Sunday, July 24, 2011

Your Humble Blogger on Max Keiser

Enjoy my crazed ramblings:



  1. GL,
    Whoever is supplying you with information is either misinformed or lying. It is not the American people who are timid. It is our political leaders.

    During the financial crisis of 2008 Americans wanted the banks to fail. The calls to Washington on passing the bailout legislation fell into two categories. NO! and HELL, NO! But because of how things are done in Washington, the reliance on experts, the fear of the sky falling, politicians of both parties voted overwhelmingly for the bailouts.

    They are being told now the sky will fall if the debt ceiling isn't raised. 75% of the American people want the debt ceiling kept where it is. Do not believe the polls. Polls are manipulated. I get my data from the source. Congressional staffers who track phone calls, letters, and emails.

    The propaganda coming out of Washington and the news media - both liberal and conservative - supports raising the debt ceiling. Some pundits, so-called conservatives among them, are saying the American people are too dumb to understand the disaster that awaits if the debt ceiling isn't raised.

    America knows there will be no disaster. The risk level of our debt is already baked into the system. Our debt rating was dropped in Asia over a year ago. It was dropped in Europe weeks ago. None of this has been reported in the American press, not even the financial press. This is intentional.

    The problem is not American timidity. The problem is how those who benefit from the status quo have hijacked our political process. The people see what needs to be done. They are telling their leaders what needs to be done. But the leaders are unduly influenced by those who benefit from the status quo.

    More and more of America is waking up to how things are really done in Washington. That when it comes to stealing the wealth from the pockets of the American people, there is not a dime's worth of difference between the Republican leadership and Democrat leadership.

    The internet is shining the light of truth on what has been going on in darkness for decades. Those who benefit from the status quo continue to reveal their hand. They keep trying to block the light and operate in the dark. They are working furiously to divert growing collective citizen power with things like bogus websites, bogus online communities, and bogus local patriot groups. These entities behave in ways that reveal their true nature.

    People are just getting madder, smarter, and more organized. They continue to put pressure on politicians, and they are working tirelessly to expose those who are selling us out to those who benefit from the status quo.

    Calling people timid when they are not is a tactic. It is an attempt to demoralize those who are motivated to act. There are many, many motivated people. Their numbers are growing. They learn fast. They are not in it for themselves. They are in it for their children and grandchildren. They are mad as hell, and they are not going to take it any more.

    Those who benefit from the status quo have their work cut out.


  2. American people are timid. Gonzalo has it right. When there were antiwar marches in the US prior to the Iraq invasion, I participated. What was shocking to me was how few people were demonstrating. To me, this says it all. Americans are generally a bunch of cowards who are duped by the government.

  3. I think the reason that the American people may appear "timid" is simply that we're not yet at the same desperate stage as people in Greece. We don't have protesters manning barricades and throwing firebombs in the streets. That is mostly because Greece is on the verge of a national sovereign default (some time in the next 24 months) and a breakdown in their financial and economic system is inevitable.

    The USA is also on course for very serious problems, but our country is like a huge ocean liner that has strayed off course. It takes much longer before the boat runs aground.

    Some financial commentators believe that the USA is not at risk from serious consequences, and instead is more likely to suffer from a very sluggish economy over the next decade. I am skeptical. To me, this suggestion represents the most positive interpretation of a possible future for America. I believe that it will be difficult for the USA to avoid a prolonged period of high unemployment - quite possibly with joblessness a lot higher than we are seeing today. As a result, tax collections by the government will drop - perhaps markedly. Hence the key indicator of stability, which is the ratio of government debt-to-actual-tax-income (not national debt-to-GDP), could rise to critical levels. This would force a breakdown in government handouts and disbursements, leading to major rises in poverty, crime and despair in America. And absolutely if interest rates rise on US government debt, this will also be a hugely destabilizing factor.

    When will people in the USA stop being "timid". Practical answer ... when there is enough economic pain. Probably when many forms of state and government handouts are eliminated. This is coming. Some states like California are really already in as much trouble as Greece - the "system" is just not quite factoring in the economic reality. But it will happen.


  4. There's going to be a new global recession. All the stimulus did was kick the can down the road, and now the collapse will be even worse. These guys on Wall Street know nothing about how the real world operates, how can they expect to speculate successfully on the direction of the American (or any) economy? The issue with Wall Street traders is they speculate on anything. That’s what drives the price of stock up and down, and ultimately what leads to unemployment when the whole thing collapses.

    It's driven along by excessive debt. To understand why unsustainable credit and debt leverage will have a hugely damaging impact to all asset classes in the years ahead, read up on some of the excellent work by Prof Steve Keen. He's the Aussie economist who predicted the GFC in case you didn't know, and he has also proven that unsustainable credit/GDP ratios (which you have in the USA, and we have in Australia) will always result in recession and deflation. Excessive leverage is what made the property bubbles so devastating for the UK, Japan, America and Ireland.

    So if you want to blame anything for the job losses, blame the ramping up of debt (which incidentally hasn't stopped, the debt is still there, and it's being transferred from the consumer to the government). No good will come of this, we're staring down the barrel of a multi-year recession, if we're lucky.

  5. Max Keiser is a Russian propagandist... you know that, right?

  6. Keep the "boomers" on task, but let's get rid of all the extra-constitutional stuff! Welfare, Dept of Ed, Commerce, Homeland (in)security etc. Defense is a task in the Constitution, but offense was warned against. The founding fathers warned against entangling ourselves with European governments.


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