party for her best friend's child. She told FoxNews.com
she wasn't doing anything farmers haven't done for generations, and at a recent zoning board meeting, her agrarian friends
literally showed up with pitchforks to express their support.

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Maxwell's Silver Hammer

Nine Months Ago I Said Germany Would Leave the Euro... Finally the MSM is Starting to Catch On | ZeroHedge
The fact that we’ve seen hints of Germany leaving the Euro popping up in the mainstream media should be a BIG warning.
Moreover, the Wall Street Journal recently noted that certain areas of Germany are once again accepting Deutsche Marks
as legal tender.

Will Germany leave the Euro? I believe so. The country is already bordering on insolvency due to nearly €1 trillion in
backdoor EU bailouts (pushing Germany’s Debt to GDP to 90%). Over 69% of Germans are worried about inflation. Angela Merkel is up for re-election next year (and has gained political points anytime she played hardball with Europe) and Germany has implemented steps to place a firewall around its financial system and passed legislation allowing it to leave the Euro if need be.

None of this adds up to Germany bailing out all of Europe. Merkel has said there will not be Eurobonds for as “long as [she]
lives.” And Germany doesn’t have the €5 trillion needed to backstop the PIIGS banking deposits, let alone the deposits for
all of the EU.

Beware America - A Double Take
The hard truth is that these situations are simply not fixable. There simply is not enough money to pay off the debt, nor will any election make any difference. That is as true for the United States as it is for the EU. It is simple mathematics.

"I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones."
~ Albert Einstein

Is The Greek Calamity Economy Headed For Revolt? | ZeroHedge
And a calamity it is. Youth unemployment (15-24) jumped to 54.9%—but even before the crisis, during the boom years so to speak, it had been high, ranging from 22% in 2007 to 32% in 1999. The number of people with jobs dropped to
3,816,900—of a total population of 9.9 million! Only 38.5% of the people work! In the US, where the jobs situation is
dismal enough, the employment population ratio is 58.4%. No country can succeed when only 38.5% of the people
contribute to the economy and pay taxes to feed their government and service its debt. To get to 50%, the Greek
economy would have to create 1.2 million jobs, a 31% jump! Impossible under the regime of Greek politics, bureaucrats, and
state-owned enterprises. So the people are reacting with their feet.

Alas, one of the bailout conditions is to cut 15,000 civil servants by the end of 2012 and 150,000 by 2015. Given the
unmitigated jobs fiasco, such cuts—if the coalition government can even agree on them—may trigger another revolt in the
streets. And that could start at the end of August.

Just then, Greece will be out of money. Default date: August 20. A €3.2 billion bond matures. Europe is on vacation. It will
be mayhem. And somebody will get blamed. But they found a solution, one that violates the underpinnings of the Eurozone.
Read.... Greece Prints Euros To Stay Afloat, The ECB Approves, The Bundesbank Nods: No One Wants To Get Blamed For
Kicking Greece Out.

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Hi, so when people say they are giving their 2 cents worth of opinion, they are actually spending 50 cents.

Its about the same ratio as the price of hamburgers too.
They didnt just magically become more expensive one night.
Something caused it.....our money has been devalued.

Prices dont matter. Items dont really get "more expensive"...
the reality is the money just isnt worth squat anymore. [see rounds #2 & #3 below]

Only one guy has ever really understood and cried foul...

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Senior Merkel Ally Sends Stark Warning To Greece | Reuters
A senior member of Chancellor Angela Merkel's party issued a stark warning to Greece on Monday,
saying Germany would not hesitate to veto further aid to the country if there were any signs it was
not meeting the conditions of its bailout. The comments, by the deputy parliamentary leader of Merkel's
Christian Democrats (CDU) Michael Fuchs, are a sign that frustration with Greece among ruling party
lawmakers is nearing the breaking point.

Investors Preparing for Collapse of the Euro - SPIEGEL ONLINE
Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border
bank lending is falling, asset managers are shunning Europe and money is flowing into German real
estate and bonds. The euro remains stable against the dollar because America has debt problems
too. But unlike the euro, the dollar's structure isn't in doubt.

Treasury: U.S. to lose $25 billion on auto bailout | The Detroit News | detroitnews.com
The report may still underestimate the losses. The report covers predicted losses through May 31, when
GM's stock price was $22.20 a share. On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that
price, the government would lose another $850 million on its GM bailout. The government still holds 500
million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
At the current price, the Treasury would lose more than $16 billion on its GM bailout.

[Roadie]

Germany also helped out Spain. At least they have policies and conditions attached when they hand out money. If America were to implement something similar, we might stand a chance of getting some of our money back.