Thursday, August 27, 2009

The Slide Continues....

We still continue to lose half a million jobs a week.

Micro-Managing Obama is now pulling forward demand for dishwashers...

The bailouts continue.

Bankruptcies continue.

The Fed says it needs to continue hiding financials or we'll know exactly how stinky the their pile of poop is. Not only that, we're still faced with the same threat that the banks will unleash a financial terrorist attack on us, if we demand fair accounting, and that existing laws be upheld. And I guess they could destroy the USA financially and the result would be many thousands of dead Americans, from secondary effects like malnutrition and diseases from not having money to buy food with.

And that fits neatly into my long time tinfoil hat conspiracy theory that after Peak Oil, the wealthy will own our government through the power of the money presses and they will divert our resources for their benefit alone.

We're evolving into a nation where a few banks owned by the same principles will own all of the financial transactions in our country. Legal small businesses will be crushed. The corporate giants will withdraw to serve only were profits remain, and serve their client base there poorly.

We're moving into an economy consisting of a few corporations in near total monopolies. they will be the few with the power to demand that the government print money and give it to them for free. They will continue to change the laws to benefit themselves.

They will utterly destroy industry in the USA, with their death throes.

Obama's plans to pull forward demand are going to wreak havoc on a number of industries. The Cash for Clunkers program brought out everyone that thought they might want to buy a car over the next few years, and drove a buying frenzy. Now new car sales will sink to incredible lows, never before imagined.

Now we have a cash for appliances program going forward. This will drive a spike in appliance sales, then over the next year, sales will drop to incredible lows, never before imagined.

I bet with the next pull demand forward programs, I could just create a template for blogging. Use the essentially the same text, say the same things...

I really wish that things weren't following this path. I wish that we truly had people in positions of authority that were highly intelligent, caring and wise. But we don't have that. What we have running the country are people no smarter than anyone else you meet in life, no wiser, but have an ambition to wield power. That is the only difference between them and folks you meet in neighborhood grocery stores.

They don't see the future. They don't even understand the present. They react day to day to circumstances that surprise them out of the blue. And like most Americans, they cling to their myths and their vision of how they wish things are, and they work as if those are the truth of things.

So what we see is the collective action of people seizing opportunities with no foresight or planning. Few have the vision to look ahead and work to enact their plans. And those that do, are constantly being derailed by those that see a short term profit in changing the strategies.

And this works to derail evil plans, like the PNAC or those serving some mostly honorable vision like the Super Conducting Super Collider.

So no conspiracy theories are needed to explain events. In a contracting industrial environment, the center fights to grow, and cannibalizes it's support systems. the wealthy fight to expand their wealth, and as wealth on the whole is contracting, they must steal wealth from others.

We've seen other civilizations do this. But we're a supercharged high energy civilization. Where Rome was powered by wood, charcoal and muscle, we're powered by oil. Our rise and our fall are highly accelerated. Events that took hundreds of years to evolve in Rome, will take only decades for us.

But we have one other distinguishing characteristic. There are no rising civilizations vying to usurp us. The whole world is going down together. When the barbarians at the gate arrive, it will only be us.

We still have a long way to fall. More war, maybe for Christmas would be a logical next step for an administration desperate to distract us.

Right now they are distracting us with the health care reform debate. And what did i say about desperate corporations changing laws? A big part of the plan being discussed is to make the purchase of health insurance mandatory. So if you lose your job and can't afford insurance, then you become a criminal. Many people may well be forced to become criminals out a need to eat.

Now the gov does plan to subsidize insurance, but we've seen how such programs are arranged. A small portion of the population will qualify, while most will not, due to some form of red tape. The Obama administration is already famous for designing programs so that almost no one qualifies, or it's tough to get the gov to follow through. Cash for Clunkers is an example. Many dealers have still not received payment and may go out of business as a price of success. Of course, they will likely go out of business anyway, with future sales going down the toilet.

If this mandatory insurance does pass, I think that most of the uninsured now, will not be able to afford it. They will face difficulties in qualifying for the subsidies. When Obama signs that legislation, he will be criminalizing the millions of victims, of our government's reckless economic policies.

You all know what to do. Keep your head down. Don't attract attention. Don't get shot while screaming slogans at a protest. Take care of you and yours, because you'll get no help from the government. And for those that believe in protesting and fighting the government, forgive me for disagreeing with you. I don't believe it will do any good, until the government beats the people down so far that they start shooting politicians to death. That is the path the government is taking us to, in destroying the US economy to benefit wealthy international bankers. I don't want any of my readers killed or harmed in such actions, no matter how noble, as no single death will change the course that our leaders are charting. We've seen it in other countries. It is coming to the USA. It's the path that Obama has charted for us. He's made it clear it's too hard to change course, so he intends to go faster. Do your best to cling to the railings. Rocks dead ahead.


At 9:08 PM, Blogger frances snoot said...

Mr. Weaseldog:
That is exactly what is happening: pulled-forward demand. Did you read Mr. Ambrose Pritchard-Evans latest?
Bill White, former chief economist at the Bank for International Settlements, said the error of the central banking fraternity over past 20 years has been to cut real interest rates ever lower to keep the game going. This has lured the world into a debt trap. The effect is to keep drawing prosperity from the future – until the future arrives.
"It does the job for a while but moves in interest rates have to be ever more violent to achieve the same effect. My worry is that we may have reached the point where the policy ceases to work altogether.
"These imbalances come back to haunt you, and that is where the world now is. People have been induced to bring forward purchases by taking on debt and there has been a massive expansion in corporate investment," he said.

Excellent post, Mr. Weaseldog. The best writing I have read all week.

At 7:02 AM, Anonymous Anonymous said...

Great post.

Thanks for being one of the very few to actually share their wisdom.

At 8:58 PM, Blogger Publius said...

nice one.
We are absolutely fucked.
When there is no solution, there is no problem.
The only thing we can do is to ride out the crash, and hope to build something better on the other side.

At 2:40 PM, Anonymous Anonymous said...

And that fits neatly into my long time tinfoil hat conspiracy theory that after Peak Oil, the wealthy will own our government through the power of the money presses and they will divert our resources for their benefit alone...


I will not buy an appliance until mine dies completely. The new stuff is made to die within ten years. My stuff is older than that and just keeps going. I would like newer more efficient appliances but money is hard to come by 4 me and I will not waste it.

At 2:44 PM, Anonymous Anonymous said...

Weaseldog, Those last four or five paragraphs are pure poetry.

At 10:35 AM, Anonymous Anonymous said...

Truly poignant and prescient post today, Wease. Well said, and spot on.

At 4:23 PM, Blogger an average patriot said...

Damn Wease I missed this somehow now my system is telling me to reboot but I want to address this eventually!

At 4:52 PM, Blogger an average patriot said...

You know wease, years ago the goal was to break up monopolies and encourage competition. Today it is to destroy competition and create monopolies. Meanwhile the rest of us are part of a third world economy.

That cash for clunkers program helped the industry but screwed the very people that needed the help.
Everybody that is working and has money was able to take advantage of buying a new car.

Those that do not have enough money to buy a new car rely on being used cars. The Government just paid to have them trashed now they are not available for you.

I am getting asked to reboot and scan again what a pain. Anyway they think this is a recovery. Absolutely the great depression they think they avoided I still assert will dwarf the first one. This has yet to begin.


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