As the world collectively muddles through 2012, it
is has become increasingly apparent that we still don’t get it. Even
after the collapse of 2008 and the completely fabricated and bogus
‘recovery’ that the lapdog presscorps
still insists is ongoing, plus the various financial and economic
‘accidents’ that have happened along the way since, such as MFGlobal and PFGBest, plus the
annexing of entire countries by the banking syndicate (Greece and Italy for
starters), we still don’t get it. We are Rome. Obsessed with bread and
circuses such as government handout programs and the Olympics and NASCAR,
we’ve taken all that is abhorred by productive societies and made a
center stage spectacle of it.
Many readers and clients have commented to me that
this is the strangest recession they’ve ever seen and they are right.
America is hurtling in multiple directions simultaneously, at least from a
socioeconomic perspective. In the same country where you have families living
in cars and tent cities because of job losses, foreclosures, and other
manifestations of a system gone awry, you’ve got areas where people are
living the good life and spending money like there is no tomorrow. Much of it
is borrowed, but that is of little significance to a generation that has been
schooled and brainwashed into believing that debt doesn’t matter.
Utopia is available for easy monthly payments. Paying back the loans is never
really an issue or even something to be contemplated. If the government can
do it so can we, right? We still don’t get it.
Not Just an
We’re not alone in our near complete lack of
understanding either. Europe, the poster child for greed and avarice, is further
along in the game. Their currency has, for all intents and purposes,
collapsed. As one country after another succumbs to consequences of its
misunderstanding, the global banking syndicate stands ready with open arms to
offer the bailout money in exchange for what amounts to indentured servitude.
On a global scale, we are returning to Feudalism, and anyone who actually
takes the time to do a little research will quickly conclude that Feudalism
and the concept of the American circumstance as was envisioned by our
founding fathers are incompatible.
And the Feudalism is becoming built into the
American psyche at younger and younger ages. The biggest crisis in this
country right now in my opinion is the student loan crisis and nobody is
talking about it. Making monthly payments has become a part of the formative
years for most of our young people these days and if you think that is an
accident, I’ve got some great oceanfront property in South Dakota that
I’ll sell very cheap. Kids learn their habits from their parents and as
a group we’ve set a terrible example. Hey parents, knock it off. Start
living responsibly and within your means. Model wise financial behavior for
your kids so they don’t end up in debt up to their eyeballs like you.
You’re doing your kids a huge disservice. And if you think you’re
going to be loaded enough to care for them their entire lives for the most
part you are grossly mistaken. We still don’t get it.
Sure Bernanke went on television and ensured us that
all is well and that our kids owing over a trillion bucks to banks is quite
all right even though beyond waiting tables there are precious few
opportunities for many of them. And we know how accurate Ben was on the
housing and mortgage mess. About the only thing he’s been right about has
been the ‘jobless recovery’ he promised back in 2009. Still think
he’s incompetent? I contend he knows exactly what he’s doing as
do the rest that actually set global financial and economic policy. The
Congress is nothing more than a conduit for carrying out the policy
directives of the global banking syndicate. You don’t believe me? What
about Hank Paulson going around threatening Representatives with martial law
in America if the TARP bailout wasn’t passed?
Sadly, America will fall just as Europe is falling.
In many ways we’ve already fallen. Our sovereignty has been ceded to a
banking cartel that creates its bingo chips from nothing, charges us to use
them, and requires us to expend land, labor, capital, and scarce resources in
order to make our monthly payments as a nation. Yet we sleep, totally unaware
of the pillaging of the past 100 years. There is not a better example of the
frog and the hot water analogy made so popular by those who have attempted to
wake people up from this fatal slumber. We still don’t get it.
Ask 10 people you know about MFGlobal
and see if anyone can give you the bottom line. It was labeled by the media
as an accident and an aberration, but it is much more than that. It is a
blueprint. It was a trial balloon designed to see how much outrage would flow
over the fact that over a billion dollars in client funds was stolen and not
one single arrest has been made.
An appeals court in the US has
already ruled that clients in these types of situations have no
recourse; that the actions of Jon Corzine and his good buddies on Wall Street
are not only acceptable, they’re legal as well. And the outrage?
Nonexistent. Given the fact that the average 55 year old has roughly $26,000
saved for retirement, a billion dollars makes up the retirement accounts of
over 38,400 such individuals. And there is no outrage. Then there was another failure,
this time ‘only’ $220 million disappears. That failure barely
generated any attention whatsoever from the media and negligible outrage
outside the circle of folks who really pay attention to such matters.
Let’s take this a step further. Just in 2008
alone, we had the Fannie/Freddie mess, AIG, Lehman, Wamu,
Wachovia, Bear Stearns and several other notable failures. To date there has
not been a single arrest made, yet Bernie Madoff and John Sanford went down
for kiddie-sized Ponzi schemes by comparison while the real felons continue
to do business as usual, even stooping to rubbing our faces in it much in the
way Jamie Dimon smirked
his way through JP Morgan’s PR stunt when he went
on ‘Meet the Press’ and talked about how the bank would still
make a pile of money despite its ‘mistake’ that cost untold
These are bank robberies perpetrated by bankers.
They make Butch Cassidy and John Dillinger look like amateur petty thieves.
Pure and simple. There is a clear blueprint right here for stealing every
single fiat dollar from every single American. And when you think of the
nearly 1,000 trillion in notional value of cancerous
OTC derivatives, which is enough to wipe out every IRA and pension in this
country roughly 120 times. We can all remember back in the days of the cold
war hearing about how both the US and USSR had enough nukes to wipe out the
globe several dozen times. We’re dealing with this identical situation
with derivatives. They aren’t even weapons of mass financial
destruction; they’re weapons of total financial and economic
disintegration. They’re global game changers and wealth redistributors
that stretch across numerous areas of financial
impact. And another reminder, this doesn’t stem from
incompetence, but rather from the darkest parts of the human soul; those
given over to the idea that the world is not enough. To call these people
megalomaniacs would be a compliment.
If this resonates with the reader then it should
become readily apparent why the banking syndicate is waging an all-out war on
precious metals. They cannot be controlled in the long run, are not easily
confiscated, and unlike the paper FRN, are real money and an honest measure.
An honest measure to today’s banker is like sunlight to a vampire.
Jimmy Stewart is clearly dead. Today’s bankers are little more than
casino operators and loan sharks. But the funny thing is that while the
bankers wage a public relations war on precious metals and call them barbaric
relics, they themselves are accumulating them like crazy. Again, are we dealing with incompetence or psychopathic behavior?
Crisis – Proven as a Coup d’ Etat
I got into quite a bit of trouble with many readers
several months ago when I called the Eurozone crisis a series of financial
and economic coups. Now it has become clear that is precisely what they were
and are. They’re takeovers. Not in the traditional sense, which are
generally military in style, although we’ve seen a raft of those in the
Middle East lately, but rather these are economic and financial takeovers.
Allow me the latitude of an example. Let’s say Person A purchases a
home from Person B and pays cash for the home. Putting aside the lack of allodial title in
the US, we can assume that Person A now owns the property. However, over
time, the ability of Person A to continue on its current financial and
economic course is hindered by the fact that Person A’s five children
all live at home and for lack of a better term, mooch off their parents. The
situation deteriorates over time to the point where Person A now needs a loan
or a bailout of sorts to keep things going in the right direction. In steps
Bank C, who is willing to give a massive loan even though it knows Person A
will never be able to evict its five mooches, nor significantly change its financial
picture. Yet Bank C doesn’t really care because its loans are made from
money which is created out of thin air. So it writes the loan, even though
common sense dictates otherwise, and Person A signs on and now there is a
lien on the house (mortgage). Person A is now an indentured servant to the
bank. Six months later, the economic and financial situation hasn’t
changed because no meaningful reforms have been made (remember, the
entitlement situation is a mentality and a moral issue) and so Person A goes
back to Bank C for another ‘bailout’. Now there is a second
mortgage on the home and another lien and so forth.
The end result of this scenario is that Person A ends up dedicating more and more of his productive
energies and labor towards paying off the bailouts. In America we call this
situation prosperity because the party can go on, but thinking people call
this indentured servitude. I call it a takeover by the banks. They know full
well that the Eurozone situation is not fixable. They know that meaningful
reforms will be met with strikes, riots, and a general lack of economic
momentum because, after all, the entitlement mentality is fully ingrained in
the population. Yet the syndicate makes the loans anyway. Why? There is zero
risk to the syndicate because it creates its ‘money’ from
nothing. If the countries don’t pay, however, there are steep
penalties. And even if they do pay, the fruits of the labor go right back to
the syndicate. Heads the syndicate
wins, tails the Eurozone loses.
This is an identical replica of the situation that
now faces America. The Treasury is broke, yet the fed is more than happy to
buy bonds. Why? Is the fed that concerned with the welfare of the American
people? Is the fed really interested in clipping coupons on its plethora of
Treasury bills, notes, and bonds? Or is it more about power and control?
Again, the fed creates the money it lends to the people (with the government
acting as a conduit) from nothing. However, We the People have to expend
scarce land, labor, and capital in order to repay all this debt that the
government has assumed on our behalf.
Reversing the transaction, the government again acts as a conduit. The
various new taxes that have now been deemed ‘legal’ by the
supreme court (an institution that ignores its mandates does not deserve
proper noun status) are a way for the fed to be repaid with the government
collecting the payment as ‘taxes’ and ‘penalties’.
Distilling this, what is really happening is that more and more of our
productive capacity is going to need to be dedicated to paying off the
bankers. Just like Europe. You can certainly bet that when the next banking
crisis hits that our government, which is nothing more than a collection
agency for the bankers, will be more than happy to commit We
the People to another generation of indentured servitude to the bankers. Just
like Europe. When the Euro is ‘officially’ pronounced dead, the
countdown clock on the USDollar will begin and the
next domino will fall.
We still don’t get it.
Andrew W. Sutton, MBA
Sutton & Associates, LLC is a Registered Investment Adviser in the
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