The International Monetary Fund (IMF) executives know the European debt crisis is getting worse. They also know this crisis WILL REQUIRE help from outside the European Union.

So who are the targeted chumps?
Russia is considering up to $20 billion.
Ben Bernanke says NO WAY!

Short and sweet?
Don’t believe him!
Can you hear the printing presses at the Fed cranking up as I write?

Lindsey Graham (R – SC) claims Bernanke has NO INTENTION or authority to bail out countries or banks.
How wrong can Graham be and when did NO AUTHORITY ever stop the FED?

Soft Corruption?
Soft only because they have yet to be caught at harder stuff?

Should these ethically bankrupt servants of the people be bounced out of Congress on a rail after being tarred and feathered?
Yes indeed!
To those using the insider information they receive to feather their own nest it is “business as usual”.

Looks like it is now time these insiders get paid NO MORE than the average citizen and get tossed in the can for cheating the public while supposedly working on their behalf.

At what point did PUBLIC SERVANT change to CAREER OPPORTUNITY FOR LIFE?
Looks like it is high time THE PUBLIC voted in salary/perks for Congress members.
No doubt today a large number of them would be working for FREE.

Apparently Nancy Pelosi is a tad barked at the 60 Minutes report.

The Barack Obama debt ceiling dog and pony show goes on and on.
The new Republicans appear to be holding out for a real change while the Republican Elite would collapse like pin pricked balloon if they could.

So it is NOT QUITE business as usual.
The media is kicking, screaming and gnashing their teeth out in fear that THEIR DOLLAR EARNINGS are going up in smoke. All of this in the wake of “OH POOR middle class is going to do without”.
In all reality do without what?
Medicare, Social Security, Medicade, Medicare, Welfare or Unemployment?

That is the FEAR CHIP they use.

Let me point out something they all better FEAR.
Getting paid themselves while those programs lapse?

This President thinks he will escape the wrath of the voters over this?
He must have brain damage (to many youthful drug binges) along with his adviser buddies if he thinks the public is not savvy on these issues.

The Bipartisan Policy Center (the “BPC”) … an IN THE GOVERNMENT TANK … non-profit group that studies solutions to political problems? In a recent report they have laid out what might happen should a real shut down occur.

The scenario is indeed ugly and NO ONE wants mass economic hardship.
Can it be avoided?
Certainly not forever if spending does not stop.

This President, his administration and minions absolutely REFUSE to CUT SPENDING.
They say one thing and do another … THE INCESSENT PUBLIC CON.

What does THIS ADMINISTRATION hope “we the people” DO NOT FIND OUT?

If we all are forced to bite the bullet right now … things get better in the future. We escape the government going bankrupt and our children and grandchildren do not end up drowning in debt before they even learn to swim.

We would end up with less government and less government meddling in the economy.
There would be fewer parasites on the public dole. The job creators would have more freedom to create new wealth and grow new businesses.

This government both parties DO NOT WANT the public to REALIZE.

Government is the problem not the solution, and that we’d all be better off with a lot less of it.

So when you hear Timothy Geithner, Ben Bernanke and Barack Obama tell you we MUST AVERT this catastrophe or “financial Armageddon” … the American public discovering how well all of our lives improve without them is their worst nightmare.

Obama hits the pulpit and rails about the banks not lending money.
HOW DARE THEY just sit on that money they got with the bailouts?

Federal Reserve Chairman Ben Bernanke as well as Barack Obama need banks to make a fortune.
The Obama re-election depends on it.

We watch the Obama charade on how awful these bank CEO’S are and how corporate jets need to be taxed higher.

EVERYONE NEEDS TO EAT PEAS!

But actions speak louder than words.

Unfortunately for Bernanke and Obama “we the people” have awakened and are savvy to the con.
 
It is clear that the governmental powers that be never figured “their jig” would be up much less exposed. They were so used to doing CORRUPT BUSINESS as usual … like the stupidity of Anthony Weiner they figured they would never get caught.

So now with all of the trillions of dollars being dumped into the system things are not getting better.
Well unless you listen to the “cooked books rhetoric” out of this administration.

So the government desperately wants real estate to turn around. It desperately wants money to get in the hands of the people so they can take out mortgages on real estate. They think this will stabilize home prices and help get the economy going again.

So what must the government do to get money in the hands of the people?
Shame or force the banks to lend money to the people.
Yes those same people who are STILL JOBLESS and can not afford the loan?

Well after the real estate bust the banks are a little wary … GEE THATS A SHOCK ISN’T IT?
So Bernanke has cut the interest rates to zero. Now the banks can borrow for next to nothing and lend at a higher rate.

Take a look at your CC statement. If you run a balance how much interest are you having to pay? HOLY SMOKE BAT MAN!
Let me see they borrow from the government …
WE THE PEOPLE … then lend it back to us for what? … 10% to 20% or more?

I WANT TO BE A BANK!

The bank has my IRA and 401K and I get maybe 1% to 3% … as my investment is jockeyed by some billionaire twit in Dubai who jacks the price with his monopoly money and margin?
 
No wonder the banks could pay the loans back to the government.
Pretty smooth deal when you think about it.

Now the banks are giving the government the middle finger and sitting back riding the income wave.

Might be a well deserved middle finger since the progressive government give, give, give FOR FREE attitude got them in the shaky collapse spot in the beginning.

So here we are today.
At least the government and banking system are on the same “BANKS MAKE MONEY” bandwagon.

One could logically assume things being made so cushy for the banks their stocks would soar.

OH OH … NOT SO!
In-fact bank stocks are dirt-cheap.

WHY?

Do you suppose “we the people” are putting 2 and 2 together and are wondering why the banks are paying 5% to 7 % on their corporate bonds when they get all that free money from the government?
Looks like a solvency problem to me.

If I owe my CC company $1000 at 7% interest and I come into a windfall of $2000 interest free … I pay off the $1000 … take the other $1000 pay it on the new loan and work on paying off the free of interest $1000 … don’t you?

Give up the “normalcy bias” folks.

Time to be good boy/girl scouts.

Again today Barack Obama hit the tube with another “boring drone” of the same old shit (SOS).

Congress has a “unique opportunity to do something big” and stabilize the U.S. economy for decades by cutting deficits even as it raises the national debt limit ahead of a critical Aug. 2 deadline. But, he declared, “We’re running out of time.”

Let me translate that for you folks.
RAISE THE DEBT CEILING and screw the cutting deficits.

The reality is “WE THE PEOPLE” do not have a snowflakes chance in hell of getting a handle on any of this.

We are in a world of Monopoly Money.
Have you heard of COOKED BOOKS?
Well wrap your mind around it. This government is feeding us a line of Bull.
Take what they admit and then multiply it maybe 10 times.
What we know today does not add up nor will it for years.
In reality we are probably already screwed and the powers that be are no doubt shaking in their own boots.

If there is a silver lining to any of this it is … WHEN WE THE PEOPLE GO DOWN FOR THE COUNT … SO DO THEY ALL!

Bernanke poo poos the relevance of gold?
ARE YOU KIDDING ME?

Not only is our currency failing so are currencies all over the world.
Yesterday the IMF said Europe’s banks are underfunded. The agency said it is “critically important to put in place and immediately publicize credible plans” to deal with failing banks.

Europe is a mess. Entire countries are collapsing. And two too-big-to-fail countries – Spain and Italy – are next.

The euro has fallen silver and gold are both up. Gold has crushed the euro in the past three months. (The metal is currently at all-time highs.) Silver is under-performing but hey maybe a bit of silver is a good investment

So Bernanke says GOLD IS NOT RELEVANT?
REALLY!

Well I would take a ton of it how about you?

Obama wants to add $2 trillion to the debt ceiling, Standard & Poor’s said there’s a 50% chance it would downgrade long-term U.S. debt within three months. (The company also said a downgrade could come as soon as this month.) S&P believes chances of a default are “increasing,”.

Time to wrap your minds around it folks … raising the debt ceiling DOES NOT FIX THE PROBLEM.
It simply prolongs the inevitable.

Amid criticism of the Fed’s $600 billion bond purchase, Federal Reserve Chairman Ben Bernanke publicly urged Congress to pitch in and provide more stimulus aid. All of this to combat the lackluster recovery. So far a recommendation that has fallen on deaf ears by lawmakers.

In a speech at a conference of central bankers in Frankfurt, Bernanke once again said the Fed cannot save the economy on its own. The Fed’s recent move to add to its ballooning balance sheet by committing to buy up to $600 billion of government debt faces “limits” to its effectiveness, Bernanke said. The rest of the government, the chairman added, could aid the Fed’s efforts by hammering out a plan for stimulative spending. The right kind of spending, he noted, could help reduce the budget deficit over the long-term by first boosting economic growth.

Right and horse whips in Detroit is a good business venture!
Why does ANYONE AT ALL listen to Ben Bernanke?

As I watch Glen Beck on television and radio personality Robert D. Raiford of the John Boy and Billy show struggle with economics and the different messages they get from economic “experts” I will struggled to explain in layman’s terms as best I can. What is really going on with all these economics and why the information is so different from one source to the next? I will do my best to make what is occurring as clear as possible.

Glen Beck struggles with the concept of the Federal Reserve and its Chairman Ben Bernanke printing trillions of dollars and the inflationary damage it will do to the economy. To understand his motivations it’s necessary to go back in time to the Great Depression and John Maynard Keynes.

During the 1920’s the stock market had a huge bubble as we all know that burst in 1929. Everyone blames the Great Depression on the stock market. But for Mr. Bernanke and thousands of economists we know that’s false. Government actions make a routine cyclical recession into a worldwide depression eventually leading to the rise of Hitler and WWII. The average unemployment rate under Roosevelt in the 1930′s was a catastrophic 17.2%! One of the great if not the greatest tragedy in human existence only rivaled by the Black Death that swept the world several times in the 1340’s, killing 30 to 60% of Europeans as well as the 17th and 18th century plagues. Unlike the plague the depression and world war was totally man made catastrophes.

What the government did to make a regular cyclical recession into disaster was three huge blunders. On the federal level Hoover and Roosevelt raised taxes on the rich from 25% to 63% then Roosevelt to 79%. Sound familiar? Hoover increased federal spending 55% on various government projects like the Hoover Dam. Sound familiar? George Bush did the same with the wars, education and drug programs for seniors. Roosevelt further increased federal spending with his New Deal programs, increased business regulation and increased taxes on the wealthy. Sound familiar? Hoover raised tariffs 41.5%. Sound familiar? Obama was battling it out in the primaries bragging he could raise tariffs the fastest. It’s as if Bush and Obama are following the script of Hoover and Roosevelt to a T.

And one aspect that is lost in all this is the Federal Reserve did some truly asinine moves with the money supply. When the recession hit the Fed decreased the money supply 27%! Ouch! The exact opposite of what should have been done. Later in 1937 the Fed doubled the reserve requirement again throwing the country into depression. Monumental blunders that were not lost on Bernanke who studied the Great Depression during his college years.

Bernanke is determined not to repeat the blunders of the past but is going in the opposite direction with a vengeance. And here is where economist differs in their approaches.

Bernanke and democrats in general are students of John Maynard Keynes the great Leviathan economist during the 1930’s and 40’s. These Keynesian economists believe, although they will deny it, that government and people of superior intelligence such as themselves are equipped to deal with all the economic problems of the world. Super smart people like Bernie Madoff, Chuck Schumer, Michael Milken, Bernard Ebbers, Dennis Kozlowski, and Kenneth Lay from all walks of life feel entitled to rip off or impose government policies on people because they all have a underlying contempt for the unwashed masses. They feel superior and entitled to power and privilege.

John Maynard Keynes was fond of tapping his two fingers on the desk when conducting business hearings during WWII when contractors begged for government approval to raise prices to keep up with ramped inflation that was occurring on the black market of the time. The money supply was up 121% but inflation must have been a figment of these contractors’ imaginations. The finger tap on the desk literally represented his signal to his colleges that the head ant on top of the hill was signaling with his antennas to his comrades below that the shit was about to roll down hill. In other words he thought the person pleading was full of shit. This disrespect for contractors and their companies is blatantly apparent to readers of Keynes. And that is why so many politicians are drawn to Keynes. Central planning and a feeling of superiority and privilege over the stupid ignorant masses that are too stupid to see the big picture.

Radio personality Robert D. Raiford complains of Keynes “paradox of thrift.” Essentially this theory states that if we all save our money it may be personally good for us as individuals but is bad for the economy. Raiford, a highly educated man with a master’s degree, must have received some pretty bias economic education and like millions of Americans struggles with even the most basic understanding of the subject. The problem with Keynes is his theory like so many of his theories doesn’t hold up to reality. Increased savings go into banks. Banks are in the business to lend money in normal times. Someone will borrow the money and spend it. Second if everyone saved prices will drop. People would start to be attracted to lower prices and spend. Even the biggest savers in the world have a marginal propensity to consume. Raiford because of economic ignorance prevalent throughout society fails to connect the dots and discard this Keynesian myth.

And there you have it. A lot of economic disinformation is being taught and used by politicians, personalities and even our Federal Reserve Chairman. Mr. Keynes did a lot of good brilliant work on developing a national economic model overview referred to as the Gross Domestic Product. He is an economic giant and his concepts are taught but he was wrong on the paradox of thrift, liquidity trap and many of his depression era theories. Our Federal Chairman is a strong follower of these theories. God help us all.

Liquidity trap. What is it and why is it significant? A liquidity trap is a situation in monetary economics in which a country’s interest rate has been lowered nearly or equal to zero to avoid a recession. Sound familiar? Our Federal Funds rate or commonly referred to overnight rate of lending, is currently 0.20%. And no one is lending. The market is not stimulated. Banks are keeping assets in short term cash accounts and avoiding long term investments making the recession worse. Mr. Bernanke is reliving the same liquidity trap that Keynes experienced in the 1930’s. So Mr. Bernanke is telling all those who will listen to pump trillions into the economy to get the economy moving again. And there you have the well intentioned motive of Mr. Bernanke although like Keynes the well intentioned theories will prove to be a monumental disaster for the country.

Why are banks really holding out? Politically you could argue the dysfunctional nut jobs in Washington DC are destroying banking confidence with crazy bail outs, buy outs, insane tax policies, insane mark to market accounting rules and you would be partially correct. The politicians in Washington are a disaster. And it’s both parties. Both parties need to be retired to the ash heap of history along with the Whigs, Federalist and Bull Moose political parties. The Democrats and Republicans of today are completely and totally incompetent to do anything. The federal government should be frozen and stored away in some deep freezer only to be thawed out after the adults have cleaned up the mess they created. So yes the political situation is hurting the economy. But that’s not the major reason banks are holding out.

Banker being bankers are looking at possible future inflation. Why is this so important to a banker? Bankers have been burned so many times by government it just comes naturally. In the 60’s and early 70’s banks made low interest loans only to be burned by inflationary federal government and Federal Reserve policies that created inflation in the late 70’s and early 80’s. Bankers made 5% loans in 1973 only to see loan rates climb to 9% in 1974 then 18% in 1981. The inflation rate went from 3% to 15%. So if you’re a banker and you made that nice 5% loan for 30 years guess what? Eight years into the loan the inflation rate is 15% and you’re in the red. Your books are a disaster full of low interest loans and you either have to go out of business or make very high risk loans to recoup your massive losses. And this is what happened to many savings and loan companies that lead directly to the savings and loan disaster of the late 80’s and early 90’s. It was bad government fiscal and monetary policy leading to the destruction of hundreds of lending institutions and the loss of thousands of jobs. The government created the Resolution Trust Fund to clean up the mess it had created.

Then after the S&L mess was cleaned up we got the Community Reinvestment Act, Sarbanes-Oxley, Freddie Mae, Fannie Mac and political backstabbing. Banks were forced to make bad loans by the government to unworthy borrowers, Fannie and Freddie buy and sell toxic assets throughout the banking and financial system, AIG and other politically connected firms buy the toxic assets by the billions for political favors from Washington.

Bribes, payoffs, bonuses of every kind imaginable were made and the system crashed. Insiders on Wall Street demanded payback for the bogus paper coming out of Fannie and Freddie and then came the bail outs. Fraud and chaos once again perpetrated by the politicians in Washington. These robbers just cannot resist the temptation to screw with the banking system of America with their insane schemes. It’s like the crooks and mafia joined forces with the police and are ransacking every bank they can get to.

And now the final blow to bankers’ confidence. The Federal Reserve assisted by Congress pumps up the monetary base from $800 billion to $1,800 billion. Bankers being bankers are not the stupid twits all the Keynesians in congress think they are. They can read the Federal Reserve data. They can do the math. They are bankers. They passed business calculus and accounting in college unlike our idiots in Washington with their political science degrees of useless information. Would any sane banker make a loan at 5% if the inflation rate is going to be 15% in a couple of years? Gee let me think on that one Mr. Frank and Mr. Dodd. It’s really quite simple to clear thinking bankers and anyone else paying attention. Only blundering politicians and Keynesian economists who think they can pull a fast one over the dumb business bumpkins are fooled by this buffoonery.

So what is the real deal? Economics is part science and part psychological. Having a communist educated idiot in the White House and a bunch of thieves in congress is not the way to inspire confidence. What would I do?

Cut federal spending. The last thing the economy needs is more idiots spending taxpayer’s money. Privatize social security, eliminate all aid to seniors and cut them a check every month and let them deal with it. Billions and billions would be saved in useless bureaucracies and more importantly the money would go to the people. Get rid of the departments of education and housing. Complete and utter waste of money if there ever was one. All the money in the world isn’t going to make a dumb kid smart.

Take away the power of the Federal Reserve to set any kind of interest rate. Batting 500 in baseball is good but not when it comes to banking. Leave the banks alone to charge what they want to for interest rates. As a safeguard pass an act similar to Glass-Segal limiting banks to no more than 5% market share in the United States. Not needed but it will make the monopoly conspiracy theory people happy. It’s past time to strip the Federal Reserve of its power over interest rates.

Cut the corporate and capital gains taxes to 25% and 10%. Sending a signal that comrade Obama is not going to pull a Chairman Mao would be a nice gesture to the folks who actually work for a living.

Better yet get a flat income tax and get rid of all other federal taxes including tariffs, corporate and capital gains. Do that and the boom will last a decade or more. Everyone who wants a job will have one. Private markets and employers actually work for a living. Government is nothing more than a thief or at best a referee.

And that is the fundamental differences in economist. The demand side Keynesians believe they are superior and resort to government power and money to bully people and businesses around. Their policies lead to disaster time and time again. Fascist, socialist and communist are drawn to the economics of Carl Marx and John Maynard Keynes.

The supply side Milton Freidman types believe in free markets and little government interference. Adam Smith in his book Wealth of Nations back in 1776 pretty much captured the magic of free enterprise 223 years ago. Nothing really has changed much. Nations that pursue free economic systems prosper and those that don’t get poor. It’s not complex.
People claim Wall Street greed brought down the house of cards. Nothing could be further from the truth. Washington’s constant meddling in the banking system decade after decade brought it all crashing down. Why the banks? Well because as Willie Sutton said “that’s where the money is.”

And what is in it for politicians in the long run to destroy the economic system of its country? Besides the obvious political power and pay offs where will all this lead? Inflation will destroy elderly independence and wipe out the middle and upper middle classes. Obama wants a classless society. Inflation is the quickest way to get there.

Socialized medicine will lead to rationing. Who will control the rationing? Government. Favored political groups like minorities and gays will get preferential treatment as they do now with so many government programs. The elderly reduced to poverty by inflation will see the most severe rationing. No money no power. Dictatorship. Just as Roosevelt and Keynes enjoyed during the height of WWII.

And the ironic thing is the people will praise Obama just like they did Roosevelt when it’s all over. I guess it would be similar to John McCain praising his torturers for quitting the torture. It sure does feel good when they quit breaking your arms doesn’t it John?

And there you have it Mr. Beck and Raiford. I strongly urge you to read up on libertarian principals and economics. Freidman, Smith, CATO, Heritage and the Libertarian Party are and always will be sources of inspiration. Tomas Payne in his Common Sense pamphlets need to be reprinted and distributed to all freedom loving Americans.

The world is a different place than it was in 1929. Information passes quickly to the masses. If I and millions can see for ourselves what is happening to the monetary base there is hope. We can remove the tyrants from power. As Mr. Beck states this isn’t a Republican or Democratic thing. Both political parties are moving in the same direction, total power. They are fighting over the spoils of power not differing principals. Both parties need to be removed from power and social engineering needs to be put at the state and local level where it belongs.

If Mr. Beck or Raiford read this insipid little blog I hope it helps. Don’t Tread on Me.