HALF-FULL REPORT 08/13/10

Of all the headlines in all the news publications on the planet this week, there’s one that struck me as the strangest.  In today’s (8/13) British newspaper The Independent, the headline blares out at you:  Why Is The World Unmoved By The Plight Of Pakistan?

Just to make totally sure you get the guilt-trip, right at the top of the article is a close-up picture of an old woman’s tear-filled eye.

There is, of course, not a word – not one single word – in the article of how the US Navy immediately began rushing aid to the flood victims.  The floods began July 29 and by August 3 Navy helicopters were bringing in supplies, including halal – Arabic for kosher – meals.  Not a single word of the US spending $84 million in Pak flood relief.

The story is strange for two reasons.  First, "The World" in the headline clearly means "The West."  Why are we the world?  Did all the oil-rich Moslem countries like Saudi Arabia (which spends billions on turning Pakistani boys into terrorists in their Wahhabi medressahs or Moslem indoctrination schools) just fall off the edge of the earth?

Zakat or giving alms to fellow Moslems in need is one of the five basic obligations that one must perform to be considered a Moslem.  Where’s the Saudi zakat, or the Libyan or Emirati, for the Paks?  The Independent headline should ask why is the Moslem World unmoved by the plight of the Paks – but then, its purpose is not to ask a legitimate question but to run a liberal guilt-trip on us.

Here’s the second reason.  Instead of this guilt-trip headline, why isn’t there a headline in any major news publication asking:  Why Is Obama Unmoved By The Plight Of The Unemployed?

Far – far – more heartbreaking for Americans than Paks up to their butts in mud is the sight of their fellow Americans hungry, broke, and desperate for a job they can’t find.

Yet Zero doesn’t care – he really actually couldn’t care less.  He’d rather be playing golf.   He has no intention whatever of  increasing employment other than put more people on government handouts (or government jobs which is the same thing). 

Most folks intuit this to be true but don’t understand the actual mechanism engineered to make it true.  This even includes the best editorial writers in the country, at IBD (Investors Business Daily).

In The Last Option this week (8/10), they laid out the facts:  that after slashing Fed interest rates to zero and printing over trillions of monetary stimulus, unemployment is still nightmarishly high ("officially" 9.5% but it is actually over 22%).

Further, the Fed’s additional pump-priming announced this week won’t work, the IBD says, because "the Fed has already pumped an estimated $2 trillion into the banking system to encourage lending… but it didn’t boost real economic output."

But how come?  Trillions of new dollars and yet, no more business or employment.  What’s going on?  A scam between Washington and banks, that’s what.

Go into any bank.  Tell them your credit is good, really good,  you want to expand your business and hire more people, so would they please give you a loan to do so since they have all this money they are getting at zero interest to loan out.  The loan officers will laugh in your face, turn you down flat, and refuse to explain why.

It is a flat-out lie that the Fed pumped trillions "into the banking system to encourage lending" – because the banking system is flat-out refusing to lend.  Instead, the banks have a deal with Zero:  they get to borrow money at near 0%, in exchange for which they use the money to buy US Treasurys that pay out 2 to 3%. 

The pumps that being primed are the banks’ and the government’s, the money stays in a closed loop and never gets lent out.  No new businesses, no new jobs, but the government and the banks get financed. Nice and cozy.  For Zero, financing his debt with a banking scam is infinitely more important than jobs and a paycheck for regular Americans.

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Zero’s no-jobs scam may be coming to an end, however.  The famous investor and author of The Black Swan, Nassim Nicholas Taleb, announced this week (8/11) that he is "betting on the collapse of government bonds," those of the US in particular.  Taleb gave 2-year T-notes as an example, which are around a half-percent now.  Even borrowing Fed money at almost zero percent doesn’t get you off the ground with a less than half of one percent profit.

For a comprehensive and detailed explanation of why Taleb sees this coming, here’s an interview of economist John Williams.  His website, ShadowStats, exposes the real numbers behind the lies of government statistics.

Williams is a sober guy, not flamboyant or hyperbolic.  He sticks to the data and the facts.  He does his best to be apolitical.  Here he is predicting an "accelerating pace of downturn in the next couple of months," that  "the numbers will turn sharply worse."  These numbers include unemployment, which is going to get "a lot worse" than it already is.

He’s just getting started.  The recession we are in now will devolve into a true depression (at least a 25% decline in GDP), driven by hyperinflation with a loaf of bread costing $10,000.  This will result in "the cessation of normal commerce."

You would think one obvious solution is to buy gold, but the problem, he says, is that it’s "not widely held by the population in general."

(I sure am glad that I and a small group of TTPers have developed a solution to this problem.   If you’d like to join us, let me know at [email protected].)

Williams thinks the odds are "extremely high" that this will break within six months to a year from now, creating "a perfect storm for the US dollar."  It’s a storm we’re all going to have to ride out.   

The horrible truth (which Williams doesn’t mention because he stays away from the politics) is that this perfect storm, this destruction of the American economy, is being done on purpose by Zero and the Democrats.  It will come under a Republican Majority in Congress, upon whom the Dems can blame for it.  Then they get to be back in power with complete fascist control over our lives.  That’s their game plan. 

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Williams, however, doesn’t mention the solution to hyperinflation caused by government debt.  Republicans are realizing what the Dem game plan is, and what their solution must be:  Defaulting on the debt.  Wipe out the debt, wipe out the existence of those trillions of fiat make-believe dollars, wipe out thereby the ability of the US government to borrow and finance more debt – and hyperinflation is stopped in its tracks.

Default not only ends hyperinflation, it ends funny money make-believe fiat currency.  Money, the dollar, will have to be real, as in backed by gold. The GOP is about to become the party of DD&G – Defund, Default, and Gold.  That’s the silver – well, golden – lining of good news in this.

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In fact, the news is getting to be so good that it’s making TTP’s Jack Kelly nervous – he has to keep pinching himself to make sure he’s not dreaming when he sees the size of the electoral tsunami about to wash over the Dems. 

When you look at the polls this week – Fiorina over Boxer in California by 5 points, Buck over Bennett in Colorado by five points, Blunt over Carnahan in Missouri by seven points, Portman over Fisher in Ohio by seven points, literally hundreds of Dem House seats in jeopardy, a score of Dem governorships, it goes on and on – it’s easy to start sweating, to start asking, can this possibly be for real?

Yes, it is.  These are historical times, folks.  This is real history-book history we are living through, that we are creating.  Think about that.  History doesn’t just happen.  History is created, created by folks willing to create it.  That’s us.  That’s millions of Americans no longer bamboozled by Zero and visions of government sugar plums, millions of Americans who want their country back and are going to take it.

It’s we who have fire in our bellies, the Dems who are disunited, depressed, and demoralized.  This is really fun, boys and girls.  This is thrilling.  We are going to get our country back again, our America.  Believe it and live it.  This is history that our grand children and their children’s children will read about in school.