What it is like Trying to Reveal Truths in the Blogsphere

“And if all others accepted the lie which the Party imposed—if all records told the same tale—then the lie passed into history and became truth. ‘Who controls the past’ ran the Party slogan, ‘controls the future: who controls the present controls the past.’”

“In a time of universal deceit, telling the truth becomes a revolutionary act.”- 1984, George Orwell

Wonder what it is like for the blogsphere to weigh in on issues of the day? My colleague Lee Adler wrote this classic on the Fed issuing an absurd two faced meu culpa, white wash and misdirection at 6:00 PM on Friday afternoon.  Lee then moves to the NY Fed site and writes this zinger, which was quickly censored.

O Rio de Janerio

I am spending about five weeks in Rio de Janerio. This is my fourth stay in the last four years, totaling about 15 months. My Portuguese is now strong enough that I have little trouble viewing Globo business news. There are lots of stories about excessive use of installment and credit card debt here. The message is that a bunch of debt slaves are in the offering, and western banks have been involved.   From FT:

The Occupy Movement and the Counter Reaction

It looks like a strident counter-revolution is in play against Occupy Wall Street using police state tactics and propaganda.  In this clip police at UC-Davis  pepper spray sitting protesters like they are so many insects. In Portland, a policeman decides to pepper spray a protester point blank in the face.  Next an absurd lobbying piece from the American Bankster Association is out (more detail here), labeling the OWS movement a nexus between radical right wingers and left wingers. Notice the labeling here as if somehow it is radical to protest against kleptocrats who are then portrayed as what exactly, moderates, good folks?

MF Global: Another Symptom of a Grand Theft Nation

Monday marks two weeks since the news broke that MF Global  "removed" unencumbered segregated funds from customers' accounts. Segregation simply means that customer deposits can't be mixed with the firm's own money or used to cover firm expenses. They must always be available for customers to trade with or withdraw at a moment's notice. During that time MF Global customers have found themselves locked out of reduced equity in their accounts. Worst of all, even MF Global customers who held no open futures positions and only cash and unencumbered assets, have found those assets under the control of the bankruptcy trustee.

Chaos in the Land of Oz

My interview Chaos in the Land of Oz.

Lots of Falsies and Fascists in the Land

I have been participating since early on in the Occupy Wall Street movement and have to say that there are a shocking number of fascists  in this country now. Not just stupid, not just angry, but actual fascists like Ben Stein (read an example of pure nasty evil written for all the world to see), Anne Coulter [Kudlow stoops to bringing her on as attack dog] and Rush Limbaugh.  After you read the asshole Ben Stein "you little gnats quit annoying us" diatribe, listen to what a real social critic, Lee Camp has to say about it all. The contrast couldn't be more striking.   They influence a whole tribe of fascist rabble, who buy into these wedge-issues nonsense. Glen Beck, another fascist, showed his true colors recently by saying "they are coming to drag you into the streets and kill you." Here we have an incredible contrast between Asher Edelman,  former Wall Street tycoon supporting OWS (very insight), and Judd Gregg.   This crony and stooge (now with GS) is the very embodiment of what the OWS Movement is all about.   Sounds like The Movement has the kleptocracy running scared -- not of being killed, but losing power. And what's with this crazy Hermann Cain as a contender crap? Answer: Yet another wedge-issue operator.

Mainstream Media is Clueless About Occupy Wall Street

Occupy Wall Street has now gotten the attention of the people who control this country. Accordingly they are rolling out the Ministry of Truth to try and interpret what it is all about.  Immediately the discourse turns to trivial two-party partisanship matters. The remarks are just ridiculous and sickening, including that this is a movement to reinvigorate Presidente Hopium, what nonsense.   Herman Cain had the audacity to twist this into a criticism of people who don't work, and who seek handouts. No Herman, you have it  ass backward, this Movement is about your cronies free riding at the trough and seeking handouts.

Chief Joseph Awards Warrior Head Gear to 700 Arrested Saturday on Brooklyn Bridge

Occupy Wall Street is gathering steam. 700 arrested on Brooklyn Bridge Saturday. God bless you, and Chief Joseph awards you the war headgear.

Separately an Occupy Wall Street publication is out and is being funded by grass roots efforts. I donated $125, and they have $33,000 to date. If you can't be arrested on a bridge, here is where you can donate.

Number of news sources covering this story:

Attacks on Green" Tar 'n Feather Award Goes to Fox News

 "A warmer atmosphere has more energy, contributing to heat waves, tornadoes and other extremes. Even heavy blizzards come from an atmosphere packed with extra moisture by global warming. Years like 2011 may be the new normal."  -meteorologist Jeff Masters of Weather Underground

The Circus is Back in Town

Hopium really has a propensity to spend and borrow. In the case of the "jobs bill" he goes right to the heart of it by giving a costly payroll tax break (cost $175 billion) to employees. I presume the Republicans could buy that one, hook, line, and sinker.  The part about individual payroll tax looks tricky as he proposed cutting it in half, cost $65 billion.  Perhaps I missed it, but what about the payroll tax that is expiring, that was $120 billion? Does this add to that?   These numbers nao combinam. The UI extension was $49 billion, so that one seems to be cut back.  Still those measures using the possibly trick numbers provided total $284 billion. In addition has proposed what can only be called stimulus junior, with pork barrel of about $140 billion. This will be balanced by "hoped for revenues", and spending cuts in the outer years. You can rest assured that the FY 2012 budget deficit is going into orbit even if some of these measures are enacted. Talking heads give both the employer and employee payroll tax cuts good odds.

Retribution, More Phoniness, or a Master Plan?

The "bargaining phase" of the bankster story swung into full gear as the FHFA (representing Freddie and Fannie)  brought a suit for $196.6 billion against a cabel of 17 banks. The number that really stood out was $57.4 against the Bankamerica complex (includes Countryfried and Merill Needs to be Lynched).  Absent on the list was Hopium's new buddy, the Oraface of Omaha's firm,  Wells Fargo. I know there is cynicism that this is just another phony political ploy, only to be dragged out and settled for some nominal amount after the 2012 election. I think the agenda is different and will lead a wipe out of shareholder and bondholders of,  and a defacto nationalization of Bankamerica.   As far as the other targets of the suit go, the settlement will largely involve debt forgiveness and nationalization where necessary.

Debt Jubilee or Night of Living Dead

Charles Hughes Smith posted a must read essay by Zeus Yiamouyiannis (ZY) that describes to a tee the maladjustments and absolute need for a debt jubilee or reset. He well describes the damaging, dead end track of the current see no evil, hear no evil, speak no evil path. This is one of the first commentators who suggests using the term "fake assets" as superior to "toxic assets". I have always used the economic term  "fictitious assets or capital".    In his words, "Debt/credit that cannot be paid back is never an asset and is always a hot-potato liability (needing to be foisted to a greater fool to garner “profit” and transaction fees)."   He ends with the real solution, " Take our financial junk out of the global attic in boxes, put them out on the front lawn, and see if anyone wants to pay a few bucks for the various items, give away the leftovers to anyone interested passing on the sidewalk, and recycle, donate, or dispose of the rest. It’s a moving sale, and if our economy is going to get moving, maybe we ought to have one.”

Warren Buffet, Buffettering Front Man

The Oraface, I mean the Oracle Warren Buffet, who claims to have Eureka moments in the bathtub, is the chief front man for the crony capitalist racketeers. With an election year approaching and Goldman Sachs Lloyd Blanketyfiend persona non grata,  good ole Warren can be high profile, meeting with the Presidente, acting democratic,  kind of populist [Stop Coddling the Rich] , and working his schemes. With various analysts suggesting that Bankamerica needs to raise  up to $50 billion,  Warren flexes his muscles and steps up with a cool $5 billion.   Just for the record,  the Oracle is now underwater on his GE and GS warrants.   Also consider that he had a draw down of over 50% of GS before the Gumnut bailed out the whole system.

Day of Rage

A protest is being planned for Sept.17, called the day of rage. The main thrust is to take money out of politics, and restore basic democracy. To contact the organizers to get involved go here.  An even more aggreesive Occupy Wall Street effort is here.

Some Trends Afoot

I think my predictions of the last year are in play, and some (such as the China slow down, and Japan's slow recovery) are in full swing.  Pulling back the curtains on the Wizard of Oz is in process, and without a doubt Wall Street refuses to let go on this one.  They run right back into to every bailout development and ever hint of money printing. This is increasingly a costly trade.

Water Roulette, Wash, Rinse, Repeat

Good quality water sources in the right locations are the key to basic civilization, let alone even minimal economic growth.   Like hydrocarbons,  water is now the weak link to the maintenance of 7 billion people on the planet.   Once abundant aquifers worldwide are being rapidly depleted,  and resolving this is expensive and requires growth controls and sacrifice.  Growth at any price strategies such as used in China completely fracture in this kind of environment. There is plenty to write on this topic but I will warm up with a little on two trainwrecks:  North China and the American Southwest.

Collapse Outcomes: Hitting the Food Brick Wall Part I

"Collapse is the rapid simplification of a society." - Joseph Tainter

Jeremy Grantham has put out several articles on finite resources that are absolute must-reads: "The Days of Abundant Resources is Over" and "Separating the Dangerous from the Merely Serious." I also highly recommend viewing the National Geographic film "Collapse," which is focused on the theories of Jared Diamond. This can be found in the streaming section on Netflix. There is also a book and lectures by Dr. Joseph Tainter called "Collapse of Complex Societies."  Simply put, this is not the realm of paranoia. There is considerable academic literature about it. I have devoted much of my efforts to banksters and kleptocratic looting, but this collapse issue is essential to understanding the blow-back effects of rule by a kleptocracy, and I will focus regularly on it as a powerful trend.

Following Kleptocrats' Forked Tongued Talking Points

For me, the kleptocrat's talking points can be spotted a mile away. Notice first that as part of the debt deal, unemployment extensions and the 2% payroll tax increase are indeed planned to going away. I posted repeatedly that this is about the only potential already scheduled austerity apparent in the debt deal.  But without batting an eye, minion Presidente Hopium is back at the teleprompter promising to inject these programs back into the agenda after the Congressional vacation. Whoops. There goes the $1.08-trillion CBO baseline FY 2012 deficit. Hopium will posture for "taxes on the rich" to offset this. Of course, the GOP kleptocrat talking points will be no new taxes for the plutocrats. Wash, rinse, repeat.

Asleep at the Switch and Constitutional Crisis Up Next

"Nobody can govern, everybody intrigues and plots, and the relation of government with it's adversaries isn't about a fight, but of conspiracy"  - my translation from Portuguese from the book 1822 describing the government of Imperador Don Pedro I in Brazil of the 1820s.

The CBO has come out with scoring showing what a embarrassing farce in real spending the Boehner plans is, no real impact in the next few years, and only $851 billion over ten years.  Incredibly a clueless Presidente Hopium, who has no proposal of his own and apparently has done no real work on one,  has hurriedly already promised to veto the latest Bonehead heavy on spending plan that was just handed to him on a silver platter! This is what the last several weeks of negotiation has been about?  Given the corrupt political and very costly nature of American government one can only attribute this to the extraordinary amount of incompetent negative selection that has been put into play.

Charles "Buddy" Roemer

At first glance the political landscape for the Republicans seems littered by me-too white bread clowns.  However, I have a hunch there is a new candidate who bears watching, not so much as the eventual nominee but as someone who could heavily influence the discourse.  Although I sense nothing short of revolution and hitting the streets is going to work at this point,  I think Presidente Hopium and the Republican  rabble  are going to have a tough time if this guy emerges in a significant way, which is what I am predicting.  The candidate is Charles "Buddy" Roemer who served four term as a Boll Weevel Democrat in the 80s, and as a one term anti-corruption Governor of Louisana in the early 90s and then changed parties lost his reelection.  He was a key campaign adviser for McCain in 2008,  and has spent the last decade and a half building two community banks in Louisiana.

Unbridled Faith in Hubris Obliviana

Friday looked like one of the strangest market days yet. Going into the weekend and hours before the wheels fell off the fiscal negotiations, the markets just drifted cluelessly higher on extremely low volume and volatility. The intermediate-term volatility, the VXZ, is now within earshot of breaking to lowest number witnessed back in 2007. The same is true of the 2-year T-Note yield.  This goes beyond cognitive dissonance. There is no fear, no worry in this market. It's completely brain dead and comatose. It's ironic given the end-of-the-line ungovernable situation we are witnessing. I have compared it to the last days of the Soviet Union ---- if that system had financial trading markets.------- The best comment I've spotted on the causa proxima of all this was made in the public feedback section of another site. Someone who goes by the name "sbernard" used the term "hubris obliviana." It's such an apt descriptor that I'm going to adopt it as a Winterism.  Wrote sbernard:

America Under So Called Progressive Barrick Obama

What has $4 trillion in deficits under Presidente Hopium accomplished?

Stock of Tiffany since the Presidente Hopium inauguration: up 400%!!



13 million more Americans on Food Stamps under Presidente Hopium;

Corporate Tax Avoidance

Not to pick on just Microsoft, but they typify the method that large US multinational use to lower taxes, and thus "beat on earnings". This is rarely if ever discussed. Here is MSFT's income tax discussion.  They lower their effective tax rate a full 7% by  taking foreign income to $19.2 billion from $15.4 billion, and lowering US income (and expenses) from $9,6 billion to $8.9 billion. Today MSFT is effectively a 68% foreign operation.  In return they get all the benefits of stimulus and minimizing the costs of supporting the US system.

Radio Podcast on Fiscal Suicide

Lee Adler and I conduct a podcast on the gang of six fiscal developments, and I review the FY 2012 budgetary nightmare.

Fiscal Suicide, Part II: A Swirling Motion

The debt "negotiations" are going on in a vacuum, with little detail about what is on the table for "spending reductions" or revenue enhancements.  For example, on this process over the weekend (in Part I of this article), I gave a list of high-impact  FY 2012 budgetary roll-off items that, if extended, would constitute actual spending increases over the baseline fiscal budget. Yet, nowhere does one hear about how these specific items will be treated. Everywhere you turn, it's all about rhetoric with nobody discussing any specifics.  Among the rubber-meets-the-road issues, one to look for would be actual cuts, even small, for farm subsidies. Of course, this sets the stage for a murky and non-transparent headline when the debt ceiling is raised. This can be played as "saving the American way of life as we know it."  The smoke-and-mirror trade is at heart attack level now, first with so-called stick saves of Greece, then a phony European bank stress test, and now a phony "debt ceiling" scam. There is not even the slightest effort at credibility anymore.