It’s one of those red-letter days when you absolutely have to go over to MarketTicker and read the entire article. Here are few prime quotes that go hand in hand with the ‘Dominoes’ post and what your own common sense has been telling you for years.
I don’t know how many of you have RSS’d MarketTicker’s feed, but if you haven’t, maybe you should think about doing that post haste.
I just ran across an article from Sunday, (I know…I’m underwater right now), and Mr. Denninger, once again, explains what is happening with the economy in a way that matches up with what we are seeing in our daily lives.
Here’s a great excerpt, make sure to go over and read the entire article with accompanying visual aids because it gives the accurate breakdown of what is happening with our economy.
More than two years ago I wrote a letter to all 535 members of Congress in which I implored them to find and set aside $200 billion in actual cash – not for “hand outs” in the traditional sense, but rather for the provision of emergency food, shelter and clothing, possibly to be provided on formerly-closed military facilities for up to 25% of the American population for a period of one year or more. They of course ignored that entreaty to the best of my ability to discern, but the reason for it was clear to me at the time and still is – a hungry and homeless population is a dangerous population, and “discontent” when married to an empty belly can easily turn to armed rebellion, especially if and when the “rabble” discern (and they eventually will) that they have been systematically robbed for decades by Wall Street, K Street and 1600 Pennsylvania Avenue.
Today we are $1.5 trillion poorer than we were a year ago and yet we’ve fixed exactly nothing. The banks have not been forced to write down their bad loans and/or jettison them, over-levered consumers have not been forced into bankruptcy where they could throw off the anvil around their necks and the structural employment and entitlement problems have not only been left un-addressed they have been made much worse. We are on the cusp of adding to the idiocy of Medicare Part “D” with so-called “Health Care Reform” that will impoverish more people and drive even more of our nation from the workforce. We continue to allow nations that abuse their working populations (such as China) to be the source of our “offshored” production and thus the destruction of our working class citizens, we demand “easy money” and bubble economics even when it has been proved over the space of two decades to result in fewer people working as a percentage of the population rather than more and we continue to pray at the altar of debt leverage even though it has resulted in two horrific crashes in the last decade and, should we not quit genuflecting before the bankster mob will result in a third that may bring down our government and economic ability to survive.
How long can the plates be kept spinning? Hell if I know. I didn’t think they’d get away with it for this long. The rest of the world figured it out almost immediately and stopped buying our debt on a net basis, but The Fed stepped in and played handmaiden to Congressional and Administration idiocy instead of administering a stern 2×4 to the head. I suspect that The Fed’s motivation stemmed from Bernanke’s belief that if he “just gave it a bit of time” things would turn around, but now we’ve had two years of “a bit of time” and yet consumer credit demand is through the floor and the labor participation rate shows that all we’ve done is shift more and more people as a percentage of the population to the dole. This inherently cannot continue or it will lead to the collapse of the government’s ability to fund itself via taxation, as these facts and figures are not hidden from view – policymakers and investors worldwide that have to buy our debt can see this and about six months ago they gave up.
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