More of the Traveling Magic Show

aig-logoI have listened to the news for the last couple of days swirl on about the bonuses being paid to executives from troubled insurance giant AIG. I understand that many of you are upset with AIG. I do get that we are seeing a company get bailed out with Billions of dollars of US Taxpayer money. And I do get that the contracts of these executives awarded them large bonuses that you don’t think are fair. I don’t think they are fair either. Let’s get that out of the way. But, my friends it is time to put a little perspective into play here. And once we have some perspective we can ask ourselves what is the real game afoot?

Before offering some perspective, a little bit of fact checking for you screaming liberals who want to blame Bush for this one too. Bush didn’t bail out AIG the first time, the Federal Reserve did, without Congress or the President’s approval. The guy who signed off on that bailout was the head of the New York Federal Reserve at the time, Timothy Geithner. Yes the same Good old Timmy that is now Obama’s Secretary of the “I don’t pay my taxes” Treasury. And Timmy boy knew then about these contracts and bonuses. So Obama and his posse acting as though they are suddenly shocked and outraged by this “new development” is a ruse. More on this in a bit. 

ron-paul-desk-sign$165 Million in bonuses paid out to AIG executives for running their company into the ground. It sure seems like a big number doesn’t it? After all it is more than most of us will ever see. But it is not a big number. Allow me to provide you with some numbers that did not garner near the outrage from the Obama administration or the Main Stream Media:

 

  • The economic stimulus bill did not garner near the reaction from the media or the administration. Yet the AIG bonuses are 0.0002% of the amount of the stimulus. You read that right, the AIG bonuses are two ten-thousandths of one percent of the economic stimulus bill.
  • Speaking of the economic stimulus bill, it contained $200 Million ($35 million more than these execs got paid) to plant new grass on the national mall in Washington DC.
  • And another $276 Million ($111Million for than AIG) to fix computer equipment at the State Department.
  • And another $400 Million (2x AIG) to fix computer equipment at the Social Security Administration.
  • And another $400 Million (2x AIG) for NASA to conduct Climate Change Research.
  • And another $20 Billion (121x AIG) to digitize medical records.
  • And another $335 Million ($170 Million more than AIG) to fund condoms in California.
  • And another $1 Billion (106x AIG) to Amtrak, the government run train system that has not turned a profit in 40 years.
  • And another $227 Million ($62 Million more than AIG) just to oversee the spending of all the money from the economic stimulus bill.
  • I think you get the point here….

 

So let’s be real, who cares about AIG executives getting $165 in bonuses? I don’t. I care that our current Secretary of the Treasury was the guy who made it possible. So in reality this measly $165 Million to AIG executives is not what has the President of members of Congress fired up and threatening to explore every legal avenue to stop these bonuses from being paid. So then what gives?

obama-magicianPay no attention to the left hand…. just watch what I am doing with the right hand to distract you while I steal your wallet. I spoke a couple of weeks ago about the fact that this President’s administration was playing an excellent set of magic tricks on the American Public. While he gets people fired up and outraged about AIG, it keeps them from focusing on all the other things that He and his liberal agenda cronies are doing quietly. 

This is more class warfare. More of the administration telling you how horrible those capitalist satan worshipers in big business are. You grow to hate the big companies for doing exactly what big companies were created to do. And they try to make you believe that government in all its socialist glory has the power to do what you cannot: stop these monsters and take from them and give it to you. 

And this will further the cry from Americans for government to step in and take over so that this kind of corruption will be stopped! Barney Franks went on TV yesterday and stressed that 80% of AIG is owned by the government at this point and the Congress now wants a say in running AIG and making decisions for the business. Congress wants to look out for you! A brilliant plan, not only will they make private businesses in America state owned and run, they will get the American public to beg them to do it. 

I am beginning to see that the Traveling magic show that I believed the Obama administration to be is a bit of an understatement. It is a full blown circus, complete with Obama the Great as Ringmaster, Geithner as the clown, Pelosi as the half man/half woman, Barney Franks as the bearded lady, Rham Emanuel as the behind the scenes owner, and the Main Stream Media as the great and mystical fortune teller. Problem is that this is one carnival we cannot afford to take our kids to. But its cool, if you quit your job tomorrow and go on welfare, tickets are free!

Wake Up America. Focus on the big picture here and don’t be fooled by the sleight of hand that this administration is using to turn America into a socialist nation. Get out there and get people mad and educate them on what is happening. All hope is not lost yet. Pew and Rasmussen, two of the most respected non-biased polling companies in the US, showed Obama’s approval rating going below 60% for the first time on Tuesday. It looks like some folks are starting to wake up. Keep the pressure on.

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Comments

  1. Good post and right on target!

    Ever since I first heard of him, and started to listen to what he was saying, I figured him for a common con artist. He and his ilk are no better than common criminals.

    We The People need to step up to the plate and get something done about this right now, for I believe 2010 will be way too late.

  2. I warned you all about red herrings on Monday.Billions are being funneled through AIG.Want more billions?Hedge funds that bet against the housing market are going to be due payment soon.Want to guess where the money’s going to come from.Right,the taxpayer.Via where?Right again,through AIG.

    The executives of AIG deserve bonuses because I doubt if so much money has gone through a small division of a company in the history of the world before.Fortunes
    are being made for people you have never even heard of,and won’t ever hear of.Chris Dodd,Barmy Frank et al will get some peanuts out of it and that’s all.The real recipients are people that seldom appear in the harsh light of day.

    Please keep in mind that in 2012 we voters can always replace the cast of characters in charge now with another cast with [R] behind their name,just like the ones in charge when this giveaway started.

  3. I agree totally.The government is using AIG as a distraction. Nobody knew about the bonuses when they gave them the money?What a joke!I wonder if I can sue the government for my share of the 165 million?!

    • USWeapon says:

      NavyMom,

      Unfortunately the government has done a phenomenal job of making sure that the public getting screwed doesn’t have the ability to sue the government for screwing them. There comes a time when the assaults become so blatant and so painful that the America Public will rise up and smack politicians back into their place. Perhaps that time is coming. Perhaps BF is right and it never will and we will simply watch the government implode itself without our doing a thing.

  4. Mother in Law says:

    I totally agree that it is a distraction of the real problem which I feel is his budget which even some of his people are wondering about. I watched Glenn Beck yesterday and saw the break down. Should it had happened probably not but let get on with life.

  5. US, your assessment is dead on. The Obama administration is playing their slight of hand games…still. It is a travesty that the media is fixated on the 165 million dollars being paid to the AIG executives, but mostly ignore the fact that the now 80% owned by the US taxpayer company is being used to funnel BILLIONS of dollars to FOREIGN banks…to the tune of about 20 billion dollars. It is also notable that it was Chris Dodd who inserted the provision in the bailout bill to allow these bonuses to go through…he also received quite a bit of money in campaign donations from AIG. Simply amazing at that audacity of hope and change.

    This administration will continue their wicked ways at least until there is sufficient balance in the Congress in the form of fewer democrats and more of any other party that will at least keep these spend happy freaks in check.

    • I just did some more checking…I was wrong. The money funneled through AIG was more like 62 BILLION dollars…19 Billion to France, 17 Billion to Germany, 13 Billion to the UK and 5 billion to Switzerland! But don’t pay any attention to that…focus on the 165 million going to those awful AIG executives!

      • USWeapon says:

        Terry,

        Some interesting numbers, although I won’t pretend that it shocks me to hear them.

  6. If you all would like,add something else to this equation.The stimulus bill,what was it finally,$787 billion? It had to be passed immediately or the country would colapse.The majority of the money isn’t going to spent any time soon.Want a peek at why this may be happening?

    Yesterday,Nancy Pelosi requested a change in funding rules so she could give the failing San Francisco Chronicle bailout funds to keep them afloat.That’s her hometown newspaper that always supports everything she does.Not surprsingly,the stimulus package is designed to help Democrats keep votes.

    • USWeapon says:

      Ron,

      I live under no illusion about the “economic stimulus”. It was nothing more than a brazen move to inject 40 years worth of Democratic agenda items into play under the lie of helping America. The main stream media should not be getting one single dime of money from the federal government. That really pisses me off. I cannot stand Pelosi.

    • Pelosi has also just said “it is un-American to go to a workplace, and check for illegal aliens”.

  7. I have never witnessed a party that controlled all thre branches of govt. at the same time , have such disregard for the peoples true will. obama is already the worst president ever and things are just heating up with his party strengtheneing spending from the census run by ACORN to shutting down the military in due time also with him letting communist dictators chavez and putin the old original communist throwback move into our back yard. They want to tax AIG at 90% so they can set a precednet and condition us for confiscatory taxes

    • USWeapon says:

      Ty,

      Just a slight correction, the census is not going to be run by ACORN, they are just going to be participating. They should not even be allowed to do that so it is wrong either way, but I wanted to make the distinction anyway.

      I completely agree with your assessment of the 90% tax on AIG. Nothing more than setting a precedent so that in the future they are able to start doing that to whomever opposes them.

  8. The scrambling and outrage going on in Washington is pathetic; what a dog and pony show. In the meantime, did we hear much, if anything, about the proposed change to the Vets benefits that USW wrote of yesterday? Did we hear how BO wants to de-arm pilots, a policy put in place after 911? I think it’s today that BO is meeting with a Hispanic group to start talking immigration reform…and we know what that means. And who knows what else is going on behind closed doors. Cloward-Piven is at work here!

  9. putin and obama on the world stage together scares the crap out of me..I cant think of two bigger communists who could care less what is good for the people, only whats good for the party. obama redistributing the hard working folks money to the poor at every turn and of course bastisizing the rich with class warfare so everyone can be poor and wait for the govt. to give them cheese and toilet paper, is so obvious.like the other day when he is thinking about taking health benefits away from veterans while giving them to non working entities and illegals, every day its something new. JOe the plumber had a lot of insight, to bad the liberal press didnt focus on what was said instead of joes divorce or his license or his garbage and then how talking about this hurts the republicans for going negative..

  10. by the way, i love the artwork and photos.. dont steal the govt. hates competition. i like the one with obama pulling a rabbit out of his hat too, i know you wanted to stay away from crudity on that one, even though we are all thinking of a cartoon of obama pulling a donkey out of his ass

  11. oh and i forgot the part about the hammer and sickle tattoo on his butt

  12. “Barney Franks as the bearded lady” …. you crack me up 🙂

    That is an excellent analogy 🙂

    mb2

  13. Black Flag says:

    I would refer back to my guest post (thanks USWep)
    https://standupforamerica.wordpress.com/2009/02/08/guest-commentator-you-wont-believe-it/

    We have been and will expand into becoming a more fascist economy – that is, government run capitalism. There will a growing and continuing nationalization of all banking and insurance companies – the major arteries of capital and investment.

    Free-market use and purchase of capital will no longer exist.

    This will mean massive economic stagnation and ever-increasing economic manipulation and the end of entrepreneurship.

    It will mean overt and direct control of your lives – you will need to have a license to work and a license to spend money.

    The government will split the people between those that obey – and will get resources from the government and that do not obey – who will be denied the resources and starve. (See Zimbabwe)

    • USWeapon says:

      BF,

      I have bumped your guest commentary back up to just below last night’s posts from me. I again thank you for adding it to the relevance of this site. It is a good commentary and worth everyone reading again. No need to thank me, that is what the site is for, education, and you were providing some. You are always welcome to submit articles for consideration as guest commentaries. You comments are always well thought out and insightful, and you present them in respectful ways. I appreciate all of the contributions you make to the site. We may get along as well as cats and dogs, but it doesn’t mean I respect you any less, lol.

  14. Weapon, et al,
    Slightly off topic here but,…
    Todays Fox news broadcast has been filled with Dodd’s complicity in all of this AIG stuff, and Barney Frank’s sputtering about how heads will roll (while he is one of those most responsible). How can we non-residents of the Peoples Democratic Republic of Taxachusetts/ Convicticutt get these losers out of office? I don’t have a ton of money to send but I’ll do anything I can. Is there anyone on here who is familiar with these districts? I would add Pelosi but she’s from “La-La land” and we shouldn’t even waste our time. (If I’m wrong, call me on it and I’ll include her too.) These guys should be “Madoff’ed” ASAP! How about an election “hit-list” where we target the top 2-3 worst offenders – Party Not a Factor – to try and get them booted from office? I’m sure after a cycle or two it would be noticed….
    CZ

    • Disgusted in Cali says:

      I would love to add Pelosi to your list, unfortunately the vast majority of people in LA and San Fran bay area love her and those are the only 2 places in Cali that matter in elections here. The rest of the state doesn’t have a large enough population to make a difference in electorial college votes. Pisses me off to no end

    • CZ

      You are correct, this has to be taken back a district at a time. We have to find the worst offenders and go after them. Those seeking a Coup de Main are fooling themselves. So, we all should be capable of finding viable alternatives to Dodd, Frank, Spector, Pelosi et al and fund raise up the kazoo.

  15. P.S. – Black Flag, I already know your response! HaHA!!

    • Black Flag says:

      🙂 I’m sure you do! That means you are at least paying attention (regardless if you agree or not).

      By the time you any election comes along, the issues will be different and will not focus on these things. No matter how much yelling and screaming, the MSM will be given the issues the government wants you to concern about – and the herd will follow.

      You do not control election issues.

      You do not control the candidates selected for you to vote for.

      You do not control the ‘elected’ representative that ‘represents’ you. They do not listen to you.

      Attempting by voting to change the system has never worked. No people have elected themselves free.

      Voting – by the act, regardless for who or for what – simply is your agreement to government ruling your life.

      Abandon hope all ye who enter here</i?

  16. thats true, obama can continue with a disgrace a day, ticking off veterans , pro lifers, people for fair elections, tax payers ,investors, gun owners,the british,the Jews, charter school moms ect etc. then once the new election comes around , the press wont mention a thing about obama in a negative light and the opponent will be run through the mill. obamacorn will make sure their messiah is reelected through the census and fraudulant voters and illegal contributions attached to all of them , and all these groups will have forgot about obama giving them the shaft and will vote for him again… like they say they would never vote for a republican

  17. Black Flag says:

    http://news.yahoo.com/s/ap/20090318/ap_on_bi_ge/fed_interest_rates

    Fed to buy up to $300B long-term Treasury bonds

    Remembering that $10 billion was spent for the S&L Crisis….

    This money will hit the non-government economy in about 4 – 6 months. That is the size of your window to prepare for the beginnings of inflationary explosion.

  18. Black Flag says:

    Hugs and kisses back 😉

    You have a great blog that attracts an intelligent audience. I have fun here.

    • BF – Glad you are having fun! I have to say that sometimes I get PO’d reading your essays but force myself to do so. Don’t always (often?) agree, but I appreciate your insight.

  19. R. W. Boveroux says:

    Here is an interesting idea. I know it is not going to happen, but it is a nice idea.

    http://www.foxnews.com/politics/first100days/2009/03/18/rep-mack-calls-geithner-resign-fired-aig-bonuses/

  20. Kristian says:

    BF,

    You’re gonna love this but I am beginning to think that you are right, this government will eventually implode and we won’t have to do a thing. I only hope that when the implosion takes place I am far enough down on the economic food chain that it will take a while for the ripples to hit me. I don’t think that I make enough money for it to do too much damamge and I have never traded on the stock exchange. My biggest concern right now is obummer’s newest policy proposal regarding veterans. That will hit home as both my husband and I are military veterans. I’m curious as to your thoughts on that one.

    • Black Flag says:

      I am very much a pessimist regarding the situation today. More than a few get angry when I present my thoughts.

      Worse, I’m almost always right in understanding the economic future – uncanny in fact – I cannot, however, tell you when – that is only a guess. My guess is sooner than later.

      That makes my words even harder to take because in the short term, it makes life harder then your neighbor as you spend wealth and time in preparation of something horrible while he enjoys the flush of the last bloom.

      Some of my family and a few friends accepted my advice and didn’t buy into the fake housing boom a decade ago (neither did I – I do live what I preach) and then had to sit back and watch everyone else grow house-rich (and suffer the ridicule and being called ‘naive’ – after 10 years of this, you probably start to believe you were wrong).

      Of course, today, watching friends being crushed with up-side-down mortgages simply doesn’t improve one’s mood either. It is hard to say “told you so” to those that you care about and who are suffering.

      The collapse of society will leave no one uninjured. Very, very few will get wealthy on disasters, and they are usually already positioned and bought in and there will simply no room for you anyway. Your goal is to get off the Titanic and into a life boat. Life in a life-boat is not a happy one, but you get to live.

      As inflation hits, the ability to predict the future (which what entrepreneurship is all about – investing today for future profit) will be devastated. No one will be able to trust business decisions – thus the economy will grind to a halt as bartering replaces money.

      Remember the movies where the story line is the “world is going to end”, and people with luggage fulls of money can’t buy anything? Keep that in mind….

      I repeat key advice from another incredibly brilliant economic scholar…

      First, review this 7-minute video is truly terrifying. It is a video on Zimbabwe, where the money has died.

      As you view it, think: “What if this were my family? What would I do?”

      The people interviewed cannot buy bread unless they have gold. They can buy very little bread this way. The price of bread in gold is high. Gold keeps people alive, but it does not do much more than this.

      They have gold in rivers that can be mined. This is not true in most countries.

      Zimbabwe was a low division of labor agricultural society before the money died. It did not have far to fall in terms of lost productivity. The effects of hyperinflation in an advanced society would be far worse. People in Zimbabwe can mine streams for gold. They can’t in urban areas, but the nation is mostly rural. The West is mostly urban.

      As I said above, mass inflation prevents future prediction. Business is based on future predictions. Without that, business stops. With that, the division of labor (specialization of work) stops and low division of labor takes over. With that, the economy stops and barter (economy without pricing) takes its place.

      Prices tell us what goods are worth. When money dies, we lose most of this information. Differentiation of value is lost (a cow costs the same as 10 shoes or 20?? Who is to know?) Trade stops (hard to ship 10 (or 20?) cos to Japan to buy a car).

      Hyperinflation usually does not last long. It destroys the currency. The government loses tax revenues from the delay in payment. It prints more money to stay afloat. This destroys trade. Barter replaces exchange for money. That has happened in Zimbabwe. At that point, money dies. So do people.

      My economist friend’s view is that hyperinflation is so destructive that central banks will pull back and allow a depression rather than destroy the currency unit. They will tolerate 25% to 50% annual price inflation — mass inflation — but not hyperinflation above 100%. I, myself, disagree – I believe that the central bank will allow inflation to run amok so to clear off the $70 trillion or so liability the government now holds on its lap.

      If hyper-inflation ever happens, millions of people will either die or be reduced to abject poverty.

      But he believes the politicians would rather stop paying Medicare and Social Security to oldsters than risk total collapse. They will cut off some groups rather than destroy the currency. I believe they will cut off some groups, but allow the broad carnage to occur anyway. I’m the pessimist, remember.

      Besides holding a part of your cash reserves in gold there are other necessary steps to cope with it: a survival rural property, diesel fuel storage, several years’ of food stored in bug-proof containers, weapons, neighborhood defense associations, and solar power. That is what a family in Zimbabwe needs today.

      Having a couple of thousand dollars in today’s money invested in a few small gold coins will not do you much good if we get hyperinflation. It will buy dollars to pay off real estate debt. But gold is for the post-inflationary era, when the government issues a new currency.

      Gold retains value in a hyperinflation. It is an asset that is shielded from destruction, unlike bonds, mortgages, T-bills, and most industrial stocks. Commodities do well, but it takes organized markets to profit from them, and hyperinflation ruins companies and salesmen who keep markets organized.

      You want to own a high-value, low-volume commodity. That means gold. It does well in mass inflation. It is worth something after money dies. But, Gold does not make you rich in hyperinflation. It may keep you alive. You want small coins for transactions. Tenth-ounce gold coins are very hard to buy these days.

      As far as the vet’s situation – (and I hate to stir this up again) – it matters to understand why the vets are being tossed under the bus at the same time banks and political hacks are being saved. As stated above, they are the first to be abandoned to stave off immediate inflation, whereas the bailout will create future inflation and politicians love to push the day of reckoning further into the future – we will see more of this.

      Almost everyone in government agrees with Obama’s move – regardless of the uproar of the population.

      You are merely the first of a long list of those who are or will be suffering and in pain. You will have plenty of company.

      • Wow, such pessimism. What? No “faith” in the human condition?

        I agree that we are now headed into another “Dark Ages”, but I disagree that this one cannot be avoided. We can prevent this, all we have to do is stick together and each of us pull our own weight.

        Get away from the pessimism, BF, take a look around you. We are all surrounded by good decent folks, all we have to do is stick together on this and we will make it through!

  21. Andrew Gabriel says:

    Now that few have realized or are trying to open their eyes…what then? Do we sit and wait for the same system that allowed a less than benign list of political leaders rise to power to give us the lesser of two evils in 2012? or maybe in 2016 we might get “lucky”. The problem is not the candidate, your political affiliation means nothing. Republicans, democrats, they only care for themselves. We the “people” are their foot stool. They stand on our backs because we have allowed them to do so. We can debate and whine until we are all blue in the face, nothing will change, unless “WE THE PEOPLE” are willing to endure the pain and enormous sacrifice that comes with the forced and complete removal of this cancer that is destroying our nation. The election of Obama was the greatest orchestrated media campaign ever. John McCain was too “white” to be elected. Too white for the benefit and well being of the ruling class. Obama appeased the rising tide of a subversive sentiment within the “people” of America, and made the ignorant “new immigrants” happy, because he is of a darker complexion, and somehow that is supposed to mean something. How BLIND are we still? While “we the people” live divided by race, class and self imposed prejudices, the ruling class has learned to be completely color blind. They are all “GREEN”. Now that fire that burns within the people and that rage that we have because of injustice and inequality has been funneled very intelligently towards the basic foundations that makes america, AMERICA. Since when is CAPITALISM the enemy of the people. When did Socialism become our Salvation? Is Capitalism really Communism at it’s infancy? I hope not, and I for one am not going to stand idol and let someone else decide my fate. I will live free or die for my freedom, but I will not live a slave of ignorance.

  22. Black Flag says:

    A bit of CS Lewis – and I send this to a friend:

    And the prophecy I make is this.

    To nine out of ten of you the choice which could lead to scoundrelism will come, when it does come, in no very dramatic colors.

    Obviously bad men, obviously threatening or bribing, will almost certainly not appear.

    Over a drink or a cup of coffee, disguised as a triviality and sandwiched between two jokes, from the lips of a man, or woman, whom you have recently been getting to know rather better and whom you hope to know better still — just at the moment when you are most anxious not to appear crude, or naif, or a prig — the hint will come.

    It will be the hint of something which is not quite in accordance with the technical rules of fair play: something which the public, the ignorant, romantic public, would never understand: something which even the outsiders in your own profession are apt to make a fuss about: but something, says your new friend, which “we” — and at the word “we” you try not to blush for mere pleasure — something “we always do.”

    And you will be drawn in, if you are drawn in, not by desire for gain or ease, but simply because at that moment, when the cup was so near your lips, you cannot bear to be thrust back again into the cold outer world.

    It would be so terrible to see the other man’s face — that genial, confidential, delightfully sophisticated face — turn suddenly cold and contemptuous, to know that you had been tried for the Inner Ring and rejected.

    And then, if you are drawn in, next week it will be something a little further from the rules, and next year something further still, but all in the jolliest, friendliest spirit.

    It may end in a crash, a scandal, and penal servitude: it may end in millions, a peerage and giving the prizes at your old school.

    But you will be a scoundrel.

  23. Black Flag says:

    CS Lewis, to all who read here

    The quest of the Inner Ring will break your hearts unless you break it.

    But if you break it, a surprising result will follow.

    If in your working hours you make the work your end, you will presently find yourself all unawares inside the only circle in your profession that really matters.

    You will be one of the sound craftsmen, and other sound craftsmen will know it.

    This group of craftsmen will by no means coincide with the Inner Ring or the Important People or the People in the Know.

    It will not shape that professional policy or work up that professional influence which fights for the profession as a whole against the public: nor will it lead to those periodic scandals and crises which the Inner Ring produces.

    But it will do those things which that profession exists to do and will in the long run be responsible for all the respect which that profession in fact enjoys and which the speeches and advertisements cannot maintain.

    And if in your spare time you consort simply with the people you like, you will again find that you have come unawares to a real inside: that you are indeed snug and safe at the center of something which, seen from without, would look exactly like an Inner Ring.

    But the difference is that its secrecy is accidental, and its exclusiveness a by-product, and no one was led thither by the lure of the esoteric: for it is only four or five people who like one another meeting to do things that they like.

    This is friendship.

    Aristotle placed it among the virtues. It causes perhaps half of all the happiness in the world, and no Inner Ring can ever have it.

    I am asked occasionally, “What should I do, then, if not work for/against government?”

    Do your job well, to the best of your ability – give service to your fellow countrymen by the sweat of your brow to the extent of your capability – you will do far more for your family and your country than the most famous politicians ever did.

    • I have often contemplated the man and woman that get up in the cold dark each morning and trundle themselves off to their labors by which they support their families.I believe these people may well be the heros of the world that some others are always seeking elsewhere.

      • Ron,

        Those people don’t see themselves as heros, they are just doing what they are supposed to do to take care of their families. Those are the people who don’t believe that the world owes them a living and aren’t afraid to do what they have to do. We should have more people like them. There are more of them than you might think but they are not noticed. These days to get noticed you have to do or say something scandalous. That’s a shame, isn’t it?

  24. BF….are you hinting that…..I need to sell my city house….move to my rual house….buy some cows, chickens and grow a garden….because that in reality will be the monetary system of the future? In that case I better build a tall fence, and get some shot gun shells….I’m gonna need them to keep out the city varmits.

    • Black Flag says:

      I am suggesting that you evaluate your specific position on the basis of what you know will occur.

      When one can see the future, we have two options – 1) pretend it won’t happen and carry on as if we didn’t have the knowledge or 2) prepare.

      Because the timing is not known, over-preparation too early may negatively impact your current condition.

      Equally, under-preparation will negatively impact your future condition.

      Thus, just like the Native Indian in the movies – ear to the ground, listening the buffalo herd on the move – keep informed – there will be signs (like today’s announcement to spend 300 billion on T-bills) and prepared to a degree that is comfortable to you and your family.

      Just don’t walk toward the future ignorant and blind.

    • Amazed,

      You might want to go over to http://www.the912project.com/

      That is Glenn Becks new site, maybe you already know about it.

      Scroll down to “The New “Food Safety Act”

      Click on that and read the comments.

      • R. W. Boveroux says:

        Dee and others:

        You may find this rather eye opening. I can not get to the Glen Beck website from a government computer on a government website. Hmm…..

  25. Thanks for the great stuff.
    Im enjoying the site.
    Keep up the awesome work.

  26. Black Flag,

    You and I have similar thoughts. I too, am branded a pessimist, or nut. My boyfriend keeps poo-pooing me when I tell him my concerns/predictions. He sees a silver lining in the last six days of the Dow Jones. He voted for the teleprompter Jesus and keeps looking for signs of improvement. All I see are signs of warning. What signs of the implosion do you see? What do you believe the chances are of it happening by the end of the year? I’m curious about your thoughts…..

    • Black Flag says:

      Hi Cindy,

      It was a long post, so I put it at the below, for formatting and readability.

  27. Absolutely love the circus analogy! And Barny Frank as the bearded lady – too funny and accurate as hell!! I read the world news today about the strikes in France – and it simply amazes me that this is what is in store for America if Obama isn’t stopped. I’m beginning to fear for the country I love, and for the country my children will be inheriting. Keep up the conversation – we need to get the word out and make people wake up and take notice of their surroundings. We must be well informed – because I truly believe this is the tipping point for these great United States which was built on hard work & personal responsibility….and is now having socialism crammed down its throat in the sneakiest way

  28. Black Flag says:

    G.A,

    Wow, such pessimism. What? No “faith” in the human condition?

    Oh, long term I hold great optimism. The short-term, though, has the people entangled with the minions of evil (government) – and they are running thing right now.

    They will wreck so much, with so much destruction, the best one can do is hunker down and pray you don’t get hit with debris.

    …decent folks….

    Alfred Jay Nock called them the “Remnants” – a small minority who understood the nature of the state and society, and who would become influential only after the current dangerous course had become thoroughly and obviously untenable.

    Indeed, civilization will depend on them.

  29. Black Flag says:

    Cyndi P

    As far as your boyfriend… he is in denial.

    So far, the traditional panic break in the stock market has not occurred. When it does, the psychological devastation will be too great for some people.

    Some people can’t believe that their portfolios have collapsed. Some get defensive, shrugging it off. “The stock market will come back.” It never came back to March 2000. Why will it come back this time? Others are frightened badly. Others have adjusted their retirement dreams downward.

    When a couple are having different responses, both of them will have problems expressing their concerns. The other one does not want to hear about these concerns.

    But here is my point, the one who has a plan should take the lead. A bad plan is better than no plan. A plan can be adjusted.

    By “take the lead,” I mean first and foremost cost-cutting. Create a budget and stick to it. The one with the plan must control the checkbook… make it clear that this is an emergency situation. Take over control over the spending. Start looking for less expensive housing (if you are renting), or renegotiate your mortgage for a term rate as far into the future as possible (if you are not upside-down already today).

    The one without the plan must defer to the other. The leader ought to stop talking about how bad things are. Talking is useless. Actions count. If you control the checkbook, shut up and cut the budget.

    You are probably not in much worse shape than others — you are actually way ahead of most people because you are aware.

    If the person in denial controls the checkbook and refuses to turn loose of it, the other party is in trouble.

    If this is what happens, you had better start spending on food storage and similar fall-back items. When reality catches up with the bank account, at least the family will have a few months’ reserves. That will give time for the other in denial to face reality.

    A person in denial is probably ready to surrender control. Graciously make a move for the checkbook.

    The person who faces reality is in a better position to take responsibility. If that’s you, wait for the opportunity. The person in denial will at some point be ready to surrender authority. He or she just wants out from under the burden. Be patient. There isn’t anything you can do about it anyway. It does not pay to fret about things you cannot control.

    If you get no cooperation, go out and get a job if there are no children at home, and you don’t already pull in a paycheck. Don’t ask. Just go out and find work. Find a second job if you can. That will help you psychologically. It may force the other person to face up to reality.

    What signs of the implosion do you see? What do you believe the chances are of it happening by the end of the year? I’m curious about your thoughts…..

    Watch commodity prices – when they start to rise, that is a sign that currency is being converted to real value – which means the market believes inflation is coming – which means economic disaster is around the corner.

    PS: Commodities showed a big rise today, as a response to the Fed buying $300 billion of government debt yesterday. This is different from the bailout. This money goes directly to government to spend like drunk sailors. No waiting on banks to lend, this money will hit the government economy essentially tomorrow and the real economy in about 4 months. That is your window. But this is just Phase One – a little taste of what will be coming.

    Other things, which require budgets, is food prices. Food economy rests across a broad base – land prices, oil prices, weather, shipping, storage, employment, etc. It is the bellwether of the economy. When the staples start rising in prices, big problems are happening across the economy. The CPI index rose 3% – the highest increase in 15 years.

    Other signs – lots of ’emergency preparedness’ government commercials are on TV. On the right side of the government’s mouth, they are saying loudly “We got it handled!” – but quietly, from the other side of the mouth – “get ready, we’re outta control!”

    But the big signs are always out-of-sight of the normal view of the normal citizen. But, fortunately, I have good eye-sight economically-wise 🙂

    Please bear with me, as I explain the trigger that will explode the greatest inflation or greatest depression in world history –

    With all this talk of trillions in bail out, why haven’t we seen the inflation now?

    There is a reason why the banks are not lending money to the public.

    Instead of taking the risk of lending, the banks are depositing hundreds of billions of dollars with the Federal Reserve.

    Beginning last October, the Federal Reserve began paying low rates of interest on money above the legal reserve requirement that banks must deposit at the Federal Reserve system. This new policy was not to go into effect until October of 2011, but the banking crisis forced the Federal Reserve to speed up the legal timetable. Congress, of course, did nothing.

    Because the banks place their money with the Federal Reserve, this money is taken out of the fractional reserve process.

    The Federal Reserve System does not lend this money to borrowers. It is not part of the FED’s balance sheet. The FED keeps the money in reserve. The banks were initially paid only 1.25% for these deposits, and this was dropped to 1% before October was over.

    The new Administration understands that something is wrong. Advisors know the banks are not lending.

    They do not seem to understand why the banks are not lending.

    They are not lending because bankers are fearful that they will not be repaid. They are so terrified by this economy that they would rather put the money with the Federal Reserve System, receive essentially no interest, and suffer losses on interest paid to depositors.

    They would rather lose a little money, month by month, then put their money at risk by lending it. This gives some indication of just how bad the present economy is.

    So hundreds of billions of bailout money sits idle in the Banker’s bank, the Federal Reserve.

    The government will not allow this to happen very long – without lending the economy will fall into a great depression and no government wants this as it will stop the government from funding itself (it funds itself primarily from inflation – therefore, deflation is the equivalent of taking a pay cut, and government will never take a pay cut. Thus, it must inflate or raise taxes to unheard of levels. The latter is political suicide).

    Thus, the government will force the banks to lend. The Federal Reserve has indicated it will reverse it’s policy, instead of paying interest on excess deposits, it will start charging negative interest on these excess deposits.

    The banks are in business to make money, not lose money. They will start lending, hard and fast. They will not take the money out of the Reserve. They will lend against it, using the Fractional Reserve system. It allows a 9 to 1 lending – for every dollar in the Reserve, a bank can lend 9 dollars, made out of thin air.

    If approximately $20 billion in Federal Reserves was enough to place all the currency of the United States economy, imagine how much currency will explode into the economy with $600 billion in reserves. We are talking +2000% annualized inflation rate – yes, you read that right.

    The date of the implementation of this policy has not yet been set. Today, the Federal Reserve is paying 0% on the excess deposits – with no change in the lending attitude with the banks. Therefore, I do not believe the Fed will wait much longer before they pull the trigger.

    When that happens, not one person in a hundred thousand will realize it. It will be a side note on a back page of boring press release. No pundit will make note of it. No Main Stream Media (MSM) news will announce it.

    But that will be THE trigger that changes the world as we know it.

    I will let you know, here on USWep’s blog, when that happens.

  30. Black Flag says:

    http://www.guardian.co.uk/business/gallery/2009/jan/16/unsold-cars?picture=341883529

    The extent of the global economic collapse.

    http://www.chicagotribune.com/news/local/chi-foreclosure-html,0,7636927.htmlpage

    The extend of the American collapse.

    http://research.stlouisfed.org/publications/usfd/page3.pdf

    The government response – if that doesn’t knock out of denial, nothing will.

    • Well, BF, you get another kudos from me, you nailed that one exactly on the head.

      My advice to those who want to prepare for the coming onslaught of inflation is to learn how to grow your own food, bake your own bread(not the bread machine kind), and cook your own food from scratch. Those with Boy Scout and Girl Scout experience have an advantage, likewise those with FFA experience.

      Hunters and fishermen also might have something of an advantage, but with all this talk about ending our second amendment rights might hurt those of us who do that. We have a longtime friend who is an excellent shot with a crossbow and long bow.

      However, I tend to be an optimist, in that I actually hope and pray that the majority in our nation wake up in time to stop the boat from sinking and we all start rowing in the same direction.

      The change we need is not the change that is being done to us right now.

  31. It’s good to read someone beside Rush Limbaugh with some common sense. All this outrage over the bonuses at AIG is a red herring being fomented by the White House and members of congress to misdirect the public’s attention. The blame for these bonuses clearly lies at the feet of those in Congress and the Obama administration that deliberately inserted language in the bailout expressly allowing these bonuses. That is the real scandal.

  32. Black Flag,

    Thank you for your response. I plan to save it for future perusal. As far as planning goes, I’ve been doing that. I’m better off than most people in that debtwise, All I have is a mortgage under 70k and a car note of 10k. My living expenses are almost nothing. I live on a military base on a remote island, working for a civilan contractor. My quarters consist of a room that is slightly smaller than 400 square feet, so stocking up on ‘stuff’ isn’t much of an option. I’m concerned that when the collapse comes, the supply ships and air craft will not arrive. There are plenty of fish and coconuts around, and the water comes from a well. I believe most of us would survive. But what then? Will there be a United States of America, or will the Russian analyst be correct in his prediction? I’ve already purchased a map of this part of the world, and intend to start researching other island nations. I know of one nearby where only about 10 percent of the population is on the cash economy with the remainder living of their small farms in the forest. A place like that wouldn’t notice the collapse as much as most ‘advanced’ economies. Seeing as I’m likely to be stuck here anyway, I might as well keep that as an option. Of course, my boyfriend is convinced that Obama will come through and save the day. That’s okay, I’ll make my plans to include taking care of my man. In spite of his denial, he’s a good and kind man, not mention a very talented engineer who fix damn near anything. His abilities will be useful to many people someday.

  33. esomhillholler says:

    The thing that amazes me is that the same idiots in Congress who are howling for AIG blood are the same ones who caused this disfunctional garbage to begin with. They take out the clause that would have stopped the bonuses, and install onw that allows them. (Dodd) When you get right down to it, Congress began the whole financial mess we are in to begin with beginning in 1994. Now that it’s blown up in their faces, they are playing the blame game. The fact is, they ALL caused it. Democrats AND Republicans alike. Basically, it all boils down to the fact that all of them are doing what their PAC’s and Campaign contributors want them to do. This will NOT stop until all the Jackasses are voted out and we start fresh. Maybe not even then. But definitely not as long as Those such as Obama, Pelosi, Reid and Frank are there.

  34. While I totally agree that we are dealing with the Wizard of Oz here, “don’t pay any attention to the man behind the curtain.” I would really like to know when it became ok to pay bonuses and give golden parachutes to people who tank their companies.

    When I grew up, I was taught that success is rewarded, failure takes care of itself. Somewhere in the past twenty years the difference between success and failure has been clouded over and it seems by people you would think are on our side. Where in the hell did win, you win and lose you win come from anyway?

    You will never be able to get out from under this mess we are in until stockholders rise up and boot out the bastards. You will never reform the tort system until you initiate loser pays. This is Darwinism of the best sort.

  35. There was a great story done on AIG and the government in Rolling Stones. I am normally not a fan of the this mag, but the guy who wrote the story really called out the people who screwed it all up. Reguardless of party. He spent a year researching and studing AIG from every angle. It was really eye opening to read.

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